Oyu Tolgoi Procurement
Oyu Tolgoi’s Procurement department strives to deliver more value to our operations by ensuring a secure supply of products and services while focusing on total cost of ownership and development of the in-country supply chain with strong focus value add in country, particularly in Umnugovi.
We are committed to building a safe and a competitive in-country supply chain for our business that genuinely contributes to the prosperity of Mongolia though revamping our stakeholder engagement, ensuring we have a simple procurement process with high integrity, and doing our part in supporting sustaining business development.
Oyu Tolgoi’s procurement activities are governed by transparent policies and procedures to ensure alignment with world-class procurement practices and protocols. You may find more about our policies and procedures from our website.
At Oyu Tolgoi, there are two procurement departments, Surface Procurement and Underground Procurement and Contracts, with objectives providing support to operational and underground development needs respectively.
Surface Procurement departments
The department is responsible for the supply chain management function for Oyu Tolgoi’s operational needs. The department is organized into the following teams:
- Strategic sourcing team – responsible for development of sourcing category strategies and Made In Mongolia strategic initiatives as well as improving stakeholder engagement
- Sourcing team – responsible for procurement of goods and services above US$100,000
- Purchasing team – responsible for purchasing goods and services below US$100,000
- Contract management team – responsible for contractor management and ensuring compliance with contracts
- Inventory control team – responsible for reviewing and managing inventory levels to support ongoing operations
- Process Improvement Team – responsible for reporting and monitoring compliance and improvement across all procurement functions
Underground Procurement and Contracts department
The department is responsible for the contracting and procurement effort to support the Oyu Tolgoi Underground Project, which includes the development of the Hugo North, Dummett deposit, Block Cave Underground Mine and associated materials handling and crushing equipment and supporting infrastructure. The Project is split into two main areas, being underground mine development and construction. Procurement and contracting activities for the mine development are managed directly by OT LLC. Jacobs Engineering has been appointed as the EPCM, acting as the Company Representative, for the construction component of the Project.
Policy for Support to Wealth Creators Conference was organized yesterday by the National Development Agency, Ministry of Foreign Affairs, JICA Mongolia and the Industrial Development Innovation Agency of the capital city. During the conference, Oyu Tolgoi LLC signed a contract with three Mongolian manufacturers to supply following “Made In Mongolia” Plastic products.
Kherlen Baidrag LLC
- Safety Glass - Estimated usage per annum – 60’000
- Safety Hard Hat - Estimated usage per annum – 20’000
Mongol New Plastic LLC
- Core Box (Geology) - Estimated usage per annum – 15’000
- Safety Cone - Estimated usage per annum – 2’500
MOG Plastic LLC
- Safety Tape - Estimated usage per annum – 4’000 roll
Oyu Tolgoi is implementing the Made in Mongolia strategy to substitute import products with national manufacturers and we are focusing on developing a competitive and sustainable national supply chain.
Oyu Tolgoi Procurement department is going to organize our next Monthly Open Info Session on November 14, 2017 at Aimag Government Building of Dalanzadgad soum in Umnugovi. If you wish to attend the Info session please subscribe to the following address: