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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CPS Securities maintains a SPECULATIVE BUY recommendation on VOR
Foster Stockbroking Top Picks: Voyager Resources Ltd (VOR.ASX, $0.07/sh, Mkt Cap $95m) – Emerging Copper Explorer in ‘Minegolia’
February 9 (Foster Stockbroking) – Voyager Resources Limited (ASX:VOR) --
· We recently met with management from VOR for an update on the aggressive exploration program being undertaken at the company’s flagship KM Project in Mongolia.
· Since acquiring KM in early 2010, VOR has completed extensive geophysics and geochem followed by an aggressive 25,000m RC drill program across five key prospects. Drilling to date has highlighted the potential for a large mineralised porphyry system at depth sitting beneath a series of shallow hydrothermal breccia pipes, similar to that seen in large scale Chilean deposits. Results to date have impressed including shallow intercepts of 116m at 2.4% Cu and 7.2g/t Au (from 30m) and 50m at 3.5% Cu (from 30m). The project is located within the same geological terrain as one of the world’s largest undeveloped copper-gold deposits, the giant Oyu Tolgoi owned by Ivanhoe Mines and RIO. Based on work completed to date management have released a target resource of 50 – 150Mt at 0.8% - 1.0% Cu across the breccia pipes only (i.e. excluding the potential porphyry system) with a maiden resource due mid 2012.
· Mongolia is attracting significant investment from foreign miners and investors seeking exposure to the massively underexplored and prospective mineral wealth of the country and the close proximity to China, the world’s largest buyer of metals. Oyu Tolgoi and Tavan Tolgoi are two of the world’s largest undeveloped copper and coal deposits respectively located in the South Gobi region of Mongolia and we consider it highly likely that further major discoveries will be made as exploration expenditure continues to increase across the country. The Government is supportive of foreign capital as a means to develop large scale deposits such as Oyu Tolgoi and Tavan Tolgoi. Heavyweights such as RIO, Vale, Peabody, Xstrata, Banpu and Ivanhoe all now have an active presence in Mongolia as do trading houses Noble and Trafigura.
· The board and senior management team of VOR have a proven track record of adding significant shareholder value via the acquisition and exploration of assets in Mongolia. This was best illustrated last year when their Mongolian coal vehicle, Hunnu Coal (HUN.ASX), was acquired by Thai giant Banpu for almost $500m in cash at $1.80/sh. HUN listed in early 2010 at $0.20/sh.
· In our view M&A will remain an ongoing theme in Mongolia throughout 2012 with the issuance of new exploration licences being put on hold for the foreseeable future. Consequently the only way for corporates to gain exposure to the prospectivity of Mongolia is via M&A. This was highlighted last year with Banpu’s takeover of Hunnu Coal. Other transactions which have the potential to act as further catalysts for the region include the multi-billion dollar IPO of state-owned Erdenes Tavan Tolgoi in London prior to the elections (June 2012) and the potential takeover of HK-listed SouthGobi Resources with Ivanhoe Mines’ 57% stake likely to be divested should major shareholder RIO acquire Ivanhoe as is widely expected.
· We will be marketing with management to institutions in Hong Kong and Australia later this month.
NOVA closed flat at 30.5p on Friday. Subscription price at 7.5p
Nova: Subscription and Issue of Loan Notes
February 10, Nova Resources Limited (NOVA:LN) --
The Company is pleased to announce that it has raised £825,000 by way of a subscription for shares (the "Subscription") with various investors (the "Investors") and from the issue of a convertible unsecured loan note 2015 (the "Notes"). The proceeds of the Notes and Subscription will be used for working capital and to execute Nova's investing policy.
Subscription
The Company has raised £765,000 through a subscription of 10,200,000 new ordinary shares of par value £0.01 each ("Ordinary Shares") in the capital of the Company at the subscription price of £0.075 each (the "Subscription Shares") to the Investors. The Subscription represents 12.7% of the enlarged share capital of the Company at Admission.
Application will be made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM and it is expected that Admission will be effective and trading will commence at 8:00 am on 17 February 2012. Following Admission, the Company will have 80,200,000 Ordinary Shares in issue. Since the Company holds no shares in Treasury, the total number of voting rights in the Company is therefore 80,200,000 and this figure may therefore be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.
The Notes
The Company has raised £60,000 from the issue of the Notes. The salient terms of the Notes are as follows:
a) The holder of the Notes (the "Noteholder") has the right, but not the obligation, to convert the principal amount outstanding to newly issued Ordinary Shares in the capital of the Company at the subscription rate of £0.075 for each Ordinary Share.
b) There is no interest on the amount outstanding. If all or part of the Notes is not converted by 31 March 2015, Nova shall pay to the Noteholder the principal.
None of the Investors nor Noteholders are related to any director or substantial shareholder of the Company.
If the total value of the Notes are converted, 800,000 Ordinary Shares of par value £0.01 each in the capital of Nova will be issued, which represents 1% of the enlarged issued share capital of Nova. On a fully diluted basis, following conversion of the Notes together with conversion of all outstanding options and warrants, but not including the convertible loan notes that may or may not be issued pursuant to the Investment Facility with Odin Structured Advisory Services LLP announced on 5 January 2012, an additional 37,300,000 shares of par value £0.01 each would be issued, giving a total number of Ordinary Shares in issue of 117,500,000.
Mongolia coal rail plans delayed on financing issues
Feb 10 (Reuters) - Mongolia's ambitious plan to build a railway network capable of delivering its surging coal output to foreign markets is likely to be delayed as a result of financing difficulties and bureaucratic deadlocks, government officials said on Friday.
Purevbaatar Luvsandavag, vice-chairman of the Mongolia Railway Authority, told Reuters on the sidelines of the Coal Mongolia conference in Ulan Bator that the government had not even raised the $50 million required to fund a series of feasibility studies and project designs drawn up last year.
"We still don't have permission from the government to announce an open tender to build the railways, and in general there is still a deadlock when it comes to funding and building infrastructure," he said.
He said the government had sought funding for the projects through overseas equity markets, instead of the railway authority's preferred option involving public-private partnerships with investors from Japan and South Korea.
J. Bat-Erdene, state secretary at Mongolia's transportation ministry told the conference on Thursday that the government was planning to list 49 percent of state-owned Mongolian Railway Corp on the domestic stock exchange to raise funds for construction.
Mongolia is experiencing a mining boom that is expected to transform its tiny economy in the coming decade, but it has so far struggled to monetise its copious mineral reserves and needs to spend billions of dollars on developing a transportation network capable of reaching consumers.
The government is also wary of the geopolitical and economic risks of being overly dependent on its giant southern neighbour, China, even though it has a guaranteed market for copper and coking coal.
Mongolia exported 22 million tonnes of coal in 2011, with virtually all of it delivered south to China at more than $25 per tonne lower than the international average.
It plans to build an extensive cross-country railway that would eventually connect its huge Tavan Tolgoi coal project in the south Gobi desert to the rail networks of Russia, giving it access to markets in Japan and South Korea, but critics have said the route is not economically feasible.
The government remains reluctant to give permission for Mongolian Mining Corp (MMC) to construct its own 267-km private railway into China, saying a pre-existing route into China would make it more difficult to attract financing for the route east into Russia.
An MMC official told Reuters the company was "still waiting" for the project to be approved.
Construction on the two routes -- east into Russia and south into China -- is expected to begin at the same time, but Baasanjav Enkhbaatar of the World Bank's mining infrastructure investment support project told the conference that neither project was likely to begin before 2017.
Bit of a squeeze in Ulan Bator
February 10 (FT Blog) While the rest of the world talks about monetary easing, in Mongolia, the resource-rich nation of 3m, there is a credit crunch.
Mongolia’s GDP grew at more than 15 per cent last year, sparking fears of overheating and inflation concerns that have prompted the government to tighten monetary policy. As a result, banks have faced a liquidity crunch since last autumn and commercial loans are hard to come by in Ulan Bator these days.
Mongolia recently raised capital adequacy ratios and interest rates in a bid to cool inflation, which has become a hot political issue with the Mongolian election coming up this summer.
The tightened monetary policy has left banks scrambling for cash. As the FT reported:
“The banks are out of money now,” said Peter Morrow, former chief executive of Khan Bank, one of Mongolia’s largest. “Liquidity was very high a year ago but it’s been burned up because there is such high growth and high lending.”
Bankers and analysts in Ulan Bator believe that in the current climate, Mongolian banks will increasingly look overseas for capital. Right now Mongolia’s banks have foreign liabilities of around 8 per cent, but that is expected to increase as banks go abroad to issue bonds.
Sardor Koshnazarov, economist at Eurasia Capital, explained that Mongolia’s capital needs will keep growing:
Banking assets to GDP are around 87 per cent, so one might get the impression that banks are well capitalized. But if you look at the next three or four years, when there will be large multibillion dollar mining projects, major infrastructure developments, urbanization and especially a housing programme – all of these will require substantial investment, which would not be available from the banking sector. We believe that banks are undercapitalized to provide financing for those projects going forward in the next four to five years.
Some foreign banks have already sniffed opportunity: on Thursday, Goldman Sachs bought a small stake in Mongolia’s privately owned Trade and Development Bank. Expect more to come.
CPSI is a supporting organization to the Mongolian Economic Forum
MONGOLIAN ECONOMIC FORUM 2012, MARCH 5-6
Ulaanbaatar, Mongolia, February 10 /MONTSAME/ A policy discussion called “Mongolian economic forum 2012” will be held on March 5-6.
It was reported on Friday by S.Oyun MP; Ch.Gankhuyag, the Vice Minister of Finance; Ch.Khashchuluun, a head of the National Development and Innovation Committee; and P.Tsagaan, a senior advisor to the State Head.
According to them, this event will run for the third time, now under a motto “Together for development”. Sub-meetings will be organized under themes “Economic development: Development with participation”, “Social policy: Balanced growth” and “Competitiveness: Innovation and eco solution”.
The first one will discuss issues such as a proper management for mineral resource income, economic specialization, budgetary regulation and control from taxpayers, risk and its management, dependence on oil products and overcoming it, economic growth and financial sector.
The second sub-meeting will discuss poverty, health matters and pension system, whle the third will touch upon innovation environment, technological solutions, renewable energy and solution for water sources.
In addition, the event will consider Mongolia's rank of economic competitiveness among some 200 countries, and will release a note instead of any decision or declaration.
DP caucus postpones Tavantolgoi discussion
February 10 (news.mn) The DP caucus took a recess from Friday’s session of Parliament, postponing discussion of proposed amendments to Parliament’s 39th protocol on the Tavantolgoi mining project. The proposed amendments were submitted separately by Ya.Batsuuri and D.Odbayar.
Both amendments would see ten percent of the project’s shares distributed among all citizens for free. Another ten percent, originally intended to be sold to domestic organizations, would also be distributed to citizens for free. Another ten percent would still be sold to domestic organizations. Under the proposed amendments, 20 percent of the project’s shares would be equally distributed among the country’s 2.7 million citizens.
DP caucus chairman Ch.Saikhanbileg said the caucus supports the proposals, but he requested a recess from the discussion because, he said, a joint DP-MPP working group should discuss the two proposals first.
But S.Byambatsogt said the session should discuss the proposals, and unresolved issues could be discussed in the second discussion.
Deputy Speaker N.Enkhbold accepted the DP caucus’s request and postponed discussion of the two proposals.
“Coal Mongolia” forum: Mongolia has 175 billion tons of coal
February 10 (news.mn) At the “Coal Mongolia 2012” forum on Thursday, attendees discussed current trends in coal mining, investment opportunities, coal reserves, infrastructure issues, environmentally-friendly mining, and coal processing.
According to statistics, Mongolia exported 16 million tons of coal in 2010 and 21 million tons in 2011. Secretary State of the Ministry of Road, Transportation and Urban Development J.Bat-Erdene outlined the state’s policy on coal transportation at the forum. He noted that a railway construction program was recently ratified because transporting coal by heavy trucks has negatively impacted the ecosystem of the Gobi region.
