Company Name : Oyu Tolgoi Mine The list of contents is as follows: Company background Oyu tolgoi project Project description Ownership Structure Project Risk Analysis and Mitigation Supply / Reserve Risk Operating Risk Construction risk – Cost Over Run Construction risk – Delay risk Operating Risk Market Risk Political risk Financial Risk Environmental Risk Social Risk Comparison Successful project – Roy hill project Unsuccessful project – Karara Iron Ore Project Assessment of risk of Oyu Tolgoi Project Conclusion Sample Executive Summary Oyu Tolgoi mine (OT) is one of the world’s largest copper and gold mining projects in developing countries which raises investor’s concern in recent years for its announcement in project finance area. This report is concentrate on providing a comprehensive assessment of actual and potential risks of the project and corresponding mitigation methods for each. After identification of its risk profile, three major risks including country risk, environment risk and market risk has been graded as high and the current risk management plan is not sufficient to control them under an acceptable level. Following by that, two cases, one successful and one failing, have been taken into account to have a comparative view of OT’s case. Roy Hill iron ore project in Australia succeed for its project 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, OT prevail it in the aspects of experience management team and introduction of government sponsor. In the end, despite those risks, in the next few years, the OT mine project will suffer from uncertainty in underground pit construction process and negative movement of mineral price which may contribute to an unfavourable financial return. Moreover, the improvement of risk mitigation methods for the project is required to be in place, especially for...
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