Prioritised the safety and well-being of employees, contractors and local communities
Maintained the highest water use efficiency per tonne of ore production compared to similar global operations
Paid US$314 million in taxes, fees and other payments in 2022
Completed the firing of 19 drawbells in the Underground mine
Awarded the Best Enterprise of the year – Grand Prix
Met the annual production guidance for copper and gold in concentrate
Accelerated the preparation for the underground mine production
Ulaanbaatar, Mongolia – Oyu Tolgoi released its latest performance scorecard, highlighting key performance metrics for the fourth quarter of 2022 and providing an update on the underground development.

In 2022, Oyu Tolgoi continued to make a significant contribution to the Mongolian economy, delivering superior results from our surface operations and progressing the underground mine development following the undercut commencement in January 2022.

At the end of the year, the Mongolian National Chamber of Commerce and Industry announced the outstanding companies, organisations and entrepreneurs contributing to Mongolia’s social and economic development during the annual Entrepreneur-2022 award ceremony, naming Oyu Tolgoi as The Best enterprise of the year – Grand Prix. We have contributed US$15 billion or MNT34 trillion of in-country spend since 2010, of which 75% was on domestic procurement with Mongolian suppliers at the end of 2022.

Oyu Tolgoi’s acting CEO Jacques van Tonder said, “ I am proud of our miners who are building a world-class mining operation in Mongolia’s South Gobi and what we have achieved during this unprecedented time. Our teams performed safely and sustainably with strong numbers achieved every month.

As the nation moved to the new norm in early 2022, we commenced our underground mine in January. This was truly a remarkable experience and a magnificent milestone to achieve. We continued making substantial progress and fired our first drawbell in June. Since then, we have fired 19 drawbells to date and to think back and reflect how we achieved this is nothing short of a miracle. We also strongly supported the Billion Tree Project initiated by the President of Mongolia and planted around 50,000 thousand trees in UB, Umnugovi and at site. We also made significant progress on the “Khanbogd Soum Development Plan 2040”. Part of that was the newly built apartment complex in Khabogd soum.”

Operational Excellence

Prioritised safety above all else and achieved an All Injury Frequency Rate (AIFR) of 0.19 per 200,000 people/hours worked.
Oyu Tolgoi is recognised as one of the most efficient copper operations with regard to water use, averaging 0.4m3 per tonne of ore processed. The mining and processing operation is designed to have zero discharge and recycles as much water as possible, maintaining greater than 85% recycling rates. We will be consulting with local, national and other stakeholders as we develop a strategy designed to improve our operational water use, as well as working with the local and national stakeholders to deal with water issues through partnership and in a sustainable way.
97% of Oyu Tolgoi’s workforce are Mongolian citizens.
Paid US$314 million or MNT980 billion in the form of taxes, fees and other payments to the Government of Mongolia. Since 2010, Oyu Tolgoi has paid US$4 billion or MNT8.8 trillion in taxes, fees and other payments, including VAT to Mongolian suppliers.
Partnered with 863 suppliers, including 567 national businesses, accounting for 75% of the total operations procurement spend.
Q4 2022 Performance Scorecard can be viewed here.
Production update

Mined copper production from the open pit was 17% lower than the fourth quarter of 2021 due to lower copper grades and recoveries as a result of planned mine sequencing. Gold grades were significantly lower than the fourth quarter of the prior year (0.21g/t vs 0.38g/t), due to the mine sequence.

Oyu Tolgoi Production Data

All data represents full production and sales on a 100% basis
Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Full year 2021 Full year 2022

Open pit material mined (‘000 tonnes)
23,979 24,386 25,550 26,102 21,315 84,983 97,353

Ore treated (‘000 tonnes)
10,573 9,581 9,685 10,685 9,411 39,124 39,361

Average mill head grades:
Copper (%) 0.46 0.40 0.40 0.42 0.45 0.50 0.42
Gold (g/t) 0.38 0.32 0.26 0.22 0.21 0.54 0.25
Silver (g/t) 1.27 1.25 1.15 1.32 1.21 1.26 1.24

Concentrates produced (‘000 tonnes)
182.7 144.3 146.0 173.6 151.9 749.6 615.8

Average concentrate grade (% Cu)
21.3 21.0 20.9 20.9 21.3 21.7 21.0

Production of metals in concentrates:
Copper in concentrates (‘000 tonnes) 38.9 30.3 30.6 36.3 32.3 163.0 129.5
Gold in concentrates (‘000 ounces) 79 59 48 43 34.2 468 183.8
Silver in concentrates (‘000 ounces) 238 211 201 256 204 977 871

Concentrate sold (‘000 tonnes)
165.9 148.3 175.3 211.1 127.7 669.2 661.4

Sales of metals in concentrates:
Copper (‘000 tonnes) 34.4 29.9 35.3 41.8 25.3 139.4 132.3
Gold (‘000 ounces) 102 57 68 56 26.2 435 207.5
Silver (‘000 ounces) 192 179 224 282 152 783 836

Metal recovery (%)
Copper 80.1 78.1 81.4 80.9 79.9 82.8 80.0
Gold 59.3 59.0 59.1 56.6 56.1 68.4 58.2
Silver 55.1 54.3 57.8 57.0 56.3 61.6 56.4

Underground Development Update

Technical progress

At the end of the quarter, a total of 19 drawbells had been fired. Drawbell progression accelerated as a result of improvement initiatives implemented by the Oyu Tolgoi teams, bringing projected first sustainable production from Panel 0 forward to the first quarter of 2023 (previously first half of 2023).
At the end of December, shafts 3 and 4 sinking reached 378 metres and 507 metres below ground level, respectively. Operational safety sinking pauses have caused some delays against the 2022 reforecast to shaft sinking across the fourth quarter. Final depths required for shafts 3
and 4 are 1,148 and 1,149 metres below ground level, respectively. Construction of conveyor to surface works continued during the quarter with civil scope of works completed and other contractors mobilised to site.
Study work for Panels 1 and 2 (which are required to support the ramp-up to 95,000 tonnes of ore per day) remains on track to be completed in the first half of 2023. It will incorporate any
ventilation impacts due to the shaft 3 and 4 delays as a result of COVID-19 restrictions and reprioritisation of the mobilised workforce over the course of 2022, as previously reported.
During the quarter, Rio Tinto and the Government of Mongolia continued to focus on supporting Oyu Tolgoi to reach the sustainable production milestone and continuing progress on the remaining measures contained in Mongolian Parliamentary Resolution 103 which enabled the
agreement to reset the relationship and commence underground mining operations in January 2022.
Other Update

Rio Tinto now has a 66% direct interest in Oyu Tolgoi following the successful completion of the acquisition of Turquoise Hill Resources Ltd. This is allowing Rio Tinto to focus fully on strengthening its relationship with the Government of Mongolia and moving the project forward with a simpler and more efficient ownership and governance structure.





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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