Introduction

Ерөнхий танилцуулга

ДЭЛГЭРЭНГҮЙ МЭДЭЭЛЭЛ

The Government of Mongolia, "Rio Tinto International Holdings Limited", "Ivanhoe Mines Mongolia Inc" LLC (now "Oyu Tolgoi" LLC), and "Ivanhoe Mines Limited" signed the "Investment Agreement" in 2009 to develop the Oyu Tolgoi copper and gold deposit. Additionally, "Erdenes MGL" LLC (now "Erdenes Mongol" LLC), Ivanhoe Oyu Tolgoi (BVI) Ltd, Oyu Tolgoi Netherlands B.V., and Ivanhoe Mines Mongolia Inc LLC signed the "Shareholders Agreement" in 2009, and the "Amended and Restated Shareholders Agreement" in 2011.

As a result of these agreements, the Mongolian government, through the state-owned company "Erdenes MGL" LLC (now "Erdenes Mongol" LLC), acquired 34% ownership of "Oyu Tolgoi" LLC. Following Government Resolution No. 348 of 2011 and Board Resolution No. 28 of "Erdenes Mongol" LLC, a wholly state-owned subsidiary company "Erdenes Oyu Tolgoi" LLC was established, and the state's 34% shareholding in "Oyu Tolgoi" LLC was officially transferred to it.

Erdenes Oyu Tolgoi LLC is working to fully implement the decisions of the Parliament and Government of Mongolia on "Measures to Increase Mongolia’s Benefits from the Oyu Tolgoi Deposit."

IN PARTICULAR

  • In August and September 2022, based on mutually agreed written statements by the involved parties, the Underground Mine Development and Financing Plan (UMDFP) and its Addendum were terminated, nullified, and their legal effect ceased in accordance with Mongolian law, and resulting issues were addressed accordingly.
  • To complete an independent audit of the underground development financing of Oyu Tolgoi, present the results to the Government and the “Working Group,” and prepare proposals to support ongoing negotiations between the parties.
  • In accordance with instructions from the Prime Minister and the “Working Group,” to revise the technical and economic feasibility study (TEFS) of the “Kherlen Toonoo” water complex aimed at improving water usage, and in collaboration with the Oyu Tolgoi project, work to comprehensively resolve the water supply needs of industrial and mining projects in the Gobi region from the Khangai region, and ensure the project's implementation.
  • To cooperate with "Oyu Tolgoi" LLC based on a formal agreement to improve the project's environmental, social, and governance (ESG) aspects.
  • To ensure fulfillment of tax claims, gain mutual understanding and compliance in the future, collaborate with the working group, and conduct relevant calculations, studies, and provide information.

By implementing the above goals, programs, and plans, concrete mechanisms are being created to enhance the project's value and competitiveness and to increase Mongolia’s benefits from the project.