Thursday, January 27, 2011

[cpsinewswire] [CPS NewsWire, Thursday, January 27, 2011]

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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Close: Mongolia Related ASX Listed Companies, January 27, 2010




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ASX Announcements, January 27, 2011

-       Xanadu Mines (ASX:XAM) – Quarterly Activities Report, Quarterly Cashflow Report

-       General Mining Corporation (ASX:GMM) - Quarterly Activities Report, Quarterly Cashflow Report



Ivanhoe Mines Announces Successful Completion of Rights Offering

Preliminary Results Indicate Approximately 99% of Available Rights Were Exercised, Generating Approximately US$1.18 Billion in Gross Proceeds for the Company

TORONTO, ONTARIO--(Marketwire - Jan. 27, 2011) - Ivanhoe Mines (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) announced today that its strategic rights offering expired on January 26, 2011, as scheduled. Based on preliminary results that are subject to confirmation of amounts that will be received from brokers using guaranteed delivery procedures, Ivanhoe estimates it will receive gross proceeds of approximately US$1.18 billion from the rights offering to help finance construction of the Oyu Tolgoi copper-gold project in Mongolia.

Also based on preliminary results, Ivanhoe expects to issue a total of approximately 85 million new common shares through the rights offering, which would represent approximately 99% of the maximum number of common shares available under the rights offering. 

Robert Friedland and Rio Tinto, Ivanhoe Mines' two largest shareholders, both exercised all of their respective rights that were issued to them in the rights offering. Mr. Friedland also purchased an additional 1.5 million rights on the open market and exercised them to acquire additional common shares. Based on the preliminary results, Mr. Friedland's ownership stake in Ivanhoe Mines now is 15.5%; Rio Tinto has maintained its current ownership at 40.3%.

Ivanhoe expects that the rights offering will close on February 2, 2011, to accommodate those who exercised rights using guaranteed delivery procedures. Ivanhoe intends to mail new common shares acquired through the rights offering to registered subscribers on or promptly after the scheduled closing of the offering.

The Board of Directors of Ivanhoe Mines extends its appreciation to all shareholders who participated in, and contributed to, the success of the rights offering.

Citi was the lead dealer manager for the rights offering. BMO Capital Markets and CIBC were co-dealer managers.

Link to press release



Japan steel eyes less reliance on Aussie coal

Japanese steel eyes Russia, Mongolia for coal supply-assoc

* JFE output not impacted by Aussie floods-JFE Steel head

* For now rely on Aussie coal due to quality, competitiveness (Updates with comments, details)

TOKYO, Jan 26 (Reuters) Japanese steelmakers aim to turn to countries such as Russia and Mongolia in the future to reduce their reliance on Australia for coal, the head of Japan's steel industry association said on Wednesday.

Flooding across Australia's eastern seabord over the past month has brought the country's coal mining inudstry to a virtual standstill, prompting Asian steel mills, which rely on the region for supplies, to seek alternative sources. [ID:nAUSSIE]

Eiji Hayashida, chairman of the Japan Iron and Steel Federation and president of fifth-largest steel firm JFE Steel Corp (5411.T), said the floods have triggered a rise in raw materials prices.

For now steel makers must continue to rely on Australia, but longer-term they will diversify procurement, Hayashida said.

"Japan's industry aims to diversify supply sources to such countries as Russia and Mongolia, but that will take more than two to three years. We need to rely on Australian coal for a while, given its cost competitiveness and quality," he told a regular news conference.

Hayashida said he did not see any impact on JFE's production through at least March, unless there was more flooding or damage to infrastructure.

"We are not worried about the volumes of raw materials," he said. "A big problem is a surge in the input costs in anticipation of shortages after this temporary phenomenon."

Link to article



China's coal imports up 31% in 2010 (Mongolia 4th largest coal exporter)

BEIJING, Jan. 27 (Xinhuanet) -- China imported 164.83 million tons of coal in 2010, up 30.99 percent on the previous year and coal exports declined 15.03 percent for the same period to 19.03 million tons, the Beijing News reported Thursday, citing data from the nation's top economic planner.

The National Development and Reform Commission said Indonesia was the largest coal exporter to China, followed by Australia, Vietnam, Mongolia and Russia. The five accounted for 84 percent of the nation's coal imports.

Last year's coal net imports stood at 145.8 million tons, up 42.37 million tons or 29 percent from the previous year, the report said.

Citibank issued a report earlier, predicting China's net coal imports will surge to 63 percent this year to over 200 million tons, due to the nation's strong demand and high dependence on coal as energy.

Coal industry insiders also believe China will see more coal imports this year, the report said.

Link to article



Mongolbank eyes single digit inflation

January 27 ( Central Bank of Mongolia “Mongolbank” announced to hold the inflation below 10 percent while the World Bank’s survey said inflation may reach 25% in 2011. Vice President of Mongolbank N.Zoljargal said that inflation would not be over 20%. However, he did not deny that the mass cash allocation in Mongolia and price rise in the world economy would influence inflation. Officials of the Central Bank hope that economic situation will positively change in Mongolia although the officials don’t have a clear prediction in 2010. 

They underlined that 2010 was a very good year when monetary supply rose by 62%, foreign currency reserve reached USD2 billion and the USD flow in the market exceeded MNT one billion. Mongolbank also aims to reduce loan interest but keep the monetary supply lower than 40%. Officials noted that Mongolbank will not promise to reduce interest to single digit. 

Link to article



Miners to exploit 30 million tons of coal

January 27 ( Representatives of Mongolian coal mining companies visited Nyanzan Mining Stock Exchange, Nyanzan Transportation Logistics Center and Dunzyan free trade zone in Tianjin port of China between January 19 and 21. They met officials of some organizations and companies operating there. The purpose of the tour is to sell Mongolia coal through Tianjin, which is a large port not only in Asia but also in the world. Furthermore, Mongolian companies are seeking to export coal to southern regions of China as well as other markets. 

Ulaanbaatar Representative Office in Tianjin, Mongolian Coal Association and Tianjin Coal Union organized a meeting which was attended by representatives of Ministry of Mineral Resources and Energy; Mineral Resources Authority, Energy Resources LLC, Tavantolgoi LC, Erdenes MGL LLC, MAK LLC, Shariin Gol LLC, Khunnu Resources LLC, Taliin Gal LLC, Ilchit metal LLC, Gan Ilch LLC and Sojitsu LLC from Mongolian side and representatives from Tianjin port, Nyanzan port’s Mining Stock Exchange, Nyanzan Transportation Logistics Center and some banks of China. 

Mongol Coal Association and Tianjin Coal Union have concluded a cooperation memorandum to enable Mongolian coal companies to sell coal to southern Chinese provinces. The memorandum reflects crucial issues to settle several major issues such as coal transportation and to process payment form of coal trade between Mongolia and China and to set up coal price by world standard. 

Mongolia exported 18 million tons of coal in 2010 which was higher than the income from copper concentrate. Thus, miners are aiming to export 30 million tons of coal in 2011. 

Link to article



Industrial Construction Corporation to be established

January 27 ( Industrial Construction Corporation is being established by one of the biggest companies of China that aims to invest in international mining and construction NFC, and Mongolia’s MIH Group. The official ceremony to establish ICC will be held on January 26th. 

NFC is interested in long term activity in Mongolia and successfully built Tumurtiin-Ovoo zinc factory in Sukhbaatar aimag. 

MIH Group is one of the best developing companies of Mongolia that operates in geology, construction, construction materials, and insurance and financing service sectors and so far built two construction material factories. Furthermore, the MIH Group’s sister company Bolo LLC is taking part in Oyutolgoi construction.

Link to article



Food sector to compete in the world

January 27 ( Ministry of Food, Agriculture and Light Industry has planned to continue Atar III projects in 2011 as national program Safety Food.

The Ministry is guiding tendency to supply domestic food demand and to develop export of ecological product in the world market along agriculture intensification by dissemination of progressive technology.

The Ministry will support food production in finance and favorable legislation. Besides, some projects to be implemented ensuring product quality and hygiene guarantee by contemporary technology and inner control structure in the field. 

Link to article



Mongolian farm with Aussie spin

January 27 (The Land) ON A farm 1000 kilometres east of Mongolia’s capital, Ulaanbaatar, an Australian and his Mongolian-born wife are breaking ground on wheat’s newest frontier.

Rather than buy a property in Australia, they’ve invested in a 9500-hectare cropping enterprise a stone’s throw from the Chinese border.

And they are finding its potential as a grain producer is only just being rediscovered.

Trading as Munkh Tal Company Ltd (Eternal Steppe), Chris Lightfoot and Uugana Erdene acquired their farm in 2006 when the Mongolian Government began to offer title over land which had belonged to the State under the previous socialist system.

It’s an opportunity that only comes once in most economies,” said Mr Lightfoot, a consultant economist based in Melbourne.

Their country was farmed for about 30 years under the socialist regime but had been out of production for 20 years.

“The no-till system really proved itself this year – not only did we get the highest yield, but we also achieved the best quality.”

A break like this was needed, because all the farm’s improvements had to come from cash flow.

This year the couple plans to sow 1500ha, and next year 2500ha, but Mr Lightfoot said they needed about $5 million to develop the full 9500ha, “so that’s what keeps you poor”.

Despite this, the capital return on investment has been about 25pc – and that had included “two complete wrecks”.

Link to article




Mongolia committed to football’s social role

January 26 (FIFA) The President of the Republic of Mongolia, Tsakhia Elbegdorj, made his first visit to FIFA headquarters on Wednesday, where he met with FIFA President Joseph S. Blatter to discuss football and the social contribution it has to make.

“Today the FIFA headquarters are the focal point of football,” said Blatter, “and it is not every day that we have the honour of welcoming a head of state.

"It is a great honour for me to be welcomed here today,” replied the Mongolian president with a smile. “We love football. In fact, I even get up in the middle of the night to watch matches on TV.”

Link to article




<Mogi & Friends Fund A/C>

Flat at 134%

Mogi & Friends Fund is a tiny fund of A$21.8K I created in late September with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.

All 3 stocks stayed flat today as trading resumes from Australia Day.




·         I personally and through my “Mogi & Friends Fund” hold 75,000 HAR shares in aggregate.

·         Jason Peterson, CPS Securities Director, holds shares (approx. 6,500,000) and options (1,000,000) in HAR.

·         CPS holds 500,000 options in HAR for corporate advice provided to HAR – Jason Peterson is a 33% shareholder in CPS.

·         CPS and CPSI directors and employees hold shares in HAR and may buy and sell these shares as and when they see fit.

·         Jason Peterson is a non-executive director of HAR but not involved in the day to day running of HAR.

·         CPS has received an IPO management fee of $250,000 and a 5% fee for any funds placed to its clients under the prospectus.

·         HAR has paid for Jason Peterson’s travel and accommodation expenses to and in Mongolia – this must be disclosed as a soft dollar commission.

·         Please refer to the prospectus for further disclosures.



"Mogi" Munkhdul Badral

Executive Director

CPS International LLC

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Mobile: +976-99996779



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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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