Company Name : Oyu Tolgoi Mine The list of contents is as follows:Company background Oyu tolgoi projectProject description Ownership Structure Project Risk Analysis and Mitigation Supply / Reserve RiskOperating RiskConstruction risk – Cost Over RunConstruction risk – Delay riskOperating Risk Market Risk Political riskFinancial Risk Environmental Risk Social RiskComparisonSuccessful project – Roy hill projectUnsuccessful project – Karara Iron Ore ProjectAssessment of risk of Oyu Tolgoi ProjectConclusion Sample Executive SummaryOyu Tolgoi mine (OT) is one of the world’s largest copper and gold mining projects indeveloping countries which raises investor’s concern in recent years for its announcement inproject finance area.This report is concentrate on providing a comprehensive assessment of actual and potentialrisks of the project and corresponding mitigation methods for each.After identification of its risk profile, three major risks including country risk, environmentrisk and market risk has been graded as high and the current risk management plan is notsufficient to control them under an acceptable level.Following by that, two cases, one successful and one failing, have been taken into account tohave a comparative view of OT’s case. Roy Hill iron ore project in Australia succeed for itsproject due to perfect transference of risk and clear operating strategy of which OT lacks a lot.On the other hand, comparing to the failure one, Karara mining which is still in Australia, OTprevail it in the aspects of experience management team and introduction of governmentsponsor.In the end, despite those risks, in the next few years, the OT mine project will suffer fromuncertainty in underground pit construction process and negative movement of mineral pricewhich may contribute to an unfavourable financial return. Moreover, the improvement of riskmitigation methods for the project is required to be in place, especially for...
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