Turquoise Hill Resources provided an update on the status of discussions with the Government of Mongolia about the development of Oyu Tolgoi following the recent meeting of Oyu Tolgoi LLC’s shareholders and a meeting of the Board of Directors.
Turquoise Hill and Rio Tinto continue to have productive discussions with the Government of Mongolia on a range of issues related to the implementation of the Investment Agreement, including project development and costs, operating budget, project financing, management fees and governance. While progress on these issues was made during the latest meetings, all parties have agreed to continue discussions during March 2013 with a goal of resolving the issues in the near term.
The Oyu Tolgoi LLC Board has approved continued funding to progress the project as discussions with the Government proceed.
Oyu Tolgoi is expected to reach commercial production by the end of June 2013 subject to the resolution of the issues being discussed with the Government.
Kay Priestly, Turquoise Hill Chief Executive Officer, said,“Given Oyu Tolgoi’s significant economic and social benefits to Mongolia, it is in the best interest of all stakeholders to swiftly resolve these important issues and keep the project on schedule. We are open and willing to consider opportunities related to the implementation of the Investment Agreement and companion Shareholders’ Agreement that will assist the Government as long as it preserves the respective agreements.”