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Close: Mongolia Related ASX Listed Companies, July 18, 2011
Hunnu Coal granted mining licence for Tsant Uul Project, Mongolia
July 18 (Fortbridge) Hunnu Coal (ASX: HUN) announces that the Mineral Authority of Mongolia has granted a mining licence MV – 016872 for the Tsant Uul Project, covering total area of 69,233 ha.
· Targeting commencement of mining in the last quarter of 2011.
· Targeting initial production of 1.5Mt of coal in 2012 and 3Mt in 2013.
· Owner operator mining fleet currently being purchased with initial purchases including six CAT 773 Dump Trucks and a Hitachi 1200 excavator. Additional purchases underway.
· Exploration and development drilling now totaling 56,101 metres of diamond drill core and RC since discovery of the Tsant Uul Deposit in middle of 2010.
· Study for a coal haulage access road from Tsant Uul Mine site to the existing coal haulage road has been completed and is currently under Government approval process.
· An update of the Tsant Uul Project JORC Resources is being completed. The Company’s exploration target for the Tsant Uul Project is for 150 – 200Mt.*
· Final test work and off take agreements progressing well.
· New Coal discovery 7km north of the Tsant Uul Deposit, with drilling currently underway.
The Tsant Uul Project mining licence has been granted for an initial term of 30 years with an option for twenty years extension twice, providing a total of 70 years of mining operations.
The Tsant Uul Project is located in the World Class South Gobi Coal Province of southern Mongolia, approximately 40km to the south of the giant Tavan Tolgoi Coking Coal Deposit. The Tsant Uul Project has a current JORC compliant resource of 90 Mt, with 61Mt in the Measured and Indicated categories.
Rencap: Hunnu Coal (HUN AU) - On track for 4Q11 production
July 18 (Renaissance Capital) – Company Update: Equity Research: Metals and Mining: Mongolia
· Mining licence granted. HUN announced on 18 July 2011 that it has been granted a mining licence for its Tsant Uul project, which is located ~50 km south of Tavan Tolgoi. The company continues to expect first production of a semi-soft coking coal in 4Q11 with RoM production of 1.5mnt in 2012E and 3mnt in 2013E. Our forecasts are more conservative with first production in 1Q12 and production of 1.0mnt in 2012 and 2.5mnt in 2013. HUN intends to operate Tsant Uul itself and has commenced fleet purchases. Government approval for a ~40 km haul road linking to existing infrastructure is awaited. We forecast capex of USD60mn versus company guidance of USD20mn. Tsant Uul accounts for ~USD500mn of our USD640mn HUN NPV and the progress made is hugely positive.
· Valuation attractive. HUN is trading on an EV/resource metric of just USD0.60/t, versus an average for all Mongolian coal producers of USD4.99/t, but if the company achieves the lower range of exploration targets at Tsant Uul and Altai Nuurs this would fall to just USD0.44/t. EV/resource metrics are imperfect, as they ignore coal quality and access to infrastructure, but if the market continues to so heavily discount HUN, we believe a trade sale of assets is a possibility. We reiterate our BUY rating and AUD2.20 TP, equal to our NPV.
· Next catalysts. HUN has significant near-term catalysts. We believe resources will be upgraded materially; the Tsant Uul resource could more than double from 90mnt to 150-200mnt and Altai Nuurs has a target of 250-500mnt. HUN has also indicated it is in advanced discussions regarding offtake agreements for its Unst Khudag and Tsant Uul projects. Finally, we believe that Banpu (BANPU TB) is likely to increase its holding above the current 12.39%.
TVN Corporation shares soar 74% on 137m thick coal sequence in central Mongolia
July 18 (Proactive Investors Australia) TVN Corporation (ASX: TVN) has caught the markets attention today after the first hole at the Nuurst project in central Mongolia intersected a 137 metre thick coal system in a down hole.
The market has applauded the result and by mid-afternoon trade TVN Corporation is changing hands at $0.061 - a 74% increase on the day.
What has helped spark the investor interest is the exploration target at Nuurst of 50 to 100 million tonnes assumed a coal thickness of just eight metres.
The happiest investors will be the participants in the placement at $0.02 earlier in the month.
Nuurst is statically located just six kilometres from existing rail infrastructure, providing low cost access to the key coal export markets of China, South Korea and Japan.
