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Bureau of Mines / Minerals yearbook mineral industries of Asia and the Pacific 1992
Year 1992, Volume 3 (1992)

Wu, John C.
Mongolia,   pp. [260]-266 ff. PDF (2.0 MB)


Page 264

264  THE MINERAL INDUSTRY OF MONGOLIA—1992newly developed Khailaast
(Hailaast) gold mine, with a capacity of about 250 kg/a, was operated by
Khailaast Gold Enterprise. Two new gold projects expected to be undertaken
by joint venture with foreign investors or Mongolian enterprises were the
Bumbat and Bayan Gol projects in Zaamar district of Toy Aymag. 
 In May 1992, Morrison Knudsen Corp. (MK) signed an agreement through its
subsidiary, Morrison Knudsen Gold company, with Mongol Erdene, a Mongolian
state-owned trading and mining company, to jointly explore, develop, and
produce gold from the Boroo deposit in Toy Aymag. The Boroo project, about
130 km northwest of Ulaanbaatar, was the first major U.S. investment in the
Mongolian mining sector. According to MK, the jointventure firm had obtained
a license from the Mining Department to explore a 7,770-km2 area in 1992.
The drilling program, which was conducted in the second half of 1992, had
proven the previously estimated ore reserves of 20 Mmt, with an average ore
grade of 0.0018 gram/mt of ore. MK estimated that about 3 1 . 1 tons (1 million
troy ounces) of gold was recoverable from the Boroo deposit. MK was expected
to plan and design the mine, process facilities, and infrastructure as well
as to prepare and submit a bankable feasibility study for securing a loan
for the project.4 
 Lead and Zinc.—In July, the Ministry of Geology and Mineral Resources
reached a 3-year joint exploration agreement with the Metal Mining Agency
of Japan (MMAJ) to conduct a detail drilling program for a subsequent mine
development of the Tsav (Tsaviin) leadzinc deposit beginning in 1992. The
Tsav deposit, about 130 km northeast of Choybalsan, the capital of Dornod
Aymag, had been explored by the Russian survey team. According to MMAJ, the
latest Russian exploration conducted in 1991 showed that ore reserves at
Tsav were about 4.4 Mmt averaging 6.4 % lead and 3.3 % zinc, plus 253 g/mt
silver. Under the 3-year agreement, MMAJ was to conduct a 
drilling program at the No. 4 ore body, to analyze the data from the latest
exploration, and to conduct sample tests beginning in the second half of
1992. 
 The Tumurtiin Ovoo zinc deposit, about 16 km north of Baruun-Urt, the capital
of Suhbaatar Aymag, was still under study by the prospective investors for
subsequent development. In 1992, C. Itoh Co. of Japan reportedly was investigating
the property. The ore reserves at the deposit were previously estimated by
the Mongolian-Russian survey team at 7. 8 Mmt averaging 13 % zinc. 
 Tin and Tungsten.—Production of both tin and tungsten concentrate
continued the 1991 downward trend in 1992 owing to the lack of fuel and spare
parts as well as reduced exports. The Tsagaan-Davaa tungsten mine in Toy
Aymag remained shut down in 1992. According to MGMR's Mining Department,
production of tin concentrate from the Bain-Mot (Modot) and Khujikhan Mines
in Henity Ayamg was only 62.9 tons, a sharp drop from 140.9 tons in 1991
and 317.4 tons in 1990. The Khujikhan Mine also produced tungsten concentrate
as a byproduct of tin mining. The average metal content of tin concentrate
produced from the Modot area was about 50 % Sn02. 
 Production of tungsten concentrate was by a state-owned enterprise at the
Ulaan Uul and Khovd Gol Mines both in Bayan Olgiy Aymag. According to the
Mining Department, the Ulaan Uul Mine was not operating in 1992. Production
of tungsten concentrate, which accounted only the state-owned mining operations,
was only 25 tons in 1992, compared with 30 tons in 1991 and 45 tons in 1990.
The average metal content of tungsten concentrate from the state-owned mines
was about 60% W03. Most joint-venture operations with East European countries
for the production of tin and tungsten had been closed since 1990. 
Industrial Minerals 
 Cement.—Cement production dropped 
sharply in 1992 because of a curtailment in construction of plants, office
buildings, and apartments in Ulaanbaatar and other industrial areas due to
the withdrawal of Russian construction companies and Mongolia's financial
and economic difficulties. Production of cement was by Hutol Cement and Lime
Combine in Hutol (Khutul) and Darhan Cement Co. in Darhan, both in Selenge
Aymag of northern Mongolia. 
 Hutol Cement and Lime Combine, which operated a 500,000-mt/a cement plant
and 65,000-mt/a hydrated lime plant using Russian technology and equipment,
produced only 40,000 tons of cement in 1992, compared with 200,000 tons in
1991 ; and 50,000 tons of lime compared with 76,000 tons in 1991. The combine,
about 65 km southwest of Darhan, also operated a 750,000-mt/a limestone quarry,
about 7 km north of the cement plant. Limestone reserves at the Hutol Mine
were estimated at more than 20 Mmt. Other raw materials, such as gypsum,
zeolite, basalt, and high-grade coal for cement manufacturing, were imported
from Russia. The work force at the combine was about 1,000; of those, about
52 % were female workers. Darhan Cement, which operated a 150,000-mt/acapacity
plant using Czechoslovakian technology and equipment, produced about 70,000
tons in 1992. Mongolia exported 16,000 tons of cement in 1992. 
 Fluorspar.—Production of direct shipping metallurgical-grade fluorspar
ranging between 45 % CaF2 and 95% CaF2 for exports mainly to Russia was estimated
at 180,000 tons. Production of fluorspar, which averaged about 32 % CaF2
for concentrating into acid-grade calcium fluoride, was estimated at 360,000
tons. The sharp decline in the 
1992 overall production of fluorspar was due mainly to the closure of the
Chuluut Tsagaan Del Mine in Toy Aymag in early 1992 and reduced exports of
acid-grade calcium fluorite (fluorspar concentrate) to Russia in 1992. 
 In 1992, fluorspar was produced by 
Mongolsovtsvetmet, a joint venture of 
Mongolia (51 %) and Russia (49%). 
Mongolsovtsvetmet operated an 


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