Oyu Tolgoi in-country spend passes US$10 billionEconomy
Ulaanbaatar /MONTSAME/. Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company, today announced that the company has reached US$10 billion in total in-country spend since 2010, marking the largest foreign investment made in the country.
“The total in-country spend has substantially contributed to the country’s economic development through taxes, fees, national and local procurement, salaries and other contributions provided to communities and the society during the past 10 years.” the Oyu Tolgoi’s press release reads.
“For instance, 76 percent of the total spend has been with the purchase of goods and services from hundreds and hundreds of Mongolian suppliers. Oyu Tolgoi has worked collaboratively with national and local suppliers to increase capability and capacity to ensure the highest international standards.”
Armando Torres, CEO of Oyu Tolgoi said, “We have invested heavily in building and developing the capacity of our national and local supply chain. For example, if you look at a typical employee at the Oyu Tolgoi site, their uniforms are manufactured by a sewing factory operating in Khanbogd, their gloves are made in Dalanzagdad; and, their work boots were made in Ulaanbaatar. Our copper concentrate is packed in bags made in Manlai soum and Ulaanbaatar, and loaded onto trucks operated by local transportation companies.”
The company has made a significant investment in people through not only employment but also the development of human capital. Over 93 percent of Oyu Tolgoi’s workforce are Mongolian nationals, who are professionals and young graduates from universities and colleges. Many national employees have been given the opportunity to work at Rio Tinto operations in Australia, the United States, UK, Canada, and Singapore.
“We are building the next generation of mining expertise to contribute to Mongolia’s competitiveness,” said Mr. Torres.
The Umnugobi community, in the region whereby the mine is located, has benefited through the investment in infrastructure and social development programmes. Oyu Tolgoi has funded and built -together with community partners - key infrastructure such as an airport, roads, schools and kindergartens, community facilities, power, water treatment and heating infrastructure in the province.
When the underground part of the mine is completed, Oyu Tolgoi will be the third largest copper and gold mine in the world. In terms of its safety and productivity, the company is already recognized as a globally leading competitive Mongolian business.