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Mongolia Master Plan Study for Coal Development and Utilization

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Mongolia Master Plan Study for Coal Development and Utilization Ministry of Mining Mongolia Mongolia Master Plan Study for Coal Development and Utilization November 2013 Japan International Cooperation Agency (JICA) Japan Coal Energy Center IL JR 13-164 Table of contents Chapter 1 Introduction .................................................................................................................................... 1 1.1 Background of the study ....................................................................................................................... 1 1.1.1 Outline of Mongolia ....................................................................................................................... 1 1.1.2 Present condition of industry and economic growth of Mongolia ................................................. 2 1.2 Purpose of study .................................................................................................................................... 4 1.3 Flow of study ........................................................................................................................................ 4 1.4 Study system ......................................................................................................................................... 4 1.4.1 Counterpart mechanism ................................................................................................................. 4 1.4.2 Old and New Government organizations ....................................................................................... 6 1.4.3 Structure and allotment of study group .......................................................................................... 7 1.5 Study schedule ...................................................................................................................................... 9 Chapter 2 Coal Supply-Demand Forecasts for Major Supplier Countries and Northeast Asia, Etc. ............. 10 2.1 Analysis of present global energy supply-demand situation ............................................................... 10 2.1.1 Global energy supply and demand ............................................................................................... 10 2.1.2 Energy Supply and Demand in Asia ............................................................................................ 12 2.2 Future trend analysis of world coal supply-demand and price ............................................................ 16 2.2.1 World coal reserves ...................................................................................................................... 16 2.2.2 Present situation of coal supply and demand ............................................................................... 16 2.2.3 Coal Supply and Demand Outlook .............................................................................................. 32 2.2.4 Present state of and outlook for coal price ................................................................................... 42 2.3 Outlook for coal supply and demand such as in Northeast Asia and analysis of future Northeast Asia coal market ................................................................................................................................................ 45 2.3.1 Coal demand ................................................................................................................................ 45 2.3.2 Coal supply .................................................................................................................................. 55 2.4 Mongolia Coal Supply and Demand Figures and Projections for Export Potential ............................ 69 2.4.1 Coal Supply and Demand Figures ............................................................................................... 69 2.4.2 Projections for Export Potential ................................................................................................... 70 Chapter 3 Coal Development Analysis and Development Projects .............................................................. 76 3.1 Review of laws and policies of Mongolia relevant to coal ................................................................. 76 3.1.1 New Minerals Law ....................................................................................................................... 76 3.1.2 Basic Concepts of Rural Development ........................................................................................ 80 3.1.3 Policies of Mining Development ................................................................................................. 80 3.1.4 Investment Policy......................................................................................................................... 82 3.1.5 Coal Program ............................................................................................................................... 83 3.1.6 National Guidelines on "Coal Field Development" ..................................................................... 84 3.1.7 Contents of big projects conducted on a priority basis which was announced by Mongolian government. .......................................................................................................................................... 84 3.1.8 Taxes Associated with the Production and Sales of Coal ............................................................. 84 i 3.2 The Situation of the Existing Coal Mine and New Coal Mine Plan .................................................... 87 3.2.1 Summary ...................................................................................................................................... 87 3.2.2 South Gobi ................................................................................................................................... 94 3.2.3 East Gobi .................................................................................................................................... 102 3.2.4 Ulaanbaatar Peripheral ............................................................................................................... 103 3.2.5 North .......................................................................................................................................... 106 3.2.6 West ............................................................................................................................................ 109 3.2.7 East............................................................................................................................................. 113 3.2.8 South .......................................................................................................................................... 114 3.2.9 Mine Production Planning Issues and Recommendations ......................................................... 116 3.3 Economic Infrastructure Development Plan ..................................................................................... 123 3.3.1 Summary of Survey Plan of Economic Infrastructure plan ....................................................... 123 3.3.2 Current State and Issues of Domestic Infrastructure .................................................................. 125 3.3.3 The Case Study concerning Coal Export ................................................................................... 142 3.3.4 Results of the Container Transport Survey ................................................................................ 155 3.3.5 Other Coal Transportation .......................................................................................................... 156 3.3.6 The Subject and Proposal about an Economic Infrastructure .................................................... 157 3.4 New Technologies of Coal Development .......................................................................................... 158 3.4.1 CBM........................................................................................................................................... 158 3.4.2 Underground Gasification .......................................................................................................... 158 Chapter 4 Potential of Coal Utilization Technology.................................................................................... 159 4.1 Current status of coal utilization in Mongolia and improvement possibility consideration .............. 159 4.1.1 Coal-fired power plant ............................................................................................................... 159 4.1.2 HOBs and industrial boilers ....................................................................................................... 192 4.1.3 Civilian/Public Businesses/Transport Sector ............................................................................. 198 4.1.4 State of house coke production .................................................................................................. 205 4.1.5 Analysis of current coal preparation technology and evaluation of improvement potential ...... 214 4.2 Installation of future coal utilization techniques in Mongolia ........................................................... 221 4.2.1 Outline of global coal use .......................................................................................................... 221 4.2.2 View of coal utilization techniques installing ............................................................................ 225 4.2.3 Potential
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