As one of the largest mining companies in Mongolia, our socio-economic commitment is extensive in the communities in which we operate and the country as a whole. In addition to direct economic benefits through taxes and royalties, wages, employee benefits and payments made to suppliers, we carry out number of community development initiatives to address fundamental social issues faced by our host communities. The Company continued to invest in the local infrastructure development and has kept its position as the top private sector employer in Umnugobi aimag. Beyond the direct economic contributions, the Company’s presence in the country and the region brings various indirect benefits ranging from new local business development to the injection of advanced technologies into the country’s mining industry.
Majority of our local employees are residents of neighboring soums of Umnugobi aimag including Tsogttsetsii, Dalanzadgad, Manlai, Bayan-Ovoo and Tsogt-Ovoo. We recognize the importance of local expertise and provide vocational training for local people where necessary to improve their employment prospects. In addition to our direct employees and the jobs we create through our subsidiaries and contractors, MMC cooperates with more than 700 local businesses within the scope of our projects and operations.
The taxes, royalties and commissions paid by MMC makes a significant contribution to the socio-economic development of the country and the Company has been widely acknowledged as one of the best taxpayers in the country by both national and local level authorities.
In addition to providing reliable access to clean water, electricity and transportation for the neighboring communities, MMC has established numerous key facilities in support of local infrastructure development. These include a new school, kindergarten and dormitory complex jointly financed by MMC and the local government and “Tsetsii Town”, a residential town in Tsogttsetsii soum, to cater for the demands of modern housing from its employees and community members.
Given our expanding presence in Tsogttsetsii soum of Umnugobi aimag, MMC sees the new facilities as part of its growing commitment to make substantial contribution to the social well-being of the local communities. While leveraging our employees to relocate and settle in Umnugobi aimag by providing them with comfortable living conditions, the investment is expected to bring lasting value in our host communities where existing social infrastructure is very limited.
The Company follows ethical business practice in its purchasing and supply management and gives priority to local procurement. In addition to providing potential domestic contractors with fair and equal access to business opportunities, MMC supports local businesses through its Local SME Development Program, which in turn enables them to become a reliable supplier to the Company.
Extractive Industries Transparency Initiative
MMC adheres to a policy of “zero” tolerance to all forms of unethical business practices. In support of the Extractive Industries Transparency Initiative (EITI), a global initiative to promote governance in resource-rich countries through verification and full disclosure of company payments and government revenues derived from the mining industries and in line with the EITI standard requirements, the Group has been disclosing a detailed statement of its payments to the government, to the EITI secretariat in Mongolia on an annual basis since 2008. MMC is also a member of the EITI Mongolia National Council since 2011.
Mongolia has been an EITI Compliant country since 2010 and is one of a few countries who launched EITI e-reporting system. Please refer to the link below to view annual EITI Mongolia reports on payments (taxes, fees, commissions, royalties etc) to the Government made by the companies operating in the extractive industry.