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Czech companies represent themselves at Coal Mongolia 2019

Within frame of diplomatic activities, Czech Republic has supported a total of three hundred economic projects, nine of which focus on mining, seven of which are implemented in Asia. Czech companies are aware of the extraordinary potential of this sector on the Asian continent, therefore they focus attention on Mongolia. Due to traditional cooperation in the past (e.g. Czechoslovak geologists contributed significantly to the discovery of a copper mine in Erdenet in the 1960s), there are many business opportunities.

The project of economic diplomacy realized in Ulaanbaatar on 4 - 6 September 2019 also focused on the mining industry. The Czech Embassy, in cooperation with CzechTrade, supported the second participation of Czech entities at the exhibition Coal Mongolia 2019. In addition, The Czech Embassy provided the possibility for the Czech companies to make professional presentations to Mongolian partners through organizing seminar at its premises.

Mining is a key sector of the Mongolian economy. It is the country's main source of income, accounting for 25% of GDP and 80% of the country's total exports. In addition, three-quarters of foreign direct investment is made in this sector. 90% of household energy production is produced with coal. As Minister of Mining and Heavy Industry D. Sumiyabazar stated in his opening speech, the government is finalizing a number of important legislative instruments to stimulate mining sector reform and to ensure transparency and environmental sustainability in the sector. Investments in mining sector are considered as the basis for Mongolia's sustainable and inclusive development by the government, therefore pays special attention to it. The government does not only intend to invest in the mining; but also aims to invest in production of competitive, value-added products through processing the minerals, as well as in infrastructure projects including railways, roads, water and energy facilities.

Mongolian Coal Association and the China Coal Transportation and Distribution Association are co-organizing the exhibition which has been held since 2011. The importance and regional inclusiveness of the exhibition have been increasing. In the very first day of the event under the motto "Lead the Market", discussion on current situation of Chinese coal market, its trends, price forecasts, industrial policies, and regional partnerships have been held. 90% of Mongolian mineral raw material is exported to China. The possible future success of Czech companies on the Mongolian market would also be a valuable reference for the Chinese market.

Government representatives, representatives of domestic and foreign mining companies engaged in coal mining, processing, handling and transportation, representatives of trade, transport and logistics companies, professional associations, investors, banking and financial institutions, consultancy and software companies, researchers gave presentations at the conference.

It can be observed from the lectures and discussions held during the two-day event, there are opportunities for Czech exporters to help Mongolia in improving the surface mining efficiency, replacing horizontal transport with vertical transport, defining quality of extracted minerals with modern automated technology, use of secondary raw materials, and reducing emissions. When some products reach the final consumer through 4-5 actors in the distribution chain, increasing competitiveness and efficient transport is very rare in the local market,

The conference itself was preceded by a seminar at the Czech Embassy attended by representatives of around thirty local and multinational companies. Czech companies praised that they had the opportunity to reach potential partners such as Oyu Tolgoi, Erdenes Oyu Tolgoi, Aspera Mining and MINEX Mongolia who then returned to them at the exhibition with specific questions and proposals for cooperation.

This year's seminar and exhibition were attended by member companies of Czech Mining Union such as RPS Ostrava which is engaged in engineering activities of coking and mineral processing plants, energy and biomass processing, INCO Engineering that supplies machinery and equipment for underground mining, Enelex that manufactures special electronic devices for mining and energy sector, Bohemia Controls that offers automation of coal processing systems and the Czech Export Bank which finances some of the projects.

The CzechTrade, government agency, provides significant support for the export of Czech technologies and ensures Czech companies participation in exhibitions held in Mongolia through ordering exhibition boot for them with the help of EU fund. This year, it was awarded prestigious prize for the exhibitor.

Prepared by: Iva Šustáková, Economic Diplomat, Embassy of the Czech Republic in Mongolia


Coal Mongolia 2019