Thursday, December 8, 2011

[CPSI NewsWire: Peabody Acquires 5.1% Stake in Winsway]

CPSI NewsWire brings you market updates on Mongolia, compiled by CPS International, a Mongolian marketing arm of CPS Securities, a Perth, WA based stockbroking and corporate advisory firm, specialising in capital raising for mining and junior stocks.

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Peabody Energy Acquires 5.1% Equity Interest in Winsway Coking Coal Holdings

ST. LOUIS, Dec. 7, 2011 /PRNewswire/ -- Peabody Energy (NYSE: BTU) today announced that it has acquired a 5.1 percent equity interest in Winsway Coking Coal Holdings Ltd. (HK:1733) in a series of purchases of Winsway's shares on the Hong Kong Stock Exchange.  The move further strengthens the strategic partnership between the two companies.

Peabody and Winsway currently operate a joint venture in Mongolia that holds coal and uranium licenses in Mongolia and is conducting an active exploration program in the South Gobi region and throughout the country. In addition, Peabody and Winsway have recently entered into a non-binding memorandum of understanding to establish a joint venture to market coal in China and the Asia-Pacific region.  Deutsche Bank served as broker on the purchases.

Winsway is one of the leading suppliers of imported coking coal in China and the largest supplier of Mongolian coal into China. It distributes and transports coal from Mongolia and other countries into China through its integrated service platform, which includes logistics parks, coal washing plants, and road and railway transportation capabilities along the coast, rivers and inland borders of China, including Inner Mongolia. 

Mongolia is the largest and fastest-growing exporter of metallurgical coal to China. 

Peabody Energy is the world's largest private-sector coal company and a global leader in clean coal solutions. With 2010 sales of 246 million tons and nearly $7 billion in revenues, Peabody Energy fuels 10 percent of U.S. power and 2 percent of worldwide electricity.

Link to release



December 7, Guildford Coal Limited (ASX:GUF) --


Ø  Key milestone for Middle Gobi Coal Project with maiden independently prepared Indicated and Inferred JORC Resource for EL12929X of 221Mt of thermal coal (32Mt Indicated and 189Mt inferred)

Ø  This resource adds to the recently announced maiden JORC resource for the South Gobi Project of 63.1Mt (38.2Mt indicated and 24.9Mt inferred)

Ø  The total initial JORC Resources for Mongolian Projects totals 284Mt of coking and thermal coal (70Mt Indicated and 214Mt Inferred)

Ø  The Middle Gobi Project thermal coal resource contains multiple shallow and thick coal seams amenable to open cut mining methods

Ø  Drilling is scheduled to recommence in March 2012 following shutdown for the winter period to expand the current resource at EL12929X in the Middle Gobi Project

Ø  Coal from Middle Gobi Project could be trucked to the Trans Mongolian Railway where it could be transported by rail to either the Chinese or Russian border

Ø  Guildford’s attributable JORC coal resource base across Queensland and Mongolia now totals 1.32Bt

Link to release


Aspire MD buys 100K Shares on Market at 32.75c

December 7 (Mogi) Aspire Mining Limited (ASX:AKM) Managing Director David Paull acquires 100,000 AKM shares indirectly on market at an average price of 32.75c for total consideration of A$32,750 on December 6.

Link to Change in Director’s Interest Notice


Ivanhoe Deputy Chairman Increases Stake by 20K Shares

December 7 (Mogi) Ivanhoe Mines Limited (TSX:IVN, NYSE:IVN) Deputy Chairman Peter Meredith’s stake increased through his spouse’s purchase of 20,000 IVN shares on market at C$21.56 on December 5, as disclosed to SouthGobi Resources’ (TSX:SGQ, HK:1878) Director’s Interest Notice of December 7, Mr. Meredith is Chairman of Southgobi.

Link to Change Director’s Interest Notice


CAML: Board Appointment

December 7, Central Asia Metals Pcl (LON:CAML) --

CAML (AIM: CAML), a mining exploration and development company focussed on base and precious metals in Central Asia, is pleased to announce the appointment of Howard Nicholson as Technical Director and a member of the Board of the Company with immediate effect.

Mr Nicholson, aged 53, and a metallurgist by profession has extensive experience in the development, construction implementation and operational management of mining projects.  His early experience was gained at Anglo American, Lonrho and Ashanti Goldfields where he worked his way up to the position of General Manager.  He joined CAML in August 2009, prior to which he had been the Chief Operating Officer at European Minerals Corporation and responsible for the development and construction of the Varvarinskoye copper/gold project.  Since 2009, he has been instrumental in helping CAML to develop the Kounrad project from feasibility study through to construction.

Other than as set out in this announcement, there is no further information to be disclosed under Rule 17 or paragraph (g) of the Schedule 2 of the AIM Rules in respect of Mr Nicholson's appointment as a director of the Company.