What is so fascinating about exploration and geological understanding in Mongolia is the lack of it, with an estimation that only three quarters of the country has been mapped to a scale of 1:200,000.
The underdeveloped and general lack of infrastructure in the country won't present much of a problem for TVN Corporation at this exploration stage.
Boosting the coal possibilities even higher for Mongolian focused companies, the country has coal reserves estimated at over 150 billion tonnes.
C@ Limited Broadcast
July 18, C@ Limited (ASX:CEO) --
C@ Limited (“CEO”) provides the opportunity to listen to an audio broadcast with the Company’s Managing Director, Mark Earley, in a presentation on “C@ completes due diligence drilling in Mongolia”
Creation of new listed Mongolian copper-gold company
July 18, Origo Partners Plc ("Origo" or "the Company", LON:OPP) is pleased to announce that Toronto listed Brazilian Diamonds Limited ("BZD"), has completed its acquisition of Origo's interest in Kincora Group Limited ("Kincora Group"). Following the transaction, Origo will hold approximately 34.8 per cent of the outstanding share capital of BZD, which will be renamed Kincora Copper Limited ("Kincora Copper").
As a result of the transaction, Kincora Copper will own a 75 per cent interest in the Mongolian Bronze Fox copper-gold prospect, located close to the world class OyuTolgoi copper deposit and near to the Chinese border. Kincora Copper will focus on the development of Bronze Fox and acquiring other copper and gold exploration and development projects in Mongolia.
In conjunction with the acquisition, Kincora Copper has raised an additional C$13.6 million (to which Origo and its affiliates contributed C$0.5 and C$1 million respectively). Kincora Copper will be Origo's primary vehicle for developing copper and gold prospects in Mongolia. Kincora Group's exploration campaign will continue to be managed by dedicated Origo personnel.
Commenting on today's announcement, Chris Rynning, CEO of Origo said:
"This transaction will enable us to rapidly redeploy capital into other opportunities following our initial investment in Kincora Group less than a year ago whilst also converting our holding in a private company into shares in a publicly traded vehicle. We remain excited about the potential of the Bronze Fox prospect and believe that the enlarged company will be in a strong position to further develop the deposit whilst also capturing other significant opportunities in the Mongolian mining sector."
Kincora Copper Limited Closes Transaction with Origo Partners plc
VANCOUVER, CANADA--(Marketwire - July 18, 2011) - Kincora Copper Limited (TSX VENTURE:KCC) (the "Company") - Further to its news releases of April 14, 2011 and June 20, 2011, the Company is pleased to announce the closing of the transactions (the "Transactions") contemplated by the share purchase agreement with Origo Partners plc ("Origo"), an AIM-listed company, as more particularly detailed in the filing statement of the Company dated June 28, 2011, a copy of which is filed on SEDAR at www.sedar.com. In connection with the closing of the Transactions the Company has changed its name from Brazilian Diamonds Limited to Kincora Copper Limited (TSX VENTURE:KCC).
Lucky Strike Commences NI 43-101 on Mongolian CN Coal Properties
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2011) - Lucky Strike Resources Ltd. ("Lucky Strike" or the "Company") (TSX VENTURE:LKY) announces that it has retained Norwest Corporation ("Norwest") in Salt Lake City, Utah, USA to prepare a Canadian National Instrument 43-101 ("NI 43-101") compliant Technical Report on the CN Coal Properties covering six mining exploration licenses located within the Choir-Nyalga coal basin of central Mongolia on the terms set out below. This announcement is further to the Company's news release dated July 11, 2011, in which Lucky Strike announced that it has signed definitive agreements to acquire an 80 percent interest in the CN Coal Properties subject to the completion of legal and technical due diligence and acceptance by the TSX Venture Exchange.
Norwest has been engaged to provide a preliminary assessment of the reportable coal resource estimates based on the results of a 2,000 meter exploration drill program supervised by Norwest in 2009 on three of the six CN coal properties. This data has not previously been interpreted and could be used along with the historical data to assess the quantity of coal for the six licensed properties, if any, which may be classified as a coal resource in accordance with NI 43-101 standards.
All work required to complete the NI 43-101 Technical Report, including the three-dimensional geological model and resource assessment, will be undertaken by Norwest in a two-phase program. In Phase I, Norwest will complete the analysis of data from the exploration drill program that was carried out in 2009, perform seam correlation, geological modeling and preliminary resource assessment, which is expected to be completed by August 2011. Phase I efforts are intended to provide Lucky Strike with a preliminary assessment of reportable coal resource estimates that could be included in a NI 43-101 compliant resource calculation. Based on results of the Phase I work program, Lucky Strike may elect to proceed with Phase II, which would include completion and filing of a NI 43-101 compliant Technical Report.
