CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-9999-6779.
Hunnu starts trial mining at Mongolia coal mine
PERTH, August 11 (miningweekly.com) – ASX-listed coal explorer Hunnu Coal on Wednesday reported that it had started trial mining at the Unst Khudag coal mine, in Mongolia.
The trial opencut operation would produce an initial supply of coal for bulk test work, and for delivery to potential offtake partners for independent test work.
Hunnu said in a statement that the trial mine would also deliver important geotechnical and hydrological data, which would be used in the modelling of a much larger upscaled opencut mine.
Offtake agreements were currently being negotiated with both Mongolian and Chinese thermal coal users, said Hunnu.
Meanwhile, an extensive drilling programme has recently started with the aim of generating an initial Joint Ore Reserves Committee- (Jorc-) compliant resource during the coming months.
The Unst Khudag project has an exploration target of between 250-million tons and 500-million tons, and coal analysis has revealed a high-quality thermal coal product.
Link to article
(CPS Securities was lead broker in Hunnu’s February ASX IPO. Share offer was A$0.20, closed today, August 16 at A$0. 865 )
Russia to consider possibility of setting up JV in uranium with Mongolia
MOSCOW, August 14 (RIA Novosti) Russian government has introduced into the lower house of the Russian Parliament, the State Duma, an intergovernmental agreement with Mongolia on setting up joint uranium mining company with limited liability Dordon Uran.
The agreement was signed by head of the Russian state corporation Rosatom Sergei Kirienko and head of the Atomic Energy Authority of Mongolia Sodnomyn Enkhbat on August 25, 2009 in Ulan Bator.
Mongolia has never sealed deals in uranium with other countries.
The product output of the Russian-Mongolian uranium mining joint venture is planned at 2,000 tons per year.
The equality founders of mining venture are Atomredmetzoloto (ARMZ) on the Russian side and MonAtom LLC on the Mongolian side.
(Mogi: interesting how Russia is confident of getting the license previously owned by Khan Resources, when court battles to get it back is still ongoing in Mongolia)
SouthGobi Aims to Secure Second Mongolia Pit License
Aug. 13 (Bloomberg) -- SouthGobi Resources Ltd., backed by China’s sovereign wealth fund, aims to get a mining license for a second coal pit in Mongolia by the year-end.
The company will apply for a permit for the Soumber deposit in the coming months, Chief Executive Officer Alexander Molyneux said at a media briefing in Hong Kong today. About $205 million is needed to develop the mine, he said.
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SouthGobi hopes to start production at Soumber by 2012, Molyneux said. The pit’s reserves of coking coal are “radically higher” than previously thought, he said, without giving a new estimate. Additional survey work had been carried out at the site this summer, Molyneux said.
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The coal producer has $744 million in cash to fund expansion plans and doesn’t need extra financing to develop Soumber, he said.
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China Investment Corp. owns about 13 percent of SouthGobi’s shares. The company plans to produce about 14 million tons of unprocessed coal in 2013, compared with 1.3 million tons last year, Molyneux said in an interview on April 14.
New Entree Coal License in Mongolia
August 13 (UB Post) Entree Gold has received a mining license covering the Nomkhon Bohr coal discovery, which was outlined through exploration efforts in 2008-2009.
The new mining license comprises about 14,030 hectares and covers the north-west corner of the former Togoot exploration license.
The portion of the property included in the mining license is mainly underlain by Permian sediments, which are known to host rich coal deposits in this part of the Gobi Desert.
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“Our 100%-ownership of the property and 30 year initial term of the license gives us many strategic options.”
The Nomkhon Bohr thermal coal occurrences lie within Permian sedimentary rocks thought to be of similar age to those hosting the multi-billion tone Tavan Tolgoi thermal and metallurgical coal deposits, about 80km to the north-west.
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Aspire Mining’s Ovoot Coking Coal Project Presentation
August 16,
Link to presentation here
Erdene Provides Project Updates and Second Quarter Financial Results
HALIFAX, NOVA SCOTIA, Aug 12, 2010 (MARKETWIRE via COMTEX) -- Erdene Resource Development Corp. ("Erdene" or "Company") (CA:ERD 0.34, +0.03, +9.84%)today provided an update on its principal projects in conjunction with the release of its second quarter 2010 financial results.
2010 Second Quarter Highlights
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-- Work continued to advance the Zuun Mod Molybdenum Project in Mongolia; resource was officially registered with the Mongolian Minerals Resource Council, a prerequisite to applying for a mining license; pre- feasibility level studies continue.-- The 2010 coal and metals exploration programs in Mongolia continued throughout the quarter; new coal and metals targets identified in south- western Mongolia.… Zuun Mod Molybdenum Project
In July, subsequent to the end of the second quarter, the Zuun Mod molybdenum-copper deposit was officially registered by the Mongolian Minerals Resource Council, a prerequisite for applying for a mining license. The Company will now proceed with an application for a mining license for the Zuun Mod project. The mining license application will be for approximately 10,000 hectares, a reduction from the current 49,538 hectare exploration license.
… Zuun Mod is a porphyry molybdenum-copper deposit containing 215 million pounds ("Mlbs") of molybdenum in the Measured and Indicated category, grading 0.054% Mo, and a further 208Mlbs in the Inferred category grading 0.051% Mo, making it one of the largest undeveloped molybdenum-copper deposits in the Asia region. Erdene controls the Zuun Mod deposit through a single exploration license totaling 49,538 hectares, located in Bayankhongor Province in Mongolia, approximately 950 kilometers southwest of Ulaanbaatar and 215 kilometers from railhead on the Mongolia-China border at Ceke. The railhead is located 20 kilometers south of the Nariin Sukhait and Ovoot Tolgoi coal mines.
Regional Coal and Metals Exploration Program
During the second quarter, field work was started for both the coal and metals exploration programs in Mongolia. The coal exploration program is focused on evaluating the potential of several large basins (Zarman and Nomin) in southwestern Mongolia to host coal deposits. Work to date has identified coal bearing lithologies, up to 32 metres apparent thickness, which outcrop discontinuously over a strike length of 60km along the northern edge of the Zarman basin. Work is continuing to further evaluate these findings, including geophysical surveys (magnetic and seismic), in preparation of a drilling program expected to commence by early September.
A budget of US$1.9 million is in place for 2010 coal exploration programs in Mongolia, which is fully funded by Xstrata Coal Canada Ltd. through the Erdene-Xstrata Coal Alliance. Xstrata Coal Canada Ltd. has the right to earn a 75% interest in any of Erdene's coal projects in Mongolia by fully funding the projects through to completion of a feasibility study.
…Link to article As Mongolia develops, Canada leads the way
Miners see enormous payoffs – and big risks – in emerging democracy
August 15 (The Star, Op-Ed) ULAANBAATAR, MONGOLIA – Instead of the traditional barbecues and fireworks that are part of Canada Day celebrations at home, Canadians here marked July 1 listening to a tuxedoed Mongolian baritone perform our anthem at an embassy reception outside a former dictator’s palace.
Not surprisingly, many of the ex-pat guests were mining company executives. As Mongolia’s second-highest export partner after China, Canada is also the largest foreign investor in Mongolia’s resource sector, with about 25 firms active in the country.
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Still, Mongolia is still considered a risky place to invest, as some Canadian companies are discovering. The Fraser Institute’s 2009-10 survey of mining companies measures the effects of government policy in 72 jurisdictions around the world. Mongolia ranked in the bottom 10, along with Zimbabwe and Venezuela.
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Mongolians want jobs as well as taxes and royalties, in a country where unskilled labourers in the city make as little as $3 a day. By comparison, a driller with two years training can earn US$4,000 a month in Mongolia – even more on the international job market.
“The vision is to grow the GDP by processing natural resources rather than extracting and exporting,” says Ganbat Chuluunkhuu, who returned after six years as a Wall Street investment banker to become team leader of a government investment task force. “Industrialization could create that middle class for Mongolia.”
Chile is viewed as a role model for fiscal success through a strategy that helped local suppliers prepare to meet international standards. “We’re now seeing Chilean suppliers exporting mining supplies to the rest of the world. Until a few years ago they were net importers of things like drill bits,” said Hancock. “I see opportunities for that in Mongolia as well.”
Until the revenues begin filling government coffers in a big way, mining companies are providing their own largesse. A rural development project financed by CIDA and local companies such as Boroo Gold Co. Ltd., a subsidiary of Canadian firm Centerra Gold Inc., trained poor families in vegetable farming and marketing in Mongolia’s fertile northern region.
