ETT manages to ship 15.5 million tons of coal amid pandemic www.news.mn
Erdenes Tavan Tolgoi (ETT), one of Mongolia’s largest mining companies, still managed to ship an impressive 15.5 million tons of coal, earning MNT 1.68 trillion, including MNT 1.5 trillion in sales revenue amid chaos of interrupted supply chain procedures due to Covid.
The flagship company also reported a net profit of MNT 149.4 billion and contributed MNT 490.1 billion in taxes and fees to the state budget. Despite being prevented from transporting coal to China, its largest customer, ETT managed to negotiate receipt of advance payment for the coal, which will ship as soon as the borders open. As one the most profound consequences of the COVID-19 pandemic have been interruptions to the supply chain and a decline in exports and imports due to logistical challenges, this represents a coup for the company, and the people of Mongolia.
According to a recent survey, net exports from Mongolia accounted for 6.2% of the country’s GDP in the second quarter of 2018, falling to 1.9% for the same period in 2021. A 2020 study by the World Bank and the National Statistics Office of Mongolia also found that 28% of Mongolians could be called ‘poor,’ and fears have been voiced that this number could swell to around 43%. Rising prices and shortages of goods are having a substantial impact on the livelihoods of ordinary Mongolians, who find that they have less purchasing power.
In landlocked Mongolia, this longstanding issue has been exacerbated by the pandemic-related closure of several border crossings. Although this situation is somewhat expected in places like Mongolia, the socio-economic ramifications of the pandemic have been unusually severe. The recent distribution of dividends by ETT are therefore most welcome, and play a significant role in helping to rescue the Mongolia and its citizens from an increasingly difficult situation.
ETT was named the best Mongolian taxpayer of 2020 and is one of the top 100 companies in the country – a confirmation of its continuing contribution to Mongolia and her people.
Published Date:2021-11-07