Misinformation that 30% share of “Erdenes-Tavantolgoi” JSC will be sold for USD 1 billion

2020-03-16
On 16 March 2020 “Erdenes-Tavantolgoi” JSC held a press conference. Coal exports were halted by a decision of the State Emergency Commission due to the spread of COVID-19 around the world. As a result of the disinfection process, coal export through Gashuunsukhait began today, said Gankhuyag B., CEO “Erdenes-Tavantolgoi” JSC.
 
This year “Erdenes-Tavantolgoi” JSC first time announced of the decision to distribute dividends. Despite providing information to shareholders by online, the number of citizens accessing to “1072 information center” is still large. From 02 to 16 March 825 citizens personally visited the “1072 information center”, also 4050 people contacted with special phone line 1800-1072. Thus, since the “1072 information center” was opened, about 28,152 citizens have received personal services, and 63,572 people have received information by calling 1800-1072. Besides, over 20,000 people visited an official Facebook page of 1072 information center.
 
Frequently asked questions answers on dividends:
Dividends shall be provided by applicable law from May 1, 2020. The dividends will be credited to the active bank account of the citizen. The citizen should request to the brokerage company where his/her share account is opened and register his/her bank account for dividends.
 
After 1072 shares of “Erdenes-Tavantolgoi” JSC are open on the domestic stock exchange, inheritance and gift rights will be opened by "Revised procedure for granting and passing securities ownership rights to others" of the Financial Regulatory Commission of Mongolia. 
 
A citizen can receive shares through an inheritance, on the basis of documents such as: a certificate of inheritance, an heir identification card or other identification documents, a death certificate of the deceased, a statement of the heir and a receipt of payment of commission fees.
At the end of the press conference, Gankhuyag B., CEO of “Erdenes-Tavantolgoi” JSC answered questions from journalists. 
 
-Some politicians say that 30% of Tavantolgoi will be sold for USD 1 billion. It's true? 
-This misinformation. We received recommendations from some state organizations on financing the infrastructure and the construction of the railway of Tavantolgoi. Regarding this recommendation and direction, we are exploring integrated development issues of the Tavantolgoi deposit. The company made the calculations for the necessary projects, such as railway, road, coal washing plant and water supply. 
 
We are working on all the calculations to find out how to solve investment issues, on which projects we need to attract investments, how much capital we can raise through an IPO, how much of them we can earn ourselves, how much preparation work we need. We are doing a more thorough investigation. The government believes that the “Erdenes-Tavantolgoi” JSC is currently operating profitably and can make a basis on its funds without launching an IPO. Khurelsukh U., Premier minister of Mongolia clearly stated that "Under this government, will not allow the launch of an IPO."
 
-Citizen Mr. Naranbaatar said that Strato company, which is related to Enkhbold Z., is getting cheaper coal from “Erdenes-Tavantolgoi” JSC. Please provide more information about this? 
-I do not know that the Strato company is related to Enkhbold Z. It is not matter to “Erdenes-Tavantolgoi” JSC. We have a policy of cooperation with domestic enterprises to support. And as part of this collaboration, companies such as Strato and Ikh Gobiin Ilch concluded a sale agreement. But at the market price! Strato company concluded an agreement twice in 150 thousand tons coal. Our company terminated the first agreement with Stato and according to by agreement took a guarantee payment because the company did not fulfill its contractual obligation.
 
-Have you conducted a secret coal contract with Bodi International LLC?
-There is nothing to hide. You all know that, the construction of the Tavantolgoi-Gashuunsukhait railway is one of the priority projects for “Erdenes-Tavantolgoi”. We spend on transportation of 1-ton coal USD 32 by road, if we build a railway it will cost USD 8. These monetary differences will remain in Mongolia and “Erdenes-Tavantolgoi” JSC. In other words, dividends will be increased. Therefore, it is urgent to build the Gashuunsukhait railway. Six, seven years, this work was suspended due to politics. We move this project. About 1 billion dollars are needed for the construction of the Gashuunsukhait railway. We work with a company that will buy coal and invests in a railway project. This means we will have a stable buyer for the long term. Coal will be sold at market value. Besides the Gashuunsukhait railway, we invest in the Zuunbayar railway. 
 
In the end, I would like to say that we are planning mega-projects that require tremendous effort and time, in the connection we ask you not to believe gossip and wrong sources.
 
We ask you to take information on distributing dividends from official 5 sources: 
  • Company’s website www.ett.mn, 
  • Official Facebook page of 1072 information center,
  • Special phone line 1800-1072,
  • ETT application, 
  • by send message to 158989 number.