Gankhuyag G. - Mongolia’s Next Growth Engine l Mongolia Investment Forum: New York 2026
https://www.youtube.com/watch?v=06inY_dCtvc
[00:04] We now begin session one themed strategic minerals strate strategic capital.
[00:11] To open the session, please welcome Mr. Ahoyak Gumbold, head of project development and management department at our ITP to present on Mongolia's next growth engine industrial parks investment opportunities.
[00:22] Mr. Akan Hoyak is a mining executive and mineral economist with over 14 years of experience in Mongolia's mining sector.
[00:31] Previously, he served as CEO of Alan Kutur LLC, one of Mongolia's leading iron ore producers.
[00:35] Please put your hands together for Mr. Ko.
[00:44] Okay. Hello. Good morning ladies and gentlemen and distinguished guests and investors.
[00:52] So, my name is Ko Campbold. I'm a head of the project development and management of Edinus ITP company.
[00:59] So it is a pleasure and honor to speak with you today here in New York. And today I
[01:04] you today here in New York.
[01:07] And today I would like to introduce the new chapter in the Mongolian economic development.
[01:09] So one that goes beyond the mining extraction and goes beyond uh raw material export but more towards the industrialization and long-term value creation.
[01:23] So for decades, Mongolia has been recognized uh for its vast mineral resources and the only the mineral resources alone do not create the maximum value and prosperity but and industrialization and also the processing and manufacturing it actually creates the long-term sustainable uh value.
[01:50] So we are believe the industrial parks is actually the next the growth engine for Mongolian uh economic development.
[01:57] So so before going into the more deep into the my slides I would like to briefly introduce our parent company the Mongol
[02:08] Introduce our parent company the Mongol group.
[02:10] So Erdinis Mongol is a group.
[02:12] So Erdinis Mongol is a state-owned uh mining corporation.
[02:16] So it managed the uh mining corporation.
[02:19] So it managed the 33 subsidiary companies and all the subsidiary companies work in the mining sector.
[02:23] From the exploration to processing.
[02:25] And last year the Mongol uh performed very good financial and operation performance.
[02:30] And $4.5 billion US in revenue and 1.5 billion US in profit.
[02:38] And also managing around 9.6 6 million uh billion US dollars in total asset.
[02:44] And also the Mongol group is plays a very significant role in Mongolian economy.
[02:49] As you can see on the graph.
[02:52] So Mongol accounts totally around the uh 18% for our national tax income.
[02:56] And also 28% of total export.
[02:59] And accounts 20% of our national GDP.
[03:03] So these numbers actually represent half the vital for the Mongol
[03:08] represent half the vital for the Mongol for the Mongolian economy.
[03:11] for the Mongolian economy.
[03:13] So our company is ITP.
[03:16] So we are more focusing on the developing the industrial park projects.
[03:20] and we are now uh working on the planning the industrial projects and like doing the m doing our master plan and physibility studies and other necessary studies like the environmental assessment etc.
[03:37] And also we are working on the development and that includes the tracking and investment and procurement and also the construction of the infrastructure and primary plants and also the successfully the establish the industrial park.
[03:51] So our main role will be the managing the whole operation of the industrial park uh not the manufacturing and the production.
[03:57] So that part is the take taken care by the uh private sectors or companies who are working in the industrial park zone.
[04:05] So we are just you know the overseeing the whole uh utilities and infrastructure of
[04:11] whole uh utilities and infrastructure of the industrial park.
[04:14] So this industrial park model is just not just isolated and construction uh project.
[04:17] It also very well aligned and directed by Mongolian's uh long-term development policies like vision 2050 and also the government for years action plan and also the Mongol's midterm strategy and all these development policies the focused on the industrial sector development.
[04:42] and we offered for industrial investors some advantage.
[04:45] The first is the mineral resources as you can see on the the table.
[04:51] So it uh shows the our registered reserves.
[04:54] So the 60 million tons of copper and 40 billion tons of coal and 2 billion tons of iron or and some gold and floros etc.
[05:03] But this not limited by these resources.
[05:08] Our 50,000 scale of geological mapping
[05:11] Our 50,000 scale of geological mapping and prospecting is actually only done in the 52% of our total land.
[05:17] So there is a more potential in the exploration area and identifying the more deposits and also we have a very good renewable energy resources.
[05:27] And according to the studies we have uh uh 1100 gawatt of wind energy resources and 2200 gawatt of solar energy resource.
[05:38] And also we can provide 500 hectares land for the industrial park development.
