Turquoise Hill Resources has reduced its 2014 forecasts for gold and copper production at the Oyu Tolgoi mine because of delays in mine development in the third quarter. The miner, which owns some 66 percent of Oyu Tolgoi, said it now expects the mine to produce between 550,000 and 600,000 ounces of gold in concentrates this year, down from the 600,000 to 700,000 ounces it had forecast in August. It also reduced its expectation for copper concentrate output to between 135,000 tonnes and 150,000 tonnes this year, down from a range of 135,000 tonnes to 160,000 tonnes before.
Vancouver-headquartered Turquoise Hill said Oyu Tolgoi produced 36,600 tonnes of copper and 132,000 ounces of gold in concentrates in the third quarter, in line with the second quarter as higher copper grades offset lower throughput. Throughput fell due to the failure of rake arms in one of the mine’s two tailings thickeners. Operating cash costs are expected to fall by about $130 million this year from a total of $1 billion, Turquoise Hill said, as Oyu Tolgoi, like other miners, focuses on cutting costs at a time of lower metal prices. Turquoise Hill said it has also reduced expected capital expenditure for the year to about $110 million from $160 million before