Turquoise Hill Moves Forward with Power Plant for Oyu Tolgoi

Turquoise Hill Resources (TSX:TRQ,NYSE:TRQ) has announced the submission of a feasibility study for the Tavan Tolgoi power plant project to the Government of Mongolia, as the company is obliged under the 2009 Oyu Tolgoi investment agreement to secure a long-term domestic source of power for the Oyu Tolgoi copper mine.

The company explained that the power source framework agreement entered into between Oyu Tolgoi LLC and the Government of Mongolia on December 31, 2018 provides a binding framework and pathway for the construction of a Tavan Tolgoi-based power solution for the Oyu Tolgoi mine by June 30, 2023. The power plant would be majority-owned by Oyu Tolgoi LLC and situated close to the Tavan Tolgoi coal mining district located approximately 150 kilometres from the Oyu Tolgoi mine.

As quoted in the press release:

The Tavan Tolgoi power plant feasibility study is based on a 300 MW coal fired power plant to be located in Tsogttsetsii soum of Umnugovi province, with a total project cost estimate of up to $924 million, pending consideration of certain amounts yet to be finalized such as government fees, licenses and certain reimbursements per the Tavan Tolgoi investment agreement.

Click here to read the full Turquoise Hill Resources (TSX:TRQ,NYSE:TRQ) press release.