Sinosteel, the state owned company of China, operates in Australia, Cameroon, South Africa, Zimbabwe, Indonesia and Philippines in iron ore and nickel ore. During the meeting, Mr. O.Odbayar, Vice President in charge of Strategy and Planning at the Erdenes Mongol LLC, introduced the company’s activities and highlighted the opportunity to cooperate in coking coal and steel production.

Sinosteel expressed their willingness to cooperate with Erdenes Steel LC, established jointly with Beren Group in steel production to meet the growing demand for steel and produce import substitute products in Mongolia. Specifically, the company is interested in improving the feasibility study of the Coke and Steel plant to be established by Erdenes Steel. The Independent Director of ‘Sinosteel’ Yiguang Hu said “Mongolia has a full potential to develop steel production based on its rich iron and coking coal reserves.”

China, the world's largest consumer and manufacturer of steel, is shutting small steel factories under its strict policy of environmental protection. The country is interested in investing in steel production projects and programs in neighboring and other countries and exporting finished products. For the last two years, Erdenes Mongol LLC has been working actively in development of steel production in Mongolia.

In addition, Mr. Yiguang Hu noted that China’s policy on environment protection is in line with the US and European policies.

B.Misheel