CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
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Close: Mongolia Related ASX Listed Companies, May 23, 2011 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.049 | -0.001 | 0.049 | 0.050 | 0.050 | 0.050 | 0.049 | 1,405,745 | |
1.490 | 0.025 | 1.470 | 1.490 | 1.500 | 1.535 | 1.465 | 1,074,764 | |
0.300 | 0.000 | 0.285 | 0.300 | 0.300 | 0.300 | 0.300 | 60,687 | |
0.695 | -0.040 | 0.695 | 0.700 | 0.725 | 0.735 | 0.690 | 790,271 | |
0.013 | -0.001 | 0.013 | 0.014 | 0.014 | 0.014 | 0.013 | 1,058,250 | |
0.006 | 0.000 | 0.005 | 0.006 | 0.000 | 0.000 | 0.000 | 0 | |
0.053 | -0.001 | 0.053 | 0.055 | 0.055 | 0.055 | 0.053 | 2,000,770 | |
0.180 | -0.010 | 0.175 | 0.180 | 0.190 | 0.190 | 0.180 | 156,000 | |
1.230 | -0.035 | 1.210 | 1.230 | 1.260 | 1.295 | 1.200 | 775,469 | |
0.250 | -0.020 | 0.250 | 0.265 | 0.250 | 0.255 | 0.250 | 70,008 | |
0.500 | 0.000 | 0.450 | 0.500 | 0.480 | 0.500 | 0.480 | 35,000 | |
0.455 | -0.020 | 0.450 | 0.460 | 0.470 | 0.470 | 0.455 | 108,675 | |
23.760 | -0.430 | 23.760 | 23.820 | 24.150 | 24.160 | 23.650 | 801,854 | |
78.990 | -1.210 | 78.980 | 78.990 | 79.050 | 79.230 | 78.790 | 2,870,100 | |
43.290 | -0.760 | 43.280 | 43.290 | 43.620 | 43.650 | 43.250 | 12,307,939 | |
Source: asx.com.au
Hunnu increases stake in Mongolian coal
May 23 (WA Business News) Perth-based Hunnu Coal (ASX:HUN) has beefed up its Mongolian coking coal portfolio, with the $40 million acquisition of a controlling interest in tenements owned by a subsidiary of Rio Tinto.
Hunnu told the ASX today it would acquire Rio Tinto Minerals Development's 70 per cent interest in the Altai Nuurs coal joint venture, located in Mongolia's south western Gobi Altai province.
The coal explorer said it would pay $23 million in cash on signing, with a further $17 million in deferred payments.
The Altai Nuurs project comprises six exploration licenses totalling over 46,000 hectares and four mining licenses totalling 202ha with an exploration target of between 250 million tonnes and 500Mt.
Hunnu said preliminary test work indicate the coking coal parameters at Altai Nuurs compared favourably with similar projects elsewhere.
The purchase is the second major announcement in less than two months for Hunnu, which entered a strategic partnership in March with Thailand-listed Banpu Minerals to develop its Mongolian coal tenements.
It said it holds 413Mt of JORC compliant coal resources across its other projects.
Hunnu was one of Western Australia's top sharemarket performers in 2010, with its stock finishing the year up 570 per cent on its listing price of 20 cents at $1.34.
"The company intends to continue its aggressive exploration and acquisition efforts and with the support and expertise of its strategic partner, Banpu PCL, move from exploration to mine development and then into production, all within this year," Hunnu said in a statement.
At 9:39AM (WST) Hunnu's shares had moved slightly upwards, gaining 1.7 per cent to trade at $1.49.
Van Eck Plans Mongolia Equities ETF
May 23 (IndexUniverse) Van Eck Global, the New York-based fund sponsor known for its natural resources investments, filed paperwork with the Securities and Exchange Commission to market an equities fund of companies in Mongolia, the copper-rich landlocked Asian nation that shares borders with both Russia and China.
The Market Vectors Mongolia ETF will hold at least 80 percent of its assets in companies either based in or listed in Mongolia, or based elsewhere but derive at least half their revenues from business activities in Mongolia, according to the filing. Van Eck said that as of the filing, the basic materials, energy and industrials represent a significant portion of the index, which it didn’t name.
