The ministry estimates the average petroleum price produced by the factory to be around MNT 850 per litre. “We had a conference call with Igor Sechin, Head of Russian oil company Rosneft. The working group of MMHI and oil refinery will pay a working visit to Russian Federation soon after the new year, prepare necessary documents and sign the cooperation agreement within the first quarter,” said Mr. Sumiyabazar.

As of November, mining sector and heavy industry allocated MNT 1.9 trillion to the state budget, which is 37 percent higher than the same period of last year. In the reporting period, the industrial sector production reached MNT 14.1 trillion, growing 19.5 percent year over year.

Preparatory works of Erdenes Tavan Tolgoi IPO is currently underway. Open selection for audit, legal, financial and technical assistants have been selected and advisory firm selection is in process at the moment. MMHI also reported that the international underwriter and other partners necessary for the IPO will be picked in between January and February.

Regarding the gold royalties, Mr. Sumiyabazar expressed that the 2.5 percent royalties must be extended. “Gold sector annually create USD 800 million for the budget. The ministry has negotiated with the Bank of Mongolia (BoM) to establish a gold purifying plant in 2019, signing cooperation agreement in the working group level,” informed Mr. Sumiyabazar and added, “The purifying plant will also have a gold purchase service and within this frame, a bill involving the BoM, Ministry of Finance and MMHI has been prepared and will be submitted to the Parliament for approval soon.”