Oyu Tolgoi focuses on Mongolian companies for procurement, construction and service work

Over 86 per cent of new construction-related orders awarded to Mongolian companies

Ulaanbaatar, Mongolia – Oyu Tolgoi LLC announced today procurement statistics for Oyu Tolgoi construction from January 1, 2010 through August 15, 2010. The construction group of Oyu Tolgoi has focused procurement and contract spending with Mongolian registered companies.

“Oyu Tolgoi’s commitment to working with Mongolian companies and contractors is creating more business for Mongolian companies and driving full-scale construction progress at the site:” said Steve Garcia, head of the construction group.

“From our work with Mongolian companies we know that they can deliver professional products and services at competitive market prices and we are very proud that our construction activities are overwhelmingly dominated by Mongolian companies.”

Mr. Garcia noted that from January 01, 2010 until August 15, 2010, Oyu Tolgoi signed 98 contracts with Mongolian companies valuing US$206 million. In addition, Mongolian companies filled 849 purchase orders totalling US$50.2 million and accounting for 86 per cent of the total purchase orders for the period.

Many of the contracts include major site development and construction work, including:

• Steel structure and concrete work at the future copper-gold concentrator
• Construction of4,500bed employee and contractor camp facilities
• Installation of two new concreteproducing batch plants, including Mongolia’s largest, with a daily capacity of 200 cubic metres
• Foundational work related to the construction of the Shaft #2 headframe
• Installation of diesel power generation station
• Earthworks at the future open pit mine
• Light vehicle leasing and maintenance
• Operation and maintenance of site utilities, including employee housing and catering services
• Employee secondment and personnel services
• Operation and maintenance of fuel distribution and storage facilities
• Charter flight services
• Site security services 
• Engineering services
• Local transportation
• Information Technology and communications services