Government of Mongolia, Ulan Bator, MONGOLIA - Technical and strategic advisory services to the Ministry of Mines and Heavy Industry
FWT was commissioned by GIZ/CONNEX with engineering services for the project Technical and strategic advisory services to the Government of Mongolia - Oyu Tolgoi - Water resources and geological aspects. With this contract, FWT transferred parts of the services to DHC.
The Government of Mongolia is negotiating with Rio Tinto regarding the cost increase and delay in the development of the strategically important Oyu Tolgoi mining project.
Activities performed:
- Review of the Oyu Tolgoi Project Assessment relating to environmental and water resource issues
- Recommendations for the re-evaluation of the Oyu Tolgoi copper, gold and silver deposit and accompanying mineral reserves compliant with international standards
- Reviewing the most recent feasibility study and developing recommendations for a new technical and economic assessment based on the results of the above reserves re-evaluation
- Investigating the causes of the 16-30 month’s delay in underground production due to changes of the mining method based on difficult geotechnical conditions as well as the need for additional funding of US$1.2-1.9 billion and advising the government on a negotiating position
- Advise regarding the OT Project Risk Management System especially relating to geotechnical risks and measures taken for risk reduction and avoidance as well as mechanisms for notifying and consulting with the Mongolian Government as investor
- Advise during the development of the strategic negotiation approach in consultation and cooperation with legal and economic experts for the preparation of the actual negotiation rounds between the government and Rio Tinto, whenever needed.