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Saturday, April 9, 2011

[cpsinewswire] [CPSI NewsWire: EBRD Invests $10M to Mongolia Opportunities Fund]

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, April 8, 2010

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Last https://myasx.asx.com.au/images/price_unchanged.gif

$ +/-

Bid

Offer

Open

High

Low

Volume

VOR

 0.070  Down

 -0.001

 0.069

 0.070

 0.069

 0.070

 0.068

 5,725,960

HUN

 1.700  No change

 0.000

 1.700

 1.730

 1.700

 1.720

 1.685

 267,628

HAR

 0.490  Down

 -0.005

 0.470

 0.495

 0.490

 0.490

 0.490

 77,000

AKM

 1.050  Down

 -0.015

 1.050

 1.065

 1.070

 1.075

 1.040

 627,147

ALG

 0.400  No change

 0.000

 0.400

 0.480

 0.400

 0.400

 0.400

 30,000

BDI

 0.023  Up

 0.003

 0.023

 0.024

 0.019

 0.024

 0.019

 12,808,675

BKM

 0.008  No change

 0.000

 0.008

 0.009

 0.000

 0.000

 0.000

 0

GMM

 0.210  No change

 0.000

 0.210

 0.215

 0.210

 0.215

 0.205

 221,439

GUF

 1.160  Up

 0.140

 1.160

 1.170

 1.040

 1.160

 1.040

 2,869,780

LRL

 0.290  Up

 0.010

 0.290

 0.295

 0.280

 0.290

 0.280

 262,929

XAM

 0.575  No change

 0.000

 0.575

 0.590

 0.575

 0.575

 0.575

 110,153

LEI

 28.940  No change

 0.000

 29.600

 19.940

 0.000

 0.000

 0.000

 8,900

RIO

 86.250  Up

 0.250

 86.200

 86.300

 85.980

 86.380

 85.540

 2,912,658

BHP

 47.760  Up

 0.080

 47.650

 47.800

 47.330

 47.760

 47.140

 20,530,275

Source: asx.com.au

 

EBRD President visits Mongolia

April 8, The FINANCIAL -- A senior delegation from the European Bank for Reconstruction and Development (EBRD), led by President Thomas Mirow, is visiting Mongolia on 8-9 April.

Mr. Mirow will be joined by Olivier Descamps, Managing Director for Turkey, Eastern Europe, the Caucasus and Central Asia, and Paul Vlaanderen, EBRD Board Director for the Netherlands and Mongolia.

According to EBRD, the delegation members will meet their government counterparts, hold negotiations with the Bank's existing and potential business partners and sign an EBRD-funded transaction with Mongolia Opportunities Fund, the country's first private equity fund serving the fast-growing small and medium-sized businesses sector. 

During the two-day visit members of the EBRD delegation will meet the Mongolian authorities, including President Tsakhiagiin Elbegdorj, the Speaker of the State Great Khural (Parliament) of Mongolia, Damdiny Demberel, Minister of Finance Sangajav Bayartsogt and the Governor of the Bank of Mongolia, Lkhanaasuren Purevdorj

The EBRD delegation will reinforce the Bank's strong commitment to supporting the economic development of Mongolia with a view to promote and support further private sector development, including micro, small, medium and large local enterprises and ensuring sustainable development of Mongolia's emerging and important natural resources sector as well as to contribute to a strengthening of  the country's financial sector. 

The US$ 10 million equity contribution by the EBRD to the Mongolia Opportunities Fund which was signed today by EBRD President Mirow and Mandar Jayawant, the Fund's Managing Partner, is aimed at increasing the availability of equity capital for the growing SME sector in Mongolia 

A specific feature of the Fund is that it is dedicated to the non-natural resource sector. It will support companies along the mining supply chain operating both in services and manufacturing, food processing and food supply sectors, as well as small scale infrastructure development. The Fund will make a significant contribution to balanced growth in the Mongolian economy. It will consider making equity investments in Mongolian SMEs with individual investment ranging from US$ 2.5 million up to US$ 7.5 million. 

"With this investment the EBRD will take a 25 per cent stake in Mongolia Opportunities Fund that will play an important role in developing the private equity market in Mongolia. Jointly with our partner investor International Finance Corporation, the Fund will provide support to the country's small and medium-sized businesses, especially, at a time when long-term equity financing remains a scarcity in the country," President Mirow, said during the signing ceremony. 

"The Mongolia Opportunities Fund is uniquely positioned to help grow significantly the local companies that it works with, allowing them to maximise their contributions to Mongolia's economic development. We appreciate the support that the EBRD has provided in establishing the Fund and look forward to continuing our fruitful cooperation with the Bank and the Fund's other investors for the benefit of our companies," said Mr Jayawant. 

