The Government yesterday decided to set up an oil refinery in Choibalsan
of Dornod aimag. Minister for Mineral Resources and Energy D.Zorigt and Chief
of the State Property Committee D. Sugar have been asked to arrange for a
partner company to own shares along with the state, and to prepare the rules
and regulations under which the joint venture will work. The refinery will be
called Dornod Oil LLC.

Several proposals have been received to set up a refinery but the only
ones to meet international standards are the following, with capacity in
brackets: Darkhan (2 million tons), Rashaant Urtuu (300,000 tons), Dornod province
(120,000 tons), Zuunbayan in Dornogobi (330,000 tons), and another also in
Zuunbayan (50,000 tons).  The cost ranges
from USD28 million to USD600 million and it would take between 1.5 years and 4
years to finish construction. Around 1,000 working places would be created.