GOVERNMENT AND OYU TOLGOI SECURE AGREEMENT ON SOUTH GOBI POWER SOLUTION

Ulaanbaatar /MONTSAME/ The government of Mongolia and Oyu Tolgoi LLC have secured a landmark agreement aimed towards a power solution for the South Gobi, providing a pathway for strengthening the power supply network in Mongolia. The Ministry of Energy, on behalf of the government, and Oyu Tolgoi LLC Thursday signed the agreement which lays out a framework for long-term strategic cooperation between the Government and OT to deliver a comprehensive and enduring energy plan for the South Gobi. The Prime Minister N.Altankhuyag participated in the official signing ceremony in the State House where M.Sonompil, the Minister of Energy, and S.Otgonbayar, a head of the Energy Regulatory Commission--on behalf of the Government, and G.Batsukh, a Chairman of the Board of Directors, and Craig Kinnell, a president and CEO--on behalf of OT LLC, signed the Power Sector Cooperation Agreement (PSCA). "The PSCA id the positive development for OT," said Rio Tinto Copper chief executive Jean-Sebastien Jacques. "It demonstrates how the Government and we can work together to achieve shared objectives--in this case, developing a long-term, economically competitive, and reliable power supply in the South Gobi." "Successful implementation of the PSCA will add significant domestic power capacity, strengthen Mongolia’s energy supply network, encourage investments and jobs--both during construction and in operations," Minister Sonompil said. The agreement provides a framework for a broad range of power-related issues. The centerpiece of the PSCA is an international tender process to identify and select an independent power provider to privately fund, construct, own, and operate a power plant to supply electricity, with OT as the primary consumer. Present at the ceremony were also members of the cabinet and officials, including D.Gankhuyag, the Minister of Mining; D.Delgertsogt, the State Secretary for Ministry of Energy; M.Enkhsaikhan, a director of the Tavan Tolgoi Power Plant; and Da.Ganbold, CEO of the Erdenes Oyu Tolgoi; joined senior representatives of Rio Tinto and Turquoise Hill Resources, including Mr Jacques and Turquoise Hill Resources CEO Kay Priestley.