Coal & Metals Mongolia 2016 underlines mining sector development

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  • May 09,2016
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Representatives from the mining sector, including mining companies, domestic and foreign investors, businesses, the Mining Ministry and professional associations, discussed investment in the mining and industrial sectors, and exchanged views on development trends in the mining sector, during the sixth Coal & Metals Mongolia 2016 forum, held from May 6 to 7 at the Corporate Hotel and Convention Center. The forum initiator and founder of Glogex LLC L.Naranbaatar presented the opening remarks at the event. Minister of Mining R.Jigjid presented a speech on legal changes made to the mining sector and talked about possibilities for investing in the nation’s mining sector. Minister R.Jigjid emphasized that the Oyu Tolgoi copper and gold mine is successfully operating and the underground mine expansion is ready to launch. The minister said, “Now it is time for Mongolia to improve the mining sector’s competitiveness, increase industrial productivity, and expand the internal economy.” He said that it is important to “increase railway infrastructure, improve reliable energy resources and resolve the issue on transit transportation.” The minister added that the government will focus on these issues and provide support through tax policies. Minister R.Jigjid called on investors to work with Mongolia. Following the minister’s presentation, Minister of Mongolia M.Enkhsaikhan delivered a speech titled, “Coal and Energy: Lessons”. He talked about implementations of projects such as Tavan Tolgoi, Tavan Tolgoi Power Plant and Shivee-Ovoo. Minister M.Enkhsaikhan said, “Populists and parliamentarians don’t understand that time, money and market are intense competitions. They don’t know that the economy weakens due to their decisions. I see Shivee-Ovoo as the project that will bring profits in the future. Investment efficiency is crucial in implementing any project. For the Tavan Tolgoi project, we estimated that the price for a ton of coal would stand at 80 USD, but the project didn’t succeed. The mine is located the nearest to the biggest coal consumer and still has its advantages, but we don’t know when we will profit from the project.” During the forum, general director of China’s Shanxi Coking Coal Group presented a speech on China’s coking coal reserves, the Chinese market, competitiveness, and future trends for coking coal prices. He also talked about possibilities for cooperation between Mongolian and Chinese coking coal companies. Shanxi Coking Coal Group, which owns the biggest coking coal deposits in China’s Shanxi Province, has 28 factories with the capacity to wash 120 million tons of coal annually, and explores and sells approximately 200 million tons of coal per year. This year, the Minetech exhibition and trade fair was organized under the Coal & Metals forum. A total of 25 mining sector representatives presented speeches at the forum, while over 80 entities displayed and promoted their products and services to visitors.