Erdenes Oyu Tolgoi LLC (EOT), 34% shareholder of the project company on behalf of the Government of Mongolia (GOM), would like to provide an update on the Oyu Tolgoi Project (OT).
The successful completion of the construction of OT’s open pit mine in June 2013 signified a great milestone in the project’s overall development and officially commenced the production phase. Continuation of development of the underground mine is critical to the overall success of OT and the Government of Mongolia (GoM) looks forward to working with Turquoise Hill (TRQ) and Rio Tinto (RT) toward that goal.
Through ongoing discussions, the GoM, TRQ and RT are constructively resolving all outstanding issues. The shareholders are working collaboratively through a joint committee which has been facilitating all actions required for the timely construction, development and operation of the OT. These discussions also seek to establish a framework for increased cooperation going forward as the final development of the crucial underground mine.
The GoM remains fully committed to the continued and successful operation of the open pit mine, the financing and development of the underground mine, and, as a shareholder of OT, the terms of the Investment Agreement. The GoM is pleased with the similar commitment shown by TRQ and its majority shareholder, RT.
As project manager, RT has been working hard towards the completion of the underground mine design, construction plan and the finalization of the feasibility study for further development. The timing of shareholder approval and continuation of the underground expansion operation are dependent on the completion of the feasibility study and therefore not certain. However, the GoM is flexibly available to prioritize and continue the discussions on terms and conditions of the project financing separate from any other issues.
The Mongolian shareholder remains committed to continue the constructive discussions with RT in order to structure and complete the project financing to fund the underground mine development.
Erdenes Oyu Tolgoi LLC