Turquoise Hill Resources Ltd announced its intention to proceed with a USD2.4 billion share offer for copper mine Oyu Tolgoi. The decision came after the company failed to obtain fundings for the expansion of its Mongolia mine. This was according to a report published by Bloomberg.
Turquoise Hill is an international mining company based in Vancouver. The firm owns 66% of Oyu Tolgoi. The company was unable to obtain finances for the said long-term project because of conflicts with the Mongolian government, the report said.
Oyu Tolgoi is a mining project located in Mongolia. When fully operating, it was forecasted that production in the mine would account for one-third of the Mongolian economy, Bloomberg said. Operations in the project's underground expansion were recently halted until issues with the government are resolved. The expansion was said to cost around USD5.1 billion, said the report.
Kay Priestly, Chief Executive Officer of Turquoise Hill, said four big issues are being discussed by Oyu Tolgoi's shareholders. These issues pertain to construction costs, water access, approval of the feasibility study for expansion, and the sharing of the mine's resources, Bloomberg reported.
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