Over the past year, Minter Ellison in Mongolia has been advising Rio Tinto, and its subsidiary Oyu Tolgoi LLC, on a landmark cooperation agreement with nomadic and local communities in the South Gobi province where its world-class Oyu Tolgoi copper mine is situated.

The agreement creates a framework regulating how the parties will work together towards sustainable development in important areas such as water, environment, pastureland management, cultural heritage, tourism, local business development and procurement.

Our team advising Rio Tinto and Oyu Tolgoi LLC comprised partner Lis Ellis, senior associate Sebastian Rosholt and Dunnaran Baasankhuu, a partner of ME MGL Advocates LLP*.

"This cooperation agreement is about the long term and setting a clear direction for future collaboration and cooperation between Oyu Tolgoi LLC and the local communities. Our team was delighted to work so closely with Oyu Tolgoi on this project and I have no doubt the agreement will be a benchmark and model for other projects in the future,” Lis Ellis said.

The Oyu Tolgoi mine is the largest financial undertaking in Mongolia's history and is expected to account for more than 30% of the country's gross domestic product when it is completed. Under the 30-year term of the agreement, Rio Tinto will contribute in excess of US$150 million for the development of local community initiatives and targeted infrastructure.