Oyu Tolgoi copper, gold output forecasts slashed

Turquoise Hill Resources (TSE:TRQ) on Tuesday slashed its 2014 forecasts for gold and copper production at its Oyu Tolgoi mine in Mongolia due to delays in advancing mine development.

The Vancouver-based company said it expects to produce between 550,000 and 600,000 ounces of gold in concentrates this year, down from the 600,000 to 700,000 ounces it had forecast in August.

Turquoise Hill reduced slightly the top end of its forecast for copper concentrate output this year to between 135,000 tonnes and 150,000 tonnes, down from a range of 135,000 tonnes to 160,000 tonnes before.

Work on the underground expansion of Oyu Tolgoi, where 80% of the resources are located, were halted in November funding problems and in June work on a feasibility study for the underground phase was suspended over a tax dispute.

Turquoise Hill is controlled by Anglo-Australian giant Rio Tinto and owns 66% of massive mine with the government of the Asian nation holding the remainder.