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Close: Mongolia Related ASX Listed Companies, June 21, 2011 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.041 | 0.001 | 0.040 | 0.042 | 0.041 | 0.043 | 0.040 | 2,708,552 | |
1.400 | 0.010 | 1.355 | 1.400 | 1.370 | 1.400 | 1.310 | 253,156 | |
0.240 | -0.010 | 0.240 | 0.250 | 0.240 | 0.240 | 0.235 | 60,000 | |
0.530 | 0.000 | 0.520 | 0.530 | 0.530 | 0.555 | 0.490 | 1,478,336 | |
0.010 | 0.000 | 0.009 | 0.010 | 0.009 | 0.010 | 0.009 | 535,000 | |
0.005 | 0.000 | 0.004 | 0.005 | 0.000 | 0.000 | 0.000 | 0 | |
0.061 | -0.002 | 0.060 | 0.061 | 0.065 | 0.066 | 0.061 | 7,354,802 | |
0.140 | -0.005 | 0.135 | 0.140 | 0.140 | 0.140 | 0.140 | 19,000 | |
1.045 | 0.035 | 1.030 | 1.045 | 1.040 | 1.065 | 1.020 | 703,519 | |
0.230 | -0.005 | 0.235 | 0.240 | 0.235 | 0.235 | 0.230 | 84,776 | |
0.500 | 0.100 | 0.350 | 0.490 | 0.500 | 0.500 | 0.500 | 5,000 | |
0.400 | 0.015 | 0.395 | 0.400 | 0.400 | 0.400 | 0.385 | 169,028 | |
20.950 | 0.280 | 20.910 | 20.950 | 20.800 | 20.950 | 20.670 | 614,466 | |
78.640 | 1.340 | 78.610 | 78.640 | 78.670 | 78.750 | 78.140 | 2,112,499 | |
42.000 | 0.640 | 41.990 | 42.000 | 41.950 | 42.110 | 41.760 | 12,160,699 | |
Source: asx.com.au
Rio to raise stake in Ivanhoe to 46.5 percent
* Rio to exercise warrants to up stake in Ivanhoe
* Can lift stake further to 49 percent Rio Tinto
LONDON, June 21 (Reuters) - Global miner (RIO.L:) (RIO.AX:) will raise its stake in Ivanhoe Mines (IVN.TO:) to 46.5 percent from 42 percent after exercising outstanding warrants, a move that will allow it to name an extra board member.
The warrants entitle Rio to acquire 55.1 million shares in Ivanhoe at a cost of $9.10, for a total cost of $502 million, it said on Tuesday. Ivanhoe's US-listed shares (IVN.N:) closed on Monday at $22.5.
Ivanhoe is developing the Oyu Tolgoi copper-gold-silver project in Mongolia with Rio. The project is 66 percent-owned by Ivanhoe, with the remainder owned by the Mongolian government.
Rio Tinto can increase its ownership in Ivanhoe further to 49 percent on or before 18 January 2012 by exercising options.
"Depending upon its assessment of Ivanhoe's business, prospects and financial condition, the market for Ivanhoe's securities, general economic and tax conditions, and other factors, Rio Tinto will consider availing itself of its rights to acquire additional securities of Ivanhoe," Rio said.
MEC: UNUSUAL PRICE AND TRADING VOLUME MOVEMENTS
June 21, Mongolia Energy Corporation Limited (HK:276) --
This statement is made at the request of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).
Mongolia Energy Corporation Limited (“MEC”) has noted the recent increase in the trading price and volume of its shares and wishes to state that MEC is not aware of any reasons for such increase.
The board of directors (the “Board”) advises that MEC has been in discussion with an independent third party relating to a possible co-operation for developing the concession areas of MEC in Mongolia other than the Khushuut Coking Coal Project which may include a possible subscription of new shares of MEC by such independent third party. No forms or terms have been agreed with such independent party so far. Apart from this, MEC is also considering other potential resources projects which may have synergy to our existing business operation. As the matters referred herein may or may not materialize, please exercise caution in dealing with the shares and securities of MEC.
