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Report Date : |
28.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
ERDENES TAVAN
TOLGOI JSC |
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|
|
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Registered Office : |
Finance
Building, 1st, 2nd, 3rd, 4th, 6th
& 7th Floors, Jigjidjav 8 Street, Chingeltei District, 1st
Khoroo, Ulaanbaatar 151608 |
|
|
|
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Country : |
Mongolia |
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|
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Date of Incorporation : |
23.12.2010 |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
·
Producers, distributors
and exporters of coal Subject’s also holds mining licenses covering 94% land
area of Tavan Tolgoi coalfield. |
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|
|
|
No of Employees : |
500 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Mongolia |
C1 |
C1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
mongolia ECONOMIC OVERVIEW
Mongolia's extensive mineral
deposits and attendant growth in mining-sector activities have transformed
Mongolia's economy, which traditionally has been dependent on herding and agriculture.
Mongolia's copper, gold, coal, molybdenum, fluorspar, uranium, tin, and
tungsten deposits, among others, have attracted foreign direct investment.
Soviet assistance, at its height one-third of GDP, disappeared almost overnight
in 1990 and 1991 at the time of the dismantlement of the USSR. The following
decade saw Mongolia endure both deep recession, because of political inaction
and natural disasters, as well as economic growth, because of reform-embracing,
free-market economics and extensive privatization of the formerly state-run
economy. The country opened a fledgling stock exchange in 1991. Mongolia joined
the World Trade Organization in 1997 and seeks to expand its participation in
regional economic and trade regimes. Growth averaged nearly 9% per year in
2004-08 largely because of high copper prices globally and new gold production.
By late 2008, Mongolia was hit hard by the global financial crisis. Slower
global economic growth hurt the country's exports, notably copper, and slashed
government revenues. As a result, Mongolia's real economy contracted 1.3% in
2009. In early 2009, the International Monetary Fund reached a $236 million
Stand-by Arrangement with Mongolia and the country has largely emerged from the
crisis with better regulations and closer supervision. The banking sector
strengthened but weaknesses remain. In October 2009, Mongolia passed
long-awaited legislation on an investment agreement to develop the Oyu Tolgoi
mine, considered to be among the world's largest untapped copper-gold deposits.
Mongolia's ongoing dispute with a foreign investor over Oyu Tolgoi, however,
has called into question the attractiveness of Mongolia as a destination for
foreign direct investment. Negotiations to develop the massive Tavan Tolgoi
coal field also have stalled. The economy has grown more than 10% per year
since 2010, largely on the strength of commodity exports to nearby countries
and high government spending domestically. Mongolia's economy, however, faces
near-term economic risks from the government's loose fiscal and monetary
policies, which are contributing to high inflation, and from uncertainties in
foreign demand for Mongolian exports. Trade with China represents more than
half of Mongolia's total external trade - China receives more than 90% of
Mongolia's exports and is Mongolia's largest supplier. Mongolia has relied on
Russia for energy supplies, leaving it vulnerable to price increases; in the
first 11 months of 2013, Mongolia purchased 76% of its gasoline and diesel fuel
and a substantial amount of electric power from Russia. A drop in foreign
direct investment and a decrease in Chinese demand for Mongolia's mineral
exports are putting pressure on Mongolia's balance of payments. Remittances
from Mongolians working abroad, particularly in South Korea, are significant.
|
Source
: CIA |
Erdenes Tavan Tolgoi JSC
Building :
Finance Building, 1st, 2nd, 3rd, 4th,
6th & 7th Floors
Street :
Jigjidjav 8 Street
Area :
Chingeltei District, 1st Khoroo
Town :
Ulaanbaatar 151608
Country :
Mongolia
Telephone :
(976 70) 118 585 / Mobiles (976 99) 046 395 (Ms
Gantseseg)
/ (976 99) 036 440
Fax :
(976 70) 119 595
E-Mail :
gankhulug.b@erdenestt.mn / info@erdenestt.mn /
Website :
www.erdenestt.mn
Trading Style : Erdenes-TT
Also Known As : Erdenes Tavan Tolgoi XK / Erdenes
Tavan Tolgoi Joint Stock Company
Name
Position
1. C. Sainbileg Director
2. D. Chuluunhuu Director
3. B. Shenebaatar Director
4. B. Batzaya Director
5. D. Battbold Director
6. J. Battbold Director
7. N. Enkhtuya Director
8. D. Tumenjargal Director
9. B. Batterdene Director
10.C. Battsaihan Director
11.Batsuuri Yaichil Chief Executive Officer
12.Enkhbaat Chief Financial Officer
13.Ms Gantseseg Public Relations Manager
14.Ms Dolgoo Taisuruun Marketing Manager Assistant
15.Ms Enkhmaa Administrative Secretary
Total Employees : 500
No complaints have been
heard regarding payments from local suppliers or banks.
