Oyu Tolgoi has signed a contract with Dayan Contract Mining, a Hasu Megawatt LLC and Redpath Mongolia LLC joint venture company, for development of its underground mine.

Oyu Tolgoi’s Chief Development Officer for Underground Marco Pires said, “This contract is another major milestone as we progress with the underground development, and demonstrates our commitment to further strengthening the national supply chain and skilled workforce. Dayan brings together the strength of a Mongolian company with international expertise in underground development, and will bring long-term benefits by creating world class expertise and capability in Mongolia.”

Shaft two and shaft five of the mine will be excavated under the Dayan contract. The depth of the two shafts will be 1,284 meters and 1,178 meters. The diameter of shaft two will be 10 meters, making it one of the largest mine shafts in the world. Shaft five will be 6.7 meters in diameter and will be used for ventilation.

The contract also includes underground development services, which will cover lateral development, large excavations, and mine services for the underground mine.

CEO of Dayan Contract Mining Bruce Dunlop said, “We are happy to be contributing to one of the most important mining projects in Oyu Tolgoi. We will extend our cooperation with OT for the long-term and work to establish a mine site up to international standards, and help prepare a talented workforce for underground mining.”

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