Mongolia’s Sainshand Industrial Complex to receive 14.1 billion MNT in financing from the Development Bank
Tuesday, March 5th, 2013
The Development Bank has agreed to finance the 14.1 billion MNT necessary to conduct an environmental evaluation of the location, plans, and counselling and advisory services for the Sainshand Industrial Complex project. The project involves establishing a modern industrial complex, including a copper refinery factory, as well as construction material and coal-chemistry factories.
At Saturday’s government meeting, the Minister of Agriculture and Industry, Kh.Battulga was given the task of establishing the Sainshand Industrial Complex LLC and overseeing the completion of the Sainshand Industrial Complex project. Minister Battulga was also asked to research the necessary changes to the project’s legal framework to ensure the government’s 34 percent stake in the project. The remaining shares will be held by the national private sector.
The Prime Minister emphasized that the initial financing of the project will be closely monitored, especially as it is the first industrial complex to include factories that process open pit mine excavations.
The government has included the construction and operation of Sainshand Industrial Complex in its upcoming four year plan as well as in the short term plans of the Ministry of Agriculture and Industry.
Early estimates suggested that the complex will cost around 9.3 billion USD to build. The construction of the complex is expected to create nearly 10,000 jobs, and the fully operational facility will require around 2,400 workers. Developers expect that the complex will have the capacity to produce 4.5 million tons of steel, 2 million tons of coking coal, 1 million tons of cement, and 450,000 tons of cathode copper per year.
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For a map / layout of the Sainshand Industrial Park in Mongolia: