SOCIAL INVESTMENT. Review 2012

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1 SOCIAL INVESTMENT

2 CONTENTS Our approach A long term investment in Mongolia Economic development in South Gobi Environment Education Cultural heritage Health The big picture WELCOME This is a significant moment for Mongolia. Despite continuing challenges for the global economy and significant changes facing society and individuals alike, the country is ready to meet these challenges and emerge with a bright future. With the fortunes of Oyu Tolgoi and Mongolia so intertwined, our recent progress is all the more important. At the end of 2012, politicians, local people, suppliers and partners joined hundreds of Oyu Tolgoi employees at a ceremony to celebrate the commissioning of our concentrator. We are on track for our first commercial shipment in the first half of 2013 and to watch the real benefits of Oyu Tolgoi flow to the people of Mongolia. The changes that Mongolia is facing can bring pressures for individuals, communities and organisations. Oyu Tolgoi is committed to working collaboratively with government, NGOs, our employees and the people and communities of Mongolia and the South Gobi to help address these critical issues. As you will read this report - our first-ever Review detailing our activities from you will learn how Oyu Tolgoi is working to help improve the lives of Mongolians. We are committed to supporting and cooperating with initiatives to protect the environment, support education and contribute to economic development. Our programmes will have a far-reaching effect and are directed at producing long-term social benefits and solving pressing social issues. This year, we are increasing our focus on social investment projects that also can help diversify the economy, improve education infrastructure and protect the natural environment. If you want to learn more about how to apply for a social investment grant, please visit our website at OUR APPROACH We are committed to building strong and sustainable relationships and sharing the value of Oyu Tolgoi with the communities in which we work and the nation of which we are a proud part. We are committed to Mongolia for the long-term and aim to have a lasting and positive impact on the lives of the Mongolian people. SOCIAL INVESTMENT HIGHLIGHTS US$ 126m committed to largest ever training programme in Mongolia over five years. Cameron McRae President and CEO Oyu Tolgoi LLC Significant progress on the Herder Livelihood Support Programme, including education, training and employment and the protection of water supplies. Launched Cultural Heritage Programme to catalogue and protect manmade and natural heritage of the South Gobi. Worked with banks to launch micro lending initiative to support the growth and development of businesses across the South Gobi. Spent over US$1.1bn with Mongolian suppliers since Established a five hectare tree nursery in the centre of Khanbogd soum, which includes the planting of rare, native seeds for use in land rehabilitation. Invested in community infrastructure including roads, schools and hospitals as well as the construction of the South Gobi s first international standard airport and the road to the Chinese border. Oyu Tolgoi is the biggest single investment in Mongolian history. As well as the immediate impact of our investment in the South Gobi, we employ and support people from across the country. Beyond the thousands of jobs created and millions of dollars already paid in taxes and fees, our work is already having other positive effects. We believe strongly in the concept of shared-value, helping our neighbours to benefit directly from our investment. Our social investment activities focus on projects that offer long-term solutions in key areas such as education, economic development, the environment, health and cultural heritage. By proactively targeting our efforts in these areas, we are able to have a long-term impact on some of the most important issues facing the communities of the South Gobi and Mongolia as a whole. From our large investments in training and infrastructure to our support for smaller community projects, we are guided by the goal to provide a positive and long-term impact. 2 3

