DETERMINING THE SUITABLE LOCATION FOR THE METALLURGICAL AND STEEL PROCESSING INDUSTRIES IN MONGOLIA USING GIS-BASED MULTI-CRITERIA ANALYSIS METHODS

Abstract. The metallurgical and steel processing industries are considered strategically important industries as they form the basis of a country's industrial competitiveness and sustainable economy.

Recently, the value of minerals and demand for metals are increasing. Thus, it is essential to build a metallurgical and steel processing factory in Mongolia based on the needs of national consumption and neighboring countries market demand. Therefore, it is crucial to select a suitable geographical location for any industrial regional development based on scientific, spatial analysis and estimation. The main goal of our research study is to use MCDA and AHP methods based on GIS including natural conditions, resources, socio-economic factors and other related data to identify suitable locations for metallurgical and steel processing factories in Mongolia. In order to determine the suitable location for metallurgical and steel processing industries research team used multi criteria analysis method including the total of 28 factors: 7 factors based on mineral resources and natural resources; 4 infrastructure factors, 2 market factors, 8 socio-economic factors, and 7 natural constraint factors based on area where industries and activities are prohibited in accordance with the legislation of Mongolia. According to the research results, 9.8 percent of the total area is highly suitable, 22.7 percent is suitable, 22.4 percent is unsuitable, and 68.8 percent is constraint area for industrial and steel processing industries. The result of the study shows that our assessment is precisely overlaps (kappa coefficient = 0.84 ) with the location of existing metallurgical and steel industries and compatible with the regions where other projects and action program planning to build new industries in Mongolia.