ULAANBAATAR, MONGOLIA

2015

DISCLAIMER
This presentation may contain forward looking statements that are subject to risk factors associated with the natural
resources sector and the business of coal mining.
Sharyn Gol JSC believes that the expectations reflected in these statements are reasonable however they may be
affected by a range of variables and changes in underlying assumptions which could cause actual results or trends
to differ materially, including but not limited to: price fluctuations, supply and demand dynamics, currency
fluctuations, drilling and production results, estimates of reserves and resources, loss of market, industry
competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and
financial market conditions in various countries and regions, political risks, project delay or advancement, approvals
and cost estimates.
Sharyn Gol JSC believes that any information contained in this document was accurate as Apr 2014. However,
Sharyn Gol JSC does not warrant its accuracy or reliability.
This information is provided expressly on the basis that recipients will carry out their own independent enquiries into
the matters contained here in and make their own independent decisions about the affairs, financial position, or
prospects of Sharyn Gol JSC; who reserves the right in its absolute discretion, to update or amend and/or
supplement any information at anytime.

Anniversary Celebrations
July 31 - August 1

Located in Darkhan-Uul Aimag

220 km North of UB City

Discovered
1930

Mining Started
1965
Exploration
1958-1960

Drill program,
JORC report
2011

Listed in MSE
1993

Peak production
2.5 Mtpa
(1975-1983)

Fully privatized
2003

50 Year
Anniversary
2015
Wash plant
commissioned

Sharyn Gol coalfield was discovered in the 1930s, but it wasnt until 1958 that a joint venture between
Mongolian and Russian exploration teams recognized its economic potential.
Exploration was conducted up until 1961, culminating in mine construction commencing in 1962, with first
production achieved in 1965.
By 1975, the mine was producing 1.1 Million tons per annum (Mtpa) before expansion to a design capacity of
2.5 Mtpa, between 1976 and 1980.
However, due to the withdrawal of Soviet financial support, transition period to market economy, production
was unable to keep pace and a gradual reduction in coal production was experienced in the 1990s.
In 2003, company fully privatized

Transition from SOE to Private

Enterprise
Production Graphic
2500
2000
1500
1000
500
0

Turnaround Story: Fundamentals

Firebird fund took control of the company

New management developed and began companys rebuilding
program, includes short term goals:

Re-measuring its reverse and resources

Stabilize and improve financial situation
Fleet innovation
Expand market
Develop value-added production

 Mine Development and Exploration Program 12.7 Billion MNT

Business Development (Wash Plant and Naco Fuel JSC Acquisition) 8.1 Billion MNT
Fleet Modernization Program 4.3 Billion MNT
TOTAL INVESTMENT 25.1 Billion MNT (equal to 16.0 Mill USD)

COAL WASH PLANT

NACO FUEL JSC

Total Resource (air dry), SW Area. Above 300m depth

Class

Tonnes

RD,

ASH,

CV,

IM,

VM,

FC,

S,

g/cc

Kcal/kg

Measured

61,371,000

1.7

33.4

4,480

2.9

29.0

34.6

0.9

Indicated

31,222,000

1.7

35.4

4,344

2.9

27.9

33.8

0.9

Inferred

24,641,000

1.7

35.7

4,405

2.9

27.8

33.6

1.0

117,233,000

1.7

34.4

4,428

2.9

28.5

34.2

0.9

Total

Total Resource (air dry), Satellite Area. Above 300m depth

Class

Tonnes

RD,

ASH,

CV,

IM,

VM,

FC,

S,

g/cc

Kcal/kg

Measured

110,697,000

1.7

32.5

4,382

2.8

29.3

35.4

1.4

Indicated

48,314,000

1.7

32.3

4,352

2.8

29.5

35.4

1.6

Inferred

61,318,000

1.6

30.3

4,479

2.6

30.4

36.8

2.1

220,329,000

1.7

31.8

4,403

2.7

29.7

35.8

1.7

Total

Total resources 337 million

tons (Micromine JORC
standard report)

Wash plant yielded 11.9%

ash, 0.6% sulfur, calorific
value of 6,137 Kcal/kg (air
dried basis)

Wash Plant manufactured by Derek Parnaby

Feed-in Capacity 600k ton per annum

Commissioned 6/17/2015

2nd operating wash plant in Mongolia

Business Development Naco Fuel

JSC

In 2012, Sharyn Gol JSC purchased 92,93% of the company.

