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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Б. Мөнхдөл
CPSI is Launching a Weekly Mongolian Edition of CPSI NewsWire
April 3 (CPSI) CPS International is pleased to announce it is launching a Mongolian language weekly edition of CPSI NewsWire dubbed "CPSI NewsWire MN", summarizing the news from last week.
As it's just a weekly issue, we'll use the current CPSI NewsWire mailing list and we apologize to our non-Mongolian speaking audience.
Mogi
SGQ closed +13.6% to C$7.52, 1878 closed +18.16% to HK$60.50
Chalco seeks controlling stake in Canada's SouthGobi
The state-owned aluminium producer offers $926 million for up to 60% of the Mongolia-focused coal miner through a tender offer as it steps up its diversification strategy.
April 3 (FinanceAsia) Aluminum Corporation of China (Chalco) announced yesterday that it plans to acquire between 56% and 60% of SouthGobi Resources (TSX:SGQ, HK:1878), a Canadian company with coal mining operations in Mongolia's South Gobi region and listings in Toronto and Hong Kong. The two companies have also signed a cooperation agreement, which will take effect once the acquisition is completed.
A tender offer will be made to all SouthGobi shareholders, but SouthGobi's majority owner, Canadian mineral exploration and development company Ivanhoe Mines, has also agreed to tender its entire 57.6% stake as part of the offer to help Chalco reach its acquisition target. Depending on the level of take-up by other SouthGobi shareholders, Ivanhoe said in a separate statement on Sunday that it could receive up to C$889 million ($898 million) from the sale of all of its shares in the coal miner.
If more than 60% of SouthGobi's shares are tendered, Chalco will accept the shares on a proportional basis, it said. The offer will be made by way of a takeover-bid circular under British Columbia law.
Chalco, which is the largest producer of alumina, primary aluminium and aluminium fabrication products in China, will pay C$8.48 (equivalent to about HK$65.97) per SouthGobi common share. At the time of the announcement, Chalco said it did not own any common shares in SouthGobi, either directly or indirectly.
Based on the offer price, 60% of SouthGobi's outstanding share capital of 181.9 million shares is valued at C$925.28 million ($926 million). Chalco plans to fund the deal from internal funds, external financing via bank borrowings, or a combination of both.
A 57.6% stake would amount to $912 million, which will make this the fifth-largest announced outbound M&A deal by a Chinese company so far this year, according to Dealogic.
The offer price represents a 28% premium over SouthGobi's C$6.62 closing price on the Toronto stock exchange on Friday, and a 32% premium over the volume-weighted average price (VWAP) of C$6.41 during the past 10 trading days, according to the statements.
In Hong Kong trading yesterday, SouthGobi's share price jumped 18.2% to HK$60.50, while Chalco, which is also listed in Shanghai and New York, was down 1.9%.
SouthGobi obtained a dual-listing in Hong Kong in January 2010, but the stock has struggled to perform. In the first four months after listing the share price fell 40%, and while it topped the IPO price briefly about a year ago, yesterday's close puts it 52% below the IPO price of HK$126.04. So, even if the tender is at a premium to the current price, it offers little consolation for investors who came in at the time of the Hong Kong listing – if any of them are still hanging on to their shares.
SouthGobi is a coal production and development company with coal assets strategically located near the border with China – the world's largest consumer of coal. Its flagship coal mine, Ovoot Tolgoi, is selling coal to customers in China, but the company also plans to supply a wide range of coal products to markets in Asia, SouthGobi said in a separate statement flagging Chalco's partial take-over bid.
Chalco's move is in line with its corporate strategy, which is to "expand its business scope to other resources, [including] coal to achieve full integration of coal and aluminium operations". The company said in the statement that it believes it has the necessary expertise to strengthen SouthGobi's operations since its businesses are, to a great extent, dependent on China.
"If the offer is successful, the company intends to operate Ovoot Tolgoi to maximise value for its shareholders, including all the current business plans provided that are economically justifiable," Chalco said. For instance, it added that it plans to assist in providing electricity from China and in securing rail transport capacity to address SouthGobi's logistics issues.
"… [Chalco] will be a long term investor with a strong commitment to investing in the coal sector, and intends to position SouthGobi as the platform to pursue its growth ambitions in the coal sector," Chalco said.
