Ulaanbaatar
Hong Kong and New York stock exchanges to be observed for Tavan Tolgoi stock trading
Economy
Ulaanbaatar /MONTSAME/ During the Cabinet's regular meeting on October 3, selection of the stock exchange on which the Tavan Tolgoi shares to be traded was discussed. Minister of Mining and Heavy Industry D.Sumiyabazar gave briefing on that matter.
“The Cabinet instructed the Ministry of Mining and Heavy Industry and the relevant agencies to study the trade opportunities of the Tavan Tolgoi shares on the Hong Kong (SEHK) and New York Stock Exchanges (NYSE). The SEHK is in the same time zone with our country and its main emptor is China. As for the NYSE, it is the world financial center. We are planning to meet with the authorities of the two stock exchanges, the regional banks and investors next week. Moreover, the draft bills on defining boundaries of mineral deposits of strategic importance, approving coordinates of the common mineral prospecting areas and measures on oil products will be discussed and submitted to the Parliament,” he said.
After the report, Minister answered to the questions of the journalists.
- Have you studied stock exchanges other than the above mentioned?
- We have also studied the London, Toronto and Tokyo stock exchanges and chose the most optimal two.
- When will the Independent Board Members of the Erdenes Tavan Tolgoi JSC be chosen? Did the shareholders’ meeting take place?
- The Shareholders’ Meeting was planned on September 26, however due to lack of attendance it was delayed until October 8. Selection process of the Independent Board Members is continuing since September 12. More than 20 people are currently competing.
- Has a new study on Tavan Tolgoi reserves conducted?
- According to a study, the 8 billion tons of reserve of Tavan Tolgoi can be increased. Therefore further researches are planned.
- The oil price is increasing in the world market. As a result, fuel prices are increasing in Mongolia. What policy does the Ministry hold on this?
- The Ministry makes a number of decisions regarding the oil products. However, the excise tax and price matters are under control of the Ministry of Finance. In general, the oil prices tend to increase in the world market due to trade war between the US and China, sanctions against Russia. According to the agreement signed with the Rosneft company, Mongolia purchases oil at the price of the Singapore Exchange. The authorities of the Rosneft worked in Mongolia and we had meetings. We expressed our interest mainly on issues of cooperating in establishment of oil refinery, oil exploration and aircraft fuel supply, rather than oil prices.
