-Journalist L.Bolormaa opens up information regarding mega projects-
It was not that long that Minister M.Enkhsaikhan has announced that Mongolia has stepped into Mega Projects era. Since then almost every citizen of Mongolia would have heard about Tavantolgoi, Oyutolgoi, Gatsuurt, Fifth Power Plant as those mega projects are crucial for the small economies like ours as those require huge investments and quite a lot of time and effort to be implemented.
Mega projects should be open and transparent. This we heard a lot. As Editor of Mining Journal L.Bolormaa says these words are only true in theory as in reality Mongolia has deviated a lot from this principle.
During the Mongolian Business Summit 2015 L.Bolormaa opened up about three major mega projects which were not publicized at all.
Closed project #1
In 2013 Ministry of Industry and Agriculture acquired ICM project on coal liquification according to the order of then minister. The owner of the company which sold the project was advisor to the minister.
No information was released on the amount of the deal and where the proceeds went. The initial amount of the project was at EUR 2-3 billion, but now the amount reached USD 4 billion. This project is valued more than Tavantolgoi and the Parliament haven't discussed it. Main investor of the project is the BB Potsdam, German company specializing in real estate market in post soviet countries and Russia.
Project #2
Sinopec project. There was information that last Saturday representatives of Chinese side visited Mongolia to sign the agreements. No information on what the agreement is about and what benefits it carries for Mongolian side. Information is not disclosed to journalists refering to the directions goven by National Security Council. Informaiton will be disseminated at the right time. Strangest thing here is the amount of the project which totals to USD 34 billion, way much of two Tolgois, that Mongolian state is vigorously discussing.
The project foresees coal gasification and coal liquification and as a result lof this project total of 710 km gas pipes and 450 km of water pipes to be constructed, but nothing is known on the routes of those. Feasibility Study of the project has been done, while the detailed FS is not finished yet.
Project #3
Altanbulag-Ulaanbaatar-Zamiin-Uud Highway project. Important project to connect Mongolia into international road network which is to increase the transit transport inflow. Total amount of the project is at USD 10-12 billion, the number 3 times more of the Tavantolgoi project. Chinggis Land Development Group with mixed foreign and domestic investments has been established in the scope of the project. No information is on investors, how many companies it has and nothing was disclosed regarding the agreements made.
L.Bolormaa also emphasized that every project has hired advisory company services, FS done and the investments are being attracted and questioned why Parlliament haven't discussed those projects at all and suggested to have clear distinctions as to when and how the state to participate in the project.
Moreover, she questioned as to what happened during the talks of Tavantolgoi by the State since it has been submitted to Parliament two months ago for discussions by the cabinet as Minister S.Bayartsogt was saying the solutions to be quite different from what was initially proposed by the cabinet.
While all that is happening Minister M.Enkhsaikhan firmly believes that Mega Projects should be open and transparent and if those are closed they are deemed to fail. Projects of value of more than USD 1 billion are to be considered as Mega Projects and those are implemented through public and private partnership, where the state is not obliged to own a share in the project. State participation should be focused on support rather than involvement.
L.Naranbaatar, Economist specilizing in mining sector has also had his say about the projects during the Mongolian Business Summit 2015. He also introduced the projects which are to start soon.
Project #1
Areva Group of France conducted explorations for 17 years in Mongolia and received their uranium operations license recently and the project is to be implemented by French, Mongolian and Japanese joint venture. The project is not only provisions the production of yellow cake, but envisions the leverage of the metallurgical manufacture in Mongolia.
“In Erdenet copper concentrates have been produced for over 30 years, but Mongolia failed to develop smelting factories yet, as there was no solution for the use of the by-product which is Sulfuric Acid. Now with the Areva we can utilize sulfuric acid in metallurgic production."
Project #2
Khuvsgul aimag has huge phosphorite deposit, where it can be mixed with sulfuric acid to produce fertillizers which is valued at USD 600-700. This project will leverage agriculture sector a lot. In order to prepare for the project the FS for the 450 km railroad from Murun to Erdenet has been done by the private sector.
These and many other projects are lined up capable to increase the investment inflow up to USD 10-15 billion. While we are discussing the fate of Mega Projects located far from Ulaanbaatar city we might be losing opportunities and interest directed from abroad.
In conclusion, we should not be limited with only Oyutolgoi and Tavantolgoi only when talking about Mega Projects. Probably those two are only ones which are open and transparent that media, state and others are so interested in them.
