Erdenes Tavan Tolgoi JSC to cut its expenses by MNT400 billion www.montsame.mn
Ulaanbaatar /MONTSAME/ Erdenes Tavan Tolgoi JSC has worked with net profit of MNT304 billion in the first quarter of 2019. The Company extracted 4.2 million tons of coal in the first quarter, of which 2.4 million tons have been exported. The company’s revenue from sales reached MNT 741 billion, of which MNT 193.5 billion have been allocated to the state budget.
CEO of Erdenes Tavan Tolgoi JSC B.Gankhuyag said, “Last year, our company earned MNT1.99 trillion sales income with the net profit of MNT807.6 billion. According to the decision made by the Parliament and Cabinet, the Board of Directors of the company has resolved to fund major infrastructure projects and programs with its net profit. In particular, the company will fund first investments of the projects, including railways in route Tavantolgoi-Zuunbayan and Tavantolgoit-Gashuunsukhait, establishments of Coal Concentration Plant, water supply, conveyor system and Power Plant. In this regard, the company has made a decision to adjustments its budget, cutting its expenses by MNT400 billion, which is spent on building office and purchasing automobiles, computers and equipment and devices.”
Preparation works for the IPO on international market have being fulfilled intensively. In accordance with the law on procurement of goods, works, and services with state and local funds, some works related to selection of international consultant have been delayed for a while. But the fulfillment of a work on creating citizens’ aggregated database and formulating documentations are running well, he mentioned.
The Cabinet banned raw coal consumption in the capital city beginning from May 1, 2019. Therefore, processed fuel by Tavantolgoi Tulsh Company will be supplied to the citizens from May 15. This work is running with fulfillment of around 90 percent, he highlighted.
Tavantolgoi Tulsh Company will produce 800 thousand tons of fuel a year. By using this fuel, it is expected to reduce air pollution in Ulaanbaatar city up to 50-60 percent in 2019-2020. In addition, 24 types of experiment have shown that the fuel is not hazardous for human health.
Published Date:2019-05-03