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Close: Mongolia Related ASX Listed Companies, May 3, 2011 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.060 | 0.003 | 0.059 | 0.060 | 0.055 | 0.061 | 0.055 | 12,104,418 | |
1.520 | -0.045 | 1.485 | 1.520 | 1.520 | 1.520 | 1.475 | 883,305 | |
0.410 | -0.010 | 0.385 | 0.410 | 0.420 | 0.420 | 0.350 | 967,578 | |
0.740 | -0.100 | 0.740 | 0.745 | 0.805 | 0.810 | 0.725 | 2,719,684 | |
0.550 | 0.000 | 0.550 | 0.600 | 0.000 | 0.000 | 0.000 | 0 | |
0.016 | -0.002 | 0.016 | 0.017 | 0.018 | 0.019 | 0.016 | 6,504,030 | |
0.007 | 0.000 | 0.005 | 0.007 | 0.000 | 0.000 | 0.000 | 0 | |
0.049 | -0.006 | 0.049 | 0.051 | 0.055 | 0.055 | 0.049 | 8,958,362 | |
0.170 | -0.010 | 0.165 | 0.170 | 0.170 | 0.170 | 0.170 | 55,436 | |
1.110 | 0.010 | 1.100 | 1.110 | 1.090 | 1.130 | 1.090 | 634,157 | |
0.265 | 0.010 | 0.255 | 0.270 | 0.255 | 0.270 | 0.255 | 114,207 | |
0.480 | -0.020 | 0.480 | 0.500 | 0.500 | 0.500 | 0.465 | 92,598 | |
24.380 | 0.080 | 24.360 | 24.400 | 24.100 | 24.540 | 24.100 | 1,075,245 | |
82.110 | -0.610 | 82.100 | 82.110 | 82.000 | 82.200 | 81.540 | 1,966,272 | |
45.500 | -0.650 | 45.490 | 45.520 | 45.700 | 45.730 | 45.420 | 14,501,078 | |
Source: asx.com.au
Sharyn Gol JSC Announces Major Strategic Review
ULAANBAATAR, MONGOLIA--(Marketwire - Apr 29, 2011) -
Key points:
· Major strategic review announced today, including a review of existing operations and investigating potential for an accelerated production expansion to access new domestic, regional and seaborne export markets
· Major production expansion supported by the recent resource upgrade, to more than triple the pre-existing resources, with further exploration upside identified
· Planning underway for staged development of a large, long life, open cut and underground mining operation that will help transform Sharyn Gol JSC into a major international mining company
· Internationally recognized technical consultants have been engaged to complete Prefeasibility Study (PFS) level investigations for a staged expansion to 4-5 Mtpa run of mine (ROM) production over the medium term and 8-10 Mtpa ROM long term
The Directors of Sharyn Gol JSC are excited to be announcing today a major strategic review of the operations and direction of the company. Further to the release of Sharyn Gol JSC's JORC resources report on 28 February 2011, the Directors have recognized the potential for a significant production expansion and the opportunity to accelerate plans to access new domestic, regional and export markets. These efforts form part of a broader ongoing revitalization program seeking to stabilize, optimize, and expand the existing open cut coal mining operation.
Geology
Sharyn Gol JSC's total coal resource now stands at an estimated 374 Mt thermal coal, more than triple the pre-existing (non-JORC) resource. Of the total resource, +90% or 338 Mt is at less than 300m depth, split between the South West Area (30% of the total resource) and the newly identified Satellite Area (70%). The Satellite Area (maiden resource statement) lies immediately adjacent to the existing rail infrastructure. Furthermore the resource has been estimated with a high level of confidence, with over 67% of the < 300m depth resource; categorized as Measured and Indicated (252 Mt). The resource indicates the potential for a very large, long life, open cut and underground mining operation with a range of expansion options.
The company is now formulating a further drilling program designed to better define the current resources (drilling, seismic, coal quality, geotechnical) and to delineate additional resources within four identified exploration target areas, including:
· oxidized sub-cropping coal (~50 Mt, suitable for domestic market);
· underground resources in the South West Area targeting the 3-4m Velikan seam;
· resources in the low wall of the (existing) South West Area open pit; and
· the 'Corridor Area' between the South West Area and the Satellite Area
Mining
Conceptual planning by the company has now identified the following expansion increments:
(i) Stage 1 - expand production from the current 0.5 Mtpa Run-of-Mine (ROM) to 1 Mtpa ROM via optimization of the existing mining practices and better deployment of the currently underutilized mining fleet in the existing pit (South West Area).
