– Huge tax payments – 10,000 Mongolian workers – 75 per cent complete –
Ulaanbaatar, Mongolia – Oyu Tolgoi, the gold and copper mine under development in the Umnugobi, broke record after record in 2011 as it grew into the largest project Mongolia has ever seen. The mine continues to be a major national achievement and is set for further achievements in 2012.
Some of the impressive statistics include:
- Oyu Tolgoi was recognised as one of the country’s major tax payers. During 2011 it paid 250 billion MNT in taxes and other payments to the government, despite not yet earning profits.
- Over 10,000 Mongolians working for the project at its peak.
- 3 trillion MNT spent on the project in 2011 – the most ever spent in one year in Mongolia – with more and more of that going to Mongolian suppliers.
- The launch of the largest vocational training programme in Mongolia’s history – training 3,300 Mongolians in a programme worth 110 billion MNT.
- The construction of Mongolia’s tallest building – the Central Heating Plant tower, and Mongolia’s deepest structure – the underground mine shaft, as well as the biggest structure in Mongolia – the Oyu Tolgoi Concentrator.
The huge investment in Oyu Tolgoi helped Mongolia achieve a growth rate of 20 per cent per annum in the third quarter of 2011 – the largest anywhere in the world. This progress promises an even more productive 2012. Mongolia – known as the ‘Wolf Economy’, is now the fastest expanding marketplace on earth.
Oyu Tolgoi is also contributing significantly to the development of the southern Gobi region. The company is building a powerline to the Khanbogd soum centre, constructing vocational training facilities and contributing to the funding of the sports and cultural complex in Dalanzadgad. The procurement strategy of Oyu Tolgoi provides significant support for local businesses which will continue to grow in 2012.
The Oyu Tolgoi project is now currently 75 per cent completed, with first excavation set for June 2012 and first commercial production (sales) in 2013.
Cameron McRae, CEO of Oyu Tolgoi, said: “This has been an incredible year of achievement for Oyu Tolgoi and it’s a truly historic moment for Mongolia. Whether it is new training and jobs for Mongolian workers or growing opportunity for local businesses, Oyu Tolgoi is delivering for Mongolia under the Investment Agreement. Here’s to an even more successful 2012!”.
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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