Multibillion Oyu Tolgoi Mine Gathering Dust for Lack of Power

Business Mongolia reports (based on Financial Times) that the Oyu Tolgoi project still has no electricity secured. The power lines from China to the Oyu Tolgoi site are ready, but they still lack a commercial agreement on the terms of the power purchase from China.

If these delays persist, they will lose over 8 million dollars per day in expected revenue. They can’t start producing without power.

That problem would have been at least mitigated somewhat if they had built a big solar project right next to the mine. In that case, they would have been independent at least for the daytime of most days (it almost never rains in the Gobi desert).

I recall having advocated for doing that in February in a post titled “Oyu Tolgoi solar power plant” (with list of related posts).

They might still have time for such a move. Solar can be deployed in a matter of a couple of months, one of the big advantages compared to coal or nuclear.

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

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