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.
Mogi: Below are official press releases by the Parliament's press office regarding discussions held on the draft foreign investment law, but no serious journalist writing in English seems to have picked up on it
Стратегийн ач холбогдол бүхий салбарт эрдэс баялаг, банк санхүү, хэвлэл мэдээлэл, харилцаа холбоо гэсэн 3 салбарыг хамруулах нь
5-р сарын 10 (Нээлттэй Парламент) Стратегийн ач холбогдол бүхий аж ахуйн нэгжид гадаадын хөрөнгө оруулалтыг зохицуулах тухай болоод уг хуулийг дагалдан гарах хуулийн төслүүдийн анхны хэлэлцүүлгийг өнөөдрийн чуулганы нэгдсэн хуралдаанаар хийлээ.
Аюулгүй байдал, гадаад бодлогын байнгын хорооны санал, дүгнэлтийг УИХ-ын гишүүн Я.Батсуурь танилцуулсан юм. .
Аюулгүй байдал, гадаад бодлогын байнгын хорооноос байгуулагдсан ажлын хэсэг гадаад улсын Засгийн газрын хяналтад байдаг байгууллага болон олон улсын байгууллага, түүний хяналтад байдаг байгууллага гэж заасныг тодорхой болгох, стратегийн ач холбогдол бүхий аж ахуйн нэгжийн Монголын талын хувь хэмжээ 51 хувиас доошгүй байна гэснийг энэ салбарт үйл ажиллагаа эрхэлж байгаа аж ахуйн нэгжийн гадаадын хөрөнгө оруулагчын хувь хэмжээ 49 хүртэл байх бөгөөд илүү гарах тохиолдолд Засгийн газрын өргөн мэдүүлснээр Улсын Их Хурал шийдвэрлэх гэж өөрчлөх саналыг оруулж ирснийг Байнгын хорооны гишүүд дэмжжээ. Мөн стратегийн ач холбогдол бүхий салбарт эрдэс баялаг, хүнс, хөдөө аж ахуй, эрчим хүч, зам, тээвэр, мэдээлэл, харилцаа холбоо гэсэн 6 салбар хамрагдаж байсныг эрдэс баялаг, банк санхүү, хэвлэл мэдээлэл, харилцаа холбоо гэсэн 3 салбар болгож цөөрүүлэх санал ч дэмжигдсэн байна.
УИХ-ын гишүүн Д.Одхүү, Р.Гончигдорж, Э.Мөнх-Очир нар стратегийн аж ахуйн нэгж нь аливаа бараа бүтээгдэхүүн, ажил, үйлчилгээг худалдан авахдаа Монгол Улсад бүртгэлтэй Монгол Улсын үндэсний аж ахуйн нэгжид давуу эрх олгох журмыг баримтлах ба энэ журмыг Засгийн газар холбогдох стратегийн аж ахуйн нэгжтэй зөвшилцөн баталж, мөрдүүлэх гэсэн санал оруулсан нь гишүүдийн дэмжлэгийг авсан ажээ. Мөн УИХ-ын гишүүн Н.Батбаяр Энэ хуульд заасан хэлцлийг хийсэн гадаадын хөрөнгө оруулагч, түүнтэй нэгдмэл сонирхолтой этгээд болон гуравдагч этгээдийн тухайн хэлцэлтэй холбоотойгоор нөгөө талд шилжүүлсэн төлбөрөөс Монгол Улсын татварын хууль тогтоомжийн дагуу албан татвар суутгаж, Монгол Улсын төсөвт шилжүүлэх зэрэг саналыг гаргасныг хуралдаанд оролцсон гишүүдийн олонх дэмжжээ. Байнгын хорооны санал, дүгнэлтийг танилцуулсны дараа гишүүд асуултаа эхэлсэн.
УИХ-ын гишүүн Э.Бат-Үүл, 1929 онд тэр үеийн Улсын Их Хурал гадаадын капиталыг шахан зайлуулах шийдвэр гарган оросоос бусад бүх улсын хөрөнгө оруулагчдыг хоёр жилд хөөн гаргаж, түүнээс хойш Монгол ганц Зөвлөлтийн колони явсан. Энэ түүх дахин давтагдаж байна уу гэж болгоомжилж байна. Түүх дахин давтагдах нь. Тэр үед Коминтернийн заавраар гадаадын капиталыг шахан гаргах бодлого явагдсан. Одоо энэ ажиллагаа шинэ дүр төрхөөр гарч ирж байна. Ийм үр дүнд хүрэхийг мэдсээр байж яагаад Байнгын хороо энэ хуулийн төслийг дэмжив. Ийм хууль гарснаар шударга хөрөнгө оруулагч огт ирэхгүй. Засгийн газартай яриж зөвшөөрөл авна гэдэг нь авилгал яригдана л гэсэн үг. Улстөрийн эрх мэдэл олж авсан хүмүүст л ашигтай байдаг шийдвэр. Малайз зэрэг улс үүнээс бол баларсан. Хууль гараад Монголын эдийн засаг хүнд байдалд орж, сүйрнэ. Үүнийг хэн хариуцах вэ хэмээн асуусан.
АБГББХ-ны дарга Э.Мөнх-Очир, Санаатайгаар байнгын хороонд суухгүй, Монгол Улсын эрх ашгийн асуудал яригдаж байхад эсэргүүцэж байгаа хүмүүс байгаа. Ажлын хэсэгт ч ордоггүй. Тэр хүмүүсийг гадны нөлөөнд орсон хүмүүс гэж хэлмээр байна. Энэ хууль батлагдсанаар улс орон эдийн засгийн хувьд хүнд байдалд орно гэдэгтэй санал нийлэхгүй байна. Хуулиар гадны хөрөнгө оруулагчдын ямар ч хаалгыг хаагаагүй, эдийн засагт ямар ч сөрөг үр дагавар авчрахгүй гэлээ.
Түүнчлэн хууль санаачлагчдын нэг С.Бямбацогт, Гишүүдийг хуулиа уншсан байх гэж найдаж байна. Гадаадын хөрөнгө оруулалтыг 100 хувь хориглосон зүйл байхгүй. Зөвхөн гадаадын хөрөнгө оруулалтыг зохицуулах, хяналт тавих юм. 1990-ээд онд гадны хөрөнгө оруулагчдад таатай нөхцлийг олгож байсан. Өнөөдөр Монгол Улсын эдийн засаг сайжирч байгаа болохоор чаддаг салбартаа үндэсний хөрөнгө оруулагчдаа дэмжье л гэж байгаа. Яахаараа Монголын ард түмний өмчийг гадны хөрөнгө оруулагчид захиран зарцуулж байх ёстой юм бэ. Баялаг ард түмний өмч юм бол бид яагаад мэдэж болдоггүй юм бэ. Гадны хөрөнгө оруулалтыг зохицуулья л гэж хуулийг боловсруулсан гэсэн тайлбарыг өгсөн юм.
УИХ-ын гишүүн Д.Балдан-Очир, Заавал имй хууль гаргалгүй Монгол Улсын эдийн засагт гадаадын тодорхой орнуудын эзлэх хувь хэмжээ, экспортод гаргаж байгаа бараа бүтээгдэхүүнд эзлэх хувь хэмжээгээр хязгаарлаж болохгүй байсан юм уу. Үүнийг авч үзсэн үү. ДНБ-ий үйлдвэрлэлд гадаадын хөрөнгө оруулалттай үйлдвэр аж ахуйн нэгж тэдэн хувийг эзлэх ёстой гэсэн хувь хэмжээ тогтоох ч юм уу. Стратегийн салбарыг 3 болгоод цөөлжээ. Үлдэж байгаа салбарт сөрөг байдал үүсэхээр гадаадын хөрөнгө оруулагчдын үйл ажиллагаа эхэлсэн хойно дахиад асуудал шийдэх болох вий. Хөдөө аж ахуйгаа хаячихжээ. Гадаад ийм явцуу хүрээнд гуравхан салбарын хүрээнд авч үзсэн юм бэ гэсэн асуултыг тавьсан.
Хууль санаачлагчдын нэг УИХ-ын гишүүн Г.Занданшатар, Гадны орнуудын хуулийг харахад гадаадын хөрөнгө оруулалтыг зохицуулдаг 20 гаруй салбар байдаг юм байна. Бид энэ хуулиараа гадны хөрөнгө оруулалтыг хааж боож байгаа юм биш. Зөвшөөрөл авдаг зохицуулалтад шилжих гэж байна. Манай оронд гадны хөрөнгө оруулалттай 514 аж ахуйн нэгж байгаа. Тэдний 277 нь 100 хувийн хөрөнгө оруулалттай, 237 хамтарсан компани байгаа гэсэн мэдээллийг өгсөн. Үүгээр үдээс өмнөх хуралдаан өндөрлөв. Асуудлыг үдээс хойшхи хуралдаанаар үргэлжлүүлэн хэлэлцэнэ.
Стратегийн ач холбогдол бүхий аж ахуйн нэгжид гадаадын хөрөнгө оруулалтыг зохицуулах тухай хуулийн төслийн анхны хэлэлцүүлгийг хийлээ
5-р сарын 10 (Нээлттэй Парламент) Чуулганы үдээс хойшхи хуралдаанаар Стратегийн ач холбогдол бүхий аж ахуйн нэгжид гадаадын хөрөнгө оруулалтыг зохицуулах тухай хуулийн төслийн анхны хэлэлцүүлгийгүргэлжлүүлэн хэлэлцэж Ажлын хэсгээс гаргасан зарчмын зөрүүтэй 30 шахам саналын томьёоллоорсанал хураалт явуулсныг гишүүд дэмжлээ. Харин хуулийн төслийн 6.1.1 дэх заалтын "гуравны нэг" гэснийг "15" гэж өөрчлөх заалтыг санаачлагчид эгүүлэн татав. Мөн төслийн 7 дугаар зүйлийн заалтууд дээр санал хураах явцад Д.Зоригт гишүүний зөвшөөрөл өгөх процедур хүнд сурталгүй байх талаар хуулийн төсөлд тусгаж өгөх хэрэгтэй гэсэн саналыг эцсийн хэлэлцүүлгийн үед анхаарч үзэх нь зүйтэй гэж үзсэн юм.
Мөн хуулийн төслийн эцсийн хэлэлцүүлгийн үед Эдийн засгийн байнгын хороо зарим тодорхой зарчмын асуудлаар саналаа гаргаж Аюулгүй байдал, гадаад бодлогын байнгын хороонд хүргүүлэх нь зүйтэй гэсэн УИХ-ын гишүүн Ц.Баярсайханы гаргасан горимын санал дэмжлэг авав.
Ингээд хуулийн төслийг эцсийн хэлэлцүүлэгт бэлтгүүлэхээр Аюулгүй байдал, гадаад бодлогын байнгын хороонд шилжүүлснээр өнөөдрийн чуулганы хуралдаан өндөрлөв.
Mongolia MPs dilute proposed foreign investment laws
BEIJING May 9 (Reuters) - Mongolian legislators have agreed to water down a draft law to restrict foreign investment amid fears it could hurt the mineral-rich country's economic growth.
However, mining, media and banking projects will still be subject to stringent restrictions, though some analysts expect the draft will be further diluted before becoming law.
MPs agreed on Tuesday to reduce the number of strategic sectors that should be 51 percent state controlled under the draft law, according to details of a committee meeting published on the official parliamentary website (open.parliament.mn).
The draft was initiated by nationalist backbenchers in the wake of Chinese aluminium giant Chinalco's efforts to take a majority stake in the Canadian firm SouthGobi Resources, which controls coal mines in Mongolia.
A provision saying that projects worth more than 100 billion tugrik ($80 million) should be subject to majority Mongolian ownership has also been removed.
According to Ulan Bator-based Frontier Securities, the changes agreed on Tuesday meant "the bill has even higher likelihood of being speedily approved".
Investors said the government was engaged in a delicate balancing act ahead of parliamentary elections on June 28.
"Proposals for legislation can be submitted by individual MPs and these do not necessarily represent consensus in Mongolia," said Eric Zurrin, chief executive officer of Resource Investment Capital, a fund focusing on Mongolia.
"With the pressure of a national election, the government has no alternative but to, at the minimum, consider all forthcoming proposals."
He said he did not expect a reversal of what he saw as a steady improvement in business friendly policies over the last few years.
"If the current draft Foreign Investment Law is ratified, the BCM believes that this will undermine Mongolia's development trajectory, which has been on a steep upward path," said the Business Council of Mongolia (BCM) in a statement issued on Wednesday.
Critics said the definition of 16 "strategically important" sectors, which included minerals, food, agriculture, power, property, transportation and communications, was too wide.
While the list will now be cut back, the mining and banking sectors will be retained and investors still need to be wary, Frontier Securities said.
Others included are those that "directly or indirectly" affect the price of minerals or harm Mongolia's environment and economic independence.
The latter clause was designed specifically to restrict state-owned Chinese firms like Chinalco, with nationalists bridling at their southern neighbour's growing economic dominance.
The new foreign investment legislation was drafted by N. Batbayar, a Democratic Party representative also responsible for drawing up a widely criticised windfall profit tax in 2007.
The tax, passed despite government opposition, was eventually repealed in 2009 to pave the way for the investment agreement on the Oyu Tolgoi copper-gold project, which granted 66 percent of the project to Canada's Ivanhoe Mines.
Last year, backbenchers led by Batbayar also called for the renegotiation of the Oyu Tolgoi agreement, saying that the 34 percent stake owned by the government was not enough.
SouthGobi says unit helping Mongolia anti-graft probe
May 9 (Reuters) - Coal miner SouthGobi Resources Ltd says it is co-operating with Mongolia's anti-corruption agency regarding an investigation into a third party which was likely to blame for a sharp fall in its share price.
Shares of the company, which is the subject of a proposed $926 million takeover by China's Chalco, hit a record low on Tuesday before paring losses to close down 13 percent at HK$46.
