Erdenet - reviews from tourists. Russia's mysterious sale of its share of the Erdenet Mining and Processing Plant to Mongolia Erdenet Co., Mongolia

  • 14.10.2023

Erdenet is located 350 km northwest of the capital of Mongolia, Ulaanbaatar, and 180 km from Darkhan, in the valley between two large rivers, the Orkhon and Selenge.

The bulk of the urban population are Mongols (80%), 15% are from Russia, and the remaining 5% are Chinese and Koreans. The main religion practiced is Tibetan Buddhism; some of the population adheres to Christian norms. There are also adherents of Islam, but their share in the general population is incredibly small.

Erdenet is home to 16 secondary schools and four higher education institutions, where even foreign students from neighboring countries study.

The city has excellent cultural and sports facilities. There is a large Sports Palace and a large stadium.

Climate

The weather conditions of Erdenet have the features of a sharply continental climate. The winter period is characterized by harsh and frosty weather with air temperatures around –30 °C. Summer here is unusually cool, the city air rarely warms up to +23 °C, but precipitation during this period is heavy.

Many tourists prefer to come to Erdenet in the summer, when there is a great opportunity to see all the sights without being subject to the vagaries of the weather.

Nature

The views around Erdenet are quite typical for Mongolia: majestic mountains, endless steppes, rare ribbons of rivers.

Erdenet lies in the interfluve of the largest rivers in Mongolia, the Selenge and Orkhon. Thanks to this, you can observe amazing vegetation for this region. The forests near Erdenet are home to rare animals listed in the Red Book of Mongolia - deer and sable.

Attractions

The main attraction in Erdenet is the famous Friendship Monument, which is dedicated to the friendship of the Mongolian and Russian peoples. It was the Soviet Union that provided assistance in the construction of the city and the Erdenet enterprise. Many tourists, especially from Russia, love to take pictures against the backdrop of this huge monument, symbolizing the connection between friendly peoples.

Most visitors are attracted by the Erdenet Mining and Processing Plant Museum, which stores all the interesting facts from the history of the formation of this enterprise.

Many travel companies organize unforgettable walks and trips to nearby national parks. The most popular among tourists is the 13th Century Mongolia Park, where numerous camps of the khan, artisans, and nomads are located on an area of ​​about 15 hectares. And all these objects accurately convey the life and culture of those times.

Gorkhi-Terelj National Park is famous for its archaeological wealth - entire skeletons of dinosaurs that lived exclusively in Mongolia. Today there is a dinosaur park with life-size stone sculptures of these prehistoric animals.

Nutrition

Erdenet is perhaps the only city in which restaurant menus are printed in Mongolian and Russian. Here you can try the famous traditional dishes of national Mongolian cuisine. Some restaurants are happy to offer visitors dishes of European and Chinese cuisine.

By the way, it is in Erdenet that the cost of food is the lowest in the entire country. For lunch for one person, consisting of three main courses, you will have to pay no more than $8.

Accommodation

In Erdenet, tourists can stay in several hotels. The most popular of them is “Selenge”, which is an entire hotel complex consisting of several buildings. There is a restaurant, swimming pool and sauna. Room prices in this complex are quite affordable. For one night in a double room you will be asked only $20.

Entertainment and relaxation

Most tourists coming to Erdenet prefer active recreation. Hiking in national parks and numerous mountain routes are popular. In addition, not far from Erdenet there is a modern ski slope, equipped with a special cannon for applying artificial snow to the slope. Therefore, this type of recreation is popular not only in winter, but also in summer.

Many foreign tourists enjoy using the services of local health institutions and sanatoriums. The Mazhaa Recreation and Tourism Center, which is located 20 km from Erdenet, enjoys special honor. Here visitors can enjoy spacious luxury rooms, as well as traditional Mongolian yurts. In addition, there is a sauna on the territory of the base; nearby there is a source with the purest water.

“Mazhaa” is known for conducting kumis treatment procedures, which, according to experts, have a beneficial effect on the central nervous system and the musculoskeletal system.

Purchases

You can make purchases in Erdenet at the large city clothing market.

The national clothing of the Mongols, del, which is traditionally sewn from special soft fabrics with an oriental pattern, is especially attractive to foreigners.

Transport

The city of Erdenet has excellent railway connections with other major cities of Mongolia. The Trans-Mongolian Railway passes through this city, which has connections with the East Siberian and Chinese Railways.