It added that it intends to retain almost all of the SouthGobi management team in their current roles.
Under the cooperation agreement, SouthGobi will have the right to offer up to 100% of its saleable coal to Chalco, and Chalco will have the obligation to purchase the coal at market prices for a period of 24 months. Chalco will also assist SouthGobi in procuring electricity for its operations.
Mongolian businesses, either through a direct connection to the grid power, or through the development of a conveniently located power plant, and will provide support for its coal-haul highway project.
An improvement in SouthGobi's earnings is likely an encouraging factor for a capital tie-up. For the year ending December 31, 2011, SouthGobi posted a pre-tax profit of about $57 million, compared to a pre-tax loss of about $118.9 million in 2010, according to Chalco's statement.
The miner booked about $57.7 million in net income attributable to equity holders in 2011. That contrasts with net comprehensive loss attributable to equity holders of about $88.4 million the previous year.
According to the current timetable, the offer is expected to open on or before July 5 and will remain open for at least 35 days. BNP Paribas is a financial advisor to Chalco.
Link to article
Related:
SouthGobi Gets New 'Big Brother' in Chalco's Takeover, with interview video with CEO – CNBC, April 2
China targets Mongolia in SouthGobi move – Financial Times, April 2
Chalco to buy Ivanhoe's SouthGobi stake in $926-million deal - The Globe and Mail, April 2
UPDATE 3-Chalco to buy Ivanhoe's SouthGobi stake in $926 mln deal – Reuters, April 2
US$13.6m cash at end of 2011
Manas: Operational and Financial Highlights for 2011
BAAR, Switzerland, April 2, 2012 /PRNewswire/ -- Manas Petroleum Corp. ("Manas") (TSX-V: MNP; OTCBB: MNAP) has filed its annual report on Form 10-K for the year ended December 31, 2011 on EDGAR and on SEDAR. (www.sedar.com or www.sec.gov). The following provides you with a review of some of the highlights:
Highlights 2011
· Completed seismic program in Mongolia to establish prospect portfolio as base for drilling campaign 2012
· Started seismic in Tajikistan with ratification of the PSA outstanding
· Drilling planning in all ventures started
· Shell subsidiary farms in to Blocks 2&3 of the Albanian Project
Operations Review
Mongolia
A 2D seismic contract with Sinopec was signed on 12 July 2011, providing for a firm program consisting of 532 km full fold data and an optional program of up to an additional 1,106 km full fold data. The program consisted of eight phases. A total of 1,311 km full fold data, 615 km in Block XIII and 696 km in Block XIV, was acquired without any incident. On November 25, 2011 we completed the seismic program after having acquired all necessary data to establish a prospect portfolio. We are currently focusing on six areas in an effort to spud the first well by the end of the second quarter of 2012.
…
Link to release
Petro Matad: Total Voting Rights and Share Capital
April 2, Petro Matad Limited (MATD:LN) –
Following the issue by Petro Matad of an aggregate of 498,237 ordinary shares of $0.01 each ("Shares") in February and March 2012, the Company advises that the total number of Shares in issue as at the date of this notice is 185,063,521, with each Share carrying the right to one vote.
There are no Shares held in treasury.
The total number of voting rights in the Company is therefore 185,063,521.
The above figure may 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 to their interest, in the Company.
Link to release
MSE STOCK EXCHANGE WEEKLY REVIEW
Ulaanbaatar, Mongolia, April 2 /MONTSAME/ Five stock trades were held at Mongolia's Stock Exchange on March 26-30. In overall, 918.7 thousand shares were sold of 75 joint-stock companies totaling MNT 798.4 million.
Index TOP-20 was 20875.51 points decreasing 867.45 units or 3.9% against the week earlier.
The total market capitalization was set at MNT two trillion 25.9 billion decreasing MNT 95.2 billion or 4.4%.
Shares of "Nomt khairkhan" /49.4%/, "Ereentsav" /26.1%/, and "Tegsh" /15.0%/ increased, but shares of "Olloo" /32.0%/, "Chatsargana" /20.0%/, and "Almaas" /15.0%/ decreased.
