“The compliance of these agreements by all parties has confirmed total spending in the country since 2010, which has brought considerable benefits to the Mongolian population and will continue to do so in the decades to come. The adoption of this resolution confirms the validity of all investment agreements between the Government of Mongolia, Rio Tinto and Turquoise Hill Resources. This brings to an end an 18-month review by the parliamentary working group of Oyu Tolgoi and the investment agreements that govern the company. The agreement contains an amended timetable for Oyu Tolgoi in order to meet its obligation to generate electricity on the national territory. The 300-megawatt facility will be majority owned by Oyu Tolgoi LLC and will be close to the Tavan Tolgoi coal basins. Work is scheduled to begin in 2020, according to major studies, and the facility is scheduled to begin up in mid-2023. “We will now work with all of Oyu Tolgoi`s partners to finalize the details and develop the energy project that will allow the company to realize its full potential for the benefit of all shareholders.” Jean-Sébastien Jacques, CEO of Rio Tinto Copper and Coal, said: “Our joint announcement today reflects the enormous leadership of all parties and paves the way for the resumption of work on underground development, which should bring considerable value to shareholders. Resolving outstanding issues reinforces the principles of the investment agreement signed in 2009, which has supported the $6 billion invested so far in Oyu Tolgoi and provides a clear and stable framework for the future. Arnaud Soirat Chief Executive Copper – Diamonds said: “Rio Tinto recognises the resolution of the Mongolian Parliament and notes that this does confirm the validity of all Oyu Tolgoi investment agreements.” There is much to be done to ensure that Oyu Tolgoi can realize its full potential, and we remain committed to finding ways to offer all shareholders even greater benefits from Oyu Tolgoi. Detailed information can be found in copies of the agreements below.
All Oyu Tolgoi shareholders will now work on the other technical specifications and trade agreements that underpin the framework agreement. Jeffery Tygesen, Managing Director of Turquoise Hill Resources, said: “The signing of this agreement is the culmination of the considerable work of Oyu Tolgoi shareholders last year. The agreement charts a way to revitalize the development of the underground mine and builds on Mongolia`s already released value of open pit mining, which provides jobs and other economic contributions, as well as best practices in mining standards. “The development of the Oyu Tolgoi underground mine will have a significant impact on the Mongolian economy, which will benefit Mongolian citizens for future generations.