A Cooperation Agreement was signed by Oyu Tolgoi LLC with its partner communities – composed of the Umnugobi aimag, and the Khanbogd, Manlai, Bayan-Ovoo and Dalanzadgad soums in April 2015.

The agreement sets out how the parties will work together towards sustainable development in important areas such as water, environment, pastureland management, cultural heritage, tourism, local business development and procurement.

The main goal of the agreement is to provide a strong governance structure for Oyu Tolgoi and local communities to achieve more effective cooperation and address mutual obligations.

Under the agreement, Oyu Tolgoi will make a contribution of US$5 million every year to a Development Support Fund (DSF) – administered jointly between Oyu Tolgoi and the Community – for community programmes and projects in the Umnugobi aimag.

The DSF manages the discretionary funds contributed to the DSF by OT in accordance with clause 8.3 of this Agreement to support sustainable development in the Umnugobi Aimag. The development that is supported by funding from the DSF may support the implementation of the Obligations and Commitments. The DSF specifically seeks to improve the wellbeing and capacity of Umnugobi Aimag communities by supporting Projects and Programs that target social infrastructure and the expansion of broad-based economic participation in the Cooperation Area.