Junior mining company Entree Gold Inc., currently exploring on its South Gobi properties, consults the local governor every year to see what projects are most urgent. The company has spent millions on improvements from a new activity centre and pharmacy to a herd of goats and fodder for a region hard hit last year by the exceptionally cold winter (called a dzud).
“We could give nothing and still get our permits,” said Entree operations manager Kelly Patterson. “Or you can do it the right way.”
Mongolia races to meet China’s needs
August 16 (FT Blog) SouthGobi Resources owns the right asset in the right place at the right time. The Hong Kong-listed Mongolian mining company is controlled by Ivanhoe Mines of Canada, and operates the Ovoot Tolgoi mine just 40km from the border with China.
Since March, Oovot Tolgoi has produced about 200,000 tonnes of coal a month, most of it destined for Chinese steel mines and power plants.
That represents a dramatic turnaround from the same period last year, when production was halted because of a tangle at the Shivee Khuren-Ceke border crossing that illustrates the profound impact China’s rapid economic growth is having on its vast and resource-rich neighbour.
Like other designated points along the Sino-Mongolian frontier, Shivee Khuren-Ceke had been a sleepy, seasonal border crossing that facilitated reunions between Mongolians and their kinfolk in Inner Mongolia, a Chinese province, during festival periods.
The development of Oovot Tolgoi transformed the surrounding economy, previously focused on cashmere production, and put a strain on Shivee Khuren-Ceke, which SouthGobi’s prospectus notes experienced “erratic and unpredictable opening hours and sporadic closures” in early 2009.
Speaking to reporters at post-results briefing on Friday, Alexander Molyneux, SouthGobi chief executive, said his company’s subsequent production hiatus was implemented to clear the backlog that accumulated during the border disruption.
Now designated a “permanent border crossing” by the Mongolian and Chinese foreign ministries - and open 11 hours a day, six days a week - Shivee Khuren-Ceke is no longer a bottleneck.
But the Mongolian authorities are still racing to alleviate other infrastructure challenges arising from Chinese demand for the country’s resources. Mining companies routinely operate 100-tonne trucks over a national road network only designed for vehicles of up to 60 tonnes. Mongolia is scrambling to upgrade its road standards accordingly.
STOCK EXCHANGE WEEKLY NEWS
August 15, Ulaanbaatar, Mongolia, /MONTSAME/ Five stock trades were held at Mongolia's Stock Exchange (MSE) during the week from August 9 to August 13. Overall 399.9 thousand shares of 33 JSCs were sold totaling 79.7 million MNT trade.
Index top-20 is 10204.47 points increased by 98.01 units, or 0.96% against the previous week. The total market capitalization was set at MNT 860.5 billion, increasing by MNT 7.2 billion or 0.84%.
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NORTHEAST ASIAN ECONOMIC FORUM APPROACHES
August 16, Ulaanbaatar, Mongolia, /MONTSAME/ The19th Northeast Asia Economic Forum will take place August 26-27, 2010, in Mongolia's Government house. The forum has been organised by the Office of the President of Mongolia, the Government, Northeast Asia Association, Asian Pacific Institute aand Northeast Asia Economic Forum of the USA.
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PREMIER COMES BACK
August 16, Ulaanbaatar, Mongolia, /MONTSAME/ The Prime Minister S.Batbold arrived Sunday in Ulaanbaatar city after three-week tour to western aimags. He held meetings with local people and introduced to them governmental works, activities and decisions.
The Premier covered 5,600 km way through 70 soums of nine aimags to hear opinions of people in localities. Before leaving for Ulaanbaatar he gave a reported to media in Ovorkhangai aimag. He discussed with the media an issue on price increase of flour, and obliged the related officials to take measures to reduce the price boost of flour and to keep the stable price.
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Australia
Shares lose ground for 4th day in five
Australian shares resumed their recent retreat with bank and miners leading the way lower. Positive results from some of the larger companies helped to pare the day's losses.
By the close, the benchmark S&P/ASX200 index was 21.1 points lower, or 0.5 per cent, at 4438.5 points, while the broader All Ordinaries index lost 15.5 points, or 0.35 per cent, to 4465.4.
