Press release: Oyu Tolgoi – update on production and operations

– 140,000 tonnes of concentrate produced in second quarter, 2014 –

Ulaanbaatar, Mongolia – Today, Turquoise Hill Resources, released its quarterly production report, providing an update on production and performance relating to Oyu Tolgoi, which coincided with the first anniversary of commencement of concentrate shipments.

Between April and June 2014, Oyu Tolgoi produced 140,000 tonnes of concentrate, bringing total production so far this year to 242,900 tonnes.

During the quarter, concentrate sales increased significantly driven by ongoing improvements in customer logistics and marketing. As a result, sales exceeded production, resulting in an inventory drawdown for the quarter.

Oyu Tolgoi President and CEO, Craig Kinnell, said: “Today’s quarterly production and sales figures show that we are making the Oyu Tolgoi mine stronger as we continue on our path to becoming a safe, sustainable, profitable, and internationally competitive business.

“Last week’s anniversary was a true milestone for Oyu Tolgoi – and Mongolia – as we celebrated the first anniversary of shipment of product.

“Oyu Tolgoi’s employees have achieved a tremendous amount this year, and we are excited about taking the mine forward. I have great confidence in what we have achieved; we have sown the seeds to create a safe and thriving partnership, developing one of the best ore bodies in the world”.

As well as focusing on production and increasing shipments, Oyu Tolgoi continues to improve performance in a number of areas:

• Water recycling has now reached 86.4 per cent, meaning Oyu Tolgoi reuses each drop of water more than five times. This makes it one of the very best copper mines in the world for water efficiency, using less than half the water per tonne of ore processed than average copper mines worldwide.
• A five-year investment of more than US$126 million in education and training has been completed with more than 13,000 Mongolians benefiting from the programme.
• More than 200,000 seedlings have been planted, ready for ongoing rehabilitation in the South Gobi. Stringent monitoring of local water supplies continues, with ongoing development of new water sources for local people and animals.
• The Oyu Tolgoi workforce is 92 per cent Mongolian.
• Following the connection of Khanbogd with permanent power last year, Oyu Tolgoi plans soon to build a road from the mine to the soum centre. This is expected to act as a catalyst to help Khanbogd thrive, driving growth and providing more options for Oyu Tolgoi’s employees to live locally with their families.

Oyu Tolgoi’s latest production figures can be found below. Further information can be found in Turquoise Hill Resources’ production report, and Rio Tinto’s quarterly update.

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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