When making a short trip around Erdenet itself, you can use city buses. One trip will cost you $0.5. You can also resort to the services of private taxi drivers, however, you will have to pay much more for such a trip - up to $0.4 per kilometer. All taxi drivers work strictly according to the taximeter.

Connection

Communication in Erdenet is excellent. Most of the population has landline telephones in their apartments. 80% of people living in the city use mobile phones. It is worth noting that the quality of communication provided by the mobile operator is very high. Here you can even make a call to Russia. The cost of one minute of such a conversation will cost $1.3.

But the Internet is available only in a few cafes and hotels. Such a service will cost from $0.4 to $0.8 per hour of use. However, the connection speed will probably disappoint you.

Safety

When in Erdenet, you should be especially careful when shopping. In crowded places, you may be spotted by pickpockets. Therefore, try not to lose sight of your belongings and wallet.

When purchasing products made from precious metals or other valuables, ask the seller for accompanying documentation that will help you avoid unnecessary difficulties at customs when returning home.

When visiting the Erdenet Mining and Processing Plant Museum, it is worth remembering that photography and video shooting are strictly prohibited there. Permission can only be given by the management of the enterprise.

When moving around Erdenet by car, keep in mind that local residents do not follow traffic rules very conscientiously, so this city is characterized by frequent accidents and traffic jams.

“Recently, as a prime minister, I often have to voice good news. But this has nothing to do with tomorrow's elections. Today I am announcing that the Mongolian-Russian joint venture Erdenet is becoming a wholly Mongolian enterprise. All this was agreed upon with the highest political leadership of Russia. On June 30, the governments of our countries will make official statements on this issue.”

At the same time, it was emphasized that 100% of the mining and processing complex facilities are transferred to the Mongolian side, 49% of the shares are acquired by Mongolian economic units led by the Trade and Development Bank. Ch. Saikhanbileg emphasized that the Russian share of Erdenet will not be sold to any third party, and third parties do not participate in deciding the financial side of the transaction.

One of the managers of the copper-molybdenum plant told our website (montsame.mn editor's note) that under the terms of the deal, Erdenet will retain Russian management for another two years, and specialists from Russia will continue their work.

Considerations regarding the sale

The sale of Russia's stake in one of the world's largest copper mines has raised unanswered questions, write authors L. Erdene and S. Radchenko.

On June 29, Mongolia held elections to the Parliament (VGH) and Khural of civilian representatives of the aimags and the capital of the state. The result was the absolute defeat of the ruling Democratic Party. Their opposition, the Mongolian People's Party, now occupies 65 seats out of 76 parliamentary seats.

If Prime Minister Ch. Saikhanbileg hoped that with his news he would be able to awaken patriotic feelings among the electorate, then he greatly miscalculated. Statements regarding Erdenet Mining and Processing Plant did not help his party. The head of government himself was also trampled during the political battle and lost his seat in parliament and the post of prime minister, the article says.

But even after Ch. Saikhanbileg himself left, questions remained: what exactly was on that piece of paper that he waved in front of journalists the day before the elections? Who bought Erdenet, how and why? And who will benefit from the sale when one of Mongolia's largest mining enterprises changes hands? In addition, geopolitical questions arise: why did Vladimir Putin agree to give up such a significant asset in a neighboring country, where, apparently, Russia is seeking to maintain and increase its leverage?

Erdenet is a treasure for Mongolia. In 1973, the Soviet and Mongolian governments created a joint venture to develop a copper-molybdenum deposit. Erdenet is still one of the largest copper ore deposits in the world. Production began in 1978. Erdenet was more than just a factory—it became Mongolia's third-largest city, a cluster of ugly apartment buildings clustered toward a giant Martian-red pit.


Photo: erdenetinfo.mn

Copper was sent to the USSR at below-market prices, feeding Mongolian frustration with semi-colonial economic relations. The collapse of the Soviet Union changed the situation. In 1991, the original joint venture agreement was renewed. As a result, Mongolia received 51% of the company's shares, and Russia received 49%. The Russian side had little control over the enterprise. Until 2011, when Mongolia abolished the excess profit tax, 90% of profits were siphoned off in the form of taxes, leaving only a small share for Russia.

