Source: ITAR Tass                           Date: 16 December, 2010

Two Russian-Mongolian joint ventures, Erdenet and Mongolrostsvetmet, may merge and market their stock, Prime Minister V.Putin said after talks in Moscow with Mr. S. Batbold, his Mongolian counterpart. “We have discussed the possible merger of the two companies and an IPO,” he said. “Large-scale modernization of Erdenet and Mongolrostsvetmet is in progress, and I am confident that this process will considerably improve their competitiveness and have a positive effect on the Mongolian economy, whose personnel, resources and technological potential will grow,” Mr. Putin said. The two companies produce almost 20% of Mongolian GDP, while Erdenet provides nearly 40% of the Mongolian national budget.

“Russian companies – several dozens of them are working in Mongolia – actively invest in transport infrastructure, new railroad lines, mineral survey and mining,” Mr. Putin said. “These projects build up the export potential of Mongolia, in particular, through the use of Russian seaports in trade with third countries. These are Far Eastern seaports, in the first turn,” he said.