Source: Montsame                        Date: 27 April, 2011

The Government has approved an agreement under the Concession Law between the State Property Committee and New Asia Mining Group LLC to build a power plant based on coal from the Mogoin Gol mine. Concerned Ministries will now prepare the papers to grant the permission. The Governors of Zavkhan and Khuvsgul provinces have been asked to give land for the power plant, and to raise the capacity of the mine so that the plant has enough coal.

According to the agreement New Asia Mining will spend USD110 million to build a plant with capacity to produce 60 mw of power. The plant should be ready in two years and its ownership will vest in the state after 20 years of operation, when the term of the concession agreement ends. New Asia Mining will run the plant in these 20 years and take all the profit. The power generated will be used by people in Zavkhan and Gobi-Altai provinces. Some of them would also get jobs at the plant and acquire experience.