Oyu Tolgoi lays off 300 workers


According to Unuudur, Mongolian daily newspaper, Oyu Tolgoi is planning to lay off 300 workers to reduce costs at the copper and gold mine.
This week, Bloomberg reported that it obtained an internal memo by Craig Kinnell, chief executive officer of Oyu Tolgoi LLC, who stated, “Workforce reductions are part of the life cycle of a mining business.” The memo didn’t specify how many jobs would be cut. “Given where we are in the life cycle of our project, and the urgent need to reduce our costs, it is critical to the success of the business to address this now.”
In August 2013, Oyu Tolgoi laid off 1,700 workers and suspended construction of the mine shafts, after a dispute broke out about additional financing for the underground expansion concerning five billion USD.
Enkhtsetseg Samban, a spokeswoman for Oyu Tolgoi, confirmed job reductions are happening though declined to give the number of positions affected when contacted by phone, reported Bloomberg.
“Copper operations around the world are facing significant challenges with volatile markets and prices,” Kinnell said in the memo to staff. “Oyu Tolgoi is no different.”
London-based Rio Tinto owns 66 percent of Oyu Tolgoi through its Turquoise Hill Resources Ltd. (formerly Ivanhoe Mines) unit. The Mongolian government owns the other 34 percent. Located in southern Mongolia, Oyu Tolgoi is the largest single investment in the history of Mongolia and is expected to make up more than a third of Mongolia’s gross domestic products when in full production by 2020.
For 2014, Oyu Tolgoi is targeting production of 150,000 to 175,000 tons of copper in concentrates and 700,000 to 750,000 ounces of gold in concentrates.

Short URL: http://ubpost.mongolnews.mn/?p=9368

Posted by on May 29 2014. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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