Z.Enkhbold: Tavan Tolgoi to be resolved before SGK session ends
Z.Enkhbold, Head of the Standing Committee on Security and Foreign Policy shares his opinion on Tavan Tolgoi.
Q: The SGK started to discuss about TT issues in order for it to go through before the end of the spring session. The Government brought in a draft, let’s talk about that first?
Z.Enkhbold: First of all, TT itself is easy mine to exploit. The main issue is the selling process. The draft brought in by the government is an improved one but there are few changes that must be made during the discussions later on.
Q: For example, what changes are needed to be made?
Z.Enkhbold: First, Mongolians need to form a world standard company and its stock must be sold on international stock exchanges. Secondly, we need to connect to the potential coal market and our market should be open to those steel producer countries including Japan, South Korea, China, Germany and India. My view about the TT is to do what we can do which is exploiting and transporting the product to the buyer. When can deliver the coal to the border of China and we can deliver the coking coal to where it’s needed. Of course the coal of TT will either be used for Electrical power stations or steel factory.
Q: Can we produce the end product in Mongolia and add value to the product?
Z.Enkhbold: Yes we can, we should think about adding as much as value to the product. We can produce electricity with coal and sell it to Erdenet and produce coke with the coking coal and sell it to the counties mentioned earlier. These are the things that we should target but questions arise on how to do them. We can’t produce coke that will meet the standards of international steel factories. We don’t even know how to do it because it is a very specialized business. Importer countries should help us to build the factories and on return we would deliver the coal to their country.
Q: The Government is talking about distributing TT shares to the citizens?
Z.Enkhbold: That is the next step as the cake is not ready yet. When it’s ready it can be easily cut and divided. To exploit TT we need large amount of money first. Then, when it is profitable we can distribute shares but if not profitable it is impossible to distribute shares with no value. The Government holds the license for TT therefore the Government should produce the right management and by combining with the private sector should create world’s standard stock holding company.
Q: The Government holds the license of TT but don’t you think the Government is a bad manager?
Z.Enkhbold: It is up to them but even if the government has bad management it doesn’t mean it will just give the license to private businesses. There are many alternatives and the Government should choose the best option.
Q: The Government also talked about dividing TT into two parts and having two owners what is your opinion on this?
Z.Enkhbold: I have different view. It is not right to divide TT into two parts. The exploiting company should be one and it should sell its shares domestically and internationally to grow large.
Q: Do you think the TT issue will be solved before the end of the spring session of SGK?
Z.Enkhbold: I think we can make it before the end of the session.
Q: The SGK started to discuss about TT issues in order for it to go through before the end of the spring session. The Government brought in a draft, let’s talk about that first?
Z.Enkhbold: First of all, TT itself is easy mine to exploit. The main issue is the selling process. The draft brought in by the government is an improved one but there are few changes that must be made during the discussions later on.
Q: For example, what changes are needed to be made?
Z.Enkhbold: First, Mongolians need to form a world standard company and its stock must be sold on international stock exchanges. Secondly, we need to connect to the potential coal market and our market should be open to those steel producer countries including Japan, South Korea, China, Germany and India. My view about the TT is to do what we can do which is exploiting and transporting the product to the buyer. When can deliver the coal to the border of China and we can deliver the coking coal to where it’s needed. Of course the coal of TT will either be used for Electrical power stations or steel factory.
Q: Can we produce the end product in Mongolia and add value to the product?
Z.Enkhbold: Yes we can, we should think about adding as much as value to the product. We can produce electricity with coal and sell it to Erdenet and produce coke with the coking coal and sell it to the counties mentioned earlier. These are the things that we should target but questions arise on how to do them. We can’t produce coke that will meet the standards of international steel factories. We don’t even know how to do it because it is a very specialized business. Importer countries should help us to build the factories and on return we would deliver the coal to their country.
Q: The Government is talking about distributing TT shares to the citizens?
Z.Enkhbold: That is the next step as the cake is not ready yet. When it’s ready it can be easily cut and divided. To exploit TT we need large amount of money first. Then, when it is profitable we can distribute shares but if not profitable it is impossible to distribute shares with no value. The Government holds the license for TT therefore the Government should produce the right management and by combining with the private sector should create world’s standard stock holding company.
Q: The Government holds the license of TT but don’t you think the Government is a bad manager?
Z.Enkhbold: It is up to them but even if the government has bad management it doesn’t mean it will just give the license to private businesses. There are many alternatives and the Government should choose the best option.
Q: The Government also talked about dividing TT into two parts and having two owners what is your opinion on this?
Z.Enkhbold: I have different view. It is not right to divide TT into two parts. The exploiting company should be one and it should sell its shares domestically and internationally to grow large.
Q: Do you think the TT issue will be solved before the end of the spring session of SGK?
Z.Enkhbold: I think we can make it before the end of the session.
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