3 In 2012 alone, we committed over US$27.7 million to social investment programmes including economic development, education, environment, leadership training, cultural heritage and health. This funding is contributing to the long-term welfare and prosperity of the people of Mongolia. Even before Oyu Tolgoi becomes operational, we have made a huge difference to thousands of lives as part of our vision of creating a brighter future for Mongolia. Here are just some of the ways we are making a difference. A LONG-TERM INVEST MENT IN MONGOLIA 6,600 trainees We are providing full financial support for 6,600 Mongolians to train at 42 Technical and Vocational Educational and Training Schools across Mongolia. of Khanbogd Residents 230students 245 wells and boreholes 80% Recognising the need for better dental health, we built As a result of our Student Scholarship programme, 200 In order to ensure that the precious water supplies used the first-ever dental clinic in Khanbogd which has already students are being supported through their studies by local people around Oyu Tolgoi are protected, we served 80 per cent of the population. We also provided at universities across Mongolia, with a further 30 monitor 245 wells, boreholes and community water funding towards the new wing of the local school and scholarships available to study in mining-related fields at supplies. This is done in conjunction with herders and kindergarten and donated new vehicles to the local police international universities. local people, who provide data on their own wells. and hospital. new or upgraded Technical 7 Training Centres We are building Technical and Vocational Educational and Training Schools in Khanbogd and the cities of Dalandzadgad and Nalaikh. As well as these, we are funding significant upgrades to existing facilities in Erdenet, Dalanzadgad, Darkhan and Choir. 11 tonnes of seed In preparation for the rehabilitation of the land around Oyu Tolgoi, we are storing 11 tonnes of native seeds. Thanks to a rare seed collection programme, run with local people, these include many species that are at risk in the challenging climatic conditions of the South Gobi. 100 elders memories Recognising the importance of preserving the ancient traditions of Mongolia, we funded an oral history programme to record and preserve the ancient songs with 100 elders. These memories will highlight the traditions and customs that Oyu Tolgoi believes should be preserved and passed on to the next generation of Mongolians. 1,500,000,000 In order to develop the capacity of local businesses in the South Gobi and build a sustainable national supply chain, we have worked with Khan and XAC banks to develop a 1.5bn MNT fund to provide affordable loans to local businesses. 53 businesses have already benefitted from this fund, and many have become suppliers to Oyu Tolgoi in the process. 4 5

4 ECONOMIC DEVELOPMENT IN SOUTH GOBI Our commitment to the South Gobi goes beyond the people who rely on the project. We are committed to multiplying our economic effect through careful planning, infrastructure development and working in partnership with other businesses, NGOs and Government agencies. We have supported herders to diversify their incomes and developed significant programmes to develop the local supply chain, creating hundreds of jobs as a result. SOUTH GOBI SUPPLIER DEVELOPMENT POLICY Funding for the South Gobi Supplier Development Policy rose from US$ 600,000 in its first year of operation in 2010 to US$ 5m in This policy focuses on increasing the strength and capacity of local firms, start-ups and entrepreneurs into suppliers of the goods and services that are critical to Oyu Tolgoi s future success. The policy aims to strengthen the businesses to ensure that they are not solely dependent on Oyu Tolgoi, but become successful, thriving companies able to provide goods and services manufactured and created locally in the South Gobi. SIGNIFICANT HIGHLIGHTS INCLUDE: Supporting 70 local businesses to grow and develop their services, workforces, equipment and facilities through the creation of a micro-lending facility in partnership with XAC and Khan banks. The scheme allows Oyu Tolgoi suppliers to access a 1.5bn MNT fund of lowcost loans and support. The construction of the South Gobi s first international standard airport, improving connectivity with the rest of the country and the world beyond. The airport was constructed by local contractors. Creating the Dalanzadgad Supplier Development Centre which provides training, coaching and business support for South Gobi businesses. Further consultancy and training is available to firms across the South Gobi. Continuous monitoring of employment, economic and social trends affecting herders living in the vicinity of the Oyu Tolgoi site to ensure they receive any additional support with training, employment or education that is required. The construction of a 100km paved road to the Chinese border. As well providing a route to supply the mine s products to customers, when completed in 2014, the road will form part of the national highway. Other roads in the area are also being improved. The use of local contractors to complete all of the 12 major infrastructure projects that Oyu Tolgoi undertook in the ramp up stages prior to 2013 ensured that more of the money spent at Oyu Tolgoi remained with local people and businesses. The Gobi Prosperity Programme was developed in 2011 to support local businesses in the target area