Mongolia Energy Corporation Limited · HKEX:276
Mongolia Energy — Investor Presentation (November 2011)
34 slides from Mongolia Energy's investor presentation, November 2011
Slide 1: Mongolia Energy Corporation Corporate Presentation
Mongolia Energy Corporation (Stock code: 276) Corporate Presentation November 2011 ENERGY RESOURCES DEVELOPER
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that involve risks and uncertainties and intended to be covered by applicable safe harbor principles under applicable national and federal securities legislations. These statements are generally indicated by the use of forward-looking
Slide 3: About MEC
About MEC FOCUSED. PROFESSIONAL. REALISTS. MEC’s business model is to acquire concessions and to put in place a strong in-house team, including industry veterans in the geological, mining and legal areas to lead exploration and the development of the concessions. In this sense it is “an energy and r
Slide 4: Mission and Vision
Mission and Vision Our Mission MEC’s mission is to acquire, explore and develop energy and mineral resources with related projects in a professional, sustainable and responsible manner. Our Vision We aim to achieve global recognition as an energy and resources company while maximizing returns to sta
Slide 5: Executive Board and Management
Executive Board and Management Simon Lo: Chairman Over 20 years of experience in the financial, securities and futures industries, including many trans- border transactions Served on the Board of Directors of a number of listed companies Identified and secured the resources projects for the co
Slide 6: Executive Board and Management
Executive Board and Management James J. Schaeffer, Jr: Chief Executive Officer Formerly Executive Director of Asia Pacific of John T. Boyd Company, a leading international mining and geological consulting firm and the technical adviser to China Shenhua’s IPO Leading industry expert and highly re
Slide 7: Executive Board and Management
Executive Board and Management James J. Dolan – Country Director Designate - MoEnCo Over 20 years experience in financial management in the international mining industry covering Russia, Kyrgyzstan, Finland, Peru, Spain. Extensive experience in external audit, tax and fiscal negotiations with go
Slide 8: MEC Shares
MEC Shares MEC Shareholders[1] (As of 28 October, 2011) Other Directors 0.11% Mr. Simon LO Lin Shing Public & his associates 81.53%[3] 18.36%[2] Listing Information HKEx Stock Code 276 Board Lot 1,000 Number of Shares Issued 6,606,547,828 Notes 1. The above information is compiled based on the infor
Slide 9: Our Businesses
Our Businesses Coal Oil & Gas Minerals 9
Slide 10: MEC Assets: Coal, Minerals, Oil & Gas
MEC Assets Coal, Minerals, Oil & Gas COAL MINERALS OIL & GAS 34,000 hectares of coal 2,986 hectares of ferrous concessions in Khushuut and metals concessions in Bayan- Mongolia Western Darvi in western Mongolia Olgiy, western Mongolia 32,000 hectares of coal, ferrous and non-ferrous metals con
Slide 11: Khushuut Coking Coal Mine Project
KHUSHUUT COKING COAL MINE PROJECT 11
Slide 12: Our Projects in Western Mongolia
Our Projects in Western Mongolia Western Mongolia Concessions – Coal, Ferrous & Non-ferrous Metals 12
Slide 13: Khushuut Coking Coal Mine Project
Khushuut Coking Coal Mine Project MEC has been actively working on exploration of resources and planning of the Khushuut Coking Coal Mine in Khovd Province, western Mongolia since 2007 600 hectares of the coal mine areas in Khushuut has been explored so far, out of the 330,000 hectares of concession
Slide 14: Professional Partners: John T Boyd Company
Khushuut Coking Coal Mine Project Professional Partners John T Boyd Company Independent Technical Advisor Over 60 years of expertise in completing reserves audits and stock listing requirements for coal companies Conducted more than 2,000 reserves audits, including audits for some of the largest coa
Slide 15: Professional Partners: Fenwei Energy Group
Khushuut Coking Coal Mine Project Professional Partners Fenwei Energy Group Marketing and Coal Quality Consultant Fenwei Energy Group is one of the premier energy consulting companies with a high degree of expertise and experience in China’s coal industry The scope of services range from field inves
Slide 16: Professional Partners: China National Administration of Coal Geology
Khushuut Coking Coal Mine Project Professional Partners China National Administration of Coal Geology - 129 Exploration Team Exploration Company Team 129 is an experienced exploration team under China National Administration of Coal Geology’s No. 1 Exploration Bureau It provides drilling and other a
Slide 17: Professional Partners: Leighton LLC
Khushuut Coking Coal Mine Project Professional Partners Leighton LLC International Contract Miner Has been operating in Mongolia since 2007 A subsidiary of Leighton Asia (part of the Leighton Group), Leighton Holdings is the world’s largest contract miner, listed in the Australian Stock Exchange (st
Slide 18: Resources Exploration
Khushuut Coking Coal Mine Project Resources Exploration 2007 Exploration drilling by Team 129 included 199 drill holes with a cumulative depth of over 50,000 meters MEC utilized the services of John T. Boyd Company (BOYD) as independent technical advisor to oversee the exploration program 18
