Bilateral cooperation plan signed www.gogo.mn

The general assembly of the Interregional Standardization Association /IRSA/ is being held in Ulaanbaatar from April 18-19. More than 40 delegations from Turkey, Mongolia, Azerbaijan, Georgia, Kyrgyzstan, Uzbekistan, Moldova, Kazakhstan, Ukraine and Belarus will participate in the general assembly.

Vendors advocate relocation of Zuun Ail market www.theubpost.mn

The Ulaanbaatar City Council recently decided to relocate Zuun Ail’s building materials market in progressive stages in an effort to reduce traffic around the area and improve the environment.

Statistics show that at least 100 people get examined at the National Dermatology Center and 900 people get services at the General Authority of Intellectual Property and Registration. Adding the number of people buying building materials and going to the Sukhbaatar Health Center and Gerontology Center, around 2,000 people commute through Zuun Ail in Sukhbaatar District each day.

The large number of commuters around this area crowds not only Zuun Ail but increases traffic between Sansar petrol station bus stop, Bayanburd and the 32nd Roundabout by up to 30 percent, according to a specialist. They emphasized that the soil in Zuun Ail – the 11th khoroo in Sukhbaatar District – has eroded to the point it is endangering the lives and wellbeing of the residents.

Over 1,000 businesses operate in Zuun Ail

Over 1,000 individuals and businesses are reportedly operating along the one kilometer road stretching from the Second Children’s Hospital to the 32nd Roundabout.

The Sukhbaatar District’s Tax Department reported that more than 800 registered and permitted individuals and companies are running a business in Zuun Ail.

While 600 of them provide service at 21 centers, the rest build small buildings, sell construction materials, and manufacture windows, doors and wooded furniture outside.

City officials complained that manufacturers operate on public property and park their vehicles on the first lane, causing heavy traffic in the area. They expect the heightened traffic to worsen as street vendors selling socks, insoles, slippers, gums and tobacco increase.

Land specialists of Sukhbaatar District complained that many people are selling sand and gravel on the street around the 32nd Roundabout because of the building materials market and that the number of these vendors will probably grow in the future unless the government or city administration takes action to prevent it. Specialists speculate that building material enterprises are spreading to the 32nd Roundabout as buildings on either side of Zuun Ail don’t allow the market to expand to the east or west.

It was reported that 50 individuals and companies sell sand and gravel from their trucks parked along the road. At this rate, the 32nd Round will soon turn into a “black market”, as described by city officials.

In concern of the black market blocking roads to summer camps and houses of Ulaanbaatar residents located outside the capital, the Ulaanbaatar City Council believes it’s best to relocate the building materials market in Zuun Ail.

High content of lead found in children’s blood

Local residents are the victims suffering the most from the long absence of a proper land management in Zuun Ail.

Road accessibility has become a major issue in this area because vendors have taken up most of the limited space with their storages. Randomly-placed storages and containers are the main reason the road along Baga Toiruu is still under construction despite starting almost simultaneously with the construction of Khangai Town. Khangai Town was commissioned almost three years ago.

As many people occupy the small area and use latrines, the soil is facing serious pollution and erosion problems.

“The soil pollution around the building materials market is high and moderate 100 meters from the market,” read a report by the Ulaanbaatar Specialized Inspection Agency. The extent of soil pollution is evident in the trash and wastewater affecting Zuun Ail as well as the pee stains on corners of buildings.

Due to these reasons, the content of lead in nearby soils has exceeded the maximum permissible level. Last year’s heavy metals analysis found 27.3 micrograms of lead per kilogram in soil samples from Zuun Ail. An acceptable level of 600 part per million of lead in soil suggested as a “safe” level that would contribute no more than 0.05 part per million to total blood lead of children aged under 12.

However, blood tests of 29 children living with disabilities and 153 children of Kindergarten No.186 and School No.116 in Zuun Ail indicated that 62 percent of them were exposed to lead contents higher than the maximum acceptable level.

Vendors are willing to move out

The majority of vendors and residents are showing support for the decision to relocate Zuun Ail’s building materials market because they understand that it’s the only option for resolving these challenges.

