Tuesday, September 14, 2010

[cpsnewswire] [CPS NewsWire, Tuesday, September 14, 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 +976-99996779.





Hunnu Coal Site Visit Notes


Attached PDF is a Site Visit Report dating September 13, 2010, written by Patersons Securities of Australia


(CPS Securities was lead broker to Hunnu Coal’s 20 cents-a-share February, 2010 IPO on ASX. HUN shares prices closed at 87c today)







Hunnu Coal is very pleased to announce the appointment of Mr. Angus Caithness as Chief Financial Officer of Hunnu Coal Limited. This is a key executive appointment that will enhance the effective management and strategic development of the Company in Mongolia.

Mr Caithness is a Chartered Accountant, member of the Financial Services Institute of Australasia and was previously an Executive Director at Ernst & Young. He has been providing assurance and transaction advisory services across the international resources community within established and emerging markets for over 10 years.

In particular he has been a specialist advisor to mining companies in emerging markets that have listed on the London Stock Exchange. These have included Kazakhmys Plc, Gem Diamonds Ltd, Hochschild Mining Plc and Ferrous Resources Ltd. He has also provided accounting advice to the likes of BHP Billiton Ltd, Barrack Gold Corporation and Woodside Petroleum Ltd.

Mr. Caithness will also co-ordinate the Company’s Hong Kong (HKEX) listing process.



Hunnu Coal is very pleased to announce the appointment of Mr Gansukh Turmunkh as General Manager of Transportation and Logistics. This is a key executive appointment that will enhance coal haulage and related logistics of the Company in Mongolia.

Mr. Turmunkh was previously the Head of the Transportation Department of the Government Agency for Transportation in Mongolia. During his tenure in the Government he also served as a Secretary of the Intergovernmental Working Committee for Road Transportation of Mongolia and the Russian Federation and the Inter-governmental Committee for Border Area Cooperation.

Mr. Turmunkh will supervise all coal transportation planning and management from the mine sites to domestic and overseas customers as well as other related logistical matters for Hunnu Coal Limited.

Link to ASX release

(CPS Securities was lead broker to Hunnu Coal’s 20 cents-a-share February, 2010 IPO on ASX. HUN shares prices closed at 87c today)





CADEX and the Mongolian Railway State Owned Share Holding Company Sign Comprehensive Consulting Alliance Agreement Supporting Mongolia's Railway Infrastructure


TOKYO--(EON: Enhanced Online News)--CADEX KK of Tokyo, Japan and Mongolian Railway State Owned Share Holding Company of Mongolia (Mongolian Railway) today announced the formation of a wide-ranging business consulting alliance with aim of enhancing the railway infrastructure in Mongolia.

Under the newly signed agreement, CADEX and its Mongolian subsidiary CADEX LLC Mongolia (Ulaanbaatar) will act as a business consultant of Mongolian Railway, specifically as manager of projects to acquire railway technologies and personnel (through hiring and education/training) with the goal of contributing to the stable management and long-term growth of Mongolian Railway.

Under the alliance agreement, CADEX will apply its railway consulting and project management experience in China, as well as its human resources network, achievements and know-how throughout the Asian region, to build cooperative relationships with third parties outside Mongolia with the objective of rapidly achieving a stable freight transportation system, new business opportunities and the efficient development of underground resources.

About the Mongolian Railway State Owned Share Holding Company

Mongolian Railway was established in 2008 by the Government of Mongolia to equip and maintain the country's railway infrastructure, proactively promote the development of resources and supply these resources to international markets. Specifically, the company is working to rationalize Mongolia's logistics system, establish a safe and secure railway management system, and establish and maintain stable quality assurance systems, thereby modernizing Mongolia's railway system, raising the presence of Mongolia in the international resources market and contributing to the development of Mongolia's economy. The company is wholly owned by the Government of Mongolia.


CADEX was established in Tokyo, Japan, in 2002 to fill the role of indispensable partner in the continuing development of markets in Asia. We fill this role as consultant on transportation projects, taking part in project management and the supply of equipment and devices for infrastructure development. We also maintain trading operations centered on the development and marketing of nondestructive testing equipment to organizations in the aerospace and military industries in over 30 countries. Today, applying our know-how and strong networks throughout Asia, we are further expanding our business range to include consulting on corporate tie-ups and investment. For more information, visit our website at

Link to article




Rio Raises Ivanhoe Stake as Loan Converts Into Shares 


Sept. 13 (Bloomberg) -- Rio Tinto Group, the world’s third- largest mining company, raised its holding in Ivanhoe Mines Ltd. to 35 percent after the automatic conversion of a $350 million credit facility.