On a sector-by-sector basis, financials lost 1 per cent, while materials gave up 0.4 per cent. Energy stocks advanced 0.7 per cent.
What you need to know:
· The Australian dollar was buying 89.4 US cents
· Asian stocks slide after Japan's growth fizzled
· European stocks were up 0.5% in early trade
· Spot Gold hovered at $US1219 an ounce
· Oil edged higher to $US76 a barrel
· Dow futures were up 42 points at 10,308
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BHP Billiton and Rio Tinto traded lower throughout the session, with BHP closing down 40 cents, or 0.99 per cent, at $40.00 and Rio Tinto easing 61 cents, or 0.85 per cent, to $70.82.
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Leighton Holdings FY Net Profit Rises 39% To A$612.0M
August 16, MELBOURNE (Dow Jones)--Leighton Holdings Ltd. (LEI.AU) on Monday posted a 39% rise in full year net profit and said work in hand increased to a record, putting it on a strong footing for the current financial year.
Australia's largest construction group said in a statement that net profit for the 12 months to June 30 was a record A$612.0 million, up from A$440.0 million a year ago.
The group's revenue rose to A$14.6 billion from A$13.3 billion a year ago. Total revenue, including joint ventures and associates rose 2% to A$18.6 billion, Leighton said, exceeding its guidance of A$18.5 billion.
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(Mogi: Leighton shares closed up 5.88% today on the news)
Ambassador lectures on foreign policy in Australian university
August 14 (news.mn) Ambassador to Australia Ts.Jambaldorj recently gave a lecture on the foreign policy of Mongolia and how its diplomatic service works at the School of Pacific and Asian Studies of the Australian National University. The event was organized to mark the 100th anniversary of Mongolia’s adoption of modern diplomatic practices and to popularize Mongolian studies in Australia.
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Global
Most Asian Stocks Retreat as Japan GDP Fuels Growth Concern
Aug. 16 (Bloomberg) -- Most Asian stocks fell, led by Japanese shares, after the country’s economy grew at the slowest pace in three quarters. The Shanghai Composite Index posted its biggest two-day advance this month as China overtook Japan to be the world’s second-largest economy last quarter.
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About five stocks declined for every four that advanced in the MSCI Asia Pacific Index, which fell 0.1 percent to 117.75 as of 5:59 p.m. in Tokyo. The retreat extended last week’s 3.7 percent slump, the most since May, as economic reports indicated the global recovery is faltering.
Japan’s Nikkei 225 Stock Average declined 0.6 percent. The country’s economy grew at less than a fifth of the pace economists estimated last quarter, pushing it into third place behind the U.S. and China. The Nikkei 225 has fallen 19 percent from an 18-month high on April 5.
China Stocks Advance
South Korea’s Kospi index sank 0.2 percent. Australia’s S&P/ASX 200 Index retreated 0.5 percent. Hong Kong’s Hang Seng Index gained 0.2 percent.
The Shanghai Composite rallied for a second day, advancing 2.1 percent, as higher commodity-freight rates boosted shipping companies and rising power demand drove energy producers higher.
Futures on the Standard & Poor’s 500 Index slipped 0.3 percent. The index dropped 0.4 percent on Aug. 13 after a report from the Commerce Department showed retail purchases increased 0.4 percent in July, compared with economists’ estimates of a 0.5 percent gain.
Government figures today showed Japan’s gross domestic product rose an annualized 0.4 percent in the three months ended June 30, less than the median economist estimate in a Bloomberg News survey for annual growth of 2.3 percent.
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Largest Share Sale
Agricultural Bank of China Ltd. was the fourth most-active stock by trading volume among Chinese shares after boosting the size of its initial public offering to $22.1 billion. The bank sold more stock in Shanghai to make its IPO the world’s largest first-time share sale. The stock rose 0.7 percent to 2.71 yuan.
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Chinese economy eclipses Japan's
August 16 (FT) The Chinese economy eclipsed the Japanese economy in size in the second quarter after Japan posted poor economic growth figures for the period, increasing the chances that China will officially overtake Japan as the world’s second-largest economy for the year.
The Japanese economy grew at an annualised, seasonally-adjusted pace of 0.4 per cent in the three months ended June. That was much lower than the revised 4.4 per cent growth rate recorded for the first quarter, and well below the 2.3 per cent expected by economists.
