Report points to rising costs as Rio's Mongolia mine grows: "LONDON/TORONTO – Miner Rio Tinto has pointed to rising costs at its giant Oyu Tolgoi copper mine in Mongolia, in technical documents that confirm a $5.1-billion budget for the project's second phase, but reduce the scale of that planned expansion.
Rio and Mongolia are at loggerheads over Oyu Tolgoi and the future of one of the world's largest untapped copper deposits, just as the mine ramps up output and the Rio subsidiary that owns it tries to secure $4-billion for the next stage of development.
The report's evidence of inflation - including a 30% rise in the cost of building the underground mine - is unlikely to ease Mongolian fears that rising costs will erode prospective earnings. A feasibility study with revised cost estimates, already delayed, is due to be completed by next year."
'via Blog this'
