Rabo mandated for third Erdenet pre-payment loan
Rabobank has been mandated by Ocean Partners for a limited recourse pre-payment facility to Mongolian copper miner Erdenet, its third in just over a year.
July 22 (Trade Finance) Sole lender Rabobank has been mandated by Ocean Partners for a new a $45 limited recourse pre-payment facility to copper miner Erdenet of Mongolia.
The deal allows Ocean Partners, (as borrower of record) to make a further prepayment under its copper concentrate off-take contract with Erdenet. The deal represents the third pre-payment facility the miner has signed with Ocean Partners since June 2009.
In 2009, Rabobank and Banco Espirito Santo were co-lenders under two similar Ocean Partners / Erdenet prepayment facilities for $55 million and $40 million which closed in June and December respectively (Trade Finance 12/06/09 and 20/01/10)
Trade Finance understands the structure of the latest deal is very similar to previous facilities. Rabo was mandated in June and the deal is expected to close within a couple of weeks.
Massive Oyu Tolgoi copper-gold project moves to EPCM phase with Fluor
Fluor Corporation, which has been involved on Mongolia's major Oyu Tolgoi mine development ,virtually from the start, has now been awarded the PM and EPCM work to take the project through to production.
July 23, LONDON (MineWeb) - - Major U.S. engineering and construction group, Fluor Corporation, has announced that it has reached an agreement with Ivanhoe Mines to move forward with full-scale work at the latter's Oyu Tolgoi gold and copper mine development project in southern Mongolia. Fluor's scope of work will include overall program management (PM) as well as engineering, procurement and construction management (EPCM) for select portions of the construction of the huge mining complex, which will work one of the world's largest known copper- gold deposits. As a result, Fluor has booked approximately $1 billion into backlog for the project during the second quarter of 2010.
Okada shows interest in resources development in Mongolia
July 23, HANOI (Kyodo) Foreign Minister Katsuya Okada showed interested Thursday in the possibility of Japanese firms taking part in natural resource development projects in Mongolia when he met with his Mongolian counterpart Gombojav Zandanshatar in Hanoi, a Japanese official said.
In talks held on the sidelines of meetings of the Association of Southeast Asian Nations in the Vietnamese capital, Okada said Japanese companies are eager to be involved in coalfield development and uranium mining in the country, according to the official.
Khan Resources says Mongolian court case postponed
* Says NEA wants to change legal representative
* New date of hearing set for Aug. 2
July 22 (Reuters) - Canada's Khan Resources Inc (KRI.TO) said on Thursday a Mongolian administrative court has postponed the hearing of a case regarding the cancellation of its licenses, after the Nuclear Energy Agency (NEA) sought to change its legal representative.
"We are disappointed in the NEA's request to again postpone the court case," Chief Executive Grant Edey said in a statement.
Edey recently told Reuters the company was bracing for a long legal battle with Mongolian authorities to win final approval to develop one of the mineral-rich country's biggest uranium deposits.
Japanese lawmaker meets with fugitive Thai ex-premier in Mongolia
July 23, BANGKOK (Kyodo) Thailand’s ousted Prime Minister Thaksin Shinawatra, currently on the run from the law after being convicted of corruption, met Wednesday with a Japanese parliamentarian in Mongolia’s capital Ulan Bator, informed sources said Thursday. Thaksin met for about an hour in a hotel with Muneo Suzuki, a former state minister and current member of the House of Representatives from the small New Party Daichi.
Meritus to Drill 3000 Meters At Mongolian Gold Project
July 23, Vancouver, B.C.: Meritus Minerals Ltd. (MML) (TSX-V – MER) Meritus Minerals Ltd is pleased to announce that it has entered into a drilling contract to test its high grade gold project in Mongolia. The contractor has commenced mobilization to the site at Gutain Davaa. He is establishing the camp, constructing access roads to the drill sites and preparing the initial drill pads. Drilling will commence once this work is complete. The program will consist of from 32 to 35 HQ size diamond drill holes for a total of approximately 3000 meters.
The initial holes will be drilled close to the reverse circulation holes drilled by former owner Troy Resources Ltd (C.TRY). Several Troy holes intersected wide near surface zones of high grade gold mineralization such as 23 m of 11.42 g Au/t, 15 m of 15.09 g Au/t, 2.4 m of 55.23 g Au/t. The purpose of these initial holes is to better define the extent and geological structures containing the gold mineralization and this will enable better placement of subsequent holes.
Mongolia Coal Railway Will Link with Russia
Mongolia and Russia may speed up its previous talks to establish a joint venture Dornod Uranium and modernization of railway and mining cooperation, the 14th Mongolia-Russian inter-governmental commission meeting agreed in protocol, which concluded this week in Ulaanbaatar.
During the meeting, in which Russian side is represented by visiting Transportation Minister Igor Levitin, sides agreed to review 1949 agreement of the Ulaanbaatar Railway within this year. Russian side or Russian Railway agreed to invest US$250 million into Ulaanbaatar Railway, and to grant long-term tariff rebates to Mongolia’s transit freights through the Russian territory.
