Oyu Tolgoi gives update on employment post investment agreement

Ulaanbaatar, Mongolia – Oyu Tolgoi confirmed today that it now has 4,740 Mongolian and foreign employees and contractors working for the project based at the Oyu Tolgoi site, at the head office in Ulaanbaatar and at its regional office in Dalanzadgad. Expatriate and foreign employees and contractors now total 1,760. Currently, Oyu Tolgoi has over 21 different nationalities working on the project.

These numbers are in line with the 60/ 40 per cent quota agreed by the Mongolian Government and Oyu Tolgoi in its Investment Agreement, which became effective four months ago. The ratio of Mongolian workers versus foreign workers now stands at 62.88 per cent versus 37.12 per cent.

When Oyu Tolgoi and the Mongolian Government signed the Investment Agreement it was agreed that:

• During the construction and expansion periods of the project, more than 60 per cent of the directly employed workforce must be Mongolian citizens
• When the site becomes operational, more than 90 per cent of the directly employed workforce will be Mongolian citizens
• Within five years of the commencement of production, more than 50 per cent of the employed engineers must be Mongolian, increasing to over 70 per cent after 10 years

Oyu Tolgoi Chairman Batsukh Galsan stated: “We are delighted with the progress at the site and with the involvement and commitment of the Mongolian workers.”

Ninety days after the Investor Agreement effective date, Oyu Tolgoi submitted a US$58 million comprehensive training strategy and plan to deliver training for a future Mongolian workforce to operate within Oyu Tolgoi.

Furthermore, Oyu Tolgoi will:

• Establish a graduate scholarship programme over a five year period for up to 200 domestic and 30 international scholarships for Mongolian students
• Establish international standard mining education and training curriculum at domestic universities

Giang Dang, Acting General Manager HR for Oyu Tolgoi added, “Oyu Tolgoi is committed to employing Mongolians and providing training and development opportunities so that we will have a world class workforce to operate our mine.”