All too often, a mining agreement that is vital to a country’s development and that will boost economic opportunity and job creation is an occasion for vilification by NGOs. However, World Growth International and World Growth Mongolia are clearly NGOs of a different cut – NGOs with people at the forefront of their considerations and with no hidden agendas. These two have applauded the Government of Mongolia for signing a landmark mining agreement to develop Oyu Tolgoi. They say, “the accord — which enables Rio Tinto and Ivanhoe Mines to develop the Oyu Tolgoi mining project in the Gobi region of southern Mongolia — represents a major step forward for Mongolia in developing its mineral resources and spurring economic opportunities for its citizens.”

They list benefits, including:

• Attracting international investors and world-class companies with the highest mining technology standards
• Generating a higher, more reliable revenue stream for Mongolia’s treasury
• Supporting local entrepreneurs who run small and medium-sized businesses
• Marking a key step toward the path to prosperity for Mongolia.

Former Chairman of the GATT Contracting Parties and chairman of World Growth International Alan Oxley said, “World Growth is pleased to support Mongolia, its leaders and its people, at this important moment in the nation’s history. This agreement represents a cornerstone for future growth, providing a strong foundation for building a meaningful and productive commercial mining sector in Mongolia. By opening access to their country’s natural resources, Mongolia’s leaders will help spur new investment, attract capital from foreign investors, encourage continued mineral exploration, deliver sustainable revenues to the national treasury and create new prosperity for all Mongolians.”

Chairman of the World Growth Mongolia’s Independent Advisory Board, H.E. Ts. Gombosuren — a former Mongolian foreign minister — comments, “The approval of the Oyu Tolgoi project is an important milestone in developing a productive commercial mining sector that will ensure that all Mongolian people benefit and prosper from this resource that has blessed our land.”

Dr. Robert Shapiro, former Under Secretary of Commerce for Economic Affairs under US President Bill Clinton and Chairman of Sonecon, LLC, has examined and analysed Mongolia’s mining sector for World Growth. In his view, “The signing of the Oyu Tolgoi project will help Mongolia attract other foreign investors and multinational companies to invest in its economy. International investors will be able to view Mongolia as a stable place to do business and make investments.”

Jackson Cox, Executive Director of the World Growth Mongolia program and former country director for the International Republican Institute in Mongolia, said “This is a huge day in the life of a remarkable country. In the early 1990s Mongolia’s leaders took the bold step and established what is now a thriving democracy in the heart of Central Asia. Today, Mongolia takes yet another brave step forward in ensuring its people a new era of prosperity and opportunity.”

Ambassador Nancy Soderberg, a former Ambassador to the UN under US President Bill Clinton, said, “This is an important step forward in achieving prosperity for all Mongolians. I commend the Government for its visionary leadership in concluding this important agreement. As these worldclass investments move forward, the people across Mongolia will begin to benefit and enjoy their rich resources.”

Based on Ivanhoe Mines’ discoveries at Oyu Tolgoi during the past nine years, independently verified

estimates indicate that Oyu Tolgoi contains some 79,000 Mlb of copper and 45 Moz of gold in Measured, Indicated and Inferred resources. While Ivanhoe will update its mine plan with a revised Integrated Development Plan in coming weeks, initial indications are that the current resources will support planned open-pit and underground mining at Oyu Tolgoi for 60 years. Annual copper and gold production during the mine’s life are expected to exceed the levels projected in the 2005 Integrated Development Plan. The 2005 Plan forecast annual average copper production in the first 10 years of operation would exceed 1 Mlb/y and that gold production would exceed an average of 500,000 oz/y. An updated development plan is being prepared and is expected to be released in the near future.

“The overall size and scope of the Oyu Tolgoi deposits have not been established and exploration is

continuing, guided in part by proprietary, Zeus induced-polarisation technology that can measure

concentrations of metal down to depths of 3,200 m,” said Ivanhoe Mines’ President and CEO John Macken.

“Drilling already has discovered mineralisation at Oyu Tolgoi over a distance of 20 km and at depths of 2,300 m – and it remains open to length and depth. We’re confident that additional resources will be delineated and that Oyu Tolgoi still will be an important part of Mongolia’s economy 100 years from now.”

Given the extent of the discoveries to date and the potential for additional discoveries, Ivanhoe and

Mongolian Government negotiators agreed that the Oyu Tolgoi Investment Agreement should conform

with the provision of Mongolia’s Minerals Law that specifies that projects of this investment scale qualify for 30 years of stable tax rates and regulatory provisions, with an option of extending the agreement for an additional 20 years.

Macken said that while projections remain to be confirmed in the forthcoming development plan, about $4 billion from the three project partners is expected to be required to build and commission the mining complex. A future decision to build a coal-powered electricity generating plant for Oyu Tolgoi would require an additional capital commitment. With the terms of an approved Investment Agreement now confirmed, the investment will be subject to a full review by all stakeholders. Macken said that current planning indicates that initial production can be achieved at Oyu Tolgoi in mid- to late-2013.

Since establishing a presence in Mongolia in early 2008, World Growth Mongolia has been working to eradicate poverty, improve living conditions, and create new jobs and opportunities for the people of the country. The NGO says it does this “by promoting and ensuring economic freedom, good governance, rule and stability of law, property rights, and environmental interdependence. World Growth Mongolia launched an Independent Advisory Board comprised of Mongolia’s most distinguished leaders to guide its projects and approach. This advisory board is chaired by H.E. Ts. Gombosuren, Mongolia’s Foreign Minister from 1990-1996.”