Mongolia to launch int'l audit on state-owned mining firm

By Burc Eruygur

ISTANBUL (AA) - Mongolia plans to commission international auditors to inspect a state-owned mining company's finances, a top official announced on Monday.

"It was decided to choose one of the best audit companies in the world and conduct a comprehensive audit. A working group has been formed to give Erdenes-Tavantolgoi a public status and conduct an IPO for internationalization," Interior Minister Khishgee Nyambaatar told journalists, according to state news agency Montsame.

Coal sales and all purchase contracts made by Erdenes-Tavantolgoi JSC would be made public and posted on its official website, Nyambaatar said during a press briefing after the decision by the country's Cabinet of Ministers.

"Having made a conclusion about the mistakes made, the working group will conduct a study and make a decision to make Erdenes-Tavantolgoi an international open company," Nyambaatar added, according to the report.

- Alleged 'coal theft' by former leader

Nyambaatar also asserted that former President Khaltmaagiin Battulga should be prosecuted for allegedly stealing coal, noting that the country's ex-leader had halted the construction of the Gashuunsukhait railway by a private company in 2008.

Battulga organized the construction of the railway, that was later completed in September to link a southern mineral-rich area with the Chinese border area of Gashuunsukhait, through a bonded loan, Nyambaatar added.

"Railway dams were started with this money, and then the construction of the railway was stopped. Later, it was Battulga who attracted the Bodhi International Company and recommended the construction of the railway. So personally, I think that this person (Battulga) needs to be checked first," he said.

Last week, several hundred people braved freezing temperatures in the capital Ulaanbaatar to protest against corruption in the coal industry and the country's ailing economy, with some trying to storm government buildings on Dec. 4.

On Thursday, Nyambaatar announced that eight people, including former CEO of Erdenes-Tavantolgoi JSC Battulga Ganhuyag, were arrested as part of investigations on the matter.