Igor Levitin reconfirmed Russian companies’ interests in developing Mongolia’s coal deposit Tavan Tolgoi, together with Russian Railways.
Mongolia Investment Summit planned in Hong Kong
July 23 (BCM NewsWire) Mines and Money Hong Kong will be hosting the Mongolia Investment Summit 2010, in association with the Foreign Investment and Foreign Trade Agency (FIFTA) of Mongolia on 14-16 October in Hong Kong. The meeting will showcase a range of Mongolia-based opportunities in the natural resources sector and beyond. With participants drawn from highest levels of the Mongolian government, the conference also offers investors the chance to meet key decision-makers within Mongolia and to receive first hand insights into the key market drivers, risks and influencers that are shaping the Mongolian market.
The speakers include:
· Mr. D. Zorigt, Minister of Mineral Resources and Energy
· Mr. D.Tsogtbaatar, State Secretary at the Ministry of Foreign Affairs and Trade
· Mr. Ts. Bayarsaikhan, MP and Head of the Standing Committee on the Economy
· Mr. D. Sugar, Chairman, State Property Committee
· Mr. D. Batkhuyag, Chairman, Mineral Resources Authority
· Dr. Ch. Khashchuluun, Chairman, National Development and Innovation Committee
· Mr. B. Ganzorig, Chairman, FIFTA
· Mr. O. Orkhon, First Deputy CEO, Trade and Development Bank
· Mr. Jim Dwyer, Executive Director, Business Council of Mongolia
· Mr. Masa Igata, CEO, Frontier Securities
· Mr. Parmeshwar Ramlogan, IMF Resident Representative, Mongolia, and
· Mr. Alexander Molyneux, President and CEO, SouthGobi Energy Resources.
MCM Approves MonCement Project
The Minerals Council of Mongolia (MCM) approves the MonCement Project developed by the MonPoliMet Group.
The MonPoliMet Group completed the feasibility study for this big project recently. The MCM member L.Purev briefly talks about the approved project.
What is the major importance of the MonCement Project?
Purev: The Council discussed and approved two separate projects under the MonCement Project; the construction of a lime mine and cement factory at the Sejit Khudag Lime Mine in the territory of Dornogobi Province.
The MonPoliMet Group conducted detailed explorations in the territory of Urgun Soum, Dornogobi Province for the last five years and explored 12 million tons of confirmed and 55 million tons of prognosis reserves in the explored area, which were approved by the Minerals Council of Mongolia.
Japanese company wants to use bacteria in airag
In summer 2007, Gentaro Yasuda of Calpis Co. traveled to Mongolia in search of new types of lactic acid bacteria.
He visited gers to sample and compare airag, the homemade fermented horse milk liquor whose recipes date back thousands of years.
Calpis, with a research institute affiliated with the Japanese Ministry of Economy, Trade and Industry, concluded an agreement with the Mongolian government that stipulates that bacterium will be isolated at a Mongolian laboratory, the isolated strains will be stored in both countries, and a fixed sum will be paid to the Mongolian side at the time of any patent application.
Banks, miners lift shares to third weekly gain
July 23 (AAP) Australia's share market held on to early strong gains, sparked by a rally on overseas markets overnight, to close higher for a third consecutive week. but remained almost 2 cents higher.
The benchmark S&P/ASX200 index ended up 83.7 points, or 1.9 per cent, at 4,458.4 points, while the broader All Ordinaries index gained 80.3 points, or 1.8 per cent, to 4,475.1 points.
For the week, the ASX200 rose 0.8 per cent, making it the first stretch of three weekly gains in a row since the middle of April.
Mr Spiteri said the release of European bank stress test results later tonight (AEST) could further reassure the market.
Among mining stocks, BHP Billiton gained 80 cents to $39.68, Rio Tinto adding $1.63, or 2.39 per cent, at $69.86 and Fortescue Metals rising 17 cents, or 4.21 per cent, at $4.21.
Financials were also stronger, with Commonwealth Bank up $1.32, or 2.64 per cent, at $51.24, Westpac up 58 cents, or 2.62 per cent, at $22.73 and ANZ up 31 cents at $22.41.
The price of gold at 1630 AEST was $US1,195.90 per fine ounce, up $US11.45 on Thursday’s close of $US1,184.45.
The top-traded stock by volume was Continental Coal, with 194.7 million shares worth $12.51 million changing hands.
Preliminary market turnover was 2.15 billion shares worth $5.08 billion, with 742 stocks up, 306 down and 316 unchanged.
On the Sydney Futures Exchange, the September share price index futures contract was up 89 points to 4,437 points, with 28,503 contracts traded.
