Power supply for the OT mine was the hottest topic at the recent international Mongolian Power 2011 conference. Mineral Resource and Energy Minister D.Zorigt revealed that he had strongly suggested during negotiations on the agreement two years ago that the power supply issue should be taken up simultaneously with start of major construction at the site, but the OT administration had insisted they would need a power plant only in 2016, after construction of the mine was finished. Zorigt regretted that the Government had been unable to exert more pressure on the investing company, which has led to the present need to change the schedule.
He continued that location of the power station will be decided soon. It will be the largest power source in the Gobi region, and it is not yet clear if it will be built by Erdenes-Tavan Tolgoi, or Oyu Tolgoi LLC, or a third company. Nor can a decision been taken on whether the power station will operate on a Build-Operate-Transfer or a Build-Own-Operate basis until Parliament discusses the issue.
All mining deposits such as Tavan Tolgoi, Shivee Ovoo, Baganuur, Aduunchuluun in Dornod province, Hotgor in Zavkhan province and Chandgana in Khentii province will need electricity, and the money to build power stations will be sought from every possible source, such as international banks, financial institutions, foreign and domestic investors, and business entities ready to work under the concession law. This law provides for public-private partnership, particularly in infrastructure and community development.
Prophecy Resource, a Canadian company, has asked for permission to build a thermal power based on the Chandgana coal deposit which has 1.2 billion tons of reserve. Its representative told the conference their plan was to supply 600 mw to Mongolians and 3,600 mw to China.
D.Byambasaikhan, CEO at Clean Energy LLC, gave details of its wind turbine project. The company has so far installed 5 automatic measurement stations, each 51 meters high, to study wind conditions. It plans to produce 168,500 kw of power per year.
There were presentations from ING Bank, GIZ and DLA Piper on the advantages of public-private partnership which is profitable for both sides.
The most immediate project to come up, with construction likely to start this year, is the Thermal Power Plant No. 5, to meet the energy needs of Ulaanbaatar, especially its eastern part. The Government has allocated money for the project in the 2011 budget but several details are yet to be approved.
B.khaliun