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 mogi@cpsinternational.mn or +976-99996779.
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Close: Mongolia Related ASX Listed Companies, March 7, 2010 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.086 | 0.000 | 0.085 | 0.086 | 0.087 | 0.087 | 0.085 | 10,548,375 | |
1.240 | 0.000 | 1.270 | 1.240 | 0.000 | 0.000 | 0.000 | 0 | |
0.500 | -0.035 | 0.500 | 0.530 | 0.510 | 0.510 | 0.490 | 238,428 | |
0.705 | -0.020 | 0.700 | 0.705 | 0.740 | 0.750 | 0.680 | 1,361,427 | |
0.420 | 0.000 | 0.400 | 0.420 | 0.000 | 0.000 | 0.000 | 0 | |
0.027 | 0.002 | 0.026 | 0.028 | 0.025 | 0.027 | 0.025 | 5,197,673 | |
0.008 | 0.000 | 0.008 | 0.009 | 0.000 | 0.000 | 0.000 | 0 | |
0.210 | -0.045 | 0.210 | 0.215 | 0.265 | 0.270 | 0.210 | 6,987,142 | |
0.305 | 0.005 | 0.300 | 0.305 | 0.290 | 0.315 | 0.290 | 451,916 | |
0.590 | 0.000 | 0.580 | 0.590 | 0.590 | 0.590 | 0.580 | 161,829 | |
31.140 | -0.280 | 31.130 | 31.140 | 31.400 | 31.590 | 31.050 | 327,075 | |
84.160 | -1.360 | 84.150 | 84.160 | 85.050 | 85.100 | 83.900 | 1,331,608 | |
46.340 | -0.910 | 46.340 | 46.350 | 46.710 | 46.850 | 46.240 | 15,983,905 | |
Source: asx.com.au
Hunnu Coal in Trading Halt, Pending an Announcement Regarding a Corporate Transaction
March 7 – Hunnu Coal Ltd (ASX:HUN) ==
GTSO JV Secures New Rare Earth Mining Lease in Mongolia
SAN JOSE, Calif.--(BUSINESS WIRE)--Green Technology Solutions, Inc. (OTCBB:GTSO) announced today that the Mongolian agent company for its JV with Rare Earth Exporters of Mongolia (REE) has executed a new land lease agreement in the mineral-rich province of Tuv.
The JV between GTSO and Rare Earth Exporters of Mongolia was formed last month for the purpose of expanding rare earth production and exports from the Asian nation. 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.
GTSO President and CEO John Shearer said Friday that the company looks forward with great anticipation to seeing the mineral yield estimate reports on the new property, which are being scheduled now. GTSO management expects the new property to be especially rich in yttrium, tantalum, niobium, thorium and zirconium. These rare earths are vital to worldwide manufacturing of everything from consumer electronics to superconductors.
“We’re in a celebratory mood at GTSO headquarters,” Shearer said. “This lease is a big step forward in our plan to help solve the global rare earth supply crisis while instituting cleaner mining technology to minimize environmental contamination.”
The new site is located in the Erdenesant district of Mongolia’s Tuv province. The district surrounds the Mongolian capital of Ulan Bator, where the joint venture’s new operations office is located. Dorj Atantogos, the JV’s director of Mongolian operations, signed the agreement.
Ulan Bator is Mongolia’s road and rail transportation hub. Mongolian rail is connected to the Trans-Siberian Railway in neighboring Russia. The joint venture plans to utilize that transportation infrastructure to convey Mongolian rare-earth mining products to the international seaport of Vladivostok, Russia, where it can be shipped to the U.S., Japan and South Korea without traveling through China.
“Currently, Mongolian trade is over-reliant on China, and their government would like to encourage more trade diversity,” Shearer said.
…
Erdene Reports Additional Results from Mongolian Copper Discovery: Includes 34 Metres of 9.24 g/t Silver With 1.3% Copper, Drill Program to Commence in April
HALIFAX, NOVA SCOTIA--(Marketwire - March 4, 2011) - Erdene Resource Development Corp. ("Erdene") (TSX:ERD) is pleased to announce final analytical results for its new porphyry copper discovery on the wholly owned Zuun Mod project in south-western Mongolia.
"Our encouragement from the initial copper discovery reported February 1, 2011 strengthened considerably with confirmation that the previously reported 34 metre intersection of 1.3% copper also contains 9.24 g/t of silver", said Peter Akerley, President and CEO. "We believe the Zuun Mod complex has tremendous additional mineral potential and we eagerly await the results of an expanded drill program that will commence in early April."
