Local economic development
As a responsible mining actor, AREVA Mongol and COGEGOBI contribute to local development by creating jobs, training local population with specific industrial skills and working with local people as suppliers.
Local development at the heart of the mining project
AREVA Mongol and COGEGOBI intend to define sustainable ways to manage its socio-economic impact by sharing mining benefits with local communities. That approach includes:
- Commissioning studies to better understand the socio-economic environment in which the project will integrate.
- Building on this knowledge to maximize the mining project’s actual and future positive local economic footprint: creating jobs and training local populations with industrial and other skills, and purchasing locally produced goods and services.
- Supporting the development of infrastructures benefiting local people.
Understanding the socio-economic context
In order to better characterize local development needs, AREVA Mongol commissioned a socio-economic baseline survey in 2013. On that basis, and with the active cooperation of local stakeholders, AREVA Mongol is setting up a medium term local development support plans.
Local employment and skills development
AREVA Mongol and COGEGOBI have focused on the recruitment of local residents since the first day of its operations. As of today, 90% of AREVA Mongol and COGEGOBI permanent staff is Mongolian. Employment is also a strong expectation of the people from areas where COGEGOBI operates. Seasonal jobs are provided to local people since the beginning of exploration activities.
Since the creation of COGEGOBI, the company has provided technical trainings to its drilling partners, Uran Drilling, Gobigeo and Ordgeo.
The large majority of purchases are made to Mongolian registered companies
The company also requires that its suppliers support local development. Local suppliers commit to respecting ethics and environmental protection and encourage positive practices such as employing local people.
Maximizing the local supply of products
Aimag and sum based businesses benefit from the company’s activity. In 2014, AREVA Mongol started purchasing meat and milk directly from neighboring herder families.
A local meat sourcing operation, aimed at supplying the Dulaan Uul camp with meat bought from herders living close to the mining exploration site has been effective since the beginning of October 2014. A dedicated supply chain was set-up, using an existing HACCP certified meat factory, to ensure prime sanitary quality of meat purchased.
NEWS: AREVA Mongol purchases meat for consumption from local herder families
The meat purchase from local herder families was organized by Aden Services, catering sub-contractor of AREVA Mongol in December 1st, 5 and 6th, 2016 at the Zuuvch-Ovoo camp with the support of Batbileg, SDLA officer.
Since 2010, wooden boxes in which the geological cores are stored are made by wood workshops that employ families in Ulaanbadrakh soum and Zuunbayan bag. Until today, 39 200 core boxes have been purchased.
A project aiming at allowing small dried curs (aaruul) producers to purchase equipment was launched in 2014. Two producers were able to purchase packaging equipment through the provision of a zero interest loan fand repayment was substituted with ready-made dairy for field camp employees and the sum kindergarten.
NEWS: AREVA Mongol is supporting the local micro business
In the framework of the social responsibility AREVA Mongol and Cogegobi implemented several projects and programs in 2014 aiming to support the local economy development and to help increasing the income of the local community.
Investing in community development
Since 2006, AREVA Mongol and COGEGOBI have spent more than 3 billion MNT on local development projects. Access to education, health, culture and local economic development are the main areas in which the company funds programs and projects.
Project selection follows clear and transparent rules set by the AREVA group. Each project is submitted to AREVA Mongol by interested individuals and entities and a selection grid is applied to select projects that match the company’s selection criteria. The best projects are then discussed and validated during MMSC meetings.
Voluntary support to neighboring herder families
The veterinary project, a complex project for improving animal health and collective initiatives of herders, commenced in November 2014. Within the framework of the project, a team of veterinarians, 1 from France and 2 Mongolians accommodated locally, provided on-call mobile veterinary services to the herders of Ulaanbadrakh sum and Zuunbayan bag free of charge. A total of 1600 heads of livestock belonging to 239 herders, 78% of the regional herder families, were accommodated with clinical examinations and diagnostic tests by 814 separate visits from January 2015 to December 2016.
In addition, a number of veterinary measures were taken. The IVOMEC injections (5 times), the anthelmintic treatments (3 times), the cattle washing (2 times) and the disinfections (2 times) were respectively provided for 8036 small and 545828 large cattle belonging to 1429 herder families (by repeated numbers) in Zuunbayan bag and Argalant and Bayanbogd bags in Ulaanbadrakh sum.
For the period of 2 years, 10 classroom and 5 field training sessions were respectively organized for the bag herders with relevant handbooks and materials provided.