Source: The Mongolian Mining Journal                   Date: 20 October, 2010

Mineral Resources and Energy Minister D.Zorigt recently visited the border checkpoint at Gashunsukhait where the volume of traffic often led to a 5-km-long line of vehicles. On his return he told media that coal export has been increasing lately, but there has been little expansion of facilities at the checkpoint. The most urgent task is to get a new border port complex under the Concession Law. Not just the work facilities, the living and working conditions of the staff have to be improved in tandem. As for now, a streamlining of operational practices is essential to ease the chaotic conditions. More than 300 vehicles pass the border every day and the number is increasing with material for Oyu Tolgoi coming in. Stuff worth USD500 million will come for Oyu Tolgoi before the end of 2010 and the Minister thought it would be helpful if there was a separate channel for them. “Some such simple changes will have to do until a large-scale overhaul can start,” he said, adding, “All the people there work very hard in trying conditions, but things can be improved if there is proper coordination between the responsibilities of various organizations.”

Another border point, Zamin-Uud, has an urban status, has an Administrator and its expenses come from the province’s budget, which makes planning easy. However, Gashunsukhait does not have the status and has no financial autonomy. Workers’ families are expected to arrive shortly and many things should be made ready for them. The local administration has started working on the issue. A small township will be built within two years at a place 5 km from the border. Only the decision has been taken, and no work is yet done on planning and design. The Government has allowed the local administration to spend USD2 billion for improving work at the port in cooperation with the major companies operating in the Gobi.

Told of the local perception that the Chinese are not interested in any improvement, the Minister said, “I haven’t noticed anything like this. It is always helpful to have similar infrastructure development on both sides of a border crossing. The Chinese side of the port is already better equipped and it is for us to match their facilities.”

Giving his impression of the work of the three mines close to one another in Umnugobi province, Tavantolgoi, Energy Resource, and Erdenes MGL, Mr. Zorigt said, “The differences. In Ukhaa Khudag, things are world class. Erdenes MGL will also work well and efficiently. On the other hand, we visited Tavantolgoi, a company owned by the local government and the Director could not even recall the names of the companies that worked there as operators and could give us no idea of operations in any of the four territories.”