Ulaanbaatar, Mongolia - The following statement was issued today regarding Wednesday’s meeting of Oyu Tolgoi’s shareholder representatives.
“Oyu Tolgoi has delivered construction ahead of schedule and in line with the budget submitted to the Oyu Tolgoi board and government shareholder representatives”, said Rio Tinto Copper Chief Executive Andrew Harding. “We produced our first copper concentrate last week, and remain on schedule for commercial production in the first half of 2013.
“Nevertheless, substantive issues about the ongoing development of the project have been raised by all shareholders. The meeting was an opportunity to exchange perspectives on those concerns.”
“Financing, constructing and operating one of the world’s largest copper mines is an admittedly complex matter,” said Oyu Tolgoi CEO and President Cameron McRae. “We have always been fully transparent with all our shareholders regarding our project finances, costs and operations. We will continue to hold as many frank and open discussions as needed to help clarify issues raised by the Government of Mongolia.”
Construction remains on budget, coming in at US$6.2 billion, which is in line with the project estimate submitted to the Oyu Tolgoi board and government shareholders in December 2010.
About Oyu Tolgoi LLC (http://ot.mn/en)
Oyu Tolgoi LLC is Mongolia's largest copper and gold mining company and is a strategic partnership between the Government of Mongolia (34 per cent stake), Turquoise Hill Resources (66 per cent) and Rio Tinto. Rio Tinto is the major shareholder in Turquoise Hill Resources and the manager of the Oyu Tolgoi project. In addition to dividends from its 34 per cent stake in Oyu Tolgoi, the Government of Mongolia will receive taxes and royalties.
Oyu Tolgoi, located in the Gobi desert in southern Mongolia, will be one of the largest and highest-grade copper and gold mines in the world. It is the largest project ever developed in Mongolia, requiring a capital investment for phase 1 of more than US$6 billion.
Oyu Tolgoi is committed to contributing to a sustainable future for Mongolia. At least 9 out of 10 employees will be Mongolian once the mine is in production and Oyu Tolgoi is investing US$58 million dollars (78 billion MNT) in training and education and an additional US$27 million dollars (36 billion MNT) in the Workforce Employment Project designed to help address the general skills shortage in Mongolia
Oyu Tolgoi's key priorities are the health and safety of employees, best-practice environmental management, contributing to sustainable communities and always doing business with integrity, for the benefit of all the project's shareholders and the people of Mongolia.
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.