Erdenes TT COO resigned

Jan 29 • Business, Mining, News • 868 Views • No Comments on Erdenes TT COO resigned

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Graeme Hancock, the chief operating officer of Erdenes Tavan Tolgoi, has resigned as the company faces a cash crunch that’s disrupted shipments to China.

The board of the state-run company accepted Hancock’s resignation this week. Hancock was the second- highest executive at Erdenes TT, as the miner is also known, and his role included preparing the company to list in Hong Kong, London and on a domestic bourse.

The departure of Hancock comes as Erdenes TT delays a share sale to focus on securing state financing and restarting shipments, as well as negotiating better sales terms from its biggest buyer, the Aluminum Corp. (2600) of China Ltd. Erdenes stopped deliveries to Chalco, as the Chinese state company is known, on Jan. 11 after saying it could no longer pay the cost of sending the coal to the China.

Mongolia has pledged a $355 million loan to help Erdenes TT climb out of debts, the mining company’s chief executive officer Yaichil Batsuuri said last week. Still, Prime Minister Norovyn Altankhuyag said Jan. 23 that the supply deal between Erdenes TT and Chalco must be renegotiated.

Erdenes TT spokeswoman Gurjav Enkhmanduul said she could not comment on Hancock’s resignation as it has not yet been announced internally. The former mining specialist at the World Bank is the second Erdenes TT executive to resign in the last three months. Baasangombo Enebish quit as the CEO in October, citing personal reasons.

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