“MINING INFRASTRUCTURE INVESTMENT SUPPORT PROJECT”

Project CoordinatorB. Enkhbaatar

2014

Mongolian water resource

Surface water resource

Groundwater resource

Groundwater resource in the South Gobi region

Mining Water Use

Water demand projection in the South Gobi region

Issues in mining water supply in the South Gobi region

Opportunities to solve the issues of water supply

International Experience of Water Transfer

Conclusion

№ Aimag name Detailed estimated resource, m3/day

Predicted Resource, m3/day

Total groundwater resource, m3/day

1 Umnugobi 98,491.51 164,282.02 262,773.53

2 Dornogobi 15,724.2 169,652 185,376.2

3 Dundgobi 6,868.4 7,968.7 14,837.1

4 GobiSumber 19,333.2 1,202.6 20,535.8

TOTAL 140,417.31 343,105.32 483,522.63

010 00020 00030 00040 00050 00060 00070 00080 000

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Усны нөөцийн хэмжээ, м3/хон Нийт тооцоолсон нөөц, м3/хонWater resource, m3/day Total estimated resource, m3/day

Oyutolgoi Tavantolgoi ShiveeOvoo

UkhaaKhudag

Tsagaan Suvarga NariinSukhait

№ Name of the Mining Companies

Average water use, m3 /day2010 2015 2020 2025 2030

A MINING1 Oyutolgoi 1200 56,039 74,719 93,398 93,3982 Tavantolgoi

169332,038 46,809 51,840 51,840

3 Ukhaa Khudag 4,500 5,600 5,600 5,6004 Shivee-Ovoo 0 31,311 41,748 52,186 52,1865 Tsagaan Suvarga 31,933 53,222 53,222 53,2226 Nariin Sukhait 0 0 48,000 60,000 60,0007 Others 56,400 75,200 94,000 117,500B Free Economic Zone1 Zamiin-Uud FEZ 0 14,080 23,466 23,466 23,4662 Choir FEZ 0 0 2,500 4,500 4,500С Heavy Industry1 Sainshand 0 21,391 35,652 35,652 35,652

Total 2,893 250,958 408,463 473,564 497,064

№ Type of water useWater use

m3/day

Water resource, m3/day

Groundwater Surface water

1Urban and settlements

25,602 15,361 10,241

2 Industry 475,159 285,095 190,064

3 Mining 21,045 16,836 4,209

Total 521,806 317,292 204,513

№ Name of the mining company

Total estimated resource, m3/day

Water usage projection/2030/, m3/day Water balance, m3/day

1 Oyutolgoi 75,168 93,398.40 -18,230.42 Tavantolgoi 33,014 51,840 -18,826.03 Ukhaa Khudag 4,579.20 5,600 -1,020.84 Tsagaan Suvarga 74,243.50 53,222 21,021.55 Shivee Ovoo 14,408.40 52185.6 -37,777.26 Nariin Sukhait 7,641.20 60,000 -52,358.8

Others - 117,500 -117,500Total 209,054 433,746 -201,192

According to the figure, mining and industrial areas in the South Gobi region will be in lack of water supply by 2017.

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2010 2015 2020 2025

Ус хэрэглээ

Ус хэрэглээний өсөлтийн шугам

307,785

Газрын доорхусны ашиглалтын баримжаат нөөц

Water usage, m3/day

Trend line of water usage, m3/day

Exploitable groundwater resource, m3/day

In South Gobi region, the main source of current and future water supply isgroundwater. However, the groundwater resource is insufficient. Forinstant:

When Oyutolgoi mining is explored in full capacity 1250 l/sec or93,398.40 m3/day water is required. The nearest aquifer, Gunii Khooloiplanned to be used for the mining, resource approved as 870 l/sec or75168 m3/day. Therefore, water balance is -18,230.4 m3/day.

To explore the Tavantolgoi mining 920 l/sec or 82166 m3/day water isrequired. But aquifer resource around the 200 km radius from the miningis 760 l/sec. The water balance is -14166 m3/day.

Further, total water demand in the region will exceed the currentlyestimated resource.

Total water demand in the region will reach 521,806 m3/day in 2025, butthe total water resource is 521,805 m3/day /groundwater resource317,292 m3/day, surface water resource 204,513 m3/day/.

