At its regular meeting on December 26, the Cabinet supported the agreement with Rio Tinto to construct 300 MW power plant in Tavan Tolgoi. Minister of Energy Ts.Davaasuren gave briefing in this regard.

“The Cabinet held negotiations with Rio Tinto on the construction of a power plant in Tavan Tolgoi to supply Oyu Tolgoi deposit. In this regard, a draft agreement on the power plant construction was developed and presented at the Cabinet meeting. According to the draft agreement, it is planned to start the construction in March 2020 and commence the power plant in June 2023. As a result, Mongolia has made a historic decision to supply the major deposits in the south region such as Tavan Tolgoi and Oyu Tolgoi with energy,” said Minister Ts.Davaasuren.

The development of agreement on financing, feasibility study and environmental assessment will start off soon. Currently, Oyu Tolgoi LLC annually purchases 100 MW electricity from China at USD 160-170 million. The provision of the Investment Agreement on procurement of certain amount of its energy consumption from Mongolia will take effect next year. It is expected to provide 20 percent primarily. With the commencement of the power plant in 2023, it will be able to fully provide the energy consumption of Oyu Tolgoi and retain the amount of money at home.

Source: Montsame.mn