Altankhuyag: Coalition Government Makes Historical Decision
As we reported, the Government decided that every citizen born before March 31, 2011 will be an owner of the state-owned Erdenes Tavantolgoi Deposit.
According to Government decision, 1.5 billion shares will be divided and each Mongolian (2,796,341 citizens) will receive 536 shares.
Record of share ownership is to be made at the Human Development Fund record book for each citizen and the exact price of the share will be determined at the time of the global IPO of Erdenes TT.
Citizens are not allowed to sell shares until share prices have are stabilized in a realistic manner after extraction and coal exports stabilize; paved roads, railroads, and power supply are resolved; and construction of Coal Handling and Preparation Plant started.
The Unuudur Newspaper, to which the UB post is a sibling, interviewed First Deputy Premier of Mongolia N.AltankhuyagÑŒ for some details on the matter. Altankhuyag also heads the government’s working group in charge of Tavantolgoi Project.
The Unuudur:What is the progress of the initial bidding process with six short listed bidders? How about the second stage of bidding and negotiation?
Altankhuyag: Out of fifteen bidding companies and consortiums, six bidders from China, Russia, Japan, South Korea, the United States and Brazil were shortlisted. The phase II interview with these six bidders will commence on Thursday, March 4 and tender bidding will be announced soon. Only one company or a consortium will be selected in the end which will be decided by the decision of the parliament.
The Unuudur: Is it possible that these six bidders merge as a consortium to bid?
Altankhuyag: As to the parliament’s guidelines given to all bidders, only one bidder will be selected finally.
The Unuudur: The Mongolians happily welcomed the decision of the Mongolian government to distribute 536 shares to each citizen. This decision gives a lot of hope to the population about how much they can benefit from the shares and when will they start to receive dividends. The people want an official and clear answer to their questions?
Altankhuyag: It is not possible to tell right now. The whole procedure takes a set of steps according to international practice. It depends on several factors including infrastructure, investment, reserve, technology and others. The share price depends on international market. The Government wishes that the price is high at international market. As a citizen, I wish that too.
The Unuudur: But as a government minister chairing the working group in charge of TT project, you must have a better picture. The people cannot wait to know when they will begin to receive the dividends?
Altankhuyag: I would say it is possible that Tavantolgoi IPO starts around April of next year if the work goes well. The Government’s will is to sell the shares at the highest possible price.
The Unuudur: The coalition government made the historical decision. Is it possible that the decision would not have been made if the Democratic Party or Mongolian People’s Party formed the Government on their own?
Altankhuyag: It is indeed a big decision made not for the sake of few people but for all citizens of Mongolia. We could make this historical decision thanks to close cooperation between the two parties.
The Unuudur: The incumbent cabinet and parliament terms will end after one and half year. Will the Government make more important decisions like this before its term ends?
Altankhuyag: We are talking about only two projects out of fifteen strategic deposits. Now we have to consider the development of these 13 deposits. We have ambitious plans regarding heavy industry, infrastructure, as well as small and medium enterprise. I want the Government keep this energy and unity to make right decisions beneficial to all Mongolians.
According to Government decision, 1.5 billion shares will be divided and each Mongolian (2,796,341 citizens) will receive 536 shares.
Record of share ownership is to be made at the Human Development Fund record book for each citizen and the exact price of the share will be determined at the time of the global IPO of Erdenes TT.
Citizens are not allowed to sell shares until share prices have are stabilized in a realistic manner after extraction and coal exports stabilize; paved roads, railroads, and power supply are resolved; and construction of Coal Handling and Preparation Plant started.
The Unuudur Newspaper, to which the UB post is a sibling, interviewed First Deputy Premier of Mongolia N.AltankhuyagÑŒ for some details on the matter. Altankhuyag also heads the government’s working group in charge of Tavantolgoi Project.
The Unuudur:What is the progress of the initial bidding process with six short listed bidders? How about the second stage of bidding and negotiation?
Altankhuyag: Out of fifteen bidding companies and consortiums, six bidders from China, Russia, Japan, South Korea, the United States and Brazil were shortlisted. The phase II interview with these six bidders will commence on Thursday, March 4 and tender bidding will be announced soon. Only one company or a consortium will be selected in the end which will be decided by the decision of the parliament.
The Unuudur: Is it possible that these six bidders merge as a consortium to bid?
Altankhuyag: As to the parliament’s guidelines given to all bidders, only one bidder will be selected finally.
The Unuudur: The Mongolians happily welcomed the decision of the Mongolian government to distribute 536 shares to each citizen. This decision gives a lot of hope to the population about how much they can benefit from the shares and when will they start to receive dividends. The people want an official and clear answer to their questions?
Altankhuyag: It is not possible to tell right now. The whole procedure takes a set of steps according to international practice. It depends on several factors including infrastructure, investment, reserve, technology and others. The share price depends on international market. The Government wishes that the price is high at international market. As a citizen, I wish that too.
The Unuudur: But as a government minister chairing the working group in charge of TT project, you must have a better picture. The people cannot wait to know when they will begin to receive the dividends?
Altankhuyag: I would say it is possible that Tavantolgoi IPO starts around April of next year if the work goes well. The Government’s will is to sell the shares at the highest possible price.
The Unuudur: The coalition government made the historical decision. Is it possible that the decision would not have been made if the Democratic Party or Mongolian People’s Party formed the Government on their own?
Altankhuyag: It is indeed a big decision made not for the sake of few people but for all citizens of Mongolia. We could make this historical decision thanks to close cooperation between the two parties.
The Unuudur: The incumbent cabinet and parliament terms will end after one and half year. Will the Government make more important decisions like this before its term ends?
Altankhuyag: We are talking about only two projects out of fifteen strategic deposits. Now we have to consider the development of these 13 deposits. We have ambitious plans regarding heavy industry, infrastructure, as well as small and medium enterprise. I want the Government keep this energy and unity to make right decisions beneficial to all Mongolians.
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