MONGOLIA’S FIRST METALLURGY PROCESSING PLANT WOULD BE OPERATIONAL BY 2016

Mongolia is exporting nearly all excavated minerals due to absence of metallurgy processing plant in its territory; thereby in order to seize the export flow of iron ore and work more profitable producing end-products locally, Mongolian Metallurgy Manufacturer Union, which was formed recently in the midst of this month, has decided to implement a project to build its own plant in Mongolia.
Though, a feasibility study for steel works to be constructed in Sainshand was made by “Bold Tumur Yeruu Gol” LLC and the Union agreed to start the project purposed to supply domestic demands.
In order to implement the project, ‘Bold Tumur Yeruu Gol” LLC, “Erdes Holding” LLC, “Beren” LLC, “Mongol Metal Mining” LLC and “Mcnlaa” LLC have been united forming the “Mongol Gan Negdel” Company. Following the Company’s decision to allocate its particular share to state, the Government of Mongolia revised and agreed to collaborate, consequently a metallurgy processing plant would be operational by 2016.
Mongolia’s National Security Council rejected a development deal struck with US giant Peabody Energy, Shenhua and a Russian-Mongolian consortium mid-September 2011, just two months after they were announced as winners.