Last week, a 34.5 km railroad from Bold Tumur Eruu Gol’s Tumurtei mine to Khandgait Station was commissioned. Prior to the opening of the new railroad, the company had been transporting their ore by truck along a 20 km road to be transferred to a train car.
In 2011, the company exported 98,000 tons of iron ore. At that time, the price of iron ore stood at 137 USD per ton, while the price has since dropped to 36 USD per ton in the global market. The company underlined that despite Mongolia’s economic crisis delaying the company’s development, it has now moved forward to complete this project. Company representatives said that a construction team from Ulaanbaatar Railway completed earthwork for the railroad within one year, and they finished railroad construction in three months.
The Tumurtei deposit, located in Selenge Province, has an estimated 230 million tons of reserves, and is considered the country’s only strategic iron deposit. Its special license is owned by the Darkhan Metallurgical Plant. Darkhan Metallurgical Plant is planning to export six million tons of iron ore per year, while Bold Tumur aims to sell eight tons of iron ore annually. Mongolia’s total iron ore reserves are estimated to be two billion tons, 600 million of which are approved reserves, and 450 million of which are approved in the Darkhan and Selenge regions. The Tumurtei, Khust-uul, Bayangol, and Tumur Tolgoi deposits are located in two soums of Selenge Province covering an area of 30 to 40 km. Representatives from the metallurgical sector underlined that putting these deposits into economic circulation will bring about economic efficiency before the completion of the Tavan Tolgoi or Sainshand industrial complexes.