Oyu Tolgoi suppliers meet today

Feb 20 • Business, Companies, Mining, News • 987 Views • 1 Comment on Oyu Tolgoi suppliers meet today

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Oyu Tolgoi LLC will recognise the achievements of the hundreds of Mongolian suppliers who are helping to develop Mongolia’s world class mining project. The annual Gobi Gem Awards will take place tonight at the National Opera and Ballet Theatre in Ulaanbaatar.

In order to maximise economic growth and jobs, Oyu Tolgoi sources as many products and services as possible within Mongolia. In 2012, 67 per cent of Oyu Tolgoi’s suppliers were Mongolian and the company plans to increase this further in the coming year.

Speaking ahead of the event, Oyu Tolgoi President and CEO, Cameron McRae said: “For several years, we have used the Gobi Gem Awards to celebrate the success of our suppliers. In the past year, we have worked with many more Mongolian companies, making Gobi Gem 2012 even bigger and better than before. These awards recognise the hard work of all of the companies who are working with us to deliver a brighter future for Mongolia”. “By ensuring that we maximise the money that we spend in Mongolia, we increase income for the Government and develop the skills and businesses that the economy needs. It is extraordinary to see how far we have come in the last two years. As we enter commercial production this year, we hope that Gobi Gem will inspire even more Mongolian businesses to work with us”.

Now in its fourth year, the Gobi Gem awards celebrate successes in nine categories, from small & medium Umnugobi suppliers, to large Mongolian national companies. This year, a total of 29 companies are nominated for awards, from the hundreds who have worked with Oyu Tolgoi in in 2012. The nominations range from small businesses supplying equipment, to major national construction firms

The event is the culmination of a year of success for Oyu Tolgoi, which produced its first copper concentrate at the end of January. This was the result of years of work and billions of dollars of investment. In order to create a secure and sustainable national supply chain, wherever possible, Oyu Tolgoi uses Mongolian businesses to provide the goods and services that it needs. Between 2010 and 2012, Oyu Tolgoi spent 1.4 trillion MNT (US$ 1.1 billion) buying products and services from Mongolian companies. Even when it is not possible to find a supplier in Mongolia, Oyu Tolgoi offers training and consultancy to Mongolian and Umnugobi businesses to help them successfully bid for tenders in the future. In 2012, 67 per cent of Oyu Tolgoi’s suppliers were Mongolian and the company has strong targets to increase this in the coming years.

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One Response to Oyu Tolgoi suppliers meet today

  1. Keven Barnes says:

    $ 2 Billion in cost overruns were by not competing contracts and allowing construction general managers to have their hands on bidding documents and scopes of work and endless single sole source contracts that went on for years. Rio Tinto doesn’t even know who is on the project and who is utilizing their accomodations. Their procurement strategy has been compromised and the losers are the Mongolian vendors. Construction weenies need to stay in their craft and stick to operating heavy equipment. They have no business making backroom deals and hacking out agreements that never saw a decent scope of work or full and open competition. This lack of procurement integrity IS WHAT has cost a $ 2 Billion over-run. Allowing companies that had a food service contract all of a suddens start to maintain power lines running to China is absurd and far out of scope. But it is countless examples of such absurd hacking by Equipment Operators into the world of Procurement that has seen a $ 2 Billion overrun. There needs to be an independent advisor to the Mongolian Government that scrutinizes every Scope of Work and demands a MONGOLIA ONLY policy to awarding contracts. And end the Business Class travel and only working on site for 25 days and flying home for vacation for 2 weeks. THAT is eating money. How is Rio Tinto ever going to extract the minerals without a proper highway. What was built is only good enough for one direction. Why no Power Generation on the plans 6 years ago and why wasn’t the railroad started 6 years ago. BUT they do have now the longest runway in Mongolia to fly in 737s and chew up more money. What is Rio going to do – fly the ore to China. No, they are going to fly out the gold right out of Mongolia that settles out on the conveyor and crusher system and bypass any accounting that Mongolia may have.

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