COVID-19 Latest
Mongolia|business|July 4, 2016 / 11:19 AM
Mongolia to own 100% of Erdenet and Mongolrostsvetmet

AKIPRESS.COM - Erdenet Mining Corporation Rostec and Mongolian Copper Corporation LLC on June 24, 2016 signed an agreement on the sale of 49% of shares belonging to Rostec in two Russian-Mongolian joint-venture mining companies (Erdenet Mining Corporation and Mongolrostsvetmet) to Mongolian Copper Corporation.

The deal was achieved on mutually beneficial market conditions for both the Russian and Mongolian sides. For the purpose of the deal, the cost of the 49% packet of shares was valued at a market premium, taking into account the quality of the assets and their potential for development.

At the state level, the decision to sell the Russian shareholdings in Erdenet Mining Corporation LLC and Mongolrostsvetmet LLC to the Mongolian side obtained the relevant approval of the Russian and Mongolian governments. The deal is expected to have an extremely positive effect on the development of economic cooperation between Russia and Mongolia, and to give an additional impetus to the strengthening of the countries’ political ties.

Rostec’s CEO Sergei Chemezov said: “The sale of 49% of shares in Erdenet Mining Corporation LLC and Mongolrostsvetmet LLC is Rostec’s largest deal in the real economy, as a result of which the corporation’s budget received its largest ever single cash input. Having consolidated 100% of shares in its mining asset, the Mongolian side achieved the possibility to further develop the companies in line with its own corporate strategy. We welcome the decision of our Mongolian colleagues and are convinced that completing the deal opens up new opportunities for the Russian side to invest in the Mongolian economy and will strengthen the countries’ bilateral links. Rostec is ready to expand its presence in the Mongolian economy in such promising areas as the production of electricity, lithium mining, logistics, and associated infrastructure projects.”

Mongolian Copper Corporation LLC is a private Mongolian business entity. It is fully owned by a consortium of leading Mongolian companies.

Erdenet Mining Corporation LLC was founded in 1978 under an intergovernmental agreement. It is one of the largest copper and molybdenum mining and enriching enterprises in Asia. It enriches 26 million tons of ore annually and produces around 530,000 tons of copper and around 4,500 thousand tons of molybdenum concentrate.

Mongolrostsvetmet LLC was founded in 1973 under an intergovernmental agreement. It is the core enterprise in the town of Bor-Ondor (population approximately 12,000). The company mines and enriches fluorspar, gold and iron ores.

All rights reserved

© AKIpress News Agency - 2001-2024.

Republication of any material is prohibited without a written agreement with AKIpress News Agency.

Any citation must be accompanied by a hyperlink to akipress.com.

Our address:

299/5 Chingiz Aitmatov Prosp., Bishkek, the Kyrgyz Republic

e-mail: english@akipress.org, akipressenglish@gmail.com;

Follow us:

Log in


Forgot your password? - recover

Not registered yet? - sign-up

Sign-up

I have an account - log in

Password recovery

I have an account - log in