Special Regime at "Erdenes Tavantolgoi" JSC to Continue for Six Months

2023-11-30 11:23:31

Ulaanbaatar, November 30, 2023 /MONTSAME. During its regular meeting on November 29, the Cabinet made a decision to continue the special regime on Erdenes Tavantolgoi" JSC for another six months considering the need to stabilize the company's operations, creating conditions for normal and stable operation in the future; stabilize the sale of coal through the stock exchange for stimulating the country's economy; improve the company’s governance by forming the company's authority with qualified and competent experts; and increase the company’s efficiency and profitability.


State Secretary of the Ministry of Finance J.Ganbat  was appointed again as the authorized representative of the Government who will have full authority to represent the company over the period of the special regime.


Throughout the one year of the special regime, 32.8 million tons of coal worth USD 3.3 billion were sold and MNT 3 trillion was paid in taxes to the budget.


Concrete actions and measures were taken by the authorized representative of the Government in "Erdenes Tavantolgoi" JSC, in order to ensure the implementation of the Government's Resolution No. 362 and 385 of 2022, to optimally organize coal mining and transportation, to increase sales and exports, to ensure open transparency of operations, to trade coal on the commodity exchange under border conditions, and to implement necessary projects. These include:

 - Selling coal on the exchange under border conditions, resulting in increased prices and sale of coal.

- By improving the organization of coal transport and supporting the operations of transport companies, the amount of taxes paid to the budget has increased.

- The terms of the coal sale contract were changed from mine mouth conditions to border conditions.

- The cost of mountaintop removal operation was reduced.

- The company's debts were settled and profit increased.

-  To ensure transparency, project contracts classified as confidential were made public.

- Worked on intensifying the implementation of projects aimed at increasing the mining capacity and value-added production, and reducing costs and expenses.

- Cases of possible violations of the law were submitted to the corresponding inspection and legal organization.


Related news