The stock was up more than 6 percent early on Wednesday, outpacing a 0.6 percent drop in the benchmark index.
SouthGobi Resources "has no reason to believe SouthGobi Sands LLC is itself the subject of any investigation", it said in a filing to the Hong Kong stock exchange on Wednesday, referring to its subsidiary.
SouthGobi had provided information from the offices of its subsidiary, it added, without giving details.
The coal miner blamed Tuesday's sharp fall on a proposed bill regarding foreign investment in Mongolia that requires 51 percent Mongolian ownership of strategic assets.
The investigation comes at a bad time for SouthGobi, which recently had some exploration licences suspended by the Mongolian government in a move that some feared could scupper Chalco's bid for a 57.6 percent stake in the miner held by billionaire Robert Friedland's Ivanhoe Resources.
Resource-rich Mongolia has become an attractive target for Chalco which has long sought to diversify away from aluminium.
But while Mongolia has opened its doors to foreign investors over the past decade and has willingly sold coal to China, Chinese companies have found it hard to access Mongolia's vast copper and coal mines directly due to Mongolia's historic mistrust of its giant neighbour.
SouthGobi is due to announce its first quarter results on Tuesday.
SouthGobi Resources Comments on Recent Share Price Activity – Marketwire, May 8
Mogi: the law has NOT been enacted yet as it says below, still in Parliament discussion
Mongolian bill creates hurdles for Chalco's takeover bid
May 11 (Global Times) Aluminum Corp of China (Chalco)'s bid to take a controlling stake in Canadian coal miner SouthGobi Resources, which mainly operates coal mines in Mongolia, may face hurdles due to policy uncertainties in Mongolia, analysts said yesterday.
State-run aluminum giant Chalco said that it aims to purchase a 56 percent to 60 percent stake in SouthGobi at the price of up to $1 billion. But the Mongolian government recently enacted a bill (Mogi: the law has NOT been enacted yet, still discussed in Parliament) which seeks to impose a 49 percent cap on foreign ownership in key industries including the country's booming mining sector.
SouthGobi said Wednesday that one of its subsidiaries has been involved in investigations by Mongolia's anti-corruption authorities, which has added further uncertainties to Chalco's takeover bid.
Chalco did not comment on the acquisition bid when contacted by the Global Times yesterday.
"It is very hard for Chalco to successfully get a controlling stake in SouthGobi in view of the political uncertainties," Mu Wenxin, a senior analyst with commodities portal Umetal, told the Global Times yesterday.
Analysts said that the current investment environment in Mongolia is not very favorable to Chinese investors.
"The Mongolian government on the one hand needs foreign investors to help in developing its resources, but on the other hand, sometimes tends to be protective to their natural resources," said Mu.
Peter Markey, China mining and metals industry leader at Ernst & Young, said a better time for Chinese companies to make acquisitions would be after the Mongolian election in June.
Ernst & Young also noted in a report that "resources nationalism" has become a growing source of uncertainty in international acquisitions during the economic slowdown.
"Chinese companies can always choose not to seek a controlling stake in international acquisitions, which can serve as a way to avert such political risks," Mu noted.
Despite the uncertainties, analysts said that there will be increasing cooperation between the two countries in natural resources.
"The exploration cost in Mongolia is comparatively low. Given that Mongolia also considers China as a crucial market, the two countries will see more cooperation in future," Li Chaolin, an analyst from the China Coal Transportation & Sales Society, said yesterday.
Chalco said in April that it will also buy a 29 percent stake in Winsway Coking Coal, which owns coal mines in Mongolia.
MMC: THE GOVERNMENT OF MONGOLIA RESOLVED TO COMMENCE RAILWAY CONSTRUCTION
May 10, Mongolian Mining Corporation (HK:975) --
This announcement is made pursuant to Rule 13.09(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
According to media reports, the Government of Mongolia (the "Government") at its regular session held on 9 May 2012 resolved to commence construction of railway base infrastructures network which includes the base structure in the direction of Ukhaa Khudag ("UHG") mine to Gashuun Sukhait ("GS") border point under concession arrangements, with, among other things, conditions that 51% ownership of each of the entities by which the interests in the infrastructure are held be transferred to such entities owned or controlled by the Government for free of charge or for compensation depending on the time period as specified in the concession arrangements. In an interview held after the cabinet session, Mr Dashdorj Tsedev, the Minister of Road, Transportation, Construction and Urban Development of Mongolia, informed the media that the Government has resolved to grant concession to construct railway base infrastructure from UHG mine to GS border point to Energy Resources Rail LLC, an indirect wholly-owned subsidiary of the Company.
The Company will issue a further announcement to inform the public and its shareholders on the progress of the concession once the concession agreement and other required documentation with relevant governmental and regulatory authorities have been formalised.
B. Enebish: The delaying of Tavan Tolgoi's IPO is helping increase its value
May 10 (UB Post) The following is an interview with the CEO of state-owned Erdenes Tavan Tolgoi LLC.
-With the elections coming up, how is the progress at Tavan Tolgoi (TT) during this time of political importance?
-The company's mining and extraction operations have calmed down. In 2011, we extracted one million tons of coal. Since the turning of 2012, we have again stockpiled one million tons of coal and are ready to transport them. Although our official estimation is to extract three million tons of coal this year, we believe that this number will expand to four million as our equipment and technologies are running relatively smoothly. With this intensity, our production will increase year by year .
As for the USD 250 million owed to Chalco, the affair is being conducted on coal buying and selling contracts.
-A number of times Erdenes Tavan Tolgoi stocks have almost been made available to the public. They were supposed to be out this spring. What is the reason for the delay?
-The Mongolian Government decided that it was right to release Erdenes Tavan Tolgoi stocks to the public, and in 2011 preparation work commenced on this operation with the assistance of investment banks and foreign advisors. But currently, we have no choice but to postpone the IPO until March or April of 2013.
I will be more specific here, the release of this IPO consist of four main factors:
The first is that the company that is going public should have a clear investors' structure. But this is not the case for us. The Government made a decision to let the Mongolian public own 20% of TT. This means that the ownership of stocks are blurry because we do not know who will decide to keep or trade their stocks, or whether the Government will offer stocks to other companies or will they keep stocks themselves. We planned to resolve this in 2011 but the problem is still persisting even now.
Two years ago, a resolution was passed from the State Great Khural on trading 30% of the company's stake on stock exchanges. But another resolution passed in January 2012 decreasing this percentage to 20%. On foreign exchanges, more specifically the London Stock Exchange (LSE) and the Hong Kong Stock Exchange (HKSE), when a mining company is aiming to release on many different stock listings, it is required to that at least 20% of the company's stock is out. It means that we must determine exactly how many of our Mongolian citizens will return TT stocks for cash and make sure the stocks traded are more than 20% before proceeding to release TT stocks on foreign exchanges.
The second factor is that any company releasing IPO are always constantly seeking ways to increase the value of their stocks. For TT, by initiating industrial and infrastructure projects, the mining project will not only be a giant coal extracting process but a completely integrated mining complex with processing plants, road and railway entrances and exits and a power plant. This will greatly add to the value of TT. We are hoping to begin these projects in 2012, preferably in the summer.
The third point is that the question of developing and utilizing the West Tsankhi reserve is not yet clear. From the investors' perspective, they wait for more information about the company's future profits and exploits. As for the East Tsankhi, everything is determined and looks fine, but for the West, this is not the case, meaning that the complete value of TT is not yet achieved. So we have no choice but to wait for the evaluation of the West Tsankhi reserve. This will directly affect the mine's value.
The fourth factor is the recent international stock exchange instability. In the past year or so, the world stock market has been relatively unstable. This is the reason that many companies planning for IPO have postponed them. We saw that we should follow the example of those countries and do the same. Our partnering banks also advised this.
By delaying the IPO, it will help the company prepare more and increase its value.
-Previously, it was planned that the IPO of early spring was to fund the upcoming industrial and infrastructure construction. But since it has been delayed, TT will need another source of funding. Have there been any planning or decisions made to obtaining this?
-Since the IPO release has been postponed we see a definite need to find funding from a different source. We are discussing this with a number of investors, seeking to solve it through the sale of coal, presale of coal, and various loans.
-You have said that infrastructure will help add more value to TT. Last week the Government discussed railway development strategies and supported it. How do these Government actions affect TT?
-It is very important that TT begins these infrastructure projects and becomes a large industrial complex. This is not only a matter of TT's development, but it will also be a huge step for Mongolia's infrastructure. To make TT more profitable, railways should be constructed as soon as possible and in many directions. The building of roads also affects the value of the company. In addition to industry and infrastructure projects, Erdenes Tavan Tolgoi's railway will also be a huge project.
-According to your estimation, when will the initial parts of the railway be constructed?
-In my view, the next two or three years will be the age of railway construction for Mongolia.
-Chinese Chalco decided to buy 57.6% of SouthGobi Sands, when this was discovered they claimed that they did not need to get permission from the Mongolian Government. They turned out to be right as it was a loophole in the Securities Law. A new one is being discussed right now, and some say that it carries a number of risks. What is your opinion on this the new Securities Law?
-Aside from mining companies' shares and ownership, we should also make sure to manage the investments and stake ownership of any other companies or industries that we see as strategically important to our nation. In Australia, their Government has laws and policies specifically designed to control the ownership of large stakes of their vital sectors. In other words, we should bring and utilize laws from other experienced countries and people. But we have a tendency to go to the extremes. We must always remember that it is not about limiting foreign investment, but about having the Government issue the right permissions through the correct procedures.
-The Government requires Erdenes Tavan Tolgoi to finance the Human Development Fund (HDF). Does this cause any difficulties for the company?
-Well, it generally causes us some pressure. Last year, we funded the HDF with several billion tugrugs. This year we have also received orders to supply more money to the HDF. It does cause us a bit of a burden. But that does not matter, it is an order from the Government so we are working to fulfill it.
-Elections are coming up. There will be new Ministers and new State Great Khural members. Is there any guarantee that the current TT strategies will not be changed and carried over to the new Government structure?
-The TT mining operation is a huge project that will determine Mongolia's future. The work on TT will continue as it is.
Fostock: Haranga Resources Limited (HAR.ASX, $0.38/sh, Mkt Cap $83m) – Regular news flow expected over coming months with potential for corporate action.
May 10, Foster Stockbroking --
· We recently marketed with management from HAR to institutional clients, following the Company's recent maiden resource at the flagship Selenge Iron Ore Project in Mongolia and $6m strategic placement to Lippo Group.
· The story was generally very well received, with investors recognising the key points of differentiation for Mongolian iron ore. Proximity to China (which reduces freight and increases margins), proximity to infrastructure (~30kms from nearby Eruu Gol rail spur) and mineralisation type (beneficiated via a dry and/or wet mag sep plant) delivers considerable competitive advantages to Mongolian iron ore aspirants such as HAR. Moreover, Mongolia's close proximity to the northern provinces of China offers further opportunity, given these provinces have a growing need for iron ore supply to feed steel mills and fill the gap as a result of declining quantities and grade from local magnetite operations.
· Following the maiden 2011 drilling program of ~13,000m, HAR released an initial JORC of 32.8Mt at 24.4% Fe at the Bayantsogt prospect and exploration target of 120Mt – 250Mt at the larger Dund Bulag prospect. The drilling program for 2012 has been set at 32,000m and in our view will deliver significant resource increases.
· Regular news flow is expected over coming months including met test work, allocation on the Trans Mongolian Railway, preliminary Scoping Study, Mining License and ongoing assay results which will lead to resource growth early 2013.
· We also highlight the corporate appeal of HAR given the strategic position held within the premier iron ore field in Mongolia. Following a recent placement to Lippo Group, the Company's current cash balance has increased to ~$18m. Lippo Group is a major Asian conglomerate with significant investments (estimated at >$50b AUM) held throughout Asia and particularly in Indonesia, China, Hong Kong and Singapore. The group's typical investment holding is ~30% - 40% and our understanding is that they are seeking to significantly increase their exposure to Mongolia. Whilst we don't consider Lippo Group to be the natural owner/operator of 100% of HAR/Selenge, we consider it likely that they will continue to build upon their existing position towards their typical holding level. This could then potentially facilitate a takeover by a more likely natural owner/operator of the Project.
· We retain our BUY recommendation on HAR and price target of $0.90/sh.
Xanadu Mines works to consolidate copper and gold portfolio with Mongolian acquisition
Xanadu Mines (ASX: XAM) will add the prospective Oyut Ulaan copper-gold project in the South Gobi region of Mongolia to its exploration portfolio with the proposed acquisition of Temujin Mining Corporation's wholly owned subsidiary Vantage LLC.
Under the deal, the company will earn an initial 25% interest in the project upon completion of definitive documentation and the issue if a mining licence.
The further 75% will be acquired following approval of the transaction by Xanadu shareholders.
Highlighting the prospectivity of the South Gobi region, Oyut Ulaan is surrounded by a number of porphyry copper and copper skarn deposits including Ivanhoe Mines (TSX: IVN, NYSE: IVN) massive Oyu Tolgoi mine.
Oyu Tolgoi, which is scheduled to be in production in 2013, is the word's largest undeveloped copper-gold project with 81 billion pounds of copper and 46 million ounces of gold.
Further upside of the acquisition, is Oyut Ulaan is strategically located in a region with planned near term rail infrastructure.
The acquisition of Oyut Ulaan will further consolidate Xanadu's copper and gold asset portfolio in the South East Gobi region.
To settle the acquisition of Vantage LLC, Xanadu will issue 3.9 million new shares and A$4.2 million in shares at a price equal to the 15-day volume weighted average price of Xanadu shares on the day of the general meeting to approve the deal.
A further 15 million Xanadu shares will be issued upon the definition of a JORC Resource of at least 90 million tonnes at 1% copper equivalent.
