HK Stock Market Move | Mongolian Coking Coal (00975) fell nearly 18% in midday trading, subsidiary company's state shareholding exempted, plan to be replaced by special concession fees.

Mongolian Coal (00975) fell by nearly 18% intraday, as of the time of writing, down 14.51% to HKD 12.2, with a turnover of HKD 259 million. On the news front, it was reported that recently, Mongolian Prime Minister Zandanshatar signed preliminary profit sharing agreements with some mining companies. These agreements stipulate that 60% of the profits from the Ukhaa Khudag, Nariin Sukhait, and Baruun Naran (one of the Tavan Tolgoi mine) as well as the Oyut Ovoo copper mine will be returned to the Mongolian people through the National Wealth Fund in the form of savings. This is aimed at fulfilling corporate social responsibility and promoting the fair distribution of national resource revenues. Mongolian Coal issued a clarification statement in response to recent media reports, confirming that its operating subsidiaries ER and KEX have signed non-binding memorandums of understanding with the Mongolian government. According to the memorandums, the requirement for state ownership equity in the strategic mining sites will be waived, and it will be replaced by a special concession fee linked to market prices. The Mongolian government will enjoy 60% of the cumulative economic benefits from these mining sites.