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Vale, Xstrata Vie for Coal Mine Mongolia Sees as Springboard
March 7 (Bloomberg) -- Vale SA, the world’s largest iron- ore supplier and Xstrata Plc, the No. 1 thermal coal exporter, head two of six groups shortlisted to develop part of Mongolia’s biggest coal asset as the nation seeks to become a resource hub.
ArcelorMittal, Peabody Energy Corp., a venture between Mitsui & Co. and Chinese coal producer Shenhua Group, and a Russo-Japanese-South Korean group led by OAO Russian Railways round out the shortlist, Baasangombo Enebish, head of the state- run Erdenes MG L LLC, which owns the asset, said March 5. It may take about four months to pick one to three winners for the Tavan Tolgoi field, he said.
“We see no reason to delay,” Enebish said in an interview in Ulan Bator, Mongolia’s capital. “Tavan Tolgoi is only the start. Mongolia would like to be one of the main commodity suppliers in Asia.”
Coal output doubled to 25 million metric tons to become Mongolia’s top export last year, encouraging the government to speed up Tavan Tolgoi’s development after years of debate. The mining industry can help fund broader economic growth, which may hit 10 percent this year, Prime Minister Sukhbaatar Batbold said last week. That would exceed China’s targeted 8 percent for 2011.
“Mongolia is an exciting new environment which we are looking at,” Xstrata spokesman James Rickards said by phone, confirming the company has been shortlisted.
Initial Bids
Mongolia attracted 15 initial bids to develop the field as floods in Australia curb supply. The price of steelmaking coal may rise to a record $340 a metric ton in the next quarter, according to UBS AG’s forecast in a Feb. 21 report.
The Asian nation is “definitely” where Noble Group Ltd., a Hong Kong-based commodity supplier backed by China’s sovereign wealth fund, wants to expand coal operations, Chief Executive Officer Ricardo Leiman said March 1.
Tavan Tolgoi spans some 68,000 hectares, with coking coal located mainly in the central Tsankhi area, Enebish said. Tsankhi has been split into the western bloc, which will be developed by the winners of the tender, and the eastern side, which will be mined by Erdenes TavanTolgoi, a unit of Erdenes MGL. The unit will make an initial public offering of 29 percent to global investors this year or next, Enebish said.
West Tsankhi holds more than 1 billion metric tons of coal, 68 percent of which can be used for steelmaking and the rest as fuel in power plants, Enebish said. The tender winner will pay Erdenes TavanTolgoi royalties for mining and assist in getting the coal to ports in China and Russia for export to Japan and South Korea, among other countries, he said.
Coal Exports
The cost of developing West Tsankhi may be about $7.3 billion, state-run Korea Resources Corp., part of the Russo- Japan-South Korea group, said today in an e-mailed statement.
Output, marketing, and transport plans for West Tsankhi will be discussed with the bidders, Enebish said. The East Tsankhi block, which Erdenes TavanTolgoi is developing on its own, is due to start coal exports within two months and has an annual production target of 15 million tons, two thirds of which will be coking coal, he said.
“The main market is China, it’s more natural,” Enebish said. “But through China, through Russia, the government of Mongolia plans to reach third markets.”
West Tsankhi is located in the South Gobi region of the country, 270 kilometers (170 miles) north of the Chinese border. The nearest port is China’s Tianjin 1,570 kilometers away, with the closest Russian port of Vanino more than three times the distance, according to a November presentation by the Mongolian government posted on its website.
Russian Railways, Sumitomo
OAO Russian Railways is leading the Russo-Japanese-South n group in the bidding, the state-run company said in January. The group’s members include Siberian Coal & Energy Co., Russia’s biggest coal producer, Sumitomo Corp., Marubeni Corp. and Itochu Corp. Korea Resources leads the South Korean companies including Posco, the world’s No.3 steelmaker, and state-run Korea Electric Power Corp., KoRes spokesman Kang Shin Young said today.
The biggest U.S. coal miner, St. Louis-based Peabody said in July it has formed a venture with Winsway Coking Coal Holdings Ltd. to develop Mongolian resources. Winsway, which is listed in Hong Kong, was the biggest buyer of Mongolian coking coal in 2009, Peabody said.
As coal investors help Mongolia establish the transport, energy and mining infrastructure at Tsankhi it will aid development of other deposits, Enebish said. That will make it easier to attract more investment into resources, he said.
