Q: When Erdenes Tavan Tolgoi LLC will be established?
B.Enebish: Right before Naadam Holiday, the State Great Khural issued its resolution on realization of Tavan Tolgoi deposit. In the resolution, a provision says that Erdenes Tavan Tolgoi will be established next to Erdenes MGL LLC, as the operator at Tavan Tolgoi deposit. The main preparation works and due diligence have been completed. Cabinet Meeting will discuss the issue and resolve.
Q: When CEO selection will be completed? Is the operator company selected?
B.Enebish: It could be said that the selection procedure in its final phase. But the operator selection tender is in its midway. I should say that SGK, Government and State Property Committee are implementing the related procedures in a systematic way.
Q: What companies are shortlisted?
B.Enebish: Three companies are shortlisted. In other words, three companies met with the preliminary requirements. They are Leyton Asia, McMachon Limited, both from Australia and BBM Operta from Germany. One of them will become operator company of Tavan Tolgoi deposit. Because they are experiences in contract based operations.
Q: What was the main criteria of selecting these three companies?
B.Enebish: Production of Erdenes Tavan Tolgoi will be increased leading the deposit into the world class one. Selling the product will increase the profit of the state. Therefore, the main criterion to select correct company was their highly skilled performance and operational experience. We are working on to select a company with capable human resources and technology, rich in experience and finance.
Q: Will selected company operate in life of mine?
B.Enebish: No, it will operate in certain period, In doing so, out productivity and production capacity will increase. In the earlier period or until the production stable; we will cooperate with an operator company. There is a clear example in the world to hire experienced companies in the earlier period of the mining development. Along with it, we understand to allow full participation and involvement of the Mongolian companies and Mongolians.
Q: How much pre-payment will be paid by the operator company?
B.Enebish: This is not my responsible field; therefore, I can’t answer to your question.
Q: When the Erdenes Tavan Tolgoi share distribution will start?
B.Enebish: Now we are only to set up Erdenes Tavan Tolgoi LLC. To distribute shares to public and private companies requires systematic approach. Population and housing counting will start soon. After the counting, share issuance number will become much clearer and it is same to private companies. Also, their tax history and tax payables will become clear. After these works and due diligences, there is a huge work of IPO at the foreign markets. The fastest IPO will be made within a year. In doing so, we should meet with all types of requirements such as internationally recognized investment bank, legal consultants, and independent auditing companies. All these works are standing on the line to be completed. Basically, we are expecting to start IPO late 2011. This estimation is based on the fact that if the performance will be at its best.
Q: What will be the face value of Erdenes Tavan Tolgoi share?
B.Enebish: The Company will be evaluated by the experts when going into public at the international markets.