The “Zes Erdeniin Khuvi” stock company plans to establish a copper plant which will use oxydized copper ore from the Erdenet Ovoo deposit. On 2nd March, an initial part of this huge construction project was taken when an investment and co-operation contract was made.
According to the contract; construction work will begin in May 2016. The plant will have an annual projected production capacity of 5000 tons of cathode copper. Also known as copper grade “A” (LME designation), cathode copper is of 99.95% purity and is an important export commodity. Total project investment will be USD 45 million.
The Ferrostaal Group of the Germany has being appointed as the general contractor of the project; Finland’s Outotec will be responsible for equipment procurement.
The cathode-copper plant is forecast to fully recoup the investment within 4 years following launch of production. The plant will provide a total of 140,000 new jobs and shares will be available to 40,000 stockholders. It is forecast that MNT 7.084 billion will be generated in tax revenue annually.