One of the biggest coal sector conventions Coal Mongolia 2015 is to start soon. Today investors took off to Ukhaa Khudag to see coal mine washing plant development, while at Ramada Hotel coal sector researchers and coal mining managers are having training sessions.
Tomorrow morning at 9AM the equipments and technology exhibition and the convention will take place at the SS Convention Center. The Coal Mongolia 2015 Convention is to take place for two days and over 600 domestic and foreign guests are to attend the meeting. We have met with the initiator of Coal Mongolia L.Naranbaatar.
COAL SECTOR FATE IS IN THE HANDS OF POLITICIANS
-This is the 5th year of the Coal Mongolia convention. The primary objective of this event is to bring International Investors into the coal sector of Mongolia; to introduce the most advanced, environmentally friendly technologies in coal mining sector; to create a mutually beneficial partnership that will strengthen Mongolia’s competitiveness. Have you achieved the aims of the previous four years? How many investors were attracted?
-In regards with the coal exploration and mining we have succeeded in attracting the investors. In past four years coal reserves have been increased by 20 billion tons. There are goals that we have achieved and there are some we could not achieve. The biggest aims is to penetrate into the third market, increase the coal prices and drive the coal exports. Unfortunately, until now we haven't accomplished anything yet in these directions. There are big obstacles and challenges on our way. Market slowdown, politics and stalled railway projects.
With unlocking of the Tavan Tolgoi deposit Mongolia can become the leader at the cocking coal market in Asian region.
-Every year political leaders attend the Coal Mongolia event. Is because of them who are not fulfilling their promises that goals of Coal Mongolia are not achieved?
-Not at all. It is not because of incompetence of the ministers or leaders or not because they give unrealistic promises. Their attendance to the conference is how important the event is. Minister of Mining attends the event annually, addressing the achievements of the past year and has an open discussion with the conference participants.
The lack of increasing the coal exports is more related, firstly, with declining coal market, secondly, with the stall of the railroad projects. The opening up of the Chinese railroad network to transport Mongolian coal to the ports with minimal charges have created opportunities for Mongolian side to add value for the coal and increase the profitability of the Tavan Tolgoi deposit.
This now is in the hands of the politicians whether we can use this opportunity. If the Tavan Tolgoi deal won't be stalled by the political interests of our leaders at the State Great Khural discussion the doors for the USD 4 billion investments will be opened and create over 12 thousand new jobs on the market directly and indirectly. The income from the coal exports should lincrease by USD 1.5-2 billion annually.
With unlocking of the Tavan Tolgoi deposit Mongolia can become the leader at the cocking coal market in Asian region. Therefore, coal market is right in the hands of the politicians.
-Some of the politicians are saying that Tavan Tolgoi deal will not be beneficial at this time of the market decline and want to wait until the market situation betters. Shouldn't we wait?
-Decline and increase of coal prices is cyclical. During the very first Coal Mongolia event the coal prices were at its highest and on top of its cycle and at that time we were talking about improving the infrastructure, construction of roads and railroads, establishing of the unified production and sales policy to deliver the Mongolian coal to Chinese and third markets. But we have lost the timing.
We have lost the timing for railroads construction. We couldn't decide on the financing and we were fighting over the gauge and we have lost our opportunities. Whereas, this turned out for competitors to be an advantage. For instance, Russians have connected the east Syberia with China through the railroad, while we were talking about the geo-politics and doing nothing. Russians have completed the development of the Elga coal deposit and is posing a threat to our Tavan Tolgoi deposit.
Russia, Indonesia and Australia are all competiting for the Chinese market and increasing their coal mining capacities and year by year our competitors becoming stronger, gaining more advantage in this sector. Mongolians in the meantime were fighting and holding back and loosing our privilege. Coal Mongolia conference aims to point out major issues and is directed at correcting our mistakes.
-What is the special feature of this year's Coal Mongolia, in other words what specific issues to be touched?
-Main focus of this year's event will be how to increase the competitiveness of Mongolian coal at the global market. Moreover, adding the value of coal by turning it into energy and gas and export those end products to global market as well. Next main focus will be given on the risks associated with the financing of coal projects. International speakers are invited to talk on the current trends of the coal market and issues related wirh energy and gas products from coal in China. Also interesting presentations are scheduled on the technologies to reduce the costs of coal mining by Wirtgen, dry washing technologies and so on.
We have lost the timing for railroads construction. We couldn't decide on the financing and we were fighting over the gauge and we have lost our opportunities. Whereas, this turned out for competitors to be an advantage.
-Are international coal market players going to attend Coal Mongolia 2015?
-Financial institutions such as BNP Paribas, ING, EBRD, management of the international coal market players such as Anglo American, Posco, Peabody, Shinhua, Sumitomo, Mitsui are to attend the conference. All the representatives of domestic coal mines and coal operators are to take part in the event as well. Over 85 percent of the participants are representing the executive level, ministers and decision makers. Many agreements are lined to be signed during the event.
Majority of the participants will be the entities interested in attracting investments in the mining sector, on top of the entities interested in supplying with the equipment and downstream services. Moreover, researchers and analysts who watch the market are to attend the conference as well.
One important aspect of organizing such conference in Mongolia is the opportunity for the state and private sector representatives to save on time and trips to abroad and have the advantage of holding such events here. It also gives substantial advantage for the project owners to seek for the investments at the comforts of home and less costs of finding new contacts and potential investors. Moreover, hosting of such international events drives the incomes of the hotels and other service entities.
-Thank you for your time.
