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Close: Mongolia Related ASX Listed Companies, March 9, 2010
Mogi: HUN up more than 10% today on the news.
Hunnu Coal enters partnership with Banpu
March 9 (WA Business News) Perth-based Hunnu Coal (ASX:HUN) has continued its stunning run since listing in February last year, after it announced it had entered a strategic partnership with Singapore-based Banpu Minerals to develop its Mongolian coal tenements.
Under terms of the partnership, Hunnu will issue Thai-listed Banpu 30 million shares at $1.50 per share to raise $45 million.
Hunnu listed at $0.20 in February 2010.
At 11:00AM (WST) today, Hunnu shares had gained 9.2 per cent to trade at $1.35.
Banpu will become Hunnu's largest shareholder, with a 12.4 per cent stake, and will nominate a representative to Hunnu's board.
Banpu chief executive Chanin Vongkusolkit said the company was looking to be a long-term player in the growth and development of Hunnu, and the Mongolian coal sector.
"A strategic partnership with Hunnu is a lower-risk way for Banpu to familiarise itself with the Mongolian coal industry," Mr Vongkusolkit said.
"Establishing a strategic alliance in Mongolia is part of Banpu's strategy to expand its position in key Asia Pacific markets.
"We are strongly supportive of the Hunnu's management team and its current strategy.
"The alliance will allow Banpu and Hunnu to share operational expertise, with Banpu representation on the Board allowing Banpu's expertise to benefit Hunnu at the highest level."
Thai firm buys stake in coal company – AAP, March 9
Banpu to see limited gains from Mongolian expansion – The Nation, March 9
BANPU EXPANDS WITH ASX LISTED HUNNU – Live Trading News, March 9
Banpu invests A$45m in ‘strategic partner’ Hunnu – MiningWeekly.com, March 9
INTERVIEW-LSE sees (Mongolian) companies queueing to list in London
* Large number of Russian, Indian firms planning London IPOs
* LSE looking to ease dual listing process with Toronto
* London looking to attract Mongolian firms to float
LONDON, March 7 (Reuters) - The London Stock Exchange (LSE.L) is seeing companies queueing up to float and is looking at ways to widen the investor base open to them if it succeeds in its takeover of Toronto exchange owner TMX Group (X.TO).
"Our pipeline is extremely strong," Tracey Pierce, director of equity primary markets at the London Stock Exchange Group told Reuters on Monday.
The LSE is also looking to attract more Mongolian companies to list in London, through an agreement signed with the Mongolian stock exchange last month. [ID:nL3E7DI0YS]
"We will be supporting their management team, we will be providing their technology for trading, market surveillance, post trade," said Pierce. "We will be introducing them to the London advisory and investment community and clearly we would like to facilitate dual listings, Mongolia and London."
The Mongolian government's up to $5 billion IPO of the Tavan Tolgoi coal field, the world's largest untapped coking coal deposit, is one of those London is looking to attract. [ID:nL3E7DO0W6]
"Mongolia is extremely rich in natural resources and minerals and that is one of London's great strengths, expertise in the energy sector," Pierce said.
Mogi: EAS up more than 15% on the day.
East Asia Minerals Announces Intention to Spin Out Assets to Shareholders (including one for Mongolian assets)
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2011) - East Asia Minerals Corporation (TSX VENTURE:EAS) is pleased to announce that its Board of Directors has today approved the implementation of a series of value enhancing transactions that, subject to applicable regulatory and other approvals, will result in eligible East Asia shareholders owning shares in four (4) separate companies.
East Asia Minerals has recently set up three new wholly owned subsidiaries to which it will transfer most of its non-Miwah assets. The Company expects to undertake an internal reorganization and work with the appropriate authorities and its joint venture partners to transfer the non-Miwah assets from East Asia Minerals to these new wholly owned subsidiaries:
· Sangihe Gold Corporation is to become a precious metals exploration company focused on Eastern Indonesia. It will initially hold East Asia Minerals' 70% equity interest in the Sangihe gold project in North Sulawesi, Indonesia. The Sangihe project has an NI 43-101 compliant inferred resource of 1,075,263 ounces of gold equivalent (news release September 22, 2010).
· Barisan Gold Corporation is to become a gold-copper porphyry exploration company focused on Indonesia. It will initially hold East Asia Minerals' 80% equity interest in the Barisan gold-copper porphyries (including the Abong epithermal gold deposit) and East Asia Minerals' 75% equity interest in the Takengon gold-copper project, all located in Aceh Province, Indonesia. The Upper Tengkereng prospect at Barisan returned an interval of 40 metres at 1.46g/t gold and 0.48% copper within a 691-metre fully mineralized hole with 0.39g/t gold and 0.30% copper in UTD002 (news release January 17, 2011).
