Ot presentation eng updated mar 4 2013

OYU TOLGOIBuilding the Future of Mongolia

БҮХ ЭРХ ХУУЛИАР ХАМГААЛАГДСАН © 2012, ОЮУ ТОЛГОЙ ХХК
COPYRIGHT © 2012 OYU TOLGOI , ALL RIGHTS RESERVED
2
A NEW RESOURCE
FOR MONGOLIA
• Very high-quality deposits reduce
production costs and make
Mongolia competitive in the world
market.
• The world’s largest undeveloped
copper and gold deposits.
• Oyu Tolgoi discovered in 2001.
• 50-100 years Anticipated mine life

3
RESOURCE
Molybdenum
81,600 ton
Copper
25,400,000 ton
Silver
5,144 ton
Gold
1,028 ton
Sukhbaatar
statue
Government
House
141 м
141м

4
OYU TOLGOI MINING COMPLEX
• Commercial production is
expected to commence
in the first half of 2013.
• Nominal capacity is
100,000 tons of raw ore
per day with an expected
concentrate production in
excess of 500,000 tons
per year.
• Raw open pit ore arriving
at the concentrator is
~0.5% Cu and 0.3g/t Au
(LoM) (much higher
grades in underground)

5
CONCENTRATOR
COARSE ORE STORAGE
The crushing/grinding circuit consists of
crushers, grinders, and conveyers to reduce
the size of the ore. The flotation circuit
separates valuable ore from less desirable
minerals. Chemicals and water are added to
the crushed ore which is then pumped into
large floatation cells.
In the Coarse Ore Storage Building ore is
delivered through an overland conveyor
and sorted by its size. The larger sized ore is
conveyed to the Pebble Crusher and the
smaller sized ore is transferred directly to
the mill located inside the Concentrator.
Concentrator Buyan Ukhaa
Sport Complex
Coarse Ore Storage

6
PRIMARY CRUSHER-OVERLAND CONVEYER
The Southern Oyu Open Pit ore will be hauled to a gyratory primary crusher that is located 1 km
to the NW. The construction of the primary crusher is expected to finish in 2012. A run-of-mine
ore stockpile near the crusher will absorb fluctuations in mine production and facilitate the
blending of different ore types.
Overland Conveyor
The conveyer is 2.7 km from the the
coarse ore storage area.

7
OPEN PIT
Open pit mining at Oyu Tolgoi will be a conventional shovel-truck
operation. Drilling, loading, hauling and dumping will be carried out
by an open pit mining work force.
Extraction of first ore of Oyu Tolgoi
mining from the open pit will take
place in June 2012.
Zaisan hill

8
SHAFT 1
Lateral mine
development
starts at 1,300
meters at Hugo
North.
Total length of
lateral
development
reached 12km
in 2012.
Underground
tunneling has
5x5 meter
dimensions.

9
SHAFT 2
Construction of the
Shaft 2 infrastructure
is progressing well.
The head frame and
ancillary buildings
were 59.9% complete
at the end of the
third quarter of 2011.
Sinking of the shaft
commenced in
December 2011.

10
BUILDING THE FUTURE
13,000 total employees including 87% Mongolians 2013
First sales
planned
for 2013.
97%
Construction is
97% complete.

11
OYU TOLGOI AT COMPLETION
90%
Mongolian
workers
Investment Agreement
requires 90% Mongolian
employees.
Thousands are trained to
work in mining and other
industries.
3,500 employees will
operate Oyu Tolgoi.

12
OYU TOLGOI ADVANTAGES
Industrial expansion in India will
increase demand for copper.
China will build
4-5 million
new buildings in
the next 15 years.
Low cost of production and
proximity to fast-growing
markets.
China and India copper
consumption forecast
Demand for copper is
expected to rise by more than
40% by 2020.
40%

13
LIFT MONGOLIA’S ECONOMY
The Mongolian economy will be more
than a third (36%) larger in 2019
because of Oyu Tolgoi.
Value of Mongolian exports will
double, with Oyu Tolgoi
accounting for half.
1/3
x2

14
THE AGREEMENT TO
CREATE OYU TOLGOI
The government received 34% of
Oyu Tolgoi shares without using
public funds and without debt on
government accounts.
The IMF estimates that the Goverment of Mongolia
receives 55-71% of the cashflow over the life of the
mine without risking the people’s money.
34%
55-71%
Cash
flows
Oyu
Tolgoi
• Government
received over
$803mn in taxes and
other payments by
August 2012
• Investment
Agreement made it
possible to invest
$6.2 billion to build
Oyu Tolgoi.
• Mongolia owns all
minerals and
receives
taxes, royalties and
fees as well as
dividends.

