1. THE CURRENT SITUATION OF ENERGY SECTOR
MINISTRY OF MINERAL RESOURCES
AND ENERGY
THE CURRENT SITUATION OF ENERGY SECTOR
ZORIGT.D,
Minister of Mineral Resources and Energy, Mongolia

2. contents Energy Statistics of Mongolia
MINISTRY OF MINERAL RESOURCES AND ENERGY
contents
Energy Statistics of Mongolia
Main Energy Resources and Forms of Mongolia
Coal
Oil
Uranium
Renewable
Current Situation and Investment in Mining Sector, Development and Policy 2

3. Жилийн дундаж өсөлт, (%) Жилийн дундаж өсөлт, (%)
MINISTRY OF MINERAL RESOURCES AND ENERGY
Energy Statistics of Mongolia
Total Primary Energy and Economic Indicator in Mongolia
(Unit : 1,000 TOE, %)*
1990
1995
2000
2005
2010
Жилийн дундаж өсөлт, (%)
’90-’95
’95-’00
’00-‘05
’05-’10
Total Primary Energy Supply (1,000 TOE)
3,746
2,317
2,564
2,800
3,545
-9.2%
2.0%
1.8%
4.8%
Energy per capita (TOE)
1.74
1.03
1.06
1.09
1.27
-9.9%
0.6%
0.5%
3.1%
Population (thousand)
2,153
2,243
2,408
2,562
2,781
0.8%
1.4%
1.3%
1.6%
GDP (billion tog, at 2005 constant price)
2,107
1,826
2,100
2,780
4,154
-2.8%
2.8%
5.8%
8.4%
Energy/GDP Intensity (TOE/million Tog)
1.78
1.22
1.01
0.85
-6.5%
-0.8%
-3.8%
-3.3%
Import Dependency (%)
22.3%
16.2%
19.4%
21.4%
25.6%
-6.2%
3.7%
1.9%
Energy Production and Net Import in Mongolia
(Unit : 1,000 TOE, %)
1990
1995
2000
2005
2010
Жилийн дундаж өсөлт, (%)
’90-’95
’95-’00
’00-‘05
’05-’10
Indigenous Production
2,709
1,980
2,019
3,592
11,591
-6.1%
0.4%
12.2%
26.4%
Import
836.01
375.55
497.13
597.88
908.89
-14.8%
5.8%
3.8%
8.7%
Export
171 1 3
1,405
9,028
-61.8%
18.4%
236%
45.1%
Total Domestic Energy Supply
3,746
2,317
2,564
2,800
3,545
-9.2%
2.0%
1.8%
4.8%
* 1,000 TOE- 1,000 Tonnes of Oil Equivalent

4. Energy Statistics of Mongolia
MINISTRY OF MINERAL RESOURCES AND ENERGY
Energy Statistics of Mongolia
Structure of Primary Energy Supply by Source in Mongolia
(Unit : 1,000 TOE, %)
1990
1995
2000
2005
2010
Growth rate p.a. (%)
’90-’95
’95-’00
’00-‘05
’05-’10
Coal
2,365
1,695
1,798
1,895
2,324
-6.5%
1.2%
1.0%
2.8%
63.1%
73.1%
70.2%
67.7%
65.6% -
Oil
1,206
345
472
584
879
-22%
6.5%
4.3%
22.7%
32.2%
14.9%
18.4%
20.9%
24.8%
Hydro
0.00
0.25
0.28
4.73
0.0%
2.1%
45.1%
0.00%
0.01%
0.13%
Traditional Fuels & Others
175
277
293
321
337
9.6%
1.1%
1.8%
0.6%
4.7%
12.0%
11.4%
11.5%
9.5%
Total
3,746
2,317
2,564
2,800
3,545
-9.2%
2.0%
7.3%
100.0%
Trend in Supply Shares (199520002010, %)
• Coal : 73.1  70.2  65.6 • Oil : 14.9 18.4 24.8
• Hydro :0.00.010.13 • Traditional Fuels & Others: 12.0 11.4 9.5

