Wednesday, August 25, 2010

[cpsnewswire] [CPS NewsWire, Wednesday, August 25, 2010]

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 or +976-9999-6779.




Mongolia Mining Railroad Rerouted to Avoid China, Group Says


Aug. 25 (Bloomberg) -- Mongolia will connect a new coal mine to the national rail network rather than build a direct link to China because authorities want to avoid over dependence on their southern neighbor, a New York-based research group said.


International advisers said a link from the Tavan Tolgoi coal deposit, 200 kilometers (124 miles) from the Chinese border, should go directly to its expected market, China, said in an article posted on its website. Mongolia had been working with Deutsche Bahn AG to build a line using the Chinese rail gauge instead of the wider track used in Mongolia and Russia, the article said.


Mongolian leaders feared that a direct link to China would leave the country with too much economic dependence, the article said. Mongolia has 2.6 million people while China, the world’s second-biggest economy, has a population of more than 1.3 billion. China considered Mongolia part of its territory until the middle of the last century.


“Instead of shipping raw materials directly to one market, jobs and value-added production will be created in Mongolia,” the article cited Transportation Minister Battulga Khaltmaa as saying.


Mongolia also wants to sell some of the coal to Russia, Japan and South Korea, which would be made easier by a railroad linking in to Russia’s rail network, the article cited Dashbaljir Nemekhbayar, head of the Transportation Ministry’s Finance and Investment Department, as saying. focuses on providing analysis about political, economic and social developments in Central Asia, Russia, the Caucuses, Turkey and Southwest Asia. It is linked to the Open Society Institute, which is funded by billionaire hedge-fund manager George Soros.


Link to article


Wary of Chinese Intentions, Mongolia Opts For More Expensive Rail Development Plan


August 24 ( As they ponder ways to develop Mongolia’s abundant natural resources, political leaders in Ulaanbaatar are opting for more expensive infrastructure options in order to bolster the country’s sovereignty.


The leadership’s sovereignty concerns were evident in the recent announcement that a railroad spur leading from the country's largest coal mine would link into the country’s domestic railroad network, rather than go directly to China. If completed as currently planned, the spur would go against the advice of international financial institutions that say the Chinese route would be far cheaper. Mongolian officials have emphasized that the domestic route would better protect Ulaanbaatar from possible Chinese economic and political pressure.

The company that now owns Tavan Tolgoi, Energy Resources LLC, (Mogi: Energy Resources actually owns not the whole TT but just a small portion of it) had been working with the German state-owned railway Deutsche Bahn AG, to build a railroad southward, to connect with the Chinese rail network. But that plan ran into resistance from Mongolia's political leaders, who feared that too great an economic dependence on China could leave them with less policy-making room for maneuver down the road. China controlled Mongolia for more than 200 years, ending with the collapse of the Manchu dynasty in 1911, and many Mongolians today remain deeply distrustful of China's intentions toward their country.

Several factors went into determining the Tavan Tolgoi railroad route, Dashbaljir Nemekhbayar, head of the Transportation Ministry's Finance and Investment Department, told EurasiaNet. The primary concern, Nemekhbayar indicated, is the government desire to encourage the development of the Sainshand industrial complex. The planned route would take coal from Tavan Tolgoi to Sainshand.


But Mongolia also didn't want to become too dependent on China, he said, pointing out that in 2002, when the Dalai Lama visited Mongolia, China expressed its displeasure by closing the border. “Who knows, they could do that any time,” Nemekhbayar said. Mongolia also hopes to sell some of the coal to South Korea, with which it has close ties, and Japan. And the route through Russia would make more sense for exports to those countries, Nemekhbayar said.


Russia also played a key role in the decision, Nemekhbayar added. Russia, as a legacy of the former Soviet control over communist Mongolia, currently has a roughly 50-percent stake in the Mongolian state rail company, Ulaanbaatar Railway. “There may have been some pressure from Russia,” Nemekhbayar said, noting that both Russian President Dmirty Medvedev and Prime Minister Vladimir Putin visited Mongolia last year. Russia also has offered to pay for part of the construction of the new rail line.

Soon, the government will open a tender on construction of the rail line, and “most likely it will be a Chinese contractor,” Nemekhbayar said, noting that Chinese compnies have the most regional experience and offer low costs. While the government has said the railroad will be constructed within two years, Nemekhbayar said it is more likely to take three or four years.


Link to article




NAR Forges Long Term Collaboration with Sinosteel Trading


Hong Kong, Aug 24, 2010 (ACN Newswire via COMTEX) -- North Asia Resources Holdings Limited ("NAR" or the "Company") (stock code: 61) announced that the Company has signed a memorandum of understanding (the "MOU") with Sinosteel Trading Co., Ltd. ("Sinosteel Trading") on 18 August 2010 for long-term cooperation with respect of the Company's iron ore mining operation in Mongolia.


