Setting the Benchmark: PS6 Documentation Implementation at Oyu Tolgoi

Client's Vision

Oyu Tolgoi in Mongolia is one of the world's largest known copper and gold deposits. The project management aims to minimise the impacts of its commercial activities on biodiversity and contribute to biodiversity conservation, ensuring that the region ultimately benefits from the operation's presence. 

Project Purpose

Developing an evidence-driven approach to align with PS6 and EBRD PR6 standards

Oyu Tolgoi required a complete strategy to mitigate biodiversity risks that meets the requirements of the International Finance Corporation (IFC) Performance Standard 6 and the European Bank for Reconstruction and Development (EBRD) Performance Requirement 6 for the Oyu Tolgoi project necessitated a comprehensive strategy backed by scientific assessments. 

Our Role

Supporting the Oyu Tolgoi project in Mongolia to meet the requirements of International Finance Corporation (IFC) Performance Standard 6 and the European Bank for Reconstruction and Development (EBRD) Performance Requirement 6 through assessing the critical habitat, evaluating the negative impacts on key biodiversity around the site and expanding its in-house Performance Standard 6 methods. 

Key Deliverables

• Expansion of in-house Performance Standard 6 methods to gain the confidence of multiple project lenders. 

• Assessment of biodiversity risks to develop the strategies for mitigation of negative impacts. 

• Infrastructure-specific plans to guide mitigation during the project’s construction and operations phases 

The Challege

Due to its location in a biodiversity-rich area, the Oyu Tolgoi project faced significant challenges. The unavoidable residual impacts required a comprehensive approach to managing the local biodiversity and creating a net positive impact. The project's complexity demanded a high level of detail and expert consultation to secure the confidence of multiple project lenders and stakeholders. 

Our Approach

Assessing the risks on key biodiversity at the site level 

The Biodiversity Consultancy and Fauna & Flora International (FFI) developed risk baselines through a rapid biodiversity assessment on the ground. These baselines were used in a Critical Habitat assessment to identify primary project biodiversity risks, as well as in an impact assessment to measure potential adverse impacts on key biodiversity around the location of the project. 

Creating a comprehensive plan to meet global standards 

Our approach combined rigorous scientific methodology with practical implementation strategies: 

• Infrastructure-Specific Mitigation Plans: Developed tailored plans to guide the project's biodiversity management during construction and operations. 

• Offset Strategy Implementation: Partnered with FFI and assessed the scale and type of biodiversity offset activities necessary to compensate for potential residual project impacts. 

Outcome

Supporting in building confidence among lenders 

The Biodiversity Consultancy helped the Oyu Tolgoi project in Mongolia meet the requirements of the International Finance Corporation (IFC) Performance Standard 6 and the European Bank for Reconstruction and Development (EBRD) Performance Requirement 6 by generating the first publicly available complete PS6 documentation.  

This has set a benchmark for other large infrastructure projects and resulted in IFC and EBRD funding for the project.