Financing for Erdenes Bond to be allotted in May 2021
Authorities have been speeding up works to commercialize Erdenes Mongol LLC’s Salkhit silver mine after issuing a one-time forgiveness for all pension-backed loans of up to 6 million MNT in February.
Put in charge of this work, Erdenes Silver Resources is planning to finance Erdenes Bond in May 2020 to incentivize around 200,000 pensioners who didn’t have loans at the time of the one-time forgiveness.
The company said, “The Salkhit Silver Deposit is a manifestation of the government’s policy of equally distributing the benefits of natural resources to the elderly who have made the most significant contribution to the country’s development.”
The government has decided to implement strategic mega-projects to ensure economic growth, fully mobilize investment and financial resources, and focus on maximizing yield in accordance with the five-year Development Plan of Mongolia for 2021 to 2025 and the Government Action Plan for 2020 to 2024, which were discussed and approved last week.
In the last two years, the government has launched certain projects by helping Erdenes Mongol to attain licenses and real assets through the acquisition of shares of other companies. For instance, the Asgat silver deposit, which has been trying to attract investors for the last 30 years, was transferred to Erdenes Mongol in July 2019. As a result, 20 tons of production samples were taken from the excavated shafts, and other works such as revising the feasibility study are currently underway.
Despite the global pandemic and limited opportunities to meet with investors, state-owned Erdenes Methane LLC’s Tavan Tolgoi coal seam methane exploration is continuing to see progress.
Since Erdenes Methane LLC and Jade Methane LLC of Australia established Methane gas investment agreement in May 2019, the sides have completed exploring Burtee field at Tavan Tolgoi group mines and submitted a report to the Professional Mineral Resources Council of Mongolia. Preparations are underway for a detailed survey.