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 25, 2010 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.074 | 0.001 | 0.074 | 0.075 | 0.072 | 0.078 | 0.071 | 6,922,111 | |
1.480 | 0.020 | 1.480 | 1.495 | 1.485 | 1.490 | 1.435 | 2,012,044 | |
0.510 | 0.010 | 0.500 | 0.510 | 0.500 | 0.510 | 0.500 | 221,085 | |
0.870 | -0.055 | 0.855 | 0.885 | 0.910 | 0.910 | 0.850 | 1,524,758 | |
0.400 | 0.000 | 0.400 | 0.470 | 0.000 | 0.000 | 0.000 | 0 | |
0.021 | -0.002 | 0.020 | 0.022 | 0.022 | 0.022 | 0.020 | 578,049 | |
0.006 | 0.000 | 0.006 | 0.007 | 0.000 | 0.000 | 0.000 | 0 | |
0.220 | -0.005 | 0.220 | 0.225 | 0.230 | 0.250 | 0.220 | 2,655,820 | |
0.275 | 0.000 | 0.275 | 0.280 | 0.270 | 0.280 | 0.270 | 291,666 | |
0.570 | 0.020 | 0.570 | 0.590 | 0.555 | 0.595 | 0.540 | 459,202 | |
29.500 | 0.230 | 29.400 | 29.520 | 29.600 | 29.770 | 29.420 | 2,165,712 | |
82.020 | 0.420 | 82.010 | 82.050 | 82.400 | 82.800 | 81.890 | 6,898,850 | |
44.760 | 0.050 | 44.750 | 44.770 | 44.860 | 44.990 | 44.100 | 21,413,396 | |
Source: asx.com.au
Mongolia TT mine IPO may come by yr end; rail deal signed
* IPO for Tavan Tolgoi expected by end 2011, early 2012
* Mongolia to decide on listing venue as early as June
* South Korea's Lotte signs deal for connecting railway (Adds details on rail link)
HONG KONG, March 25 (Reuters) - The highly anticipated initial public offering by Mongolia's Erdenes-Tavan Tolgoi will take place at the end of 2011 or the first quarter of 2012, a top Mongolian government official said on Friday, while a South Korean consortium has a deal to build a railway line for the world's largest untapped coking coal deposit.
The IPO is a key step for impoverished Mongolia to raise funds and develop its massive mining resources, with fast-growing nations such as China, India and Korea clamouring for more minerals.
The Mongolian government could announce the listing venue for the IPO by as early as June. The IPO is estimated by bankers to be in a range of $1.5-5 billion, Enebish Baasangombo, chief executive of state-owned Erdenes MGL, told Reuters in an interview on the sidelines of the Mines and Money conference in Hong Kong.
"Consultation on the stock exchange will be done with the banks after discussions with the Hong Kong stock exchange and the London stock exchange," he added. "We need to see which will be more beneficial. There are many issues."
Baasangombo declined to comment on the potential size of the IPO, saying: "It's a little early to talk about the size of the offering, but we have high expectation on that."
The deal would also be a boon for Goldman Sachs Group Inc , Deutsche Bank AG , BNP Paribas SA and Macquarie Group Ltd , which have been short-listed to manage the offering.
Erdenes, the state-owned company in charge of the eastern block of Tavan Tolgoi, plans to keep 50 percent of the project, and will distribute 10 percent of the shares to local residents, 10 percent to Mongolian companies and 30 percent in the form of the IPO. The west Tsankhi block of the mine has 1.2 billion tonnes of coal reserves and could produce 15 million tonnes annually for more than 30 years.
Mongolia has short-listed ArcelorMittal SA , Vale SA and Xstrata Plc among six bidders to develop Tavan Tolgoi.
U.S. coal miner Peabody Energy Corp , a consortium of China's Shenhua Group and Japan's Mitsui & Co Ltd , and a separate consortium of Japanese, South Korean and Russian companies were the other preferred bidders.
RAIL COSTS
Unlisted Lotte Engineering & Construction said in a statement on Friday that the rail project connected with Mongolian Railway was expected to cost $3 billion and the company aimed to begin construction in the first half of 2012, around the same time as the planned IPO.
The 1,040 km railway will link Tavan Tolgoi in the South Gobi Desert and the eastern city of Choibalsan, Lotte added.
Demand for coking coal from big Asian buyers such as China, Japan and South Korea has pushed prices to near record highs this year.
S. Korea signs US$3b railway deal with Mongolia
March 25 (AFP) SEOUL: A South Korean consortium has signed a $3.0 billion preliminary deal to build a railway serving the world's largest untapped coal mine in Mongolia, one of the builders said Friday.
The consortium includes the state-run Korea Rail Network Authority and top builders such as Daewoo Engineering & Construction, Hyundai Engineering & Construction and Lotte Engineering & Construction.