Nevertheless, from Moscow's point of view, the Erdenet mining and processing complex is an important strategic asset. Having lost their positions in the 1990s (mainly to China, since today China is Mongolia’s largest trading partner), the Russians took comfort in the presence of other joint ventures in Mongolia: the Trans-Mongolian Railway, the Mongolrostsvetmet company (mining fluorite, gold and iron ore), and, of course, Erdenet. These are the three pillars holding up the imposing canopy of Russia's fading economic influence.

From an economic point of view, these assets are more of a liability. A worn-out railway requires capital investment for repairs and modernization. As a half-shareholder, Russian Railways still had to make some investments (though not yet implemented) to gain access to important copper and coal deposits in the Gobi Desert. At the same time, Erdenet and Mongolrostsvetmet, although not losing money as they did in the past, are producing very slight profits. In 2015, consolidated profits from the two assets were a paltry $4.6 million.


Photo: ubtz.mn

The tumult of copper prices since 2011 has hit Erdenet hard. Profits fell. Frustration began to grow in Moscow with the bureaucratic obstacles in managing the joint venture, as well as the Mongolian reluctance to consult with the Russians on key operational issues. So, it is not so surprising that when Russia was offered a significant $390 million for their stake in Erdenet and another $10 million for Mongolrostsvetmet, they decided to turn the shares into cash.

The final decision to sell Erdenet was apparently made in Tashkent at the end of June, during the recent session of the Shanghai Cooperation Organization. It remains unclear what promises, if any, Putin received for agreeing to the sale. It's hard to imagine that he simply handed over two of the three pillars of Russian influence in Mongolia without receiving something in return. After all, $400 million is not a very large sum for Russia, even in times of sanctions and severity.


Photo: news.cn

But while the Russian side of the story remains murky, the Mongolian side is mired in outright scandal. When C. Saikhanbileg promoted the agreement on June 28, he cited many facts that Erdenet would now be a 100 percent Mongolian company. But it wasn't as good as it sounded. It was not the state that bought 49 percent of Russian shares. It was, rather, a private entity - the Mongolian Copper Corporation, spun off from one of the country's large private banks, the Trade and Development Bank.

The Prime Minister's statement had negative consequences. Instead of impressing upon voters the announcement of the imminent flow of important economic assets to Mongolia, Saikhanbileg delayed them: Putin was simply replaced by anonymous oligarchs. A key strategic asset was being sold to a private bank, and the Mongolian government, while not benefiting from the agreement, did not seem to object.

The opposition parties screamed like crazy. Of course, there should have been consultations. The terms of the Erdenet agreement require that the Russians first offer their share to the Mongolian government and only if the government rejects it can a third party be brought in.

According to our data, the authors write, in fact there were consultations between the two governments, but all this was done in secret. On June 13, the Mongolian Foreign Ministry sent Russia a note approving the deal. The sale was sealed within days and the money was transferred promptly. Mongolian Copper Corporation is a company registered in a private apartment in one of the run-down middle class areas of Ulaanbaatar. The company borrowed $200 million from the Trade and Development Bank, and another $200 million was taken from undisclosed sources. The head of the corporation turned out to be a 28-year-old gentleman, a certain Tsoozh Purevtuvshin, known in a narrow circle as “Tush”.

The only thing known about Purevtuvshin is that he is a young man of moderate means who studied International Law at the Mongolian State University. For some time he worked as a legal consultant at the Trade and Development Bank.

A search for the location of the phantom corporation (based on a contact address found on a hastily created website) led, strangely enough, to the office of a Bloomberg TV affiliate in Mongolia.

The agreement has been in the works for two years. “The negotiations were carried out in the utmost secrecy,” said O. Orkhon, Director General of the Trade and Development Bank.

“There were external and internal forces that could hinder the agreement. It wasn't just market forces. There were many interested buyers in Russia, Kazakhstan and China.”

Russian sources confirmed the picture. Rostec chief Sergei Chemezov - keen to sell the assets - reportedly spoke to Putin twice before the sale. At least some officials in the Russian Foreign Ministry, including Deputy Minister Igor Morgulov, strongly opposed the sale of Erdenet's stake.

The deal took place on June 24, four days before the prime minister announced it to the startled Mongolian public. A few days later the existing Russian-Mongolian government was dissolved. Already on June 27, Mongolian Copper, led by Tush, and the Ministry of Finance of Mongolia issued a joint decree, instructing the current management of Erdenet to refrain from taking any action or disposing of any property.

A supervisor, Dugrae Tserenbadam, was also appointed and appeared at the production plant surrounded by four bodyguards. Today, the company's 6 thousand employees, surprised by these dramatic events, are considering their fate.

