In 2012 and 2013, herders from Khanbogd Soum submitted complaints to the International Finance Corporation (IFC) regarding the impacts of the Oyu Tolgoi mine on local water and pasture resources and herder livelihoods.
The IFC’s independent accountability mechanism—the Compliance Advisor Ombudsman (CAO)—facilitated a dispute resolution process between Oyu Tolgoi LLC and the local herders. Through this process, the Tripartite Council (TPC) was established, comprising representatives of the mine, herders, and the Khanbogd Soum Administration with the mandate to address issues related to water, pasture, and herder livelihoods. After several years of dialogue, the parties concluded two Final Agreements on resolving herders’ complaints in May 2017.