Oyu Tolgoi reports a strong Q2 2016


On August 3, Oyu Tolgoi (OT) presented its second quarter financial results and performance scorecard, and underlined that the company has paid 126 million USD in taxes and other payments and spent 136 million USD in domestic procurement as of the first half of 2016.

The company highlighted their safety performance results, with an all injury frequency rate of 0.13 per 200,000 hours worked for the first six months of 2016. OT also underlined the signing of a cooperation agreement with Jacobs Engineering Group in June, with the Australian company to provide engineering, procurement, and construction management services for the development of OT’s underground mine.

Oyu Tolgoi earned 329.7 million USD as of the second quarter of 2016, which was down by 22 percent over the first quarter, reflecting lower gold sales.

The company’s concentrate volumes sold in Q2’16 increased by 6.7 percent over Q1’16. In Q2’16, concentrator throughput was broadly consistent with Q1’16, resulting in average throughput of approximately 105,000 tons per day for the quarter.

Copper production in Q2’16 declined by 10.3 percent over Q1’16, reflecting lower grades from reduced mining in Phase 2 and relative lower recovery from Phase 6 ore. The company’s gold production declined approximately by 52 percent in the second quarter over the first quarter, due to lower grades from reduced mining in Phase 2.

Oyu Tolgoi’s former Chief Executive Officer Andrew Woodley said, “Q2 was another strong quarter across the business. Our safety performance continues to rank us among the leaders not only in Rio Tinto, but across our global peers. Our focus on productivity and cost, in what remains a challenging market environment for the sector, is delivering results and forms the foundation for the long term future of the business.”

OT reported that it has invested approximately 49,000 USD in training and education programs, and 5.9 million USD in sustainable development projects in the South Gobi.

The company says it is investing in infrastructure projects in the South Gobi under commitments in its cooperation agreement with partner communities in Umnugovi Province signed in 2015. These include a bulk water facility in Khanbogd soum, a healthcare center in Bayan-Ovoo soum, and a sports hall in Manlai soum.