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Uranium exploration, mining and cooperation with local communities in Mongolia Ms.Munkjargal Tserendorj IAEA Vienna, Austria 09.12.2015 MONATOM State Owned Company

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Page 1: MONATOM · PDF fileMONATOM State Owned Company . Content: MONATOM ... Dornod and Mardai deposits. Gurvanbulag deposit were ready to mine in

Uranium exploration, mining and

cooperation with local

communities in Mongolia

Ms.Munkjargal Tserendorj

IAEA

Vienna, Austria

09.12.2015

MONATOM

State Owned Company

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Content:

MONATOM

State Owned Company

Historical Review of Uranium in Mongolia

Company Profile

Current state of uranium mining projects;

“Social reaction” towards uranium mining

Legal environment

Cooperation with local communities

Conclusion

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HISTORICAL REVIEW

MONATOM

State Owned Company

Uranium exploration in Mongolia started in the middle

of 1940s. Between 1970 and 1990, under a bilateral

agreement between the People’s Republic of Mongolia

and the Soviet Union, specialized geological surveys

were conducted by the Geological Reconnaissance

Expedition of the Soviet Ministry of Geology.

Soviet Union geologists worked on uranium mining in

Dornod and Mardai deposits. Gurvanbulag deposit

were ready to mine in that period, however, as the

external condition were stopped.

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MONATOM

State Owned Company

Known Recoverable Resources of Uranium 2013

Countries Tonnes U Percentage of the world

Australia 1,706,100 29%

Kazakhstan 679,300 12%

Russia 505,900 9%

Canada 493,900 8%

Niger 404,900 7%

Namibia 382,800 6%

South Africa 338,100 6%

Brazil 276,100 5%

USA 207,400 4%

China 199,100 4%

Mongolia 141,500 2%

World total 5,902,900

Source: http://www.world-

nuclear.org/info/nuclear-fuel-cycle/mining-of-

uranium/world-uranium-mining-production/

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MILLING “MonAtom” State-owned Company was established in 2009.

EXPLORATION PROSPECTION

MONATOM

State Owned Company

COMPANY PROFILE

Main objective:

Prospecting uranium and other radioactive minerals,

Identify uranium estimated resource, and perform high

standard survey on the territory of Mongolia in

accordance with Minerals law, Nuclear Energy law of

Mongolia and increase its reserve,

Participate independently or collaborate with other legal

body on exploration and exploitation activities of

uranium, and provide database on uranium studies.

MINING

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MONATOM

State Owned Company

SCOPE OF ACTIVITIES OF MONATOM

Geological survey, define reserves, increasing reserve, exploitation of

Uranium and other radioactive mineral resources in the territory of Mongolia;

Exploitation of uranium and radioactive minerals moreover set up its

enrichment industrial technique, elaborate its economic feasibility study, and

start supervising its industrial activity step by step;

Export uranium and other radioactive products in accordance with

international convention, agreements, and Mongolian laws and regulations for

the use of peaceful purpose;

Secure control of minimum recognized dose possible for environment

negative impacts from uranium production, mining barrage security, with

highly achieved restoration of environment and develop responsible mining:

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MONATOM

State Owned Company

RECENTLY IMPLEMENTING PROJECTS

State-owned “Mon-Atom” company is working to collaborate with domestic and international investors

on projects such as prospecting, extracting, and processing of uranium and other radioactive minerals

in accordance with related law, regulations and implement State attendance,

“Dulaanuul”, “Zuuvch ovoo” projects – “AREVA” group's

invested “Cogegobi” LLC has done prospecting of

Uranium.

“Kharaat”,”Khairkhan”, “Gurvansaikhan” and ”Ulziit”

projects – accurate geological studies and technology

experiments has done.

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Dornod deposit is located in Dashbalbar soum.

The Mineral Resources Commission, former Soviet

Union, approved and recorded 16467.0 thousand

tons of ore and 28868.0 tons of uranium reserves

at 0.154% grade on С1+С2 category.

Gurvanbulag deposit is located in Bayandun soum.

Emeelt Mines LLC holds the exploration license.

8580.3 tons of uranium reserves at about 0.162%

grade in the major orebody on B+C category were

approved by the Minerals Expert Council.

MONATOM

State Owned Company

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MONATOM

State Owned Company

Nemer deposit is located 730 km northeast of

Ulaanbaatar. In 1988 the Mineral Resources

Commission, former Soviet Union, approved 2528.0

tons of uranium estimated reserves at about 0.146%

grade on С2 category.

Mardai deposit is located 6 km northwest of

Dornod deposit. Adamas Mining LLC holds the

exploration license. It has 1104.0 tons of uranium

reserves classified С1+С2 with the 0.160%

concentration grade.

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MONATOM

State Owned Company

Ulaan Polymetallic deposit is located in

Dashbalbar soum. Xin Xin LLC holds the

exploration license. 270.0 tons of uranium

reserves were approved at 0.145% grade on

С1+С2.