The EBRD delegation will also hold meetings with senior managers and owners of companies that are already Bank clients, as well as with prospective new clients.

In Mongolia the EBRD focuses on developing a sustainable mining sector with sufficient mining supply chain, food processing industry, financial, manufacturing and retail sectors.

Since the beginning of its operations in Mongolia in October 2006, the EBRD has committed about €317 million (US$ 425 million) to 36 projects in various sectors of Mongolia's economy,  with 100 per cent of the projects' being related to private sector debt and equity investments.

Link to article

 

Wanted: London Stock Exchange executive for Ulan Bator

April 8 (FT) London Stock Exchange staff fed up with working in the Big Smoke are about to be offered the chance to spread their wings – and fly off to Mongolia.

Ulan Bator's stock exchange this week took a big step towards modernisation with a deal with the London Stock Exchange under which a number of  LSE staff will effectively run the Mongolian bourse for a while.

Xavier Rolet, chief executive of the LSE, signed the deal with S├╝khbaataryn Batbold, the Mongolian prime minister, on Thursday.

 Mongolian stock index top 20

The deal is remarkable on three levels. First, Mongolia is hoping to use London as a gateway through which to source inward capital flows and investment as a counter-weight to growing Chinese and Russian involvement in Mongolia's booming mineral and natural resources sectors.

Second, the British exchange is gambling that by getting involved it makes London the obvious destination for Mongolian mining and natural resources companies wanting to list abroad. Much of this is based on Rolet's firm belief in the longevity of the commodities "super-cycle".

Third, the LSE will not merely be providing technical assistance – what usually happens in these situations. The LSE will appoint a management team at the Mongolian exchange "to oversee its development and privatisation", according to a statement by the companies. One project is to implement an international-standard Mongolian market index.

The LSE's Sri Lanka-based technology provider, MillenniumIT, will provide trading, surveillance and post-trading infrastructure. (A representative from the Mongolian exchange will be based permanently at LSE headquarters in Britain too.)

This is very deep involvement of a foreign exchange in the running of another country's and is as unusual as it is creative. Asked why Mongolia had effectively handed over its national exchange like this, Oyun Erdenebulgan, deputy chairman of the Mongolian government's State Property Committee – which owns the stock exchange – puts it like this: "If you have a new Ferrari and you are not a good driver, how can you drive it? We want to put a Formula One driver in here."

Mongolia's ambitions are clearly not modest. But for both sides, whether this pans out as hoped will still depend on one thing: whether the super-cycle lasts.

Link to FT Blog

 

LSE strikes Mongolian exchange deal

April 8 (FT) This week Xavier Rolet, chief executive of the London Stock Exchange could be found not in Canada – where a proposed LSE merger with its counterpart in Toronto is being scrutinised by regulators – but in Mongolia.

Ulan Bator, the capital, may seem an unlikely destination for the man running an exchange whose future may well depend on the successful completion of its merger with TMX Group.

But Mr Rolet was there to sign a deal with the Mongolian Stock Exchange. The British bourse is providing advice to the Mongolians as they try to modernise their 20-year old exchange.

But this is no standard deal involving one mature western exchange and a relatively undeveloped minnow in a remote emerging market.

The LSE is also sending a team from London to take over the management of the Mongolian exchange and to "oversee its development and privatisation" under a two-year contract.

For the LSE, the bet is that getting involved early in the development of Mongolia's nascent market structure will put it in pole position to capitalise on the country's emergence as a mining and natural resources hot spot, amid what economists are calling the commodities "supercycles".

Mr Rolet will be hoping that big initial public offerings coming from Mongolia in the future will chose London over Hong Kong or New York.

Next could come dual listings of Mongolian companies in Ulan Bator and London. One Mongolian company is already listed on the LSE: Petro Matad, an oil and gas explorer quoted on Aim since May 2008.

Asked why Mongolia would go as far as handing the management of its national exchange to foreigners, Oyun Erdenebulgan, deputy chairman of the Mongolian government's state property committee – which owns the exchange – said: "If you have a new Ferrari and you are not a good driver, how can you drive it? We want to put a Formula One driver in here."

Mongolia is watching as China, eager for Mongolia's commodities such as coal and copper, is becoming increasingly active in extractive industries.

Mr Erdenebulgan said Ulan Bator hopes to use London as a gateway through which to channel inward capital flows. "We need to diversify our sources of investment," he said. That is one reason why a representative from the Mongolian exchange will be based at LSE headquarters.

S├╝khbaataryn Batbold, prime minister of Mongolia, said at a signing ceremony with Mr Rolet on Thursday that the LSE was "the best possible partner" to support the country's ambitions for its bourse.

His government has tried to harness the boom in foreign-led mining and metals investment to national development goals. One example is the scheme for privatising Tavan Tolgoi, an enormous coal deposit in the Gobi desert.

