Oyu Tolgoi project to be supplied power from power grid of Mongolia www.montsame.mn
At the regular meeting of the Cabinet today on January 26, Minister of Energy N.Tavinbekh was tasked to carry out the corresponding works to establish a power supply agreement with Oyu Tolgoi LLC.
As the draft of the agreement on supplying power for Oyu Tolgoi’s mining operations from the country’s central power grid has been completed, the Government has given the green light for the agreement to be signed. In connection, the two sides will be holding a meeting at the Ministry of Energy today.
Currently, the mining company imports an average of 170 MW or 1.3 billion kWh of electricity from China each year. By sourcing their power domestically through the agreement, it becomes possible to keep the funds in the country. This will serve as significant support for the financing of the project on constructing the Tavantolgoi thermal power plant, the Minister highlighted.
Minister of Energy N.Tavinbekh said, “The agreement will be established for 20 years, with a minimum of USD 120 million worth of power to be supplied annually. In order to supply electricity to Oyu Tolgoi, certain preparations are needed such as establishing a power plant at Tavantolgoi. The power plant’s construction will take four years at the very minimum. However, with the plant’s first block put into operation from 2024, it will become possible to supply power for the Oyu Tolgoi project.”
Until preparations are completed by the side of Mongolia, the mining company will continue to source its power from Inner Mongolia Power International Cooperation Company of China.
Published Date:2022-01-26