Oyu Tolgoi Mining and Processing EIA

Oyu Tolgoi ProjectMining and Processing EIA2. Water supply is likely to be developed that may improve availability of existing water wells andwater for human consumption.3. The profit and living standard of the local communitie will be raised.4. Condition of the local development will be improved.5. The structure of education, profession and employment is likely to change with a potentialreduction in animal husbandry and increase in mining related activities.6. The development of local support services such as meat, vegetables, milk production and etc., willcontribute to the Soum economy.7. Potential increasing of local employment.Negative impacts are:1. Increased level of noise, dust and vibration created while working adjacent to residential areaduring mining activity, which may create stress on local inhabitants and workers.2. May have to increase movement of peoples from other regions and may have to result to theexisting local residential condition, additional stress to the local administration and local services.3. Possible increasing of livestocks may have to effect overgrazing of pasture.4. Increase the some accidents occurances within area due to increasing peoples, vehicles and varoiusequipments using Mining and other relating activities.5. To relocation households which are living within 10-20km radius from the OT Project Areabecause they may have to effected during mining activities such as blasting, dust emission andother impacts.Local & Provincial Economic EffectThe main socioeconomic effects of the Oyu Tolgoi project on local communities are expected to be:• Impact on Local & Provincial Employment - the project development will bring direct and indirectimpacts on regional employment. According to IMMI 2005 estimations, the mine will employ 1,350Mongolian workers during operations. Using 2002 statistics, an Omnogovi worker has 3.97 familymembers, it is therefore estimated that 5,354 people will directly benefit from the mine activities. Miningsector growth also increases demand for output in other industries, thus indirectly contributing toemployment growth in other industries.• Impact on Regional GDP and Government Budget – IMMI estimate that in 2007 (the estimated outputcommencement date of the mine), the provincial GDP will increase more than 12-fold. In addition,regional government revenue was projected to rise with project development forecast through increasedmining licence, land, and water fees, as well as property and payroll taxes. Finally, due to increase in taxrevenue paid by IMMI from payroll taxes Khanbogd Soum’s annual budget revenue will also increase.• Impact on Human Development Index (“HDI”) - (HDI) is one of the main indicators of socialPrepared by ECO-TRADE LLC.,Environmental Consultants, MongoliaClient: Ivanhoe Mines Mongolia Inc(IMMI) XXKPart IV. Chapter 1. Page 15