Oyu Tolgoi receives 5th best tax payer award

CEO McRae receives certificate from Prime Minister

Ulaanbaatar, Mongolia – The Prime Minister of Mongolia yesterday recognised Oyu Tolgoi as the fifth largest tax payer in Mongolia in 2011, at a ceremony at Government House attended by Oyu Tolgoi's President and CEO Cameron McRae.

I’m delighted that Oyu Tolgoi is being recognised for the enormous contribution it is making to the Mongolian economy,” said McRae. “We have paid over 250 billion MNT in direct taxes in 2011. If you count indirect payments, we have contributed far more and we have yet to start operations."

Oyu Tolgoi is due to start production in 2012 and will sell its first product in late 2012 or early 2013. More than 7.7 trillion MNT will be invested into the site before the mine becomes operational.

Rio Tinto and Ivanhoe Mines, the major shareholder and the manager of Oyu Tolgoi, are jointly spending an average of 10.4 billion MNT every day on goods and services.

Oyu Tolgoi has contracted with over 1,000 Mongolian suppliers. To date, 1.3 trillion MNT of the 3.3 trillion MNT spent so far has been committed to local suppliers.

About Oyu Tolgoi LLC (www.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), Ivanhoe Mines (66 per cent) and Rio Tinto. Rio Tinto is the major shareholder in Ivanhoe Mines and the manager of Oyu Tolgoi. 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 one 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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