The Mongolian Mining Journal

Mining responsibly: a day at Altan Tsagaan Ovoo As far as I knew, it was the first time a mining company in our aimag would be opening its doors to media people. I had earlier been on such acquaintance tours to large mine sites such as Oyu Tolgoi and Erdenes Tavantolgoi and had realized how important it was for journalists to know at first hand how mines worked, given that Mongolia’s mining sector is the main pillar of the country’s development and generated the energy for our national prosperity. Most of us are guilty of believing rumours without checking if they are true and talking bad about others without any first hand evidence. This is very much true when we talk about mining. Many believe what they hear, that mining is destroying the country, is the worst thing to happen in Mongolia, that it is toxic.

“US$ 1-billion first ever Oil Refinery in Mongolia will be a milestone in India-Mongolia relationship” I have been in diplomatic service for 30 years and have served in Vietnam, Thailand, Cuba, Canada, the UAE and the UK and have travelled to 100 plus countries across continents in the course of my Protocol duties. Immediately before assuming my position here just weeks ago, I was Director in the Ministry of External Affairs, New Delhi, in charge of international conferences and multilateral summit level meetings and ex-officio Chairperson of the Operations Committee of the prestigious Pravasi Bharatiya Kendra for the Indian diaspora spread around the world.

New strategic deposits only to enrich Erdenes Mongol? State-owned Erdenes Mongol is at a critical point of its life. The working group led by L. Oyun-Erdene, Head of the Cabinet Secretariat, has given final touches to the draft law on the planned wealth fund which should be discussed at a government meeting very soon and then sent to parliament where it is expected to have an easy passage. The draft proposes to make Erdenes Mongol solely responsible for management of the fund. The company runs Mongolia’s strategic deposits which have abundant mineral resources but the question before every citizen is: can it run – or, be allowed to run -- them well enough to earn the kind of profits that would make the fund truly a wealth for future generations? Hectic activities are on at the sectoral ministry to give more assets to Erdenes Mongol.

Invitation of Expression of Interest for Pre-qualification of Copper Concentrator Project The Copper Concentrator Project Unit, Ministry of Mining and Heavy Industry of Mongolia invites submissions for Expression of Interest/Pre-Qualification of (Proponents) Applicants for the new construction project of a Copper Smelting and Producing Plant, at Umnugobi aimag, Mongolia. This Invitation on the pre-qualification is announced in connection with the public announcement of the bid for the selection of a project investor for the construction project of a Copper Smelting and Producing Plant. The pre-qualification and the bidding process takes place according to the Investment Law of Mongolia and the domestic and international regulation on the bidding of public-private partnership.

“We are competitors, but Australia and Mongolia can still work and grow together” My father was an immigrant to Australia and my family’s experience helped me grow up with an understanding of different cultures, languages and a perspective of Australia’s place in the world. I studied finance and public policy, but much of my early career was focused on the education and welfare sector, working with marginalised youth. It might seem a long stretch from youth worker to diplomat, but I was always interested in international relations, and many of the skills you need as a youth worker are similar to the ones we use in diplomacy, such as developing and maintaining strong networks, ability to refer people to services, negotiating and advocacy. Win-win situations do exist.

Are we seriously ready for the ETT IPO? In a few months, Erdenes Tavan Tolgoi will issue its IPO, marking a first for a Mongolian state-owned company. The chosen stock exchange is Hong Kong and the weather there is usually sunny in September – the likely date -- and we all hope the enthusiasm of international investors in one of the world’s largest coking coal deposits will match the autumn brightness. Nine years ago, on October 13, the first shares in the Mongolian coal sector were offered at an international stock exchange by Energy Resources under the name Mongolian Mining Corporation. Much snow has fallen and melted over Mongolia since that historic day, many development projects have been implemented and Tsogttsetsii, a remote soum in the Gobi, has started to prosper, but the Gashuunsukhait Railway is still an unrealized dream and a source of endless disputes.

