Shivee-Ovoo mine

The Shivee-Ovoo mine, which is located 260 km south east of Ulaanbaatar, was commissioned in 1990.

According to the Mongolian National Mining Association (NMA) the mine "provides 30 percent of domestic coal demand and 40 percent of coal demand of energy production for central region". The NMA also states that the mine has produced 7.4 million metric tons of coal.

While the mine has a production capacity of 2 million metric tons of coal per year, it has struggled to achieve its rated output. The Japan International Cooperation Agency, which funded the expansion of the mine in 1997 from its capacity at the time of 300,000 tonnes a year, states that in 2005 the mine produced 1.2 million tonnes of coal. "The Shivee-Ovoo Coal Mine, on the other hand, did not achieve the planned level, although it is said to be gradually attaining the targeted level. In terms of environmental impact, there appear to be no problems at the present time. Measures to control dust and wastewater were established under the guidance of the government. In addition, both coal mines have independently enhanced the monitoring structure, including establishment of environmental departments. Therefore, this project has brought certain effects, and its effectiveness is moderate."

Mongolian Prime Minister talks up power station
In 2009 the Mongolian Prime Minister Sanjaagiin Bayar visited the minesite to discuss the establishment of the Shivee Ovoo power station. In an interview Bayar stated that "we exchanged our points of views with Development and Innovation Committee of People’s Republic of China regarding building the complex next to Shivee Ovoo coal mine. We agreed upon establishing it in late 2009. This is to establish the biggest ever power station with capacity of 20 thousand megawatt. It will supply China with energy. It is good for China and Mongolia. Also this power station is to provide Mongolia with electricity. This station would supply China, a stable and big market with high demand of electricity. It is not only the issue of Shivee Ovoo, we need to build power station to supply Xinjiang – Uyghur region of China, where there is big demand of energy. We have huge reserve next to this region. These projects will surely help Mongolia to strengthen its financial base and budget revenue. Also eastern part of Mongolia, namely, Dornod aimag has mining deposits with big reserve."

The construction of the Shivee-Ovoo power station would require approximately 20 million tonnes of coal per year, necessitating a massive expansion of the existing mine.

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