The loan and the accrued interest -- totaling $400.8 million -- converted into about 40 million shares at $10 apiece, London-based Rio said today in a statement. The loan was agreed on with Ivanhoe in 2007 and matured today, Rio said.

Rio and Ivanhoe are building the $4.6 billion Oyu Tolgoi copper and gold mine in Mongolia, which Rio has described as the world’s largest untapped copper and gold deposit, due to start output in 2013. The two companies are locked in a dispute over a shareholder rights plan adopted by Ivanhoe in April.

Under existing share-purchase warrants, Rio has the right to increase its stake to about 44 percent, it said today. In a July filing, Rio said it had held talks with Aluminum Corp. of China, which had indicated an interest in acquiring a minority stake in Ivanhoe or the project.

Ivanhoe, which spent more than six years negotiating an accord with Mongolia for the project, said in January it hired Citigroup Inc. to study options, including debt and equity offerings and asset sales.

Rio also said in the July filing it’s in talks with Ivanhoe about converting its equity stake in the company into a direct ownership stake in the mine. Any arrangement may require approval from the Mongolian government, Rio said.

The 81.3 billion pounds of copper and 46.4 million ounces of gold at Oyu Tolgoi may give the site a 59-year life, Ivanhoe said in May. The mine will produce an average of 1.2 billion pounds of copper and 650,000 ounces of gold a year for the first decade.

Link to article

Related article on WSJ

Official News Release on Marketwire



Mongolia to Take Bids for Tavan Tolgoi Contractor Next Month


Sept. 13 (Bloomberg) -- Mongolia will take bids for a contractor to mine Tavan Tolgoi, one of the world’s largest untapped deposits of steel-making coal, next month, said the country’s minister for minerals and energy.

“The bidding for the operator will be done in early October,” Dashdorj Zorigt said in an interview in the Chinese city of Tianjin today.

Mongolia, which shares a border with China and Russia, wants to retain ownership of new mines including Tavan Tolgoi, which holds more than 6 billion metric tons of coal. Among the companies that have said they are keen to develop Tavan Tolgoi is China Shenhua Energy Co., the biggest Chinese coal producer.

The nation expects to set up a state-controlled company, Erdenes Tavan Tolgoi, to oversee the deposit before the start of the mining season in April, Zorigt said on Aug. 3.

“The government is in the process of appointing an independent board and CEO for the Tavan Tolgoi company,” he said today.

Mongolia plans to sell 30 percent of the company controlling Tavan Tolgoi in share sales to help fund $1.5 billion of initial development cost, the minister said on July 8. The shares will be sold in Mongolia and overseas.

The government hasn’t decided which overseas stock market will handle the sale, Zorigt said today.

Link to article



Mitsui ties up with China's Shenhua in coal


* Aims to jointly develop Mongolia, overseas coal projects

* To expand coal supplies to Japan, China

* To discuss joint coal chemistry business

* Mitsui shrs up 0.17 pct vs broader market decline (Adds details, background, story links)

TOKYO, Sept 14 (Reuters) - Japan's second-largest trading house Mitsui has forged a partnership with top coal producer, China's state-run Shenhua Group, that paves the way for a joint bid to develop huge untapped coal reserves in Mongolia. The agreement comes as Mongolia weighs up how best to exploit the Tavan Tolgoi coal reserves, with the landlocked country wedged between China and Russia seeking to balance the interests of its powerful neighbours against mining development in its own interest.

"It's a resource that certainly a lot of people want to get their hands on, so it makes sense, given the fact that no matter what, you're going to have to pull it through China," Penn Bowers, analyst at CLSA Asia-Pacific Markets, said.

Mitsui said on Tuesday it and Shenhua would explore ways to jointly develop coal mines in Mongolia and other countries, discuss the manufacture and sale of chemical products developed from coal and expand coal supplies to China.

Some rival trading firms are sceptical whether Mitsui will go ahead in the Tavan Tolgoi project, citing the huge risks involved -- a lack of infrastructure and legal framework and only a minority stake of 30 percent allowed for foreign investors.

"I doubt if Mitsui will go ahead because there are too many unknowns," said an executive at rival trading house, who asked not to be identified as he was not authorised to speak on the matter.

Mongolia originally planned to sell as much as 49 percent of Tavan Tolgoi to a foreign bidder, but cancelled the sale early this year in favour of 100-percent state ownership, with plans to sign a development contract without giving any equity away.

Now, it plans to divide the deposit in two parts, one for Mongolia and the other for foreign development, although a final plan about the latter, including Shenhua's, has yet to emerge.

Link to article



FACTBOX-Mongolia's Tavan Tolgoi coking coal deposit


BEIJING, Sept 14 (Reuters) - Mitsui & Co, Japan's No.2 trading house, said on Tuesday it had inked a broad pact with the world's largest coal producer, Shenhua Group Corp of China, which includes the joint development of coal mines in Mongolia and other overseas projects. [ID:nLDE68D0AP]

The two are expected to bid for development rights to Mongolia's Tavan Tolgoi coal field.





Link to article





S3 Investment Company Announces Opening of Redwood Capital Office in Ulaanbaatar, Mongolia

New Office is Expected to Allow Closer Working Relationships With Clients as the Company Explores Additional Business Opportunities in Mongolia


DANVILLE, Calif., Sep 13, 2010 (GlobeNewswire via COMTEX) -- S3Investment Company, Inc. (Pink Sheets:SIVC) today announced that the company's wholly owned Redwood Capital subsidiary has opened an office in Ulaanbaatar, Mongolia, which is expected to allow the company to work more closely with clients that operates in the Mongolia market as well as explore additional emerging opportunities the country.

Earlier this year, Redwood Capital, which assists private Chinese companies in accessing the North American capital markets by achieving reverse merger and financing transactions, signed a new client that operates in Mongolia's mining sector. Redwood Capital has attended Mongolia investment events and is also exploring additional opportunities in the country.

"Redwood Capital has identified Mongolia as an important emerging global market, and the new office in Ulaanbaatar will allow the company to better assist existing clients and explore new opportunities with companies that operate in Mongolia," said S3 Investment Company Chairman and CEO Jim Bickel. "Establishing a physical presence in this market is an important step for Redwood Capital, and we expect to update client activities in Mongolia in the near term."

Mr. Bickel and Matthew Totty, Director of Research and Investment Banking for Redwood Capital, were recently interviewed by Frontier Securities COO Yuji Iwasaki, and the interview is available for viewing at youtube. Frontier Securities, a member of the Mongolian Stock Exchange, is the first local Mongolian securities firm with a global network and international expertise. Frontier has been given full-service securities related licenses by the Financial Regulatory Committee (FRC) of Mongolia and has brokerage, dealing and underwriting licenses that are regulated by FRC.

Link to article



Japanese to train workers before investing in large projects


September 14 ( During his recent visit to Japan Minister for Mineral Resource and Energy D. Zorigt and his hosts agreed that expanded private sector investments in the biggest projects should be encouraged and facilitated.

Arrangements will be made to train workers and to develop comprehensive collaboration in introduction and use of new techniques and technology in many sectors.  Joint research on geological resources in Mongolia will begin and the Japan Bank for International Cooperation (JBIC) will consider increasing the quantum of development assistance to Mongolia. 

Link to article



Government to hold 51% share in Development Bank


September 14 ( The head of the National Development and Reform Committee (NDRC) has said there has as yet been no response to the very recently published advertisement for a management team to run The Development Bank. The last date for submitting a bid is November 22, and the NDRC and the State Property Committee will make the choice then. The Bank will provide finance for large development projects, including those in infrastructure and processing factories. 

The bank’s proposed capital will be at least MNT5 billion, 51% of which would be from the Government and the rest will come from investors and donor countries. It has been decided to have a team of international professionals to manage the bank as there are not enough experienced Mongolian bankers. The selection will be restricted to those with working experience in international finance and the Executive Director should have a track record of ability to attract investment from diverse sources.

Link to article



A Private Visit (by Emir of Kuwait) To The Republic Of Mongolia


September 14 (Arab Times) His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah and his party arrived at Chinggis Khaan (or Genghis Khan) International Airport Friday evening, commencing a private visit to the Republic of Mongolia.

The Amir is accompanied by Vice President of Kuwait National Guards Sheikh Meshaal Al-Ahmad Al-Jaber Al-Sabah and a number of senior officials. They were given a red carpet reception by Chief of the Presidential Staff Dashjamts Battulga and Presidential Advisor for foreign policy affairs Foreign Policy Purevsuren Lundeg.

Link to article





Ulaanbaatar, Mongolia, /MONTSAME/ Official currency exchange rates as of September 14 set by the Bank of Mongolia:

USD U.S. Dollar 1,326.14
EUR Euro 1,698.85
JPY Japanese Yen 15.80

HKD Hong Kong Dollar 170.73

CNY Chinese Yuan 196.19

CAD Canadian Dollar 1,284.96

AUD Australian Dollar 1,235.70

Link to article




Close: Shares of Mongolia Related ASX Listed Companies, September 14, 2010




$ +/-








HUN  *

 0.870  Down









 0.014  No change









 0.185  No change









 0.120  Up









 0.115  Up









 34.200  Down








RIO  *

 75.150  Down









 39.050  Up








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.




Shares hang on to gains


September 14 (AAP) Close, Shares ended the day slightly higher, after gains were shaved in afternoon trade as regional sharemarkets turned south.

At the close, the benchmark S&P/ASX200 index was up 11.6 points, or 0.3 per cent, at 4626.5, after earlier rising to a fresh four-month high of 4649.1. The broader All Ordinaries index gained 14.9 points, or 0.3 per cent, to 4669.1.

Among the sectors, materials rose 1 per cent, energy gained 0.8 per cent, while financials were flat and IT shares lost 1.5 per cent.


- Japan's Nikkei index slips 0.2%
- The dollar hovers above 93 US cents
Oil trades at $US77, near 1-month high
Gold adds $US4 to $US1249
- Dow futures are steady at 10,467

Analysts said the benchmark index's close above 4622 signalled a technical break-out from its recent trading range high of 4600, which was a positive sign and set up the next target around 4720.

National Australia Bank’s monthly business confidence index rose to 11 in August, reversing a decline in July, and was slightly better-than-expected, adding to the market's positive sentiment.

BHP Billiton rose 49 cents, or 1.3 per cent, to $39.05, while fellow mining giant Rio Tinto lost 15 cents, or 0.2 per cent, to $75.15.

Rio spends on projects

Rio Tinto said it would invest $US803 million to upgrade its Argyle diamond mine in Western Australia. Rio Tinto also said it had used the maturation of a credit facility to increase its stake in Ivanhoe Mines to 34.9 per cent.

Ivanhoe Mines is a Canadian public company that owns 63 per cent of the ASX-listed Ivanhoe Australia. Ivanhoe Australia shares finished flat at $2.83.

Room for more gains

"We've had better data from overseas and China in particular, and in terms of the banks, the slightly better outcome at Basel has taken the pressure off," said F.W Holst research manager David Spry.

"I think there is room for a bit more upside, particularly with bank deposit rates lower people may be switching into equities," he said.

Link to article



Most Asian Stock Markets Rise on Growth Hopes; Japan Declines


Sept. 14 (Bloomberg) -- Most Asian stock markets rose, led by commodity producers as a forecast for faster European economic growth boosted confidence in a global recovery. Japanese shares fell on concern the yen trading near a 15-year high against dollar will erode the nation’s export earnings.

The MSCI Asia Pacific Index gained 0.1 percent to 123.87 as of 7:21 p.m. in Tokyo. About five stocks fell for every four that rose on the gauge, which earlier advanced as much as 0.4 percent. The measure has climbed 7 percent from a one-month low on Aug. 25 amid speculation the U.S. will avoid slipping into its second recession in three years.

Benchmark gauges in 10 of 16 markets in the region advanced. Australia’s S&P/ASX 200 Index advanced 0.3 percent. Hong Kong’s Hang Seng Index gained 0.2 percent. Japan’s Nikkei 225 Stock Average and South Korea’s Kospi index lost 0.2 percent.

Twice As Fast

China’s Shanghai Composite Index closed little changed as Premier Wen Jiabao said the nation’s economy is in “good shape” and the government will curb property market speculation.

Futures on the Standard & Poor’s 500 Index were little changed. The index climbed 1.1 percent yesterday in New York to the highest level in a month after China reported an increase in industrial production and the European Commission said Europe’s economy may grow almost twice as fast as previously forecast this year.

Gross domestic product in the 16-nation euro region may increase 1.7 percent this year instead of the 0.9 percent projected at the depth of Europe’s fiscal crisis in May, the Brussels-based commission said in a report published yesterday.

Crude oil for October delivery climbed 1 percent to $77.19 a barrel yesterday in New York, the highest settlement price since Aug. 11. The London Metal Exchange Index of six metals including aluminum and copper jumped 1.8 percent yesterday, the first gain in three days.

“I am a huge bull on this country (US),” billionaire Warren Buffett said yesterday at the Montana Economic Development Summit. “We will not have a double-dip recession at all. I see our businesses coming back almost across the board.”

Banks in Asia have high capital ratios and will be able to avoid the degree of fundraising needed elsewhere to meet the new international standards, Zhu Min, a former deputy governor of China’s central bank and vice president of Bank of China Ltd., told Bloomberg Television yesterday.

“The Basel agreement cleared the uncertainty about banks, and it wasn’t as bad as the market was fearing,” said AMP Capital’s Naeimi.

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 +976-99996779.


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