Ulaanbaatar,
April 8, 2026 /MONTSAME/. The
government will invite leading steel-producing countries, major enterprises,
and investors to participate in the Steel Complex Project, sending out bidding
documents and organizing the selection process by the 27th of next month.
The
project involves the construction of a steel production complex with an annual
capacity of at least one million tons in Orkhon soum of Darkhan-Uul aimag, to
be developed under an industrial and technology park model. According to the
preliminary feasibility study, total investment is estimated at USD 806
million.
As
of the end of 2025, Mongolia imported one million tons of steel products worth
USD 911 million, with demand projected to reach USD 1.6 billion by 2030. Once
operational, the steel complex is expected to improve the balance of payments
by approximately USD 350–400 million and reduce construction costs by around 10
percent.
During
the Cabinet session on April 8, 2026, officials noted that Mongolia currently
lacks enterprises with experience in building and operating large-scale steel
plants using iron ore-based technology. The limited availability of specialized
engineers and experts poses challenges to implementing the project domestically
and increases potential technological and financial risks.
Therefore,
the government considers it appropriate to implement the project in partnership
with experienced international entities possessing capital, technology, and
market access in the steel industry.
“Mongolia
will have a steel plant capable of meeting at least 60–70 percent of its
domestic demand. Once operational, the plant is expected to halve cement costs,
reduce prices of key construction materials, lower import dependence, and
create around 1,700 permanent jobs,” said Minister of Industry and Mineral Resources Damdinnyam Gongor.
