Recent CEA / UKTI trade mission to Mongolia opens up major opportunities for UK mining companies.
As a direct result of the mission around £10 million of sales have been reported with more possibly in the pipeline. A number of UK companies have also achieved their goal of appointing a distributor.
The Construction Equipment Association (CEA) organised the mission and associated seminar in September in association with UK Trade & Investment (UKTI).
The aim was to:
- explore opportunities in the mining and construction equipment sectors in Mongolia
- assess the scope of the market
- identify major players in the sector
- better understand the scope of and issues surrounding the Mongolian mining sector
A recent market study on Mongolia by UK market analyst specialists Off Highway Research, showed a five year equipment sales average of around 1,200 p/a reaching a peak in 2011 of almost 2,200 machines.
This total fell to just over 1,000 machines in 2012, but is forecast to double from 2014 onwards and to 2,700 by 2017.
Mission / Seminar
Ten UK companies participated including:
- Brendon Powerwashers
- Gomaco International
- Industrial Power Group
- Off Highway Research Powerscreen
- Rapid International
They had a variety of goals from just scoping the market for opportunities to signing up a distributor or product support.
The Seminar attracted over 75 delegates from Mongolia who came to listen to UK speakers showcase the best of UK construction and mining equipment.
- equipment distributors
- end users
- government ministries
- funding bodies
The Seminar was chaired by Joanna Oliver MBE and began with an introduction from HE Christopher Stuart, British Ambassador to Mongolia. This was followed by a briefing on rail infrastructure improvement plans from the Mongolian Ministry of Railways.
During the rest of the trade mission, missioners received briefings from the British Embassy team, the Mongolian Ministry of Roads and the Ministry of Railways highlighting the massive infrastructure plans underway in Mongolia, and the British Business Group in UB.
While some missioners went on to private meetings, the rest of the missioners flew to the South Gobi to visit the Oyu Tolgoi (copper and gold) and Energy Resources Tavan Tolgoi (coal) mines.
Plans for a similar mission in September 2014 are in hand, for further details contact Joanna Oliver at the CEA.
Feedback from delegates and CEA
Initial feedback from the seminar and mission shows a very high level of satisfaction with the programme and mission organisation. A number of delegates commented that it was one of the largest and certainly best organised events of its kind that they had attended.
Joanna Oliver MBE director of Global programmes at the CEA and seminar and mission organiser said
The British Embassy team were brilliant – so very helpful and incredibly knowledgeable. Their input and help with the seminar and trade mission contributed greatly towards its success, we could not have done it without them – I look forward to working with the British Embassy team on the next mission to Mongolia!
CEA member company Brendon Power Washers was amongst the British companies participating in the mission, brothers Chris and Rob Hendy represented the company.
The first exports for Brendon were in the late 1980’s to the Middle East and developing the export opportunities has always been the company philosophy.” Said Brendon’s export sales director Chris Hendy.
Mr Hendy added
The main reason that we went on this mission was that three years previous we had supplied some units to a mining company in the Gobi Desert….. and from this we felt that there must be a market for well-engineered, robust equipment.
We also had several other very good contacts in the Country which were keen to enter the market with our products. So as with all new business the only way to develop the trust required, would be a visit and face to face meetings.
Joanna had organised some trips to the local Ministries and talks with the Deputy UK Ambassador for Mongolia. They enlightened us with the current economic and political situations, well worth attending.
Mr Hendy concluded
The trip to the Gobi Desert part was particularly of interest to myself and Rob as potentially we could actually see a “Brendon in the Gobi”. Following the visit to the mine we had a Wow! moment as we discovered one of our Brendon Bowserwashers on site! This was a great first mission for us with the CEA and Joanna, but will certainly not be our last.
The CEA was appointed by UK Trade & Investment to plan, recruit and implement the seminar which was held in Ulaanbaatar, Mongolia in order to highlight UK expertise in the construction and mining equipment sectors. The seminar was complemented by a trade mission to Ulaanbaatar and the mining region of the South Gobi (around 600km south of Ulaanbaatar).
The Mongolian economy has slowed somewhat from the dizzy heights of 17.5% GDP growth in 2011, due to reduced commodity prices and some political instability between the government and the Oyu Tolgoi (OT) owners, a Rio Tinto led consortium, over licenses and ownership share of the mine.
However, GDP growth was still 12.3% in 2012 and forecast to be around 11% in 2013, depending on the outcome of the Government negotiations with OT (Source: Bloomberg).
If you are looking to develop your mining business in Mongolia contact Zandan Bilegt.