A NEW APPROACH NEW OPPORTUNITIES

Investor presentation

Erdenet is located in northern part of Mongolia 104 west on

longitude, 49 north on latitude. It is situated 1300,0 meters
above sea level

Erdenet is the secondlargest city in Mongolia and

the capital of the Orkhon
province
Erdenet lies in a valley
between
the Selenge
and Orkhon rivers about 241
km northwest of Ulaanbaatar,
the capital. The road length
between
Ulaanbaatar
and
Erdenet is about 370 km.

After production, expansion and modification for many

years, EMC has become a large-sized complex mine with
annual treating capacity of 26 million t/a raw ore
31

2016
2015

29

25.5

2007

24

2000

20

1994

16

1983

1978
0

10

15

20

25

30

In 2015 after expansion work the capacity increased to 29 Mt

35

ALL TIME PRODUCTION INDICES OF EMC

1978-2014
Copper concentrate
production 14.9 Mt
Copper in
concentrate 4.2 Mt

Product sales 10.4

billion USD

Mined ore 768.4 Mt

Ore processed 732.7
Mt

Molybdenum
concentrate
production 115.6 kt
Moly in concentrate
59.3 kt

Local TAX 5.1 trillion

MNT

Profit before
taxation 2.9 trillion
MNT
Net profit 1.9 trillion
MNT

North western and Central Open pit mine deposit contains 1096 Mt of copper
contains ore
0,25% - 37 years
0,15% - 42 years
North western deposit

Central deposit

North western and Central deposit contains 1096 Mt of copper contains ore
0,25% - 37 years
0,15% - 42 years

1490.21

695.8

EXPANSION WORKS

Expansion
works
to
increase capacity of semiautogenously
grinding
section of the Mineral
Processing Plant up to 6.0
Mt.
After expansion work the
capacity increased to 29
Mt.

COPPER CONCENTRATE PRODUCTION

OF MONGOLIA IN 2014
Mongolia 1.4 Mt copper
concentrate, 11.4%

Peru 2.02 Mt copper

concentrate, 17%
Total copper
concentrate import
of China 11.8 Mt

Chile 2.95 Mt copper

concentrate, 52%

TAXES 2014
Mongolian government budget
387.9 billion MNT
Orkhon province budget
42.8 billion MNT
Social insurance fund
31.7 billion MNT
TOTAL

462.4 billion MNT

COPPER CONCENTRATE PRODUCTION PLAN OF EMC

SHORT- TERM AND LONG-TERM TASKS

The main task of Erdenet Mining LLC in the future is to ensure the effective
operation of the company, to increase capacity by reducing production cost, to
solve social issues of workers and preserve reserves of the staff. According to
the strategic concept of development of Erdenet Mining LL up to 2020, the
company has planned to implement the following major works to increase stepby-step production capacity up to 35 million tons a per year.

To introduce the cyclic-flow technology simultaneously using belt conveyor

and motor transport in Open Pit Mine.
Expansion works to increase capacity of semi-autogenously grinding section
of the Mineral Processing Plant up to 6.0 Mt.
To conduct detailed geological prospecting works in 5 licenzed areas of
Erdenet Mining LLC
Copper smelting plant project with capacity 120 000 of cathode copper

COPPER SMELTING PLANT

PROJECT

COPPER SMELTING PLANT

Government Activity Program for period of 2012-2016

Clause 14.17 of Industrialization Program of
Mongolian Government approved by Resolution
No.229 of Mongolian Government dated 2009
Item 3 Copper smelter plant of List of the major
projects of priority for realization by Government
Resolution No.320 of Mongolian Government dated
2009 and Parliament Resolution No.21 dated 29 April
2010

COPPER SMELTING PLANT PROJECT

CONCEPT STUDY
2011

PRE-FEASIBILITY STUDY
2014

FEASIBILITY STUDY
2015

COPPER SMELTING PLANT LOCATION

ERDENET
BOR-UNDUR

TSAGAAN SUVARGA
Copper mine
Copper Smelter

OYU TOLGOI

SKS COPPER SMELTING TECHNOLOGY

COMPARISON OF SMELTING TECHNOLOGY

PROCESSES

AUSMELT (Finland)
ISASMELT (Australia)