(ii) Stage 2 - expands from 1 to 2.5 Mtpa ROM from the existing open cut/South West Area and developing the new very low strip ratio Satellite Area open cut. Importantly, Sharyn Gol has historically produced 2.5 Mtpa ROM, such that minimal capital expenditure will be required on infrastructure to achieve this mining rate. Sharyn Gol is investigating contract mining to further reduce the initial capital requirement.
(iii) Stage 3 - expansion to 5-6 Mtpa ROM over the medium term, accessing open cut and underground resources.
(iv) Stage 4 - expansion to 8-10 Mtpa ROM over the long-term, assuming further resource upgrades and expansion to the rail infrastructure.
Sharyn Gol JSC has engaged a suite of internationally recognized Australian consultancy firms to investigate the potential for a staged expansion, including:
· Mining planning - Engineering contractor to estimate capital and operating costs for the optimization of the South West Area and developing the new low strip ratio Satellite Area open cut.
· Coal quality - Investigate the potential for a low cost and relatively simple 'two stage' coal wash plant that can produce < 15% ash thermal coal suitable for regional (China and Russia) and the North Asian seaborne export markets (South Korea, Japan, Taiwan, south coast China). Investigate potential for a PCI coal product.
· Coal marketing - Assess the potential for product coal capable of meeting the requirements of the rapidly expanding domestic and international thermal coal markets.
· Rail infrastructure - Identify a low cost (refurbishment) capital requirement to re-instate the 2.5 Mtpa capacity on the company's dedicated 65Km rail spur. Identify capital requirement to meet medium and long term expansion targets.
Export Infrastructure & Markets
The Directors of Sharyn Gol acknowledge a number of recent announcements that highlight the potential for the company to realize its strategy for accessing new markets through either Russia or China:
· The launch of rail freight services from Mongolia to Russian Far East ports facilitating access to the premium North Asian thermal coal market that commenced in October 2010.
· Russian Railway agreement on a 52% discount on the freight tariff for Mongolia coal travelling through the Russian Federation (Nov 8 2010: http://eng.rzd.ru/isvp/public/rzdeng?STRUCTURE_ID=4092&layer_id=4839&refererLayerId=4530&id=105584)
· Shenhua announcement concerning a $1.5Bn investment for a coal power plant and coal processing facility at Ganqimaodu, Inner Mongolia (22 January 2011: http://asian-power.com/project/more-news/shenhua-group-constructs-coal-power-plant-in-mongolia)
Importantly, the company's dedicated 65 Km spur line is already connected to the Trans Mongolian Railway, which in turn connects the mine north to Russia (179 Km to the border) and south to Zamyn Uud at the Chinese border (1,047 Km). The Directors are investigating the potential of these developments to facilitate immediate and cost effective pathways to access higher margin domestic, regional, and seaborne coal markets.
Finance
The board of Sharyn Gol is currently evaluating a range of strategic alliances, with the primary objective being to accelerate growth and recognize the full potential of Sharyn Gol. Options under consideration include a secondary listing on an international stock exchange, and attracting investment at the asset and/or corporate levels from a reputable international coal mining entity.
The Directors of Sharyn Gol plan to provide the market with further announcements concerning these PFS and finance initiatives as the key milestones are achieved, aiming for completion of the PFS work by the end of Q3-2011.
Chairman's Comment
Mr. B. Batmunkh, Chairman of Sharyn Gol JSC commented by stating: "Sharyn Gol offers an extremely rare combination in the Mongolian coal mining sector; having a current mining operation, existing dedicated and expandable rail infrastructure, a large workforce, and now a major resource. The announcement today is very exciting for the company but also for the town of Sharyn Gol in terms of securing jobs and the economic foundation of the community."
"During the past 12 months, Sharyn Gol has received two awards; first as the most transparent company listed on the Mongolian Stock Exchange, and second as one of Mongolia's Top-100 enterprises. These accolades reflect our commitment and dedication to operational excellence. The initiatives announced today reflect our continuing focus on delivering shareholder value, but also our desire to contribute to the success and bright future of all our stakeholders and to the Mongolian national economy."
Moody's says outlook for Mongolia's ratings is stable
May 3 (Reuters) - Mongolia:
Moody's says outlook for Mongolia's ratings is stable
Origo Partners' NAV jumps by a half in 2010
May 3, LONDON (SHARECAST) Beijing-based private equity investment firm Origo Partners was able to grow its net asset value (NAV) by 49% in 2010, helped by strong economic growth in China and an increased weighting in the Mongolian market.