· East Asia Energy Corporation is to become a Mongolian mining and energy company. It will initially hold all of East Asia Minerals' Mongolian assets, which consist of early stage uranium and phosphate projects.
Mongolia Says Shifting Focus to Balanced Growth From Mining
March 8 (Bloomberg) -- Mongolia needs to look beyond the coal and copper mines that are driving its economic boom to find a more balanced model of growth, Prime Minister Sukhbaatar Batbold said.
Investment in mining projects and speculation on the wealth they will create in the world’s most sparsely populated nation have made Mongolia’s tugrik the best-performing currency since the beginning of last year. That’s putting exports such as cashmere at a disadvantage, and adding costs to emerging industries such as tourism, food production and metal processing.
“It is important to have a good mining industry,” Batbold said in an interview at a forum in Mongolia’s capital Ulan Bator. “But it is a tool of moving many other things forward. What we want to focus on is creating jobs in many other industries.”
Mongolia needs to avoid developing “Dutch disease,” where the financial benefits of a resource boom lead to a hollowing out of other sectors, according to the World Bank. Sandwiched by Russia’s far east to the north and 1.3 billion-strong, resource- hungry China to the south, the government is looking for ways to lessen its vulnerability to competition from its giant neighbor and reduce its reliance as a customer.
“Mongolia can’t compete with China on wages, but it can certainly find areas in the Chinese economy where it could have an edge,” such as in cashmere, meat, and services, said Rogier van den Brink, lead economist for Mongolia at the World Bank. “Diversifying from resources would be a solution similar to what the Dutch found to combat the resource disease.”
The discovery of gas in the Netherlands drove up inflation and damaged manufacturing. In Mongolia, Vale SA, the world’s largest iron ore supplier, and Xstrata Plc, the No. 1 thermal coal exporter, are leading six groups bidding for a 1 billion metric ton concession at the Tavan Tolgoi coal project.
Rio Tinto, the world’s No. 2 mining company, is developing the Oyu Tolgoi copper and gold deposit, which it expects will account for 30 percent of Mongolia’s gross domestic product when completed.
The country also holds oil, potash, iron ore, uranium and the rare earth minerals used in Toyota Motor Corp. hybrid cars and Raytheon Co.’s Tomahawk cruise missiles.
Plans this year to begin mining part of Tavan Tolgoi and preparatory work for the 2012 start-up of Oyu Tolgoi may cause the economy to expand 33 percent in dollar terms, according to Eurasia Capital, an Ulan Bator-based bank. That compares with a 10 percent growth in local currency terms, Eurasia said in a Jan. 11 report.
The tugrik gained 16 percent against the U.S. dollar since Jan. 1, 2010, beating 172 other currencies tracked by Bloomberg. China’s yuan advanced 4.1 percent over the same period.
China, Mongolia’s biggest rival in cashmere and top trading partner, is “stealing jobs” with a more stringent currency policy, Naidansuren Zoljargal, a deputy governor at the nation’s central bank, told the forum.
While the dollar value of greasy cashmere exports rose to about $105 million from $92 million in the first 11 months of 2011, it dropped to 3.6 percent of all exported goods in December in dollar terms, from 4.8 percent a year earlier, according to the World Bank.
Last year’s colder-than-average winter also continues to concern herders, who chose to slaughter more animals for meat this year, Munkhnasan Narmandakh, an Ulan Bator-based economist with the World Bank, said in an e-mail. “Stocks of cashmere in Ulan Bator are practically down to zero,” with no exports of the material recorded in January, she said.
Mongolia, which the government estimates has the capacity to produce 30 percent of the world’s cashmere, this year set up a marketing agency to help farmers and herders market their products abroad. This should help producers compete on quality and brand, not price, agency chief Stephen Kreppel told the forum on March 4.
Thirty-four percent of Mongolia’s 1.1 million labor force work in agriculture, primarily tending livestock that includes the goats that yield cashmere fibers. Services employ 61 percent, with industry accounting for 5 percent, according to the CIA World Handbook.
In contrast, industry provides 30 percent of gross domestic product and agriculture 21 percent. As well as raw materials and unprocessed animal products, Mongolia also sells apparel and leather goods and the government aims to support to textiles, infrastructure, tourism and food production, Batbold said.
