– Strategically important international suppliers to Oyu Tolgoi are encouraged to invest in the development of Mongolia –
Ulaanbaatar, Mongolia – Mongolian mining company, Oyu Tolgoi, implemented an innovative procurement policy to work with strategically important international suppliers in December 2011. According to the procurement policy, international suppliers of Oyu Tolgoi are encouraged to cooperate with Mongolian businesses and contribute to local development to increase the benefits to Mongolia. Currently, 10 large international suppliers are implementing the contractual commitments outlined by the new procurement policy.
The supplier contracts outline several responsibilities for international suppliers to Oyu Tolgoi. These include training, scholarship programmes, recruitment, hiring of sub-contractors, investments, transfer of technology and support partnerships. For example, hiring of sub-contractors is aimed at creating jobs and increasing income for Mongolians. International suppliers can also make investments in other areas at an initiative.
According to the procurement policy, if international suppliers to Oyu Tolgoi exceed their contractual commitments, Oyu Tolgoi will provide incentives, such as, the extension of contracts and inclusion in a preferred class of suppliers. Oyu Tolgoi Vice President and head of procurement, Ivan Vella, said, “We are working with our international suppliers to fully mobilise resources according to contract and monitor the implementation of supplier contracts. We will uphold the policy to continue our cooperation with suppliers that fulfill their contractual obligations”.
Many large international suppliers to Oyu Tolgoi invest in the local and national development of Mongolia. One these suppliers is Amec, a world leading engineering, project management, consultancy company; providing services in 44 countries. One large component of Amec’s social investment in Mongolia is a student scholarship programme. Designed to train the best specialists for Mongolia, this programme contributes to local development. Students selected for the scholarship programme receive monthly scholarships and annual evaluation of studies and practical training. The scholarship students will participate in professional skills development training and will have the opportunity to work as full-time employees of Amec, working side-by-side with experienced international engineers. Amec has successfully implemented local development programmes in Azerbaijan and Chile.
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.
For more information, connect with us on Facebook and Twitter.
Leave a Reply
You must be logged in to post a comment.