Turquoise Hill Resources (NYSE:TRQ) says it has submitted a feasibility study to Mongolia's government in its effort to secure a long-term domestic source of power the Oyu Tolgoi mine.
The Tavan Tolgoi power plant project will include
building a 300 MW coal-fired power plant at an estimated cost of as
much as $924M, which already was included in Rio Tinto's (NYSE:RIO) capex guidance of $7B for 2020 and $6.5B for 2021 and 2022.
Oyu Tolgoi currently sources power from China's Inner Mongolian Western Grid via overhead power lines.
Rio owns a 50.8% stake in Turquoise Hill, which in
turn owns a 66% interest in the Oyu Tolgoi asset, with the rest held by
the government of Mongolia.