Dulaan Uul deposit is located in Sainshand town,

Ulaanbadrakh soum. Coge Gobi LLC owns the

exploration license. 6259.87 tons of uranium

reserves were approved by the Minerals Expert

Council.

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MONATOM

State Owned Company

Zuuvch Ovoo deposit is ocated in Sainshand

town, Ulaanbadrakh soum. 54639.9 tons of

uranium reserves on В+С category were

approved by the Minerals Expert Council.

Khairkhan deposit is located in Ulziit soum.

Gurvansaikhan LLC holds the exploration license.

8406.0 tons of uranium reserves at 0.071% grade

on В+С category were approved by the Minerals

Expert Council.

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MONATOM

State Owned Company

Kharaat deposit is located in Dundgobi aimag.

Coge Gobi LLC holds the exploration license. and

7288.0 tons of uranium reserves at 0.026% grade

on В+С category were approved by the Minerals

Expert Council.

Gurvansaikhan deposit is located in Ulziit soum.

Gurvansaikhan” LLC holds the exploration license.

4250.1 tons of uranium reserves were approved by

the Minerals Expert Council. The Situ Leaching (ISL)

Technology is appropriate for mining the deposit.

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MONATOM

State Owned Company

Ulziit deposit is located in Sukhbaatar aimag.

Gurvansaikhan” LLC holds the exploration license.

7843.9 thousand tons of ore and 3075.7 tons of

uranium reserves at 0.036 % on C category 2611.8

tons out of which are available for ISL Technology.

Narst deposit is located in Dornogobi aimag

(Urgun Soum). 1000 tons of uranium reserves

at 0.040 % on P1 category.

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MONATOM

State Owned Company

SOCIAL REACTION TOWARDS URANIUM MINING

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MONATOM

State Owned Company

LEGAL ENVIRONMENT FOR URANIUM

MINING IN MONGOLIA

State Policy on Radioactive Minerals and Nuclear

Energy

Nuclear Energy Law

Law on Regulating Nuclear Energy Law

Law of Mongolia on its nuclear weapon free status

Minerals Law

Law on prohibition of importing, transit and export

of hazardous waste

Tax law

Investment Law

Law on licensing of business activities

Subsoil law

Company Law

Law of Mongolia on water

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MONATOM

State Owned Company

SOCIAL RESPONSIBILITY PROGRAMMES

AREVA’s aim is to achieve profitable growth in a socially and

environmentally responsible manner.

Focus areas:

• Community support and open dialogue with local people;

• Environmental protection;

• Health safety & security and radiation protection;

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AREVA MONGOL - PROJECTS

MONATOM

State Owned Company

2015 Jun: Dulaan-Uul, Zuuvch Ovoo and Umnut deposits obtained

Exploitation license;

2013 Nov: Mitsubishi Corp. acquires 34% equity interest in AREVA Mongol;

Oct: AREVA Mongol & Mon-Atom signed a shareholder

agreement;

Feb: Registration of Zuuvch ovoo resources estimated at

54.390 metric tons;

2011 Aug: Registration of Dulaan Uul resources estimated at 6.270

metric tons;

Jun: Successful in Situ Recovery test at Dulaan Uul site;

2010: Discovery of low-grade high tonnage Zuuvch Ovoo deposit;

2009: Cooperation agreement with Mongolia’s NEA

2007: Discovery of Dulaan Uul deposit;

2006: Cooperation agreement with Mongolian Ministry of Industry & Trade

2002: Launch of drilling activities in the Gobi desert

1997: Preliminary geological reconnaissance in the Gobi.

AREVA has introduced its projects in

Mongolia since 1997, via its subsidiaries

COGEGOBI and AREVA Mongolia

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MONATOM

State Owned Company

COGEGOBI holds 22 exploration licenses covering a total of

more than 6,000 km2 in the vast sedimentary basin of the

Dornogobi and Sukhbaatar Provinces and 3 exploitation

licenses at Zuuvch Ovoo, Dulaan Uul and Umnut deposits:

9 licenses in the Sainshand basin;

13 licenses in the Dariganga and Erdenetsagan regions;

120 employees:

Mon-Atom and AREVA Mongolia companies are working on the establishment of joint-venture

company, 34% - share was owned by Mon-Atom.

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MONATOM

State Owned Company

OPEN DIALOGUE AND COMMUNITY

SUPPORT FOR LOCAL PEOPLE

Objectives:

• Conducted stakeholder mapping in

Dornogobi aimag to determine the

expectations of its key stakeholders

and engage with them on the

requested issues.

