The Deputy Chief of the Energy
Policy Board of the Ministry of Mineral Resources and Energy, D.Purevbayar, has
told the Mongolian Mining Journal that Oyutolgoi LLC and Erdenes Tavantolgoi
LLC have signed a memorandum of cooperation to build a thermal power station to
provide energy in the Gobi region, as the Ministry has recommended. The station
would have a capacity of 600 MW.

Foreign advisors have conducted
studies to determine whether the plant should be built in Tavantolgoi or
Oyutolgoi. According to one report, a station built in Tavantolgoi would open
some four years before one built in Oyutolgoi. However, if the plant is built
in Tavantolgoi, Oyutolgoi LLC could still be connected to the energy system.

The Ministry has indicated that
it prefers the Tavantolgoi site, but the Government has yet to officially
decide where the plant will be built.