fe_tezy

8/2/2019 Fe_TEZY

1/6

August 2010Amatsu LLCOyut-Ovoo iron ore operating lisence (987.277.700 tonnes/year)Erdenedalai soum, Dundgobi province

1 | P a g e

TECHNICAL AND ECONOMICAL SPECIFICATIONS OUTLINE FOR IRONORE

Specification Unit Amount

1 Project operating company AMATSU LLC

2 State registration reference number of the company

3 Reference number of the special permission .

4 Type of the mineral resource Iron

5 Deposit resource (C class)

Iron ore (average iron content 44.5%) Tns 7.180.000.0

Iron per ore Tns 3.195.100.06 Geological producible deposit

Iron ore (average iron content 45.0%) tns 7.000.000.0

Iron per ore tns 3.150.000.0

Ore scrab

7 Iron ore (average iron content 43.5%) 6.500.000.0

Iron per ore tns 2.827.500.0

8 Concentrate production (average iron content 68.35%) tns 4.442.750.0

9 Iron per concentrate tns 2.045696.25

10 Deposit operating system (open pit mining) Road transport

11 Concentration technology Dry/solid

12 Capacity of the producing factory tns/year 1.480.900.0

13 Ore scrappage % 2.09

14 Ore pollution % 4.2515 Soil mining average index cbm/tns 2.193

16 1tns of iron concentrate world price (110 $/tns of 68.35 %) $/tns 110

17 Total cost for 1tns of concentrate $/tns 74.5

18 Total cost for 1tns of ore $/tns 37

19 Total investment needed Mlln/USD.$ 97.0

20 Repayment period Year 3.5

21 Tax and state budget additive (total of the deposit) Mln USD$ 15.0

22 Number of employees Person 350

23 Total earnings /in iron concentrate/ Mln USD$ 488.7

24 Total cost Mln USD$ 110.0

25 Net total profit Mln USD$ 376.7

8/2/2019 Fe_TEZY

2/6


2 | P a g e

Economical evaluation (original form)

Economical evaualtion has underdone by defining all expenses including operation, concentrate andraw material price.97.0 mln USD of investment is needed for the ore for its economical operations.4.5 years of processing is estimated to process iron resource with production of ironconcentrate:4.442.750.0tns with iron content:2.045696.25tns, which of 68.35% average concentration.Exportation of the concentrate is to be shipped through Zamyn-Ude station, the Southern borderstation of Mongolia. Iron ore production set as total of4.442.750.0 tns which of 1.000.000.0 tns atthe first year, and 3.442750.0 tns from 2-4.5 years from the production.

Total revenue of the mining estimated to be 376.700.000 USD which of 87.723.000USD at the firstyear and 290.977.000USD at the 2-4.5 years from the production.

Net total profit estimated to be 376.700.000USD, while earning total revenue of 488.700.000USD byspending 110.000.000USD. 1 tonne of iron concentrate is to be produced within 74.5USD of budget.

Total investment is inclusive to the total cost, which shows sufficient background to earn profit.Iron demand increases thoughout Europe, China, Japan for its significant need for iron as raw material,while Russia, China and even Mongolia recently is increasing its demand for iron.Australia and India are the main suppliers of iron to China, north Korea and Japan while Republic ofRussia, Sweden, France supplies to main European union iron users, namely, Germany, Britain, Italy,France, Chezh republic.Major worldwide suppliers of iron concentrate are India, Austratia, brazil and south aftican countries.

PHOTO- 1: LOCATIONS OF MAJOR IRON ORE PRODUCERS

Resource:Byambadavga.B (2008) Trends of iron ore production and market research

8/2/2019 Fe_TEZY

3/6


3 | P a g e

PHOTO - 2 LOCATIONS OF IRON ORE DEPOSIT, MONGOLIA

PHOTO- 3 WORLD IRON ORE RESOURCE

Resource:Byambadavga.B (2008) Trends of iron ore production and market research

8/2/2019 Fe_TEZY

4/6


4 | P a g e

Iron ore demand increases in relation to the rise of Chinese economy. Over 490 middle sized irondeposits are operating in Peoples Republic of China - 490 10-100 . 10

33%- .

1700

. 90 , , .

- 4 2005-2009

2005

20-30 . 2005 20 2009 54 2,7 .

- 1 ,

, .tns , .tns , .tns

8/2/2019 Fe_TEZY

5/6


5 | P a g e

11/2008 45.00 72.39 117.39

12/2008 34.56 61.06 95.62

01/2009 32.65 47.24 79.89

02/2009 46.82 58.19 105.01

03/2009 52.08 61.72 113.80

04/2009 57.00 60.79 117.79

05/2009 53.46 65.56 119.02

06/2009 55.29 83.27 138.56

07/2009 58.08 76.87 134.95

08/2009 49.68 76.68 126.36

09/2009 64.55 85.43 149.98

10/2009 45.47 83.88 129.35

11/2009 51.07 86.78 137.85

645.71 919.84 1,565.55

- 5 - , 2008

Iron ore , ,

0,05% - .

- 6

8/2/2019 Fe_TEZY

6/6


6 | P a g e

: Metal Economics Group, 2008

2008

, 2009-2012 90 , 2012-2015 100 .

2010 2- 4- Asian Metal 62-64% - 130,0-137,8

.

- 2 -

, /tns , USD/tns , /

Lianyungang 62.0% fine 910-920 130-131,4 188,500-190,571

Lianyungang 63.5% fine 940-950 134,3-135,7 194,714-196,785

Hubei Xinye 63% 930 132,8 192,642

Hubei Xinye 64% 965 137,8 199,892

: BEIJING (Asian Metal) 4 -Feb -2010

fe_tezy

Documents