Mongolrostsvetmet State-Owned Enterprise was established in 1973 by an agreement between the Government of the People's Republic of Mongolia and the USSR (former name) named a Mongolian-Russian joint venture “Mongolrostsvetmet” to mine fluorspar, precious metals and other minerals in Mongolia, increase mineral resources and increase the country's export capacity. Now in its 49th year, it is Mongolia's first large foreign-invested enterprise.
The joint venture was transformed into a limited liability company in 2007 and into a state-owned enterprise in 2019.
From 1973 to 2016, 51% of the share capital of the enterprise was owned by Mongolia and 49% by Russia, and from 2016, it was transferred to 100% state ownership of Mongolia.
The main activities of SOE include:
- Fluorspar ore mining and exploitation;
- Iron ore mining and exploitation;
- Gold mining and exploitation;
- Production of gravel, crushed stone and sand;
- Carried out activities in the field of geological exploration, extracted 550-600 thousand tons of fluorspar ore and 2.4 million tons of iron ore per year, processed 320-400 thousand tons of iron ore concentrate, produced 110-120 thousand tons of fluorspar concentrate and 2.0 million tons of gold sand. A total of more than 1,550 people have been provided with jobs.
“Mongolrostsvetmet” SOE have 3 units: the Administration of the enterprise in Ulaanbaatar city, the Bor-Undur mining plant in Bor-Undur soum, Khentii aimag, and the Shijir alt gold plant in Zaamar soum, Tuv aimag.
The Bor-Undur mining plant employs more than 20 percent of the working age population in Bor-Undur soum, Khentii aimag, and the Shijir Alt gold plant employs 34 percent of the working age population in Uguumur village, Khailaast bag, Zaamar soum, Tuv aimag.
Since its establishment, Mongolrostsvetmet SOE has made a significant contribution to improving the knowledge, skills and abilities of its employees and the local community, and has trained hundreds of highly skilled national staff. In addition, special attention is paid to addressing the social issues of employees. For example, it has invested about 40 percent of its total investment in the creation of social infrastructure, including comfortable housing, schools and kindergartens, and a complex of social, cultural, sports, and utility facilities. As a result, more than 15,000 people live in cities and towns established on the basis of mining factories. More than 60 percent of the enterorise's employees live in modern, comfortable apartments, and the existing soums also provide housing for local government employees.
The enterprise aims to become an internationally recognized company, introducing international standards, developing corporate governance, and contributing to the development of Mongolia.