To acquire the initial 25% interest Xanadu must cover expenditures to complete hydrology, environmental and assay reports on the project area.
The company must spend a minimum of $5 million on the project in the 30 months after the mining licence is granted.
Prophecy Coal clarifies power plant study disclosures, commissions Chandgana PEA
May 12 (Proactive Investors) Prophecy Coal Corp. (TSE:PCY) issued a statement late Thursday clarifying previous disclosures related to a feasibility study of a proposed mine-mouth power plant near its its Chandgana coal deposit in Mongolia.
Prophecy Coal's Ulaan Ovoo mine now the largest independent supplier of coal to Mongolian power plants
May 8 (Proactive Investors) Coal miner Prophecy Coal (TSE:PCY) Tuesday announced its Ulaan Ovoo mine has become the largest independent supplier of coal to Mongolian power plants in just over a year.
Robe: UPDATE ON MONGOLIAN ACQUISITIONS
May 9 -- The Board of Robe Australia Limited (ASX: ROB) (Robe or the Company) wishes to provide the following update of the activities of Robe subsequent to the lodgment of the Interim Finance Report and Appendix 4D for the half year ended 31 December 2011.
(i) Mongolian Resources Asset
Robe appointed Green Exploration and Mining Services Pty Ltd (GEMS) to undertake an Independent Geologist Review of the TG River Licence, which is the subject of an option exercised on 6 December 2011. Whilst the formal report has not been received, indicative discussions indicate that a significant amount of further work is required in order to establish a development plan for the TG River Licence. As a consequence, the Board is in further discussions with the Vendor of the Option in relation to not only finalization of the transaction relating to the TG River Licence, but also in relation to the acquisition of further licences.
As a consequence of these additional negotiations and further due diligence being required, the Company does not expect to hold a General Meeting before July 2012 to ratify the execution of the existing TG River Licence acquisition and such other transactions as may develop.
(ii) Capital Raising
The Company has been in discussion with its underwriters and expects to raise approximately $2 million from a fully underwritten Capital Raising in order to both meet the requirements of Chapters 1 and 2 of the Listing Rules and provide sufficient funds to undertake further feasibility studies in relation to the proposed transactions outlined above.
The Company expects to provide eligible Shareholders with a priority offer in respect to the proposed Capital Raising. Existing option holders, who have no inherent right to participate in the priority offer, will be notified of the Raising and given time to exercise their options if they so choose. The timetable in respect to the Capital Raising, issuance of the Prospectus with ASIC and General Meeting of Shareholders will be driven by the finalization of the abovementioned transactions in respect to the TG River Licence and other prospective licences that are currently being negotiated.
(iii) Board Structure
The Board has had preliminary discussions in relation to proposed changes to the Board structure as a consequence of completion of the abovementioned transactions; however, these are preliminary in nature only and no definitive decision has been made in respect to an appointment at this time.
CNSX: Khan Resources Listing Approved
Monday, May 14, 2012
49373T 10 2
CA 49373T 10 2 1
Mongolia Growth Group Ltd. Publishes April 2012 Monthly Letter to Shareholders
Ulaanbaatar, MONGOLIA, May 10, 2012 /FSC/ - Mongolia Growth Group Ltd. (YAK - CNSX),is pleased to announce the release of its April 2012 letter to shareholders.
April 2012 Shareholder Letter
To the Shareholders of Mongolia Growth Group Ltd.,
April was another month of growth in our property portfolio. In particular, we spent sizably to acquire additions to a number of redevelopment assets. At the same time, we also executed a number of sales as we focus on disposing of non-core assets. To date, we have sold roughly a third of the assets that were classified as "held for sale" ($CDN 1.76 million) at year end, realizing an average gain of approximately 33% in local currency on those assets.
If you will remember, at the end of last year, we decided to exit the majority of our non-core residential portfolio, for ease of property management, as we shift focus to larger assets and redevelopment opportunities. We are pleased to announce that this process is going well and there seems to be very high demand for our remaining assets.
One very enjoyable quirk of this process is that a foreign investor has asked us to manage one of the residential assets that we recently sold. I say that this is enjoyable as we have looked to explore the property management business for quite some time. Clearly, we do not intend to start managing the sort of smaller assets that were just sold. Instead, our intention is to become the property manager of assets that we hope to build in the future through joint ventures. This would allow us to leverage our infrastructure and generate very high margin recurring management fees. Of course, this is many years in the future still. However, you have to start somewhere when it comes to managing assets for others and this seems like an ideal moment for us to begin building a track record with outside investors, as we now have substantial excess capacity in our own operations.
Our plan is to take on a few additional clients as we learn more about managing third party assets. Our expectation is that during this trial period, the total management revenues from this venture will be negligible and likely produce a small operating loss for us after taking into account the duplicate version of our property software that we will need to purchase. However, we see this as an important step forward in being able to offer joint venture partners both quality redevelopment opportunities and the confidence that they can be professionally managed after construction is completed.
On a final note, you may be wondering why our monthly letter was released a few days later than normal. We had originally hoped to include a video in this letter. Unfortunately, production issues beyond our control have pushed this project past our deadline. We hope that it can be included in next month's letter.
Chairman & CEO
Mongolia Growth Group Ltd.
Financial Press on Altan Rio: A Canadian Gold Junior Worth Watching
With the global economy set to limp its way through 2012, gold prices continue to soar toward a record high, while Vancouver-based junior Altan Rio forges ahead with a fast-paced drill campaign set against the backdrop of mineral-rich Mongolia.
Vancouver, BC (PRWEB) May 08, 2012
(Financial Press) With the global economy set to limp its way through 2012, gold prices continue to soar toward a record high, while Vancouver-based junior Altan Rio [TSX-V: AMO] forges ahead with a fast-paced drill campaign set against the backdrop of mineral-rich Mongolia.
Founded in 2006 and having become listed just this past January, Altan Rio is a well-financed company housing top mining talent. To date, Altan Rio has invested over US$6 million assembling and exploring highly prospective precious metal and copper projects, which encompass three projects spanning more than 153,310 hectares .
Mongolia— the most sparsely populated country on Earth—is a great place for a Canadian junior like Altan Rio to go exploring. It's one of the world's most prospective mineral regions, with most of the country having yet to be introduced to modern exploration methods. The country enjoys a stable government and the International Monetary Fund estimates that Mongolia's GDP has the potential to grow up to ten percent this year, in part by ever-increasing gold prices. Altan Rio is poised to cash-in on Mongolia's offerings with its two primary focus properties: Chandman-Yol and Khavchuu.
In an effort to investigate and understand the advantages of mineral exploration in Mongolia at the Chandman-Yol and Khavchuu projects, Financial Press conducted an interview with Altan Rio's Director of Exploration, Kelly Cluer.
Q) Financial Press: How is Mongolia to operate an exploration company comparative to other foreign jurisdictions?
A) Kelly Cluer: Mongolia is a very safe and friendly country to work in. It's very important to work with the locals and we have a very experienced Mongolian national team and an office in Ulaanbaatar. We are also pleased that we now have over 15% Mongolian shareholders and have even raised money with brokers in Mongolia.
Of course there are always a few snags along the way, like with any exploration in a developing country, but overall Altan Rio has found working in Mongolia to be a very positive experience. One of the key aspects of Mongolia is the Buddhist culture that is always just beneath the surface – virtually no overt violence, making it a very safe place to live and work. It really is a beautiful country with extremely friendly and welcoming people.
Q) Financial Press: What sets Altan Rio apart from other venture listed gold juniors? (What is the company's recipe for success)?
A) Kelly Cluer: Our portfolio of projects and experienced management and first-rate Mongolian national team really sets us apart from other juniors.
Our Chandman-Yol project is over 1,400 km2, an entire mountain range, where we have seven key copper-gold targets so far and are finding more each field season. Our drill program in 2011 at the KY porphyry intrusion picked up some decent grades above the target zone and we are keen to test deeper into the intrusion in 2012. Shallower targets, some even outcropping at surface, will also be the focus of the 2012 program.
Chandman-Yol isn't your typical junior company project. We really have an opportunity to discover a large copper-gold porphyry system with huge tonnage potential.
Khavchuu is another project we are very excited about. It lies only 10 km west from Centerra Gold's Boroo mine and mill complex. The project is 71 km2 and recent work has shown strong gold and arsenic anomalies in rock and soil samples and IP-resistivity anomalies on par with the Boroo deposit. We just started the first ever drill campaign on the project and are excited to see the results.
Secondly, our management and Mongolian National team sets us apart. Our Chairman, John Jones is a prominent player in the international mining sector with over 40 years of experience. His involvement in four companies has led to the discovery of four deposits and the development of eight mines. John brings a lot of experience to the table.
We also have an experienced Mongolian National staff of six seasoned geologists with over 30 years of combined experience. We have a great team and a very exciting portfolio of projects.
Q) Financial Press: Are there any other success stories in Mongolia that relate to Altan Rio? If so, was management from Altan responsible directly or indirectly?
A) Kelly Cluer: Yes, I was involved in the team discovery of Gatsuurt in 1998, which is located east of the Boroo mine. The deposit is currently a 2 Moz open-pit resource which grades about 2.6 g/t gold. It was an excellent example of international teamwork pulling off a grass-roots discovery in the early days of Mongolia's first western explorers.
I have been working in Mongolia for over 14 years, and while with Centerra Gold, I assisted with the pre-production drill-out and mine modeling of the Boroo deposit and with their successful IPO in 2004. Altan Rio has quite a bit of experience in Mongolia that quickly led us to the key projects we have today, and augments our ability to operate effectively in the country, having already learned the "what not to dos".
Q) Financial Press: When can investors expect assay results back from the current 1,800 metres of drilling at the Khavchuu prospect? Is there a timetable of events the market will want to pay close attention too?
A) Kelly Cluer: Drilling is still underway at our Khavchuu project and is expected to wrap up in early May. Initial assay results are anticipated within the next few weeks. We hope to have news out within the next month.
The summer exploration and drilling season at Chandman-Yol will start up in late May. We are likely to begin drilling our near surface targets first and then return to test the deeper targets at the KY porphyry intrusion.
Overall it will be quite a busy field season for Altan Rio on both the Khavchuu and Chandman-Yol projects. Watch for news throughout the summer and into the fall.
Located in the Altai mountain range near Khovd and 1,050 km west of the capital Ulaanbaatar, sits Altan Rio's 140,174 hectare Chandman-Yol property. The property consists of nine tenements 100% owned by Altan Rio, with five of these subject to a 2.5% NSR (net smelter royalty).
Previous drilling campaigns completed on the property during 2009/2010 yielded three out of seventeen diamond drill holes showing sizable gold-copper mineralization with intersections of 32.13 m at 1.49 g/t gold, 0.60% copper and 8.07 g/t silver, including 10.39 m averaging 2.71 g/t gold, 0.91% copper and 12.11 g/t silver as well as 10.75 m at 1 g/t gold, 0.65% copper and 4.8 g/t silver.
The most recent thirteen-hole drill program on the property revealed strong molybdenum anomalies, an exciting gold grade of 28 g/t over 1 m, and silver intersections of 13.2 m at 43.12 g/t including 1 m at 106.31 g/t and 1 m at 118.86 g/t, as well as 39.6 m at 24.57 g/t including 2.5 m at 128.3 g/t and 2.2 m at 114.26 g/t.
Timeline-wise, 2012 sees Altan Rio drilling even deeper on last year's KY porphyry target and within four newly discovered shallower zones on the Chandman-Yol property.
Altan Rio's 7,140 hectare Khavchuu gold project is located in Tov Aimag in northern Mongolia, just 10 km from the Centerra Gold Boroo mill complex and 15 km north of the Narantolgoi underground gold mines, enjoying easy access year-round. The property contains significant geophysical and gold-arsenic geochemical anomalies in an orogenic gold setting similar to that of the Boroo mine, pointing to the potential for a success story similar to that of the Boroo mine. To date, Altan Rio has taken over 1,200 samples on the property, showing robust arsenic anomalies as well as a small zone of quartz veining revealing visible gold. Until now the property has never been drilled, but March 5th saw the company announcing the commencement of a six hole, 1,800 m drill program that will be completed in early May.
An Economic Climate In Favour Of Gold
The price of gold has tripled over the last five years with 2011 seeing record nominal highs, but will it hit the inflation-adjusted high of $2,500 in the not-too-distant future? The euro zone debt crisis, a seemingly immobile US unemployment rate, geopolitical turmoil spanning the Middle East, debt monetization and competitive currency devaluations are contributing to a mood of uncertainty for investors who continue to choose to hedge their funds in the gold market. Many investors feel that this strategy will pay off as it did in 2011, and will continue to protect their wealth during further economic volatility in the years to come. This is great news for Altan Rio, whose stage is set for a promising 2012.
Altan Rio's skilled team is led by President and CEO Evan Jones. In addition to his current role, Mr. Jones serves as President, CEO and Director of Altan Nevada Minerals Limited and is the former Commercial Manager of Troy Resources Brasil Participacoes Ltd. and Executive Advisor with Westchester Corporate Finance. Mr. Jones is backed by John LC Jones, Chairman; J. Kelly Cluer, Director of Exploration; Robert Scott, CFO; Murray Seitz, Director; and Paul O'Brien, Director.
As of May 1st Altan Rio's market capitalization is $18.2 million and shares can be purchased for $0.40.
Follow Altan Rio's story at http://www.altanrio.com.
Ivanhoe Mines Appoints New Chairman and Additional Director
Ivanhoe Mines Appoints Four New Directors and Accepts Resignation of Three Directors
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 8, 2012) - Ivanhoe Mines (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) announced today that the company's Board of Directors has appointed four new directors. The newly appointed directors are Jill Gardiner, Peter Gillin, Isabelle Hudon and David Klingner.
The Board has also accepted the resignations of directors Michael Gordon, David Huberman and Robert Holland.
