Rio Tinto Says New Mongolia Output to Supply Into Copper Deficit
- Oyu Tolgoi underground expansion to begin production in 2020
- Copper market to return to deficit from 2017, Freeport says
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Rio Tinto Group’s $5.3 billion underground expansion of Oyu Tolgoi mine in Mongolia will increase its output in about four years time when the copper market is in deficit, according to the company’s deputy chief executive officer.
The investment to expand the copper and gold mine required courage due to the “challenging economic climate,” Jean-Sebastien Jacques said at an event Saturday in Mongolia, according to an e-mail transcript provided by the company. A global surplus of refined copper could maintain pressure on the market with a number of mine expansions expected during 2016, Bloomberg Intelligence said in a April 7 report.