The country has an array of mineral deposits, including oil, coal, copper, molybdenum, tungsten, phosphates, tin, nickel, zinc, fluorspar, gold, silver and copper, according to the Central Intelligence Agency’s “World Factbook.” Copper is likely to be a big part of the country’s economic future. According to the CIA, the Mongolian government in October 2009 passed legislation on an investment agreement to develop Mongolia’s Oyu Tolgoi mine, one of the world’s largest untapped copper deposits.
Copper prices have risen sharply in recent years, fueled by strong demand from emerging market countries such as China. The iPath Dow Jones-UBS Copper Subindex Total Return ETN (NYSEArca: JJC), a popular copper pure-play in the exchange-traded product world, has risen 86 percent in the past two years, according to data compiled by IndexUniverse.
Van Eck, which warned of risks of investing in a country that doesn’t have a long history of capital markets as they exist in the developed world, said in the filing the fund will be able to use derivative instruments such as swaps to carry out its investment strategy.
The modern country of Mongolia was once governed by a regime installed and backed by the former Soviet Union, and doesn’t include the Inner Mongolia Autonomous Region, which is controlled by China, according to the CIA.
The fund company didn’t name the fund’s ticker or say what the ETF’s annual expense ratio might be.
Petro Matad Directorate changes
May 23, Petro Matad Limited (AIM:MATD) The Board of Petro Matad is pleased to announce the appointment of Ms Enkhmaa Davaanyam as a non-executive director of the Company with immediate effect. Ms Enkhmaa has also been appointed to the Board's Corporate Governance, Social Action and Environment Committee. Ms Enkhmaa's appointment is on the nomination of Petrovis LLC ("Petrovis"), Petro Matad's largest shareholder, with Ms Enkhmaa replacing Ms Enkhchimeg Davaanyam who has resigned as a director of Petro Matad.
Ms Enkhmaa (aged 32) is a Mongolian and Australian national who is based in Mongolia. Ms Enkhmaa is an investment banker, who is currently Head of Country Coverage for Mongolia for Macquarie Capital Advisers. Ms Enkhmaa has been with the Macquarie Group of companies for the last nine years with a focus in energy, resources and infrastructure sectors. Prior to her current role advising Macquarie Capital Advisers, Ms Enkhmaa was a Managing Director responsible for risk management in the energy sector for Macquarie Group in the United States.
Commenting on the board changes, Doug McGay, CEO of Petro Matad said:
"We are delighted to welcome Ms Enkhmaa to the board. Her experience in energy and specifically the oil & gas sector, along with her banking experience and qualifications combine to make her a valuable addition to the Company and we look forward to drawing upon her skills. The board would also like to put on record its thanks to Ms Enkhchimeg for her valuable contribution to the Company."
Ms Enkhmaa is a director of Ascend Financial Group Ltd and has confirmed that, other than this directorship, she has no other disclosures pursuant to Schedule 2 paragraph (g) of the AIM Rules for Companies.
MMC: CONTINUING CONNECTED TRANSACTIONS
May 23, Mongolian Mining Corporation (HK:975) --
On 23 May 2011, Energy Resources, an indirect wholly-owned subsidiary of the Company, entered into the following Agreements with certain connected persons of the Company:
(i) Office and Camp Supporting Service Agreement between Uniservices Solution and Energy Resources, whereby Uniservices Solution agreed to provide office and camp supporting services to the Group for a period of 4 months commencing from 23 May 2011 for a total consideration of MNT5,991,475,600 (equivalent to approximately US$4,905,256); and
(ii) Purchase of Fuel Agreement between Gobi Oil and Energy Resources, whereby Gobi Oil agreed to supply fuel products to the Group for a period commencing from 23 May 2011 until 15 July 2011 for a total consideration of US$9,500,000.
