A new report from the Oxford Business Group suggests Mongolia’s cement industry is moving towards self-sufficiency.
A refurbished 1 million tpa cement plant began production in May in the Khutul district of Selenge Province after a 1.5-year long period of modernisation during which the outdated technology was replaced with a modern dry process system. The plant will produce around half of Mongolia’s annual cement consumption. Prior to this, cement production in the country amounted to about 240 000 tpa and the shortfall was met by imports, largely from China, though at times supply has been limited by China’s own demand, restricting Mongolia’s growth.
Now, the Oxford Business Group reports that a US$65 million loan from the EBRD for Mongolian firm Senj Sant will fund the construction, commissioning and operation of a new dry process cement plant. The new plant will be located in the Dornogobi Province in southern Mongolia and will add a further 1 million t of cement capacity to the market – supplying, in particular, the major mining projects in the country.
As both the public and private sectors roll out construction projects and the mining sector booms, cement demand is expected to rise significantly. This will have a knock-on effect on the raw materials and coal mining sectors, which will be required to support the domestic cement industry. According to the Oxford Business Group, at least two other cement plants are in the works, with production planned for next year. It could be that supply will be chasing demand, which is predicted to increase – potentially to 3 million tpa by as early as 2015.
Edited from source by Katherine Guenioui
Published on 20/06/2014