Subject subsidiary of
Erdenes Mongol LLC (frmly Erdenes MGL LLC) which is owned by Mongolian
Government.
We consider it is acceptable
to deal with subject for MEDIUM amounts, however in view of the lack of
financial information we recommend international suppliers exercise a degree of
caution. Although it is normal accepted practice for international suppliers to
deal on secured terms with Mongolian importers.
Trade risk assessment :
Above Average
NAME : GOLOMT
BANK OF MONGOLIA
Branch : Bodi
Tower, Sukhbaatar Square
Town : Ulaanbaatar
Telephone: (976 11) 311 530
Fax : (976
11) 312 307
The company also has an account with the
following banks :
1. Trade and Development
Bank Mongolia Ltd
Juulnchny Gudamj 7
Ulaanbaatar 210646
Telephone: (976 11) 312 362 / 331 133
Fax
: (976 11) 325 449
2. Khan Bank of
Mongolia
Peace Avenue
P.O Box-185
Ulaanbaatar
Telephone: (976 11) 457 880
Fax : (976 11) 457 880
3. Goldman Sachs
Peterborough Court
133 Fleet Street
London EC4A 2BB
United Kingdom
Telephone: (44 20) 7774 1000
4. Deutsche Bank AG
Taunusanlage 12
60325 FRANKFURT AM MAIN (for
letters and postcards: 60262)
Germany
Telephone: (49 69) 910 00
Fax : (49 69) 910 34225
5. BNP Paribas Singapore
20 Collyer Quay No. 01-01
Singapore 049319
Telephone: (65) 6210 1288
Fax : (65) 6224 3459
6. Macquarie (Australian
Bank)
No.1 Martin Place
Sydney NSW 2000
Australia
Telephone: (61 2) 8232 3333
Private companies in
Mongolia are not required to publish or
disclose balance sheets. Balance
sheets are not available from other
sources, and the subject
interviewed declined to give any financial
information, which the
company regards as strictly confidential.
Date Started : 23 December
2010
History : The Company was
established in Mongolia on 23 December 2010 and commenced production in July
2011.
Tax No.: 5435528
Capital : not given
Joint Stock Company with the following sole
shareholder :
Erdenes Mongol LLC 100%
Diplomat Building No. 95/63
5th khoroo
Chingeltei District
Ulaanbaatar 211238
Telephone: (976 70) 110 735
Fax : (976 70) 110 725
Website : www.erdenesmgl.com
Tax No.: 5124913
CEO: Mr. Enebish
Baasangombo
Personal profile on
Batsuuri Yaichil :
Employment History :
- Secretary Embassy of
Mongolia;
- Ambassador Foreign
Ministry;
- Member, Consular
Department Foreign Ministry;
- Member, Department of
Europe Foreign Ministry.
Education :
Bachelor's degree Moscow
State Institute of International Relations
MA, international relations
and trade Monash University.
Affiliated companies of Erdenes Tavan Tolgoi
JSC :
Subject is a subsidiary of Erdenes Mongol LLC, which also
includes the following companies :
1. Edenes Oyu Tolgoi LLC
(100%)
Monnis Tower
Chinggis Avenue 15
Sukhbaatar District, 14240
Ulaanbaatar, Mongolia
Telephone: (976 11) 331 880
Fax : (976 11) 331 890
2. Shivee Ovoo JSC
(90%)
Shivee Ovoo soum
Gobisumber province
Mongolia
Telephone: (976 99) 116 775
3. Baganuur JSC
(75%)
Baganuur District
Ulaanbaatar 211001
Telephone: (976 70) 210 114
Fax : (976 70) 213 130
4. Erdenet Factory
(51%)
Mongolia
5. Oyu Tolgoi LLC
(34%)
Monnis Tower, 4, 5, 6, 7, 11 and 12 Floors
Chinggis Avenue 15
Sukhbaatar District
Ulaanbaatar - 14240
Mongolia
Telephone: (976 11) 331 880
C.R. No.: 2657457
Tax No.: 9019006110
Foreign Investors Certificate : 00-218
Mining Licenses No.: 6709A / 6708A / 6710A
The Company is involved in the following
activities :
Producers, distributors and exporters of coal.
NACE Code : 510
Subject’s holds mining licenses covering 94% land area of Tavan Tolgoi
coalfield.
Subject has signed on 26 July Coal supply and purchase agreement with
Aluminum Corporation of China.
Exports mainly to China.
The Company has the following facilities :
Rented administrative
offices located at the heading address.
Interviewed : Ms Gantseseg
(Public Relations Manager).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.06 |
|
UK Pound |
1 |
Rs.99.61 |
|
Euro |
1 |
Rs.88.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.