Under the MOU, Sinosteel Trading has agreed to jointly establish or to introduce strategic investors from the People's Republic of China to jointly establish high value-added processing facilities with the Company, including direct reduced iron and pelletised iron facilities. Furthermore, Sinosteel Trading has agreed to purchase and underwrite, through China Railway Mongolia Investment LLC all iron ore products processed by the Company in Mongolia, while evaluating potential equity investment in the Company.

About North Asia Resources Holdings Limited


North Asia Resources Holdings Limited (SEHK:OO61)and its subsidiaries entered into the resources mining business in Mongolia in December 2009. Subsequently, the Company acquired two alluvial gold mineral licenses in Mongolia. The Company now owns and operates an iron/copper and an alluvial gold mining project in Mongolia. Please visit


Link to article




General Mining To Kick Off Drilling At Uvs Potash Project In Mongolia


August 25 (Proactive Investors-AU) Perth-based General Mining (ASX: GMM) is to commence drilling in September at its fully owned Uvs Basin potash project in Mongolia, once all necessary approvals are received.

The project comprises 5 granted exploration licences covering more than 2,000 km2 within the Uvs Nuur Basin that is considered prospective for bedded and domal (salt diapir) potash deposits as well as for lithium and potassium brines.

The company’s exploration team, working together with German consulting firm ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH, carried out field reconnaissance at the Uvs project.

The company also plans to use the availability of a drilling rig at the Uvs project to test areas of previously unexplored alluvial placer potential within the company’s exploration licences.


Link to article


(Mogi: perfect timing of release as global focus is somewhat on potash right now thanks to the ongoing battle for world’s largest potash producer Potash Corp. between BHP and others, which reportedly includes Rio Tinto. GMM shares closed 2c lower to 12.5c, but had risen 3c or 32% in the previous two sessions)






August 24, Ulaanbaatar, Mongolia, /MONTSAME/ The Minister of Foreign Affairs of Japan Mr. Katsuya Okada will pay an official visit to Mongolia August 29-30 at the invitation of Mongolia's Foreign Minister G.Zandanshatar.

During the upcoming visit, Mr. Okada will hold negotiations with the Mongolian Minister of Foreign Affairs. They will exchange views on the Mongolia-Japan relations and cooperation and on regional and international issues. 

In addition to it, the President Ts.Elbegdorj and the Prime Minister S.Batbold will receive the Japanese Foreign Minister.


Link to article


(Mogi: Minister’s sudden arrival was news to many. Suspicion would be he’ll be here to talk resources)







Close: Shares of Mongolia Related ASX Listed Companies, August 24, 2010




$ +/-









 0.925  Down









 0.013  No change









 0.185  Down









 0.070  Down








GMM  *

 0.125  Down









 30.160  Down









 69.450  Down








BHP  *

 37.440  Down








An * next to the security code indicates there has been an announcement today relating to that security. Click on the * to view the list of today's announcements.






Spooked investors sell shares


August 25 (AAP) Close Australian shares have fallen to their lowest level in over a month as investors sold out of equities in response to renewed economic concerns in the US.

At the close, the benchmark S&P/ASX200 index was down 61.2 points, or 1.4 per cent, at 4320.1, while the broader All Ordinaries index lost 61.8 points, or 1.4 per cent, to 4356.6.


All sectors were in the red, with materials down 1.3 per cent, financials losing 1.7 per cent and energy falling 2.4 per cent.


"Wall Street provided a negative lead on the back of disappointing housing numbers and it was enough to really spook our market," said CMC Markets institutional equities dealer Anthony Whitaker.


What you need to know:


·         The dollar was buying 88.32 US cents

·         Asian shares drop, with the Nikkei at a 16-month low

·         In the US, the S&P500 fell 15.49 points to 1051.87

·         Gold rose $US8.77 an ounce to $US1230

·         Oil claws back to near $US72

·         Dow futures are flat at 10,021

‘The Australian market as usual is a slave to Wall Street,’’ Mr Bishop said. ‘‘They got a fright with the housing figures in America, and that upset the market mightily.

In resources, Rio Tinto lost $1.62 to $69.45 and BHP Billiton dropped 10 cents to $37.44 ahead of the release of its full year results, which came after the market closed.

Link to article




Independents to meet with Australian political leaders


CANBERRA, Aug. 25 (Xinhua) -- The three incumbent Australian federal independent Member of Parliaments will meet with Labor and the Coalition on Wednesday, but they are warning the process of forming the nation's next government could take weeks.

Link to article






Asian Stocks Retreat on U.S. Home Sales, Slowing Japan Exports


Aug. 25 (Bloomberg) -- Asian stocks slumped, dragging the MSCI Asia Pacific Index to a one-month low, as a record plunge in U.S. home sales and slowing export growth in Japan added to evidence a global economic recovery is weakening.

The MSCI Asia Pacific Index dropped 1.4 percent to 116.10 at 5:30 p.m. in Tokyo, set to close at the lowest level since July 22. Concern economic growth in the U.S., Europe and China will falter has dragged the gauge down by 10 percent from its high this year on April 15.

Japan’s Nikkei 225 Stock Average declined 1.7 percent to its lowest level since April 30, 2009. The gauge has fallen 22 percent since its high for this year on April 5, passing the threshold of a 20 percent decline that some analysts regard as the starting point of a so-called bear market.


Australia’s S&P/ASX200 Index retreated 1.4 percent in Sydney. South Korea’s Kospi Index slipped 1.5 percent in Seoul. Hong Kong’s Hang Seng Index declined 0.1 percent, while the Shanghai Composite Index fell 2 percent.


Futures on the Standard & Poor’s 500 Index gained 0.4 percent. The gauge sank to a seven-week low yesterday following the drop in home sales.

Yen Strength


The yen appreciated to as much as 83.90 against the dollar today, compared with 84.97 at the close of stock trading in Tokyo yesterday. Against the euro, it rose to as much as 105.92 from 107.41. A stronger yen reduces overseas income at Japanese companies converted into their home currency.


The yen climbed to a 15-year high against the dollar yesterday and is on course for its strongest annual average level since currencies began trading freely in 1971, according to data compiled by Bloomberg and based on each day’s close.

‘External Risks’


“Optimism is still strong, but the key is how external risks will affect the economy,” said Lee Sang Jae, an economist at Hyundai Securities Co. in Seoul. “The BOK may face more difficulty raising rates further if things get worse.”

Aluminum Corp. of China Ltd., the nation’s biggest producer of the metal, dropped 1.8 percent to HK$6.15 in Hong Kong. BHP Billiton, Australia’s largest oil producer, fell 0.3 percent to A$37.44. Woodside Petroleum Ltd., Australia’s second-largest oil and gas producer, lost 2 percent to A$42.27.


Rio Tinto Group, the world’s third-biggest mining company, declined 2.3 percent to A$69.45. Macarthur Coal Ltd. plunged 9 percent to A$11.25 after the company selling shares.

Link to article




BHP’s Full-Year Profit Doubles on Higher Metal Prices 


Aug. 25 (Bloomberg) -- BHP Billiton Ltd., the world’s largest mining company, reported a more than doubling in full- year profit, helping to drive its $40 billion hostile takeover offer for Potash Corp. of Saskatchewan Inc.


Net income was $12.7 billion for the year ended June 30, from $5.9 billion a year ago, the Melbourne-based company said today in a statement. That missed the $13.3 billion average estimate of 15 analysts compiled by Bloomberg. It compares with 2008’s record $15.4 billion.

BHP declined 0.3 percent to A$37.44 at the 4:10 p.m. Sydney time close on the Australian stock exchange. The final dividend was 45 cents a share, up from 41 cents a year earlier, the company said.

The company joined competitors Anglo American Plc, Xstrata Plc, Vale SA and Rio Tinto Group in reporting an increase in profit in the past month as the economic recovery pushes up commodity demand and prices.


Link to article




Rio Unlikely to Make Potash Bid, UBS Says After CEO Meeting


Aug. 25 (Bloomberg) -- Rio Tinto Group, the world’s third- largest mining company, is unlikely to make a takeover bid for Potash Corp. of Saskatchewan Inc., UBS AG said after meeting with Chief Executive Officer Tom Albanese.


“A bid or even a joint bid for Potash Corp., as alluded to in the press, is far from happening,” UBS analysts led by Olivia Ker and Glyn Lawcock said in a report dated yesterday. The company is focused on growth by expansion and acquisitions of a “small-to-moderate” size, Ker said, citing Albanese.

Rio’s “focus in the near term appears to be resurrecting the growth projects that were curtailed during the last two years,” UBS said. This may include the underground expansion of the Argyle diamond mine, aluminum smelter refurbishments, expanding its iron ore operations and developing Oyu Tolgoi copper mine in Mongolia, the report said.

Link to article




U.S. Economy: Home Sales Plunge as Tax Credit Wanes 


Aug. 24 (Bloomberg) -- Sales of existing houses plunged by a record 27 percent in July as the effects of a government tax credit waned, showing a lack of jobs threatens to undermine the U.S. economic recovery.

Stocks tumbled and Treasury securities rallied, sending yields on 10-year notes to the lowest in 17 months, on concern the industry at the heart of the financial crisis will lead the nation back into a recession. Recent reports on jobless claims and manufacturing point to a slowdown in growth that may prompt the Federal Reserve to consider additional moves to boost the economy.

Link to article




"Mogi" Munkhdul Badral

Executive Director

CPS International


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 or +976-9999-6779.




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