-Development and achievement of Oyu Tolgoi – collective success of Mongolian
business entrepreuners-
Oyu Tolgoi, Mongolian mining company developing world-class mine in South Gobi region of Mongolia is recognized as “investor that supports Mongolian small-medium size businesses”. Mongolian Chamber of Commerce and Industry organizes “Silk Road-2012” award ceremony to recognize and award outstanding businesses in 17 nominations. Oyu Tolgoi was recognized and received this prestigious award for its contribution to development of small-medium size businesses.
Development of Oyu Tolgoi mine, engine of Mongolian economic development recently passed 70% completion of its construction phase. This accomplishment is result of hard work and effort of about 1000 Oyu Tolgoi suppliers. Oyu Tolgoi company implements “Mongolia first” initiative to support development and expansion of Mongolian and South Gobi small-medium business entrepreneurs’. For instance, there are 12 infrastructure projects under development in Mongolia which are all executed by Mongolian companies. About 200 suppliers of the South Gobi supplies products and services to Oyu Tolgoi and increase their sales turnover and strengthen their market competitiveness. The suppliers are also creating many new jobs in their communities.
Currently, Mongolian suppliers of Oyu Tolgoi supplied 1 billion dollar worth products and services. Oyu Tolgoi also implementing “Gobi Shim” program to support development of local small-medium size businesses and local economic development. Through this program, Oyu Tolgoi providing long-term loan with low interest rate for local small-medium size entrepreneurs’ in partnership with Khan and Khas banks. The micro-lending facility has 1.5 billion tugrig capital. Since inception of the program, 50 local business entrepreneurs’ received 380 million tugrig loan.
Cameron McRae – President and CEO of Oyu Tolgoi LLC said “ Oyu Tolgoi makes significant contribution to socio-economic development of Mongolia and development of responsible mining in Mongolia. Support development of small-medium size businesses is one important aspect of Oyu Tolgoi commitment. Therefore, we put Mongolian suppliers first and pursue cooperation. Development and I want to emphasize that achievement of Oyu Tolgoi is collective success of Mongolian business entrepreneurs”.
About Oyu Tolgoi LLC (www.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 tugriks) in training and education and an additional US$27 million dollars (36 billion tugriks) 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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