On December 25, ‘Erdenes Mongol’ LLC and ‘Erdenes Silver Resource’ LLC established an agreement with the Bank of Mongolia to cooperate in selling and purchasing precious metals and handed the first sample of refined silver, extracted from Salkhit silver deposit, to the State Fund of Treasury.
Within the five-year agreement, ‘Erdenes Silver Resource’ LLC is to supply fine silver bars with not less than 850-980 percent purity and receive the amount of payment as stated in the agreement. Speaker of Parliament G.Zandanshatar and Governor of the Bank of Mongolia B.Lkhagvasuren witnessed the signing of the agreement by CEO of ‘Erdenes Mongol’ LLC P.Gankhuu, CEO of ‘Erdenes Silver Resource’ LLC T.Munkhbayar and head of Reserve Management and Financial Markets Department of the BoM A.Enkhjin.
During the event, Speaker G.Zandanshatar remarked, “We believe that operations of Salkhit silver deposit will help to increase Mongolia’s foreign currency reserve. The signing of a five-year cooperation agreement between Erdenes Mongol LLC and the Bank of Mongolia lays a foundation to establish a Sovereign Wealth Fund. Article 6.1st of the Constitution of Mongolia reads, “The land, its subsoil, forests, water, fauna, and flora and other natural resources in Mongolia shall belong exclusively to the people and be under state protection.” The income from the deposit will be accumulated at the Sovereign Wealth Fund.”
CEO of Erdenes Silver Resource LLC T.Munkhbayar said, “According to the company’s business plan, it aims to extract and refine 750 tons of silver in five years and sell to the Bank of Mongolia. We plan to refine 25-30 tons of silver in the first year. We could refine 500 kg of silver in a very short period. Today, we are presenting a sample of the fine silver to the State Fund of Treasury, the Bank of Mongolia. From next June, our plant will start operating with its full capacity.”