Resumption of Oyu-Tolgoi underground mine expansion is hoped to lift Mongolia`s economy. The OT Underground Mine Development and Financing Plan has been signed by Erdenes Oyu-Tolgoi, Turquoise Hill Resources, and Rio Tinto during the Mongolian Prime Minister`s official visit to the United Arab Emirates (UAE). The agreement ends two-year dispute as Mongolia seeks to restore its foreign investor appeal.

The deal on the underground second phase of the Oyu Tolgoi gold-copper project is estimated to cost around 5 billion dollars which expects to boost Mongolia`s flagging economic growth after foreign direct investment plummeted by three quarters past year. “Mongolia is back to business,” said Mongolian Prime Minister Saikhanbileg Chimed.

OT is a multibillion-dollar deposit, 34 percent owned by the Mongolian government and the remainder is held by Turquoise Hill Resources, the subsidiary of Rio Tinto.  OT project consists of two phase including the first phase open-pit which has been operational since 2013 and the second phase underground mine which has 80 percent total value of the deposit.  When OT is in full production it is expected to provide as much as one-third of Mongolia`s annual revenues.