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