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, July 20, 2011 | | |||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.056 | 0.003 | 0.056 | 0.057 | 0.055 | 0.059 | 0.054 | 13,741,922 | |
1.370 | 0.095 | 1.355 | 1.370 | 1.310 | 1.370 | 1.310 | 239,452 | |
0.240 | 0.015 | 0.240 | 0.250 | 0.235 | 0.240 | 0.235 | 968,990 | |
0.600 | 0.020 | 0.595 | 0.605 | 0.605 | 0.615 | 0.595 | 928,597 | |
0.009 | -0.001 | 0.009 | 0.010 | 0.010 | 0.010 | 0.009 | 2,782,048 | |
0.005 | 0.000 | 0.005 | 0.006 | 0.000 | 0.000 | 0.000 | 0 | |
0.120 | -0.010 | 0.120 | 0.125 | 0.130 | 0.135 | 0.120 | 12,126,457 | |
0.170 | -0.005 | 0.160 | 0.170 | 0.170 | 0.170 | 0.165 | 114,717 | |
1.300 | 0.030 | 1.290 | 1.305 | 1.305 | 1.320 | 1.240 | 1,396,240 | |
0.270 | -0.005 | 0.270 | 0.275 | 0.270 | 0.270 | 0.265 | 1,105,000 | |
0.400 | 0.000 | 0.350 | 0.400 | 0.000 | 0.000 | 0.000 | 0 | |
0.071 | 0.015 | 0.070 | 0.071 | 0.057 | 0.072 | 0.057 | 133,430,935 | |
0.555 | 0.010 | 0.520 | 0.550 | 0.560 | 0.560 | 0.530 | 149,974 | |
21.660 | 0.660 | 21.660 | 21.680 | 21.500 | 21.740 | 21.310 | 1,028,629 | |
82.550 | 1.220 | 82.520 | 82.560 | 82.300 | 82.680 | 82.190 | 2,402,192 | |
43.440 | 0.820 | 43.400 | 43.440 | 43.300 | 43.450 | 43.200 | 12,141,840 | |
Source: asx.com.au
Mongolia's Tavan Tolgoi coal resources could reach 7.5 bln T
ULAN BATOR, July 20 (Reuters) - Mongolia's massive Tavan Tolgoi coal deposit could hold as much as 7.5 billion tonnes of resources, up nearly 15 percent from the current estimate of 6.5 billion tonnes, Prime Minister Sukhbaatar Batbold was quoted as saying in local media.
Winning bidders selected to develop the western part of Tavan Tolgoi would be allowed exploit the field for 30 years, Batbold was quoted as saying in a major Mongolian news website on Wednesday. (www.news.mn)
"Tavan Tolgoi could hold as much as 7.5 billion tonnes of coal resources. The 6.5 billion estimate was based on a old Soviet study and we're getting new estimates," Batbold said.
In a wide-ranging interview, Batbold said Mongolia welcomes Russia, China, the United States, Japan and South Korea to participate in the Tavan Tolgoi project, but he stopped short of saying if the group of Japanese and South Korean companies were still part of the final list.
"We have to consider the interests of our two neighbours. We also have a third neighbour policy, so we have to find a balance between them," Batbold said, referring to the government's plan to seek out new export markets in Japan and South Korea via Russian ports.
Last week, the Mongolian government said it had reached a deal with China's Shenhua International, U.S. Peabody Energy and a Russian-Mongolian consortium to develop the west Tsankhi deposit, prized for its massive resources of highly sought after coking coal.
But identities of the Russian-Mongolian consortia remain unclear and confusion arose after some Japanese and South Korean firms, that were part of the Russian-led group, said they were not told of the outcome and the South Korean government questioned the fairness of the selection process.
China's Shenhua teamed up with Japan's Mitsui & Co but the Japanese firm's name was also dropped without explanation.
Government officials familiar with the negotiations told Reuters separately on Wednesday that talks were continuing with all parties and the final proposal has not yet been approved by the National Security Council nor has it been submitted to the parliament.
Members of the South Korean firms which participated in the Russian-Korean-Japanese consortium include state-run Korea Resources, POSCO , utility firm KEPCO , trading firm LG International and Daewoo International .
Japanese firms in the group include Itochu Corp , Sumitomo Corp , Marubeni Corp and Sojitz Corp .
Mongolian coal mining deal still discussed
July 20 (Xinhua) ULAN BATOR --egotiations over the development of Tavan Tolgoi, one of the largest cokingcoal deposits in Mongolia, are still underway, said a senior official of the mine's owner ErdenesMGL.
Negotiations with international mining companies over Tavan Tolgoi coal deposit is continuing,Baasangombo Enebish, Erdenes MGL executive director was quoted by local media as saying.
Earlier, the Mongolian government announced it had reached a deal with international biddersand was ready to submit the draft investment agreement to the country's parliament.
Under the deal, China's Shenhua Energy Company, US Peabody Energy Corporation and aRussian-Mongolian consortium would respectively hold 40 percent, 24 percent and 36 percentof the stake in Tavan Tolgoi coal deposit.
