R E D
B A N N E R
O R D E R
O F
L A B O R
MONGOLIAN-RUSSIAN JOINT
ERDENET MINING CORPORATION
www.erdenetmc.mn
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ERDENET MINING C O R P O R A T I ON
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ERDENET MINING C O R P O R A T I ON
WORDS OF GREETING
Mongolian – Russian Joint Erdenet Mining Corporation – Mongolian Vanguard Construction of the 20th Century – has been continually giving enormous contribution continually to the economical progress of Mongolia in its history. Our creative staff has been over fulfilling the production plan regularly and reached the annual ore processing up to 26 million tons. Our task is to reach the annual ore processing up to 35 million tons thanks to the step-by-step realization of technological modernization up to 2020 and timely enhancements on productivity and innovation and pursuant to the strategic planning. Our company has gained a status of the world leading mining companies, giving preference to the principle “Safety First”. As the social responsible company, Erdenet Mining Corporation is proud of its responsibilities as the actual investor to the all of Mongolian sectors, even the pivot and key of the prosperity of Orkhon province and Erdenet city. Finally, I would like to wish high success and all the best personally and on behalf of over 6000 employees of EMC, which has been leading the Mongolian TOP-100 Entrepreneurs over 10 years.
Mr. DAVAATSEREN Tserevsamba Director General of Erdenet Mining Corporation, Honored Industrial Worker of Mongolia
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WORDS OF GREETING
Over the years of its activities, Erdenet Mining Corporation has earned a high reputation in the international market and become one of the leading Asian companies. By a Decree of the President of Mongolia, the company has been awarded The Red Banner Order of Labor on the occasion of the 35th anniversary. Our company works closely with many leading companies worldwide. Over the past 5 years, as a result of permanent modernization of production, introduction of new machinery and technologies, the company produced 16,9 thousand tons of copper in copper concentrate, 1,1 thousand tons of molybdenum in molybdenum concentrate and earned a net income of MNT 741,0 billion. Step-by-step increase of production capacity is the main factor for increase of the effectiveness and competitiveness of Erdenet Mining Corporation. The company’s all successes and achievements depend on our solid staff and maximum use of their talent and professional skill. Today experience and knowledge of work specifics serves as a basis of further growth of the company and prosperity of Mongolia.
Mr. ALEXANDER PETROVICH FOMENKO The First Deputy Director-General and Chief Engineer Of Erdenet Mining Corporation
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ERDENET MINING C O R P O R A T I ON
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Deputy General Director for production Dorjiin DAVAASAMBUU
Deputy General Director for social issues Surengiin SUVDAA 4
Deputy General Director for economics Bulgaagiin ALTANKHUYAG
Deputy General Director for development Batiin NAMKHAINYAMBUU
Deputy General Director for commerce Khukhuugiin ULZII-ORSHIKH
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ERDENET MINING C O R P O R A T I ON
MINING Ore body of the copper-molybdenum deposit in the “Erdenetiin-Ovoo” stretches to the west from the east and consists of 4 main parts, including Central, North –western, South-eastern and Tsagaanchuluut. The ore body of copper-molybdenum consists of the minerals including chalcosine, chalcopyrite, turquoise, bornite, brochantite, azurite, molybdenite), delafossite, tenorite, sericite and other minerals. Now The North –western part is mined by open method. The length of pit in the primary mining is approx. 2500 m, the width is approx.1500 m, the lowest level is 1265 m and the depth has been reached up to 135 m. The top of the mount was 1606m from the sea level in the initial period of operation. The pit is planned to have the ledge height of 15 m, the sidewall of 370-420, the least stripping area of 45-50 m. LIEBHERR-994B hydraulic excavators from Germany, chain excavators including EKG-10 and EKG-15 from Russia operate for the mining works and drilling machine СБШ-250 MHA-32 are used for drilling. Chain and wheeled bulldozers such as Liebherr PR-764, Komatsu D-275A, 824G, WD-500, wheeled loaders L-581, WA 800, WA 600 and, motograders GD-825, CAT 16H etc., from USA, Japan, and Germany are used for spoil heap, road construction and repair for technological haulage. A powerful maintenance centre with an area of 6000m2 operates to perform all kinds of repair of mining equipment.
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OPEN PIT MINE
The Open Pit has a plant for production 15000 tons of water-proof emulsion explosives per year and uses explosives of Orica Excel, Australia. Since 2009, the mine introduced remote blasting apparatus from Rothenbuhler, USA in blasting works. In 2011, the Open Pit won a nomination “The Best Mine” announced by the “Mongolian Mining Journal Awards”.
