Speeches of Ivanhoe Mines and Rio Tinto companies made for signing ceremony of the Oyu Tolgoi Investment Agreement

Following is speeches made by Bret Clayton, CEO of Copper and Diaomand Division of Rio Tinto Group and Peter Meredith, Board Chairman of the Ivanhoe Mines Ltd.
Credits are Press Service of Government of Mongolia. Thank you for giving us at MonInfo the transcription of the speeches.

Ganbat, reporter of MonInfo News Service


Bret Clayton, CEO Copper and Diamonds group,
Rio Tinto –Mongolia, 06 Oct 2009


Good afternoon/morning Mr President, Prime Minister, Speaker, Ministers, Members of Parliament, ladies and gentlemen.

Together with Rio Tinto’s partner Ivanhoe Mines I am delighted to be here today to celebrate the signing of the Investment Agreement for the Oyu Tolgoi copper-gold project.

This occasion marks the successful conclusion of years of hard work between all of us - Mongolian Government, Ivanhoe Mines and Rio Tinto.

I have been closely involved with the agreement discussions since our initial investment in 2006 and have visited Mongolia many times – and so it gives me particular pleasure to be here today. The Ivanhoe and Rio Tinto teams here in Mongolia have done excellent work towards reaching today’s outcome, and I thank them for this.

Today, we have signed an Investment Agreement that is mutually beneficial for all parties involved in Oyu Tolgoi, and a significant milestone in its development. We now look forward to working together to bring on stream what I firmly believe is the best undeveloped copper deposit in the world.

Rio Tinto’s investment in Oyu Tolgoi began in October 2006. We have enjoyed a strong, aligned relationship with chairman Robert Friedland and his team at Ivanhoe over the past three years, and we look forward to strengthening our relationship further.

Oyu Tolgoi is a perfect example of Rio Tinto’s strategy of investing in large, long term, competitive orebodies.

While the size and grade of the existing Oyu Tolgoi ore reserves and mineral resources are already first class, we are excited by significant exploration upside that still remains. While Oyu Tolgoi is clearly a world class asset, we believe that the area has the potential, over time to become to become a world class mining district. We plan to be a partner with you here in Mongolia for decades to come. Of course this will take significant investment, and this Investment Agreement represents a very important milestone that will now allow this important work to proceed.

The Oyu Tolgoi project holds great potential, both for the parties investing in its development, and for the people of Mongolia.

The development of a mine on the scale of Oyu Tolgoi can provide a strong base for the growth of the local area, surrounding regions, and indeed the Mongolian nation. We believe Oyu Tolgoi will bring far reaching benefits – both for those employees and communities directly linked to the mine, and for the people and industries indirectly connected to our operations.

We see strong parallels between Oyu Tolgoi today and our initial investment in the Escondida copper mine in Chile over 20 years ago and our recent project in Madagascar. These mines have helped develop strong, sustainable mineral industries in Chile and Madagascar. They have also contributed to national development priorities, including employment, skills training, export growth, conservation and multi-user infrastructure development.

I believe that Rio Tinto’s proven track record in the sustainable development of greenfield projects, coupled with our technological expertise in innovative copper mining processes, makes us the ideal partner to work alongside Ivanhoe and the Government in bringing Oyu Tolgoi on stream.

Finally, on behalf of both Rio Tinto and Ivanhoe, I would like to extend a welcome to the Government - representing the people of Mongolia - as our new partner in this project. We look forward to a long and rewarding relationship based on openness, respect and a common desire to see this exceptional project developed as soon as possible for the benefit of Mongolia and its citizens.

Thank you.


Peter Meredith, Board Chairman of Ivanhoe Mines Ltd
MR. PRESIDENT, MR. SPEAKER, MR PRIME MINISTER, MEMBERS OF PARLIAMENT, MEMBERS OF CABINET, DISTINGUISHED GUESTS, LADIES AND GENTLEMEN.

THE AGREEMENTS BEING SIGNED TODAY REFLECT THE CONCERNS AND INTERESTS OF THE MEMBERS OF THE PARLIAMENT, THE GOVERNMENT OF MONGOLIA, AND THE MONGOLIAN PEOPLE.

THEY REFLECT THE GLOBAL EXPERIENCE AND EXPERTISE THAT IVANHOE MINES AND OUR PARTNER, RIO TINTO, BRING TO MONGOLIA.

THESE AGREEMENTS ARE WRITTEN SO THAT OYU TOLGOI SHOULD BENEFIT ALL MONGOLIAN PEOPLE, AND SHOULD BRING IN A NEW ERA OF ECONOMIC GROWTH AND SOCIAL DEVELOPMENT FOR THE NATION.

IVANHOE MINES HAS BEEN A PIONEER. WE ARE HONOURED TO HAVE DISCOVERED OYU TOLGOI, AND TO HAVE BUILT A FOUNDATION FOR A NEW MONGOLIAN BUSINESS THAT WORKS ACCORDING TO INTERNATIONAL STANDARDS AND BEST PRACTICES OF RESPONSIBLE MINING, TRANSPARENCY AND ACCOUNTABILITY.

WE ARE PROUD TO BE MONGOLIA’S LARGEST FOREIGN INVESTOR, AND OF OUR EFFORTS TO PROMOTE THE “MONGOLIAN BRAND” AS ONE OF WORLD-CLASS QUALITY.

OYU TOLGOI IS THE BIGGEST MINING PROJECT EVER UNDERTAKEN IN MONGOLIA, AND IS POISED TO BE ONE OF MONGOLIA’S GREAT SUCCESS STORIES.

OYU TOLGOI WILL BECOME A LEADING MONOGLIAN BUSINESS STIMULATING THE CREATION OF NEW OPPORTUNITIES, SUCCESSES, AND DREAMS.

LOOKING BACK, OVER THE PAST NINE YEARS, 4,000 MONGOLIANS HAVE WORKED WITH AND FOR THE OYU TOLGOI PROJECT.

MORE THAN 500 MONGOLIAN BUSINESSES HAVE SUPPLIED GOODS AND SERVICES TO THE OYU TOLGOI PROJECT.

LOCAL PROCUREMENT, TRAINING AND EMPLOYMENT OPPORTUNITIES WILL ONLY INCREASE IN SIZE AND SCOPE IN THE FUTURE.

WHAT HAS HAPPENED UNTIL TODAY IS JUST THE PROLOGUE. TODAY WE MARK THE BEGINNING OF THE BUILDING OF THE MODERN MONGOLIAN DREAM.

I WANT TO THANK THE MONGOLIAN GOVERNMENT AND THE PROUD PEOPLE OF THIS GREAT NATION, FOR THE OPPORTUNITY YOU HAVE GIVEN OUR COMPANY TO BE A PART OF WRITING THIS NEWEST CHAPTER IN YOUR RICH HISTORY.

FROM ALL OF US AT IVANHOE MINES, WE WISH ALL MONGOLIAN PEOPLE PEACE, GOOD HEALTH, AND PROPSERITY FOR MANY GENERATIONS TO COME.

THANK YOU.