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ANNUAL%20REPORT%202015%20eng

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Sustainability Report<br />

In 2015, approximately 7,000 seedlings were harvested from the nursery field for use in various tree planting,<br />

landscaping and gardening projects. Plants like elm, silverberry, tamarisk and saxaul were planted by seed and<br />

cuttings for later use in seedling preparations.<br />

Water<br />

Water is a scarce and highly valuable resource in the arid Gobi region. Access to water is critical to our ongoing<br />

operations and effective water management is considered an essential factor of our project and operational<br />

sustainability. A comprehensive Water Management Plan guides the actions of our management, employees and<br />

contractors with regard to the use and re-use of water. This especially includes the effective management of<br />

groundwater, taking into consideration its use by local herders. The ecological and economic value of water has<br />

led to greater scrutiny of responsible water use and increased expectations from our stakeholders for improved<br />

water stewardship.<br />

The Company uses a combination of both groundwater and recycled water at the mine sites. As part of our water<br />

use and management, we have provided filtered water for the local communities at a subsidized rate since 2011,<br />

and welcome their participation in our water monitoring activities.<br />

At our operations, water is sourced from groundwater boreholes and is stored in two water reservoirs with a total<br />

storage volume of 56,000 m 3 , covered by synthetic membrane to prevent evaporation. In 2015, a total of 465<br />

megalitres (“ML”) of groundwater was extracted and 190 ML of water was recovered during coal processing by<br />

the Belt Filter Press facility for re-use in further coal processing.<br />

We continue to undertake activities that are aimed at preventing and reducing potential impacts on groundwater.<br />

These include:<br />

• Monitoring of herder wells around the mine and Tsogttsetsii soum centre is conducted on a monthly basis.<br />

There are 10 groundwater boreholes installed in the UHG mine licensed area for groundwater monitoring,<br />

which allows us to control the level of groundwater and monitor for potential contamination that may result<br />

from our operations. In partnership with the authority of Galba Uush Dolood Gobi water basin, we equipped<br />

2 groundwater monitoring boreholes around our water extracting area with remote data loggers.<br />

• In 2013, the Company established a waste water treatment plant in the soum center which has a capacity to<br />

treat 1,200 m 3 of waste water per day. The facility’s treatment capacity of contaminated water stands at up<br />

to 96%, making the treated water quality fully in compliance with the requirements of the national standards.<br />

In 2015, over 80 ML of domestic waste water was treated and re-used for purposes such as road and tree<br />

watering.<br />

• In June 2015, a solid waste clean-up campaign was organized in the surrounding area of six natural springs<br />

located within a 30 km radius of the UHG mine site.<br />

66<br />

Annual Report 2015

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