A comparative study of the Procurement process of Mongolian mining companies

UDC 69
Publication date: 04.05.2024
International Journal of Professional Science №5-2-2024

A comparative study of the Procurement process of Mongolian mining companies

Enkhtuvshin l., Ganchimeg J.

Graduate School of Business
University of Science and Technology
Ulaanbaatar city, Mongolia
Abstract: Mongolia's mining sector alone accounts for 25 percent of the gross domestic product. In addition, a large amount of investment has been attracted from foreign and domestic organizations and purchases of goods, works and services are being made. This feature of the mining industry is important only when the output of the mine is converted into economic circulation and wealth. In the current conditions of globalization, the role of procurement in the social and economic development of any country tends to increase more and more. Investment and purchase activities aimed at converting the country's budget into efficient use have determined a completely new approach to the social, economic and industrial development of countries. Effectively organizing government procurement to create an optimal economic structure, to increase the efficiency of the use of all types of resources, to improve the productivity of the national economy, to ensure the sustainable social and economic development of the country, and to spend the country's budget efficiently and effectively. Our country has developed and approved legal acts with a special focus on forming the legal basis of the market economy system and procurement. In recent years, foreign trade turnover has been steadily increasing. In particular, the foreign trade deficit is decreasing every year. The total turnover of foreign trade in 2005 was 2241.2 million US dollars. dollars, 6108.6 million US dollars in 2010. dollars, in 2015 it was 8466.8 million US dollars. dollars, 10536.12 million US dollars in 2017. 27.3% or 2261.6 million dollars from the previous period. increased by dollars. Mineral raw materials and textiles accounted for 71.1% of total exports in 2000, while in 2005, mineral raw materials and precious metals accounted for 73.9%. In 2010, these products accounted for 87.1%, and in 2017, they increased by 2.1 points to 89.2%. In 2022, the share of treasure products in exports will be 84.1%. Therefore, it is important to conduct a comparative study and analysis of the purchasing process of major mining enterprises in our country.
Keywords: state mining enterprises, procurement, procurement.


Since the 1990s, Mongolia has transitioned from a planned economy to a free market. Since then, there have been major changes in the country’s society and economy. In this way, the foundations for the formation and development of a completely new socio-economic system based on market relations were laid in Mongolia. Changes and reforms taking place rapidly in the world have affected the social and economic development of countries. Along with this, the role of procurement has become increasingly important.

When the country’s budget is transformed into efficient consumption, purchasing activities will determine a completely new approach to social, economic and industrial development. The competitiveness of countries depends not on the number of people, the size of the territory, or natural resources, but on the effective use of their resources. Procurement began to play a significant role in this.

According to global experience, many countries have developed procurement policies that are suitable for their own characteristics and have achieved results. It plays a decisive role in the social and economic development of developed countries. However, for developing countries, it is one of the main ways to increase the rate of economic growth and overcome the backwardness.

In our country, since 2000, the government has been paying special attention to the formation of the legal basis for procurement and has developed and approved legal acts.

It is becoming very important to study the issue of effective management of purchasing activities, including the purchasing activities of state mining enterprises.


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