Gantumur.T, Founder of MERA LLC

2016/08/29
SGS-00

First of all, I’m sending you my greetings and happy 10th anniversary of SGS Company’s mining operation.

MERA LLC of Ochir-Undraa Group, which is nationally owned group, is a mining engineering company that provides drilling and blasting service to the mining companies and manufactures explosive, aimed to provide customers with globally competitive and international standardized products and service in order to gain our customers gratitude. We have made the first blasting in Ovoot tolgoi coal mine of “South Gobi Sands” LLC 10 years ago.

Today I would like to express my deep appreciation and note that working with your company for 3 years increased our professional skill, incompetency and ability to provide safety and standard significantly and it influenced to our further development enormously.

At that time, Church Curt, the COO of Olon ovoot coal mine, signed the Blasting Service Agreement with us in June 2008. The agreement made on cheapest price with dry condition, using ANFO explosives. However, when we arrive the mine site to execute the blasting on 16th July, there all watery holes were waiting for us and it made our team wonder how this desert area can be that much watery.

We established the ANFO explosives Plant “T11” in 2006 and at that time we were using 3 of TREAD loading trucks with Sterling chassis from USA for loading the hole. For the packaged explosives, which is water resistant, we were importing them from 2 neighbor countries and it used to take more than 50 days for delivery. Therefore under the mutual discussion regarding to the urgent blasting, we mixed the current packaged emulsion with ANFO explosives, packed them in cartridges and made the first blasting on with 78 tons of explosives 18th July, by loading the holes manually. This method worked until next import of water resistant explosive. But, there was some problem such as misfire due to the sleeping time of packaged ANFO. Our director Altangerel.G, blasting manager Narantuya.D, technologist engineer Ganzorig.B and myself executed that blasting and found out many issues to improve and it’s exulted. Even though there was much water and mud in the blasting area during the loading, we executed the blasting successfully. In our previous history, we were doing blasting in mountainous area and there was less watery condition that mines could do the dewatering very masterly by themselves, so this was very complicated for us for first time.

For the first time we executed the blasting of rock with coal seam inside, in order to create bound that provides mine wall stability and to quarry the coal with less waste. Executing this blasting, handling those watery and rocky condition was our good experience and it helped us to be selected for tender of blasting in Ukhaa Khudag coal mine of Energy Resources LLC. We have been working for Ukhaa Khudag mine since 2010 with good reputation. Also we have executed the exemplified blasting for East and West Tsanhi mine of Erdenes Tavantolgoi JSC and Baruun Naran mine of Energy Resources LLC.

Moreover, we built the fleet of over 30 special trucks for transportation of chemicals and explosives, equipped with closed container, seal, locking and GPS-s in order to provide explosives for South Gobi Sands LLC.

We should note specifically that SGS was paying 50% of payment in advance and it made us to plan and organize the cash-flow of company beneficially during the economic crisis of Mongolia in 2009.

MERA LLC is been extending our mining operation, performing geological exploration, burden loading and transportation, mineral processing, rehabilitating, mining engineering and catering service, by improving company’s professional skill and we believe that our two companies will cooperate mutually beneficially and develop the further cooperation.

We wish your company to be more powerful and more successful for the contribution to Mongolian competitiveness improvement and region development in the future.

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