Friday, April 8, 2011

[cpsinewswire] [CPSI NewsWire: SPC and LSE Sign Master Service Agreement]

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 or +976-99996779.

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Close: Mongolia Related ASX Listed Companies, April 7, 2010



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SPC and LSE sign Master Service Agreement

April 7 ( The State Property Committee (SPC) of Mongolia and the London Stock Exchange (LSE) signed the Master Service Agreement soon after midday today at the Mongolian Stock Exchange building. Prime Minister S.Batbold was present at the ceremony and said in his opening remarks that the development of the Mongolian capital market would be of great significance for the economy and expected the MSE-LSE cooperation to contribute substantially to this. Among others present were Deputy Minister for Finance Ch.Gankhuyag, and MSE Acting CEO Kh.Altai.

Its head, D.Sugar, signed for the SPC, while the LSE was represented by its CEO, Xavier Rolet. Both were confident the partnership would be smooth and productive. The work covered by the agreement includes developing a legal frame for the Mongolian capital market to work in, setting up Millennium IT technology, and to training staff. 

An official of the LSE will be appointed Executive Director of the MSE, but management of the MSE has vested on the LSE with the signing of the agreement.

Link to article


Citizens likely to get a preference share in Erdenes MGL

April 7 ( Yesterday’s weekly Government meeting agreed in principle to a suggestion made by the State Property Committee to issue to all citizens one preference share of Erdenes MGL LLC but a final decision will be taken only after further discussion at the next meeting. 

If the decision is taken, citizens would hold 536 common shares in Erdenes Tavantolgoi LLC and one preference share in Erdenes MGL. Children born after April 1, 2011 would also be eligible for the preference shares. 

A preference share is capital stock which provides a specific dividend that is paid before any dividends are paid to common share holders, and which takes precedence over common share in the event of liquidation. The SPC plans to issue 3 million preference shares for Mongolians, to cover the existing population and new births up to a cut off date. 

Link to article



April 7, Ulaanbaatar, Mongolia, /MONTSAME/  A representation to partake in meetings of the holders of 10 per cent shares of the  "Erdenes Tavan tolgoi" company and to be on its Representative Board will temporarily be independent members of this Board.

They will acting until the "Erdenes Tavan tolgoi" has been registered as international company. This proposal was accepted at the cabinet meeting on Wednesday.  

A head of the State Property Committee has been obliged to draw up a rule of selecting these independent members and to make a related decision. 

Link to article



April 7, Ulaanbaatar, Mongolia /MONTSAME/ According to the first resolution of three-sided national committee of labour social agreement on April 5, a minimum size salary has reached 140 thousand 400 togrog

Before this 30-percent rise the salary stood at 108 thousand togrog. The decision was made at the cabinet meeting on Wednesday. 

The Minister of social welfare and labour, T. Gandi said this change will not somehow influence other salaries, insurance, pensions, benefits. A one third rise was made in salaries of state servants October 1, 2010. 

When adding the minimum salary, the parties considered social partnership issues, survey, clauses of laws, consumer price index, economic growth, labour output, average salary, changes in cost of living.  

Link to article



April 7, Ulaanbaatar, Mongolia, /MONTSAME/ A Minister of Road, Transportation, Construction and Urban Development Kh.Battulga has introduced the cabinet to a course of the project on constructing a railway in route Dalanzadgad-Tavan tolgoi-Sainshand-Choibalsan

In accordance with the governmental resolution, the "Mongolian railway" state-owned stock company has been granted a special license to construct a basic structure of the railway in the route. The Minister has said related measures are being taken for determining the railway lines and size, set up a professional group for conducting engineering, geology, geodesy and environment detailed research, solve financial resources needed for running the basic structure of the new railway and drawing up technical and economic justification and design. 

Other steps are taken to select an advisory company and to ensure a preparation for establishing a consortium with participation of foreign and domestic investors. 

Link to article


Russia sends less diesel than ordered

April 7 ( Rosneft LLC has supplied only 35 tons of diesel or half what Mongolia asked for, following a Russian decision to restrict fuel export. If this continues, there could be a shortage of diesel in the country as 92% of Mongolia’s fuel import is from Russia. 

The Deputy Chief of the Petroleum Authority, Ts.Amraa, has said that Russia exported 12 tons of AI92 in April while the order was for 18 tons.

Link to article


New Executive Director of State Bank appointed

April 7 ( J. Otgonbileg, presently Director of Sales, has been appointed Executive Director of the State Bank on expiry of the term of contract of the incumbent. Otgonbileg had earlier worked for the Mongol Bank as an auditor and then a senior auditor, and had also taught at the Institute of Finance and Economy. He was also head of Loan Policy and Regulation in Mongol Post Bank and Executive Director in JN Motors LLC.

