Oyu Tolgoi releases Q1’17 Performance Scorecard

– World-class safety and environmental performance

– Recognised as Mongolia’s Top Tax Payer of 2016 and ranked second on Top-100 list

– US$37.2mn taxes paid; US$75mn national procurement in Q1’17

Oyu Tolgoi today released the latest edition of its scorecard updating on its performance for the first quarter of 2017.

In the first three months, Oyu Tolgoi paid US$37.2 million in taxes and fees and other payments to the Government of Mongolia, and was also named the Top Tax Payer for 2016 by the Taxation Office.

Over the period, the Oyu Tolgoi workforce stood at over 93 per cent Mongolian, including the underground development workforce. The company delivered over 150,000 man-hours of training to over 7,000 employees and contractors over the quarter.

The company continued its world-class environment performance, using only 0.405 cubic metres of water per tonne of ore processed – a third of the water use compared to similar operations worldwide, and achieving an average water recycling rate of 88.7 per cent water over the period.

Sustainable development remained a key focus with $2.9 million invested in projects in the South Gobi over the quarter, and supported by national and South Gobi procurement activities totaling $75 million and $22 million respectively.

Oyu Tolgoi continues to implement comprehensive environmental, community and sustainable development projects in the Umnugobi, Khanbogd and neighboring soums, including participatory environment monitoring, skilling programmes, pastureland management, biodiversity programmes, training and more.

Open-pit operations focused mainly on Phase 6 in the first quarter, which has higher copper grades but relatively low gold grades. Oyu Tolgoi’s concentrator achieved record throughput levels for the quarter, ore treated during Q1’17 increased 2.7 per cent over Q4’16 and average daily throughput of 112,100 tonnes for Q1’17 increased 5.1 per cent over Q4’16. Copper production for Q1’17 decreased 16.3 per cent over Q4’16 and Q1’17 gold production decreased 49.0 per cent over Q4’16 due to lower grade and recoveries at the lower end of the grade recovery curve.

Please click here to see the Scorecard.

Turquoise Hill expects Oyu Tolgoi to produce 130,000 to 160,000 tonnes of copper and 100,000 to 140,000 ounces of gold in concentrates for 2017. Oyu Tolgoi’s open-pit operations are expected to mine in Phases 4 and 6 during the year. In addition, stockpiled ore will be processed during the year. The lower production when compared to 2016 is primarily the result of approximately one-quarter less copper head grade and approximately one-half less gold head grade. During 2016, the mine plan for Phase 4 was divided into two stages, referred to as Phases 4A and 4B, in expectation of reaching the high-grade gold zone of Phase 4 around mid-2018. Accordingly, mine stripping for 2017 will focus on Phase 4A.

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Oyu Tolgoi Production Data

All data represents full production and sales on a 100 per cent basis