Slide 19: Resources Exploration
Khushuut Coking Coal Mine Project Resources Exploration BOYD prepared an independent resource estimate in accordance with international JORC Standards for two major seams: Million Tonnes C Seam 101.7 B Seam 47.5 Total 149.2 Resources are surface minable 19
Slide 20: Resources Exploration
Khushuut Coking Coal Mine Project Resources Exploration MEC has been actively working on exploration of resources and planning of the Khushuut Coking Coal Mine in Khovd Province, western Mongolia since 2007 Exploration program overseen by independent technical advisor John T. Boyd Co.; drilling
Slide 21: Market Analysis
Khushuut Coking Coal Mine Project Market Analysis Leighton’s conclusion relative to MEC’s Khushuut coking coal project: “Leighton Asia is enthusiastic to provide project development engineering and support services to MEC’s Khushuut coal mine project. In view of the extensive scale of the mine site
Slide 22: Market Analysis
Khushuut Coking Coal Mine Project Market Analysis MEC commissioned the services of Shanxi Fenwei Energy Consulting Co. Ltd. to complete detailed “Market Study of Khushuut’s Coal Resources” Results affirm favorable market conditions for the high quality Khushuut Mine coking coal 22
Slide 23: Market Analysis
Khushuut Coking Coal Mine Project Market Analysis Fenwei’s Conclusions MEC has, as an ongoing process, commissioned the services of Shanxi Fenwei Energy Consulting Co. Ltd. to conduct market studies to assess the demand for Khushuut coking coal Fenwei concludes that the Xinjiang Market had great
Slide 24: Market Analysis: Coal Pricing
Khushuut Coking Coal Mine Project Market Analysis Coal Pricing: Fenwei evaluated market conditions and coal pricing for the Khushuut Coking Coal delivered to customers in Xinjiang Autonomous Region, PRC Fenwei’s estimated price of Khushuut Coking Coal delivered at Urumqi area(1) Price Projection by
Slide 25: Market Analysis
Khushuut Coking Coal Mine Project Market Analysis Fenwei’s calculation of future market prices (Coking coal delivered to Xinjiang): Market prices for coking coal expected to escalate for the next 15 years - Moderate degree of confidence → 4 % annual growth rate (exclusion of inflation) through to 20
Slide 26: Estimated Coking Coal Demand in Xinjiang
Khushuut Coking Coal Mine Project Market Analysis Estimated Coking Coal Demand in Xinjiang, PRC Demand for coking coal for the major steel producers in Xinjiang is projected to increase from 15.8 million tonnes in 2010 to 25-30 million tonnes by 2015 30 Million Metric Tonnes 25 25-30 20 15 15.8 12.8
Slide 27: Market Analysis: Bayi Steel
Khushuut Coking Coal Mine Project Market Analysis Baosteel Group Xinjiang Bayi Iron & Steel Co., Ltd. (“Bayi Steel”) Two new coking plants increase coking coal demand by 4.76 million tonnes per annum (from 2.94 million tonnes per annum (2007) to 7.7 million tonnes per annum (2010)) In 2006 and 2007
Slide 28: Market Analysis: Hongji
Khushuut Coking Coal Mine Project Market Analysis Xinjiang Hongji Coke Corporation Ltd. (“Hongji”) Two additional tamping coke ovens to come on line resulting in increased coking coal requirements by 2010 New plants will more than double current capacity resulting in a total 3.6 million tonnes per a
Slide 29: Market Analysis: XICC
Khushuut Coking Coal Mine Project Market Analysis Xinjiang International Coal and Coking Corporation Ltd. (“XICC”) Current coke production capacity is 1 million tonne per annum Actual operating capacity (2007) was 370,000 tonnes coke due to poor quality coking coal and lack of premium quality coking
Slide 30: Transportation
Khushuut Coking Coal Mine Project Transportation Khushuut’s coal will cross into Xinjiang at the Yarant Border Crossing MEC started construction of the Khushuut Road in 2008 Road construction and surface pavement were substantially completed in 2010 30
Slide 31: Project Milestones: Exploration and Mine Development
Khushuut Project Milestones Exploration and Mine Development Khushuut exploration work continues: Independent Technical Review was completed by John T. Boyd Company on 16 Oct ’09 and was published by MEC on 18 Oct ’09 Coal quality and drilling (lithologic/structure) findings from the 2008 dril
Slide 32: Project Milestones (cont'd): Business Development
Khushuut Project Milestones (cont’d) Business Development Business development: In Oct 2009, a 200 tonne bulk sample of high-quality coking coal was delivered to a prospective customer, Baosteel Group Xinjiang Bayi Iron & Steel Co. Ltd. (“Baosteel Bayi”), in Xinjiang Province for full scale test
Slide 33: About Mongolia
About Mongolia Mongolia is a democratic country that celebrates more than 800 years of history. It has an area of around 1.6 million sq km, abundant in natural resources, and a population of around 2.8 million that attains a 98% literacy. Other than Mongolian, English, Russian, Korean and Chinese ar
Slide 34: Thank You
THANK YOU Contacts: 40th Floor, New World Tower 1, 16-18 Queen's Road, Central, Hong Kong Tel: (852) 2138-8000 Fax: (852) 2138-8111 Email: ir@mongolia-energy.com Website: www.mongolia-energy.com 34
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