The new appointees join Ivanhoe's four existing directors, who are Andrew Harding, Dan Larsen, Peter Meredith and Kay Priestly. All directors will be submitted to a vote by shareholders at the Ivanhoe Mines' annual meeting that has been rescheduled for June 28, 2012, with a record date of June 6, 2012.
The Board of Directors is expected to appoint a chairman later this week.
Biographies of Newly Appointed Directors
Ms. Jill Gardiner was a senior executive of RBC Capital Markets where she held a variety of posts including Head of British Columbia, Head of Forest Products Group and Head of Global Utilities Group. She is currently a Director of Parkbridge Lifestyle Communities, a Director of Timber Investments, Chair of the Banff Centre Foundation and a Governor of The Banff Centre. Ms. Gardiner is based in Vancouver.
Mr. Peter Gillin has served as Chairman and Chief Executive Officer of Tahera Diamond Corporation, President, Chief Executive Officer and Director of Zemex Corporation, and held a number of senior positions with NM Rothschild & Sons Canada Limited, including Vice Chairman, Director, and CEO. He is currently a Non-Executive Director of several public companies including Silver Wheaton Corporation, Dundee Precious Metals and Sherritt International Corp. Mr. Gillin is based in Toronto.
Ms. Isabelle Hudon is currently President of Sun Life Financial Quebec and previously served as President of Marketel and President and Chief Executive Officer of the Board of Trade of Metropolitan Montreal. She chairs the board of directors of the Université du Québec à Montréal. Isabelle is also a board member of Hydro-Québec, Aéroports de Montréal, Holt Renfrew Canada, and the Institute for Research on Public Policy. Ms. Hudon is based in Montreal.
Dr. David Klingner has been a corporate director since 2004 after spending 38 years in the mining industry. During his career with Rio Tinto, he held a variety of positions including Head of Exploration, Group Executive responsible for Rio Tinto's coal and gold businesses in Australia and Indonesia and Managing Director of Kaltim Prima Coal in Indonesia. Dr. Klingner retired from Rio Tinto in 2004. He currently serves as Non-Executive Chairman of Energy Resources of Australia Ltd and Chairman of Codan Limited. Dr. Klingner is based in Melbourne.
Ivanhoe Energy Reports First Quarter 2012 Financial Results
Critical Projects Continue to Advance
In the first quarter, Ivanhoe Energy started drilling the exploration well in Ecuador, conducted seismic and took further steps in the process to achieve regulatory approval for Tamarack, made progress in establishing an HTLTM mid-stream partnership with Coban for the Republic of Guatemala, conducted further testing in Mongolia and advanced previously disclosed corporate development activities. All of these activities are critical to building long-term shareholder value.
Nyalga – Mongolia
Cutting samples recovered from the second well drilled in east-central Mongolia at the end of 2011 were sent for testing to two separate laboratories to determine the oil quality within the reservoir. Contracts have been tendered to conduct the necessary completion and testing services on this well; however, completion operations are contingent on the results obtained from the analysis.
Entree Gold Reports on First Quarter 2012
· After factoring in projected increases to capital expenditures and operating costs, the net present value ("NPV") (at an 8% discount rate) of Entree's 20% interest of the "Reserve Case scenario" for Hugo North Extension - Lift 1 increased from $79 million (see news release of May 11, 2010) to $129 million. The "Reserve Case" probable mineral reserves on which this NPV calculation is based represents less than one quarter of the resources at Hugo North Extension.
· While projected capital expenditures for the Oyu Tolgoi mining complex have increased significantly from the 2010 estimates, Entrée's portion has only increased by approximately $2 million.
· Net smelter return ("NSR") value of the Hugo North Extension - Lift 1 reserve increased from $55.57/tonne to $79.40/tonne (see news release of March 30, 2012). The NSR calculation reflects the net value per tonne received for the ore after processing and transport costs and charges have been deducted.
· The Hugo North Extension deposit contains some of the highest grade mineralization found to date along the Oyu Tolgoi trend.
· A significant portion of the mineralization on the Entrée-Oyu Tolgoi LLC ("OTLLC") joint venture property has not been included in the updated mining plan and remains in the mineral resource category, including Hugo North Extension - Lift 2 and all of the Heruga deposit.
· Drilling of joint venture targets continues on the Entrée-OTLLC joint venture property. In 2011, approximately 14,900 metres of exploration drilling were completed, along with 13,067 metres of engineering drilling.
· On April 18, 2012, Ivanhoe Mines announced that it has signed a binding memorandum of agreement with its majority shareholder Rio Tinto that establishes Rio Tinto's support for a series of funding measures expected to cover all projected capital requirements for the Oyu Tolgoi mining complex for the next four to five years.
· On April 25, 2012, Entrée announced that core hole EJD0034A collared on the eastern flank of the Heruga deposit intersected 590 metres of 0.33% copper, 0.70 grams per tonne ("g/t") gold and 56 parts per million ("ppm") molybdenum, or 0.80% copper equivalent ("CuEq"). This intersection is not included in the reported Heruga inferred resource estimate (see news release of March 30, 2012) and may represent an eastward step-out to the deposit.
· Surface sampling returned two separate high-grade surface chip samples averaging 42.4 g/t gold over 4 metres and 19.3 g/t gold over 3 metres, respectively.
· Reverse circulation ("RC") drilling intercepts include 2.21 g/t gold over 3 metres (hole ending in mineralization), 9.32 g/t gold over 2 metres, and 2.08 g/t gold over 8 metres.
· Low sulphidation style epithermal mineralization is hosted in altered, quartz-veined felsic volcanic rocks associated with a 2.5 kilometre long magnetic low.
· Field crew has been mobilized to Mongolia to commence further exploration on the Argo Zone.
Denison Mines Corp. Reports First Quarter 2012 Results
TORONTO, ONTARIO--(Marketwire - May 9, 2012) - Denison Mines Corp. ("Denison" or the "Company") (TSX:DML)(NYSE Amex:DNN) today reported its financial results for the three months ended March 31, 2012.
The Company recorded a net loss of $51,987,000 or $0.14 per share for the three months ended March 31, 2012 compared with a net loss of $7,067,000 or $0.02 per share for the same period in 2011. The results for the quarter include a charge of $44,079,000 related to an impairment of the US Mining segment which was recorded as a result of the transaction with Energy Fuels Inc. ("EFR") referred to below.
Mineral Property Exploration
Denison is engaged in uranium exploration, as both operator and non-operator of joint ventures and as operator of its own properties in Canada, the U.S., Mongolia and Zambia. For the three months ended March 31, 2012 exploration expenditures totaled $3,035,000 as compared to $3,185,000 for the three months ended March 31, 2011.
Exploration expenditures of $306,000 for the three months ended March 31, 2012 ($305,000 for the three months ended March 31, 2011) were incurred in Mongolia on the Company's joint venture properties. The Company currently has an 85% interest in the Gurvan Saihan Joint Venture ("GSJV") in Mongolia. The other party to the joint venture is the Mongolian government. Under the Nuclear Energy Law of Mongolia, the Mongolian participant in the GSJV is entitled to hold a 34% to 51% interest in the GSJV, depending on the amount of historic exploration that was funded by the Government of Mongolia, to be acquired at no cost to the Mongolian participant. This interest would be held by Mon-Atom LLC, the Mongolian state-owned uranium company.
The Company and Mon-Atom are proceeding with restructuring the GSJV to meet the requirements of the Nuclear Energy law, pending government reviews and authorizations. In March 2012, the Company acquired the 15% interest of Geologorazvedka, a Russian entity, for cash consideration of $742,000 and the release of Geologorazvedka's share of unfunded joint venture obligations. This additional interest is expected to be transferred to Mon-Atom as part of the restructuring plan. The final restructuring of the GSJV is expected to result in the Company having its interest reduced to 66%. It is anticipated that the restructuring will be completed in 2012.
Outlook for 2012
In Mongolia, a $4.3 million exploration and development program is projected, contingent upon receipt of the mining licences in mid-2012. Included in this budget is a $2.5 million, 27,900 metre exploration program focused on the Ulziit and Urt Tsav 2011 discoveries.
Desert Eagle Announces Passing of Board Member
Nova: Board Appointment
May 11 -- The Directors of Nova Resources Limited (AIM: NOVA.L) are pleased to announce that Mr Christopher Andrew Morgan ("Chris") has been appointed to the board as Non-Executive Director, with immediate effect.
Chris (age 49) currently serves on the board of a number of investment companies and acts as a consultant, addressing the needs and requirements of an assortment of high net worth individuals, as well as providing legal and investigatory services and management to various multi-million dollar corporate litigations and criminal investigations.
He has served previously with the Metropolitan Police and the National Criminal Intelligence Service where he received a number of Commendations.
Save for the above and below and pursuant to Rule 17, Schedule Two (g) of the AIM Rules, the following information is disclosed:
Albert Abela Corporation
Neos Interactive Limited
RCJ Developers LLP
Rhein Parklands Limited
Bond London Limited
Leo Investments Limited
TCJ Investments Limited
Pam Field Investments Ltd
Bright Shield Assets Management Limited
Asia Credit Corporation Limited
Asia Carbon Investments Limited
Abela Hellas Catering Services S.A.
AJMA Services (UK) Limited
There is no further information required to be disclosed.
Fook-Meng Chan, Chief Executive Officer comments:
"The Company is delighted that Christopher Morgan has accepted the appointment of Non-Executive Director. With his extensive industry knowledge and risk management background, he brings an invaluable perspective to the Nova board."
Metal-Tech: Results for the year ended 31 December 2011
May 11 -- Metal-Tech (LON:MTT) , the producer and recycler of speciality metals such as Tungsten and Molybdenum, announces results for the year ended 31 December 2011.
· The bankruptcy issue with the Company's Mongolian joint venture, Shim-Technology Co. Ltd. (Shim-Tech), is still under court process
Update on Mongolian Operations
As stated on 28 June 2011, the Company was informed that the court in Erdenet has in May 2011 declared Shim-Tech, the Company's Mongolian subsidiary, bankrupt and ordered relevant authorities to freeze its accounts and seize its assets. As a result, the Company is no longer in control of Shim-Tech and therefore ceased to consolidate the financial statements of Shim-Tech. As previously stated, Metal-Tech is taking all necessary actions in Mongolia to attain a fair and just result for the Company, including the submission of its claims as creditor of Shim-Tech.
MSE Daily Update: MONGOLIAN SHARES INCHES UP, MONINJBAR SOARS 10.26 PERCENT
10 May 2012 (BDSec) – MSE Top 20 inched up 0.02% to finish at 20,331.40 points on Thursday. Moninjbar (MIJ) jumped 10.26% to finish at MNT 215. Moninjbar posted sales revenues of 3,579.4 mln MNT (+92.9% over 2011) and total expense of 3,500.9 mln MNT (+90.1% over 2011), resulting net earnings of MNT 78.5 mln in 2011.
The Annual General Meeting of Moninjbar, that currently held, approved to distribute a dividend of MNT 2 per share from the 2011 earnings. Last year, Moninjbar joined a concertium called "Chinggis Land Development Group" that includes big national construction companies such as Nasny Zam LLC, Mongolyn Khurdny Zam, Tsast Impex LLC, Just Group LLC and Chinggis Globe Magistral LLC. The concertium was established to win bigger tenders announced by the government.
Sudut (SDT) soared 13.79% one more time to close at MNT 33. Material Impex (MIE) gained 5.00% to MNT 6,300.
E-Trans Logistics, which jumped 15% to MNT 138 on its first secondary market trading on Monday, closed 2.24% down to close at MNT 131 today. Takhi Co (TAH) lost 10.0% to MNT 4,500 following its fall yesterday. Medal, medallion, jewelry and goldsmithery manufacturer Zoos Goyol (ZOO) dropped 3.53% to MNT 820.
Volume was light at MNT 65.8 mln or US$50 thous.
Local News in Brief
- The 8th forum "For the development of Mongolia" ran last weekend in Stockholm city, Sweden. Under a topic "Chance to introduce high-tech and European standards", this year's forum has been co-organized by Mongolia's Embassies in the UK and Sweden, the National Development and Innovation Committee, the Europe-Mongolia Society, the National Union of Mongolians in Britain and other organizations. The next year's forum will take place in London.
- The General Election Committee reported on Wednesday that it finished a registration of political parties and coalitions who want to run in the 2012 parliamentary election. According to the report, 11 political parties and two coalitions have been registered.
- Moody's Disclosures on Credit Rating of Trade and Development Bank of Mongolia LLC. Moody's current ratings on Trade and Development Bank of Mongolia LLC are: Senior Unsecured (foreign currency) ratings of Ba3, on review for downgrade. Senior Unsecured MTN Program (foreign currency) ratings of (P) Ba3, on review for downgrade. Long Term Bank Deposits (domestic currency) ratings of Ba3, on review for downgrade. Long Term Bank Deposits (foreign currency) ratings of B2. Long Term Issuer Rating (domestic and foreign currency) ratings of Ba3, on review for downgrade. Bank Financial Strength ratings of D-, on review for downgrade. Subordinate (foreign currency) ratings of B1, on review for downgrade. Subordinate MTN Program (foreign currency) ratings of (P) B1, on review for downgrade. Short Term Bank Deposits (domestic and foreign currency) ratings of NP. Other Short Term (foreign currency) ratings of (P) NP. Short Term Issuer Rating (domestic and foreign currency) ratings of NP
Tax revenue from Mongolia's mining: US$330 per Mongolian
May 10 (EITI) With a population of 2.8 million people, Mongolia collected US$330 per person from its oil and mining resources, shows the country's 2010 EITI report that was released on Tuesday 8 May.
The report released by Prime Minister Mr Batbold reveals that the government of Mongolia collected a total of US$913,8 million in taxes and other payments from the top tax paying companies in 2010.
