Press release: Oyu Tolgoi publishes proof on tax payments

– Response to allegations on tax and advertisements –

Ulaanbaatar, Mongolia – Allegations have been made in the press today by some politicians that Oyu Tolgoi never submits its financial reports and its ads about tax and other payments are misleading.

Oyu Tolgoi publishes the following scan copy of the cover of its financial statement for the second quarter of 2012 duly signed and officially sealed by the relevant Mongolian authorities. The company has a track record of regularly paying its tax and other payments as well as its financial reports strictly in compliance with the laws and legislation of Mongolia.

“The mine has not become fully operational but Mongolia has already received 1.06 trillion MNT (approximately US$804 million) in direct tax, fees and other payments. Of this amount almost 437 billion MNT are taxes and the balance 623 billion MNT include other fees and payments, workplace employment programme, tax prepayment and other payments to the Government of Mongolia”, said Justin Carey, General Manager of Finance, Oyu Tolgoi LLC.

Referring to a recent advertising campaign, the politician claims that ‘the 21-79 per cent is a lie’. This may be a challenge to a 2010 International Monetary Fund report that concludes that the Mongolian people will receive up to 71 per cent of the cash flows from Oyu Tolgoi. The proof of this is freely available on the following government link http://www.iltod.gov.mn/wp-content/uploads/2010/07/ADM-report.pdf.

For additional information, please contact:
Burenbayar.Ch
Phone – 95099592

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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