The Mongolian Mining Journal

A rash of mining accidents in China is raising safety and environmental concerns On the first day of April, six coal miners died after an explosion in Jilin province in northeast China, where only 3 days earlier twenty-eight miners had perished.

Fears grow that Rio Tinto’s smelter in New Zealand may close as aluminum prices drop The government of New Zealand offered Rio Tinto a short-term subsidy to help pay for electricity for its aluminum smelter in Tiwai Point in southern New Zealand.

“Growth must not be mistaken for true development” Known for his incisive analysis and independent views as well as for the no-nonsense way in which he expresses them, Byambasuren Dash, the 17th Prime Minister of Mongolia, tells N.Ariuntuya what he thinks of what is presently happening in the mining sector.

Cozy relationship in China between government and state mining businesses is scarring the environment The case of China presents a unique set of obstacles to protect the environment from mining activities. State companies retain strong ties to the government and continue to provide many of the services the state previously supplied.

Report released Monday indicates spiraling costs of Oyu Tolgoi project A report released by Turquoise Hill on Monday estimates that the cost of second-phase development of its Oyu Tolgoi copper and gold project at $5.1 billion. This equals what the company had estimated the year prior.

SouthGobi Resources blames suspension of licenses for fourth quarter losses Reuters reports that SouthGobi Resources Ltd’s revenue plummeted to $53 million from $179 million the year prior.

Consensus needs time, says President We give below a summary of President Ts.Elbegdorj’s opening address at the public discussion of the draft Minerals Law in the Citizens’ Chamber.

Centerra reports higher output, lower costs at Boroo Centerra Gold has reported that gold production at the Boroo mine in the fourth quarter of 2012 was 29,878 ounces, compared to 12,866 ounces in the same period of 2011. The production increase of 12,614 ounces is a result of processing higher grade ore from Pit 6 and the addition of 7,486 ounces of production from the heap leach operation which resumed in October 2012.

Complex challenges face Mongolia’s coal industry The government of Mongolia recognises both that exploitation of its mineral wealth is essential if the economy is to grow and that it must establish a sustainable way forward if it is to avoid the problems that have affected several other resource rich developing countries in the past.

Oyu Tolgoi produces first concentrate Turquoise Hill Resources has announced that its 65%-owned Oyu Tolgoi copper/gold project has now produced its first copper/gold concentrate after it processed first ore through the concentrator in early January.

“150 Articles in the draft need careful review” Dr. G.Tsogt, Vice President of Industry and Project Implementation at Mongolyn Alt, answers questions by N.Ariuntuya on the draft mining law.

The new law seeks to give “a new direction” to mining Ts.Davaatseren, Honoured Industrial Worker and Head of the Mining Department at the Minerals Authority, was advisor to the working group that prepared the draft mining law. He answers N.Ariuntuya’s questions on the draft and explains the thoughts behind several controversial provisions in it.

Mongolia Minerals targets 2014 for first production Fluorspar developer Mongolia Minerals is targeting a production date of late 2014 for its Dai Uul project in Central Mongolia.

Altan Rio intersects 1.77 gt gold over 8.05 m at Chandman-Yol Toronto-listed Altan Rio Minerals has announced results from the recently completed drilling programme at its 100%-owned Chandman-Yol copper-gold porphyry project, including 8.05 m at 1.77 g/t gold only 16.30 m from surface, at the recently discovered Takhilt target.

No E-TT IPO in 2013 The Tavan Tolgoi coal project is facing financial difficulties and an initial public offering for the mine originally scheduled for this year will not go ahead, its chief executive has said. Ya.

Mongolia tapping Shenhua to replace Chalco Mongolian ambassador Ts. Sukhbaatar has said his country is reaching out to China’s largest coal producer China Shenhua Energy in an effort to break a deadlock over the terms of the souring coal supply deal with Chalco. The impasse has led in part to Tavan Tolgoi being unable to continue to pay for the logistical operations of transporting and exporting the coal to China, he said.

Draft mineral law “breaks new ground” Ch.Unurbayar, Legal Policy Advisor to the President of Mongolia, explains the principles behind the draft mineral law while answering questions from the Mongolian Mining Journal.

Good start to discussion on draft law, as inputs pour in The importance attached to the discussion of the Draft Mineral Law on January 18 was obvious from the fact that the venue, a meeting room on the 3rd floor of Blue Sky Tower, was full half an hour before its scheduled start at 9.30 am.

Incorrigible corruption As if two quotes as epigraph are not enough, I begin the text of the column with yet another, this one Mongolia-specific: “Mainstream media can’t stop fixating on a ‘corrupt’ (is there really any other kind?) government and the (yawn) Oyu Tolgoi negotiations.” My apologies for not being able to attribute this, but I cannot recollect where I read it, though it was quite recently.

Mongolia’s moment What has been going on in Mongolia is unique, and it has been on my mind ever since it began. What’s important, however, is that we focus on what this means on the street.