Lotte Engineering said the deal between the consortium and Mongolian Railway was signed in Seoul on Thursday, adding that work is planned to begin next year.
The consortium has offered to build a 1,040-kilometre (650 miles) railway linking Mongolia's Tavan Tolgoi mine in the south Gobi desert with the eastern city of Choibalsan early this month.
Tavan Tolgoi is the biggest untapped coal mine in the world, with about 6.4 billion tons of reserves.
The five-year project is part of a Mongolian government plan to build 5,500 kilometres of cross-country rail by 2015 to transport mineral resources from its mines.
Lee says N. Korea can learn from Mongolia for market opening
SEOUL, March 25 (Yonhap) -- South Korean President Lee Myung-bak said Friday that Mongolia, along with China, is a good model for North Korea, which should work toward economic reform and market opening.
"I hope that North Korea will go through a process of change like China or Mongolia. Mongolia is a good model," Lee said in a meeting with visiting Mongolian Prime Minister Sukhbaatar Batbold, according to Lee's spokeswoman Kim Hee-jung.
Lee was responding to Batbold's remarks that his country plans to provide Pyongyang with help.
"I expect peace on the Korean Peninsula. Through exchange with North Korea, we will share our experience on how Mongolia, which lived a difficult life under socialist policy, is developing after reform and market opening," Batbold was quoted as telling Lee.
The leaders also agreed to expand mutually beneficial ties between the two nations, the spokeswoman said in a press briefing.
The South Korean president especially asked the Mongolian government to expand support for South Korean firms seeking to participate in the country's energy and infrastructure development projects, Kim said.
They also discussed the issue of climate change.
As the Mongolian prime minister talked about the seriousness of desertification of his nation's land, Lee stressed the importance of international cooperation in dealing with the problem, she added.
Related article:
Mongolian PM condemns N. Korea for its deadly attack on S. Korea – Yonhap, March 25
MONGOLIA AND KOREA TO COLLABORATE IN NUCLEAR ENERGY – Montsame, March 25
Hunnu Coal Mines & Money HK Presentation
March 23, Hunnu Coal Limited (ASX:HUN) --
Haranga Resources Mines & Money HK Presentation
March 23, Haranga Resources Limited (ASX:HAR) --
General Mining Corp Mines & Money HK Presentation
March 22, General Mining Corporation Limited (ASX:GMM) --
TAXATION OFFICE INSTALLS NEW SYSTEM
Ulaanbaatar, Mongolia, /MONTSAME/ Mongolia's General taxation office (GTO) has installed an “E-office” or “share point” system.
The system will enable now all tax-related organizations to get connected to each other nationwide and run the work without paper. It is possible to send and share in a short time all the information such as announcements, bid materials, orders, and so on.
IMF Executive Board Concludes 2011 Article IV Consultation, Post Program Monitoring, and Ex Post Evaluation with Mongolia: “overheating has become a key policy concern”
March 23 (IMF) On March 16, 2011, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV Consultation, Post Program Monitoring, and Ex Post Evaluation (EPE) with Mongolia.
Background
The Mongolian economy was hit hard by the global economic crisis, due to its high dependence on mineral exports and a history of pro-cyclical macroeconomic policies. By early 2009, the economy was on the verge of collapse: the central bank was running out of international reserves, the budget deficit was not financed, inflation was in the double-digits, and the banking system was under stress. An 18-month Stand-By Arrangement (SBA) was approved on April 1, 2009, which succeeded in quickly stabilizing the economy thanks to the authorities’ steadfast policy implementation, financial support from the donor community, and a rebound in global copper prices.
…
Executive Board Assessment
Executive Directors welcomed the turnaround in economic growth following the completion of the Fund-supported program. Directors observed, however, that pro-cyclical policies are undermining hard-won macroeconomic stability, and overheating has become a key policy concern. This calls for fiscal restraint and tightened monetary conditions. Looking ahead, Directors considered that medium-term prospects are favorable but that a prudent management of Mongolia’s vast mineral resources is necessary for sustainable growth and lasting prosperity.
Directors expressed concern that the large increase in fiscal spending envisaged for this year will further drive up inflation, with an adverse impact on the poor. They called on the authorities to amend the 2011 budget and cut public spending to bring the fiscal stance back in line with the cyclical requirements and the medium-term objectives of the Fiscal Responsibility Law. Directors also considered the adoption of a better targeted social transfer system to be a priority for the period ahead. Noting the potential for large quasi-fiscal liabilities, they urged caution with the planned establishment of a development bank, the provision of government guarantees, and the implementation of public-private partnerships.
Directors saw considerable scope for a more proactive monetary management to curb inflation, starting with an immediate hike in the policy interest rate. They also generally supported a move over the medium term toward a monetary framework with a more explicit focus on inflation. Measures to improve liquidity management and the economy’s capacity to absorb capital inflows are also necessary.