LISTING RULES IMPLICATIONS
Uniservices Solution is a wholly-owned subsidiary of MCS Holding LLC which indirectly owns a 100% shareholding interest in MCS Mining Group Limited, a substantial shareholder of the Company. As such, Uniservices Solution is a connected person of the Company within the meaning of the Listing Rules. Accordingly, the transaction contemplated under the Office and Camp Supporting Service Agreement constitutes a continuing connected transaction of the Company.
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Gobi Oil is an associate of each of Petrovis Resources Inc., a substantial shareholder of the Company, Mr. Batsaikhan Purev and Dr. Oyungerel Janchiv, each a non-executive Director. As such, Gobi Oil is a connected person of the Company and the transaction, contemplated under the Purchase of Fuel Agreement, also constitutes a continuing connected transaction of the Company.
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Russia wants mining to start in Asgat
May 23 (news.mn) The Shareholders’ Committee in the three Mongolia-Russia joint ventures -- Ulaanbaatar Railway, Mongolrostsvetmet and Erdenet Copper -- held its annual meeting on May 19. It reviewed last year’s work in the three units, the activity plan for 2011, and also discussed projections for 2012.
It is believed that there was serious difference of opinion on what the Mongolrostsvetmet report said about exploitation of the Asgat and Bargilt deposits. The Russians insisted on mining to start even without Mongolian participation. Since that would lead to serious problems, as Mongolia holds 51% of the shares, it was decided to make a further study of the exploitation prospects of Asgat and Bargilt deposits.
G.Zandanshatar to submit draft law banning import of spent nuclear fuel
May 23 (news.mn) Minister for Foreign Affairs and Trade G.Zandanshatar is preparing a draft law to prohibit storage or reprocessing of any other country’s spent nuclear fuel in Mongolia. The present law is also quite categorical about this but the Minister feels further assertion of Mongolia’s stance is needed in the wake of several reports in foreign media suggesting the country was agreeable to act as a dumping site.
The Government is likely to discuss the issue this week.
Mongolia Balances Public Opinion With Nuclear Ambitions
May 23 (WPR) In recent months, news outlets in Japan and the U.S. have reported that Mongolia is negotiating with those two countries to serve as a regional depository for spent nuclear fuel. The proposed plan would permit geographically constrained countries in the region, such as Japan, South Korea and Taiwan, to dispose of their spent fuel in the spacious Central Asian state.
The veracity of the reporting on the negotiations is still unknown. When the story first broke in March, the Mongolian Foreign Ministry was quick to dismiss the notion that Mongolia would host Asia's nuclear waste. The statement went on to declare that Mongolia's constitution prohibits the "import of dangerous waste to Mongolian territory. "As noted last month, Mongolia has good reason to take such a stance, especially in light of the nuclear shadow cast by the recent events in Fukushima, Japan. Whether the government's position is cosmetic or genuine has yet to be comprehensively determined.
Last week, only a month after the depository claims were dismissed by Mongolian officials, the Mainichi Daily News, a Japanese newspaper, reported that the "secret deal" was advancing between the U.S. Department of Energy and the Mongolian government. The discussions highlight a larger struggle over global nuclear market share, with the U.S. and Japan positioned against industry rivals Russia and France. Russia's state-owned nuclear-energy corporation Rosatom continues to serve as a potent competitor in Mongolia to the U.S.-Japan nuclear alliance. Russia has the advantage of having established a historical record with Mongolia on nuclear energy matters, including a legally binding partnership and significant economic investment. France is a relatively new player in Mongolia's nuclear industry, but its multinational nuclear corporation Areva has plenty of resources and expertise as well as global reach.
Japan and the U.S. are reportedly seeking to present Mongolia with a "package deal" that would provide the country with its first nuclear reactor in exchange for also hosting spent nuclear fuel from the region. Negotiations have most likely been going on for some time now, but Fukushima has muddied the waters for Mongolia, which is seeking to defuse popular discontent with the idea of building what would be the country's first nuclear reactor.
While the three parties may have been close to a deal before the March 11 earthquake in Japan, currently there seems to be little appetite in Mongolia for a nuclear agreement. In response to the most recent reporting, the Mongolian Embassy in Vienna -- and Mongolia's Permanent Mission to the International Atomic Energy Agency (IAEA) -- restated that "there have not been any talks with foreign organizations or individuals on the issue of accepting nuclear waste of other countries since there are no legal grounds for such talks."
