Prime Minister Uchral Nyam-Osor inspected the progress of the USD 772 million copper concentrate smelting and processing plant project to be built based on the "Erdenet Mining Corporation" SOE, instructing officials to accelerate construction and finalize contract negotiations within November.

The project is being implemented in the form of an industrial and technological park as part of Mongolia's objective to process copper concentrate domestically rather than exporting it raw, produce value-added products, and diversify its economy.

Upon commissioning, the plant will be capable of processing 560,000 tonnes of copper concentrate annually and producing 124,000 tonnes of cathode copper. The project's feasibility study, detailed environmental impact assessment, and relevant technological documents have been approved. Financing of USD 68 million has been invested in the infrastructure of the industrial and technological park, with the first phase already received and full completion targeted for 2027.

Out of 55 companies from over 20 countries that expressed interest in investing and cooperating, 13 companies from 7 countries submitted proposals. China's NFC was selected as the strategic investor, and negotiations regarding financing, equity, and construction contracts are currently underway.

Prime Minister issued directives in four areas to accelerate project implementation:

Intensifying negotiations with the investor to increase the economic benefits accruing to Mongolia and clarify the investor's duties and responsibilities, followed by finalizing the draft contract for presentation to a cabinet meeting.

Creating conditions to utilize sulfuric acid produced by the plant in domestic industries, primarily supplying it on a priority basis to the Zuuvch-Ovoo project of the Mongolian-French joint venture "Badrakh Energy" LLC and other projects.

Having the cabinet resolve to transfer the operating license for the "Erdenet" industrial and technological park in the territory of Bayan-Undur and Jargalant soums of Orkhon aimag to the "Erdenet Mining Corporation" SOE.

Resolving exploration licenses for commonly distributed minerals and limestone required to neutralize sulfuric acid for the plant's construction.

Furthermore, instructions were given to promptly resolve legal, regulatory, and infrastructure issues related to the operation of the industrial and technological park and to finalize the construction plan.

Commissioning the plant will not only allow for the domestic processing of copper concentrate and increase the added value of export products but will also foster the development of ancillary industries, create jobs, and enhance the competitiveness of the industrial sector.

Published Date:2026-10-12