-Journalist L.Bolormaa opens up information regarding mega projects-
It was not that long that Minister M.Enkhsaikhan has announced that Mongolia has stepped into Mega Projects era. Since then almost every citizen of Mongolia would have heard about Tavantolgoi, Oyutolgoi, Gatsuurt, Fifth Power Plant as those mega projects are crucial for the small economies like ours as those require huge investments and quite a lot of time and effort to be implemented.
Mega projects should be open and transparent. This we heard a lot. As Editor of Mining Journal L.Bolormaa says these words are only true in theory as in reality Mongolia has deviated a lot from this principle.
During the Mongolian Business Summit 2015 L.Bolormaa opened up about three major mega projects which were not publicized at all.
Closed project #1
In 2013 Ministry of Industry and Agriculture acquired ICM project on coal liquification according to the order of then minister. The owner of the company which sold the project was advisor to the minister.
No information was released on the amount of the deal and where the proceeds went. The initial amount of the project was at EUR 2-3 billion, but now the amount reached USD 4 billion. This project is valued more than Tavantolgoi and the Parliament haven't discussed it. Main investor of the project is the BB Potsdam, German company specializing in real estate market in post soviet countries and Russia.
Project #2
Sinopec project. There was information that last Saturday representatives of Chinese side visited Mongolia to sign the agreements. No information on what the agreement is about and what benefits it carries for Mongolian side. Information is not disclosed to journalists refering to the directions goven by National Security Council. Informaiton will be disseminated at the right time. Strangest thing here is the amount of the project which totals to USD 34 billion, way much of two Tolgois, that Mongolian state is vigorously discussing.
The project foresees coal gasification and coal liquification and as a result lof this project total of 710 km gas pipes and 450 km of water pipes to be constructed, but nothing is known on the routes of those. Feasibility Study of the project has been done, while the detailed FS is not finished yet.
Project #3
Altanbulag-Ulaanbaatar-Zamiin-Uud Highway project. Important project to connect Mongolia into international road network which is to increase the transit transport inflow. Total amount of the project is at USD 10-12 billion, the number 3 times more of the Tavantolgoi project. Chinggis Land Development Group with mixed foreign and domestic investments has been established in the scope of the project. No information is on investors, how many companies it has and nothing was disclosed regarding the agreements made.
L.Bolormaa also emphasized that every project has hired advisory company services, FS done and the investments are being attracted and questioned why Parlliament haven't discussed those projects at all and suggested to have clear distinctions as to when and how the state to participate in the project.
Moreover, she questioned as to what happened during the talks of Tavantolgoi by the State since it has been submitted to Parliament two months ago for discussions by the cabinet as Minister S.Bayartsogt was saying the solutions to be quite different from what was initially proposed by the cabinet.
While all that is happening Minister M.Enkhsaikhan firmly believes that Mega Projects should be open and transparent and if those are closed they are deemed to fail. Projects of value of more than USD 1 billion are to be considered as Mega Projects and those are implemented through public and private partnership, where the state is not obliged to own a share in the project. State participation should be focused on support rather than involvement.
L.Naranbaatar, Economist specilizing in mining sector has also had his say about the projects during the Mongolian Business Summit 2015. He also introduced the projects which are to start soon.
Project #1
Areva Group of France conducted explorations for 17 years in Mongolia and received their uranium operations license recently and the project is to be implemented by French, Mongolian and Japanese joint venture. The project is not only provisions the production of yellow cake, but envisions the leverage of the metallurgical manufacture in Mongolia.
“In Erdenet copper concentrates have been produced for over 30 years, but Mongolia failed to develop smelting factories yet, as there was no solution for the use of the by-product which is Sulfuric Acid. Now with the Areva we can utilize sulfuric acid in metallurgic production."
Project #2
Khuvsgul aimag has huge phosphorite deposit, where it can be mixed with sulfuric acid to produce fertillizers which is valued at USD 600-700. This project will leverage agriculture sector a lot. In order to prepare for the project the FS for the 450 km railroad from Murun to Erdenet has been done by the private sector.
These and many other projects are lined up capable to increase the investment inflow up to USD 10-15 billion. While we are discussing the fate of Mega Projects located far from Ulaanbaatar city we might be losing opportunities and interest directed from abroad.
In conclusion, we should not be limited with only Oyutolgoi and Tavantolgoi only when talking about Mega Projects. Probably those two are only ones which are open and transparent that media, state and others are so interested in them.