Multiple building projects underway at Oyu Tolgoi. All of them managed by Mongolians

Oyu Tolgoi LLC. Ulaanbaatar – Work is now underway on major construction projects commissioned by Oyu Tolgoi in the South Gobi, Choyr and Darkhan. All the work is being conducted by Mongolian design and construction companies. Trainees from the Oyu Tolgoi funded Workplace Employment Scheme will be used for on-the-job training placements and for potential permanent jobs throughout the construction phases of these projects.

This is part of Oyu Tolgoi’s continuing commitment to fostering long-term, sustainable business relationships within Mongolia.

Support of local procurement in Mongolia, and specifically within the South Gobi region, is a key commitment under the Investment Agreement with the Government of Mongolia.

The construction projects include:

• The permanent regional airport

  Budget: USD $30 million
  Mongolian contractors will construct Oyu Tolgoi’s world-class airport. The work includes the passenger terminal building, the control tower and support buildings, the concrete runway, navigation aids and perimeter fencing. Tenders for this project are closed.

• Gashuun Sukhait border upgrade

  Budget: USD $1.8 million
  Mongolian contractors have completed additional temporary accommodation buildings, toilets, a laundry and office and site services upgrade and repairs. Further works are scheduled for the remainder of 2011.

• Gashuun Sukhait permanent testing laboratory

  Budget: USD $1.6 million
  Mongolian contractors will construct the border permanent testing laboratory for Customs and SSIA, following approval of the Government’s border master plan. The project will include all testing and laboratory equipment.

• Bayan Ovoo Sports and Community Hall

  Budget: USD $550,000
  Mongolian contractors will construct the new sports hall and community centre at Bayan Ovoo. Work will commence on site in May 2011.

• Dalanzadgad Vocational Training School Upgrade

  Budget: USD $1.25 million
  Mongolian contractors will construct an addition to the existing Vocational training school in Dalanzadgad and supply training equipment. Tenders for this building project have closed.

• Dalanzadgad Vocational training school dormitory

  Mongolian contractors will construct an additional building that will supply dormitory space for more than 100 students. An expression of interest for the design of the dormitory will commence shortly.

• Oyu Tolgoi Khanbogd office

  Budget: USD $900,000
  Mongolian contractors will build an office complex for approximately 20 Oyu Tolgoi employees on the outskirts of Khanbogd. Tenders for this building project have closed. 12 adjacent accommodation apartments are also proposed for later in 2011.

• Khanbogd Vocational training school

  Budget: USD $1.35 million
  Mongolian contractors will build a new Vocational training school and supply training equipment, on the outskirts of Khanbogd. Tenders for this building project have closed.

• Dalanzadgad Supplier Enrolment Development Centre

  Budget: USD $680,000
  Mongolian contractors have successfully completed renovations and additions in Dalanzadgad on what is now the home of the Dalanzadgad Business Development Centre. The opening ceremony was held on 4th May 2011.

• Choyr Vocational training school upgrade

  Budget: USD $1.9 million
  Mongolian contractors will build an additional 10 classrooms, a multi-purpose hall and dormitory space for 60 students including the supply of furniture and equipment. The new two storey building will connect to the existing classroom block. The architectural design for this project has started.

• Darkhan Vocational training school upgrade

  Budget: USD $1.5 million
  Mongolian contractors will construct an additional building and supply training equipment at the existing school. Tenders for this building project have closed.

• Darkhan Vocational training school dormitory

  Mongolian contractors will construct an additional building that will supply dormitory space for more than 100 students.  An expression of interest for the design of the dormitory will commence shortly. 

CEO of Oyu Tolgoi, Cameron McRae said “Supporting Mongolian businesses is one of Oyu Tolgoi’s central values and we are very proud that so many of our current building projects are entirely in Mongolian hands.”

In addition, construction work has started on the paved road to Gashuun Sukhait.  This has a budget of USD $100 million and 80 per cent of the contract has been awarded to Mongolian companies.

Building work has also begun on the 220kv, USD $30 million power line to the Chinese border. This contract has been 60 per cent awarded to Mongolian companies.

Our Procurement Policy

We actively seek suppliers that are capable of meeting our stated needs and required standards, and who submit the best offers across all relevant variables including HSE, quality, service, competitive pricing, technical abilities, delivery, compliance with contractual terms and consistency with the letter and spirit of the Oyu Tolgoi Investment Agreement.

We work closely with prospective suppliers in the local community with the objective of creating a capable, competitive, quality assured, sustainable supplier base in Mongolia that is compliant with the HSE and technical standards of a world-class operation.