Mongolia’s Mining, Oyu Tolgoi

Oyu Tolgoi, situated approximately 550 kilometers south of Ulaanbaatar in Mongolia’s Gobi Desert, stands as one of the world’s most significant copper and gold mining operations. Jointly owned by the Government of Mongolia (34%) and Turquoise Hill Resources (66%), a subsidiary of Rio Tinto, the mine has been a cornerstone of Mongolia’s economy since its initial production in 2013.

Initially, experts estimated that Oyu Tolgoi contained 16 million tonnes of copper and 623 tonnes of gold. However, ongoing exploration and development have revealed that the underground Hugo Dummett North deposit alone holds probable ore reserves of 499 million tonnes with an average grade of 1.66% copper and 0.35 g/t gold.

Economic Impact

Oyu Tolgoi has been a major contributor to Mongolia’s economy, accounting for approximately 17% of the country’s total export revenue, 20% of its mineral exports, and 44% of its foreign exchange reserves between 2014 and 2024. The mine’s operations have generated $16.3 billion in sales revenue from 2013 to 2024, with 67% from copper, 31% from gold, and 2% from silver.

As of 2023, Rio Tinto has invested approximately $17 billion in Oyu Tolgoi. The project has also contributed $2.8 billion in taxes and fees to the Mongolian state budget between 2010 and 2023.

Workforce and Community Engagement

The Oyu Tolgoi project employs over 20,000 people, with 97% being Mongolian citizens. Of these, 25% are residents of Umnugobi aimag, and women comprise 23% of the workforce, with plans to increase this to 50% over the next decade.

The company has invested MNT 187 billion in 354 local projects and established the Khanbogd Development Accelerator Fund, contributing MNT 170 billion to support local development.

Future Outlook

Oyu Tolgoi is expected to become the world’s fourth-largest copper mine by 2030. Its expansion includes developing the underground Hugo Dummett North deposit, which is expected to produce about 500,000 tonnes of copper each year from 2028 to 2036.

The company is also investing in renewable energy to reduce its reliance on imported electricity by 30%. It has started a study to build a water reservoir to help protect the environment in the Gobi Desert.

With its strong impact on Mongolia’s economy, support for local communities, and focus on sustainability, Oyu Tolgoi remains a key driver of the country’s future development.