2009 Drill and Assay Results
In 2009, Norwest completed a historic data compilation and interpretation study of the 2,156 hectare area from three of the six properties and surrounding area and prepared a NI 43-101 Technical Report on behalf of Gulfside Minerals Ltd, entitled Onjuul Property, Tov Aimag, Mongolia, dated August 12, 2009. Upon the integration of all available data, Norwest then determined prospective targets for the 2,000-meter drilling program, which was carried out in the winter of 2009. Results of the 2009 exploration program include:
Stewart Group Labs (UK Company), a global provider of geochemical & assay solutions to the exploration industry, analyzed 128 coal quality samples obtained during the 2009 drilling program in their certified testing facility in Ulaanbaatar, Mongolia. The analytical suite included total and air-dried moisture, ash, volatile matter, fixed carbon, sulphur content, and calorific value. The samples were defined to represent the various coal benches within each seam. The samples for the various coal benches were mathematically composited to provide an estimated, weighted average of seam coal quality. The weighted averages for the individual seams are presented on an air-dried basis in Table 2 below.
2009 Coal Quality on Air-Dried Basis
Volatile Matter %
Fixed Carbon %
Calorific Value (KCal/Kg)
The three coal exploration properties under study represent 2,156 hectares of the contiguous 13,096-hectare block which is comprised of six mining exploration licenses and coal properties representing the CN coal properties.
In accordance with a summary table of coal inventory titled 'Mongolian Coal Basins and Deposits', the potential coal tonnage within and surrounding the CN Coal Properties including licensed and non-licensed areas in the vicinity is estimated to contain Mongolian P1 resources of 232 million tonnes, P2 resources of 1,017.9 million tonnes and P3 resources of 271.4 million tonnes for a total of 1.52 billion tonnes historical resource. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources; the Company is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
Edwin Ullmer, P. Geo., a Qualified Person as defined by National Instrument 43-101 and an independent consultant of the Company, has read and approved the technical information in this news release.
Tenth Anniversary of First Major Gold and Copper Discovery at Oyu Tolgoi by Ivanhoe Mines Coincides With Period of Peak Construction on Mongolia's Largest Mining Complex
US Promotes Nuclear Waste Dump in Mongolia
July 18 (NewsMax) The Obama administration is seeking to help Mongolia become a vast nuclear waste dump for commercial reactors in Japan, the United States, and the United Arab Emirates, according to a draft nuclear cooperation agreement obtained by Newsmax.
The protocol, drafted by Deputy Secretary of Energy Daniel Poneman in February and revised in May, also expresses the U.S. intent to facilitate commercial projects to develop Mongolia’s uranium deposits, to help the country become a fuel supplier to new nuclear power plants to be built in the UAE and elsewhere in the developing world.
The U.S. Congress approved a “123 Agreement” of nuclear cooperation with the UAE in 2009, with a clear view of warning Iran and reassuring Arab countries in the Gulf that the U.S. would counter Iran’s nuclear ambitions with technology and political support.
The U.S.–UAE agreement specifically states that the UAE will not engage in uranium enrichment, a sticking point with Iran. However, the new protocol with Mongolia calls for U.S. assistance to Mongolia to “cover all aspects of the fuel cycle, including supplying, converting, and enriching uranium.”
The protocol calls for Mongolia to begin providing nuclear fuel services within just 12 months of its adoption, an unusually short time period for matters of such sensitivity, especially since Mongolia has just begin exploration of its uranium deposits and has no known nuclear fuel production facilities.
The immediate purpose of the Memorandum of Understanding (MoU) appears to be to build a new spent fuel repository in Mongolia, not nuclear fuel fabrication. A Mongolian government delegation will visit the Idaho National Nuclear Laboratory in August to get briefed on advanced fuel cycle technologies developed for use at the now shuttered Yucca Mountain disposal site in Nevada.
Given the extreme poverty of Mongolia, the Obama administration may believe its efforts to build an international spent fuel dump in Mongolia will encounter fewer objections and little oversight, in stark contrast to the longstanding U.S. government plans to bury spent fuel deep beneath Yucca Mountain.
