Oyu Tolgoi signs Cooperation Agreement with Umnugobi communities
Dalanzadgad, Umnugobi - Oyu Tolgoi LLC today signed a Cooperation Agreement with its partner communities – composed of the Umnugobi aimag, and the Khanbogd, Manlai, Bayan-Ovoo and Dalanzadgad soums.
The agreement sets out how the parties will work together towards sustainable development in important areas such as water, environment, pastureland management, cultural heritage, tourism, local business development and procurement.
The main goal of the agreement is to provide a strong governance structure for Oyu Tolgoi and local communities to achieve more effective cooperation and address mutual obligations.
Under the agreement, Oyu Tolgoi will make a contribution of US$5 million every year to a Development Support Fund (DSF) – administered jointly between Oyu Tolgoi and the Community – for community programmes and projects in the Umnugobi aimag.
Andrew Woodley – President and CEO, Oyu Tolgoi, said: “The Cooperation Agreement – four years in the making – is an important step forward in building a truly symbiotic relationship with the communities we live and work in. The agreement builds on the great work that has already been achieved – in roads, power, infrastructure, education and health – and sets a clear direction for future collaboration and cooperation. I am certain that this is a strong foundation for growth; and, that the agreement will be a benchmark and model for other projects in the future.”
Addressing the gathering, Mr Batchuluun – Speaker, Umnugobi aimag, said: “This Cooperation Agreement brings together all parties in a commitment to building a relationship that is effective, transparent, mutually beneficial, and, one that contributes to the socio-economic development of the aimag.
“With this agreement, the Umnugobi aimag and partner soums are committing to providing tangible support to Oyu Tolgoi; it will help arrive at a common understanding of business priorities and issues, allowing us to move forward together.”
Mr Badraa – Governor, Umnugobi aimag: “The cooperation agreement opens the door for the development of the Umnugobi aimag, and will help create a brighter future for our citizens.”
Mr Buyan-Ulzii – Governor, Khanbogd soum, said: “The Cooperation Agreement provides for a range of development initiatives for our communities; balancing human-centric investment – that will develop the knowledge and skills of our people – with key infrastructure initiatives.”
Congratulating the partner communities and Oyu Tolgoi, Mr Bat-Erdene, Member of Parliament, said: “The Cooperation Agreement signed today is a clear reflection of the Umnugobi aimag’s focus on development.”
The Cooperation Agreement is a requirement under the Oyu Tolgoi Investment Agreement (OTIA) and the Mongolian Minerals Law. Equally importantly, Oyu Tolgoi believes that such an Agreement is vital part of its operations, and will assist in creating a future where community and cultural traditions are sustained and where the current and future generations have improved opportunity for health, education, employment and wealth creation.
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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