Khusuut coal mine has been added to the strategic deposits lists.
The Minister of Mining Industry, D.Gankhuyag, raised the issue of Khushuut coal mine, located in Darvi sum in Khovd aimag, on 17th November during the Government meeting.

Local residents have urged the Government and authorities to classify the coal mine as a strategic deposit. Mineral resource law states that “strategic deposit include deposits which weigh on National Security, economic and social development in the country and region, or potentially can produce more than 5 percent of GDP”.

Production at Khushuut has not started but test shipments to the border point began in late 2011. With the valuation the MEC analyst estimated the production would begin in 2013, or 1 year from now, at the target rate of 3MTA. The MEC estimated an optimistic ramp up schedule of reaching the 8MTA maximum three years after production begins. MEC plan to pay 7.3 billion MNT for royalties or 4.3 percent this is likely to increase to 5 percent in the future. Khushuut had the potential to be classified as a strategic deposit because of its product range and capacity.

Parliament submitted an amendment to 27th decree by developing a draft to classify Khushuut as a strategic deposit. Parliament also ordered the Government to discuss the issue in their meeting.