Gankhuyag Battulga, CEO of Erdenes-Tavantolgoi JSC today, March 10, delivered a press briefing to give update on some timely issues.
On March 9, the state-owned company’s board of directors convened and approved a business plan ‘A6-20’ defining the company’s growth goals and targets in coming years. As stated in the plan, Erdenes-Tavantolgoi JSC will implement 20 large-scale projects until 2025, including development of coal concentrate, Tavantolgoi power plant and a water supply project, achieving huge growth.
As a result, annual coal production of the company will hit 45 million tons, sales revenue will grow up to MNT 10 trillion with net profit reaching MNT 3.7 trillion and dividends totaling about MNT 700 billion will be distributed in a year and job places created by Erdenes Tavantolgoi will increase to 5,500. According to Gankhuyag, a citizen holding 1,072 shares of the company will become entitled to receive around MNT 669,000 as dividends between 2023 and 2025.
The company’s board also held another meeting on February 19 and made a decision that it would not pay dividends from the net profits it earned in 2020. However, the final decision will be approved by a forthcoming shareholders’ meeting.
The COVID-19 pandemic has interrupted the operations of the Erdenes-Tavantolgoi JSC in 2020 by a considerable amount. The company’s annual financial result for 2020 showed that Erdenes-Tavantolgoi JSC’s coal production reached 13.1 million tons and sold 11.9 tons of coal, earning MNT 1.6 trillion as sales revenue and MNT 161 billion as net profit.
If dividends will be paid from its net profit of MNT 161 billion, each citizen owning 1,072 shares will receive around MNT 12,000. As a comparison, the company paid MNT 96,480 to each holder of 1,072 shares last year.
“Erdenes Tavantolgoi JSC has gained parliament’s approval for partial IPO to sell some of its stocks on international markets in order to carry forward its development projects. Now, the company will issue bonds on the domestic market to raise fund” said CEO Gankhuyag.
Some MNT 2 trillion worth of bonds will be issued, as planned by the company, which has submitted its request to the Financial Regulatory Commission and Mongolian Stock Exchange on March 5 to issue bonds amounting to MNT 800 billion in the first phase for the implementation of major projects such as construction of strategically important railways, coal processing and thermal power plants.
The state-owned “Erdenes-Tavantolgoi” JSC was established on December 23, 2010 under the respective decisions of the State Great Khural and the Government for the purpose of utilizing the Tavantolgoi deposit for the benefit of the citizens of Mongolia. The main objective of “Erdenes-Tavantolgoi” JSC is to put strategically important coal deposit into economic circulation, conducting mining operations and implementing infrastructure projects according to Law on Minerals.