Mongolian suppliers account for 83 percent of OT underground mine contracts

Ulaanbaatar /MONTSAME/ During the Oyu Tolgoi Underground Development Supplier Forum held on January 31, Oyu Tolgoi LLC reports that some 83 percent of all of its contracts were made with Mongolian companies, which equal to USD 760 million.

By the end of 2016, the company has worked with 990 suppliers, 623 of which are Mongolian. In other words, those Mongolian companies are managing 62 percent of all operational procurements.

The Supplier Forum, held at Shangri-La Hotel of Ulaanbaatar, attracted over 1,200 representatives of 675 national and international companies.

Since 2010, Oyu Tolgoi LLC has spent more than USD 6.0 billion for payment to contractors, royalties and salaries. The company paid USD 279 million to contractors and USD 210.6 million of taxes in 2016 only, said the acting CEO Stephen Jones.  

Last year, Oyu Tolgoi purchased USD 371.5 million of goods and services, USD 69 million of which were procured in Umnugobi province. A total of 6,244 jobs were provided directly within the sub-contracts and more than 35 thousand workplaces were promoted by the OT operations.

The underground mine is preserving 80 percent of the extractable reserves of Oyu Tolgoi.