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ERDENET MINING C O R P O R A T I ON
TRANSPORTATION
Cu Auto Transportation Department comprises 3 main sections including technological haulage, all variety vehicles and special purpose vehicles as well as 3 auto repair services for vehicles. The department employs over 830 workers.
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THE TRANSPORTATION FACILITY UNIT It operates with over 290 vehicles of different models, including heavy load trucks 130 tons BeLAZ-75131 and all kinds of cars for performing transportation services including haulage of ore mass, transporting the employees to the industrial sites, repair or maintenance or cleaning of roads and areas, piling spoil banks or heaps as well as transporting freight and materials required for production operation. The technological haulage section transports 17.9 million m3 of mining mass and has a freight turnover of 150 million tons/km per annum. The all variety vehicle section and special purpose vehicles and machinery section perform works of 474.9 thousand machine/hours annually. For service and maintenance purposes, a German technology “TipTop” for over-size tire-repairs and restoration was adopted. Lubricants Spectral Analytical Laboratory has been commissioned in order to prevent any damages in car engines, use engine capacity at a maximum extent, replace lubricants depending on working conditions which reduced consumption of engine oil for 40-50% and increased working rate of engine by 2-3 times. During the last years, the auto transportation facility has introduced the following into the operation: • Cummins type stand used for checking and calibrating fuel high pressure pump and spray jet of motors; • Equipment used for testing, calibrating or repairing of feeding systems; • Auto Service equipped with equipments or devices from Italy and Belgium; • Fully automatic car wash; • VIST system used for remote monitoring and controlling using satellite system; and • Auto tracker system used for controlling using mobile network.
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ERDENET MINING C O R P O R A T I ON
PROCESSING
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The Mineral Processing Plant is the main production unit with technological circuits including ore crushing, grinding, flotation, filtration, drying, and shipping of the copper and molybdenum concentrates and collection of technological wastes. Two technological lines for ore preparation operate in this plant. The first line is capable to process 20.5 million tons of ore per year and it crushes ore in three stages using cone crushers and conveys the crushed ore for 2-stage grinding processes using mills МШЦ 5.5 х 6.5, МШЦ 5.8 х 6.9 and МШЦ 3.2 х 4.5. The second line is autogenic grinding section with the annual capacity to receive 5.150 million tons of ore for grinding. Ore is crushed using jaw crushers and grinded by the autogenic grinder MMC-90x30 with volume 160 cubic meters in the first stage and by the ball mill МШЦ 5.5 х 6.5 with the volume 140 cubic meters in the second stage and the grinded ore goes to the grinding and enrichment section autogenously in the form of pulp.
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THE MINERAL PROCESSING PLANT The future commissioning of the Section 6 enables us to process 35 million tons of ore per annum. Ore processing technology operates with flotation methods and the copper and molybdenum concentrate is extracted using collective flotation, copper and molybdenum-pyrite and separation process. Waste pulp discharging from the concentration process is compressed to the disposal pond. The precipitated water in the pond is recycled for technological processes. Mineral Processing Plant produces copper and molybdenum concentrates which meet international standards.
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ERDENET MINING C O R P O R A T I ON
EQUIPMENT MAINTENANCE AND MANUFACTURING Machinery Repair Plant performs the basic functions such as capital, periodic and current repairs to the technological equipment; repair of the worn parts; armoring the equipment with the rubber or corundum; manufacturing or fabricating metal structure or nonstandard equipment or spare parts; repair to the electrical equipment or devices; diagnosis or repair to the lifting machineries; and smelting of steel, cast iron and non-ferrous metals for casting parts. The plant manufactures spare parts and rubber products of many kinds of mining equipment including excavators, bulldozers from the Open Pit, crushers, mills, 20 types of pumps, cells of flotation machines, hydrocyclones from the Mineral Processing Plant, 110, 130 tons Belaz dump trucks, bulldozers, auto graders, loaders from Auto Transportation Department. The development task of the plant is to adopt up-to-date technologies, to increase the number of import-replacing products which meet market and customer needs and appropriate standards.
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MACHINERY REPAIR PLANT
www.rmz.mn
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ERDENET MINING C O R P O R A T I ON
MARKET AND COMPLIANCE ASSESMENT Quality Control Department introduced ISO 9001:2008 standards of product quality management system to keep national and international accreditation at a high level. Erdenet Mining Corporation implements a complex system of quality control and environmental safety control. Its laboratories have high-qualified personnel and comprehensive collection of analysis methods, equipment and technology to conduct independent laboratory analysis meeting ISO/IEC 17025:2007 standards in the sector of mining, heavy industry (metallurgy), oil and environment and implements a complex system of modern information (LIMS) and chemical substances management.
