One A Brief Introduction
The North Urad Banner locates northwest to the Bayannagur League, 50km from Linhe City, the capital of the League, in the south. In the east, it borders with the Middle Urad Banner, in the west, lies to the Alsha League, and in the North, next to Mongolia. The Banner has a whole territory of 25,000 square kilometers, total population of 61,000. In resent years, the North Urad Banner’s economy and society are improving rapidly. In 2004, it became the one of the One Hundred Counties of the Rapid Economy Growth in China, in 2006, became one of the Most Economical Competitive One Hundred Counties in the Western China.
Two Development Tendency
1. Advantages of resources and industries. There are 46 kinds of mines in 8 categories have been discovered from 118 mineralized points. And the mineral resources have characteristics of big reserves, good qualities and easy mining. We have been discovered 8 categories of energy, ferrous metal, nonferrous metal, precious metal, rare radioactive mineral, metallurgic raw material, industrial chemicals and building materials. 23 of them have already explored and proved their reserves. According to the statistics, the proved reserve of the copper is 79% of the whole Inner Mongolian Autonomous Region; the proved reserve of the lead is 43% of the whole Autonomous Region; the proved reserve of the zinc is 53% of the whole Autonomous Region; the proved reserve of the sulfur is 85% of the whole Autonomous Region; and it has 30 billion tons of oil shale; 150,000,000 tons of oil reserves and 140,000,000 tons of iron cores.
There are 64 kinds of industrial and mining industries, including 11 industries that their output value over 100,000,000 yuan in the whole Banner. These industries of the Banner have abilities of mining and producing for 2,000,000 tons of lead and zinc; 1,700,000 tons of copper; 2,000,000 tons of iron; 100,000 tons of nickel each year. And abilities of smelting of 100,000 tons of zinc; 100,000 tons of copper; 45,000 tons of iron and 50,000 tons of lead each year.
The main enterprises are Dongshengmiao Mining Company, Western Copper Company, Qihua Mining Company, Wancheng Mining Company, Bayannagur Zijin Nonferrous Metal Company Ltd., the North Urad Banner Zijin Mining Company and Ebtu Nickel & Cobalt Company.
2. Advantages of location and communication. The North Urad Banner lies to the Southern Gobi Province of Mongolia, Alagsha League, Ordos City, Wuhai City, Bugutu City of Inner Mongolian central areas, and locates in the mediacy of resources of western China. The town of Khukheundur as center in our Banner, radius of 200-250km around it, the economic circle may include the whole Bayannagur City, Wuhai City, Ordos City, Alsha League and the southern part of the Southern Gobi Province of Mongolia, therefore it has a very large economic radiation. At present, our Banner is applying for reopening of the Bagamodo Port, and the plan has reported to the National Customs Administration, and the plan has taken into the Ten One Five Project for State Port Construction. At the same time, our Banner constantly strengthening the exchange and cooperation with Mongolia, has concluded sister Banners or counties with the several areas of the Southern Gobi Province of Mongolia, come to an agreement on opening ports and striving for the project now. The Bagamodo Port is a historical trading port of the North Urad Banner, and just neighboring with the Budugunmodo Port of Bayanoboo County of Mongolia. The port has a direct distance of 650km from Ulaanbaatar, 220km from the Southern Gobi Province, 410km from Middle Gobi Province, 610km from Bayanhonggor Province, 520km from the South Hanggai Province, 760km from Bulgan Province and 690km from the North Hanggai Province, Mongolia. It is 110km from the Bagamodo Port to Linhe – Ceke – Hami Railway of Xinjiang, 193km from the Baolan Railway (from Bugutu to Lanzhou), Jingzang Highway (from Beijing to Tibet) and 110 National Highway; therefore, we have a very convenient communication and transportation. When the port will be opened, it might become an important center of freight and commercial and transportation between China and Mongolia, because of cutting down the distance about 200km from mineral areas of the Southern Gobi Province of Mongolia to Khukheundur Town, an important industrial town of our Banner, compared with the distance to the Ganjigmodo Port, and also cutting down the distance about 900km compared with Eriyen Port. And if residents from the neighboring provinces of Mongolia come here and shopping from the Bagamodo Port, their cost and expenses also will be cut down by 2-3 times. When the Linha Raiway (Linhe-Ceke-Hami,Xinjinag ) will be built, it will reach Tinjing Port in the east, reach middle Asia even to Europe in the west, connect with the railway from China Ceke Port to Ulaanbaatar under construction. The Lince Railway (from Linhe to Ceke Port of Alsha League, a part of Liha Railway) under construction will be fished next year and opened to traffic. Therefore, two arteries of communication to Ceke Port and Bagamodo Port will be crossed in here the industrial important town of Khukheundur, and connected to railways, highway networks of whole China.
