During discussions on Tuesday, some members of the Standing Committee on the Economy threatened the Minister for Minerals and Energy with dismissal if no concrete action is taken by June 1 to set up a copper smelter. “There has been so much talk; now we need to see something happening on the ground,” they said as the Committee voted with an overwhelming majority for a proposal seeking a Parliament resolution favoring a smelter to be established.

USD500 million is needed to build a smelter with a 130,000-ton capacity. A smaller one can also be considered, the MPs said. Two sites were favored, one at the Erdenet complex, and the other in Sainshand. In the case of the latter, the copper ore will have be transported from Erdenet, adding to costs. Since Erdenet is a joint venture with Russia, ownership of the smelter has to be sorted out if it is built there. 

The Committee has tasked the Government with resolving the issue and submit its decision to Parliament for approval.