The Mongolian Government appointed working group has completed auditing the costs incurred during the phase one development of the Oyu Tolgoi project.

Some initial conclusions are already emerging. The head of the working group, Minister for Mining D.Gankhuyag has finalized the inspection. Soon it will be reported in a cabinet meeting.

Minister for Mining, D.Gankhuyag said the results of auditing indicated that over 80 percent of cost for the initial development and construction of Oyu Tolgoi are over the initially planned amount during the Standing Committee meeting on Economy.

G.Batsukh, the Chairman of the Board of Directors of Oyu Tolgoi said that it has completed the first phase of development at the Oyu Tolgoi mine project.

However the first phase of development for Oyu Tolgoi overran the originally planned costs in the feasibility study. Oyu Tolgoi LLC admitted that the investment for the first phase of development for Oyu Tolgoi project jumped to 6.5 billion US dollars, 800 million US dollar higher than planned in the feasibility study. But the government of Mongolia estimated that it increased by 2 billion US dollars.

The auditing team consisting of 20 people from the government was appointed to investigate the costs incurred during phase one of development of the project last spring as one appointed by Oyu Tolgoi LLC.

Minister for Mining, D.Gankhuyag met the new President and CEO of Oyu Tolgoi Craig Kinnell on Wednesday.