Ulaanbaatar, Mongolia – The Government of Mongolia and Oyu Tolgoi LLC secured a landmark agreement today aimed towards a power solution for the South Gobi, providing a pathway for strengthening the power supply network in Mongolia.
The Ministry of Energy, on behalf of the Government of Mongolia, and Oyu Tolgoi LLC signed the agreement which lays out a framework for long-term strategic cooperation between the Government and Oyu Tolgoi to deliver a comprehensive and enduring energy plan for the South Gobi region.
Mongolian Prime Minister N.Altankhuyag participated in the official signing ceremony in the State House where M.Sonompil, Minister of Engery, and S.Otgonbayar, Head of the Energy Regulatory Commission, on behalf of the Government and G.Batsukh, Chairman of the Board of Directors, and Craig Kinnell, President and CEO, on behalf of Oyu Tolgoi LLC signed the Power Sector Cooperation Agreement (PSCA).
Rio Tinto Copper chief executive Jean-Sebastien Jacques said: “The PSCA is a positive development for Oyu Tolgoi. It demonstrates how the Government and we can work together to achieve shared objectives—in this case, developing a long-term, economically competitive, and reliable power supply in the South Gobi.”
Minister M.Sonompil said: “Successful implementation of the PSCA will add significant domestic power capacity, strengthening Mongolia’s energy supply network. It will also encourage investment and jobs – both during construction and in operation.”
The agreement provides a framework for a broad range of power-related issues. The centerpiece of the PSCA is an international tender process to identify and select an independent power provider to privately fund, construct, own, and operate a power plant to supply electricity, with Oyu Tolgoi as the primary consumer.
Government Ministers and officials, including Minister of Mining D.Gankhuyag, State Secretary for Ministry of Energy D.Delgertsogt, Tavan Tolgoi Power Plant Director M.Enkhsaikhan and Erdenes Oyu Tolgoi CEO Da.Ganbold, joined senior representatives of Rio Tinto and Turquoise Hill Resources, including Mr Jacques and Turquoise Hill Resources CEO Kay Priestley, at the ceremony.
About Oyu Tolgoi LLC (http://ot.mn/en)
Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company, is a strategic partnership between the Government of Mongolia, Turquoise Hill Resources and Rio Tinto. Located in the Umnugobi, Oyu Tolgoi has commissioned Concentrator plant in December, 2012 and commenced shipments of copper concentrate in July of 2013. As the biggest single investment in Mongolian history, Oyu Tolgoi already is a major driver of the country’s economy.
Oyu Tolgoi is managed by Rio Tinto, which is investing global expertise and cutting-edge technology to help develop Mongolia’s mining industry and ensure Oyu Tolgoi is one of the world’s most advanced mines. Oyu Tolgoi is developing a nationwide vocational training programme, regional infrastructure, and is committed to ensuring more than 90 per cent Mongolian national employment and a strong Mongolian supplier base. These programmes will help drive economic growth for generations to come.
Oyu Tolgoi’s core commitment is to a safe work place and setting a new standard in environmental care.
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