Компаниуд
Rio Tinto paid 482 million USD in Mongolian taxes and royalties in 2024
Rio Tinto is committed to ensuring that all stakeholders benefit from the company’s success. This commitment is reflected in the way the company prioritizes the well-being of its employees, protects the environment, supports the communities in which it operates, and responsibly rehabilitates land at the end of its operational life.
TMK FAST-TRACKS MONGOLIA’S FIRST COAL SEAM GAS-TO-POWER GENERATION
Gas pioneer TMK Energy has taken a major step toward commercial gas production at its mammoth Gurvantes project in Mongolia, signing a binding memorandum of understanding (MoU) with German-backed power generation provider Jens Energie LLC to import a gas fired power plant from Germany in early 2025 at no cost to TMK.
Oyu Tolgoi LLC produced 46,884 ounces of gold in concentrate
As of the second quarter of 2024, Oyu Tolgoi LLC produced 52,531 tonnes of copper in concentrate and 46,884 ounces of gold in concentrate. The company presented its Q2 2024 performance scorecard on August 21, during which Chief Executive Officer Deirdré Lingenfelder highlighted the outstanding achievements of the reporting period.
"Tavantolgoi" JSC Presented Its Activity Report for the First Half of 2024
According to the 2024 business plan, "Tavantolgoi" JSC planned to extract 7.5 million tons of coal, export 6.9 million tons, and sell 580 thousand tons of coal domestically. As of the first half of 2024, soil stripping increased by 11.86 million m³, or 112.2%, coal production by 2.33 million tons, or 237.7%, and overburden removal increased by 13.98 million m³, or 129.9% compared to the same period of the last year.
Erdenet Mining Corporation, a National Hero
On July 10, 2021, the management and personnel of Erdenet Mining Corporation, a state-owned enterprise, received the honorary title of National Hero of Mongolia from U. Khurelsukh, the President. When the Head of the State started his first business trip to the local community from the Orkhon aimag, he handed over the award to the managers of the corporation. This is a matter of special honor. In the presidential decree, the past, the present and the future of the Erdenet Mining Corporation were described well in a few words: “Having recognized the support and endeavor of the Erdenet Mining Corporation, a construction development of the XX century, to and for Mongolia’s prosperity,
The Burning Ambition of ETT Drives investment
Mongolia’s largest coal producer, Erdenes Tavan Tolgoi, is on the fast track to expand its operations. If current expansion plans become a reality, they expect to produce 47 million tons of coal annually with projected revenues 10 trillion MNT per year by 2025. This is to be achieved through investments in capital projects over the next five years, worth an estimated 10 trillion MNT. By ramping up its operations, revenues would grow geometrically, increasing its dividend to investors and revenue to the government (currently 81.5% of the company is state owned and 18.5% by citizens and private investors). These investments are to be funded from internal revenues, bond issuances and debt. By expanding their capacity, ETT aims to take advantage of new market conditions and increase their market share in China.
Oyu Tolgoi announces Q3 2020 performance results
Oyu Tolgoi LLC has highlighted the following in its latest performance scorecard that gives key performance metrics for the third quarter of 2020, and provided an update on underground development, and its continued prevention measures on COVID-19.
• Awarded the Copper Mark for responsible production.
• Paid $201 million in the form of taxes, fees and other payments to the Government of Mongolia as of the end of the third quarter of 2020. Since 2010, Oyu Tolgoi has paid $2.8 billion in taxes, fees and other payments including VAT to Mongolian suppliers.
OT to close down earlier, earn less
The Oyu Tolgoi Technical Report 2020, uploaded on the company’s website on 28 August, sees extraction at the open pit mine – Oyut -- and at the underground mine -- Hugo North Lift 1 – ending in 2051, six years earlier than what was indicated in the 2016 report, bringing expected gross revenue from sale of concentrate down to $69.4 billion from $82.8 billion. The extraction schedule in the new report incorporates the effects of the change in the underground mine design but does not take into account the impact of the pandemic on production.
Work on developing the underground mine has not stopped despite the pandemic, though it goes on at a slower pace, especially in Shaft 3 and 4 construction. In the meantime, Turquoise Hill published a revised OT feasibility study in July and followed this up with the updated Technical Report.
