Q: Happy 30th anniversary of the factory. What were the achievements in 30 years of your history.
Ch.Ganzorig: Thank you. This year Erdenet factory reached its plan target and its implementation is 101.0%-102.0%. We can extract more copper and molybdenum than our plan. Metal extraction of copper percentage was 86.23% and molybdenum was 40.66% and it was the top result in the history of the factory.
Q: How was the profit of the factory? Are there any difficulties for Erdenet in time of world economy recession?
Ch.Ganzorig: First three quarters of year 2008, copper price was high enough. But it fell drastically in the last quarter. Average price of one ton copper price at LME was 6900 US$ and it was lower by 218 US$ than the previous year.
It is expected that total income will be 998.1 billion MNT and expense per 1 MNT will be lower than before. In year 2008, the company would have 115 billion MNT profit. It will provide 512 billion MNT to the state and local budget.
Q: How is the mining operation? How is it felt that decreasing copper grade?
Ch.Ganzorig: Erdenet has balance reserve of 1084 million tons of copper in 2007 and operates in deposit of 4.7 million tons of copper and 148 thousand tons of molybdenum. As for now if it processed 3 million copper ore, then it has reserve of over 40 years.
Q: What measures are expected in expanding production of the factory?
Ch.Ganzorig: Measures of expanding the reserve of the factory through using lower grade ore that is wasted, producing end product as copper cathode, extract metal more effectively, and modernizing factory facilities will be taken. Within this framework, it plans make investment of 530 million US$ until 2015.
Q: What is your estimation of copper price in the next year? What is your plan?
Ch.Ganzorig: Due to the accumulated copper reserve at exchanges and decrease of the Chinese consumption because of the world economy recession copper price is falling sharply. In the first half of year 2008, copper price was 8900 US$ but it is around 3000 US$ now. The growth of copper consumption in USA and China will be 2-3%. So copper price would be 3000-4000 US$ in 2009.
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