Parliament begins discussion of Tavantolgoi proposals

Prime Minister S.Batbold explained the Government’s proposals on the Tavantolgoi coal deposits at Parliament on Thursday.

The plan is to divide the deposit into two. The first part will have some 3.5 billion tons of coal and will be under a state owned company established for the purpose. No less than 10 percent of its shares will be distributed equally among 2.7 million Mongolian citizens according to the provisions of the Human Development Fund. Between 15 million and 30 million tons of coal will be sold annually, some of it after being coked.

In addition, following the Mineral Law, no less than 10 percent of the deposit will be sold in the Mongolian stock exchange, with all 35,000 registered companies and all citizens of Mongolia able to buy them.

During the discussion, MPs gave their opinion about railway construction, regional development, infrastructure and many other issues. S.Byambatsogt proposed construction of a narrow-gauge railway from Tavantolgoi to Gashuun Sukhait. D.Enkhbat worried if people will go and live in areas without urban facilities.

Minister Kh.Battulga said the Government had plans to build a chain of industries and said urban habitations near Tavantolgoi should be built to be used for 150-200 years.

Minister D.Zorigt explained Tavantolgoi will be owned fully by Erdenes MGL, with foreign companies investing in infrastructure development. They will have to collaborate with Mongolian companies.

MPs asking exactly how many companies are operating in Tavantolgoi now were told that apart from the Chinese Daitsuku, Energy Resource operates in Ukhaa Khudag, and Tavantolgoi LC in Tsankhi. The regional administration owns 49 percent of the shares of the last named, while the rest is privately held.

Altogether 31 MPs asked questions on the first day of discussions.
source:www.news.mn