Dozens of global investment banks and mining companies are in control of different pieces of the Tavan Tolgoi privatisation. The government has stipulated, however, that 20 per cent of the new company is owned by Mongolians through shares floated on the Mongolian exchange.

But until then liquidity remains thin and the exchange is relatively rudimentary. "The distribution of shares in Erdenes Tavan Tolgoi and other announced privatisation initiatives involving local capital market listings require as a precondition a relatively liquid and reasonably functioning stock exchange," said James Passin, principal at Firebird Management, a New York-based fund that is one of the country's largest foreign investors.

Mr Erdenebulgan said: "We are expecting much from the LSE. After two or three years we want to have a 'mini LSE' in Ulan Bator."

Link to article

 

Mongolia Growth Group Ltd. Closes Oversubscribed Private Placement Offering 

Calgary, Alberta CANADA, April 08, 2011 /FSC/ - Mongolia Growth Group Ltd. (YAK - CNSX), is pleased to announce that on April 8, 2011, the Company closed the non-brokered private placement which was announced on March 21, 2011 (the "Offering"). The Company issued 11,257,923 common shares in the capital of the Company ("Common Shares") at a price of CDN $1.32 per share for aggregate gross proceeds of $14,860,458

Certain directors and officers of the Company have acquired Common Shares under the private placement. William Fleckenstein (Director of the Company), through Fleckenstein Partners Fund, subscribed for CDN $2,046,000 or 1,550,000 Common Shares; Harris Kupperman (President, CEO and Director) subscribed for CDN $1,320,000 or 1,000,000 Common Shares; Paulo Bilezikjian (Director), through Green Apple Holdings Group, subscribed for CDN $198,000 or 150,000 Common Shares; Jordan Calonego (COO, interim CFO and Director), through his interests as a beneficiary of the Russell Calonego Family Trust, subscribed for CDN $132,000 or 100,000 Common Shares; and Paul Sweeney (Director) subscribed for CDN $132,000 or 100,000 Common Shares. 

The Company intends to use the proceeds to fund its recently announced partnership with UMC and entry into the insurance market, to purchase leasable real estate, to take advantage of investment opportunities and for general corporate purposes. 

All of the Common Shares issued pursuant to the Offering are subject to a four-month hold period and may not be traded under applicable securities laws until August 9, 2011. 

Link to release

 

Mongolian People Say No to Nuclear Waste

April 8 (UB Post) The Ministry of Foreign Affairs of Mongolia (MFAM) made a statement in connection with recent media news that Mongolia may store foreign spent nuclear fuel. 

MFAM has officially and responsibly denied this news in a statement released on April 6.  

Pursuant to 4.1, Law of Mongolia on prohibition of importing and transit transportation of dangerous waste and its exporting ", it is prohibited to import to Mongolian territory the dangerous wastes for the purposes of use, store, temporary placement and disposal, the statement reads.

Another provision of the law states that it is prohibited to transit dangerous materials through the frontier of Mongolia, MFAM cites.  

"Burial of nuclear waste refers solely to Mongolian-originated wastes as stated in Provision 3.1.22 of the Law of Mongolia on Nuclear Energy and the Government of Mongolia officially state hereby that it had not entered into any deal or negotiations intended to import foreign nuclear waste to Mongolia within the framework of cooperation with foreign states and nations" the statement reads
Incidentally, Care2 Petition site launched a global campaign to collect 10,000 signatures to stop the U.S. from creating a nuclear waste dump in Mongolia.

So far, it has collected 240 signatories. 

Mongolia has huge land mass and there are many developed countries who are coveting a part of it for the safe disposal of their nuclear waste so that their citizens can live safely.

Having knowledge about Chernobyle and the present situation in Japan no responsible Government would ever allow such toxic waste to be buried in their backyard however big it might be. That is equivalent to letting a three year old child to play with sweetened rat poison.

Link to article

 

Mongolian SNF (Spent Nuclear Fuel) Depot

April 8 (Arms Control Wonk) During the Carnegie International Nuclear Policy Conference, a senior State Department official revealed discussions between the United States and Mongolia on a 123 Agreement for nuclear cooperation. It was a thing of beauty to behold — a well-aimed indiscretion by a cunning bureaucrat who framed US-Mongolian discussions in terms of turning Mongolia into a nuclear waste dump.

The story hit the press (Mongolia May Store Region's Spent Nuclear Fuel, Senior U.S. Official Says) and, predictably, the Mongolian Foreign Ministry (en) and Nuclear Energy Authority (en) have denied any plan to host a regional repository.

Take that, GNEP. Or INEF. Or whatever the hell they are calling it now.

