Concentrate produced at Turquoise Hill Resource's (TSX:TRQ) massive Oyu Tolgoi mine in Mongolia is finally in the hands of customers in China, the company announced October 21.
Shipments from the mine – a $6.6 billion combined open-pit copper-gold development – had been stalled at a bonded warehouse near the Mongolia-China border since September 18, awaiting approval from Chinese customs officials.
To date, 38,000 tonnes of concentrate have been shipped to the warehouse. Another 122,000 tonnes remain stored at Oyu Tolgoi.
According to a press release from Turquoise Hill, the withdrawal of concentrate from the warehouse allows the company to begin recording revenue.
In September, the company announced production at the mine had hit full capacity of 100,000 tonnes of ore processed per day.
Turquoise Hill is the majority owner of Oyu Tolgoi with a 66% stake in the mine. The Mongolian government owns the remaining 34%.
Mining giant Rio Tinto (NYSE:RIO) is the majority owner of Turquoise Hill.
Oyu Tolgoi has been mired in controversy since the summer. In July, the Mongolian government halted shipments of concentrate over a dispute over the lack of Mongolians working in senior positions at the mine and a desire for revenue from the mine to be deposited in Mongolian banks. Oyu Tolgoi represents about 30% of Mongolia's gross domestic product.
In July, Rio Tinto announced it was halting plans for a $5 billion expansion of the mine.
Oyu Tolgoi is considered one of the largest copper-gold deposits in the world with an estimated 46 billion pounds of copper and 25 million ounces of gold.
For more Business in Vancouver coverage of Oyu Tolgoi, click here and here.
