Could you introduce EMC?

The Erdenetiin-Ovoo copper-molybdenum deposit was first discovered by Mongolian and Czech geologists in 1963, and it was decided to establish a Mongolian and Russian Mining and Processing Joint Venture in 1973.

The first phase’s annual ore processing capacity was 4 million t/y, and the first concentrate was shipped in 1978.

As of 2023, Erdenet Mining Corporation SOE (Erdenet) processes ore of 37.2 million t/y, producing and selling up to 600,000 t/y of copper and 6,000 t/y of molybdenum in concentrates to the international market.

As to the ownership status of Erdenet, it was a Mongolian-Russian Joint Venture until 2016, a Limited Liability Company with shares of the Mongolian state and private sector between 2016 and 2019, and now 100% Mongolian state-owned enterprise since 2019.

During 45 years of the operation, geological exploration works have been carried out, and in 2021, the resources were approved for the 4th time by JORC code. As a result, the lifespan of the mine is extended for another 60 years.

In the frame of social responsibility, Erdenet is implementing several programs related to employees’ social issues, health, education, culture, sports, recreation, and environment protection. What has the transition into a state company (SOE) in 2016 meant for the organization?

With the status of a state-owned enterprise, the contribution to the Mongolian budget and economy has increased significantly, and the non-ferrous metal industry based on Erdenet has been developed as a cluster that brings an opportunity to increase competitiveness and value.

Nearly 10% of the state and local budget revenues and Mongolia’s export revenues are generated by only Erdenet. The understanding among the population was that mining is likely in conflict with the traditional nomadic lifestyle of Mongolians. The global pandemic was a challenge for Mongolia’s economy, and the input of Erdenet in the economy of the country and benefits to the citizens made Mongolian people understand the importance of the mining industry. Could you elaborate on the five-year development plan to 2025 and its main goals?

We have been intensifying the implementation of development projects to cut operational costs, to increase economic benefits and competitiveness, producing value added final products, and to keep in line with trends of the global mining development.

The construction of the Industrial and Technology Park, a major construction for the long-term sustainable development of Erdenet, is in full swing, and the construction of roads, railway lines, electricity supply, water supply for the industrial park is being successfully carried out.

The preparation works for construction of copper smelters is going on. How can Mongolia become a more attractive investment destination?

My understanding is that the legal environment and tax policy should be consistent and internationally competitive to attract more investment.

The world-class deposits such as Erdenet and Oyu Tolgoi are in Mongolia. Investors should be allowed to discover more deposits. By improving the investment environment, I am sure that Mongolia will become an attractive country for investors in near future. Erdenet celebrates 45 years since it was founded. What do you see as the biggest accomplishment of the company?

I think that the most valuable resource and achievement of Erdenet is professional human resources. In the meantime, we are implementing policies and programs to empower our human resources to apply artificial intelligence and green transition to a certain level for the implementation of advanced automated technologies that are environmentally friendly and economically efficient.

Erdenet has been operating successfully for 45 years, making a significant contribution to the social and economic development of Mongolia. It has also developed a responsible mining project, establishing Erdenet city with a population of 100,000 people, with a complete infrastructure, which makes it a unique model of mining. Do you have a final message?

“Billion Trees” national movement initiated by the President of Mongolia was supported by Erdenet and planting 100 million trees program is being implemented. For that purpose Erdenet has built and commissioned for the first time in Mongolia Forest Genentic Center and the Center for Soil Biotechnology. Also, we initialized the construction of a Tree Nursery Complex with a fully automatic greenhouse having an annual producing capacity of 12 million seedlings.

I am confident that the accomplishment of the “Billion Trees” national movement will give an opportunity to Erdenet to have economic benefits, improve carbon credits by cutting greenhouse gas emissions, and increase product competitiveness.