The story is pretty straight-forward. Dick Stratford, Director of the Office of Nuclear Energy, Safety and Security at the State Department, was simply running through a list of all the 123 agreements that will need to be negotiated or extended in the near future. When he mentioned Mongolia, I nearly fell out of my chair. I knew about discussions with Mongolia. It turns out Mark Hibbs knew a lot more, including details of an October 2010 visit to Ulan Bator. But was not something officials wanted to talk about.

The Mongolians have been seeking a 123 Agreement — an agreement for peaceful nuclear cooperation with the United States — for some time now.  They don't really need a 123 Agreement, which is for the sale of reactors, major reactor components, and nuclear fuel, but after the US-India deal, some countries like Armenia now view a 123 Agreement as a kind of political symbol.

The Mongolians have uranium deposits, but they aren't content to remain a mere resource exporter.  At least some Mongolian officials want to acquire the entire fuel cycle, through fuel fabrication.  (The Mongolians are careful about what they say, but the gist comes through in this article in the Mongolian Mining Journal by Undraa Agvaanluvsan, a Mongolian academic with government ties, who notes Mongolia's desire to go beyond "a raw uranium producer" to become "a supplier of nuclear fuel components".)

The Mongolians have been coy about whether they would agree to take foreign spent nuclear fuel  — for example, try reading between the lines in this article by Agvaanluvsan in Mongolia Today.  (Mongolia Today is a real publication.  I am serious.)  Agvaanluvsan hints Mongolia might become a regional spent fuel repository, but just hints.  There is no killer quote.  I happen to think the Mongolians are just teasing a very excitable bureaucracy, until the US is too committed to a 123 Agreement to back out even without the waste dump.

The entire process has been very quiet precisely because neither the Mongolians nor the advocates in the US government wanted to see a headline like: Mongolia May Store Region's Spent Nuclear Fuel.  Especially not in the middle of the disaster at Fukushima.

Enter Dick Stratford.  As he got to Mongolia on his list, Stratford hammed it up.  "Mongolia. Whoa. Why Mongolia?"  Yes, indeed, why Mongolia?

The he stuck in the knife and twisted it:

"[T]here are discussions about whether or not Mongolia would harbor – or take a spent-fuel storage depot for third-country fuel. Now, if that works out, we have to have a 123 with any country where U.S.-obligated material is going to. Now, since such a spent-fuel storage facility might take material from Taiwan and South Korea, we'd have to do Mongolia."

I should add that problem is not Mongolia bomb. Mongolia is not just an NPT signatory, it is a single state nuclear weapons free zone!

But Mongolia seems to be following Kazakhstan's path of what I call "book-ending" enrichment — developing a full process of mining, milling and converting uranium, sending it abroad to be enriched, the reimporting it and fabricating fuel.

Link to article

 

Study Group To Call For Launch Of Japan-Mongolia Trade Talks

April 8, TOKYO (Nikkei)--Japan and Mongolia should promptly start bilateral economic partnership talks, according to forthcoming recommendations by a study group comprising government officials and private-sector experts.

The report will stress the importance of the partnership, which would help Japan raise automobile exports and secure steady supplies of mineral resources, while bringing more foreign investment to Mongolia.

The nations agreed to work toward spring negotiations at a summit last November.

Japan intends to put the talks on a fast track in light of the need to reduce its dependence on China for rare-earth metals. But with Tokyo coping with the fallout from the Great East Japan Earthquake, including the nuclear power plant crisis, uncertainty hangs over the talks.

Japan's trade with Mongolia totaled about 10.4 billion yen in 2009, accounting for less than 0.1% of its overall tally. Mongolia imposes tariffs on about 99.7% of items shipped from Japan, including cars and electronics.

(The Nikkei April 8 morning edition)

Link to article

 

The Spring Session of the Mongolian Parliament Begins

April 8 (UB Post) Spring session of the Parliament of Mongolia begins today, with 93.4% of attendance, including Prime Minister S.Batbold, President Ts.Elbegdorj, members of the Government, Chiefs of Agencies and some foreign diplomatic representatives also attended the opening ceremony.

Speaker D.Demberel opened the session and said it was being held at a time when strategic deposit mines are being prepared for exploitation, large projects are being taken up, and herders are taking care of new born animals.

He reminded MPs that big issues awaited their attention, including amendments to the Constitution.

Link to article

 

Aspire: McCloskey Coal Conference (Ulaanbaatar) Presentation, April 2011

April 7, Aspire Mining Limited (ASX:AKM) --

Link to presentation

 

<Mogi & Friends Fund A/C>

3.4% MTD

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.

 

---

"Mogi" Munkhdul Badral

Executive Director

CPS International LLC

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Telephone/Fax: +976-11-321326

Mobile: +976-99996779

Email: mogi@cpsinternational.mn

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Suite 1213 · 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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