Shedding light on payments to environmental rehabilitation
Mongolia is part of a global trend to require additional disclosure from the companies as part of their EITI, and going beyond the minimum requirements.
Now the extractive companies operating in Mongolia are also disclosing environmental rehabilitation transfers to the government and real expenses.
These flows are included in their EITI report as a means of making companies accountable for how they manage the environmental aspects of mining activity.
Mongolia has for the first time disclosed the list of the current holders of production and exploration licenses covered in the report, together with production and sales volumes by company and commodity.
Big windfall from booming mining
In Mongolia, more than 50 per cent of the tax revenue stems from copper mining, with coal mining being the second largest source.
Further, windfall tax and corporate income tax are the largest revenue streams, representing 36 per cent and 17 per cent of total reported government income respectively.
In total, the extractive sector accounted for 30 per cent of GDP, 32 per cent of government revenue and 81 per cent of exports in 2010.
The EITI report now includes payments from 150 of the largest companies, whose payments are larger than the agreed threshold. The revenues from the smaller operators were disclosed in a separate report issued by the Ministry of Finance and Mongolian Mineral Resources authority.
Like previous reports, the 2010 report includes highly detailed reporting of social payments and donations to state, regional and local government. It covers payments to 21 provinces and 169 districts, as well as separate sub-national reconciliations for the districts where Oyu Tologi, one of the world's biggest copper mines, and Tavan Tolgoi, the world's biggest deposit of coking, are located.
For further information about EITI in Mongolia, please visit Mongolia's EITI country page.
SAIL to develop coal, iron ore deposits in Mongolia
May 11 (Domain-B) Steel Authority of India Ltd (SAIL) plans to develop coal and iron ore deposits in Mongolia in collaboration with the local government, in a bid to ease India's persisting coal shortfall.
SAIL today signed a memorandum of understanding (MoU) with the Mongolian ministry of mineral resource and energy (MMRE) to explore business opportunities in the mining and steel sector. The MoU will enable SAIL to acquire a coking coal mine in coal-rich Mongolia.
The Mongolian ministry will provide information on iron ore and coal deposits, including location and size, upon which SAIL will undertake a pre-feasibility study, SAIL said in release.
MMRE and SAIL will also jointly take up a pre-feasibility study for setting up a mineral processing facility for iron ore and coal, both coking and thermal, in Mongolia. The two parties will also undertake construction of downstream steel plants both for local consumption and exports.
The MoU envisages investments by SAIL either solely or in a consortium with other entities to develop mineral processing/ steel manufacturing facility in Mongolia, the statement said.
SAIL said it would select the best available technology to treat Mongolian iron ore and coal deposits based on the feasibility study.
Meanwhile, a report in The Hindu, said a delegation led by C S Verma, chairman of the Steel Authority of India, and UP Singh, joint secretary in the ministry of steel, in the Mongolian capital of Ulaanbaatar, to sign the contract.
"Mongolia has very good quality of coking coal mines. We do not have such quality coalmines. Let the Mongolian government allocate some good coking coal mine and we will have reciprocal arrangement to set up a steel plant there," he said.
In exchange for the coalmine acquisition, India has proposed to construct a steel plant in Mongolia, the country's first ever plant.
The coalmine SAIL targets should be able to meet the requirement of the proposed steel plant. Any excess will be supplied to India.
India, currently imports 35 million tonnes of coking coal a year, which is mostly sourced (60 per cent to 70 per cent) from Australia, while the rest comes from the US and New Zealand.
Meanwhile, the price of Australian coking coal has spurted, from $125 per tonne in 2010 to $360 per tonne in 2011, Verma said.
Moody's Disclosures on Credit Rating of Trade and Development Bank of Mongolia LLC
Hong Kong, May 09, 2012 (Moody's) -- The following release represents Moody's Investors Service's summary credit opinion on Trade and Development Bank of Mongolia LLC and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for Trade and Development Bank of Mongolia LLC.
Moody's current ratings on Trade and Development Bank of Mongolia LLC are:
Senior Unsecured (foreign currency) ratings of Ba3, on review for downgrade
Senior Unsecured MTN Program (foreign currency) ratings of (P)Ba3, on review for downgrade
Long Term Bank Deposits (domestic currency) ratings of Ba3, on review for downgrade
Long Term Bank Deposits (foreign currency) ratings of B2
Long Term Issuer Rating (domestic and foreign currency) ratings of Ba3, on review for downgrade
Bank Financial Strength ratings of D-, on review for downgrade
Subordinate (foreign currency) ratings of B1, on review for downgrade
Subordinate MTN Program (foreign currency) ratings of (P)B1, on review for downgrade
Short Term Bank Deposits (domestic and foreign currency) ratings of NP
Other Short Term (foreign currency) ratings of (P)NP
Short Term Issuer Rating (domestic and foreign currency) ratings of NP
Moody's assigns a bank financial strength rating (BFSR) of D- to the Trade and Development Bank of Mongolia (TDB), which maps to a standalone rating of ba3 on the long-term rating scale. The rating reflects the bank's: (1) solid market position, (2) sound profitability, and (3) good operating efficiency.
The rating is offset by the bank's: (1) high concentration risk, given the less-diversified and volatile nature of Mongolia's economy, (2) substantial Tier 1 core capital needs, in case it repeats its rapid growth over the next few years, and (3) relatively weak corporate governance on a global basis.
The operating environment has been improving due to the recovery in the mining industry. We believe that the benefits of the Oyu Tolgoi copper and gold project, as well as the Tavan Tologoi coking coal project, will be transformational for the economy. But the historic boom-bust cycle of the economy adds to the volatile operating environment for the banking business.
According to the IMF, the Mongolia's economy is overheating currently, raising concerns of a hard landing if external shocks hit the country. The European sovereign crisis could also lead to a significant drop in copper and coal prices.
The IMF believes that the size of the country's foreign currency reserves and its swap line with the People's Bank of China (PBOC) are not enough to defend an exchange rate target. In addition, inflation of 15%-16% may accelerate as fiscal policy is expected to be challenged by political pressure for pro-cyclical spending.
TDB is 73.1% owned, directly and indirectly, by US Global Investment LLC, an intermediate parent company, which is in turn owned equally by an individual, Erdenebileg Doljin, and Central Asia Mining LLC. The latter is the ultimate parent company, and is owned by two individuals. Goldman Sachs acquired a 4.8% stake in TDB in February 2012.
Apart from the treasury stock of 3.4%, the bank's remaining stake of 18.3% is owned by a number of individuals, who are minority shareholders.
We believe that the probability of systemic support for TDB is high, given the bank's large market presence in Mongolia. The systemic support indicator for Mongolia (i.e. the government bond rating) is B1, which leaves the bank's local currency bank deposit rating at its standalone rating of ba3. TDB's foreign currency deposit rating is B2, and is constrained by the country ceiling.
Moody's also assigns a foreign currency Ba3 rating to the bank's senior unsecured debt, and a B1 rating to dated subordinated debt in its medium-term note program. Its short-term ratings are not-prime.
TDB's deposit and debt ratings incorporate three main elements: (1) the bank's BFSR of D-, (2) Moody's assessment of high systemic support from the Mongolia government, a component of the Joint Default Analysis (JDA), with the systemic support indicator of B1, and (3) the seniority of its deposits and debt.
- Solid franchise in Mongolia as the country's third largest bank in terms of loans and deposits
- Leading position in corporate banking, foreign exchange, as well as the trade-related and project finance business
- Sound profitability with good operating efficiency
- Maintaining good asset quality, while pursuing loan growth in a volatile economy
- Lack of geographic diversification
- High risk from customer concentrations and potential corporate governance issues
- Core capital under pressure if the bank repeats its rapid growth in coming years
The BFSR, local currency bank deposits rating, issuer rating, foreign currency long-term senior unsecured debt rating, foreign currency long-term senior unsecured MTN/ subordinate MTN are on review for downgrade. The foreign currency deposit rating carries a stable outlook.
What Could Change the Rating - Up
There is no upside pressure on the rating in the short term, as reflected in the review for downgrade. The current standalone credit assessments-- which are above the sovereign level-- are likely to decline, under global guidance.
The review of Mongolian banks is in accordance with Moody's re-assessment of the correlation between the sovereign and banking sector. It is not due to any changes in TDB's standalone credit profile.
During the review, Moody's will focus on the following factors that could mitigate TDB's credit correlation with that of the sovereign: (1) its relative low direct exposure to government debt, apart from central bank bills, (2) the sizeable presence of foreign shareholders, (3) any changes in the vulnerability of the Mongolian banking system to shocks when compared to the 2008 crisis, and (4) the size of the liquidity buffers - in both domestic and foreign currency - held by TDB.
What Could Change the Rating - Down
Additional factors that could exert negative pressure on the rating include (1) asset quality deteriorating significantly, possibly due to aggressive expansion, (2) NPLs surpassing 4.5%, (3) the new NPL formation rate of gross loans exceeding 8%, (4) its Tier 1 ratio falling below 9%, (5) profitability deteriorating significantly, with net income less than 1.4% of average RWA, or (6) signs of strain in the bank's liquidity position, a decline in the Mongolian economy, or a system-wide confidence crisis, which could threaten the bank's franchise.
The methodologies used in this rating were Bank Financial Strength Ratings: Global Methodology published in February 2007, and Incorporation of Joint-Default Analysis into Moody's Bank Ratings: Global Methodology published in March 2012. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.
MP L.Bold proposes to establish the "Bayanmongol" company
May 11 (news.mn) MP L.Bold (DP) sent a draft law on Bayanmongol Company, which he initiated, to the government for get a feedback. A similar draft law discussed by the parliament in 2009 and as result of discussion law on Human Development Fund was approved by the parliament. By the Human Development Fund law suppose to establish a national company for distribution state shares of strategic mine for citizens.
The government established "Erdenes Mongol" company based on Tavantolgoi mine, "Erdenes Oyutolgoi" based on Oyutolgoi mine and decided to distribute 1072 shares from "Erdenes Tavantolgoi" to every Mongolians.
But Mp L.Bold considered have not established national company as said in the law and prepared a draft law on establishment of the national company.
L.Bold proposed to establish an independent company not depending from the government. Governing body will be a meeting of shareholders and two representatives from 21 province and four representatives from capital city will form a governing body.
Jailed Mongolian Ex-Leader Hospitalized on Hunger Strike
May 10 (Bloomberg) Jailed former Mongolian President Nambar Enkhbayar, who plans to run in parliamentary elections in June, is refusing treatment and his organs are failing six days after he began a hunger strike to protest his imprisonment.
Enkhbayar, who previously served as prime minister and then president of one of the world's fastest growing economies, was taken to a hospital in the capital Ulan Bator yesterday, according to his son Batshugar. He said he saw his father yesterday, that he was "very weak" and had vowed to continue his hunger strike. A spokeswoman for President Tsakhia Elbegdorj declined to comment.
The former leader's treatment may further unsettle foreign investors who helped fuel 17.3 percent economic growth last year, said Oliver Belfitt-Nash, head of research at Ulan Bator- based brokerage Monet Capital LLC. Political infighting in recent months has hindered efforts by the government to sell off state-run coal mining companies so it can raise cash for infrastructure projects in the country of 2.8 million people.
United Nations Appeal
Mongolia Faces Questions Over Commitment to Democracy
May 11 (WSJ) Mongolian President Tsakhia Elbegdorj, responding to international concerns over the jailing of his predecessor, said he has no right to interfere in corruption probes.
But in a statement he called for "humane" and "transparent" treatment for Enkhbayar Nambar, who has been jailed for almost a month on allegations he illegally profited while in office. Mr. Enkhbayar hasn't been charged.
The statement, dated Thursday, comes as Mongolia's leadership faces mounting questions about its commitment to democracy and its appetite for foreign investment.
Mr. Enkhbayar's family says his effort to protest his innocence and detention with a hunger strike has now landed him in a hospital where doctors are debating whether to begin force-feeding him.
The U.S. has voiced its concern about Mr. Enkhbayar. A U.S. State Department spokeswoman said this week that Kurt Campbell, assistant secretary of State for East Asian and Pacific Affairs, summoned Mongolia's ambassador to discuss his case. Other U.S. efforts related to the "detention and health" of Mongolia's former president are being led by the embassy in Ulan Bator, she said.
In his statement, Mr. Elbegdorj highlighted international and domestic "debates" over the case but said: "I cannot, and would not, advocate for a particular position on the recent arrest and allegations of corruption brought by the Independent Anti-Corruption Commission against former president Enkhbayar."
Mr. Elbegdorj said judicial reforms, including protecting human rights and rooting out corruption, have been hallmarks of his three-year-old administration. He said the former president—a longtime political rival—should be treated humanely in a transparent process where "equal treatment before law is the single most important requirement."
Peter Goldsmith, a former U.K. attorney general, who is representing the former president's family, called for more action, pointing to the president's ability to appoint antigraft officers and prosecutors. "I don't find it convincing that the government could not act if they wanted to," he said.
The corruption probe, which has included questioning of politicians and executives, reflect political jockeying ahead of next month's parliamentary election, according to several analysts who term Mongolia's democracy as both vibrant and immature. At stake in the vote is power over Mongolia's rich resources of copper, gold, coal and rare earths, including the deals to exploit them and the policies for distributing the proceeds.
Investors say they are nervous about a foreign investment law that is winding its way through parliament and threatens to cap foreign ownership in mine projects by requiring 51% local control. The 220-member Business Council of Mongolia said in a statement this week the legislation would "undermine Mongolia's development trajectory, which has been on a steep upward path."
In research notes from Ulan Bator, Frontier Securities has described the turmoil as negative for investors. Still, on Friday, the firm highlighted news that foreign investment tied to the sector sent Mongolia's economy soaring 16.7% in the first quarter of this year from the same period in 2011.
