Oyu Tolgoi prefers road transport

Oct 20 • Business, Companies, Infrastructure • 622 Views • 1 Comment on Oyu Tolgoi prefers road transport

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Chad Blewitt, CFO of IMMI LLC, provided presentation. It planned to mine 100 thousand tons of copper annually within 4 years. The company explained that it really doesn’t necessary to have railroad to export product to abroad, using case of its iron deposit in the West Australia. Over 1200 km long road was built to mine that deposit. 220 million tons of product is transported on that road annually. But railroad is 800 km long but transports only 0.6 million tons of loads in 28 carriages.

Nearest market for Oyu Tolgoi is China and its needs only 90 km of road. Therefore, it is not necessarily to have railroad to transport copper to China. According to Mr. Blewitt 120-140 dump trucks are enough to handle such transportation.

National Industrial Park – Sainshand

National Industrial Park – Sainshand is under discussion recently. In doing so, legal environment is important. “Concept of National Industrial Park – Sainshand” was presented by Mr. Ch.Ganbat, adviser to the Minister for Roads, Transport and Urban Development. Mongolian Government is planning to establish National Industrial Park at Sainshand in accordance with its National Strategic Policy. The policy was developed in two different timing 2007-2015 and 2006-2021. According to the IMF study of 2008, if Mongolia correctly determines its development strategy, it will become one of the leading 5 nations of Asia. Sainshand project includes processing and smelting factory based on coal and copper. Its location is ideal and infrastructure is well developed. Chinese, Japanese and South Korean architectures expressed their willingness to take part in the project.

GDP can reach $8000-12000

Mr. Konstantin Polyunin, President of Boston Advisory Group, reported its group research result to the participants. It has two models: first is mining – export, second is process – export. These two has different effect on GDP, first is directly connected with the commodity market price and if the price fall, GDP will fall in parallel, but the second is different, allowing space to choose when to sell and stock. Its research is much similar with the study of the National Development and Innovation Committee. According to Mr.Konstantin findings, Mongolian GDP can easily reach $8000-12000 in next four years.

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One Response to Oyu Tolgoi prefers road transport

  1. Nice, Yourwords will be the Hotin the world!!

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