– Oyu Tolgoi is implementing the largest ever education and training programme in Mongolian history –
Interviewed B.Davaasuren, manager of the Social Investment department at Oyu Tolgoi LLC.
The public expect a lot from Oyu Tolgoi. One such expectation is social investment, what is Oyu Tolgoi doing?
Oyu Tolgoi is committed to supporting and cooperating with innovative, targeted initiatives to protect the natural environment, support education and contribute to economic development. Our programmes will have a far-reaching effect and are directed at producing long-term social benefits and solving pressing social issues. Oyu Tolgoi has a commitment to make a tangible contribution to the socio-economic development of Mongolia. Although, currently, Oyu Tolgoi is not earning one single tugrug of revenue, it is already making substantial social investments. There are many projects, so it would be better to talk separately about each area – National, South Gobi region and Ulaanbaatar based social investments and then the grant and donation programmes of Oyu Tolgoi.
Then, let’s talk about the large social investments Oyu Tolgoi has made on a national level?
Today, Mongolia is at the beginning of a phase of rapid development. We need to train a qualified, professional workforce to take part in this development work. Building new schools, upgrading existing schools, supplying training equipment and training teachers is of the highest priority. Naturally, all this requires money and Oyu Tolgoi is making the largest investment in the vocaitional education sector in Mongolian history by investing US$126 million dollars or 168 billion MNT. Under this investment, we are building three mining schools, that meet international standards, in Dalanzadgad, Nalaikh and Khanbogd and upgrading four existing schools in Gobi-Sumber, Darkhan-Uul, Dalanzadgad and Erdenet. Last year, at a cost of 3.8 billion MNT, we built an extension building including a dormitory with the capacity to host 250 students and 108 students, for the Polytechnical college of Mongolian University of Science and Technology in Darkhan. A new school in Nalaikh is planned for completion this fall. The school complex includes classrooms, housing for teachers, student dormitories and sports hall; all built using the latest energy efficient technology.
You said Oyu Tolgoi is supplying vocational educational equipment. What investment has been made in this regard?
Oyu Tolgoi has supplied educational equipment for vocational schools in 21 provinces of Mongolia, at a cost of 3 billion MNT. In addition to this, we are training the teachers at these vocational schools. This programme started in November 2011 and will be completed by 2014. A total of 1,200 teachers of the vocational schools will be trained under this programme. We are also implementing a programme to train 6,600 professional workers in partnership with the government. Besides all this, Oyu Tolgoi is implementing a project to train 3,300 workers needed for large development projects and the mining sector, within a three-year period on its own, and financing it for US$30 million dollars.
Tell us about the Oyu Tolgoi social investments being made in South Gobi region?
Oyu Tolgoi have constructed a 35kv power line from the Oyu Tolgoi mine site to the town of Khanbogd. We are working to create a reliable power supply for the local soum. We spent a total of 5.9 billion MNT on this project. Last year we constructed and opened a Vocational Training Center to accommodate 150 students in the Khanbogd soum center. Oyu Tolgoi is also constructing a Mining School of Excellence in Dalanzadgad, capital of the South Gobi province, a 7 billion MNT investment. We are also constructing a Sports Hall in Dalanzadgad at a cost of 2.6 billion MNT and a Sports Complex in Bayan-Ovoo soum for 775 million MNT. These sports halls are due to open soon. These are examples of our large social investment projects. Of course there are many other social investments including construction of a school kindergarten extension, repair and maintenance. Oyu Tolgoi is also investing in implementing health programmes in this area by donating two fully equipped ambulances for the hospital of Khanbogd soum. Oyu Tolgoi is also making investments to support local business and economy. Let me tell you a success story about a local business. B.Delgertsetseg, a resident of the Dalanzadgad soum of South Gobi province, opened a small sewing shop with 2 employees in 2010 and benefitted from the micro-financial services provided by Oyu Tolgoi. The sewing shop became a supplier to Oyu Tolgoi and has expanded its activities. Today, the sewing shop is a company called 'Govi Uran Shaglaa' with 20 employees, a work place and equipment. The employees at the company have good jobs, a steady income and are full of confidence in their future. The company also pays tax to Mongolian government. This is just one example of how Oyu Tolgoi social investments are benefitting the whole country.
