STRATEGICALLY SIGNIFICANT

MINERAL DEPOSITS OF
MONGOLIA

Berlin, 2011

Agenda:
About Erdenes MGL
Strategic Deposits
Oyu tolgoi copper & gold deposit
Tavan tolgoi fossil coal deposit
Shivee ovoo brown coal deposit

ABOUT ERDENES MGL

Erdenes MGLs mandate

Represent the Government interest in strategic
deposits;
Hold mineral licenses of and develop deposits
explored with governing funds;
Manage
M
assets
t in
i deposits
d
it off strategic
t t i importance
i
t
upon the approval from the Parliament and
Cabinet;
Select strategic investors in above deposits;
Provide advisory services
100% state-owned
Established in February 2007
3

ERDENES MISSION AND VISION

Ourmissionistomaximizethebenefitsoftheminingsectorfor
peopleofMongoliaandcontributetothedevelopmentofthe
country.
Erdenes corporatizesthestateparticipationintheminerals
development.
Thelongtermvisionofthecompanyisbasedonasuccessfulexample
of entities that progressed from state owned enterprises to become
ofentitiesthatprogressedfromstateownedenterprisestobecome
theworldstopminingcompanieslistedonthelargeststock
exchanges.

LIST OF STRATEGIC DEPOSITS

No

Depositname

Typeofmineral

Location

Reserves&Resources

1 Tavan tolgoi

Fossil coal
Fossilcoal

Umnugobi Tsogttsetsii
Umnugobi,Tsogttsetsii

6 420 million tonnes coal

6,420milliontonnes

2 Nariin sukhait

Fossilcoal

Umnugobi,Gurvantes

125.5milliontonnes coal

3 Baganuur

Browncoal

Ulaanbaatar,Baganuur

600milliontonnes coal

4 Shivee Ovoo

Browncoal

Gobisumber,ShiveeGobi

646.2milliontonnes coal

5 Mardai

Uranium

Dornod,Dashbalbar

1,104tonnes at0.119%U3O8

6 Dornod

Uranium

Dornod,Dashbalbar

28,868tonnes at0.175%U3O8

7 Gurvan bulag

Uranium

Dornod,Dashbalbar

16,073tonnes at0.152%U3O8

8 Tomortei

Iron

Selenge,Khuder

229.3milliontonnes at51.15%Fe

9 Oyu tolgoi

Copper,gold

Umnugobi,Khanbogd

10 Tsagaan suvarga

Copper,molybdenum

Dornogobi,Mandah

2.7billiontonnes ofore,25,4milliontonnes
ofcopper,1028tonnes ofgold
10.64milliontonnes oxidesat0.42%Cu
and0.011%Mo,240.1milliontonnes
sulphides at0.53%Cuand0.018%Mo

11 Erdenet

Copper,molybdenum

Orkhon,BayanOndor

12 Burenkhaan

Phosphor

Khubsugul
AlagErdene
Khubsugul,Alag
Erdene

1.2billiontonnes at0.51%Cuand0.012%
Mo
192
24 million tonnes at
21 1% P2O5
192.24milliontonnes
at21.1%P

13 Boroo

Gold

Selenge,Bayangol

24.5thousandtonnes at1.6g/tonn Au

14 Tomortein ovoo

Zinc

Sukhbaatar,Sukhbaatar

7.7milliontonnes at11.5%Zn

15 Asgat

Silver

BayanUlgii,Nogoonnuur

6.4milliontonnes at351.08g/tonn Ag

DEPOSITS OF STRATEGIC IMPORTANCE

OYU TOLGOI DEPOSIT OVERVIEW

Reserves

2,7billiontonnes ofore
25.4milliontonnes ofcopper
1028tonnes ofgold,5144tonnes ofsilver

Location

600kilometerssouthofcapitalcity,Ulaanbaatar
80kilometerstoChineseborder

Investor

Erdenes MGLLLC
IvanhoeMinesLtd.
RioTintoInternationalHoldingsLtd.

Infrastructure

Allinfrastructureissues(electricity,railroad,roads,water,
etc.)needtobeaddressed

MineDetails

Openpitandundergroundmines
Potentialminelifeofminimum50yearsat55tonnes/year
oforeprocessingcapacity

OYU TOLGOI INVESTMENT AGREEMENT

Investment Agreement concluded in October 6th, 2009.

Benefits:

Biggest mining project in Mongolia will be implemented

Economic growth from the substantial revenue sources

Regional infrastructures will be developed in Gobi region

Create large number of new jobs

TAVAN TOLGOI DEPOSIT OVERVIEW

Reserves

6.4billiontonnes ofcoal,ofwhich:
f
f
1.8billiontonnes of cokingcoal
4.6billiontonnes ofthermalcoal

Location

540kilometerssouthofcapitalcity,Ulaanbaatar
270kilometerstoChineseborder
400kilometerstothenearestrailwaystation

Infrastructure

Allinfrastructureissues(electricity,railroad,roads,

t
t )
d t b dd
d
water,etc.)needtobeaddressed

TAVAN TOLGOI DEPOSIT OVERVIEW

Minecapacity:
p
y
1530milliontonnes ofcoalperyear.
Over3500fulltimejobs

Infrastructuredevelopmentplan:
Processingplant
Powerplant:600MW
Thermal power plant: 100 MW
Thermalpowerplant:100MW
Water:buildingapipelinefromBalgasyn ulaan
nuur toTavan Tolgoi.
3000projectworkersrequired

ERDENES TAVAN TOLGOI LISTING IPO

1st quarter of 2012 Planning list

Erdenes Tavan Tolgoi company IPO
international stock market

SHIVEE OVOO DEPOSIT OVERVIEW

Reserves

Indicated:564milliontonnes ofbrowncoal
Inferred:82milliontonnes ofbrowncoal

Location

260kilometerssouthofUlaanbaatar
260 kilometers south of Ulaanbaatar
20kilometerstothenearestcityofChoir

Infrastructure

Locatedrightontherailline
PavedroadaccesstoUlaanbaatar
Accesstoelectricity

12

SHIVEE-OVOO
SHIVEE
OVOO PROJECT OVERVIEW

ThecurrentprojectShiveeovoowasestablishedin1990.

90%stateowned,10%tradedonMongolianStockExchange
Connectedtomainpowergridsystemandrailway
Capacity:upto2milliontonne peryear(1.45millionminedin2008)
Currentlyoperatingon901Amininglicense,91hectarefield
SuppliescoalusedbypowerplantNo3and4ofUlaanbaatarcity

Ministry of Mineral Resources and Energy of Mongolia, Erdenes MGL and

State Grid Corporation of China are planning an integrated project that
comprises a large mine
minemouth
mouth coal
coalpower
power complex and an electricity
transmission system to export electricity to China.

Shiveeovoo coalmine:20milliontonnes ofcoalperyear

Power
plant: 8x600 MW
Powerplant:8x600MW
Transmissionline:660KV
ProjectInvestmentrequired:approximately5billionUSD

Erdenes MGLLLC