Turquoise Hill announces 2019 financial guidance and provides underground development update www.turquoisehill.com

Turquoise Hill Resources today announced 2019 financial guidance and provided an update on underground development.
The Company previously announced 2019 operational guidance.
Operating cash costs for 2019 are expected to be $800 million to $850 million.
C1 cash costs are expected to be $1.75 to $1.95 per pound of copper produced. Unit cost guidance assumes the midpoint of expected 2019 copper and gold production ranges and a gold price of $1,281 per ounce.
Capital expenditures for 2019 on a cash-basis are expected to be $150 million to $180 million for open-pit operations and $1.3 billion to $1.4 billion for underground development. Open-pit capital is mainly comprised of deferred stripping, equipment purchases, maintenance componentization and tailings storage facility construction. Underground development capital includes both expansion capital and VAT.
As previously announced, Oyu Tolgoi is expected to produce 125,000 to 155,000 tonnes of copper and 180,000 to 220,000 ounces of gold in concentrates for 2019. Open-pit operations are expected to mine ore primarily from Phase 4 throughout the year, with contributions from Phase 6. Mill throughput for 2019 is expected to be approximately 40 million tonnes and includes the processing of some material from mine stockpiles.
Underground lateral development is expected to advance 15 to 16 kilometres during 2019.
Underground development update 
Independent review
Significant progress on the Oyu Tolgoi underground project continued through 2018, with the construction of critical above and below ground infrastructure. Shaft 2-connected underground infrastructure progressed well during Q4’18 with the completion of the lining installation and handover of Ore Bin 11 as well as advancement of the new 6,000-tonne-per-day jaw crusher under construction.
During the last quarter of 2018, Turquoise Hill carried out its own review of the previously announced Rio Tinto schedule and cost re-forecast for the project (2018 Rio Tinto Review) that had concluded a delay to sustainable first production was expected from Q1’21 to the end of Q3’21. The Company’s review, with the assistance of the Company’s independent Qualified Person (QP) and mining consultants OreWin Pty Ltd (OreWin), found that project cost was expected to remain within the $5.3 billion budget but that there was an increasingly likely risk of a further delay to sustainable first production beyond Q3’21.
This assessment is the result of, but not limited to, certain delays to the completion of Shaft 2, which continued to
experience challenges during Q4’18 with structural, mechanical, piping and electrical installation productivity below expectations. Current expectations are that the completion of this technically complex installation and commissioning work will now take longer than previously anticipated. In addition to the Shaft 2 challenges, it was found that increased ground support was required in some key areas resulting in delays to mass excavations such as Ore Bin 11 and Primary Chamber 1 (PC1) and some areas on the footprint. While total lateral development or equivalent development metres have remained
on budget, these challenging ground conditions have had a direct impact on the project’s critical path.
Latest project update
Since the completion of the Company’s independent review, Turquoise Hill has become aware that Rio Tinto, as project manager, has advised that as the lateral development continues, there is more detailed geotechnical data than what was previously available and, as a consequence, the understanding of the rock mass around and under the ore body has improved. This data reveals there are areas of the mine footprint where the strength of the rock mass is more variable than
anticipated. This will require some potentially significant changes to the design of some future elements of the
development, and the development schedule. This, combined with the delay to Shaft 2, is ultimately expected to result in an overall schedule delay to sustainable first production beyond the end of Q3’21.
Rio Tinto has advised that detailed schedule and design work has begun and is currently underway, as is the work
necessary to estimate the impact on cost and development schedule resulting from this anticipated delay, and any impacts from the re-optimized aspects of the development. As a consequence, the completion of the 2019 definitive estimate review
has been delayed due to this expected expanded scope.
The Company is working with Rio Tinto to understand the issues and in parallel with the definitive estimate review,
Turquoise Hill will assess the impact of any further delay to sustainable first production beyond the end of Q3’21 on the Company’s cash flows, liquidity and funding requirements, as well as investigate potential mitigation options.

