Visitors to the Mine Tech 2011 exhibition earlier this month could see that there was handful of Mongolian manufacturers among the exhibitors. Almost all the suppliers and providers of mining machinery and equipment showing their range of products to the Mongolian mining fraternity were foreign, though many were represented by their local distributors.
This is a pity as participants find the exhibition productive and beneficial, more so as mining expands. All suppliers who had gathered in the Misheel Expo Center noted that the last year, 2010 greatly helped them increase in sales. Most found their revenue rising between 20 percent and 50 percent in 2010. They were confident that this year, too, will be more profitable.
All three of the Mongolian companies to be seen worked in blasting. A few years ago they even began to produce explosives in their own plant and stopped importing them. However, better known foreign rivals in the blasting sector are getting orders from the projects and the entirely Mongolian-invested companies find themselves denied the chance to obtain more working experience in projects. It is natural that giant mining companies will mainly choose foreign companies tested internationally and with whose work they are familiar. National blasting companies cannot cross this hurdle without some special support.
The array of energy-efficient and eco-friendly equipment and machinery was impressive, even though right now these would not be widely used. Only companies like OT or MAK will buy them. Small or medium mining companies cannot afford these, as the exhibitors rued.
For example, Eurofeu fire safety equipment was predominant in its area. Fire safety equipment is very important in the mining industry because drilling and welding are everyday occurrences in mining and both pose risks of fire. So the demand for fire safety equipment is much higher than that for others. The Eurofeu range follows EU Standards, which guarantees its quality and main reason to buy.
It is the same with protective clothing. As every single person in mining must wear them, the demand for them is huge. Some Mongolian companies also make them, but their quality cannot match that produced abroad and so companies mainly purchase Australian or Canadian products. Distributors noted that Mongolian producers did not come to the exhibition as customers would stick to standardized products.
If Mongolian small and medium business entities want to have a piece of the mining pie they should learn how to meet global standards. One hopes some progress towards this will be seen at next year’s exhibition. The chances are good as the organizers are committed to supporting small and medium entities.
Mine Tech 2011 confirmed once again how the mining boom has been attracting more and more people to do various kinds of business in Mongolia. Visitors could meet trade representatives from Beijing, Moscow, and even Australia.