In­ner Mon­go­lia Power (Group) Co is coast­ing on B&R Ini­tia­tive to ex­pand over­seas

China Daily (Hong Kong) - - BUSINESS - By MENG FANBIN in Bei­jing and YUAN HUI in Ho­hhot

State-owned, Ho­hhot-based In­ner Mon­go­lia Power (Group) Co Ltd or IMPC, the largest power ex­porter in North China, is seek­ing to ex­ploit op­por­tu­ni­ties pre­sented by the Belt and Road Ini­tia­tive to go global.

The Chi­nese gov­ern­ment has been en­cour­ag­ing do­mes­tic power com­pa­nies to be­come global play­ers. It is also keen that the coun­try’s power grids should con­nect with other coun­tries’ net­works for op­ti­mal uti­liza­tion of en­ergy re­sources.

For IMPC, this is a pos­i­tive sit­u­a­tion be­cause it has sur­plus elec­tric­ity that it wants to ex­port to new mar­kets.

Mon­go­lia in its neigh­bor­hood is the near­est ex­port mar­ket. So, the com­pany is fo­cus­ing on it for now, but has plans to ex­pand to other coun­tries later.

Given the im­mi­nent de­vel­op­ment projects and ex­ploita­tion of min­eral re­sources, Mon­go­lia’s power out­put needs to be aug­mented man­i­fold. So, the coun­try is plan­ning to build new power plants, and look­ing for part­ners that can bring in both cap­i­tal and tech­nol­ogy.

IMPC, through its sub­sidiary, is will­ing to get in­volved in the con­struc­tion of power plants and power grids in Mon­go­lia.

“We are will­ing to take part in the con­struc­tion and op­er­a­tion of power plants in Mon­go­lia.

“We are try­ing to pro­mote de­vel­op­ment of the power sec­tor in both coun­tries through com­pre­hen­sive, deep and multi-sec­tor co­op­er­a­tion,” said Wang Yucheng, chair­man of IMPC.

“Mon­go­lia’s fo­cus on power pro­vides us with a good op­por­tu­nity to en­ter its elec­tric­ity mar­ket and con­trib­ute in terms of de­sign, con­struc­tion, op­er­a­tion and man­age­ment of power plants and power grids.”

In Septem­ber, sev­eral tech­ni­cians from Na­tional Power Trans­mis­sion Grid, Mon­go­lia’s state-owned power com­pany, the largest in the coun­try, will visit China for a train­ing course to be con­ducted by IMPC.

“We hope to share our tech- nolo­gies, man­age­ment ex­per­tise and test­ing stan­dards with them, so as to pro­mote power de­vel­op­ment in Mon­go­lia,” said Guo Kang, deputy chief en­gi­neer of In­ner Mon­go­lia Power In­ter­na­tional Co­op­er­a­tion Co Ltd or IMPC In­ter­na­tional, a wholly owned sub­sidiary of IMPC.

Es­tab­lished in 2011, IMPC In­ter­na­tional was set up to con­struct a badly needed power sup­ply line for Mon­go­lia Oyu Tol­goi Co Ltd or OT, a cop­per mine.

The larger goal was to pro­mote power co­op­er­a­tion be­tween the Chi­nese au­ton­o­mous re­gion and Mon­go­lia, and ex­pand power ser­vices to neigh­bor­ing coun­tries.

IMPC In­ter­na­tional is the only 220-kilo­volt power sup­plier to Mon­go­lia in the west In­ner Mon­go­lia power grid, and its power ac­counts for more than 90 per­cent of China’s elec­tric­ity ex­port to Mon­go­lia.

From Novem­ber 2012 to May-end this year, IMPC In­ter­na­tional ex­ported 4,480 mil­lion kilo­watts of elec­tric­ity to OT, ac­cord­ing to the com­pany.

A four-year co­op­er­a­tion agree­ment be­tween IMPC In­ter­na­tional and OT ended suc­cess­fully in June. An­other six-year co­op­er­a­tion agree­ment was signed af­ter that.

