Oyu Tolgoi inaugurates Khanbogd bulk water facility; Breaks ground at inter-soum animal health care centre

Oyu Tolgoi and its partner communities celebrated the second anniversary of the Cooperation Agreement with two major milestones - the inauguration and handover of the Oyu Tolgoi-funded Khanbogd Bulk Water Facility, and by breaking ground for the Inter-Soum Animal Health Care Centre, both first of the kind facilities for the region.

The US$6.9 million bulk water facility will provide safe, clean drinking water to Khanbogd, with a 6.6km network of pipeline distributing water across the town. The facility will support the future development of Khanbogd, with a capacity to supply water to over 13,000 residents and has the potential to be further expanded.

The Inter-Soum Animal Health Care Centre, also funded by Oyu Tolgoi through the ‘Gobi Oyu Development Support Fund’, is expected to be completed in the second half of 2017 and will provide veterinary, animal breeding and laboratory services to the eastern region of Umnugobi province - Khanbogd, Manlai, Bayan-Ovoo and Tsogttsetsiy soums.

Speaking at the opening ceremony, Batsukh Galsan – Chairman of Board of Directors, Oyu Tolgoi, said, “I’m deeply proud of what we have accomplished together in just two years of the Cooperation Agreement. The Khanbogd Bulk Water Facility and the Inter-Soum Animal Health Care Centre are among the best examples of Oyu Tolgoi and our shareholders’ commitment to a partnership approach, and to the sustainable development of the Umnugobi.”

Speaking at the ceremony, Stephen Jones – acting CEO Oyu Tolgoi, said, “This is a testament to the strong relationship between Oyu Tolgoi and our partner communities, and our commitment to growing and developing together. Projects we have executed under the Cooperation Agreement in the past year alone have created 70 more jobs in the community, enabled access to pre-school education to over 500 children living in the remote parts of Dalanzadgad, and brought quality healthcare within reach of a population of over 2,000 people.

“The water facility and animal health care centre are key catalysts to support the long term development of Khanbogd, attracting talent, businesses, accelerating growth and creating real value for Mongolia.”

Oyu Tolgoi entered into an agreement with Umnugobi, Khanbogd and other neighboring soums in April 2015, marking an important step towards long-term partnership between the parties aimed at sustainable development of the region. Following the signing of the agreement, Gobi Oyu Development Support Fund was setup in late 2015, with Oyu Tolgoi committing US$5million annually. In the last year alone, the fund has supported the implementation of two kindergartens, the Bayan-Ovoo hospital, the Dalanzadgad sports hall, the Khanbogd School & kindergarten complex, and over two dozen other sustainable development projects.

In addition to its work under the Cooperation Agreement, Oyu Tolgoi continues to implement comprehensive environmental, community and sustainable development projects in the Umnugobi, Khanbogd and neighboring soums, including participatory environment monitoring, skilling programmes, pastureland management, biodiversity programmes, training and more.

Notes to the editors:

Oyu Tolgoi fully funded the water exploration activities and the construction of Khanbogd bulk water facility.

The facility includes:

  • Four boreholes
  • Raw water tank (1,500m3)
  • Water purification plant
  • Water transmission pipeline (6.6km)
  • Treated water reservoir (2000m3)
  • 10kV Electrical substation, lines (8.8km)

Gobi Oyu Development Support Fund will fully sponsor the Inter-soum Animal Health Care Centre in Khanbogd. The centre includes:

  • Laboratory
  • Vet facility
  • Breeding facility
  • Office
  • Accommodation for visiting researchers
  • Support facilities

Major projects by Gobi Oyu Development Support Fund in 2017 are:

  • Public transportation service in Dalanzadgad
  • Heating supply project in Khanbogd
  • Waste landfill in Khanbogd
  • Teacher development programme
  • Pastureland wealth

About Oyu Tolgoi LLC (www.ot.mn)

Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company, is a strategic partnership between the Government of Mongolia, Turquoise Hill Resources and Rio Tinto. Located in the South Gobi, Oyu Tolgoi commenced shipment of product to customers in July 2013. Oyu Tolgoi is managed by Rio Tinto, which is investing global expertise and cutting-edge technology to help develop Mongolia’s mining industry and ensure Oyu Tolgoi is one of the world’s most advanced mines. For Oyu Tolgoi, nothing matters more than safety. The business operates under the principle that if a job cannot be done safely, it will not be done at all.

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