TURQUOISE HILL: OYU TOLGOI CONCENTRATOR RUNNING AT FULL CAPACITY; SALES TO RAMP UP
Turquoise Hill Resources (TSE:TRQ) (NYSE:TRQ) announced that production at the Oyu Tolgoi concentrator is currently running at full capacity, or approximately 100,000 tonnes of ore processed per day, in its update on the Mongolian mine’s concentrate production and sales, released Monday.
As of September 18, the mine, in which Turquoise Hill owns a 66 per cent interest, had produced 160,000 tonnes of concentrate and shipped approximately 38,000 tonnes to the bonded warehouse in China, with 122,000 tonnes held in inventory at Oyu Tolgoi.
Concentrate from the copper-gold-silver mine in southern Mongolia is the first of its kind to be shipped across the Gangquimadou bilateral border between Mongolia and China, the company said. Oyu Tolgoi’s customers are now engaged with Chinese customs officials to receive the necessary approvals required to collect purchased concentrate from the warehouse.
The Vancouver-based mining company said in a company statement that it expected that once the necessary approvals were in place, the withdrawal of concentrate from the warehouse by customers would quickly ramp up.
Turquoise Hill has begun to receive payments from customers, it said, but as revenue is recognized when customers withdraw concentrate from the warehouse, to date, Oyu Tolgoi has not recorded any revenue.
It added that production has not been impacted while customers work through the Chinese customs process, and continues to expect Oyu Tolgoi sales to be aligned with production rates by the end of this year.
Shares in the miner were trading up in Toronto on the morning of release of the news, adding 6 cents to prior close to take the share price to $4.89.
As of September 18, the mine, in which Turquoise Hill owns a 66 per cent interest, had produced 160,000 tonnes of concentrate and shipped approximately 38,000 tonnes to the bonded warehouse in China, with 122,000 tonnes held in inventory at Oyu Tolgoi.
Concentrate from the copper-gold-silver mine in southern Mongolia is the first of its kind to be shipped across the Gangquimadou bilateral border between Mongolia and China, the company said. Oyu Tolgoi’s customers are now engaged with Chinese customs officials to receive the necessary approvals required to collect purchased concentrate from the warehouse.
The Vancouver-based mining company said in a company statement that it expected that once the necessary approvals were in place, the withdrawal of concentrate from the warehouse by customers would quickly ramp up.
Turquoise Hill has begun to receive payments from customers, it said, but as revenue is recognized when customers withdraw concentrate from the warehouse, to date, Oyu Tolgoi has not recorded any revenue.
It added that production has not been impacted while customers work through the Chinese customs process, and continues to expect Oyu Tolgoi sales to be aligned with production rates by the end of this year.
Shares in the miner were trading up in Toronto on the morning of release of the news, adding 6 cents to prior close to take the share price to $4.89.
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