Methods of engagement

National authorities Meetings, seminars

Local authorities Local Cooperation Council Regular

coordination meetings

Local communities and

herders

Local Cooperation Council

Families visits

Biennial community survey

Workshops

Local events

Mongolian Scientific

community

Scientific seminars on ISR, Uranium and

Nuclear Technology

General public External newsletter, press articles, TV

programs, seminars and websites

Civil Society

Organizations

Meetings

Since 2006, AREVA Mongol and

COGEGOBI have spent about 651.000

USD for local development projects.

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MONATOM

State Owned Company

COMMUNITY SUPPORT FOR

EDUCATION

COGEGOBI has regularly supported it since 2005. By

2011, the school had become one of the best

establishments in Mongolia. A special support was

given to support to furnish the new boarding

quarters in the school of the Ulaanbadrakh Sum and

scholarships to outstanding local students.

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The renovation of Zuunbayan inter-soum school’s playground

was entirely funded by AREVA Mongol in 2013. And in 2014,

a 3 years MoU was signed with Zuunbayan cultural center to

fund the complete renovation of its building over 3 years of

time.

MONATOM

State Owned Company

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MONATOM

State Owned Company

On November 2014, AREVA and the “Actions

Mongolie” association donated to the hospital of

Dornogovi aimag a full laparoscopic unit and a new

set of equipment for the ophthalmological diagnostics

room.

As a result, Dornogovi has the distinction of being the

first among all aimags to be able to administer

professional laparoscopic surgery.

COMMUNITY SUPPORT FOR HEALTH

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MONATOM

State Owned Company

COMMUNITY SUPPORT FOR

HERDERS

Emergency relief assistance can also be provided in the case of

natural disasters and extreme weather events, frequent in

Mongolia.

Livestock reconstitution AREVA Mongol and COGEGOBI have

implemented livestock reconstitution program since 2007.

Zuunbayan bag has over 450 families in total out of which 55

are herding families with over 12.1 thousand heads of

livestock.

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MONATOM

State Owned Company

In 2014, eight herders living in the vicinity of Areva

exploration sites visited in KATCO. They learned how drillings

and ISR technology are used with respect to environment and

the development of actions towards communities.

In 2015, AREVA Mongol purchased meat and milk for

consumption from local herder families.

185 sheep and 19 cows in total were

purchased from 23 herder families

of Ulaanbadrakh sum and

Zuunbayan bag of Sainshand sum.

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MONATOM

State Owned Company

AREVA Mongol supports local cultural events, and

Mongolian traditional sports such as knucklebones

shooting and national wrestling.

Supporting herders to improve the health of their

livestock.

AREVA Mongol has initiated the project to control

animal health issues in the area of mining operation.

It includes a Veterinary Intervention Unit (with one

expatriate and two Mongolian veterinarians)

providing a complimentary direct veterinary

assistance to local herders

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MONATOM

State Owned Company

Approximately 50 people from Dornogobi

and Sukhbaatar aimags were employed by

COGEGOBI in 2014.

National Drilling Companies are strongly

encouraged to participate for their

explorations.

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MONATOM

State Owned Company

ENVIRONMENTAL PROTECTION

Environmental issues are subject to monitoring at the very highest management level

and the goals are to:

Culture

• share environmental policy and related operating targets across all sites;

• mobilize employees on major environmental challenges as well as raise awareness and promote

good practices;

• comply with regulatory requirements. This is a prerequisite in the countries in which AREVA

operates and, where possible, the group goes further than the regulations in force.

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MONATOM

State Owned Company

For each exploration license, AREVA puts in place

an Environmental Monitoring Program to keep

track of the climatic and human impacts on the

area where exploration is being done. Each

program is reviewed and approved by the

Mongolian government. So far, exploration

activities have had no impact requiring corrective

actions.

Environmental

Monitoring

Fauna

Flora

Soil

Water

Air

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MONATOM

State Owned Company

SAXAUL RECULTIVATION PROJECT

The Saxaul is a desert tree which plays a significant role

against desertification. Through its deep rooting system it

stabilizes the desert soil. It is also one of the only sources of

feed for desert cattle during winter. In order to preserve the

biodiversity of Gobi desert, AREVA Mongol launched a

program to prepare saxaul seedlings and replant them with

the involvement of local communities. 5 families were trained

on the preparation of saxaul tube seedlings. AREVA Mongol

bought the seedlings from the sum residents and planted

1,500 saxaul seedlings around the mudpit that used to store

exploration drilling mud and 450 seedlings on the Dulaan Uul

camp.

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MONATOM

State Owned Company

CONCLUSION

Government of Mongolia is putting more emphasis on the uranium and other

mining sectors for the economic development of Mongolia.

Uranium mining is completely new field for the country.

Although, importance of the mining industry is becoming bigger and bigger, there

are still a big challenge to gain a community trust. One of the best example for

this is that uranium industry. There are lack of knowledge, technology and human

resources etc…

After Fukushima accident has significantly changed public attitudes toward nuclear

energy and uranium mining in Mongolia, eventually, public acceptance is becoming

more positive direction on the uranium mining development.