Prime Minister S.Batbold announced
after watching the exploration work of the 100% Chinese company Donshen in the
Gobi that Mongolia’s first oil refinery will be ready by 2014. Donshen has a
product sharing agreement with the Government and hopes to begin oil extraction
before the end of this year. Exploration results so far indicate there is
enough oil for the fields to be operated for 30 years.

The oil refinery is planned to be built in the Sainshand industrial complex and
10 companies have already expressed their interest in taking up the work. The
Prime Minister said Mongolia has enough oil reserves to be self-sufficient and
once refineries start processing the crude for domestic use, the country will
leave behind its traditional 100% dependence on import.