When Orica Mongolia LLC opened its doors in 2004, Mongolia’s mining industry was entering a new era. The Oyu Tolgoi copper-gold project was gathering momentum, coal exports were climbing, and global demand was pulling the country’s mineral wealth onto the world stage. For Orica, a subsidiary of the Australia-based Orica Group—one of the world’s leading blasting and mining technology companies—the move was natural. The global business already had more than a century and a half of experience, a presence in 100 countries, and a reputation for being first where new opportunities emerged.
Two decades later, Orica Mongolia is no longer the “new entrant.” It is embedded in the country’s mining landscape, providing explosives, blasting services, and increasingly, digital solutions to some of Mongolia’s largest mining operators: Erdenes Tavan Tolgoi JSC, South Gobi Sands, MonEnCo, Erdenet Mining Corporation, Oyu Tolgoi, and more. Its trajectory reflects both the evolution of the Mongolian mining sector and the global mining industry’s shift toward data-driven, safer, and more sustainable practices.
From Explosives to Digital Solutions
“Orica today is about more than explosives,” says Regional Manager Mikhail Safronov. “We are focused on delivering advanced, digital mining solutions that create win-win partnerships with our customers.”
That transition is visible across Mongolia. While Orica’s bread and butter has long been high-quality blasting services, the company is increasingly known for its electronic blasting systems (EBS), monitoring platforms, and digital optimization tools. Electronic systems improve fragmentation control, reduce vibration, and increase precision in both open-pit and underground mines. The payoff is higher productivity and lower risk—two priorities for every operator.
Asia Region Digital Solutions Lead, Chandra Budiman, explains: “The mining industry here is mature in some ways but also hungry for transformation. Our electronic technologies, combined with digital platforms like BlastIQ and OrePro 3D, are designed to improve efficiency, transparency, and decision-making. They take blasting from a one-dimensional task to an integrated part of the mine’s overall productivity strategy.”
On the Ground at Oyu Tolgoi
If Orica’s technologies sound futuristic, they are already working in the field. At Oyu Tolgoi, Orica has been a partner since 2016, supporting both open-pit and underground operations.
Senior Technical Service Engineer Arkhalykh Sharip leads a team of six Mongolian engineers and one expatriate specialist at the site. “We use electronic blasting systems across the operation,” he says. “Our work is not just about detonating charges—it’s about integrating best practices, ensuring safety, and improving results. Over the years, we’ve successfully introduced Orica’s global innovations into Oyu Tolgoi’s day-to-day operations.”
That work is part of a larger vision: to anchor Orica’s global expertise within Mongolia while steadily transferring responsibility and technical depth to local staff. Where once expatriates dominated leadership, today most key roles in Orica Mongolia are held by Mongolians—a reflection of the company’s long-term commitment to local talent development.
Why Mongolia Matters
Globally, Orica has major operations in mining-rich regions like Indonesia, the Philippines, and India. Yet Safronov emphasizes that Mongolia occupies a unique place in the portfolio. “Mongolia is truly mining-focused. Here, mining isn’t just an industry—it is the industry. That gives us room to grow, because the need for new technology, efficiency, and productivity is so central to the national economy.”
That focus is reflected in Orica’s client base, which spans coal, copper, and gold projects. Coal remains fiercely competitive, but Orica sees particular potential in copper and in upcoming Greenfield projects. With global electrification driving demand for copper, Mongolia’s reserves put it in a strategic position—and Orica is positioning alongside it.
Showcasing Technology, Driving Awareness
At the 14th “Mongolia Mining” exhibition in Ulaanbaatar, Orica used its platform to showcase how far it has come. Over the past five years, the company has invested more than a billion dollars globally in digital technologies, acquisitions, and R&D.
“Many of our long-standing partners don’t realize just how much Orica has transformed,” says Safronov. “Exhibitions like this are important to us because they let us demonstrate the full breadth of what we now offer. From electronic blasting to AI-enabled optimization, the industry can see firsthand the difference.”
The company showcased case studies from Mongolia and abroad, providing evidence of measurable improvements in efficiency, cost savings, and safety outcomes. For local operators—many of whom are wary of taking risks with new technologies—the ability to see tangible examples is critical.
Safety and Sustainability as Non-Negotiables
Mining is inherently hazardous, but Orica has built its reputation on safety. “For us, safety and sustainability are not market requirements, they are core values,” Safronov insists. “We have walked away from contracts that could put our people at risk. That’s how seriously we take it.”
Orica’s global safety culture is reinforced in Mongolia through strict protocols and, increasingly, digital tools. By reducing the need for personnel to be physically present in hazardous areas, systems like BlastIQ improve both safety and productivity.
Sustainability is intertwined with safety. The company’s technologies help reduce environmental impact through better control of blasts, optimized fragmentation, and reduced energy usage downstream. In Mongolia, with its fragile steppe ecosystems and tight environmental regulations, those efficiencies are not just operational advantages—they are reputational ones as well.
Building Mongolian Talent
One of Orica’s most significant contributions has been the development of Mongolian professionals. “In the early years, many leadership positions were filled by expatriates,” Safronov recalls. “Today, most of those roles are held by Mongolians. That is deliberate.”
The company’s approach blends formal training with hands-on experience. Expatriate experts continue to work alongside Mongolian engineers, but the emphasis is on collaboration and values, not just procedures. Engineers from Orica Mongolia have also gone on to work in Australia, the Philippines, and other countries—not as trainees, but as recognized subject matter experts. This speaks to the quality of the Mongolian workforce and Orica’s role in elevating it.
Looking Ahead: Growth and Greenfield Opportunities
Over the next five to seven years, Orica expects Mongolia’s mining industry to continue growing, especially in copper and coal. The company plans to:
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Expand its rollout of electronic blasting systems across major projects.
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Deepen adoption of digital technologies that integrate blasting with mine planning and downstream processing.
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Pursue partnerships in upcoming Greenfield projects where new infrastructure allows new technology to be embedded from the outset.
“These solutions don’t always require heavy capital investment,” notes Budiman. “Some of our technologies can be adopted relatively quickly. For larger projects, particularly new ones, we want to be there from the start.”
Mongolia on the Global Stage
Mongolia is not without its challenges. Harsh winters, logistical hurdles, and fluctuating commodity markets test even the most experienced operators. Yet for Orica, Mongolia offers something special: a mining culture that is open to innovation and a workforce with both passion and capability.
Safronov sees a unique spark in his Mongolian colleagues. “It’s not just about salaries—it’s about real passion for growth and development. That’s what sets this team apart. And as part of Orica’s global network, our Mongolian engineers are not only learning from abroad, they’re contributing knowledge back into the system.”
Conclusion
In its 20th year, Orica Mongolia LLC is more than an explosives supplier. It is a partner in Mongolia’s mining future—bringing global best practices, cutting-edge digital tools, and a deep commitment to safety and sustainability. Its legacy is visible not only in more efficient blasts and safer sites, but also in the rising cadre of Mongolian engineers shaping the industry’s next generation.
For Business Excellence Infrastructure Magazine readers, Orica Mongolia offers a compelling case study of how global expertise and local talent can combine to drive not only business success but industry-wide transformation.
