March 20, 2012 on: business, Economical, International, Mining

A power solution for one of Rio Tinto's most prospective mines remains elusive, raising doubts over whether plans to be in production within six months can be achieved.

But difficulties in delivering power to the mine's remote location in the Gobi desert are continuing to fester, with Ivanhoe confirming that a deal to import power from China had still not been reached. Advertisement: Story continues below The current plan would see the mine site, which includes concentrators and a large workers village, connected to the power grid on the Chinese side of the border for the first four years of the mine's life. But such a deal requires an agreement between Chinese and Mongolian authorities, and Ivanhoe confirmed today that officials from the two nations had still not agreed terms. The company said it remained hopeful that talks would be ''expedited'' to ensure the imported power was available for meet the target of first production in the third quarter of 2012. Ivanhoe said extra diesel-generated power was bringing bought into the mine site in the meantime, and warned that production schedules could slip if the plan to import Chinese power had to be abandoned in favour of building a coal-fired power station on site at Oyu Tolgoi sooner than planned. Under the mine contract, all power must be sourced from within Mongolia after four years of mine life. ''If the establishment of a dedicated power plant is required for the early production at Oyu Tolgoi, the required revisions to the construction schedule for the Oyu Tolgoi project could adversely affect the project's ability to achieve the planned start of commercial production in 2013,'' Ivanhoe said yesterday in a statement. peter.ker@theage.com.au Please note that this article and / or its accompanying media (picture, video, sound files etc…) has not been written, created or taken by M.A.D. Investment Solutions staff. It is not copyrighted to M.A.D. Investment Solutions nor does the company claim any ownership or rights towards the content and its accompanying media. The above article does not in any case represent the views or opinions of M.A.D. Investment Solutions or any of its affiliate individuals or companies. The article above is purely meant as a source of information to readers and does not constitute a legal or biding agreement in any way, shape or form. Ownership of the content and its accompanying media remains with its legal owner or contributor but was sourced from Public Domain sources. If you are the owner of this content or its media and would like it replaced or taken out of our website, please contact us on: info@mad-mongolia.com. For contact and comments directly relating to the above article and or its accompanying media, please refer to the source as stated below.

SOURCE OF THIS ARTICLE : Brisbane Times

Please note that this article and / or its accompanying media (picture, video, sound files etc…) has not been written, created or taken by M.A.D. Investment Solutions staff. It is not copyrighted to M.A.D. Investment Solutions nor does the company claim any ownership or rights towards the content and its accompanying media. The above article does not in any case represent the views or opinions of M.A.D. Investment Solutions or any of its affiliate individuals or companies. The article above is purely meant as a source of information to readers and does not constitute a legal or biding agreement in any way, shape or form. Ownership of the content and its accompanying media remains with its legal owner or contributor but was sourced from Public Domain sources. If you are the owner of this content or its media and would like it replaced or taken out of our website, please contact us on: info@mad-mongolia.com. For contact and comments directly relating to the above article and or its accompanying media, please refer to the source as stated above.

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