Turquoise Hill reports 256% gold production increase at Oyu Tolgoi in third quarter
(Kitco News) - Turquoise Hill Resourcesannounced Thursday that in Q3 2021, both copper and gold production from theopen pit at the Oyu Tolgoi mine in Mongolia were higher compared to Q3 2020 dueto higher copper and gold head grade ore from Phase 4B.
According to the company'sstatement, in Q3 2021, copper production of 41,935 tonnes was 16% higher comparedto Q3 2020 and gold production of 130,799 ounces was 256% higher compared to Q32020.
Importantly, the companyadded that copper and gold production guidance for 2021 remains within theranges of 150,000 to 180,000 tonnes and 400,000 to 480,000 ounces respectively.
However, the company pointedout that the underground development delays and open-pit metal deferrals havecaused an increase in the company's base case estimated incremental fundingrequirement to US$3.6 billion.
The company also reportedthat concentrate shipment volumes to customers from Oyu Tolgoi improved duringQ3 2021; however, above target inventory levels remained at the end of Q3 2021as a result of the COVID-19 related Mongolia / Chinese border restrictions thatresulted in force majeure being declared from March 30, 2021.
"Shipments to Chinese customersrecommenced on April 15, 2021, and Oyu Tolgoi continues to work closely withMongolian and Chinese authorities to manage any supply chain disruptions," thecompany noted in a statement.
Turquoise Hill added that theforce majeure will remain in place until there are sufficiently sustainedvolumes of convoys crossing the border to ensure Oyu Tolgoi's ability to meetits ongoing commitments to customers and to return on-site concentrateinventory to target levels.
By Vladimir BasovFor Kitco News
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