Gal­san Bat­sukh, pres­i­dent of OT, has high praise for IMPC In­ter­na­tional’s ef­forts in sup­ply­ing sta­ble power. He said as much when he met IMPC’s Chair­man Wang dur­ing the lat­ter’s visit to OT.

“We will, as al­ways, keep our prom­ises, honor the agree­ments and en­sure safe power sup­ply with high-qual­ity ser­vices and ad­vanced tech­nolo­gies,” Wang said.

Guo said, “We also pro­vide free ser­vices for our part­ner, such as power util­ity in­spec­tion.”

On May 12, IMPC In­ter­na­tional signed an agree­ment with Mon­go­lia’s Na­tional Power Trans­mis­sion Grid, for an­other six-year co­op­er­a­tion in elec­tric­ity pur­chase and sale for OT cop­per project.

“We are ac­tively par­tic­i­pat­ing in the plan­ning and in­vest­ment of the power in­dus­try in southern Mon­go­lia, and look­ing for­ward to co­op­er­at­ing with Mon­go­lia in the power sec­tor,” said Jia Zhen­guo, gen­eral di­rec­tor of IMPC at the sign­ing cer­e­mony on May 12.

OT has 8,500 staff, and is one of the largest such fa­cil­i­ties in the world. It is also a strate­gic project that is key to Mon­go­lian eco­nomic de­vel­op­ment as it ac­counts for one-third of GDP.

Its largest share­holder is Rio Tinto with a 66 per­cent stake. Rio’s se­nior man­agers help in op­er­a­tions and man­age­ment.

IMPC In­ter­na­tional is plan­ning to set up an of­fice in Ulaan­baatar, cap­i­tal of Mon­go­lia, so as to strengthen com­mu­ni­ca­tion with its Mon­go­lian part­ners.

Mon­go­lia may find it dif­fi­cult to es­tab­lish on its own power plants at cer­tain lo­ca­tions in Mon­go­lia’s key prov­inces, so IMPC In­ter­na­tional is will­ing to broaden its co­op­er­a­tion be­yond en­ergy for a win-win sit­u­a­tion, Wang said.

“IMPC In­ter­na­tional has the abil­ity to play an im­por­tant role in power grid con­struc­tion and op­er­a­tions, and can con­trib­ute cap­i­tal, tech­nol­ogy and man­age­ment.”

Mon­go­lia’s total in­stalled ca­pac­ity is 1,047 mil­lion watts, or less than 1/50th that of In­ner Mon­go­lia’s western power grid.

IMPC In­ter­na­tional has an­other Mon­go­lian client, Nalin Suhai Tu mine, for which it is set­ting up a 110 kV power sup­ply line. Power from China’s Ceke port will be sup­plied to the mine, said Wang.

“Once we re­ceive the nec­es­sary ap­provals, we will be­gin de­sign and equip­ment pro­cure­ment work.”

As of March 25, the com­pany has ex­ported 300.4 mil­lion kW to Mon­go­lia, up 5 per­cent year-on-year.

Mon­go­lia’s fo­cus on power pro­vides us a good op­por­tu­nity to en­ter its elec­tric­ity mar­ket and con­trib­ute in terms of de­sign, con­struc­tion, op­er­a­tion ...” Wang Yucheng, chair­man of IMPC

Con­tact the writer at meng­fan­bin@chi­nadaily.com.cn

PRO­VIDED TO CHINA DAILY

Tech­ni­cians of Mon­go­lia Oyu Tol­goi Co Ltd and IMPC ex­change ex­pe­ri­ences at a power sta­tion in the In­ner Mon­go­lia au­ton­o­mous re­gion.

PRO­VIDED TO CHINA DAILY

Zhang Jian­wei (fourth from left), gen­eral man­ager of IMPC In­ter­na­tional, shakes hands with B. Nyam­sam­buu, gen­eral man­ager of Mon­go­lia’s Na­tional Power Trans­mis­sion Grid, at an agree­ment sign­ing cer­e­mony in Bei­jing.

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