Friday, October 22, 2010

Oyu Tolgoi holds Supplier Recognition Awards 2010 ceremony Best Mongolian suppliers awarded

Ulaanbaatar, Mongolia – Oyu Tolgoi LLC, Mongolian mining company, held its annual Supplier recognition awards for the second time today to promote Best supplier companies, contractors and individuals who are working together with the Company to build the world-scale Oyu Tolgoi copper-gold complex.

Since 2000, the number of Mongolian supplier companies and contractors has been increasing constantly and as of today there are 2420 companies and individuals registered in Oyu Tolgoi’s preferred supplier list. We expect this will grow during the construction phase and Oyu Tolgoi stays open to all interested parties who wish to cooperate with us in supplying international standard goods and services.

Keith Marshall, President and CEO of Oyu Tolgoi LLC, marked in his opening speech “From January 01, 2010 through September 30, 2010, Oyu Tolgoi signed 345 contracts with Mongolian companies valuing 272 billion tugriks. In addition, Mongolian companies filled 1182 purchase orders totaling 84.1 billion tugriks and accounting for 80% of the total purchase orders for the period.”

Many of the contracts include major site development and construction work, including:

* Steel structure and concrete work at the future copper-gold concentrator
* Construction of employee and contractor camps
* Installation of two new concrete-producing batch plants, including Mongolia’s largest with a daily capacity of 200 cubic meters
* Foundational work related to the construction of the Shaft #2 Headframe
* Installation of diesel power generation station
* Earthworks at the future open pit mine
* Light vehicle leasing and maintenance
* Operation and maintenance of site utilities
* Construction of 4,500-bed camp and facilities
* Employee secondment and personnel service
* Operation and maintenance of fuel distribution and storage facilities
* Charter flight services
* Site security services
* Engineering services
* Local transportation
* Information Technology and communications services


14 companies were awarded out of more than 130 permanent contractors and suppliers based on their safety, sustainability, employee training, quality and on-time delivery performances.

* Best developing supplier (Khanbogd) – Ulziit Munkh Ovoo LLC (Sewing of uniforms)
* Best developing supplier (Umnugobi) – Dayanbaigal LLC (Construction)
* Best small enterprise supplier – Nomgon gol LLC (Industrial products, electrical cables and consumables)
* Best medium enterprise supplier – Batseer LLC (Automotive and maintenance parts)
* Best regional supplier – Erdenet carpet factory (Carpet making)
* Best large enterprise supplier (Ulaanbaatar) – MCS Electronics LLC (Computer IT equipments)
* Best off site services supplier – Geomandal LLC (Camp and Ger producer)
* Strongest improvement in safety culture – Barilga corporation (Construction company and over 200,000 hours LTI free)
* Strongest commitment to employee training – Mongolian-Korean Technical College (Working with Wagner Asia Mongolia LLC on training)
* Best social contribution – Dary Solntsa and Tsogt Orshikhui LLC (Sewing of uniforms in ger districts)
* Most innovative supplier – RUC Mongolia LLC (Raise bore)
* Best delivery in full on time – Izmone LLC (Architect & Construction)
* Best consultancy – Agriteam LLC (Agricultural consultancy)
* Grand prix Best supplier 2010 – Ulziit Munkh Ovoo LLC (Sewing of uniforms)



ABOUT OYU TOLGOI LLC (www.ot.mn)

Oyu Tolgoi LLC is constructing and will operate the Oyu Tolgoi copper-gold project in southern Mongolia, which will be Mongolia’s largest copper and gold mine. Oyu Tolgoi is scheduled to begin commercial production in 2013. Oyu Tolgoi is a strategic partnership between the Government of Mongolia, which owns 34%, Ivanhoe Mines, which owns 66%, and Rio Tinto.

Oyu Tolgoi is committed to implementing best-practice environmental management, applying modern extraction and processing technology and ensuring the health and safety of its employees. The company works closely with local populations in contributing to the development of sustainable communities and preserving customs and cultural heritage.

Oyu Tolgoi currently employs 3503 Mongolian employees and has 2420 Mongolian suppliers on its preferred supplier list.

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