3. The advantages of electricity and water recourses. The Banner has about 1100km total length of electronic transmutation wires, over 300 thousand kilowatts total capacity of power supply, had supplied 1.2 billion degrees of electricity in 2006. The banner has established two of 220kv substations, two of 110kv substations, six of 35kv substations. The Banner is going to establish one of 500kv substation, one of 220kv substation and another 110kv substation is going to build in Bagamodo Port. And have newly built many wind generation industries, with total output of over 1200,000 kilowatts, and going to supply electricity to Mongolia. The China’s second biggest river, the Yellow River, one of its tributaries flows through the Banner, provides plenty of water resource of 400 billion cubic meters each year, satisfy the development needs of the industries and the city.
The Khukeundur Town is the nearest industrial base to Tabun Tolugai and Oyu Tolugai mining areas of Southern Gobi Province of Mongolia, having plenty of resources of water, electricity, communication and transportation. And formed a certain scale industrial base which based on nonferrous metals.
Three Development Planning
In the future, the North Urad Banner is going to develop dominant industries actively, and set up industrial bases of metallurgy, chemistry, recourses and logistics.
1. Metallurgic Industry: the Banner based on own resources and importing mineral resources from Mongolia in addition, and continue to expand the industrial economy. The copper industry, the Western Copper Company is being built as a key copper mining project with 2000,000 tons of copper each year, the Feishang Copper Metallurgic Company 100,000 tons of copper each year; the lead and zinc industry, the Zijin Mineral Company is being built as a major construction with 200,000 tons of product each year, the Wancheng Commercial Company 300,000 tons each year, the Western Copper Company 85 tons of metal mining each year; and do well with the second term construction of Zijin Company’s project of 100,000 tons of zinc each year, Huapeng Company’s project of 20,000 tons of oxidized zinc each year; the iron industry, the Shuangli Company is being built as a key project of 200,000 tons of iron mining and 400,000 tons of coal and reduced iron each year. The Banner is going to strive and begin to build project of 600,000 tons of nickel and chromium stainless steel, and projects of secondary products of refinery processing of copper, iron, lead and zinc.
2. the chemical industries: the Banner is speeding up the construction of the Qihua Company’s 400,000 tons of sulfur-based compound fertilizer each year, the Shenyang Company’s first term project of 30,000 tons of hydrofluoric acid each year, the Zijin Company’s 50,000 tons of acid pickling polyester iron alum slag each year, the Yitai Company’s 15,000 tons of less antimony powdery explosives each year, and project of importing 2,000 tons of poly-silicon each year. The Banner is striving for a breaking through progress on oil shale mining, to build a mine of 2000,000 tons of oil shale each year, a factory of 100,000 tons of oil shale retort.
3. The energy industries: the Banner is going to strengthening on the development and utilization of renewable energies such as wind energy and the sun energy. By 2010, the Banner is going to be built as a wind power base of over 1,200,000 kilowatts each year. The solar power industry is going to built in advance, construction of a project of 1,000,000 kilowatts solar power is going to start and built.
4. The logistic industry: the Banner takes advantage of the Lince Raiway, is going to establish bigger logistic industry, comprehensively develop railway logistics and highway logistics, and the Khukheundur Town will be built as the biggest synthetic and intermediate logistic base which covers whole Bayannagur City; takes the advantages of Bagamodo Port, the port will be built as the biggest synthetic trading and logistic base in the Western Inner Mongolia.
Four Cooperative Prospects
The Ivanhoe Mines Ltd is a world famous mining company, and doing business all over the world. The North Urad Banner has a plenty of mineral resources, advantage of outstanding location and a great development potentiality. Therefore, there is a great cooperation space between the Ivanhoe Mines Ltd and the North Urad Banner, and has a great joint cooperative prospects, too. The North Urad Banner locates mine zones in the Yinshan Mount area and the Altai mine zone link area, there are plenty of mine resources and several mine areas have a large peripheral and potential prospecting. The Ivanhoe Mines Ltd has an advanced technology and strong power, can do further expiration and mining in our Banner. Besides, the Ivanhoe Mines Ltd is exploring and mining in the Southern Gobi Province of Mongolia, and our Banner has plenty of electricity and water resources, excellent location, and good industrial basic, convenient communication, there are many complimentary advantages for two sides for development of mineral resources of Mongolia, and could approach a win-win result. And also, both sides may discus and cooperate in other fields in our common interests.
The forgoing two kinds of Cooperative Directions have very wide contents. According to the actual needs, we could change them into practical implemental measures. If Ivanhoe Mines Ltd interested, may develop the next step field work, investigation and negotiate business. The North Urad Banner welcomes Ivanhoe Mines Ltd to the Banner in anytime, and doing investigation and negotiate business and research.
(translated from Chinese into English by Delger)