– 80 per cent of the total profit of the Oyu Tolgoi project will be generated by the underground mine –
Ulaanbaatar, Mongolia – The Mongolian Mining Investment Forum, ‘Discover Mongolia – 2012’ was held 30-31 August in the Children’s Palace of Mongolia in Ulaanbaatar. Oyu Tolgoi sponsored this annual international mining investment forum for the 8th year. On the first day of the Forum, management of Oyu Tolgoi LLC gave a presentation on the progress of the world-class mining project, including successes to date and future plans.
In his presentation ‘Partnership breeds success’, Cameron McRae, President and CEO of Oyu Tolgoi LLC said, “The Oyu Tolgoi project, bringing long term sustainable development to the Mongolian economy, is ready to move into production phase earlier than projected. This success is due to the hard work and partnerships of the Mongolian Government, the investors, over 2,000 Mongolian supplier companies and 10 thousand Mongolian employees”. The Oyu Tolgoi CEO emphasised, “The Oyu Tolgoi Investment Agreement was signed in 2009 as Mongolia created a stable business environment for the investors. Since then, foreign investment in Mongolia has increased by 13 times, not counting the Oyu Tolgoi investment. Up to 71 per cent of the total cash flow of the Oyu Tolgoi project is directed to the Government of Mongolia. According to research from the International Monetary Fund, Mongolians, without taking any risk, are beginning to benefit from profits of Oyu Tolgoi”.
Opening the afternoon session of the ‘Discover Mongolia-2012’ forum on 30 August, Matthew Gili, Vice President, Resource Strategy and Innovation at Oyu Tolgoi, made the presentation ‘Global mining in Mongolia’. Gili said, “Today’s success of mining the ore from the open-pit mine and getting it to the concentrator is just beginning. 80 per cent of the total profit of the Oyu Tolgoi project will be generated by the underground mine. In the next five years, development of the underground mine, construction of the Oyu Tolgoi power station and expansion of the concentrator, will be undertaken”.
There are less than 10 world-class underground mines that implement the block-caving method. Global mining company, Rio Tinto, the investor and manager of the Oyu Tolgoi project, has a wealth of experience in underground mine development and manages two of those world-class mines.
Cameron McRae speech and ‘Partnership breeds success’ presentation.
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.
For more information, connect with us on Facebook and Twitter.
Leave a Reply
You must be logged in to post a comment.