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Hunnu Coal, Seeking Funds, Studies Hong Kong Listing Next Year
April 29 (Bloomberg) -- Hunnu Coal Ltd., an Australian company developing coal mines in Mongolia, is studying the sale of shares in Hong Kong next year to fund new operations.
“The plan is to dual-list it on the Hong Kong stock exchange, middle to late-next year,” Chairman Matthew Wood said today in an interview in Bloomberg’s Melbourne bureau. The company sold A$20 million ($19 million) in shares in an initial public offering and began trading in Australia in February.
“When we go to Hong Kong we’ll have numbers very similar to” the market value of SouthGobi, he said, without providing further details. SouthGobi has a market value of HK$18.78 billion ($2.4 billion), compared with Hunnu’s A$140 million.
Posco agrees to aid Mongolian industry
April 30 (JoongAng Daily) Korea’s leading steelmaker said yesterday that it will develop coke and coal gasification facilities in Mongolia.
Posco said it signed a preliminary agreement with the Mongolian government for coke production and coal gasification and to help develop its steel industry. The company said its CEO Chung Joon-yang visited Mongolia from Sunday to Tuesday to discuss the project.
Finance Minister explains proposed graduated royalty rates (as promised + royalties on zinc, molybdenum and coal)
April 29 (news.mn) --
The Finance Ministry studied many types of taxes and then formulated the present draft. There will be a basic five percent royalty fees on every mineral commodity. This will be raised by one percent, up to a maximum of 5%, as commodity prices increase.
For zinc it will be 5 percent for below USD 2,000, 6 percent at USD2,500, 7 percent at USD 3,000, 8 percent at USD 3,500 and so on.
Royalty on molybdenum will be 6 percent when the price per ton is USD40,000, 7 percent when USD45,000, 8 percent when USD50,000, 9 percent when USD55,000, and 10 percent when it crosses USD 55,000.
Coal will be in two groups - raw and processed. In the case of the first, royalty will be 5 percent when the price is USD 25 per ton, six percent when USD35 per ton, 7 percent when USD 45, 8 percent when USD 55, 9 percent when USD65 and 10 percent if the prices exceeds USD65 per ton. As for coked coal, it will be 5 percent for price below
USD100 per ton, 6 percent for USD130, 7 percent for USD160, 8 percent for USD190, 9 percent for USD210 and 10 percent if the price is above USD 210.
Both draft election laws to be discussed in Parliament
April 29 (news.mn) The Standing Committee on Government Organization has decided that both draft election laws will be discussed in Parliament. One of them has been submitted by MPs L.Bold, P.Altangerel and R.Amarjargal, and the other by MPs like D.Lundeejantsan, Ch.Saikhanbileg, Z.Enkhbold, D.Oyunkhorol, D.Arvin, Su.Batbold, E.Bat-Uul, S.Lambaa, D.Odkhuu, D.Odbayar, S.Oyun and J.Sukhbaatar. The two party groups have already favored the idea.
South Gobi Sands to finish work on paved road soon (translation of D. Bat-Erdene's interview, reported on yesterday)
April 29 (news.mn) D.Bat-Erdene, Public Relations Manager at South Gobi Sands LLC, answers questions on the mining sector.
When will your company make paved roads?
Work on paved roads is 50 percent finished and should be over by August. Many accidents happen when transporting coal, sometimes resulting in death also. Such risks will now be less. The road will be 18 meters wide.
Mongolians in Shanghai Expo-2010
April 29 (news.mn) Mongolia is participating in the International Expo of Shanghai which will run from May 1 to October 31. The theme of the Expo is Beautiful City and Good Life and the Mongolian pavilion is called Gobi and City.
On display are paleontological findings in the Mongolian Gobi. There are also Mongolian art works and dresses. The Chinese Government gave USD900,000 to Mongolia to construct its pavilion on a 330-sq-meter area.
April 29 (FT) A low-profile Chinese couple have become the country’s wealthiest people overnight after an initial public offering that also earned Goldman Sachs a near 200-fold profit on the bank’s original $5m investment in the pair’s pharmaceutical company.
Wall Street Faces Capital Shortfalls, Pay Cuts in Banking Bill
April 29 (Bloomberg) -- JPMorgan Chase & Co. and Goldman Sachs Group Inc. are among U.S. investment banks that may be forced to raise an additional $250 billion in capital, cut executive pay and divest some of their most lucrative assets under a bill on the U.S. Senate floor today, analysts say.
- on average 70-80 companies are joining in daily
- the accumulated capital is to be placed in a bank and not spent until shareholders decide so. if wished the million MNT will be refunded in full
- the capital raised is to be used for IPO expenditures and hiring underwriters
- Board Members is to be selected next Wednesday during its general meeting
- legal name is to be "Монгол 999+ Үндэсний нэгдэл" ХК or "Mongol 999+ National Alliance" JSC. (probably there is no + in the name as it is not allowed by regulations)
- the idea for this "alliance" came about 1, 2 years ago but was originally thought to include 10-20 companies
- when asked how will Mongol 999 pay the 2 bln MNT asked by the government as prepayment, the head of the working group replied: it's not exactly 2 bln, it's 0.5-2 bln, and this can be raised by IPO
- when asked how will you compete with the foreign experienced bidders, replied: the alliance includes not only experienced miners but also financial, legal, clothing, ... firms with experience, therefore through knowledge-sharing we can compensate each other's shortcomings. Plus, mongolians are not inexperienced in coal, we have Baganuur, Shivee Ovoo.
Apri 29 (news.gogo.mn) summarized: apart from the 2 drafts previously reported to be introduced, a third one is said to be introduced, which proposes a proportional system where votes are given to parties.
The first draft proposes a single electoral district with votes for a single candidate. the second draft proposes 10 districts, based on population, and votes are both for parties and candidate.
Government hands in draft amendments to 2010 budget to speaker
April 29 (news.gogo.mn) Summarized: PM Batbold handed in draft amendments to 2010 general, social insurance fund, "Human Development Fund" budgets. this is to reflect the change in copper gold prices and shows an increase in both budget revenue and deficit. budget deficit will reach 6.4% which is higher than the agreement with IMF, which is 5%. but the 100 bln MNT government bond to restructure banks will not be included in the expenditure, therefore will not breach the stand-by agreement, the article says.
(details in english will be distributed as it is known)