Post on 10-Feb-2017
ERDENES MONGOL LLC and STRATEGIC
MINING DEPOSITS
2014.05.01
|Erdenes MGL LLC|
|Jigjidjav Street 6, Khoroo 1, Chingeltei District,
Ulaanbaatar, Mongolia
|Tel: (976) 7011 0735|
|Fax: (976) 7011 0725|
|E-mail: info@erdenesmgl.mn|
|Website: www.erdenesmgl.mn|
ЭМГЛ
ACTION PLAN- 2012-2016 GOVERNMENT OF MONGOLIA:
redefinition of strategic mining deposits and implementation of a specific policy for strategic mining deposits including
thermal coal, coking coal, copper, iron ore and earth rare elements
update of strategic mining deposits list and intensify the commercial utilisation of major deposits
issuance of preferred shares of corporation that holds state shares in strategic mining deposits to citizens according to Human
development Fund Law
to gradually decrease the export of raw materials
policy to process exporting goods at internationally accepted standards and increase export of value added products in
trade turnover
STATE POLICY ON MINERAL SECTOR:
• state policy on mineral sector aims to develop a private sector based and transparent mining, create a structure that economically
balanced for short and mid term and ensure national interest
• to broaden a cooperation on geological sector with foreign countries and to support the private entity’s involvement in
exploration projects
• to implement a phased action to change state owned entities into public companies
PARLIAMENT RESOLUTION No.39:
listing of Tavan tolgoi deposit at domestic and foreign stock exchanges
STATE POLICY ON MINERAL SECTOR
ЭМГЛ
• A holding company in mining sector of Mongolia, 100% owned by the
government
• Holds state shares of mining companies that operate in strategic
mining deposits
• Owns state shares of infrastructure and sub projects in strategic
mining deposits
Erdenes Mongol LLC is :
ЭМГЛ
Chronology
Mission: to develop its subsidiaries as globally competitive
national enterprises through exercising good governance and
optimal management in order to contribute to the prosperity of
Mongolia.
2007 2009 2010 2011 2013
Establishment of Erdenes MGL
The government of Mongolia owns 34%
of OT share.
Erdenes MGL established Erdenes Tavantolgoi JSC as
one of the subsidiaries.
Erdenes MGL established Erdenes
Oyu tolgoi LLC as one of the subsidiaries.
Mongolia shareholding of Erdenet Plant LLC, licensee of the strategic
mineral deposit, government shareholding of Baganuur JSC, and
Shivee Ovoo JSC, were transferred to Erdenes MGL
ЭМГЛ
“Erdenes Mongol” LLC – General Operating Structure/Concept
Citizen of Mongolia
(preferred shareholder)
State Great Khural
(Parliament)
Road Energy/Power
plant Railway Water Supply
?%
15 strategically
important deposits
Downstream
Industry
List of Strategically Important
Deposits No. 2
34-100% Mon Element
Investor
?% ?%
Processing
Plant Logistic
Distribute dividends
?%
Issue preferred shares
Dividends, upfront payment,
Income from sale of shares and royalty Human Development Fund
(Ministry of Finance)
Investment
Securities/shares/savings
Government Shareholder and decision making
Approve amount of dividends P
rop
ose
am
ou
nt
of
div
iden
ds
for
app
roval
?%
?%
Mon Coal
Strategy - 1
Strategy - 2
Strategy - 3
Strategy - 4
?%
?%
IPO - ?%
Mon Copper
Mon Iron
ЭМГЛ
Holding Company and Subsidiaries
Good governance Research and Development
Resource Management
51% 75% 90% 100% 100%
• to make strategic mining deposits available as commercially
feasible
• IPO / listing of the subsidiaries
• Reserve fund establishment
• Certain amount of revenue should be invested back to the mining
sector
• The Board of Directors consists
of the CEOs of both the holding
company and its subsidiaries in
order to discuss general
operation of the group.
