Clearing the path for developing Mongolia's resources

In April 2015, the Mining Minister of Mongolia met with members of FLSmidth to discuss the future of mining in the region and efforts being made by the administration to move forward.

FLSmidth has enjoyed a presence in Mongolia for a number of years, with an office located in Ulaanbaatar. This recent meeting was a special occasion in that the Honorable Jigjid Rentsendoo, Mongolia's Mining Minister, and Mr. Tumenbayer Choijiljav, Director General State Administration Department, were present. Members of FLSmidth, including Peter Flanagan, Sr. VP Executive Accounts; Dennis French, Country Head - FLSmidth Mongolia; Bold Otgonjav, General Manager Operations; and Tsatsaa Tsedendamba, Executive Assistant of FLSmidth Mongolia, joined with the delegation. These key meetings enabled local management to better interface with the Mongolian government and oversee local mining activities that are rapidly being developed in the region.

During the meetings, Minister Rentsendoo said the Mongolian economy depends highly on the success of its mining operations. Therefore the government is implementing initiatives to make 2015 the year of development for the mining sector. He and his ministry are working to create transparent, compatible policy and procedures, as well as a friendly market environment for investors and foreign companies who are invested in the responsible growth of Mongolia’s resources. Some of the biggest steps already taken toward reaching this goal are the revisions made in Mongolia’s minerals, petroleum and foreign investment laws.

Involved in a number of important mining development projects within the country, this meeting allowed the FLSmidth team to discuss status and how to build better relationships for combined and continued success. These projects include:

  • Oyu Tolgoi Expansion – Currently, the Mining Minister is leading government negotiations with Oyu Tolgoi
  • Tavan Tolgoi – A 30-million tons per annum (mtpa) coal washing and material handling project expected to be approved, pending resolving ownership of the railroad to the border
  • Erdenet Mining Corp – 35 mtpa copper mine modernization and expansion project where FLSmidth will first conduct an independent study

Dennis French said, “We see a bright future for Mongolia, and Minister Rentsendoo will be very influential in advancing these key mining projects.”

After the Ministry meetings, FLSmidth participated in separate meetings with the COO of Tavan Tolgoi, who heads their existing coal mines; and then the COO of Energy Resources, who heads the existing UHG coal washing plant. Energy Resources is one of three members of the consortium that won the tender for Tavan Tolgoi and will be responsible for the expansion of the existing plant.

CONTACT: Dennis French