Livestock reconstitution

Veterinary assessment

New support to herders

LEARN & SHARE

AREVA MONGOL / COGEGOBI

Forward Looking Energy Newsletter

• 02• SUMMER EDITION

KEY FIGURES

EditorialS. Munkhdelger, HR manager of ADEN Services Mongolia LLC

UNDERSTAND

Interview from

Project with herders

FOCUS

Scientists explain about uranium and yellow cake

More than

220,000 USD planned for local

development projects in 2014 in Dornogobi and Sukhbaatar provinces

54 families living on AREVA licenses

in Ulaanbadrakh and Zuunbayan regularly visited

AREVA is a responsible actor in the mining sector: engagement, transparency and continuous improvement are the fundamentals of our approach to responsibility. To become a success, a mining project has to be understood and accepted by its neighbors. In Mongolia, our neighbors are herders, communities and local authorities in the provinces of Dornogobi and Sukhbaatar. In line with our commitment to ICMM* principles as a member, we are willing to implement responsible industry practices; transparent engagements and effective communication actions with our stakeholders, with a strong focus on local herder communities.

Dialog is crucial in our approach. Dornogobi and Sukhbaatar’s communities have expressed their will to be given more information about both daily activities taking place on site as well as short and medium term plans related to the project. That’s why we have started Local Cooperation Committees in Ulaanbadrakh soum and Zuunbayan bag of Sainshand soum,

in order to openly dialogue about our activities with all stakholders. Field visits of AREVA’s activities in Mongolia and abroad, as well as the recent trip to Kazakhstan will complete our approach. From the 9th to the 16th of September, herders of Ulaanbadrakh, soum of Dornogobi province, visited KATCO and AREVA sites, and met with Kazakh herders. It was a unique opportunity for them to exchange and compare experiences.

As a responsible actor, we have a dedicated community relations team, with 3 professionals recruited. They are in charge of maintaining a regular contact with local communities by visiting them every week and answering all questions related to the mining project. They also maintain a constant information thread to AREVA Mongol’s management about possible remarks and requests for support.

These actions are important to us - and to me - and will develop year after year at the pace of our mining project in Mongolia.*International Council of Mines and Metals

Thierry Plaisant General Director of AREVA Mongol and Cogegobi

In May and June 2014, AREVA MONGOL commissioned a veterinary assessment of herds belonging to 20 families from the soum of Ulaanbadrakh and bag of Zuunbayan of Sainshand Soum, Dornogobi aimag, including 15 families living on or close to COGEGOBI’s exploration tenements. This assessment is part of the company’s program aiming at supporting herding livelihood and production as well as improving veterinary service.

The professional organization United Private Veterinary Clinics of Mongolia Cooperative and the Veterinary Institute of the Mongolian University of Agriculture were selected after a tendering process to carry out the assessment. 5 veterinarians performed general clinical examinations

on 474 animals belonging to the 20 families, collected blood samples from 62 animals in order to determine levels of heavy metals, and 46 samples for parasitological examination. In addition, 8 animals were bought and had a complete autopsy.

On July 16 and 17, the result of the study was presented to families involved in the study, local herders as well as to local authorities. The study highlights that the health assessment of the herds show similar condition to the herds living in other aimag.

Afterwards, the veterinarians gave a dedicated training to herders providing recommendations on how to improve the overall health of their livestock. •

LEARN & SHARE

VETERINARY ASSESSMENT

AREVA Mongol and COGEGOBI have

implemented livestock reconstitution program since 2007. Because of the rude winter conditions of 2006-2007, many herder families lost their livestock which is the only life source for them.

The livestock reconstitution project has been implemented in Zuunbayan bag since 2011. Today Zuunbayan bag has over 450 families in total out of which 55 are herding families with over 12.1 thousand heads of livestock.

