The Cabinet has formally approved a decision to place the Oil Refinery under construction in Altanshiree soum, Dornogobi aimag, under the protection of the Internal Troops, and instructed Amar­sai­khan Sainbuyan, Minister of Justice and Internal Affairs, to implement the decision.

The Internal Troops will protect not only the refinery site but also water supply facilities and the oil pipeline complex.

The Cabinet also decided to develop the Oil Refinery as an industrial and technology park and instructed Damdinnyam Gongor, Minister of Industry and Mineral Resources, and other relevant officials to ensure implementation.

During Prime Minister Uchral Nyam-Osor’s visit to the refinery construction site, the project management outlined several challenges, including the risk of delays and funding disruptions due to property and land taxes, as well as the daily accumulation of tax liabilities.

Developing the refinery as an industrial and technology park will make it eligible for several tax and customs benefits. These include exemption from land fees for the first 10 years and property taxes for the first five years, as well as the possibility of extending payment periods for customs duties and value-added tax on imported goods, materials, and equipment that cannot be sourced domestically for up to four years. Foreign employees will also be exempt from workplace fees.

In addition, the technical and technological level of the industrial and technology park unit will be reviewed promptly by the Sectoral Council for Heavy Industry Technology Level Assessment. The authorities will then proceed in stages with evaluating the development plan and feasibility study, designating the land for special state use, and issuing the permit to operate as an industrial and technology park.

Published Date:2026-08-19