• Ministry
  • Agency
  • Province
  • Contact
  • English English English en
 Mongolian
cabinet.gov.mn
  • home page
  • About us
    • Director’s Message
    • Chief
    • Main goals
    • Organization structure
    • Historical path
    • Legal Environment
  • News
  • Activities
    • HUMAN RESOURCES
  • Search
  • Menu Menu
Featured news, News, Чухал мэдээ

The Prime Minister emphasizes that the Dharkan Metallurgical Plant should serve as the cornerstone of steel production

During his visit to Darkhan-Uul province, Prime Minister L. Oyun-Erdene inspected the operations of the Darkhan Metallurgical Plant. Established in 1990 using iron ore deposits from the Darkhan-Seleng region, the plant saw the economic activation of the Tumurtolgoi iron ore deposit in 2010, leading to the establishment of an open-pit mine.

In 2014, QSC LLC entered into a concession agreement with the Ministry of Economy and Development for a mining and metallurgical complex project. However, on April 13, 2022, the government, through Resolution 148, canceled the agreement due to the company’s failure to meet its obligations.

The Darkhan Metallurgical Plant annually produces 100,000 tons of steel products and 2.5 million tons of iron ore concentrate, supplying both domestic and international markets.

However, during the implementation of the concession agreement for the mining and metallurgical complex construction, the production process faced disruptions. This was due to the concessionaires’ failure to maintain the plant’s technology and machinery, as well as discontinuing the procurement of spare parts and inventory.

Following a government decision, the plant was returned to state ownership and underwent management reforms. G. Dugarjav, the executive director of the Darkhan Metallurgical Plant, reported a loss of 9.6 billion MNT in April 2022 but achieved a net profit of 17.3 billion MNT in 2023. In the same year, the plant contributed 15.2 billion MNT to the state budget and 13 billion MNT to the Darkhan-Uul Province budget.

Prime Minister L. Oyun-Erdene has directed the Minister of Finance to address the damages incurred by the plant due to QSC. He underscored the significance of the Darkhan Metallurgical Plant becoming the cornerstone of steel production in the nation. Additionally, he has instructed relevant officials to enhance the plant’s capacity to meet domestic market demands.

There is a plan to construct a steel processing complex centered around the Darkhan Metallurgical Plant in three phases, with the goal of having it operational by 2027. Based on an analysis of the demand and supply of steel products, Mongolia’s annual demand in 2023 stands at approximately 500-600 thousand tons, with projections indicating that this figure will surpass one million tons by 2027.

2023-09-14/0 Comments/by cabinetAdmin
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on Pinterest
  • Share by Mail
https://cabinet.gov.mn/en/wp-content/uploads/AUUwBWmTp5ZoIpSPlHNc.jpg 1066 1600 cabinetAdmin https://cabinet.gov.mn/wp-content/uploads/logo.png cabinetAdmin2023-09-14 14:33:512024-03-28 10:06:04The Prime Minister emphasizes that the Dharkan Metallurgical Plant should serve as the cornerstone of steel production

LATEST NEWS

  • Mongolia Explores Renewable Energy Collaborations at World Economic Forum in Davos2025-01-23 - 09:12
  • Deputy Prime Minister T. Dorjkhand Participates in the 55th World Economic Forum in Davos2025-01-21 - 09:45
  • Government of Mongolia signs a collaboration with the World Economic Forum to develop a Strategic Intelligence Platform2025-01-21 - 09:15
  • Prime Minister L. Oyun-Erdene Reviews Belt Road-1 Project to Enhance Ulaanbaatar’s Infrastructure2025-01-18 - 09:48
  • L. Oyun-Erdene: “Today Marks a Historic Day in Mongolian-French Relations”2025-01-17 - 09:50
  • THE CABINET SECRETARIAT OF THE GOVERNMENT OF MONGOLIA WILL COOPERATE WITH THE MINISTRY OF INTERIOR AND SAFETY OF THE REPUBLIC OF KOREA DIGITALIZE GOVERNMENT PROCESSES AND ENHANCE PRODUCTIVITY2024-09-23 - 07:25
  • Prime Minister Urges Cabinet to Accelerate Implementation of Key Projects in Government’s Action Plan2024-09-11 - 08:35
  • Welcoming Ceremony for Chinese Vice President Han Zheng Held at Sukhbaatar Square2024-09-07 - 08:41
  • Prime Minister Proposes Strengthening Infrastructure and Energy Projects, and Establishing a Water Port at Buir Lake2024-09-07 - 08:39
  • Han Zheng, Vice President of China will visit Mongolia2024-09-03 - 08:50

Contact

  • State House, Sukhbaatar Square-1,Sukhbaatar district 6th khoroo 14201, Ulaanbaatar city, Mongolia
  • (976-51) 260311, (976-51) 260124
  • info@cabinet.gov.mn

Location

Consumer

  • 82
  • 540
  • 20,857
  • 70,879
  • 1,626,582
Cabinet Secretariat of Government of Mongolia © 2025
  • Facebook
  • Twitter
  • Youtube
Prime Minister L. Oyun-Erdene attends the inauguration of the Center for the... The Prime Minister reviewed the construction process of the Arkhangai General...
Scroll to top