Rio Tinto-controlled Turquoise Hill has completed the an updated mine design for Panel 0 – the first panel of mining at its Oyu Tolgoi underground project – narrowing the previously announced cost overrun and delay ranges.
The approved design is based on a block cave approach, which leaves two pillars to the north and south of Panel 0.
CEO Ulf Quellmann says the preferred block cave design is a “more resilient mine plan that provides the best opportunity for success. It is based on an extensive trade-off analysis taking into account the reserve recovery, geotechnical, constructability, operability, schedule, cost and value risks”.
Compared with the 2016 technical report, the block cave design anticipates a delay of sustainable production of 25 months, with a 21- to 29-months delay range expected. The development capital cost will increase by $1.5-billion, with a range of $1.3-billion to $1.8-billion.