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Oyu Tolgoi signs major contract for underground mine development

Oyu Tolgoi today announced the signing of a critical contract for the underground mine development – another key step forward towards full ramp up of construction. Jacobs Engineering Group, one of the world's largest and most diverse providers of technical, professional and construction services, has been contracted to provide engineering, procurement and construction management (EPCM) services for underground development.

Jacobs has already established a Mongolian business unit and will work with a local workforce and partners to deliver the contract over the next five to seven years.

Welcoming the announcement, Oyu Tolgoi Chief Development Officer Marco Pires said, “Following the final notice to proceed for the underground development last month, this contract is a critical piece as we ramp up towards full construction.

“A project of the scale of the Oyu Tolgoi underground mine requires highly specialist skills and Jacobs brings with it the experience and knowledge to complete the development on-time, on-budget, and, most importantly, safely.”

Andrew Woodley, Oyu Tolgoi Chief Executive Officer said, “As we grow the team that will build this amazing project, Oyu Tolgoi and Jacobs will work closely with hundreds of individuals and businesses across Mongolia. This is another step on our path to establishing Mongolia as a major player in the global copper industry.”

Jacobs President and CEO Steve Demetriou said, “We are very proud to be associated with what is a landmark project for Oyu Tolgoi, Mongolia and indeed across the global mining landscape. The Oyu Tolgoi Underground Project is one of the largest mining projects worldwide, and we are excited by the opportunity to contribute significant value to our client and the nation of Mongolia.”

Jacobs will be responsible for the materials handling systems for the underground mine and associated surface and underground infrastructure. The project is expected to be delivered over a five to seven-year period.

About Oyu Tolgoi LLC (www.ot.mn)

Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company, is a strategic partnership between the Government of Mongolia, Turquoise Hill Resources and Rio Tinto. Located in the South Gobi, Oyu Tolgoi commenced shipment of product to customers in July 2013. Oyu Tolgoi is managed by Rio Tinto, which is investing global expertise and cutting-edge technology to help develop Mongolia’s mining industry and ensure Oyu Tolgoi is one of the world’s most advanced mines. For Oyu Tolgoi, nothing matters more than safety. The business operates under the principle that if a job cannot be done safely, it will not be done at all.

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