The Mongolian statement did qualify its dismissal, however, by noting that Ulan Bator has been in discussion with countries interested in "the exploitation of uranium." According to the IAEA, Mongolia has more than 1.5 million tons of uranium deposits, which it is eager to profit from with the help of foreign investors. It seems that the Mongolian government is being forced to walk a tightrope by trumpeting its sovereignty and laws on one hand while tacitly acknowledging its desire to exploit its uranium reserves on the other.
American officials have thus far not verified that negotiations are ongoing either. The U.S. Embassy in Japan released a statement immediately after the Mainichi report went to press declaring that there were "a number of inaccuracies in the stories being reported today in Japanese newspapers about a spent nuclear fuel facility in Mongolia." The statement continued by noting that "the U.S. government is not negotiating a deal to send spent nuclear fuel to Mongolia" and "fully respects that it is the sovereign decision of any government whether and under what terms they participate in nuclear energy activities, including nuclear fuel leasing." Despite this, the U.S. statement can be read more as a criticism of the story than a blanket denial of the proposed deal.
The reaction in Japan has not been so dismissive. A senior Japanese official from the Foreign Ministry confirmed "there have in fact been informal talks with both the United States and Mongolia on the issue." It is possible that the Mainichi report was the result of a leak from the Japanese government, which has a significant corporate interest in exporting its nuclear expertise. Japan has one of the largest nuclear industries in the world and produces an incredible amount of spent fuel annually. It is having an increasingly difficult time storing this waste domestically and would welcome such a partnership with a nearby country. Moreover, huge Japanese corporations such as Toshiba and Hitachi are hoping to capitalize on any "package deal" with Mongolia by potentially helping to build nuclear reactors.
While Mongolia continues to release enigmatic statements on its nuclear future, internally it continues to strategize how best to take advantage of its uranium resources. As talks with Japan and the U.S. continue to evolve, expect further seemingly contradictory stories to surface for two reasons. First, the Mongolian government needs to approach the idea of housing spent nuclear fuel carefully due to public opinion after Fukushima. Second -- and more importantly -- as Mongolia continues its negotiations, it will use the presence of other potential investors such as France and Russia as a hedge in order to secure the best possible deal from the U.S. and Japan.
Jonathan Berkshire Miller is an analyst on the Asia-Pacific region with the Canadian government and has considerable research and policy experience in issues relating to nuclear nonproliferation, arms control, counterterrorism and intelligence. He is also a regular contributor to the Diplomat on Asia-Pacific security issues. The views expressed above are strictly his own and in no way represent the government of Canada.
Mongolia’s Ulaanbaatar to Have New International Airport
May 23 (2pointb6billion.com) – The Mongolian government has agreed with the government of Japan on a US$270 million soft loan, repayable over 40 years at a rate of just 0.2 percent to build a new airport to service Mongolia’s capital, Ulaanbaatar. The city’s current airport suffers from occasional high winds and has a relatively short runway unsuitable for 747s and larger aircraft.
The new facility, to be built and completed by 2015, will be able to service all larger modern aircraft and affords better protection from windshear. It should reduce annual flight cancellations and delays from the current level of 2.5 percent down to 0.5 percent. The airport will be built in the Khoshigt Valley, near Terelj in Tov Aimag, about 54 kilometers from the capital. Construction on the new airport – together with a high speed motorway that connects Ulaanbaatar with the airport – is expected to be started later this year. The loan was agreed on condition that Japanese contractors and suppliers were used.
Since the late 1990s, international air traffic to Mongolia has been increasing, and it is expected that the rate will continue to increase. Capacity is set to rise from the current level of 600,000 passengers annually to roughly 2.5 million passengers annually. That is about the same as the total national population. Cargo capacity is set to increase 10-fold.
