17 December, 2015
Shearman & Sterling represented Erdenes Oyu Tolgoi LLC, a Mongolian state owned company, in the US$5.4 billion project financing for the massive Oyu Tolgoi mining project in Mongolia.
In this transaction, we advised Erdenes Oyu Tolgoi LLC on various matters in relation to its role as a shareholder in the project financing. We also analyzed the relevant project financing documents to ensure that they comply with the “Oyu Tolgoi Underground Mine Development and Financing Plan”, which was signed in Dubai in May 2005 among the Oyu Tolgoi shareholders and the Government of Mongolia.
Oyu Tolgoi is one of the world's largest copper-gold deposits based in the southern Gobi desert of Mongolia and is jointly owned by Erdenes Oyu Tolgoi LLC (34%) and Turquoise Hill Resources (66%, of which Rio Tinto owns 51%). Once fully operational, it is expected to account for approximately 40% of Mongolia's gross domestic product.
The financial closing is expected to occur in early 2016. The financing ensures that the development of the underground mine will proceed quickly.
The Shearman & Sterling team was led by partners Matthew Bersani (Hong Kong-Capital Markets), Andrew Ruff (Hong Kong / Shanghai-Project Development & Finance), and Etienne Gelencsér (Tokyo-Project Development & Finance), with support from associate Crystal Chen (Hong Kong/ Shanghai-Project Development & Finance).
