The USD 350 million debt of Erdenes Tavan Tolgoi JSC owing to Aluminum Corporation of China Limited (CHALCO) was repaid completely. This enables the Mongolian government to reap the benefits of coal exploitation at the East and West Tsankhi deposits of Tavan Tolgoi mine as the coal mining revenues will be added to the government budget 100 percent, said Mr D.Ariunbold, CEO of Erdenes Tavan Tolgoi company, on Thursday, March 30.
The Mongolian government had paid USD 240 million to CHALCO as of last October, and remained liable for USD 110 million more. Remnant of the debt was repaid within seven months. Thanks to wise management and government directions toward commencing exploitation in the West Tsankhi and open auction on coal, this became possible.
Erdenes TT expects to mine 11.5 million tons of coal and to make revenue of USD 550 million. The company extracted 2.8 million tons and exported 2.2 million tons of coal so far in 2017.
The Prime Minister has given an obligation to repay debts and distribute payables to the citizens for respective 1,072 shares of Erdenes TT company. In case the coal price will be stable for a longer period, the distribution is deemed possible to be launched within this year.