The Government meeting yesterday approved a concession agreement between the State Property Committee and New Asia Mining Group LLC to build a power plant  based on coal from the Mogoin Gol mine. Concerned Ministries will now prepare the papers to grant the permission. The Governors of Zavkhan and Khuvsgul aimags have been asked to give land for the power plant, and to raise the capacity of the mine so that the plant has enough coal.

According to the agreement New Asia Mining will spend USD110 million to build a plant with capacity to produce 60 mw of power. The plant should be ready in two years and its ownership will vest in the state after 20 years of operation, when the term of the concession agreement ends.

The power generated will be used by people in Zavkhan and Gobi-Altai aimags. Some of them would also get jobs at the plant and acquire experience.