The CEO of MEC has recently issued a Technical Summary and the contents are as follows:-
“As mentioned in the 2010 interim report, MEC has commenced trial production during Q4 of 2010 and has since continued to ship batches of raw coking coal to our customer, Xinjiang Bayi Steel International Trade Co Ltd (Baosteel Bayi).
Baosteel Bayi processed MEC’s Khushuut coal in their existing wash plant facilities and is pleased with the coal quality from our Khushuut mine site. The test results, summarized below, show that MEC’s coal is a high quality coking coal with medium ash, low sulphur content and low volatile matter that can be used for coke production.
Ash% | 9.5 – 11.5 |
Volatile Matter% | 19 – 22 |
Sulphur% | 0.42 – 0.66 |
We are pleased to advise interested parties that Baosteel Bayi is satisfied with the quality of the washed product produced from MEC’s Khushuut raw coal. This coal is considered as a prime coking coal for coke production. We will continue to ramp up our production, and will provide more operational updates in the upcoming results announcement for the financial year ended March 31, 2011.
Since the initial exploration program in 2007, the Company has completed several additional exploration programs in 2008, 2009 and in 2010. The primary purpose of these programs was to improve the understanding of the geological structure and expected coal quality. John T Boyd Company has been involved throughout the exploration work and has completed an updated geological model of the Khushuut coal deposit in May 2011.
The updated resource estimate for in-place coal shows a 5.4% increase from the original estimate in June 2008.
Resources Estimate | In-Place Tonnes (’000) | ||
Coal | Parting | Seam | |
June 2008 | 134,170 | 15,067 | 149,237 |
Update – May 2011 | 141,456 | not estimated | not estimated |
Increase | 5.4% | n/a | n/a |
The additional exploration data increased the reliability of the estimate such that the resources in 2008 were classified as indicated (according to JORC Standards) and the revised estimate were classified as 44,504,000 tonnes (31.5%) measured and 96,953,000 tonnes (68.5%) indicated.
The coal resources include both hard and semi-hard coking coal with expected washed product quality specifications (air dried basis) of: 10-11% ash, less than 0.5% sulfur and 16-22% volatile matter which is consistent with the actual product after washing the recently shipped raw coal.”
Apart from the above, the Board confirms that there are no negotiations or agreements relating to intended acquisitions or realizations which are discloseable under rule 13.23 of the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”), and neither is the Board aware of any matter discloseable under the general obligation imposed by rule 13.09 of the Listing Rules, which is or may be of a price-sensitive nature.
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MEC closed up 26.882%
Mongolia Energy Gains Most in 2 Years as Coal Deposits Rise
June 21 (Bloomberg) -- Mongolia Energy Corp., a mineral and energy explorer, advanced the most in more than two years in Hong Kong trading after announcing a 5.4 percent increase in its coal deposits.
The shares rose 27 percent to HK$1.18, the biggest gain since May 20, 2009. That compares with the 1.2 percent increase in the benchmark Hang Seng Index.
The energy explorer, which operates in Mongolia and China’s western Xinjiang province, said in a statement dated June 17 that coal resources rose to 141,456 metric tons as of last month from 134,170 tons in June 2008.
Shares of the company have fallen 51 percent this year, compared with the 6.7 percent decline in the Hang Seng Index.
Mongolia Energy said on June 1 that it may report a loss for the year ended March 31 because of increased staffing, financing costs and losses from trading investments. The energy explorer reported a loss of HK$317 million ($41 million) in the previous year.
Petro Matad to kick off five-well testing programme in Mongolia
June 21 (Interactive Investor) Mongolian oil explorer Petro Matad (MATD) is set to commence a testing programme on the five wells drilled to date on the Davsan Tolgoi discovery.
The AIM-listed company said the workover rig and testing equipment have been contracted to the end of calendar year 2011 and testing of the wells - each of which encountered hydrocarbons - will continue through the year.
