Mineral Resources Sector 2025 – II Open forum is taking place today with attendance of the officials from Ministry of Mining, Ministry of Finance, Ministry of Industry and Mineral Resources Agency. Participants of this forum have been sharply criticizing the state involvement in the mining sector being high.
Glogex LLC CEO have has emphasized the obstacles Mongolia encountered on the way to be recognized at the coal market:
- Mongolia waited for 70 years to enter the coal market. Tavantolgoi deposit was discovere back in 1934 and only after 70 years it has chance to be recognized as one of the biggest coal mines. Chinese coal market is opening up for us enormous opportunities. We initiated Coal Mongolia summit in 2011 with vision to enter this big market with a slogan ‘Mongolia to become biggest player in the world coal market’. At that time over 1500 investors came to the event and the price for coking coal was USD 400 per ton. Mongolia was a shining star. We have lost our opportunity to become biggest player in the coal market. Now we are facing another big challenge. We have been delaying the Tavantolgoi project with nonsense political debates of gauges. We might have to wait for another 10 years for the next opportunity to come up. The more delays with the agreement with consortium the closer Mongolia is to being bankrupt.
Will the coal prices go up in near future?
Analysts are being pessimistic with their estimates that coking coal prices are not to be attractive until 2020 with excessive supply. We need to grab on the opportunities at the moment. Coal is widespread mineral throughout the world. We must understand that we are not the only ones facing problems; the whole world is facing the downturn at the coal market. For instance, Peabody has licenses to several deposits in Mongolia, but still no mine is developed on those yet, their value has sunk. It is not only Mongolian companies are struggling. Everywhere companies are concerned over the market. Geopolitical competition is happening. If we succeed with Tavantolgoi project we might be able to become number one or two at the coking coal market.
You have mentioned that politicians are creating obstacles. Which party or whom exactly are you directing your critics?
Although I am member of DP our members at the State Great Khural are exercising too much populist approach. They are not creating any stability in the sector. I have a right to critique my party members. Today Speaker Z.Enkhbold and Minister A.Gansukh are discussing of backing up from their decisions.
We had a chance to hear opinion of D.Damba, CEO of the Mongolian Mining Professional Engineers Association.
- FDI is clearly depending on how Mongolia is to resolve the issues with Tavantolgoi deposit. PErsonaly I see M.Enkhsaikhan as one of the proper candidates to lead this project. He has done huge amount of work on the study alone. From the side I see him as the most competent project leader. He is laying the proper grounds for further development of mega projects in Mongolia. But he is facing so many obstacles.
What obstacles exactly?
I want to say to other politicians to stay away from his way. Mega projects are very sensitive. We must understand that if this project is to be used for different purposes Mongolia will suffer, not M.Enkhsaikhan. There is no good in replacing him with other person. There is no proper candidate for this job.
Mineral Resources Sector 2025 – II Open forum is taking place today with attendance of the officials from Ministry of Mining, Ministry of Finance, Ministry of Industry and Mineral Resources Agency. Participants of this forum have been sharply criticizing the state involvement in the mining sector being high.
Glogex LLC CEO have has emphasized the obstacles Mongolia encountered on the way to be recognized at the coal market:
- Mongolia waited for 70 years to enter the coal market. Tavantolgoi deposit was discovere back in 1934 and only after 70 years it has chance to be recognized as one of the biggest coal mines. Chinese coal market is opening up for us enormous opportunities. We initiated Coal Mongolia summit in 2011 with vision to enter this big market with a slogan ‘Mongolia to become biggest player in the world coal market’. At that time over 1500 investors came to the event and the price for coking coal was USD 400 per ton. Mongolia was a shining star. We have lost our opportunity to become biggest player in the coal market. Now we are facing another big challenge. We have been delaying the Tavantolgoi project with nonsense political debates of gauges. We might have to wait for another 10 years for the next opportunity to come up. The more delays with the agreement with consortium the closer Mongolia is to being bankrupt.
Will the coal prices go up in near future?
Analysts are being pessimistic with their estimates that coking coal prices are not to be attractive until 2020 with excessive supply. We need to grab on the opportunities at the moment. Coal is widespread mineral throughout the world. We must understand that we are not the only ones facing problems; the whole world is facing the downturn at the coal market. For instance, Peabody has licenses to several deposits in Mongolia, but still no mine is developed on those yet, their value has sunk. It is not only Mongolian companies are struggling. Everywhere companies are concerned over the market. Geopolitical competition is happening. If we succeed with Tavantolgoi project we might be able to become number one or two at the coking coal market.
You have mentioned that politicians are creating obstacles. Which party or whom exactly are you directing your critics?
Although I am member of DP our members at the State Great Khural are exercising too much populist approach. They are not creating any stability in the sector. I have a right to critique my party members. Today Speaker Z.Enkhbold and Minister A.Gansukh are discussing of backing up from their decisions.
We had a chance to hear opinion of D.Damba, CEO of the Mongolian Mining Professional Engineers Association.
- FDI is clearly depending on how Mongolia is to resolve the issues with Tavantolgoi deposit. PErsonaly I see M.Enkhsaikhan as one of the proper candidates to lead this project. He has done huge amount of work on the study alone. From the side I see him as the most competent project leader. He is laying the proper grounds for further development of mega projects in Mongolia. But he is facing so many obstacles.
What obstacles exactly?
I want to say to other politicians to stay away from his way. Mega projects are very sensitive. We must understand that if this project is to be used for different purposes Mongolia will suffer, not M.Enkhsaikhan. There is no good in replacing him with other person. There is no proper candidate for this job.