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Close: Mongolia Related ASX Listed Companies, April 18, 2010
Mineral law amendments put security, ecology before profit
April 18 (news.mn) A member of the working group that is preparing amendments to the law on mineral resources, MP D.Gankhuyag, has said that the group wants the amended law to focus on mine workers’ security and health first, then on protection to nature and ecology, and only thereafter on profit. The group has also discussed the role in mining of local authorities and concession claimants.
The new law should be adopted before April 30 when the deadline for suspension of granting mineral resources exploration and exploitation licenses ends. The working group is coordinating with the Office of the President and the Mineral Resources Authority to make this possible
NAR: POLL RESULTS OF ADJOURNED SPECIAL GENERAL MEETING
April 18, North Asia Resources Holdings Limited (HKG:0061) --
The Board is pleased to announce that at the Adjourned SGM held on 18 April 2011, the resolutions proposed at the Adjourned SGM approving the Supplemental Agreement and the Specific Mandate to allot and issue all the US$30M CB Conversion Shares have been duly passed by the Shareholders by way of poll.
GMM: March 2011 Quarterly Report
April 18, General Mining Corporation Limited (ASX:GMM) --
• Preparations underway for deep potash exploratory drilling at the Uvs project in Mongolia
• RC drilling at iron ore and manganese exploration targets at the Shoemaker project in Western Australia to start in mid May
• Share placement to institutional and sophisticated investors raises A$1.2M to accelerate potash and manganese / iron ore exploration
Uvs Basin Project
(Potash; lithium & potassium brines exploration - GMM 100%)
The project comprises 5 granted exploration licences covering more than 2,000 km2 within the Uvs Nuur Basin (Figure 1) that is considered prospective for bedded and domal (salt diapir) potash deposits as well as for lithium and potassium brines.
Some rock salt, soda ash & gypsum deposits and base metal occurrences have been discovered within the Uvs Basin (Figure 2), and limited drilling at the northern periphery of the basin in the 1950-60s intersected shallow potash mineralisation in up to 600 m thick Devonian evaporates. These drilling results from the Russian part of the Uvs Nuur Basin confirm the prospectivity for solid potash and/or potassium brine deposits.
During the 2011 field season, the Company plans to drill from 3 to 5 potash exploratory holes to an average depth of 1,000 m targeting bedded potash as a primary exploration target as well as lithium brines.
Negotiations with drilling contractors are currently underway and the Company will advise the market as soon as the contract has been executed. In parallel, the Company is obtaining all necessary approvals to start this drilling program without delays.
Planning is also underway to continue exploration at the Company’s Khangai Project during the 2011 field season and to follow up on some known copper and nickel occurrences as well as to investigate gold and lithium brine potential at the Company’s tenements.
(Iron ore & manganese exploration - GMM 50% & earning up to 80% from Galaxy Resources Limited)
PAVED ROAD TO BE RUN WITHIN GOBI ROAD PROJECT
April 18, Ulaanbaatar, Mongolia, /MONTSAME/ The Energy Resource company has been implementing the Gobi Road Project to construct a 245 km-long asphalt paved road from Ukhaa Khudag to Gashuun Sukhait within a short period of time, and plans to complete the road by the second half of 2011.
MCA-M, Road Project had a meeting with Gobi Road Project of Energy Resource LLC to learn its experience. The latter has given comprehensive information on how the project is managed, resettlement and water supply, delivery of materials and equipment, selection procedure of construction contractor issues are solved, as well on undertaking monitoring and supervision actions.
In turn, the MCA-M, Road Project has spoken about a progress of its main activities.
MONGOLIANS LEARN ABOUT HONG KONG STOCK EXHCANGE
April 18, Ulaanbaatar, Mongolia /MONTSAME/ A “Selling securities at Hong Kong stock exchange” conference was run by Mongolia's Foreign investment and Foreign trade agency (FIFTA) together with Hong Kong's “Sentinel group” April 14 and a “International financial statement standards” training on April 15 by KPMG company from of Hong Kong in UB city.
The training has attracted all levels' officials, brokers and dealers to teach how to adhere to the standards of international financial statement and documents in Mongolia. It was led by a director of the KPMG company, Mrs. Randle Judy.
At the “Selling securities at Hong Kong stock exchange” conference the gathered 200 organizations and entities' people have learnt about securities market at Hong Kong stock exchange, how to get listed and then to sell securities at this stock exchange, what the requirements are. Present there were authorities of Hong Kong stock exchange, Macquarie Capital Advisers company, New York Mellon bank, KPMG company and other who gave reports.
