British mining companies getting into Mongolia early
First publishedon www.AggBusiness.com
The Association of British Mining Equipment Companies (ABMEC) will lead a high-profile mission to the 4th Mongolia Mining Exhibition, taking place in Ulaanbaatar, Mongolia 10-12 April 2014.
With the GDP of Mongolia varying between 11% and 17% growth in recent years, mining is a key driver, and landmark projects are preparing for production. The country is rich in natural resources and ideally situated just north of resource-hungry China. According to the National Statistical Office (NSO) preliminary estimates, the mining sector accounts for approximately 20% of the GDP, and nearly 90% of the country’s exports.
The giant copper/gold project Oyu Tolgoi (OT); is experiencing hampered production, by the ongoing debate over government ownership and royalties. However, the risks are as prominent as the potential, with the mine set to produce some 450,000tonnes of copper and 330,000ounces of gold/year when in full production. In a statement, Erdenes Oyu Tolgoi, 34% shareholder of OT remained committed to its feasibility study for the underground development which is due to be delivered by Rio Tinto in Q2, 2014.
Tavan Tolgoi (TT), the massive coal mine in the south, close to the border with China, consists of six fields, five of which are controlled by Erdenes Tavan Tolgoi (ETT). These five deposits contain 1.836 billion tonnes of proven coal reserves and a resource that could be as large as 7.4 billion tonnes once exploration is complete. In order to transport TT’s coal, a major railroad is required; and once in place it would create enormous opportunities where resources exist and can be mined economically, but a route to market is lacking.
Four ABMEC companies will exhibit at Mongolia Mining: Friction Marketing Company, Joy Global, MMD Sizers and Reilloc Chain. Their expertise lies in surface and underground mining systems, processing equipment, chains and supplies for OEMs.