The Mongolian Mining Journal

Baosteel to invest $1.3bn in natural gas pipeline China’s Baoshan Iron &Steel, the country’s largest listed steelmaker, said it will invest $1.3billion in a natural gas pipeline project led by China National Petroleum Corp. Narrowing margins and weaker growth in demand have prompted steelmakers in China, the world’s top steel producer, to seek more cooperation with downstream users to increase profit.

Mining Minister commissions OT concentrator The very last week of 2012 saw Oyu Tolgoi LLC take a big step towards the future. With MPs, cabinet members, and ambassadors watching, Mining Minister D. Gankhuyag pressed the activation button on the concentrator to formally mark the commissioning of the largest and most technologically advanced machine ever built in Mongolia.

Prowling for big oil in Mongolia, Wolf Petroleum signs PSC Wolf Petroleum, formerly Strzelecki Metals, has signed a production sharing contract for the 23,047-sq km Sukhbaatar exploration block 27, located in and eastern Mongolian region with proven and producing petroleum systems and adjacent to Wolf’s existing BU Block.

Turquoise Hill posts $114.3 million Q3 revenue on fair value gain The Vancouver-based Turquoise Hill Resources -- formerly known as Ivanhoe Mines Ltd. -- says its third-quarter net income shot up to $114.3 million, largely due to a $176.2-million increase in the fair value of certain derivatives.

Japan will be a wise choice as partner in Mongolia’s coal and oil shale sectors Cooperation between Mongolia and Japan in the field of mineral exploration began in the first democratic revolutionary years of Mongolia back in the 1990s, and it is my contention that this should be strengthened in the coming years and cover another revolution – that of shale gas exploitation.

The 24th Colloquium of African Geology (CAG24) Addis Abeba, Etheopia The 24th Colloquium of African Geology (CAG24) Addis Abeba, Etheopia

Mining Minerals & Products Expo Gujarat, India Mining Minerals & Products Expo Gujarat, India Gujarat, India

Need to know exactly how much has been spent on OT, and why costs rise As the Oyu Tolgoi mine gets ready to begin production next year, heralding a new era in the Mongolian economy -- especially in mining and export -- debates over the OT investment agreement are getting fiercer, with the spotlight turned on those who worked on it.

Entree Gold reports on Q3 Entree Gold Inc. has filed its interim operational and financial results for the quarter ended September 30, 2012. Its highlights include references to the Lookout Hill Joint Venture in Mongolia where the company looks forward to development production from the Lift 1 underground operations on the Entree-OTLLC joint venture ground expected as early as 2015.

Well done, Mongolia! Considering the alacrity with which media persons in Mongolia track the Internet, I was surprised to find in the Home page of The World Justice Project that even after a week of the release of its latest Rule of Law Index -- the third in an annual series -- there was no record of any feedback from Mongolia.

MINING JOURNAL AWARDS 2012

Ovoot review confirms project economics, says Aspire Following a review of the prefeasibility study (PFS) of its Ovoot coking coal project, Aspire Mining believes it could be one of the lowest-cost potential sources of coal bound for China. The PFS review confirms the project’s economics, with a net present value of $1.7 billion and a life-of-mine net cash surplus, after taxes and capital of $8.3 billion, based on a medium-term average coking coal price of $200/t.

Dissecting the draft Law on Minerals ll speculation on what the new Law on Minerals would contain is finally over with the draft – in both Mongolian and English – now posted on a website. It has 15 chapters and many new concepts. It also does not appear that much from last spring’s two discussions on it has been incorporated in the draft.

MINERALS LAW Article 1.Purpose of the law The purpose of this Law is to promote economically viable mining and extractive industries which carry out prospecting, exploration, mining and processing mineral resources in compatibility with the economic, social and environmental policies of the State.

Investors want “clarity in policy and procedures” Maxim Berdichevsky, Counsellor and Senior Trade Commissioner at the Embassy of Canada, talks to the Mongolian Mining Journal.

Australia identifies ‘pillars of productivity’ in ‘Asian Century’ The scale and pace of Asia’s rise in the coming decades offered opportunities for Australia across all sectors of the economy, including natural resources, Deputy Prime Minister and Treasurer Wayne Swan said in a statement following the release of Prime MinisterJulia Gillard’s foreign policy plan aimed at improving Asian ties.

Prophecy Coal reports results of Chandgana Tal PEA Prophecy Coal has said a preliminary economic assessment (PEA) for its two Chandgana Tal mining licences contain an estimated 124 million tons of coal in the measured resources category, providing for a potentially economically viable project.

“Digging up every deposit is not environment friendly mining” The Reform Government is committed to following a policy of “green development”. Both the civil society and mining professionals are relying on S.Oyun, head of Civil Will Green Party and Minister of Environment and Green Development, to do a lot in this regard.

PARTS OF SPEECH “Our ministry will not rest until the Oyu Tolgoi investment agreement is changed, and I would certainly resign if we failed.”

PERSON OF THE YEAR The Mongolian Mining Journal will honour a Person of the Year at this year’s Awards ceremony. The choice will be from among those who have made valuable contributions to the mining sector’s development in any of several ways -- improvingits regulating laws,stabilizing the investment environment, contributing to theoretical research or field practices, installing better management practices, or ensuring responsible mining operations.