We conducted interviews with business partners and executives who participated in the 15th anniversary event of Transwest Mongolia LLC.

T.Byambanaran, P.Jargalsuren

David Turnbull- Executive Director at Transwest Mongolia LLC

We heard your presentation about milestones and successes. What can you add to the readers of the Mining Journal regarding milestones?

There's quite a bit to mention. When we first came here, our primary focus was securing business at Oyu Tolgoi. A significant milestone for us has been diversifying our client base and expanding our equipment's presence with other customers.

Another key milestone is the development of our facility. Initially, all our refurbishment and remanufacturing of equipment was done overseas in China and Japan. Now, we handle 100% of this work locally with our trained Mongolian technicians. We still employ 9-11 expatriates, mostly in technical roles, to train our Mongolian staff.

The third milestone is the development of our training program. I encourage you to visit our training facility. One of Mongolia's challenges is the lack of skilled personnel, not only in the mining industry but across all sectors. We address this by enhancing our employees' skills through a comprehensive training program. We use an educational curriculum from Australia, integrating key components with Komatsu's training systems and our own local methods.

Our training approach encompasses safety, technical skills, and what we refer to as the "transverse way": our expectations for employee behavior and conduct in the workplace. These are the three milestones I am particularly proud of.

What are your priorities for Transwest Mongolia in the next 5-10 years?

Our primary focus is to introduce new and green technologies into the marketplace. Along with these advancements, we will need to provide specialized training, as new technologies often involve more complex systems. This includes educating both our staff and customers on how to effectively use these innovations. This is a big challenge, and we are particularly focused on implementing Komatsu's green technologies over the next three to five years.

Additionally, another priority is to open 2-3 new branches in other locations across Mongolia.

How has Transwest Mongolia contributed to the development of the mining community and local communities?

At Transwest Mongolia, we adhere to a policy similar to OT's, focusing on local procurement.

We prioritize sourcing locally for everything from food to travel services, aiming to minimize purchases from outside the country. Although our equipment and parts are manufactured abroad, we try to buy everything else from local businesses wherever possible.

This approach not only benefits the community in Ulaanbaatar but also positively impacts the broader Mongolian environment. I encourage you to visit our training facility to see firsthand how we are contributing to local development.

Jun Takashima Senior Project Manager Overseas Marketing Dept. Il

Construction Equipment and Regional Marketing Division Komatsu Ltd.

Can you tell us more about the innovative technologies that you are providing to Transwest to meet the needs of the Mongolian mining industry, innovative technology?

Our primary focus is on enhancing safety at the job site and within our machines. Our equipment is equipped with safety devices designed to protect both the operator and the job site. For instance, our machines feature a monitoring system that can detect if someone approaches from behind, alerting the operator to potential hazards and allowing them to stop the machine if necessary to prevent accidents.

Additionally, we offer a key product called Komtrax, which is a comprehensive machine monitoring system. This technology provides real-time data on machine performance, helping to ensure optimal operation and maintenance.

Can you explain how Transwest Mongolia helps to manage your business operations and customer relationships in Mongolia?

Transwest Mongolia is our official distributor and plays a crucial role in managing our business operations and customer relationships in the country. All of our business transactions are conducted through Transwest Mongolia, as they are experts in the local market.

They handle our mining and construction dealings, as well as relationships with customers, government organizations, and financial institutions. Being on the front line with our customers, they provide continuous feedback on market conditions and business progress.

Transwest Mongolia also communicates requests for specific machinery, detailing the required equipment and specifications. We promptly respond to these requests to meet customer needs, including ensuring timely deliveries. For instance, some of our machines are designed to operate in extreme cold conditions, such as temperatures as low as -30 or -40 degrees, where standard machines might struggle.

Our collaboration with Transwest Mongolia is supported by our teams in Japan, America, and Germany, ensuring we address local requirements effectively.

Mongolia is a bit unique, isn't it? How do you adapt your services and equipment to meet the needs of the Mongolian environment?

Yes, Mongolia presents unique challenges, and we employ several approaches to adapt our services and equipment accordingly.

Firstly, we regularly receive feedback from the service and sales teams at Transwest Mongolia, who maintain close contact with customers and visit job sites. This ongoing communication provides us with valuable insights into local needs and conditions.

