Энэ 7 хоногт
Head of Parliament TT taskforce .
Enclosed please find your Frontier financial markets summary for July 20, 2010 featuring our report on interview by Head of Parliament TT taskforce .
Frontier Securities
Frontier Financial Markets Summary
Dear subscribers,
Enclosed please find your Frontier financial markets summary for July 20, 2010 featuring our report on interview by Head of Parliament TT taskforce .
As always, if you have any feedback, suggestions or comments that you would like share with us please drop me a line at da@frontier.mn head of parliament tt taskforce: we have talked about mining tt for five-six years, we have won nothing by empty talk, arguments and fighting. coming fall session tt ia will be approved by parliament. approval of ot and tt is major achievement. we need to improve lives of people now, there are more deposits waiting.
Head of the Parliament TT taskforce MP D.Damba-Ochir has given interview on TT to major Mongolian portal gogo.mn on July 20,2010.
In it he says, “TT is to remain 100 % property of Mongolian people. According to law on Minerals, state will control up to 50% of strategic deposits discovered by state funded exploration.10% will be distributed to citizens and 10% will be owned by national enterprises.
Investment will be found by IPO-ing remaining 30 % on domestic and foreign exchange. While doing so, it does not matter whether specific investor is abroad on in the country, only TT shares will be bought by whatever principle that is used on international exchange to buy shares.
Suspicion is arising among our people that Chinese will own TT through HKex, there will be nothing left in Mongolia when IPO-ing through Hong Kong stock exchange.
It should be thought over and thoroughly whether this is by ignorance or deliberate playing with people’s minds. This could create misunderstanding and slow down the project.
Whatever exchange is used for IPO of 30 %, Chinese will not buy all of it. There is no such possibility. At the minimum, classical example of Board of Directors that protects right of shareholders, unites their various interests will be adhered to by international standards.
I repeat, 50% will remain in pure state control and license will be in state possession 100%. By being shareholders of TT, people of Mongolia will have right to supervise all process of mining TT and sales of its products.
We have talked about mining TT for five-six years, we have won nothing by empty talk, arguments and fighting. We need to improve lives of people now by putting OT and TT into production. There are more deposits waiting.
Approval of OT and TT is major achievement. It is understandable that there will be criticism. If afraid of criticism, nothing will be done.
It is to our advantage that we have parliament structure at this time of putting major deposits into production. Opportunity is before us to reach development not repeating worst examples of other countries, such as in Africa.
Coming fall operator company will be selected and it is instructed for the agreement to be approved by Parliament. Mongolian company can participate in cooperation in this operator’s work, this opportunity is open for them, besides owning 10 % of TT shares.
TT shares will be issued to all living people of Mongolia, for a start, in any case to 2.7 million people of Mongolia. Government will decide about citizens being born now and deceased citizens based on international standards.
Domestic companies will cooperate with foreign operator, research experience and if they reach the level of being able to replace foreign company, then operator companies should be sent away. In general, it is necessary for have foreign company work short term and first and foremost have domestic companies grow and raise.
It is necessary to actively establish major Mongolian mining companies during mining major deposits such as OT and TT, this is necessary for future development of our country.
I think international 11 companies that submitted applications might become one consortium or become one operator.There can be any kind of option for this company to invest, run production and sell to, “Erdenes-Tavantolgoi”, the head company, by adding certain cost. Or operator company can make also make sales and pay to “ Erdenes-Tavantolgoi”. In principle, Parliament has given its approval. Now all it remains is to negotiate and introduce to fall session. Actually, time is short.
“Erdenes Tavantolgoi” will not be foreign company invested. Only operator issue will be talked about with foreign company. Operator company will not own shares, its only duty is to extract with own technology, technical equipment and human resources.
It has been three years since establishment of Erdenes MGL, yet nothing has been done, which is so sad while private companies export coal from Ukhaa Khudag and small TT.
I expect extraction to start after two years. Removing soil is small in TT.”