Master plan to introduce single window for foreign trade
April 18 (news.mn) Delegates from Ministries and Agencies that work in foreign trade, exporters, importers, transportation operators, banks, and insurance providers attended a meeting with representatives of foreign partners to discuss a master plan on how to set up a single-window service to facilitate all work related to foreign trade of Mongolia on Friday at the Ministry of Foreign Affairs and Trade.
The foreign partners included the UN Economic and Social Commission for Asia and the Pacific, The Swiss Agency for Development and Cooperation, the World Bank, the Asian Development Bank, JICA, the Japanese Embassy, and KOIKA.
The meeting discussed how the single-window service would benefit importers and exporters, by reducing the role of state officials in business, by helping find partners, and save time.
Mongolia's Uranium Boom
April 18 (WPR) In March, a few international media outlets quietly reported that Mongolia and the U.S. had been holding informal discussions on a proposal that would have Mongolia . The arrangement would allow South Korea and Taiwan, which the U.S. , to dispose of their spent fuel, resolving what has become an increasingly thorny problem for the U.S.
News of the story spread quickly in the Mongolian press, and public opinion came out decidedly against the proposal. The Japanese nuclear crisis in Fukushima has compounded opposition in Mongolia to nuclear energy. Whether popular concerns are realistic or not is irrelevant to most Mongolians.
The Mongolian Foreign Ministry officially denied the reports of the talks over the spent fuel depository, claiming that it was inconsistent with the country's laws "prohibiting the import of dangerous waste to Mongolian territory." However, while the Mongolian government remains publicly adamant that it will reject such a depository, it has demonstrated its diplomatic savvy by approaching the issue as a legal constraint rather than a strategic decision. By framing the discussion around legal principles, the government of President Tsakhiagiin Elbegdorj has avoided disappointing its emerging strategic partners in Washington and Moscow.
The Elbegdorj administration also made sure not to let its repudiation of the proposal cast any doubt on its interest in the continued growth of its uranium exports. Mining is Mongolia's Dornod province, in the easternmost region of Mongolia. Despite its isolation from the capital, Dornod's population has boomed as a result of economic opportunities attached to the mine. There are now several daily flights between the national capital, Ulan Bator, and Dornod's capital, Choibalsan, to accommodate investors and workers. , accounting for nearly half its outgoing trade. While its most heralded industries are coal, copper and gold, Mongolia also has a substantial investment and industrial vision attached to uranium exploration. The country's most important uranium mine is located in
Uranium exploration is not a recent development in Mongolia. After the conclusion of World War II, the Soviet Union carried out geological studies to determine and identify regions for uranium extraction. The context of the Cold War and the nuclear arms race contributed to drive the hunt for uranium in Mongolia. Subsequent tests in the 1960s and 1970s identified four provinces in northern Mongolia, including Dornod, as having potential for future mining production. Ironically, it was not until 1989, with the Soviet Union in its final days, that uranium production began in Dornod. It is estimated that Russia has spent more than $500 million on developing Mongolia's uranium infrastructure since its early involvement after World War II.
In mid-2009, the Russian-Mongolian partnership was codified when both governments signed a high-level agreement to cooperate in identifying and developing Mongolia's uranium resources, with special reference to Dornod. Russia's state nuclear energy corporation, Rosatom, continues to maintain an exclusive and cozy relationship with the Mongolian Nuclear Energy Agency (MNEA), despite the efforts and presence in the country of international suitors such as Canada, France, Japan, South Korea and China.
In addition to MNEA, Mongolian state-owned uranium corporation Monatom LLC maintains a big stake in the country's nuclear future and continues to express interest in finding global business partners and investors. Nevertheless, further strengthening Moscow's hand is its friendly posture toward Mongolia's declared intention to construct its first nuclear reactor by 2020. Despite this, Rosatom will have to compete with international companies such as French nuclear giant Areva, which recently signed an agreement authorizing it to explore and mine uranium in Mongolia. South Korea has also demonstrated an interest in Mongolia's nuclear industry, as evidenced by a memorandum of understanding on peaceful uses of nuclear energy, inked March 25.