NAV surged to $196.6m during the 12 months ended 31 December 2010, up from $132m in 2009.
While China's GDP surged by 10.3% during the period, the group said it had invested heavily in the metals and mining sector of Mongolia during the year, "a country which has the potential to become a significant supplier of raw materials to China over the coming years."
As a result, the sector now represents around half of the total portfolio, up from 45% in 2009.
However, revenues slipped 24% to $2.8m, from $3.7m, due to the loss of consulting fees following the merger with Origo Resources Partners last year. Pre-tax profit decreased to $36.7m, from $39.5m previously.
"Origo goes into 2011 in a stronger position than at any point in our history. The Chinese economy continues to grow strongly, presenting significant opportunities for those able to successfully navigate the Chinese environment," the group said.
Link to Interim Management Statement for Q1
THERMAL POWER STATION WILL BE BUILT IN BARUUN-URT SOUM
May 3, Ulaanbaatar, Mongolia, /MONTSAME/ A ceremony to lay a foundation stone of thermal power station has run in Baruun-Urt soum, Sukhbaatar aimag. The station will be erected at five million US dollars' non-refundable aid from the Government of South Korea.
A governor of the province J.Batsuuri has said when the station is put into use, the locality will received energy from one single united source. For the time being, they use five heating furnaces installed in 1980s.
A resident representative of S.Korea's International cooperation agency /KOICA/ to Mongolia, Li Ding Guo has added that the station will help the locality boost infrastructure, mining and livestock spheres.
As expected, the thermal power station will be ready by May of 2012, besides, at seven bilion togrog from the state, a thermal network of Baruun-Urt soum will be expanded and renovated within a year.
GTSO Developing Plan to Mine Gold Alongside Rare Earths in Mongolia
Due Diligence on Rare Earth Mining Property in Tuv Aimag Unearths Gold Deposits
May 3, SAN JOSE, Calif.--(BUSINESS WIRE)--Green Technology Solutions' (OTCQB:GTSO) plan to develop rare earth mines in Mongolia is beginning to feel like a golden opportunity. The company announced today that it is in negotiations with Ar Erkhes, LLC to develop mining production of gold as well as rare earths at a mineral-rich property in Mongolia's Tuv province.
In March, the Mongolian agent company for GTSO's joint venture with Rare Earth Exporters of Mongolia signed a letter of intent to develop a new licensed rare earth mine in Tuv. According to the letter, the joint venture will work with Ar Erkhes, the mine's license holder, to finance, market and develop the property into a working rare earths mine. The LOI also gives the joint venture and its agent the right to seek investors, scientists and other professionals in performing due diligence toward a definitive agreement. That due diligence produced mineral reports containing not only proof of high levels of rare earths at the site, but concentrations of gold as well. The joint venture is now in talks with Ar Erkhes to add gold mining to their potential definitive agreement.
"The price of gold has skyrocketed to new heights in the past year, and one reason is that precious metals such as gold are used in the manufacture of a number of new green-energy technologies," said GTSO President and CEO John Shearer. "Securing gold mining rights in Mongolia is a tremendous opportunity that we are pursuing with great enthusiasm."
Ar Erkhes is a trading and mining company located in the Mongolian capital of Ulan Bator. The company's exploration field under review by GTSO is located in an area known as Avdrant in the territory of Bayandelger Soum, Tuv Aimag. It is one of four sites across Mongolia that GTSO's joint venture is working to develop into rare earth mines. The joint venture has targeted Tuv Aimag as a prime strategic location for mining activities due to its proximity to Mongolia's capitol, Ulan Bator. The city is Mongolia's road and rail hub as well as the home of the joint venture's Mongolian transportation office.
More information on the joint venture's rare earths transportation strategy in Mongolia can be viewed athttp://www.rareearthexporters.com.
Once negotiations with Ar Erkhes have been successfully completed, GTSO plans to explore additional opportunities to develop precious metals resources in Mongolia and Asia due to soaring prices for the commodities driven by inflationary fears worldwide, Shearer said.
"Uncertain times have generated extraordinary demand for gold and other metals," he said. "We hope the Avdrant mine can be our first of many gold mining projects in Asia and around the globe."
Green Technology Solutions commercializes clean and renewable mining technology and products in a sector that includes Honda Motor Company, Ltd. (NYSE: HMC), MV Rare Earth/Strategic Metals (NYSEArca: REMX), SPDR Gold Shares (NYSEArca: GLD) and Goldcorp Inc. (NYSE: GG).