Chief executive Douglas McGay said the most significant event for the company last year was the discovery of oil in its first exploration well in Davsan Tolgoi, on Block XX, in July. The company went on to complete a further two wells in 2010, with a further two drilled in 2011.
The company said drilling on the prospect continues with a full programme ahead, and results to date have greatly improved its understanding of the geology of the Davsan Tolgoi prospect, with the February announcement of an increased resource estimate.
In addition to the ongoing drilling programme in the north-eastern part of the Block, Petro Matad has been making headway in the earlier-stage exploration of the rest of the block. It recently completed a 2D seismic acquisition programme focusing mainly on the five unexplored basins located in the central and southern portions of the block.
Furthermore, Petro Matad took last year to mount an aggressive exploration programme on the frontier Blocks IV and V, helping it to accumulate gravity coverage, surface geological studies, seismic profiles and 1,600 metre drill hole.
However, the company, which recently celebrated its third anniversary of its admission to AIM, widened its losses from $5.1 million in 2009 to $16.1 million at the close of 2010 as a result of the much higher exploration costs.
Westhouse Securities analyst Peter Bassett said: "A positive results statement from Petro Matad. We particularly note the intention to drill year round on Block XX and the positive statement on the prospectivity on Blocks IV and V. In addition, we highlight the strong cash position at the end of the year. We reiterate our 'buy' recommendation on the stock, with a target price of 341p."
Link to 2010 Results Announcement, June 21
Related:
Petro Matad posts wider net loss, shares slide – ShareCast News, June 21
Petro Matad to start well testing in Mongolia shortly – Proactive Investors UK, June 21
MUB closed up 10c to A$0.50 on light volume
MRC: Company Update
June 21, Mongolian Resource Corporation Limited (ASX code: MUB, MUBO) (“MRC” or “Company”) is pleased to provide an update to recent operational activities.
• MRC is currently targeting a maiden resource at the Blue Eyes and Sujigtei Gold Deposits, as well as progressing development of key infrastructure for the commencement of underground mining. Previous diamond drilling at the Blue Eyes Deposit has returned highlight gold assay results of:
o BEM004: 1 metres @ 15.8 g/t Au from 54 metres
• Mongolian Standard Resource and Reserve Feasibility Studies for development of these high grade gold deposits have commenced.
• Two mining licenses have been granted and the statutory approvals process to enable the recommencement of mining is at an advance stage.
• Exploration for near surface open pittable gold continues to achieve highly encouraging results (average of 1.0 g/t from all 319 samples) from outcropping quartz stockwork. Recent highlight rock chip gold assay results are as follows:
o 18.8 g/t Au, 17.9g/t Au, 9.0g/t Au, 7.8g/t Au
MRC is a newly formed Mongolian based diversified resource company engaged in the acquisition, development and operation of resource properties in Mongolia. The major assets include:
Ø The Blues Eyes (85%) and Sujigtei (90%) Gold Projects
Ø The Bargilt Magnetite Iron Project (100%)
Ø The Doshin Coal Project (100% interest)
Ø Alluvial Gold Projects – Berleg, Selenge, Ovorhangay, Omnogovi, Dornogovi, Bulgan
Mongolia has undergone a recent period of increased mining and infrastructure investment and strong economic growth. As a result of this increased investment in the under developed mining and resources sector Mongolia was one of the fastest growing countries in the period of 2004 to 2008 and has successfully overcome the financial crisis of 2009. With a quality pipeline of mining projects and experienced local management team, MRC is now poised to benefit from this new investment frontier.
MRC’s immediate focus is on achieving its core objective of defining and validating the high grade gold resources at the Blue Eyes and Sujigtei Gold Deposits and to upgrade the gold processing facilities at Blue Eyes to enable the recommencement of gold mining and production in 2012.
Blue Eyes Gold Deposit
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Sujigtei Gold Deposit.
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Mongolia coal exports to hit 25 mln T this year -official
* Total exports seen reaching 50 mln T by 2015
* Infrastructure costs seen at minimum $3.5 billion -official (Adds production forecasts, details)
ULAN BATOR, June 21 (Reuters) - Mongolia's coal exports are expected to keep posting exponential gains and reach some 50 million tonnes by 2015, a government official said on Tuesday, though infrastructure constraints are seen remaining a hurdle for the country's booming mining sector.