Mongolia's mining sector is notoriously corrupt. The signing and breaking of treaties, constant political struggle and a rising tide are characteristic of this sector of the Mongolian economy. Foreign investors like Rio Tinto have been able to adapt. Many others were frightened by Mongolia's uncertain political and legal environment. This has caused the state to slide from its position as the fastest growing economy in the world in 2011 to its current deteriorating state.

The announcement made by the Prime Minister the day before the election was hardly “good news”. This was rather the main bad news. Such a surprise became a catalyst for accusations not only from the public, but even from the dominant political forces. The Democratic Party did not expect such a failure, so most likely this deal will be carefully studied by the current government.

2.2. The problem of managing the joint venture GOK “Erdenet”.

JV GOK Erdenet was created in November 1973 to develop the Erdenetiin-Ovoo copper-molybdenum ore deposit. According to the intergovernmental agreement of 1991, Russia received 49% and Mongolia 51% of the shares of the joint venture. In 1994-2002, control over the Russian share in the joint venture was exercised by managers of the Zarubezhtsvetmet company. In 2002, it processed 23.2 million tons of ore, produced 473 thousand tons of dry copper and 6.5 thousand tons of molybdenum concentrate.

On January 1, 2002, the intergovernmental agreement expired. Therefore, both sides pinned hopes for a change in the situation on a new intergovernmental agreement, which was supposed to come into force at the beginning of this year. However, negotiations to conclude this agreement, which have been ongoing for a year, have finally reached a dead end.

Let us consider the mutual claims of the Governments of Russia and Mongolia, and the reasons for the disagreement that impede the successful ratification of the agreement.

The materials of the negotiations are not particularly advertised. But, judging by reports from the Kommersant newspaper1, the main complaint of the Russian Government is the irregular supply of copper and molybdenum concentrates from Erdenet to Russian companies - the Ural Mining and Metallurgical Company (UMMC) and the Kyshtym Copper-Electrolyte Plant (KMEZ).

Over the past ten years, supplies of copper raw materials from Mongolia to Russia have been extremely irregular. In 1999-2002, the Erdenet JV was supposed to send at least 143 thousand tons of concentrate annually to Russian consumers - to UMMC and KMEZ. However, these obligations were not fulfilled. Russia received annually only 40-50 thousand tons of copper raw materials. In 2002, no more than 35 thousand tons of concentrate were imported into Russia, 25 thousand tons for UMMC and 10 thousand tons for KMEZ. In January-February 2003, only 1 thousand tons of concentrate arrived from Mongolia. According to preliminary calculations, the total volume of supplies of Mongolian concentrate to KMEZ this year is unlikely to be more than 10 thousand tons. However, the production of refined copper at the enterprise will remain at the level of last year or slightly lower - 75-80 thousand tons.

Currently, the Ural copper deposits are severely depleted. Therefore, the Russian copper industry is heavily dependent on Mongolian raw materials. The reduction in supplies of Mongolian copper concentrate led to a reduction in production at Russian mining and metallurgical enterprises. For example, this year UMMC plans to reduce the production of refined copper by 6-8% (from 330 thousand to 300-305 thousand tons).

Therefore, during negotiations, the Russian Government primarily protects the interests of the Ural metallurgical plants and demands regular supplies of Mongolian copper concentrate to Russian mining and metallurgical enterprises.

The Russian side is also concerned that the current management of the Erdenet JV has taken a course towards reducing the number of specialists from Russia and the CIS countries. If at the beginning of 2002 out of 6.2 thousand workers there were 635 Russians, then this year there are already 535 Russians. By the end of the year, another 200 Russians will be laid off1. Therefore, personnel issues will likely come up in the upcoming negotiations.

The position of the Mongolian Government is diametrically opposite. Prime Minister of the Mongolian Government N. Enkhbayar in one of his interviews formulated it as follows: Erdenet JV, unfortunately, is not a very high-tech enterprise. 75% of the produced concentrate is earth and only 25% is copper. We want it to produce pure copper, copper sheets and, possibly, electrical wires... Therefore, we want the negotiations on Erdenet to take place not only on the share ratio, but also on issues of its further development”2.

The Mongolian side also demanded an increase in its share in the joint venture from the current 51 to 80%, since in 1994-2002. Russia did not participate in the work of the plant.