15
THE AGREEMENT BENEFITS
ALL OF SOCIETY
• The Investment Agreement
has added value beyond the
economic benefits.
• Additional investments encourage social
development and economic stability.
Education
and Training
Mongolian
Businesses
Community
Improvement
Environment
and Water
Cultural
Heritage Five areas will
improve the lives of
future generations of
Mongolians.

16
EDUCATION IS KEY TO THE FUTURE
The largest employment training
program in Mongolian history.
$125m
investment.
7 schools
Construction of 3 new
mining schools of
excellence and 4
vocational training
centers in 7 cities.
1200 teachers
Partnership with Ministry of
Education to train 1,200
vocational teachers.
Language and skills
training to open up
new opportunities for
employees.
30 international
scholarships
200 domestic
scholarships

17
TRAINING IS KEY TO SUCCESS
• Thousands of Mongolians are receiving
training for careers in the new economy.
• Received his certification in heavy
equipment operation and is now a truck
driver for OT.
• 24 of his classmates are working
alongside him at OT.
• He is now financially independent and is
building a future for him and his family.
• Enkhjargal participated in year-long
training program at the Technological
School at Erdenet with 30 other
students.
“There are great
opportunities for
training and the
skills I have
received can be
used anywhere.”
Enkhjargal

18
MANY MONGOLIAN BUSINESSES
ARE GROWING
During 2010-2012
Oyu Tolgoi spent
about $1.1bn with
Mongolian national
suppliers.
Mongolian
contractors are
leading 12
infrastructure
projects
underway in
South Gobi.
1.4 trillion
MNT
Oyu Tolgoi created
a 1.5 billion MNT
($1.2m) fund to
provide loans to
small businesses in
South Gobi.
1.5 billion
MNT to small
businesses
12

19
A SEWING BUSINESS GROWS
Sh. Tuya owns a sewing shop
in Khanbodg.
Oyu Tolgoi helped her qualify as
a local supplier of employee uniforms.
She now has 28 employees to fulfill
a contract worth 800,000,000 MNT
per year.
Oyu Tolgoi’s Local Supplier Initiative
provided a low-interest loan to
expand her business.
She now plans to double the size of
her business and hire more
employees.
800 million MNT per annum

20
IMPROVING OUR COMMUNITIES
• Healthcare and
education programs.
• Programs to protect
South Gobi herders.
• Scholarships for
students from local
communities.
Oyu Tolgoi social
investments and
infrastructure
improvements are
changing lives.
Infrastructure plans include:
• Airport
• New and improved
paved roads
• Power plant and
transmission lines
• Bayan-Ovoo soum
sports complex
• Dalanzadgad soum
sports and cultural complex
• Water exploration

21
NEW HEALTH SERVICES
Daram is a dentist trained in
Ulaanbaatar.
She moved to Khanbogd soum to
operate a new dental care center.
80% of the residents of Khanbogd soum
have benefitted from this
new cabinet.
This is the only dental cabinet in the
soum.
OT upgraded the hospital and donated 2
ambulances to improve health services.
Improving the healthcare is one of many ways to improve
communities.
“Before Oyu Tolgoi built this cabinet, there was
no way to receive this kind of care.”

22
PRESERVING CULTURAL HERITAGE
• Identification and protection of
places and customs of importance in
South Gobi region.
• Restoration of monasteries.
• Preservation of artifacts.
• Initiation of oral history programs
with elders to preserve traditions
for the next generation.
Investing 1.3bn MNT ($1.1m) in the Oyu
Tolgoi Cultural Heritage Program.

23
ENVIRONMENTAL STANDARDS
• Work towards ISO 14001
certification – the highest
global environmental
standard.
• Participatory
Environmental Monitoring
Program with local
officials, residents and
herders.
Meet and exceed requirements
of all Mongolian laws.
Independent water source – 80%
recycled, use of non-drinkable
water in mining.
• Terrain restoration – planting
trees, protecting plant life
and burying pipelines.
• Joint ventures with
biodiversity experts.
0%
Zero-impact on
communities
water supply.

24
YOU CAN CONTACT OYU TOLGOI EASILY
Visit the Oyu Tolgoi Website: www.ot.mn
Follow us on Facebook: www.facebook.com/oyutolgoi
Follow us on Twitter: @OTMong
Visit our Information Centers
• Odcon Holding Building, Baga Toiruu – 8th Khoroo, Sukhbaatar District
• Tost Gobi LLC Building, 3rd Bag, Dalanzadgad soum

Ot presentation eng updated mar 4 2013

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Ot presentation eng updated mar 4 2013