J.Bat-Erdene said the Government plans to build 5,683 km of new railways in three phases to Russia and China, and Parliament ratified the plan in 2011. He said the Government plans to finish the work in six years, and the first phase of 1,300 km will begin this year. He noted that the total cost of new railway construction is an estimated USD 5 billion, and the Government decided to finance USD 55 million for the first phase.
National Development and Renovation Committee Chairman Ch.Khashchuluun read a report and noted that Mongolia aims to be more than a coal exporter. He said the state plans to increase coal exports to 100 million tons a year, but coal will also be used domestically in the energy, oil, and chemical sectors.
China is the largest market for Mongolia’s coal, and many Chinese delegations are taking part in the forum. They are interested in the Government’s policy in the coal sector.
Deputy Mineral Resources and Energy Minister Ts.Garamjav said international investors consider the forum significant. Mongolia has the 15th largest coal reserve in the world, with an estimated 175 billion tons. The Government has decided to develop processing factories that could end Mongolia’s dependence on petroleum imports. First of all, Ts.Garamjav said, we should decide infrastructure issues to develop production and run environmentally-friendly operations.
N.Enkhtaivan, director of the Ministry of Foreign Affairs and Trade’s Foreign Trade and Economic Cooperation Office, said Mongolia increases coal exports year by year, but we sell our coal at a cheap price to China because, firstly, Mongolia does not have adequate infrastructure, and secondly, the Chinese government has avoided buying processed coal from Mongolia. China levies high customs taxes on processed coal imported from Mongolia, and this shows that China is more interested in buying raw coal. Also, Inner Mongolia has a large coal reserve. But Mongolia should not sell its coal at a price 25 to 50 percent lower than the Chinese domestic price. Mongolia lost USD 600 million in coal revenue in 2011 due to poor infrastructure.
N.Boldkhuu, deputy head of the Ministry of Mineral Resources and Energy’s Fuel Policy Board, said the ministry is concluding talks with South Korea to resume Nalaikh mining.
The forum is continuing on Friday.
LAW ON CREDIT GUARANTEE PASSED
Ulaanbaatar, Mongolia, February 10 /MONTSAME/ On Friday, the parliamentary session passed a draft law on credit guarantee and related top it laws after final discussions.
Approved by 70.2 per cent of MPs, the law on credit guarantee is to help develop small- and middle-sized productions, especially those who, when starting a business, face problems due to difficult situation when there is no pledge to be held as security for taking loans, and when commercial banks do not issue loans.
Chamber of Commerce: The roadmap of doing business in Mongolia
January 26 (Mongolian National Chamber of Commerce and Industry) This book is about how easy/difficult to do business in Mongolia, describing the procedures and steps to be taken by businesses.
These analysis and facts are not so well known among broad public and policy makers should know about them as it is necessary for them to know why and how red tapes, excessive regulations born and why it is important to remove them and what are the right directions for reforming the business environment.
And it would be also useful tool for researchers and policymakers in monetary sector of the country to understand the main cause and reasons of inflation spiral within the supply chain, where the business process analysis of certain export and import products including some essential for population foodstuffs, show where and how “the cost added” process occurs, thus indicating what kind of policy actions should be taken to manage inflation, at socio-economically desirable level.
Finally, this book is, indeed, “Convincing tool” in favour to trade facilitation, where Mongolia needs to take decisive actions to improve World Bank doing business index in particular its sub index entitled "Trading across borders"
Newly appointed Minister oversees Mongolia’s first compressed fuel factory
February 11 (UB Post) A project to manufacture compressed fuel in a Mongolian factory will begin this May, despite projections that predicted production as early as January.
When the factory starts running at full capacity, it will supply 210 thousand tonnes of compressed gas to the citizens of Ulaanbaatar. As the coal is manufactured by coking, it will emit ten times less air pollution than regular processes.
The price of compressed fuel gas is higher than coal, but it will be delivered to the citizens at a lower price thanks to the Clean Air Foundation. The factory can expect profit margins within 12 years. Newly appointed Minister for Nature, Environment, and Tourism D.Tsogtbaatar was given a tour of operations on February 7.
“To have this factory built, we used the tax money of the citizens. Therefore, we will be considereding public health as a priority over Government profits. We also need to get things done on time and according to plan,” he said to the administrator of the factory. He also asked them to report progress every two weeks until its completion in May.
After his visit, he met with the citizens of Songinokhairkhan District and Bayanzurkh District. He committed to working hard to decrease air pollution by studying every technology viable for use in Mongolia.
MPs reject proposed loan agreement with South Korea
February 11 (news.mn) Parliament on Friday rejected a proposed agreement for Mongolia to borrow money from South Korea’s Economic Development Cooperation Fund.
The loan would have helped fund a national center for diagnostics and treatment, a wholesale trade center, a coal-processing facility, and production of a state-of-the-art map of Mongolia.
L.Gundalai said state capital should not be spent on “useless things,” and loan agreements should focus on projects that are necessary for the country’s development. He also mentioned that the wholesale trade center would sell Korean goods.
MPs Ya.Batsuuri and noted that projects financed by South Korean loans have been of a poor quality and have used outdated technologies, such as the power plant in Umnugobi aimag that is always frozen.
The head of the working group that prepared the proposal noted that the national center for diagnostics and treatment has already been approved at a Government meeting.
MPP gets 1,000 new members
February 11 (news.mn) On Friday, 1,000 citizens joined the MPP in a ceremony at the party’s Independence Palace headquarters. The new members received party certificates.
The new members applied to join through the Bayangol district’s MPP Committee. MP Ts.Munkh-Orgil, Bayangol District Governor L.Amgalan, and Social Democracy and Mongolia’s Youth Union President L.Oyun-Erdene helped make arrangements for the new members to join the party and they presented them with their party certificates.
Ts.Munkh-Orgil said the new members represented the generations of youth, the middle-aged, and the elderly. He said 90 years of Mongolia’s development is related to the MPP and the party will work with the new members to further progress. He expressed his appreciation of the new members’ decision to join the MPP and he noted that the party is “widening its front.”
L.Amgalan said Bayangol District has a population of 192,000, and residents of the district prefer the MPP, as seen by the 1,000 new members. She noted that many women and elderly people choose to join the MPP.