Total coal exports are expected to jump 50 percent from a year ago to 25 million tonnes this year and rise further to between 30-35 million tonnes in 2012, A. Erdenepurev, general-director of the fuel policy department at Mongolian's Ministry of Mineral Resources and Energy, told Reuters on the sidelines of an industry conference.
Mongolia's coal exports are expected to reach 50 million tonnes as the eastern section of the huge Tavan Tolgoi mine comes onstream by 2014 to 2015, he said.
"Looking at our production growth over the past few years, these short-term forecasts can be quite conservative," Erdenepurev said.
Mongolia's coal sector, which accounts for a third of the country's earnings, has grown rapidly in the past few years to become an important coking coal supplier to China.
However, a severe lack of roads, rail lines, electricity, water and skilled workers in the impoverished nation of 2.7 million people pose formidable challenges to Mongolia's mining boom.
"There are 5,000 trucks per day on the road linking the southern Gobi region to the Chinese border right now and that number is going to grow and cause congestion," Erdenepurev said.
"There is a serious need for new infrastructure but it also demands huge investments."
Estimated costs to build proposed railways, road, water and power stations were at least $3.5 billion -- accounting for more than half of the country's gross domestic product, Erdenepurev said.
TAVAN TOLGOI BID RESULTS SOON
Separately, Erdenepurev said bid results for developing the western section of the Tavan Tolgoi deposit are expected to be released by July 1, before the spring session of the parliament ends.
The government has already shortlisted six bidders out of a list of 15 to develop the mine, including ArcelorMittal , Vale , Xstrata , U.S. Peabody and a consortium of Chinese energy firm Shenhua and Japan's Mitsui & Co.
Another consortium, led by South Korean state body Korea Resources and including POSCO , utility KEPCO , trading firm LG Corp, Daewoo International, Russian Railways, and Japanese trading houses Itochu Corp, Sumitomo Corp, Marubeni Corp and Sojitz Corp, is also in the running.
The government had said in April it would select more than one winner, possibly three to four bidders, to develop Tavan Tolgoi.
Mongolia's energy reliance on Russia, China a key risk
* Imports 90 pct of petroleum products from Russia
* Power imports set to rise steeply
* Russia cut diesel exports in April
ULAN BATOR, June 21 (Reuters) - Mongolia's growing dependence on neighbouring Russia and China for fuel and power poses a major risk to its booming mining sector that investors need to consider, foreign business executives said on Tuesday.
Landlocked Mongolia, which hopes to raise some $25 billion over the next five years to build roads, railways and mining towns, imports about 90 percent of its petroleum products from Russia, while the rest comes from China.
The sprawling country, which produces only about 4 billion kilowatt hours of power annually, already relies on imports from its northern neighbour Russia for around four percent of its current consumption and is in talks to import power from China.
Officials say electricity import needs are set to rise sharply.
Reliance on essential energy supplies makes Mongolia vulnerable to supply shocks and price rises, especially as Russia has been known to turn off supply taps, for example during price disputes with Ukraine, according to Paul Aston, a partner at law firm Holman Fenwick William, which helps conduct risk assessments for mining companies.
This vulnerability has been felt acutely this year, after Russia cut oil and diesel exports to Mongolia in April due to shortages on its own domestic market, a move that crimped mining activity while driving up pump prices and bus fares. [ID:nN10100880]
The continued shortfall has come at a critical time, with diesel demand from construction, agriculture and mining peaking during the summer months when productivity is at its peak.
According to local media, the diesel shortage has forced the Mongolian government to order a temporary halt of diesel supplies to some miners, suspend some railway operations and to dip into its emergency stockpile.
Supplies from Russia have yet to resume. Some miners have now resorted to refuelling their trucks from China and the Mongolian government has also been buying small amounts from China, although they are 40 percent more expensive than those from Russia.
