The Prime Minister of Mongolia, Luvsannamsrain Oyun-Erdene, today joined Rio Tinto Chief Executive Jakob Stausholm 1.3km underground to mark the start of  underground production.

The opening marks a milestone for the $7bn mine which had been beset by delays. An agreement between the Government of Mongolia and Rio Tinto was signed in January 2022, which ‘reset the relationship and moved the project forward’, and today Oyu Tolgoi is jointly owned by Erdenes Oyu Tolgoi LLC on behalf of the Government of Mongolia (34%) and Rio Tinto (66%).

Oyu Tolgoi is expected to produce around 500,000 tonnes of copper per year on average from 2028-2036, and could become the fourth-largest copper mine in the world by 2030.

Ore is currently being processed from Panel Zero in Hugo North Lift 1 and production will ramp up over the coming years. Thirty drawbells have been blasted and copper is now being produced from the mine.

The total workforce of the mammoth project – which will have approximately 200km of tunnels – currently stands at around 20,000 people, and involves more than 500 national suppliers.

Prime Minister Oyun-Erdene said, “The start of underground production at Oyu Tolgoi demonstrates our ability to work together with investors in a sustainable manner and become a trusted partner. The next phase of the partnership will enable the continued successful delivery of Mongolia’s ‘New Recovery Policy’ and Vision 2050 economic diversification strategy.”

Stausholm said, “We are starting underground production … that will be critical for global copper production and Mongolia’s ongoing economic development. The copper produced in this truly world class, high technology mine will help deliver the electrification needed for a net zero future and grow Rio Tinto’s copper business.”