Oyu Tolgoi produces a total of 214.8 thousand tons of copper in 2024, breaking the 2015-2016 record. 

💥 The Beginning of the Surge

Next month, Oyu Tolgoi’s underground mine turns 2 years old. Since its opening, copper concentrate production surges, with total copper concentrate output skyrocketing by 66.5% compared to 2022 and 27.8% compared to 2023. Originally, the expected increase was 40%, but it came in at 27.8% instead.

• 💭 Quarterly Performance and Growth: Copper production in Q4 of 2024 is significantly higher than in the first 3 quarters, reaching 66 thousand tons. This marks a 63% increase compared to Q4 2023. Since production starts in October last year, when the conveyor belt begins transporting ore from 1,300 meters below the surface, overall production increases by 33%.
• 🚀 Future Expansion and Targets: Copper production continues its upward trajectory, with a target to extract 500 thousand tons annually between 2028 and 2036. In other words, the amount of copper produced over the last 3 years will be achieved in just one year. Meanwhile, work on the enrichment plant is progressing and is set to be commissioned in stages by the second quarter of this year.

‼️ The Next Major Project for Mongolia

While Oyu Tolgoi’s operations continue smoothly, the price of coal, a key contributor to Mongolia’s economy, falls by 72.1% from its peak in 2022. Although coal exports increase, revenue from coal declines. With coal prices expected to decrease and China’s coal consumption to decline in the future, Mongolia’s economy relies more on copper income.

Although the peak of Oyu Tolgoi’s copper production sustains the economy until 2036, what follows after that remains uncertain. To mitigate future risks, exploration intensifies, and new raw material deposits must be discovered. The question of where and when the next Oyu Tolgoi will emerge remains a key consideration.