Deputy Director of Erdenes Mongol G.Ganbold reported that thecompany will be working in cooperation with Erdenes Tavan Tolgoi and the Ministry of Finance to resolve concerns about citizen held shares in Erdenes TT, and promised that measures would be taken to address the registration of all company shareholders. The statement by the Deputy Director was made during the “Privatization in Mongolia: Opportunities and Lessons from Past Mistakes” session of the Investor Nation forum. MPs L.Enkh- Amgalan and Ch.Khurelbaatar, as well as economist R.Amarjargal and attorney L.Naranbaatar also participated in the discussion about the 1,072 shares of the company issued to each Mongolian citizen.
Former Prime Minister Su.Batbold’s administration provided each Mongolian citizen with 1,072 shares in Erdenes Tavan Tolgoi. The decision has become a hot button issue in political spheres and among the general public since its inception.
Erdenes Mongol is responsible for managing the Mongolian government’s shares in the nation’s mining assets, including Oyu Tolgoi LLC, Erdenes Tavan Tolgoi JSC, Baganuur JSC, and Shivee Ovoo JSC. As a result, Erdenes Mongol could act as a key catalyst in improving the shareholder rights of citizens.
G.Ganbold promised that a significant measure to resolve the issues surrounding the citizen held shares will be taken within the next three months.
“By completing the registration of Erdenes TT shareholders, every shareholder will be able to receive company dividends starting in 2018,” stated G.Ganbold.
In light of recent news that Erdenes TT has paid off its debt to the Aluminum Corporation of China Limited (CHALCO), there have been talks of a potential IPO offering. The Deputy Director addressed this by saying that the first priority of the company is to complete its shareholder registration and to repay its remaining debt.
“We might start preparation for an IPO beginning in 2018. Of course, in order to have an IPO, we need to fulfill certain financial and operational requirements,” said G.Ganbold.
The Deputy Director also mentioned that Erdenes TT still has a long way to go before fulfilling the requirements put forth by the major stock exchanges around the world, and said that an IPO would certainly take some time to prepare.