The Ministry of Industry plans to build a copper smelter in Khentii Province in the Bor-Undur Soum (district). The decision was based on the several factors, namely:

•  there is a well-developed infrastructure

• it is located between two large copper deposits

• it is possible to solve the management of sulphuric acid processing in an environmentally friendly manner.

• it is located in an area with a high geological concentration of fluorspar and and between fluorspar enrichment plants.

• Bor-Undur has a railway, therefore there is access to the Russian and Chinese markets.

• Bor-Undur sum is only 50 km distant from the highway from Ulaanbaatar to Zamiin-Uud on the Chinese border.

The annual capacity of the plant will be 530,000 tons of enriched copper.