33 stocks closed higher, 25 shares declined and 17 shares remained unchanged.
Shares of "Hermes center" /325.9 thousand units/, "Khokh gan" /156.0 thousand units/ and "Remikon" /95.9 thousand units/ were the most actively traded in terms of trading volume and in terms of trading value--"Suu" (MNT 303.1 million), "APU" (MNT 141.9 million), and "Tavantolgoi" (41.1 million).
Link to article
MSE Daily Market Update: STOCK SLUMP DEEPENS ON MONDAY, GOBI SINKS 13%
02 Apr 2012 (BDSec) – BDS index dropped 1.70% while MSE Top 20 fell another 1.89%. Gobi (GOV) lost as much as 13% to MNT 4,000, the lowest price since December 2009.
Gobi reported net income after tax of 1.70 bln tugrigs (MNT), or MNT 430.8 per share in 2011 versus 3.36 bln tugrigs or MNT 218.5 per share in 2010 even though the sales revenue increased by 6.5 bln tugrigs to 35.6 bln tugrigs. The earnings after taxes in the past year were influenced significantly by negative exchange rate impacts, which cost Gobi 1.45 bln tugrigs for 2011.
Today's other big decliners were Shivee Ovoo (6.67%), Baganuur (4.36%), APU (3.37%), and Genco Tour Bureau (3.19%). Tavantolgoi (TTL), which dragged down the market earlier, remained unchanged to close at MNT 10,500.
Local News
Aluminum Corp. of China Ltd., the nation's biggest producer of the metal, agreed to buy Ivanhoe Mines Ltd. (IVN)'s stake in SouthGobi Resources Ltd. (1878) to gain control of Mongolian coal production as it expands into other commodities and diversifies revenue.
Link to article
Monet Capital - Remicon RMC Research
March 30 (Monet Capital) --
Monet Capital initiates coverage on Remicon (MSE:RMC) with a BUY rating at the target stock price of MNT246, giving a current upside potential of 26.15%.
Remicon is a local concrete producer, offering exposure to the construction boom in Mongolia through both real estate and mining infrastructure developments. The company has aggressive plans to build a cement factory to significantly lower costs, and a relatively large free float of 16%. We believe its technological superiority over other producers and established shareholder base will give it the competitive advantage in bidding for the coming development projects for both private and public sectors.
· High cement demand-the current supply of cement and other materials is limited in Mongolia. Cement producers Hutul, Erel, Nalaikh and Central Asia together account for 30% of local cement demand. As such concrete and cement prices are soaring.
· High profit margin-15% profit margin on concrete in 2011 and 2012, and 40% margin expected once cement factory is complete
· Upscale production-expected CAGR growth rate of 22.87% from 2011 to 2016
· Cement plant planned- will be operational Q12013, which will bring high-profit extra revenue by utilizing two mobile batching plants to sell excess cement or concrete further afield
· Upcoming equity financing-to raise MNT7-8Bn towards increasing concrete production and financing the construction of the cement plant. The raising will be at MNT190-230 per share according to the underwriters.
· Dry-method cement plant-more economical production with ability to customize the concrete product depending on the project. This is a significant advantage over Hutul LLC, major competitor with wet cement production
· Underutilized capacity-specialized equipment is leased to other concrete producing companies due to a lack of supply of materials for concrete production
Link to Monet
2011 онд хамгийн их татвар төлсөн 100 татвар төлөгчид
3-р сарын 30 (МТА) Монгол улсын төсөвт 2011 онд хамгийн их татвар төлсөн эхний 100 компанийг танилцуулж байна. Эдгээр 100 компанийн төлсөн татвар 2011 оны улсын төсвийн татварын орлогын 72 хувийг эзэлж байна.
Харин 2011 оны "Шилдэг татвар төлөгч"-ийг Татварын Ерөнхий Газрын "Шилдэг татвар төлөгчийг шалгаруулж, урамшуулах журам"-ийн дагуу татвараа хуулийн хугацаанд төлсөн, татварын хуулийн хэрэгжилтийг хангасан, татварт хугацаа хэтэрсэн өр, төлбөргүй зэрэг бусад хэд хэдэн шалгуур үзүүлэлтээр шалгаруулж, татвар төлөгчдийн өдрүүдээр нийтэд зарладаг болно.
