L.oyun-erdene Reports on Fundraising Scheme for Erdenet's 49% Stake Deal

Head of the Cabinet Secretariat L.Oyun-Erdene held a press conference about the privatization of Erdenet Mining Corporation (EMC) on Monday at the State Palace.

Mongolian Copper Corporation (MCC) bought 49 percent of EMC from the government of Russia and Russia's state-owned Rostec Corporation in 2017.

L.Oyun-Erdene reported on how MCC raised funds to buy the 49 percent EMC stake.

He highlighted that MCC had paid 400.27 million USD to buy the 49 percent stake of EMC, but MCC took 72.4 percent of the funding from state funds, and only 27.6 percent came from private funding, mostly from Trade and Development Bank (TDB).

L.Oyun-Erdene emphasized that MCC's fundraising scheme was carried out through 'illegally structured sources' by 'breaking' a number of Mongolian laws, and showed a board on which the fundraising scheme was illustrated.

According to the scheme, 62.9 million USD from the Ministry of Finance, 56.5 million MNT from Mongol Bank and Development Bank, and 283 million USD from the Ministry of Industry, Mongol Bank and TDB went into the account of MCC for the purchase of the 49 percent stake in EMC from Russia.

The head of the Cabinet Secretariat believes that Board Director of TDB D.Erdenebileg is behind this purchasing scheme.

L.Oyun-Erdene said that a handful businessmen and politicians are using Ts.Purevtuvshin, the...