Press Release – Q2 2024 Performance Results

Press release:

Q2 2024 PERFORMANCE RESULTS

Highlight of 2024:

• We organised eight “OT on the Go!” events at universities and colleges in Ulaanbaatar, Erdenet, and Darkhan successfully. These events engaged young adults and students with series of professional talks in career journey and information about educational programmes Oyu Tolgoi implements.
• Completed the technical rehabilitation of 91.6 hectares of disturbed, abandoned land by irresponsible mining in Khurgadiin Am in Khongor soum, and Khar Yamaat in Sharyn Gol soum of Darkhan-Uul province
• Contributed MNT 1 billion to assist 3,333 herder families lost over 70% of their livestock to dzud disasters, aiding those who lost over 70% of their livestock across 12 provinces as part of a “We are together” campaign initiated by Mongolian National Mining Association .
• Donated equipment worth MNT 1.5 billion to the Forest Agency, enhancing the capacity of longstanding tree nurseries and supporting reforestation efforts.
• Celebrated the graduation ceremony of Mongolia’s first domestically trained geotechnical engineers from the co-developed programme in collaboration with the University of Science and Technology, Rio Tinto Group, and Oyu Tolgoi. The programme provides young people interested in the mining profession the opportunity to acquire world-class knowledge and education within their own country.
• Launched a “Environmental Good Practice Sharing Programme” in partnership with Unread Media in last February, sharing extensive environmental and biodiversity good practices. Out of 150 applicants, 20 participants continued their journey of benefiting from learning best practices and expanding their professional networks.
• Held a groundbreaking ceremony for a 12.6 km road from the northern gate of the Oyu Tolgoi mine to the Tavantolgoi coal transportation road.
• The construction of clean and wastewater pipelines in the ger district of Khanbogd soum is completed. With the funding from Khanbogd Development Catalyst Fund of Oyu Tolgoi, 20.1 km of clean water and 17.6 km of wastewater pipelines have been built over the course of two years. As a result, 1,000 households and more than 60 organizations are connected to the access to clear and wastewater pipelines. It means almost half of KB households are now connected to sewage system.

Ulaanbaatar, Mongolia – Oyu Tolgoi released its latest performance scorecard highlighting key performance metrics for the second quarter of 2024 and provided an update on the underground mine production.

• Oyu Tolgoi continues the ramp-up of the underground mine safely ahead of plan with a total of 114 drawbells opened from Panel 0 as of 17 April 2024, including 14 drawbells during thisquarter.
• Construction of the conveyor to surface works continued to plan and was 97% complete at the end of the quarter.

• Construction works for the concentrator conversion remain on schedule. Commissioning is expected to be progressively completed from the fourth quarter of 2024 through to the second quarter of 2025.

• Construction of primary crusher 2 is progressing to plan and remains on track to be completed by the end of 2025.

• Oyu Tolgoi underground development has reached many significant milestones. To mention few, the breakthroughs of Shafts 3 and 4 to the underground mine were completed in April. Both shafts have had their sinking infrastructure removed and are now being connected to Shaft 4’s exhaust ventilation fans and Shaft 3’s ventilation heaters

We are entering negotiations on a new Collective Labour Agreement in the second half of the year. Our current agreement expires in April 2025.

Operational Excellence

• Prioritised safety above all else and achieved an All Injury Frequency Rate (AIFR) of 0.12 per 200,000 people/hours worked.
• Maintained second quartile water-efficiency, using less than 0.55 cubic meters per tonne of concentrate (0.33 cubic meters for Q2 2024) compared to the 1.2 cubic meters per tonne average.
• 97.2% of Oyu Tolgoi’s workforce are national employees. We are also proud to have 23.3% female workforce across Oyu Tolgoi LLC.
• Since 2010, Oyu Tolgoi has paid US$17.9 billion or MNT44 trillion in taxes, fees and other payments, including VAT to Mongolian suppliers.
• Partnered with 889 suppliers, including 588 in-country businesses, accounting for 90.7% of the total operational procurement spend.
• Q2 2024 Performance Scorecard can be viewed here.

Production update

• Mined copper production increased 23% from the second quarter of 2024. During the quarter, we delivered 1.5 million tonnes of ore milled from the underground mine at an average copper head grade of 2.02% and 9.3 million tonnes from the open pit with an average grade of 0.37%. This ramp-up is in line with the long-term plan to reach 500 thousand tonnes of copper production (stated as recoverable metal) for the Oyu Tolgoi underground and open pit mines for the years 2028 to 2036.

Oyu Tolgoi Production Data

All data represents full production and sales on a 100% basis