Эх сурвалж
Deloitte's Taxation and Investment Guide Series
Deloitte: Mongolia Highlights 2012
Link to guide
FACTBOX-Key political risks to watch in Mongolia
ULAN BATOR, April 2 (by David Stanway, Reuters) - Mongolia sits on vast quantities of untapped mineral wealth, the exploitation of which is likely to turn it into one of the world's fastest growing economies over the next decade.
But political uncertainty ahead of parliamentary elections in June worries investors. One of the parties in Mongolia's shaky coalition government said it would pull out before the vote, and politicians are under constant pressure to be seen to getting a good deal for the country from resources investors.
The priority for Mongolia is the development of its tiny economy, and foreign investors want to know if the government can create a stable legal environment while handling the pressures exerted by impatient citizens as well as its two giant neighbours, Russia and China.
Following is a summary of key political risks to watch:
INVESTMENT POLITICS
Mongolia wants to launch a $3 billion initial public offering of the Tavan Tolgoi or "Five Hills" coal deposit. State-owned Erdenes Tavan Tolgoi had been planning to list 29 percent of the company in London and Hong Kong by May, but it cannot until Mongolia's parliament passes a securities law.
An initial proposal to hand development rights in the project to China's Shenhua, Peabody of the United States and a Russian-Mongolian consortium was rejected, and the government is trying to devise another deal that will include Japanese and South Korean partners.
Erdenes will need to raise up to $400 million this year if its planned float does not go ahead by December, a senior executive said in March.
The government is under pressure to pass several new laws, including the budget, an election law and judicial reforms, as well as the investment agreement for Tavan Tolgoi.
It has abandoned its idea of renegotiating the contract for the Oyu Tolgoi copper-gold mine, after earlier saying it wanted to look again at a 2009 deal with Ivanhoe Mines. The project will be taken over by Rio Tinto , which already owns 49 percent of Ivanhoe and, as of mid-January, was cleared to buy more.
Some politicians have called for the prime minister to resign over his handling of the Oyu Tolgoi contract.
What to watch:
- Progress of new laws through parliament.
- Parliamentary elections in June. Shenhua Energy Co Ltd , China's largest coal producer, has said its negotiations to invest in Tavan Tolgoi are likely to restart after the vote.
- Whether the government can produce an investment agreement for Tavan Tolgoi that will satisfy foreign partners and keep the public happy, and whether it can do it in time.
- More inward investment. In November, commodities trader Trafigura and private equity investor Origo Partners Plc , formed a joint venture to develop Mongolian coal and iron ore deposits for export, and in February Goldman Sachs bought a 4.8 percent stake in a Mongolian bank.
THE RESOURCE "CURSE"
Mongolia's dependence on mining has alarmed environmentalists and opposition politicians, and the country is already showing classic symptoms of "Dutch disease", including soaring inflation and high interest rates.
The government is trying to bring in structures that will protect it against fluctuating commodity prices, and wants to use the proceeds from mining to pay for infrastructure, health and education, and develop other sectors.
It is under pressure to spread the wealth, and has already extracted pre-payments from foreign firms involved in both the Tavan Tolgoi and Oyu Tolgoi projects in order to give money to the public.
What to watch:
- How Mongolia uses the income from its mining projects. It has set up education and fiscal stabilisation funds, but it has also promised direct dividends for Mongolian citizens.
- How it deals with rapid economic change as well as inflation as foreign investment transforms the country's mainly rural economy. The International Monetary Fund warned in November that Mongolia's economic policies are creating inflationary pressures.
GETTING ON WITH THE NEIGHBOURS
Many of Mongolia's 2.7 million citizens are concerned about growing Chinese and Russian influence, and their fears were not allayed by the plan to hand the majority of Tavan Tolgoi's western block to Chinese and Russian interests.
China already dominates Mongolia's economy, buying 90 percent of the country's exports in the first half of 2011.
Mongolia's reliance on Russia and China for fuel, power and transportation also poses a major risk to its mining sector. Russia has been known to turn off supply taps, and China is not averse to closing crucial railway links.