5. Main Energy Resources and Forms of Mongolia
MINISTRY OF MINERAL RESOURCES AND ENERGY
Main Energy Resources and Forms of Mongolia
Explored Main Energy Resources and its Operation
COAL
OIL
URANIUM
RENEWABLE
HYDRO
SOLAR
WIND
Reserve
162
billion tonne
206
million tonne
68.6
thousand tonne
56.2
billion kWh
1,400 kWh/м2
836.8
World Ranking by Reserve
9th -
15th
Operation in 2010 25
0.3
~ 0.0
27.5
million kWh
0.13
0.1
Explored and Estimated Energy Resources
Coal
Lignite, Bituminous and Coking Coal
Oil Shale
Oil
Uranium
Renewable
Hydro, Solar, Wind, Biomass
Not Explored Energy Resources
Natural Gas
Geothermal energy

6. COAL- RESERVE MINISTRY OF MINERAL RESOURCES AND ENERGY Western Region
Central Region
Eastern Region
Mountainous Region
Gobi Region №
Index
Central region
Mountainous region
Gobi region
Western region
Eastern region
Total 1.
Number of deposits 13 20 23 16 85 2.
Reserves /million ton/
7704.1 3.
Share in the total
16.5%
4.7%
30.6%
16.7%
31.5%
100%

7. Coal Production, Export and Domestic Consumption in the last Decade,
MINISTRY OF MINERAL RESOURCES AND ENERGY
COAL- PRODUCTION
Coal Production, Export and Domestic Consumption in the last Decade,
/thousand tonne/

8. MINISTRY OF MINERAL RESOURCES AND ENERGY
COAL - PROJECTION
Projection for Coal Production, Export and Domestic Consumption, /million tonne/

9. COAL– EXPORT COAL EXPORT MAINLY TO CHINA
MINISTRY OF MINERAL RESOURCES AND ENERGY
COAL– EXPORT
COAL EXPORT MAINLY TO CHINA
Current major Coal exporters are located in the Southern part of Mongolia, close to China = km
PROBLEMS FACED
Infrastructure: electricity, water, transportation
Finance: high interests, short term
Lack of qualified personnel and equipment
Border station capacity
8.9 сая тонн
9.3 сая тонн
Tavan Tolgoi Co: mln
ER Co: mln
Erdenes TT: mln
MAK Co: mln
Qinhua –MAK: mln
South Gobi Sands: 2.5 mln

10. COAL- EXPORT MINISTRY OF MINERAL RESOURCES AND ENERGY
Coal Transport Routs to Russian and Chinese Ports from Tavan Tolgoi Coal Mine
Routs
TT-G/Sukhait-Qinhuangdao port: 1722 km
TT-GSukhait-Huanghua: 1638 km
TT-Sainshand-Z/Uud- Qinhuangdao 1779 km
TT-Sainshand-Z/Uud-Huanghua: 1819 km
TT-Sainshand-Z/Uud- Tianjin:
1570 km
TT-Sainshand -Naushky-Vanino: 5100 km
TT-Sainshand -Naushki -Vostochny: km
TT-Sainshand-Choibalsan-Vanino km
TT-Sainshand -Choibalsan-Vostochny: 5069 km0

11. COAL- POLICY Improve legal environment:
MINISTRY OF MINERAL RESOURCES AND ENERGY
COAL- POLICY
GOVERNMENT POLICY ON COAL SECTOR
Improve legal environment:
Amendment into Minerals Law
Regulations: environmental issues, licensing, taxation
Increase of exploration budget and intensify geological survey
Increase of production and export:
Target Markets: China, Japan, Korea, Taiwan
Introduction of value added production:
Preparation, Washing plants
Lignite upgrading: semi-coke
Gasification and Liquefaction
Responsible mining principles

