BAYAN KHUNDII GOLD MINE AND PROCESSING COMPLEX COMMISSIONED IN BAYANKHONGOR PROVINCE

The Bayan Khundii gold mine and processing complex, located in Shinejinst soum of Bayankhongor Province, has been officially commissioned, with its first batch of products delivered to the Central Bank of Mongolia.

Developed after more than 20 years of research and exploration by Canadian investors, the project was realized with direct investment exceeding MNT 500 billion. Its primary goal is to boost the volume of gold supplied to the Bank of Mongolia by up to 15 percent annually. For comparison, while the Bank of Mongolia received 16.5 tonnes of gold in 2024, a total of 7.7 tonnes had already been delivered in the first eight months of this year. With the commissioning of the new complex, gold production is expected to steadily increase, strengthening Mongolia’s foreign exchange reserves and supporting the national currency, the tugrug.

Construction, which included the mine, processing plant, and related infrastructure, was completed over 22 months on schedule. The project has confirmed reserves of 513,700 ounces of gold, with projected annual production of around 85,000 ounces.

In January 2024, Mongolian Mining Corporation entered into a strategic partnership with Erdene Resource Development, investing USD 40 million, which significantly accelerated project development.

More than 1,400 Mongolian workers participated in building the complex, which incorporates mining operations, a processing facility, and energy and water supply infrastructure. The operation uses technologies aimed at minimizing environmental impact and is expected to create 400–500 permanent jobs, with over half of the workforce to be recruited locally, particularly from among young people.

The gold produced will be delivered to the State Treasury, contributing directly to both national and local budgets. According to Mongolian Mining Corporation, production is expected to reach full capacity by the end of the fourth quarter of 2025.

Source: Ministry of Industry and Mineral Resources