[05:47] And also at the same time we have some disadvantage some problem and issues some challenges for example so we annually producing around 1.4 4 million tons of copper concentrate and only produce around the 7,000 tons of cathode copper which is around only 2%.
[06:05] Our processing rate is 2% on the copper and also we extracting around 100 million tons of coal annually and only
[06:13] million tons of coal annually and only 9% is processed and iron and phosphor is
[06:17] 9% is processed and iron and phosphor is processing rate is zero right now.
[06:20] So we have more potential in that area
[06:23] and our the 94% of our export is from the mining sector the mineral resource
[06:30] and 95% of them is nonprocessed raw oil
[06:35] and we are in other side we are importing the final goods and final products
[06:39] the 95% for our import final product.
[06:44] So we have a potential to produce the this importing goods and domestically based in our mineral resources
[06:48] and also in the energy sector we still importing the electricity from the Russia and China
[06:54] and 25% approximately 25% is from importing electricity right now.
[06:59] So these are the challenge and difficulties we we are having in Mongolia right now.
[07:06] And from the business perspective, so this disadvantage and this issues actually creates the business opportunity.
[07:11] So there is a vast space
[07:15] opportunity.
[07:17] So there is a vast space that investors can work in and expand their business in Mongolia.
[07:21] So we are our company is simply the
[07:23] So we are our company is simply the building uh industrial nests
[07:27] building uh industrial nests which you know uh uh building a more
[07:30] which you know uh uh building a more friend investor friendly environment and
[07:32] friend investor friendly environment and supplying mineral resources and
[07:35] supplying mineral resources and infrastructure
[07:37] infrastructure and the market resource and technology
[07:39] and the market resource and technology resource and also in other side we are
[07:41] resource and also in other side we are gathering the partnerships we are
[07:43] gathering the partnerships we are attracting the invest investors and APC
[07:46] attracting the invest investors and APC contractors and resource uh the research
[07:49] contractors and resource uh the research and developers.
[07:53] So integrating this resource and partnership we are hoping
[07:55] resource and partnership we are hoping to successfully build the the industrial
[07:58] to successfully build the the industrial nest for the investors.
[08:01] So we have a six industrial park projects and each one of
[08:04] industrial park projects and each one of them has its own uh development
[08:07] them has its own uh development directions.
[08:08] The first is copper processing plant and a steel
[08:11] processing plant and a steel manufacturing plant and building
[08:13] manufacturing plant and building material manufacturing plant complex and
[08:16] material manufacturing plant complex and brown coal processing complex a floor
[08:18] brown coal processing complex a floor spar processing complex and coing cold
[08:20] spar processing complex and coing cold processing complex.
[08:24] So our government is offering the
[08:26] So our government is offering the investors some benefits if they work in
[08:28] investors some benefits if they work in the industrial park zone
[08:31] the industrial park zone by the law and government offers uh some
[08:35] by the law and government offers uh some tax and non- tax incentives.
[08:37] tax and non- tax incentives. For example, the custom duty waiver for five
[08:39] example, the custom duty waiver for five years and extension of the input uh
[08:42] years and extension of the input uh value added tax payment for four years
[08:45] value added tax payment for four years and exemption from the land fee for 10
[08:48] and exemption from the land fee for 10 years and full exemption from the
[08:50] years and full exemption from the property tax for first five years and
[08:52] property tax for first five years and 50% reduction in the next 5 years. Now
[08:55] 50% reduction in the next 5 years. Now also there are some non tax incentives
[08:57] also there are some non tax incentives like accelerated depreciation method
[09:01] like accelerated depreciation method and also the permanent residency for the
[09:05] and also the permanent residency for the investors under you know the more
[09:07] investors under you know the more simplified process and also we have a
[09:10] simplified process and also we have a very good the international agreements.
[09:13] very good the international agreements. We already had some double tax taxation
[09:15] We already had some double tax taxation agreement with 26 countries and also
[09:18] agreement with 26 countries and also bilateral investment agreement with 43 countries.
[09:22] Now also government can offer the tax stabilization certificate based on the investment amount and the period of the certificate goes up to eight 18 years the based on amount of investment.
[09:39] So total six industrial park requires around 9.4 4 billion US dollars and 27% of them for the primary plants and 7% of this investment is for infrastructure and the rest of the 66% is for downstream plants.
[09:57] So we erdinous mongol and ATP is now more focusing on the primary plants investment and also the infrastructure and the rest of the the downstream plant investment that's actually taken care by the the private sector.
[10:16] So we are offering the investors for
[10:19] So we are offering the investors for some investment options.
[10:22] Some investment options for first one is a primary plant project.
