The Government of Mongolia to allocate 1,072 shares of “Erdenes Tavan Tolgoi” per citizen
The amendments and additions to the 39th resolution of the State Great Khural (Parliament) of Mongolia on matters of the Tavan Tolgoi Coal Mine Usage were ratified with a 76.1% vote of the Parliament members yesterday on February 16, 2012.
With the ratification of the draft resolution, the citizens are to own 20% of the “Erdenes Tavan Tolgoi” shares for free, where private entities are to purchase 10% of the total shares at the nominal price. Regarding the civilians’ shares, if a citizen turns the allocated 1,072 shares into money (MNT), the Government of Mongolia
will purchase the package (1,072 shares) at a price of 1 million MNT, i.e. it is the citizen’s choice whether to take the 1 million MNT or keep the 1,072 shares.
There were some doubts from several Parliament members about the distribution of money to citizens from the advance loan of 250 million USD by the “Erdenes Tavan Tolgoi” would affect the devaluation of the “Erdenes Tavan Tolgoi” shares on the international stock market. However, the draft resolution was ratified and the Chairman of the Economics Standing Committee of the Parliament R.Bud gave an answer to this issue, saying “Erdenes Tavan Tolgoi Company owns 5 licenses. Therefore, there is no problem in releasing the “Erdenes Tavan Tolgoi” shares on the international market
. The associated officials have set the market price for the company to be at 6.1 billion USD. Also, 50% of the citizens are interested in receiving the shares in the form of money.”