Officials with the inaugural gold doré bar from the BKH mine.
The mine is expected to generate around 85,000 ounces of gold annually, supported by reserves totaling 513,700 ounces at an average grade of four grams per tonne. MMC plans to sell the gold produced from Bayan Khundii at spot prices to the Central Bank of Mongolia, thereby contributing to the country’s foreign reserves and broader economic stability.
As part of its development strategy, MMC invested $40 million (Tg143.87 billion) for a 50% equity interest in Erdene Mongol (EM) through a Strategic Alliance and Investment Agreement that took effect on 25 January 2024. Within just 22 months, MMC converted the greenfield site into a fully functioning mine, establishing operational systems and procedures that will enable the site to reach full production capacity by the fourth quarter of 2025.
MMC is primarily recognized for its coking coal operations, managing the Ukhaa Khudag and Baruun Naran open-pit mines in Umnugobi aimag, Mongolia. Since beginning operations in 2009, the company has developed into a major exporter of washed coal. In 2010, it became the first Mongolian company to list on the Hong Kong Stock Exchange, enabling international investors to participate in its growth.
The move into gold production follows agreements finalized in 2023 between MMC and Erdene Resource Development to advance the Bayan Khundii project. The agreements outlined a three-stage investment plan, granting MMC a 50% stake in EM, Erdene’s wholly owned subsidiary responsible for the project.
Commenting on the achievement, MMC CEO Battsengel Gotov said: “We are proud to see the Bayan Khundii mine reach this significant milestone and extend our sincere congratulations to our employees, contractors and strategic partner whose dedication made this milestone possible, transforming this project into a fully operational gold mine. The team involved deserves tremendous credit for their hard work and dedication.
“The Group also takes pride in advancing its strategic objective of diversifying its business portfolio, ensuring sustainable growth and long-term value creation. Moving forward, MMC will work closely with our strategic partner to support their continued focus on exploration efforts aimed at extending the mine life and bringing additional deposits into production covered under the Strategic Alliance Agreement.”
The Bayan Khundii development highlights MMC’s broader strategy of balancing its coal operations with new ventures in precious metals, positioning the company for sustained growth. By combining domestic economic contributions with international market presence, MMC is strengthening its role in Mongolia’s mining industry while diversifying revenue sources.
