Badarch Enkhbat, CFO, Erdenes Tavan Tolgoi, Mongolia

1. 1 May 2014
Erdenes Tavan Tolgoi JSC
Infrastructure Projects to increase ETT competitiveness

2. ● Company overview
● The development of infrastructure projects:
- Water supply
- Coal Handling and Preparation Plant (CHPP)
- Road & Railway Cross-Border Railway
Tavan tolgoi mine-Chinese border railway
- Power Plant
Agenda

3. – Erdenes Tavan Tolgoi JSC
(ETT) was established in
2010.
– The ETT owns 6 mining
licenses, out of which, the
Tsankhi is world-class coking
coal deposits.
– Pre-stripping and box cut
development started in 2010,
2013 exported in 2011, 2013
respectively.
– Over 500 employees in the
company.
Tavan Tolgoi is one of the largest developing
coking coal deposits in the world
Company overview

4. 4
According to Norwest’s preliminary estimation of TT In-Situ coal resource by JORC code, there are 7.5
billion tons of thermal and coking coal within 300 m depth range limit.
West Tsankhi coal
field
East Tsankhi coal field1.2 Bt*
Coking coal 65 %
1.08 Bt*
Coking coal 78 %
Eastern
(Onch Kharaat)Borteeg
South-
Western
(Oortsog)
Tavan Tolgoi JSC
Measured
Indicated
Inferred
282.5 Mt
Calculation within *200m depth
1,21 Bt*
Coking coal 63%
765 Mt*
Coking coal 72 %
Calculation by JORC code
60.3 Mt
Coking coal 70%
74,5 Mt
Coking coal 61%
78.8 Mt
Coking coal 82%
298 Mt
Coking coal 53% Bor tolgoi
Ukhaa khudag
Formation of Tavan Tolgoi deposit

5. How the infrastructure projects will bring greater operational capacity?

6. Feasibility study completed and approved by
the Mineral Resource Professional
Committee’s meeting in June 2013.
Front end engineering study of the plant is
completed.
Selection of EPC contractor will be completed
in 2014.
Commissioning first 5 Mt capacity module in
2015.
CHPP ramping up to processing 20mt of ROM
coal per year in 2017.
Coal Handling and Preparation Plant (CHPP)

7. GoM approved water use permit minimum
150 liters/sec from Balgasyn Ulaan Nuur
ground water in 2011 (~70km from mine
site).
Feasibility study completed and ready to
announce bidding for potential contractors.
Exploration to be commenced for
additional water supplies.
Completion of water supply pipeline and
structure targeted in 2015.
Water Supply
Dalanzadgad
Sainshand
Zuunbayan
Tavan Tolgoi
Oyu
tolgoi
Gashuun
sukhait
Zamiin-Uud
Khangi
Balgasiin Ulaan
Nuur

8. 240 km paved road from Tavan Tolgoi coalfield to Gashuun Sukhait,
Chinese Border.
Road and Railway

9. SOE MTZ plans to Construct 257 km railway from Tavan Tolgoi
area to Chinese Border by 2016.
GoM has allocated 200 mln USD.
Tavantolgoi-Gashuunsukhait Railway
Cross-Border Railway Projects
Mongolian and Chinese enterprises established the Consortium for
building a cross-border railway.
The Consortium (ETT, ER, TT and Shenhua group) is responsible for
project financing and construction.
This project will boost the transportation capacity of border ports and
reduce transportation costs.

10. 450MW thermal power plant (GoM has allocated 50 mln USD).
Feasibility Study of PP was approved by the Ministry of Energy in
September 2013
Expected to be commenced the power plant in early 2016.
Tavan Tolgoi Power Plant

11. ETT Supply Chain and the project
Operating cost-
50%
Transportation
to Tsagaan Khad
25-30%
Cross Border
Transportation
14%
Mine Stockpile Stockpile Stockpile
China
B C
Stockpile
charge
3%
A
Mongolia
Stockpile
charge
3%
240 km paved road
Operating cost-
50%
Haul truck to
Tsagaan Khad
25-30%
Cross Border
Transportation
3%
Stockpile
charge
3%
Stockpile
charge
3%
240 km paved road
Operating cost-
50%
Stockpile
charge
3%
Stockpile
charge
3%
257 km railway
Mongolia
Mongolia China
China
1
2
3 Transportation
cost will reduce
c. 40-50%
Cross Border
transportation
will reduce
c.25%
1-Current supply chain
2-Cross Border Railway project is expected to be completed by the end of 2014
3 -Mine to Chinese Border railway is expected to commenced in 2015
A-Mine Mouth Sale
B-Tsagaan Khad Sale
C-Gants Mod Sale

12. Tsankhi Stockpile

13. Tavan Tolgoi Mine Stockpile

14. Thank you for attention!