Mining and a Cooperation Agreement: A Case Study of Oyu Tolgoi mine in South Gobi, Mongolia.

2017

Mrs Chimedlkham Enkhbayar (Graduate Student (Master's) - University of Alberta), Dr Jeremy Richards (Professor - University of Alberta)

Mongolia, a mineral-rich developing country, has been experiencing a mining boom with large mining developments. Its economy has become increasingly reliant on the resource sector. Oyu Tolgoi, one of the world's largest Cu-Au projects located in southern Mongolia, has been operated by Turquoise Hill Resources since 2009. Under the Mineral Law, Oyu Tolgoi signed a Cooperation Agreement (CA) with local three governances in 2015. This study employs a qualitative case study of the Oyu Tolgoi project's CA emphasizing on its social aspect. According to the CA, Oyu Tolgoi sets an annual fund to support a sustainable development in southern Mongolia. Unfortunately, not all locals are aware or capable of getting it for different reasons. This study poses that a CA can be a good way to the social wellbeing of mining-affected communities if it is communicated well with local residents, and the industry and communities find their common ground towards a sustainable growth.
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