Iron concentrate trade begins
- By Amarjargal Munkhbat -
- Sep 18,2023
On September 15, Mongolian Stock Exchange JSC has started the first trading of iron concentrate after expanding the mining products exchange.
Mongolrostsvetmet and Darkhan Metallurgical Plant are scheduled to sell a total of 78,800 tons of iron concentrate in three rounds of trading. As for the minimum asking price, concentrate with 58 percent content is 56 USD, and iron concentrate with 65 percent content is 90 USD to 93 USD. By the resolution of the Board of Directors of Mongolian Stock Exchange, “Procedures for establishing and implementing standards for trading contracts for iron ore and concentrates” have been approved, and Mongolrostsvetmet and Darkhan Metallurgical Plant have been registered as sellers and signed contracts.
After that, the government announced that it was preparing to trade silver and copper on the exchange. Minerals traded on the exchange will be taken out through a special border crossing.
Manager of Copper and Metal Group of Erdenes Mongol LLC Ts.Tugsbuyan said, “Erdenes Mongol is starting the process of trading mining products at international market prices, including trading of iron ore for the first time with the help of MSE. We export three types of iron ore concentrate. In 2023, more than one million tons of iron ore concentrate is expected to be traded on the exchange. Currently, seven batches of 21,000 tons of iron concentrate with a content of 65 percent have been ordered for trading. I would like to express my gratitude to the management and colleagues of MSE for their support until this day.” Executive Director of Darkhan Metallurgical Plant G.Dugarjav stated, “We are witnessing the historical process of trading iron ore concentrate on the stock exchange for the first time in Mongolia. The main advantage of trading products on the exchange is that the product is sold at a higher price than the nominal price. Previously, we used to charge 50 percent of the base price for our trades, but by trading our products on the Mongolian Stock Exchange, we have a huge advantage of 100 percent settlement and increased cash flow. At the same time, by creating an open and transparent market system for the circulation of wealth in the economy, MSE is bringing great progress to the country’s economy.”