The Ministry of Mineral Resources and Energy today signed a memorandum of understanding with Kobe Steel Group of Japan to build a steel plant using iron ore to be processed in the Darkhan Ferrous Metals Factory using a new technology. The Chief of the Mining and Heavy Industry Section at the Ministry, B.Batkhuu, and the General Manager of the Japanese Group, Naoto Susuki, signed the memorandum.

The Ministry wants the proposed plant to export value added products and to reduce the export of iron ore. The Japanese group will transfer technology that is exclusively used by it.