Rio Tinto (ASX:RIO) power supply agreement reached

Company News

by Ortenzia Borre

Rio Tinto (ASX:RIO), Turquoise Hill and the Government of Mongolia have reached an agreement on the preferred domestic power solution for Oyu Tolgoi that paves the way for the Government to fund and construct a State Owned Power Plant at Tavan Tolgoi.

The agreement, which is a revision of the Power Source Framework Agreement (PSFA) signed in 2018, states that the parties will work towards finalising a Power Purchase Agreement by the end of March next year.

Arnaud Soirat, Copper & Diamonds Chief Executive, said, “This agreement provides a potential pathway to securing a domestic power supply for the Oyu Tolgoi mine and underground project for the benefit of all shareholders and the wider community. We look forward to working with the Government of Mongolia to progress the solution.”  

Shares in Rio Tinto (ASX:RIO) are trading 1.7 per cent lower at $97.27.