ORICA MONGOLIA LLC: DRIVING INNOVATION AND DIGITAL TRANSFORMATION IN MONGOLIA'S MINING SECTOR

Orica Mongolia LLC, a subsidiary of the Australia-based Orica Group, has been operating in Mongolia since 2004. With a legacy spanning over 150 years, the Orica Group is a global leader in the construction and mining blasting industries, operating in more than 100 countries worldwide.

With over 20 years of experience, Orica Mongolia LLC has been a trusted provider of blasting services and products to major mining operations across Mongolia. Its clients include leading coal mines such as Erdenes Tavan Tolgoi JSC, South Gobi Sands LLC, and MonEnCo LLC. copper mines of Oyu Tolgoi and Erdenet Mining Corporation, and gold mines of Bayan Airag and Boroo Gold Company

Since 2019, Orica Mongolia LLC has been providing blasting services to Oyu Tolgoi LLC under contract, providing explosives and blasting equipment for both open-pit and underground mining operations.

During the 14th "Mongolia Mining 2025" international mining exhibition held in Ulaanbaatar, the Mongolian Mining Journal team conducted an interview with Mikhail Safronov, Regional Manager of Orica Group, Chandra Budiman, Asia Region Digital Solutions Lead, and Arkhalykh Sharip. Senior Technical Service Engineer, to discuss the company's activities and future plans.

Can you tell us more about your company?

Mikhail Safronov (MS): Orica is a global leader in explosives and mining technology, known not just for supplying explosives, but for delivering advanced, digital mining solutions. We're focused on creating win-win partnerships with our customers by offering tailored technologies that go beyond traditional blasting.

Chandra Budiman (CB): In addition to supplying explosives, we are also introducing electronic blasting systems, upgrading equipment and technology, and offering electronic solutions to the mining industry in line with the rapid development of the industry. Our company's electronic technology, combined with other mining technologies, increases the efficiency, capacity, and productivity of mineral extraction.

Arkhalykh Sharip (AS): I am a senior blasting engineer for Orica at Oyu Tolgoi mine. Our team consists of six Mongolian engineers and one foreign senior engineer who support Orica's product quality control and service. Orica has been operating at Oyu Tolgoi since 2016. We use electronic blasting systems in both open pit and underground mines. We successfully introduced Orica's best practices into our work.

How important is the Mongolian market for Orica? Why did you decide to come to Mongolia?

MS: We represent the Asia region for Orica, and within Asia, we already have a strong presence in countries with well-developed mining industries like Indonesia and the Philippines. We're so growing in India. However, Mongolia stands out as a truly mining-focused country where Orica still has room to expand. While we do have a decent market share here, we see great potential for further growth as the mining sector continues to develop.

CB: Mongolia is attracting companies from all over the world, bringing in new technologies. That's why we're introducing more of our advanced solutions here. It's a very important market for us. We're not just aiming to grow our presence, but to collaborate with the industry, analyze the challenges together, and help drive progress-especially through digital technology.

What are the key projects you are working on in Mongolia? Or what partnerships have you established in Mongolia?

MS: That's a great question. We're very interested in working with major mining companies in Mongolia, but we also recognize our niche. While coal mining is highly competitive, we see strong potential in the copper sector and Greenfield projects, where we can add more value. These new projects are a better fit for introducing our services and technology.

CB: We're also focusing on digital transformation. Although Mongolia's mining industry is well-established, we believe our digital technologies can take performance to the next level. We've seen success in other countries, where digital systems improved efficiency, transparency, and decision-making. We aim to bring the same benefits to Mongolia.

AS: Orica, with over 150 years of experience in blasting technology, is here to share advanced solutions. We see growing interest from Mongolian professionals who are eager to adopt and learn from global best practices in this field.

Tell us more about why are you participating in this exhibition? What equipment or technologies are you showcasing here?

MS: Orica is evolving rapidly. Over the past few years, we've made significant investments- over a billion dollars in digital technologies through mergers and acquisitions. Our portfolio has expanded, but many in the industry, including in Mongolia, aren't fully aware of these changes yet. That's why participating in this exhibition is important for us. It's a great opportunity to showcase our latest technologies and capabilities, even to long-time partners who are surprised by how much we've grown.

CB: Mongolia is a key market for us, and we've already introduced digital technologies here with positive feedback. At the exhibition, we're presenting real case studies that demonstrate how our solutions work in practice. These examples show how our technology has improved operations, and we're excited to share this knowledge so other mining companies can explore whether it fits their needs as well.