“Mongolia is still an under explored country,” Enebish said. “We’d like to see Erdenes TavanTolgoi in five or 10 years as one of the biggest coking coal mining companies.”
The Shenhua Group, which produced 320 million tons of coking and thermal coal in 2009, plans to have a capacity of 560 million tons by 2014, according to its website.
ArcelorMittal, Vale vie for huge Mongolia coal mine
* Six short-listed to develop Tavan Tolgoi mine
* ArcelorMittal, Vale, Xstrata, Peabody among bidders
* Korean bidder estimates initial investment of $7.3 bln
* Mongolia says no timeframe to announce final bidder
By Hyunjoo Jin and David Stanway
SEOUL/BEIJING, March 7 (Reuters) - ArcelorMittal , Vale and Xstrata are among six bidders short-listed to develop Mongolia's Tavan Tolgoi mine, the world's largest untapped coking coal deposit, Mongolia said on Monday.
U.S. coal miner Peabody , a consortium of Chinese energy firm Shenhua and Japan's Mitsui & Co , and a separate consortium of Japanese, South Korean and Russian firms are the other preferred bidders, said Erdenes MGL, the government body which controls Tavan Tolgoi.
The firms are vying to develop the west Tsankhi block of the mine, which has 1.2 billion tonnes of coal reserves and could produce 15 million tonnes annually for more than 30 years.
One of the South Korea bidders said the project would need an initial investment of around $7.3 billion, with the winning bid announced on June 30.
But Mongolian official Ch Batbaatar, who is handling the bids for Erdenes, said there was no specific timeframe for selecting the final bidder. The $7.3 billion figure could also not be confirmed, he said by telephone from the capital Ulan Bator.
Foreign miners and steelmakers have eagerly competed for the right to develop the mine in Mongolia, a frontier economy neighbouring booming China that sits on vast reserves of coal and copper.
"It is massively significant in terms of large, undeveloped metallurgical coal resources. So it's a big prize for whichever parties get to ultimately develop it," said Tim Schroeders, a portfolio manager at Pengana Capital in Melbourne.
"The cost is going to be big because it's going to be difficult for whoever does get the gig to ensure the infrastructure solution is in keeping with the size of the resource."
Tavan Tolgoi has estimated reserves of 6 billion tonnes of coal, including the world's largest untapped deposit of coking coal, used by steelmakers.
Investment bankers handling a separate IPO for the mine estimate the eastern part of the deposit is worth around $15-20 billion.
Strong demand for coking coal from big Asian buyers has pushed prices to near record highs this year.
China, Japan and South Korea are scouring the world and snapping up iron ore and coking coal assets to diversify from heavyweight suppliers such as BHP Billiton and Rio Tinto .
The focus has shifted to undeveloped Mongolia, which some analysts say could be one of the fastest growing economies of the next decade because of its vast quantities of untapped mineral wealth.
Tavan Tolgoi, in Mongolia's south Gobi region, consists of six coal fields and Tsankhi is the main one, containing most of its coking coal resources.
It lies 540 km (336 miles) south of Ulan Bator and 270 km north of the Chinese border. The nearest port is China's Tianjin 1,570 km away, with the closest Russian port of Vanino more than three times the distance, according to Mongolian data.
Members of the South Korean bidding group, led by state body Korea Resources, include POSCO , utility firm KEPCO , trading firm LG Corp and Daewoo International . Russian Railways, Japanese trading houses Itochu Corp , Sumitomo Corp , Marubeni Corp and Sojitz Corp make up the rest of that consortium.
Of the original list of 15 bidders, Australia's Fortescue Metals , China's Erdos Chenglong, Oleg Deripaska's En + Group and three Mongolian firms did not make the shortlist.
"Russia has traditionally had a very strong relationship with Mongolia; the Mitsui-Shenhua grouping is interesting because Mitsui is a very active and early player in difficult jurisdictions, they are quite forward in their outlook, they'll go into places earlier than others," said Andrew Harrington, an analyst with Patersons Securities in Sydney.
MINING BOOM
Mongolia last month short-listed four global banks to manage the sale of shares in the mine, in what could become the country's biggest share sale. Bankers have said the IPO could raise between $1.5-$5 billion.
The separate western section is offered on a contract basis and 15 bidders had eyed the mining rights.
Mongolia is poised to overtake Australia as China's largest coking coal supplier this year.
It exported 16.6 million tonnes of coal to China in 2010, up nearly three-fold from the preceding year and just 2.5 million tonnes in 2005.