“Most people selling things from containers on the streets are supporting this decision. Only the owners of large shopping centers might protest. People who do business outdoors are ready to move out,” said a street vendor in Zuun Ail.

A business owner said, “Let’s be honest – nobody would want to run a business standing on the street amid Mongolia’s extreme climate with drastic temperature swings. We would have no reason to reject if we’re asked to move to a new building where all building materials trade is centralized.”

A carpenter and three people who make windows and doors also agreed that the building materials market should be moved outside of the capital. The only request they had for city officials was to prohibit operations of large building materials centers and open markets in the city to ensure fair play in the market.

Some vendors and entrepreneurs stated that owners of large trade centers have held talks about the relocation of Zuun Ail’s market at every chance they got. They reportedly “brainwashed” small vendors to protest with them. A couple of street vendors stated that they used to follow these owners because they outnumbered them.

“There are over 80 enterprises and about 60 individuals running businesses outdoors. I heard that there were more than 1,300 people working in Zuun Ail last year. This means that about 1,000 people rent booths at trade centers like Odkhon. If these people refused to move out, the few of us will have no choice but to comply,” said one of the vendors.

He suggested city officials to negotiate with owners of trade centers and storage owners in the area if they really want to relocate the market. “They’re the only ones obstructing development projects aimed to improve the environment and living condition of Zuun Ail,” he added.

Public properties to be vacated first

A task force has been assigned to handle the relocation of Zuun Ail’s market by the Ulaanbaatar City Council. The task force plans to stop businesses operating on public property before the end of May as feasibility studies indicate that the project is viable.

The second step will be relocating some building materials manufacturers to the Auto Trade Complex and Nalaikh’s Building Materials Industrial and Technological Park. The decision to provide a part of the Auto Trade Complex was made in consideration of people who want to renovate their home but are unable to travel far distances to find companies, as explained by the task force.

Once the first tranche of the project is finished, intersections near Zuun Ail will be expanded. The task force plans to increase road lanes from four to six by August to improve road accessibility. Next year, old buildings will be reconstructed and a new trade center will be built. As a result, city officials hope to transform Zuun Ail into a residential town and ensure their residents have a job and stable income.

Leader of the task force Ch.Gantulga says, “Our task force has been working for over two months. We have presented our report to the Ulaanbaatar City Council. The council instructed us to relocate the market before the end of the third quarter of this year. The relocation will be carried out in three stages. People making a living from working there will not be chased away.”

“The first stage is to free public areas, expand roads, and build parking for 200 cars on each side of the road. Next, old trade centers will be demolished to build a large shopping center that will provide comfortable working conditions for vendors and meet international standards. In return for vacating their land, venders will get the chance to expand their business and work under better conditions. In the future, building material trades will be allowed at the Auto Trade Complex, Belkh Market and Zuun Ail but factories will be moved outside the city,” he clarified.

Believing that they will get a better working space, venders of Zuun Ail’s building materials market are willing to move outside the city.

IMF issues warning on global debt www.bbc.com

The International Monetary Fund says that high global debt is a concern.

ETT to introduce risk management standard for zero-accident www.montsame.mn

Ulaanbaatar /MONTSAME/ Erdenes Tavan Tolgoi JSC reports that the company intends to implement a program to achieve the goal of zero-accident rate by introducing ISO 31000 risk management standard. The program will be launched by a ‘Start’ signal on April 23 in its mine and all contractor companies will join it.

Xanadu Mines discovers new copper porphyry centre at Kharmagtai project in Mongolia www.proactiveinvestors.com.au

Xanadu Mines Ltd (ASX:XAM) has discovered a new copper porphyry centre at its Kharmagtai Copper-Gold Project in Mongolia’s South Gobi region which hosts the large Oyu Tolgoi project.

A hole targeting a buried porphyry system has encountered some 600 metres of porphyry-style mineralisation at the target, which has been named Zaraa.

This hole is at a depth of 1,200 metres and remains in mineralisation with visible copper-bearing sulphides.

The top 770 metres of the hole returned 316 metres at 0.32% copper and 0.27 g/t gold from 458 metres.