“We’d like to focus now on value-added products,” he said. Tackling poverty is one reason development in Mongolia has become more urgent, with the mining industry a way to “give better impetus to the economy,” Batbold said.
Kobe Steel Ltd., Japan’s No. 4 maker of the alloy, signed an accord with Mongolia last week to study the construction of a factory to produce iron nuggets from low-grade ore, company spokesman Gary Tsuchida said today. The plant would use Kobe’s proprietary technology, making material used in electric-arc steel furnaces, he said by phone in Tokyo.
Steel Authority of India Ltd., the nation’s second-largest producer, may build a 150 billion rupee ($3.3 billion) plant in Mongolia, Press Trust of India said last month, citing Chairman C.S. Verma.
More than a third of Mongolians live below the poverty line, and per head income in the nation of 2.7 million is $2,111, the International Monetary Fund said in 2010. In December, Russia wrote off about 98 percent of Mongolia’s $172 million debt.
China accounts for 80 percent of Mongolia’s imports and buys about 85 percent of its exports, according to Mongolia’s central bank data. While Mongolian trade turnover surged 54 percent to $6.2 billion last year, imports exceeded exports by $379 million, Eurasia Capital said, citing official data.
To help mitigate the effects of the rising tugrik, Mongolia’s central bank is in talks with China on a currency swap that would amount to “a few billion” yuan, Zoljargal said in a March 4 interview. The accord allowing trade to bypass the dollar should be ready before July, and a similar deal with Russia is likely to follow, he said.
“This will help us to smooth all those pressures to the local economy,” Zoljargal said.
The Bank of Mongolia last year introduced dollar-tugrik forward contracts to help hedge against jumps in the exchange rate and is supporting plans to set up a market for tugrik- denominated government bonds as soon as this year, Zoljargal said.
The measures will help make any appreciation in the tugrik “smooth” and predictable, Zoljargal said. “We don’t want to fight the trend,” he said. “Our target is more on the inflation, which we’re trying to keep at single digit.”
The IMF in a Feb. 17 report forecast the figure to reach 20 percent by the year’s end due to increased state spending.
JP Morgan: Mongolia (B1/BB-/B+): a frontier market primer
Economic and sovereign outlook
March 7 (J.P. Morgan) --
The Fraser Institute: Survey Shows Global Mining Industry Optimistic Towards New Investment While Australia Recovers in Global Rankings
Mongolia … which were among the worst-ranked jurisdictions in the 2009/2010 survey, managed to climb out of the bottom 10 this year.
TORONTO, ONTARIO--(Marketwire - March 3, 2011) - The worldwide economic turnaround has created optimism in the mining sector, with the global mining industry primed for new exploration and investment in 2011, according to the , released today by the Fraser Institute, Canada's leading public policy think-tank.
More than three quarters of survey respondents said they expected to increase their exploration budgets in 2011, as detailed in the annual global survey of the world's best places for mineral exploration and development.
The survey also shows that Australia has regained the confidence of the mining industry after taking a hard hit in the special Survey of Mining Companies: 2010 Mid-Year Update, following the Australian government's plan to impose a heavy Resources Super Profits Tax (RSPT) on the mining industry.
"The Australian government has since announced it would back away from the proposed tax, earning a positive reaction and improved rankings from the global mining industry," said Fred McMahon, coordinator of the survey and the Institute's vice-president of international policy research.
The Fraser Institute's Survey of Mining Companies: 2010/2011 is based on the opinions of mining executives representing 494 mineral exploration and development companies on the investment climate of 79 jurisdictions around the world. The companies participating in the survey reported exploration spending of US$2.43 billion in 2010 and US$1.86 billion in 2009. The complete survey is available as a free PDF download at .
Canadian provinces occupied three of the top four rankings, with Alberta in first place, Nevada in second, Saskatchewan in third, and Quebec, which had been ranked number one for three consecutive years, falling to fourth.
Rounding out the remainder of the top 10 jurisdictions are: Finland, Utah, Sweden, Chile, Manitoba, and Wyoming. Seven of the same jurisdictions ranked among the top 10 last year; the three exceptions are Utah, which rose to sixth place from 15th; Sweden, which climbed to seventh from 12th; and Wyoming, which jumped to 10th from 13th. Chile is the only jurisdiction outside of North America that consistently ranks among the top 10.
Australian jurisdictions showed marked improvement in this year's survey following a dismal performance in the Survey of Mining Companies: 2010 Mid-Year Update. South Australia rose to 11th place from 15th, Western Australia climbed to 17th from 28th, New South Wales jumped to 20th from 38th, the Northern Territory rose to 27th from 30th, and Queensland fell to 38th from 33rd.