New mine design makes $10 billion of OT ore unextractable, at least for now
Extraction at the Oyu Tolgoi underground mine, shown as Hugo North in maps, is likely to start in 2023 but will end sooner than expected. This is because the updated Feasibility Study recently prepared by Turquoise Hill Resources puts the extractable ore reserve there – from which will finally come the copper, gold, and silver -- at 400 million tonnes, which is 47 million tonnes or 11 percent less than earlier estimated.
According to the Oyu Tolgoi 2020 feasibility study, the lower ore reserve would mean 1.3 million tonnes less copper, 1 million ounces less gold, and 8.1 million ounces less of silver. The total value of the “lost” reserves would be roughly $10 billion. This is almost the same as the Oyu Tolgoi project’s entire cost. OT says the ore has to be left as it is in the interests of mine safety and long-term sustainable operation.
More gold from Oyu Tolgoi expected in 2021
Turquoise Hill Resources has announced increased 2021 gold production outlook, and filed an updated technical report for the Oyu Tolgoi Project (OTTR). Gold production outlook for 2021 has increased to a range of 500,000 ounces– 550,000 ounces from 450,000 ounces – 500,000 ounces, the result of initiatives that have brought the higher grade gold bearing ore from the South West pit forward into 2020 and 2021.
Way cleared for Mongolia building Tavan Tolgoi power plant
The first major mining-related headline since the ruling party’s return to power came on June 28 when Rio Tinto announced that the Government, Rio Tinto and Turquoise Hill Resources had reached an agreement on the preferred domestic power solution for Oyu Tolgoi that clears the way for the Government to fund and construct a power plant at Tavan Tolgoi. This renders infructuous the TTPP Power Source Framework Agreement signed in 2018. The parties have also agreed to conclude a power purchase agreement by next March. Construction will begin by July 1, but the target date for the commissioning of the plant has been pushed back a year to 2025, with no explanation for the delay.
Petro Matad focused on getting exploitation licence
Following the success of the 2019 Block XX drilling campaign which resulted in the discovery of oil in the Gazelle 1 and Heron 1 wells, as well as Heron 1 delivering one of the highest flow rates ever recorded in Mongolia, Petro Matad Limited, the AIM quoted Mongolian oil explorer, is now focused on securing the exploitation licence required under the production sharing contract (PSC) to enter into the development phase on Block XX. The company has been advised by the Mongolian authorities that there is support at the highest levels of Government to grant the licence, as the Government recognises that Petro Matad has been the country’s most active oil explorer in recent years and that the success of its 2019 exploration efforts is very well timed in light of the Government’s commitment to the construction of a domestic oil refinery.
Monpolymet LLC
S. Enkhtuya, CEO, writes:
That eight of the largest mining companies have come together to join the Voluntary Code of Responsible Mining has great importance in that this will enthuse other companies to join them in strengthening the case for responsible mining. It will also create pride among citizens working in mining as opening the way for raising the sector’s reputation in the public mind.
Khurgatai Khairkhan LLC
Z. Gan-Ochir, CEO, replies to questions sent by MMJ:
How does your company see the importance of joining the Voluntary Responsible Mining Code?
Mining is the main lever of Mongolia’s economic development. It accounts for one third of the state budget. If mining stops, not only will 60,000 people become unemployed, but also public services such as schools and hospitals will be seriously inconvenienced. Thus mining cannot be allowed to stop. That being the case, it is crucially important that the extractive industry operates with responsibility. This is why we are happy to be part of the Join for Responsibility initiative. We hope the campaign will go a long way in correctly explaining to the people the role and activities of the mining sector and thus giving it its deserved space in society.
Oyu Tolgoi LLC
Armando Torres, CEO, replies to questions sent by email:
Why do you consider the Memorandum of Understanding (MoU) on the Voluntary Code of Practice for Responsible Mining to be significant?
I believe this MoU lays out a strong foundation to promote best practices of responsible mining across the mining industry and streamline cooperation among major mining companies in Mongolia.
What is the next step for your company after signing the MoU?
We see it as an opportunity to share our best practices with our mining peers, broader stakeholders and the public and also to learn from others. Together with our partners of the MoU, we will support development of responsible mining in Mongolia by fostering a better understanding of what the industry needs to do in order to create mutual trust and shared responsibility for responsible mining in society.