However, the deal has not been submitted to the Parliament and has drawn criticism from somehigh ranking Mongolian officials.
"The development of Tavan Tolgoi is strategically important for Mongolia as it will bring deepsocial transformation and economic progress. Therefore, draft investment agreement and allother feasibility studies have to be approved by National Security Council and then discussedat the parliament," Puntsag Tsagaan, senior advisor to Mongolian president said.
The Mongolian government has cut the deal supposedly in the hope that the development ofthe mine will boost the country's economy and improve its people's living standard.
Baabar, one of popular columnists of Mongolia, urged the prime minister to be more resoluteand push for the development of Tavan Tolgoi.
GUF closed up 3c to A$1.30.
Guildford Completes Acquisition of Further 50% in Terra Energy
July 20, Guildford Coal Limited (ASX: GUF) – The Board of Guildford Coal Limited (ASX: GUF) is pleased to announce that the Company has exercised the option to increase its stake in its Mongolian subsidiary Terra Energy LLC from 20% to 70% due to the positive results generated from exploration to date on the South Gobi coking and thermal coal project and the Middle Gobi thermal coal project. This transaction has been completed.
Guildford Coal Limited Non Executive Chairman, Mr Craig Ransley stated that “the highly prospective Terra Energy LLC Projects have the potential to define large scale thermal and coking coal mineral resources and represent an opportunity for Guildford to become producer within 12 months as the South Gobi Project is well located close to the Chinese border stating of Ceke where coal from Mongolia is already trucked into China”.
As previously advised to the ASX on 8 July 2011, GUF through its Mongolian subsidiary Terra Energy LLC is continuing to conduct due diligence on a number of additional tenements in Mongolia which have synergies with and complement the existing project portfolio
Patersons: Guildford Coal - Developing assets on multiple fronts,
Investment Highlights
July 14 (Paterson’s) We are initiating coverage on Guildford Coal Limited (GUF) with a BUY recommendation and price target of $2.25/share. GUF is a coal exploration company that has spent less than 12 months as a listed entity on the ASX. In that time it has secured multiple targets in major Queensland and Mongolian Coal Basins. This has been reflected in the strong performance of the share price since listing.
• A Simple Objective has been pursued by the management team - to secure prospective tenements close to infrastructure. They have achieved this objective with their 3 primary targets in Queensland, the Hughenden project on the Mt Isa – Townsville rail line, the Kolan project close to rail to Gladstone and the Sierra project on the main rail line west of Rockhampton.
• The Hughenden project - is one of the largest coal exploration tenement portfolios on the Galilee Basin. The drilling program has been significantly delayed by the extraordinary wet season and flooding last year. 4 drill rigs are now drilling to establish GUFs maiden JORC compliant resource. The project is located near Pentland and the main rail line to Townsville and GUF signed MOUs for a planned feasibility study to develop rail coal and export facilities from the Port of Townsville.
• Seizing the opportunity – The board has agreed to exercise an option to be the majority shareholders in a Mongolian company, Terra Energy, which originally had a project in South Gobi of 4 exploration licences over prospective coking and thermal coal targets and another 2 exploration licences over prospective thermal coal targets in Middle Gobi. Its portfolio has now expanded with additions assets in, South Gobi and Middle Gobi provinces as well as licenses in Northern Mongolia close to the Russian boarder.
• Focus of South Gobi – The project covers large coal prospects located in the South Gobi desert 50km north of the Chinese border and adjacent to two operating coal mines. There are 4 drill rigs on site to establish a JORC compliant resource. The mining lease on the South Gobi Project is expected to be issued in Q3 CY2011.
…
Morgan Stanley: Guildford Coal - Next generation of Australian coal miners
July 12 (Morgan Stanley) --
Coal Assets in Developing Coal Regions: Guildford Coal (GUF) is an Australian listed coal explorer with tenements in Queensland and Mongolia. GUF’s strategy is to fast track development of its South Gobi project in Mongolia with first production targeted by the end of 2012 (2-3Mtpa of thermal & metallurgical coal). According to management, cash flow from this project will help fund GUF’s Hughenden project in the Galilee coal basin in Queensland with first production aimed for end 2013 (3-4Mtpa of export thermal coal).
Large Resource Potential, but Project Risk High: GUF estimates that within its large Queensland tenement region it has ~220km of Galilee Basin edge. Other major coal projects in the region have in total ~250km of Galilee Basin edge from which they have defined a cumulative JORC Inferred resource of 22Bt. However as GUF’s priority projects are still early-stage, inherent project risk remains. Near-term milestones, that should provide increased confidence, include the release of JORC compliant resource statements for both projects, and obtaining a mining license for the South Gobi project. Management expects both of these targets to be achieved by the end of 2011.
Corporate Interest in Galilee Basin High: The need to secure long-term coal energy supplies has increased corporate activity in the Galilee Basin, considered to be Australia’s new coal frontier. Indian investor interest for more advanced coal projects in the region has been high.
