Rio Tinto awards Jacobs Engineering $5.3bn Oyu Tolgoi mining contract

Oyu Tolgoi underground copper and gold mineRio Tinto has awarded Jacobs Engineering the main contract to build the $5.3bn Oyu Tolgoi underground copper and gold mine in Mongolia, the US-based company announced yesterday. The announcement comes just over a month after Rio Tinto approved the mine’s long-awaited underground expansion which will see annual production ramped up to 500,000 tonnes by 2027. Rio Tinto CEO Jean-Sebastien Jacques
“Today’s investment will transform Oyu Tolgoi into one of the most globally significant copper mines, unlocking 80% of its value,” Rio’s incoming CEO Jean Sebastien-Jacques said at the time. “Long-term copper fundamentals remain strong and production from the Oyu Tolgoi underground will commence at a time when copper markets are expected to face a structural deficit.” 
The first stage of Oyu Tolgoi, an open pit mine, was approved in 2010 and production started in 2013. The underground project was put on hold in 2013 amid disputes with the government which were resolved last year.

Source: AKIpress