After decades of research that cost taxpayers billions of dollars, Nuclear Regulatory Commission chairman Gregory Jaczko summarily shut the Yucca Mountain site earlier this year without even consulting his fellow commissioners.
Long unpopular with environmental groups and Nevada Sen. Harry Reid, Yucca Mountain was the only site worldwide that was designed as a long-term repository for spent nuclear fuel.
NRC chairman Jaczko is a former staff assistant to Sen. Reid and was widely criticized by NRC staff members and by fellow commissioners during Congressional oversight hearings last month.
When Japan’s Mainichi newspapers first revealed the plans to build a nuclear fuel repository in Mongolia in May, the U.S. Embassy in Tokyo issued a sharply worded denial.
"The U.S. government is not negotiating a deal to send spent nuclear fuel to Mongolia," the U.S. Embassy said in an official statement on May 10.
But the draft nuclear cooperation agreement obtained by Newsmax shows to the contrary that building a spent fuel repository in Mongolia and helping Mongolia to become a nuclear fuel supplier were precisely the intent of Deputy Energy Secretary Daniel Poneman and his deputy, Edward McGinnis.
In discussions with Japanese nuclear regulatory officials on Feb. 3-4, McGinnis said the U.S. has “no interest” in short-term nuclear fuel storage in Mongolia, but was seeking a long-term repository to replace Yucca Mountain.
One reason for this emphasis is purely commercial. Companies such as Toshiba, which now owns the Westinghouse nuclear power division and was deeply involved in negotiating the four-party protocol, must pay significant fees for short-term storage of spent fuel. But once the fuel is buried in a long-term repository, title passes to the host country as does all liability for what happens to it hundreds or even thousands of years later.
The four-party MoU recognizes this problem, since the “expansion of use of nuclear energy is highly dependent on the existence of a global nuclear liability regime” that allows power-plant operators to manage their liabilities in case of accident.
The MoU bears the stamp of the Obama administration’s commitment to nuclear energy as a solution to “the challenges of climate change, energy security, and economic development,” the draft protocol states.
The MoU makes extensive reference to international agreements, and emphasizes the United States commitment to “multi-lateral” solutions for the supply of nuclear fuel and nuclear waste disposal, rather than unilateral American solutions such as Yucca Mountain.
In regard to Mongolia, it recognizes “the intent of the Government of Mongolia to develop a comprehensive fuel services (CFS) program for Mongolia origin fuel, with an emphasis on emerging markets.”
But even though Mongolia’s president came to Washington in May, he was not handed a copy of the MoU, informed sources tell Newsmax.
One reason for the delay was the ongoing crisis in Japan’s own nuclear power industry, following the earthquake and tsunami in March that caused a meltdown at Japan’s Fukushima Dai-ichi nuclear power plant.
In an apologetic email sent to Poneman last week, a senior aid to Japan’s nuclear power minister, Banri Kaieda, wrote that the minister was preoccupied with restarting Japan’s nuclear power industry and answering critics of nuclear power. “To be frank, I am not sure if Minister Kaieda has read your e-mail at all.”
Poneman had written Kaieda on July 6, urging him to move ahead to approve the agreement “by the end of calendar year 2011.”
“Putting together a concrete commercial deal would go a long way to realize President Obama's vision for a new international nuclear framework and Mongolia's vision for its Nuclear Initiative,” Poneman wrote.
“For the UAE and Japan this could offer a solid business opportunity, but far more than that — it is a political commitment to nonproliferation and a new nuclear energy future," Poneman added.
Poneman and his top aide have developed very close ties to Toshiba and urged the Japanese company to negotiate the nuclear fuel agreement between Mongolia and the UAE, sources in Japan indicated.
Indeed, DoE took the unusual step of inviting Toshiba officials to attend a negotiating session in Washington, D.C., on Feb. 2-3 with Mongolian and other government representatives.
But Kaieda’s aide now frowns on the Toshiba involvement in the Mongolia project. “I know Toshiba is still very positive but the [Government of Japan’s] position is not necessarily the same as the position of a certain private company,” the aide wrote Poneman last week.
Why U.S. officials would be more vigorous in promoting the interests of a Japanese company than the Japanese government remains unclear.
But in conversations with Japanese officials, McGinnis said the United States was unhappy that Russia had offered to supply nuclear fuel for the UAE reactors and that the United States was looking for an alternative.
