Rio, Ivanhoe Relationship Sours
July 15 (WSJ) SYDNEY—The close relationship between global miner Rio Tinto Ltd. and Canadian company Ivanhoe Mines Ltd. appears to be unraveling just as their biggest joint project starts moving toward production.
At the center of the dispute lies a slow-motion tug-of-war over control of Mongolia's Oyu Tolgoi mine, the world's largest undeveloped deposit of copper and gold, due to start production in 2013.
Some analysts say Rio is intent on retaining the option of increasing its holding in Ivanhoe to a majority stake, with Ivanhoe's board equally intent on capping its control at 46.65%, or even reducing it.
Under the shareholder rights plan adopted by Ivanhoe's board in April, any party making an acquisition above 20% of the company would trigger a so-called poison-pill clause, allowing existing shareholders to purchase fresh shares and dilute the party's stake.
One issue raised by several observers is that Ivanhoe may fear a third party taking out a stake as an informal proxy for Rio, thus boosting the Anglo-Australian company's effective position above 50%.
The Mongolian government may also be wary of Chinalco's involvement. China would be the major consumer for the mine, but Ulaanbataar is prickly about Beijing and Chinalco is a Chinese state-owned company.
"The government is carefully analyzing the situation to make sure that the interests of Mongolia and its shareholding in Oyu Tolgoi are ensured and that strategic interests of the country are well protected," said Dashdorj Zorigt, Mongolian minister for mineral resources and energy.
Ivanhoe escalates Rio Tinto dispute
July 14 (FT) –
Analysts said the Canadian miner’s latest move was meant as a show of strength, though it might end up worsening their disagreement.
“Rio is at Ivanhoe’s mercy unless it wins the arbitration and Ivanhoe loses its poison pill,” one analyst said.
Leighton wins $700m Mongolia contract
July 15 (AAP) Leighton Holdings Ltd has secured a $700 million contract adjustment to increase production at Ukhaa Khudag (UHG) coal mine in southern Mongolia.
Energy Resources LLC has requested Leighton Asia expand production at its coal mine in the South Gobi region of Mongolia to 15 million tonnes a year by January 2013, Sydney-based Leighton said in a statement on Thursday.
Leighton Asia was awarded the mining contract for UHG Mine in February 2009.
Coal production commenced in April 2009 with total production of 1.8 million tonnes in the year ended 31 December 2009.
Petro Matad’s Chances To Find Commercial Oil On Block XX Boosted - Westhouse
July 14 (Proactive Investors) Broker Westhouse responded to Petro Matad’s (LON:MATD) discovery of oil shows in its Davsan Tolgoi-1 well in Mongolia, calling it “excellent news” as it indicated that oil migrated into Block XX, probably from Block XIX to the north, which is the location of Petro China’s oilfields.
In its Daily Oil & Fas Filter report, Westhouse said this means that even if the well is unsuccessful in finding commercial quantities of oil, there is a a good chance that such quantities will be found elsewhare on the block.
The news was reported yesterday, causing the shares to soar 49%. Westhouse, however, stated there was still much upside to the company’s current value.
The report stated that the main horizon could hold 122 million barrels on a P50 basis with an independent analysis rating the chance of success at 37%. Westhouse calculated NPV (net present value) on success at US$971 million, or 421 pence per share compared to the company’s current share price of 93 pence per share.
Nalco eyes assets in Namibia, Indonesia (and Mongolia)
July 13 (The Financial Express) Bhubaneswar: Aluminium giant, National Aluminium (Nalco) (of India) which has set its eyes on mineral resources world over, is soon going to appoint a consultant firm for its overseas ventures.
“We have floated a global tender to engage a consultant to advise on acquisition of mineral assets outside the country,” Nalco director finance, BL Bagra, told FE. He also added that many merchant bankers and investments bankers are showing interest in the tender, which is going to be closed in the first week of August.
Nalco is proposing to float separate joint ventures with Nuclear Power Corporation of India (NPCIL) and Hindustan Copper for acquisition of nuclear and copper assets respectively overseas. Nalco, which has cash reserves of Rs 4,400 crore, plans to fund the overseas ventures at the debt-equity ratio of 2:1.