Commenting on Mr Nicholson's appointment, Nigel Hurst-Brown, Chairman of CAML said: "I am delighted to welcome Howard Nicholson to the Board.  He brings a significant amount of technical experience and considerable knowledge of the mining environment in Kazakhstan, where he has worked extensively over the past 10 years.  We look forward to Howard's further contribution to the continued development of the Company and the Kounrad project."

Link to release


Mongolia Growth Group Ltd. Publishes November 2011 Monthly Letter to Shareholders

Calgary, Alberta CANADA, Dec 07, 2011 (Filing Services Canada via COMTEX) -- Mongolia Growth Group Ltd. (YAK - CNSX),is pleased to announce the release of its November 2011 letter to shareholders.

November 2011 Shareholder Letter

To the Shareholders of Mongolia Growth Group Ltd.,

November saw our company continue to acquire investment property, though at a somewhat reduced rate from October's pace as we did not complete any multi-million dollar transactions. We did make significant progress at improving the rental income from our properties as we have substantially reduced our vacancies over the past few months. More importantly, we have improved our procedures for rent collection. As I write this to you, we have approximately $7,400 of rent that is outstanding for more than 30 days. This is a dramatic improvement from only a few months ago. We have had no charge-offs to date.

We have begun negotiations with many of our tenants who have leases expiring in the first quarter of 2012. Thus far, the conversations have been very constructive with tenants understanding that market rents are often substantially above the rates where legacy contracts were signed, one or two years previously. We expect that many of our tenants will remain in their present locations upon renewals, which should help us to maintain our current low vacancy rate.

At Mandal, our insurance company, November saw us signing a number of insurance contracts with larger corporate clients. The pace of these signings started slow at inception, but has picked up substantially in the past few months as we have been successful at educating clients on the core values that we hold as an insurer. We are building up a reputation as a responsible member of the community and during November, Mandal co-sponsored the Annual Risk Management Forum with the The Business Council of Mongolia. Many of the senior executives at Mandal attended and shared their insights with the business community of Mongolia. Guest speakers also included high level government officials and many of the leaders in the Mongolian mining and finance industries. I could not attend, as I was in the US at the time, but I had many emails from attendees who were impressed by the scope of the event.

I should point out that on October 6, 2011, The Government of Mongolia passed a law mandating that all vehicle owners and drivers must purchase liablity insurance starting in January of 2012. The traffic police will be checking the drivers for this insurance starting in October 2012. Naturally, we feel that this is a positive for all auto-owners in Mongolia. We are evaluating the law and are preparing a marketing push for the second half of 2012. As the best capitalized insurance company in Mongolia, we are a logical choice for drivers seeking automotive insurance.

Finally, Mandal officially rolled out its dedicated Expat VIP services last week. It had been in beta testing for two months and the response has been very positive. Foreigners want a sales team that doesn't just speak their language when buying insurance; they want a full package that even involves a representative arriving at the scene of an accident and handling their insurance claim in their preferred language as well. Thus far we are impressed by the response from the Expat community and expect to roll out other innovative products in the coming months.


Harris Kupperman

Chairman & CEO

Link to release


Coal Mongolia 2012 Conference, February 9-10, 2012

( “Coal Mongolia” is a premier investment conference of the coal industry of Mongolia.

From its very inception, the conference has been fast gaining steam in both its scope and reputation.

The primary goal of this key event is to attract technical and financial investments into the coal sector of Mongolia, and that includes both extractive and mineral processing industries; to introduce the most advanced- environmentally and technically- practices that the country could embrace; to foster equally beneficial cooperation ties that would ultimately strengthen Mongolia’s competitiveness in the regional economy.

Link to Coal Mongolia 2012 website



Ulaanbaatar, Mongolia, December 7 /MONTSAME/ The President Ts.Elbegdorj received on Tuesday Abdulwahab Al-Bader, the director-general of the Kuwait Fund for Arab Economic Development (KFAED). 

Ts.Elbegdorj emphasized that the KFAED significantly contributed to the bilateral relations and cooperation. "With investments from the Kuwait Fund, three projects have been implemented successfully such as a construction of Taishir hydroelectric power station and of paved-roads in routes Darkhan--Erdenet and Erdenet--Bulgan--Unit. Now, two projects are being implemented," the President said. 

The fund's head expressed a readiness to cooperate with Mongolia by granting soft-loans to pilot projects drawn up with proper technical and economic justifications. The President put forward some proposals to the KFAED, such as projects on construction of a hydroelectric power station in Shuren and a paved-road between Tarialan and Moron. He asked Mr. Abdulwahab to give soft-loans for these projects.

The sides agreed to boost a collaboration between the Development Bank of Mongolia (DBM) and the KFAED. A cooperation memorandum was thus signed by KFAED director-general and by L.Bolormaa, the first deputy director of the DBM.