FLASH
(Finland)

MITSUBISHI
(Japan)

SKS
(China)

Adaptability of raw materials

Good

Poor

Good

Very good

Concentrate drying

No

To <0.3%

To <1%

No

Smelting temperature(

1200~1220

1250~1280

1220~1230

1150~1180

Oxygen concentration %

40~50

70~80

56

70~75

Coal to concentrate %

2~3

Consumption of
fuel

1~2

Fe/SiO2

1.2~1.4

1.4~1.6

~1.2

1.8~2.0

Slag/Concentrate

70%~75%

65%~70%

70%~75%

60%~65%

Copper content in discarded

slag

<0.3

<0.3

~0.7

<0.3

Cu recovery

Middle

Middle

low

High

Energy consumption of anode

copper (kgce/t)

~200

~220

~180

~120

Investment*

1.1

1.5

1.1

Cost*

1.3

1.4

1.1

APPLICATION AND PRODUCTION PRACTICE

OF SKS TECHNOLOGY
NO.

PROJECT NAME

COUNTRY

THROUGHPUT

PROCESS

STATUS

Fangyuan Phase I Cu Smelter

China

500kt/a Cu Concentrates

SKS-SF+PS

2008

Humon Cu Smelter

China

300kt/a Cu Concentrates

SKS-SF+PS

2010

Huading Cu Smelter in Baotou China

400kt/a Cu Concentrates

SKS-SF+PS

2012

Yuanqu Cu Smelter of
Zhongtiaoshan Group

China

500kt/a Cu Concentrates

SKS-SF+PS

2014

Yuguang Cu Smelter

China

400kt/a Cu Concentrates

SKS-SF+SKS-CF 2014

Cu Smelter of Qinghai Cu
Corporation

China

600kt/a Cu concentrate

SKS-SF+PS

Fangyuan Phase II Cu Smelter China

1,000kt/a Cu concentrates

Zhongyuan Gold Smelter

China

1,500kt/a Cu concentrates

Cu Smelter of Minmetal
Copper (Hunan) Corporation

China

555kt/a Cu concentrate

SKS-SF+PS

Under design

China

1,500kt/a Cu concentrates

SKS-SF+PS

Under design

China

660kt/a Cu concentrates

SKS-SF+SKS-CF Under design

10
11

Houma Cu Smelter of
Zhongtiaoshan Group
Lingbao Cu Smelter of
Jincheng Metallurgical
Corporation

Under
construction
Under
SKS-SF+SKS-CF
construction
SKS Smelting
Under
+FCF
construction

APPLICATION AND PRODUCTION PRACTICE

OF SKS TECHNOLOGY
in the overseas
NO.

PROJECT NAME

COUNTRY

THROUGHPUT

PROCESS

STATUS

Sin Quyin Cu Smelter

Vietnam

150kt/a Cu Concentrates SKS-SF+PS

Feasibility
Study

Mongolia 120000t/a
Copper Smelting Project

Mongolia

500kt/a Cu Concentrates SKS-SF+SKSCF

Feasibility
Study

Indonesia Copper Smelter

Indonesia
Project

1000kt/a Cu
Concentrates

SKS-SF+SKSCF

Feasibility
Study

200kt/a Copper smelter

for Russian Copper
Company

Russia

1000kt/a Cu
Concentrates

SKS-SF+SKSCF

Concept study

Anglo America. Charges

Smelter

Chile

1,000kt/a Cu
concentrates

SKS-SF+SKSCF

Pre-feasibility
Study

CODELCO--Las Vantanas
Chile
Smelter

450~550kt/a Cu
concentrates

SKS-SF+PS

Pre-feasibility
Study

SKS-SF Smelting furnace

SKS-CF Converting furnace

COPPER SMELTING PLANT PROJECT

Characteristics of SKS smelting technology

1 Suitable for treating diversified concentrates with Cu
content ranged from 12% to 30%, and high content of Au Ag
As.
2 Great ability of removing impurities
3 Low investment with short process
4 Low energy consumption
5 Low operation cost and high Cu recovery
6 Easy and safe operation
7 Good environmental performance

Thank you for your attention.