Tuesday, January 25, 2011

[cpsinewswire] [CPSI NewsWire, Tuesday, January 25, 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 25, 2010




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Hunnu Coal ups stake in Unst Khudag Coal Project in Mongolia to 80%

January 25 (Proactive Investors Australia) Hunnu Coal (ASX: HUN) has acquired a further 15% interest in the Unst Khudag Coal Mine and surrounding licenses including the new Har Toirom Coal Discovery.

Hunnu Coal now has an 80% interest in the Unst Khudag Coal Project which has an initial JORC Measured, Indicated and Inferred Resource of 324 million tonnes (Mt) to a depth of 140 metres. 

This Resource is based on less than 30% of the available data and an updated JORC Resource is currently being calculated.

Coal analysis reveals a high quality thermal coal with an average calorific value of 6,784 kcal/kg dry ash free (daf).

The Unst Khudag Coal Project is located in Dundgobi province, Mongolia, and is situated about 180km from the Mongolian railway grid.

The project consists of two exploration licenses and one mining license covering a massive 59,000 hectares of area.

The Unst Khudag Coal Mine aims to provide a high quality premium thermal coal product to service both hungry domestic and Chinese off-take customers and has an Exploration Target of 250Mt to 500Mt.

Link to article

Link HUN Announcement



Blina Diamonds To Acquire Mongolian Coal Mine

October 1, 2010 (Trader Dealer) Following the conduct of initial due diligence, the Directors of Blina Diamonds NL (ASX:BDI) are pleased to announce that the Company has entered into an Option Agreement to acquire 100% of BML LLC, a Mongolian entity (“BML”), enabling Blina to confidently pursue business activities in Mongolia with a specific focus on the exploration and development of coking and thermal coal for export.

BML is in discussions to acquire a number of exciting projects which are focussed on coking and thermal coal. Whilst negotiations are ongoing and discussions are commercial-in-confidence, the projects are well located in a coal basin with established infrastructure and in close proximity to high demand markets. The Directors intend to announce news regarding the acquisitions as soon as they are concluded, however at this time, the Directors are not able to offer certainty that these acquisitions will be completed.

Following an extensive study of the risk profile of Mongolia as an investment destination, the Directors have decided that Mongolia offers an opportunity that will enable Blina to build a mining company of scale within a short period of time.  The Principals of BML have well established track records within Mongolia covering project identification, acquisition and value added development across a number of sectors, including mining and mining services. Both Principals are residents of Mongolia.

Under the terms of the Option Agreement, Blina can acquire 100% of BML. The acquisition will be completed through the issue of shares to the Principals of BML, the majority of which will be performance based and their issue will be subject to the achievement of a number of milestones.  One of the Principals will enter into an executive role in Mongolia for Blina, and will work exclusively for Blina on prescribed areas of interest, which includes Mongolia as a region and prescribed commodity types. The initial focus of the Company will be coal. The Principals may also nominate one person to join the Board of Directors of Blina.

Link to article

Link to original announcement



Mongolia to Start Uranium Exploration by 2012

January 25 (UB Post) Mongolia plans to commence uranium exploration by the year of 2012, said Prime Minister Batbold Sukhbaatar on January 21.

He made a report on the implementation of nuclear energy law of Mongolia, at the parliament session.

Uranium will be the biggest ambitious mining project in Mongolia after Oyu-Tolgoi and Tavan Tolgoi projects” he emphasized. “Mongolia has nearly one million tons in reasonably assured reserve of uranium and we need to speed up the production” he added.

At present, reserves of Mardai deposit in eastern province of Dornod and Kharaat in central gobi province of Dundgobi have been established and the feasibility study for the two deposits are underway.

The exploration will start by 2012, which means Mongolia will begin selling uranium beginning from 2013 or 2014.” Batbold told. “With respect to nuclear energy production, we are taking step-by-step measures as there is a lot of to do in this direction” he said.

According to premier, a total of 107 prospecting licenses were issued to seventeen business entities, which are doing their respective prospecting works pursuant to the Nuclear Energy Law of Mongolia, under strict control of the Government.  

After the report by Prime Minister Batbold, some MPs expressed their opinions and positions regarding the report. For instance, they suggested about making the projected fifth power plant a nuclear power plant. They criticized the Government and related agencies for inactiveness and slowness.

The mining sector is Mongolia’s single largest industry, accounting for 55 percent of industrial output and more than 40 percent of export earnings.  Coal provides 80 percent of its electricity (3 billion kWh in 2009), from less than 1 GWe capacity, and 13 percent of electricity is imported from Russia.  Air pollution is a major problem in Ulaanbaatar City, from domestic combustion, cars, and power generation.

Mongolia has a long history of uranium exploration commencing with joint Russian and Mongolian endeavors from 1950s involving investment of some US$ 200 million.  Initial success was obtained in the Saddle Hills area of northeastern Mongolia (Dornod and Gurvanbulag regions) where uranium is present in volcanogenic sediments. 

The main uranium prospect is the Dornod open cut mine and underground ore body, with the surrounding area containing a number of deposits in the Dornod Province in the far northeast of the country.

ARMZ says that Russia spent the equivalent of US$600 million (in 2009 dollars) on uranium exploration and development in Mongolia to 1995.

In February 2009 the government set up MonAtom LLC to undertake uranium exploration and mining on behalf of the state, as well as pursuing nuclear energy proposals.  It will hold the state's equity in uranium and nuclear ventures and so comes under the Nuclear Energy Agency, a policy and regulatory body and government line agency and the State Property Committee

In July 2009, the Parliament passed a Nuclear Energy Law to regulate the exploration, development, and mining of uranium and give the state a greater degree of ownership and control of uranium resources.  It included transitional provisions dealing with existing mining and exploration licences. The new Law gives the government the right to take ownership without payment of not less than 51 percent of the shares of a project or joint venture if the uranium mineralization was discovered by state funded exploration, and not less than 34 percent if state funding was not used to find the mineralization. 

During the visit of the Mongolian Prime Minister to Russia in mid 2009, an agreement was signed between the Mongolian Nuclear Energy Agency and Russia's Rosatom corporation. This agreement envisaged creation of a joint venture company between MonAtom and ARMZ to develop two uranium projects in Mongolia. The final intergovernmental agreement to set up the Dornod Uranium LLC joint venture was signed on 25 August 2009 and ratified by the Russian Duma in 2010.

Meanwhile, Canada-based Khan Resources Inc. (TSX:KRI) had a 69 percent share in the Dornod project, mostly through a 58 percent subsidiary Central Asian Uranium Co. Ltd (CAUC), a Mongolian stock company set up by World Wide Minerals at the behest of the government in late 1990s. In February 2010 Khan recommended that its shareholders accept a full takeover by a Chinese government entity, Monatom and NEA proceeded to exclude Khan from any role with Dornod. This remains subject to legal appeals.

In January 2011 Khan announced it was suing the Mongolian government "for its expropriatory and unlawful treatment of Khan in relation to the Dornod uranium deposit" and sought over US$200 million in compensation for losses and damages. See also Appendix.

East Asia Minerals Corporation (TSX-V:EAS) holds a number of exploration licences in different parts of the country. 
In September 2009 India signed a uranium supply and nuclear cooperation agreement with Mongolia. Russia is examining the feasibility of building nuclear power plants in Mongolia.

The Nuclear Energy Agency has tentative plans for developing nuclear power, using either Korean Smart reactors or Toshiba 4S types, from 2021. Three sites under consideration are Ulaanbaatar, western Mongolia and Dornod province.

Mongolia joined the IAEA in 1993, though it has applied safeguards under the NPT since 1972. A law on nuclear weapons-free status was passed in 2000. The Additional Protocol to its safeguards agreement with IAEA has been in force since May 2003.

Link to article



Income from mining sector estimated MNT600 billion

January 21 ( General budget of Mongolia in 2011 has been accounted that mining sector will collect MNT600 billion for exporting mineral resources to world market. The specialists accounted gold price to be USD1250 per ounce, copper price at USD8425 and processed coal USD98.8 in the world market. 

The international organizations account a ton of copper price USD8425 in 2011, USD8810 in 2012 and USD9500 in 2013.

Link to article



Annual meeting of Asia-Pacific Parliamentary Forum opens in Ulan Bator

January 25 (Xinhua) The 19th Annual Meeting of the Asia-Pacific Parliamentary Forum opened on Monday in Ulan Bator, Mongolia's capital.

Mongolian Parliament Speaker Damdin Demberel and Prime Minister Batbold Sukhbaatar addressed the opening ceremony, and President Elbegdorj Tsakhia sent a congratulatory message to the forum.

Link to article



Now, coal-rich Mongolia on Indian steel majors’ radar

January 24 (Indian Express) Close on the heels of deciding to venture into Afghanistan for exploring the Hajigak iron ore mine, domestic steel giants have now set their sights on coal-rich Mongolia.

The International Coal Ventures Limited (ICVL), a special purpose vehicle (SPV) of mineral and metal PSUs, is all set to put forth a pre-qualification bid to develop the western block of Tovan Tolgoi coal deposits in Mongolia. At the behest of the steel ministry, the ICVL has nearly finalised the details for putting up the bid.

In course of a recent meeting, convened by the top brass of the mines ministry to ascertain the interests of domestic steel giants to invest in Mongolia, steel secretary P K Mishra asked ICVL chairman C S Verma to venture ahead and respond to Mongolia’s offer to Indian companies in putting up the bid. An estimated investment of Rs 10,000 crore would be required to operationalise the mine and expand the choked railway infrastructure there.

Link to article



Anod Bank Case Shifts to Prosecutor’s Office

January 25 (UB Post) National Investigation Bureau (NIB) has transferred 117-page file of so-called Anod Bank Case to the Prosecutor’s Office, for a bill of particulars. 

NIB’s Economic Crimes Department investigated the criminal case numbered 20847323, in which founders and top bankers are engaged. The criminal case was initiated in early December 2008 against Anod Bank’s CEO D.Enkhtur, Chairman of Governing Board E.Gur-Aranz, Governing Board member N.Davaa, Human Resource Manager L.Ulambayar and some officials of the Bank of Mongolia and the Financial Regulatory Office of Mongolia.

Link to article



Mongolia Marches Slowly Toward Modernity

(Time Magazine Photo Story) Once a nation of nomads, Mongolians are using resource wealth and technology to transform their country.

Link to album



<Mogi & Friends Fund A/C>


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.

Not a good day for Mogi & Friends. All 3 stocks dropped today, but sticking to my mid to long term strategy, I’m fully confident still.




·         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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Sukhbaatar District, Ulaanbaatar



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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