Activities process of “Erdenes-Tavantolgoi” JSC
Ministry of Mining and Heavy Industry in co-operating with Mineral resources and petroleum authority organized an open door day event on September 25, 2019, at the Central Square.
More than 40 entities working in the mining industry, which accounts for 86 percent exports of Mongolia and one fourth of the country’s total budget revenue, are taking part to introduce their activities.
At the open day event, CEO of “Erdenes-Tavantolgoi” JSC Gankhuyag B., gave a report on the subsidiary companies of the Erdenes-Tavantolgoi and answered topical questions of journalists:
-Please introduce the brief information of “Erdenes-Tavantolgoi” JSC activities in 2019.
-Our company plans are currently achieving high results. As of September 23, production reached 13.1 million tons which exceeded the plan by 102 percent, sales revenue reached $ 2.1 trillion, 135 percent more than planned. As of August 31, allocated in the state budget MNT 467 billion from the net profit MNT 677 trillion in the first half of the year, an increase of 202%.
|
|
Performance |
Plan |
Completion percentage |
|
Production |
13.1 million ton /As September 23/ |
12.9 million ton |
102% |
|
Sales revenue |
MNT 2.1 trillion / As September 24/ |
MNT 1.5 trillion |
135% |
|
TAX |
MNT 467 billion / As August 31/ |
MNT 355 billion |
159% |
|
Net profit |
MNT 677 billion / As June 30/ |
MNT 294 billion |
202% |
-Please introduce the brief information on the activities performed by the Government.
-By a government Resolution No.135 of 2019, decided to give 66 percent of shares of “Tavantolgoi Railway” LLC to “Erdenes-Tavantolgoi” JSC. For the implementation of this project requires about USD 690 million. Our company is financing a railway construction project from Tavantolgoi to Zuunbayan with MNT 156 billion and also, a total of MNT 750 billion of financing will be made through purchasing securities of the Mongolian Railways Company.
Also, by a government resolution “Erdenes-Tavantolgoi Mining” LLC was established under “Erdenes-Tavantolgoi” JSC as a subsidiary and commenced its operations. A subsidiary company can offer up to 30% of the company’s shares to investors through a foreign stock exchange, and the head company will own 70% of the shares.
-How about the process of implementation of other supporting projects?
-In the future, new roads will be built in the direction of Tavantolgoi-Gashuunsukhait and Tavantolgoi-Khangimandal. These works will be carried out following the concession agreement, the investments have been resolved, and the construction project is being completed.
