Oyu Tolgoi mine starts sourcing power domestically
Ulaanbaatar/MONTSAME/. Mongolia starts supplying power to Oyu Tolgoi copper-gold mine. Specifically, ‘Southern regional electricity distribution network’ state-owned company and Oyu Tolgoi LLC today has established a power supply agreement. As a result, the Oyu Tolgoi mine which receives electricity from abroad will be supplied power domestically and the outflow of foreign currency will remain at home, which will bring a positive effect on the Mongolian economy and domectic supply of electricity will gradually increase.
Minister of Energy N. Tavinbekh emphasized it during the signing ceremony, which was also attended by Chief Executive Officer of Oyu Tolgoi Mr. Armando Torres and other officials. Minister N.Tavinbekh said, “Since 2008, Mongolia’s Parliament and Government have been implementing step by step measures to exploit strategically important minerals deposits in Southern Gobi, put them into economic circulation and supply them with power. According to the agreement signed today, Oyu Tolgoi mine will officially start receiving power from Mongolia, which is also believed to have a positive effect on the country’s economy.” Mr. Armando Torres said, “The signing of this agreement is very important event for our company and an expression of our efforts to increase the energy we receive domestically.” “Even further, we will continue to work with the Ministry of Energy to seek possibilities within Power Source Framework Agreement and the amended PSFA.” Since 2013 when Oyu Tolgoi copper-gold mine started being exploited, it has been using imported electricity from Inner Mongolia, China.
With a purpose to supply electricity to strategic deposits in the southern region and the Gobi from domestic power system, Mongolia has completed the construction of three 220 kV substations and a 670 km-long overhead transmission line. Technical and State Commissions for the supply of power to the mine's some electricity consumption from the domestic power system have worked and started distributing 35-kilowatt power to four substations with a capacity of 13 megavolt amperes (MBA).