Turquoise Hill Resources Ltd. rose to a one-month high after Mongolia’s Prime Minister Altankhuyag Norov said his government fully supports project financing to restart construction on the second phase of the Oyu Tolgoi mine.
Turquoise Hill Resources Ltd., the miner controlled by Rio Tinto Group, said all parties in the Oyu Tolgoi copper mine in Mongolia agreed to seek a funding extension for the underground expansion amid talks with the government.
Copper is heading for the biggest surplus in 13 years as new supply hits the market. The excess may turn out to be smaller than investors expect as new mines struggle to ramp up, according to the metal’s biggest producer.
Turquoise Hill Resources Ltd., the miner controlled by Rio Tinto Group, may ask lenders to extend financing for the $6.2 billion Oyu Tolgoi copper and gold project as talks continue with the Mongolian government.
Rio Tinto Group wrote down the value of a “cash-generating” unit developing Mongolia’s Oyu Tolgoi copper and gold mine by $4.7 billion as an impasse with the government persisted over starting underground operations.