According to the Mainichi newspapers in Japan, “the deal would enable Japan and the U.S., which lack disposal sites of their own, to counter efforts by Russia and France to market nuclear technology internationally by selling reactors and the disposal of nuclear waste services together as a set.”
PREMIER RECEIVES DPRK FOREIGN MINISTER
July 18, Ulaanbaatar, Mongolia, /MONTSAME/ The Prime Minister S.Batbold received Monday a delegation headed by Pak Ui-chun, the Minister of Foreign Affairs of the Democratic People's Republic of Korea (DPRK).
Beginning the meeting, the Premier has hoped the visit of the DPRK Foreign Minister would strengthen and develop the bilateral relations and cooperation. Mentioning that the two nations have a tradition to help each other in frames of their friendly and good relations, the Premier has emphasized the countries have an opportunity to develop collaboration in the fields of agriculture, mining, sea ports, infrastructure and construction.
In turn, Mr. Pak has expressed thanks to the Prime Minister for an audience, and said he was satisfied with visiting Mongolia.
Mr. Pak has conveyed to the Premier a greeting of the leader of the DPRK Ministers' Council, and then reported that the DPRK is welcoming the 100th birth anniversary of Kim IL-sung to be marked next year, with an intensive economic development. The sides have discussed an opportunity to developing the wide-range cooperation.
Social and economic situation of Mongolia (As of the first half of 2011)
July 10 (National Statistics Office of Mongolia) --
I. Social indicators
According to the report of Ministry of Health, 33694 mothers delivered 33859 children (live births) in the first half of 2011, increased by 265 mothers or 0.8 percent, and 293 children or 0.9 percent, compared to the same period of previous year. In the first half of this year, at national level infant mortality decreased by 103 or 14.5 percent to 607, and child mortality aged 1-5 decreased by 63 or 33.2 percent to 127 compared to the same period of previous year.
The number of unemployed who had registered at Labour and Welfare Service Divisions in aimags and capital city and were actively looking for job reached 41.8 thousand at the end of June, 2011, reflecting an increase of 1826 persons or 4.6 percent compared to the same period of the previous year. Compared to the same period of the previous year, the increase in the number of registered unemployed was mainly due to the increases in Ulaanbaatar city (2297 persons), Ovorkhangai (1342 persons), Khovd (997 persons), Darkhan-Uul (196 persons), Bayan-Olgii (86 persons), Dundgovi (83 persons), and Bulgan (77 persons) aimags. In the first half of 2011, 516.5 thous.persons were registered as insurer, of which 322.2 thousand or 62.4 percent were those from the establishments, and 194.3 thousand 37.6 percent from the government budgetary organization. Compared to the same period of previous year, the number of insurers increased by 22.6 thousand or 4.6 percent, and the number of insured establishment increased by 34.9 thousand or 12.2 percent, while the number of insured government budgetary organization decreased by 12.3 thousand or 5.9 percent...
In the first half of 2011, social welfare pensions and benefits allocated to 55.5 thous.persons, showing a decrease of 140 persons or 0.3 percent, total amount of the allocated fund increased by 2.8 bln.tog or 22.3 percent compared to the same period of the previous year.
In the first half of 2011, 355.0 bln.tog were distributed to 2.5 mln.persons (double counting) from the Human development fund. In the first half of 2011, the number of infectious disease cases was 20.6 thousand, up by 738 cases or 3.7 percent compared the same period of the previous year. The increase was mainly due to the 1821 persons or 4.2 times increase in the number of persons infected by varicella, and 3256 persons or 2.5 times increase in viral hepatitis, 70 persons or 3.3 percent increase in syphilis, although there was decreases of 1720 persons or 7.2 times in Enterovirus-71, 1629 persons or 2.9 times in mycoses, 204 persons or 19.0 percent in shigellosis, 434 persons or 16.9 percent in trichomoniasis, 439 persons or 14.2 percent in gonococcal infection, and 44 persons or 1.8 percent in tuberculosis.
At national level, 10116 crimes were registered in the first half of 2011, reflecting an increase of 237 crimes or 2.4 percent compared to the same period of the previous year. The increase in the number of crimes was mainly due to the increases in crime against social security (229), crime against the rules of safety of traffic and use of motor vehicles (148), crime against children, family and social morality (51), crime against environmental protection rules (48), crime against judicial procedures (19), and crime against administrative rules (12), although there were decreases in crime against the right of ownership (150), crime against human life and health (or physical well-being) (75), crime against population health (24), and crime against economic entity (21) compared to the same period of previous year.
