Rio Tinto has increased cost estimates for the ongoing expansion of the Oyu Tolgoi copper-gold mine in Mongolia by $300m to $7.06bn.
According to the mining firm’s cost and schedule reforecast, which was concluded in June 2022, the project’s cost increased by almost $1.8bn compared with its original estimate in 2015, according to Mining.com.
The project’s original estimated cost was $5.3bn. It was intended to be operational by early 2021.
This cost surge has been attributed to workforce constraints due to the Covid-19 pandemic.
Currently being reviewed by the Oyu Tolgoi board, the new reforecast assumes that the project will face no disruptions in the future.
Rio Tinto said that the project’s technical…