The bottom 10 scores went to Indonesia, Zimbabwe, Wisconsin, Madagascar, India, Guatemala, Bolivia, Democratic Republic of Congo, Venezuela, and Honduras.
Ecuador, the Philippines, Mongolia, and California, which were among the worst-ranked jurisdictions in the 2009/2010 survey, managed to climb out of the bottom 10 this year.
Quam Welcomes Eurasia Capital to GAP; Launches Mongolia Fund
Hong Kong, Mar 8, 2011 - (ACN Newswire) - Quam Financial Services Group, whose holding company Quam Limited ("Quam", Stock Code: 00952.hk) was listed on The Stock Exchange of Hong Kong, takes the lead in welcoming Eurasia Capital, which it has recruited as member of Global Alliance Partners (GAP).
Eurasia Capital, headquartered in Ulaanbaatar, is a pan-regional investment bank with focus on Mongolia and Central Asia. Eurasia Capital's chairman, Mr. Alisher Ali is enthusiastic for his company to usher investors into the world's largest untapped mining province.
"Developing its massive resources will allow Mongolia to become the world's fastest growing economy throughout the next decade," Mr. Ali said.
Meanwhile, Quam Chairman, Mr. Bernard Pouliot announced that Quam, through its asset management subsidiary, will launch this month a new fund investing in the Mongolia market.
According to Mr. Pouliot, "We seek to invest in a diversified portfolio of stocks exposed to almost entirely to Mongolia to provide investors with what we believe, is the first liquid Mongolian Fund."
There are about US$2 billion worth of stocks listed on the Mongolia stock market and about US$28 billion listed on foreign stock markets such as Australia, Hong Kong, London, and Toronto.
Eurasia Capital, which is well-known for its dedicated Mongolian financial market expertise, and Quam, which has extensive access to the Chinese market, have both geared themselves for heightened crossborder investment deals through Global Alliance Partners, an international network of financial services firms in the-capital market.
Global Alliance Partners includes partners whose local expertise spans strategic markets in Africa, Asia, Europe, the Middle East, and North America.
GTSO Hires Experienced Mongolian Mining Attorney
SAN JOSE, Calif.--(BUSINESS WIRE)--Green Technology Solutions, Inc. (OTCBB:GTSO) announced today that it has engaged Mongolian attorney H. Orennxapran to assist in the company’s ongoing efforts to expand rare earth production and exports from the Asian nation.
Orennxapran is a native Mongolian with many years of legal experience. An expert in Mongolian mining laws, Orennxapran will assist the joint venture formed last month by GTSO and Rare Earth Exporters of Mongolia (REE) to pursue rare earth mining claims and operations in the former Soviet state. He offices in the capital city of Ulan Bator, Mongolia’s transportation hub and home to GTSO’s rare earth transport office.
The acquisition of Mongolian mining claims and operations is key to the joint venture’s plans to develop stable sources of rare earths outside of China, and the JV plans to strictly adhere to Mongolian law in its development efforts. On Monday, GTSO announced that the JV’s Mongolian agent company executed a new land lease agreement in the mineral-rich province of Tuv. GTSO management expects the new property to be especially rich in yttrium, tantalum, niobium, thorium and zirconium. Rare earths such as these are vital to worldwide manufacturing of products from advanced weapons to iPads.
Mongolia tasks diplomats with collecting foreign development experiences
March 8 (Xinhua) Mongolian Prime Minister Batbold Sukhbaatar on Monday asked his country's overseas diplomats to study foreign experiences on national development and bring them back home.
In a meeting with Mongolian diplomatic representatives, Batbold said that diplomats should play a role in the country's development by writing down what can be learned from the development practices of the countries in which they were respectively stationed.
The diplomatic corps should also help attract foreign investment, he added.
"The Mongolian government is pursuing a policy to accelerate economic development. You, Mongolian ambassadors and consuls representing Mongolia abroad, should contribute to accelerating the economic development of our country," he said.
The prime minister set an April 15 deadline for the diplomats to collect information on their host countries' history and development practices. Foreign Minister Gombojav Zandanshatar will then study the proposals.
U.S. Envoy to Visit Japan, Mongolia and South Korea
March 6 (Xinhua) U.S. Assistant Secretary of State for East Asian and Pacific Affairs Kurt Campbell is leaving for Japan, Mongolia and South Korea on Tuesday for six-day visits, the State Department said on Monday.
