Further to our press release dated 18th November, 2013 and Turquoise Hill Resources (TRQ) press release dated 12th February 2014, Erdenes Oyu Tolgoi LLC (EOT), 34% shareholder of the Oyu Tolgoi LLC (OT), wishes to clarify its current status in resolving outstanding issues. The TRQ press release dated 12th February, 2014 has announced that an option to restart the underground development has been proposed. The timing of shareholder approval and continuation of the underground expansion operation are dependent on the completion of the Feasibility Study.
We understand that Feasibility Study for the underground development (including the underground investment proposal) will be delivered by Rio Tinto (RT) in Q2, 2014.
Through ongoing discussions, the EOT, TRQ and RT are currently resolving all outstanding issues and proceeding to the finalization of the 4.2 billion USD project financing. Our proposal is that project financing should be fully committed to the underground mine development. The EOT 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 Agreements.