Nalco is also looking for mineral assets in countries like Uzbekistan, Ukraine, Mongolia, Senegal, Surinam, Congo, Zambia.
“Mongolia: Capital Raising” Conference Presentations
(Frontier Securities) All the presentation materials presented at "Mongolia: Capital Raising" conference on June 15-16, 2010 in Ulaanbaatar are available here for download:
Day 1 of “Mongolia: Capital Raising” Conference
Dugarjav Ganpurev, Vice Chairman, Foreign Investment & Foreign Trade Agency
Foreign Investment Environment of Mongolia, Investment Opportunities
Tsogtsaikhan Gombo, Director, MonAtom LLC
Mongolian Uranium Perspectives
Masa Igata, Founder & CEO, Frontier Securities
Overview of Mongolian Investment Climate
Randolph Koppa, President, Trade & Development Bank of Mongolia
Raising Capital for Mongolian Companies
Shiau Sin Yen, Director of Natural Resources, Asia & Asian Industrials Group, UBS Investment Bank
Bringing Companies & SOEs of Mongolia to the Global Capital Markets
Rayon Chu, Partner, Capital Markets Services Group, PwC Hong Kong
Practical Roadmap to Public Listing
Lawrence Fok, Chief Marketing Officer, Hong Kong Exchanges & Clearing Limited
Hong Kong as Mongolia’s International Listing & Fund Raising Platform
Bric Luk, VP of DR Services, Citigroup
Depositary Receipts Overview
Jamie Barr, Head of Corporate Practice-Asia, Hogan Lovells
Listing in International Markets – Some Common Themes
Yutaka Ito, Chief Operating Officer, Tokyo AIM
Preparing for First Listings
Jung Suk Jo, Head of Listing Promotions, Korea Exchange
Why List on KRX
Naomitsu Abe, Senior Manager Responsible for Japan, Korea & Mongolia, London Stock Exchange
London – Gateway to European Capital Markets
Nicola Wakefield Evans, Partner, Mallesons Stephen Jaques
Listing on ASX for Mongolian Companies
John Johnson, Chief Executive Officer – China, CRU Group
Market Prospects for Key Mongolian Commodities – Impact on Raising Capital in International Markets
Justin Reynolds, MD Asia Pacific, IPREO
Mongolian Money Flows & Investor Relations
Ganbat Chuluunkhuu, Adviser to the Minister, Ministry of Road, Transportation, Construction & Urban Development
Mongolia: Building a Sustainable Economic Growth Through Downstream Industries and Infrastructure
David Rohanna, MD – Asia, Mining & Natural Resources, Quintana
Risk & Returns, Investing in Mining & Natural Resources in Mongolia
Thomas Eastling, Director – Advisory Services, American Appraisal China Ltd
IPO-related Valuation Services
Boldbaatar Dagva, Director, Bank of Mongolia
Wee Meng Goh, Senior Officer, International Operations¸ International Enterprise Singapore
IE Singapore, Ministry of Trade & Industry presentation
Graeme Hancock, Senior Mining Specialist, World Bank
The Investment Climate for Mineral Development in Mongolia
Mongolian president arrives in Buryatia
July 15 (Voice of Russia) Mongolia’s President Tsakhia Elbegdorj has arrived in Ulan-Ude, the capital of the Russian Republic of Buryatia.
President Elbegdorj, who presides in the World Congress of Mongols, will attend a general session of this non-governmental organization in Buryatia.
More than 330 delegates are taking part.
The Mongolian president is to visit members of the deep-dive expedition at Lake Baikal.
Spring Parliament Adjourns Today
Shares retreat after China GDP growth slows
July 15 (AAP) The Australian sharemarket lost ground, led by banks and miners, after China's latest growth numbers came in slightly weaker than expected.
The benchmark S&P/ASX200 index closed down 19.8 points lower, or 0.4 per cent, at 4442.6 points, while the broader All Ordinaries index was off 20.6 points, or 0.5 per cent, to 4456.7 points. The ASX200 had earlier been down 0.8 per cent.
