Press release: Oyu Tolgoi ensures IA summary accessible to all Mongolians

– Results in numerous economic and educational benefits for Mongolia –

Ulaanbaatar, Mongolia – In the spirit of accessibility and transparency, Oyu Tolgoi today posted an executive summary of the Investors Agreement (IA) on its website (www.ot.mn). The IA is the principle agreement that made the development of the world’s largest undeveloped gold and copper mine possible. Since the signing of the IA, nearly three years ago, Phase 1 (open-pit development) of the project is expected to be delivered on time and cost effectively. Additionally, Oyu Tolgoi is on schedule to achieve commercial production in the first half of 2013.

With power on, Phase 1 of the project expected to be delivered on time and commercial production right around the corner, we want to ensure every Mongolian has access to the agreement that is creating jobs and improving lives. As a result of the IA, we are training thousands, building education centers and working with local businesses and suppliers. Without question, the IA partnership has been an absolute success for Mongolia, and we are pleased to make such an important document available to everyone.

The IA has resulted in the following training and education benefits for Mongolia:

• Oyu Tolgoi is providing the biggest ever investment in education in Mongolia; investing US$126 million – that’s 168 billion MNT- in the vocational education system over 5 years.
• Oyu Tolgoi is building brand new vocational education centres in Khanbogd, Nalaikh and Dalanzadgad.
• Oyu Tolgoi is upgrading and expanding 4 existing TVET schools with modern training equipment in Dalanzadgad, Choir, Erdenet and Darkhan.
• Nearly 180 students from Umnugobi aimag, not including our national and international scholarship recipients, have received Oyu Tolgoi full scholarship for higher education.
• 120 national scholarships, 15 of which were international scholarships awarded to young Mongolian students, studying in Canada, USA and Australia.
• 65 Mongolians enrolled in graduate development programs, undergoing on-the-job training at Oyu Tolgoi site, at Kennekott Copper (USA), Northparks (Australia) and in Singapore.

The IA has resulted in the following economic benefits for Mongolia:

• From 2010 through to the end of August of 2012, a total of 1,058,226,585,000 MNT (US$803 million) in taxes, fees and payments has been paid by Oyu Tolgoi LLC to the government of Mongolia and government bodies
• Oyu Tolgoi has spent US$1,104,638,432 on domestic procurement (businesses/suppliers) in Mongolia and the domestic businesses have created additional 2471 jobs as a result of their business with Oyu Tolgoi.
  • 56 per cent has gone directly to Mongolian business and suppliers.
  • In 2012, alone, 67 per cent of our businesses and suppliers we worked with were Mongolian.

About Oyu Tolgoi LLC (http://en.ot.mn/)

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.

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