The Mongolian Mining Journal

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.

Mongolia growth rate may fall by one-third N. Zoljargal , Governor of Mongol Bank, has said the nation’s growth rate may slow by a third this year from a record 17 percent in 2011 as inflows of foreign investment cool. “It’s a reality check for us,” he said in an interview in Hong Kong, expressing the hope that the pace of expansion may be a “very healthy” 11 to 12 percent.

The big one in this season of awards As the season for the MMJ awards gets into its own, it seems a good time to talk about another award -- The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, more commonly called the Nobel Prize in economics. This was established in 1968 and is not part of the original group of awards set out in the dynamite tycoon’s 1895 will.

Bauma China Shanghai, China, 27-30 November, 2012 Bauma China Shanghai, China, 27-30 November, 2012

Looking forward to the Mining Journal Awards with a look back The first Mining Journal Awards were presented on December 24, 2010 at Monet restaurant in Central Tower. It was a glittering social event but its main importance lay in the fact that it was the first time a non-official entity -- more specifically, a magazine -- was honoring the bests in the mining sector.

Zimbabwe engineer helps Mongolia’s gold diggers Development workers do not necessarily have to come from the West. A mining expert from Zimbabwe is helping improve the lives of small-scale miners in Mongolia.

Herders file complaint with IFC against World Bank aid to OT A group of Mongolian herder households filed a complaint demanding just compensation for the impacts of Rio Tinto’s Oyu Tolgoi copper and gold mine and its associated facilities in the South Gobi desert. Despite the OT Project’s numerous problems, the World Bank’s International Finance Corporation (IFC) and Multilateral Insurance Guarantee Agency (MIGA) are considering a financing package of US$900 million in loans and up to US$1 billion in political risk insurance.

Revealed treasures draw superpowers to frigid Arctic field With Arctic ice melting at record pace, the world’s superpowers are increasingly jockeying for political influence and economic position in outposts previously regarded as barren wastelands.

New technology to process copper without smelting A plant is under construction in the once-thriving copper-mining area of the Northern Cape that will make use of a new low-power South African-developed technology that is able to process stranded copper ore concentrates into 98%-pure copper crystals without the need for any smelting.

Voyager to resume drilling at KhulMorit this year Voyager Resources plans to resume diamond core drilling in its 80% owned KhulMorit project later this year to focus on copper porphyry.

“It is not true that all State entities run at a loss” Ts.Nanzaddorj, the new head of the State Property Committee, tells O.Khostsetseg of the tasks ahead and privatisation plans.

Mines and Money London, UK, 4-5 December, 2012 Mines and Money London, UK, 4-5 December, 2012