Secondly, we invite our customers to Japan annually. This allows our marketing team and plant engineers to hear directly from customers about their opinions and requests, which we then address promptly based on this direct feedback.

Additionally, we thoroughly study and adhere to Mongolia's government regulations, environmental laws, and other legal requirements. By combining feedback, direct communication, and compliance with local regulations, we strive to effectively meet the needs of Mongolia's environment and its customers.

Patrick McCarthy General Manager, Mining Services Komatsu America Corp.

What are the key challenges in managing the supply chain to Mongolia, specifically to Transwest Mongolia?

I work for Komats America, where we manufacture large mining trucks, including electric drive models, | can highlight several key challenges in managing the supply chain to Mongolia.

One major challenge is transportation. While most COVID-related restrictions have been lifted, shipping from Peoria, Illinois, where we produce and ship the trucks, to China, and then into Mongolia, involves significant logistical hurdles. Although I don't have the exact figures for Transwest Mongolia, we frequently encounter delays in transporting both equipment and parts into the country. These delays impact our supply chain efficiency and the timely delivery of products.

How do you ensure that your products and services meet the needs of the Mongolian market?

Before introducing a product to any country or region, we conduct an application study. This involves analyzing factors such as the mine site, haul road profiles, and other relevant conditions to determine the appropriate equipment size and specifications.

Once the requirements are established, my team, along with our field service organization, supports Transwest Mongolia in assembling the machines, which arrive disassembled. We then carry out all necessary commissioning, testing, and productivity assessments to ensure the equipment meets local needs before handing it over to the customers.

You started working with Transwest Mongolia since its establishment?

Yes, that's right.

Can you provide a rough estimate of how much your supply to Mongolia has increased from 15 years ago to now?

Mongolia presents a unique situation because Transwest Mongolia began its operations with a major order for the Oyu Tolgoi (OT) project, although I don't have the exact number of trucks involved. Since then, they have added more trucks to their operations and recently expanded their sales to other sites, including MAK and several others.

While I don't have precise figures on income or sales, it is clear that Transwest Mongolia's sales have significantly increased compared to 15 years ago. The growth has been substantial, with many times more sales now than initially.

Peter Buhles Vice President Sales and Service Mining Division Komatsu Germany GMBH

Can you tell us about the innovations in mining equipment from Komatsu Germany that have benefited Transwest specifically Mongolia's operations? 

One of the key innovations we're developing further with Transwest Mongolia is electric equipment. Komatsu has been at the forefront of electric excavator technology for 40 years.

Recently, we supplied the first PC4000 electric excavator to MLK in collaboration with Transwest, marking the introduction of electric machines in Mongolia. We plan to expand our range of electric equipment, as we are a global leader in electric-driven excavators.

How does Komatsu Germany ensure that the products and services provided through Transwest Mongolia meet the expectations of Mongolian customers?

We ensure that our products and services meet Mongolian customers' expectations by actively seeking feedback and providing on-site support. Currently, we have a service trainer stationed at the MLK mine, delivering training on our services. Feedback from both attendees and Transwest has been very positive, with high satisfaction reported regarding our training and aftermarket support. I also spoke with the parts manager at Transwest just two hours ago, who expressed her satisfaction with our aftermarket service.

How long has Komatsu Germany been working with Transwest Mongolia?

Komatsu Germany has been working with Transwest Mongolia since the beginning. Our first machine sale was six years ago. Since then, we have sold two more machines to BTEG and three machines to MLK, including a large 700-ton excavator.

Can you share some figures on how much equipment you supplied in the first year of your partnership and how much you are supplying now?

Our global annual production is between 35 and 40 machines, so the numbers aren't very high. In Mongolia, over the past three or four years, we've sold six machines, which is a notable achievement given the market conditions. The market for large excavators in Mongolia typically sees annual sales of about two to four machines.

Can you quantity the annual growth in percentage terms?

Quantifying precise annual growth percentages is challenging due to the variability in the numbers. For example, if we sell four machines in one year and only two the next, it represents a 50% decrease. Conversely, increasing from two to four machines reflects a 50% growth. Despite these variations, the overall trend is positive, and the business is expanding.

So, this year alone, you've sold three machines, correct? That's quite a lot.

Yes, exactly. This year, three machines is a significant number.