Posts tagged mining

Mongolian Mines and Investors

After much to and fro over the mining concesssion for Mongolia’s Tavan Tolgoi coal deposit, it may well be that none on the international bidders may success. Terence Edvards for Reuters:

Speaking at a regular meeting of leaders from Mongolia’s private sector on Monday, Graeme Hancock, the chief operating officer of Erdenes-Tavan Tolgoi, suggested that the Mongolian government would not be able to appease the diverse foreign investors hoping to invest in the project.

“In my view, this is a very difficult group to put together into a consortium,” said Hancock. “We’ve got a pretty good chance it will never happen.”

If that were the case, Erdenes-TT was likely to reassume control of the property and lead the western block of the project itself, he said.

For an anthropological view of Mongolian mines and geopolitics, listen to the keynote Uradyn Bulag delivered last month at our conference “The Art of Neighbouring”.

Posted in Border Review | Also tagged , | Leave a comment

Copper, Gold, and Water

Josh Tapper (The Star) reports on the Oyu Tolgoi copper and gold mines in Mongolia. Oyu Tolgoi, he writes,

is expected to balloon the Central Asian country’s GDP — an estimated $13.28 billion in 2011 — by more than 30 per cent when it starts full production later this year.

But the economic boon is also, for some, an environmental nightmare as the project will allegedly soak up valuable water resources in the already-arid Gobi. While reports vary, the mine plans to use up to 920 litres of water per second.

This is the Gobi Desert and water is scarce. Yet, Rio Tinto – the majority owner of Ivanhoe who has a 66% stake in the mines – says that there is nothing to worry about. The water used will be taken from a non-replenishable groundwater source, which would only be depleted by 20% over the course of 40 years.

This would create surplus reserves for the local population, a company spokesperson said. The company contends that by using Gunii Hooloi, it will not have to deplete limited surface water reserves used by herders.

Things in Mongolia happen at such a mind-blowing speed that making sense of such claims is very difficult. For sure, this is an issue to keep an eye on.

Posted in Border Review | Also tagged , | Leave a comment

Afghan mines and railways

Quil Lawrence (NPR) reflects on the future of mining in Afghanistan. In 2007, state-owned China Metallurgical Group Corporation (MCC) won a concession to mine copper in Aynak:

The Afghan government has relocated residents from Ainak to make way for the development of the mine. And once again there is the promise of jobs.
But five years after MCC won the contract, there is no sign of the railroad the company pledged to build to get the copper out.
“It will obviously be built before 2014, because they have to start commercial production somewhere in 2014,” says Tamim Asey, director of public affairs for the Afghan ministry of mines. He says that by 2014 the Chinese company will have built not one, but two railway lines, as guaranteed in the contract. But the fact is the Chinese contract has not been made public. A secret U.S. embassy cable published by WikiLeaks quotes Chinese officials as calling the promise to build railways “flexible.” Mining experts in Afghanistan are wondering what else in the contract might be flexible, says Haseeb Humayoon, a partner at QARA Consulting in Kabul.

Posted in Border Review | Also tagged , | Leave a comment

Mongolia frets as giant coal mine launch looms – M.A.D

Earlier this year, mining rights for the western section of the immense Tavan Tolgoi cole mine in Mongolia’s Gobi Desert were split between a Chinese, a Russian, and a Western consortium. A potential USD 15 billion bid for the mine’s eastern block is scheduled for next year. The well-informed Mongolia-based concultancy M.A.D has published its take on the state of affairs:

At stake is the promise of prosperity for Mongolia’s 2.8 million citizens, many of whom live on the edge of subsistence. The mine’s transformational potential also has implications as a whole for the region, which produces more than half of the world’s steel and aims to wean dependence on primary coking coal supplier Australia. But Mongolians are worried that their two powerful neighbours, China and Russia, will take their resources on the cheap unless key donors Japan and South Korea join the bidding — a point crucial for parliamentary approval later this year.

Which means that the results of the initial bid are anything but final.

Posted in Border Review | Also tagged , , | Leave a comment

Mining and heritage in Afghanistan

Yesterday, General Mirza Aslam Beg, a former Chief of Staff of Pakistan’s army, in Daily Times:

China now stands solidly behind Afghanistan to protect the civilisational heritage so ruthlessly trampled by foreign invaders.

No details on what that means. But I wonder if he allures to that conflict of interest between China Metallurgical Group (MCC) and archeologists over the remains of a 2,600-year-old Buddhist monastery at the site of a prospective copper mine. Back in November 2011, Heidi Vogt wrote a piece on the topic for the Huffington Post and The Washington Post:

China Metallurgical Group, or MCC, which is backed by the Chinese government, wanted to start building the mine by the end of 2011. But under an informal understanding with the Kabul government, it has given archaeologists three years for a salvage excavation [...]

Marquis [a French archeologist and advisor] said MCC has been cooperative and has helped the archaeologists, hauling dirt away and asking what more needs to be done.
Zakir, the Afghan archaeologist, laughs. “Yes, they are very helpful. They want to help so that we can finish quickly. They want us gone.”

 

Posted in Border Review | Also tagged , | Leave a comment

Current Situation in Northern Burma

Very good summary of the current events in Northern Burma by Nicholas Farrelly for The Interpreter. In June, the quarrels over security for a Chinese hydro-electricity project caused the end of the long ceasefire between the Kachin Independence Army (KIA) and the Burmese government.

From 1994-2011, while the KIA ceasefire was in place, the Chinese government became increasingly enthusiastic about the mineral exploration, infrastructure development and trading opportunities presented by northernmost Burma. Huge investments followed. Jade and gold mining, logging and dam building all became big business. India watched cautiously, invoking its ‘look east’ framework so as to not miss out entirely.

The KIA ceasefire led to unprecedented economic development and relative political calm; it also reinforced age-old Kachin resentments about ethnic Burmese chauvinism. Today, any optimism about the region’s immediate prospects has disappeared. This war, on territory right between China and India, has seen the KIA trading heavy blows with Burmese government military forces.

[...]

The proximate cause is a dispute over security for a Chinese hydro-electricity project. But what really infuriates the Burmese military leadership is their years-long inability to persuade the KIA to become a ‘Border Guard Force’. Such an arrangement would mean surrendering overall command to Burmese officers and would ensure the slow death of the KIA as a force for defending ethnic minority pride.

The KIA has announced that it will only accept a new ceasefire brokered and guaranteed by international third parties. The obvious choices for mediation can be found among the neighbours: China and India. Any intensification of hostilities promises to push more refugees into China and damage northern Burma’s substantial Chinese commercial interests. Further destabilisation of northern Burma will have implications for the Indian government too.

More analysis by Ferrelly and others at New Mandala. And here a piece by Zin Linn for  Asian Correspondent about the Chinese warnings to the United Wa State Army (UWSA) and National Democratic Alliance Army (NDAA) that this was not a time to oppose the Junta. Mining and Chinese interests also plays a crucial role in Wa territory, as Magnus Fiskesjö shows in his recent article for the Journal of Global History.[nbnote ]Fiskesjö, Magnus. 2010. “Mining, History, and the Anti-State Wa: The Politics of Autonomy Between Burma and China.” Journal of Global History 5, no. 02; doi:10.1017/S1740022810000070. [/nbnote]

[nbnote print="true" ]

Posted in Border Review | Also tagged , , | Leave a comment