Company Overview - Mongolian Mining Corporation is the largest producer and exporter of high-quality hard coking coal in Mongolia, operating the Ukhaa Khudag and Baruun Naran open-pit coal mines in Umnugobi province [4]. - The company is committed to minimizing its operational impact on the environment and adheres to all regulatory environmental standards [8]. - The company has established strong relationships with international financial organizations and commercial banks through its management team [19]. - The company is dedicated to fostering a culture of corporate governance as a key component of its organizational development [8]. Management and Governance - The board of directors includes Odjargal Jambaljamts as chairman and Battsengel Gotov as CEO, both of whom have extensive experience in the mining and energy sectors [11][17]. - Enkhtuvshin Gombo has been appointed as a non-executive director since September 30, 2017, and is also a member of the audit committee [19]. - The independent directors bring a wealth of experience from various sectors, enhancing corporate governance and strategic oversight [21][23]. - The management team has a diverse background in finance, economics, and strategic planning, contributing to the company's growth and market strategies [20][23]. Financial Performance - The financial summary and detailed financial statements are available for review, providing insights into the company's performance [2][211]. - In 2018, the company achieved a record raw coal production of 10.9 million tons, the highest since commercial coal mining operations began in 2009 [30]. - The company reported a record revenue of $590.7 million in 2018, with an adjusted EBITDA of $218.3 million, reflecting strong pricing power [30]. - Profit attributable to equity holders in 2018 was $82.8 million, a 72.5% increase compared to 2017 after excluding non-recurring items [30]. Market and Sales Strategy - The company is focused on developing extensive marketing strategies targeting the Chinese coal market, which is crucial for its coal sales [20]. - The company aims to expand its sales and distribution network in China, particularly in Inner Mongolia, Gansu, and Xinjiang, to strengthen customer relationships [30]. - The company is exploring new strategies for market expansion and potential mergers and acquisitions to enhance its growth prospects [8]. Environmental Sustainability - The company emphasizes safety, health, and environmental sustainability as core business strategies, aiming to minimize environmental impact [122]. - The company is focused on reducing its environmental footprint, including minimizing electricity and water usage, while enhancing operational efficiency [31]. - The company has implemented a dry cooling system at the UHG power plant, ensuring water usage is at least half that of similar capacity plants [172]. - The company has been actively involved in responsible water management since 2013, collaborating with international organizations and receiving the Water Resource Innovation Award in 2018 [158]. Community Engagement - Mongolian Mining Corporation focuses on building mutually beneficial relationships with local communities and government officials through community development initiatives [8]. - The company provided around 38,000 tons of coal for free to local communities during the winter season as part of its "Neighbor" program [187]. - The company supported 2,000 students and teachers at Tsogttsetsii soum school through its local education support program in 2018 [185]. - The company has invested about 734 million Tugrik in community development programs [177]. Employee Relations - The total number of employees increased to 1,938 as of December 31, 2018, up from 1,797 in the previous year [102]. - The company provided comprehensive health, accident, and life insurance to all employees, covering both occupational and non-occupational incidents [134]. - The company aims to hire at least 50% of its workforce from the local community [133]. - Employee turnover rate decreased to 8% in 2018, down significantly from the previous year, with a total of 1,938 employees by year-end [140]. Health and Safety - The company emphasizes a "zero harm vision" culture, aiming to prevent all accidents and occupational diseases [145]. - The total recordable injury frequency decreased by 30% to 3.57 in 2018 from 5.13 in 2017, while the lost time injury frequency reduced by 22% to 0.35 from 0.45 [148]. - A total of 15,492 safety training sessions were conducted in 2018, covering employees and contractors, compared to 9,469 in 2017 [148]. - The company recorded three lost time injuries during the reporting period, resulting in an overall lost time injury frequency of 0.35 per million hours worked [147]. Compliance and Governance - The board is committed to high standards of corporate governance, ensuring shareholder interests and enhancing corporate value [199]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors throughout the reporting period [199]. - The auditor found no issues indicating that the disclosed ongoing connected transactions were not approved by the board [119]. - The company has established an independent internal audit department to prevent unfair business practices and ensure compliance with applicable laws [129].
MONGOL MINING(00975) - 2018 - 年度财报