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Reinsurance to Multilateral Investment Guarantee Agency (“MIGA”) for Oyu Tolgoi Copper and Gold Mining project in Mongol


December 17, 2015

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI) has decided to undertake a reinsurance to Multilateral Investment Guarantee Agency (MIGA) for Oyu Tolgoi Copper and Gold mining project in Mongol (the “Oyu Tolgoi Project”).
This is the third project which NEXI has undertaken a reinsurance to MIGA.

The Oyu Tolgoi Project is situated in the southern Gobi desert of Mongolia, approximately 80 kilometres north of the Mongolia-China border and 550 kilometres south of the capital, Ulaanbaatar. It is jointly owned by the Government of Mongolia (34 per cent) and Turquoise Hill Resources (66 per cent, of which Rio Tinto owns 51 per cent). Since 2010, Rio Tinto has taken a lead the Oyu Tolgoi project. Estimates indicate that Oyu Tolgoi contains 2.7 million tonnes of recoverable copper and 1.7 million ounces of recoverable gold in reserves. The scale of deposits at Oyu Tolgoi is expected to allow the project to operate for over 50 years. During operations, Oyu Tolgoi is committed to employing a minimum 90 per cent Mongolian workforce, a huge jobs boost for a country with a population of only three million.

NEXI has decided to undertake a reinsurance of MIGA program (Transfer and Convertibility Coverage, Breach of Contract Coverage, Expropriation Coverage, War and Civil Disturbance Coverage) which be provided to the banks who finance the Oyu Tolgoi Project.

As the Japanese official financial agency, NEXI will further strengthen the relationship and continues to cowork with MIGA on various projects.

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