[10:25] For first one is a primary plant project and in this case Edinus Mongol actually co-invest in this project with the investors.
[10:29] Co-invest in this project with the investors establish a joint venture.
[10:33] So this kind of project includes the copper smelter and steel plant and coal chemical plant and coke energy plant etc.
[10:41] Also we offer the downstream plant projects and in this case the investment can invest 100% and also own the uh own the plant 100% private ownership.
[10:56] And also next one is infrastructure project and it this uh project includes the power plant and railway and logistic apps.
[11:06] And in this case we are expecting more uh public and private partnership models.
[11:09] Like B and BT.
[11:13] Now also there is industrial real estate projects for the investors and that will be at 100% the private ownership.
[11:19] be at 100% the private ownership projects that includes the the factory shell in a warehouse and commercial zones in the industrial park zone and also there is the opportunity to investors partnered with uh participate with in this investment is industrial park investment fund.
[11:37] So we are having having a discussion with development bank of Mongolia and we are planning to establish industrial park investment fund and the sponsors will be the development bank of Mongolia and also the Mongol and also the private investors and international financial institutions and of course this uh investment fund will be managed by a professional and asset management company and this fund will finance their primary plants and private manufacturing infrastructure and industrialistic projects.
[12:09] So these slides gives you more detailed a little more detailed information about our current projects.
[12:16] The first is copper smelt project and it requires around 772
[12:21] requires around 772 million US dollars investment and we.
[12:23] million US dollars investment and we already done the physibility study and.
[12:26] already done the physibility study and environmental assessment and also the.
[12:28] environmental assessment and also the security land and already nearly.
[12:31] security land and already nearly finished the infrastructure project and.
[12:33] finished the infrastructure project and now we are working on the selecting a.
[12:36] now we are working on the selecting a strategic investor.
[12:39] strategic investor.
[12:41] The next one is uh integrated steel plant.
[12:42] plant.
[12:45] The government aiming to establish and build at least 1 million tons of.
[12:47] build at least 1 million tons of capacity at the steel plant and this.
[12:50] capacity at the steel plant and this requires around 800 million US dollars.
[12:53] requires around 800 million US dollars investment.
[12:54] investment and we prepared the pre physibility.
[12:57] and we prepared the pre physibility studies and also secured and also we.
[12:59] studies and also secured and also we acquired the necessary permissions from.
[13:01] acquired the necessary permissions from the government and we just announced the.
[13:04] the government and we just announced the the receiving the expression of interest.
[13:07] the receiving the expression of interest in the last week and this uh expression.
[13:12] of interest actually it uh ends the.
[13:15] of interest actually it uh ends the deadline is the 11th of May.
[13:18] deadline is the 11th of May. So whoever interested in this project is still can.
[13:20] interested in this project is still can to submit their proposal to the.
[13:23] to submit their proposal to the government.
[13:26] So next one is uh floorpar processing.
[13:29] So next one is uh floorpar processing cluster.
[13:31] So we Mongolia we have a very good the floor reserve in the world.
[13:35] So we own a 36 million tons of floorspar.
[13:37] So floors is one of the critical mineral.
[13:39] and we our the mineral resources ranked fourth in the world.
[13:42] and our extraction rate is second in the world.
[13:44] and our export export ranges first in the world.
[13:47] So we are a very big player in the floor market in the world.
[13:51] but the 70% of our export is just raw ore.
[13:53] So we have very good potential in this field as well.
[13:56] and this cluster it requires around the $280 million US.
[13:59] and it's includes the following the plants the floral processing plant and hydrogen fluoride plant and aluminum fluoride etc.
[14:03] Also we can offer some renewable energy project in the industrial park and developing the industrial park.
[14:06] We also have to
[14:24] the industrial park.
[14:27] We also have to establish some uh new energy establish some uh new energy source.
[14:30] We are expecting our industrial parks energy demands around 670 megawws.
[14:34] and out of that the 30% we are expecting to uh supply from the renewable energy.
[14:40] that would be around 200 megawatt and that is not a single projects we are we have a six industrial parks and uh six indust each park has a from the 20 to 50 megawatts renewable energy project and this project we can work with the private investors.
[15:00] It can be owned by private investors also we can co-invest on the project and also PPP is also acceptable.
[15:10] and uh ladies and gentlemen so Mongolia is entering the new era the era where growth is driven not only by extraction but by manufacturing and by creating a value and by long-term industrial
[15:25] value and by long-term industrial capability.
[15:27] So we believe the industrial park are the platform that will unlock the that future and we warmly invite the investors and developers and financers and strategic partners to join us in building Mongolia's next growth engine and thank you very much.