that are not tied to mining industry. Since it started, it assisted more than 50 local businesses to supply local and regional markets and created over 80 jobs in the area. The programme works to minimize the risk of rural entrepreneurs becoming too dependent on the mining industry, and help to diversify the economy. The establishment of 11 thriving, site-based local services, staffed and run by local people and businesses to support the Oyu Tolgoi workforce. These include supermarkets, hairdressers, coffee shops and more. BUILDING NEW INFRASTRUCTURE The town of Khanbogd is home to about 7,000 people, including around 800 employees of Oyu Tolgoi. Since 2009, Oyu Tolgoi has invested in significant infrastructure projects to serve the town. Two diesel generators, supplied by Oyu Tolgoi in 2008 and 2010, will be replaced with a 24-hour supply of electricity through powerlines connected from the Oyu Tolgoi site. A Vocational Training Center was opened in May 2012 and can accommodate 150 students. Oyu Tolgoi built Khanbogd s first dental clinic. A new, international-standard airport began handling passenger traffic in February, replacing an older facility with its dirt runways. The new airport can accommodate a Boeing 737 or C-130 airplanes, and has a passenger service building, air traffic control tower, full-service fire station and a terminal that can serve up to 120 passengers per hour. Oyu Tolgoi also is studying potential new water sources to provide Khanbogd with access to greater supplies of drinking water. If found, the water sources will be connected to the soum centre. 6 7

5 CREATING SUSTAINABLE SUPPLY CHAIN GROWING NEW BUSINESSES Under the Gobi Prosperity programme which supports new, non-mining businesses across the South-Gobi, Ts. Tuyatsetseg from the Manlai soum secured a low-cost loan to set up a cafè. She also accessed a series of training sessions to improve her business skills. The cafè is a huge success serving a variety of Asian and European cuisine to local people. In May 2010, looking to fill a potential future gap in the supply chain for uniforms and safety clothing, officers from Oyu Tolgoi s Procurement department began visiting local firms across the South Gobi to discuss developing provision of the services. As a result, B. Delgertsetseg from Dalanzadgad developed her cottage industry clothes business into a fully fledged company, employing over 20 people. She now supplies a large amount of Personal Protective Equipment to Oyu Tolgoi. Manlai soum has benefited from being located on the road that connects Ulaanbaatar, South Gobi and the border point to China, Gashuun Sukhait. The demand for local services, such as restaurants, transportation and accommodation in Manlai, has increased significantly as a result of the expansion of mining development in the Gobi region. Govi Uran Shaglaa now operates from an improved premises with up-to-date equipment and has increased the salaries paid to employees. By working with local businesses to identify future products and services needed at the mine, Oyu Tolgoi is developing a strong and sustainable supply chain in the South Gobi. S.Otgontseveen, started her vegetable business with a Gobi Prosperity Programme loan, Bayan-Ovoo soum SUPPORTING HERDERS The Pastureland Management Programme, which Oyu Tolgoi has run since 2011, aims to encourage the sustainable development of traditional livestock husbandry and the nomadic lifestyle of local herders. Over the winter of 2012, Oyu Tolgoi worked with local officials to stockpile 340 tonnes of natural fodder and salt for feeding to herder animals in the spring the toughest season for the animals As part of the programme, herders are also provided with training in animal husbandry and disease identification. Herder families have also benefitted from selling dairy products to Oyu Tolgoi and its caterers. In 2011, 84 herder families supplied a total of 60m MNT of dairy products. 8 9

6 ENVIRONMENT The South Gobi is one of the most precious habitats on the planet. Our comprehensive environmental programme is minimizing the effect of Oyu Tolgoi on the natural habitat of the region. With the aim of a net-positive impact on biodiversity we have stringent controls in place to manage our use of water and protect the flora and fauna surrounding the mine. Working with independent, international experts and complying with all laws and over 70 standards and permits, we aim to be a world leader in environmental protection and management. INTERNATIONAL ISO ENVIRONMENTAL MANAGEMENT STANDARD The creation of green zones at Oyu Tolgoi which will eventually comprise 10 per cent of the entire site. These include the planting of 500 elm, 500 tamarisk, poplars and a variety of native grasses. A further 2000 saxual trees are being planted in the South Gobi. PARTICIPATORY MONITORING As part of Oyu Tolgoi s