Mongolia: Investing in health
D. Zorigt, the minister of mineral resources and energy as well as the head of the Mongolian People Party's working group on the HDF, told local media in January that the fund is being used to build wealth for future generations and to bring vulnerable social groups such as students and herders under the government's umbrella of health insurance.
“Mining and infrastructure are important,” said Zorigt. “But more important is the development of health, education, social insurance and a place to live. The money in the fund will be invested in these.”
The Mongolian parliament endorsed the National Development Strategy in 2008 with the goal of raising Mongolia’s human development status to that of developed countries by 2020. The HDF was also created in 2008 following the study of resource wealth management strategies in Chile, Alaska and Norway in hopes of building a system to ensure each Mongolian takes a share of the nation’s mineral wealth.
Initial capital for the fund was drawn from the vast Oyu Tolgoi copper and gold mine project. That mine is estimated to account for 30% of Mongolia’s GDP when completed in 2013, generating $30bn in tax revenue over 50 years, according to the Brookings Institution, a public policy organisation in Washington, DC. Additional revenues for the HDF will come from development of Mongolia’s $2bn Tavan Tolgoi coking coal deposit, the largest in the world.
In November, S. Bayartsogt, then the minister of finance, announced that by July 2012 the HDF will allocate MNT128,000 ($90) to every citizen. Additionally, women aged 55 and over, men aged 60 and over, as well as the disabled, are to receive a one-time allowance of MNT1m ($704), said Bayartsogt.
Human development indicators compiled by the UN Development Programme (UNDP) revealed last November that the HDF is already having an impact, with Mongolia ranked 110th out of 187 countries. It garnered a Human Development Index of 0.653, up from 0.647 in 2010, which is measured by life expectancy, access to education and standard of living, and linked to gross national income per capita (graded from 0.1). The UNDP found between 1980 and 2011, Mongolia’s life expectancy at birth had increased by 11.2 years, mean years of schooling had risen by 2.6 years and expected years of schooling had increased by 3.3 years.
Officials stress education is another key area of the HDF's focus, with 133,000 students set to receive MNT500,000 ($352) from the fund for tuition fees in 2011, Yo. Otgonbayar, the minister of education, culture and science, told local media in August 2011. The government has committed to continuing these payments in 2012, with each student to be granted MNT491,960 ($346). The fund also pays for a student’s health insurance.
A further MNT9.3bn ($6.5bn) had been spent from the HDF on attracting new members to the country's health insurance scheme, Prime Minister S. Batbold said. As the world’s least densely populated country, Mongolia faces unique challenges in health care provision, including severe under-investment in the 1990s, the country’s vast expanses and herders’ nomadic lifestyle.
According to the Ministry of Health, as of 2009, there were 2.57 physicians per 1000 population in urban areas, with 2.75 physicians per 1000 in rural areas. The country was home to 16 specialised hospitals, four regional diagnostic and treatment centres, 17 subdivision (aimag) general hospitals, 12 district general hospitals and six rural general hospitals.
J. Tsolmon, Mongolia’s vice-minister of health, told media in November 2010 the country's health system was “in a transitional phase from a Soviet to a modern era. Lack of infrastructure and bad roads make proper treatment and diagnosis difficult. This is why people often get diagnosed late,” she said.
While Mongolia's HDF has the potential to vastly contribute to the nation's well-being through improving health services, exactly where funds are to be allocated will continue to be a divisive political issue, with implications on parliamentary elections in June of this year, as well as presidential elections scheduled for May 2013. Improving the long-term capacity of the country’s health sector, however, could prove a prudent way to invest the mining sector’s forthcoming wealth back into the country.
In Pursuit of Innovative Products
February 12 (UB Post) What makes developed countries richer than others?
Businesses and governments of developed countries spend billions on research and development funds attempting to invent new technologies. These funds end up with us using smart phones, and watching flat screen TVs. Although the knowledge revolution is giving to us an opportunity to raise living standards it is also raising risks that developing countries may fall behind.
“The world is divided into two kinds of people: those who make innovative products and those who just buy them at high prices” says Dr. Ts.Davaadorj, Director of the Information and Analytical Service at Office of National Security Council of Mongolia, during the discussion entitled “Innovation Environment & Technology” which was held last Thursday.
“Today, the people who can own technology get richer, while those who can`t get poorer” he added.
What happens with Mongolia then?
The fact is that Mongolia is now one of the world`s fastest growing economies.
“It’s not surprising, as many other resource rich countries feel the same,” says B.Ganbat, Director of Department of Innovation Policy of the National Development and Innovation Committee (NDIC).
“However, economic growth and economic development are different concepts.”
Mongolia must make the transition to a knowledge-based economy to truly develop.
As of 2010, looking at the total exported products of Mongolia, 83% are produced with non-technological content while only 0.02% are produced with high-tech content.
Should we continue exporting natural resources at lower prices and importing end products at higher prices?
“There is a lack of contribution to the science and technology sectors in economic growth,” explains Ganbat. “Our knowledge sector is not improving.”
In today’s rapidly developing world, adopting a knowledge-based economy and investing in intellectual properties has become one of the most efficient ways to utilize capital. It is encouraging that the Government has started paying attention to this and has adopted the Master Plan of Science and Technology 2007-2020.
As a result, in recent years, science expenditures have increased significantly. In 2010, the science sector budget expenditure was 14 billion MNT, twice higher than in 2007. More than 460 science projects have been implemented. So, could we conclude that the innovation environment is getting better?
According to the Law on Science and Technology adopted in 2006, the word “innovation” is described as, “a transformation of the results and products of researchers and introducing the end products to industries and services.”
However, Government funded research often stops, fails, or makes no progress. It is really sad to see so many great ideas not reach the market place. The Intellectual Property Office of Mongolia had registered only three new products in 2010. Why we can`t create innovative products?
“The state is not innovative itself” says Ganbat.
For instance, although the Law on Innovation has been discussed since 2007, it`s not adopted yet.
The Ulaanbaatar Songdo Hospital completed n agreement with the Ministry of Health in order to establish a cord blood bank.
