Loading ...Cost of expansion at Rio Tinto’s Oyu Tolgoi rises again
Rio Tinto (ASX, LON, NYSE: RIO) flagged on Friday a cost increase of $300 million for the ongoing expansion of its massive Oyu Tolgoi copper-gold mine in Mongolia.
The world’s second largest miner said the cost and schedule reforecast, completed in June, now pegs the total project cost estimate at $7.06 billion, almost $1.8 billion higher than its original estimate in 2015.
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The company blamed the rise on skilled labour supply constraints caused by covid-19 and noted the new estimate, under review by Oyu Tolgoi’s board, assumes there are no further disruptions.