MONTREAL, March 16, 2020 /PRNewswire/ - Since January, the
movement of goods and people within Mongolia has been restricted within and across
its borders to prevent the spreading of the novel coronavirus
(COVID-19). Following the first positive test for COVID-19 in
Mongolia on March 10 2020, the Government of Mongolia increased its restrictions on flights
in and out of the country and on the movement of goods and people
within and across its borders. Oyu Tolgoi LLC is complying with all
of these directives and is working closely with the Mongolian
authorities to prioritize the health and safety of all its
employees and the wider community.
During this time of heightened uncertainty, the Oyu Tolgoi
Business Resilience Team is meeting on a daily basis and taking a
considered and risk-based approach to managing our response and
actions for the prevention of COVID-19. As part of a range of
broader measures, we have temperature and health screenings in
place, and a dedicated hotline for employees who are on or off site
to call in for advice or information sharing.
To assist with the battle against COVID-19, Oyu Tolgoi LLC has
donated MNT100 million to the
Government of Mongolia, and
through the Oyu Tolgoi-sponsored Gobi Oyu Development Support Fund,
we further committed MNT200 million
to the Umnugovi emergency committee, and MNT10 million to the Khanbogd Emergency
Commission for prevention support. We are also sharing our
prevention and hygiene controls we have in place with local
companies as they prepare to resume their operations and border
crossings.
Despite the impact of COVID-19, the open pit of the Oyu Tolgoi
mine continues to operate and deliver shipments of copper
concentrate to its customers across the border.
Work on the underground project continues, however there is
restricted access for teams from Oyu Tolgoi, Rio Tinto and our
construction partners to oversee development and provide specialist
technical services. The availability of specialist service
providers at the site is essential to safely continue work on
technical activities including but not limited to such projects as
the headframe commissioning of Shafts 3 and 4.
The full impact of the slowdown on the underground project is
unknown at this time and the company will update the market once
more information is available. The mine plan for the Underground
Project currently remains on track to be finalized in the first
half of this year, with a definitive estimate to be provided for
the development of this world-class orebody in the second half of
2020.
"We fully support the Government of Mongolia's decisive actions to prevent the
spread of COVID-19," stated Ulf Quellmann, Turquoise Hill's Chief
Executive Officer. "The health and safety of our employees and the
wider community is our first priority. We will continue to work
with our employees, local communities and the Government of
Mongolia to manage the
situation."
Forward-Looking Statements
Certain statements made herein, including statements relating to
matters that are not historical facts and statements of the
Company's beliefs, intentions and expectations about developments,
results and events which will or may occur in the future,
constitute "forward-looking information" within the meaning of
applicable Canadian securities legislation and "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements and information relate to future events
or future performance, reflect current expectations or beliefs
regarding future events and are typically identified by words such
as "anticipate", "could", "should", "expect", "seek", "may",
"intend", "likely", "plan", "estimate", "will", "believe" and
similar expressions suggesting future outcomes or statements
regarding an outlook. These include, but are not limited to,
statements regarding the potential impact of COVID-19 on the
underground development schedule and contracts of the
Company, information regarding the timing and amount of
production and potential production delays, statements in respect
of the impacts of any delays on the Company's cash flows, expected
copper and gold grades, liquidity, funding requirements and
planning, statements regarding timing and status of underground
development, the development options under consideration for the
design of the Panel 0 and the related cost and schedule
implications, timing and status of the Tavan Tolgoi-based power
project, capital and operating cost estimates, timing of completion
of the definitive estimate review, mill throughput anticipated
business activities, planned expenditures, corporate strategies,
and other statements that are not historical facts.
Forward-looking statements and information are made based upon
certain assumptions and other important factors that, if untrue,
could cause the actual results, performance or achievements of the
Company to be materially different from future results, performance
or achievements expressed or implied by such statements or
information. There can be no assurance that such statements or
information will prove to be accurate. Such statements and
information are based on numerous assumptions regarding present and
future business strategies, local and global economic conditions,
and the environment in which the Company will operate in the
future, including the price of copper, gold and silver and
projected gold, copper and silver grades, anticipated capital and
operating costs, anticipated future production and cash flows, the
anticipated location of certain infrastructure and sequence of
mining in Panel 0 and the status of the Company's relationship and
interaction with the Government of Mongolia on the continued operation and
development of the Oyu Tolgoi mine and Oyu Tolgoi LLC internal
governance. Certain important factors that could cause actual
results, performance or achievements to differ materially from
those in the forward-looking statements and information include,
among others, copper; gold and silver price volatility;
discrepancies between actual and estimated production, mineral
reserves and resources and metallurgical recoveries; development
plans for processing resources; the outcome of the definitive
estimate review; matters relating to proposed exploration or
expansion; mining operational and development risks, including
geotechnical risks and ground conditions; litigation risks;
regulatory restrictions (including environmental regulatory
restrictions and liability); Oyu Tolgoi LLC's ability to deliver a
domestic power source for the Oyu Tolgoi project within the
required contractual time frame; communications with local
stakeholders and community relations; activities, actions or
assessments, including tax assessments, by governmental
authorities; events or circumstances (including public health
crises, strikes, blockages or similar events outside of the
Company's control) that may affect the Company's ability to deliver
its products in a timely manner; currency fluctuations; the
speculative nature of mineral exploration; the global economic
climate; dilution; share price volatility; competition; loss of key
employees; cyber security incidents; additional funding
requirements, including in respect of the development or
construction of a long-term domestic power supply for the Oyu
Tolgoi project; capital and operating costs, including with respect
to the development of additional deposits and processing
facilities; and defective title to mineral claims or property.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements and
information, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. All
such forward-looking statements and information are based on
certain assumptions and analyses made by the Company's management
in light of their experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors management believes are appropriate in the
circumstances. These statements, however, are subject to a variety
of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected
in the forward-looking statements or information.
Readers are cautioned not to place undue reliance on
forward-looking information or statements. By their nature,
forward-looking statements involve numerous assumptions, inherent
risks and uncertainties, both general and specific, which
contribute to the possibility that the predicted outcomes will not
occur. Events or circumstances could cause the Company's actual
results to differ materially from those estimated or projected and
expressed in, or implied by, these forward-looking statements.
Important factors that could cause actual results to differ from
these forward-looking statements are included in the "Risk Factors"
section in the Company's Annual Information Form dated as of
March 13, 2019 in respect of the year
ended December 31, 2018 (the "AIF")
as supplemented by our Management's Discussion and Analysis of
Financial Condition and Results of Operations for the three and
nine months ended September 30, 2019
(MD&A).
Readers are further cautioned that the list of factors
enumerated in the "Risk Factors" section of the AIF and in the
MD&A that may affect future results is not exhaustive. When
relying on the Company's forward-looking statements and information
to make decisions with respect to the Company, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events
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SOURCE Turquoise Hill Resources Ltd.