Beijing: The Mongolian government has decided to build the country's first oil refinery by 2015, Xinhua reported.
The state-owned refinery in the central Darkhan province will be built by Japan's Toyo Engineering Corporation with Mongolian companies as sub-contractors.
It will be able to process two million tonnes of crude oil per year.
Mongolia will soon start negotiations with Japanese banks to obtain loans for the refinery.
Mongolia has no oil refining industry. Around 90 percent of the petroleum products it consumes are imported from Russia.