Freedom of N.Enkhbayar, the man who has wagered Mongolia
May 12 (news.mn) Patriotism is easily talked about by pretty much everyone. Most of those who say "on behalf of the people" when talking about patriotism are the ones that hold high offices in the government. But they often fail to answer when asked "what is patriotism and what is its price?" There is not enough paper and ink to start explaining patriotism in such a way that it starts with not littering or taking care of one's own life with dignity.
Once the only person who had the right to speak "on behalf of the people", N.Enkhbayar is now going on hunger strike, thus dismaying the public and wearing off the government's strength. Even though the purpose of his strike is clear, his wife madame O.Tsolmon talked all evening on television about how her husband said that "since I'm going on hunger strike for the sake of the people, I will fight to the finish".
As a matter of fact, the public didn't ask him to go on strike, not even a little boy or a tired old woman. This strike is not going on in order to buy a car for an old woman carrying a load of grocery trying to catch the bus, it is not going on to give a sick person the medicine that he needs desperately, and it's not going on to give food to hunger ridden poor souls either. His hunger strike comes from a completely selfish motive to protect himself from the consequence of his misdeeds.
Better that the due authority force treats him as they know how. It's a lie that N.Enkhbayar's rights are being violated. They cannot even use force or force treat him. In other words, his rights are being respected highly. Moreover, he is being kept in the state hospital in the room where the highest state officials stay.
This is too much of a right to be exercised by him. It would suffice for him to have the same rights as the rest of the 2 million 699,000 people of this country. When N.Enkhbayar was "king", D.Enkhbat went on a hunger strike for being stolen from France but they forced stopped his strike. By this, I don't mean to say I want despotism, but I want to remind us our equal rights before the law. At first, many people including me, felt sorry for N.Enkhbayar. However, once he started spreading negative information about Mongolia throughout the international community, I not only began to doubt him but my sorry also went away with the wind. Day and night N.Enkhbayar and his followers have been spreading out false rumors that not only the country is holding a political captive, but it is also violating human rights.
By providing such false information to all the international organizations there are, the world is starting to doubt the country. Had he went to see the investigators once called for investigation, he wouldn't have been taken forcibly. Where is his patriotism? For N.Enkhbayar, only not being sent to jail, being free and regaining high position in the government is important. Apparently, the dignity of Mongolia doesn't mean anything to him.
Recently, three young men have died, fighting fire in the countryside and two are still fighting for their lives. their death is a heroic one for they were doing their job, trying to provide for their family. This death is priceless because it resembles patriotism and serving for once's country. They are the ones who fought for their country. Since Mongolia became a democratic country, everyone has worked hard and as a result, we have brought plausable reputation for our country in the international community. We don't hold political or freedom fighters as captive in this country. Violation of human rights rarely occurs here. As such, the most priceless thing we were able to establish in the past 22 years is the name "democratic Mongolia."
Within the Freedom House world map, Mongolia is the only country marked in green in the region. This shows that Mongolia is the only democratic country in this part of the world. N.Enkhbayar is wagering this name in order to escape from his due punishment. In other words, he deems to bet the democratic name of Mongolia in order to take a hold of freedom. Now his followers have led ten people to go on a hunger strike. Who did they do this for? I think they actually did that for their family, because they are getting paid. Or else there is no such an idiot who would starve oneself for N.Enkhbayar.
There's no freedom more valuable than one's country. However, apparently N.Enkhbayar's freedom is more valuable than Mongolia. Had he valued his freedom, he wouldn't have taken so much from the state. At least he should have respected the law and testified and admitted his wrongdoings. He is wagering the country's reputation because he knows how valuable it is. Were an ordinary citizen to have gone on a strike, no one would have cared as much. Is it such a big deal because he was the third president of this country? No, everyone must be equal before the law, it's our right as well as duty to have it as such. There's no country less valuable than one person's name or freedom. The people are not the leverage which a charlatan can take advantage of.
President: PROTECTING DUE PROCESS, HUMAN RIGHTS AND THE RULE OF LAW IN MONGOLIA
(The President of Mongolia Tsakhia ElBEGDORJ: Summary of the discussions with the leadership of law enforcement agencies)
May 10 (www.President.mn) I address you today regarding the recent debates circulating in Mongolia and the international media over the state of human rights, individual liberties, and the rule of law in our country. Questions have arisen following the legal issues surrounding former president Nambariin Enkhbayar.
First, I must make it very clear that as the President of Mongolia, a constitutionally mandated non-partisan office, I cannot, and would not, advocate for a particular position on the recent arrest and allegations of corruption brought by the Independent Anti-Corruption Commission against former president Enkhbayar. Nor do I have any intention to influence the future decisions of Mongolia's law enforcement and judicial bodies involved in this case. However, at the same time, I cannot remain silent as many citizens, organizations and political parties have asked for my opinion on this issue.
Therefore, I want to take this moment to talk generally not only regarding the Enkhbayar case, but also on the many other cases on which I have received letters from family members, attorneys and NGOs pertaining to the judicial process in Mongolia. From the moment I took the oath of office, I have sought to improve our judicial system so that it can more effectively protect human rights and individual liberties while combatting corruption and crime. I and my appointed team have not spent a day in office without devoting our thoughts and energies to these important issues.
Let me briefly recount for you the reforms that are part of this process. As you know, in July 2011, I launched the comprehensive judicial reform process and submitted a package of legislation to Parliament carefully designed to improve our nation's judicial system. Elements of this package that have been approved by Parliament in March include: The Law on Courts, the Law on Legal Status of Judges, and the Law on the Legal Status of Lawyers, The Law on Court Administration, the Law on the Legal Status of Citizens' Representative in Court Trial, and the Law on Mediation are currently being considered by the Parliament.
We are also working on draft laws to improve the criminal, civil and administrative procedural codes as well as the Law on Police . With my initiative, the Law on Prevention of Conflicts of Interest in Public Service—a critical component of my efforts at ensuring the integrity of civil servants entered into effect on May 1, 2012. As you can see, we have made dramatic gains in the legal reform process and the fight against corruption. However, there is much more that can be done to improve our judiciary and the legal process.
You well know that human rights have always been one of my top priorities. It was politically challenging for me to announce a moratorium on the death penalty two years ago. When I made my statement on this issue on January 14, 2010, I faced months of opposition and criticism from the media and some in Parliament and I still see formidable opposition to the idea.
Nevertheless, I firmly believed Mongolia needed to reassess how it approached the question of human dignity and I am pleased to see that public opinion is changing in the right and humane direction--as I had every confidence it would.
The Second Optional Protocol to the International Covenant on Civil and Political Rights, aiming at the abolition of the death penalty came into effect in Mongolia on March 13, 2012 and will enter into force on June 13, 2012. That ninety percent of Mongolia's parliamentarians voted in favor of the protocol is striking testament that our nation has become a country where human dignity and individual rights are valued and that we will never again witness the political killings that terrorized Mongolia during communist times.
Today, in relation to recent occurrences and headlines, the public is rising up and demanding an end to corruption that has been eating away at our system for years. In the course of all the above-mentioned challenges, We stand united in the conviction that the foundation for the rule of law in Mongolia is the protection of human rights as written in our Constitution. A violation of one Mongolian's human rights must be viewed as a violation against the human rights of all Mongolians. The rule of law dictates that the judicial process is applied evenly and equally to all Mongolians.
Law enforcement organizations must be prepared to publically explain their laws and procedures so that citizens understand what law enforcement agencies are doing, why and how it is being done and whether proposed actions are improving human rights and the integrity of the legal process. To that end, I call upon the General Prosecutor's Office, the Ministry of Justice, the Anticorruption Agency, and the General Court decision enforcement office to disclose as much information as is consistent with the law on cases of public interest via their official statements, websites and other public notices. It is essential for the public to know the procedures of law enforcement agencies because only through such open scrutiny can Mongolia continue to improve the rule of law and the public can be confident of, and trust, the decisions of law enforcement officials. We must strive for total transparency within out law enforcement and legal branches.
There remain some old-style attitudes in our government agencies that they should not disclose information that might make them look bad or wrong. I call on the leadership of the judicial sector to disavow that old style and to learn and adopt new, more open, ways of communication with the public as soon as possible. Reporting in plain language, explaining what you are doing and how you are doing it while adhering to the law is an essential mission for public offices, especially for law enforcement agencies.
However a particular case is adjudicated, law enforcement in Mongolia can learn valuable lessons and adopt higher standards only when it operates in the light of public scrutiny. This strengthens our democracy because it makes these government offices accountable to the people.
I am grateful that citizens, free media and even foreign free media are devoting time and resources to covering stories about the rule of law in our country. We need a strong national debate on how to best combat corruption while ensuring the protection of individual legal and human rights. We need strong ethical standards for political office holders.
I commend the concerns and involvement of foreign dignitaries and lawyers for protecting human rights in Mongolia. Mongolia welcomes international human rights watchdogs, NGOs, reporters and concerned lawyers to help improve our law enforcement and the protection of human rights and liberties. Mongolia will also welcome experiences of controlling corruption during periods of steep economic gains and resource exploitation.
With regards to former president Enkhbayar's case: I call upon law enforcement to provide him humane treatment equal to what any other Mongolian citizen in similar circumstance would be entitled to. I call upon law enforcement to respect his dignity and his rights to not give testimony against himself and his family, and to protect his lawful security and health. I also call for his legal case to be handled in an open and transparent manner and he be provided all the rights due under the constitution. I am sure this will happen, but let's make sure the process is open so we can see, verify, and be confident in any decision that is handed down from the court. Equal treatment before law is the single most important requirement in any legal case. There must be no "more equal" treatment than "equal" treatment.
Mongolia is a new democracy and we should all be tremendously proud of the gains we have made in just over 20 years. We have many dedicated civil servants and I am proud of their efforts each day to improve our daily lives and make our government function . However, we must ensure that civil servants remain exactly that: servants of the people. We can do this through transparency, strong ethics laws, and most of all a rigorous enforcement structure to hold anyone found to be abusing their position accountable to the people in a court of law. A court where rights are respected and the law applied equally and fairly.
Our future depends on how we protect our precious freedoms, individual rights, and our democratic process. The rule of law, and the defense of human rights is central to our ability to grow, prosper, and remain free.
A report "Media of Mongolia-Today" issues
May 10 (news.mn) The Press Institute of Mongolia issued 13rd report of Mongolian media.
As said in report by January 2012, Mongolia has 469 media organizations-126 of them newspaper, 72 radio stations, 149 TV stations and 30 web sites.
A copies of sold newspaper increased to 2,9 million. Sell of daily newspapers increased by 26 percent compared to previous year and 73 percent of total newspaper sell belong to daily newspaper.
According to the report number of TV stations increasing year to year. Number of TV stations broadcasting nationwide reached to 16.
Number of people working in media organizations also increased. As estimated in report 4415 people works in media organizations and 47 percent of them above age 30.
Mongolia faces challenges to achieve inclusive growth amid mining boom
ULAN BATOR, May 9 (Xinhua) -- Mongolia's economic growth, driven by mining, significantly accelerated last year to nearly 17 percent and would be 15 to 20 percent in 2012 and 2013, an economist said Wednesday.
"The giant Oyu tolgoi copper-gold mine will start commercial production next year, that will give another boost to economic growth and export revenue," Jan Hansen, a senior economist of the Asian Development Bank (ADB) Mongolia Resident Mission said in an interview with Xinhua.
Although economic growth prospects were promising, Mongolia still faced many challenges, led by a high dependence on natural resources, he said.
Hansen said natural resource dependence often led to growing income disparities, as resource extraction creates relatively few jobs.
He said Mongolia, which historically had a comparatively balanced income distribution, had in recent years experienced an increasing inequality which could undermine social cohesion and stability.
He suggested Mongolia should further improve its economic and political institutions to ensure transparent, accountable and equitable management of natural resource revenue and further diversify the economy by supporting investment in non-resource sectors.
Another major threat to the economy was the country's over-expansionary fiscal policy, Hansen said.
Government spending had significantly increased in the past two years, which had led to high inflation. The inflation rate reached 15.3 percent in March and the ADB expected it would remain in double digits in 2012 and 2013, he said.
Rising inflation indicated there was an increasing risk of the economy overheating, which would have negative impacts on the poor and increase vulnerability of the economy, Hansen said.
He highlighted the role of the Central Bank of Mongolia in combating the high inflation and cooling the overheating economy, but he recommended the central bank take even more proactive measures by increasing the policy rate and reserve ratio.
Hansen also warned the high average growth of the Mongolian economy in the past few years had insufficiently translated into poverty reduction. GDP had grown on average by nearly 8 percent since 2003, but some 29 percent of the population still lived in poverty in 2011.
He said fiscal resources generated from mining revenue had to be spent much more efficiently to solve the problem. The universal cash payments from the government's Human Development Fund, which will be phased out in near future, were not effectively protecting the poor, but increasing demand pressure and fueling price rises. The universal cash payments also did not create many jobs, which was particularly hitting the poor and further increasing the vulnerability of the economy to external shocks, in particular fluctuations in commodity prices.
Hansen said the government's fiscal policy had to strike a balance between ensuring macroeconomic balance and supporting sustainable and inclusive growth through funding long-term investments and effective social protection programs.
ADB: RAPID ECONOMIC DEVELOPMENT CALLS FOR CHANGE
May 9 (Jon Hansen, Senior Country Economist, Asian Development Bank Mongolia Resident Mission via UB Post) --
Mongolia's economy is developing rapidly, but fiscal policy must balance the need for macroeconomic stability and support for long-term economic growth that benefits all Mongolians.
The Mongolian economy grew by 17.3% in 2011 and is expected to continue to grow at double digit rates in the next years, mainly driven by infrastructure spending related to mining activity. The first phase of investment in the Oyu Tolgoi copper and gold mine is projected to total $5 billion and the mine is nearing commercial production. Exports, driven by increases in coal production attributable to demand from the People's Republic of China, rose by 64.4% in 2011. Imports, however, more than doubled, largely related to the equipment and machinery needs of the mining sector.
