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Rio Tinto Reaches Power Agreement With Mongolia For Oyu Tolgoi Mine

Rio Tinto (RTPPF.PK,RIO.L,RIO,RTNTF.PK), Turquoise Hill Resources (TRQ) have reached an agreement with the Government of Mongolia to domestically supply power to Oyu Tolgoi copper-gold mine through a state-owned coal-fired power plant at Tavan Tolgoi. The mine currently uses imported power.

The agreement, which is a revision of the Power Source Framework Agreement signed in 2018, stated that they will work towards finalising a Power Purchase Agreement by the end of March 2021.

In addition, construction of the coal-fired power plant is set to begin no later than 1 July 2021, and commissioning within four years thereafter.

Mongolia and Oyu Tolgoi have committed to extending the current arrangement to ensure continued stable power is supplied to the mine and underground project until the State Owned Power Plant is commissioned and is able to supply stable, reliable and continuous power.

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