Six families were selected by vote during the Zuunbayan bag residents meeting organized in August 25th of 2014. The selected six families received in total 52 animals including 25 female sheep, 25 female goats, 1 male sheep and 1 male goat under the project. These herder families will benefit for longtime, even they give back this livestock in 2 years keeping the young ones.•

LIVESTOCK RECONSTITUTION IN ZUUNBAYAN BAG

P.02 // LOOKING FORWARD ENERGY NEWSLETTER

More than

100 DAYS without lost-tiMe work accident for coGeGoBi teaMs

till September 30, 2014.

NEW SUPPORT TO HERDERS

SCIENTISTS EXPLAIN ABOUT URANIUM AND YELLOWCAKE

In order to improve the livelihood of local herders and increase their incomes, the Sustainable Development and Local Affairs department of AREVA Mongol has successfully organized a “Sheep Procurement event” for the Naadam festival Holiday. During the event Argalant bag herders, N. Turtogtokh and N. Ariunbold of Ulaanbadrakh soum of Dornogovi aimag, were actively involved by selling around 30 sheeps of about four years old to employees of AREVA Mongol and COGEGOBI companies.

This cooperative and mutual beneficial initiative will carry on during winter period with a new supply from herders from Dornogovi aimag to both companies’ employees. •

On June 24 was held in Ulaanbaatar the “Mongolian Scientists about Uranium and Yellowcake” seminar gathering 130 people including 94 journalists

from 60 Mongolian media.

The event was co-organized by Nuclear Energy Agency, Press and Information Department of the Government of Mongolia, Physics Technology Institute of the Academy of Sciences, the Nuclear Research Center of the National University of Mongolia, and Mongolian University of Sciences and Technology.

N. Tegshbayar, Chairman, Nuclear Energy Agency, opened the seminar with a keynote address “Information about uranium reserves of Mongolia and the position of Mongolia about processing the yellowcake.”

Presentations were made by highly recognized senior Mongolian scientists and geologists with decades of knowledge and experiences in uranium exploration, nuclear research and yellowcake processing. •

Supporting herders in their daily activities

Project with herders

In the nuclear field, confidence is not achieved by decree; AREVA earns it through absolute commitment to nuclear safety and transparency: operating safety, the safety of the products and services in its facilities, and the safety of its customers’ facilities. Safety is the first priority for the group that requires the commitment of each employee and subcontractor.

The «Safe Together!» action plan is designed to bolster culture of

occupational safety and is deployed every day in all of the group’s entities through the commitment and participation of each one. For the second consecutive year June has been designated as AREVA’s safety month. Each site of the group has once again organized a Safety Day with various activities aimed at ensuring safety culture awareness for all, as well as for each Mining activities’ employee and subcontractors.

In Mongolia 2 safety days were organized with the participation of 150 employees and subcontractors.The safety day at the Dulaan Uul site included safety presentations and

“Live free from Hazards” game to which AREVA and subcontractors’ teams participated. The geologists’ team was the winner for a second year in a row. The safety day at the Ulaanbaatar office was an occasion to remind everybody the importance of safety at all locations, in the head office as well as on site.

Safety, the top priority

FOCUS

P.03 // LOOKING FORWARD ENERGY NEWSLETTER

Ulaanbadrakh soum and Zuunbayan bag are home for

more than 300 families of nomadic herders, out of which 50 are our closest neighbors as COGEGOBI’s licenses territory overlaps with their pastureland. Their opinion and concerns as well as the contribution of the mining project to their livelihoods are questions of prime importance for AREVA Mongol.

In order to lay down the foundation of mutually beneficial relationships, AREVA Mongol has launched a set of initiatives dedicated to improving the life of these herding communities, focusing on key issues for their daily lives. AREVA Mongol community relations staff indeed maintains a regular contact with herder families living in the vicinity of

the exploration project, and herders’ representatives are consulted every quarter through the holding of Local Cooperation Committees.

This year, the absolute priority for herders is the health of their animals, in relation with unexpected issues that took place during the birth season. In that respect, the veterinary assessment commissioned by AREVA (presented on page 2) helped herders better understand the animal health issues encountered in the area. As one of the recommendations was to improve the parasitic infestation level of herds assessed during the survey, AREVA Mongol, together with the United Private Veterinary Clinics of Mongolia Cooperative organization, funded the washing with anti parasitic substances of more than 40,000 heads of livestock (accounting for the herds of more than 100 families), during the month of August 2014.

