Oyu Tolgoi underground suppliers forum was held yesterday /2011.11.04/. Around 600 entities participated in the forum, over half of which are Mongolian.
Journalists at short press conference after the forum asked officials about how many Mongolian people are employed and how many Mongolian companies are selected as suppliers as the underground development starts.
The company has cooperated with 885 suppliers in total as of 3rd quarter of the year, 576 of which are Mongolian entities. Also, 52 percent of total procurement costs are products and services supplied by local companies.
As seen in the graphic, procurement spending has been constantly increasing since the beginning of the year.
CEO and President of Oyu Tolgoi LLC Andrew Woodley cited: “80% of development and service works in the underground will involve Mongolians. The company will contract with companies in below mentioned categories:
- Site services
- Underground refuge
- Ground support
- Drilling
- Process and materials infrastructure
- Pipes and pumps
- Fuel systesm
- Underground mining fleet
- Professional services
- Ventilation
- Steel
- Construction, civil work and materials
- Bulk materials
- Freight and logistics
- Fire services
- Electrical and telecommunications
There are many companies operating in these categories. Thus, in order to select them, we will value following principles, said Andrew Arnett, Manager procurement and contracts, Rio Tinto projects.
First of all, every employee and contractor company of Oyu Tolgoi LLC must have ethics. It is solely enough that you say ‘we have ethics’. It must be expressed by your actions.
Secondly, companies should avoid conflict of interests. Personal interests must not conflict with responsibilities to Oyu Tolgoi LLC.
Lastly, Oyu Tolgoi LLC does not tolerate corruption, including bribery and facilitation payments. Also, the company does not make payments to political parties or individual politicians.
Oyu Tolgoi underground suppliers forum was held yesterday /2011.11.04/. Around 600 entities participated in the forum, over half of which are Mongolian.
Journalists at short press conference after the forum asked officials about how many Mongolian people are employed and how many Mongolian companies are selected as suppliers as the underground development starts.
The company has cooperated with 885 suppliers in total as of 3rd quarter of the year, 576 of which are Mongolian entities. Also, 52 percent of total procurement costs are products and services supplied by local companies.
As seen in the graphic, procurement spending has been constantly increasing since the beginning of the year.
CEO and President of Oyu Tolgoi LLC Andrew Woodley cited: “80% of development and service works in the underground will involve Mongolians. The company will contract with companies in below mentioned categories:
- Site services
- Underground refuge
- Ground support
- Drilling
- Process and materials infrastructure
- Pipes and pumps
- Fuel systesm
- Underground mining fleet
- Professional services
- Ventilation
- Steel
- Construction, civil work and materials
- Bulk materials
- Freight and logistics
- Fire services
- Electrical and telecommunications
There are many companies operating in these categories. Thus, in order to select them, we will value following principles, said Andrew Arnett, Manager procurement and contracts, Rio Tinto projects.
First of all, every employee and contractor company of Oyu Tolgoi LLC must have ethics. It is solely enough that you say ‘we have ethics’. It must be expressed by your actions.
Secondly, companies should avoid conflict of interests. Personal interests must not conflict with responsibilities to Oyu Tolgoi LLC.
Lastly, Oyu Tolgoi LLC does not tolerate corruption, including bribery and facilitation payments. Also, the company does not make payments to political parties or individual politicians.