“Erdenes Tavantolgoi” company to not agree on upfront payment terms www.montsame.mn
During its regular meeting dated October 26, the Cabinet made a decision to impose an emergency regime for “Erdenes Tavantolgoi” state-owned enterprise for six months, assigning State Secretary of the Ministry of Finance J. Ganbat as the Government’s Special Representative to take relevant measures to improve the company’s operations and management and increase the revenue.
In this regard, on November 8, the Special Representative held a press briefing, during which he emphasized that making the company’s information on contracts and activities transparent and open to the public is the most appropriate solution.
After being assigned as the Government’s special representative, he started publicizing the coal mining and transportation information and contracts signed with mining companies accessible on the company’s website. Tender information related to procurement is linked online. Specifically, the quantity of coal loaded from the mine is disclosed on the company’s website. He clarified getting information about which company, how many vehicles, and how many tons of coal are loaded on the requested date.
As of today, 265 vehicles have loaded 30,497 tons of coal.
There are 4 contracts with 4 large foreign and domestic state-owned and private sector companies with upfront payment terms. Currently, USD 45 million have been received out of the agreed amount of USD 605 million. There are 27 contracts for coking coal for 100 thousand to 1 million tons made on standard commercial coal purchases and sales.
In addition, the transparency will disclose 109 contracts for thermal coal supply amounting to 20,000 to 300,000 tons.
Now, the company is working on making the process of coal loaded from the mine and unloaded in Tsagaankhad to cross the border transparent. There is no doubt of having a difference between them. Making information visible will therefore enable the people to perceive the balance, whilst keeping it secret breeds mistrust. Coal transport vehicles from the mine will be monitored digitally. He informed that the "Erdenes Tavantolgoi" company would only accept cash on delivery terms and would not consent to an upfront payment.
The company purchases MNT 3.4 trillion annually. As of last Friday, 833 vehicles transported coal.
Published Date:2022-11-10