Good Investment or Scam: Green Technology Solutions
May 2 (Rare Earth Investing News) Due to the trade policies of China, the rare earth mining sector has been one the hottest commodity markets over the past year. As supply is reduced, and prices for the various metals have shot up, a wave of investment has flowed to many hopeful mining companies with valid deposits, and reputable management. Most of these companies are not mining their deposits and have little to show, apart from resource estimates, that their companies are worth the investment. It is on the investor to practice due diligence in researching the company's financial statements, and the reputation and experience of the management in making wise investment choices. A guide to researching mining companies from Chris Berry, founder of House Mountain Partners, was outlined on Gold Investing News in April. In the article, Chris Berry outlines the most important factors for evaluating mining companies with little more than a deposit as a company asset.
One hopeful rare earth company that has been in the news with spectacular headlines is Green Technology Solutions (PINK:GTSO) based out of San Jose, California. Some of the company's press releases state that the GTSO has partnered with a Mongolian rare earth exporter called 'Rare Earth Exporters of Mongolia' that is looking to develop REE properties in Mongolia. The GTSO has stated that it is shipping its first wave of rare earth oxides to South Korea. Recently, the company announced it had acquired the rights to a rare earth deposit in Arizona. The company issued a press release today stating the company has a deal to develop gold, diamond and rare earth mining properties in the Democratic Republic of Congo.
These wonderful sounding press releases almost pulled this reporter in as well. However, looking at the company's financial statements and management team has made this GTSO seem less than appealing, and maybe a scam.
In multiple attempts to interview Green Technology Solutions CEO John Shearer, he was not able to be reached, nor was any date of when he would be in the office provided. In another attempt to speak with the management team the company's own Ms. Dorj Atantogos, Director of Mongolian Operations, the receptionist at GTSO, was unaware of the person's affiliation with the company.
A closer look at the company's 10-K SEC filing showed less than promising data for a company with so many eye popping headlines. First, Green Technology Solutions changed its name from 'Sunrise Energy' in October of 2010. Sunrise Energy was "engaged in the exploration and development of oil and gas in the Ukraine." Shortly after the name change, in November 2010, the company purchased Bio Pulp Works, a company that makes recycled paper products.
The company's 'risk factors' under the SEC filing are exactly the opposite of what Chris Berry has listed as an essential for investment in mining companies, management experience. This is taken from the company's 10-K document.
"The independent auditor's report on our financial statements contains explanatory language that substantial doubt exists about our ability to continue as a going concern. The report states that we depend on raising additional equity to continue our operations. If we are unable to obtain sufficient financing in the near term, then we would, in all likelihood… we may be placed into bankruptcy or undergo liquidation… For the year ended December 31, 2010, the company's net loss was $715,871 and our accumulated deficit was $7,799,363… Our management has limited experience in our proposed areas of operation. It is unlikely that any of our officers or directors will have any direct experience in the business of any target company."
The company, as of Dec. 31, 2010 had only $2,613 in the bank.
The company's only listed employee, management, or board of directors is CEO John Shearer. According to the statement above, he has no experience in the rare earth mining industry, and his main experience is working for investment banking firms. He has no expertise in overseeing mining operations. Shearer is featured on a site called Beijing Bullion, which shares an IP address with GTSO, on the site there are links to "BUY GTSO."
Green Technologies Solutions headquarters in San Jose, California, is a 'virtual office' in which the address listed at '2880 Zanker Road, Suite 203.' The listing is not as GTSO, but to a company called HQ Global Workplaces. When pressing those available for comment at HQ Global, no email address was able to be given, no physical address for the company was available, nor was anyone at the company able to give validity to GTSO. They are simply a phone call center and voicemail service company. Whether the repeated attempts to speak with CEO John Shearer are ever met with a response is doubtful at best.
Before buying shares of a company in the rare earth market, or any market for that matter, practice due diligence to be sure that the company is valid and worthy of your hard earned money. Many of the companies in the rare earth space are still in the early developmental stages, however, can still be good investments. Just be weary of those with spectacular headlines and little to show for it.
FOREIGN COMPANIES INTRODUCE VOTING SYSTEMS
May 3, Ulaanbaatar, Mongolia, /MONTSAME/ The S.Korean "LS Cable" and "Miru Data System" LLC have introduced a "Touch Screen" voting system to Mongolia's General Election Committee (GEC).
The system consists of digital registration machine, voting papers automatic gathering equipment, and papers control device.