Within this intersection were 217 metres from 557 metres at 0.4% copper and 0.33 g/t gold, and 108 metres from 645 metres at 0.47% copper and 0.42 g/t gold.

Executive director and chief executive officer Andrew Stewart said “We have started 2018 with very strong exploration results.

“Significant high-grade extensions have been added to the existing resources and our ever-improving understanding of the undercover geology at Kharmagtai has resulted in several new discoveries.

19 large-scale porphyry targets
“We have now tested eight of the 19 large-scale porphyry targets recently identified and five have produced significant intervals of porphyry alteration and mineralisation.

“Zaraa represents the latest target tested and we are extremely excited by the first diamond drill results.

“It is a new porphyry centre and early indications are the system has the grade and scale to represent a significant new discovery.”

Zaraa near Sandstorm target
Zaraa is 500 metres south of the Sandstorm target and 1 kilometre west of Golden Eagle.

Final results from the Zaraa drilling are expected in the next couple of weeks.

The company believes the hole indicates the system is increasing in size and grade towards the southwest.

Three follow-up holes are planned to test this new system along strike, targeting higher grades and broader widths in addition to expanding shallow high-grade mineralisation.

Ground magnetic data and location of reported drilling at Kharmagtai.

Broad zones of tourmaline breccia
At Sandstorm, drilling has returned a broad zone of sulphide-bearing tourmaline breccia mineralisation.

This is about 1.2km along strike from the mineralised breccia system at Stockwork Hill.

One hole intersected more than 100 metres of tourmaline breccia which is interpreted to be the strike extension of Stockwork Hill.

Assay results are expected in early May with follow-up drilling underway.

Epithermal gold intersections
At the Zephyr target, multiple high-grade epithermal gold intersections were returned while drilling porphyry targets.

Results include 2 metres at 4.4 g/t gold from 238 metres and 8.5 metres at 3.4 g/t from 297.5 metres, including 2 metres at 10.7 g/t from 300 metres.

Xanadu’s drilling at White Hill West target continues to expand the system with the best result being 785.9 metres at 0.21% copper and 0.12 g/t gold from 2 metres.

A reverse circulation program is underway to establish whether White Hill West links with the White Hill target 2 kilometres away.

Four rigs drilling
Stewart said: “Our strategy is clear: the best way to add tonnes and grade to the existing resources is by discovering additional high-grade deposits within the Kharmagtai licence area.

“With four rigs drilling around the clock we are delivering on this strategy and the discovery of Zaraa reinforces the amazing exploration potential of the Kharmagtai porphyry district.”

Drilling will start in early May at the Red Mountain project east of Kharmagtai targeting large-scale porphyries and epithermal gold.

The Need for a Sovereign Wealth Fund www.gogo.mn

The Ministry of Mining and Heavy Industry held a press conference titled “Transparent Mining” in order to give a briefing on the 1st Quarter report for the mining sector. As of the first quarter of 2018, mining accounted for 448.2 billion MNT in revenue in the state budget. 262 thousand tons of petroleum have been extracted as of April 11, with 53.3 billion MNT in revenue.

Trade boost: China to help Mongolia to expand border crossing www.news.mn

Mongolia is to expand the Zamyn Uud and Gashuun Sukhait border crossings with CHY 148 million of non-refundable assistance from the Chinese Government. The agreement was signed during a visit of Mongolian Prime Minister U.Khurelsukh to China.

Turquoise Hill announces first quarter 2018 production www.turquoisehill.com

Turquoise Hill Resources today announced first quarter 2018 production for Oyu Tolgoi.
Jeff Tygesen, Chief Executive Officer of Turquoise Hill, said, “Oyu Tolgoi’s first quarter production was in line with
expectations. Planned concentrator maintenance occurred in January reducing mill throughput for the quarter; however
the impact was partially offset by increases in recovery, particularly for gold. With the initial processing of ore from Phase
4A, we are starting to see increased gold grades, recovery and production compared to last year.”
Material mined decreased 20.0% over Q4’17 due to winter weather effects in January as well as dig-unit maintenance
work during the quarter. Mill throughput decreased 11.8% over Q4’17 due to the January planned maintenance. Copper
production in Q1’18 decreased 14.3% over Q4’17 mainly due to lower throughput and slightly lower grades. Gold
production increased 20.0% over Q4’17 due to higher gold grades from Phase 4A and an increase in recovery.
Oyu Tolgoi is expected to produce 125,000 to 155,000 tonnes of copper and 240,000 to 280,000 ounces of gold in concentrates for 2018.
Please review the full report on the website

