Oyu Tolgoi Project Feasibility Study: $7.36B Capex
Rio Tinto's Oyu Tolgoi Project in South Gobi region, Mongolia has a Feasibility Study outlining initial capital of $7.36B.
Rio Tinto's Oyu Tolgoi Project has reported Feasibility Study results for the copper project in South Gobi region, Mongolia. It reflects Rio Tinto's (RIO) latest disclosed economics for the asset.
Economics. Initial capital expenditure is estimated at $7.36B, with life-of-mine sustaining capital of $5.00B. Economics are based on Resource valuation: USc320.30/lb Cu, US$1,479.82/oz Au, US$19.23/oz Ag, US$9.29/lb Mo (July 2021 consensus). Reserve valuation: USc350.80/lb Cu, US$1,496.75/oz Au, US$20.43/oz Ag (January 2022 consensus)..
Production and mine plan. The project envisions an open-pit & underground operation.
Resources and ownership. The company holds a 66% interest in the project.
These figures are extracted from Rio Tinto's technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | — | — | 5.4 Mt (11.9 billion pounds) contained copper, 5.9 Moz contained gold |
| Inferred | — | — | 13.6 Mt (30 billion pounds) contained copper, 20.4 Moz contained gold |
Our Analysis
- Initial capex
- $7.36B
costlier than 98% of 43 projects we track
- Study price assumption
- Resource valuation: USc320.30/lb Cu, US$1,479.82/oz Au, US$19.23/oz Ag, US$9.29/lb Mo (July 2021 consensus). Reserve valuation: USc350.80/lb Cu, US$1,496.75/oz Au, US$20.43/oz Ag (January 2022 consensus).
- Spot copper today
- $6.77/lb
Against the 43 copper projects we track, this one sits in the middle of the pack on returns: nothing here is an outlier, and the case rests on scale and funding rather than on a standout IRR. That matters more than the headline number. A feasibility study carries the most weight of any study stage, typically a plus or minus 15% band, so these estimates are build-ready rather than conceptual. The project sits in Mongolia's South Gobi region, a jurisdiction that asks investors to weigh permitting and political risk alongside the geology.
The constraint that decides this one is not capital intensity in the abstract but the sheer size of the build. Initial capex of $7.36B ranks below only 2% of the 43 copper projects we track, which makes this one of the largest single-project commitments in that peer set. What defuses the funding risk is the sponsor: a US$153.79B market cap means the build is small relative to the company's equity value, and this is one of 41 projects in a diversified portfolio. A company of that scale can absorb a project this size without the dilution or financing gymnastics that sink smaller developers. That is the sharpest signal available here, and it is a positive one.
The price assumptions deserve a caveat. The study values resources at USc320.30/lb copper and reserves at USc350.80/lb, both drawn from 2021 and early-2022 consensus. Live spot copper is $6.77/lb, far above those figures, so the study's economics are conservative on price and leave genuine upside if spot holds. The question that decides this project is whether the sponsor commits capital to a multi-billion-dollar build in Mongolia on a timeline that reflects the opportunity, or lets a mid-pack return sit while better-ranked projects in the portfolio advance first.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.