ERDENES TAVANTOLGOI JSC OPENS COAL CONCENTRATION PLANT WITH ANNUAL CAPACITY OF 10 MILLION TONS

T.Byambanaran, P.Jargalsuren

Erdenes Tavantolgoi JSC is implementing 10 major projects of strategic importance. One of these projects, the Coal Concentration Plant project, was launched in 2022, and today, the first stage of the project—a plant with a capacity of 10 million tons of coal per year—has been put into operation.

To develop the mining industry, create value-added product production, and support economic growth, Parliament and the Government of Mongolia have resolved to implement the Coal Concentration Plant project, which will have the capacity to process 30 million tons of coal per year based on the Tavantolgoi deposit. This project will be executed in two stages.

When the coal concentration plant is fully operational, Erdenes Tavantolgoi JSC will produce and sell an average of 24 million tons of products per year, earn 1.9 billion USD in sales revenue, and make a net profit of 197.3 million USD. Additionally, the government will collect a total of 185.8 million USD in taxes and other payments to state and local budgets.

The implementation of the project is expected to create between 472 and 928 new jobs, significantly bolstering the socio-economic growth of both the country and the region. Furthermore, it is anticipated to contribute an average of 185.8 million USD annually to the national and local budgets and facilitate more efficient and comprehensive utilization of deposit resources, thereby minimizing waste and enhancing export levels. Additionally, the project aims to adhere to strict quality standards, minimize environmental impact, increase production volume of value-added products, and enhance plant efficiency.

The total funding for the project is 1 trillion MNT, with approximately 796 billion MNT already financed. The coal concentration plant features cutting-edge technology and equipment sourced from leading brands in the Asia-Pacific region, known for their environmentally friendly and efficient technologies.

China's DADI Engineering Development Group has partnered with Norinco International Cooperation Ltd as the main contractor for the project. Supervision was carried out by engineers from the Ministry of Mining and Heavy Industry and Erdenes Tavantolgoi JSC, ensuring that the project meets all necessary standards and regulations.