B.Enebish, Executive Director of Erdenes MGL: There is better chance for foreign candidates for the position of CEO at Erdenes Tavan Tolgoi
Q: Can you update us with recent developments at your company activities?
B.Enebish: SGK resolution was adopted right before the Naadam Festival. According to this resolution, the Government made related decision on August 18 2010. Based on this decision, Board of Erdenes MGL LLC started it activities on certain works. Camp building work on site has started. Any mine requires earth removal work prior to its mining operation at Tavan Tolgoi mine, Tsogt-Tsetsii soum of Umnugobi aimag. According to the SGK resolution, “Erdenes MGL” shall make revenue of ₮12 billion to the state budget. It will reach its target. Establishment of “Erdenes Tavan Tolgoi”, a subsidiary to Erdenes MGL, has started and if we lose this moment, we will lose another year. Therefore, preparation for mining operation has started on the site.
Q: Selection of new operator – contractor for the newly establsihed company has started. Can you provide us more detailed information on this part?
B.Enebish: The second important work is, as stated above, pre-selection of sub-contractor for the mine operation. Its announcement is placed on the local and foreign print media and at the websites. Pre-selection is to chose a potential contractor which can mine up to 15 million tons of coal annually.
It will be conducted according to the Law on Procurement of services and products using the state and local budget and the regulation of the Ministry of Finance. As for today, nine companies of 6 countries submitted their proposal and they are being reviewed by the special committee in chareg of evaluation. After the review, shortlisted candidate will be progressed to the second round of selection procedure.
Q: When Erdenes MGL will be established?
B.Enebish: “Erdenes Tavan Tolgoi” company will be establsihed earlier next month, accoridng to the guideline of the Government and the State Property Committee. CEO vacancy announcement has already published on the daily newspapers and www.business-mongolia.com. Interested candidates submitted their applications and there were 14 candidates in total. Selection committee is working on it. Three candidates will be shortlisted and be invited for the interview.
Q: What is the main requirement of the new CEO?
B.Enebish: “Erdenes Tavan Tolgoi” project at Tavan Tolgoi deposit is an international one. It has capacity to mine 15 million tons of coal annually, 8-9 million of coking coal. In addition to it, it will ine 4-5 million energy coal. 15 million tons of coal can only be mined after the complete realization of the project. It will mine 1 million in the first year and its capacity would increase 3, 8, 10 million tons. Coal mine’s full operation is totally dependant of its infrastructure. We are seeking a professional who has profound knowledge on the international standard of mining operation and experience on working at the international stock exchanges, because its shares shall be sold at international exchanges according to the resolution of SGK. That is why it was announced internationally. Train of Tavan Tolgoi has already departed and it will not be stopped. Within a year, nothing will remain as it was before, everything will be changed.
Q: Is it true that the chance is high for new company CEO will become foreign national?
B.Enebish: Yes, foreign nationals have better chance.