Press release: Mongolia’s bright future is greatly dependent on Oyu Tolgoi

– "I truly believe that the Oyu Tolgoi project will contribute to the development of the country and the livelihood of citizens" –

Ulaanbaatar, Mongolia – The concentrator at Oyu Tolgoi, now 85 per cent complete, will be commissioned into operation in the coming autumn. An investment of 7.8 trillion MNT is to be made up until 2013, when production is scheduled to begin.

The Government of Mongolia, an Oyu Tolgoi shareholder, already receives benefits from the project without having to invest public money in the project and without any risk-sharing. Oyu Tolgoi LLC will pay 900 billion MNT to the Government of Mongolia in taxes and premiums before production starts in 2013.

“I hold the opinion that Mongolia’s bright future is greatly dependent on Oyu Tolgoi. I also believe that the taxes, royalties, premiums, and dividends paid to the Government of Mongolia, a project shareholder, represent a significant contribution to the citizens’ livelihood and the development of the country,” said E.Tselmeg, HR and Training Superintendent of Oyu Tolgoi LLC.

P.Badamsuren, who was involved in the Oyu Tolgoi training programme and now works as a heavy equipment operator, said “I am getting paid as high a salary in Mongolia as is paid in industrialised countries. I am living a good life. I feel extremely happy about helping my family, improving my livelihood, buying a new home, and starting a new life.”

The Oyu Tolgoi investment is directly benefiting Mongolia by creating jobs, preparing specialised personnel, and strengthening national businesses. As of now, 9,250 Mongolians have a hand in the Oyu Tolgoi project development.

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), Ivanhoe Mines (66 per cent) and Rio Tinto. Rio Tinto is the major shareholder in Ivanhoe Mines 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.

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