Home / Financial News / Turquoise Hill secures landmark US$4.4B financing for Oyu Tolgoi mine in Mongolia
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Turquoise Hill secures landmark US$4.4B financing for Oyu Tolgoi mine in Mongolia

Turquoise Hill has a 66 per cent interest in Oyu Tolgoi, in partnership with the Mongolian government and with support from Rio Tinto PLC, which is the largest shareholder in the TSX-listed mining company.

Canadian miner Turquoise Hill Resources Ltd. is set to make a massive investment in Mongolia’s Oyu Tolgoi mine after securing a landmark US$4.4 billion financing package, one of the largest ever seen in the industry.

Vancouver-based Turquoise Hill unveiled the package early Tuesday. The capital is being provided by a syndicate of banks and export credit agencies in the form of loans that have terms of 12 to 15 years. Export Development Canada and Canadian Imperial Bank of Commerce are among the groups in the syndicate.

With this cash secured, Turquoise Hill is finally equipped to begin underground development at Oyu Tolgoi, a massive copper-gold mine that will account for about 30 per cent of Mongolia’s gross domestic product once it reaches full capacity. Oyu Tolgoi is being mined strictly as an open pit at present, but the real value for investors is in the long-delayed underground expansion.

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