Oyu Tolgoi underground development forum is being held today at State Opera and Ballet Theater.
The forum aimed to provide information about the underground development, to discover potential suppliers, to establish partnership between Mongolian and foreign companies, and to organize underground procurement activity openly, with introducing principles of procurement and contracts.
Oyu Tolgoi LLC will select suppliers based on following fundamental principles:
- Safety first
- Business ethics
- Sufficient and long-term partnership
- World-standard local competency
Over 600 companies from 29 countries who are seeking to supply services and products to underground development are attending the forum.
Majority of companies comes from Mongolia (400), China, Canada, Australia and USA. Also, representatives from Embassies of Australia, Canada, Czech, Republic of Korea and UK are taking part in the forum.
Last year, Oyu Tolgoi LLC received half of its products and services from local companies. Then, the underground development is certain to improve volume of products and services received. Oyu Tolgoi LLC officials promised that selection process to choose supplier companies is going to be open and fair.
Main Speakers at the forum:
- President and CEO of Oyu Tolgoi LLC Andrew Woodley
- CEO of Erdenes Mongol LLC B.Byambasaikhan
- Managing Director of Iron ore and Copper projects, Rio Tinto, Steve Felice
- Director Oyu Tolgoi underground project Chris Aitchison
- Manager of procurement and contracts, Oyu Tolgoi LLC, Andrew Arnet
WHAT OYU TOLGOI ADMINISTRATION OUTLINED
As the first speaker of the forum, President and CEO of Oyu Tolgoi LLC Andrew Woodley said: “Oyu Tolgoi LLC is a Mongolian company. We are working on reducing expenses and increasing profits. 80% of the Oyu Tolgoi reserves remain underground. We will be major player in copper and gold markets with the introduction of underground mining.
CEO of Erdenes Mongol LLC B.Byambasaikhan spoke: “Mongolian companies all have benefited from Oyu Tolgoi mine, which is fundamental to Mongolian competitiveness at global stage. For instance, GDP of Mongolia, USD 4.5 billion in 2009, has witnessed three-fold increase within last five years thanks to the project. Every single dollar spent on the project implementation is followed by two dollars. Within last two years, the company has exported 1.5 million tons of copper concentrate.
Total of USD 4.2 billion is needed in order to finalize the underground development. 19 international financial organizations are having negotiation to raise the required amount of money for the investment. Mr B.Byambasaikhan is confident that the negotiation is going to be completed within this year.
Managing Director of Iron Ore and Copper projects of Rio Tinto, Steve Felice said: We are having a meeting today when copper price drops at world market. It shows how confident Rio Tinto is about the underground development. Copper price is expected to climb in the future, as there is still high demand in energy production, satellite manufacturing and electronic appliances. I am proud of Oyu Tolgoi employees who never fail to keep world standards under harsh climate environment in Gobi area. We have already started the underground development.”
THE PROCESS OF THE UNDERGROUND DEVELOPMENT AT OYU TOLGOI
Copper concentrate exploited from Oyu Tolgoi mine located 557 km away from Ulaanbaatar city is being used in producing a lamp in Louisiana state of USA. It is just simple example. As the underground development is underway, copper and gold exploited from the mine will be used in more products all over the world. The underground development works re-commenced in last July.
The underground mineshaft is 1.3 km deep, which is as equal as 12 Blue Sky buildings topped on each other. In order to commence underground mining operations, 5.5 km wide and 230 km long corridor must be constructed.
Block caving method of mining will be used in the underground mining, because it has advantages of low cost and high safety.
AS UNDERGROUND MINING STARTS
- Oyu Tolgoi LLC will invest USD 5-6 billion
- 80% of development works to be done by Mongolian companies
- Current 600 thousand tons of copper concentrates to be increase up to 1.8 million tons.
- Currently, 6000 Mongolian people employed and 3000 more Mongolian workers to be added
- Annual cash flow of USD 1 billion will boost GDP to grow up to 4-5% next year.
Until today, Oyu Tolgoi LLC has received USD 209 million worth of products and services from Mongolian companies. Next selection process to choose contractors will start soon.