What you need to know:
· The Australian dollar sank to buy 88 US cents
· Asian stocks cut losses after China data lands
· Spot gold rose to $US1211
· Oil hovered at $US77.04 a barrel
· Dow futures were up 5 at 10,311 points
In overseas news, the Chinese government reported the country's economic growth slowed to 10.3 per cent in the June quarter, compared with forecasts of about 10.5 per cent. China's March quarter growth was 11.9 per cent.
Inflation in China eased to 2.9 per cent in June, while retail sales, the main gauge of consumer spending in the world's third-largest economy, rose 18.2 per cent in the first half of 2010, as compared with a year ago.
Miners, banks retreat
Among the major miners, BHP fell 27 cents to $38.13 and Rio Tinto dropped 77 cents, or 1.14 per cent, to $66.61.
Among the banks, Commonwealth Bank fell 16 cents to $51.33, ANZ sank 20 cents to $22.60, National Australia Bank dropped 29 cents to $24.51 and Westpac dropped 25 cents to $22.73.
Fortescue Metals Group unveiled a strong June production report, showing iron ore shipments jumped sharply compared with the same period last year. But its shares dropped 18 cents, or 4.11 per cent, to $4.20.
At 1634 AEST, the spot price of gold in Sydney was $US1,209.50 per fine ounce, down $US4.53 from Wednesday’s close of $US1,214.03 but up from earlier in the day.
The most traded stock by volume at was Continental Coal, with 307.1 million securities changing hands for $17.5 million.
On the Sydney Futures Exchange, the September share price index contract was 28 points lower at 4,417 points, with 24,933 contracts traded.
Inner Mongolia to produce one-fourth of China's coal by 2015
July 15 (Xinhua) North China's Inner Mongolia Autonomous Region will increase it coal-producing capacity to 1 billion tonnes in 2015, one-fourth of the country's total, local authorities said Saturday.
The region saw its annual coal output soaring from 114.5 million tonnes in 2002 to 637 million tonnes in 2009, replacing Shanxi Povince as China's biggest coal producer.
Inner Mongolia will keep its coal output at around 700 million tonnes this year, and will shut down all small mines with annual output of less than 300,000 tonnes, the region's coal industry bureau said.
It will also reduce the number of coal companies from 350 at present to 180 and form two mining giants with annual output of 100 million tonnes through mergers and aquisitions, the bureau said.
The region, which has the country's largest proven coal reserve of 732.3 billion tonnes, will also invest more on the coal chemical industry to boost value added.
China Economic Growth Eases to 10.3% on Credit Curbs
July 15 (Bloomberg) -- China’s economic expansion eased to 10.3 percent in the second quarter and industrial production cooled more than forecast in June, signaling a deeper second- half slowdown that may add to risks for the global economy.
The gain in gross domestic product was less than an 11.9 percent increase in January-March from a year earlier. Inflation cooled to 2.9 percent in June, the statistics bureau also reported in Beijing today. Industrial output rose 13.7 percent, less than all but one of 27 forecasts in a Bloomberg News survey.
“There’s no more tightening happening in China” given the slowing expansion, said Stephen Green, head of China research for Standard Chartered Bank in Shanghai. Policy makers may loosen some real-estate curbs and approve more infrastructure and investment projects in the fourth quarter as growth slows toward 7 percent before picking up into 2011, he said.
A leading economic index for China rose 0.8 percent to 145.8 in May, The Conference Board said today. The indicator signals “solid but less robust growth in the second half,” said Bill Adams, a Beijing-based economist for the research organization.
Asian Stocks Drop as U.S. Fed Cuts Forecast; China Growth Slows
July 15 (Bloomberg) -- Asian stocks fell from a three week high on concern an economic recovery may falter after U.S. retail sales declined, Federal Reserve members cut their growth forecasts for the world’s biggest economy, and China’s expansion slowed.
The MSCI Asia Pacific Index declined 0.9 percent to 116.62 as of 5:50 p.m. in Tokyo, set for the biggest fall since June 30. …
Japan’s Nikkei 225 Stock Average dropped 1.1 percent, its biggest fall in two weeks. Australia’s S&P/ASX 200 Index lost 0.4 percent and New Zealand’s NZX 50 Index slid 0.8 percent in Wellington. Hong Kong’s Hang Seng Index retreated 1.5 percent.
