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IVN, RIO AND EOT ARE TO IMPLEMENT AND FINANCE 72M USD TOWN PROJECT FOR 3000 FAMILIES AT OT

  • According to Government of Mongolia on January 18,2011 Cabinet meeting
  • Discussed issue of choosing location for land to establish integrated town based on OT deposit
  • Establishment of the town based on OT with housing for 3000 families has been supported and it has been assigned to relevant ministers to report on progress on construction
  • According to Government policy, Ivanhoe Mines LLC, Rio Tinto and Erdenes Oyutolgoi LLC are to implement the town project and to finance it by preliminary estimates for 100 billion MNT(72 million USD using today’s Bank of Mongolia reference rate)
  • By commissioning the town it would be possible for new 12000 persons to start permanently live there. It has been also planned to build road to connect to the mine, school, kindergarten, hospital, hotel, culture and art, leisure complex and shopping center
  • In this way it would be possible for citizens who are working at the OT project not live like in the army but live and work in comfortable living environment with all the services and amenities, Government has laid foundation for second modern Erdenet in South Gobi
  • This is very important decision to ensure comfortable living condition for local citizens and all project employees as another benefit of urgent putting OT into economic production

Dale Choi

Chief Investment Strategist,

Frontier Securities