“Drilling turns probable reserves into actual ones”

Ph.D.Assoc.Prof. M.Naranbat, Head of the Mongolian Drilling Association, tells G.Iderkhangai about a very specialised
discipline. 

What has your association done to develop the drilling sector?

The association was established in 1996 and had the name National Center of Drilling Technology. Its aim was to facilitate networking and to carry out basic research in drilling science. There were only four Ph.Ds then in Mongolia -- J.Tseveenjav, L.Tuvkhuu, L.Dugerjav and me. A little study on drilling had been done in Russia but nothing in Mongolia. There was not even any preliminary documentation or a drilling journal. The few  journal entries on the Tavan Tolgoi deposit were not well documented. Our purpose was to systematize drilling records, arrange them in an ordered fashion and bring together all professionals in the field. The first goal has been fulfilled.

Mostly foreign companies are now working on the major drilling projects of Mongolia. At present, USD20 million-USD30 million of drilling work is being executed by US and Australian multinational companies such as Major Drilling, Atlas Copco and Redpath. This means money is going out of the country. The drilling contractor of Ivanhoe Mines is Major Drilling and USD9 million of the USD10 million spent on drilling has gone out. It is time for Mongolians to develop their capacity for drilling and grab orders.

What has prevented Mongolians from developing the sector?

The gest problem is the cost of a drill, which is, on average, USD400,000-USD600,000. Accessories would need anther USD300,000-USD400,000. The start up investment required is around USD1 million. This is huge money in Mongolia. Our association also aims to train Mongolian companies to help them become more competitive. We have done some preliminary work, such as organizing a scientific conference for 13 years on the challenges of drilling sector and our research material has been published in Russian “Geologia I razvedka” and “The Miner”.

2010 was a successful year for us as we had two new Ph.D. scholars. In addition, two Mongolian drilling companies, Ord Geo and Tanan Impex, with 10-15 drills started operation as a result of our endeavors. A professional competition among drilling masters had been introduced during the extensive geological studies in Erdenet, Tsagaan Suvarga and Baganuur. This became a regular feature until 1986 and we managed to restore the practice 4 years ago. Last year it was successfully organized in Tsaidam valley of Tuv aimag. Incidentally, modern drilling was introduced in Mongolia in 1922, at Nalaikh. Oil drilling started in the beginning of the 1940s in Zuunbayan and Dornogobi basins and mineral exploration drilling started in the next decade.

How many drilling companies are there in Mongolia?

There are over 400 drills  and over 100 drilling companies. Our association has 50 members, of which 13 are foreign invested, 37 local, 28 geological drilling, 16 water drilling, 2 oil drilling, 4 engineering and others.

Is outdated Russian drilling technology being replaced by advanced Western technology?

Some old Russian drills are still being used by private companies. Russian machines UKS -22 M, UGB-50 M are still functioning well for water exploration. Their parts are produced in Mongolia. Russian drills take 20 days to drill 200-m deep holes, while Western machines do this in a week, and the really modern ones can drill 300 m in a couple of days. That is indeed fast and powerful technology. I did my Ph.D in 1994 and when I was in Russia last year to meet my professors, they admitted that Russian technology was very much behind American and Australian.

There can be no question about the competence of Mongolian drillers. We have over 30 master drillers working abroad, some of them engineering graduates from the Technical University. They start working abroad as assistant drillers and are gradually promoted to  masters and engineers and general managers.

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