A comparative study of the procurement practices of some significant state-owned mining companies
DOI:
https://doi.org/10.5564/jimdt.v6i1.3597Keywords:
state mining enterprises, procurement, mathematical modelingAbstract
Mongolia's mining sector alone accounts for 25 percent of the gross domestic product. In the current conditions of globalization, the role of procurement in any country's social and economic development tends to increase more and more. Investment and procurement activities to convert the country's budget into efficient use have determined a new approach to countries' social, economic, and industrial development. Organizing government procurement effectively becomes one of the critical issues to creating an optimal economic structure, increasing the efficiency of the use of all types of resources, improving the productivity of the national economy, ensuring the sustainable social and economic development of the country, and spend the country's budget efficiently and effectively. Mongolia has developed and approved legal acts with a particular focus on forming the legal basis of the economic system and procurement. In recent years, foreign trade turnover has steadily increased. In particular, the foreign trade deficit is decreasing every year.
The total turnover of foreign trade in 2005 was 2241.2 million US dollars, in 2010 it was 6108.6 million US dollars, in 2015 it was 8466.8 million US dollars, in 2017 it was 10536.12 million US dollars, which was increased by 27.3% or 2261.6 million US dollars from the previous period. 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 was 84.1%. Therefore, it is essential to conduct a comparative study and analysis of the procurement process of major mining enterprises in our country.
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