Mining update: Investors eye Xanadu Mines www.ubinfo.mn

Xanadu Mines has recently reported that it determined the finding of a gold grain from samples taken at Kharmagtai Copper-Gold Project area that is located in Umnugobi aimag. 12 samples taken from Kharmagtai Deposit sent for additional analysis for determining the location of the gold.

Ongoing test work shows that gold should report to a copper concentrate as free gold inclusion. Xanadu’s chief executive officer Dr Andrew Stewart said, “These above average results, as expected, show that gold occurs as coarse grains in association with principle copper sulphides. While further testing is required as the project advances, we see no significant hurdles to producing a high-quality concentrate via standard processing pathways from the Kharmagtai project. These results allow us to focus on the drilling underway which is expanding the resource and targeting near-surface porphyry copper-gold deposits within this largely under-explored porphyry copper-gold district.”

ASPIRE MINING
ASX-listed Aspire Mining signed a new memorandum of understanding (MoU) with China Gezhouba Group International Engineering Co (CGGC) as part of an official program of 35 new infrastructure agreements between Mongolia and People’s Republic of China during the recent official visit of Mongolian Prime Minister Khurelsukh Ukhnaa to PRC (PRC). Under the MoU, the parties agree that they will continue to work together to finalise a feasibility study on a 550 km-long railway running east from Ovoot to the railway hub town of Erdenet. The company is developing a coking coal deposit at Ovoot.

CGGC, who is 40 percent owned by the Chinese state, last month delivered a draft feasibility study that found it would be financially viable to construct the railway line. A target date of next month has been set to finalize the study.

Mongolia and PRC have an ambition to build a Northern Rail Corridor as part of China’s Belt and Road Initiative to develop trade throughout Eurasia.

“This has helped Aspire pick up heavyweight partners such as CGGC on a railway line east from Ovoot and attract interest from Russia in building a line westwards to the Russian border,” the West Australian, an Australian media outlet noted.

The West Australian reported that Russian rail design group Mosgiprotrans last month signed a deal with Aspire to study the feasibility of running a rail line west from Ovoot to the town of Arts Suuri on the Mongolian-Russian border and then on to the Russian city of Kyzyl.

While the Russian government has yet to declare support for the project, Aspire noted in its latest update that the Russian Ministry for Rail had asked to review the Ovoot to Erdenet proposal.

“The new MoU also confirmed CGGC’s interest in funding pre-development activities for the project, subject to a guarantee the Trans-Mongolian railway, which runs through Erdenet, will have capacity to take Aspire’s coking coal north to markets in Russia and south to the steel mills of China,” The West Australia reported.

As part of the MoU, Northern Railways has committed to enter into a lump sum turnkey EPC contract with CGGC by the end of November 2018. Aspire reported the EPC contract would be subject to funding for the project, which, if available, could allow construction to begin in the Mongolian spring of 2019.

ERDENE RESOURCE DEVELOPMENT CORP
TSX-listed Erdene Resource Development Corp (ERD) has recently announced the commencement of its 2018 Drill Program at its Bayan Khundii Gold Project. According to an official statement issued by ERD’s President and CEO Peter Akerley, it will initially focus on the new North Midfield Zone where late 2017 drilling returned the highest grade gold zone at Bayan Khundii since discovery. In addition, ERD plans to conduct drill testing at the neighbouring Altan Arrow, Khundii North and Ulaan projects later in the second quarter of this year.”

Oyunbayar.N

Largest underground chamber excavated in OT mine www.montsame.mn

An excavation work to create 12 800 cubic meter chamber or room in Oyu Tolgoi underground mine was completed in seven months of period, performed by 15 people. It laid a foundation to install ‘PC-1’ primary crusher in the underground mine.