solving ulaanbaatar air-pollution disaster -dme...
TRANSCRIPT
Solving Ulaanbaatar Air-Pollution Disaster
-DME Solution-
Agenda
►Mongolian Economy
►Company Introduction
►DME Implementation
1
Basic facts
<Basic Information>
► Population: 2.7 mil (2010)
► Urban population: 63%
► Territory: 1.6 bil m2
► GDP: 6 bil USD
► GDP per capita: 2,000 USD
► Language: Mongolian
<Recent history timeline>
► Before 1990: Planned economy ● Integrated to COMECON economic regime.
► 1990: Free market economy ● Serious economic depression due to collapse of Soviet Union and
COMECON.
● Introduced free market economy.
► 2000: Economic growth ● Free market economy reform coupled with natural resources price
increase directs Mongolian to economic growth path.
► After 2009: Strategic projects ● Started implementation of Strategic Mineral Resource Projects with Oyu
Tolgoi (copper).
● Tavan Tolgoi (coking coal) and other project are on pipeline.
2
Mongolian Economic Growth
►Location advantage: next to the largest
commodity consumer in the world
►15 Strategic Deposits with estimated resources
valued at over $1.2 trn
►Primary growth driver will be the development
of world-class mineral deposits
►Sustained double-digit GDP growth expected in
coming years
►Oyu Tolgoi copper/gold mine is to generate $61
bln over 27 years
►Tavan Tolgoi coal mine is to operate for +200
years with an annual turnover of $1.6 bln for
the first 29 years
Tavan Tolgoi
Coking Coal Deposit
4.3 bln.t = $387 bln
Oyu Tolgoi
Copper/Gold
16 mln.t = $132 bln
Tumurtei/Others
Iron Ore
1 bln.t = $100 bln
Shivee Ovoo/Others
Brouwn coal
25 bln.t
Growth Story Unfolds
GDP Growth Estimation
0
5
10
15
20
25
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010F
2011F
2012F
2013F
2014F
2015F
2.3 3.2 3.9 5.1 4.2 5.8
7.2 7.7 9.5
11.0 12.4
5.3 7.4 6.9 7.6 7.2 7.4 8.1
9.1
11.3 10.3
12.4
2.9
5.2
11.6
16.6
20.9 22.1 21.6
17.0 18.3
22.1
24.6
Mongolia 2005 - 2015 Qatar 1989 -1999 Kazakhstan 1992 - 2002
GDP Growth: Mining will drive the economy – Is Mongolia the next Qatar?
GDP in USD Billions
2010 Qatar GDP =
$110 bln
2010 Kazakhstan GDP =
$126 bln
2025
Mongolia
GDP =
$100 bln
Source: IMF
Mongolian growth driver: Natural resources
MCS Group Overview
Overview
►Founded in 1993, MCS Group is a major private enterprise in Mongolia:
:
●Mining
●Energy, infrastructure
●Real estate
●IT, communication technology
●Food and beverage
►MCS Group has consistently been one of the top 3 taxpayers in Mongolia and employs
over 7,600 staff.
Energy Resources overview
Shareholding Structure
3
MONGOLIAN MINING CORPORATION
(Cayman Islands) (HKSE Stock Code: 975)
MCS
11.42%
Energy Resources LLC
Public Float
44.59% 43.99%
Khangad Exploration LLC
UHG Mine Baruun Naran Mine
Deposit location
Tavan Tolgoi Fault
Tsankhi Coalfield
Tavan Tolgoi SynclineSouthwest Coalfield
Borteeg Coalfield
UHG Coalfield
Ukhaakhudag SynclineBortolgoi Coalfield
Eastern Coalfield
Tavan Tolgoi Anticline
Coal Bearing Strata
Current
Mining
Area
Dalanzadgad Ovoot tolgoi
Zuunbayan 46 km 225 km
Khangy Mandula
Gashuun Sukhait
/ Ganqimaodu
Shiveehuren Ceke
Jinquan
Linhe Xixiaozhao Baotou
Hohhot
Bayan obo
Bayan hua
Mongolia
0 200
Kilometers
Planned Railway
Existing Railway
UHG
Ukhaa Khudag (“UHG”)
China
BN
30km
Ulaanbaatar Air Pollution: Situation and Reasons
►Ulaanbaatar is the most air-polluted
city.
►1 out of 10 dead people dies because
of Air-pollution.
►Main reason is raw coal consumption
in Mongolian traditional gers.
UB
Air-pollution ranking of PM10 Air-pollution contribution per each
sector
<Reference> Mongolian ger
►Ger is traditional tent-like dwelling of
Mongolian nomads.
►Now halft of Ulaanbaatar population
lives in ger district.
Ulaanbaatar Air-Pollution picture
►Summer clear day … ►… the same angle in January.
DME solution
<Main reasons>
►DME is one of the cleanest fuels.
►DME can be produced from coal.
►Gas fuel infrastructure is not
developed.
<Solution>
►Develop integrated coal gasification
complex
►Market development by DME import.
►MCS signed DME implementation
MoU with Mongolian government and
UB city authority in 2011/1/20.
Roadmap
DME Distribution network
UB ger districts / other markets
DME Import
Domestic
production
development
(liquid fuel
+
DME)
Domestic
production
~ autumn 2011 ~ 2015/2016
DME supplier
(China)
DME Transportation
Mongolian coal
Coal gasification
complex
DME Implementation: First year
►Government support:
● Full subsidy for DME appliance and fuel.
►MCS built:
● Small DME filling station.
● Procured DME-specific appliances.
● Distribution network powered by IT control
system.
►This year target: 100 households
►Actions:
● Safety regulations.
● Market development.
DME Pictures
DME Trailer
DME Distribution point
DME Heater
DME Cooker
DME Filling station