Shivee-Ovoo and Baganuur shares are transferred to Erdenes MGL

Nov 6 • Featured, Mining, News • 3310 Views • No Comments on Shivee-Ovoo and Baganuur shares are transferred to Erdenes MGL

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Shivee Ovoo JSC and Baganuur JSC are state-owned coal mining companies. Shivee Ovoo JSC is located in Gobisumber province, and has 646.6 million tons in reserves. Baganuur JSC is one of the first coal mines in the country, operating for 35 years supplying coal to the Central Grid of the country’s power system. It supplies 40% of the domestic demand, and 60% of the central region. The current reserve is 708.2 million tons. Shivee Ovoo reported MNT1.7 billion in loss in 2013 Q2 which is approximately USD1.1 million. Baganuur JSC has also reported a loss. Both companies are registered in Mongolian Stock Exchange.

The main reason for the loss is government’s effort on keeping the coal prices low for the domestic market controlling electricity prices. Government subsidizes the loss from the budget.

Yesterday, the state-owned shares have been transferred to Erdenes MGL LLC. A company that has a mandate to own and operate strategically important deposits in the country. Currently the company owns 100% of Erdenes OT LLC that owns 34% of OT LLC, and 100% of Erdenes Tavan Tolgoi LLC, 90% of Shivee Ovoo JSC, and 75% of Baganuur JSC.


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