The previous agreement was signed in 1991. According to the General Director of the Erdenet Mining and Processing Plant, H. Naranhuu, “The agreement contains many provisions that do not correspond to the market mechanism operating in both Mongolia and Russia. Another reason is that the financial and economic calculations necessary for negotiations were not carried out annually, including calculation methods”1.

The fact is that until 1990, the main currency of settlements between socialist countries was the transferable ruble. All Soviet loans were calculated in a currency that does not exist today. In addition to exchange rates, so-called adjustment factors were in effect. There was one rate for investment supplies, and another for trade transactions. Sometimes the difference in the exchange rate reached 10 times the level2.

According to some oral data, Russian metallurgical companies offer a low price for Mongolian copper concentrate. Moreover, late payment has become commonplace. Therefore, the products of the Erdenet Mining and Processing Plant undergo processing in China for several years, or through China they enter a third country.

But at present, Chinese manufacturers themselves are in an unenviable financial situation. They do not have enough working capital, they are not operating at full capacity, and besides, many of these enterprises do not have the right to foreign markets.

Therefore, JV GOK Erdenet began working with trading companies that have good financial resources and the necessary infrastructure. These are the companies “Glencore”, “Peshine”, “Samsung”, “Gerald Metals”.

JV GOK Erdenet plans for the future by attracting Western investors and their technology. Previously, the main idea was to smelt all the concentrate on site and produce pure copper. In other words, it was intended to produce more expensive products. Currently, the plant has created a pilot plant that produces pure copper by processing ore with a weak solution of sulfuric acid.

Regarding the reduction in the number of Russian specialists, the current leadership gives two arguments. Firstly, the Erdenet Mining and Processing Plant JV has been operating for 25 years, and during this time the qualifications of Mongolian specialists have increased. Secondly, the company is in a difficult financial situation. And the average salary of Mongolian workers is approximately $160 per month, Russian – $600-700.

At the beginning of April 2003, Russian participants in the Russian-Mongolian intergovernmental commission decided to change the tactics of negotiations on the fate of the Erdenet mining and processing enterprise joint venture. Russia intends to use financial leverage to influence Mongolia so that it abandons demands to increase its share from 51 to 80%. One of the key arguments of the Russian side will be Mongolia's current debt. In addition, Russia intends to demand Mongolia's debt in the joint venture itself - it now amounts to over $340 million. Representatives of the Russian government did not rule out that the issue of debt repayment could be raised this year1.

In connection with the debt of the Erdenet Mining and Processing Enterprise JV, the question of establishing the real amount of the debt again arises. According to Naranjuu, so-called “adjustment factors” were used in financial accounting, which reached “up to a 10-fold level.” Since the Russian side agreed to recalculate on the terms of 1 dollar = 0.6 perev. ruble” and “one-to-one conversion ratio”2, it can be assumed that the real amount of debt is much less than the above amount.

A Mongolian proverb says: “He is rich who has no debt, happy is he who is healthy.” Therefore, the Mongolian Government, using every opportunity, must pay off this debt.

But even now it is absolutely clear that paying off the “big debt” and paying off the debt of the mining and processing plant itself will not be able to solve the problem of the Erdenet Mining and Processing Plant JV.

Based on the above facts, let's try to understand the true reasons for the disagreement between the two sides.

Over the years of the existence of the USSR, in order to unite the countries of the socialist camp, responsibilities were distributed in such a way that some countries depended on others. For example, textile factories were built in Russia and the Baltic countries when cotton was grown in Central Asian countries.

This system, the goal of which was the integration of the CMEA countries, is still making itself felt. A striking example of this is the problem of the Erdenet joint venture.

The Erdenetiin ovoo deposit was initially explored by Czechoslovak geologists. Since the “elder brother” showed his interest in this deposit, Czechoslovakia ceded it to the USSR and it was decided to build a joint Soviet-Mongolian mining and processing plant “Erdenet”.

The USSR's interest in this deposit was explained by the fact that even then the Ural copper deposits began to be depleted. In this regard, some metallurgical plants in Russia began to experience an acute shortage of raw materials. Therefore, they needed a plant that would provide them with cheap copper concentrate.

However, in recent years, the volume of copper concentrate from the Erdenet JV supplied to Russia has been increasingly decreasing, which has caused dissatisfaction with the Russian Government. The Mongolian side is interested in the production of pure copper, due to the high price, and supplied copper concentrate to a third country, which was contrary to the interests of Russia.