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QUALITY CONTROL DEPARTMENT Quality Control Department conducts laboratory testing on geology and prospecting works in Erdenetiin Ovoo Deposit, ore mining, technological conditions of Mineral Processing Plant, metal extraction of copper and molybdenum, quality of ferrous and nonferrous metals manufactured in Repair and Mechanical Plant, steam and water conditions of furnaces of Thermal Power Station, quality of coal, petrol, fuel, lubricants materials necessary for heavy machinery and mechanism of the Motor Transportation Department and import and export products and ensures the unity of technological control and measurement. The department consists of Administration, Technical Control Service, Metrology Service, Central Chemical Laboratory, Metals laboratory, Laboratory of fuels and lubricants, Fuel-water laboratory. In the years 1987-2010the laboratories and Metrological Service were accredited 8 times on MNS ISO/IEC 17025, Technical Control Service was accredited 2 times MNS ISO/IEC 17020.
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ERDENET MINING C O R P O R A T I ON
POWER ENERGY
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ENERGY WORKSHOP The Energy workshop serves plants, entities and population of Erdenet city with water supply, sewerage, supplies Erdenet Mining Corporation with recycling water, as well as supply of oxygen and acetylene required for production. Every year, the unit extracts and distributes 20-21 million cubic meters of potable water for the consumption of population of Erdenet city, entities or technological needs of Erdenet Mining Corporation. Also it treats and purifies 8-9 million cubic meters of sewage water with purifying percentage of 96-98% per year. Moreover, the unit supplies technological water of 70-74 million m3 to Erdenet Mining Corporation from the artificial pond, as well as it produces and supply 34-36 thousand tons of acetylene and 116-118 m3 thousand oxygen and nitrogen for the consumption of Erdenet Mining Corporation and the entities in Erdenet city.
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ELECTRIC SHOP
Thermal power station was commissioned in 1976. The plant has 6 БКЗ-75-39 ФБ furnaces capable to produce 75 tons of steam per hour with the atmospheric pressure 39 ata each and heat of 4350C. The projected capacity of heat is 310 Gcal/h. During the early years, it supplied the whole Erdenet city with heat. Since 1988, it has been supplying Erdenet Mining Corporation with the steam and hot water , as well as the technological demand of the entities and building structures in the industrial area. Annual 370 thousand gcal.of power heating has been distributed through heat lines with a length of 82.8 km. In 2012, the station has expanded as a thermoelectric plant by installing and launching 2 pieces of turbine generators having capacity of 2.5 MWt from Dresser Rand, USA.
Electric shop provides annually approx. 760 million kW of electrical energy annually via a major distribution network equipped with 94.4 km of cable lines, 37.4 km of overhead lines, over 480 circuit breakers, approx. 2000 other unit riggings, as well as sub-stations installed with the capacity of 374.6 mW of 6-110 kW.
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ERDENET MINING C O R P O R A T I ON
Cu FROM THE HISTORY OFREFORMATIONAND PROSPERITY Year of 1978. The first concentrate was produced. The initial stage of operation of the Mineral processing plant having an annual capacity of 4 million tons of ore was commissioned. Year of 1980. The second stage of the Mineral processing plant with ore processing capacity of 8 million ton per year was commissioned. Year of 1981. Launched the fourth stage of the Mineral processing plant with the development of its annual ore processing capacity up to 16 million tons. Year of 1989. Launched the fifth stage of operations of the Mineral processing plant with the development of its annual ore processing capacity up to 20 million tons. The overall production reached 1 million tons of copper in concentrate. Year of 1994. Approved the Strategic Development Concept for 1994-2004 of EMC. The Explosives Plant of EMC was commissioned into operation and suspended the foreign import of high cost explosives. Year of 1995. technical upgrade of flotation machines of VI Section of Mineral processing plant was performed. Open Pit Mine started to use new drilling machine SBSH-250 MHA. Year of 1996. In connection with the Strategic Development Concept for 1994-2004, the resolution No. 05 by the Govern ment of Mongolia was passed to carry out complete technical modernization of the EMC. 136 tons Caterpillar dump trucks and 120 tons BELAZ-7512 dump trucks were adopted. Year of 1997. Upgraded Excavators EKG-10 was launched to the transportation at Open Pit mine. EMC produced overall 2 million of copper in concentrate.