Link to article


Mongolia: Connecting for growth

December 6 (Oxford Business Group) Mongolia’s government has marked this year’s 90th anniversary of its telecommunications sector by pledging new ICT services in health, the transport system and emergency management.

Covering 1.6m sq km – roughly the size of Western Europe – yet with a population of only 3m, Mongolia has faced formidable challenges in its computerisation, e-literacy and internet access programmes. However, the industry has seen rapid progress in the past five years.

Government initiatives and the expanding economy have seen the number of internet users rise 16% year-on-year to an estimated 390,000 in 2011, while broadband users have increased from just 3500 in 2006 to 85,000 this year, according to local media. Meanwhile, the government’s “One Home One PCprogramme, which provides households with low-cost computers for around $250, increased nationwide PC penetration by 60% by 2009.

Also helping Mongolians connect is a 13,000-km long fibre optic cable that links more than 50% of all aimags (province) and 151 soums. There are over 70 internet service providers, which share 11.2 Gbps bandwidth and provide services including xDSL, fiber optic, 3G, and GPRS connections, according to the government’s 2011 white paper on ICT, published in April.

The white paper – a special edition to commemorate 90 years since the installation of the country’s first telegraphic equipment connecting Mongolia with the rest of the world – pledged to build on the country’s ICT advances.

The pledges included a number of initiatives in the health sector, with hospitals offering online appointment systems and a national system for the early warning of infectious diseases to be implemented at the National Centre for Communicable Diseases.

Ulaanbaatar is also planning an “intelligent transport system” for the capital using an integrated circuit card and an emergency management information system. In addition, a land and property registration system is being implemented with the funds from the Millennium Challenge Account, which allows placement and marking of properties and land in a geographical information system.

The planned advances in services complement progress in ICT’s contribution to the economy, with total revenues from the ICT industry reaching MNT471bn ($367.38m) in 2010, up from MNT140.4bn ($109.51m) in 2005.

Increased access and a proliferation of internet cafes nationwide has also spurred an explosion in the use of social networking websites. As of 2011 the country was home to 1823 blogs and 236,520 Facebook users, while domestic social networking site Biznetwork, developed in the Mongolian language, also now boasts over 70,000 users. In what could further encourage development of local content, Google announced in November that it would be including Mongolian in Google Translation, a website that translates more than 50 languages. The corporation has also emphasised partnering further with the country.

To extend availability across the country’s vast size, the government plans to launch a communications satellite by 2015. In another sign of the country’s commitment to ICT, firms bidding to become involved in the planned satellite have been invited to bid online in a system implemented by the Information, Communications Technology and Post Authority (ICTPA) as part of the country’s e-government strategy.

In September 2011 the ICTPA announced it was seeking a consultancy for a technical and economic feasibility study, as well as a preliminary design for a national communication and remote-sensing satellite. The country announced in February that it hopes to launch the satellite by 2015 with help from Japan for telecommunications and mobile phone services.

In e-governance, Mongolia was praised in the UN’s “E-Government Survey 2010” for ”a dramatic rise due primarily by efforts to enhance its national portal and ministry websites to offer more e-services and more online content”. The UN survey placed Mongolia 29 positions higher than the previous year, ranking it 53rd globally.

The country also plans to implement an e-procurement system, which is being developed with support from the Korean International Cooperation Agency, the World Bank and the Asian Development Bank. The project aims to have all government contract bids go through an e-shopping and e-bidding system when completed by the end of 2013, according to governance magazine Asia Pacific FutureGov. Officials told the magazine in January that the e-bidding system will increase transparency and efficiency.

“A lot of people do not want to bring in e-bidding because they do not want the system to change. E-bidding will put an end to conflicts of interest and personal interest,” said the general director of the procurement policy department for Mongolia’s Ministry of Finance, Gansogt Khurelbaatar. “This isn’t just about being paper-based; it’s more about transparency and availability of data reaching government.”

The government’s white paper also states that the country has carried out extensive work in developing the framework for a Mongolian Silicon Valley in 2011 in a bid to develop the domestic software industry. In April 2011, Sukhbaatar Batbold, Mongolia’s prime minister of Mongolia, met with Yoslan Nur, a programme specialist at UNESCO, and a number of delegates to discuss ICTPA plans to develop “innovation clusters”.

“The Mongolian government is paying close attention to implement high technology projects with the cooperation of the government and private entities,” the prime minister said. “I believe that UNESCO and the World’s Technology Park Association will share their experience with Mongolia in implementing many projects including ‘University Campus’, ‘Silicon Valley’ and other projects of high technology, education, research and science.”

Link to article (in Mongolian and English at bottom)



"Mogi" Munkhdul Badral

Senior Client Manager / Executive Director

CPS International LLC

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CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at or +976-99996779.



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