"There is a real shortage of diesel...and the impact is felt across wide sectors in the country, especially miners," said Jim Dwyer, Executive Director of the Business Council of Mongolia, representing foreign firms.
"Mongolia needs its own refinery and that's the only way it can break out of its dependence on Russia for its fuel needs."
NEW REFINERIES, POWER PLANTS
Mongolia has suffered numerous fuel shortages since the 1990s after the dismantling of the communist system and the government has drawn up plans to build its own refineries.
The earliest start of its first refinery is set in the autumn of 2014, under a plan by Japan's Marubeni Corp (8002.T:), Toyo Engineering Corp (6330.T) and Mongolian Mongol Sekiyu to build a $600-million plant in Darkhan city about 200 km (124 miles) north of Ulan Bator.
"These sort of fuel shortages can threaten project timeline and push up mining costs, so it's a risky business. There may be plans for a refinery, but that will only come three years later and its not uncommon for to see construction delays," said a mining executive who asked not to be identified.
Mongolia uses about 1 million tonnes of petroleum products annually, with diesel accounting for up to 60 percent of such consumption.
To feed growing demand for electricity from miners, the Mongolian government is looking to build new power plants in the south Gobi region and as well as near the massive Oyu Tolgoi copper-gold mine project.
The government has also given approval for Oyu Tolgoi investors Rio Tinto (RIO.AX:)(RIO.L:) and Ivanhoe Mines (IVN.TO:) to build an electricity line to the Mongolia-China border to import power from China.
MMC closed up 0.42% to HK$9.57
MMC: POLL RESULTS OF ANNUAL GENERAL MEETING HELD ON 21 JUNE 2011
June 21, Mongolian Mining Corporation (HK:975) -- The Board is pleased to announce that all ordinary resolutions proposed at the AGM were duly passed by way of poll.
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Gal Undesten delivers demand note to seven mining companies
June 21 (news.mn) Gal Undesten Union yesterday told journalists that it has delivered demand notes to seven mining companies in Selenge and Darkhan-Uul aimags in the last two weeks. Of them, Puraam LLC in Mandal soum of Selenge aimag has stopped its activity and Buurgent LLC in Bayangol soum has said it will not mine gold. The movement is waiting for a reply from Centerra Gold Mongolia LLC in the Gatsuurt area of Selenge aimag and Peninsula Mining LLC in Bayangol soum.
The companies in Darkhan-Uul aimag to receive the note are Altan Khundii LLC, Zunma LLC and Alfa Orgil LLC in Shariin Gol soum. Gal Undesten also said they yesterday went to Ultiin Gold LLC in Uyanga soum of Uvurkhangai aimag.
Mongolian companies will execute Chinese loan projects
June 21 (news.mn) Minister for Finance S.Bayartsogt yesterday told journalists that of the 10 agreements signed during Prime Minister S.Batbold’s official visit to China between June 13 and 17, six were related to the economy.
One of these was on a Chinese Government soft loan of USD500 million that would be spent in the agriculture, education, health and infrastructure sectors. It was agreed that all work to be implemented with the loan would have to be undertaken by Mongolia-China joint ventures. Projects executed with previous Chinese loans were always implemented by Chinese companies.
The Chinese Government has also given a grant of 60 million yuan to be spent on repairing Beijing Street in Ulaanbaatar, the address of the Chinese embassy. It will also be used to build accommodation for students in Nalaikh district and other apartments.
Boeing, MIAT Mongolian Airlines Announce Order for 737-800 and 767-300ER Jetliners
Boeing celebrates 8,888th order for the 737 family
WASHINGTON, June 20, 2011 /PRNewswire via COMTEX/ -- Boeing and MIAT Mongolian Airlines have announced an order for two Next-Generation 737-800 airplanes and one 767-300ER (extended range) airplane. The order, valued at $245 million at list prices, marks the first time in more than two decades that MIAT Mongolian Airlines will extend its route network by purchasing Boeing airplanes instead of leasing them.
