– It is wonderful that so many engineers and technical specialists are
returning to Mongolia to work with Oyu Tolgoi –
By Ch.Purevee
Interview with N.Algaa, the executive director of the Mongolian National Mining Association.
What is the history of mining development in Mongolia?
Mining in Mongolia started in 1924. In the 1970s there were some technological advancements and the most recent development began in 2000. Oyu Tolgoi, although facing many challenges, has been a leader of mining development in this latest surge. The project had to establish construction in an area where there was no infrastructure whatsoever. Today we are exposed to international practices and standards and have the opportunity to learn from international corporations to ensure social responsibility and transparency in our industry. The Oyu Tolgoi project is introducing these practices and standards to Mongolia. Mining investment brings to Mongolia modern technologies of high productivity and capacity.
Mining development, and specifically Oyu Tolgoi has brought a culture of – international occupational safety and health standards to Mongolia. Until recently Mongolian mining has lacked a skilled work force. Individual companies could not train their Mongolian workforce to international standards, but now a large company like Oyu Tolgoi is focused on nationwide workforce preparation. Oyu Tolgoi ensures its social responsibility and contributes to the development of its people.
After becoming a democratic country in 1990, Mongolia has been in transition to a free market economy. Although the country has come through an economic revolution, there is still no real market system, the base is not there, that makes it challenging for private entities to develop. Lack of education and skills have limited development of the economy.
Where does Mongolia stand with technological advancement? How fast is it progressing in your opinion?
Oyu Tolgoi is making an unprecedented investment in creating a national skilled force. This policy is going to be of great benefit to the domestic economy. Also, it is worth celebrating that many Mongolians who have been working overseas as engineers or other technical professionals are returning. Oyu Tolgoi has started training national engineers and technical specialists, this I believe is how the company implements its policy of work force preparation.
What are the possibilities to train a workforce using modern fleet and technology?
Mongolia is capable of training its workforce but the country’s vocational education system is inadequate. We have a real need to train a skilled workforce, we should introduce a model international curriculum. Oyu Tolgoi is doing this now but Mongolia really should have already begun training a skilled workforce, foreseeing the need ahead of time.
Mining usually requires a long term operation using high quality fleets and technology. Some people don’t seem to understand that. What is your opinion on this?
Mining specialisation is not easy. There are risks at each level starting from the exploration period right through to the final stages of selling the product. Only investors, employees, policy makers and the policy supporters understand this. This subject is of great interest to all Mongolian people, today.
The education system of the previous state of society created this mentality and now everyone tends to talk about mining. Normally, those who benefit speak their voice about mining through their delegation bodies, but they are not all in a position to understand the benefits. Mining operations require very advanced technology and non-professionals usually do not understand the intricacies of the how it all works, so their talking about mining is not appropriate. People should only talk about what they know or what they can do best. Mining is contributing a large income to Mongolia, that is why there is so much interest. Today everyone talks as if they are engineers. Hopefully after 5-10 years this mentality will be changed.
Do you think this phenomenon is happening in other countries or is it happening exclusively in our country?
We had similar stories in the 1970s, we called it 'National view point of mineral resources'. This we can call a phenomenon. In a developing small country like ours, which is still going through transition where the economy is becoming dependent on the mining industry, such a phenomenon moves quickly and involves a wider audience.
The Mongolian public has great expectations for the mining industry, which will be among the top three in the world. It is a huge project development. There was previously no infrastructure – no water and no power. All this is being developed in a short time challenges the potential and capacity of the company and local resources.
We think of this huge project as an easy task. To develop a medium scale mining production facility it takes 21 years to complete the startup construction and a further 5 years of production before beginning to make a profit. This is how mining develops in other countries.
Advanced technology and knowledge is required for a project of this scale so it is difficult to explain to people from non-professional or different backgrounds, even though we live in the information era. Mind you, understanding and knowledge are two different things. Speaking without proper knowledge but with some understanding is not good.
What do you think about the future of Mongolia and Oyu Tolgoi’s goal to become a world class mining development?
I have known about Oyu Tolgoi from its first day. In all aspects, this project has been a role model for mining development in Mongolia and is going to lead the sector for the next 100 years.
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