12. Petroleum Exploration Blocks
MINISTRY OF MINERAL RESOURCES AND ENERGY
OIL- EXPLORATION
Petroleum Exploration Blocks
PSC Blocks
To approve by Government
Open Blocks
To discuss and make decision by Government and National Security Council
Co-Exploring Blocks

13. MINISTRY OF MINERAL RESOURCES AND ENERGY
OIL- EXPLORATION
EXPLORATION BLOCKS
Petroleum Sharing Contracts were signed on18 blocks and started activities.
Co-geological survey agreements were made for Coal bed Metane gas on 5 blocks and for oil on 8 blocks.
Mongolia
China
Others
PSC were made on 18 exploring blocks with total 13 companies
International open tenders have been announced on 5 blocks

14. Oil Production and Export Growth (thousand bbl, by 20-12-2010)
MINISTRY OF MINERAL RESOURCES AND ENERGY
Oil – Production and export
Oil Production and Export Growth (thousand bbl, by )
Production
Export

15. MINISTRY OF MINERAL RESOURCES AND ENERGY
Uranium
Mongolia contains six uranium strata and more than 100 uranium deposits.
Mongolian geologists now believe that Mongolia has 60,000 metric tons of uranium reserves, while Russian experts have much higher estimates, ranging from 120,000 to 150,000 metric tons.
Main uranium deposits located in the Western province.
Dornod Deposits tonne,
Gurvanbulag Deposite tonn,
Mardai Deposit 1104 tonne.

16. Maps of Renewable Energy Recourses
MINISTRY OF MINERAL RESOURCES AND ENERGY
RENEWABLE ENERGY
Maps of Renewable Energy Recourses

17. MINERAL SECTOR’S IMPACT ON MONGOLIAN ECONOMY
MINISTRY OF MINERAL RESOURCES AND ENERGY
CURRENT SITUATION OF MINING SECTOR INVESTMENT
MINERAL SECTOR’S IMPACT ON MONGOLIAN ECONOMY
GDP
Industrial Goods
Экспорт

18. Mining Sector Investment and Production
MINISTRY OF MINERAL RESOURCES AND ENERGY
CURRENT SITUATION OF MINING SECTOR INVESTMENT
Mining Sector Investment and Production
Investment
Production

19. MINING SECTOR POLICY OF THE GOVERNMENT
MINISTRY OF MINERAL RESOURCES AND ENERGY
MINING SECTOR POLICY OF THE GOVERNMENT
Northern Industrial Region:
Leveraging Darkhan Erdenet existing infrastructure
11 processing plants
Erdenet Industrial Park
- Copper Cathode
- Ferro - Molybdemnum
- Agriculture
Darkhan Industrial Park
- Iron ore pellets
- Steel products
- Cement plant
- Gold л
Central Industrial Region:
Leveraging Choir Sainshand workforce and infrastructure
8 processing plants
Choir Industrial Park
-Electricity
- Syngas
-Diesel
- Cement
Sainshand Industrial park
-Chemical Industry
- Copper Extrusion/Cable
- Agriculture
Souther Industrial Region:
Biggest coal and copper mines
12 processing plant
Тavan Tolgoi Industrial Park
-Electricity
-Cooking coal
-Termal Coal
Оuytolgoi Industrial park
-Cement, Bricks
-Copper Cathode
-Gold
- Agriculture
Establishing multiple industrial parks based on regions and processing close to mine sites

20. MINING SECTOR POLICY OF THE GOVERNMENT
MINISTRY OF MINERAL RESOURCES AND ENERGY
MINING SECTOR POLICY OF THE GOVERNMENT
To support the strategic deposits to develop economically
To produce the Value added products and support the production such as concentration, processing, melting and purification.
To develop and implement the complex plan to industrialize the Mongolia.

21. THANK YOU FOR YOUR ATTENTION
NEAR INTERNATIONAL FORUM 2011
THANK YOU FOR YOUR ATTENTION
Tel: – 51 –
Fax: – 11 –
Ministry of Mineral resources and Energy, Mongolia