Mongolian biggest producing and processing companies such as Erdenet, Darkhan Metallurgical Plant, Oyutolgoi, and Erdenes Tavan Tolgoi introduced their procurement plan for 2017 at the Mining Mongolia expo that was held on Apr 5-7 in Ulaanbaatar city. 
All mining experts agree to purchase safety, healthy, environmentally friendly, value-added, quality and competitively priced products. Meanwhile, they consider that supplier must meet general requirements, such as the supply of products on time and adherence to business ethics. 
Oyu Tolgoi has made service contracts worth $760 million at the end of 2016 and 82 percent of the expenditure or $63 million was spent with Umnugobi supplier companies. The total amount of national procurement was relatively high compared to other mining companies.
In other words, every $8 out of $10 spent by the Oyu Tolgoi has remained in Mongolia. In 2017, the company plans to make a $83 million contract with local suppliers.
Moreover, 83 percent of the underground equipment was purchased from local suppliers. National producers supply cast balls, chalk powder, concentrate bags and staff clothing for the first time. Procurement notices and proposals of Oyu Tolgoi are published on their website. 
In addition, Oyu Tolgoi enabled their suppliers to receive a soft loan from commercial banks, which considered as an important step in supporting their business partner.

Published Date:2017-04-11