Prime Minister L. Oyun-Erdene: Mongolia is transitioning from mining to processing

Ulaanbaatar/MONTSAME/. During his working trip in Umnugobi aimag last weekend, Prime Minister L.Oyun-Erdene informed that the government issued a decision to establish ‘Tavantolgoi coal concentrator’. To be commissioned in 2023, the plant will have a capacity of concentrating 30 million tons of coal annually and export the value-added product. It is estimated that a ton of high-quality enriched coal will cost USD136, semi-coked coal -- USD107 and washed thermal coal –USD11. PM Oyun-Erdene noted that the government aims to export value-added products through ways such as establishing a copper smelter under the Erdenet Mining Corporation, and transition from the mining sector from extraction to processing. The government also set out to construct a thermal power plant at Tavantolgoi deposit. This 450MW thermal plant is aimed to supply electricity to mega construction projects and programs and contribute the central energy grid to a certain extent. Energy and Finance Ministers said that 30 percent of the total required funding will be provided through owning shares in the Erdenes Tavantolgoi JSC, while the rest will be funded with loans and assistance. A water supply is of problems in constructing a thermal power plant. Therefore, the PM obliged to resolve this matter together with construction of the coal concentrator. Moreover, Prime Minister Oyun-Erdene got acquainted with the mid-term business plan of the Erdenes Tavantolgoi JSC. According to the plan, the company has set a goal to perform up to 60 percent of its mining capacity /209 million m3 of soil, 50 million tons of coal/ with its machinery and equipment in 2021-2025. In addition, it plans to mine 186 million tons of coal and sell 172 million tons; thus it will earn USD10,742.4 million, including USD3,664.4 million net profit, and pay USD2,482.1 million to the state budget.