Thus, the main essence of the disagreement is that, on the one hand, Mongolia does not want to provide the metallurgical plants of the Urals with cheap raw materials, on the other hand, Russia does not want the products of the Erdenet joint venture to go to a third country.

This problem is quite complex. Therefore, the outcome of the negotiations will most likely determine the degree of mutual concessions, the main of which are Mongolia’s willingness to sell its products exclusively to Russia, on the one hand, and a sufficient increase in purchase prices for the products of the Erdenet JV, on the other.

According to the latest data, there is a shift in solving this problem.

The Russian delegation, led by Deputy Head of the Ministry of Industry and Science Sergei Mitin, offered the Mongolian side a “zero option”; maintaining the current shares of both parties and writing off mutual debts. As Sergei Mitin stated, the Mongolian government has already agreed with this proposal. For the operational management of the joint venture, the previous agreement was extended until July 1 of this year.

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ERDENET

Erdenet (Mongolian Erdenet)- the third largest city in Mongolia, between the Selenga and Orkhon rivers, an administrative unit of central subordination, the center of the Orkhon aimak. Population - 83.2 thousand inhabitants (2006).

The Erdenet railway is connected to the city of Darkhan (on the Trans-Mongolian railway). Center of the mining region. Erdenet plant. Production of building materials; woodworking, food, wool processing enterprises.

The city of Erdent was founded in 1973 in connection with the development of a copper-molybdenum ore deposit near the settlement of Erdenetiin-Obo.

The largest copper-molybdenum plant in Asia is located here. The plant currently produces 330,000 tons of copper concentrate, which is exported to Kazakhstan, Japan, China, Russia and Switzerland. The development of copper and molybdenum deposits began in the mid-70s. In 1978, the joint Mongolian-Soviet mining corporation Mongolsovtsvetmet was created. With the help of Soviet builders, the construction of a city and a mining and processing plant began.


Erdenet translated from Mongolian - treasure. Mine "Erdenet", built by the Soviet Union in 1984, has become a real treasure for today's Mongolia: five hundred thousand tons of copper concentrate per year, 35% of revenues to the state treasury - a state-forming joint venture. But the concentrate goes not to Russia, but to China - all of it! The reason is that at one time Russia abandoned the plant to the mercy of fate.

HISTORY OF ERDENET CITY

In the early sixties, serious exploration work began - then this deposit was identified as very promising. And in 1972, a joint Mongol-Soviet expedition completed the detailed development of plans for the exploitation of the Erdenet treasure. Copper Mountain is estimated to store millions of tons of pure copper.

The city of Erdenet originates from a small village of geologists and miners who explored further possibilities for developing the Erdenet Mountain deposit. In 1974, during the official visit of the General Secretary of the CPSU Central Committee L.I. Brezhnev to Mongolia, an Intergovernmental Agreement on the construction of the Erdenet mountain complex was signed. However, Anatoly Chekashev’s book “The Affairs and People of Erdenet” says:
“In March 1973, the first Soviet military builders set foot on the land of Erdenet, and by the end of April a tent city with a canteen, headquarters, warehouses and other economic facilities of army life had already been built; eighteen Soviet specialists arrived. transport parts for prefabricated panel barracks and residential buildings by motor transport. Construction work was carried out by SOT-1 of the Glavzarubezhstroy of the USSR Ministry of Industry and Construction."

In 1974, construction began on the entire Erdenet mining and processing complex with its urban infrastructure. Already on December 11, 1975, the Decree of the Presidium of the Great People's Khural of the Mongolian People's Republic was issued to give Erdenet the status of a city.

It is noteworthy that up to 12 thousand people, representing almost 100 nationalities of the former USSR, took part in the construction of Erdenet. One of the first vital constructions was the construction of a 407 km power transmission line between Gusinoozersk and Erdenet. December 14, 1978 The ceremonial early opening of the first stage of the plant took place, which grew in just 4 years from scratch. The top officials of the Government of Mongolia, headed by Yu. Tsedenbal, and honored guests from Moscow arrived at the ceremony.

Residents of Erdenet have a special, careful attitude towards water. The distance from the city to the nearest Selenga River is more than 60 kilometers. The Selenga-Erdenet water pipeline was built from 1974 to 1977 (length more than 70 kilometers).

