ETT contributes mnt 1 trillion to taxes and reduces debt by another mnt 1 trillion

Since the appointment of the Plenipotentiary Representative of the Government, the "Erdenes Tavan Tolgoi" (ETT) has experienced a remarkable surge in sales, reaching the same level as the entire year of 2022. In the first five months of this year alone, Mongolia exported a total of 23.1 million tonnes of coal, with ETT accounting for 43 percent of the share. During this period, the company sold over 11 million tonnes of coal, generating a revenue of USD 1.14 billion. Comparatively, in the previous year, total coal exports amounted to 11.4 million tonnes, earning around USD 1.1 billion. Notably, ETT achieved its highest sales volume before the establishment of the special regime in 2019, with a remarkable 15.5 million tonnes of coal sold that year.

The board of directors of ETT has recently revised its production and sales plan for this year, aiming to sell a remarkable 30 million tonnes of coal. If this ambitious goal is achieved, the company will not only achieve its highest sales volume in history but also align with the amount of coal exported by Mongolia in 2022. This strategic target reflects the company's commitment to expanding its market presence and further contributing to the coal export industry. Due to a significant surge in exports and sales, the state and local budgets have collected tax revenues amounting to MNT 1.06 trillion during the first five months.

This surpasses the tax payment of MNT 990 billion made in the previous year, marking a historic milestone. It is noteworthy that ETT’s tax contribution alone has exceeded the combined tax payments of both "Erdenet Mining Corporation" and "Oyutolgoi". Specifically, the company's royalty payment stands at MNT 727 billion, surpassing the total tax payment of MNT 697 billion by "Erdenet Mining Corporation." Additionally, the company's CIT tax payment amounts to MNT 288 billion, surpassing the total tax payment of MNT 237 billion by "Oyutolgoi," emphasized Ganbat.J, the Plenipotentiary representative of ETT. Furthermore, amidst the imposition of an emergency regime on the company, the long and short-term debt of MNT 4.3 trillion has gradually decreased and been settled by MNT 1 trillion. Looking ahead, Ganbat.J emphasizes the active organization of regular debt reduction measures.

ETT has experienced a significant improvement in its economic situation, primarily driven by the renewal of sales contracts and the rise in prices. During the emergency period, the company had a total of 178 concessional sales contracts in place. However, expired contracts were not renewed, and adjustments were made to the terms of those contracts. For instance, proposals were presented to buyers to modify purchase conditions to border conditions and exchange prices at the mouth of the mine. As a result, the company has observed a decline in the number of contracts for sale at the mine site. Additionally, there are currently no contracts in talks. The improved economic situation of the company has facilitated the acceleration of large-scale construction projects. ETT has initiated the construction of two plants, namely the wet concentration plant and the dry concentration plant.

The progress of the dry concentration plant construction is notable, with completion reaching 70 percent as of June. This plant, located in the Bortee area between West and East Tsankh of the Tavantolgoi field, will have a total capacity of 15 million tonnes and consist of four modules. The first module, capable of processing 5 million tonnes, is scheduled to be operational by July of this year. The enrichment of semi-soft coking coal from the 8th, 9th, 10th, 11th, and 12th layers of the Tavantolgoi deposit will have several significant benefits. It will enable the supply of high-quality concentrated coal to the market, leading to increased product output, enhanced economic benefits, and the reduction of waste while promoting comprehensive resource utilization.

Furthermore, this endeavor will create around 150 direct job opportunities, according to Altanbagana. Ch, Head of the Mining and Technology Department at ETT. Simultaneously, progress is being made in the construction of the wet concentration plant, which is projected to have an annual capacity of 10 million tonnes. Currently, the construction process is approximately 40% complete. During a review of the construction progress, Amarbayasgalan.D, the Head of the Government of Azerbaijan, emphasized the government's strong support for projects carried out through public-private cooperation that have significant economic and export implications. Once the concentrators are operational, it is estimated that the sale price of the company's coal will experience a notable increase of 30-40 percent. This development will further contribute to the company's growth and prosperity.