– Oyu Tolgoi suppliers make up 30 per cent of the MNCCI 'Top 100' companies –
Ulaanbaatar, Mongolia – Oyu Tolgoi cooperates with thousands of Mongolian companies for its development needs. Since the start of the project, over 1,700 national companies have supplied goods to Oyu Tolgoi. Along with services, these goods are valued at 1.7 trillion MNT and were purchased from over 1,000 different national suppliers in 2011.
B.Serjmaa, National Procurement Manager at Oyu Tolgoi, said “We make valuable contributions to the development of national suppliers by procuring their goods and services. These companies are continuously growing as they expand their businesses, create new jobs, strengthen their financial positions, resolve social issues for their workers and boost revenues. This is evidenced by the fact that Oyu Tolgoi suppliers make up 30 per cent of the 'Top 100' companies selected from the MNCCI annually.”
Small and medium enterprises are the basis of any country’s economic development. For this reason, Oyu Tolgoi has been supporting the activities of these enterprises from the start. To date, goods and services worth 3.2 billion MNT have been supplied by over 200 companies in the South Gobi alone.
Oyu Tolgoi maintains transparent procurement policies and principles across its foreign and domestic suppliers. Moreover, the company implements a policy that specifically promotes and gives privileges to national and local suppliers. Besides procuring goods and services, a special project is already in progress to assess contract implementation capacity of a given supplier, identify any shortcomings and make the necessary corrections to help build capacity.
About Oyu Tolgoi LLC (http://en.ot.mn/)
Oyu Tolgoi LLC is Mongolia's largest copper and gold mining company and is a strategic partnership between the Government of Mongolia (34 per cent stake), Ivanhoe Mines (66 per cent) and Rio Tinto. Rio Tinto is the major shareholder in Ivanhoe Mines and the manager of the Oyu Tolgoi project. In addition to dividends from its 34 per cent stake in Oyu Tolgoi, the Government of Mongolia will receive taxes and royalties.
Oyu Tolgoi, located in the Gobi desert in southern Mongolia, will be one of the largest and highest-grade copper and gold mines in the world. It is the largest project ever developed in Mongolia, requiring a capital investment for phase 1 of more than US$6 billion.
Oyu Tolgoi is committed to contributing to a sustainable future for Mongolia. At least 9 out of 10 employees will be Mongolian once the mine is in production and Oyu Tolgoi is investing US$58 million dollars (78 billion MNT) in training and education and an additional US$27 million dollars (36 billion MNT) in the Workforce Employment Project designed to help address the general skills shortage in Mongolia
Oyu Tolgoi's key priorities are the health and safety of employees, best-practice environmental management, contributing to sustainable communities and always doing business with integrity, for the benefit of all the project's shareholders and the people of Mongolia.
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