The Government of Mongolia (GoM) recently approved a resolution that would establish a special legal regime at ErdenesTavanTolgoi JSC for 6 months, starting October 26, 2022, and J.Ganbat, Secretary of State at the Ministry of Finance, has been appointed as the special representative of the Government.The reason for imposing a special regime on "Erdenes Tavantolgoi" JSC is related to the Government's Resolution No. 362, or the measures taken to increase foreign exchange reserves.
"Erdenes Tavantolgoi" JSC is financing several big projects by the government’s decision. In this context, offtake contracts or pre-conditional selling and bartering deals were set up, in which the Government established a special regime for evaluation purposes.
As mandated by the government, the offtake contracts will be declassified and made public within the next month. Further, coal theft and other cases that are currently under investigation will also be made public. Most of the exported coal is accounted for by offtake contracts, so the government has given directions for cash sales. D.Amarbayasgalan, the head of the Cabinet Secretariat, stated that the decision would not hinder effective agreements.