You have a very modern, advanced technology. How these new advanced technologies are being adapted or tailored to Mongolian conditions?

MS: One of our key customers in Mongolia is Oyu Tolgoi, where we've implemented and tested several advanced technologies over the past five years. Some of these technologies, especially digital products, are sensitive to environmental conditions-so Mongolia's cold and harsh climate is an important factor in testing and adapting them.

That said, we believe that if a product is robust and well-designed, it can work anywhere-regardless of climate, location, or language. This global adaptability is one reason Orica has been successful across so many countries.

CB: We also take a learning approach. Mongolia has a unique environment, and we continuously adapt and improve our technology based on what we learn from working here. Each region helps us refine our products, and Mongolia is no exception. This makes our solutions stronger and more versatile worldwide.

Next question is about sustainability and safety. How do you make sure that Orica meets all these sustainability and safety standards in Mongolia?

MS: For Orica, sustainability and safety are core values, not just market requirements. These principles are embedded in everything we do. We adhere to these values in our day- to-day operations.

For example, we've walked away from potential contracts when we felt they could put our people at risk. Safety is always our top priority, and we follow strict safety protocols and sustainability standards-both globally and locally. If you visit our plants, you'll see how committed we are to these standards.

CB: Our strong safety culture is also enhanced by our digital technologies. Tools like OrePro 3D and BlastIQ reduce the need for personnel in hazardous areas, improving both safety and operational efficiency. By integrating these technologies, we can continually enhance safety performance in mining operations.

AS: We're proud of our long partnership with Oyu Tolgoi, where our shared commitment to safety and sustainability has driven our success. Our high standards, combined with advanced technology, ensure that safety and sustainability are always at the forefront.

How do you work with the Mongolian workers, Mongolian staff? How do you train them? What's your approach in developing local expertise?

MS: Orica is a truly global company, and our approach to training and developing local expertise is consistent across the countries where we operate. When launching a new business, we bring in experienced specialists and managers who work alongside local teams, not just to train them, but to share our values and foster collaboration.

Rather than just following procedures, we emphasize working together and committing to shared goals. In Mongolia, for example, we've been operating since 2004. Initially, many of the leadership roles were filled by expatriates, but now most of the key positions are held by local Mongolians. We've made a concerted effort to develop local talent, and today, our local team successfully drives the business forward.

About the future plans. What are Orica's long-term plans for growth and investment in Mongolia?

MS: Orica is focused on introducing and expanding our technologies in Mongolia, where we see significant market potential. Some of our solutions, like digital technology and electronic blasting systems (EBS), are easy to implement and don't require heavy investments, so we plan to offer them widely. For larger investments, such as plant developments, we are more focused on upcoming Greenfield projects, especially in metal and coal mining, expected over the next five to seven years.

We're confident about Mongolia's future, as the mining sector here is growing and in need of new technologies to enhance operations. Our goal is to invest in the market, collaborate closely with customers, and showcase how our technologies can bring tangible benefits. As these technologies prove valuable, we're confident that companies will continue adopting them for long-term improvements.

You work in many countries, your company. How Mongolia is different? Not just environmental, but what are the differences with other countries? How Mongolia is different?

MS: Mongolia stands out to me in several ways, particularly in terms of communication and the eagerness of local teams to embrace new technologies. I've noticed that it's easy to connect with Mongolian customers, as they're open-minded and keen on development, especially when it comes to adopting new solutions.

In terms of our local team, I see a genuine spark in my Mongolian colleagues. It's not about salary, but a real passion for personal growth. Orica, being a global company, offers opportunities for Mongolian staff to work internationally. For example, recently, one of our engineers moved to Australia, and another to the Philippines. These colleagues are recognized for their expertise and contribute valuable knowledge abroad, not just as trainees, but as subject matter experts. This speaks to the high capabilities of our Mongolian team.

Can you talk more about what are the kily trends in the mining industry globally and in Mongolia from your point of view? How mining industry globally in the world is developing?

MS: Globally, Al is becoming a dominant trend, expanding across various sectors, including mining. At Orica, we're integrating Al into our products to enhance mining operations, particularly through tools that analyze fragmentation and offer cost-saving solutions.

In Asia, we've established a Center of Excellence in India, which serves as a global hub for engineers and analysts. This center uses Al systems to optimize operations, and it's a prime example of how Al is shaping the future of the mining industry.

In Mongolia, as in other countries like Russia, China, and Indonesia, Al is becoming a key player in the mining sector, driving innovation and efficiency. It's clear that Al will continue to play a critical role in the industry's development.