The agreement was signed by Kim Pastega, vice president and general manager of the 767 Program, Boeing Commercial Airplanes, and Orkhon Tseyen-Oidov, president and CEO of MIAT Mongolian Airlines, at the U.S. State Department in Washington, D.C., in the presence of Tsakhia Elbegdorj, President of Mongolia, and Gary Locke, the U.S. Secretary of Commerce.
"We are making a tremendous step forward with this order, and the Next-Generation 737-800 and 767-300ER airplanes are the ideal airplanes for us to expand our existing fleet to offer more scheduled and charter services from Mongolia to major cities in Asia and Europe," said Tseyen-Oidov. "The Next-Generation 737-800 has already proved to be a great success with us through its advanced technology and high operating efficiency, and we look forward to realizing the benefits of the 767-300ERs comfort, range and increased payload capabilities for our long-haul flights."
"MIAT Mongolia Airlines' choice of both the Next-Generation 737-800 and 767-300ER shows its confidence in the Boeing 150- to 300-seat product family, which features incredible economics and operational capability over competing jetliners," Pastega said. "We are committed to MIAT Mongolia Airlines' future success by delivering the best airplanes and providing superior service."
The latest members of the Boeing 737 family -- the 737-600/-700/-800/-900ER models -- continue the 737's popularity and reliability in commercial jet transport. Boeing Flight Services will provide pilot and technician training for Mongolian Airlines' Next-Generation 737 and 767 crews.
The Boeing 767 family offers clean, quiet, fuel-efficient airplanes that provide maximum market versatility in the 200- to 300-seat market. The Boeing 767 family includes three passenger models -- the 767-200ER, 767-300ER and 767-400ER -- and a medium widebody freighter, which is based on the 767-300ER fuselage.
Headquartered at Chingis Khaan International Airport in the Mongolian capital of Ulaanbaatar, MIAT Mongolian Airlines is the country's national flag carrier. It has been operating for more than 55 years.
GTSO Continues Mongolian Export Preparations as Rare Earth Prices Double
June 20, SAN JOSE, Calif.--(BUSINESS WIRE)--Green Technology Solutions, Inc. (OTCQB:GTSO) continues preparations to send core samples from three Mongolian rare earth mining sites to South Korea for analysis as prices on heavy rare metals more than double due to China’s tightening control of rare earth mining, production and exports.
U.K.-based trade publication Industrial Metals reported last week that rare earth minerals dysprosium oxide and europium oxide, used in high-tech applications from nuclear reactors to smartphones, rose by more than 100 percent since the beginning of the month. The incredible surge in rare earth prices is credited by many analysts to China’s efforts to tighten exports. The Wall Street Journal reported last week that China is building a strategic reserve of the rare elements, a plan that may give the Asian superpower increased influence over global rare earth prices and supplies in a sector it already dominates.
The move to build reserves comes even as China’s rare earth exports are shrinking in the face of rising demand. Currently, China controls more than 95 percent of the world’s supplies of rare earth, which include some of the most sought-after materials in modern manufacturing. The heavy elements are critical to the production of green technology solutions such as wind turbines, hybrid-car batteries and solar panels as well as military applications such as night-vision goggles and laser-guided weapons.
GTSO and other mining developers around the world have responded to reductions in Chinese export quotas by working to begin rare earth production elsewhere. Earlier this month, GTSO announced that it signed a Profit Participation Agreement (PPA) with Mongolian mining and trading company Ar Erkhes, LLC, to facilitate the mining of rare earths at three sites in the developing Asian nation. The company is currently making preparations to send core samples from each mining site to South Korea’s state-run resources development company KORES for analysis to assure potential buyers of the quality and density of the rare elements found within.
Once the analysis is complete, GTSO will move forward with plans to capitalize on the international explosion in rare earth prices by shipping Mongolian rare earths via rail to the international seaport of Vladivostok, Russia, for shipment to South Korea. For more information on GTSO’s export plans, please visit http://www.rareearthexporters.com.
