Ulaanbaatar
ETT needs registration at Stock Exchange to move its stock
PoliticsUlaanbaatar /MONTSAME/ Yesterday, a discussion on ‘The ways to move Erdenes Tavantolgoi stock” was organized by ‘Changer’ economic journalists’ club. There is a rough estimation that 80 per cent of the total 10 billion shares of ‘Erdenes Tavantolgoi’ company (ETT) are owned by government, of which 14 per cent by citizens and 0.6 per cent by national companies.
“It is difficult to calculate exactly how many citizens now own 1072 shares of ETT as the government bought shares from students for their tuition and also bought from elders in cash of MNT1.5 million as well as right to own the share has not yet been formalized for citizens, who were born since March 31, 2011” said chief specialist in charge of shares of ETT Ts.Tsendmaa. "The future of 1072 shares will depend on the result of investment agreement talks on developing TavanTolgoi" she noted.
“- Even though TT deposit has a reserve of 7.3 billion tons of coal, infrastructure has not developed there and needs USD300-400 million for the development. It is impossible to raise such capital from domestic investment. Trading ETT shares at international exchange stock will cost high”.
The guests of the discussion agreed that first of all ETT should be registered to the Mongolian Stock Exchange and make IPO to enable citizens to inherit or trade their shares.
Chairperson of the Board of director of the Mongolian Association of Securities Dealers B.Ulziibayar said “- ETT should work following company principles. In other words, citizens will benefit from the shares when professional team works in the company, not depending on politics. The share owners still have no right to sell, buy or inherit the share, as if they do not own them. It is time to settle it”.
Financial data of ETT shows that it has a debt of USD76 million to Chinese Chalco and USD200 million to the Development Bank. ETT is expected to gain more income due to coal price increase and to pay up of the loan to Chalco within the first quarter of 2017.
