The Cabinet meeting of Mongolian Government was held on February 1, 2013, made a decision to set up independent inspection laboratory on Oyu Tolgoi copper concentrate. The fully dedicated and state-of-the-art laboratory will perform sampling and testing and it will be established under Central Geological Laboratory, which has proper laboratory premises and latest equipments, considered to reduce cost and avoid building new lab with overlapped services.
The comprehensive Oyu Tolgoi Investment Agreement took effect March 31, 2010, following confirmation by the Government of Mongolia that procedural and administrative conditions contained in the Investment Agreement had been satisfied within the allocated six-month period that has followed the agreement’s official signing in October 2009. On October 6, 2009, Turquoise Hill Resources and Rio Tinto signed a long-term, comprehensive Investment Agreement with the Government of Mongolia for the construction and operation of the Oyu Tolgoi copper-gold mining complex. In March, 2010 Rio Tinto has signed a binding agreement with a Chinese power company for the supply of electricity and became ready to produce and export copper concentrate.
It is crucial in this stage that an independent laboratory to verify copper and gold samples and to perform the export consignment sampling and testing to ensure complete independence from the mine operations management, to analyze contents of other elements and minors by using the existing facility. Hence, concentrate sales, sales revenue, tax revenues, cost and expenditure and dividend yield will be rational and efficient.