Erdenes Tavan Tolgoi will not lose money - News.MN

Erdenes Tavan Tolgoi will not lose money

Old News! Published on: 2015.06.23

Erdenes Tavan Tolgoi will not lose money

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Мөнгөнтамир
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L.Erdenechimeg who is Member of Parliament with experience working in the Tsogttsetsii sum (district) of the Umnugovi aimag, which is where “Erdenes Tavan Tolgoi Company” is located, provided the following information:  – So far 2.3 million tonnes of coal have been extracted and another 2 million tonnes (including earth)  are ready to be extracted  at the Erdenes Tavan Tolgoi reserve.  The combined value of these resources is estimated at USD 140 million; this is enough to cover practically all the USD 142 million debt to Chalco (China Aluminum Corporation). The buyers and transportation companies, however, are incurring a loss because the roads from the mine-site are not suitable for heavy vehicles. Also, the price of coal on international markets is still falling. For this reason we need to extract and transport coal more cheaply. The transportation cost factor is paramount; therefore, a railway needs to be built. So if Erdenes Tavan Tolgoi extracts coal as continues to extract coal as it is currently doing, but invests in a railway line, there will not only be no further losses but profits will be generated.

 

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