“Mongolia has great potential to develop stem cell therapy,” says Dr. B.Boldsaikhan. “But we made a mistake, as we have no experience completing such an agreement. We recognized that the Ministry becomes the property owner of our idea”
The fact that the Government becomes the owner of inventions made with budget money worries researchers who must invest their time and energy to come up with new technologies.
When compared to other countries, it appears as if the science and technology sector activities of Mongolia are funded solely by the Government budget. And it is extremely difficult for Mongolian researchers to raise money as venture capital is not introduced and developed.
“We are creating a design for a 4G wireless chip and trying to involve businesses in that project. But we face lots of barriers as the significance of the innovation process is not recognized by Mongolian businesses. We don`t want to get Government support, because they might cause problems with patents” says Ch.Lodoiravsal, Director of School of Information Technology at National University of Mongolia.
As we can see, the Government could support the innovation not by subsidizing new technology but by guarding it.
“We want the right to market and sell our inventions. We need the legal environment to have a patent on what we make. That`s all we want from the Law on Innovation” echoed representatives from Universities.
“Most importantly, the Government should wake up the society. Mongolians must recognize that it is a big business” says Davaadorj.
In order to establish innovation, state involvement to coordinate and provide assistance is essential.
Of course, the private sector wants to jump from using older, less productive technologies to the most productive, cutting-edge technologies. However, many prefer to import advanced technology from abroad, rather than invest in innovation that may fail.
If many good products and technologies are already ready, should we waste money and time trying to make the same?
“We are not talking about making, for example, a satellite domestically,” explains Ganbat. “We need to make what we can and what is important for us”.
That`s the principle ‘Make some, buy some’.
The NDIC has set priority directions for Mongolian science. These are medicine, energy, construction, agriculture, IT and, of course, deep processing of raw materials.
“We need to combine efforts in some directions with future prospects in order to get a synergy effect,” pointed out Lodoiravsal. “I hope that the time will come when Mongolians will compete on global markets with chips.”
Domestic producers showcase goods at Made in Mongolia Exhibition
February 12 (UB Post) The Made in Mongolia exhibition at the Misheel Expo Center opened on Thursday, February 9 and will run until February 13.
Over 180 individuals and private companies with around 800 product brands are taking part in the exhibition. 41 companies are from the food industry, 21 are from the wool industry and 28 are from the skin and hide industry.
Additionally, there were medical and jewelry products on sale. The aim of the exhibition is to promote the purchasing of domestic products during the Lunar Month Holiday instead of imported products.
Some retailers had the prices of their products reduced by up to 30 percent.
Food products included sausage, biscuit, cookies, cakes, and dairy products. Many were unique to their respective areas, such as dried fish, various kinds of honeys and teas.
Ts. Nyam-Osor, Director of Small and Medium Sized Enterprises (SME), answered a few questions at the exhibition.
What is the special about this year’s Made in Mongolia exhibition?
This is the sixth year the Made in Mongolia exhibition is being organized. Over the past 3 years, small and medium sized enterprises have grown greatly and their collaborations have widened.
As a result, there are many new small enterprises starting their businesses. This year is special because there were so many producers that implemented new and cutting edge technologies in their production. This significantly affected the overall domestic production and its supply for Mongolians.
The ultimate goal of the exhibition is to show people the current progress of Mongolia’s domestic producers, and develop the domestic market by providing more information about domestic production companies.