The improvements in air travel go hand in hand with plans to lessen dependence on rail links to China. Mongolia will also see the development and construction of an eastern spur from the Trans-Mongolian line heading east from Ulaanbaatar to the eastern Trans-Siberia route which will link Mongolia directly to a sea port for the first time – circumnavigating the current need for Mongolian raw materials, goods and products to pass through China prior to export. China has a history of closing the border with Mongolia at times of political and religious tensions such as the Dalai Lama’s visits to the country, so increasing alternative transportation routes to provide options other than reliance on China are increasingly being seen as a desirable policy.
Khashchuluun: Mongolian Economy is growing rapidly
May 23 (business-mongolia.com) Mr. Ch.Khashchuluun, Chairman of the National Development and Innovation Committee answered reporter’s questions on Economic growth, inflation and Development bank.
Q: Let’s start the conversation with the subject of Economy and Gross Domestic Product as they have increased by significant amount compared with the previous years?
Ch.Kashchuluun: The Real GDP in 2010 was 6 percent whereas it is 9.7 percent in the first quarter of this year. The rate is still increasing. Last year, the sectors with the greatest increases were: trades (23%), construction sector (15%), manufacturing factories (11.3%) and industrial enterprise sector (6.3%).
According to the statistic of the year 2010, our GDP was counted over 8 trillion MNT. GDP per capita reached over 2200 USD which is about 500 USD greater than the economic recession period in 2009. The growth of 9.7% in the first quarter of 2011 has never been recorded in the history of Mongolian Economy. The growth is increasing as well as the rate. There are some positive signs in the economy as we are seeing more production instead of larger portion of purchasing and spending. What we will also experience is decreased unemployment because “Employment support year” is actually providing more job opportunities. Demands for jobs are increasing and it is important to provide that.
Q: As the Economy is growing so fast, what about the inflation? Lots of economists say that inflation has direct relation with the Economic growth?
Ch.Kashchuluun: International organizations have approached it with such care that they thought increase in price will be much higher this year. Right now, the rate is much lower than expected. The inflation is around 5 percent right now. This is because large numbers of meats and vegetables were reserved last winter so that the price can be stable in the spring where usually demand for meat and vegetables are much higher. What we are expecting this year is the Economic growth to be more than 10% and inflation to be in single digit. The trade balance showed USD 1.5 billion surplus. This was an advantage because we have greater currency reserve which makes the value of MNT much higher. This is another reason to have lower inflation.
Large numbers of investments are planned for the countryside. We are creating all sorts of funds for the countryside so to increase investment in the countryside. According to our plan, we will see large number of improvements in the infrastructure sector this year. The planned works are: paved roads in Umnugobi province, thermal power station in Zavkhan province and works for 5th thermal power station is to start. In addition, the project to build Thermal power station near Oyu tolgoi and Tavan tolgoi will be decided this June.
Q: The development bank was established with bonds worth MNT 800 billion. MNT 350 billion will be spent on housing and apartments; did the working group calculate the rest of the funding for other sectors?
Ch.Kashchuluun: According to the Resolution No 15 of the SGK this year, the fund is available for 4 large projects which are paved roads, large complex of enterprise, new apartments and new railways. First of all, projects are not ready and it is too early to give information on how much money will be spend on each of those 4 projects.
Ukraine, Mongolia discuss trade, economic cooperation
The 5th meeting of the Intergovernmental Ukrainian-Mongolian Commission for Trade-Economic and Scientific-Technical Cooperation is taking place in Ulan Bator, Mongolia.
May 23 (National Radio Company of Ukraine) At the meeting, the parties intend to discuss the rise in bilateral trade, which by the end of 2010 amounted to USD 44,420,000, an increase of 26.6% compared to a year earlier. The share of Ukrainian exports to Mongolia reached USD 33.28 million, thus a positive balance in favour of Ukraine is USD 11.14 million.
The major Ukrainian exports to Mongolia are food, machinery and equipment, paper. Mongolia supplies Ukraine mainly with fluorspar. Co-chairmen of the commission are Ukraine's Deputy Economy Minister Vasyl Marmazov and Minister of Defense of Mongolia Luvsanvandan Bold. The delegations also include representatives of ministries and departments, a number of enterprises. The Ukrainian-Mongolian Intergovernmental Commission on Trade-Economic and Scientific-Technical Cooperation was established in 1993. During these years the sides have held 4 meetings, the last of which was in 2005.
