Altan San Securities - Mongolia Investment

MPRP faction meets

        On Monday, the Mongolian People's Revolutionary Party's faction at Parliament held its meeting.
According to its head D.Lundeejantsan, a proposal were heard on possibilities for open-pit coal mining in Tavantolgoi deposit in Omnogobi aimag and establishment of mining and energy complex on the basis of the deposit in order to utilize it as an instrument for solving urgent issues of the country.

         Tavantolgoi deposit exploitation is on the focus. In drawing a particular attention to this issue, the Government of Mongolia has deployed a working group led by the first Vice Premier to study infrastructure in southern Gobi. However, the faction members agreed to consolidate their positions related to the exploitation of the deposit without waiting for the solution of the aforementioned issues.
        The lawmakers supported a version put forward by a working group headed by Kh.Badamsuren MP. According to the working group's study, the first part of the deposit will be put into operation in 2010, the second part in 2011, and the whole coal mining is expected to put into use in 2012. Tavantolgoi deposit consists of five parts. Extractions have been launched in Ukhaatolgoi and small Tavantolgoi. The large Tavantogloi is available for the direct exploitation. Since it will be open-pit mining, heavy investments are hardly required. The deposit's reserves and exploitation versions are discussed without waiting for the Government submits the issue. Proposals and versions put forward will be presented to the Government.
Faction members hold that Tavantolgoi will be a financial source for implementing goals of the government platform on overcoming the economic difficulties and distribution of "Bounty of Homeland" of MNT 1.5 million to citizens. Tavantolgoi's reserves are estimated at 6.4 billion tons of coal.
As for the Oyutolgoi deposit, the Government will continue the negotiations next week, Lundeejantsan said.

Source: Montsame

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