GTSO is also in negotiations to develop rare earth resources in the Republic of Congo, Kenya, Botswana and other nations in southern Africa. Green Technology Solutions, Inc. commercializes clean and renewable mining technology and products in a sector that includes General Dynamics Corp. (NYSE:GD), MV Rare Earth/Strategic Metals (NYSEArca:REMX), 3M Co. (NYSE:MMM) and General Electric Co. (NYSE:GE).
MPP group agrees to combined election structure
June 21 (news.mn) The Chief of the MPP group in Parliament, D.Lundeejantsan, told media that yesterday’s meeting of the group agreed with the decision of the Managing Council of the MPP that members of Parliament should be elected under a system that calls for both direct election and proportional representation.
The MPP would prefer 24 MPs to be elected in the first-past-the-post method, while the 52 others will be elected on the basis of total votes polled by parties. The DP prefers the numbers to be 26 and 50, and the MPP has set up a working group comprising N.Enkhbold, D.Lundeejantsan, Ts.Davaasuren and J.Sukhbaatar to conclude an agreement with the DP.
DP Faction in the Parliament held meeting
June 21 (business-mongolia.com, source: unstated) Yesterday’s meeting of the DP faction in the Parliament discussed draft law on Human Development fund presented by Deputy Speaker G.Batkhuu, MP N.Batbayar and MP S.Byambatsogt. The DP faction in the Parliament supported a draft law which allows herders and elders to pay their loans from the Human Development Fund money.
The other main issue discussed was finding the funds for the 1400 km railways that will be built. This project should be organized by the “Mongolian Railway” JSC. In order to find investment, the Government proposed an idea to sell 49% of the total shares of the Company. According to the current law they are only eligible to sell their shares in the domestic market. The DP group did not support this proposal because they believe it is more beneficial to sell shares in international markets.
L.Gantumur, Deputy Head of the DP faction said that he ordered the officials at the National Registration Office to fasten their work on providing every citizen with electronic ID card. The DP faction also discussed about funding of the automatic machines that will be used for the 2012 election. 24 billion MNT is to be spent on those machines according to the State Budget.
DRAFT LAWS SUBMITTED
June 21, Ulaanbaatar, Mongolia, /MONTSAME/ Parliamentarians J.Sukhbaatar, Z.Altai, E.Bat-Uul, Ts.Monkh-Orgil and Ch.Saikhanbileg submitted Tuesday a draft law on election automate system to the Speaker D.Demberel.
The MPs say that the draft law reflects clauses on refining upon activities of the elections such as releasing list of electors, collecting and counting votes, announcing the results, to make the process prompt and to stop any attempts to falsify the votes.
The same day, a draft amendment to the law on freeing some areas from the protected area status was submitted by L.Gundalai, D.Odbayar, B.Batbayar, D.Arvin and other MPs.
Each soum will get money for SME development
June 21 (news.mn) The Chief of the SME Office, Ts.Nyam-Osor, has told the Uls Turiin Toim newspaper that the MNT24 billion in the Production Development Fund will be spent on setting up and strengthening SMEs in soums all over the country. Each soum will be allocated between MNT50 million and MNT265 million, depending on its population. The loans will carry 3% interest and will be for three years.
The SME Office has so far distributed between MNT400 and 500 million in the aimags. Nyam-Osor said some 1,200 organizations have benefited from the exemption from customs duty and VAT to equipment imported by SMEs for their use. All aimags have established brick factories, and bread and 20 other types of goods are now extensively produced in the countryside. More vegetables are also being grown.
The SME Office has a list of 256 items that can be produced by SMEs in the countryside, and has helped set up 196 factories in the last two years. Repayment rates have been very good in the countryside and many entrepreneurs who took and repaid loans between MNT10 and 20 million are demanding up to MNT70 million.
2,880 households to be urgently moved
June 21 (news.mn) Khan-Uul and Songinokhairkhan districts of Ulaanbaatar have taken up a project to quickly relocate 2,880 households to areas free from threat of flooding.
MNT34.87 billion will be spent on their removal, payment of compensation, and establishing the new settlement.