In the first half 2011, occurred crimes caused 4058 injuries and 570 deaths. The number of injuries up by 752 persons or 22.7 percent and the number of deaths down by 93 persons or 14.0 percent compared to the same period of the previous year.
II. Macroeconomic indicators
In 2010, GDP by production approach reached 8414.5 bln.tog at current prices and 4162.8 bln.tog at 2005 constant prices, representing increases of 27.7 percent at current prices and of 6.4 percent at constant prices compared to the previous year.
In 2010, GDP by expenditure approach reached 8459.6 bln.tog at current prices and 4183.0 bln.tog at 2005 constant prices, representing increases of 1891.2 bln.tog or 28.8 percent at current prices and of 253.9 bln.tog or 6.5 percent at constant prices compared to the previous year. The national consumer price index in June, 2011 increased by 0.4 percent compared to the previous month, by 4.7 percent from December 2010, and by 6.2 percent compared to the same period of the previous year. The increase in national index compared to the previous month was mainly due to the increases of 8.4 percent in transport and 0.9 percent in housing, water, electricity and fuels groups.
According to the report of the Bank of Mongolia, money supply (broad money or M2) at the end of June 2011, reached to 5772.6 bln.tog, reflecting increases of 343.7 bln.tog or 6.3 percent compared to the previous month, and 2249.0 bln.tog or 63.8 percent compared to the same period previous year.
At the end of June 2011, currency issued in circulation reached 638.8 bln.tog, increased by 14.0 bln.tog or 2.2 percent compared to the previous month, and by 191.3 bln.tog or 42.8 percent compared to the same period of previous year. Loans outstanding at the end of June 2011, amounted to 4527.6 bln.tog, up by 280.8 bln.tog or 6.6 percent compared to the previous month, and by 1645.0 bln.tog or 57.1 percent compared to the same period of the previous year
Principals in arrears at the end of June 2011, reached 69.9 bln.tog reflecting decreases of 5.9 bln.tog or 7.8 percent compared to the previous month, and 42.8 bln.tog or 38.0 percent compared to the same period of the previous year. At the end of June 2011, the nonperforming loans over the bank system reached 390.5 bln.tog, showing decreases of 7.1 bln.tog or 1.8 percent compared to the previous month, and of 12.4 bln.tog or 3.1 percent compared to the same period of the previous year.
In June 2011, there were 21 trading days and 8.0 mln.shares valued at 44.8 bln.tog were traded. In the first half of 2011, total revenue and grants of the General Government Budget amounted to 1966.7 bln.tog and total expenditure and net lending amounted to 1868.2 bln.tog, representing surplus of 98.4 bln.tog in the General Government Budget overall balance. In the same period of previous year, the overall balance was in deficit of 167.5 bln.tog and this year’s General Government Budget overall balance surplus was mainly due to the revenue growth pace exceeded the expenditure growth by 25.8 percentage points. Current revenue of the General Government Budget amounted to 1918.1 bln.tog and current expenditure reached 1523.1 bln.tog. Thus, the budget current balance was in surplus of 395.0 bln.tog. Compared to the same period of the previous year, tax revenue increased by 617.8 bln.tog or 57.5 percent. The increase was mainly due to the increases of 257.9 bln.tog or 71.3 percent in taxes on goods and services, 208.4 bln.tog or 2.6 times in other taxes, 71.1 bln.tog or 90.7 percent in taxes on foreign trade, 64.4 bln.tog or 44.3 percent in social security contribution, 14.1 bln.tog or 4.0 percent in income tax.
Compared to the same period of the previous year, non-tax revenue increased by 94.6 bln.tog or 71.7 percent. The increase was mainly due to the increases of 43.9 bln.tog or 77.7 percent in revenues from budget entities, 28.7 bln.tog or 7.7 times in revenues from dividends, 6.8 bln.tog or 48.4 percent in revenues from navigation fee, 6.1 bln.tog or 32.5 percent in revenues from interest and fines, 5.9 bln.tog or 30.2 percent in other revenues. In the first half of 2011, total expenditure and net lending of the General Government Budget increased by 461.1 bln.tog or 32.8 percent to 1868.2 bln.tog compared to the same period the previous year. This was mainly due to increases of 279.1 bln.tog or 51.3 percent in subsidies and transfers, 150.7 bln.tog or 28.5 percent in expenditure of goods and services, 108.5 bln.tog or 62.9 percent in capital expenditure, although there was decreases of 69.5 bln.tog or 52.0 percent in lending minus repayments, and 7.7 bln.tog or 27.1 percent in interest payments.