Mongolia also depends on Russia's railway network to fulfil plans to deliver coal to Japan and South Korea. Mongolia's plans to build itself a railway network capable of transporting coal to foreign markets is likely to be delayed, officials said in February.
What to watch:
- Will efforts to ease dependence on China merely increase Russia's hold, and vice versa? Is the Chinese market for coal and other minerals its only option in the short term?
- How will the government handle growing nationalist sentiment, and fears about the role of foreign firms and workers.
Link to article
Experiencing Transformation through Mining
April 2 (UB Post) Mongolia was awarded 'Mining Country of the Year' at the first Asia Mining Awards, held during the 5th Annual Mines and Money Conference in Hong Kong. Mongolia, holding 1170 deposits of more than 80 types of minerals, is attracting the attention of investors from all parts of the world.
This was not always the case. A decade ago, when Mongolians wanted to attract foreign investors to large scale mining projects such as Tavan Tolgoi, nobody displayed interest as the country`s mineral wealth was not well known around the world. There were a lot of people who did not even know about Mongolia and where it is located. In terms of mining, there was nothing but the Erdenet copper mine and many small-scale gold mines. But today the situation is rather different and the mining sector is considered to be the main driving force of the Mongolian economy.
Mining constitutes 30% of Mongolia's GDP and more than 85% of its exports. It is expected to grow even faster when Oyu Tolgoi and Tavan Tolgoi become fully operational. However, Mongolia`s growing reliance on mining has alarmed environmentalists and nationalists.
Although it is true that the land is destroyed by mining operations and environmental restoration remains poor, it is a good thing that the Government has started paying attention to the concept of responsible mining. The number of companies operating in accordance with international standards is increasing.
Thanks to its mineral wealth, Mongolia could be one of the fastest growing economies in the world over the next two decades, according to the Citibank. In 2011 GDP growth reached 17.3%.
"However, taming a hyper-growth economy is not an easy task," pointed out Professor Stephane Garelli, Director of the IMD World Competitiveness Center in the preface of the Mongolia in World Competitiveness Report.
The amount of FDI surpassed USD 5.3 billion last year or 62% of GDP, according to the World Bank. We should keep in mind that the massive flow of money does not always bring happiness. Many countries like Nigeria, Zimbabwe have experienced the "resource curse." A large flow of money from the mining sector has caused inflation to increase. The soaring inflation, high interest rates, and lack of human resources indicate that the risk of Dutch Disease already exists in Mongolia. The good news is the country has the opportunity to learn from others` experiences, mistakes and achievements.
"Foreign investments should be used to ensure the transfer of skills and technology to the local business community and workforce," said Garelli.
"In this way a local community of trained and educated workers, as well as a network of local suppliers, can constitute the basis of a performing layer of small and medium-sized enterprises."
"Each job created at the mining sector creates another four jobs elsewhere in the economy" said Bernard Guarnera, President of the Behre Dolbear Group.
As of today, apart from international mining giants such as Vale, Rio Tinto, and Peabody Energy that already operate in Mongolia, we can see foreign investments in infrastructure, financial services, and property.
Without the mining boom, we probably wouldn't see the formation of Bloomberg TV in Mongolia, the opening of international hotel chains such as Ramada, the luxury retailers such as Louis Vuitton, or the investment of Goldman Sachs in Trade & Development Bank.
We also wouldn't see the London Stock Exchange collaborating with Mongolians and domestic companies such as the Mongolian Mining Corporation raising money on a foreign stock market.
There is no doubt that the country is experiencing a huge transformation through its mining boom.
"Mongolia is becoming famous everywhere because of its mining," said Jack Weatheford, the author of 'Genghis Khan and the Making of the Modern World.'
Favorable conditions have been created and there are chances to learn from experienced large companies as they bring techniques and technologies much more valuable than money itself.
"It is wrong to assume that foreign investments only bring money. Along with money come know-how, technologies, and culture" says Z.Battushig, Vice-Chairman of the Foreign Investment and Foreign Trade Agency.
The issue is not about whether we need mining or not, but that it is vital to manage mining revenues in the correct way. So, how should Mongolia appropriately distribute the income generated from mineral wealth?
"It would be advisable for Mongolia to redirect some of the revenues earned from the commodity trade into developing other activities such as the clothing and fashion industry, manufacturing, ecotourism, and the like" wrote Garelli.