Structure fires in Mongolia claim 14 lives so far this year www.xinhuanet.com

ULAN BATOR, Feb. 27 (Xinhua) -- Fourteen people have been killed in structure fires in Mongolia so far this year, the country's National Emergency Management Agency (NEMA) said Wednesday.

Strategic consultation between Foreign Ministries of Mongolia and China held www.montsame.mn

Ulaanbaatar /MONTSAME/ The fourth strategic consultative meeting between the Ministries of Foreign Affairs of Mongolia and China was held successfully in Beijing, China on February 25.

Rio Tinto launches climate change report www.riotinto.com

Rio Tinto today published Our approach to climate change, which shows how the company plans to contribute to and leverage the transition to a low carbon future. The report uses recommendations from the Task Force on Climate-related Financial Disclosures (TCFD) as a framework to assess the potential risks and opportunities of climate change and related policies.

Rio Tinto chief executive officer J-S Jacques said, “Given our decision to strengthen our business and exit coal, we are now the only major mining company with a fossil-fuel-free portfolio, which means we are well-positioned to contribute to a low-carbon future.

“The materials we produce, from infinitely recyclable aluminium to copper used in electrification to our higher grade iron ore product, all play a part in the transition to a low-carbon economy.

“At Rio Tinto, we have reduced our emissions-intensity footprint by almost 30 per cent since 2008, putting us on track to beat our targets. Renewable energy is now used to produce nearly three-quarters of the electricity we use.

“We are aware that we have more to consider on climate change and will work with partners such as the members of the Energy Transitions Commission, Alcoa and Apple, the World Bank and others, to look at further sustainable solutions that enable us to continue to generate profits and contribute to people, the planet and prosperity”.

Rio Tinto has publicly acknowledged the reality of climate change since 2005, signed the Paris Pledge in support of the ambition and commitments set out in the Paris Agreement in 2015 and contributes to the United Nations Sustainable Development Goals.

Andrew Gray, Director ESG & Stewardship, AustralianSuper and Member, Climate Action 100+, said “Last year Rio Tinto supported the recommendations of the TCFD and we welcome their first report under this structure. 2018 saw the company undertake technological breakthroughs in materials that have a key role in the low carbon transition. We are also encouraged that Rio Tinto has joined the Energy Transitions Commission which takes a multi-sector approach to hard-to-abate sectors like steel”.

James Bevan, CIO at charity specialist CCLA, said “2018 saw the completion of Rio Tinto’s strategic exit from coal. Over time the company will face other complex portfolio and operational choices, so it is useful to see initial quantification of the impact of the low carbon transition on different commodities. We look forward to reviewing Rio Tinto’s new targets and metrics for the 2020s: a critical part of the TCFD recommendations and investors’ collective Climate Action 100+ request for Paris alignment”.

Climate risks and opportunities have formed part of Rio Tinto’s strategic thinking for over two decades. The company has outlined it will take action in four key areas:

1. Supply essential metals and minerals for the transition to a low-carbon economy
2. Reduce emissions from its own footprint
3. Identify and assess physical risk exposures
4. Partner to advance climate goals

Supplying essential materials
Policies and technologies that reduce emissions are expected to increase demand for many of Rio Tinto’s products. Electric vehicles use up to six times as much copper as those with internal combustion engines; aluminium’s lightweight properties can reduce fuel use in trucks, cars and planes; and borates are used in energy-efficient building materials. Higher quality iron ore is in demand from customers, such as those in China, to reduce their environmental footprint.

Reduce emissions from its own footprint
Rio Tinto has consistently beaten its climate change goals since the business first set short-term and medium-term targets in 2008. The company has already reduced emissions intensity by almost 30 per cent from 2008 levels, putting it on track to beat its latest target of reducing emissions intensity by 24 per cent from 2008 levels by 2020.

The company is working on targets for 2020 and beyond before current targets expire in 2020.

Rio Tinto’s Our approach to climate change report outlines a variety of scenarios and abatement options to help the company achieve its goals and this work will be further refined as targets are set.

Identify and address physical risk exposures
Rio Tinto continues to take steps to manage its risks and increase the resilience of the business to climate change, as well as position itself for new opportunities. The company has a strong governance process in place and regularly reviews and refreshes its approach to climate change within the corporate strategy framework.

