The Tripartite Council of Khanbogd Soum was established on June 8, 2015, with an equal number of representatives from the Khanbogd Soum Administration, local herders, and Oyu Tolgoi LLC. The Council operates under a Memorandum of Understanding (MoU) signed among the parties and has jointly developed and implemented its Rules of Procedure, which govern its operations, membership, decision-making processes, and financial management. The Council’s primary focus has been to implement and monitor the Herders’ Complaint Resolution Agreement (HCRA), which originated from discussions held between the Compliance Advisor Ombudsman (CAO) and the stakeholders in 2012–2013 to resolve complaints submitted by Khanbogd herders. Through the CAO’s facilitation and mediation, the parties reached a consensus to establish mechanisms for resolving herders’ grievances through dialogue and cooperation.

The CAO is the independent accountability mechanism of the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group, providing independent oversight and mediation services on issues related to IFC- and MIGA-supported projects. On November 29, 2018, the Council concluded that the implementation of the HCRA had been satisfactorily achieved, and the CAO formally closed its mediation process. Since then, the Tripartite Council has continued its activities independently, based on mutual trust and collaboration among the three parties, without the involvement or facilitation of external mediators.