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.

Published Date:2026-04-08