On the 22th of April, Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company signed a Cooperation Agreement with its partner communities – composed of the Umnugobi aimag, and the Khanbogd, Manlai, Bayan-Ovoo and Dalanzadgad soums.
The agreement sets out how the parties will work together towards sustainable development in important areas such as water, environment, pastureland management, cultural heritage, tourism, local business development and procurement.
The main goal of the agreement is to provide a strong governance structure for Oyu Tolgoi and local communities to achieve more effective cooperation and address mutual obligations.
Under the agreement, Oyu Tolgoi will make a contribution of 5 million dollars every year to a Development Support Fund (DSF) – administered jointly between Oyu Tolgoi and the Community – for community programmes and projects in the Umnugobi aimag.
Mr Andrew Woodley – President and CEO of the Oyu Tolgoi company, said: “The Cooperation Agreement is an important step forward in building a truly symbiotic relationship with the communities we live and work in. The agreement builds on the great work that has already been achieved – in roads, power, infrastructure, education and health – and sets a clear direction for future collaboration and cooperation. I am certain that this is a strong foundation for growth; and, that the agreement will be a benchmark and model for other projects in the future.”
Congratulating the partner communities and Oyu Tolgoi, Mr Bat-Erdene, Member of Mongolian Parliament said: “The Cooperation Agreement signed today is a clear reflection of the Umnugobi aimag’s focus on development.”