Substantial public investment in infrastructure is needed in Mongolia to develop the natural resource sector, diversify the economy and create jobs and increase access for all people to essential services as health and education, housing and water and sanitation. However, very high growth rates in public spending, in particular the universal cash payments from the Human Development Fund, have created inflationary pressures which particularly hurt poor people through higher food prices. Inflation increased to 15.3% in March 2012 and is expected to remain in double digits in the near future.
The need for public expenditure policies that support long-term growth which benefits all people without undermining fiscal soundness and increasing inflation requires re-direction of government expenditure towards long-term productive investments. The recent introduction of a poverty benefit under the amendments to the Social Welfare Law, replacing the universal cash transfers, represents a major step toward a fiscally-sustainable social protection system that effectively supports the poorest. The government has also strengthened the legislation for fiscal policy through the enactment of the Fiscal Stability Law (FSL) in June 2010 and the Integrated Budget Law (IBL) in early 2012. Implementation and enforcement of both laws will ensure that mining revenues are better managed in the future and make an important contribution to insulating the economy from commodity price fluctuations. It is vital that both laws will be implemented in spirit and practice.
Worldwide, countries have shown that, paradoxically, an abundance of natural resources can hinder long-term development by creating economic instability, discourage investment in education and infrastructure and undermine economic and political institutions. Resource dependence often leads to growing income disparities, as resource extraction creates relatively few jobs and a small proportion of the population may secure most of the income. Mongolia, in recent years has experienced a trend towards increasing inequality which eventually could undermine social cohesion and stability. The mining sector in Mongolia creates 90% of exports, 30% of government revenue and 20% of Gross Domestic Product (GDP), but only x% of employment. For Mongolia, two important challenges in the future will be to (i) further improve its economic and political institutions so as to ensure transparent, accountable and equitable management of natural resource revenue and (ii) encourage diversification of the economy and create jobs by supporting investment in non-resource sectors.
The Asian Development Bank (ADB) is a multilateral development bank owned by 67 members, 48 from the region and 19 from other parts of the world. ADB has been Mongolia's largest source of development finance for two decades and provided financial and technical assistance for projects in agriculture, education, energy, finance health, industry, telecommunications, transport, and urban development.
China's senior military official in Mongolia to expand cooperation
ULAN BATOR, May 9 (Xinhua) -- A senior Chinese military official described the China-Mongolia border as a bridge of friendship at the start of a visit here Wednesday night to promote ties between the two militaries.
Vice Chairman of China's Central Military Commission Xu Caihou said on arrival at Chinggis Khaan International Airport China and Mongolia were friendly neighbors and the shared 4,710-km borderline was a bridge to promote friendly exchanges of the two peoples and two militaries.
In recent years, the two sides had enjoyed quite fruitful cooperation and exchanges in all fields. The bilateral strategic partnership established in 2011 marked a new stage of development for bilateral ties, Xu said, adding the two countries' military ties had been growing continuously.
Xu said developing good-neighborly and friendly cooperation with Mongolia was a steady strategic policy of the Chinese government. And it was in the fundamental interests of both the Chinese and the Mongolians to step up cooperation, promote economic and social development, as well as maintain regional peace and stability.
He said the purpose of his visit was to consolidate and further develop the traditional China-Mongolia friendship and deepen friendly cooperation of the two armed forces.
The vice chairman said he would exchange views with his Mongolian counterparts on issues of common concern, and further promote mutual understanding, strengthen mutual trust and expand consensus so as to further boost military-to-military cooperation.
Xu will meet leaders of the Mongolian government and its armed forces to discuss issues concerning international and regional security.
The visit was at the invitation of Mongolian Defense Minister Jadambaa Enkhbayar.
Mongolian PM vows to push forward Mongolia-China partnership - Xinhua, May 11
11 political parties and two coalition will compete in election
May 11 (news.mn) As informed the General Election Committee 11 political parties and two coalition submitted required documents for registration for parliamentary election, scheduled on June 28.
The name of political parties:
1. Party of Development Program
2. Party of Implementation of Freedom
3.United party of Tradition of Mongolia
5. Democratic party
6. Civil Will-Green party
7.Mongolian People's party
8.Mongolian Social Democratic party
9. United party of Patriot
10. Motherland Party
11. Civil Movement party
The name of coalition:
1. A Coalition of Mongolian People's Revolutianery party and Mongolian National Democratic party- "Justice"
2. A Coalition of Republican party and Labour party of whole Mongolia-"Coalition of third power"
The GEC will hand a letter of ratification on Monday at State Palace.
Steering Development for 90 years: Problems Faced by the mining Industry
May 10 (UB Post) The year 2012 marks the 90th anniversary of Mongolia's mining sector, and it was celebrated, as we have reported previously, with the Mining Mongolia 90 International Open conference, held on May 9th and 10th at the Central Palace of Culture of the Mongolian Trade Union. The Mineral Resources Authority and Ministry of Mineral Resources and Energy organized it.
The aim of the conference was to introduce and present current mining companies and organizations to the public, and support their cooperation with each other. The mining companies, in addition to Mongolian administrative bodies, will discuss the difficulties they face and talk about ways to overcome them. Another important objective of the open forum is to connect investors with mining projects while also assisting growing businesses with new investors. The latest mining technology, equipment and innovations will also be discussed between the representatives of the mining industry.
D. Zorigt, Minister of Mineral Resources and Energy, led the opening ceremony. His speech generally focused on the high impact of Mongolia's mining sector within both society and the economy and its inevitable growth in the future.
Zorigt noted that the mining sector carried a significant weight of the Mongolian economy since its establishment with the Nalaikh coal mine in 1922.
"The past three years can be considered as a new era for our mining sector. Our mining sector today makes up over 20% of our GDP and around 90% of our export products. This statistical number may simply be a number and may not represent much but this allowed Mongolia to become one of the fastest growing economies in the world. By doing this, Mongolia has set its path to become a highly developed nation in the next four to eight years."
He noted that the mining sector of Mongolia is the largest sector in terms of Mongolian employees.
"There are over 50,000 Mongolians working for and getting paid from the mining sector. I think it is right for me to congratulate all the men and women who gathered here today, who are the representatives of the mining sector of Mongolia. It is also correct to state that 30% of Mongolia's state budget consists of mineral resource profits, and majority of the rest of the budget are made up from the profits from mining-related service and provision companies."
Afterward, he congratulated the delegates on the 90th anniversary of the mining sector. Minister D. Zorigt said, "Of course, aside from mentioning the great accomplishments of our mining sector through the past 90 years, we will discuss the future and current problems of the sector." He said that mining operations, legislature or even any small matter concerning mining or mining related works is involved with politics and he emphasized on the need to improve the legislation surrounding the Mongolian mining sector.
In the end, he said that any problems faced by the mining sector are caused by us ourselves; citing the abandonment of mines and irresponsible treatment of nature. He said that the mining sector should not be looked upon as bad because of a few individuals taking things into their own hands.
He also mentioned a number of things about the new Securities Law. "Foreign Investment laws were proposed two years ago, and now are being discussed. Both the new Securities and the Foreign Investment laws are not about limiting and fending off foreigners. It is a way to know who is investing in us, and with what intentions."
The individual conferences included various discussions regarding the mining sector, from human resources, environment safety and infrastructure.
Afterwards, two representatives read out messages of greetings from both the President and the Speaker of the Parliament.
The world trend is that due to increased construction all over the world, the demand for copper will increase evermore, for example in 2020 the demand for copper both in China and India will increase by 50% compared to today.
In addition to copper demands, copper supply is seen as a problem in the near future. As of today, Peru and Chili are leading copper exporters, and it is estimated that by 2020 Mongolia will lead the world's copper exports.
With inflation, increased mineral production, and the 20-30% increase in MNT value will increase the cost of producing minerals. This means that, according to a representative from the Ministry of Finance, substantial action must be taken to reduce costs of extracting, processing and transporting mineral resources.
The initial actions that should be taken right now are to build railways, roads and electric lines or power plants near mining sites.
FORUM ON MONGOLIA'S DEVELOPMENT RUNS IN SWEDEN
Ulaanbaatar, Mongolia, May 9 /MONTSAME/ The 8th forum "For the development of Mongolia" ran last weekend in Stockholm city, Sweden.
Under a topic "Chance to introduce high-tech and European standards", this year's forum has been co-organized by Mongolia's Embassies in the UK and Sweden, the National Development and Innovation Committee (NDIC), the Europe-Mongolia Society, the National Union of Mongolians in Britain and other organizations.
Reports have been given at the event by B.Enkhmandakh, the Ambassador of Mongolia to Sweden; B.Altangerel, the Ambassador to the UK; B.Ganbat, a policy department head of the NDIC; and Dr. Ch.Ganzorig, a deputy rector of Mongolia's State University (MSU). Some 20 scientific reports on developing high-tech, bio and nano-technologies, scientific and technological infrastructure have been sounded by Mongolian students and scholars who study in Britain, Sweden, the Netherlands, Germany, Hungary, Portugal, Belgium and France.
During the forum, the Polar Star Order was bestowed upon B.Tserenbat, a leader of the National Union of Mongolians in Britain in accordance with the President's decree. He is one of the initiators of this forum and of "Electronic Station" Association.
S.Batbold PM conveyed greeting to the forum. In addition, a consultative meeting of the Europe-Mongolia Society has run to discuss ways of developing close collaboration between Europe-baseed Mongolian unions.
The next year's forum will take place in London.
Three National Guardsmen instructing mine safety in Mongolia
CHARLESTON, W.Va., May 10 (The Charleston Gazette) -- Mine safety is the top priority of three West Virginia Army National Guardsmen who are in Mongolia to share their knowledge of mining with coal mining officials in the Mongolian government.
First Lt. Joshua Poling of Morgantown, 1st Lt. John Sinsel of Grafton and Staff Sgt. Tommy Wolford of South Williamson, Ky., are full-time coal miners, as well as soldiers in the West Virginia Army National Guard.
The three are taking part in an Alaska National Guard partnership program with Mongolia that has been in effect since 2003, in which National Guard personnel in various fields of expertise are sent to Mongolia for brief periods of time to train government and civilian personnel.
"This opportunity came up through conversations with our Mongolian partners," said Maj. Wayne Don, Alaska National Guard partnership officer. "Since Alaska doesn't deal with coal mining that often, I started communication with the West Virginia National Guard to request support from them."
The West Virginia Army National Guard followed through by recommending Poling, Sinsel and Wolford, who are coal miners in civilian life, to help give instruction on coal mine safety.
"We are here to help the Mongolians learn more on the importance of safety in coal mining," Wolford said. "We are hoping to help bring down the number of fatalities associated with coal mining in Mongolia."
In 2011, Mongolia had more than 100 mining fatalities, and began reaching out to other countries for help in determining the root causes of the problem.
Among other topics, Wolford said, "We are teaching the importance of ventilation in keeping the mines safe."
Wolford, a cavalry scout, said he never dreamed he would be teaching mine safety in Mongolia through his military job.
"But that's the great thing about being in the National Guard," he said. "It can take you to places you've never dreamed of going to."
Mongolians to produce trolleybus
May 11 (news.mn) A new factory producing a trolleybus launched yesterday. The Ulaanbaatar city administration and the Ministry of Environment and Tourism jointly invested to the new factory.
The factory will be branch of Mongolian Tsakhilgaan Teever (Mongolian Electric Transport) company. The factory planning to produce 80-100 trolleybus a year. According to the officials by the Naadam, the Mongolian National Holiday, on July 11 city passengers to go by new trolleybus.
The Law on Education Approved
May 11 (news.mn) The Law on Education approved by the parliament on Wednesday, on May 9. According to the MP D.Oyunkhorol (MPP) new law aimed to do reform in evaluation of teachers work and to give social protection for workers of education sector.
By the new law school and kindergarten teachers and directors who worked 25 years will receive a bonus equal to 24 month salary. If school and kindergarten teachers and directors who worked 10 years in countryside will receive a bonus equal to 36 month salary.
In total 17 thousand people working in education sector.
By the new law education system adopted by 5-4-3 version. Elementary education will be 5 years, basic education will be 9 years and secondary education will be 12 years.
Also the law considered an education is one of the priority sector of Mongolia said D.Oyunkhorol.
MONGOLIA TO LAUNCH ITS FIRST SATELLITE
Ulaanbaatar, Mongolia, May 11 /MONTSAME/ The very first satellite of Mongolia named "Mongolsat" will be launched in the first quarter of the next year, the Academy of Sciences reported on Thursday at its news conference.
According to the report given by J.Gurragchaa, the first astronaut of Mongolia, the "Mongolsat" will launch from the U.S. territory.
J.Gurragchaa is working as the general consultant to the project, the academician B.Chadraa is in charge of general consultancy on the technology matters. The Institute of Physics and Technology at the AC and the Nuclear Research Center at the Mongolia's State University are co-working on the project as well. The project has been initiated and carried out by B.Togoldor, Ts.Nandinbaatar and E.Batbayar.
The project team will purchase internationally accepted parts, assemblies and equipment from expert manufactures and distributors and will assemble the satellite and experimental devices in Mongolia. The associated software for the satellite will be programmed and loaded in Mongolia, too, and then the satellite will be ready to be sent to the USA.
9 Lessons on Power and Leadership from Genghis Khan
May 7 (Forbes) On one end of the leadership spectrum, there is Machiavelli–conniving, ambitious and ruthless. On the other there is Cyrus the Great–humble, generous and loyal. Along this spectrum of great leaders and motivators, used so often in business books, speeches and anecdotes, there is one unmentionable: Genghis Khan. A man so evil, unwashed and bloodthirsty that he is impossible to learn from.