The first phase of Tavan Tolgoi will add 15 million tonnes of coal per year to Mongolia's total production, eventually rising to 30 million tonnes, Mongolia's mining minister said last month.
Mongolia lingered in isolation for 70 years as a Soviet satellite state, serving as a sleepy buffer zone between its giant neighbours, Russia and China.
Now the democratic government, in power since the early 1990s, is trying to pull its 3 million citizens out of poverty by exploiting its largely untapped mineral wealth.
Bond-ing in Mongolia
March 3 (FT) As one Hong Kong banker told beyondbrics recently, “Mongolia is the only game in town”. And soon, gung-ho investors may get a new way to play it. The resource-rich country, forecast by one bank to be the world’s fastest-growing emerging market in coming years, wants to raise $500m in its first dollar bond sale.
This is not the first time it’s floated the idea. But it’s the first time it has the attention of so many bankers and investors.
Ganhuyag Chuluun Hutagt, Mongolia’s vice minister of finance, told Bloomberg: “We’re looking at an issuance of inaugural sovereign bonds in order to set up a benchmark and open up a window for private companies to go and raise money.”
…
Mongolia Concerned ‘Hot Money’ Heats Economy, Javkhlan Says
March 4 (Bloomberg) -- Mongolia is concerned about the destabilizing effect of “hot money” inflows on the economy as it begins to develop large coal and copper mines, said Bold Javkhlan, the first deputy governor of the central bank.
The country spent an equivalent 180 billion tugrik ($140 million) last year to stabilize the exchange rate and will keep the policy this year as expected commodity price gains and the start of operations at new mines pressure the currency, Javkhlan told a forum in Ulan Bator, Mongolia’s capital. About 40 percent of money inflows into Mongolia are short-term, he said.
“One issue I’d like you all to be concerned with is hot money,” Javkhlan said. “The real exchange rate has quite a gap with the nominal. The more this grows, the more speculative money will come in.”
The tugrik has gained 15.4 percent against the dollar since Jan. 1 last year and 19.2 percent versus the euro as the country’s second-largest export, copper, hit a record $10,190 a metric ton on Feb. 15, and coal prices advanced on supply disruptions from Australia. Mongolian banks hold about 1.5 trillion tugrik of “extra” liquidity, Vice Minister of Finance Ganhuyag Chuluun Hutagt said March 2.
Oyu Tolgoi
Oyu Tolgoi, a copper and gold mine being developed by Rio Tinto Group with Ivanhoe Mines Ltd. and the Mongolian government, is due to start operating in 2012. The mine will account for 30 percent of Mongolia’s gross domestic product when fully operational in 2020, according to the venture.
Erdenes Tavan Tolgoi, operator of the eastern part of the coal field which is estimated to hold some 6.4 billion tons of the fuel, will start mining and exporting within two months. It may produce about 1 million metric tons this year, Lkhagva Ganbat, a company board member, said March 2. Annual output may reach 15 million tons in three years, he said.
“From 2014, when most of the mining projects are up and running we don’t need to be scared of this money flows coming in, because it will be real money going into the economy,” Javkhlan said. “The main goal now is stability of the fiscal system.”
Winsway Annual Results & Dividend
March 7 – Winsway Coking Coal Holdings Limited (HKG:1733)
FINANCIAL HIGHLIGHTS
• Turnover of the Group in 2010 was HK$9,272 million, representing an increase of HK$3,989 million or 75.51% over 2009.
• Profit attributable to equity shareholders of the Company in 2010 was HK$929 million, representing an increase of HK$414 million or 80.39% over 2009.
• Diluted earnings per share were HK$0.346.
• The Board recommends a final dividend of HK$0.061 per share for the year ended 31 December 2010.
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Why the US and China Woo Mongolia
An economic minnow but a geographic titan, Mongolia is of growing strategic interest to both the US and China, writes J Berkshire Miller.
March 7 (The Diplomat) ‘Economic powerhouse’ isn’t a term usually associated with Mongolia—lack of development, political uncertainty, and limited resources continue to restrict its growth. Nor is ‘strategic pivot’—Mongolia is, after all, a landlocked country with no ports, a small army and an underdeveloped infrastructure. And yet numerous countries in the Asia-Pacific region and beyond are starting to recognize that this geographic titan (it’s larger than France, Spain, and Japan combined) has real potential to become a key strategic partner.