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Mo Year of 2000. Passed the decision to privatize the currently owned apartments to those employees whose years-of-service were above 15 years. The second step decision was passed by the 31st Board Session of EMC to privatize the currently owned apartments by the employees in spite of their years-of-service. Collective flotation section with capacity of 10 million tons was launched into operation and the annual capacity to process ore had reached 24 million tons. Year of 2001. Thanks to a complete technical modernization of coupled section I, the ore processing capacity of the same section reached up to 10 million tons. Year of 2002. Launched 130 tons BELAZ-75145 Dump trucks for transportations at Vehicle Transport Unit. Year of 2005. Launched the “LIEBHERR� excavators, with a bucket volume capacity of 18 m3, for transportations at Open Pit mine. EMC produced 3 million tons of copper in concentrate since its commencement of operation. Year of 2006. Thanks to a complete capacity achievements of the 5th stage of operations of Mineral processing plant, the designed capacity had been increased from 5 million tons to 6 million tons of ore annually. Year of 2008. Chained excavator EKG-15, the first in Mongolia , with capacity for loading 15 m3 of ore was launched. Meeting for 30th Anniversary of Erdenet Mining Corporation was held on December 13, 2010. Year of 2010. Launched the fully upgraded Section#3 with capacity to process 6 million tons of ore per annum. Year of 2011. Replaced and commissioned the flotation Section #4 at the Mineral Processing Plant. Year of 2012. Reached the ore processing capacity up to 26.0 million tons. Year of 2013. Replaced and launched the flotation Section #6 at the Mineral Processing Plant.
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ERDENET MINING C O R P O R A T I ON
PRODUCTION
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TRANSPORTING TRANSMITTING DRILLING BLASTING MINING
CRUSHING PROCESSING
EXPORT
SHIPPING CONCENTRATES
PROSPECTING
INDICATORS
Measuring unit
2001
2002
2003
2004
2005
2006
Ore mass
thousand m3
15889
15865
16730
18410
18650
18550
Ore mining
thousand ton
25346
25787
27010
27920
27550
27090
Ore processing
thousand ton
23807
24447
25327
25280
25300
25550
INDICATORS
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Production index
Measuring unit
2007
2008
2009
2010
2011
2012
Ore mass
thousand m3
18780
18430
15400
16370
17150
17600
Ore mining
thousand ton
27780
27570
28200
27575
27550
27780
Ore processing
thousand ton
25600
25640
25920
26060
26100
26030
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PRODUCTION INDEX
CHART
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ERDENET MINING C O R P O R A T I ON
FORWARD THE DEVELOPMENT STRATEGY According to the strategic plan of development of Erdenet Mining Corporation for the years 2010-2015 /until 2020/, approved by the 43rd Board Session, Erdenet Mining Corporation has set the tasks: to improve the equipment of the plant, to extend the ore processing capacity up to 35 million tons per a year, to reduce cost of unit product, to produce a final product with added value by introducing new techniques and technologies, which are environmentally-friendly and energy saving. Increase of the reserves of raw materials is essential in order to ensure possibility of the long-term operation with high capacity. Now the works are made to extend current mine, to start exploitation of the central part of Erdenetiin ovoo deposit as well as detailed geological prospecting of the preliminary established areas and establishment and confirmation of reserves are made.
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ERDENET MINING C O R P O R A T I ON
SAFETY
FIRST
The company considers the labor safety as a priority, the integral part of the company management and the key criterion for social responsibility of the company. The company regulates the labor safety according to the Constitution of Mongolia, Mongolian Law of Labor, Mongolian Law of Safety and Sanitation, MNS OHSAS 18001:2012 and the policy “Safety First�.
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SAFETY AND HEALTH
SAFETY FIRST
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ERDENET MINING C O R P O R A T I ON
ENVIRONMENTAL MANAGEMENT
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ENVIRONMENTAL MANAGEMENT Erdenet Mining Corporation has been the first company to receive the certificate of ISO 14001:2004 for Environmental Management System in Mongolia.
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DEPARTMENT OF ENVIRONMENT PROTECTION WHITE DUST IN THE TAILINGS FACILITY For the purpose to reduce white dust at Disposal, a program “White Dust” was developed and discussed by the Council of the Minister of Environment and some certain measures and activities are conducted according to the program and plan approved by the order of the Minister of Environment. Last years, company has been conducting works such as grabbing the dust with dark earth and wetting the dust over with waste water. REHABILITATION Erdenet Mining Corporation has been conducting rehabilitation at the site of bare rock heap No. 3 with an area of 22.5 hectare and planted over 29000 trees and bushes as well acclimatized deer and marmots in order to breed endangered animals. ENVIRONMENTAL CONTROL A mobile laboratory installed at Gazel vehicle, equipped with up-to-date and high precision machine-tools and instruments conducts chemical, chemical-physical measurement and analyses and determines contamination rate and controls company’s and regional environment. CLOSURE MANAGEMENT Erdenet Mining Co.Ltd is developing a plan of closure management within the social responsibility and realizes a policy oriented to the future with a purpose of creating a plant for producing flotation equipment, Erdenet university and an International Diagnostic and Medical Center.
