MONGOLIA WILL RECEIVE 54 PERCENT OF OT PROJECT YIELD

Ulaanbaatar /MONTSAME/ About this has been said in the "Transparent Mining" media release issued by the Ministry of Mining on Wednesday. The Ministry considers that the signing of the Oyu Tolgoi Underground Mine Development and Financing Plan by Erdenes Mongol LLC, Erdenes Oyu Tolgoi LLC (Mongolia) and by Turquoise Hill Resources Co.Ltd. and Rio Tinto International Holdings Limited (investors) on this May 18 in Dubai has resolved controversial issues in the Investment agreement, has facilitated the underground mine development, has increased foreign exchange flow to Mongolia, and has given a positive signal to the potential foreign investors. The Plan backs the issue of Mongolia’s holding over 54 percent of all yield of the OT project, which was not reflected in the investment or shareholder agreements. The sides have agreed to enable Mongolia to monitor the operational expenditures, to reduce the management costs to three percent in the course of the underground development, and to dedicate USD 4.2 billion of the project credit to the underground mine development.