Towards development
Guidelines for the development of Erdenet Mining Corporation until 2031
For the first time over last 20 years, the Government of Mongolia has addressed the issue of the EMC and issued Resolution No. 224 on June 5, 2019. In order to increase the contribution of the state-owned enterprise “Erdenet Mining Corporation” to the economic and social development of Mongolia, to ensure the sustainable development, long-term operation and competitiveness of the enterprise, the State Guidelines for the development of “Erdenet Mining Corporation” SOE until 2031 approved by Resolution No. 262 of the Government Agency for Policy Coordination of State Property dated June 18, 2019.
The main development guidelines include the following projects:
Үүнд:
- Mineral Resource Enhancement Project
- Project on introduction of In-Pit-Crushing & Conveying system at the Open-Pit Mine
- Expansion and modernization project at Mineral Processing Plant
- Expansion and renovation project at Machinery Repair Plant
- Cathode copper production project by heap leaching of oxidized and low-grade copper ore using SX / EW technology
- Copper concentrate processing and metallurgical-chemical industry project
The project was launched to ensure the non-stop operation of industrial ore mining and processing, to increase ore reserves and resources at the deposit and regional levels, and to conduct geological exploration effectively using modern advanced technologies.
In recent years, we have developed an exploration strategy to increase the ore reserves to ensure the long-term sustainability of the mine, and have paid specific attention to the financing of geological exploration increasing it per annum up to USD 10 million.
The ore reserves of the Erdenetiin Ovoo deposit have been certified in accordance with the international JORC standard as part of the geological exploration to achieve the goal of increasing mineral resources. As a result of the “JORC Geological Resource Transfer Certification and Drilling” project, copper reserves at the Erdenetiin Ovoo deposit increased by 10.7% and molybdenum reserves increased by 16.8%. Thanks to increase in processing reserves of the Erdenetiin Ovoo deposit to increase the ore reserves and resources, and implemention of the geological exploration projects in the prospective deposits and occurrences of the Erdenet ore district, the service life of EMC has been extended by nearly 70 years.
In the future, the project will be able to increase the production capacity by continuing the exploration of the deposit by providing full access to the ore body, improving the resource classification, detailed structural and geotechnical drilling and other related research works.
In the world mining practice, in-pit crushing and conveying technology (ICCT) is introduced at the time of the depth of the career exceeds 150 m. The depth of our Open-pit mine has reached 195 m, and the final depth of the 905 meter bottom project is 495 meters. Transportation costs continue to rise in the current context of increasing the average distance transported in the mountains. Therefore, in order to reduce the cost of transporting the rock mass, it was decided to introduce ICCT through two open pit soil and ore transportation complex facilities. In the first phase, a project has been launched to introduce the technology to open pit mass transportation, and the feasibility study for the project has been completed as the engineering design is 80 percent complete. Manufacturing of the project equipment is 70% complete, delivery is 20% complete, and earthworks are 100% complete. The project is expected to be completed in the first half of 2022.
As part of the expansion and modernization project, Erdenet Mining Corporation SOE (EMC) has introduced advanced techniques and technologies to reduce ore processing costs, increase production efficiency, and ensure long-term reliable operations. The construction of the 4th line of the Autogenous-grinding section of the Mineral Processing Plant, with a capacity of six million tons of ore processing per year, and the modernization of the No. 5 section of the collective flotation unit, capable of processing 12 million tons of ore per year, have been completed. These projects were implemented over more than two years during challenging times such as the coronavirus pandemic and border restrictions. As a result, copper concentrate production will increase by 100,000 tons annually, generating an additional income of 356 billion MNT annually while reducing ore processing costs by 10%.
Advanced equipment from more than 20 leading global mining brands has been installed within the project. The expansion of the Autogenous-grinding section of the 4th line is projected to increase ore processing capacity to 8 million tons per year. By gradually updating the equipment and technology of the concentrator, the ore processing capacity is expected to reach up to 40 million tons per year. Additionally, modernization projects for the flotation section are underway within the scope of the expansion and modernization project.
“Feasibility study and detailed design for the expansion and modernization of the Machinery Repair Plant as a basis for the national machinery industry” is underway. Thanks to the investments in the expansion and renovation of the Machinery Repair Plant in stages, by the end of 2031. EMC will have achieved the manufacturing of cast products up to 15,300 tons, metal structures and non-standard equipment up to 4,000 tons, rubber products up to 400 tons, machined parts up to 5,000 tons, and made it possible to increase the range and production of import-substituting products, which will reduce the cost of production, adding up sales revenue and improve market competitiveness.
Feasibility study for 6,500 tons of cathode copper processing plant per year was developed and approved by the Minerals Professional Council (MPC) of the Ministry of Mining and Heavy Industry in 2016. In light of the current situation, EMC’s Technical Council has decided to increase the plant's capacity up to 10,000 tons per year, and has begun the feasibility study and detailed engineering design of the 10,000-tonne cathode copper processing plant using SX/EW technology. The project is planned to be commissioned in 2023. In addition to generating additional revenue, EMC will be able to make complete exploitation of its resources, introduce new products, and produce finished copper products by introducing advanced technologies that have low impacts on the environment.
A feasibility study for the construction of a metallurgical-chemical plant for continuous smelting and processing of copper concentrate by EMC using SKS technology was developed in 2020. The feasibility study envisages the production of 120,000 tons of cathode copper per year.
At various stages of industrial development, every time the issue of a copper concentrate smelter in Mongolia is discussed, it is difficult to solve the problem of sulfuric acid emitted from sulfur dioxide emission process. In order to solve this problem, EMC has been carrying out the following activities:
- Pilot testing of elemental sulfur for the production of sulfur dioxide-containing gases (fumes) emitted from copper smelting and processing plants using coal powder; and
- Experimental study of the possibility of producing phosphorus fertilizer in Mongolia using sulfuric acid.
The Feasibility Study for the construction of a continuous smelting and processing metallurgical and chemical plant using SKS technology was amended based on the results of pilot test to produce sulfur dioxide-containing gases (fumes) emitted from copper smelting and processing plants using coal powder. Subsequently, it will be discussed and approved by the Minerals Professional Council (MPC). According to the approved feasibility study, the design and construction of the plant will be carried out in stages, and the project is planned to be commissioned in 2024.
Within the implementation of Resolution No. 224 made by the Government of Mongolia, dated June 5, 2019, researches were carried out for the purpose to establish an industrial and technological park “Mining, Metallurgical and Chemical Complex Industry” based on “Erdenet Mining Corporation” SOE. Relevant materials were prepared in cooperation with the Heavy Industry Policy Department of the Ministry of Mining and Heavy Industry, and the subject issue was discussed at the Cabinet meeting and accordingly, EMC is issued with the license with 5 years validity to operate industrial and technological park by the Government Resolution No. 129, dated May 05, 2021.
Within the establishment of the industrial and technological park “Mining, Metallurgical and Chemical Complex”, procurement for the development a feasibility study for power supply of the Industrial and Technological Park (IPP), project design of water supply and sewerage systems,and construction of railways and roads, is being organized. The infrastructure for industrial and technological park is expected to be fully operational by the first half of 2023.