Spending of 281.0 bln.tog on capital expenditure in the first half of 2011 was higher by 108.5 bln.tog or 62.9 percent compared to the same period of the previous year. The increase in capital expenditure was due to the increases of 105.2 bln.tog or 61.5 percent in capital expenditure of domestic sources, and 3.2 bln.tog or 3.6 times in foreign financed capital expenditure. In the first half of 2011, Mongolia traded with 113 countries from all over the world and total external trade turnover reached 4718.3 mln.US dollars, of which exports made up 1992.8 mln.US dollars and imports made up 2725.6 mln.US dollars
External trade balance showed a deficit of 732.8 mln.US dollars in the first half of 2011, increased by 685.1 mln.US dollars or 15.4 times compared to the same period of the previous year. External trade balance showed a deficit of 193.2 mln.US dollars in June, 2011, however, it was in surplus of 12.6 mln.US dollars in June 2010. Total external trade turnover increased by 2053.4 mln.US dollars or 77.1 percent, of which imports up by 1369.3 mln.US dollars or 2.0 times, and exports up by 684.1 mln.US dollars or 52.3 percent, compared to the same period of the previous year.
III. Economic sector indicators
In the first half of 2011, 506.1 thous.heads of adult animals had lost, which equals to 1.5 percent of total livestock at beginning of the year. Of which, 20.6 thous.heads or 4.1 percent were horses, 41.2 thous.heads or 8.1 percent were cows, 1.2 thous.heads or 0.2 percent were camels, 211.8 thous.heads or 41.9 percent were sheeps and 231.2 thous.heads or 45.7 percent were goats.
In the first half of 2011, the total industrial output increased by 87.9 bln.tog or 10.4 percent to 936.4 bln.tog (at 2005 constant prices) compared to the same period of the previous year. The increase in the industrial output was mainly due to 0.3 percent to 3.8 times increases in mining and quarrying products such as crude oil, coal and iron ore; and 1.0 percent to 8.5 times increases in industrial main products of manufacturing sector such as combed down, steel casting, decoration and medal, sausages, alcohol, juice, carpet, knitted goods, soft drinks, cigarettes, beer, cement, sawn wood, concrete mortar, and electrical conductor wire.
In the first half of 2011, 17.7 mln.tons freight and 170.4 mln.passengers (double counting) were carried by all types of transport, carried freight rose by 6.2 mln.tons or 54.4 õóâü percent, and carried passengers by 58.4 mln.persons or 52.2 percent. According to the report of the Institute of Meteorology and Hydrology, maximum precipitation was registered in Altai soum (99.8 mm) of Govi-Altai aimag in June, 2011. This June, Khanbogd soum of Omnogovi aimag had the highest air temperature (+37°C), while Khatgal soum of Khovsgol aimag had the lowest air temperature (+0.3°C). Wind speed reached 26 m/sec in Mandalgovi soum of Dundgovi aimag and Sukhbaatar soum of Selenge aimag.
Daily average concentration of nitrogen dioxide exceeded 28 times around West crossroad of Ulaanbaatar city, 16 times around 13th micro district, 7 times around Kharkhorin market and once around 1st micro district; daily average concentration of sulphur dioxide exceeded 9 times around 32nd Toirog, 3 times around West crossroad, 2 times Kharkhorin market; particulate matter less than 10 micrograms exceeded 19 times around 32nd Toirog, 18 times around Kharkhorin market, 9 times around West crossroad; particulate matter less than 2.5 micrograms exceeded 9 times around 13th micro district, 6 times around West crossroad and from the maximum allowable concentration of air quality standard in June, 2011.
In the first half of 2011, 1900 disasters and accidents occurred. As a result, 113 people died, 165.1 thous.livestock and animals had lost. In the first half of this year, 1621 object fires, 16 accidents related to artisanal mining and rock falls, 39 cases of animal madness disease, 37 river and lake accidents occurred. Estimated damage caused by the disasters and accidents amounted to 2.7 bln.tog.
