President Ts.Elbegdorj went to Umnugobi aimag on Thursday to inspect progress at the Tavantolgoi and Oyutolgoi mining projects.

The president’s team visited Tavantolgoi LLC and Erdenes Tavantolgoi LLC, which has mined coal at Tavantolgoi since last August. Mineral Resources and Energy Minister D.Zorigt said the company hopes to mine 20 million tons of coal annually by 2014. Managing officials of the companies said infrastructure issues are significant, such as the need for roads and electricity. Energy Resource LLC built a 140-km road in 2011, but its capacity for heavy trucks is insufficient.

After visiting Tavantolgoi, Ts.Elbegdorj inspected the Ukhaa Khudag coal mining project of Energy Resource LLC. The company has built two coal processing factories. Energy Resource LLC Executive Director G.Battsengel and MCS Group Director J.Odjargal said the company has suggested the Government conclude an agreement of stability in accordance with the law on mineral resources. Energy Resource has invested USD 600 million in the Ukhaa khudag project. It is planning to increase investment and to export processed coal. The officials stated that a railroad is needed. If the Government will invest in construction, it could own 51 percent.

On Friday, the president is visiting Tsogttsetsii soum to study the work of Oyutolgoi LLC and to meet local residents.