Robert Friedland, renowned as the world's luckiest prospector, made a special guest appearance at Mongolia Mining Week (October 9-13, 2023) and delivered an exclusive speech. He played a pivotal role in the discovery of Oyu Tolgoi and also unearthed Kamoa-Kakula, considered the world's second-largest copper mine, currently under development. Friedland's presentation delivered stunning news about the high-quality and expansive advancement of the KamoaKakula deposit, leaving the Mongolian mining community in awe. Kamoa-Kakula, which commenced construction three years ago and commenced production in 2021, is presently in the process of establishing a hydroelectric plant and one of the world's largest copper smelters in proximity to the mine.The rapid progress of Kamoa Kakula in comparison to Oyu Tolgoi cannot escape admiration. However, Friedland's urging for Mongolians to swiftly compensate for the years and opportunities lost at Oyu Tolgoi didn't sit well with Mongolian government representatives. He highlighted that the scale and pace of construction adhered to Congo's open-door policy, which accentuated the contrast in Mongolians' behavior and expressions when luring foreign investors. Mining Insight has published an article comparing Oyu Tolgoi and Kamoa-Kakula, recognized as the second and fourthlargest mines globally. Furthermore, Robert Martin Friedland's speech has been made accessible to the Mongolian public, thus presenting the content in English.
The first day of the mining week featured a notable presentation by Friedland, and the last day was marked by the announcement that the general terms of the Investment Agreement with Orano had been agreed upon. Friedland, among the pioneering investors to venture into Mongolia in 1994 and had a significant role in the discovery of Oyu Tolgoi, was honored with the Order of the Polar Star Medal by the Mongolian Government. In an interesting coincidence for foreign investors, the French investor Orano, who entered the scene in 1997, declared that an investment agreement might be inked after 26 years of waiting. All of this unfolded in a span of just seven days. Following French President Emmanuel Macron's state visit to Mongolia in May, activity surrounding the uranium project, which involves state ownership from both countries, gained momentum.
In a mere five months, a Working Group was established on the Prime Minister's directive, preliminary terms of the Investment Agreement (IA) were negotiated, and certain conditions were pre-agreed. The company, Orano Mining, submitted the revised project draft to the Mongolian side in accordance with the protocol on October 24, 2023. Minister Amarbayasgalan. D, who leads the working group, revealed that the government plans to present the joint venture project between the Government of Mongolia and the French company Orano Mining to the Parliament in November. The agreement is expected to receive approval by December 15, 2023, once the Parliament establishes the working group. If all goes as planned, investment activities are set to commence in the first or second quarter of 2024. The working group has formed subworking groups and is currently diligently crafting the draft contract, with the clock ticking unusually fast, given the proximity to the pre-agreed timeline. In its October edition, Mining Insight delved into the issues concerning the establishment of a joint venture with Orano. Furthermore, we are pleased to present the clarifications provided by Achit-Erdene. D, the Chairman of the Board of Directors of MICC, who serves as the Financial Advisor to the Working Group responsible for negotiating the IA.
Mining Week undeniably stands out as the highlight of Mongolia's mining industry in October. For the second consecutive year, Mongolian miners engaged in discussions about their industry over 5 days. Perhaps, if we were to identify the industry with the most meetings in Mongolia, mining would take the lead by a significant margin. The challenges faced by the mining sector have a profound impact on our nation's overall economy, leaving no room for complacency. In the latest issue of Mining Insight, we showcase ideas that have transitioned from mere words into action. Be sure to explore the "Featured Ideas from Mining Week" section for innovative concepts and solutions. Additionally, Yondon. G, the CEO of Erdenet Mining Corporation SOE, presented a rather unconventional proposal regarding establishing a copper smelting plant adjacent to the EMC. This presentation was among the most distinctive ones. We invite you to peruse the discussion with Executive Director Yondon. G, where the topic is explored in greater detail.
