Energy Resources LLC has been founded in 2005 as a joint-investment of Mongolian private sector leading companies such as the MCS Group, Petrovis, Shunkhlai Group and others.
Energy Resources LLC holds a mining license for Ukhaa Khudag coking coal deposit located in Umnugobi Aimag.
In June 2008, based on the decision of the GOM, the company obtained a special permission to build the 270 km long railway link from Ukhaa Khudag to Gashuunsukhait at the Mongolian-Chinese border.
The company's mission is to contribute to the economic development, industrialization and modernization of Mongolia with the vision of becoming the global coal and coal chemistry products manufacturing and marketing company.
Apart of the coal mine and coal processing facilities at Ukhaa Khudag site, the company is also developing the support infrastructure projects such as combined heat and power plant, water supply pipeline, railway and so on. Some of the projects include:
Construction of an airstrip at Tsogttsetsii Soum, Umnugobi Aimag ;
Rehabilitation and maintenance of a gravel road from Tavan Tolgoi area to Gashuunsukhait;
Construction of a mining camp complex providing housing for 600 people;
CHPP (Coal Handling and preparation Plant), wash plant with a capacity to process 800 tons of run-of-mine (ROM) coal per hour;
Railway construction from Ukhaa Khudag to Gashuunsukhait;
Construction of 12 MegaWatt CHPP (Combined Heat and Power Plant);
At an early stage, Ukhaa Khudag deposit will be developed as follows:
Fast-track operation. A commercial production commenced in April 2009, with mining and processing of about 5 MTPA of ROM coal, to produce around 3.5 MTPA of clean washed coking coal for initial 3 years (depends on the infrastructure, especially railway link availability), transporting products by trucks to the Chinese market.
The company collaborates with the experienced and reputable local and international companies as contractors for the project planning, development and execution. Energy Resources LLC is working together with:
Norwest Corporation (USA/Canada) as a consultant for geological exploration and assessment;
Leighton (Australia) as a mining contractor;
Sedgman (Australia) as a consultant for wash plant construction;
Aquaterra (Australia) as a consultant for water exploration and resource development;
Deutsche Bahn AG (Germany) as a consultant for railway construction;
ERM (USA) as a consultant for social impact assessment ;
Sustainability (Australia) as a consultant for environmental impact assessment;
Parsons Brinckerhoff (Australia) as consultant for power plant project.
In addition, the European Bank for Reconstruction and Development (EBRD) has supported Ukhaa Khudag project and entered as an equity partner and signed an investment agreement for mining and infrastructure projects such as power and water supply, road and railway development.
Energy Resources LLC is aiming to introduce and implement the world standard environmental and safety management, mining and processing technologies, and to adopt the industry best practices for occupational safety and environment, setting so the higher benchmark levels for the Mongolian mining sector.
Energy Resources LLC is supporting social responsibility and community development projects in the region in line with the regional development policies.
Ukhaa Khudag project has already created 500 new jobs and 150 of them were offered to people from Umnugobi region. It is estimated that the full scale development will provide 1,500 direct job positions.
The public disclosure and consultation program is developed and implemented. In total more than 1,000 residents of Tsogttsetsii, Bayan-Ovoo and Khanbogd Soums have attended an open-house presentation of the project in November 2008. The comments, opinions and suggestions of the local residents have been recorded, reviewed and findings have been reflected in the company’s social responsibility and community development plan.
Mining