Investment in infrastructure also should play a key role in diversifying the economy. It is encouraging that the Government is trying to use the proceeds from mining to pay for infrastructure and develop other sectors.
"Infrastructural development becomes the second engine of growth. We have already announced large bids for new power plants. We have new projects in railway construction and social housing," said D.Zorigt, Minister of Mineral Resources and Energy in an interview given to the Oxford Business Group.
The Government has launched a series of ambitious projects such as an industrial complex in Sainshand, a new international airport, highway links, and subway system for Ulaanbaatar.
According to Garelli, the challenges raised by "too much money" are no less formidable than those linked to "not enough money."
"We feel that Mongolia has the competencies, the resources and the will to confront the formidable opportunities that will arise from present and future mining earnings," he explained.
Mongolia, as one of the 10 countries with the most natural resources in the world, will continue to attract foreign investors.
"The fact we opened a Joint Venture here is because we believe that Mongolia is going to be a wonderful place to live and invest," said Guarnera.
Link to article
5,000 tons of gasoline will be imported from South Korea next month
April 2 (UB Post) This is an interview with the CEO of M-Oil Group R. Batbayar, about the supply and price of gasoline that will soon to be commercially imported from South Korea.
-What are the advantages of the Euro-4 standard gasoline compared to gasoline from Russia?
-We have imported 1,800 tons of gasoline and it is currently being sold at four of our gas stations. Drivers may purchase this newly imported gasoline in Tasgani Ovoo, the 13th district, the new Trauma and Injury Center, and at the Darki Ekh and Sansar districts' intersection.
This gasoline burns effectively and releases less toxic fumes compared to other gasoline available in Mongolia. It is friendly to the environment. The gasoline we currently use today is of Euro-2 standard.
-For how many years will the contract between you and the South Korean SK Energy last? How much gasoline is to be imported through as part of the contract?
-SK Energy is one of the five biggest companies in South Korea and is the largest company there in terms of oil products. We are allowed to import gasoline as we see fit. In mid April. 4,000 to 5,000 tons of gasoline will be imported. We are also planning to import Euro-4 standard diesel gasoline. The amount of gasoline we are importing from SK Energy is very small for the company.
Gasoline depletion and unstable prices in the past years gave us all the reasons to find a third source of gasoline for Mongolia. We began talks with South Korea about gasoline importation in July 2011. Russia had internal struggles and had no choice but to make Mongolia a secondary priority. Ministries and the Petroleum Authority supported us. We made the first agreement in February 2012 and the first shipment of gasoline has just arrived. Company officials said that they also had hard times with insufficient energy and gasoline; and support was given from the South Korean Government.
-In what intervals will the gasoline be imported in the future?
-The monthly import is set at 1,800 tons, but as I said, it can be changed depending on the demand. Imports also depend on the technical capabilities of the Zamiin Uud checkpoint. Right now, it has the capability of importing a maximum of 10,000 tons of gasoline at one time.
The availability of gasoline transportation trains can also affect the amount of gasoline intake. The possibility of transporting gasoline on 40 to 50 trains is not high. The railway administration supported our plan and had 20 trains ready beforehand. With the help of many factors, we were able to import the first of many gasoline imports to Mongolia in such a short time.
-What can you tell us about the environmental effects of this gasoline?
-We have completed research and studies into the gasoline we were going to buy. Officials and experts from South Korea came to Mongolia and studied a sample taken from the gasoline we use today, and they said, 'we cannot produce this gasoline in Korea. We used to produce it ten years ago.' They said that they couldn't bring back the old production methods to produce this type of gasoline. In return, I told them that we were not asking them produce a specific type of gasoline just for us. We simply wanted to buy the gasoline that is exported to Japan and Singapore.
As I said, this gasoline is Euro-4 standard, which releases a lot less toxic fumes when burned compared to other gasoline. In short, we have made an improvement to our gasoline in Mongolia.
-What is the price per liter of this gasoline?
-The gasoline will be sold at the price set by the Singapore Stock Exchange with transportation fees added to it. This is the price that other Asian countries buy gasoline at. The price for importing one barrel of this gasoline is USD 144. This product is high quality and we will not complain about it being expensive. It is generally profitable so the price is guaranteed to be very stable.