commitment to minimising and mitigating impact on the water supplies used by local people and animals, 22 herders in Khanbogd soum are taking part in a Participatory Monitoring Programme to carefully monitor the water levels in 28 hand-operated wells. The herders collect water level data which is compared to Oyu Tolgoi s own analysis. The findings are then shared with the herders and general public. Throughout 2012, Oyu Tolgoi undertook preparatory work towards the international ISO accreditation for the standard of its environmental management systems. An independent audit took place in December 2012, and the accreditation was presented early in The standard is designed to recognise the social performance standards of mining companies. SIGNIFICANT HIGHLIGHTS INCLUDE: The creation of a five hectare plant nursery in Khanbogd to produce saplings of native plants for use in land rehabilitation and the green zones that we are creating around Oyu Tolgoi. The nursery includes extensive semi-automatic winter green houses to protect the saplings during the challenging winter conditions. Funding of 1.7bn MNT to help explore and investigate new water resources for the town of Khanbogd; further tests, investigations, and modeling will take place to help develop a detailed plan for sustainable development of the water source. Support for the National University of Mongolia s study of air quality in Ulaanbaatar. The project will monitor air pollution at PM 2.5 using advanced equipments, so that hopes to improve public knowledge and perception using social media tools like Twitter and Facebook. The establishment of the Participatory Environmental Monitoring programme, where local herders and soum residents work with Oyu Tolgoi to monitor the water levels at over 245 boreholes and wells near to the site of the mine. Funding for NGOs - Alyandra Women s Development Centre and Bayanzurkh District Women s Development - projects to plant 2,100 trees and to pave 1.8 km long road in dusty ger district areas in Ulaanbaatar. Many of the wells and boreholes surrounding Oyu Tolgoi are at risk of falling into a state of disrepair. Since 2011, as part of Oyu Tolgoi s Pastureland Management Programme, work has been underway to repair and replace a number of these, improving water supply as a result. In 2012, 20 broken or collapsed wells and wells with a poor water recovery rate were identified and repaired. This improved the water supply of 67 herder households and almost 10,000 animals, across an area of 128,000 hectares. Working with the local Governor s office, Oyu Tolgoi is protecting, repairing and improving the wells and boreholes that local people rely on. PROTECTING WILDLIFE Oyu Tolgoi worked with park rangers employed by the Khanbogd soum to support 17 herders to undertake a monitoring programme of local wildlife. From May 2012, the herders and park rangers travelled a total distance of almost 10,000 kilometres, monitoring almost 6,000 head of animals. These animals were recorded in a central database, with the findings matched with other studies, including Oyu Tolgoi s own. An outcome meeting in December 2012 allowed the herders and professional experts to discuss the findings and develop plans to protect the local wildlife. Oyu Tolgoi worked with local officials and herders to undertake a census of almost 6,000 wild animals in the area surrounding Oyu Tolgoi

7 PREPARING FUTURE WORK FORCE EDUCATION Oyu Tolgoi s Talent Pipeline programme aims to develop Mongolia s professional mining workforce through national and international scholarships and internships. We are investing US$ 126m in education and training over five years. This will be the biggest such investment in the history of Mongolia. Training and skills transfer are at the centre of our sustainable development plan for the country. Thousands of Mongolians are being trained for technical and management jobs at Oyu Tolgoi to help ensure that they will be the business leaders of tomorrow. 6,600 Mongolians are being trained across over 40 trades in different industrial sectors. This programme has recently been expanded, doubling the number of trainees taking part. BUILDING TECHNICAL AND VOCATIONAL TRAINING programmes not only allow Oyu Tolgoi to train future experts in the mining industry, but will also allow Mongolians to learn internationally. The supply of education and training equipment to schools and technical colleges across Mongolia. As part of this, 30 welding simulators have already been delivered to 25 Technical and Vocational Education Training Schools. Training equipment, simulators and software, such as automechanical, electrical, hydraulic and pneumatic, construction and welding, plumbing and driving, worth 5.2bn MNT were donated to 27 TVET schools across the country. Improvements to four educational centres and colleges in Erdenet, Dalanzadgad, Darkhan