August 2010

Amatsu LLC
Oyut-Ovoo iron ore operating lisence (987.277.700 tonnes/year)
Erdenedalai soum, Dundgobi province

TECHNICAL AND ECONOMICAL SPECIFICATIONS OUTLINE FOR IRON

ORE

Specification
Project operating company

State registration reference number of the company

3
4
5

Reference number of the special permission

Type of the mineral resource
Deposit resource (C class)
Iron ore (average iron content 44.5%)
Iron per ore
Geological producible deposit
Iron ore (average iron content 45.0%)
Iron per ore
Ore scrab
Iron ore (average iron content 43.5%)
Iron per ore
Concentrate production (average iron content 68.35%)
Iron per concentrate
Deposit operating system (open pit mining)
Concentration technology
Capacity of the producing factory
Ore scrappage
Ore pollution
Soil mining average index
1tns of iron concentrate world price (110 $/tns of 68.35 %)
Total cost for 1tns of concentrate
Total cost for 1tns of ore
Total investment needed
Repayment period
Tax and state budget additive (total of the deposit)
Number of employees
Total earnings /in iron concentrate/
Total cost
Net total profit

7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Unit

Amount
AMATSU LLC
.
Iron

Tns
Tns

7.180.000.0
3.195.100.0

tns
tns

7.000.000.0
3.150.000.0

tns
tns
tns

tns/year
%
%
cbm/tns
$/tns
$/tns
$/tns
Mlln/USD.$
Year
Mln USD$
Person
Mln USD$
Mln USD$
Mln USD$

6.500.000.0
2.827.500.0
4.442.750.0
2.045696.25
Road transport
Dry/solid
1.480.900.0
2.09
4.25
2.193
110
74.5
37
97.0
3.5
15.0
350
488.7
110.0
376.7

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

Economical evaluation (original form)

Economical evaualtion has underdone by defining all expenses including operation, concentrate and
raw 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 iron
concentrate:4.442.750.0 tns 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 border
station of Mongolia. Iron ore production set as total of 4.442.750.0 tns which of 1.000.000.0 tns at
the 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 first
year 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 by
spending 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 of
Russia, 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

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

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

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

Iron ore demand increases in relation to the rise of Chinese economy. Over 490 middle sized iron
deposits 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

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

11/2008
12/2008
01/2009
02/2009
03/2009
04/2009
05/2009
06/2009
07/2009
08/2009
09/2009
10/2009
11/2009

45.00
34.56
32.65
46.82
52.08
57.00
53.46
55.29
58.08
49.68
64.55
45.47
51.07
645.71

72.39
61.06
47.24
58.19
61.72
60.79
65.56
83.27
76.87
76.68
85.43
83.88
86.78
919.84

117.39
95.62
79.89
105.01
113.80
117.79
119.02
138.56
134.95
126.36
149.98
129.35
137.85
1,565.55

- 5 - , 2008

Iron ore , ,
0,05%-
.
- 6

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

: 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

, /

62.0% fine

Lianyungang

910-920

130-131,4

Lianyungang

63.5% fine

940-950

134,3-135,7

Hubei Xinye
Hubei Xinye

63%
64%

930
965

132,8
137,8

188,500190,571
194,714196,785
192,642
199,892

: BEIJING (Asian Metal) 4 -Feb -2010

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