The district administrations also plan to repair protective embankments, install a drainage system, and place warning signs at the right places.
Citizens can ask for land in three districts of Ulaanbaatar
June 21 (news.mn) With no land available for distribution in the other districts of Ulaanbaatar, citizens can now apply for free land for household use in only Khan-Uul, Nalaikh and Songinokhairkhan.
The offer will close in May, 2012.
Citizens who have not been allocated land should apply to the land office of a district. Citizens of Ulaanbaatar can own land in any soum and aimag but rural citizens can claim land only in their own aimag.
MONGOLIA WILL RECEIVE GRANT-IN-AID FROM JAPAN
June 21, Ulaanbaatar, Mongolia /MONTSAME/ An exchange note between Governments of Japan and Mongolia and an aid agreement concluded with Japan's international cooperation agency /JICA/ have been signed at the Foreign Affairs Ministry of Mongolia.
Aims are to implement here a project “Improving water supply of Ulaanbaatar city”, costing 2 million 75 thousand US dollars, and a project “Scholarship for human resources development”, costing 41 million 3 thosand US dollars.
The documents were signed June 21 by Mongolia's Foreign affairs Minister, G.Zandanshatar, ad interim charge d' affaires of Japan's Embassy to Mongolia, K.Kino, and a head of the Resident representative of JIKA to Mongolia, T.Isogai.
Forget the Feds like They've Forgotten You
Everybody's Got Problems, Profit from the Solutions
June 20 (Wealth Daily, by Christian A. DeHaemer) I think I've finally found something more annoying about air travel than screaming infants, credit-only beverage purchasing, extra fees for checked baggage and travelers who insist on cramming their 300 lb bodies into seats designed for teenage anorexics: Obama groupies.
As I write this to you from a mercifully deserted bar at Seoul's Incheon International airport, echoes of the pair sitting behind me for the 13 hour hop from LA continue to ring in my head.
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If you want to see bad, take a good look at the chart on the right:
What you're looking at is the Mongolian Stock Index for the past year.
After an amazing 9 months, where the Mongolian Stock Exchange saw a shocking 330% expansion, a pullback of 43% in the last two months has undone most of the good that came since last summer.
And the pullback shows no sign of slowing.
The reason behind it is fairly simple.
Among other things, a recent 44% tax on exports by the Russians – including oil, which Mongolia relies on for 90% of its domestic supply – has ravaged the national economy with added costs on everything requiring crude for production and transportation.
It's what happens when one nation finds itself at the mercy of another more powerful, better supplied nation.
With no bargaining power, the Mongolians were left helpless, and watched their short-lived prosperity go right down the tubes.
It's actually part of the reason I find myself sipping rum and cokes right now as I await my connection to Ulan Bator. The place is in such a state of disarray right now they're actually flying in guys like me to tell them what to do, or at the very least, what to expect to happen next.
So where does this leave you, me, and the Obama pep squad on the Korean Air 747 I just deboarded?
Well, consider it a warning... A proverbial canary in the mine.
Because while the U.S. cannot really compare to the helplessness of a landlocked $12 billion GDP nation of less than three million inhabitants, our level of reliance on nations such as China and India for cheap goods, and Canada, Venezuela and the Arab Middle East for oil is putting us more and more at risk for the exact same transformation Mongolia currently faces.
With a hundred times the population, and more than one thousand times their economic mass, when we fall, it will not be some half-page story on the fourth page of the New York Times.
<Mogi & Friends Fund A/C>
Total +8.5%, Qtd -38.2%
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.
…
Mogi
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"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
P Please consider the environment before printing a copy of this email.
Central Tower · 12th Floor · Left Wing · 2 Sukhbaatar Square
Sukhbaatar District 8 · Ulaanbaatar 14200 · Mongolia
CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
Disclosure/Disclaimer
CPS Securities, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions mentioned in correspondence from CPS International.
CPS International advise this email contains general information only and does not include advice. In preparing this communication, CPS International did not take into account the investment objectives, financial situation and particular needs of any person. As with any speculative mining company there are significant risks.
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