A/HRC/43/45/Add.2
C.
Oyu Tolgoi
54.
The Independent Expert had the opportunity to visit Oyu Tolgoi mine, which is
located in Khanbogd District in Umnugovi Province. The project started more than a decade
ago and was made possible with the managerial and technological investment of Rio Tinto,
the commitment of the Government and the contributions of a range of public and private
lenders, including the European Bank for Reconstruction and Development and the World
Bank Group.
55.
Having lived in the province for centuries, communities of nomadic herders have thus
been cohabiting with the mine since the beginning of this large-scale project. Herders, who
move around freely, sustaining their livelihood on the region’s pastureland and making the
best of the desert’s scarce water resources, have seen the region change drastically over the
last years.
56.
A total of 34 per cent of Oyu Tolgoi’s shares are owned by the Government and
managed by Erdenes Oyu Tolgoi, a State-owned company. The remaining 66 per cent is
owned by Turquoise Hill Resources, a company whose major shareholder is Rio Tinto. Oyu
Tolgoi’s sales revenue in 2018 amounted to $1.18 billion, and taxes, fees and other payments
to the Government amounted to $200 million.64 From 2010 to 2019, the company spent $9.5
billion overall in Mongolia in salaries, payments to Mongolian suppliers, taxes, donations
and other payments to the Government. The project, currently employing thousands of
people, includes an open pit mine (phase 1) and the future underground mine (phase 2),
intended to be in operation soon.65
57.
Oyu Tolgoi’s efforts to create jobs in the region and to support local businesses
through its procurement policy should be highlighted. In 2018, 95 per cent of the workforce
was locally recruited, in compliance with the cap of 10 per cent on foreign workers provided
for in the mining sector’s legislative framework. 66 Oyu Tolgoi is also committed to
promoting gender equality among employees and creating more equal opportunities for
women. Nevertheless, these efforts should also be integrated into targeted policies to balance
the structural asymmetric distribution of unpaid care work responsibilities among men and
women. The enterprise’s commitment to ensuring health and safety is notable and stands out
within the industry, although some gaps need to be addressed.67
58.
In 2012 and 2013, two groups of local herders submitted complaints to the World
Bank Group’s Compliance Advisor Ombudsman about the mine’s resettlement plan of 2004
and economic displacement compensation programme of 2011. Their complaints outlined
specific concerns that the diversion of the Undai River for the mine would deplete local water
sources, deteriorate pastureland and threaten the community’s spiritual practices. They also
alleged that they had been inadequately compensated. In 2017, an agreement was reached
between Oyu Tolgoi, the local authorities and herder communities. In this regard, the
Independent Expert would like to salute the engagement of all three parties in the mediation
process and commend them for reaching an agreement after years of mediation and taking
into account the intrinsic power imbalances among the parties involved.
59.
A total of 200 square kilometres of pastureland have been reallocated due to the
mining activities. Herder communities who have been using the land for generations have
had to expand their pasture practices and look for other grazing areas, resulting in potential
pressure on other herder families already living there. In addition, dust from the mining
operations has reportedly been affecting animals, and waste rock dump has been affecting
pastureland and spiritual practices.68 Despite progress on some issues, such as the paving of
64
65
66
67
68
Oyu Tolgoi, Year in Review: 2018 (Ulaanbaatar, 2019), pp. 18–19.
Oyu Tolgoi, Past, Present and Future: Summary Version (Ulaanbaatar, 2018), p. 16.
Christopher Melville and Erdenedalai Odkhuu, “Mining in Mongolia: overview”, Thomson Reuters, 1
July 2019.
See ILO, “Briefing note”.
See Tripartite Council of Khanbogd soum, Umnugovi aimag, Multidisciplinary Team and
Independent Expert Panel Joint Fact-finding: Summary of the Experts’ Reports (Oxford, JSL
Consulting, 2017). Available at http://www.cao-ombudsman.org/cases/documentlinks/documents/MDTIEP_FINALREPORT_ENG_January292017_001.pdf.
11
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