Erdenes Tavan Tolgoi won’t release IPO

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During its irregular meeting on April 27, Cabinet discussed urgent and timely issues.

Cabinet decided to repeal the second provision of Resolution No. 296 on measures to Erdenes Tavan Tolgoi JSC adopted in 2019.

In order to increase investment in accordance with the recommendations of the National Security Council of Mongolia (NSCM), the government of Mongolia issued Resolution No. 296 in 2019 to launch Erdenes Tavan Tolgoi’s IPO on the stock market. However, Cabinet considered the resolution has been clearly distorted for political purposes.

Prime Minister U.Khurelsukh instructed to anticipate and pay special attention to the possible difficulties in the railway sector due to the repeal of the provision of the resolution to the relevant ministers.

Cabinet backed a draft letter of exchange on the extension of the General Agreement between governments of Mongolia and the Republic of Korea on loan from the Economic Development Cooperation Fund (EDCF) for 2017-2019.

Minister of Finance Ch.Khurelbaatar was given approve to sign the letter on behalf of the government of Mongolia.

Within the framework of the agreement, the Mongolian government received a soft loan equaling 700 million USD with an annual interest of 0.2 percent, 30 years of repayment term and a 10-year grace period.  With the loan, a total of 15 projects have been effectively implemented.

The agreement term, which ended on December 31, 2019, is extended until the end of 2020.

Misheel Lkhasuren