Mongolia investing nearly $1 billion to develop downstream capabilities

Oyundelger 2017-03-13 08:03

Mining

The proposed refinery, to be located in the Sainshandsoum (district) in the province of Dornogovi, will have a yearly processing capacity of 1.5m tonnes.

Mongolia investing nearly $1 billion to develop downstream capabilities. The proposed refinery, to be located in the Sainshandsoum (district) in the province of Dornogovi, will have a yearly processing capacity of 1.5m tonnes. Its output is projected to comprise 560,000 tonnes of petrol, 670,000 tonnes of diesel and 107,000 tonnes of liquefied natural gas.This should meet all of Mongolia’s petrol and diesel needs for the immediate future, with a heavy emphasis on diesel production reflecting a reliance on heavy-duty vehicles, particularly in the extraction sector, which accounts for close to 20 percent of GDP and more than 80 percent of exports.In late December, the government announced it was seeking approval from the Import-Export Bank of India to utilize a $1 billion loan for the construction of the refinery and associated infrastructure.In addition to saving as much as $1 billion a year in import costs, the new refinery could help boost Mongolia’s GDP by 10 percent, according to statements from the Cabinet. Initial projections put the facility’s turnover at $1.2 billion per year, with extra tax revenues and net profits expected to reach $150m and $43m per year, respectively.