Rostec receives Mongolian copper

Rostec has become a shareholder in the mining Russian-Mongolian joint ventures Erdenet and Mongolrostsvetmet. In recent years, the Russian side had significant claims to the companies: non-payment of $47 million of dividends for 2012, the lack of management control and so on. Rostec intends to strengthen the management team of the joint ventures and doesn’t rule out that it will take the share of the production, which is due to the Russian Federation, but it will have to negotiate with the Russian manufacturers of copper for this.

Rostec has received 49% in each of the mining enterprises Erdenet and Mongolrostsvetmet (control belongs to Mongolia) from the Federal Property Management Agency. The Government decided to transfer these shares to Rostec in 2008, representatives of the state-owned corporation joined the Boards of Directors and management of the companies in 2009. But only this October, the Parliament of Mongolia ratified the changes in the intergovernmental agreements, Rostec reported.