– Over 200 local suppliers are working with Oyu Tolgoi and supplied over 3 billion MNT of goods and services to the mine –
Ulaanbaatar, Mongolia – Over 1,000 national suppliers and companies supply goods and services to Mongolian mining company, Oyu Tolgoi. From them, over 200 are local businesses in the Umnugobi region. In 2010, Oyu Tolgoi LLC set up a team with the objective to support small and medium size businesses in the Umnugobi region. The team, with 13 staff, is working in Dalanzadgad and Khanbogd soums.
Oyu Tolgoi has launched many initiatives and programmes to support local suppliers of the Umnugobi region. One such initiative is the micro-credit programme. With the assistance of Xac and Khan banks, the mine created a credit fund of 1.5 billion MNT and began to provide soft micro-loans for business entrepreneurs, suppliers and local start-up businesses of Khanbogd, Dalanzadgad, Manlai and Bayan-Ovoo soums of Umnugobi region. This programme enables local businesses to expand and begin to supply goods and services to Oyu Tolgoi. Over 200 business in the Umnugobi region have provided 3 billion MNT of goods and services to the Oyu Tolgoi project. O.Shinebayar, one of such suppliers of Umnugobi says, “I started my business in 2006. At that time, I had 2 computers and 1 photocopier and 1 employee. By 2008 I had expanded my business to employ five more people. Today my business is very successful. I’m always thankful to Oyu Tolgoi company for enabling us to expand and prosper”.
As well as the micro-credit programme, Oyu Tolgoi LLC created Dalanzadgad Business Development Centre. The objective of the centre is to provide access to business information and develop business skills for local suppliers. The centre assists them to develop the skill and systems to meet the procurement standards of Oyu Tolgoi. The center actively supports the development of local businesses and business entrepreneurs. Some of the businesses include sewing services, textile and cloth supply and wooden furniture production. The center implements many activities and initiatives directed to market expansion. The 'Lunar New Year-Trade Fair' was recently organised by the center. Attended by 67 local businesses, the fair resulted in the sale of local products worth over 40 million MNT.
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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