The S.Koreans say that their system let avoid many troubles that appear during the voting and papers counting. Prior to these Koreans some companies from USA and other countries already made a presentation of their digital registration systems.
MPs want shares for businesses to go to citizens instead
May 2 (news.mn) Some MPs led by Ya.Batsuuri and D.Odbayar asked the Government on Friday to scrap the scheme to sell 10% of Erdenes-Tavantolgoi shares to business entities. They want the shares so earmarked to be distributed free to all citizens instead. Parliament will discuss this new proposal later in the present session.
The MPs made the demand after the Government had told Parliament that it had expected to sell the shares to 50,000 domestic businesses but the number stood at just 2,700 after all eligibility documents had been checked.
MNCCI TO COOPERATE WITH "MONGOL-999" LLC
May 3, Ulaanbaatar, Mongolia, /MONTSAME/ A cooperation memorandum has been established between Mongolia's National Chamber of Commerce and Industry and the "Mongol 999" company.
The parties have agreed to have national enterprisers own shares in nominal value and to co-implement a registration campaign, to collaborate in setting up a fund for small- and middle-sized productions, to run nationwide seminars and meeting with aims to boost multi-lateral collaboration focused on ensuring a private sector-dominating economic growth.
Russian petroleum export ban does not apply to Mongolia, but prices rise
May 2 (news.mn) The Russian decision to halt all petroleum product export for an indefinite period from May 1 does not apply to Mongolia. The Ministry of Mineral Resources and Energy and the Mineral Resources and Petroleum Authority have reassured people that the Russian Government has officially clarified this.
News of the Russian decision to halt export led to importers increasing all petrol and diesel prices by MNT80 a liter on April 29 evening. Mongolia receives all its petrol and diesel products from Russia.
Ministry hopes to have single-digit inflation between 2012 and 2014
May 3 (news.mn) The Ministry of Finance yesterday submitted to Parliament a note on next year's budget along with outlines of the budgets of 2013 and 2014. The Ministry expects the economy to grow 11.8% this year, with the mining sector growing 10.6% and other sectors 12%.
The economy showed substantial recovery in 2010, with money supply increasing 62% and household consumption also rising. Inflation stood at 13% but the Ministry hopes to keep inflation between 8 and 9 between 2012 and 2014.
Ch.Khashchuluun: "Development Bank to Issue Bonds to Raise Funds"
May 3 (UB Post) -- Mr. Ch.Khashchuluun, Chairman of the National Development and Innovation Committee and Chairman of the Board of the Development Bank of Mongolia, shares his opinion on the recent development of establishing the Development Bank of Mongolia.
Q: Law on Development bank was adopted and its old regulation was amended. Board is going to be changed also. Is there any change in the pre-requirement for management team or from the team? Can you provide us the importance of this amended law?
Ch.Hashchuluun: In 2007, Development Bank was planned and in order to establish the bank, the law was being developed, but its implementation failed. The NDIC was established in 2009.
It was understood that budget can't provide sufficient fund for the planned projects of the Government. Therefore, it was necessary to have a new structure of financing – the Development Bank.
At the first instance, we worked with international advisers to compose the rule of the Development Bank to be approved by the Government. This rule was the soil for the new law. Adopting the separate law was inevitable.
Q: Can you give us details on the independent board members?
Ch.Hashchuluun: Representative from Central Bank of Mongolia (Bank of Mongolia), Mongolian Banks' Association and MNCCI (Mongolian National Chamber of Commerce and Industry) will be appointed.
Q: The foreign management team will direct the Development Bank. Will this team be composed of Mongolians?
Ch.Hashchuluun: Having foreign management team for the Development Bank has advantages. Mongolia lacks experience of industrialization, especially through the Development Bank, in its history of last 20 years. Financing structure of the Development Bank has much difference from those commercial banks.
Its fund shall be paid back, therefore it is different from budget. We ca prepare and train our HR ourselves. But it takes 3-4 years. Within this period, we shall seek assistance from foreign expertise. This team was selected from teams of the developed countries. The agreement with team will be concluded this Friday (April 29 2011).
Q: Where will be the location of the Bank and who will be the employees?
Ch.Haschuluun: 90% of the total employees will be Mongolians and few Korean managers will be working. Half of the management team will be Mongolians. As for the office, it is located at Ministry of Finance and there will be 40-50 people working for the bank, so I believe this building is enough to house all our employees.
Q: This fund will be used for Industrial Park, new industrialization and railway building. What project shall attract the biggest attention?
