Agreement Reached to Halve Management Fees for the “Oyutolgoi” Project

Ulaanbaatar.

The working group established under Resolution No. 68 of the Prime Minister of Mongolia and mandated to negotiate a reduction in the management fee rate for the “Oyutolgoi” project is continuing negotiations with the investor, the Rio Tinto Group.

Prime Minister of Mongolia N. Uchral stated that the Government has achieved its first significant results in the negotiations on the “Oyutolgoi” Agreement.

The working group led by Minister of Industry and Mineral Resources G. Damdinnayam has reached an agreement with the Rio Tinto Group to reduce the management fees for the “Oyutolgoi” project by half and eliminate overlapping charges.

As a result of the agreement, management fee expenses will be reduced by USD 2.2 billion, while Mongolia’s benefits from the project will increase by USD 1.5 billion.

The Government of Mongolia will continue its efforts to ensure fair and mutually beneficial terms of cooperation within the framework of the “Oyutolgoi” project.