Prime Minister S.Bayar: The moment with no right to lose time (Part I)

Apr 23 • Economy, Government • 823 Views • 1 Comment on Prime Minister S.Bayar: The moment with no right to lose time (Part I)

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Prime Minister S.Bayar made press conference and answered the questions made by journalists after his working visit to People’s Republic of China.

Mongolia has huge reserve of coal, but imports petrol.

Q: What were the main outcomes of your visit to our southern neighbor?

PM S.Bayar: The main target is obvious. It is all about to bring progress, capital, equipment, technology that we are in short. My visit to China was very hectic and constructive. We saw and experienced what we need and want. What is important to us is to enter the world market, Asia Pacific region not only to one or two countries, when we realizing these mining deposits and implementing mining projects. Therefore, we studied possibilities of gaining access to sea ports. We visited to Tianjin port and signed on MOU of cooperation. That evening Zhinjou port senior officials met with us and presented their projects. Distance from Ulaanbaatar to Tianjin is 1900 km and to Zhinjou port is 1100 km. If Mongolia opens its border port of Bichigt through Choibalsan, we will have good opportunity to provide our mineral to the world. We had constructive meeting in cooperating in mining sector and producing value added products.

Moreover, we visited to a huge industrial complex of Shenhua group to extract liquid fuel from coal. This factory will be in operation in late 2009 after testing of 100 hours test operation. Mongolia has huge reserve of coal. But we import petrol. If we introduce technology to extract liquid fuel from coal, we are not only talk about profit or feasibility; we can talk about security in economy.

Mongolia has been enjoying 60 years of diplomatic relations with People’s Republic of China. I exchanged my point of views with Chinese Premier Wen regarding the development in next 60 years. Both sides have same position.

He expressed directly that Mongolia’s mineral reserve is vital to the development of the Chinese prospect, economy and especially industrial growth.

We should exploit our mineral together with world community; most priority is China, because of its vicinity. On the other hand, China has developed own unique mining technology. Especially, China has excellent experience in extracting liquid fuel from coal. China is ready to invest in this field. We were talking about enormous size of investment. In this time of recession, China is under pressure and it has lots to do internally, but it proved again that it will spare some aid, grant and soft loan to the Mongolian Government based on the mutually beneficial principle.

Mongolia has capacity to export its mineral to China, other countries and Europe through Siberia. In order to make this happen, we need stimulus. We talked about what can be this stimulus. I visited to Shivee Ovoo coal mine together with journalists. We exchanged our points of views with Development and Innovation Committee of People’s Republic of China regarding building the complex next to Shivee Ovoo coal mine. We agreed upon establishing it in late 2009. This is to establish the biggest ever power station with capacity of 20 thousand megawatt. It will supply China with energy. It is good for China and Mongolia. Also this power station is to provide Mongolia with electricity. This station would supply China, a stable and big market with hgih demand of electricity. It is not only the issue of Shivee Ovoo, we need to build power station to supply Xinjiang – Uyghur region of China, where there is big demand of energy. We have huge reserve next to this region. These projects will surely help Mongolia to strengthen its financial base and budget revenue. Also eastern part of Mongolia, namely, Dornod aimag has mining deposits with big reserve.

We have such a big opportunity, but Mongolia will be in short of skilled workers and human resource in developing its mining and infrastructure projects.

As of 2008, 220 students studied in China with the Chinese Government scholarship. We made request to increase this number, especially, to increase the Mongolian students’ number in mining, infrastructure and construction field twofold.

I invited Premier Wen to visit Mongolia in coincidence with the 60th anniversary of the establishment of diplomatic relations between two countries. We need to sign those mentioned projects during this visit. Premier Wen warmly accepted my invitation and both sides are agreed on intensifying these initiated works and talks.

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One Response to Prime Minister S.Bayar: The moment with no right to lose time (Part I)

  1. Roy Dongen says:

    This was a very fruitful visit of the Prime Minister and his delegation to China.
    From the economic and social developments in China there is a lot to learn and certainly more than from the direct northern neighbor which economy is based on unsustainable cronyism and isolationism from the civilized world and important economies.
    When the Mongolian parliament finally ratifies the mayor mining agreements on TT and OT the government of Mongolia can make its country less dependent on foreign aid and foreign loans since the latter only carry the current economic burdens to the future and future generations.

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