Ch.Hashchuluun: I think energy and construction will be the first ones and we have the list of projects.
Because of lag in the development of infrastructure, there are certain obstacles in the national development. Therefore, electricity network shall be created in Ulaanbaatar and countryside immediately.
Also, heating, clean water supply and sewage system shall be developed for Ulaanbaatar, urging housing program for 100,000 households. Moreover, SME development request is made by many people and Korean Development Bank has rich experience in supporting SME.
Its management team says that intensive funding for SME is possible, especially in food, agriculture and innovating processing factories. It has own interest in developing it also.
Third. Preparation work of the Industrial Park. We are negotiating with Bechtel Company to hire as the General Consultant. Bechtel will produce the main Feasibility Study of Industrial Park, infrastructure requirements, drawings and factories. Hence, building the industrial park work will start from building heating, water and sewage system and then SME complex will be created.
According to the plan, 3-4 big factories will be built, in doing so SME will be developed in parallel. It is called as the development of cluster. It shall steeply decrease infrastructure cost, while allowing centralization of many industrialization objects and projects on the existing infrastructure, yet promoting competition.
It will not be limited only to Sainshand, also it will be created in Darkhan, Selenge, Gobi regions. But infrastructure building cost is higher in Gobi region, just for an example, road building takes 2-3 years. But it needs water, heating and sewage system also.
As for now, it is correct to concentrate on Sainshand, Darkhan, Selenge, Erdenet where the infrastructure is decently developed.
Its fund shall be paid back, therefore it is different from budget. We ca prepare and train our HR ourselves. But it takes 3-4 years. Within this period, we shall seek assistance from foreign expertise.
This team was selected from teams of the developed countries. The agreement with team will be concluded this Friday (April 29 2011).
Q: Where will be the location of the Bank and who will be the employees?
Ch.Haschuluun: 90% of the total employees will be Mongolians and few Korean managers will be working. Half of the management team will be Mongolians. As for the office, it is located at Ministry of Finance and there will be 40-50 people working for the bank, so I believe this building is enough to house all our employees.
Q: This fund will be used for Industrial Park, new industrialization and railway building. What project shall attract the biggest attention?
Ch.Hashchuluun: I think energy and construction will be the first ones and we have the list of projects. Because of lag in the development of infrastructure, there are certain obstacles in the national development.
Therefore, electricity network shall be created in Ulaanbaatar and countryside immediately. Also, heating, clean water supply and sewage system shall be developed for Ulaanbaatar, urging housing program for 100,000 households.
Moreover, SME development request is made by many people and Korean Development Bank has rich experience in supporting SME. Its management team says that intensive funding for SME is possible, especially in food, agriculture and innovating processing factories. It has own interest in developing it also.
Third. Preparation work of the Industrial Park. We are negotiating with Bechtel Company to hire as the General Consultant. Bechtel will produce the main Feasibility Study of Industrial Park, infrastructure requirements, drawings and factories.
Hence, building the industrial park work will start from building heating, water and sewage system and then SME complex will be created. According to the plan, 3-4 big factories will be built, in doing so SME will be developed in parallel.
It is called as the development of cluster. It shall steeply decrease infrastructure cost, while allowing centralization of many industrialization objects and projects on the existing infrastructure, yet promoting competition.
It will not be limited only to Sainshand, also it will be created in Darkhan, Selenge, Gobi regions.
But infrastructure building cost is higher in Gobi region, just for an example, road building takes 2-3 years. But it needs water, heating and sewage system also.
As for now, it is correct to concentrate on Sainshand, Darkhan, Selenge, Erdenet where the infrastructure is decently developed.
DP group wants better coordination in work at border points
May 3 (news.mn) Monday's meeting of the DP group in Parliament discussed four issues, its Chief, Ch.Saikhanbileg, told journalists. While agreeing to discuss in Parliament a protocol on the state policy on border points, the MPs said several issues have to be clarified and coordination between organizations improved.
The MPs set up a 7-member working group with the head of the Standing Committee on Security and Foreign Policy, Ya.Batsuuri, leading them to study the issues covered by the protocol, especially better coordination between the General Customs Office and the State Specialized Inspecting Agency.
The group also agreed to discuss in Parliament a protocol on disaster management and established a working group headed by N.Batbayar to suggest improvements. Amendments to the criminal law were also approved for further discussion in Parliament.
Chamber of Tax Payers to be established
May 2 (news.mn) The General Taxation Office has decided to establish a Chamber for Tax Payers to help individuals, organizations, students and foreign businessmen with their tax problems. They are welcome to ask managing officials of tax organizations for assistance and advice.
