COOPERATION POTENTIALS IN CLEAN COAL SECTOR:

MONGOLIA – JAPANMONGOLIA JAPANCLEAN COAL DAY IN JAPAN 2013 INTERNATIONAL

SYMPOSIUM

Rentsendo Jigjid

SYMPOSIUM

Rentsendo Jigjid,State Secretary, Ministry of Mining of Mongolia

5 Sep 20135 Sep 2013Tokyo, Japan

CONTENT

Current situation of Mongolian Coal sector

Policy issues of the sector

Cooperation potentials in the coal sector: 

– Dry coal separator technology– Dry coal separator technology

– Semi cokes

Future plans

COAL SECTOR OF MONGOLIA: BASIC FIGURES

• Geological resources: 173.3 billion tons.

• Reserves: 21.5 billion tons.

• Total of 15 basins, more than 300 occurrences.

• Newly proved reserves : 4.9 billion tons (as of 2012).

• Total production in 2012 ‐ 31.1 million tons.

• Export 20 5 million tons• Export ‐ 20.5 million tons.

• Total of 828.5 billion MNT ($590 mln) contributed into State budget

COAL SECTOR OF MONGOLIA: BASIC FIGURES

3500032994 31139

COAL SECTOR OF MONGOLIA: BASIC FIGURES

20000

25000

30000 25253

18241

22526 20500

Production

5000

10000

15000 1060713326

51237551

Export

0

5000

2008 2009 2010 2011 2012

• Around 60 companies are currently operating in this sector:

Energy Resources LLC, Tavantolgoi JSC, MAK LLC, Qinhua‐MAK‐Nariin sukhait LLC,

Southgobi Sands LLC, Erdenes Tavan Tolgoi, Baganuur, Shivee Ovoo, Bayanteeg,

Mogoin gol,, Hunnu Coal LLC, MoEnCo LLC, Chingisiin har alt LLC, etc.,

• 20 of them are coal exporters.

NUMBER OF STAFF AND EQUIPMENTS

Total workforce: 9530 persons

NUMBER OF STAFF AND EQUIPMENTS

Of which: Female 1773 persons

Foreign 164 persons

Health and safety related planned expenditures 31361.93 mln.tug

Total expenses in medical examination 673.68 mln tug

Total number of workplaces 3979

Total number of equipments 1936 pcs

About 80% of all equipments used in coal mines are manufactured in USA, Japan, South Korea, PRC, including brands such as Caterpillar, p g pLiebherr, Kawasaki, Hitachi, Hyundai, Hino

DOMESTIC COAL CONSUMPTIONCoal supplies to power stations and households are provided by public and private

sector coal producers.

Coal consumption is shown as follows:p

Agriculture 0.1%

Utility services, household

consumption9.4%

Other

Transport &communication

0.8%

0.1% 9.4%

Manufacturing& construction

3%

Thermal power stations

79%

PROSPECTS OF COAL INDUSTRY 2010-2025 /thous.tons/

Balance 2011  2012  2013  2014  2015  2020  2025 

P i ’ d 349 910 061 106360 11 1 0 13000 0 1 000 0Power stations’ need 5349.5  5910.5  7061.5  106360  11717.0  13000.0  15000.0 

Industry, construction 299.2  324.0  348.4  373.0  397.6  521.0  630.0 

Transport, communications 144.0  147.0  150.0  153.0  156.0  171.0  210.0 

Agriculture 16.0  20.0  24.0  28.0  32.0  52.0  60.0 

Households, utility services 520.0  525.0  530.0  535.0  540.0  565.0  610.5 

Processing industries 500.0  600.0  700.0  800.0  900.0  1400.0  1600.0 

Central region 6828.7  7526.5  8813.9  12525.0  13742.6  15709.0  18110.5 

Rural demand 806.0  814.0  822.0  830.0  838.0  878.0  900.0 

Export demand 25000.0  30000.0  33000.0  40000.0  50000.0  65000.0  75000.0 

TOTAL 32634.7  38340.0  42635.  53355.0  64580.0  81587.0  94010.5 

PRODUCTION AND EXPORT PROJECTIONPRODUCTION AND EXPORT PROJECTION

100,000

70,00080,00090,000

40 00050,00060,00070,000

20,00030,00040,000

2010 2011 2012 2013 2014 2015 2020 20250

10,000

Total production 25,344 32,634 38,340 42,635 53,355 64,580 81,587 94,010Export 16,635 25,000 30,000 33,000 40,000 50,000 65,000 75,000Internal consumption 7,344 7,634 8,340 9,635 13,355 14,580 16,587 19,010

GOVERNMENT POLICY ON COAL SECTORGOVERNMENT POLICY ON COAL SECTOR

In relation to regulatory frameworkIn relation to regulatory framework

• To ensure efficient implementation of set policies, a review of related laws,l d l ti id li d t d d h ll b d t k f f thrules and regulations, guidelines and standards shall be undertaken for further

enhancement and alignment with adopted policy concepts.