Introduce the water efficient technologies Monitoring of water resource usage

The groundwater monitoring network which control themining companies water resource usage is planned to beinstalled in the water source area of the miningcompanies.The Strengthen Groundwater Management in SouthernMongolia project is planning to install 26 more monitoringwells in the three water basins of Gobi region.

One of the example using water efficiently inMongolia is experience of the Energy ResourceLLC. The company commissioned the Waste De-Hydration Plant for the coal production plant. Usingthe Waste De-Hydration Plant, it is possible toincrease water use coefficient (Energy Resource,2014).

Opportunity – 1 Firstly, the ground water potential located close to the bigger projects

planned for the Southern Gobi Region such as Tavan Tolgoi power station, coal deposit, OyuTolgoi Mine, Tsagaan Suvarga Mine, NariinSukhait Coal Mine, Shivee Ovoo Heating power station projects and city, settlements, auto roads and railway and other infrastructure development operations needs to be determined by means of conducting hydrogeological exploration sudies, increase the depth of exploration and the territory size in order to increase the known reserve potential;

New ground water exploration research needs to be carried out in the areas that are geologically and hydro geologically suitable in order to explore additional water supply resources;

Opportunity 1 – For example: Water Resource Council made a

conclusion to conduct investigation to increase the Balgasy Ulaan Lake groundwater resource.

Water Resource Council made a conclusion to conduct investigation to increase the Naimdain Valley groundwater resource.

Naimdain Valley

Balgasyn Ulaan Lake

Opportunity– 2: Consider policies to utilize combined water supply methods in order to provide Gobi

Region’s ecological sustainability, implement “OrkhonGobi” and “KherlenGobi” projects in order to increase surface water exploitation to meet the increased water demand;

- Kherlen-Gobi Project will install 540 km of pipelines to convey 1500 l/sec water from Kherlen River to Shivee Ovoo, Sainshand, Samyn Uud and with a separate pipeline to TsagaanSuvarga.

- Orkhon – Gobi project will install 740 km of pipelines to convey 2500 L\sec water from Orkhon River to Tavan Tolgoi, Oyu Tolgoi and with a separate pipeline to Mandalgobi and Dalanzadgad.

- Water demand in the South Gobi reach 6000 l/sec in 2020, 4000 l/sec of it is supplied by the Kherlen-Gobi and Orkhon-Gobi Projects; and rest of 2000 l/sec water will be supplied by groundwater resource. 50% of water will be used for mining and industrial uses, 30% of water shall be used for irrigated croplands and the rest of the water shall be used for house holds, livestock and environmental water usage.

source: Prestige group, 2013

1. Dulaankhar Dam – located around the boundary of the Mogod Orkhon soum in 35 km from the south-western of the Bulgan city.

2. Khishig-Undur Dam - located in the boundary of the Orkhon soum in 30 km from the south-western of the Bulgan city.

3. Ulaan-Ovoo Dam - located in the 20 km from south of Bulgan city, Orkhon soum area, in the 6 km from south-western of the soum center.

4. Berkh Dam – located in the 40 km from south-western of Erdenet city, in the 40 km from south-eastern of Bulgan city and Orkhon soum area.

5. Ulaan Khunkh Dam - located in the 45 km from south-western of Erdenet city and in Bureg Khangai, Orkhon soum area of Bulgan aimag.

In Libya, The General People's Congressdecided to fund and execute the Great Man-Made River Project. It is the largest undergroundnetwork of pipes (2,820 kilometres) andaqueducts in the world. It consists of more than1,300 wells, most more than 500 m deep, andsupplies 6,500,000 m3 of fresh water per day.

In Australia, The Goldfields Water Supply Scheme is a pipeline and dam project was commissioned in 1896 and was completed in 1903. The 9000 km of pipeline supply 17 mining, 33 000 local organizations, 8000 farms with 28 million cubic meter water.

In order to meet the water demand of the area with larger water users such as the mining production, industrial park and the free economic zone of the South Gobi region from the recoverable resources of the groundwater aquifer, the water resource might be insufficient from 2017 and further;

In the area with favorable geology-hydro geological structure, located near the prospected groundwater aquifer, the groundwater exploration work should be restarted;

According to the calculation of the mining water supply demand at the regional level in 2030, water shortage is anticipated with the volume of 201,192 m3/day. This insufficient water demand requirement could be supplied from the surface water.

THANK YOU FOR YOUR ATTENTION