Minimum profit from Tavan Tolgoi will reach US$5.5 billion

MPRP group meeting at the State Great Khural held and discussed the issue on Tavan Tolgoi Investment Agreement and its following documents. MP D.Zorigt, Minister for Mineral Resource and Energy, made press release on the decision. The Government made two alternatives on Tavan Tolgoi operation.

First, the state owned company will be established on its 3.5 billion tons of reserve section, with 100% ownership of the state. Its operation will be managed by top managers and it will export 15-30 million tons of coal annually. Also it will develop other processing industries through coking coal production in Mongolia.
According to MP D.Lundeejantsan, more than 10% of Tavan Tolgoi shares will be distributed to the people of Mongolia evenly, according to the Law on Human Development Fund. The party group prefers that not less than 10% of the deposit will be sold at the Mongolian Stock Exchange, according to the Mineral Law of Mongolia, in order to form the opportunity to acquire the shares for 35 thousand companies and people of Mongolia.

Second, the remaining 3 billion tons of reserve can be offered for the foreign investors, considering the geopolitical situation, transit transportation, pre-payment and advance development of infrastructure. The shares will be written for the citizens of Mongolia on their bill of Human Development Fund.
MP D.Zorigt, Minister for Mineral Resource and Energy, gives details on the issue.

Q: Can you give us more detailed explanation on the share issuance?

D.Zorigt: A state owned company will be established on Tavan Tolgoi and its shares will be distributed to citizens of Mongolia evenly, according to the Law on Human Development Fund. Not less than 10% of the company shall be sold at the Mongolian Stock Exchange, according to the Mineral Law of Mongolia. Based on this opportunity, over 35 thousand companies can participate in the management of the company through acquiring its share. Due to geopolitics and infrastructure matters, the remaining reserve will be managed by the domestic and foreign investors. Selection will be conducted on transparent basis. The Request for Proposal was proposed to the State Great Khural. Trading and marketing company will be selected according to the certain requirement. We are studying investors’ proposal. The negotiation continues.
As the result of the successful implementation, “Erdenes MGL” shall become powerful and competitive company, which can raise fund at the world capital market, not only to distribute shares to the people of Mongolia.

MPRP group meeting at the State Great Khural held and discussed the issue on Tavan Tolgoi Investment Agreement and its following documents. MP D.Zorigt, Minister for Mineral Resource and Energy, made press release on the decision. The Government made two alternatives on Tavan Tolgoi operation.

First, the state owned company will be established on its 3.5 billion tons of reserve section, with 100% ownership of the state. Its operation will be managed by top managers and it will export 15-30 million tons of coal annually. Also it will develop other processing industries through coking coal production in Mongolia.

According to MP D.Lundeejantsan, more than 10% of Tavan Tolgoi shares will be distributed to the people of Mongolia evenly, according to the Law on Human Development Fund. The party group prefers that not less than 10% of the deposit will be sold at the Mongolian Stock Exchange, according to the Mineral Law of Mongolia, in order to form the opportunity to acquire the shares for 35 thousand companies and people of Mongolia.

Second, the remaining 3 billion tons of reserve can be offered for the foreign investors, considering the geopolitical situation, transit transportation, pre-payment and advance development of infrastructure. The shares will be written for the citizens of Mongolia on their bill of Human Development Fund.

MP D.Zorigt, Minister for Mineral Resource and Energy, gives details on the issue.

Q: Can you give us more detailed explanation on the share issuance?

D.Zorigt: A state owned company will be established on Tavan Tolgoi and its shares will be distributed to citizens of Mongolia evenly, according to the Law on Human Development Fund. Not less than 10% of the company shall be sold at the Mongolian Stock Exchange, according to the Mineral Law of Mongolia. Based on this opportunity, over 35 thousand companies can participate in the management of the company through acquiring its share. Due to geopolitics and infrastructure matters, the remaining reserve will be managed by the domestic and foreign investors. Selection will be conducted on transparent basis. The Request for Proposal was proposed to the State Great Khural. Trading and marketing company will be selected according to the certain requirement. We are studying investors’ proposal. The negotiation continues.

As the result of the successful implementation, “Erdenes MGL” shall become powerful and competitive company, which can raise fund at the world capital market, not only to distribute shares to the people of Mongolia.

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