Another important goal is to supply people with the necessary products at low prices during the Lunar Month Holiday period; without any middleman or separate distributor between suppliers and consumers.
How would you define the quality of Mongolian domestic products?
The quality, design, and style of Mongolian domestic products are improving every year.
We have successfully begun producing vegetable oil in Mongolia. We now have five canned and bottled vegetable producers that supply over 70 percent of demand for the product in Mongolia. Shoe producers have doubled in numbers. In 2008, 28 million eggs were produced and in 2011 it was increased to 78 million eggs, supplying over 80 percent of Mongolia’s demand.
Has the amount of exported products increased?
Currently, hide and leather, wool and cashmere, and construction materials are exported. In the future, winter shoes and boots will be exported. Domestic producers have begun making area-specific brand products.
Our priority is to completely support the demand of Mongolia before we pay our full attention to exporting products. We are spending USD 20 – 30 million on imports for dry milk and vegetable oil. It is important to have these types of products circulating in the domestic market first.
Table: Mongolia Related Stocks (Source: Bloomberg)
Name | Symbol | $ | Price | Change | +-% | Open | High | Low | Volume | Time | % YTD | % 12 m | |
Indices | ASX 200 | 4,245.33 | -37.54 | -0.88% | 4,281.10 | 4,288.60 | 4,245.30 | 0 | 10-Feb | ||||
Nikkei 225 | 8,947.17 | -55.07 | -0.61% | 9,010.53 | 9,016.97 | 8,947.17 | 0 | 10-Feb | |||||
Hang Seng | 20,783.86 | -226.15 | -1.08% | 20,986.25 | 21,002.33 | 20,703.79 | 0 | 10-Feb | |||||
MSE Top 20 | 20,924.30 | -16.90 | -0.08% | 20,924.30 | 20,924.30 | 20,924.30 | 0 | 10-Feb | |||||
FTSE 100 | 5,852.39 | -43.08 | -0.73% | 5,895.47 | 5,895.47 | 5,839.85 | 914,056 | 10-Feb | |||||
TSX Composite | 12,389.42 | -108.52 | -0.87% | 12,403.02 | 12,458.42 | 12,328.92 | 192,173,633 | 10-Feb | |||||
S&P 500 | 1,342.64 | -9.31 | -0.69% | 1,351.21 | 1,351.21 | 1,337.35 | 0 | 10-Feb | |||||
ASX | Aspire Mining | AUD | 0.43 | 0 | 0.00% | 0.435 | 0.435 | 0.425 | 669,884 | 10-Feb | 16.22% | -31.75% | |
Blina Minerals | AUD | 0.005 | 0 | 0.00% | 0.005 | 0.005 | 0.005 | 0 | 8-Feb | 0.00% | -83.33% | ||
Cougar Energy | AUD | 0.015 | 0 | 0.00% | 0.014 | 0.016 | 0.014 | 2,185,000 | 10-Feb | -6.25% | -11.76% | ||
Draig Resources | AUD | 0.52 | -0.015 | -2.80% | 0.535 | 0.535 | 0.52 | 170,000 | 10-Feb | 0.00% | -36.59% | ||
FeOre | AUD | 0.26 | 0 | 0.00% | 0.26 | 0.26 | 0.26 | 0 | 8-Feb | -7.14% | 0.00% | ||
General Mining | AUD | 0.105 | 0.005 | 5.00% | 0.1 | 0.11 | 0.1 | 345,331 | 10-Feb | 156.10% | -27.59% | ||
Guildford Coal | AUD | 0.825 | -0.015 | -1.79% | 0.83 | 0.83 | 0.81 | 611,850 | 10-Feb | 10.00% | 7.14% | ||
Haranga Resources | AUD | 0.34 | -0.01 | -2.86% | 0.355 | 0.355 | 0.33 | 416,203 | 10-Feb | 19.30% | -46.46% | ||
Modun Resources | AUD | 0.04 | 0 | 0.00% | 0.041 | 0.041 | 0.04 | 818,777 | 10-Feb | -11.11% | 263.64% | ||
Mongolian Res Corp | AUD | 0.15 | 0 | 0.00% | 0.15 | 0.15 | 0.15 | 0 | 7-Feb | 20.00% | -62.03% | ||
Robe Australia | AUD | 0.016 | 0 | 0.00% | 0.016 | 0.016 | 0.016 | 496,758 | 10-Feb | 14.29% | -14.44% | ||
Voyager Resources | AUD | 0.07 | 0.001 | 1.45% | 0.069 | 0.07 | 0.068 | 901,344 | 10-Feb | 2.94% | -35.92% | ||
Xanadu Mines | AUD | 0.38 | -0.01 | -2.56% | 0.38 | 0.38 | 0.38 | 32,137 | 10-Feb | 10.14% | -44.93% | ||
MSE A Board | Aduunchuluun | MNT | 5,835 | -65 | -1.10% | 5,899 | 5,899 | 5,835 | 887 | 10-Feb | -2.75% | -75.43% | |
APU | MNT | 4,100 | 100 | 2.50% | 4,020 | 4,100 | 4,020 | 6,122 | 10-Feb | -2.38% | 20.59% | ||
Atar Urguu | MNT | 38,000 | 0 | 0.00% | 38,000 | 38,000 | 38,000 | 0 | 2-Feb | 0.00% | 31.03% | ||
Baganuur | MNT | 8,602 | -898 | -9.45% | 9,400 | 9,400 | 8,601 | 765 | 10-Feb | -34.34% | -75.35% | ||
Mogoin Gol | MNT | 28,000 | 0 | 0.00% | 28,000 | 28,000 | 28,000 | 10 | 10-Feb | -9.68% | -35.93% | ||
BDSec | MNT | 3,300 | 0 | 0.00% | 3,300 | 3,300 | 3,300 | 101 | 10-Feb | -5.71% | 6.45% | ||
Bayangol Hotel | MNT | 38,000 | 0 | 0.00% | 38,000 | 38,000 | 38,000 | 177 | 10-Feb | 5.70% | 21.79% | ||
Bayanteeg | MNT | 36,500 | 0 | 0.00% | 31,600 | 36,500 | 31,600 | 0 | 30-Jan | 1.39% | 50.03% | ||