-Does opening a third source of gasoline mean the overall price of fuel will be reduced?
-This is an emergency source of gasoline. It is not possible to supply all of Mongolia with this gasoline. The amount of gasoline brought into Mongolia from South Korea is limited by the technical ability and efficiency of the Zamiin Uud checkpoint. At full capacity, the checkpoint can only supply Mongolia with 5 to 8% of its annual demand.
Our new source of gasoline will be mainly used in critical times of national fuel depletion but opening a new source of fuel is a big improvement.
Link to article
Where are you on the global pay scale? (Mongolians earn $415 compared to world average of $1,480 using Purchasing Power Parity)
Do you earn more or less than the world's average wage? Type in your monthly salary and we'll give you the answer.
March 29 (BBC) The average wage, calculated by the International Labour Organization, is published here for the first time. It's a rough figure based on data from 72 countries, omitting some of the world's poorest nations. All figures are adjusted to reflect variations in the cost of living from one country to another, and as Ruth Alexander of BBC radio's More or Less programme underlines, it's all about wage earners, not the self-employed or people on benefits.
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Link to chart
A meeting of Joint committee on economy held in Berlin
April 2 (news.mn) A meeting of Mongolian-Germany Joint committee on economy successfully held at the Ministry of Economy and Technology of Germany in Berlin informed Presidential Office of Mongolia.
The meeting co-chaired by B.Enebish, head of Mongolian committee (Director of Erdenes Tavantolgoi company) and by E.Shulits head German committee. During the meeting participants exchanged theiw view on joint projects.
A signed some documents:
-A memorandum on Taishir-Altai hydro power station,
-A memorandum on Supply of Fisher-Tropsh technology of produce liquid from coal,
-An agreement on Cooperation of produce liquid from coal based on GTLF-1 technology,
-A memorandum on Supply gas technology of liquid from coal.
Also held first meeting of intergovernmental working group which co-chaired by Ts.Garamjav, Vice Minister of Mineral and Energy Minister of Mongolia and M.Khaitser, State secretary of Ministry of Economy and Technology.
Two sides agreed cooperate on improve legislative environment in Mongolian geology and mining, implement project on produce liquid from coal, to establish Mining Academy.
A second meeting of intergovernmental working group to be held in September this year in Ulaanbaatar.
Link to article
COUNTRIES HOLD MEETINGS OF WORKING GROUPS AND ECONOMIC COMMITEE
Ulaanbaatar, Mongolia, April 2 /MONTSAME/ The Federal Minister of Economics and Technology of Germany has hosted the first joint meetings of both Mongolia-Germany working group and an economic committee of private entities.
The working group is responsible for implementing an intergovernmental agreement on cooperating in mineral resources, industry and technological sectors. The meeting of economic committee has been co-chaired by E. Schulz, a head of the Mongolia-Germany Economic Committee for the German side; and B.Enebish, a head of the committee for the Mongolian side, with participation of representatives of the biggest enterprisers engaged in geology and mining spheres.
The sides have shared views on projects to be co-realized, and then established cooperation memorandums and contracts.
A memorandum on implementation of a project on water supply of Taishir Altai has been signed by J.Bat-Erdene, the State Secretary of the Ministry of Road, Transportation, Construction and Urban Development; and by Michael Napel, a vice-president of the Ferrostaal LLC in charge of Project Development & Sales Industrial Plants.
Mongolia's MCS holding company and the Petrovis LLC, and Germany's Lurgi AG have established a memorandum on supplying facilities for liquidizing coal based on fischer tropsch technology.
Moreover, Mongolia's Tsetsens Mining and Energy LLC, and Germany's Lurgi AG, and GTLF1 have inked a cooperation contract on coal liquidizing equipment based on GTLF1 technology.
A memorandum on supplying a technology for coal liquidizing industry has been signed by the MCS holding, the Petrovis companies and the Siemens AG.
The meeting of the intergovernmental committee's working group has been co-chaired by Ts.Garamjav, the Vice Minister of Mineral Resources and Energy, and by Bernhard Heitzer, the State Secretary. Dr. Bernhard Heitzer, the State Secretary at the Federal Ministry of Economics and Technology.