In Tokyo, Campbell and Assistant Secretary of Defense for Asian and Pacific Security Affairs Chip Gregson will meet with senior Japanese officials to discuss "a full range of issues related to the U.S.-Japan alliance," the department said in a statement.
On Thursday, Campbell and Gregson will arrive in Ulan Bator, Mongolia's capital, to lead the U.S. delegation for the annual bilateral consultations with the Asian country. "This is an important opportunity to exchange views with Mongolian government officials on topics, including peacekeeping efforts, regional security and the commercial environment," the statement said.
Campbell arrives in Seoul on Saturday and will meet with senior officials as part of ongoing consultations with South Korea, the statement said.
Mongolia Watch: A Nation of Millionaires Emerges
Mar. 8 (China Briefing) – This week China Briefing offers a special feature on the development of Mongolia – a nation the size of Western Europe with some of the world’s largest mineral deposits located just 90 minutes north of Beijing by plane.
Mongolia is about to become as wealthy as South Africa, Qatar, Norway or the UAE. What opportunities exist for foreign investors?
A look at the country’s upcoming financial and regulatory reforms and the implications for Mongolians and foreign investors.
Extracting Mongolia’s assets requires massive government reform if the country is not to become another Nigeria. What needs to be done and how is this being implemented?
A look at the issues facing the country as it strives to cope with its new-found wealth.
China has agreed to provide a soft loan of US$300 million to Mongolia to develop a border free trade zone, along with other major trade and investment projects.
Mongolia is a democracy sandwiched between China and Russia. How does this impact on the country’s quality of life and social systems?
Sumitomo Corp helps people communicate in Mongolia
March 8 (SteelGuru) Sumitomo Corporation has announced that "Our wish to contribute to Mongolia's determination to develop resulted in a communication network covering the entire country.”
Mongolia is located in Northeast Asia and is home to 2.76 million people. Mobicom, which was first founded in 1995, was the country’s first wireless carrier, and now provides mobile phone services to around half the population."
By steadily expanding into different sectors of the telecommunications field, Modicum has grown to become one of Mongolia’s leading privately held corporations. Sumitomo Corporation has been the company's shareholder and partner throughout the entire process of this expansion.
Sumitomo Corporation has deepened its ties with Mongolia since the early 1990s, a time when the rest of the world paid little attention to the country. Over the nearly 20 years of partnership, Sumitomo Corporation has strengthened its determination to make a meaningful contribution to Mongolia.
Sumitomo's participation has resulted in the construction of infrastructure that spans the country. This same infrastructure now underpins Mongolia’s current appeal to global investors interested in the nation’s rich natural resources.
2011 CBI Spring Coal Trade Fair Is Coming Soon (with support of MNMA)
March 8, SHANGHAI--(BUSINESS WIRE)--As spring nears and the temperature goes up, a shrink in the need of thermal coal has been obviously found as the consumption enters a low season. Interestingly, in contrast to the thermal coal market, coking coal maintained a rebound recently.
Thus, 2011 CBI Spring Coal Trade Fair organized by CBI China will kick off on Mar. 23-24 at Wyndham Xiamen China, with the official support of Indonesian Coal Mining Association and Mongolian National Mining Association (MNMA), will bring you the latest news and in-depth analysis on coking coal and thermal coal supplies in Mongolia and Indonesia.
Mongolia's Univision expands IPTV channel lineup
Mongolian operator Univision has signed a multi-year agreement with Turner Broadcasting System Asia Pacific under which some of the latter's premium channels will be added to its IPTV service, the country's first.
The channels being added are CNN International, Cartoon Network, Boomerang and truTV. Naranbat N., CEO of Univision, commented: “It is a significant milestone for our subscribers to have access to Turner’s top channels through Mongolia’s first IPTV service."
Univision's IPTV service offers a core package of 70 linear channels for USD 9 per month, as well as value-added services such as video-on-demand, music-on-demand, Catch Up TV and timeshifting. The service is available in the Mongolian capital of Ulaanbaatar and other major cities, and is delivered over the operator's fibre-based network.
<Mogi & Friends Fund A/C>
Mogi & Friends Fund is a tiny fund of A$20.8K 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.
· 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.
"Mogi" Munkhdul Badral
CPS International LLC
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CPS Securities, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions mentioned in correspondence from CPS International.
CPS International advise this email contains general information only and does not include advice. In preparing this communication, CPS International did not take into account the investment objectives, financial situation and particular needs of any person. As with any speculative mining company there are significant risks.