Sharyn Gol mine

The Sharyn Gol mine is a coal mine in Mongolia which is owned and operated by the Sharyn Gol Joint Stock Company. The mine is located 215km north of Ulaanbaatar and 45km south east of the city of Darkhan. The company's mining licence, 1498A, covers a total area of 16,060 hectares. In its 2009 Annual report the company stated that its main customers were the Erdenet Power Plant (189,000 tonnes), the Darkhan Power Plant (152,000 tonnes) and the Erdenet copper mine, which between them accounted for 90% of the mine's production.

Background
On its website the company states that the Sharyn Gol coalfield was "discovered in the 1930’s and it wasn’t until 1958 that a joint venture between Mongolian and Russian exploration teams recognised its economic potential. Exploration was conducted up until 1961, culminating in mine construction commencing in 1962, with first production achieved in 1965. By 1975, the mine was producing 1.1 Million tonnes per annum (Mtpa) before expansion to a design capacity of 2.5Mtpa, between 1976 and 1980. For an extended period into the mid 1980’s, the mine achieved its nameplate design capacity. However, due to the withdrawal of Soviet financial support and management expertise, production was unable to keep pace and a gradual reduction in coal production was experienced in the 1990’s."

Following privatisation in 2003, the mine has produced an average of 600,000 tonnes per annum. In an August 2010 presentation the company states that current production is 500,000 tonnes of which 75% is for a local power station. It also states that "growth areas such as smokeless fuels and cement making are being targeted,to generate enhanced revenue streams."

The company states that "following an injection of capital and the introduction of new management and mining consultants in early 2010, planning is now underway to substantially increase production over the next 2-3 years. The Company’s immediate goal is to re-establish production to its designed capacity of 2.5 MTPA [million tonnes per annum]".

Ownership
The company states that, as of August 2010, "Firebird Funds of NewYork, own approximately 55% of Sharyn Gol JSC ... Certain directors of Sharyn Gol and their close associates, own nearly 40%. Approx. 5% of Sharyn Gol’s equity comprises the public float".

Personnel
The company states that "diverse boardand management team,including directors and officers of Firebird, with a broad range of commercial and technical expertise; not only within the international natural resources sector, but also across the emerging markets. 4 of the current 9 board members are American and Australian professionals."

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