UB BUK | MNT | 28,000 | 0 | 0.00% | 29,000 | 29,000 | 28,000 | 0 | 7-Feb | -13.85% | 143.46% | ||
Eermel | MNT | 2,711 | -89 | -3.18% | 2,711 | 2,711 | 2,711 | 85 | 10-Feb | -3.18% | -44.56% | ||
Gobi | MNT | 5,000 | 0 | 0.00% | 4,999 | 5,000 | 4,950 | 320 | 10-Feb | -2.91% | -27.54% | ||
Gutal | MNT | 2,900 | -400 | -12.12% | 2,900 | 2,900 | 2,900 | 5 | 10-Feb | 0.00% | -31.13% | ||
Hi B Oil | MNT | 180 | 0 | 0.00% | 180 | 180 | 180 | 0 | 9-Feb | -5.26% | -10.00% | ||
Khukh Gan | MNT | 186 | 0 | 0.00% | 186 | 186 | 186 | 270,300 | 10-Feb | -7.00% | 5.08% | ||
Hermes Centre | MNT | 75 | 3 | 4.17% | 72 | 78 | 72 | 125,888 | 10-Feb | 33.93% | 29.31% | ||
Jenko Tour Bureau | MNT | 98 | 0 | 0.00% | 96 | 100 | 96 | 15,852 | 10-Feb | 4.26% | -6.67% | ||
Telecom Mongolia | MNT | 2,750 | 0 | 0.00% | 2,450 | 2,750 | 2,450 | 0 | 9-Feb | 1.85% | -29.49% | ||
Mongolia Dev Res | MNT | 1,000 | 0 | 0.00% | 1,000 | 1,000 | 1,000 | 1,910 | 10-Feb | -0.99% | -41.18% | ||
Moninjbar | MNT | 150 | 0 | 0.00% | 149 | 150 | 149 | 0 | 7-Feb | 15.38% | 0.00% | ||
Mongol Nekhmel | MNT | 4,000 | 0 | 0.00% | 3,100 | 4,000 | 3,100 | 0 | 3-Feb | 21.95% | 75.82% | ||
Hotel Mongolia | MNT | 800 | -14 | -1.72% | 810 | 810 | 800 | 18,436 | 10-Feb | -11.01% | 19.40% | ||
Darkhan Nekhii | MNT | 6,500 | 0 | 0.00% | 6,500 | 6,500 | 6,500 | 106 | 10-Feb | 4.84% | -36.89% | ||
Nak Tulsh | MNT | 189 | 3 | 1.61% | 186 | 189 | 186 | 34,365 | 10-Feb | 8.00% | -40.94% | ||
Olloo | MNT | 187 | -8 | -4.10% | 187 | 187 | 187 | 51 | 10-Feb | -21.76% | 10.65% | ||
Remikon | MNT | 177 | 3 | 1.72% | 174 | 177 | 174 | 178,036 | 10-Feb | 0.57% | 20.41% | ||
Sharyn Gol | MNT | 11,000 | 0 | 0.00% | 11,101 | 11,101 | 11,000 | 0 | 8-Feb | -3.08% | -54.23% | ||
Shivee Ovoo | MNT | 14,700 | 0 | 0.00% | 14,700 | 14,700 | 14,100 | 314 | 10-Feb | -3.92% | -57.40% | ||
Sor | MNT | 3,000 | -200 | -6.25% | 3,200 | 3,500 | 3,000 | 169 | 10-Feb | -21.47% | 100.00% | ||
Suu | MNT | 74,000 | 0 | 0.00% | 74,000 | 74,000 | 74,000 | 0 | 7-Feb | 13.85% | 0.00% | ||
Tav | MNT | ||||||||||||
Talkh Chikher | MNT | 11,500 | 100 | 0.88% | 11,490 | 11,500 | 11,489 | 1,398 | 10-Feb | 9.52% | -15.98% | ||
Tavantolgoi | MNT | 11,000 | 20 | 0.18% | 10,990 | 11,000 | 10,990 | 65 | 10-Feb | 0.00% | 10.55% | ||
State Dept Store | MNT | 500 | 20 | 4.17% | 475 | 510 | 475 | 2,445 | 10-Feb | -13.79% | -33.42% | ||
Ulaanbaatar Hotel | MNT | 52,000 | -1 | 0.00% | 52,001 | 52,001 | 52,000 | 3 | 10-Feb | 15.56% | 63.32% | ||
Mongol Savkhi | MNT | 2,100 | 100 | 5.00% | 2,000 | 2,100 | 2,000 | 105 | 10-Feb | -18.82% | 191.67% | ||
Zoos Goyol | MNT | 853 | -27 | -3.07% | 851 | 900 | 851 | 967 | 10-Feb | -9.26% | -38.63% | ||
HKEx | Solartech Int’l | HKD | 0.172 | -0.007 | -3.91% | 0.18 | 0.181 | 0.168 | 27,656,530 | 10-Feb | -2.82% | -76.76% | |
Winsway | HKD | 2.17 | -0.11 | -4.82% | 2.3 | 2.34 | 2.15 | 22,030,000 | 10-Feb | -5.24% | -44.32% | ||
SouthGobi Resources | HKD | 54.65 | -1.1 | -1.97% | 55.2 | 55.85 | 54.5 | 27,750 | 10-Feb | 19.98% | -53.80% | ||
China Gold | HKD | 25 | 0.15 | 0.60% | 25.4 | 25.4 | 24.8 | 43,100 | 10-Feb | 37.36% | -37.34% | ||
CNNC Int’l | HKD | 2.91 | -0.23 | -7.32% | 3.14 | 3.18 | 2.85 | 6,100,000 | 10-Feb | 44.06% | -56.63% | ||
Real Gold Mining | HKD | 8.81 | 0 | 0.00% | 8.81 | 8.81 | 8.81 | 0 | 10-Feb | 0.00% | -24.97% | ||
Mongolia Energy | HKD | 0.8 | -0.03 | -3.61% | 0.84 | 0.84 | 0.79 | 33,720,000 | 10-Feb | 14.29% | -59.80% | ||
Zijin Mining | HKD | 3.71 | -0.04 | -1.07% | 3.77 | 3.82 | 3.7 | 65,353,475 | 10-Feb | 27.05% | -2.06% | ||
Mongolia Inv Group | HKD | 0.053 | -0.002 | -3.64% | 0.055 | 0.055 | 0.052 | 8,114,000 | 10-Feb | 15.22% | -45.92% | ||
North Asia Resources | HKD | 0.355 | 0.045 | 14.52% | 0.31 | 0.37 | 0.3 | 7,187,000 | 10-Feb | 59.91% | -69.13% | ||
China Daye Non-Fer. | HKD | 0.425 | 0 | 0.00% | 0.42 | 0.435 | 0.41 | 15,324,000 | 10-Feb | -7.61% | -32.54% | ||
Bestway Int’l | HKD | 0.051 | 0.001 | 2.00% | 0.051 | 0.051 | 0.05 | 410,000 | 10-Feb | -16.39% | -56.03% | ||
Asia Coal | HKD | 0.1 | 0 | 0.00% | 0.1 | 0.1 | 0.1 | 0 | 10-Feb | -4.76% | -59.18% | ||
Mongolian Mining | HKD | 7.31 | 0.01 | 0.14% | 7.31 | 7.59 | 7.22 | 2,657,500 | 10-Feb | 25.17% | -30.91% | ||
SGX | LionGold | SGD | 0.9 | 0.01 | 1.12% | 0.895 | 0.925 | 0.895 | 12,332,000 | 10-Feb | 3.45% | 23.29% | |
LSE | Central Asia Metals | GBp | 97.25 | -3.75 | -3.71% | 98 | 99 | 97 | 3,036,093 | 10-Feb | 70.99% | 3.46% | |