The first administrative unit on the land of Erdenet was part of the Bulgan aimag, but as the scale of construction work expanded and the increasing influx of labor, the need arose to create an independent territorial-administrative unit. And in 1976, the third city in Mongolia was formed - Erdenet. Due to changes in the Constitution of Mongolia in 1994, the city of Erdenet was renamed “Orkhon aimak”.

Initially, the city was designed taking into account a population of 40-45 thousand people with 8 modern microdistricts. But a lot has changed since then. In the Orkhon aimag there are almost 1,500 economic institutions and enterprises, various companies and cooperatives, and there are 137.9 thousand livestock. Foreign trade turnover amounts to 604.9 billion tugriks, 587.7 thousand tons of copper and 2.6 thousand tons of molybdenum ore, 2.3 thousand tons of pure cathode copper are exported.

Currently, 84.3 thousand people live in the Orkhon aimag, of which 81 thousand live in the city of Erdenet. The age composition of the city's residents is as follows: under 15 years old - 32.9%; from 15 to 59 years old - 61.8%; over 60 years old - 5.3%. Children and youth make up 44% of the total population.

ERDENET NOW

By Russian standards, Erdenet is not a very big city. Consists of six microdistricts and yurt quarters. Yurt neighborhoods are concentrated mainly in the western part of the city. The area of ​​yurt quarters is 3-4 times larger than quarters built with high-rise buildings. In the north of the city there is a cottage community (district 11). This microdistrict is located on a mountainside with a beautiful view of the city. The microdistrict is built up with modern cottages.

The city center of Erdenet is the central square where the Orkhon aimag administration building is located.

Next to the administration is the cultural center of the Gornyak Cultural Center, the center of the city’s cultural life. Concerts are held here, amateur and professional groups practice. Across the road, opposite the cultural center, there is a sports palace with a swimming pool. Both the cultural center and the sports complex are on the balance sheet of the Erdenet Enterprise. As in the good Soviet times, the company's employees visit the pool for free.

The sports complex consists of several divisions: Hilam Swimming Pool (capacity 45 people), Large Sports Hall (capacity 200 people), Hangard Stadium (capacity 2000 people), Sarkhia Ski Base (capable of serving up to 300 people per hour ), skating rink, athletics tracks, tennis courts, halls for wrestling, boxing, judo, gymnastics, table tennis, bodybuilding, chess, weightlifting, billiards, hotel, sauna. We can say with confidence that this is the best sports complex in Mongolia.

Erdenet is an open, steppe city. Unlike Ulaanbaatar, there is a clear layout, the possibility of expansion in almost any direction. There is no building-to-house, window-to-window clutter. There are huge spacious areas between the houses.

CULTURE AND EDUCATION

22,000 schoolchildren study in 16 general education schools and 4 specialized schools, and 3,900 children are educated in 18 kindergartens. The teaching staff numbers 1,100 people.
3,200 students are educated in 4 higher educational institutions

The city of Erdenet has excellent cozy cultural and sports facilities: theater seats amount to 1000 seats, and the sports palace can accommodate 3000 people.
Every second urban family has a landline telephone, and 80% of urban residents over 18 years of age use a cell phone.

The capital of Buryatia and Erdenet have long-standing ties. We have accumulated experience in cooperation in the fields of healthcare, education, culture, and sports. Every year, vacations are organized for Mongolian schoolchildren on Lake Baikal, doctors from Erdenet do internships in medical institutions in Ulan-Ude, an exchange of specialists is established, and international sports competitions in tennis, freestyle wrestling, and chess are held. At the beginning of November it will be 5 years since the establishment of cooperation between our cities, which has great prospects. Such Buryat enterprises as Spetsmebel CJSC, Makbur OJSC, Titan food company and others are successfully operating in the Erdenet market. Next year the Days of Economics and Culture of Ulan-Ude will be held in Erdenet.

