Could you introduce Barloworld?

Barloworld is the official distributor of Caterpillar equipment in Mongolia, and this year marks Caterpillar’s 100th anniversary. Caterpillar first entered Mongolia in 1993, and since 1996, the dealership has contributed to Mongolia by introducing state-of-the-art mining technology and, most importantly, by training Mongolian professionals to operate this equipment effectively. Training and development have always been central to our mission. 

What equipments in Mongolia right now are in demand?

Mongolia’s mining conditions are relatively easier compared to many parts of the world due to the soil conditions, soil density, and geological profile. For this reason, the main equipment used includes rigid frame trucks, hydraulic excavators, and support equipment such as graders and dozers. However, as stripping ratios increase and mines go deeper, the size of the equipment in use is also increasing. In the past, 50-ton trucks were the standard, but now 100-ton trucks are the main hauling equipment. Larger mining companies in Mongolia are already exploring the potential to operate at bigger volumes, which will require even larger machinery in the future.

How do you see Mongolian mining companies adopting new technologies?

Mongolian companies tend to be early adopters of technology compared to some other countries. This willingness comes from a nomadic heritage that encourages flexibility and openness to trying new things. For example, Mongolia was the first in our Caterpillar Eurasia region to adopt a cloud-based mining fleet management system. Several of our customers are already in discussions with us about adopting autonomy in their operations. Unlike some countries where traditional mining practices are deeply entrenched, Mongolian mining leaders are open to change and eager to adopt forward-looking technologies.

Have you faced supply chain challenges?

Before the COVID-19 pandemic and recent international sanctions, we had more diverse supply chain options, including routes through Russia and Europe, sourcing parts and materials particularly from Belgium. However, that transit route is no longer available, so all procurement now comes through the Tianjin port in China. This change has increased lead times for equipment and parts and has also increased the cost of some products. 

How do you evaluate the current state of mining in Mongolia?

There has been relatively little exploration in the country, and the government is now working to revitalise exploration efforts. Mongolia is strategically located close to major markets such as China, India, and others. In recent years, the government has focused on developing infrastructure to improve commodity exports, including opening new ports, building railways and constructing roads. Even with lower coal prices this year, the country has maintained high export volumes, although at lower profit margins. This infrastructure focus and renewed exploration drive suggest that the growth trend will continue.

How does Barloworld ensure safety and sustainability in its equipment and operations?

In recent years, Caterpillar has focused on producing equipment that consumes less fuel, helping to address environmental concerns while acknowledging that the industry still primarily runs on diesel fuel. On average, Caterpillar machines consume approximately 40% less fuel compared to major competitors. Safety is further enhanced through technology. For example, the Driver Safety System (DSS) monitors operator fatigue and distraction, issuing alerts or sending signals to dispatch systems. 

How does Barloworld address the workforce challenge through training?

When Caterpillar entered Mongolia, the country’s mining industry was based on old Russian technology. Introducing modern Caterpillar machines presented a major learning curve. We therefore developed comprehensive training programs. These include technical training for mechanics and technicians to repair and maintain the equipment, and operator training to ensure the machinery is used to its full potential. Our programs have been highly successful, and Caterpillar-certified mechanics and operators are regarded as the best in the country. 

What are Barloworld’s future plans and strategies in Mongolia?

Mongolia’s equipment market has grown rapidly in the last two to three years, with a significant influx of Chinese-manufactured machinery, especially wide-body trucks. To maintain our leadership, we need to compete more effectively in this segment while continuing to promote Caterpillar’s premium equipment for large-scale mining. We will embed more technology into our offerings to help address Mongolia’s workforce shortage, making machines easier to operate through guidance and sensor systems, and potentially expanding autonomous hauling systems.