A brief history of Tushig-Uul JSC

In 1977-1978, the Russian Geological Exploration Expedition carried out geological exploration and research works on the territory of the 3rd bagh of Darkhan soum of Darkhan-Uul aimag, the quartz sand deposit currently owned by Tushig-Uul JSC, and discovered quartz sand clusters and accumulations with a huge amount of resources, carried out chemical-physical-mechanical experiments and researches in the Building and construction materials production laboratories of Moscow, and within the framework of the technical cooperation grant of Soviet Union at that time, complete hydro-quarry plants were constructed and started their operations in 1980-1984, and handed over to Mongolia. Moreover, the sand and gravel mixture of this deposit is used as raw material for building manufacturing plants, large steel and concrete manufacturing plants, and large cities and settlements such as Darkhan, Erdenet, Ulaanbaatar, Baganuur, Baruun Turuun of Uvs aimag, Khairkhan of Arkhangai aimag, etc., produced the ferro-concrete articles and parts on a huge scale, and between 1980 – 1990, the road construction, engineering buildings and facilities, and residential buildings were constructed only with quartz sand from the
Hydro-quarry plant owned by Tushig-Uul JSC. The Quality Standards Department of that time highly evaluated the quartz sand quality and standards of the factory and awarded the high quality gold medal twice. The sand factory of Tushig-Uul JSC is the only one operating in Mongolia. It cleans and cradles and enriches the quartz sand, producing the 50,000 m 3 to 200,000 m 3 per year and supplies them to concrete factories, construction and building materials factories, highways, and engineering structures in accordance with international standards and selling one m 3 of sand in the market for MNT22,500. The two Zemsnaryad (land equipment rus.) factories manufactured in Russian Federation, and the total capacity of the factory is 300,000 m 3 of sand per year. Besides of being supplied with 10,000 kW high-voltage power, the plant also has 2 km of railway, a branch railway for loading sand into 40 semi-trailers at a time, loading and unloading machinery, an office building, an employee cafeteria, a 5-car garage, a lathe machine, a repair and mechanical workshop, warehouse building for storing spare parts and inventory, a guardhouse, a large storage area for products, 20 hectares of land for sufficient and free
production activities, and 80 hectares of quartz sand deposits. Quartz sand reserves are currently estimated at 3,000,000 m 3 . In case if the capacity of the hydro-quarry pump is increased and the length of the suction nozzle from the lake depth is extended to 40-60 m, it is fully possible that the total reserve of the deposit can reach up to 12,000,000 m 3 . Furthermore, it is possible to obtain additional permits and licenses for sand deposits.

Company advantages:

 
1. The quartz sand deposit is located in the Kharaa river valley has abundant natural resources.
2. The deposit is extracted using modern equipment and technology. It is fully possible to renew the equipment and technology with Western European technology and increase
the capacity by 2-3 times.
3. The only factory that cleans, cradles, and concentrates the quartz sand using modern technology (competent factory has not yet been constructed)
4. The road, engineering facilities, public housing, private apartments and housing are built in Mongolia with foreign and domestic investments, and thus, the demand for quartz sand is increasing tremendously.
5. It has the advantages that the deposit is located between Darkhan, Erdenet, Selenge and Ulaanbaatar cities.
6. The company's products can be sold freely by road and railway.
7. It is fully possible to construct factories for concrete structures and products, build a concrete batching plant, and construct a railway concrete pillow plant, produce
reinforced concrete structures, components, raft footings, columns, and beams for road bridges and engineering buildings on the sand deposit.
8. It is located 60 km from the cement factory.
9. It is fully possible to construct a residential block in the industrial area.

Disadvantages of the plant:

1. The sand and gravel suction pump of the factory is manufactured in Russian Federation and wears out quickly and has low economic efficiency. Should be replaced with a high-capacity pump from the European Union
2. The lack of wagons for transporting sand affects the sale of quartz sand in cities such as Erdenet, Ulaanbaatar, Sainshand, Zamiin-Uud, and Baganuur.
3. In addition to manufacturing and producing the reinforced concrete, concrete structures and articles from the quartz sand, the lack of modern technology to manufacturesidewalks and other building structures and articles has a negative impact on the company's profits and finances.

Company management:

Tushig Uul JSC first became a joint-stock company on the Mongolian Stock Exchange in 1993, and the company's chairman J. Bayaraa, together with his family and siblings,
purchased 90% of the company's total shares in the Mongolian Stock Exchange and J.Bayaraa has been working as a Chairman of the Board of Directors and his younger
brother J. Batsaikhan as an Executive Director.

The remaining 10-12% can be negotiated with other shareholders and purchased through the Mongolian Stock Exchange.