State Property Committee Chairman
D.Sugar has told Bloomberg in an interview that Mongolia’s plan to privatize
its state-owned assets will allow international investors access to some of the
world’s largest untapped mineral resources through initial public share sales,
most likely in Hong Kong. No decision has yet been taken on the exact procedure
of equity listings, but the government will certainly sell shares in both local
and international stock markets.
Sugar specifically named Erdenet Mining Corp., Tavantolgoi, and Oyutolgoi as
certain to be privatized. Uranium companies may follow suit.

McKinsey & Co. is advising the
Mongolian government in identifying state-owned enterprises to be privatized.
Final results are expected in one month. Mongolia is betting on overseas
capital markets as its primary source of fundraising over its less liquid
domestic market.

Selling
part of its holdings in Erdenet, Tavantolgoi, and Oyutolgoi will require the
agreement of Mongolia’s respective joint venture partners, Sugar said.