Tavantolgoi Deposit's First Project for a 30 Million Ton Coal Enrichment Plant Commences

2024-06-21 17:55:09

Ulaanbaatar, June 21, 2024 /MONTSAME/. "Erdenes Tavantolgoi" JSC has inaugurated a coal enrichment plant with an annual capacity of 10 million tons.

The opening of the plant's initial production, testing, and adjustment phase was attended by Deputy Minister of Mining and Heavy Industry of Mongolia Uyanga Bold, CEO of "Erdenes Mongol" Group S. Narantsogt, Deputy Head of the Cabinet Secretariat and Chairman of the Board of Directors of Erdenes Tavantolgoi Joint Stock Company (JSC)  U. Byambasuren, Acting Director of "Norinco International Cooperation" Corporation Yan Xiao Qing, and Acting CEO of Erdenes Tavan Tolgoi JSC Kh. Munkhjargal. The ceremony marked the start of the plant’s initial enrichment operations.

Erdenes Tavantolgoi (JSC) is implementing 10 major strategic Projects. One of these Projects is the coal enrichment plant. Initiated in 2022, the project has now completed its first phase with the establishment of a plant capable of enriching 10 million tons of coal annually.

To develop the mining sector, produce value-added products, and support economic growth, the Parliament and Government have enacted resolutions to implement a Coal Enrichment Plant Project at the Tavantolgoi Deposit in two phases, with a total capacity of 30 million tons per year.

Once fully operational, Erdenes Tavantolgoi JSC expects to produce and sell an average of 24 million tons of products annually, generating USD 1.9 billion in sales revenue and achieving a net profit of USD 197.3 million. Consequently, USD 185.8 million in taxes will be contributed to the state and local budgets.

Furthermore, the Project is expected to support socio-economic growth at both national and regional levels by creating up to 928 new jobs. The Project will contribute an average of USD 185.8 million annually to state and local budgets, optimize resource utilization with minimal waste, increase exports, meet product quality requirements more effectively, reduce environmental impacts, and significantly enhance the production volume and efficiency of value-added products.

Total Project investment is USD 1 billion, with approximately USD 300 million already financed. The coal enrichment plant features advanced, environmentally friendly, and efficient technology from leading brands in the Asia-Pacific region.

The general contractor for the Project is the "Norinco Dadi" Partnership and the Dadi Engineering Development Group from China, with oversight from engineers of the Ministry of Mining and Heavy Industry of Mongolia and Erdenes Tavantolgoi JSC.

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