Ulaanbaatar
Copper Concentrate Set to Be Traded through Mineral Commodities Exchange
Economy
Ulaanbaatar, March 19, 2024. /MONTSAME/. The Government's decision to trade copper concentrate on the exchange was issued in February of this year. The Ministry of Mining and Heavy Industry and Erdenet Mining Corporation SOE held a meeting on March 18, 2024, at the Tuushin Hotel to introduce the trading conditions of copper concentrate to foreign and domestic investors and other stakeholders. Issues related to the trading of copper concentrate on the exchange such as accreditation, laboratory and warehouse capacity, and spot and forward trading were discussed at the meeting.
As of the end of last year, 14.9 million tons of coal and 604.8 thousand tons of iron concentrate were traded on the exchange, with total sales of about USD 2.2 billion.
The Law on Mineral
Commodities Exchange is being implemented in Mongolia for the
second year. In the past, coal, iron ore concentrates, and fluorspar
concentrates were traded electronically on the exchange. As a result, the price of the minerals
increased. Also, the physical volume of exported mining products and budget
income increased, and commodities exchange trading played a vital role in achieving
the mining and export plans.
Currently, Erdenet Mining
Corporation SOE and Oyutolgoi Company export copper concentrate, and
as Erdenet Mining Corporation SOE has already
established a long-term contract for the sale of copper concentrate, the
Corporation can sell 5-10 percent of its copper concentrate through the
exchange in the first stage. It will increase to 20-50 percent in the following
years.
As for Oyutolgoi Company, it also has signed a long-term contract for this year, so the company will start trading its copper through the exchange next year.
Director of the Operations Department of the Mongolian Stock Exchange JSC, Javkhlan said that besides coal, the Mongolian Stock Exchange started trading iron ore concentrate last September. Therefore, it is now technologically and infrastructurally ready for the trade of copper concentrate.
Today, more than 270 buyers are registered in the electronic trading system of the Mongolian Stock Exchange, of which more than 90 percent are from China, and the rest are from Kazakhstan, Hong Kong, and the Republic of Korea, according to Ms. Javkhlan. She noted that the number of buyers will increase once copper concentrate is traded and that the first proposal was submitted by the Mercantile Exchange of Vietnam.
