On Friday, Rio Tinto gave the yes-signal to the $5.3 billion for the growth of Oyu Tolgoi in Mongolia. This is counted as the first significant approved investment in the sector for years. If we are taking the current operations underground, it will more likely to result more than a double production in 2027 for about 500,000 metric tons a year.
For those who not know, Rio Tinto is a British-Australian multinational metals and mining corporation with headquarters in London, United Kingdom and a management office in Melbourne, Australia. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain, from the Spanish government. Since then, the company has grown through a long series of mergers and acquisitions to place itself among the world leaders in the production of many commodities, including aluminium, iron ore, copper, uranium, coal, and diamonds.Although primarily focused on the extraction of minerals, Rio Tinto also has significant operations in refining, particularly for refining bauxite and iron ore. The company has operations on six continents but is mainly concentrated in Australia and Canada, and owns its mining operations through a complex web of wholly and partly owned subsidiaries. Its head office in the United Kingdom is in the City of Westminster, London, while its Australian head office is in the City of Melbourne. By this, Rio Tinto stands as one of the most stable business entity in the mining industry.
Rio’s step was expected on them even in times where miners are still counting every gain they have. Added on it is that projects still ticks many boxes. There is definitely plenty of supply of copper coming from online later this year and the outlook is as solid as it gets long-term. On the other hand, how was it like in real time?