Erdenes Tavan Tolgoi to cover 30% of new power plant costs

State-owned miner Erdenes Tavan Tolgoi JSC will fund 30 percent of the new Tavan Tolgoi power plant through equity investment, reported the Ministry of Energy and Ministry of Finance.

The remaining funds will be secured through loans and grants.

The new power plant with a capacity of 450 megawatts will provide power to large development projects in the region and increase electricity supplies to the centralized power grid.

The ministries assessed that water supply would become a major challenge for the establishment of the new power plant. The prime minister has instructed project implementors to resolve this issue as soon as possible.

Erdenes Tavan Tolgoi plans to produce 186 million tons of coal and sell 172 million tons this year to earn revenue of 10.74 billion USD. Net profit is estimated to reach 3.66 billion USD, with 2.48 billion USD projected to the state budget.