PRESIDENT OF PEOPLE'S BANK OF CHINA TO VISIT
May 3, Ulaanbaatar, Mongolia, /MONTSAME/ The president of the People's Bank of China (PBC) Zhou Xiaochuan will visit Mongolia to sign a contract of swap agreement on exchanging national currencies between the Bank of Mongolia and the PBC.
The agreement will be established May 5 in accordance with a proposal of the Bank of Mongolia. It is expected that the swap agreement will contribute to ensuring of the stability of the national currency Togrog by quickly supplying the Chinese Yuan (CNY) to Mongolia's market in case of a unstable condition of foreign currencies in Mongolia.
INTERNATIONAL MEETING ON COOPERATIVES IN MONGOLIA BEGINS TOMORROW
May 2 (news.mn) The UN General Assembly has designated 2012 as the international year of cooperatives. A preparatory meeting will be held in Ulaanbaatar from May 3 to 6 on how the year will be observed in Mongolia. It has been jointly organized by the Ministries of Foreign Affairs and Trade, of Food, Agriculture and Light Industry and the UN Economic and Social Council.
Deputy Speaker N.Enkhbold, who is also the Head of Mongolian Cooperatives, and the Chief of SME Agency, D.Nyam-Osor, today told journalists the meeting will bring together representatives of Mongolian cooperatives and experts with delegates from the International Labor Organization and 40 countries including the USA, Canada, Germany, the Philippines, Japan, Kenya, Sweden and Vietnam. They will recommend the best ways to develop cooperatives in Mongolia, and suggest activities in 2012. The focus of the discussions will be on how the Government and the private sector can help in the growth of the cooperative movement.
A fair called "Cooperatives and SMEs as working places" would be organized in Misheel Expo between May 5 and 9.
Winsway: HOLDING COMPANY ACQUIRING PREMIUM HARD COKING COAL ASSETS IN RUSSIA
May 3, Winsway Coking Coal Holdings Limited (HK:1733) --
The board of directors of the Company announces that the Company has received notice of a business opportunity from its holding company, Winsway Group, to invest in an upstream premium hard coking coal project in Russia.
After fully considering the opportunity, the Company has decided not to take up this investment opportunity and Winsway Group acquired the assets in accordance with the Non-competition Deed and Winsway Group has entered into a sales and purchase agreement in relation to the assets acquisition.
Winsway Group granted the Company a future right of first refusal to reconsider the project within a period of 12 months. Winsway Group secured exclusive rights to provide logistics and brokerage services for the coal produced by the Project for the Company.
…
Eurasia Capital Opens Emirati Subsidiary, Targets Gulf Investors
May 3, ULAANBAATAR. Eurasia Capital is pleased to announce the establishment of Eurasia Capital Gulf Limited, its new subsidiary, incorporated in the United Arab Emirates (UAE). Eurasia Capital intends to attract investors from the countries of the Gulf Cooperation Council (GCC) into Mongolia and Central Asia. GCC members include Saudi Arabia, the UAE, Kuwait, Qatar, Oman and Bahrain.
Alisher Ali, the Arabic speaking Chairman of Eurasia Capital stressed, "GCC countries represent strategic importance for Eurasia Capital as our Firm intends to facilitate significant investment inflows from this region into the resource rich Mongolia and Central Asia."
GCC countries have the total GDP of over $1 trillion, possess 37% of the world's total oil reserves and accumulated over $1.5 trillion in various sovereign wealth funds (SWFs), which represent 35% of the total assets, held by SWFs globally. Abu Dhabi Investment Authority, Kuwait Investment Authority and Qatar Investment Authority are among the world's largest SWFs. In recent years Gulf investors have become among most active international investors, actively expanding into emerging and frontier markets.
The recent visit of Mongolian Prime Minister Batbold to Kuwait and the UAE in January 2011 became catalyst for expanding relationships between Mongolia and the Gulf countries. The Emir of Qatar is expected to make his State visit to Mongolia in coming weeks. Qatar has been the world's fastest growing economy, expanding 7.4 times in 2001-2010 at annual growth rate of 25%. Through development of its massive natural resources, Mongolia is expected to assume the title of the world's fastest economy in 2011-2020, growing 20% per annum throughout next decade.
Eurasia Capital plans to establish relationships with sovereign wealth funds, financial institutions, family offices and private investors in the Gulf region. The Firm will advise clients on investment opportunities in energy, mining, infrastructure, property, financial services and other high growth sectors in Mongolia and Central Asia. Eurasia Capital will organize the Mongolia Investment Conference in Abu Dhabi in the second half of 2011.
