Rio Tinto announces Mongolian investment after withdrawing from Zimbabwe

After announcing plans to sell its stakes in mines in Zimbabwe, Rio Tinto confirmed that it has pledged to invest at least $250 million into the Oyu Tolgoi mine in Mongolia.

On Friday, the world’s second-largest mining company announced that it would be stopping operations in Zimbabwe and selling its 78 percent stake in the Murowa diamond mine to its former local unit, RioZim Ltd. The mine was valued at $279 million by Deutsche Bank AG in 2013.

In a statement by the Mongolian Prime Minister, it emerged that Rio Tinto has pledged to invest in the construction of the underground section of the massive Oyu Tolgoi copper and gold mine in Mongolia this year.

The development of the mine has long been stalled, but this announcement marks progress for the project that is expected to boost Mongolia’s economy by a third when it reaches full capacity in 2021. Operated by Rio Tinto, is expected to produce an average of 430,000 tonnes of copper and 425,000 ounces of gold annually, but still needs an additional $4 billion finance to go ahead.

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