Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The year of peak construction activity at Oyu Tolgoi mine in the Gobi desert of Mongolia (IM April and May issues this year) is nearing its end, with the project approximately three-quarters complete. A great deal has been accomplished this year, and over the last ten years since the first discoveries were made by Ivanhoe at Oyu Tolgoi. 2012 will see the start of first copper-gold-silver production at Oyu Tolgoi. The mine is to be a combined open pit and underground operation. It lies in Khanbogd sum within the south Gobi Desert, approximately 235 km east of the Ömnögovi Province capital Dalanzadgad.
The project is the largest financial undertaking in Mongolia’s history and is expected upon completion to account for more than 30% of the country’s gross domestic product. Copper production is expected to reach 450,000 t/y.
Here are a few highlights from 2011’s last week of construction (pictures can be found on the Ivanhoe website:
