Thursday, February 17, 2011

[cpsinewswire] [CPSI NewsWire, Wednesday, February 16, 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.

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Close: Mongolia Related ASX Listed Companies, February 16, 2010




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Mongolia may pick banks for big coal IPO by next week: sources

February 16 (Reuters) - Mongolia is expected to appoint banks by next week to manage an IPO worth up to $5 billion for the world's largest untapped coking coal deposit, sources with knowledge of the matter told Reuters.

More than 150 bankers from a dozen Wall Street, European and Asia-Pacific investment banks made pitches to the Mongolian government over the past few days to win the coveted underwriting mandate for the Tavan Tolgoi coal mine.

"It was bloody cold," said one banker who attended, citing temperatures of minus 25 degrees Celsius. "Ten or 12 government officials were there. They listened and asked good questions, which isn't always what you get with a government pitch."

Investment bankers who took part in the pitching process said the size of the offering could range from $1.5 billion to $5 billion, depending on timing. They declined to be named because they were not authorized to talk to the media.

Bankers completed their pitches in the Mongolian capital Ulan Bator on Tuesday and while a decision is expected by next week, sources said the timing could change. Listings on both the London and Hong Kong stock exchanges were being discussed, they added.

Banks who flew representatives in included Morgan Stanley (MS.N), Macquarie Group Ltd (MQG.AX), Citigroup Inc (C.N), JP Morgan Chase & Co (JPM.N), Deutsche Bank AG (DBKGn.DE), Credit Suisse Group AG (CSGN.VX) and UBS AG (UBS.N), the sources said. The banks declined to comment.

The IPO coincides with a battle between resource-hungry Asian governments and global steelmakers to develop the mine, which has estimated reserves of 6.0-6.5 billion tonnes.


The Mongolian government plans to distribute shares in the company free to all citizens and another chunk to Mongolian corporations, according to officials, bankers and analysts working on the transaction.

"Ten percent of the shares will be given to every citizen of Mongolia," Algar Namgar, executive director of the Mongolian National Mining Association, told Reuters. "And 10 percent of the shares will be traded to every Mongolian enterprise."

About 30 percent of the asset is being sold to global investors through the IPO, sources say.

Mongolia plans to keep 51 percent of state-owned holding company Erdenes-Tavan Tolgoi, which controls the deposit, located in the South Gobi desert near China's northern border.


At up to $5 billion, the deal is not only fairly big in terms of fees, but also has a lot of prestige riding on it. It would be the largest such offering to come from a hot frontier market where similar deals are expected to follow.

Tavan Tolgoi is located 400 km (250 miles) from the nearest railway line and lacks infrastructure and power, which has held up development and allowed only very limited production.

The vast majority of imported coking coal in China, Japan and Korea comes by ship from Australia, but Mongolian imports will reduce freight costs.

Global coal prices have shot up in recent months due to disruptions in several coal-producing countries, including Australia, Indonesia, and South Africa, while demand in Asia, particularly China and India, continues to grow.

In recent months, prices have galloped as massive floods in Australia slashed supplies. The price of Australian thermal coal, a benchmark for Asia, has risen 34 percent from a year ago to around $127 a tonne while spot prices for coking coal used by steelmakers have shot up more than 50 percent from a year ago to hover around $370 a tonne.

Stories of bankers fighting in an Irish bar in Ulan Bator made the rounds in Hong Kong in the days prior to the formal pitching sessions.

Another hot topic amongst bankers involved concerned Morgan Stanley analyst Battushig Batbold, son of Mongolia's prime minister. Batbold is a metals and mining analyst for Morgan Stanley in London, according to his LinkedIn profile.

Rival bankers have said the analyst, believed to be in his 20s, is involved in the IPO pitch, although local media said Battushig was not attending. Morgan Stanley declined to comment.

Link to article





February 15 (M.A.D.) Board Member O.Ganzorig appointed as the Chairman of the sub-committee on Audit and O.Sainjargal and L.Bolormaa as member of committee. Dr. Stefan Hanzelmann appointed as the Chairman of the sub-committee on Governance and Promotion, and Board Members N.Tsogt and George Taylor as member of the committee.

Mr. CH.Chinzorig, official of the State Property Committee in charge of MSE, informed that the negotiation with LSE is still undergoing and expressed interest of appointing British citizen in the senior management of MSE. “After negotiation ends with LSE, appointment of Executive will be decided. We have interest of appointing Executive from LSE also” he added.

Link to article


SAIL to set up Rs 15,000 cr plant in Mongolia

February 16 (India Times) NEW DELHI: Aiming to spread its wings beyond the country's border, Steel Authority of India (SAIL) will set up a three mtpa plant in Mongolia with around Rs 15,000 crore investment, provided that Asian nation ensures linkages to raw materials to feed the proposed facility. 

"Talks are on in this regard. If the Mongolian government provides us raw material linkages and land, we will put up a three million tonnes per annum (mtpa) plant in that country to cater to the need of the land," SAIL Chairman C S Verma told PTI today. 

Verma said Mongolia, bordered by Russia in the north and China in the south, east and west, has enough coking coal and iron ore deposits to fuel the proposed steel plant for which around Rs 15,000 crore investment would be required. 

"Mongolia is a growing economy and its current steel need is around 3 mtpa. So, when the proposed plant comes up, it will help the country to meet its entire requirement from domestic sources," he said. 

The industry sector contributes more than one-fifth of the economy of Mongolia, the 19th largest country in the world. 

The mining sector of the country is witnessing high growth with already a number of Chinese, Russian and Canadian firms operating in that space. 

SAIL has already sent a delegation to Mongolia to assess the potential for the proposed plant and if everything falls in place, an agreement in this regard might be signed within the next six months. 

"It might take two and a half years for the plant to go on steam after the signing of the formal agreement," Verma said. 

Apart from Mongolia, SAIL is also in advanced stage of discussion with the Indonesian government to set up a similar facility. 

However, that will also depend upon the ensured raw material linkages by the government of Indonesia. 

The Maharatna company has already embarked a Rs 70,000 crore capacity expansion plan, including Rs 10,000 crore for mine development, to enhance capacity to 23.46 mtpa from 14.35 mtpa domestically now. 

SAIL has plans to increase its steel making capacity further to 60 mtpa by 2020.

Link to article


GTSO Rare Earth JV Hires Mongolian Reconnaissance Survey Geological Team

SAN JOSE, Calif.--(BUSINESS WIRE)--Green Technology Solutions, Inc. (OTCBB: GTSO) announced today that the joint venture between the GTSO and Rare Earth Exporters of Mongolia have engaged the Mongolian Reconnaissance Survey LLC (MRS). MRS is officially registered by the Mongolian Registration Office and was founded by Mongolian citizens who are experienced and qualified in the fields of geology, exploration and mining operations. The company specializes in geological exploration and mapping.

GTSO and Rare Earth Exporters of Mongolia announced earlier this month that the companies formed a joint venture to procure rare earth mining claims and operations in the nation of Mongolia. The engagement of MRS is expected to greatly assist in achieving the priorities of the joint venture.

The Mongolian Reconnaissance Survey LLC can be seen at:

The added expertise of the Mongolian Reconnaissance Survey team should give our joint venture a leg up on achieving our rare earth export mission,” said GTSO President and CEO John Shearer. “Using a local firm that is more acquainted with the geology and has more experience with the regulations in Mongolia is an important step in the procedure.”

Link to article


Origo completes placing of Convertible Preference Shares

February 16 (Origo) Further to the Company's announcement of 28 January 2011, the Company announces that it has conditionally raised $60 million, before commissions and expenses, by way of the placing (the "Placing") of 60 million new redeemable, convertible, zero-dividend preference shares (the "Convertible Preference Shares").  The Convertible Preference Shares were placed with investors at a price of $1.00 each.

The net proceeds of the Placing are intended to be used, in conjunction with the Company's existing cash resources, to fund new identified value enhancing investment opportunities. The Placing is conditional, inter alia, upon the approval of Shareholders at a General Meeting to grant the Directors authority to issue the Convertible Preference Shares on a non-pre-emptive basis, and which is expected to be held at the registered office of the Company at 4th Floor, One Circular Road, Douglas, Isle of Man IM99 3NZ at 10.00 a.m. on 7 March 2011.

Link to release


Mongolia hopes to launch satellite by 2015 with Japan's help

ULAN BATOR, Feb. 16 (Xinhua) -- Mongolia hopes to launch a space satellite by 2015 with help from Japan, local media reported Wednesday.

A Japanese space exploration team visited Mongolia and organized a two-day workshop at the Ministry of Foreign Affairs and Trade.

The workshop was attended by representatives of both countries' governments and a number of Japanese companies, including Mitsubishi, Toshiba, Hitachi and Sumitomi.

Mongolia now uses the "Ipstar-5" broadband satellite for the delivery of TV and radio programs in rural areas. It uses the "Intelsat" satellite for telecommunications and mobile phone services, and receives digital data on weather and natural disasters from low-earth orbit satellites.

"The Mongolian government considers launching Mongolian satellites into space as an important project that can contribute significantly to the country's economic development," said Amgalanbat, an official from Mongolia's Information, Communication Technology and Post Authority.

Link to article


Mongolian PM to visit S'pore

February 16 (Channel News Asia) SINGAPORE: The Prime Minister of Mongolia Sukhbaatar Batbold will make an official two-day visit to Singapore from Thursday, at the invitation of Prime Minister Lee Hsien Loong.

The Ministry of Foreign Affairs said this is Mr Batbold's first visit to Singapore in his current capacity.

Besides bilateral meetings, Prime Minister Batbold will visit the Housing Development Board and the Singapore Exchange.

He will also officiate the opening ceremony of "Genghis Khan: The Exhibition" at the Marina Bay Sands ArtScience Museum as well as deliver a public lecture on Mongolia's economic outlook and the national development strategy at the Lee Kuan Yew School of Public Policy.

Link to article


Uranium Chronicles of Mongolia

February 15 (Uranium Investing News) Khan Resources Inc. (TSE:KRI) continues to create headlines in a saga of operational impediments which investors and observers have followed as they have been developing and escalating for more than a year.

Previous litigious filings by Khan have sought damages from Atomredmetzoloto JSC (ARMZ) and its affiliate JSC Priargunsky Industry Mining and Chemical Union (JSC PIMCU) for breach of fiduciary duties as one of the company’s joint venture partners and a shareholder of Central Asian Uranium Company, LLC (CAUC) and general damages resulting from their unlawful interference with the plaintiffs’ economic relations and business interests.

Earlier in February the Russian Ministry of Justice notified Khan that it refuses to effect service on ARMZ, citing Article 13 of the Hague Convention. Article 13 provides that “the State addressed may refuse to comply therewith only if it deems that compliance would infringe its sovereignty or security.”

Mining license

In January, Khan announced that it has formally commenced an international arbitration action against the Government of Mongolia for, “its expropriatory and unlawful treatment of Khan in relation to the Dornod uranium deposit located in northeastern Mongolia.”   An arbitration Tribunal of three will be appointed in the near future with each side appointing an arbitrator followed by the selection of president of the Tribunal by the two appointed arbitrators.  The claim seeks over US$200 million in compensation for losses and damages.

The arbitration, which is brought by Khan and several of its subsidiaries, will take place under the Arbitration Rules of the United Nations Commission on International Trade Law, and asserts claims under the Energy Charter Treaty, the Foreign Investment Law of Mongolia, and the Founding Agreement between Khan and the Mongolian Government.

These developments follow an announcement last November from the Nuclear Energy Agency of Mongolia that it would not reinstate the licenses that Khan holds on the Dornod uranium property, but which the government cancelled in order to pursue the project without the company.

Still profitable

Yesterday Khan posted a net income of $34,000, or break even on a per share basis, compared with a loss of $826,000, or 2 cents per share from last year’s results.  The company recovered $522,000 in income tax during the quarter. The share price has climbed almost 19 percent from the beginning of the year to trade within its current range of 57 cents.

On Friday Cameco (TSE:CCO) (NYSE:CCJ), reported adjusted earnings per share in the fourth quarter of 48 cents, posting a very strong result with the consensus view targeting 27 cents. Earlier last month the company had experienced some operational challenges. Strong outperformance was attributed primarily to a higher realized uranium price of $48.50 per pound and lower than expected operating costs. The current share price in the range of $43.30 has appreciated 15 percent since achieving a year to date low on January 21 of $37.78. TD Newcrest analyst Greg Barnes raised his price target by $6 to $51 per share and maintained a “buy” recommendation, reflecting his more bullish view on the uranium market. UBS analyst Brian MacArthur also hiked his price target but was somewhat more cautious with a 12-month target revised to $47 from $44.

Spot market price outlook

This week, the spot uranium price continued to maintain its position in the $73.00 per pound range as reported by both TradeTech and Ux Consulating. Yesterday, Mr. Barnes raised his uranium price forecasts for 2011 through 2014, as well as in the longer term. He now anticipates the spot market uranium price to average $75 per pound in 2011, a 20 percent increases from his previous forecast. His longer term price, which starts in 2016, was also raised to $70 a pound.

Link to article


Khan December 2010 Quarter Financials

February 14 (TSE:KRI) --

Link to financials

Link to Management’s Discussion and Analysis for December 2010 Quarter


NEA to probe charges of Chinese citizens illegally exploiting uranium

February 15 ( The newspaper Uls Turiin Toim reports that citizens in Erdene soum of Tuv aimag have told authorities that Chinese citizens regularly transport uranium at night from a mountain there. The Chief of the Nuclear Material Department in the Nuclear Energy Authority, T.Bayasgalan, has confirmed that this was illegal activity as only license holders can exploit uranium.   

He answered more questions.

Does any company hold a license in the area where Chinese citizens are said to be secretly transporting uranium?

The Chinese company, Tooroi Bandi LLC, applied for a license in October 2009, but the NEA denied it permission following reports and recommendations from the State General Inspecting Authority, the Central Intelligence Agency, and the Nuclear Monitoring Board. The Water Board also asked Tooroi Bandi to stop its work as the area was part of a watershed and fell in Janchivlan resort zone. Thus, any present activity by the company violates the law.

Why does the company continue to explore in the area?

Tooroi Bandi stopped its work in September 2009 but it may be that they transferred their licenses to economic entities from Hong Kong which look for uranium in a more scientific way.

Can a canceled license in a watershed be transferred? And why this secret activity at night?   

Some exploration is done in nearby areas under license from the Mineral Resources Authority. But uranium exploration is banned and the NEA will certainly take action if anything illegal was allowed to be done.

Link to article


Mongolia's ninja miners cash in on resources

ZAAMAR, Tuesday 15 February 2011 (AFP) - In the dead of winter, Chuluuntsetseg sits by the banks of the Tuul river west of the Mongolian capital Ulan Bator, pouring boiling water over rock sediment in a green plastic tub.

As her colleagues watch, she excitedly pulls a shiny speck from the water. After an hour of hauling buckets of earth from man-made pits and painstakingly sifting their contents, the 49-year-old woman has literally struck gold.

"It's worth about 8,000 tugrik," or just $6.40, she says, as she flicks her find into a small pill container.

On average Chuluuntsetseg, who like many Mongolians uses only one name, and her friends find about $60 worth of gold a day -- not a bad take in one of Asia's poorest countries.

Reports have put the total number of illegal miners at 100,000, but Patience Singo, a technical expert for a sustainable artisanal mining project funded by the Swiss Agency for Development and Cooperation, says that figure is likely a conservative one.

"People are hungry, people need food. If there is not another option, they are going to get into artisanal mining," Singo told AFP. "This work supports about 300,000 people."

Link to article


<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.




·         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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Telephone/Fax: +976-11-321326

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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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