"Our work has shown how a contracting company can be a part of the industry’s sustainability journey, and how FDI can make a difference in a country like Mongolia, where mining is still young."

Luis Grijalva and Mandakhbat Sereenov

TERRITORY MANAGER (LG) & EXECUTIVE DIRECTOR (MS), ORICA

March 01, 2024

Could you give us an overview of Orica’s evolution and the role it plays in Mongolia?

LG: With over 20 years of experience in the country, Orica is now a key partner for the Oyu Tolgoi (OT) underground and open-pit operations. Orica has also been at the forefront of implementing groundbreaking technology, including the introduction of electronic detonators for underground and open pit operations, and other advanced digital solutions. We have a team of 160 employees, an ammonium nitrate emulsion plant, and two strategic warehouses that can store the required raw materials and accessories, supporting our customers throughout the entire year. 

MS: Orica is the only global explosives company with a true long term local footprint in Mongolia. We have ridden the ups and downs of the commodity cycles, our commitment never faltering, not even during the pandemic. With the assistance of our global network and the great team we have in place, we have been serving the OT uninterruptedly, Since the very beginning, Orica has defined the bulk emulsion standard for Mongolia, as approved by local regulators.

Orica was recognized as one of the best tech suppliers. Could you give us an overview of the main technologies introduced and how is Orica contributing to local know-how transfer? 

MS: The OT project is singular in terms of size and sophistication, not only in Mongolia, but also globally, so this project pushed the entire supply chain to evolve in unprecedented ways. The OT is one of only 11 operations in the world to use blockcaving, and Orica serves eight of these. Moreover, Orica is providing shaft sinking, a specialty blasting technique, to sink down to 1,300 m; also, the I-kon (electronic) detonators are intrinsically safer and more accurate, allowing mining operators to improve performance metrics on the shovel, and, most importantly, increase safety. 

LG: Technology transfer is crucial for us. 97% of our employees are Mongolian, who are mentored and supported by our onsite highly skilled specialists and professionals from overseas. We also work closely with universities to exchange knowledge and information on the latest technologies and operational standards. We have conducted several blasting seminars, and in 2021 Orica was recognized by the government of Mongolia as the best technology introducer in the country, which relates to both the introduction of technology, but also the transfer of knowledge. Orica works in partnership with one of the largest local explosives companies, MERA, which is producing our boosters, after successfully realizing the technology transfer, which aligned with the Oyu Tolgoi’s “made in Mongolia” strategy. 

How is Orica’s offer of digital technology growing?

MS: The mining industry is very much behind on what it could achieve because it continues to rely heavily on old technologies. A lot of copper, gold, coal, and other resources are wasted when they could be optimized through smart tech. 

At Orica, we are using the best-in-class technology, not later, not earlier, but the moment it becomes available, and put it to application for the best handling of resources.                                    

LG: Our digital solutions are now an integral part of Oyu Tolgi operations, technologies such as fragmentation analysis cameras mounted on shovels to optimize the blast for improved efficiency, productivity, and costs. We are also bringing technology that can reduce the carbon footprint by recycling waste oil to manufacture explosives. Another example would be our cyanide analyzers, which calculate with precision the amount of cyanide required in a blast, for a more economical and cleaner operation in gold mines.

What is Orica’s social commitment?

LG: Orica is proud to be very active with our hosting communities, supporting the development of knowledge on science, sports, and the English language, something that I am personally very passionate about. We take our OT Ambassadors role very serious, and we have donated materials extensively to local secondary schools, witnessing increased engagement from students in different science subjects. Orica has the first female underground operator doing up holes in Mongolia’s mining history, which shows how our incredibly well-trained personnel excels and breaks boundaries, in line with our values and philosophy. 

Do you have a final message?

LG: Personally, living and working in Mongolia has been a dream come true and I am incredibly grateful for the opportunity to develop the national workforce and our next leaders in the country by sharing the knowledge built in my three decades of mining, across multiple continents. 

MS: The country is adaptive, dynamic, and open to new technologies and trends, which makes it easier for us to develop a long-term strategy and presence. We are excited to bring new technologies to more mines in the country. 

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