The ceremony to join and sign the code was held in Ulaanbaatar on 4 February 2016, and in addition to our Company it was attended by representatives of companies such as Erdenes Mongol, Oyu Tolgoi, SouthGobi Sands and Terra Energy.

The main aim of the voluntary code is to establish a common standard for water use, management and reporting among mining companies operating in the Gobi region and to embed responsible mining practice. It also has many other benefits, such as creating open, transparent communication between companies, local authorities and residents on water issues and encouraging cooperation among them. Importantly, the companies joining the code accept the obligation to comply strictly with Mongolia’s relevant laws and regulations on water use and management, to follow international benchmark standards in their operations, and voluntarily to declare that they will work actively with all relevant parties in this area.

Energy Resources is regarded as a benchmark in its sector for water management and water recycling, and has introduced many technologies that are the first in Mongolia and take account of the water-scarce conditions of the Gobi. For example, by building a tailings dewatering plant next to its coal washing plant it has raised water recycling to around 95 per cent. It has also built a power plant with air cooling technology that uses very little water. The Company took an active part at every stage of developing the code and shared its experience with other companies.