The two sides agreed to cooperate in refining upon a legal environment for geological exploration and mining sector, to realize a project on liquidizing coal, collaborate in the renewable energy sector, to reduce factors polluting environment (environment protection), and to establish the Mongolia-Germany joint academy of mining.
In accordance with a joint decision, the working group's second meeting will run in September of 2012. Protocol on the discussed issues will be released as well.
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DOCUMENTS SIGNED BETWEEN MONGOLIA AND GERMANY
Ulaanbaatar, Mongolia, April 2 /MONTSAME/ A ceremony took place on last Saturday in the Landsberg Palace, Dusseldorf to sign several documents on cooperating in the mining sector.
A memorandum on implementing a project of producing liquid fuels from coal has been signed by Ts.Garamjav, the Vice Minister of Mineral Resources and Energy, and by Alfred Hoffmann, an executive director of the ThyssenKrupp Uhde company.
Another memorandum on the cooperation in mineral, industrial and technological sectors has been inked by the Vice Minister Ts.Garamjav, and by E. Eichler, a board member of the ThyssenKrupp, and by K. Potthoff, a managing director.
A director of the Industrial Corporation of Mongolia Ya.Batsuuri, and Mr. Hoffmann have signed a license contract on gasifying solid substances. The Vice Minister Ts.Garamjav, and Mr. Hoffmann also signed a memorandum on realizing a project on constructing a coke coal factory.
A memorandum on the "Khanburgedei" project of rare-earth metals has been signed by D.Bat-Erdene, a director of the "Rare Earth Metals of Mongolia" Corporation, and by executive director of the Tyssen Metallurgical Products LLC. Moreover, the sides have established a memorandum on preparing and training Mongolian mining engineers.
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TS.ELBEGDORJ LEGS STEEL AND COKE FACTORY
Ulaanbaatar, Mongolia, April 2 /MONTSAME/ In frames of the state visit to the Federal Republic of Germany (FRG), the President Ts.Elbegdorj has got acquainted with a coke factory at ThyssenKrupp Steel Europe AG in Dusseldorf city.
"Importing coal from abroad is becoming cheaper than extracting it home. Our company has extracted coal for many years, now we are taking coal from a 2,000-meter depth. If we can tackle the transport matter, we want to import coal from Mongolia," the company authority said.
The factory is considered as the leader in the world by coal coking and sreel producing. The ThyssenKrupp Steel Europe AG has branches in 80 countries employing some 180 thousand people. The factory produces 15 million tons of steel and processes 3.9 tons coke coal a year. For the time being, the coal is imported from Australia and Canada.
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Senior police officials still in Detention center
April 2 (news.mn) The General Judge of City Court of Ulaanbaatar stated on Friday, March 30, decision of arrest senior police officials still in effect. Former Chief of General Police Office, major general, Ch.Amarbold, the Metropolitan Police Authority, Mr. O.Zorigt, the head of the Public Discipline Department, colonel Sh.Batsukh and G.Ganbaatar who located in the Detention center.
According to the B.Sarantuya, General Judge of City court of Ulaanbaatar defendants layers could not refused. As informed before during the hearing which held on March 28, layers of mentioned above defendants announced refusing an offer protect defendants.
"Layers have a right refuse but it should be before the hearing begins. They refused after so means they trying to give pressure to the court. By the law layers have to inform their willing of refuse to they clients not to court" said B.Sarantuya to journalists.
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Misc
Relics of ancient nomads on exhibit in Mongolia
ULAN BATOR, April 2 (Xinhua) -- The National Arts Gallery of Mongolia is exhibiting cultural relics of ancient nomadic tribes.
The event features more than 550 precious artifacts recently unearthed by a joint Mongolian-Kazakh archaeological team from a Tujue-era tomb in Mongolia's northern Bulgan province.
According to the gallery, the tomb was the most intact one of its kind ever discovered in Mongolia and the excavated relics were rarely-seen in Mongolia and even in the Central Asia region.
This exhibition, which runs through April 9, was organized by Ministry of Education, Culture and Science and Science Academy of Mongolia in a bid to show Mongolians the precious ancient works of art and let them know better about ancient cultures.
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