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.