Is Oyu Tolgoi making social investments in Ulaanbaatar, the capital city?
With the rapid growth of Ulaanbaatar in recent years, the flow of the Tuul river, the sole supply of drinking water to the capital city, where more than half the Mongolian population live, is in decline and the water is being contaminated. Oyu Tolgoi is planting 100,000 trees in Erdene soum, Central province over the next 3 years, to improve the source of the river. We will spend total US$600,000 dollars in fencing, planting, cultivation and protection of the trees. In addition, Oyu Tolgoi is implementing a project in partnership with the School of Information Technology of National University of Mongolia, “to develop more innovative and efficient steps to reduce air pollution by measuring the particle matter of air pollution using the latest progressive technology and advanced equipment and accurately identifying sources of air pollution using scientific approaches”. This project will utilise social networking forums, twitter and Facebook to improve public awareness and knowledge and increase their participation. The programme includes training students to use the new advanced equipment.
Tell us more about Oyu Tolgoi social investments in the capital city?
Last week, E.Bat-Uul, governor of the capital city and mayor of Ulaanbaatar and G.Batsukh, Oyu Tolgoi board chairman, signed a Memorandum of Understanding and Cooperation to introduce progressive technology in the development work and improvement of Ulaanbaatar. Through this cooperation, Oyu Tolgoi will invest US$400 thousand dollars or 500 million MNT to improve a street in Ulaanbaatar. The street will be selected in consultation with the Municipal office, the project will to contribute to the development of Ulaanbaatar and creation of a safe, healthy environment for the population of the capital city. According to the memorandum of understanding, Oyu Tolgoi has pledged to implement this project, using environmentally friendly designs and the latest technological processes, with our own funding and will hand it over as an asset to the capital city. The contractor for the project is the Association of Mongolian Towns. This association is a non-profit, non-governmental organisation established in 2003 at the initiative of mayors of the national and provincial level towns. The total cost of the social investment projects of Oyu Tolgoi in Ulaanbaatar, including project to protect source of the Tuul river and other social investments, is US$1 million dollars or about 1 billion MNT.
Mining companies organise many events to provide grants and donation. How about Oyu Tolgoi?
Oyu Tolgoi have many projects, work is currently being done to support disabled citizens and children’s upbringing and care. We are implementing a project initiated by NGO 'Buyanbat' in partnership with D.Baatarjav, Olympic gold medalist of the Paralympics and president of the “Mongolian Confederation of Disabled People”, supporting the employment of disabled people. We have also set up a 'student development hall' in the dormitory of the special school no.29 where deaf children study. We have financed repair and maintenance work to replace the old roof of the Verbist Children’s Care center and have installed double glazed windows. We have also financed and organised, in partnership with the National University of Mongolia, a series of lectures, presented by Nobel laureates, who have made large contributions to the knowledge of humanity. Rio Tinto is committed to seeking out and introducing progressive technology and innovative ideas. With this goal in mind, Oyu Tolgoi financed a public conference, 'TEDx Ulaanbaatar'. We also sponsored the mountain climb of international mountaineer D.Erdenetogtokh to climb Aconcagua, the highest peak in the Americas. She became first Mongolian mountaineer woman to climb the four highest mountains on four of the five continents.
How can someone submit a brilliant project idea to Oyu Tolgoi?
This year, we are focusing to make the small social investment projects of the company more tangible and more result-oriented. If you have any small or medium size project proposals and initiatives that can achieve tangible results to diversify the economy, improve education infrastructure and protect the natural environment, you can apply to the social investment team of the Oyu Tolgoi company. You can download the Oyu Tolgoi application form for funding and find further information from our website.
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