Oyu Tolgoi’s Gobi Gem-2013 supplier recognition awards ceremony took place recently. We interviewed Tumen-Ayush Jamiyansuren, Honorary industrial worker, certified engineer and General Director of Khasu-Megawatt LLC which won the Grand Prix award at the event. Khasu Megawatt’s headquarters is located on the 9th floor of Moodun Tower to the south of secondary school no.1. Although J.Tumen-Ayush’s office is not large, it is very comfortable. The office is decorated with statues of legendary horse rustler Tooroi Bandi and famous wrestlers and horses. A portrait of a noble with fierce eyes, Khardel commander Purevjav, a famous horse trainer of old times, is hanging on the wall. He greeted us by telling us about the company’s volleyball winning the spring league and the company basketball team’s upcoming final match for the championship.
-Tell us about your company – Khasu-Megawatt.
-Our company originates from the Mongolian-Russian joint venture “Megawatt” which was the first energy trading company in Mongolia. I worked as a chief engineer for the company from 1998 and then founded “Khasu-Megawatt” in 2000. I owned 30 percent and Megawatt JV owned 70 percent. Our company has run some very large projects in the energy sector, specifically those owned by western companies.
-Give us some examples of the projects you have worked on.
-We worked as a contractor for the Italian company ABB which upgraded four boilers at power station no.3 between 1994 and 1999. We upgraded fuel oil and water de-gasification facilities in Choilbalsan under a soft loan from Germany in 2000 and 2001. I was also the manager of a second soft loan project from Japan at power station no.4 between 2004 and 2006. Each year, we take part in many development projects for the government and also with our own investment. We also repair high pressure boilers and heat pipelines at the power plants. Each year, we repair and maintain between three and five boilers. With state budget financing, we are building a nine kilometre long, 800 mm diametres line for the central heating network in Darkhan city and in Ulaanbaatar we are building a four kilometre central heating pipeline and 530 metres of additional pipeline. Since last year, we have also begun building a 1,200 diametres line for the central heating network in Ulaanbaatar with funding from the Chinggis bond. This year, we are completing foundation work for an additional 100 MWt turbine-generator for the Mongolian energy system. We have also signed a contract to build four kilometres of heating line in Amgalan.
-When did you start working with Oyu Tolgoi? Which projects have you been involved with?
-We began working with Oyu Tolgoi in 2006. We built many of the facilities at Oyu Tolgoi. We are responsible for maintenance of the 72 MWT water heating power plant, the diesel generators and the mine’s heating network. We also built the loading equipment for tunneling work at shaft no.2 which weighs some 80-100 tonnes. This equipment is made in Mongolia and Eagle TV made a programme called “In the depths of a mine” about this.
-Have you learned much from experienced foreign specialists and about global technology and standards?
-By working with Oyu Tolgoi, we have learned a lot from international specialists. First of all, we learned about safety, responsibility, work quality and the training of personnel. The results of our training are already being felt. We have won Oyu Tolgoi’s best supplier awards several times. In 2009, we won the award for best construction contractor and in 2011 we won the award for health and safety performance. This year we have won Oyu Tolgoi’s Grand Prix award. Our company operates in four main areas. First, let’s talk about industrial facilities. Two years ago, we commissioned a new metal fabrication plant in Ulaanbaatar. The next area is assembly, repair and maintenance. Here at Oyu Tolgoi, as well as building it, we are responsible for the repair and maintenance of the thermal power plant. The third area is energy production. We are responsible for the maintenance of Oyu Tolgoi’s heating plant, as well as heating and power networks and diesel generators. The fourth area is training and education facilities. Two years ago, we commissioned the German-Mongolian joint vocational training school in UB. Welders, construction electricians, plumbers and lathe operators are now being trained in this centre. This vocational school became one of the top schools in Mongolia after only a year of operation. Last year it was named as top on a list of 74 schools.
-Do you have a large workforce?
-There are about 600 people working at Khasu-Megawatt LLC and around 900 people working across the larger group. The group comprises six companies which are jointly owned and interconnected in their operations. While we are a national company without foreign ownership, our production is based on European standards.