Board of Directors
Share holding -
ЭМГЛ
№ Name Type of deposits
1. Тavan tolgoi Coking coal /7.4 billion.t/
2. Nariin Sukhait Metallurgical coal /417 million.t /
3. Baganuur Thermal coal /600 million.t/
4. Shivee Ovoo Metallurgical coal /2.8 bilion.t/
5. Mardai Uranium
6. Dornod Uranium
7. Gurvan bulag Uranium
8. Tumurtei Iron ore /229.3 million.t/
9. Oyu tolgoi Gold, Copper, molybdenum /6.5
billion.t ore/
10. Tsagaan Suvarga Copper, molybdenum /250.7 ton/
11. Erdenet Copper, molybdenum /5.2 million.t
of copper, 114 million.t of
molybdenum/
12. Buren khaan Phosphorus /192.2 million.t/
13. Boroo Gold /70 ton/
14. Tumurtein ovoo Zinc and lead /7.5 million.t of ore/
15. Asgat Silver /7.3 thousand.t of silver, 227.4
thousand.t of copper,/
Strategic mining deposits of Mongolia
A deposit with size that may have a potential impact on national security,
economical and social development of the country at national and regional levels
or that is producing or has a potential of producing more than 5 percent of total
GDP in a given year.
Definition:
ЭМГЛ
Ensure the state involvement in infrastructure projects
Ensure reliable operation of production
Increase the value of mining projects
Improve interrelation between infrastructure developments
Increase the government share of dividend
Implement environmentally friendly policies
Introduce advanced equipment and technologies
Sync the company operation with the Government policy
Integrated planning of infrastructure projects
Decrease duplication of activities , costs and risks
Positive effect on addressing the funding of the project
Integrated mining , infrastructure and energy project
Ensure the government involvement in energy resource projects
Ensure reliable operation of production
Increase the efficiency of the government's share of the dividend
Improve interrelation between infrastructure projects
Reduce duplication of investments, costs and risks
Increase the value of the project
Ensure coordination of and interrelation between energy sources
Reliable energy sources
General planning,
investment and
implementation of the
strategic deposits based
infrastructure projects
2. Road
3. Laboratory
4. Water Supply
System
5. Export Port
6. Others
1. Energy
Continuous and reliable export of mining products
Reliable, high quality, timely and comprehensive services
Control over mining product export
Implementation of the legislation and practical results
Sustainable source of incremental revenue
Environment-friendly and no negative impact on the
environment development solutions
Reliable and prompt export of products
Ensure the state involvement in road projects
Reliable and safe transportation of products
Increase the government share of dividend
Improve interrelation between the infrastructure projects
Create market competition
Reduce operating costs and risks
Continuous product transportation
Have an impact on the international market price policy
Integrated reliable, high quality and timely services
Quality control over mining product and exports
Set international ISO and ASTM standards
Determine the correct market prices
Find sustainable source of incremental revenue
Internationally recognized testing
Ensure the state involvement in water supply projects
Ensure reliable operation of production
Research on water resources, its proper use and conservation
No negative impact on the environment and environment-friendly
policies
Water conservation, pollution, proper use and re-use
Water facilities built using advanced equipment and technology
Proper management of rational use of water resources
Ensure the mining project contractor’s involvement in the
railway project
Implement a policy on manufacturing value-added products
Ensure the implementation of the Industrial Park Project
Real opportunity to supply our products on the global market
Interrelation between mining and infrastructure projects
Infrastructure Projects at Strategic Mineral Deposits
ЭМГЛ
MON-IRON MON-COPPER
Projects
MON-COAL
Erdenes Mongol LLC is carrying out feasibility studies and relevant surveys to implement Mon –Copper, Mon - Iron and Mon –
Coal projects in phases in order to process mining commodities extracted from the major mineral deposits in Mongolia and
produce and export value-added products.
As part of these projects, the processing plants to concentrate commodities extracted from the copper, molybdenum, iron and
coking and thermal coal deposits as well as plants to manufacture final products and the necessary infrastructure will be built.
• Total copper ore production: 1,8 million
tons
• Mon-Copper project: 700 thousand
tons
• To build a copper processing plant at
Erdenet, Oyu tolgoi, or at the
Sainshand Industrial Park -
hydrometallurgical
• Total production: 800 million tons of
iron ore.
• Mon-Iron project: production of 500
thousand.t of processed iron or steel
• Coal handling and preparation plant at
Tavan tolgoi
• Build processing plants for semi-coke,
Coal to Liquid and Coal to Gas plants
at Baganuur and Shivee Ovoo brown
coal deposits.
Thank you…
|Erdenes MGL LLC|
|Jigjidjav Street 6, Khoroo 1, Chingeltei District,
Ulaanbaatar, Mongolia
|Tel: (976) 7011 0735|
|Fax: (976) 7011 0725|
|E-mail: info@erdenesmgl.mn|
|Website: www.erdenesmgl.mn|