On Saturday, Member of the Mongolian Parliament, First Deputy Prime Minister and Minister of Economy and Development L. Gantumur, along with S. Narantsogt, Executive Director of Erdenes Mongol, visited the Erdenet Mining Corporation (Erdenet Plant) to review its operations and explore strategies for improvement. The delegation was led by plant representatives and General Director G. Yondon, who provided an in-depth overview of the plant’s activities.
A Comprehensive Review of Operations
During the visit, officials were briefed on various aspects of the plant’s operations, including production, economic and financial performance, ongoing investments, construction projects, technological advancements, and social programs. Key discussions also addressed:
• Geological Exploration: Progress updates and associated costs.
• Foreign Exchange Contributions: Deposits to the state budget and the Bank of Mongolia.
• Energy Consumption: Strategies for efficiency.
• Social Initiatives: Implementation of the “Ten Thousand Trees” national movement.
The delegation reviewed these matters in detail, offering feedback and setting tasks for improvement.
AI-Driven Procurement Gains Recognition
One of the highlights of the visit was the introduction of the TenderEval 1.0 system, an artificial intelligence-based tool designed to streamline the plant’s procurement and tender processes. This system was commended as a pivotal step towards ensuring transparency and fairness, reducing the potential for human interference—a long-standing concern in procurement processes.
To further enhance its effectiveness, the government recommended including the necessary technological equipment in the plant’s investment plan. The goal is to fully digitize procurement operations, laying the groundwork for fairer and more transparent practices across Mongolia.
Government’s Vision for Transparency
Following the meeting, First Deputy Prime Minister L. Gantumur outlined the government’s priorities, emphasizing the importance of intensifying geological exploration, improving governance, and fostering transparency.
“Erdenet Industries has made significant strides in governance, listing factories on the stock market and adopting electronic procurement systems. By next year, all tender selections will utilize smart systems, ensuring fairness and setting a precedent for national implementation,” Gantumur stated.
He noted that such measures align with the government’s broader strategy to eliminate corruption and promote efficient management. “This is foundational work for the Mongolian government to dispel any doubts or allegations surrounding governance,” he added.
Cost Savings and Productivity Gains
Another focal point of the visit was cost management. Gantumur highlighted the plant’s successful cost-saving measures, including a reduction of 109 billion tugriks last year. “By increasing productivity and efficiency, Erdenet Industry demonstrates how to face rising costs. This aligns with the joint government’s goal of fostering industrialization and economic growth,” he remarked.
Site Visits Showcase Expansion and Innovation
The delegation toured key areas of the Erdenet Plant, including the Open Pit Mine, the Repair and Mechanical Plant, and the Data Center, gaining firsthand insights into the integration of new technologies and ongoing construction efforts.
The visit concluded with a reaffirmation of the plant’s role as a model for industrial efficiency, technological innovation, and transparent governance, signaling a promising future for Mongolia’s mining sector.
Image Source: Erdenet Mining Corporation
