Invitation for Prequalification

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Date: August 30, 2010

Name: Prequalification for Procurement of Operator/Contract Miner for the Tavan Tolgoi Coal Deposit

Number: Erdenes TT/August 30, 2010

  1. The prequalification is being announced to international and domestic corporate entities at international level with a view to selecting an operator/contract miner for the Tavan Tolgoi coal deposit.
  1. The Tavan Tolgoi coal deposit is the world-class coking coal deposit included in the list of Mongolia’s strategically significant deposits and located in the Gobi region of southern part of Mongolia.

The prequalification is being conducted to assess capabilities of applicants interested in the procurement of the operator/contract miner pursuant to the decisions made by Mongolia’s Parliament (State Great Hural) and Government and as part of the State Property Committee’s guidance.

The corporate entity accepted for the prequalification and selected to enter into a contract as a result of the procurement shall be an operator/contract miner of Erdenes-Tavan Tolgoi company, subsidiary of Erdenes MGL LLC, to be responsible for operations in the Tavan Tolgoi coal deposit.

  1. Requirements for applicants for prequalification:
  • To be experienced in and capable of developing 15 million tons of mining output per year (including coal) and performing overburden required for developing the above amount of mining output;
  • To be a reputable operator/contract miner the principal line of whose operations is mining;
  • Applicants shall submit the financial statements and balance sheets of the past 3 years certified by audit (they may have been prepared in the financial year of the applicant’ country);
  • To have financial capabilities sufficient to commence performing the contract work and have reliable relationships to establish contacts with financial institutions that can provide project financing;
  • To be domestically and internationally known and recognized in terms of its operations and experienced in performing coal mining operations and operating mines in a country with highly developed mining industry in particular;
  • Application of advanced leading mining technology and equipment;
  • To follow international standards on environmental protection and reclamation on a regular basis;
  • To have a good track record of operational safety and meet internationally recognized standards;
  • To have highly qualified professional mining personnel and programs on training of workforce from the country where it will conduct operations;
  • To have no conflict of interests;
  • Others.*

*Note: Please see the detailed requirements for applicants in the prequalification document.

  1. It is planned to announce and deliver an invitation for the procurement/bidding to the applicants accepted for the prequalification on September 24, 2010.
  1. Interested eligible applicants can purchase the prequalification document for US$8,000 that is nonrefundable. The payment shall be made to the Client’s bank account. The information on the bank account shall be obtained from the Client at the address below. The payment can be made in cash in person or through its authorized representative. A copy of the receipt of the payment made through the bank account shall be delivered to the Client by fax or electronically.
  1. The Client can deliver the prequalification document to the interested applicant electronically at its request.
  1. Interested applicants shall deliver applications (documents) prepared in conformity with the instructions and forms stipulated in the prequalification document by mail or express mail or through their authorized representatives. The Client shall not be responsible in the case of lost mail or late submission.
  1. Applications for the prequalification shall be submitted to the Client at the address below by 4.00 pm on September 21, 2010. The Client shall be entitled to return late applications without accepting them.
  1. The Client shall not be responsible for any expense incurred in relation to applicants’ preparation and submission of applications.

10.  The Client shall decline applications of the applicants that don’t meet the criteria for assessing capabilities specified in the prequalification document and notify them thereof. The Client shall notify the applicants accepted for the prequalification of its outcome.

11.  The applicant selected for the procurement shall perform contract obligations to conduct other required operations such as mining of coal that meets quality requirements for 5-10 years (agreement shall be reached on a specific period under a contract depending on the commencement of mine operations at full capacity), overburden, and mine planning, organization, and development in the Tavan Tolgoi coal deposit.

  1. Interested applicants can receive the following information contacting Erdenes MGL at the address below.
  • Tavan Tolgoi coal deposit and its mining and geological conditions and studies thereon;
  • Structure, organization, and management of state-owned companies, Erdenes MGL, and Erdenes Tavan Tolgoi, its subsidiary to be established;
  • Profiles on Mongolia, Ministry of Mineral Resources and Property, and State Property Committee;
  • Mongolia’s related laws and regulations.

13.  Mongolia’s laws and regulations regulating the issue shall be applicable to the prequalification and procurement.

14. Address for submission of applications and contacts:

Erdenes MGL LLC

Prequalification of Operator/Contract Miner

Suite 37, Diplomatic Complex 95, khoroo/sub-district 5

Chingeltei district, Ulaanbaatar, Mongolia

Tel:                  +976-7011-0735; +976-7011-0625

Fax:                 +976-7011-0725

Email:              info@erdenesmgl.mn

Contacts:         Ch. Batbaatar (Mobile: +976-9907-1318; batbaatar.ch@erdenesmgl.mn)

Ts. Tsenguun (Moblie: +976-8820-2933; tsenguun@erdenesmgl.mn)

ERDENES MGL LLC

Ulaanbaatar, 2010

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2 Responses to Invitation for Prequalification

  1. bayilik says:

    We entered to a program as Bayilik Franchise Program. This post made help us for develop our program. We will send our program for your ideas.

  2. Namron Toi says:

    Operator/Contract Miner for the Tavan Tolgoi Coal Deposit bidding caused a stir in the international mining community. I hope the coal mined is used environmentally but I suppose that is just wishful thinking.

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