AU Shares Set to Rise on Monday
July 24 (BusinessDay) --
EU Stress Tests Fail to Reassure Investors Wary of Criteria
July 24 (Bloomberg) -- European regulators found that seven banks need to raise a combined 3.5 billion euros ($4.5 billion) of capital, underwhelming analysts who said the stress tests may not have been strict enough.
“The amount of capital needed is much lower than the market expected,” said Mike Lenhoff, chief strategist at London-based Brewin Dolphin Securities Ltd., which oversees $33 billion. “It seems quite trivial considering the concerns about losses from the sovereign crisis.”
Germany’s Hypo Real Estate Holding AG, Agricultural Bank of Greece SA and five Spanish savings banks didn’t have adequate reserves to maintain a Tier 1 capital ratio of at least 6 percent in the event of a recession and sovereign-debt crisis, lenders and regulators said yesterday. The banks that failed the stress tests are in “close contact” with national authorities over how they will raise capital, said the Committee of European Banking Supervisors, which ran the assessments of 91 lenders.
‘Not Very Rigorous’
Before the results were published yesterday, analysts at Goldman Sachs Group Inc. estimated that lenders would need to raise 38 billion euros and Barclays Capital said they would require as much as 85 billion euros. Tests carried out in the U.S. last year found that 10 lenders, including Bank of America Corp. and Citigroup Inc., needed $74.6 billion.
“I don’t think the market is so stupid as to think that they were so wrong,” said Jason Brady, a managing director at Thornburg Investment Management in Santa Fe, New Mexico, which oversees about $57 billion. “The right explanation here is that the testing was not very rigorous.”
“The long-awaited stress tests do not seem to have been that stressful,” Gary Jenkins, an analyst at Evolution Securities Ltd. in London, wrote in a note to clients. “The majority of these bonds are held on the banking books.”
U.S. Stocks Rally, Almost Erasing 2010 Loss for Dow Average
July 24 (Bloomberg) -- U.S. stocks rose this week, almost wiping out the Dow Jones Industrial Average’s 2010 loss, after better-than-estimated earnings at companies from United Parcel Service Inc. to Apple Inc. and Ford Motor Co. lifted confidence the economy is recovering.
UPS, Apple and Ford gained 4 percent or more after their per-share profit beat the average analyst estimate by at least 9 percent. Genzyme Corp. jumped 21 percent, the most since 2000 and the biggest gain in the Standard & Poor’s 500 Index, after two people familiar with the matter said Sanofi-Aventis SA approached the drugmaker about a takeover.
The S&P 500 gained 3.6 percent to 1,102.66 this week, erasing its 1.2 percent loss from July 12 to July 16. It has gained 7 percent since June 30 in its first monthly gain since April. The Dow climbed 326.72 points, or 3.2 percent, to 10,424.62, cutting its 2010 decline to less than 0.1 percent.
Takeovers have also lifted equities. U.S. companies have been the targets of $397 billion in announced takeover offers so far this year, 11 percent more than at the same time last year, according to data compiled by Bloomberg.
Second-quarter earnings season began when Alcoa Inc. posted profit that exceeded analyst projections on July 12. S&P 500 companies will increase profits by 35 percent in 2010 and 17 percent in 2011, the fastest two-year gain since 1995, according to analyst estimates compiled by Bloomberg.
Inquest to be held into shooting of Bath man in Mongolia 13 years ago
July 23 (The Bath Chronicle) An inquest will finally be held next week into the shooting 13 years ago of an agricultural consultant from Bath in Mongolia.
Mr Jarman, who lived in the centre of Bath with his wife Sally and two children, was shot dead in a Mongolian hotel room.
At the time of the murder there was speculation that Mr Jarman might have disturbed a burglar or that he was assassinated because he had found evidence of corruption through his work in the capital Ulaan Bataar for the Asian Development Bank.
Sumo: Foreign wrestlers to outnumber Japanese for 1st time
July 23, NAGOYA (Kyodo) -- Second-ranked maegashira Aminishiki is set to miss the rest of the Nagoya Grand Sumo Tournament after injuring his right knee in Thursday's win over Georgian komusubi Tochinoshin.
The former sekiwake's withdrawal will leave more foreign wrestlers in the elite makuuchi division than Japanese for the first time in the history of the ancient sport, according to the Japan Sumo Association.
On Friday, there will be 17 makuuchi wrestlers from outside Japan against 16 Japanese.
Of the 17, 11 are from Mongolia, three from Georgia, and one each from Estonia, Bulgaria and Russia.
15 month old Mongolian boy gets gift of life
You could say it's an incredible journey for an incredible gift: a 15-month-old Mongolian boy gets a life-saving heart surgery right here in San Antonio.
Borkhuu had nearly an inch-sized hole in his heart, which doctors say was one of the worst defects they'd seen. It was patched after a four hour surgery Friday. He couldn't have received this treatment at home in Mongolia, so the organization HeartGift San Antonio brought him here and gave him the surgery at no cost to him. This type of operation could cost upwards of $160,000.
"Mogi" Munkhdul Badral
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