– Procurement policy of Oyu Tolgoi will make significant contribution to development of business sector of Mongolia –
Oyu Tolgoi, developer of the largest copper-gold mine in the South Gobi region of Mongolia, has implemented a new procurement policy that increases transparency and aims to develop its network of Mongolian company suppliers.
The new policy implements a clear system of standardisation to ensure that all suppliers to Oyu Tolgoi – both foreign and Mongolian – meet the company’s standards and also promote the development of Mongolia.
“The new procurement policy increases transparency in areas such as health, labor safety, and environmental standards,” said Ivan Vella, Oyu Tolgoi’s Vice President of Procurement. “Oyu Tolgoi is a strong supporter of Mongolian suppliers and this new policy is aims to further develop our Mongolian suppliers.”
Oyu Tolgoi will build capacity of its suppliers by ensuring contractual obligations are fulfilled. It will offer conditions that allow for change in prices and incentives. In this way, Oyu Tolgoi believes that this greater transparency will contribute to the development of a range of national and local businesses.
Anyone interested in working with Oyu Tolgoi can review the new policy under the procurement section at www.ot.mn.
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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