Baganuur mine

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Baganuur Coal Mine is a brown coal mine in Khentii Province Mongolia, which was established in 1978. A 2009 briefing note described the Baganuur Joint Stock Company, the mine owner and operator, as the "biggest coal mining company in Mongolia."[1]

Location

The map below shows the location of the mine in Khentii Province, Mongolia.

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Background

The Baganuur mine is located approximately 200 kilometers east of Ulaanbaatar, and has a mining area of approximately 530 square kilometers.[2] It has produced approximately 75 million tonnes of coal since it was opened. According to the briefing note, the Mongolian government privatised 25% of its share of the company in 1995, but holds the remaining 75%.[1]

Coal from the Baganuur mine is used to supply the existing Ulaanbaatar 2, 3, and 4 power stations in Ulaanbaatar.[3]

Expansion

In 1997, the Baganuur and Shivee-Ovoo Coal Mine Development Project began, as it was deemed necessary to increase the production of the Baganuur coal mine from 3 million tons/year to 4 million tons/year, and that of the Shivee-Ovoo mine from 0.3 million tons/year to 2 million tons/year.[2] The objective of this project was to increase coal production capacity to meet the coal demand in Mongolia and to improve the quality of coal to satisfy the needs of power plants by rehabilitating the Baganuur mine, the then-largest coal mine in the country, and by expanding the Shivee-Ovoo mine.[2] The project was divided into two phases, with Phase 1 including the rehabilitation of the Baganuur mine, and Phase II focusing on the purchase and increase of materials and equipment urgently needed for the operation and maintenance of the Shivee-Ovoo mine. Due to changes in government, a temporary project suspension, and other impediments, Phase I wasn't completed until May 2002, while Phase II was completed in March 2005.[2]

The expansion and upgrading of the mines was funded by both the World Bank and the Japan International Cooperation Agency (JICA).[1] JICA, which made a 30-year loan to fund new coal handling plants and mining equipment, noted that there was concern about the financial viability of the company.[4] Frontier Securities briefing note on Baganuur Joint Stock Company stated that the source of the company's financial problem was supplying coal at a fixed cost due to government regulation while costs gradually increased. Frontier Securities also stated that the World Bank and the Japan International Cooperation Agency funding had been to support the implementation of the Mongol Coal program since 1996.[1]

Mine Details

  • Operator: Baganuur Joint Stock Company (JSC)
  • Owner: Baganuur Joint Stock Company (JSC)
  • Location: 200 km east of Ulaanbaatar, Khentii Province, Mongolia[5]
  • Coordinates: 47.73616, 108.321362
  • Status: Operating
  • Production: 4.35 million tonnes per annum (2022)[6]
  • Total Reserves: 210 million tonnes (Proven, 2013)[7]
  • Coal Type: Bituminous (Thermal)
  • Mine Type: Surface
  • Start Year: 1978[1]
  • Source of Financing: Japan Bank for International Cooperation (JBIC)[8]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 1.4 Frontier Securities, "Baganuur JSC", November 2009.
  2. 2.0 2.1 2.2 2.3 Baganuur and Shivee-Ovoo Coal Mine Development Project (1) (2), Japan International Cooperation Agency website, accessed March 2023.
  3. "Pre-feasibility Study for Coal Mine Methane Recovery and Utilization at Baganuur Mine, Mongolia", U.S. Environmental Protection Agency, December 2013, page 9. (Pdf)
  4. Japan International Cooperation Agency, "Baganuur and Shivee-Ovoo Coal Mine Development Project", Japan International Cooperation Agency website, May 2008.
  5. Location of the Baganuur Coal Mine in Mongolia, ResearchGate, accessed July 2022.
  6. БАГАНУУР ХК-ИЙН ХЭСЭГ НЭГЖҮҮД ӨНГӨРСӨН ЖИЛИЙН ҮЙЛ АЖИЛЛАГААГАА 90-93 ХУВИАР ДҮГНҮҮЛЛЭЭ, "Part Units of Baganuur JSC Concluded 90-93 Percent of Their Activities of the Last Year", Baganuur JSC website, 1 March 2023.
  7. US Environmental Protection Agency, "Pre-feasibility Study for Coal Mine Methane Recovery and Utilization at Baganuur Mine, Mongolia", U.S. Environmental Protection Agency, December 2013. (Pdf)
  8. East Asia, Japan International Cooperation Agency website, accessed March 2023.

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