Rio Tinto considers the exposure of each of its sites to physical risks related to climate change. The company also tests its portfolio against a range of scenarios mapping the policy and technology pathways necessary to limit global temperature rises. Rio Tinto’s analysis indicates that its business is relatively robust, including against a 2°C scenario, consistent with the goals of the Paris Agreement.

Partner to advance climate goals
In 2018, Rio Tinto announced a new technology partnership with Alcoa, with support from Apple and the governments of Canada and Quebec, to further develop carbon-free aluminium smelting technology – an industry first. The company also joined the Energy Transitions Commission, the peak body aimed at supporting the transition to a low carbon economy for hard to abate sectors.

Rio Tinto believes tackling climate change effectively will require a level playing field, not only across the mining industry, but across all industries and jurisdictions. The transition will be best managed through partnership between government, business and society.

The full report is available on our website.

Notes for editors
Our approach to climate change 2018 is Rio Tinto’s first report on the impacts of climate change, following the 2017 recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD was set up by the G20’s Financial Stability Board to develop a voluntary framework to disclose climate-related financial risks.

Under the GHG Protocol Corporate Standard, Scope 1 greenhouse gas emissions are direct emissions from owned, or controlled sources; Scope 2 emissions are indirect emissions from the generation of purchased energy; and Scope 3 emissions are all indirect emissions outside of Scope 1 and 2 emissions, including those emitted in downstream production.

Amarsaikhan Sainbuyan pledges to combat air, soil pollution www.zgm.mn

After an extended and heated discussion, Amarsaikhan Sainbuyan, former head of the Citizen’s Representative Council of the Capital City (CRCC) was elected the Mayor of Ulaanbaatar and the Governor of the Capital City. 25 out of the 45 members of the CRCC voted in his favor during the VII irregular session of the Citizen’s Representative Council of the Capital City, on Tuesday. On the contrary, Munkhchuluun Samdannyam, who self-nominated himself for the second time, lost with 19 votes. This is the second time the vote is taking place since Batbold Sundui, former Mayor of Ulaanbaatar was removed three months ago.

Energy cooperation opportunities with Mongolia discussed www.azernews.az

Azerbaijan and Mongolia are keen to develop energy aspect of bilateral cooperation, as a delegation led by Energy Minister of Mongolia Tserenpil Davaasuren visited the Energy Ministry of Azerbaijan at the invitation of Minister Parviz Shahbazov.

Australian Chamber of Commerce Mongolia (AustCham Mongolia), in cooperation with the world’s largest director institute, AICD is bringing an internationally recognized executive level Program to Mongolia www.austchammongolia.com

Australian Chamber of Commerce Mongolia (AustCham Mongolia), in cooperation with the world’s largest director institute, the Australian Institute of Company Directors (AICD) is bringing an internationally recognized executive level Program to Mongolia

austchammongolia.com 2019 02 26

Australian Chamber of Commerce Mongolia is proud to announce an internationally recognized executive program – “International Foundations of Directorship” – to be held in Mongolia in cooperation with the Australian Institute of Company Directors (AICD).

Ulaanbaatar-Darkhan road extension to be funded by EBRD www.montsame.mn

Ulaanbaatar /MONTSAME/ Minister of Road and Transport Development B.Enkh-Amgalan received Bruno Balvanera, Managing Director for Central Asia at the European Bank for Reconstruction and Development (EBRD).

China approves 6 mln T coal mine project in Inner Mongolia region www.reuters.com

China’s state planner said on Tuesday it has approved an open-pit coal mine project in Inner Mongolia region worth 1.46 billion yuan ($218 million)

Minister: Mongolia is keen to benefit from Azerbaijan’s rich experience in oil and gas industry www.azertag.az

“Mongolia is keen to take advantage of Azerbaijan’s rich experience in the field of oil and gas,” said the country’s Energy Minister Tserenpil Davaasuren as he met with his Azerbaijani counterpart Parviz Shahbazov.