The State Bank has been under the joint management of the Government and the European Bank for Reconstruction and Development since 2009.

Link to article


Oyu Tolgoi May Start Earlier Than Planned, Executive Says

April 7 (Bloomberg) -- The Oyu Tolgoi copper and gold project operated by Rio Tinto Group and Ivanhoe Mines Ltd., together with the Mongolian government, is likely to start operations earlier than expected, an executive said.

The project, one of the largest untapped sources of copper and gold globally, according to Ivanhoe, will be on line from August 2012, Temuulen Ganzorig, deputy director of Erdenes MGL LLC

, Mongolia’s state-controlled mining company, said in Singapore today. Oyu Tolgoi was due to start before the end of 2012.

The timetable is a bit earlier than expected due to expedited construction,” Ganzorig said at the Asian Mining Congress. Erdenes, which represents the nation’s 34 percent interest in Oyu Tolgoi, is in talks with Rio and Ivanhoe on project financing, he said.

Ivanhoe Mines Chief Executive Officer Robert Friedland said last month that “large elements” of Oyu Tolgoi are ahead of schedule, though it did not mean the whole development would be. The budget for the project is close to $2.5 billion this year and the workers at the site will rise to 18,000 by June, Friedland told a Hong Kong conference.

Oyu Tolgoi holds estimated resources of 37 million metric tons of copper and 1,300 tons of gold, allowing the mine to operate for almost 60 years, Rio said in December. Mongolian President Tsakhiagiin Elbegdorj said in 2009 that the project may operate for 30 years and generate $30 billion to $50 billion of revenue.

Oyu Tolgoi, which means “turquoise hill” in Mongolian, lies about 80 kilometers (50 miles) north of the Chinese border. The mine will produce an average 1.2 billion pounds of copper and 650,000 ounces of gold a year for the first decade, according to Ivanhoe.

Link to article


Mongolia eyes first nuclear power plant by 2020-MonAtom

* Mongolia sees foreign investment in nuclear energy sector to "be huge"

* MonAtom sees Japan nuclear crisis impact on industry short-term

SINGAPORE, April 7 (Reuters) - Mongolia plans to have its first nuclear power plant by 2020 and build nuclear fuel production capacity by tapping the country's rich uranium resources, undeterred by the recent nuclear crisis in Japan, a senior official at the state-owned MonAtom LLC said on Thursday

Japan's nuclear crisis is not seen to have a lasting impact on the global nuclear industry, said Tsogtsaikhan Gombo, deputy chairman of MonAtom, which represents the government in mining and developing the country's uranium resources.

"We don't think it's a big problem for the industry as a whole. It's a little bit of set-back in time frame, but as a whole it will go on," said .

"We want green development and nuclear is the number one choice."

Mongolia has proven uranium reserves of about 80,000 tonnes, ranking it among the top ten in the world, and putting it on the map of mining giants, which have been attracted by world-class deposits such as the massive Oyu Tolgoi copper-gold project. [ID:nL3E7F70A3]

"We have the ambition to build the capability of nuclear energy in Mongolia, and the ambition to supply nuclear power plants in Northeast Asia with nuclear fuel," Gombo told reporters on the sidelines of a mining conference in Singapore.


Gombo said the country is seeking investment from around the globe to develop its nuclear energy sector, adding that uranium reserves in the country could rise to above one million tonnes.

"Currently there is not much, but we expect there will be huge investment in Mongolia's nuclear energy sector, because the super powers are interested," said Gombo, adding that the United States, Russia and China are competing with each other to get into the country's nuclear sector.

But for the country sandwiched between Russia and China, choosing business partners is a delicate task, Gombo said.

"The government is quite selective, and is opting to cooperate with the most developed countries in the industry, like the United States, Japan and France," he said.

"I wouldn't say we don't want them (China and Russia), but we want a balance of interest."

Last October, Mongolia and France's governments signed an agreement to let France's Areva (CEPFi.PA) to explore and mine uranium in Mongolia, Areva said on its website (

Link to article


Mongolia Nuclear Push to Take Cue From World Sentiment

April 7 (Bloomberg) -- Mongolia will take its cue from the global reaction to Japan’s nuclear disaster before continuing with plans to build atomic power plants, according to the deputy chairman of state-owned nuclear company Monatom.

