Rio Tinto recently announced the signing of the Power Source Framework Agreement (PSFA) between Oyu Tolgoi and the Mongolian government.
Says Rio Tinto Copper and Diamonds chief executive, Arnaud Soirat, “The power agreement is a positive step forward for Oyu Tolgoi and outlines a path to secure reliable, long-term power for the operation.
The agreement sets out an amended timetable for Oyu Tolgoi to meet its obligation to source power domestically. The 300-megawatt plant will be majority owned by Oyu Tolgoi LLC and will be close to the Tavan Tolgoi coalfields. Construction is scheduled to start in 2020 following extensive studies, with the commissioning of the plant by mid-2023.
“We will now work together with all of Oyu Tolgoi’s partners to finalise the details and develop the power project which will help ensure the operation reaches its full potential to the benefit of all shareholders,” adds Soirat.
All Oyu Tolgoi shareholders will start work on additional technical specifications and commercial arrangements underpinning the framework agreement.