Mongolia's geostrategic location has prompted some observers to suggest that it might be interested in developing a nuclear weapons program or in housing strategic warheads of allied nations. However, this scenario seems highly unlikely considering that Mongolia has little capacity or desire to project force outside of its borders. Mongolia unilaterally declared its territory a nuclear-weapons-free zone in 1992, 14 years before the five Central Asian post-Soviet republics -- Kyrgyzstan, Uzbekistan, Turkmenistan, Tajikistan and Kazakhstan -- followed suit by formally declaring their territories a nuclear-weapons-free zone in 2006. The treaty formalizing the Central Asian Nuclear-Weapons-Free Zone was ratified in May 2009. While Mongolia has yet to institutionalize its zone, it is clear that it intends to remain outside the nuclear fray.
Mongolia is also a strong proponent of the nonproliferation regime as a state party to the Nuclear Non-Proliferation Treaty. Furthermore, the Additional Protocol to its safeguards agreement with International Atomic Energy Agency (IAEA) -- ensuring more-robust verification standards -- has been in force since 2003. The Additional Protocol will also help to ensure that the construction of any nuclear reactors in Mongolia is consistent with IAEA standards for safety and monitoring.
Through continued coordination with the IAEA and respected international investors, Mongolia can successfully continue its march toward nuclear power. While the recent events in Japan are sure to shape public opinion, this is unlikely to change the Elbegdorj administration's calculus that nuclear energy will enhance Mongolia's economic and energy security in the future. Moreover, debate surrounding Mongolia's willingness to house spent fuel remains a peripheral issue in the context of its greater strategic vision on nuclear energy. Attracting international investment in its nuclear sector will continue to be a priority for Ulan Bator as it seeks to exploit its substantial uranium reserves.
Emerging Markets Law Firm to Open Mongolia Office to Respond to Rapid Growth
As Mongolia emerges as one of the fastest growing markets, Rosenblatt & Company is strategically adding Ulaanbaator to its network of emerging economy offices, complementing its practice in Emerging Europe, Central Asia and the Middle East.
PRLog (Press Release) – Apr 12, 2011 – New York, USA – 5 April 2011 – No longer known simply for its unique history and tourism, Mongolia is quickly becoming a magnet for new investment with its strategic location to Kazakhstan, Russia and China, substantial natural resources reserves, and market reforms that puts it at number 73 on Word Bank’s Doing Business report, ahead of Greece, Vietnam, Egypt and China. In reaction to the rapid need, Rosenblatt & Company has launched an office in Ulaanbaator as of 1 April 2011.
“We are pleased to announce our alliance with the respected Zata Law Firm, and look forward to assisting clients in our expanding cross-border transactional practice, with a focus on emerging markets.” said Phillip Rosenblatt, Managing Partner. “The addition of Batbileg and Yesudei, leading Mongolian practitioners, to our team, will help us provide top-notch integrated international advice to key foreign and Mongolian investors on in-bound and out-bound transactions.”
The alliance will help to meet the expanding needs of the natural resources, finance and capital markets sectors. Additionally, as manufacturing and services sectors are expected to grow, the Mongolian partners look to benefit from Rosenblatt & Company’s long-term expertise in markets such as Turkey and Emerging Europe, Egypt and the Middle East and Kazakhstan and Central Asia.
“The alliance will enable us to handle the growing demand for quality international legal advice and extend our ability to serve multinational clients as they expand into our markets,” said Yesudei Erdene.
Batbileg Sukhbaatar adds, “As one of the fastest-growing markets, Mongolia will experience some of the growth and challenges that our colleagues have experienced in other international markets, and our clients will benefit from the integrated support of local and international excellence.”
The team will work closely with Rosenblatt & Company lawyers in Kazakhstan, Turkey, and its international network to provide the full range of the Firm’s expertise in strategic investment, finance and infrastructure.
Ludmila Lobikova, Senior Lawyer at Rosenblatt & Company’s Almaty office adds “Mongolia will pay an important role as a magnet for new investments. It is clear to us that this dynamic market, with its proximity to Russia, China and Kazakhstan will develop into a leading player as it develops its wealth of natural resources. We are proud to be actively supporting continued development and growth of Mongolia in this important time.”
For further information or to arrange an interview with the partners involved in the alliance, please contact:
Phillip Rosenblatt +7 727 355 900, or the Mongolia office at email@example.com.
About the Firm: Rosenblatt & Company is an international law firm with a cross border emerging market practice and a focus on Turkey and Emerging Europe, Egypt and the Middle East and Kazakhstan and Central Asia. With associated and affiliated lawyers throughout these emerging markets, Rosenblatt & Company provides some of the world's leading companies and financial institutions with responsive, clear advice and support for their cross-border projects and investments.
