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MP L.Erdenechimeg: TT negotiations can’t be moved forward

By Ch.KHALIUN

On Monday, MP L.Erdenechimeg, chairing the working group in charge of concluding the Tavan Tolgoi negotiations, made a statement at the Government House, announcing that TT negotiations can’t be moved forward.
Last week, she visited Erdenes Tavan Tolgoi Company in Umnugovi’s Tsogttsetsii soum. As of today, the company is storing 2.3 tons of coal and is ready for exploring two tons of coal.
Coal reserves are valued at approximately 140 million USD, and will cover the company’s debt to Chinese company Chalco. The company is exporting coal by shaft, and because the road from the mine is not a heavy-duty track, transport companies are working at a loss.
Coal prices are declining day by day in the foreign market, impacting the sales of Tavan Tolgoi and Erdenes Tavan Tolgoi. According to expert conclusions, coal prices will keep dropping in the future. The TT working group concluded that it is vital to explore and transport coal at minimum costs, adding that the main factor in increasing the costs of coal is transportation. They believe that a railway should be commissioned.
MP L.Erdenechimeg said, “A big investment is not required for utilizing the TT deposit. Every coal mining company knows that. Coal can be extracted just by stripping soil. Coal is loaded to a truck and transported. Here, we need only the biggest machines and equipment; there is no need for a big investment.
“Mongolian companies are operating mines and exploring potential coal in Erdenes Tavan Tolgoi. Here, only one investment is needed, namely a railway. Railway is an efficient project. If Mongolia can own its own railroad, and Erdenes Tavan Tolgoi conducts explorations like it does today, we will profit more.”
She added, “Therefore, the negotiations can’t be moved forward. We will state the legal violations in our conclusion, together with a more efficient plan. Railroad will be the main element of the efficient plan. Mongolia needs to finalize railroad issues on our own. Head of the Cabinet Secretariat S.Bayartsogt reported that this will draw back TT negotiations. But we don’t know if the negotiations will be submitted again.”

 

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Posted by on Jun 23 2015. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

3 Comments for “MP L.Erdenechimeg: TT negotiations can’t be moved forward”

  1. Unbelievable, the clock is ticking on the attitude of people who can’t see the wood for the trees. If people don’t harness the goodwill to assist the country to get infrastructure the opportunity will be lost.

  2. Great to see experienced Mongolian politicians letting the mining industry know what is has been doing wrong all these years. Clearly mining companies have been making it more complicated than it needs to be. :-(

    “Every coal mining company knows that. Coal can be extracted just by stripping soil.”

    The definition of insanity is to do the same stupid thing time after time and expecting a different result.

    Watch this train smash……again!

  3. Congratulations obstructionists. TT negotiations have been going on for 6 years and still nothing. Now this. Who benefits other than politicians like this woman? Answer nobody. This will cost Mongolia many jobs and much money so shameless politicians like this woman can continue to remain in office. People like her care not about the people of Mongolia

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