Ministry of Mineral Resources and Energy, Fuel Policy Department
Director A.Erdenepurev
Ulaanbaatar city 2012


COAL FOR ELECTRIC POWER GENERATION PURPOSE
REST:
 EXPORT
 LOCAL/RURAL CONSUMPTION
 OTHERS
Нүүрс
2899.7
3000
2500
2000
1500
1067.5
1000
500
351.9
191.5
222.4
270.6
39.4
0
ДЦС 2
Coal
ДЦС 3
ДЦС 4
ДАР ДЦС
ЭРД ДЦС
PS 2
PS 3
PS 4
Darkhan
PS
Erdenet
PS
191.5
1067.5
2899.7
351.9
222.4
ДОР ДЦС
ДАЛ ДЦС
Dornod Dalanzad
PS
gad PS
270.6
39.4
Total
5043.0
Old Statement of the Energy Law
The Statement of 6.1.7 “to approve
pricing guideline of fuel which is
used for power generation and to
check the fuel pricing calculation”
In the Government central
organization prerogative
“New amendment in the Energy Law
which was approved on 2011-12-09
“The Statement 9.1.14 “to approve
pricing guideline of fuel which is
used for power generation and to
check the fuel pricing calculation”
In the Regulatory Committee
authorizations
“Coal pricing guideline” approved by the Infrastructure Minister in 2002
date
2005
5-1
2007
10-1
2008
7-15
2010
1-15
2010
9-20
2010
11-1
2011
5-1
2011
11-1
11500
12500
16200
18200
18200
18200
20500
20500
7500
8500
11400
13960
13960
13960
15560
15560
13600
16600
21400
22680
22680
26275
26275
26275
5100
6100
8584
8584
8584
8584
8584
9600
22680
22680
22680
22680
Mines
Baganuur
Shivee ovoo
Sharin Gol
Aduunchuluun
Ulaan Ovoo
COST
LOSS
PRICE
MINES
MNT
Percentage
Baganuur
23975
20500
3475
17%
Shivee Ovoo
18130
15560
2570
17%
Sharin Gol
29500
26275
3225
12%
Aduunchuluun
12500
9600
2900
30%
Average 3000 MNT * 5 mln tons = 15 bln tugrig loss
Mines
Baganuur
2009
16200
Growth
percentage
Shivee Ovoo
11400
Growth
percentage
Sharin Gol
Growth
percentage
21400
2010
2011
2012
2013
2014
18200
20384
22422
24889
28400
12%
12%
10%
11%
14%
13960
15356
16892
18581
21750
22%
10%
10%
10%
17%
22680
23927
25243
26632
28400
6%
5%
6%
6%
7%
Average
12%
14%
6%
COAL MINES
REGULATORY
AUTHORITY
Baganuur
17%
12%
Shivee Ovoo
17%
10%
Sharin Gol
12%
5%
Name of Coal Mines
Poor financial situation due to accumulated loss.
Delayed payment of Loan and interests
Cost increase such as currency exchange, diesel fuel
etc.
 Mining conditions are getting more complex from year to
year.
 Obsolete machinery and equipments.
 ....
 ....



Renew the Coal Pricing Guideline, do detailed
calculations,
 Indexation based on cost components,
 Coal Pricing based on free market principles
