ETT, a joint stock company where every citizen of Mongolia is a shareholder and operated the largest undeveloped coking coal mine in the world celebrated its 10th anniversary on December 23, 2020. ETT has evolved very successfully in the past 10 years and contribution of ETT to Mongolia’s economic growth and development vastly increased.
Briefly mentioning some of the major accomplishments, “Erdenes Tavantolgoi” JSC developed “A6-20” mid-term business plan to establish a Mining-Infrastructure-Industrial Complex in the vicinity of Tavantolgoi deposit in line with policies and documents approved by the state. Successful implementation of the “A6-20” business plan for 2021-2025 of ETT JSC will result in complete utilization of mineral resources, adoption of cost-reducing infrastructures, production of value-added products, increased revenue as well as increased dividends for the citizens, enterprises and the state budget.
According to the business Plan, 20 large projects such as Coal Concentrator, Water Supply, Power Plant and Conveyor System will be implemented by 2025. These projects will generate annual sales revenue of MNT 7 trillion and a net profit of USD 1 billion. In 2016-2020, six development milestones were highlighted and defined as “Achievement-6”, including conducting company valuation, building a solid business foundation, increasing financial capacity, initiating projects’ construction, and restoring the confidence in shareholders and entrepreneurs, and rebuilding the company’s public reputation.
The revenue of “Erdenes Tavantolgoi” JSC reached USD 1 billion in end of 2019, making the highest revenue producing state-owned company in Mongolia, which makes one of our greatest achievement.
ETT JSC has successfully measured the performance of the annual plan between 2016 to 2020 and the performance rate was 87% in 2017, 92% in 2018, and 93% in 2019. However, the performance rate was 81.2% at the end of the 4th year in 2020, due to the negative impact of the pandemic and the planning performance was assessed as “sufficient”. In the previous years, 109 of 150 planned projects were successfully completed.
We introduced ISO 9001:2015 Quality management systems, ISO 45001:2018 Occupational health and safety management systems and ISO 14001:2015 Environmental management systems into our operation. We also increased salaries by up to 25% and have made significant progress in improving the working environment and social protection for our employees.
For the first time in Mongolia, “Erdenes Tavantolgoi” JSC has successfully launched three-phased trading of “ETT Bond” with a total value of up to 2 trillion MNT in order to implement major projects and finance working capital. The bonds were offered for sale with an interest rate of 10% for local currency and 6.8% for U.S dollars. The first phase tranche of the bond was organized between March 30 and April 9, 2021, raising MNT 677.7 billion. It means that the planned target of MNT 600 billion has been exceeded 13 percent. The nominal unit price is MNT 100,000 and USD 100 and 973 individuals and companies participated in the trading. The first phase of trading was for the domestic investors, while the second and third phases are expected to attract more foreign investors.
I would like to emphasize the importance of the hard work and involvement of many contractor and subcontractor companies and their employees.
We wish you success in your work!
Gankhuyag B., Chief Executive Officer of “Erdenes Tavantolgoi” JSC