Directors agreed that the flexible exchange rate regime has worked well. They welcomed the authorities’ commitment to allow the exchange rate to adjust with market conditions, noting its benefits in providing a cushion against external shocks and the structural changes underway. Directors encouraged the authorities to remove the remaining multiple currency practices as soon as conditions permit.
Directors welcomed progress in strengthening financial oversight and implementing the recommendations of the Financial Sector Assessment Program. They highlighted the importance of strict enforcement of existing regulations, and looked forward to the enactment of a law governing the provision of public support for bank restructuring and recapitalization. Directors also encouraged an early establishment of a deposit insurance system to replace the blanket deposit guarantee.
Directors concurred with the key messages of the EPE report. They noted that the Shad helped alleviate the effects of external shocks, by combining strong policy adjustment and a front-loaded use of Fund resources, catalyzing donor support for Mongolia. Advances had also been made in structural reforms. Going forward, Directors urged sustained efforts to complete the reforms initiated under the program in order to strengthen the resilience of the Mongolian economy. They welcomed the authorities’ intention to remain closely engaged with the Fund under post-program monitoring.
Mongolia the next frontier
Many established brand names from Asean can be introduced to Mongolia, and Malaysia hopes to be in the forefront with property and infrastructure development, IT products and services and education.
March 26 (The Star, Malaysia) DESPITE its historical differences with China, Mongolia has become one of China’s indispensable trading partners.
Last year, China accounted for 85% of its total exports of US$2.89bil (RM8.75bil) while its imports from China totalled US$1.18bil (RM3.57bil), a few millions behind Russia.
China has invested more money in Mongolia than any other country in the past 20 years, mainly in the mining, energy and construction sectors.
Because of the proximity – the landlocked country is only two hours flight away from Beijing – and close economic ties between the two nations, Mongolia is considered the next destination of Malaysian companies looking to expand their business beyond China.
MyKRIS Asia Sdn Bhd corporate and government affairs director Lawrence Chang described Mongolia as a country kind of like Malaysia, where the fibre optics infrastructure has already been laid, but with a problem in the last-mile connection to households.
“Our intelligent network has worked in China. We can copy this in Mongolia and it is the best place for us to be as its government and people are changing their mindset on IT,” he said.
The company had been providing information technology network solutions for Chinese clients such as the Beijing University of Posts and Telecommunications and Digital China for many years.
However, Mongolia’s small population – only about three million – and geographical barrier are some of the company’s concerns.
Last month, the Kuala Lumpur-based Asean Retail-Chains and Franchise Federation (ARFF) signed a memorandum of understanding with the Mongolian Franchise Association to help bring more franchise names from Asean to Mongolia.
ARFF Malaysia chapter president Datuk Dr Chin See Keat, CEO of England Optical Group, said many established brand names from Mal-aysia and Asean nations could be introduced to Mongolia, and the federation could share its expertise with Mongolian retailers.
Dr Chin did not discount the possibility of England Optical setting up branches or franchise outlets in Mon-golia.
The Malaysian optician company already has outlets in Chinese cities like Beijing, Shanghai, Shenyang, Jinan and Kunming.
Sunzen Biotech Bhd, which has penetrated the animal feed market in China, Taiwan, Singapore, Iran and many more countries, is looking to supply its Orgacids products to horse and cattle farms in Mongolia.
Sunzen Lifesciences research and development director Dr P.C. Kok said he had met some Mongolian dealers and distributors who were interested in giving the anti-bacterial Orgacids a try.
Recently, Datuk Iskandar Sarudin, the Malaysian Ambassador to China, who is also accredited to Mongolia, led a delegation of about 20 businessmen from Malaysia to the Mongolian capital of Ulan Bator.
“There is good reason for Malaysian companies in China to expand to Mongolia as it is heavily dependent on China,” said Iskandar.
For the first time, a Malaysian mission in China has been assigned to strengthen economic and political ties with their Mongolian counterparts.
Although Iskandar does not have an office in Ulan Bator, he would travel to Mongolia from time to time to maintain a good rapport.
During their two-day trip, the delegation met Mongolian Prime Minister Sukhbaataryn Batbold and the Mongolian business fraternity.
They outlined the sectors in which Malaysian and Mongolian companies can cooperate, namely, prop-erty and utilities development, education, petro-chemicals and IT.
Mongolia may not be one of Malaysia’s top 10 trading nations but the surge in trade between the nations and Mongolia’s projected GDP growth of more than 20% in the next five years augurs well for growth prospects.
Last year, total trade rose 50% to about US$30mil (RM90.8mil) from 2009, in Malaysia’s favour.