Chinese show interest in SNG plant One of the proposed heavy industry projects that showed some progress is that on producing synthetic natural gas from coal. A feasibility study prepared by Wuhuan Engineering, a Chinese company, was submitted to the Ministry of Mining and Heavy Industry in May 2017, but not much seems to have happened since then.B. Temuujin, manager of the project, explains the situation to G. Iderkhangai.

Mongolia presents its case at PDAC convention It was heartening to see at the latest PDAC (The Prospectors and Developers Association of Canada) convention how Mongolia commanded the attention of many of the 25,843 attendees from more than 130 countries at the world’s premier annual mineral exploration and mining event, held in Toronto from March 3 to 6.

Mongolia presents its case at PDAC convention It was heartening to see at the latest PDAC (The Prospectors and Developers Association of Canada) convention how Mongolia commanded the attention of many of the 25,843 attendees from more than 130 countries at the world’s premier annual mineral exploration and mining event, held in Toronto from March 3 to 6. This clear expression of international interest in the event led the PDAC President, Glenn Mullan, to aver that even in the face of “economic challenges and uncertainty, the mineral exploration and mining industry is experiencing a renaissance and renewed sense of confidence, highlighting its resilience once more.”

The wealth fund as mirage Our Mining Minister wants a new, or newly-fashioned, sovereign wealth fund. Since he is a powerful man and works with determination, he is likely to get it. Once the necessary law is approved, D.Sumiyabazar would be known as Mongolia’s SWFMan.

Erdenes Methane hopeful of getting foreign investment Erdenes Methane was established in February 2016 by the state-owned Erdenes Mongol to identify coal bed methane (CBM) reserves. G.Iderkhangai talks to the Executive Director of the company, D.Amar, to find out how it has been doing.

Establishing Local news network Journalism for Development NGO believes that it is very important for journalists covering mining and the economy to have a clear understanding of their subjects and to be well-informed about them at all times. Only this would enable them to provide accurate information and sensible analyses to readers and the TV audience. The need is stronger in the distant aimags and soums, where the mining sector is active. Thus our emphasis has always been on improving the skills of local journalists.

About Journalism for Development Journalism for Development is a non-Government organization founded at the initiative of the journalists at The Mongolian Mining Journal in 2010.

“Specific exploration squares must be offered” MRPAM Deputy Director M.Enkhjargal tells G. Iderkhangai that while stable state policy is the priority for foreign investment in the exploration sector to resume in Mongolia, some other things should also be done to woo investors.

Mongolia Mining 2019 focusing on Responsible Mining More than 150 exhibitors from countries such as United States of America, United Kingdom, China, Russia, the Czech Republic, Australia, Kazakhstan, Sweden, Japan, Germany, South Korea, Italy, Belarus, France and Canada will introduce the latest technology and equipment in the mining and heavy industry.

“Large projects should progress with no political interference” E.Odjargal talks to B.Bayarsaikhan, Head of the National Development Agency, on the success or otherwise of the Public Investment Programme and other such moves in bringing in foreign direct investment, and on how to protect the investment climate from political instability.

Agreement with OT a big boost to TT power plant project By signing on the very last day of 2018 an agreement on Oyu Tolgoi sourcing power from inside the country, Ts. Davaasuren, Minister of Energy, G.Batsukh, Chairman of the Board of Directors at Oyu Tolgoi, and Armando Torres, the company’s CEO, took the actual implementation of the long-discussed Tavan Tolgoi power plant mega project one big step forward.

Asgat gets a new owner but is it ready to be mined? On January 7, 2019, G. Zandanshatar, Head of the Cabinet Secretariat, issued directives tothe Ministry of Mining and Heavy Industry (MMHI) and the Mineral Resources and Petroleum Authority (MRPAM) to transfer the ownership of the Asgat polymetallic deposit from Mongolrostsvetmet to the state-owned Erdenes Mongol.

Government policy and State policy Events in the past few weeks cannot but make us wonder where the state policy on the mineral sector is headed. A special operation with soldiers and police personnel was undertaken to clear the Salkhit silver mine of all activities by its licence holders.

REQUEST FOR EXPRESSION OF INTEREST Assignment title: Selection of a Consultant to develop a detailed feasibility study on the construction of a copper concentrate smelting and refining plant in Mongolia.