Kh.Narankhuu: Mining Site of Tavantolgoi Trans Might Be Transferred

Mar 27 • Business, Economy, Government, Mining • 494 Views • No Comments on Kh.Narankhuu: Mining Site of Tavantolgoi Trans Might Be Transferred

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We are speechless if Russia brings out the issue of Asgat during the visit of PM to Russia

We got views of Mr. Kh.Narankhuu, Minister of Industry and Commerce.

Prime Minister noted that Tavantolgoi would be taken into state ownership 100 percent. As a result of negotiation, 4 percent was left to Energy Recourses.

It was difficult to directly take the licenses from Energy Resources, which acquired licenses and invested according to laws of that time. It was necessary to be flexible towards the issue. Tavantolgoi has great resources of 6.4 billion. According to latest estimation its resource reached over 7 billion. Resource of cocking coal can be found in the midst of the site. There are 2 or 3 sites that have guesstimated resource outside the core. One of them is Ukhaa khudag left to Energy Resources. The part, which is cocked 10 times expensive than ordinary coal, has been transferred 100 percent to state ownership.

But there is a suspicion over Ukhaa khudag that it is the most resource-rich part?

Well, there will be a same suspicion if we left the part taken into state ownership to Energy Resource. It will be clear which one is resource-rich according to the geological database.

The Government acquired 93.6 percent of Tavantolgoi via negotiation. But 4 percent has been left to Energy resources. Who owns the remaining share?

“Daitsuki”, Japan-invested company, “Tavantolgoi trans” /Small Tavantolgoi/ which has 51percent participation and “Pushin” company have licenses at Tavantolgoi.

At which part?

At the center of the part, confirmed by industrial grades.

Does it mean that they possess cocking coal site?

Yes. They mine 200-300 thousand tones coal a year, exporting some and keeping others for local needs.

Will you consider their licenses?

The Government directed us to formulate proposals on how to deal with foreign companies and those with local participation.

Then you might take licenses from these companies?

We can’t say so, however issues might be dealt with through ways we dealt with Energy Resources. There could be a way to transfer licenses from center to borders or draw back licenses if they are obtained via illegal ways. We’ll see the issue from many angles.

It is said that amendments to Minerals law are “gifts” of PM to Russia during his visit.

51 percent is a form of enforcing state participation. In other words it strengthens Mongolia’s position in strategically significant deposits. The 50/50 agreement on Asgat deposit is in compliance with the current law. They demanded to make it 51 percent while they have no legislation for more than 50 percent and get suspicious when we try to amend the law.

What kind of issues will be discussed during the PM’s visit on November?

Russia is interested in investing in uranium deposits. Before 1990, we jointly used Mardai deposit. Maybe we would discuss on whether to carry it out again.

How about Asgat?

We are speechless because our issue, submitted to the Parliament, is on break. Russia may talk about Asgat. We have no other way than explaining the real situation.

It was mentioned in the draft law about golden share. What is it?

In case Government doesn’t invest, it will acquire golden shares. It is a share with rights to veto principal decisions.

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