Rosenblatt & Company’s lawyers are fluent in English, Russian, Turkish, Arabic, German, French, and now, Mongolian.
The Mongolian office will operate in cooperation with Zata Law Firm, Rosenblatt & Company’s well-respected alliance Mongolian law firm, headed by Batbileg Sukhbaatar and Yesudei Erdene. Its lawyers are fluent in Mongolian, English and Russian.
Hungary: Ministry of Rural Development signs agreement with Mongolia
April 18 (MTI) Hungary's Ministry of Rural Development and Mongolia's Ministry for Food, Agriculture and Light Industry have signed an agreement to cooperate in the areas of agricultural technology, trade, training and science, Hungary's government portal kormany.hu said.
The site reported that the document was signed by state secretaries Endre Kardeván of Hungary and Gantulga Tudevkhuu of Mongolia.
According to the agreement, Hungary will help Mongolia set up cattle farms, drought-resistant grain fields, irrigation systems and develop new methods of forestry management on harsh terrain.
Inner Mongolia to Speed Up Coal Mining Industry Restructuring
April 15 (Business China) China’s Inner Mongolia provincial government is accelerating the restructuring of its coal mining sector as part of plans to create several coal mining carriers with a combined annual production capacity of hundreds of million of tons.
The local government is continuing its reform of the sector that kicked off five years ago. It has reduced the total number of coalmines in the province from 1,378 in 2005 to 598 by the end of 2010, it said in a briefing submitted to the central government earlier this week.
Production capacity per mine in the province has been raised from 140,000 tons in 2005 to 1.4 million tons, as the provincial government continues to close small- and outdated coalmines in the province, it said.
All coalmines with an annual output capacity of less than 300,000 tons have been shut down in the province, according to the briefing.
A source from the provincial government told the 21st Century Business Herald that the previous restructuring had focused on closing small and outdated coalmines, and the provincial government will continue its restructuring in the next five years by focusing on consolidating and merging coalmine resources in the region.
According to a coal industry strategic guideline document recently released by Inner Mongolia government, the government aims to cut the numbers of coalmines in the province to between 80 to 100 by 2013 and to form one or two large-scale coal miners with annual production capacity of 100 million tons each.
"In the next phase of restructuring, the provincial government will focus on building large-scale coal mining companies in the region. If the restructuring goes smoothly, the framework of Inner Mongolia’s coal mining sector will be finalized and there won’t be anymore significant change in the future,” said Lin Boqiang, director of China Center for Energy Economics Research under Xiamen University.
A source in the Inner Mongolia Development and Reform Commission said a list of companies had been selected as the main platform for the restructuring, and the merger and acquisitions are expected to kick off by second half of 2011.
But industry watchers expressed concerns that Inner Mongolia’s coal reform will not be an easy task.
“Unlike Shanxi province, where most of the resources are controlled by provincial state-owned companies, Inner Mongolia’s coal resources are mostly held by centrally administered state-owned companies and private companies. It will be extremely challenging for Inner Mongolia’s government to balance their interests during the restructuring,” said an industry source who preferred to remain unnamed.
HKEx's Allure, and Some Quirks, for Resource Firms
April 18 (WSJ) Resource companies are flocking to Hong Kong to raise capital. Are they coming to the right place?
The biggest and latest example is Swiss commodities giant Glencore International AG, which last week confirmed it would raise as much as $11 billion in a dual listing of its shares on the London and Hong Kong stock exchanges. Others looking to list in Hong Kong include China's Inner Mongolia Yitai Coal Co., South Africa's LontohCoal Ltd., Kazakhstan copper miner Kazakhmys PLC and Chinese iron-ore miner Newton Resources Ltd.
One large deal Hong Kong would gladly add to its trophy wall is the IPO of the world's largest coking-coal deposit in Mongolia, due in late 2011 or early 2012. The Mongolian government is expected to announce the listing venue for state-owned Erdenes-Tavan Tolgoi Co., which controls a giant coal deposit in the South Gobi desert, in the coming months and Hong Kong Exchanges & Clearing Ltd. is a leading candidate.
HKEx, as it's known, is keen to attract resource companies away from other venues and increase its own earnings from new listings. It's already a powerhouse in initial public offerings: It attracted more of them than any other market last year for a second year running.
