Oyu Tolgoi LLC

BUILDING MONGOLIAN TALENT PIPELINE

5/24/2013 1

We are here to create a Mongolian Talent Pipeline

90% (ninety percent) of OT workforce will be

Mongolian Nationals - within 5 years of operation - to support a Professional and Skilled

workforce of 3000 plus employees

Building Mongolian talent pipeline

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At Oyu Tolgoi we believe that our people are the most important asset and this is

reflected in our approach to training and capability development. Our philosophy

is simple, in order to be a world class mining business, we must first attract,

develop and retain world class employees.

Building Mongolian talent pipeline

5/24/2013

• Apprenticeship Training • Operator Training • School builds and

upgrade/equipment • TVET teacher training

program • National employment

training scheme • Pre-Apprenticeship/Job

readiness

• National Scholarship • International Scholarship • Graduate development

program • Career Counseling • Collaboration with

Mongolian Universities/Curriculum development

Technical Programming

Professional Programming

Building Mongolian talent pipeline Oyu Tolgoi Trades and Operators Start up training Training started in 2010 – over 400 young Mongolians undergoing training in major mining trades areas:

• Heavy mobile equipment operation

• Heavy mobile equipment maintenance

• Fixed plant equipment operation

• Fixed plant equipment maintenance

• Electrical & Instrumentation

• Millwright & Fabrication

• Welding

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Building Mongolia talent pipeline Oyu Tolgoi Trades and Operators Start up training

5/24/2013

Apprentice training – 2010-2012

Trades areas EIT Dornod PC ETC Darkhan

Polytechnic WA/TW-M Бүгд

Concentrator operator 59 36 59 154

Fixed plant equipment maintenance

30 75 105

Electrician 15 12 27

Electrical and Instrumentation

28 28

HME Operator 44 44

HME Maintenance 37 37

Total 176 111 12 59 37 395

Apprentice Training – 2012 - 2013

Trades areas EIT ТW-

Mongolia WA Total

HME Maintenance

44 32 30 107

E & I 47 48

Welding 20 20

Millwright 17 17

Total 128 33 30 190

Vocational School Upgrade/Construction Progress

Vocational training

School of Umnugovi

province – USD

2.0MLN + 0.975MLN

Vocational School of

Govisumber province –

USD 1.9MLN +

0.45MLN

New vocational school in Nalaikh - USD 5.0 MLN + 1.5 mln. for existing

school in UB = $9.0MLN

Erdenet Technical

College – USD 0.7

MLN

Darkhan Technical

College – USD2.2MLN

+ 1.8MLN

New vocational school in KB - USD 2.35MLN New vocational school in

DZ - USD 5.0 MLN

Upgrading 4 schools and building 3 new schools with OT funding - $26.6 mln

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School builds and Dormitory upgrade

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Modern Technology Training Equipment

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Building Mining Centers of Excellence

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Building Mongolian talent pipeline: Mongolian Vocational Teacher Training Program

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Scope Status

- 3-year vocational teacher training program:

- 1200 vocational teachers of Mongolia will be trained over the period from November 2011 to end 2014 - Teachers will achieve Diploma of Training and Assessment, according to Australian Quality Training Framework (AQTF)

- The draft proposal is being developed by ETAS Group, Australia, in collaboration with key stakeholders. The final proposal is to be submitted by 2nd week of September. - First visit of ETAS group to Mongolia is taking place, having initial meetings with stakeholders, including Ministry of Education and Agency for Vocational Education and Training.

Building Mongolian talent pipeline 3300 vocational training scheme

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2409 Male 76%

760 Female

24%

6600 Mongolians being trained …

….in 40 disciplines at 47 TVET schools

19% 1%

25%

3% 0%

50%

2%

3 yr budget of ₮36b increased by ₮5.5b due to 30% increase in minimum wage

Spent to date almost 28 bln MNT

tuition fee

dorm fee

trainingequipment

curriculumreform

contingency usedby AVET

stipend and meal

-Excellent work relationship (AVET) -On-the-job training for trainees -Regular and rigorous monitoring of progress -Positive impression from trainees and school management - 837 trainees graduated in August and 250 got a permanent job right after the OJT -16 persons got a job in OT LLC which will increase steadily this autumn

5/24/2013

Building Mongolian Talent Pipeline

External cooperation

• Close cooperation with the Mongolian Government, its agencies, ministries through MoU on partnership;

• Collaboration with other stakeholders in VET system, including MCA-M, GIZ, SDC, BCM, employers, suppliers;

• Cooperation agreements and MoU signed with educational institutions such as NUM, MUST, AUM;

• Partnership with best training institutions and organizations from around the world;

VETC NGO

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Building Mongolian talent pipeline

Impacts of OT Training activities:

• Hundreds of Mongolian young people will be employed at OT for different operational levels, including operation, maintenance and management;

• Thousands of Mongolians exposed to international standard training process and received a quality training, gradually being employed at development projects in mining, construction, road & railroad construction and other industries;

• VET schools upgraded with quality facilities, including modern technology training equipment, tools and teaching/learning software;

• Professional level of teaching staff at VET schools uplifted;

• Vocational education system of Mongolia upgraded up to the international standard and be able to supply growing industries with well-trained, skilled workforce;

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Policy level:

Australian Qualification Framework (AQF) –

Australian Quality Training Framework (AQTF) -

Competency based training –

Training packages –

Partnership:

• БСШУЯ, МБСГ – • ХЯ, МБСБХЗГ – • Өмнөговь аймгийн Засаг даргын тасгын газар • Transwest Mongolia, Wagner Asia Mongolia • Түншлэгч, хандивлагчдын зөвлөлдөх зөвлөл – VETC (ТТБ) • Holmesglen Institute (Melbourne, Australia) – Nalaikh, Khanbogd

& DZ • Шууд хөрөнгө оруулалттай сургуулиуд – Эрдэнэт, Дархан,

Дорнод, Өмнөговь