en.Wedoany.com Reported - The Ulaanbaatar City Mayor's Office and "Chinggis Khaan Wealth Fund" LLC have determined the cooperation direction and scope for the "Coal Pyrolysis Plant" project. The project, based on the Baganuur Coal Mine, is planned to commence operations in the first quarter of 2028.

Ulaanbaatar Mayor B. Purevdava and CEO of "Chinggis Khaan Wealth Fund" LLC B. Davaadalai have reached an agreement on project cooperation.

The two parties plan to advance the project in line with Mongolia's long-term and medium-term development policies and air pollution reduction goals.

Under the cooperation arrangement, the project will involve the construction of a "Coal Pyrolysis Plant," with the project proponents setting objectives that include producing value-added products, developing import-substitution products, and reducing the outflow of foreign currency. The project proponents also stated that the project is related to protecting residents' health.

$134 Million Investment, Processing 1.8 Million Tons of Lignite Annually

The project plans to raise funds through a tripartite model involving Ulaanbaatar City, "Chinggis Khaan Wealth Fund" LLC, and domestic and foreign investors and partners.

The total investment for the project is $134 million.

Once the plant is operational, it is expected to process 1.8 million tons of lignite annually, producing 600,000 tons of semi-coke fuel and 82,000–84,000 tons of coal tar.

Additionally, the project is expected to generate 40 MW of electricity, of which 26 MW will be supplied to Mongolia's Central Unified Power System.

Project Management and Funding Mechanisms Still to Be Advanced by Partners

Project management will be jointly undertaken by Ulaanbaatar City and "Erdenes Industrial Park" LLC, a subsidiary of "Chinggis Khaan Wealth Fund" LLC, with the project financing mechanism to be determined.

The specific implementation of the project will be handled by "Ulaanbaatar Partnership Center" LLC.