The drive for resource-related business has become a theme in consolidation of the global exchange industry. Part of the rationale behind Singapore Exchange Ltd.'s 8.4 billion Australian dollar (US$8.88 billion) bid for Australia's ASX Ltd. was to make itself more attractive to mining companies of the kind that dominate Australia's market. Australian regulators dashed Singapore's aspirations when they ruled recently the purchase was against their nation's interest.
London Stock Exchange Group PLC, already the primary listing choice for many resource companies, is looking to convince miners they will benefit from the extra liquidity if it succeeds in taking over Toronto Stock Exchange owner TMX Group Inc., another market popular with the minerals and metals sector.
Resource companies haven't traditionally thronged to HKEx, but the exchange is actively trying to change that. Last June, it changed its listing rules to make it easier for mining companies to raise capital for discoveries they have already made. A total of 82 metal and mining companies are listed in Hong Kong, with a collective market capitalization of US$122 billion, the exchange said.
"This is one of the major focuses for this year," said Eric Landheer, head of issuer marketing for HKEx. He has gone on roadshows promoting Hong Kong in Canada, Australia, Indonesia, Europe, Japan, Mongolia, Russia, Taiwan, Kazakhstan and the U.S.
Weighing in Hong Kong's favor is its appeal for commodities companies as a gateway to China, a dominant global consumer of energy, minerals, metals and foodstuffs.
"We're seeing a lot of portfolio managers coming here to be closer to the demand side of the equation, which is China," Mr. Landheer said, noting for example that China now accounts for 50% of global iron-ore demand.
He points to the success of the October 2010 listing of Mongolian Mining Corp., which produces coal used in steel production, that raised HK$5.8 billion (US$746 million). The stock has risen 35% since then.
Even debt-laden Russian aluminum maker United Co. Rusal PLC, which initially dropped in value after its listing in January 2010, has since risen more than 30% from its IPO price. Mr. Landheer notes that although Rusal shares also trade in Paris, Hong Kong accounts for 91% of volume.
Not all of the Hong Kong exchange's customers are happy. G-Resources Group Ltd., a Hong Kong-listed gold-mining company that owns the Martabe gold and silver mine in Indonesia's Sumatra island, believes it is undervalued.
"We're slaving away as the pioneers," says company Chief Executive Owen Hegarty. "We're taking the bullets for the rest."
It estimates its cash flow from Martabe will be $300 million a year once production starts, based on current gold prices. That means the company is now trading at roughly three times earnings—about half of what a company in a comparable stage of development would trade in Toronto, London or Australia, where investors are more familiar with how to value mining companies, Mr. Hegarty says.
Bankers note that Hong Kong retail investors generally know little about exploration companies and don't know how to analyze them. Some 35% of Hong Kong's stock market investors are retail investors, compared with only 10% in the U.S. market. In mainland China, the reverse is true: Only 10% are professional institutional investors.
"There are some quirks in listing rules how reserves and resources are characterized, and Hong Kong investors are not as familiar with resource stocks as say investors in Toronto, Johannesburg or London have been," said Andrew Michelmore, chief executive of Minmetals Resources Ltd., the Hong Kong-listed arm of a Chinese state-owned mining and metals company. "But in the long run we have a very robust view of Hong Kong in the global market. It won't happen overnight by waving a magic wand. People will get frustrated, but longer term we can see a very attractive market."
Patrick Loftus-Hills, co-head of UBS's Asia Industrials Group, which includes coverage of natural-resource companies, says once companies start selling what they mine—and the cash starts rolling in—Hong Kong-listed companies actually do better than their peers elsewhere.
"There are many, many companies that desire a Hong Kong listing," he said."
Speaker attends opening ceremony of US Congressional group for Mongolia
April 15 (news.mn) A Parliamentary delegation led by Speaker D.Demberel attended the inauguration of a new US Congressional group to support Mongolia on April 12. They were in Washington on their way to the 124th conference of the Inter-Parliamentary Union, which is being held in Panama between April 15 and 20.
Among those who attended the ceremony were Senator John McCain, Congressmen Joe Pitts, Jim McDermott, J.Reberg, and representatives of think-tanks, state organizations and NGOs. Speakers stressed how cooperation between legislators could help strengthen bilateral relations. Demberel thanked the USA for its support and help to Mongolia since the beginning of its road to democracy.
<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
P Please consider the environment before printing a copy of this email.
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 firstname.lastname@example.org or +976-99996779.
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.