and Choir. Between 2010 and 2012, Oyu Tolgoi provided financial support for 187 students from the South Gobi under the Gobi Scholarship Programme. The programme supports development of skills in the most in-demand sectors in the South Gobi such as health, education, civil engineering, agriculture, tourism and environment. Oyu Tolgoi hired 132 interns since Among them, 12 interns became employees. This demonstrates how the talent pipeline idea is being implemented at Oyu Tolgoi and how Mongolian students are being developed through the programs it offers. Och Tserenbat The Mongolian mining industry of the future will require world class professionals and leaders who want to continue to work within the industry in their own country. Having previously received an Oyu Tolgoi national scholarship and taken part in an internship position at Oyu Tolgoi, Och Tserenbat is currently participating in Rio Tinto s graduate students programme and working at Rio Tinto s Kennecott, Utah Copper project. Having benefitted from three different parts of the Talent Pipeline programme, he has a bright future as a world class mining professional. To help deliver Oyu Tolgoi s ambitious training programmes, three new Technical and Vocational Education and Training schools (TVETs) will be constructed to deliver the programmes. As well as the new facilities in Khanbogd, Nalaikh and Dalanzadgad, four further TVETs and colleges in Erdenet, Dalanzadgad, Darkhan and Choir will be upgraded and expanded. SIGNIFICANT HIGHLIGHTS INCLUDE: To support education a Student Scholarship programme for 200 students to study at Mongolian universities and a further 30 to study at international universities in mining related fields including in the USA, UK and Canada. These scholarship A philanthropic donation of US$150,000 to the New Education Development Foundation to set up the American University of Mongolia, an academic institution accredited by international agencies. The TVET teacher training programme, which began in 2011 will run until next year, is providing 1,200 teachers with training. Part of the programme will develop the skills of some of the best teachers in Mongolia to create an elite group of top Mongolian TVET teacher trainers. The construction of a new wing on the local school and kindergarten in Khanbogd was 40 per cent funded by Oyu Tolgoi. The town s new vocational training centre, which opened in May 2012, is capable of accommodating 150 students

8 Review Mongolia, 2012 IMPROVING TEACHING SKILLS BUILDING/EXPANDING TVET CENTRES In July 2010, Oyu Tolgoi signed a Memorandum of Understanding with the Ministry of Education, Culture and Science. The MoU set out the intention to establish a new teacher training programme to ensure that the standards of teaching at the newly established technical training centres across Mongolia are of a world class standard. Fully funded by Oyu Tolgoi, the resulting programme is being implemented by the Australian ETAS organization in collaboration with the Mongolian Ministry of Labour. By the end of 2014, the programme is expected to train 1,200 vocational teachers. The programme includes exchange visits to Australian TVETs and the creation of an elite group of Mongolian teachers who will assist their colleagues in training and development. Now in its second year, a further 58 teachers have begun the training programme, with 30 TVET managers and directors receiving further support and training. Khanbogd s Technical Training Centre In May 2012, Cameron McRae, CEO and President of Oyu Tolgoi performed the official opening ceremony of Khanbogd s new Technical and Vocational Education Training Centre. The new facility at Khanbogd is one of three new training centres and a further four refurbished facilities across Mongolia. The centre is running a number of courses including management, computing and English as well as specialist courses for the Oyu Tolgoi workforce and other local businesses. The Khanbogd facility alone cost 3.6bn MNT, part of Oyu Tolgoi s US$ 126m investment in education and training over five years

9 CULTURAL HERITAGE We are committed to protecting and preserving the cultural heritage of the South Gobi where hundreds of years of both natural and man-made cultural treasures exist. The company strives to manage and minimize any impact on local culture and heritage as a result of the activities of the mine, while at the same time adding to the area s rich cultural heritage through the funding of restoration and preservation initiatives across the region. We are committed to working closely with a wide selection of stakeholders. Preserving the extensive cultural heritage of South Gobi requires specific efforts in cooperation with stakeholders at the national and local level, including local elders and NGOs. CULTURAL HERITAGE PROGRAMME Oyu Tolgoi s Cultural Heritage