Oyu Tolgoi LLC has recognised the achievements of its suppliers at the eight Gobi Gem – Supplier Recognition Awards. All of Oyu Tolgoi’s suppliers were celebrated, with eight companies winning awards. Winners included small, Umnugobi businesses and some of Mongolia’s most famous companies.
In-country procurement spend ratio in total operation procurement has constantly been rising, reaching 71% in 2021. Oyu Tolgoi partnered with 864 suppliers, of which 540 are national businesses. Between 2010 and 2021, Oyu Tolgoi operations spent US$4.1 billion on national procurement. Operational spend on Umnugovi suppliers has also steadily increased from US$0.5 million in 2010 to a record-breaking US$216 million in 2021. Total local procurement between 2010 and 2021 has reached US$888 million. Our strategy to endorse local involvement in Oyu Tolgoi’s Underground mine’s process of transitioning development to operation has played a large part in local procurement spend.
Oyu Tolgoi continues to significantly impact the national economy through its “Made in Mongolia” programme. Since 2017, over 70 projects have been successfully realised within this framework. To date, “Made in Mongolia” has saved a total of US$6.2 million and created 326 permanent jobs, improving the supply chain.
Although in 2021, Oyu Tolgoi primarily emphasised mitigating and countering adverse effects created by supply chain disruptions with significant success, we were able to work on five new products and 3 product improvements, saving not only US$200 thousand but also increasing added value from 15 to 60%.
Ambassador Batsukh Galsan, Chairman of the Board of Directors, said: “National businesses presenting their products at the centennial anniversary of the mining industry are firmly standing on the springboard to great industrial output and supply Oyu Tolgoi’s needs in the hundred years to come. I would like to note that these manufacturers and those to come will be welcomed by a future of exports. This is and will be the contribution of Oyu Tolgoi and its development and prosperity partners towards the successful implementation of the New Recover Policy, Vision-2050: the long-term development strategy as well as Oyu Tolgoi’s 10-year and long-term development plans.”
A total of 24 companies were nominated for awards from the hundreds who worked with Oyu Tolgoi in 2021:
- Grand Prix: MIAT Mongolian Airlines
- Best Supplier – HSE performance: MCS Property LLC; Khanbogd Waste Management LLC
- Best Supplier – South Gobi: Khanbogd Khurd LLC
- Best Supplier – National: Khaanzaa Service LLC
- Best Supplier – In Country Value Add: Khanbogd Industry LLC
- Best Supplier – CEO Awards: Terra Express LLC
- Best Supplier – Innovation: Sandvik Mongolia LLC
The awards ceremony, in addition to recognising the eight winners, assured our mission, together deliver a safe and globally competitive copper business that contributes to the prosperity of Mongolia.
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