AUSTRALIAN ENGINEERS ENABLE LIGHTS ON AT BENCHMARK COAL WASH PLANT
May 23 (Pace Today) A benchmark coal wash plant in the new mining hotspot of Mongolia has hit its critical ‘lights on’ date with the help of nine Australian electrical engineers.
Located in the South Gobi region near the Mongolian/Chinese border, the Ukhaa Khudag mine is the first large-scale coal mine in Mongolia to be developed and operated to international mining standards and practices. Owned by an international consortium called Energy Resources, the mine’s output of 800 tonnes of coal per hour is destined for the Chinese market.
Project supervisors from Australian electrical installation solutions provider, O’Donnell Griffin, gave up their Christmas and New Year holidays to travel to Mongolia to help supervise the electrical installation at the brand new facility. They ensured quality and safety standards were upheld and trained the local workers on the job.
The O’Donnell Griffin team, headed by project manager, Stephen Jago, was subcontracted to Sedgman Limited, the plant’s Australian designer and builder.
“We’ve done many coal wash plant installations with Sedgman in the past and we have a very strong working relationship,” said Jago.
“They knew the quality of our work was high and they knew we could immediately provide the level of human resources required, so they came straight to us to run this project. Reaching the ‘lights on’ stage is significant because it means the high voltage reticulation is complete, the structure is in place, and power has been introduced into the main switchboard.”
O’Donnell Griffin’s role was to supervise and train the local tradesmen, ensuring the design specifications and quality standards were adhered to strictly.
“Mongolia is a new mining hotspot and the local tradesmen don’t quite have the necessary specialised skills yet,” explained Jago.
“Our engineers helped guide the local workers in their day-to-day tasks, giving them the skills and advice they needed to keep the project running smoothly. The plant is Australian-designed and needed to be built according to stringent specifications, so we needed to show the locals how to rig and wire the installation correctly.”
While O’Donnell Griffin has managed many remote and overseas projects, this one presented particular challenges because of unpredictable and extreme weather conditions as well as language and cultural barriers.
“The first two staff members to go to Mongolia were Mark Withers and Jacob O’Brien. They both gave up their Christmas and New Year holidays with their families to go from a sweltering Queensland summer to a freezing Mongolian winter,” said Jago.
“Temperatures fell to around minus 27 degrees C. Meanwhile, the guys were living in tiny huts heated by pot belly stoves. The food was unfamiliar and there were only a few English-speaking locals. There were days the guys couldn’t work at all because of blizzards or sandstorms.
“Maintaining morale was a definite concern, so we tried to make their working conditions as flexible as possible. They worked 28-day shifts followed by a 10-day holiday back home in Australia.
"It was a challenge, but all nine guys maintained a positive attitude – they were there to get the job done and they did that job safely and effectively. There were no injuries or other problems on site even though the weather conditions were so treacherous.”
Mark Withers and Jacob O’Brien were chosen to be the first to travel to Mongolia because of their highly specialised skills as engineers and supervisors. They were followed by an additional seven engineers. All nine workers have now returned to Australia.
“This was a $10 million installation. Each of our engineers supervised between 30 and 40 local tradespeople. It was an Australian design being installed to Australian specifications with Australian quality standards.
"Those standards were very different to what the local workers were used to. For example, while the Australians are used to bringing lots of heavy equipment like cranes and winches to get the job done, the Mongolians are more used to relying on pure manpower,” said Jago.
O’Donnell Griffin would normally use its own tradespeople on a job like this, but part of the project involved training the locals.
“There are a few key concepts that are second nature to O’Donnell Griffin employees but were less familiar to the local tradespeople,” said Jago.
“Safety was the first one. Our guys are used to examining situations, then quickly and effectively determining the safest way to proceed. They don’t take risks and they don’t get hurt.
"The second concept was quality. Doing it properly and getting it right, even if it takes a few seconds longer. Rigorously testing the system and maintaining quality assurance.
