Head of parliamentary working group on TT negotiations reports

Ulaanbaatar /MONTSAME/ The working group led by L.Erdenechimeg MP reported the results of their speculation on the draft resolution on Tavan Tolgoi mine development on May 5. Following conditions were detected while acquainting with 2014 financial statements of "Energy Resource" and its parent company, according to the MP. Power plant, coal washing plant, water reservoir, procurement and the cash under the Energy Resource LLC is under loan collateral at international banking institutions such as EBDR, FMO, DEG, BNP PAribas and TDB of Mongolia, worth USD 570 million, the assets that are considered as part of the USD 1 billion investments planned at Tavan Tolgoi mine development. Moreover, the shares of the “Mongolian Coal Corporation” (Luxemburg), “Mongolian Coal Corporation” Ltd (HK) owners of the Energy Resource LLC are under bond collateral worth USD 600 million of the parent company “Mongoliаn Mining Corporation” (Cayman Island), she said. One of the owners of Energy Resource LLC Energy Resource Corporation LLC and other related bodies such as Energy Resource Mining LLC and Trans Gobi LLC act as the financial guarantor for the bond payment. Energy Resource LLC, Energy Resource Corporation LLC, “Mongolian Coal Corporation” S.a.r.l (Luxemburg), “Mongolian Coal Corporation” Ltd (HK), “Mongolian Mining Corporation” (Cayman Island) all owning debts imposes the risks. Therefore, she said, working group concluded that those companies have to be assessed on their financial and legal performances on their operation for the last three years. Financial and legal analyses have to be conducted by internationally recognized consulting companies. "An official letter was sent to the Government and our working group is waiting for the reply," said Erdenechimeg.