China, Japan, South Korea, India, and Vietnam all already maintain missions in the dusty capital, Ulan Bator. But interest extends beyond regional neighbours—the United States, Canada, Australia, and several European Union states have also indicated they are keen to boost bilateral ties.
Why the interest? In the cases of China and Russia, shared history and geography make Mongolia an essential strategic partner for a country wanting to hedge against one or the other (or both). In addition, Mongolia’s eastern border with China is less than 1000 kilometres from North Korea, making it an intriguing potential partner on security issues. Mongolia may not have the aspiration—or capacity—to develop a strategic weapons defence system, but a collapse of Kim Jong-il’s regime could mean all bets are off.
Either way, Mongolia has been developing increasingly close security ties with the United States. Through the International Security Assistance Force (ISAF) in Afghanistan, Mongolia contributed about 150 soldiers from the elite Mongolian Expeditionary Task Force (METF)—a sizeable number considering the country’s population—to help train the Afghan National Army in mobile field artillery techniques.
While nearly two-thirds of the METF in Afghanistan have now returned home, such moves have bolstered the broader relationship with both NATO and the United States. This deployment has also built on the US goodwill Mongolia secured through its troop contributions to the Iraq War, which prompted visits by then US Defense Secretary Donald Rumsfeld and then President George W. Bush—the first sitting US president to visit the nation.
And the Obama administration has indicated that it intends to build on this progress. Last August, the Mongolian Armed Forces (MAF) and the US Pacific Command conducted its annual joint-training exercise, ‘Khaan Quest,’ which was first undertaken in 2004 and is aimed at further enhancing the MAF’s expertise in peacekeeping and counterterrorism. Khaan Quest continues to attract observer and participating nations from across the globe, with South Korea, Thailand, Canada, India, Japan, and Fiji all in attendance recently.
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What if the Wolf Snarls? Mongolia’s Macro-Economic Risks
Emerging economies all have risks. But what about virtually unknown Mongolia, whose GDP is set to grow at 30 percent a year by 2013?
ULAAN BAATAR, Mar. 7 (2point6billion.com) – Attending the Mongolian Economic Forum last week was not just a welcome occasional foray into an interesting, yet relatively small and obscure Asian country, it was an insight into two main issues. Firstly, for me, it provided a snapshot back in time of a country just emerging from years of depression – much as I found China in fact when I first began working in the country 25 years ago. But secondly, and more importantly, it provided the recognition that what is happening in Mongolia is going to change the way the world sources its most in-demand raw commodities. Mongolia possesses the world’s largest copper reserves, the second-largest coal reserves, significant onshore oil and gas fields, the world’s second-largest deposits of rare earths, massive gold and iron ore reserves, and many other hugely significant deposits of minerals ranging from uranium to tungsten and zinc. Put simply, Mongolia’s minerals will provide the world with supplies of many of its most valuable raw minerals for the rest of this century. That’s why the country is suddenly gaining attention, and that is why the Mongolia issue is important.
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GTSO Rare Earth JV Energized by Successful Meeting at Mongolian Embassy
March 3 (4-Ttaders.com) Green Technology Solutions (OTC:GTSO) President and CEO John Shearer today reported encouraging results from his meeting at the Embassy of Mongolia in Washington, D.C., on Wednesday.
Shearer was welcomed by Ariunaa Adiya, the Embassy's First Secretary, Trade and Economic Affairs. In Adiya, GTSO found a friendly supporter of the company's efforts to develop sources of rare earths inside the developing Asian nation.
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Ten Things We’ve Learned about Mongolian Democracy (and China)
ULAAN BAATAR, Mar. 4 (China-Briefing.com) – Attending the Mongolian Economic Forum this week has in part been an interesting case study in two contrasting and competing systems of government. While Ulaan Baatar, the capital of Mongolia, lies closer to Beijing than Shanghai does, it employs a democratic system as opposed to the one-party state. That system itself has only been in operation for 20 years, about the same time as China has risen to become a world trading giant. In such close proximity to each other, the differing political contrasts are quite apparent. So what have we learned this week about Mongolian democracy as compared to China’s one-party state?
<Mogi & Friends Fund A/C>
102%
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.
…
Mogi
Disclosures
· 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.
· Please refer to the prospectus for further disclosures.
---
"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
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Suite 906 · Central Tower · 2 Sukhbaatar Square
Sukhbaatar District 8 · Ulaanbaatar 14200 · Mongolia
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 mogi@cpsinternational.mn or +976-99996779.
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