Mongolia to increase iron ore production

Ulaanbaatar /MONTSAME/ Mongolia is planning to increase its iron ore exploration next year. The government for reforms has announced its goal to explore iron ore of 14.7 million tons a year starting from 2014, paying more attention to value-added production. Mongolia exports iron ore in raw or concentrated form, and then imports processed products at a higher price. Last year, for example, Mongolia exported 6.5 million tons of iron ore, valued at USD 650 million, and imported 400 thousand tons of pig iron valued at USD 600 million. As a solution to this issue, the government intends to establish the Sainshand industrial complex to support the value-added production of iron ore that contributes in run-down of currency flow to foreign countries. Domestic iron processing will also give its benefits in stabilizing over-blown housing prices, the government believes.