It will depend on how the world community reacts” to the accident at the Fukushima Dai-Ichi nuclear station that occurred last month, Tsogtsaikhan Gombo said in an interview in Singapore. “We don’t think it’s a big problem for the industry as a whole. It may be a little set back in the timeframe.”

Mongolia, which has at least 1 percent of the world’s uranium resources, was planning to start operating its first nuclear power plant by 2020 and build a nuclear fuel center, Gombo said. Russia’s Rosatom Corp. last year set up a venture with Monatom to mine uranium, used to make nuclear fuel, at the Asian nation’s Dornod deposit. Rosatom agreed also to help Mongolia develop its nuclear industry strategy.

Almost a month after the March 11 earthquake and tsunami knocked out backup generators at Tokyo Electric Power Co.’s Fukushima plant, workers are still using emergency equipment to try to cool the reactors and plug radiation leaks. China, India, the U.K. and Germany have said they plan to review further development of domestic nuclear industries.

Japan’s situation is unlikely to damp interest in Mongolian uranium deposits or stop the nation from working with Japanese nuclear companies, Gombo said.

Currently there is not much foreign investment in the uranium sector, but we expect there would be huge investments because the superpowers -- U.S, Russia and China -- are all interested and competing with each other,” Gombo said.

Mongolia would favor developing its nuclear industry together with the U.S., France and Japan, as opposed to its two neighbors Russia and China to “balance” its interests, Gombo said. China accounts for about 80 percent of Mongolia’s imports and exports.

Link to article


MMC CEO Interview: Challenges for Mongolian miners

April 7 (BBC) In an attempt to raise capital for expansion the Mongolian Mining Corporation has gone public and is now listed on the Hong Kong stock exchange.

Rico Hizon caught up with chief executive Battsengel Gotov and asked him what challenges are facing the Mongolia's mining industry.

Link to video


GTSO Initiates Talks to Acquire Rare Earth Exporters of Mongolia

A Successful Acquisition Could Prove to be a Very Lucrative Opportunity

SAN JOSE, Calif.--(EON: Enhanced Online News)--Green Technology Solutions Inc. (OTCQB: GTSO) today announced that it is in talks to acquire Rare Earth Exporters of Mongolia (REE). The two companies formed a joint venture in February to procure and develop rare earth mining claims and operations inside the developing Asian nation.

This acquisition is being pursued because we expect to break ground on several new mining projects in Mongolia very soon,” said GTSO President and CEO John Shearer. “In large part due to the actions of China, the market dynamics of the global rare earths industry are poised to produce explosive returns in the coming months and years. Making REE a wholly owned subsidiary of GTSO is a potentially lucrative opportunity that we are thrilled to be exploring.”

GTSO and REE are currently finishing up their due diligence toward the acquisition of mining rights to four mineral-rich sites in Mongolia. If GTSO’s purchase of REE is successful, Green Technology Solutions would own the sole rights to those properties. The company announced earlier this month that it expects to make its first shipment of rare earth ores from Mongolia to the international seaport of Vladivostok, Russia, in May.

The response we’ve gotten from around the world to our efforts in Mongolia have convinced us that there is great and growing demand for these exports,” Shearer said. “GTSO’s potential acquisition of REE could make our development of new mining operations there a tremendously profitable endeavor for Green Technology Solutions.”

Link to release


Electricity likely to cost more from May 1

April 7 ( A formal announcement is yet to be made but it is almost certain that the Energy Regulation Board will go ahead with its previously declared intention to raise electricity price in Ulaanbaatar from May 1, charging MNT110 for a unit instead of the present MNT79. The board has mentioned two basic compulsions behind its decision. 

First, equipment needs a near total overhaul and this is expensive. Almost all equipment in the transmission network for the central region was installed between 1960 and 1980, and cannot any longer meet the needs of the vastly increased present demand. Money must be found for maintenance, repair and upgrading.

Second, MNT264.5 million is the share of the central region network of the total interest now due on foreign soft loans used for several projects and programs. The Ministry of Finance has also determined that power and heating companies in this region have to repay MNT928 million as part of what was borrowed from foreign organizations. This was to be paid in 2011 but the companies have been given another year.

Link to article


Projects under Concession Law advertised

April 6 ( May 11 is the deadline for responding to last month’s advertisements from the State Property Committee (SPC) for projects to be implemented under the concession law. These include an auto road project in Tavantolgoi-Khanbogd-Khangi, another in Nariinsukhait-Shiveesuren, a highway project in Ulaanbaatar and an airport at Khushigiin Khundii. All the projects will be of the build-exploit-transfer type. 

