Rio Tinto Says Oyu Tolgoi Delays May Cost as Much as $1.9B

The video discusses Rio Tinto's mining project in Mongolia, highlighting significant delays and cost overruns due to unstable ground conditions. The expansion, initially estimated at $3.5 billion, may now cost up to $7.2 billion, with full cost assessments expected by next year. The company is also reviewing the asset's value, indicating potential write-downs. Despite these challenges, Rio Tinto's iron ore shipments have rebounded, maintaining their full-year forecast, which is crucial for the company's profits.

What was the original cost estimate for Rio Tinto's expansion project in Mongolia?

• $2.5 billion

• $5.5 billion

• $3.5 billion

• $4.5 billion

How long could the delays in the Mongolia project extend according to Rio Tinto?

• 30 to 50 months

• 20 to 40 months

• 16 to 30 months

• 10 to 20 months

What additional issue did Rio Tinto flag regarding the Mongolia project?

• Increase in copper production

• Reduction in workforce

• Discovery of new mineral deposits

• Potential for a write-down of the asset's value

What is Rio Tinto's top-earning commodity?

• Silver

• Gold

• Copper

• Iron Ore

What positive development did Rio Tinto report regarding iron ore shipments?

• An increase in market prices

• A rebound in shipments

• A decrease in production costs

• Discovery of new iron ore reserves