Mongolia to produce steel Featured

The Industry and Agriculture Ministry informed on establishment of the Sainshand Industrial Complex.

Under a policy developed by the Ministry and a resolution by the State Great Khural (parliament), the Sainshand Industrial Complex project is continuing on stage of feasibility studies.

The Sainshand Industrial is planned to include a coal chemical plant, together with a steel and metallurgical factory. The plants are aimed at increased production of value-added products, which will help diversify the economy and make a positive impact on the social and economic development of the country.

By 2050, a global steel use is projected to increase 0.5 to 2 times that of present levels, to meet the needs of our growing global population. The world steel consumption is forecast to grow up to 1 billion tonnes by 2030, while China’s steel demand is expected to increase 250 million tonnes by that time. Thus, once established the steel plant, Mongolia has a great opportunity to become a steel exporting country.

National production of iron ore, a main raw material in steel manufacturing, is also expected to grow in upcoming years, a study shows. The iron ore can be supplied from Tomortein deposit with proven reserves of 230 MT Bayangol deposit with reserves of 180 MT and Kharanga 229 MT to the Shainshand steel plant.

The Sainshand Industrial Complex will be located between Oyu Tolgoi, Tavan Tolgoi and the oil fields located in eastern provinces. It will be positioned on an operating railway and on the cross-country highway networks. Sainshand city has high labor potential and the province is rich in construction materials.

Source – Montsame.gov.mn. Montsame is Mongolian government owned news agency