STRATEGICALLY SIGNIFICANT MINERAL DEPOSITS OF …...Ministry of Mineral Resources and Energy of...
Transcript of STRATEGICALLY SIGNIFICANT MINERAL DEPOSITS OF …...Ministry of Mineral Resources and Energy of...
Presenter: G.TEMUULEN
Deputy Director of “Erdenes MGL” LLC
ULAANBAATAR, 2010
STRATEGICALLY SIGNIFICANT MINERAL DEPOSITS OF
MONGOLIA
Agenda:
• About Erdenes MGL
• Strategic Deposits
• Oyu tolgoi copper & gold deposit
• Tavan tolgoi fossil coal deposit
• Shivee ovoo brown coal deposit
Erdenes MGL’s mandate• Represent the Government interest in strategic
deposits;• Hold mineral licenses of and develop deposits
explored with governing funds;• Manage assets in deposits of strategic importance
upon the approval from the Parliament and Cabinet;
• Select strategic investors in above deposits;• Provide advisory services
100% state-owned Established in February 2007
ABOUT ERDENES MGL
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LIST OF STRATEGIC DEPOSITS
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1 Tavan tolgoi Fossil coal Umnugobi, Tsogttsetsii 6,420 million tonnes coal
2 Nariin sukhait Fossil coal Umnugobi, Gurvantes 125.5 million tonnes coal
3 Baganuur Brown coal Ulaanbaatar, Baganuur 600 million tonnes coal
4 Shivee Ovoo Brown coal Gobisumber, ShiveeGobi 646.2 million tonnes coal
5 Mardai Uranium Dornod, Dashbalbar 1,104 tonnes at 0.119% U3O8
6 Dornod Uranium Dornod, Dashbalbar 28,868 tonnes at 0.175% U3O8
7 Gurvan bulag Uranium Dornod, Dashbalbar 16,073 tonnes at 0.152% U3O8
8 Tomortei * Iron Selenge, Khuder 229.3 million tonnes at 51.15% Fe
9 Oyu tolgoi Copper, gold Umnugobi, Khanbogd 2.7 billion tonnes of ore, 25,4 million tonnes of copper , 1028 tonnes of gold
10 Tsagaan suvarga * Copper, molybdenum Dornogobi, Mandah 10.64 million tonnes oxides at 0.42% Cu and 0.011% Mo, 240.1 million tonnes sulphides at 0.53% Cu and 0.018% Mo
11 Erdenet Copper, molybdenum Orkhon, Bayan-Ondor 1.2 billion tonnes at 0.51% Cu and 0.012% Mo
12 Burenkhaan * Phosphor Khubsugul, Alag-Erdene 192.24 million tonnes at 21.1% P2O5
13 Boroo Gold Selenge, Bayangol 24.5 thousand tonnes at 1.6g/tonn Au
14 Tomortein ovoo * Zinc Sukhbaatar, Sukhbaatar 7.7 million tonnes at 11.5% Zn
15 Asgat * Silver Bayan-Ulgii, Nogoonnuur 6.4 million tonnes at 351.08g/tonn Ag
No Reserves & ResourcesDeposit name Type of mineral Location
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Demand for coal and copper is increasing strongly in Asia
Source: Copper Vision 2020; IEA WEO
North America Western Europe
Latin America
World coal and copper demandMillion tons
Asia
China
2,92,6+1%
1,10,9+3%
2,72,3+3%
3,63,4+1%
2,61,8
2008 2015
+5%
0.0
2008 2015
0.0+6%
0,80,8+0%
201520080,40,5
2008 2015
-2%
7,35,1
+5%
3,42,4+5%
2008 2015
CopperCoalCAGR
DEPOSITS OF STRATEGIC IMPORTANCE
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OYU TOLGOI DEPOSIT OVERVIEW
• 2,7 billion tonnes of ore•25.4 million tonnes of copper• 1028 tonnes of gold, 5144 tonnes of silver
Reserves
• 600 kilometers south of capital city, Ulaanbaatar• 80 kilometers to Chinese borderLocation
•Erdenes MGL LLC • Ivanhoe Mines Ltd.•Rio Tinto International Holdings Ltd.
Investor
• All infrastructure issues (electricity, railroad, roads, water, etc.) need to be addressedInfrastructure
•Open pit and underground mines•Potential mine life of minimum 50 years at 55 tonnes/year
of ore processing capacityMine Details
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Oyu Tolgoi – The largest copper deposit in Asia
Source: Metal Economic Group
7,4
7,6
Erdmin Sxew
Lookout Hill
Qulong 10.4
Aynak 11.0
Reko Diq 24.4
Oyu Tolgoi 25.4
ReservesMt copper contained
Copper contentPercent
0.46
0.68
1.04
1.56
0.42
1.01
Mine
Mongolia, underground mine, feasibility study
Pakistan, open pit, feasibility study
Afghanistan,open pit, pre-production
China/Tibet,n/a, reserves development
Mongolia, underground mine, reserves development
Mongolia,open pit, production
2009 2010 2011 2012
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 2051
2052
2053
2054
2045
2046
2047
2048
2034
2035
2049
2050
2039
2040
2041
2042
2043
2044
2025
2026
2038
2027
2028
2029
2030
2031
2032
2033
2013
2014
2015
OYU TOLGOI PROJECT SCHEDULE
2022
2023
2024
2037
2036
2016
2017
2018
2021
2019
2020
-10000
0
10000
20000
Project Release
Power Plant Construction - First Power
Production Shaft #2
Open Pit Pre-strip
1st Unit Power Start (60MW)
Process Facilities Construction
Plant Commission
Open Pit Initial Feed to Plant
Plant Capacity100 ktpd
Plant Expansion150 ktpd
Hugo North Lift 2 Ore Hugo South OreHeruga Ore
Total Ore Processed$3000M
$-2000M
$1000M
$2000M
$4000M
$-1000M
REVENUE VS COSTS
Underground Pre-production
Lift 1 Produciton
Lift 2 Produciton
Hugo South Produciton
Heruga Produciton to 2077
Open Pit Production
Shaft #3 Complete
Cummulative Cashflow
Plant Ramp-up
$10000M
$20000M
$-10000M
C UMM
UL A T I V E C A S HF LO W
COSTS
REVENUE
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OYU TOLGOI INVESTMENT AGREEMENT
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- Investment Agreement concluded in October 6th, 2009. - In full effect since March 31st2010.- Largest copper deposit in Asia
Benefits:
Biggest mining project in Mongolia will be implemented
Economic growth from the substantial revenue sources
Regional infrastructures will be developed in Gobi region
TAVAN TOLGOI DEPOSIT OVERVIEW
• 6.4 billion tonnes of coal, of which:• 1.8 billion tonnes of coking coal• 4.6 billion tonnes of thermal coal
Reserves
• 540 kilometers south of capital city, Ulaanbaatar• 270 kilometers to Chinese border• 400 kilometers to the nearest railway station
Location
• All infrastructure issues (electricity, railroad, roads, water, etc.) need to be addressedInfrastructure
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TAVAN TOLGOI DEPOSIT
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Mining licenses: - 11943A, 11953A, 11954A,
11955A, 11956A
- 68522 hectare field owned by Erdenes MGL LLC
Coking coal quality:•-Calorific: 6500-7500 Kcal/kg•- Sulphur: 0.6%•- Ash: 10%•- Moisture: 8.5%
Thermal coal quality:•- Calorific: 4900 Kcal/kg•- Sulphur: 0.8%•- Ash: 20.1%-33.3%•- Moisture: 8.5%
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Tavan Tolgoi – The second largest coal deposit in the world
Source: Raw Materials Group
ReservesMt
CapacityMtpa
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15
14
N/A
1
N/A
30
Mine
China, open pit,prefeasibility project
Mongolia, open pit, under construction
Botswana, under-ground mine, operating
Russia,open pit, conceptual
Russia, open pit, operating
China, underground mine, operating
South Africa, open pit, operating
Tashan 3,044
Beryozovsky 3,640
Ishchinskoye 4,191
Morupule 5,080
TavanTolgoi 6,420
Shengli CM 6,600
Grootegeluk 2,780
TAVAN TOLGOI DEPOSIT OVERVIEW
Mine capacity: • Second largest undeveloped coal deposit in the world.• 15-30 million tonnes of coal per year.
Infrastructure required:• Processing plant• Power plant: 600 MW • Thermal power plant: 100 MW • Water: building a pipeline from Balgasyn ulaan nuur to
Tavan Tolgoi.
SHIVEE OVOO DEPOSIT OVERVIEW
• Indicated: 564 million tonnes of brown coal• Inferred: 82 million tonnes of brown coalReserves
• 260 kilometers south of Ulaanbaatar• 20 kilometers to the nearest city of ChoirLocation
• Located right on the rail line• Paved road access to Ulaanbaatar• Access to electricity
Infrastructure
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SHIVEE-OVOO DEPOSIT
13313A
13311A
13312A
Mining licenses: - 13311A, 13312A, 13313A
- 4293 hectare field owned by Erdenes MGL LLC
Coal quality: •- Calorific: 2700-3100 Kcal/kg•- Sulphur: 0.64%-0.92%•- Ash: 14.2%-26.1%•- Moisture: 33.16%
901A
The current project “Shivee-ovoo” was established in 1990. • - Connected to main power grid system and railway• - Capacity: up to 2 million tonne per year (1.45 million mined in 2008) • - Currently operating on 901 A mining license, 91 hectare field• - Supplies coal used by power plants of Ulaanbaatar city
Ministry of Mineral Resources and Energy of Mongolia, Erdenes MGL andState Grid Corporation of China are planning an integrated project thatcomprises a large mine-mouth coal-power complex and an electricitytransmission system to export electricity to China.
• - Shivee-ovoo coal mine: 20 million tonnes of coal per year• - Power plant: 8x600 MW• - Transmission line: 660 KV • - Project Investment required: approximately 5 billion USD
SHIVEE-OVOO PROJECT OVERVIEW
Unit 65, Diplomat 95 bldg5 khoroo, Chingeltei districtUlaanbaatar, MongoliaTel: (976) 7011-0735Fax: (976) 7011-0725www.erdenesmgl.mn
Erdenes MGL LLC