Benzinga | Dec 1, 2020 07:02AM EST

Turquoise Hill Says Supports Oyu Tolgoi's Independent Review Of Mine Cost Overruns And Schedule Delays

MONTREAL, Dec. 1, 2020 /CNW/ - Turquoise Hill Resources ("TRQ" or the "Company") today commented on the announcement that the board of directors of Oyu Tolgoi LLC, TRQ's 66% owned subsidiary, has approved a resolution establishing a special board committee ("Special Committee") mandated to conduct an independent review of the causes of the cost overruns and delays to the Oyu Tolgoi underground development announced in 2019.

The Special Committee is comprised of four members: two members nominated by TRQ and two members nominated by Erdenes Oyu Tolgoi ("EOT"), a state-owned entity that owns the remaining 34% interest in OT LLC. The Special Committee is required to select and engage an independent and reputable firm of experts in the field of project management and mine planning to provide a report to the Special Committee within six months of commencing the investigation. The resolution requests each shareholder of Oyu Tolgoi, as well as Rio Tinto, as manager, to co-operate fully with and support the work of the Special Committee and to contribute, on a confidential basis, any internal or third-party report(s) in its possession relating to the cost overruns and delays.

Ulf Quellmann, CEO of TRQ, commenting on the resolution, said "TRQ fully supports our government partner, EOT, in securing an independent and objective review of the cost overruns and delays announced last year. TRQ's nominees will serve on the Special Committee and TRQ is fully supportive of the review process. We believe the independent Special Committee established in EOT's resolution is consistent with corporate governance best practices, ensures accountability and transparency and will ultimately serve the best interests of Oyu Tolgoi's owners -- EOT and TRQ -- as well as our respective stakeholders."