Our company, "Arvinkhad" LLC, is the first private company in the gypsum sector established in 2002. The company is engaged in mineral resources activities such as extraction of gypsum at Unegt deposit located 110km from Sainshand city of Dornogovi province. Gypsum is the main raw material which fixes the drying time of cement. The company has expanded its operation since 2014 and at present it has the capacity to mine 5000-7000 tons of gypsum annually reaching sales revenues of 200-250 thousand USD and contributes taxes and other revenues worth of 40 thousand USD to the state budget.
The licensed area of Unegt deposit covers about 74 hectare land with the permission to exploit the area until 2037. Prospecting and explorations made at the licensed area have determined 252210.17 tons of gypsum reserve and the respective ministries and agencies have approved the reserve update assessment made in 2016, and the updated feasibility study developed in 2015, and the amendment to the comprehensive environmental assessment made in 2017 ensuring their legal basis. It has the potential to update and raise the reserve assessment further according to business needs and demands in near future.
Recent years the government of Mongolia adopted a policy of actively promoting national cement production sector with multiple new projects and programs under implementation in view of the further favorable trend thereof. A reliable study demonstrates that cement use in Mongolia climbed to 2 million tons and our major partners with long time cooperation traditions with us such as "Khutul cement and lime" company, "Moncement building materials" LLC, "Munkhiin bayan gal" LLC, "Nalgar tushig" LLC, "MGL cement" LLC have been actively operating in the sector. Total annual demand of these factories for gypsum is about 100 thousand tons. In comparison to Taragt gypsum deposit of Dundgovi province and imported gypsum our gypsum deposit is located near to a railway station and we have the full potential to create many advantages in terms of product prices and quality by introducing new crusher equipment.
Our mission is to meet the increasing market demands and needs basing on the reserves of Unegt deposit and to become the leading supplier company in gypsum sector by introducing new equipment and technologies. The first goal to reach this mission is to raise our annual capacity of gypsum mining to 30000-40000 tons and to maintain stable and regular supply of products which meet all quality requirements.
Therefore we invite you, as an investor to cooperate with us in fulfilling this goal and reach the mission.