Oyu Tolgoi WCF

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 The proposed investment comprises of an IFC A Loan of up to US$100 million and the possible mobilization of parallel loans from international and local commercial banks for the provision of a working capital facility (WCF) to Oyu Tolgoi LLC (“OT” or the “Company”) (“Project”). OT is an existing IFC client (under project # 29007). In December 2015, IFC provided a US$400 million A Loan, as part of the US$4.4 billion project finance facility (PFF), to support development of the Oyu Tolgoi copper and gold mine in the Southern Gobi region in Mongolia (IFC/R2013-0033).  The public disclosure documents for the previous investment are available at: https://disclosures.ifc.org/project-detail/ESRS/29007/oyu-tolgoi-llc. IFC is considering a short-term facility to support OT’s working capital needs. The facility will support development of the original Project as already approved in 2015, i.e. construction and development of the OT copper-gold mine with no change in the scope of the original Project. The OT mine is located in the South Gobi region of Mongolia, approximately 600 km south of the Ulaanbaatar, and 80 km north of the Mongolia-China border. OT currently operates open pit mining at the Southern Oyu deposit and limited production from block cave underground mining operations in the higher-grade Hugo North deposit (which is currently being developed and production rates will be increased in the coming years). Year-over-year copper concentrate production continues to increase. Construction of the underground mine involves eventual development of more than 200 km of underground tunnels at a depth of up to 1.3 km. Underground tunnelling is progressing consistently, and underground operations are expected to be fully ramped up by 2027.The proposed facility builds on the 2015 investment and provides short-term liquidity support for OT to ensure that it continues to stay on track with its operational targets, as well as with its development contributions. This ESRS thus builds upon the previously disclosed ESRS for the original project #29007 and provides an update on the key E&S risks and impacts that are being managed as part of the previously disclosed ESAP.