Eurasia Capital will be actively working with its well-established partners in the region, including MAC Capital, a Dubai-based investment bank, a partner from Global Alliance Partners (GAP), where our firm is a Mongolian partner. Eurasia Capital is hosting the 6th annual GAP conference and Mongolia Investment Conference in Ulaanbaatar, Mongolia in May 24-26, 2011.
Mongolia: riskier than Belarus?
May 3 (FT) Mongolia may be the darling of the mining world and a hotspot for investors in developing Asian economies. However as far as the credit markets are concerned, it might as well be a Greece or a Belarus. That's according to Moody's, which outlined the risks facing this young, resource-rich democracy in its recent annual report.
In some ways Mongolia's finances would be the envy of many countries in the West: government gross debt was 43 per cent of GDP in 2010 and according to the International Monetary Fund this will fall to 20 per cent of GDP by 2015. But Mongolian sovereign debt is still risky because the country is so vulnerable global commodities prices.
"The key thing about Mongolia is that it is subject to these boom and bust cycles," explains Tom Byrne, senior vice president at Moody's in Singapore and the author of the report. "In the last cycle a couple years ago we saw reserves being run down, there was runaway inflation, a loss of confidence in the system and Mongolians fleeing the tugrik [local currency]. This was very destabilizing."
The prospect of falling copper prices would be particularly damaging to the economy, according to Moody's. Extremely harsh winters, known as "dzud" also pose economic risk.
Then there is the question of governance. While Mongolia has seen several successful transitions of power since it became a democracy in 1990, there are concerns that governance may be deteriorating. Moody's notes:
The World Bank's governance indicators. . . had previously placed Mongolia in a relatively favorable position for a country undergoing a transition from socialism and poverty. However, these indicators have deteriorated in past years and continue to trend downwards. These factors, along with other considerations, support our assessment of Mongolia's institutional strength at low. . . . the country's institutional development has not kept pace with its rapid economic growth in recent years.
Mongolia's economy is still set to grow strongly this year, with Moody's forecasting GDP growth at 9-10 per cent in 2011 and 2012. But that's not to say that it will always be smooth sailing as Moody's decision to maintain its B1 rating on the government's bonds suggests.
FACTBOX-Key political risks to watch in Mongolia
BEIJING May 3 (Reuters) - Remote and landlocked Mongolia sits on vast quantities of untapped mineral wealth, and foreign investment in a number of gigantic mining properties is expected to transform its tiny economy in the next decade.
…
Mining is set to transform the Mongolian economy, with investment in the Oyu Tolgoi project set to reach $2.3 billion in 2011, but there has been frustration about how the dividends are spent, as well as the impact of mining on the environment.
Around 200 herdsmen pitched tents in Ulan Bator's central square on April 19 and called on the government to resign for "betraying national interests in mining deals".
Public anger about the way the Oyu Tolgoi project was sold has had an impact on its handling of Tavan Tolgoi. While stakes in the western block of the project will eventually be transferred directly to foreign investors, Mongolia aims to keep half of the eastern block, with 30 percent listed on an overseas stock exchange, and 20 percent handed out to local enterprises and residents.
…
Scholars read papers at conference on mining
May 2 (news.mn) Several scholars and analysts presented their views at a conference on Friday organized by the Ministries of Mineral Resources and Energy, of Nature, Environment and Tourism and the Mineral Resources Authority on mining as the basis of development. Altogether 30 papers had been submitted on Government policy, on development of scientific mining, and on using findings of academic research in mining operations.
Seven of these were read at the conference, including one on viability of value added production, another on liquefaction of coal, and another on ways to neutralize the sulfur dioxide emission from a copper smelter. Participants greatly appreciated Dr. B.Purevtogtokh's paper on use of technology in Shivee-Ovoo, Dr. J.Dugarjav's treatise on developing a coal-based chemical industry, and Dr. B.Elbegzaya's assessment of techniques and technologies now used in mining.
<Mogi & Friends Fund A/C>
-13.6% QtD, +51.8% Overall
Mogi & Friends Fund is a tiny fund of A$23K I created in late September with a few friends to put my own (and a few friends') money where my mouth (just mine) is.
High A$ has been hitting Aussie shares hard lately. With the A$ going above the US$1.10 mark,
Mogi
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"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
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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 mogi@cpsinternational.mn or +976-99996779.
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