Sinopec Limited to enter Mongolia’s mining sector


Sinopec Limited, also known as the China Petroleum and Chemical Corporation has signed a memorandum of understanding (MoU) with the Ministry of Mining to build a brown coal gasification plant in Mongolia. Once the plant launches operations, Mongolia will not only be able to produce enough gas fuel to meet domestic demands, but also to export it.
The plant will have the capacity to produce 15 billion metric tons of gas fuel per year according to preliminary estimates. In order to produce the target amount of gas fuel, approximately 50 million tons of brown coal will be required, at the estimated cost of one billion USD.
Although Mongolia has abundant reserves of raw brown coal, its potential for export is limited due to its low calorific content. The gasification plant will produce environmentally friendly gas fuel, that doesn’t produce waste, using common brown coal which contributes very little to Mongolia’s export.
If Mongolia starts exporting gas fuel, it will help reduce the country’s foreign trade deficit and contribute to the state budget.

Short URL: http://ubpost.mongolnews.mn/?p=6581

Posted by on Oct 30 2013. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

Comments are closed

Recently Commented

  • Oyun: www.theblueeconomy.org
  • Honheree: It is a sad and awful sight to see so many animals dead from dzuds. These have happened in the past and since 2004 there have...
  • Harvey Dent: Mongolia does not get 476,000 tourists a year. Its gets 476,000 arrivals, most of these are Chinese construction workers....
  • Honheree: It is good but unusual that a Mongolian is so forthright. I am D. Ganbold will be criticised by Mongolians for telling the...
  • Honheree: Be thankful Mongolia is so cheap. In USA lamb in stores costs 69,281 MNT /kg and sirloin which is cheaper cut of beef is...