[ET Net News Agency, 20 August 2013] Mongolian Mining Corporation (00975) said
according to the news published on the official website of the Government of Mongolia, the
Government discussed at its cabinet meeting held on 16 August 2013 the measures to support
coal exports from Mongolia.
Among other matters discussed, the Government, recognizing the importance of Ukhaa
Khudag - Gashuun Sukhait paved road (UHG-GS road) to coal exports, has resolved to
purchase the UHG-GS road from Gobi Road LLC, an indirect wholly-owned subsidiary of
Mongolian Mining Corporation, and the infrastructure built under the Border Crossing
Expansion project by Energy Resources LLC, an indirect wholly-owned subsidiary of
Mongolian Mining Corporation, with an aim to decrease transportation costs, an important
factor for coal export support.
The purchase amount payable to the Group by the Government in respect of the above
resolutions has not yet been discussed. The Board believes that the cash received will
allow the Group to maintain strong cash position until end of 2013. The Group will
continue to have unrestricted access to this transportation infrastructure.
Also, in order to lower coal transportation costs, the Government resolved to initiate
process to allow Chinese railway network cross-border access to Gashuun Sukhait and Shivee
Khuren border crossing points. (HL)