ATTRACTIONS
  • Monument of Friendship. The symbol of the city of Erdenet is the monument to Mongolian-Russian friendship, which is located on a hill not far from the first microdistrict. Locals call it “tugrik”. In foreign literature it is always called a “communist monument”. Located in the western part of the city, opposite the 1st microdistrict (on the right side of the road, at the entrance to the city).
  • Monument to the builders of Erdenet. Installed on a pedestal tractor T-100M with bulldozer equipment (Chelyabinsk Tractor Plant). Years of manufacture: from 1963 to the beginning of the 80s. Engine power: 108 hp, number of gears: forward - 5, reverse - 4. Operating weight - 11100 kg. The monument is located in the 1st microdistrict of the city.
  • Museum of the Erdenet Mining and Processing Plant. The museum is located in the first microdistrict. History of the construction and development of the Erdenet enterprise. Industrial, cultural life.
  • Monument to Buddha. Opened July 22, 2011. It is located north of the Friendship Monument on the mountainside.
  • Buddhist monastery "Ochirt Tarinii Kholgon Khiid". Located on the outskirts of the city, across the road opposite the 4th microdistrict. (GPS 49°0 1"58.84"N, 104° 2"55.43"E.)
  • Monument to Sh. Otgonbileg. Opened in 2002 near the Institute of Technology. Shagdaryn Otgonbileg (1952 - 2001) - the first Mongolian general director of the Erdenet mining and processing enterprise. Graduate of the Irkutsk Polytechnic Institute, majoring in mining engineer and surveyor. He was appointed to the position of General Director in October 1989. Otgonbileg’s great merit is that he brought the plant to the international level, exporting products to dozens of countries around the world. In January 2001, Sh. Otgonbileg died in a plane crash.
  • Career. The mine dumps are visible from anywhere in the city. This is probably the most important monument in the city. The quarry itself is located in the eastern part of the city, 6 kilometers from the center.
  • Protestant Church "Light of the World" located on the outskirts of the city. As throughout Mongolia, Western civilization is trying (and not unsuccessfully) to win the minds of the Mongols. It is noteworthy that the Mongols quite easily succumb to the religious pressure of various concessions that are not typical for Mongolia. This can be explained simply - a whole generation of Mongols (the 90s generation) had the idea hammered into their heads - everything that comes from the West (but not from Russia) is real values ​​(both spiritual and material). For example, in Ulaanbaatar there is a real worship of the American “dream” - “American Dench - residential complex”, American School, International School, Cambridge Surgul, American Bara stores (American clothes), etc. But it should be noted that the Mongols, even those who attend the Protestant church, do not abandon Buddhism and shamanism.
  • Carpet factory "Erdenet Khives". In 2011 she celebrated her 30th anniversary. The factory has a store that meets international standards: modern design, large assortment, friendly service. Sellers speak Russian and English.
  • Weaving enterprise “Erdenet cashmere”. Products made from natural wool.
WHERE TO STAY

Hotels in Erdenet do not have stars, because... the owners do not bother to go through the categorization procedure. The hotels are not large, from 9 to 25 rooms.

  • Hotel Selenge- the central hotel of the city. This is a complex of several buildings, in which, in addition to the hotel, there is a restaurant, a sauna, and office space for rent. Opened in 1994. Rooms - 25 rooms with a bath, hot shower, cable TV, Wi-Fi and a restaurant that can simultaneously accommodate up to 50 people. Types of rooms - standard, junior suite, luxury, high standard and VIP.
  • Hotel Molor Erdene. Hotel Molor-Erdene was built in 2009. A four-story building located in the city center. The hotel has 4 types of rooms: standard, junior suites, suites, presidential. The total number of rooms is 19. Each room has internet, cable TV and a minibar. Hotel services - laundry, karaoke, billiards, conference room and restaurant.
  • Gem Stone Hotel
  • Panda Hotel
  • Delger Hotel
  • Erdenet Inn Hotel
  • Pyramid Hotel
  • Sonor Khairkhan Hotel
ADDITIONAL INFORMATION:
  • Photo album pages. Orkhon aimag. Erdenet. (11 photos, 2009.)
  • Since 2001, Orkhon aimak has been twinned with the city of Usolye-Sibirskoye (Irkutsk region, Russia), and the city of Erdenet has been twinned with Ulan-Ude (Buryatia, Russia).
  • IN Erdenet city located Russian Consulate General (Consulate General of Russia). It was built at a time when more than five thousand Soviet citizens lived and worked in Erdenet. Now there are no more than eight hundred of them. The Consulate General takes care not only of Russian citizens. If necessary, Belarusians, Ukrainians and other CIS citizens living in the aimak contact it.
  • Probably the only city in Mongolia where restaurant menus are printed in Mongolian and Russian.
  • Birth of the city of Erdenet. An excerpt from Anatoly Chekashev’s book “The Affairs and People of Erdenet”.
  • Mongolian-Russian joint mining and processing enterprise “Erdenet”. General information. Story. NEW!!!
PHOTO ALBUM PAGES