One of the biggest coal sector conventions Coal Mongolia 2015 is to start soon. Today investors took off to Ukhaa Khudag to see coal mine washing plant development, while at Ramada Hotel coal sector researchers and coal mining managers are having training sessions.
Tomorrow morning at 9AM the equipments and technology exhibition and the convention will take place at the SS Convention Center. The Coal Mongolia 2015 Convention is to take place for two days and over 600 domestic and foreign guests are to attend the meeting. We have met with the initiator of Coal Mongolia L.Naranbaatar.
COAL SECTOR FATE IS IN THE HANDS OF POLITICIANS
-This is the 5th year of the Coal Mongolia convention. The primary objective of this event is to bring International Investors into the coal sector of Mongolia; to introduce the most advanced, environmentally friendly technologies in coal mining sector; to create a mutually beneficial partnership that will strengthen Mongolia’s competitiveness. Have you achieved the aims of the previous four years? How many investors were attracted?
-In regards with the coal exploration and mining we have succeeded in attracting the investors. In past four years coal reserves have been increased by 20 billion tons. There are goals that we have achieved and there are some we could not achieve. The biggest aims is to penetrate into the third market, increase the coal prices and drive the coal exports. Unfortunately, until now we haven't accomplished anything yet in these directions. There are big obstacles and challenges on our way. Market slowdown, politics and stalled railway projects.
With unlocking of the Tavan Tolgoi deposit Mongolia can become the leader at the cocking coal market in Asian region.
-Every year political leaders attend the Coal Mongolia event. Is because of them who are not fulfilling their promises that goals of Coal Mongolia are not achieved?
-Not at all. It is not because of incompetence of the ministers or leaders or not because they give unrealistic promises. Their attendance to the conference is how important the event is. Minister of Mining attends the event annually, addressing the achievements of the past year and has an open discussion with the conference participants.
The lack of increasing the coal exports is more related, firstly, with declining coal market, secondly, with the stall of the railroad projects. The opening up of the Chinese railroad network to transport Mongolian coal to the ports with minimal charges have created opportunities for Mongolian side to add value for the coal and increase the profitability of the Tavan Tolgoi deposit.
This now is in the hands of the politicians whether we can use this opportunity. If the Tavan Tolgoi deal won't be stalled by the political interests of our leaders at the State Great Khural discussion the doors for the USD 4 billion investments will be opened and create over 12 thousand new jobs on the market directly and indirectly. The income from the coal exports should lincrease by USD 1.5-2 billion annually.
With unlocking of the Tavan Tolgoi deposit Mongolia can become the leader at the cocking coal market in Asian region. Therefore, coal market is right in the hands of the politicians.
-Some of the politicians are saying that Tavan Tolgoi deal will not be beneficial at this time of the market decline and want to wait until the market situation betters. Shouldn't we wait?
-Decline and increase of coal prices is cyclical. During the very first Coal Mongolia event the coal prices were at its highest and on top of its cycle and at that time we were talking about improving the infrastructure, construction of roads and railroads, establishing of the unified production and sales policy to deliver the Mongolian coal to Chinese and third markets. But we have lost the timing.
We have lost the timing for railroads construction. We couldn't decide on the financing and we were fighting over the gauge and we have lost our opportunities. Whereas, this turned out for competitors to be an advantage. For instance, Russians have connected the east Syberia with China through the railroad, while we were talking about the geo-politics and doing nothing. Russians have completed the development of the Elga coal deposit and is posing a threat to our Tavan Tolgoi deposit.
Russia, Indonesia and Australia are all competiting for the Chinese market and increasing their coal mining capacities and year by year our competitors becoming stronger, gaining more advantage in this sector. Mongolians in the meantime were fighting and holding back and loosing our privilege. Coal Mongolia conference aims to point out major issues and is directed at correcting our mistakes.
-What is the special feature of this year's Coal Mongolia, in other words what specific issues to be touched?
-Main focus of this year's event will be how to increase the competitiveness of Mongolian coal at the global market. Moreover, adding the value of coal by turning it into energy and gas and export those end products to global market as well. Next main focus will be given on the risks associated with the financing of coal projects. International speakers are invited to talk on the current trends of the coal market and issues related wirh energy and gas products from coal in China. Also interesting presentations are scheduled on the technologies to reduce the costs of coal mining by Wirtgen, dry washing technologies and so on.
We have lost the timing for railroads construction. We couldn't decide on the financing and we were fighting over the gauge and we have lost our opportunities. Whereas, this turned out for competitors to be an advantage.
-Are international coal market players going to attend Coal Mongolia 2015?
-Financial institutions such as BNP Paribas, ING, EBRD, management of the international coal market players such as Anglo American, Posco, Peabody, Shinhua, Sumitomo, Mitsui are to attend the conference. All the representatives of domestic coal mines and coal operators are to take part in the event as well. Over 85 percent of the participants are representing the executive level, ministers and decision makers. Many agreements are lined to be signed during the event.
Majority of the participants will be the entities interested in attracting investments in the mining sector, on top of the entities interested in supplying with the equipment and downstream services. Moreover, researchers and analysts who watch the market are to attend the conference as well.
One important aspect of organizing such conference in Mongolia is the opportunity for the state and private sector representatives to save on time and trips to abroad and have the advantage of holding such events here. It also gives substantial advantage for the project owners to seek for the investments at the comforts of home and less costs of finding new contacts and potential investors. Moreover, hosting of such international events drives the incomes of the hotels and other service entities.
-Thank you for your time.