Oyu Tolgoi underground development forum is being held today at State Opera and Ballet Theater.
The forum aimed to provide information about the underground development, to discover potential suppliers, to establish partnership between Mongolian and foreign companies, and to organize underground procurement activity openly, with introducing principles of procurement and contracts.
Oyu Tolgoi LLC will select suppliers based on following fundamental principles:
- Safety first
- Business ethics
- Sufficient and long-term partnership
- World-standard local competency
Over 600 companies from 29 countries who are seeking to supply services and products to underground development are attending the forum.
Majority of companies comes from Mongolia (400), China, Canada, Australia and USA. Also, representatives from Embassies of Australia, Canada, Czech, Republic of Korea and UK are taking part in the forum.
Last year, Oyu Tolgoi LLC received half of its products and services from local companies. Then, the underground development is certain to improve volume of products and services received. Oyu Tolgoi LLC officials promised that selection process to choose supplier companies is going to be open and fair.
Main Speakers at the forum:
- President and CEO of Oyu Tolgoi LLC Andrew Woodley
- CEO of Erdenes Mongol LLC B.Byambasaikhan
- Managing Director of Iron ore and Copper projects, Rio Tinto, Steve Felice
- Director Oyu Tolgoi underground project Chris Aitchison
- Manager of procurement and contracts, Oyu Tolgoi LLC, Andrew Arnet
WHAT OYU TOLGOI ADMINISTRATION OUTLINED
As the first speaker of the forum, President and CEO of Oyu Tolgoi LLC Andrew Woodley said: “Oyu Tolgoi LLC is a Mongolian company. We are working on reducing expenses and increasing profits. 80% of the Oyu Tolgoi reserves remain underground. We will be major player in copper and gold markets with the introduction of underground mining.
CEO of Erdenes Mongol LLC B.Byambasaikhan spoke: “Mongolian companies all have benefited from Oyu Tolgoi mine, which is fundamental to Mongolian competitiveness at global stage. For instance, GDP of Mongolia, USD 4.5 billion in 2009, has witnessed three-fold increase within last five years thanks to the project. Every single dollar spent on the project implementation is followed by two dollars. Within last two years, the company has exported 1.5 million tons of copper concentrate.
Total of USD 4.2 billion is needed in order to finalize the underground development. 19 international financial organizations are having negotiation to raise the required amount of money for the investment. Mr B.Byambasaikhan is confident that the negotiation is going to be completed within this year.
Managing Director of Iron Ore and Copper projects of Rio Tinto, Steve Felice said: We are having a meeting today when copper price drops at world market. It shows how confident Rio Tinto is about the underground development. Copper price is expected to climb in the future, as there is still high demand in energy production, satellite manufacturing and electronic appliances. I am proud of Oyu Tolgoi employees who never fail to keep world standards under harsh climate environment in Gobi area. We have already started the underground development.”
THE PROCESS OF THE UNDERGROUND DEVELOPMENT AT OYU TOLGOI
Copper concentrate exploited from Oyu Tolgoi mine located 557 km away from Ulaanbaatar city is being used in producing a lamp in Louisiana state of USA. It is just simple example. As the underground development is underway, copper and gold exploited from the mine will be used in more products all over the world. The underground development works re-commenced in last July.
The underground mineshaft is 1.3 km deep, which is as equal as 12 Blue Sky buildings topped on each other. In order to commence underground mining operations, 5.5 km wide and 230 km long corridor must be constructed.
Block caving method of mining will be used in the underground mining, because it has advantages of low cost and high safety.
AS UNDERGROUND MINING STARTS
- Oyu Tolgoi LLC will invest USD 5-6 billion
- 80% of development works to be done by Mongolian companies
- Current 600 thousand tons of copper concentrates to be increase up to 1.8 million tons.
- Currently, 6000 Mongolian people employed and 3000 more Mongolian workers to be added
- Annual cash flow of USD 1 billion will boost GDP to grow up to 4-5% next year.
Until today, Oyu Tolgoi LLC has received USD 209 million worth of products and services from Mongolian companies. Next selection process to choose contractors will start soon.