Will RIO Follow Suit.. Doubt It EMC "TIGHTENS ITS BELT" PREVENTING ECONOMIC RISKS
Friday January 09, 2015
Director-general of the Erdenet Mining Corporation Ts.Davaatseren has given direction to cut out expenses when necessary except for the regular consumptions needed for the technical operations of the plant.
It has become one of the measures being taken for preventing the potential economic risk due to the decline in global copper prices, which went down to USD 6,170 per ton, and increases in the inflation and the rate of US dollar against the Mongolian Togrog.
The company's management costs, business trips, car fares, communications costs and the services performed by foreign companies, as well as the costs for social and cultural activities will be economized.
The EMC produces approximately 500 thousand tons of copper concentrate, which equals to 120 thousand tons in pure copper. The economic plans for 2015 have been estimated on the assumption that a ton of copper will be marketed at USD 6,600. Current economic conditions can bring an income deficit of about USD 50 - 60 million to the EMC.