“It was a challenge to communicate those concepts through the language barrier because the vast majority of the local tradies didn’t speak English. We used interpreters and English-speaking supervisors where possible. It was a big challenge but our guys really pulled it off and the local workers proved they were more than up to the job.
“We recruited the team both internally and externally to make sure we got the right mix of skills, experience and attitude. We have a large pool of talent that we can call on to ramp up for jobs when we need them,” said Jago.
Since the fall of communism in 1991, Mongolia has seen the beginnings of a potentially huge mining boom. Australian companies are getting in on the ground floor and the geographical and population similarities between the two countries have seen natural synergies develop to the benefit of both nations.
GTSO Signs LOI to Excavate and Ship Rare Earths from 3 Sites in Mongolia to S. Korea
May 23 (4-traders) Green Technology Solutions, Inc. (OTCQB:GTSO) announced today that the company signed a letter of intent with Ar Erkhes LLC, to participate in a profit arrangement for the excavation and shipping of rare earth ore from Mongolia to South Korea.
According to the letter of intent, GTSO will perform due diligence toward a new profit participation agreement with Ar Erkhes for three rare earth mining sites in Mongolia. The companies plan to begin preparations to ship a 20-ton container of rare earth ore from these sites to Seoul for mineral analysis this week. Today, excavation of ore begins at the first of these sites, Ar Erkhes' Avdrant mine in the Bayandelger Soum of Mongolia's Tuv province. The minerals will be loaded for transport via rail to the international seaport of Vladivostok, Russia. From there, the ore will be shipped to South Korea.
The shipment will be the companies' first of many planned rare earth exports from Mongolia to South Korea, Japan and the U.S.
"We have been working hard for months to develop new sources of rare earths in Mongolia for export to the U.S. and her allies," said GTSO President and CEO John Shearer. "We plan to announce a completed PPA with Ar Erkhes very soon and to begin making regular shipments of rare earth ore around the world."
Ar Erkhes is a Mongolian trading and mining company located in the capital city of Ulan Bator. Last month, GTSO commissioned a new rare earth mineral assay that confirmed the presence of rare elements at the first of several Ar Erkhes mining properties that the company plans to develop in the Central Asian nation.
GTSO is planning the initial shipment to South Korea as the first step in gaining approval to sell rare elements to buyers there. Rare earths are critical to the manufacture of smartphones, automobiles and consumer electronics in addition to green energy technology. GTSO has already received inquiries from manufacturers worldwide, including buyers from conglomerates such as 3M and others.
"We were inundated with inquiries into the availability of Mongolian rare earth ore last week at the International Rare Earth Summit in China," Shearer said. "Demand for these critical metals has never been higher, and we are working quickly to hammer out the necessary agreements with Ar Erkhes to capitalize on these extraordinary market conditions."
GTSO Receives Great Interest from Rare Earth Buyers at International Summit
Executive will Travel from China to Mongolia Following Conclusion of International Rare Earth Summit 2011
May 18 (BUSINESS WIRE) Green Technology Solutions, Inc. (OTCQB:GTSO) received a multitude of inquiries from interested rare earths buyers and traders at this week’s International Rare Earth Summit 2011 in Hanzhou, China, said company President and CEO John Shearer.
Organized by the industry journal Asian Metals, the three-day summit assembled major international consumers, commodities traders and mining groups to plot the sustainable development of the global rare earths industry.Shearer said Tuesday that he spoke to numerous buyers and traders at the summit interested in purchasing rare earths from GTSO as soon as possible.
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<Mogi & Friends Fund A/C>
Historic +24.4%, Qtd -29.2%
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.
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Mogi
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"Mogi" Munkhdul Badral
Senior Client Manager / Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
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Sukhbaatar District 8 · Ulaanbaatar 14200 · Mongolia
CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
Disclosure/Disclaimer
CPS Securities, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions mentioned in correspondence from CPS International.
CPS International advise this email contains general information only and does not include advice. In preparing this communication, CPS International did not take into account the investment objectives, financial situation and particular needs of any person. As with any speculative mining company there are significant risks.
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