Benefits following coal invade national security

Jan 14 • Companies, Energy, Infrastructure, Mining • 672 Views • No Comments on Benefits following coal invade national security

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During last weekend there was nothing to watch on televisions. The only interesting thing was the issue whether constructing railways in Mongolia is right or wrong. Though everyone would agree with “Who knows if it is right or wrong, just confused”. At first, almost all television channels broadcast construction of railways connecting to China by Energy Resources is an invasion to national security. Then soon after, Energy Resources corrected itself almost on channels. That is why Mongolian people do not know where to go.

Logically, Energy Resources borrowed MNT 150 billion in order to strengthen its coal deposit. Meanwhile Mongolian Government blocked off claiming “To construct heavy industry complex in Sainshand”. Plus, railways crossing Mongolia would be constructed. Since the company concerned about how to repay the borrowed money, it didn’t consider the national security.

We got positions of Parliaments members on this issue. D.Enhbat: This issue is related to lack of general plan of Mongolian railways

MP D.Enkhbat: This issue is because of our Ministry of Road, Transport and Construction which operates in line with the agreement concluded with Russia. If Mongolia decides to construct the two railways, Energy Resource can do this. If it decides to construct only one, such issue arose due to lack of transparency of procedure technology.

Q: It is said that Energy Resource is trying to invade the national security.

MP D.Enkhbat: It is not because it is related to China or Russia, rather it is wrong it would invade the national security. Thus it is time to issue integrated state policy and goal. I think the Government and the Parliament should approve this issue strategically. Therefore roads and communications must be extended with both of them. However it should be under discretion of a single law firm. Instead it should be the state’s railroad. Particular part of Mongolian railroad could be constructed by Energy Resources but not be owned as monopoly. Plus, our country should have an integrated railroad network, not dependent upon foreign nations.

MP E.Bat-Uul: I told you from the beginning of its approval

MP E.Bat-Uul: I said mineral resources would bring about a catastrophe. It is a competition between private companies. And it is not proper for the state to get involved in it. If it lasts long like this, both may harm the national security.

Q: -Then, is it wrong to construct additional railroads in Mongolia?

MP E.Bat-Uul: People talk about details like whether to construct railroad or not. This issue has become the one on which business groups fight over. This is very dangerous.

MP Ya.Batsuuri: National security is more important than profits

MP Ya.Batsuuri: It is right for Sainshand to have railroads. Our country shall become economically higher-developed if we construct the railroad. That is why we support it. Main industrialization has operated in Erdenet last century. Then the next reconstruction must be Sainshand. Today Mongolian people depend on only one market. Herders and salespeople in our province know well. When they take raw materials to China, Chinese buy them below market values. Similarly, if we export mineral resources to China, our country will be fully dependent on Chinese economy. Thus, if we construct railroads horizontally to export raw materials to the third country, it will create competition in the market. Also monthly remuneration of over 300 thousand staff engaged in quarrying shall increase up to USD 3000.

Q: Is it possible?

MP Ya.Batsuuri: Sure. Erdenet enterprise pays 68 percent tax to Mongolia and minimum wage of its staff is USD 1 thousand. Such old-fashioned entity pays USD 1000, and whilst current plant will give at least USD 3000. It is a world standard. Let’s put aside Energy resource issue. I would highlight one thing “National security is more important than gaining profits”.

MP H.Badelhan: It is good that those, who always talk politics, speak about other theme

MP H.Badelhan: I think it is proper to give the issue of constructing railroads to Energy Resources. How the company distributes the products in the future is not an issue, it is their business. I agree with construction of industrial complex in Sainshand. What is most important is that no crude coal should be exported.

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