We are concentrating on introducing globally known German equipment and technology in the Mongolian energy and mining sector. Khasu Megawatt LLC was selected as the top contractor in the Energy sector in 2010 and the top contractor in the construction sector in 2012 and has been continuously included in the ranks of the top 100 companies of Mongolia, ranking between 42nd and 80th. Our company is also an official partner of the Mongolian national Olympic committee. 2013 was very good year for me. In May, I was awarded with the title of Honorary industrial worker. I’m the 32nd honorary Industrial worker from the energy sector in its 90 year history.
-I heard that you have won many other awards as well.
-Yes, I have been lucky to win awards such as the medal of FILA, the World Freestyle Wrestling Federation, which has been awarded to famous wrestlers such as Mooeo and Bayanaa. I also received the Burte Chono sports medal, the award for the best Mongolian supporter of the London Olympics, the Altan Ochir medal of the Mongolian National Olympic Committee, the Aldar medal of the National Committee of Physical Culture and Sports and the title of best worker in four different sectors including energy and sports.
-Where are you originally from? Would you tell us about yourself and your family?
-I’m from Galshar soum of Khentii aimag and I’m the eldest of nine children. My dad was a driver and my mom, J.Norsuren, worked in health care all her career. She is an honorary donor of Mongolia and was also awarded the honorary mother of Mongolia medals, first and second degree. I graduated from secondary school in Khentii aimag and then graduated from the Polytechnical College in Darkhan with honors and was invited to join the Polytechnical University. In 1991, I graduated from the university and began to work as a maintenance engineer at Power plant no.3. I worked there until 1998 when I joined Megawatt. Since 2005, I have been director of Khasu Megawatt and in the summer of 2011 I became the sole owner of the company. This is our story. My wife, D.Altantsetseg, is a lecturer at the School of Energy at the Mongolian University of Science and Technology and my son Orgil went to study electrical engineering at Brandenburg University in Germany. This year, it will be the 90th anniversary of our soum. There is much work to be done including organising meetings of local residents, concerts and celebrations. We are also focusing on expanding our relations overseas. We have established contacts with German, Russian, Canadian, European Union and Asian companies. We became an official distributor for two German and a Moscow based company. We also serve as the official Mongolian representative for a Canadian company. We have established a joint venture: Hunnu Mining with a Canadian company and we are also discussing forming a joint venture with Redpath LLC. We are preparing to establish an electrical equipment manufacturing plant together with a German firm. We also have daughter companies owned 100 per cent by Khasu Megawatt. We also own 20 per cent of Malts LLC and 33 per cent of Lenuxe LLC. During the last three years, we have invested a total of US$5 million in the company’s facilities. Our car fleet facility and garages cost US$500,000 and upgrading of old plants and building the new school required an investment of US$ 1.2 million. Now we are building a plant in cooperation with Germany and a sports complex for our employees.
-Why did you name your company Khasu Megawatt?
-The founders of the company were natives of Erdenemandal soum of Arkhangai aimag. They said that the Khanui river which passes through their area is called Khasuin river. Also, Khasu is often understood as an abbreviation for the female marriage ring. Megawatt is a unit of electricity.
-Lately, corporate responsibility is talked about a lot. Is it difficult to address the social issues of so many people?
-I always think about providing housing for our employees. In the last three years, we purchased housing for about 60 employees. Soon, another ten employees will be moving into the Orchlon residential district. We have also received a land permit to construct 60 apartments in the A zone of Ulaanbaatar. Salaries for our employees are pretty good and we strongly support their participation in sports as well. We have a “Mega Stars” club with some 300 athletes. They compete in eight areas including basketball, freestyle wrestling, soft-tennis and volleyball. For the last 8 years we have sponsored secondary school no.20 in the railway area and secondary school no.10 in the Biocombinat area. During this period, about 100 professional athletes have been trained and 60 of them received title sponsorship from me. There are medalists at the Freestyle World Championships and Youth World Champions among our athletes. There are also many champions at the Asian games. Our employees won a bronze medal in the 2011 World Soft Tennis Championship. In 2011 alone, athletes from our company received 121 medals, almost 80 per cent of which were gold or silver. Because of this, our club was named the best sports club by the Mongolian National Olympic Committee. We sent two wrestlers to the London Olympics with funding. I also serve as President of the Mongolian Soft Tennis Association and Vice President of the Mongolian Freestyle Wrestling Federation.
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