Dallas, Texas 01/07/2014 (FINANCIALSTRENDS) – Turquoise Hill Resources Ltd (NYSE:TRQ) the copper, coal and gold mining company which operates from Canada, is the envy of most other basic materials miners as it has one of the largest mines for precious metals – gold as well as copper, perhaps in the world – located in the Mongolian region of OyuTolgoi.
Rio Tinto to the help
Turquoise Hill Resources Ltd (NYSE:TRQ) however, appears to have stretched itself thin on the investment front, as it appears to have run up huge bills with – the Mongolian government as part of tax returns, with Rio Tinto, which funded in parts to help Turquoise Hill complete mining and production of precious metals.
Turquoise Hill Resources Ltd (NYSE:TRQ) is expected to look at further expansions of the mine, only after it has been able to pay back loans. It has opted to raise some of the debts through right offers as well. Post sales, left over shares will remain with Rio Tinto.
Considering the deep and intractable trouble Turquoise Hill Resources Ltd (NYSE:TRQ) had with the Mongolian government and banks which funded the mine calling-in the funds, the time was right for a strong-financial partner to enter the scene.
Mining rights for one of the richest resources of precious metals wait, even as Rio Tinto stood suriety for the banks to extend loan recovery time line to end of March 2014. The banks have since given Turquoise Hill Resources Ltd the time to pursue on several fronts to secure payback.
As an international mining company it has a spread of mines which are focused on copper, gold as well as coal sites in the Asia Pacific region.A current feasibility survey, for underground expansion, is in place, indicating that OyuTolgoi may well have a pause in the first half of this year. At least count, it is expected that mine should be able to register an output which is equivalent to 1.2 billion pounds of Cooer, while Gold is expected to be in the region of 650,000 ounces and another 3 million ounces of silver on an yearly basis.