Rio Tinto CEO Jean-Sebastien Jacques recently appeared in an interview with Bloomberg Television Mongolia, and stated that Mongolia would not see dividends from the Oyu Tolgoi underground mine project for at least 10 years.
Jacques said, “We shouldn’t forget that Oyu Tolgoi is a long-term project. It will take us five years to build the infrastructure and seven to nine years to ramp it up.”
“Until we get to a steady state, which is clearly 10 years down the road, we will not pay dividends to anybody,” he said.
Jacques and members of the Board of Directors of Rio Tinto recently visited Mongolia to become familiarized with the Oyu Tolgoi site and to discuss ongoing and future matters with the government.
After a meeting with Prime Minister J.Erdenebat, Jacques said, “We had a very open conversation on where we are in relation to our joint project… Construction of the underground expansion is well underway, and about 1,600 people are working on the project.” He noted that staffing is expected to reach 2,400 by the end of the year.