South Gobi Sands LLC, which operates the Ovoot Tolgoi mining project in Umnugobi aimag, says a new coal-processing factory is now up and running.

The factory has capacity to process nine million tons of coal annually. Machines reduce pieces of coal to 50 mm in size and reduce its sulfur content.

The company now plans to start work on a conveyer. It mined 4.57 million tons of coal in 2011, and sold an average ton for USD 54.

This is the company’s first coal-processing factory. It was built at a cost of approximately USD 45 million.