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YEAR IN REVIEW - 2019

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YEAR IN REVIEW - 2019 to the shareholders of Oyu Tolgoi LLC

Health, Safety and Security

  • Oyu Tolgoi Operations area, 0.09 AIFR per 200,000 man/hour – Rio Tinto group record
  • Leaders have done close to 280,000 verifications to eliminate risks at the workplace
  • Organised the “Safety First 2019” National Forum
  • NEMA – Oyu Tolgoi LLC cooperation

Environment

  • Water utilisation – three times lower than global average
  • 87% water recycled
  • Khulan and Goitered gazelle surveys
  • 109 hectares of primary and 43 hectares of biological rehabilitation
  • 54% of non-mineral waste recycled

Finance

  • Oyu Tolgoi earned sales revenue of US$1,166 million
  • Capital expenditure on the underground reached US$3.5 billion
  • Taxes, fees and other payments made directly to the Government was US$9 million higher than previous year.
  • “Made in Mongolia” strategy expanded to a range of product lines, including local food product supply, steel products, and variety of electric products manufactured in Mongolia
  • $9 million per annum contracts were signed creating over 200 local job opportunities
  • Between 2010 to 2019, Oyu Tolgoi spent $3.1 billion on national procurement

Operations

  • Equipment effective utilisation of 77 per cent
  • Material moved at the open pit increased to 101.3 million tonnes
  • Concentrator throughput of 40.8 million tonnes
  • 24.7 thousand tonnes of bagged copper concentrate shipped

Workforce and Training

  • Oyu Tolgoi has invested US$67.7 million in TVET support to date
  • Over 2,600 students have participated in Oyu Tolgoi educational programmes
  • Two Global nomads study tours to Rio Tinto Iron Ore sites
  • Memorandum of Understanding with the Mongolian University of Science and Technology to upgrade geotechnical and underground mining engineer training

Partnership

  • 35km Oyu Tolgoi – Khanbogd road
  • Khanbogd Master plan
  • Umnugovi GDP increased three times since 2010
  • Business Innovation and Growth (BIG) Centre established in Dalanzadgad
  • ‘No need to rush’ & ‘Play by the rule’ national road safety campaigns resulting in year-on-year reduction in the number of traffic accidents by 63.9 per cent across the

Underground development

  • 19 million hours of work completed in Underground development
  • 1,284 metres deep and 96 metres tall primary production shaft construction completed
  • Largest friction rope hoist system
  • ‘Chandmani’ Center, a crucial infrastructure for monitoring of underground operations, teams and moving vehicles, completed
  • Lateral development reached 32,925 equivalent metres