Infrastructure Advantage: Unlike other Galilee coal projects, GUF’s Hughenden project has potential access to existing rail and port infrastructure at Townsville. The ability to sell coal at the mine gate in Mongolia reduces the infrastructure requirement for GUF.
Morgan Stanley Bullish on Coal: Our commodities team remains bullish on the outlook for coal markets, forecasting a supply side deficit in both metallurgical and thermal coal seaborne markets to at least 2016e.
…
Sedgman notified of US$24 million Stage 3 Contract at Mongolia's UHG coal mine
July 20, Sedgman Limited (ASX:SDM) --
Key Points
· Sedgman receives notice to proceed with USD$24 million EPCM contract for Stage 3 of Energy Resource’s UHG coal mine in Mongolia
· Contract follows UHG Stage 1 and Stage 2 EPCM contracts and Stage 1 Operations Management contract
· Sedgman further advances growth in one of the world’s most significant emerging coal regions
Leading resource sector services company Sedgman Limited (ASX:SDM) today announced it had received a formal Notice to Proceed with an USD$24 million Engineering, Procurement and Construction Management (EPCM) contract at Energy Resources LLC’s Ukhaa Khudag (UHG) mine in Mongolia.
Sedgman Managing Director Nick Jukes said the contract was another significant milestone for Sedgman as it continues to advance its position as a leading provider of engineering services in the world’s major emerging coal production regions.
He said the contract also strengthens Sedgman’s relationship with Energy Resources at UHG where Sedgman commenced work on the Stage 1 coal handling and processing plant (CHPP) in 2009.
“We are very pleased to announce that Energy Resources has provided us with a formal Notice to Proceed with this significant contract. We look forward to our upcoming work on Stage 3 of UHG?s coal handling and preparation plant,” Mr Jukes said.
“The South Gobi region of Mongolia continues to emerge as one of the world’s most exciting coal production regions. It has been a significant achievement for Sedgman to have delivered the region’s first coal plant for UHG, to be involved in its ongoing management and initial expansion and to now continue with this expansion.
“This UHG Stage 3 contract is recognition of our ability to deliver on significant projects and to develop strong client relationships which result in repeat business.”
Work is expected to complete by October 2012.
The Stage 3 contract, which increases CHPP capacity to 15 Mtpa, takes the value of Sedgman’s work at UHG to approximately AUD$75 million. Sedgman in March 2009 announced the initial Stage 1 AUD$20million EPCM contract at UHG. In January 2011
Sedgman announced further Stage 1 Operational Management and Stage 2 EPCM contracts with a total value of USD$31million.
Coal transportation fees to rise by 15%
July 20 (news.mn) Ulaanbaatar Railway yesterday announced a 15% increase in domestic coal transportation charges from August 1. Tariff for other items remains unaffected. Higher freight rates would mean higher costs for buyers of coal, including power plants and a rise in electricity and heating prices cannot be ruled out.
Railway officials refused to give any information on why the rates have been increased.
Chinese coal imports to stabilize: Deutsche Bank
July 20 (Reuters) Chinese thermal coal imports will stabilize at around 100 million tonnes a year instead of rising, as previously expected, because of improvements to the country’s own coal output and rail capacity, Deutsche Bank said in a research note.
Transport bottlenecks and low capacity have so far led most forecasts to expect strongly rising thermal coal imports into China but Deutsche Bank said recent analysis showed these problems may start to be remedied by new additions to capacity.
“Owing to ongoing improvements in China’s rail capacity and production increases particularly in Shanxi and Inner Mongolia, we expect that net imports of thermal coal will remain stable just above the 100 million-tonnes level, instead of rising significantly in the next five years,” the bank said in its note on Wednesday.
“Together, we expect that these factors will support production growing at rates similar to domestic demand growth, leaving net imports little changed in the medium term,” it added.
Deutsche Bank also said that despite higher total demand, Chinese net imports in the first five months of this year were between 5 million and 11 million tonnes a month and at similar or lower levels than last year.
Regarding Japanese imports, Deutsche Bank said thermal coal shipments dropped below the 2010 level in April and May, while LNG shipments picked up.
“The majority of adjustment within the power sector to date has been in the form of rotating blackouts, energy conservation, demand reduction, and increases in gas-fired generation, rather than coal-fired generation,” the bank said.
Japanese monthly coal consumption has been between 3 million and 5.5 million tonnes this year, slightly below levels seen in the two previous years.
Overall, Deutsche Bank said that it expects coal markets to be roughly balanced in 2011, undersupplied in 2012, and balanced again in 2013.
“We lower our H2-2011 API4 price forecast to $132 a tonne while keeping 2012 and 2013 price forecasts unchanged at $145 and $115 per tonne, respectively,” the bank said.
Coal import prices to Europe are going to average $137 per tonne in the second half of 2011 and rise to $150 a tonne in 2012 before trailing off in 2013, the bank said.
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"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
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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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