Motherland Allowance will be distributed through Savings Bank
July 18 (news.mn) Welfare Service Department Chief at the Ministry of Social Welfare and Labor D. Choijilsuren has said that the Motherland Allowance will from now on be distributed through the Savings Bank. All related data held by Khan Bank, which was responsible for the work so far, have been transferred to the Savings Bank. Sixty new branches of the Savings Bank have been opened in soums that did not have one.
The Government will give MNT500,000 in cash to every citizen, of which MNT120,000 was paid in 2010. Since January this year, the monthly rate has been raised to MNT21,000. The final payment will be made before June, 2012.
Opinion: Mongolia works to avoid the curse of resource wealth
July 17 (Vancouver Sun) No one missed the symbolism when earlier this month the Mongolian government announced which companies are getting the rights to develop the western block of the world’s largest known coal reserve, Tavan Tolgoi, in the Gobi Desert.
The Chinese company Shenhua Energy won the right to develop 40 per cent of the block, a Russian consortium got 36 per cent and America’s Peabody Energy won 24 per cent.
Those proportions represent a reasonably accurate picture of how the government in Ulan Bator manages its relationships by both courting and holding at arms length its two overpowering neighbours, Russia and China, with the help of a long-range economic and military alliance with the United States.
But 21 years after Mongolia escaped from the collapsing Soviet Union and achieved renewed independence the state-owned Tavan Tolgoi deposit, believed to contain 6.5 billion metric tons of metallurgical coal, has even greater significance.
Early next year Erdenes MGL, the state company in charge of developing the remainder of Tavan Tolgoi, will float 29 per cent of the company in international exchanges. The public offering is expected to raise more than $10 billion.
Already, however, 10 per cent of those shares have been distributed to every one of Mongolia’s 2.7 million citizens.
As the government of Prime Minister Sukhbaatar Batbold wrestles with the challenges of developing one of the world’s last known great deposits of mineral wealth, he must also confront the monumental social and cultural pressures involved.
It’s a matter of how a culture and an economy based on the produce and virtues of the life of semi-nomadic herders on Mongolia’s vast plains of open steppe can adapt to take advantage of its mineral deposits, estimated at current values to be worth at least $1 trillion.
These are not easy matters and successive Mongolian governments have struggled to evolve a workable policy toward mineral development while establishing a vigorous democracy, even as a tumultuous rush to grab stakes to the country’s mineral resources is underway.
Those governments have been well aware that for underdeveloped countries – 30 per cent of Mongolians still live in poverty – sudden wealth from natural resources can be more a curse than a benefit.
The prime minister has said repeatedly that Norway, Canada and Chile are the examples of resource-based economies he wants Mongolia to follow.
Hence the issuing of Tavan Tolgoi shares to Mongolians rather than the failed voucher system in a round of privatizations of state-owned companies when the government adopted free-market reforms after the collapse of the Soviet Union.
But Mongolia is also borrowing from Chile’s experience and establishing a fiscal stabilization fund which will set aside money for long-term development and tide the country through the inevitable roller coaster ride in commodity values.
There is also a new Mongolian Development Bank, which will gather mineral revenues to provide loans for infrastructure projects.
A Human Development Fund will use mine revenues to finance education, housing, health care and other social development programs.
Not everyone is delighted with the direction Mongolia is taking, even if it does offer a more prosperous future.
There is a loud and sometimes violent anti-mine movement led by an iconic nomadic herder, Tsetsegee Munkhbayer, who heads a group called Fire Nation.
Munkhbayer is in prison after he and followers shot at equipment at a mine in the southern province of Ovorkhangai.
This is not the first time Munkhbayer and his group have used dramatic acts to draw attention to what they say is irresponsible mining operations that they claim are destroying grass land and polluting rivers.
In September the group riddled a bulldozer with bullet holes at the Boroo gold mine in Selenge province, which is owned by the Toronto-based Canadian company, Centerra Gold Inc.
And in April Fire Nation activists charged on horseback into Ulan Bator’s central Sukhbaatar Square demanding the government impose stricter environmental controls on mining operations.
Munkhbayer began his campaign by leading demands that the Ongi River, one of the country’s largest, be cleaned up. The river had run almost dry because of unchecked mining activities.
Munkhbayer was successful in getting the government to shut down 35 of the 37 mines in the area. As a result he was awarded in the U.S. in 2007 the Goldman Environmental Prize, which is given to grassroots conservation activists.
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