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Rio Tinto: Oyu Tolgoi In Deals With Three Chinese EPC Contractors

Mining giant Rio Tinto Plc (RTNTF,RIO,RIO.L, RTPPF) announceds that Oyu Tolgoi LLC has entered into agreements with three Chinese EPC contractors, each of which potentially creates a smaller related party transaction for the purposes of the UK Listing Rules.

Oyu Tolgoi is an entity in which Rio Tinto has a 33.5% indirect ownership interest.

As part of a competitive tender process, each contractor has been requested to submit a bid for the engineering, design and construction of a power station for Oyu Tolgoi in Mongolia.

The agreement entered into with each bidder provides that, where a bidder submits a conforming bid and it is not accepted by Oyu Tolgoi, then Oyu Tolgoi will pay $500,000 to that bidder to offset the costs of preparing that bid and the early engineering and design work packs.

The contractors are China Machinery Engineering Corporation, Harbin Electric International Company Limited and Power Construction Corporation of China. Each of these contractors is a State-Owned Enterprise ultimately owned by the People's Republic of China.

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