I l ti t l tIn relation to coal reserve management

• Consultations are underway with mining companies to seek the optimaldecisions on when and how the reserves are to be exploited depending ondecisions on when and how the reserves are to be exploited, depending onregional and geological specifics as well as coal characteristics, subject togeographical mapping of coal resources by regions.

• Certain part of coal revenues is to be dedicated to geological studiesconducted nationwide and designed to continuously increase and detail thetotal reservestotal reserves

GOVERNMENT POLICY ON COAL SECTOR

I l ti t i t tIn relation to investment

• Support domestic and foreign investments into the coal sector providing thebasis for implementation of development objectivesbasis for implementation of development objectives

• Adhere to policies of providing equitable legal and regulatory framework forboth national and international investors in the coal sectorboth national and international investors in the coal sector

• Provide support to investments and transfers of technology into development ofcoke-chemical, coal-chemical facilities, the production of value-added coalcoke chemical, coal chemical facilities, the production of value added coalproducts sought after internationally

• Provide favorable regulatory, fiscal and business environment for investors ing y,coal sector as well as the related infrastructure

GOVERNMENT POLICY IN COAL SECTOR

In relation to exports

• Efforts shall be made to bring coal processing and trading practices closer to international standards and benchmarks, as coal and coal products are the country’s key export productscountry s key export products

• Adhere to policies of limiting exports of unprocessed raw coals and promotingexports of washed coals, semi- and fully-processed finished productsexports of washed coals, semi and fully processed finished products

• In the efforts to sell coal at prices close to international market price levelsimplement new transportation and logistics policies including railway policyp p g p g y p yboosting competitiveness of Mongolian coal in import markets

• Within frameworks of single window policy in coal exports, initiate “CoalCommodity Exchange” program and put in place the required regulatoryframework

CLEAN COAL DEVELOPMENT IN MONGOLIA: LOW GRADE COAL PREPARATION UPGRADINGLOW GRADE COAL PREPARATION-UPGRADING

To develop and promote long termTo develop and promote long-term win-win program through cooperation

between Mongolia and Japanbetween Mongolia and Japan

Benefits: • Environmental: most importantly - air pollution

reduction• Social: job creations - 600-800 personnel, human

capacity increasedE i i fit & i• Economic: earning profit & income

• Technological: up to date technology transfer

COAL WASHING PLANTS - ENSURING MARKET VALUE FOR MONGOLIAN COKING COAL

Fi t C l hi l t d i

FOR MONGOLIAN COKING COAL

First Coal washing plant opened in June 2011 :

• Energy Resources – National CompanCompany

• Total Capacity: 10 mtpa• Over 150 jobs created

Сайншанд

Erdenes Tavan Tolgoi:• 2 x 15 – 30 mtpa capacity

Сайншанд

Зүүнбаян

washing plant• About 200 jobs created

ДаланзадгадТаван толгой

О й

Замын-Үүд

Оюу толгой

Гашуун

Ханги

Балгасын

Water Supply problem:• Water is in 70 km• Additional water resources

21 JUNE 2011

сухайтулаан нуурAdditional water resources needed

CLEAN COAL TECHNOLOGY IN MONGOLIA

• МАK Co• Sharin Gol Energy• Semi coke briquette

plant based on the Powerplant 2Powerplant-2

• NAKO• ENK Coking Co• ENK Coking Co• Other raw coal briquette

companiescompanies

PROJECT STARTED: FLUIDIZED BED TYPE DRY GRAVITY SEPARATORSEPARATOR

• Dry Coal Preparation technology – suitable for dry area Gobi region, MongoliaN t E i i C i d MOU ith th ETT• Nagata Engineering Co signed MOU with the ETT.

TRAINING HUMAN RESOURCES FOR CLEAN COAL UTILIZATION TECHNOLOGY TRANSFERUTILIZATION TECHNOLOGY TRANSFER

H R D l• Human Resources Development– De-volatilization process– Coal upgrading processCoal upgrading process– Gasification process– Liquefaction process

• Necessary human resources selected by the Mongolian Government• Under Government support, training conducted by Japanese

academic/research organizations and companies which haveacademic/research organizations and companies which have experiences accumulated in the fields of clean coal utilization technology.

THANK YOU FOR YOUR ATTENTION