Press release: OYU TOLGOI Q4 2023 PERFORMANCE RESULTS

Press release: OYU TOLGOI Q4 2023 PERFORMANCE RESULTS

Ulaanbaatar, Mongolia – Oyu Tolgoi released its latest performance scorecard highlighting key performance metrics for the fourth quarter of 2023 and provided an update on the underground mine production.

Oyu Tolgoi continues the ramp-up of the underground mine safely ahead of plan with a total of 86 drawbells opened from Panel 0 as of 30 December 2023, including 14 drawbells during the fourth quarter. The operation is expected to ramp up to deliver an average mined copper production of ~500ktpa (100% basis) between 2028 and 2036.

Construction of conveyor to surface works continued to plan and approaching 88% completion as at the end of December. Commissioning remains on track for the second half of 2024. Construction works for the concentrator conversion remains on schedule. Commissioning is expected to be progressively completed from the fourth quarter of 2024 through to the second quarter of 2025.

During the 4^th quarter of 2023, Rio Tinto, Oyu Tolgoi, and the Government of Mongolia continued to work together towards the implementation of Mongolian Parliamentary Resolution 103.

Highlight of 2023:

• Underground mine production was succesfully commenced on 13 March 2023;
• Oyu Tolgoi introduced its refreshed strategy, Creating Prosperity. Together. Our refreshed strategy is fortified by four pivotal pillars, People, Partnership, Planet, and Profit, will guide us into the next stage of our journey for the next 10 years.
• Total in-country spend reached US$16.8 billion in taxes, fees, and other payments
• Oyu Tolgoi carried out a technical rehabilitation of 400.4 ha of land disrupted and abandoned by irresponsible artisanal miners in the Yalbag Valley of Selenge Province;
• The Ministry of Environment and Tourism, the Governor’s Office of Darkhan-Uul Province, and Oyu Tolgoi LLC signed a cooperation agreement to rehabilitate 187 ha of land in Darkhan-uul Province;
• Maintained one of the highest water use efficiency per tonne of ore produced compared to similar global operations;
• “May you live past 80” Men’s Health Campaign consecutively continued for the third year;
• Oyu Tolgoi was honored with the ” Top National Supplier Supporter Entrepreneur” Award in the “Entrepreneur-2023” event organized by the Mongolian Chamber of Industry and Commerce;
• Oyu Tolgoi was honored with “The Best Investor Organization in Education” Award by the Ministry of Education and Science;
• Oyu Tolgoi was recognised as the “Most Pleasant Place to Work 2023” according to a survey conducted by the Mongolia Talent Network, a multi-national recruitment business.

Operational Excellence

• Prioritised safety above all else and achieved an All Injury Frequency Rate (AIFR) of 0.20 per 200,000 people/hours worked.
• Maintained first quartile water-efficiency, using less than 0.55 cubic meters per tonne of concentrate (0.31 cubic meters for Q4 2023) compared to the 1.2 cubic meters per tonne average.
• 97.2% of Oyu Tolgoi’s workforce are Mongolian citizens. We are proud to have 23.3% female workforce across Oyu Tolgoi LLC.
• Since 2010, Oyu Tolgoi has paid US$4.3 billion or MNT10.3 trillion in taxes, fees, and other payments, including VAT, to Mongolian suppliers.
• Partnered with 969 suppliers, including 700 national businesses, accounting for 89% of the total operational procurement spend.
• Q4 2023 Performance Scorecard can be viewed here.

Production update

• Mined copper production on a 100% basis increased 26% compared to the fourth quarter of 2022 as the ramp-up in underground production continued to plan, delivering higher average copper head grades of 0.53%. During the 4th quarter of 2023, we delivered 0.9 million tonnes of ore milled from the underground mine at an average copper head grade of 1.59%, and 8.7 million tonnes from the open pit with an average grade of 0.42%.

• Shaft sinking continued during the quarter and at the end of December, shafts 3 and 4 reached 923 metres and 1,013 metres below ground level, respectively. Updated final depths required for shafts 3 and 4 are 1,130 and 1,176 metres below ground level, respectively. We expect both shafts to be commissioned in the second half of 2024 with shaft sinking rates continuing to meet those required for this timeline.

Oyu Tolgoi Production Data

All data represents full production and sales on a 100% basis