The selection process will be in two stages. In the first, four companies will be short-listed on the basis of their financial capacity, technological skill, and manpower resources. The final selection will consider the companies’ capacity to implement the project according to plan in and maintain the time schedule.

Link to article


What Mongolia Can Teach the Middle East

by Elbegdorj Tsakhia

The popular upheavals in Tunis, Cairo, and Tripoli gripped Ulaan Bator only a generation ago. Now it's our turn to help the Arab revolutions fulfill their potential.

April 6 (Foreign Policy) Perhaps no man has done more to change the face of the Middle East in the past 100 years than Mohamed Bouazizi. The Tunisian street vendor's ultimate act of defiance -- self-immolation in the face of continued humiliation and degradation -- has unleashed pent-up forces that are sweeping across North Africa and hold the potential for bringing freedom to tens of millions of people. As coalition forces act against the brutality of Libyan leader Col. Muammar al-Qaddafi and activists in countries such as Syria push bravely for political reform, the Middle East is ushering in a new age where the seeds of democracy can at last find fertile ground.

As the world watched the throngs of demonstrators in Tunisia and Egypt, I was gripped by the same feeling that swept Mongolia's Sukhbaatar Square two decades before. Back then, as one of the organizers of our democratic uprising against the communist-run government, I stood for days in the biting cold, freezing but exhilarated because the fear that our rulers instilled in us -- to bend us, and ultimately break us into subservience -- was gone. We were not backing down. There was no certainty that freedom would prevail, but in the end, it did.

To many foreign-policy "experts," especially so-called "realists," these Middle Eastern movements for political liberalization come as a complete surprise. They should not. What we are witnessing speaks to a primary human value granted to each of us, no matter the country: the desire for freedom and the urge to peacefully work to see one's values reflected in government. People deprived of this right will naturally seek it, fight for it, and if necessary, die for it.

Leaders should acknowledge this fact and unleash the tremendous potential of their countrymen through political liberalization. From this will flow greater education, greater economic benefits, and a better standard of living for all to enjoy. Democracies are inherently peaceful. A democratic process seeks solutions through dialogue and negotiation, not through violent acts or the use of force.

Some still fear change in the Middle East's status quo, but this skepticism is misplaced. The "jasmine" spirit should be embraced, and the international community should work within that process of change to plant and reinforce democratic values. As political pluralism takes root, the major losers will be radical elements, such as al Qaeda, who hold themselves up as vehicles for change through terror and violence.

In 1990, following the overthrow of Mongolia's Politburo, the democratic leaders of our country asked a simple question: What next? It was easy to be against something. Now, we had to move from activists to advocates. Frankly, that was when our most difficult work began. In the months that followed, we hammered out a new constitution that enshrined individual liberties, a democratic process, and an independent court system. Political and economic development went hand in hand. Since that time, Mongolia has experienced several peaceful transfers of political power, and today our GDP is primed to triple over the next decade thanks to our natural resources and the creativity of our people.

Egypt and Tunisia -- and hopefully other countries that emerge from democratic revolution -- will need much assistance. The corrupt, kleptocratic bureaucracies and repressive security forces that enforced the tyranny of their previous rulers must be radically overhauled. Laws must be adopted to protect the political gains that the people have fought to achieve. This is where countries such as Mongolia and others that have transitioned to democratic governance could help. Our customs and cultures might be different, but sharing advice from our successes as well as our failures can prove invaluable in helping those countries get back on their feet and start building a new era for their country. The Middle East's young democrats will also need constant encouragement. Expectations tend to run much higher than results, and democracy can be a very difficult, messy, and slow process.

The greatest change in the Middle East is within the mindset of the people. They have shed their fear, and therein lies an important lesson. Having lived under and fought against the tyranny of communism, there's one thing I know: There is no dictatorship, no military regime, and no authoritarian government that can stand against the collective will of a people who want to be free.

Link to article


Chile: mining engineers wanted (for OT)

April 6 (FT) Splashed over half a page of Sunday’s edition of Chilean newspaper El Mercurio was an advertisement attempting to entice Chilean mining engineers to Mongolia to work on Rio Tinto’s flagship Oyu Tolgoi project.

The timing couldn’t have been more appropriate: that day, several hundred bankers, traders and miners descended on Santiago for the largest annual gathering of the copper industry.

On the tightness of the copper market, the delegates disagree; on the tightness in the labour market, they are unanimous.

“I think the number one tightest area that I experience regularly is in the supply of talented, experienced mining industry professionals,” says Andrew Harding, head of Rio’s copper division.

Link to article


<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

Executive Director

CPS International LLC

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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 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.

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