ANNUAL%20REPORT%202015%20eng

Sustainability Report
As part of the “Good Neighbourhood” initiative, the Company provides various types of in-kind assistance to the
host communities. During the period under review, the Company carried out the following activities in support of
the local communities:
• We provided free-of-charge supply of thermal coal to a power plant in the provincial capital Dalanzadgad as
well as power plants in nearby soums of Tsogttsetsii, Bayan-Ovoo and Khanbogd. In total, 25 kt of thermal
coal was supplied.
• To assist local hurders overcome the challenges of harsh winter conditions, 3,680 bundles of hay and 1,360
packages of wheat bran were provided;
• Free-of-charge seedlings were provided to Tsogttsetsii soum administration and the local residents for their
use in various landscaping projects in and around the soum;
• The Company hosted a welcoming event on the occasion of the Lunar new year each year to pay respect to
senior citizens in the local communities. In 2015, we welcomed over 390 senior citizens from the impacted
soums of Tsogtsetsii, Bayan-Ovoo, Khanbogd and Khankhongor; and
• During an annual herders’ forum hosted by Umnugobi aimag local government, the Company rewarded the
best 15 young herders from all 15 soums of the aimag with commemorative notes and gifts.
Sustainable Livelihood Development Program
To create additional economic opportunities for affected and resettled herders, the Company is implementing a
three-year program that focuses on supporting start-ups and small-and-medium enterprises of local herders. The
program was developed based on a comprehensive socio-economic household survey conducted in 2011 among
64 herder households in the UHG project direct impact area. The results of the survey highlighted the possibility
of herder households to start a new business or expand their existing enterprises in livestock husbandry and crop
farming to improve their livelihood.
The Company is collaborating with XacBank to issue interest-free loans to these households to support their
business initiatives. Trainings were organized for the participants on topics including business management,
marketing, development of cooperatives and intensive livestock farming, based on which they were able to define
their business objectives and develop plans. As of the end of 2015, a total of 14 herder households received
interest-free business loans from XacBank and loan repayments were made on time. In the reporting period, we
continued to provide professional support to the participants through our partnering local Non-Governmental
Organisations (“NGOs”) and monitored their business performance. In April 2015, we organized a tripartite project
performance assessment meeting in Tsogttsetsii soum, involving the local NGOs, local representatives of XacBank
and the project participants. The event served as a platform for us to hear the participants’ opinions and concerns
with regard to the project outcome and make further improvements or modifications, if required.
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Annual Report 2015