Domestic business entities, registered later June 30 2010, are not entitled to buy Tavan Tolgoi share with its face value
On July 7 2010, SGK adopted resolution draft on Tavan Tolgoi deposit. Upon the adoption of the resolution draft, working group member made press conference. According to their statement, “Erdenes Tavan Tolgoi” LLC will own license of Tavan Tolgoi deposit 100%. Up to 10% of the total share will be distributed to the people of Mongolia free of charge, 10% of share will be offered to the national companies with its face value, and up to 30% of the total share will be sold at the foreign and domestic stock exchanges. The right of this exercise is granted to the Government of Mongolia. 10% of share to be distributed to the people will be the share with no voting power but entitled to receive dividend. But the national companies which will receive opportunity to buy the share with its face value have to be registered before June 30 2010 and shall be taxpayer to Mongolia.
Also, the Government regulation shall determine the exact arrangement of distributing shares to people. As stated by a working group members Tavan Tolgoi will mine 30 million tons of coal in its first year of operation for the supply of local demand and export. Moreover, Erdenes MGL LLC will go into public in the near future.
Hereby, the State Great Khural of Mongolia resolves as follows, based on the paragraph 43.1 of Law on the State Great Khural:
One. To start mining operation by the state owned company, to establish “Erdenes Tavan Tolgoi”, a subsidiary company, and transfer the license wholly to the newly established company, to build investment agreement with it and to carry out mining operation by the local mining companies on temporary basis
Two. To implement the following measures step by step, according to the related laws and regulations, in order to distribute up to 50% of share of “Erdenes Tavan Tolgoi” Company to people of Mongolia, national companies and sell the remaining share at the domestic and foreign stock exchanges:
a. At the first round, 10% of the share will be distributed to the people of Mongolia evenly and free of charge.
b. To sell 10% of the total share of company at its face value to the national companies of Mongolia, registered before June 10 2010 and taxpayer to the state budget.
c. Announce IPO of 30% of total share of the company at the domestic and foreign stock exchanges.
Three. To study alternatives of restructuring of “Erdenes MGL” LLC, an owner company of “Erdenes Tavan Tolgoi”, according to the Constitution of Mongolia, Law on Human Development and other related laws and present findings to the State Great Khural “Erdenes Tavan Tolgoi”
Four. To pursue and introduce international standard in developing and utilizing infrastructure, industry and construction, to harmonize the project implementation with the policy of supporting the national value added production, provide workplaces to the people of Mongolia and set priority of consuming and using the domestic products in the operation.
Five. To start negotiation on transit transportation, pre-payment, border port utilization, advance installation of railway line, investment and sales, select consortium of foreign domestic companies through open tender bid and present investment agreement draft together with other supporting documents and materials for the fall session of 2010 of the State Great Khural.
Also, the Government regulation shall determine the exact arrangement of distributing shares to people. As stated by a working group members Tavan Tolgoi will mine 30 million tons of coal in its first year of operation for the supply of local demand and export. Moreover, Erdenes MGL LLC will go into public in the near future.
Hereby, the State Great Khural of Mongolia resolves as follows, based on the paragraph 43.1 of Law on the State Great Khural:
One. To start mining operation by the state owned company, to establish “Erdenes Tavan Tolgoi”, a subsidiary company, and transfer the license wholly to the newly established company, to build investment agreement with it and to carry out mining operation by the local mining companies on temporary basis
Two. To implement the following measures step by step, according to the related laws and regulations, in order to distribute up to 50% of share of “Erdenes Tavan Tolgoi” Company to people of Mongolia, national companies and sell the remaining share at the domestic and foreign stock exchanges:
a. At the first round, 10% of the share will be distributed to the people of Mongolia evenly and free of charge.
b. To sell 10% of the total share of company at its face value to the national companies of Mongolia, registered before June 10 2010 and taxpayer to the state budget.
c. Announce IPO of 30% of total share of the company at the domestic and foreign stock exchanges.
Three. To study alternatives of restructuring of “Erdenes MGL” LLC, an owner company of “Erdenes Tavan Tolgoi”, according to the Constitution of Mongolia, Law on Human Development and other related laws and present findings to the State Great Khural “Erdenes Tavan Tolgoi”
Four. To pursue and introduce international standard in developing and utilizing infrastructure, industry and construction, to harmonize the project implementation with the policy of supporting the national value added production, provide workplaces to the people of Mongolia and set priority of consuming and using the domestic products in the operation.
Five. To start negotiation on transit transportation, pre-payment, border port utilization, advance installation of railway line, investment and sales, select consortium of foreign domestic companies through open tender bid and present investment agreement draft together with other supporting documents and materials for the fall session of 2010 of the State Great Khural.
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