From the Ger district to the world

Local sewing business now a supplier to America

Ulaanbaatar, Mongolia(ot.mn) – Tsogt Orshikhui LLC was a small sewing business operating from the Ger district on the outskirts of Ulaanbaatar city. Since the firm began working with Oyu Tolgoi, supplying large volumes of clothing designed and made locally, the business has tripled in size.

Early in November, Tsogt Orshikhui LLC exported winter clothing to Rio Tinto’s Kennecott Utah Copper Corporation (KUCC) mine in the USA – one of the largest copper mines in the world.

Tsogt Orshikhui LLC received and successfully completed its first order of uniforms for the workers at KUCC. The order was for 215 fleece jumpers worth 8.5 million MNT.

Bayasgalan, the owner of Tsogt Orshikhui, said: “I am proud that through my work with Oyu Tolgoi I have been able to pay 30 million MNT in taxes to the government, and that my employees and I are seeing our lives improve. My business is sustainable, I have no loans and I am looking to expand again next year.”

For a small business from the Ger District of Mongolia to compete on the world stage supplying clothing to one of the world’s largest mines, this is a staggering achievement.

Watching that first consignment leave for the USA from the micro businesses of Mongolia was one of the proudest moments of my life,” said Tserenchimed Batbayar, who manages the micro business procurement effort for Oyu Tolgoi LLC.  

Through working with Oyu Tolgoi, Tsogt Orshikhui LLC has been able to expand from three people to nine, and has been able to acquire four more machines.

Cameron McRae, CEO of Oyu Tolgoi, said: “I know the Oyu Tolgoi LLC Procurement department is very proud of Tsogt Orshikhui LLC. The joke they are making is that they are the first true exporters from Oyu Tolgoi – way before the mine exports any ore! This first export means a lot to the micro business owners and my team.

This is a wonderful story and I wish Tsogt Orshikhui LLC, and all the micro-businesses that Oyu Tolgoi supports across Mongolia, every success. We are already making a big difference to the prospects of businesses across the country, and I think that there will be plenty of other opportunities for Mongolian suppliers across the Rio Tinto network.”

Kennecott has since placed a further order for more winter clothing, which is going to be fulfilled by South Gobi micro-suppliers.

About Oyu Tolgoi (www.ot.mn)

Oyu Tolgoi LLC is Mongolia’s largest copper and gold mining company and is a strategic partnership between the Government of Mongolia, Ivanhoe Mines and Rio Tinto. Rio Tinto is the major shareholder in Ivanhoe Mines and the manager of  Oyu Tolgoi. In addition to dividends from its stake in Oyu Tolgoi, the Government of Mongolia will receive taxes and royalties.

Oyu Tolgoi, located in the Gobi desert in southern Mongolia, will be one of the largest and highest-grade copper and gold mines in the world. It is the largest project ever developed in Mongolia, requiring a capital investment for Phase one of more than US$6 billion.

Oyu Tolgoi is committed to contributing to a sustainable future for Mongolia. At least 9 out of 10 employees will be Mongolian once the mine is in production and Oyu Tolgoi is investing US$85 million dollars (110 billion MNT) in training.

Oyu Tolgoi’s key priorities are the health and safety of employees, best-practice environmental management, contributing to sustainable communities and always doing business with integrity, for the benefit of all the project’s shareholders and the people of Mongolia.

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