Programme is the first study of its kind to have been conducted in the South Gobi. Oyu Tolgoi s Cultural Heritage Programme is a new benchmark for companies in Mongolia aiming to safeguard important cultural, historical and social resources, and is being considered by the government as a template for a new standard of corporate accountability. SIGNIFICANT HIGHLIGHTS INCLUDE: A US$ 150,000 restoration of the Demchig monastery, which had been in partial ruins since the 1930s. An oral history programme to record the memories of local elders to preserve traditions for the next generation of young Mongolians. The programme involves over 100 elders and will ensure the continued survival of many precious traditions, passed down for many generations, but at risk of being lost. The creation of a recording and manuscript of traditional South Gobi long songs, in partnership with the Mongolian Academy of Sciences. These songs had been handed down from generation to generation, but changes in society risked their future survival. Sponsorship of the Annual Gobi Festival, the major camel festival and the Baby Camel festival as well as a number of other cultural events and performances. PROTECTING ANCIENT BONES OF THE GOBI The vast paleontological importance of the Gobi Desert means that Oyu Tolgoi has developed strict procedures to understand and protect any artifacts found during operations. As a result, extensive architectural and paleontological treasures including fossils of dinosaurs and turtles were discoveried during construction of Oyu Tolgoi. No construction work at Oyu Tolgoi can take place without a full archaeological and paleontological survey taking place prior to commencement of the work. As a result of this, 23 exploration and excavation projects have taken place during the construction of Oyu Tolgoi, under the direction of researchers from the Paleontological Research Institute or Archaeological Research Institute. Any artifacts found at Oyu Tolgoi are sent to the national research institutes for testing before being transferred to Mongolian museums. Recently, the Paleontological Institute, part of the Mongolian Academy of Sciences, displayed the dinosaur bones discovered at Oyu Tolgoi at an exhibition in Khanbogdsoum, giving local people the chance to witness the discoveries first hand. Thanks to the strict internal processes in place, not a single item of historical value or significance has been damaged or lost during the construction of Oyu Tolgoi

10 HEALTH Oyu Tolgoi is commited to improving the health and wellbeing of the Mongolian people. Under the Community Health, Safety and Security Programme, we are providing targeted funding to support programmes aimed at improving the health and wellbeing of local people. Provided funding for equipment, tools and safety gear to help improve the waste management processes at three family hospitals in Dalanzadgad; the inter-soum hospital of Khanbogd, and Bayan-Ovoo and Manlai soum hospitals. Funding for improvements to the South Gobi Aimag Health Department s training facilities and equipment. Engaged young people between the ages of 12 and 17 in a drawing competition aimed at improving road safety for drivers and pedestrians. Over 120 local children and teenagers took part in the project, with the winning drawings promoted through the Oyu Tolgoi Facebook and social media pages. COMMUNITY HEALTH, SAFETY AND SECURITY PROGRAMME The Programme includes four areas: Prevention of contagious diseases, prevention of non-contagious diseases and accidents, promotion of healthy behavior among young people and contributing to strengthening the local medical sector. CARING FOR THE HEALTH OF ORPHANED CHILDREN SIGNIFICANT HIGHLIGHTS INCLUDE: Running a blood-borne disease prevention programme involving 194 people. The project worked with medical doctors and health staff of Dalanzadgad, Khanbogd, Bayan- Ovoo, and Manlai soums in partnership with the Aimag Health Department. Over 60 medical staffs were also vaccinated against Hepatitis B. The construction of the first dental clinic in Khanbogd soum. As a result of the construction, over 80 per cent of the town s population has accessed the clinic, improving the dental health of the soum. The sponsorship of 28 doctors across 12 South Gobi soums to support the health and wellbeing of local people. Oyu Tolgoi provided 32m MNT in funding for this programme during Funding for roof and window repairs for the Verbist Orphanage Care Centre. The Verbist orphanage care centre has supported over 1,500 orphaned children in Ulaanbaatar since it was established in After 15 successful years, the orphanage s building began to need repairs: Its roof was leaking. It needed new paint and drafts were caused by ill-fitting windows. The orphanage s heating bills increased as a result, and its managers were concerned about the resulting health impacts on the children. On Children s Day 2012, Oyu Tolgoi donated over 28m MNT to the orphanage to allow them to fix the roof and replace the windows. The Manager of the orphanage, Odgerel said: Thanks to Oyu Tolgoi, the children now live in a warm building where they can sleep and study well. The benefits will be measured by their happiness, their good health and their school results