S&P Futures Advance
The Shanghai Composite Index declined 1.9 percent after adding as much as 0.7 percent as Agricultural Bank of China Ltd. completed the first part of its initial public offering and the Chinese government said the country’s economy grew 11.1 percent in the first half of the year. …
Futures on the Standard & Poor’s 500 Index were little changed. In New York yesterday, the index slipped less than 0.1 percent as the decline in retail sales and the Federal Reserve’s assessment that the economic outlook has “softened” overshadowed Intel’s report.
Mitsubishi Corp., Japan’s largest trading company, retreated 1.9 percent to 1,963 yen in Tokyo. Inpex Corp., Japan’s largest oil explorer, sank 5.1 percent to 418,500 yen. In Hong Kong, Cnooc Ltd., China’s biggest offshore energy explorer, slumped 2.7 percent to HK$12.40.
Copper futures for September delivery lost 0.3 percent yesterday in New York, while crude oil for August delivery dropped as much as 0.7 percent in electronic trading today.
In Shanghai, Agricultural Bank rose 0.8 percent to 2.70 yuan on its first day of trading. China’s largest lender by customers rose from the IPO price of 2.68 yuan after raising $19.2 billion in the world’s biggest initial public offering in four years. The lender is scheduled to list its shares in Hong Kong tomorrow.
Q1 corporate profitability falls to 11.1 percent
July 15 (Reuters) - Corporate profitability, excluding financial companies, fell to 11.1 percent in the first three months of this year from a downwardly revised 11.3 percent in Q4 2009, official data showed on Thursday.
Association Of Asian Constitutional Courts Formalised
JAKARTA, July 12 (Bernama) -- Malaysia and six other founding members on Monday signed the Jakarta Declaration for the establishment of an Association of Asian Constitutional Courts and Equivalent Institutions.
… Mongolia (represented) by the Chairman of its Constitutional Court Jamsran Byambadorj.
"We have had several preparatory meetings in Mongolia and Seoul since 2005 and finally all the seven founding members today signed the Jakarta Declaration to formalise its establishment," he said.
Help Find Genghis Khan’s Tomb From the Comfort of Your Home
July 11 (Wired) From time to time, people in charge of large internet-based projects request the help of the general public to assist in their work. Think SETI@home and Galaxy Zoo. Currently, there is another project with which you can help, supported by National Geographic Digital Media.
It is called “Field Expedition: Mongolia — Valley of the Khans Project.” This project is a huge archaeological survey of parts of Mongolia, looking for the tomb of Genghis Khan and other Mongolian cultural heritage sites. Wired’s own Gadget Lab wrote about this project last year.
Hakuho unstoppable on 4th day of Nagoya sumo
July 14 (Kyodo News) –
(As previously reported, NHK, the sole broadcaster of Sumo tournaments decided not to broadcast July’s tourney, amid the public outrage over gambling)
“Mongolian Mongoose” Jargal To Fight On Tua-Barrett
MONGOLIAN MONGOOSE TO MAKE STAR DEBUT
All-Action undefeated jr. welterweight prospect, Bayan “The Mongolian Mongoose” Jargal (15-0-2, 10KO’s) will make his Star Boxing debut on the undercard of the PPV heavyweight showdown between WBO #2 rated David Tua (51-3-1, 43KO’s) and long-time perennial contender Monte Barrett (34-9, 20KO’s) on July 17th at the Tropicana Casino and Resort in Atlantic City, NJ. Jargal is scheduled to square off against James Hope (6-5, 4KO’s) over eight rounds.
Ancient Khitan relices on display in Hunan
July 13 (cntv.cn) --
The Khitan were a nomadic people that lived originally in what is today's Mongolia from the 4th century. They dominated a vast area in northern China by the 10th century under the Liao Dynasty, but left few relics that survived until today.
The Khitan lady of mystery is on display along with her gold at the Hunan Museum and runs through October 10th.
"Mogi" Munkhdul Badral
CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based ASX Licensed Financial Services Company. To trade ASX stocks, feel free to contact me at email@example.com or +976-9999-6779.