T. Namjim, Director of
Mongolsekiyu, the company that has signed an agreement with two Japanese
companies, Marubeni and Toyo Engineering, to set up an oil refinery in Darkhan,
said oil has a strategic role in every country’s economy and it is very
important to make sure that production and processing of oil in the
country should remain as much as possible in the hands of national companies.
Foreign control of the sector will be against Mongolian national interest.
Apart from the fact that 90% of the money spent by Mongolian consumers to buy
petrol will go to a foreign company, national security will also be endangered.
He felt steps should be taken early to declare the Darkhan refinery project as
one of national importance.

Namjim
felt the current fuel consumption per year is about 850,000 tons but once
mining expands, industries come up and infrastructure is developed, this will
reach more than 1.5 million tons by 2015 and keep growing thereafter. The
refinery should thus have a capacity to produce two million tons per year.
Construction work would begin next year. It will save the country MNT700
billion now spent on importing oil, and should recoup costs in four years.