Malaysia exported machinery, paper and paperboards, cocoa, sugar and fats and oils to Mongolia, and imported goods like optical and medical instruments and fish products.
In the last five years, Mongolia has drawn in foreign investments to its mining sector.
It is said every dollar in mining creates an additional demand of 1.84 dollars in other sectors.
Batbold said he was happy that the Mongolian business community had a fruitful meeting with their visiting Malaysian counterparts.
“We know that Malaysia has experience in property and infrastructure development, IT products, services and education that Mongolia needs very much.
What Mongolia has is rich abundance of natural resources,” he told the Malaysian businessmen.
Low-profile Irish entrepreneur playing key role in Clinton initiative (invested $6M in Tenger Financial)
March 25 (Irish Times) HE PREFERS to remain out of the spotlight, but Irishman Michael Madden is playing a key role in the Clinton Global Initiative, founded by Bill Clinton.
Last September, his Dublin-based firm Ronoc – set up in 2007 – committed to launch a $130 million private equity fund to transform microfinance across eastern Europe and central Asia.
Ronoc has already invested $6 million in Tenger Financial Group in Mongolia and plans to top this up by $4 million by the end of this year. Tenger is Mongolia’s fourth-largest bank and is planning to extend into China and Russia over the next three years.
Madden describes himself as an entrepreneur with a “passion for emerging economies”.
He founded Renaissance Credit, which became the third-biggest consumer finance bank in Russia and also had a successful career with American Express.
“While we have completed this deal in Mongolia, we are also currently in discussions with a number of banks and microfinance institutions in Russia, Romania, Azerbaijan and Kazakhstan,” Madden told me.
McCloskey Mongolian Coal and Infrastructure Conference 2011
April 7 - 8, 2011 - UB Hotel, Ulaanbaatar, Mongolia
(McCloskey) The inaugural McCloskey Mongolian Coal Conference will take place in Ulaanbaatar in April 2011. The coal bonanza in Mongolia is gathering pace as news of mine developments and rail projects are announced on a growing basis yet so much is still unknown about the huge potential of Mongolian coals, the diversity of qualities, size of deposits, accessibility and what is required to bring the coals to market.
…
The conference will cover the following topics and more:
· Evolution of Mongolian government policy and mining law
· Overview of Mongolia’s coal reserves: Coking and thermal coals
· Review of Mongolia’s proposed rail and road transport projects
· World coking coal demand: 2011 - 2031
· Overview of the 7.5Bt Ovoot Tolgoi coal deposit
· Mongolia’s domestic power demand: Present and future
· International investor’s view of Mongolia’s coal assets
· Review of Chinese coking coal and steel demand
· The direction of Mongolia’s coal exports
· Challenges for labour and equipment supply
· Global economic outlook
· The influence of met coal indices on Mongolian coking coal pricing?
Japan: Donation of relief money from Mongolia in response to the Tohoku-Pacific Ocean Earthquake
Thursday, March 24 (ReliefWeb), in response to the Tohoku-Pacific Ocean Earthquake, the Government of Mongolia announced that it had made a donation of relief money (one million US dollars).
The donation by the Government of Mongolia was decided in an extraordinary cabinet meeting held on Saturday, March 12, 2011, the day after the earthquake, and based on this decision, the donation was transferred into the relief fund account established by the Embassy of Japan in Mongolia.
In response to the recent earthquake the Government of Mongolia has to date implemented various measures, including the dispatch of an emergency rescue team and the provision of relief supplies. In addition, on Friday, March 18, H.E. Mr. Gombojav Zandanshatar, on behalf of the Cabinet members of Mongolia, Minister for Foreign Affairs and Trade of Mongolia wrote a message in a condolence book at the Embassy of Japan in Mongolia. The Government of Japan deeply appreciates the assistance of the Government and people of Mongolia.
(*This is a provisional translation. The above date denotes the date of the issue of the original press release in Japanese.)
Mogi: Another cultural patent dispute ensuing?
Medvedev may invite Obama to listen to Siberian throat singing
MOSCOW, March 24 (RIA Novosti) Russian President Dmitry Medvedev promised a singer from the Southern Siberian republic of Tuva to invite U.S. President Barack Obama to listen to the republic’s world-famous throat singing.
During a meeting between Medvedev and cultural figures in Moscow on Thursday, Kongar Ondar, a throat singer from Tuva, complained to the president that China and Mongolia often “falsely” claim that “throat singing and milk vodka” originated from their countries.
Then U.S. President George Bush professed a liking for both during a visit to Mongolia in 2005.
“I can’t promise anything as far as Bush is concerned, but I’ll try to invite Obama to listen,” Medvedev promised.
<Mogi & Friends Fund A/C>
98%
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.
Up a notch from Thursday.
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.
---
"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
P Please consider the environment before printing a copy of this email.
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.
Disclosure/Disclaimer
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.
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