The funding deal has been signed with international financial institutions and export credit agencies representing the governments of the US, Canada and Australia, as well as 15 commercial banks.
Rio Tinto Copper and Coal CEO Jean-Sébastien Jacques said: "This Project Finance agreement is significant in the industry and is the next important step towards further development of the world class Oyu Tolgoi mine in Mongolia.
"This kind of mining development partnership model sets the industry benchmark for future schemes and underscores Rio Tinto’s commitment to responsible and prudent growth.
"Long-term copper fundamentals remain strong and Oyu Tolgoi as a tier one asset will be a globally important source of supply as the market moves back into structural deficit over the next few years."
The financing has been provided by Export Development Canada (EDC), the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), the Export-Import Bank of the United States, the Export Finance and Insurance Corporation of Australia (Efic).
The other commercial lenders include BNP Paribas, ANZ, ING, Société Générale Corporate & Investment Banking, Sumitomo Mitsui, Standard Chartered Bank, Canadian Imperial Bank of Commerce, Crédit Agricole, Intesa Sanpaolo, National Australia Bank, Natixis, HSBC, the Bank of Tokyo-Mitsubishi UFJ, KfW IPEX-Bank and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden.
Located in the South Gobi, Oyu Tolgoi production commenced in 2013 and over 1.5 million tons of copper concentrate have been produced from since then.
The Oyu Tolgoi mining project is 34% owned by Mongolian Government and the remaining 66% stake is held by Turquoise Hill Resources.
As a strategic partner of Turquoise Hill Resources, Rio Tinto operates the Oyu Tolgoi project.
Image: The Oyu Tolgoi mine is located in the South Gobi, Mongolia. Photo: Copyright © 2014 Rio Tinto.
