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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 265

THE MINERAL INDUSTRY OF MONGOLIA—1992  265underground mine and
an open
pit mine as well as a fluorspar concentrator at Bor Ondor in Hentiy Aymag.
It also operated open pit mines at Khar-Airag, Khajuu (Khazhu) Ulaan, and
Urgon (Orgon) in Dorngovi Aymag and an underground mine at Berh in Hemty
Aymag. Output of fluorspar from all mines except from the Berh and Urgon
Mines was delivered to Bor Ondor for concentration. 
 In an effort to expand its product market into the Western World, Mongolsovtsvetmet
was upgrading the existing concentrating facilities to raise the content
of calcium fluorite in the concentrate from 94 % to between 96% and 98 %
. Metallurgical-grade fluorspar produced from the Berh Mine and the Urgon
Mine was exported to Russia. Fluorspar produced from the Berh Mine is of
a higher grade than that of all other mines in Mongolia. 
 Mongol-Czechoslovakmetal, which operated an open pit mine with a capacity
of 45,000 mt/a at Chuluut Tsagaan Del in Toy Aymag, shut down its operation
in Mongolia in early 1992. 
 Zeolite.—In March, the Three River Geological Co. of Mongolia
enter into an agreement with Russia to establish the joint venture called
Gurvan Gol Co. for development of natural zeolite deposits in the Tsagaan
Tsav area of Dornogovi Aymag, about 30 km south of the Sainshand railroad
station. The zeolite * mine, located near Zuun Bayan, was expected to produce
15,000 mt/a of clinoptilolite. Clinoptilolite reserves at the Tsagaan Tsav
area were estimated at 4. 8 Mmt. There is a railroad branch line connecting
Zuun Bayan with Sainshand station of the Tran-Mongolian Railroad. 
Mineral Fuels 
 Coal.—Coal production dropped to the lowest level since 1986 owing
to the continued shortage of explosives, fuel, and spare parts for mining
equipment, batteries, lubricants, and tires for dump trucks as well as the
temporary shutdown of the Shariyn Gol Mine in Selenge Aymag and the Nalaikh
Mine in Toy 
Aymag because of flooding. According to the Ministry of Fuel and Energy,
17 coal mines were operating in 1992; of those, only the Baga Nuur Mine,
the Shariyn Go! Mine, and the Shivee Ovvo Mine produced substantial amounts
of coal. Coal production in 1992 was about 21 % below the average annual
production in the past 6 years. 
 In 1992, the Baga Nuur Mine, the country's largest coal mine, produced about
65 % of total coal production and the Shariyn Gol Mine produced about 20
% . The coal output from Nalaikh Mine, an underground mine about 35 km southeast
of Ulaanbaatar, was down 40% from that of 1991 because of a mine fire and
flooding problems. However, a new open pit coal mine at Shivee Ovvo, 15 km
east of the Choyr railroad station in the northwestern part of Dornogovi
Aymag, was brought on-stream in March. The initial monthly production at
the Shivee Ovvo Mine reportedly was about 9,000 tons, then increased to about
23,300 tons by yearend. 
 In September, the Ministry ofFuel and Energy organized and held a 2-day
international seminar in Ulaanbaatar on the development of Tavan Tolgoi in
southern Govi. The Tavan Tolgoi coal mine, about 400 km west of the nearest
railroad station at Tsimog, is composed of 16 coal seams with thicknesses
ranging from 3 m to 30 m each. According to the latest estimate by a Russian
survey team, coal reserves were estimated at 5,000 Mmt, of which 1,500 Mmt
is metallurgical (coking) coal. Recoverable coal was estimated at 1 ,030
Mmt, of which 730 Mmt is coking coal. The coking coal reportedly has low
sulfur and phosphorus content, but has a relatively high ash content and
poor washability.5 The Government was seeking foreign investors to jointly
develop an open pit mine with a capacity of 20 Mmt/a. Currently, the mine
was producing about 100,000 mt/a of coal for local consumption. Infrastructure,
such as railroad, powerplant, water sources, and communication network, is
prerequisite to development of a large-scale coal mining operation. 
 Petroleum.—Mongolia had not produced oil and gas from its Zuun
Oilfield in Donogovi Aymag since 1970. Mongolia has relied on imports from
Russia to meet the requirement for most of its refined petroleum products.
In 1992, a limited amount of refined petroleum products were imported from
China and other Asian countries under barter trade agreements, but Russia
remained the dominant supplier of refined petroleum products, especially
gasoline, aviation fuel, and diesel, in 1992. 
 According to the Ministry of Trade and Industry, imports of refined petroleum
products in 1992 were as follows: 209,800 tons of gasoline, 146,800 tons
of diesel, 15,000 tons of aviation fuel, 46, 100 tons of mazut (fuel for
priming the boiler), and 12,200 tons of lubricants. In Mongolia, all refined
petroleum product imports are handled by the state-owned Mongolian Petroleum
Import and Supply Organization. The organization also controls distribution
of petroleum products through 10 storage and transshipment points to deliver
the products to 25 regional distribution centers. The regional centers, in
turn, supply consumers in their respective 
 The Houston-based Western Geophysical of the United States reportedly had
completed a 1,500-km speculative seismic survey covering the East Govi, Tamsag,
and Choybalsan basins in 1992. According to Western Geophysical, the seismic
program, which began in the fall of 1991, was based on an exclusive agreement
signed between Mongol Gazyn Tos (MGT), the Mongolian state-owned petroleum
company, and Western Geophysical in 1991. In June 1992, MGT announced opening
about 12 blocks of contract areas mainly in the previous oil-producing East
Govi basin and the Tamsag, Choybalsan, and Nyalga basins for joint-venture
oil and gas exploration with foreign exploration companies. 
 In early 1992, MGT signed an agreement with Amgol Inc. of the United States
to rehabilitate and restore oil production facilities in the Zuun Bayan and
Tsagaan Els areas in southeastern Mongolia beginning in 1993. Under the 

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