Interview: Baigalmaa Shurka, “Investing in the future”

Many businesses try to contribute to society and long-term development. Baigalmaa Shurka, General Manager, Social Performance at Oyu Tolgoi explains one approach, which the company calls “Social Investment.”

Please tell us about Oyu Tolgoi’s approach to social investment.

As part of our commitments to contributing positively to the country's social and economic development and safeguarding the environment, Oyu Tolgoi supports innovative and effective projects and initiatives. These provide long-term sustainable benefits to local communities and social groups, especially in the areas of human development, education and environmental protection.

Oyu Tolgoi’s approach includes providing scholarships and donations, as well as sponsoring projects aimed at strengthening the country's socio-economic development. These include both contractual and voluntary commitments. Our long-term projects are mostly focused on the Gobi – the area where we operate – and within the education sector nationwide.

Each year, we publish a report into our Social Investment programmes. As the mine construction was nearing completion in 2012, we invested around MNT 38 billion, and in 2013 we invested about MNT 50 billion. This was spent on activities relating to economic development, education, environment, health and the protection of cultural heritage. The majority was aimed at economic development and support for the national education sector. Economic development projects are usually focused in the South Gobi and include providing basic social infrastructure, improving herders’ livelihoods, capacity building for our suppliers, micro-finance schemes and local business development. The education projects are focused on developing vocational education as well as on scholarship programmes.

Presumably you pay attention to the results of the projects that you invest in? Are you satisfied with their success?

When we support projects, we need to see that they are successful and meet key objectives.

Education has been a particular success. In 2013, we invested MNT 29 billion to support vocational education. This included an investment of MNT 11 billion in the construction of the Mongolian-German Mining School of Excellence in Nalaikh district, Ulaanbaatar. Furthermore, with investment of MNT 3.8 billion, part of the Govisumber Polytechnical College was renovated and a dormitory building was commissioned. In 2013, MNT 117 million was spent on the education sector in the South Gobi, mainly on our local scholarship programme. The programme has helped a total of 242 South Gobi students since 2005.

I would like to highlight that over MNT 20 billion of our investment was spent on social and economic development projects in the South Gobi. Infrastructure development projects formed a large part of these contributions. Khanbogd was connected to permanent power in November 2013. Residents and organisations now have improved economic and social potential. Two 40km, 35 kV power transmission lines from Oyu Tolgoi and a substation were built, tested and configured at a total cost of MNT 7.6 billion. We are very pleased that all of the construction was successfully completed by Mongolian companies.

Oyu Tolgoi has been doing some very interesting work on protecting cultural heritage. In 2013, we preserved paleontological findings such as dinosaur tracks in Shar Tsav, Manlai soum and organised the protection and monitoring of 13 Gobi landmarks and sacred sites. We are also very pleased that we supported a project implemented by the 'Glorious Wheel of Time' NGO to transcribe Ganjuur and Danjuur into modern Mongolian. This project means that the first 64 books of the Ganjuur and Danjuur sutras are hosted in the Umnugovi aimag Central Library, Maaniin temple, Badamdemchognai temple in Khanbogd and Khanbogd soum library.

Protecting the environment has to be a priority for a mining company. The objective of Oyu Tolgoi’s comprehensive environmental programme is to minimise any impacts from mining operations in the region. Twenty three herders in Khanbogd soum work with us to monitor the water levels at 30 wells and boreholes. The herders’ measurements are then compared with our own analysis and the findings shared with the general public. In 2013, we also introduced other participatory monitoring schemes. These include measuring dust at 15 points with 14 herders taking part. In total, we spent MNT 162 million on these programmes. The Tuul river is the primary source of drinking water for Ulaanbaatar. In order to increase the flow of the river, Oyu Tolgoi is supporting a project to re-forest the land at the source. In 2013, this included planting 35,000 trees in Erdene soum of Tuv aimag at a total cost of MNT 304 million.

So we have seen many projects with successful outcomes. We have published full details about them and all our activities in our 2013 Sustainable Development Report.

Please tell us about the Sustainable Development Report.

This is the first time that we have reported our activities in quite this way. The report is quite unique and sets out Oyu Tolgoi’s contribution as a socially responsible corporate citizen.

Publishing reports like this is a voluntary commitment for a business. It helps us to be transparent about our activities and provide information to all interested parties and stakeholders on our work. This report is an important step towards further cooperation and understanding with our stakeholders. Mutual understanding is crucial to our goal of building a strong, sustainable, profitable, and internationally competitive business. This report can be found on our website.

How can organisations or individuals find out more about support from Oyu Tolgoi? In what areas do you provide funding?

Oyu Tolgoi receives many requests for grants, donations and financial support. Special attention is given to projects in the South Gobi. Unfortunately, due to financial constraints, it is not possible to provide support for every request. In making decisions, we follow our Social Investment policy and the company code of conduct. We regularly report the results of our Social Investment projects to the public and to our stakeholders. Detailed information can be found at: http://ot.mn/mn/partnership-and-sponsorship.