Petro Matad | GBp | 27.75 | -0.75 | -2.63% | 28.5 | 28.5 | 27.75 | 186,265 | 10-Feb | 12.12% | -78.40% | ||
Metal-Tech | GBp | 4.375 | 0 | 0.00% | 4.375 | 4.375 | 4.375 | 6,500 | 10-Feb | 16.67% | -64.29% | ||
Nova Resources | GBp | 8.25 | 0.125 | 1.54% | 8.125 | 8.25 | 8.125 | 100,000 | 10-Feb | 247.37% | 312.50% | ||
Origo Partners | GBp | 30.5 | 0 | 0.00% | 30.5 | 30.5 | 30.5 | 242,966 | 10-Feb | -12.86% | -35.45% | ||
Canada | Aberdeen Int’l | CAD | 0.6 | -0.01 | -1.64% | 0.61 | 0.61 | 0.6 | 82,700 | 10-Feb | -7.69% | -29.21% | |
Altan Rio Minerals | CAD | 0.53 | 0 | 0.00% | 0.53 | 0.53 | 0.53 | 10,000 | 10-Feb | ||||
Blue Zen Mem. Parks | CAD | 0.17 | -0.005 | -2.86% | 0.2 | 0.2 | 0.17 | 8,000 | 10-Feb | 240.00% | -51.43% | ||
Centerra Gold | CAD | 19.7 | 0.63 | 3.30% | 19.07 | 19.73 | 18.41 | 371,810 | 10-Feb | 9.44% | 15.05% | ||
China Gold | CAD | 3.44 | 0.21 | 6.50% | 3.19 | 3.44 | 3.15 | 318,089 | 10-Feb | 34.38% | -32.42% | ||
Desert Eagle Res | CAD | 0.235 | 0 | 0.00% | 0.245 | 0.245 | 0.235 | 5,555 | 10-Feb | -89.12% | |||
Denison Mines | CAD | 1.81 | -0.04 | -2.16% | 1.81 | 1.94 | 1.77 | 4,661,695 | 10-Feb | 42.52% | -55.42% | ||
East Asia Minerals | CAD | 0.83 | -0.06 | -6.74% | 0.89 | 0.92 | 0.83 | 539,226 | 10-Feb | 76.60% | -86.73% | ||
Erdene Resource | CAD | 0.5 | -0.02 | -3.85% | 0.51 | 0.51 | 0.5 | 95,400 | 10-Feb | 33.33% | -65.52% | ||
Entree Gold | CAD | 1.3 | -0.04 | -2.99% | 1.33 | 1.33 | 1.28 | 41,200 | 10-Feb | 4.84% | -58.99% | ||
Fortress Minerals | CAD | 3.8 | 0 | 0.00% | 3.8 | 3.8 | 3.8 | 1,500 | 10-Feb | -7.32% | -31.03% | ||
Gulfside Minerals | CAD | 0.09 | 0.01 | 12.50% | 0.075 | 0.09 | 0.075 | 205,600 | 10-Feb | 5.88% | -5.26% | ||
Global Met Coal Corp | CAD | 0.14 | 0 | 0.00% | 0.14 | 0.14 | 0.14 | 26,000 | 10-Feb | 12.00% | |||
Ivanhoe Energy | CAD | 0.98 | -0.02 | -2.00% | 1 | 1.01 | 0.98 | 152,608 | 10-Feb | -12.50% | -69.94% | ||
Ivanhoe Mines | CAD | 16.49 | 0 | 0.00% | 16.28 | 16.63 | 16.06 | 1,095,096 | 10-Feb | -8.84% | -41.38% | ||
Kincora Copper | CAD | 0.3 | 0.015 | 5.26% | 0.285 | 0.3 | 0.28 | 135,117 | 10-Feb | -3.23% | 42.86% | ||
Khan Resources | CAD | 0.165 | 0 | 0.00% | 0.165 | 0.165 | 0.165 | 2,000 | 10-Feb | -17.50% | -69.44% | ||
Lucky Strike | CAD | 0.26 | -0.015 | -5.45% | 0.275 | 0.275 | 0.26 | 60,800 | 10-Feb | -26.76% | -66.67% | ||
Meritus Minerals | CAD | 0.045 | 0.005 | 12.50% | 0.04 | 0.045 | 0.04 | 37,000 | 10-Feb | 80.00% | -73.53% | ||
Manas Petroleum | CAD | 0.285 | -0.01 | -3.39% | 0.3 | 0.3 | 0.275 | 114,500 | 10-Feb | 96.55% | |||
Prophecy Coal | CAD | 0.48 | -0.02 | -4.00% | 0.495 | 0.495 | 0.475 | 275,792 | 10-Feb | 17.07% | -43.92% | ||
Puget Ventures | CAD | 0.49 | 0 | 0.00% | 0 | 17-Sep | |||||||
SouthGobi Resources | CAD | 7.22 | 0.11 | 1.55% | 6.97 | 7.22 | 6.95 | 28,699 | 10-Feb | 20.33% | -52.62% | ||
Solomon Resources | CAD | 0.085 | 0 | 0.00% | 0.085 | 0.085 | 0.085 | 0 | 8-Feb | 21.43% | -50.00% | ||
Undur Tolgoi Minerals | CAD | 0.2 | 0 | 0.00% | 0.2 | 0.2 | 0.2 | 0 | 9-Feb | 0.00% | 1900.00% | ||
Mongolia Growth Grp | CAD | 4.34 | 0.03 | 0.70% | 4.34 | 4.35 | 4.33 | 7,865 | 10-Feb | 11.28% | 294.55% | ||
US | Denison Mines | USD | 1.86 | -0.01 | -0.53% | 1.81 | 1.95 | 1.75 | 2,508,442 | 10-Feb | 48.80% | -55.07% | |
Entree Gold | USD | 1.28 | -0.06 | -4.48% | 1.34 | 1.34 | 1.26 | 32,179 | 10-Feb | 6.67% | -60.12% | ||
Ivanhoe Energy | USD | 0.9801 | -0.0299 | -2.96% | 1.02 | 1.02 | 0.9736 | 764,695 | 10-Feb | -12.49% | -70.48% | ||
Ivanhoe Mines | USD | 16.42 | -0.11 | -0.67% | 16.21 | 16.6 | 16.0398 | 2,431,915 | 10-Feb | -7.34% | -42.28% | ||
Manas Petroleum | USD | 0.29 | -0.02 | -6.45% | 0.315 | 0.315 | 0.28 | 497,998 | 10-Feb | 96.61% | -53.97% | ||
Mongolia Growth Grp | USD | 4.343 | 0.003 | 0.07% | 4.346 | 4.3883 | 4.339 | 6,900 | 10-Feb | 12.95% | |||
Blue Wolf MGL | USD | 9.67 | 0 | 0.00% | 9.67 | 9.67 | 9.67 | 0 | 27-Jan | 0.52% | |||
Blue Wolf MGL Unit | USD | 10.28 | -0.04 | -0.39% | 10.28 | 10.28 | 10.28 | 100 | 10-Feb | 2.29% |
---
"Mogi" Munkhdul Badral
Senior Client Manager / 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.
Suite 1213 · Level 12 · 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 AFSLicense 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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