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Oyu Tolgoi signs a major contract for underground development with Dayan Contract Mining

2016/10/20

Oyu Tolgoi signs a major contract for underground development with Dayan Contract Mining

Oyu Tolgoi today announced the signing of an underground mining and support services contract with Dayan Contract Mining, a joint venture between Hasu Megawatt and Redpath.

Oyu Tolgoi Chief Development Officer, Underground, Marco Pires, said, "This contract is another major milestone as we progress with the underground development and demonstrates our commitment to further strengthening national supply chain and skilled workforce. Dayan brings together the strength of a Mongolian company with international expertise in underground development, and will bring long term benefits by creating world class expertise and capability in Mongolia."

The Underground Mining and Support Services contract entails the sinking of Shaft 2 and Shaft 5 at Oyu Tolgoi. The two separate vertical shafts will reach a total depth of 1,284m and 1,178m respectively. Shaft 2 with 10m diameter is among the largest of its kind in the world. Shaft 5 is for ventilation purpose and has 6.7m diameter.

The contract also includes Underground Development Services, which will cover lateral development, large excavations and mine services of the underground mine; and Mining Support Services, which will cover development and provision of a skilled Mongolian workforce for the underground project.

Dayan Contract Mining Executive Director Bruce Dunlop said "We're pleased to be contributing to Oyu Tolgoi Underground Project, one of the most significant projects in the mining industry today. We look forward to a long partnership with Oyu Tolgoi, building a world class mine and developing a world class national underground workforce."

About Hasu Megawatt:

Hasu Megawatt brings experience in Mongolia's energy, mining and construction sectors, having worked with Oyu Tolgoi since 2006. With over 600 employees skilled in advanced civil and mining engineering and construction, Hasu Megawatt brings a great deal of value to the partnership. Since 2013, Hasu has been operating Oyu Tolgoi's Central Heating Plant, one of the critical utilities of the mine, to international standards and been providing high-quality service.

About J.S. Redpath Limited:

J.S. Redpath Limited is part of The Redpath Group, which is Canada's longest-standing mine contractor contributing over 50 years' experience to the industry. Over 5,000 employees situated around the globe offer services including underground construction, shaft sinking, raise-boring, mine contracting, raise mining, mine development, engineering and technical services, along with a variety of specialty services. Global experience has given Redpath expansive regulatory knowledge, regional expertise and cultural sensitivity.


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