11 THE BIG PICTURE OYU TOLGOI S CONTRIBUTIONS TO SOCIAL INVESTMENT IN MONGOLIA IN % Education 5% 42% Economic Development Total USD 27,773,344 = MNT 37,743,974,496 2% 2% 1% Environment Cultural Heritage Health Education Donation to American University of Mongolia 150, ,850,000 Southgobi student scholarships 72,717 98,822,403 Sponsorship for 'Psychological training for disabled people' through Uvdis NGO 48,696 66,177,864 Sponsorship for 'Music for children development program' through Child Protection Centre 36,555 49,678,245 Noble Prize Speaker's Series 2 through the National University of Mongolia 10,079 13,697,624 Community training/capacity building 10,049 13,656,591 TEDxUlaanbaatar event sponsorship 9,359 12,719,222 Establishing computer lab at school N. 29 in collaboration with JCI Capital Mongolia 6,839 9,294,816 Sponsorship for public awareness campaign against sexual violence through Mongolian Women's Fund NGO 6,479 8,805,616 Noble Prize Speaker's Series 3 through the National University of Mongolia 5,533 7,519,017 Sponsorship for Bayarsaikhan's article in Physics journal 2,530 3,438,270 Total 358, ,659,669 Economic Development South Gobi Regional Development and Infrastructure Programme 9,697,453 13,178,838,627 Herder Livelihood Improvement and Continuation Programme 689, ,795,393 South Gobi Supplier Development Programme 427, ,121,990 Micro Grant Programme 243, ,493,851 Local Business and Economic Development Programme 92, ,123,354 Economic Development National Total 11,150,385 15,153,373,215 Ulaanbaatar City street improvement project through Mongolian Association of Urban Centers 400, ,600,000 Sponsorship for Mongolia Economic Forum 150, ,850,000 Education (5 - year training: US$ 126m, ) Total 550, ,450,000 TVET school construction 7,229,950 9,825,502,227 6,600 scheme 4,440,869 6,035,140,971 Apprentice Programme 1,173,694 1,595,049,534 TVET teacher training 582, ,517,287 Equipment provision 417, ,142,052 International scholarships 215, ,448,286 Graduate Programme 190, ,214,458 Local scholarships 91, ,645,251 Capability development 77, ,677,607 Internships 4,705 6,393,592 Total 14,424,379 19,602,731,265 Environment Khanbogd Nursery Programme 298, ,993,096 Pastureland Management Programme 150, ,934,258 Sponsorship for Air Quality Monitoring project through the National University of Mongolia 59,070 80,276,130 Participatory Environmental Monitoring Programme 47,443 64,475,037 Sponsorship for tree planting and road paving project through Alyandara women development centre NGO 29,592 40,215,528 Sponsorship for tree planting project through Bayanzurkh district's women development centre NGO 7,146 9,711,414 Sponsorship for Youth Club for Protecting Wildlife NGO 1,465 1,990,935 Cultural Heritage Health Total 593, ,596,398 Cultural Heritage Programme 449, ,604,136 Total 449, ,604,136 Blood borne disease prevention project among medical workers in impact regions of in South Gobi 119, ,734,814 Traffic safety and accident prevention project in South Gobi 66,448 90,302,832 Local medical sector capacity building in South Gobi 29,773 40,461,507 Sponsorship for repairing windows and roofs of Verbist Care Center 20,315 27,608,540 Youth capacity building and behavior improvement project 6,927 9,413,793 Red cross blood donation 3,708 5,038,769 Total 246, ,560,255

12 OYU TOLGOI LLC Monnis Tower Chinggis Avenue 15 Sukhbaatar District, Ulaanbaatar, Mongolia Ariunchimeg Luvsanjamts Tel: (ext. 3800, 3801) Fax: INFORMATION CENTRE Location - Ulaanbaatar Odcon building, 1 st Floor (west side of NUM building No.4, School of Economic Studies) Baga Toiruu Street, 8 th Khoroo Sukhbaatar District Ulaanbaatar, Mongolia Tel: We are open from 9 am to 6 pm between Monday and Saturday. Location - Dalanzadgad Tost Gobi LLC building, 3 rd bagh of Dalanzadgad soum South Gobi aimag, Mongolia Oljmedekh Dorjsuren Tel: We are open from 9 am to 6 pm between Monday and Friday. Khanbogd branch office Yard Number 5, 1 st street of Tsag-Uur, Khanbogd soum South Gobi aimag, Mongolia Tel: + (976) , + (976) Bayan-Ovoo branch office Government office of Bayan-Ovoo soum South Gobi aimag, Mongolia Tel: + (976) (976) Manlai branch office Extension of Government office of Manlai soum South Gobi aimag, Mongolia Tel: + (976) (976) Dalanzadgad representative office Tost Gobi LLC building, 3 rd bagh of Dalanzadgad soum South Gobi aimag, Mongolia Tel: + (976) Fax: + (976) PO Box-463, Post office of Dalanzadgad soum South Gobi aimag, Mongolia