OT crosses USD 5.4 billion in-country spend: Highest annual tax payments at USD 315 m

Economy | Mining
2016-01-29 17:42:24

Ulaanbaatar /MONTSAME/ Oyu Tolgoi LLC Friday released its latest Performance Scorecard, recapping the company’s strong performance across all key business measures in 2015.

Oyu Tolgoi president and CEO, Andrew Woodley, said: “The latest edition of the Scorecard presents a snapshot of the impressive achievements of the business--and our workforce--in 2015. We have made real progress in terms of safety; made a significant contribution to Mongolia in terms of our in-country spend, taxes, fees and other payments; achieved record production levels and, delivered or exceeded on production guidance and, reduced costs across the business. While the external environment, particularly commodity markets, remains challenging--this is the foundation on which are working together to build a large, low cost, long-life mine, which will be among the top five copper-gold mines worldwide.

"Oyu Tolgoi continued its strong safety performance in 2015, achieving an All Injury Frequency Rate of 0.33, making it one of the best safety performers across Rio Tinto and among global peers. On the back of this, Oyu Tolgoi also achieved record production for the last quarter of 2015, improving over Q3 and Q2 2015, successive record quarters for the business.

"Copper production of 202 thousand tons exceeded Turquoise Hill’s guidance, and gold production of 653koz met the guidance. Record production was achieved in the mine, concentrator, and in delivery of product to our customers.

"Oyu Tolgoi’s workforce composition stood at over 95 percent national for 2015; investment and participation in the local community grew, with USD 6.8 million invested in sustainable development projects in the South Gobi, USD 3.2 million in education and training, and USD 66 million in procurement from the South Gobi region.

"Two kindergartens in Dalanzadgad, the first projects funded by the Cooperation Agreement which commits USD 5 million annually to community development, are nearing completion.

"Oyu Tolgoi continues to grow as a strong Mongolian business, establishing a solid foundation for the future. The signing of project financing for the underground mine in December 2015 was a significant vote of confidence in Oyu Tolgoi as a business, the workforce, and more broadly for Mongolia as an investment destination.

"The Performance Scorecard is designed to provide regular updates on key parameters around the operation including safety, environmental performance, local employment, supplier spend and taxes paid, as well as broader investments in social and educational projects.

"Conversion rate is US$1 equals MNT 1,995.84 (Source: Mongol Bank, December of 2015)."