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The nominal size of the Japanese economy in the second quarter was $1,288bn, compared with $1,337bn for China, according to a Japanese government official. But the official cautioned that the comparison was inappropriate because China, unlike Japan, does not produce seasonally adjusted data.
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Monday’s economic growth figures could add to pressure on policymakers to find other ways to deal with slowing growth and the impact of the stronger yen on the recovery. Last week, the central bank kept its economic assessment unchanged and did not announce any further easing measures.
Investors were spooked by the GDP numbers and the Nikkei index fell 0.6 per cent to 9,197, closing in on the psychologically important 9,000 level.
The Fraser Institute: Updated Global Mining Survey Shows Miners Souring on Regions Pondering Tax Increases; Australia, Quebec, Nevada Suffer Biggest Declines
TORONTO, ONTARIO--(Marketwire - Aug. 11, 2010) - With many governments around the globe considering new taxes and regulations on mining activity, international mining executives are looking less favourably on these formerly mining-friendly jurisdictions, according to the results of the Survey of Mining Companies: 2010 Mid-Year Update, released today by the Fraser Institute, Canada's leading public policy think-tank.
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The bottom 10 scores went to Ecuador, Mongolia, Kazakhstan, Bolivia, Venezuela, Zimbabwe, Russia, Colorado, Indonesia, and Tasmania.
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HKEx May Extend Trading Hours to Align With China
Aug. 12 (Bloomberg) -- Hong Kong Exchanges & Clearing Ltd., operator of Asia’s third-biggest stock market, is considering extending its trading hours to align with mainland China’s markets, said Chief Executive Officer Charles Li.
The stock exchange is proposing that the city’s trading day begin at 9:30 a.m. with a one-hour break at noon and market close at 4 p.m., Li told reporters in Hong Kong yesterday after the bourse announced a 3 percent increase in first-half profit. The market currently opens at 10 a.m. and has a two-hour break from 12:30 p.m. before closing at 4 p.m.
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Hong Kong Exchanges has received approval from its board to consult with market participants about the extension in trading hours, Li said.
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Superbug panics world
BEIJING, Aug. 16 (Xinhuanet) -- A new superbug, known as NDM-1, which stands for New-Delhi-Metallo, is likely to become one of the deadliest pandemics worldwide, media reported Monday.
The bacterial gene has reportedly become resistant to all known antibiotics, including the most powerful class called carbapenems.
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Three people in Australia were reportedly infected after traveling to India for surgery.
"We are potentially at the beginning of another wave of antibiotic resistance, though we still have the power to stop it," Christopher Thomas, a professor of molecular genetics at the University of Birmingham, said in a statement.
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Misc.
THE ARMANI GROUP OPENS ITS FIRST EMPORIO ARMANI STORE IN ULAANBAATAR, MONGOLIA
August 14 (Fashion & Runway) The Armani Group opens its first Emporio Armani store in Ulaanbaatar, Mongolia.
Located at Sukhbaatar Square in the Central Tower Building, the new store occupies over 210 square meters on the ground floor.
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Giorgio Armani says: “This store is a wonderful development for Armani, because Mongolia is such an exciting, energetic, vibrant country, with a fascinating culture and history. Whenever I open a new store in a new country I am always pleasantly surprised to find that there is a customer there waiting for the opportunity to experience my designs. I am sure that Mongolia is ready to welcome Italian fashion and design.”
Briton dies as Mongol Rally team crashes in Iran
A British man has died in a road crash as a charity car rally passed through Iran, the Foreign Office has said.
August 11 (BBC News) A second British man in the vehicle and another member of the same team in the Mongol Rally are in hospital and in a stable condition. The accident happened on 6 August near the city of Mashhad.
About 350 teams left the UK in July on the 10,000 mile (16,093 km) event.
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Number of tourists increases
August 14 (news.mn) Figures released by The National Tourism Center show that there has been a 50.9% increase in the number of tourists arriving in Mongolia in the first six months of 2010 over the corresponding period last year. Citizens from Asia Pacific countries account for more than half of the 233,612 foreign citizens who came, followed by those from Europe.
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"Mogi" Munkhdul Badral
CPS International
Email: mogi@cpsinternational.mn
Mobile: +976-99996779
CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-9999-6779.
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