In Mongolia, Turquoise Hill Acknowledged Administrative Court Proceedings

Turquoise Hill notes Administrative Court proceedings in Mongolia

On November 19, 2019, in Mongolia, the Turquoise Hill Resources (TRQ) noted all the proceedings of the Administrative Court related to a lawsuit. The proceedings were related to the decision on Oyu Tolgoi Underground Mine Development and Financing Plan (UDP). The Darkhan Mongol Nogoon Negdel NGO (Non-Government Organization) initiated this case to the government of Mongolia.

At the beginning of the case, the Administrative Court has approved all the NGO claims that were not followed by Mongolia’s government for settling the UDP. The formal written document will release in the coming weeks.

TRQ is contradicting all the suggestions made for UDP or any foundational OT agreements that are illegal. The underground plan and ARSHA, an investment agreement, has permitted the development of Oyu Tolgoi mine, which has long-term benefits to the people of Mongolia. Further information is yet to be updated.

There are many other statements in the document that are related to some matters that are not at all statements of the company’s beliefs and historical data, aims of the developments, etc. All the events and conclusions that will take place in the future are considered to be forward-looking information or statement. According to the United States Private Securities Litigation Reform Act of 1995, the forward-looking information is also called as a safe harbor.

Forward-looking statements depend on assumptions and other various factors. If these factors are untrue, then, the actual results of the company or an organization might differ from the future results, performance as well as achievements. There is no surety that the information will be correct and accurate. On such statements, the company deals in the pricing of copper, gold and silver, capital and operating costs, etc.

The ability of Oyu Tolgoi LLC to supply a domestic power source to the Oyu Tolgoi project may affect as it is required to deliver in a contractual time frame by communicating with the stakeholders and community relations and tax assessments. Many other factors, like currency fluctuations, cybersecurity incidents, the requirement of additional funding, the volatility of share price, etc., are also involved in the long-term domestic power supply for the Oyu Tolgoi project. The company tried to consider different factors to get the actual results and not the estimated one due to forward-looking statements.

It is suggested that people should not opt for forward-looking statements as it is risky, and there are fewer chances to get the predicted outcomes. The Risk Factors section in the Annual Information Form of the company differs from the forward-looking statements. The form was dated March 13, 2019, after the discussion in management and analyzing the financial condition as well as operation results till September 30, 2019.

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