The Mongolian Government and mining giant Rio-Tinto have concluded an agreement for the USD 4.4 billion required to finance the construction of the Oyu-Tolgoi underground mine. Rio-Tinto will be guarantor for these loans, which have been provided by 15 international banks and financial organizations. The signing ceremony is taking place today. Representatives of Rio-Tinto, Erdenes MGL, Erdenes-OyuTolgoi, and Oyu Tolgoi are participating.

Oyu-Tolgoi is plans to start the conctruction work of the underground mining in the first half of 2016. The construction work of OT Phase 2, which is what the underground mining development is known as, will continue for 5-7 years. A total of 3000 people will be employed and Mongolia will receive USD 1.2 billion annually. 

It goes without saying, that this is good news for the Mongolian economy.