The Economics Standing Committee of the State Great Khural
(Parliament) held its meeting on September 17th, where it was discussed the
current running activity of the “Erdenes Tavan Tolaoi” state owned
company in the West and East Blocks of Tavan Tolgoi site in Umnugovi aimag,
Mongolia.

The Chief Executive of Erdenes Tavan Tolgoi LLC Mr Baasangombo ENEBISH
introduced that “The Company focused on the following three projects Coal
Mining its export and sale, Infrastructure development and its plans for an IPO
launching on domestic and international markets. The Tavan Tolgoi site is on
the first stage of its exploitation, and has many advantages such as close
located to the primary market, massive and low cost coking coal reserves, but
the infrastructure has not been developed well enough.

Currently, the coal production has started at the East Tsankhi (Block) of Tavan
Tolgoi site and we had a coal extraction of 1 million ton in 2011, and we plan
to mine 3.5 million tonne of coking coal in 2012, it is estimated to extract 6
to 7 million tonne in 2013,10 million tonne in 2014 and about 20 million tonne
in 2015.”

Further added that “The preparatory works have been completed in the West
Tsankhi of Tavan Tolgoi, if the soil removing process would be started within
this year, the coal extraction will be started in spring of 2013, hence the
output of mining would as same as the East Block, 20 million ton of coking coal
peryear. The raw coal wash and enrichment project has started and the factory
will be constructed by Australia-United States joint company. The Company has a
special exploitation license covering 68 thousand ha and the total reserve
estimated at 7 billion ton of coking coal. The water supply issue was resolved
to be CHINA brought from Saigas Ulaan Lake, but the local Administrative Office
(Umnuqovi aimacfl refused to supply, saying the Lake is protected under State
Protected Reservoir.”

Source – www.infomongolia.com