Industry Performance - The company reported a year-on-year decrease of 8.3% in the performance of the Chinese steel, coke, and coking coal industry [13]. - In the first half of 2024, China's crude steel production decreased by 1.1% year-on-year to 530.6 million tons, while apparent domestic crude steel consumption fell by 4.5% to 471.9 million tons [14]. - China's coke production decreased by 0.8% to 241.8 million tons, with coke consumption increasing by 0.2% year-on-year [14]. - In the first half of 2024, China exported 53.4 million tons of steel, a 22.5% increase compared to 43.6 million tons in the same period of 2023 [14]. - Mongolia's coal imports to China increased by 32.3% to 29.5 million tons, solidifying Mongolia's position as the main source of coking coal imports, accounting for 51.5% of total imports [14]. Environmental Commitment - The company aims to leverage technology and innovation to produce high-quality products at the lowest cost [9]. - The company is committed to minimizing operational impacts on the environment and adhering to all regulatory environmental standards [9]. - Mongolian Mining Corporation aims to reduce coal business emissions by 8% by 2030 compared to 2023 levels [98]. - The company plans to implement ISO 14064 standards to verify 2023 baseline emissions and set mid-term targets by 2026 [98]. - The company is committed to achieving carbon neutrality by 2050 [98]. Corporate Governance and Community Engagement - The company continues to foster a corporate governance culture as a vital part of its organizational development [9]. - The company is focused on establishing mutually beneficial relationships with local communities and government officials [9]. - The company emphasizes transparency and contributes to social development through community development actions [9]. Mining Operations and Resources - The company operates the Ukhaa Khudag and Baruun Naran open-pit coal mines in the Umnugobi aimag of Mongolia [9]. - The company is the largest producer and exporter of high-quality washed hard coking coal in Mongolia [9]. - The company has completed approximately 30% of the total construction work at the Bayan Khundii (BKH) mine and expects to commence gold production in 2025, with an estimated total output of 476,000 ounces of gold over the mine's lifespan [18]. - The BKH mine is projected to have an average annual production of 74,000 ounces of gold with an average recovery rate of 92.7% [18]. - The company has been granted a mining license for the Ukhaa Khudag (UHG) coal deposit, covering an area of 2,960 hectares, effective from August 29, 2006, for a period of 30 years [19]. Financial Performance - Total revenue for the six months ended June 30, 2024, was $541.1 million, compared to $516.7 million for the same period in 2023, representing an increase of approximately 4.3% [61]. - The group recorded approximately 7.2 million man-hours worked in the coking coal business, an increase from 5.9 million man-hours in the same period of 2023 [58]. - The profit attributable to equity holders for the six months ending June 30, 2024, was approximately $133.0 million, down from $136.6 million in the same period of 2023 [68]. - The net cash generated from operating activities for the six months ending June 30, 2024, was $159.6 million, compared to $247.8 million in the first half of 2023 [68]. - The company's equity attributable to equity holders increased to $1,220,688 thousand from $1,114,837 thousand, reflecting a growth of 9.5% [111]. Resource Estimation and Compliance - The total coal resources estimated for UHG as of December 31, 2023, amount to 379 million tons, with a breakdown of 328 million tons above 300 meters and 87 million tons below 300 meters [23]. - The coal resource estimates are considered to accurately reflect the situation as of December 31, 2023, following the principles and guidelines of the Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves [25]. - The internal peer review of the updated coal resource estimates for BN and THG was conducted by the Group's Coal and Energy Department Operations Director, confirming compliance with JORC standards [28]. - The updated JORC coal resource statement for UHG as of January 1, 2024, indicates confirmed coal reserves of 325 million tons of coking coal and 19 million tons of thermal coal, totaling 344 million tons [32]. Safety and Training - The group conducted 14,154 personal training sessions totaling 75,080 man-hours in occupational health, safety, and environment training during the first half of 2024 [58]. - The lost time injury frequency rate was 0.97 incidents per million man-hours, down from 1.36 incidents per million man-hours in the same period of 2023 [58]. - The company continues to utilize online safety training for all employees and contractors, enhancing training participation [72]. Shareholder Information - As of June 30, 2024, the total number of issued shares is 1,047,756,286 [82]. - Odjargal Jambaljamts holds 323,492,188 shares, representing approximately 30.87% of the total issued share capital [81]. - The company has complied with all applicable provisions of the corporate governance code as of June 30, 2024 [79]. - The company did not declare any dividends for the six months ending June 30, 2024, consistent with the previous year [75]. Strategic Partnerships and Future Plans - The company plans to explore potential strategic partnerships and joint ventures to expand and diversify its business, primarily targeting investment opportunities in Mongolia [18]. - The company aims to improve operational efficiency and reduce costs through strategic partnerships and technological advancements in mining operations [61].
MONGOL MINING(00975) - 2024 - 中期财报