ERDENET MINING CORPORATION TALKS ABOUT COOPERATION WITH INDUSTRY MINISTRY

The two sides signed a policy document. The issue of sales is prioritized. EMC will be working toward ensuring its procurement from domestic producers. Our company has been supporting local producers from Orkhon Province. Our domestic procurement is increasing from year to year. There are around ten domestic producers in Orkhon and they all cooperate with EMC. The second issue planned under the memorandum is to develop EMC’s Maintenance and Mechanical Plant into a mining equipment and parts factory with support from the Industry Ministry. One of the goals of EMC authorities and engineers is to build a copper concentrator. We are close to fulfilling our dream together with the ministry.

What measures will first be taken under the memorandum?

The Industry Minister became acquainted with the activities of Hutni Projekt Frydek-Mistek LLC’s coke production and cast iron processing factory, and Vitkovets Group’s steel processing plant during his visit last year to the Czech Republic. Authorities of Vitkovets Group are going to pay a visit to Mongolia soon. This will be the first project.

What percentage of EMC’s procurement does domestic production make up? 

According to our agreement with Orkhon Province, we need to purchase 30 percent of our raw materials from domestic companies. However, this year’s agreement is set to be 35 percent. We will be purchasing more from domestic companies when Mongolia’s equipment production industry develops in the future.

The Cabinet made a decision to build a copper concentrator in Bor Undur. What would EMC’s support look like? 

There is everything in Bor Undur, including water, infrastructure, roads, railroad, and energy. Because it is closer to Oyu Tolgoi’s mine for transporting copper concentrate, Bor Undur was chosen. The state is also aiming to provide support to the fluorite industry. This location has the potential to become a region with a chemical and metallurgical complex in the future.
EMC will cooperate on this issue. We will probably have to discuss how many shares will go to Oyu Tolgoi, Tsagaan Suvarga, and EMC for the cooper concentrator, and determine if the stake will be the state’s or not. The EMC will be focusing on supplying copper concentrate. Mongolia’s mining sector is close to deep processing and producing finished products.

What would you say was the biggest development at EMC last year? 

In 2015, we did expand our ore processing by six million tons, which means that we are now capable of processing 32 million tons of ore per year. This was a big investment and a big expansion. We also opened a steel ball factory in order to cut factory expenses. As a company with social responsibility, we opened the Erdenet Medical Center that started its activities in treatment and diagnostics. This was a good project for the health issues of Mongolians.

Source: ubpost.mn