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SOCIAL RESPONSIBILITIES EDUCATION
The School of Technology is operated as a Complex “Education+Research+Production” for the purposes to educate, train, qualify or reserve higher educated personnel, professional workers and retraining or improvisation. The school has been providing the students with Bachelor degree programs in majors of Mineral Processing Technology, Metallurgy, Mining Technology of Utilization, etc., as well as conducting Master degree program majoring in Production management jointly with School of Computer Science and Management. Moreover, vocational training courses to train and reserve professional workers in mining sector have been conducted on orders of “OyuTolgoi” Co., Ltd., “MAK” Co., Ltd., “Energy Resource” Co., Ltd., and so on.
HEALTH The Medical sanatorium provides the services including diagnosis, treatment, and rehabilitative treatment to all the workers, pioneers, veterans, disabled workers of Erdenet Mining Corporation due to occupational diseases of Erdenet Mining Corporation. Over 6000 employees have been involved with preventive check-ups and examinations by highly specialized doctors and physicians of the medical sanatorium according to the schedule in regular basis. It is completely equipped with up-do-date medical gauges, devices and equipments. In 2013, the medical sanatorium was reissued the Accreditation Certificate.
RESORT The Resort “Selenge” has been serving the employees of the company all year round. Besides the rendering resort services, it has been paying much of its consideration to the ecology. The resort has been feeding more than 10 deer, reindeers and over 50 birds in nearly 10 species. In summer, the resort receives children for summer camp having the capacity of 400 to 450 children per a shift (8 shifts), a total of 3500 children. In addition, the resort strengthens its material bases by building ski resort, sports hall, ground tennis, and basketball or volleyball courts. 28
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MEDICAL SANATORIUM
RESORT “SELENGE” 29
ERDENET MINING C O R P O R A T I ON
SPORTS SPORT COMPLEX Sports Club “Khangarid” has been operating for providing the conditions and environments dedicated for health protection and tone up, and indulge in sports events in order to train and reserve competent athletes in the national, continental or world levels. It is not accidentally said, “Great Sports –Erdenet Mining Corporation are twins”. Sports Club “Khangarid” has been producing outstanding athletes who raise their state flag in the Olympic Games and global arenas.
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CULTURE
CULTURAL PALACE “UURKHAICHIN” Various forms of activities to provide the company’s employees and their family members with opportunity to enjoy their leisure time and relaxation, to discover or develop their abilities or talents, and to satisfy their cultural needs have been organized at the Cultural Palace “Uurkhaichin”, Erdenet Mining Corporation. In particular, the concert “Somnambulant” and the classical theatrical play “Will of heaven”, which have been performed by the artists and performers of Song and Dance Ensemble “Erdenet”, took the Grand Prix and the Cup in the National Competition “Classical Arts 2012”.
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ERDENET MINING C O R P O R A T I ON
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FRIENDSHIP HILL 32
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CONSTRUCTIONS UNDER THE INVESTMENT BY ERDENET MINING CORPORATION LLC THE PARK WITH MUSICAL FOUNTAIN
THE ROCK WATERFALL
THE LIVE FIGURE OF BURKHANBAGSHA
MONUMENT TO MINERS
THE STADIUM
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GENERAL ADMINISTRATION BUILDING: Friendship square, Bayan-Undur soum Orkhon province, 61027 Mongolia. Tel: +976 (0) 1352 73501 Fax: +976 70353002, +976 (0) 1352 73002 REPRESENTATIVE OFFICE IN ULAANBAATAR: Bayanzurkh district, Peace avenue 14, Ulaanbaatar city ,Mongolia. Tel: +976 (0) 11 320561, Fax:+976 (0) 11 312039 34
REPRESENTATIVE OFFICE IN MOSCOW: 117279, Miklukho-Maklaya street, building 34, room 71, Moscow city, Russian Federation Tel: +7 499 724 3852, Fax: +7 499 724 3775 REPRESENTATIVE OFFICE IN BEIJING, CHINA: Suit 1512, Beijing Silver Tower 2, North’Rd, Don San Huan Street, Chao Yang District, Beijing, China, Postal Code: 100027 Tel: 0086-10-64106217, 0086-10-64106218 Fax: 0086-10-64106219
ERDENET MINING CORPORATION www.erdenetmc.mn