Mongolian agreement-making: Oyu Tolgoi signs Cooperation Agreement with Umnugobi communities
Wednesday, 29 April 2015
On 22 April 2015, Oyu Tolgoi LLC signed a Cooperation Agreement with its partner communities the Umnugobi aimag and the Khanbogd, Manlai, Bayan-Ovoo and Dalanzadgad soums.
Oyu Tolgoi LLC is Mongolia's largest copper and gold mining company. It is a strategic partnership between the Mongolian government, Turquoise Hill Resources and Rio Tinto. Oyu Tolgoi commenced shipment of product from its sites in the South Gobi in July 2013.
The Agreement outlines how the parties will work cooperatively towards sustainable water, environment and pastureland management. Similarly, the Agreement seeks to ensure cultural heritage is preserved and local business and tourism developed. The primary aim of the Agreement is to ensure a strong governance structure for Oyu Tolgoi and local communities.
Notably, the Agreement provides that Oyu Tolgoi will make an annual contribution of US$5milion to a Development Support Fund that will be administered jointly between Oyu Tolgoi and the community for community programmes and projects.