The company was listed in MSE in 2007 and is operating as a public company since.
Produces smokeless fuel, coal gas, tar
Has the capacity to produce 65K tn per annum
One of the few existing plants in Mongolia
Technical improvements under progress
Potential market for smokeless fuel

Fleet Modernization 4.3 Billion MNT

8 new 65t Komatsu 65 dumpers for over burden removal
6 new Nord Benz coal trucks
1 new Sandvik drill for blast holes
3 new Doosan excavators, 35t and 70t size
New Caterpillar D9 bulldozer

Whats in the Future

In 2015 thermal coal and coal based product demand is to reach 15 Mtpa
Government of Mongolia has approached to development program for
Darkhan City Area as heavy industrial zone and power generating expansion
point due the shortage of power grid.
Darkhan TPP expansion 68 MW expected
Darkhan Heavy Industrial Development Zone development 128 MW
Erdenet TPP expansion 48 MW
Erdenet Copper Mines Extension on the power generating section
New Coal Heating Power Plants Project /above 5 GW/
Pig Iron Plant extension
Smokeless fuel demand to reduce the air pollution in areas of Ulaanbaatar,
Darkhan and Erdenet Cities
Cement Factory expansion due to rapid increase of construction demand
Increase in production to 2.5 Mtpa
Sales mix with higher proportion of industrial or unregulated sales

The Future

Mongolian Energy Consumption up to 2020 (MW)

5000
4500

Power
Deficit

4000

CHP 2

3500

CHP 3

3000

CHP 4

2500

Erdenet
2566

2000

CHP 5

1500
1000

Darkhan

774

Import

214

Demand

500
0

2011

2012

2013

2014

2015

2020

In 2015 thermal coal and coal based product demand is to reach 15 Mtpa to cover the deficit of energy
in near future.

Power Generation Projects

Power plant

Status

Producing power
capacity

Location

Demand
(000s ton)

1 Amgalan Powerplant

Operational

300

killowatt

Ulaanbaatar

500

2 Powerplant #3

Operational

50

Megawatt

Ulaanbaatar

300

3 Powerplant #4

Operational

100

Megawatt

Ulaanbaatar

500

4 Dornod Powerplant

Operational

100

Megawatt

Dornod

300

5 Bayanteeg Powerplant

Plan

40

Megawatt

Uvurkhangai

250

6 Telmen Powerplant

Plan

100

Megawatt

Zavhan

450

7 Ulaanbaatar #5 Powerplant

Plan

450

Megawatt

Ulaanbaatar

3000

8 Tavantolgoi Powerplant

Plan

450

Megawatt

Sogth gobi

3000

9 Baganuur Powerplant

Plan

700

Megawatt

Baganuur

1600/3200

10 Shivee-Ovoo Powerplant

Plan

300

Megawatt

Gobisumber

1300

11 Chandagan Powerplant

Plan

600

Megawatt

Khenty

3000

TOTAL

3,190

12,600

Industrial Projects
Status

Pr

Location

1 Darkhanii tumurlgin uildver

Operational

Steel

Darkhan

Demand
(000s ton)
300

2 Erdenet Uildwer

Operational

Cement

Erdenet

250

3 Khutul Cement & Shokhoo

Operational

Cement

Ulaanbaatar

120

4 Erel Cement

Operational

Cement

Darkhan

100

5 Achit ikht

Operational

Copper

Erdenet

10

Power plant

TOTAL

12,600

Retail Market
Retail
715
710

710

705
700

700

Retail

700

695
690

690

690

685
2012
680
0.5

1.5

2014

2013
2

2.5

3.5

2015
4

4.5

2016
5

5.5

SHARYN GOL JSC

Mongolia Stock exchange trade date index

HALF CENTRY EXPERIENCE

THANK YOU