In parallel, and since 2006, a cattle reconstitution project is being run in the area. Initially started with 2 vulnerable families of Argalant bag, the project has now benefited to more than 40 households. The lending of animals help poor

families reconstitute their herds with the obligation to transfer the same amount of animals to another vulnerable family after 2 years.

Access to water comes second after veterinary issues in the list of concerns that AREVA Mongol’s neighbors have in their daily life. Indeed, with no surface water runoff available, Gobi herders fully depend on poorly available underground water resources. Progressively, AREVA Mongol is intending to help herders improve their revenues by offering them new opportunities to sell the fruit of their labor. A first step was taken with the Naadam Holiday meat purchase event. In the meantime, milk consumed on the Dulaan Uul camp also comes from the cows of herder J. Norsuren, who now delivers 10 liters of fresh milk daily. Over the long term, a local meat supply chain is being set-up by AREVA Mongol’s catering company, ADEN service, in order for the camp to be supplied with meat from Ulaanbadrakh soum herds all year long.•

Could you present your company?

ADEN Services Mongolia LLC is a joint venture company and a service provider offering a range of services domestically. Our Mongolian investors are companies which have already established themselves in their respective industries and gained experience over many years. We were established with the aim of achieving, together, world-class service industry standards in Mongolia. The ADEN Services Group, the reference investor, has over 30 branches in over 40 cities and 21,000 employees throughout the world and has been actively operating in Mongolia since 2008. Today we have established our own competitive position in the industry, and this is recognized by our customers and strengthens their confidence in us. In the past, we have successfully implemented camp

procurement and comprehensive camp service management for 2 projects in Umnugovi aimag.

How long has your company been operating in Dornogovi aimag? What do you think about the working environment and conditions?

The company has been operating in the Ulaanbadrakh sum of Dornogovi aimag since the establishment of the cooperation agreement with COGEGOBI in 2013. COGEGOBI sets very high requirements on hygiene, safety and comfort for its employees, as well as overall service quality. This is very much in line with our goals and principles. It is very much our ambition to strive to win the esteem of all our customers. Thus, we prioritize the quality of our products and services. And I believe that the service that we provide is setting a new standard in Mongolia.

How does you company contribute to provide employment for local residents?

Currently, we have employed about 30 local people in the Dulaan Uul project. Generally, 75 percent of our total employees are locally recruited. So it is probably true that not many companies recruit such a proportion of employees in the local area. In particular, maintaining employment for the employees is very important

in these hard economic conditions. One good indicator in this respect was that we received an award for excellence in fulfilling our social insurance payment obligations this year. Besides the employment aspect, we also source our milk and vegetable supply from local residents. All of this helps promotes local businesses, and of course it is in line with our company’s social responsibility policy.

How do you see future cooperation with AREVA Mongol and COGEGOBI companies?

We, Mongolians, realize and understand more than before the importance and necessity of the mining industry’s contribution to Mongolian development. We mustn’t forget that there are many families behind the many hundreds of employees working in the industry. Therefore, I obviously want to see the stable operation here of a prestigious worldwide company in the shape of AREVA Mongol, which could become a model of responsible mining in Mongolia. If such a company maintains a stable operation, it means that many companies like us and many hundreds of Mongolian workers employed there will have their social guarantees and be more secure. We will continue to appreciate cooperating with AREVA Mongol into the future. •

UNDERSTAND

Publisher: AREVA Mongol / COGEGOBI Photo credit: AREVA Copyright: AREVA

CONTACT US

AREVA Mongol11th floor, Express tower, Peace avenue1 khoroo, District Chingeltei, Ulaanbaatar Mongolia

Tel: +(976) 11-320698, 70110675 Fax: +(976) 11-329037 Email: tumennast.muunokhoi@areva.com

P.04 // ENERGY IS OUR FUTURE, DON’T WASTE IT !

Developing local employment

S. MUNKHDELGER

HR manager of ADEN Services Mongolia LLC