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Mining company Rio Tinto warned of increased costs and delays owing to a redesign of its at its Oyu Tolgoi copper and gold project in Mongolia, while downgrading its reserves estimate for the deposit.
Delays would span 21 to 29 months for first sustainable production compared to original feasibility study guidance in 2016, with an increase of $1.3bn-to-$1.8bn from the original $5.3bn development capital.
'This amended mine design is another positive step in the development of the underground mine which will unlock the most valuable part of Oyu Tolgoi,' copper and diamonds head said.
'We remain focused on delivering the underground project safely and within the guidance ranges we have announced on both cost and schedule.'
The redesign meant some material had been reclassified from ore reserves to mineral resources.
'It is expected that part of the material contained in these pillars will be recoverable at a later stage following additional studies which are currently underway,' the company said.
A next phase of a design study was expected may result in further movements in reserve and resource classifications.