Tavantolgoi forum was held at the Civil Hall at the Presidential Office in Ulaanbaatar on Thursday. Mongolia has been shipping coal from Tavantolgoi to China for three weeks. During the discussion, some experts said Mongolia was selling the coal too cheaply. Mongolia sells the coal to China for USD 70 per ton. They say Mongolia’s profit is only USD 10 per ton. An official with the national security council said the Government should focus on water and energy issues while developing Tavantolgoi, because, if Mongolia is unable to provide water and energy from domestic sources, it will affect the nation’s economic security. According to a draft resolution in Parliament, each Mongolian is to receive 536 shares of Tavantolgoi.
Words from the Senior Economists and experts:
Dr. Dashzeveg, Director of Mongol University:
Two Tsankhi should not have been divided. It will bring up the costs for the whole mine. You need to have two from everything including thermal power station for both Tsankhi and two water supply units etc. From what I see, there are no expert ideas or discussion in this investment agreement. Working group consisting of experts needs to be established to deal with this matter. You politicians know nothing because you are a lawmaker not expert in mining. If Genghis Khan existed, he would have chopped your heads off for doing such a bad agreement.
Dr. Purevbaatar, State Honoured Economist:
The deal itself is not beneficial to Mongolia. 50 or more percent should be owned by us not China or Russia. Erdenes TT is going to own some 500 million tons of coal from the total 6 billion tons. You said 10% of that will be given to the citizens as shares but if we divide that into 2.7 billion people we will get 2 packs of coal for every family. So why do IPO if a family of 5 gets share of 2 packs of coal? You have to be knowledgeable and expert into these things to do a proper investment agreement. You are acting and working like it’s a small mine in your soum or town. Eveything should be clear to the public.