His great mission was simple yet audacious: "Unite the whole world in one empire." But, as he said, "[Since the] calling is high, the obligations incumbent on me are also heavy." Using the unparalleled biography Genghis Khan: and Making of the Modern World by Jack Weatherford as our guide, let us see how Khan–in his own words–managed to accomplish this great work and what he felt those obligations were.
Kimihiro Maeta: "Japanese companies are not interested in investing in the new airport"
May 10 (UB Post) Our newspaper was recently informed that the ground-breaking ceremony for the new international airport of Ulaanbaatar was held Monday at the Khushigt Valley in the Tuv Province, 54km from Ulaanbaatar. The soft loan agreement of 28.8 JPY to build the new international airport was made between the Mongolian and Japanese government in 2008.
Kimihiro Maeta, the official delegation of joint partnership for the project to build the new international airport spoke with Udriin Sonin Newspaper regarding the details of the project.
-How is the construction work going to build the new international airport in Khushigt Valley? Quite a long time has passed since the project come into effect.
-The work on the draft diagram on the new airport started in August 2009 and was finished in December of 2011. As soon as the creation of diagram was finished, a pre-audition was carried out among executive companies. If we don't conduct a pre-audition, it is risky to choose a company that won't reach our demands. Only one company attended the pre-audition and then the tender was announced straight away. At that particular moment, no company attended the tender. In other words, there wasn't any competition and the pre-audition was canceled. In July, seven companies delivered the tender materials. Since the construction work of the new airport is pretty large, the tender was announced in two separate packages in order to catch the interest of participating companies. The tender was announced in two parts: the first package included bridge and road construction and second package covered building construction. The first package tender was announced last November. The second package tender announced in December has been ongoing. The companies who bought the material are developing the tender materials. At the moment nothing has been built in Khushigt Valley.
-When will the construction work for the new airport start? When it will go into use according to the project plan?
-We are preparing the tender materials. The financial rating should be made after opening the tender. If we work in accordance with that plan, the construction work will begin by the spring of 2013 and will be finished by 2017.
-Can you please give detailed information about the building and its capacity?
-Around 900,000 people pass Chinggis Khaan International Airport annually. The new airport in Khushigt Valley is estimated to be able to service 1100 passengers hourly, and will have a facility capable of servicing 1.3 to 1.5 million people annually, have parking for 825 cars, and a 3600m long runway. It will be built in the Tuv Province, 54km from Ulaanbaatar and is capable of receiving twenty planes at the same time.
-How big is new airport building compared with other international airports in Asia?
-It is not that big to compared with many Asian airports. For instance, the newly built airport in Thailand serves to 100 million visitors annually. Thirty to fifty million passengers go through the airport in Narita, Japan annually. A runway of 3600m is enough long. So it is hard to compare with large Asian international airports. Mongolia's population is not high. However, foreign and domestic flights will operate at a loss if we build a giant airport as Mongolia's market is still small. The territory of the current Chinggis Khaan International Airport is twenty-one thousand square meters while the territory of the new airport in Khushigt Valley will be 31 thousand square meters.
-Will Mongolian companies take part in the new airport creation? How many job vacancies will be created once the airport construction finishes?
-It is obvious that all the forking force in the constriction will be brought from Japan. We will hire Mongolian workers, but the total amount of workers will depend on the companies who are attending the tender. I can't say the exact number of total workers as we haven't heard the opinions of the companies who are taking part in the airport construction. Some people with required professions will be invited from Japan, China and the South Korea. It is hard to tell how many job vacancies will be created once the airport goes into use. I think all the staff in the current Chinggis Khaan Airport will move to the new international airport. It will be difficult for airport workers to go to work early in the morning and come home late night, as the airport is located quite far from the city. A satellite city will be created along with the new international airport in Khushigt Valley.
-What happened to building a highway from city to the new airport?
-When the agreement was discussed between two countries, it was negotiated that Mongolian government will be in charge of building the highway from Ulaanbaatar to Khushigt Valley. According to the information we received, the draft work of highway is finished. We have information that tender is announced to choose the executive company. At the moment Khushigt Valley is empty valley, nothing is built in there. Mongolian government is in charge of providing the power to built airport. So it means power will be traced from Nalaikh district or Ulaanbaatar. Moreover, Mongolian part is in charge of communication and internet network, too.
-Are there any difficulties in terms of the project?
-Well the trouble is, only few Japanese executive companies have expressed interest in taking part in the new airport construction work.
-Why have Japanese companies expressed so little interest?
-Such a large scale project hasn't been previously developed in Mongolia. Furthermore, Japanese investors think it is risky to take part in this project considering that vested Japanese companies haven't operated in Mongolia. On the other hand, Japanese companies should have assistant executives. I think they worry that Mongolian construction companies are not experienced enough yet to choose as an assistant executive. Also, the Mongolian winter lasts a long time. Construction work stops during winter. Although construction stops during winter, executive companies should keep the working force and should maintain the equipments. Japanese companies estimate that certain amount of money will be spent on the above. I think because of those reasons, they are not interested in taking part in this project. Alternatively, on March 15, 2011 Japan suffered from the natural disaster. At the moment that disaster affected area is being reconstructed and Japan is mobilizing working forces on that area. That's why there are only a few companies to attend the new airport construction project.
-What should be done to attract the interest of Japanese companies?
-At the moment seven companies have bought the bid that was advertised. The construction of the new airport will wait until it attracts more companies. We organized a project introduction meeting in Tokyo two times in order to attract the interest of Japanese companies to attend the project. In other words, we begged them to attend the tender.
-How much is the amount of investment?
-The whole project is funded by the soft loan of 28.8 billion JPY from the Japanese government. The soft loan agreement was signed between Japanese and Mongolian government in 2008. The aid and soft loan amount granted from Japan to Mongolia was relatively low, from 1 to 3 billion JPY. At this time, Japan was going to make an investment in large construction.
De Facto: Throwing out the baby with the bath water
Updates on FDI in Mongolia
May 9 (De Facto) It was announced in early April that a Chinese state-owned company called "Chalco" had reached a deal to buy 57% of shares of "SouthGobi Sands", a coal mining company in Mongolia, from "Ivanhoe Mines". In accordance with the announcement, I wrote my article "Who cares about the election? Mongolia is at stake" stating the urgent need to pass a law within a month that would restrict foreign state-owned companies from owning more than 20% shares of a Mongolian company directly or indirectly.
The press and many ordinary citizens, including people from very remote rural areas, who sent letters and made requests to the parliament urging them to pass the new law, supported this timely demand. However, members of our parliament took this too far and came up with a brand new draft legislation that would restrict and regulate too much foreign investment. Their proposal have now become national and international headlines.
The reason their law proposal produced so much surprise is that the draft legislation used the word "strategic importance" to restrict foreign, state-owned or private, ownership to 49% or less, which curtails foreign investment and reduces economic growth.
The need to support foreign investment
Countries attract foreign investment in order to use it as a tool to boost its development. Doing so will benefit the host country in three ways. Aware of risks, foreign investors bring in the money needed for development, which allows the host country to avoid borrowing from abroad. On top of that, foreign investment will also bring management and technology know-how. Then, the host country is getting industrialized, its foreign trade expands and its national companies enter the international market after becoming able to successfully satisfy the needs of their domestic market.
A country's strategy is aimed at improving the living standards of people by creating competitive advantage in one of its economic sectors, producing a brand product or service in the world market and building comparative advantage in the other sectors. However, this strategy is carried out by the private sector, not state-owned companies. Living conditions will improve only when people work hard and government makes sure a person who works hard can earns more and live better.
Mongolia is currently the fastest-growing economy in the world because we have successfully attracted foreign investment. Investors are providing Mongolia with the needed financial source, management and technology know how, and some Mongolian companies have already begun entering the world market. However, foreign investors only come into profitable sectors and their objectives obviously do not include loving the host country, its people or becoming a charity. It is an art to maintaining harmony between two different interests of the host country and investors. Mongolia is like a child who has just started learning this art.
The need to restrict foreign investment
The reason foreign investment is almost solely in our mining and minerals sector is that the only product Mongolia can sell in the world market for now are raw materials that belong to these sectors. But then, Mongolia's laws regarding these sectors are vague and unclear, the government is incapable of ensuring proper implementation of law, those who must demand implementation of law and monitor it are not performing their duty and the government along with its officials who are supposed to be the judges have become players themselves. The blame is on us, not on the investors.
The biggest challenge of Mongolia's public governance today is to make a realistic assessment on our hundred years of experience of foreign investment and to treat this matter with great care and judgment.
Aware of the fact that foreign state-owned companies cause a great deal of difficulties in doing business, we have not been able to impose restrictions on their operations. The difference between a state-owned company and a private company is that state-owned companies can get limitless budget support and it can destroy the roots of fair competition, which leads to a price distortion. When the government gets too involved in business and starts polluting the environment, it cannot control itself or obey the laws. That is why Mongolia privatized most of its state properties.
As of today, for example, if we fail to restrict foreign state-owned companies' involvement, our coal industry will be controlled by a foreign state-owned company just like our oil industry is and the whole value chain from mining to end user will be in the their hands.
Instead of that, let us fine those companies, foreign and domestic, that are not complying with laws until they do so. Only the state has the right to do that.
Instead of putting restrictions on the most important thing, members of our parliament have come up with a draft legislation called "Law on Regulation of Foreign Investment in Business Entities of Strategic Importance" only a few days before the election and they are turning this important issue into an election campaign trying to look patriotic. We requested them to restrict foreign state-owned companies' involvement urgently, but we did not want them to do what they have not done for 5 years and pass a law in haste with no calculation or careful study. Laws passed without any calculation have always brought a loss, not success. It only took a weekend for the parliament to pass the law that imposes a special tax on gold mining. As a result, Mongolia's gold industry entirely disappeared, most of the gold was secretly taken out across border and added to the shadow economy and one tenth of our populations became "gold ninjas". In a democratic country, there is always time to receive every stakeholder's opinion before presenting draft legislation.
However, members of our parliament have proposed to restrict foreign investment to 49% or less in sectors of strategic importance (minerals, power supply, road, transportation, finance), in certain activities of "strategic importance" (production and distribution of industrial explosive materials, operations related to maintaining flight security, television and radio broadcasting, activities for guaranteeing safety, quality and supply of food, oil related activities, power supply activities, road and transportation activities, activities of using water sources of urban settlements, activities which may cause substantial negative impact both directly and indirectly on eco system, natural resources other than minerals, and biodiversity of Mongolia and the given local area, real estate market activities, extraction of radioactive natural resources, preparation and processing of livestock skins, hides, wool, and cashmere, use, production, distribution of chemical toxic substances, use of recombinant technology and substances that cause infectious diseases in biotechnology production, communications services throughout the territory of Mongolia, activities which may directly or indirectly affect the market and price of key export items of mining, including gold, copper, coal, iron ore, and rare earth elements and in business entities of strategic importance (business entities with market value of over MNT 100 billion).
These regulations can be imposed only when we are competitive in all of these sectors and industries and have the assets and technology know how to do so. However, it is not the case and we cannot do that yet and considering today's situation where most of our educated and skilled people are trying to get into politics, it will not be a wise step to take. Furthermore, those who proposed the law should know that most of our sectors will develop rapidly only with foreign investment.
A law must be smart, not brave
The proposed law calls for regulations on foreign investment under the cloak of strategic importance. The main purpose of this law is not to ensure national security, but to regulate foreign investment. This kind of law on FDI (Foreign Direct Investment) could have smart and obvious purposes such as:
1. Create fair competition between business entities interested in investing in Mongolia.
2. Introduce the world best standards to products and services of each sector and ensure competitiveness on the international markets.
3. Protect the national security of Mongolia and its strategic interests.
However, it should clarify more who will have the right to approve foreign investments, who must monitor them and what approach will be used for approval.
For example, if an approval is not given for the reason that there is a foreign government and its budget behind every foreign state-owned company, it will be accepted obviously.
Australia has the Foreign Investment Review Board (FIRB). This board has the right to examine any foreign investments coming into Australia and to make recommendations based on their assessment. This organization discusses investment proposals case by case and makes recommendations, which neither closes foreign investment flow nor harms Australia's interests. However, it is stated clearly that what will be restricted, how it will be done and what sectors it should be done in.
It states that foreign investment in the Australian banking sector needs to be consistent with the Banking Act (1959) and the Financial Sector (Shareholdings) Act (1998). Foreign ownership of Australian international airlines is limited to 49% and the same goes for airports, but one airline cannot own more than 5%. Furthermore, foreign ownership in the communication sector will not exceed 35% and an individual's ownership will be less than 5%. If a main asset's value is more than $50 million and it has foreign investment and is going to be sold, it must be informed and approved. Also, it has more detailed articles for the defense sector. A special permission is only given after careful examination and assessment when associated with activities regarding uranium and plutonium, and operation of nuclear facilities.
In conclusion, foreign investment is one of the biggest factors of our country's development and if we do not treat this matter with a smart mind, far sight and great care, we are very close to "throwing out the baby with the bath water", which will bring great harm and loss of reputation. If our members of parliament pass a law with only one sentence that will restrict only foreign state-owned companies, they will do a great deed for Mongolia. If they fail to do so, you do not need to elect them again.
Who controls your internet freedom?
May 10 (UB Post) Over the last decade with the rapid development of information communication technology Mongolian citizens have been able to connect to world events and information. The last five years especially catalysed the domestic use of this vast medium; the internet. At present there are 14 internet service providers in the country – this is plenty if not more than we need for the current population of only 2.7 million. More than half of the country's population live in the capital and a quarter more live in the other two cities Darakhan and Erdenet, where they have easy access to the internet.
New technologies and innovations such as the internet, Wi-Fi, 3G develop extremely fast because of the low population – taking less time for everyone to transition to the new methods and technologies. The quality of the services is rather poor at present – with consistent disconnections from network failures, but because of the competition created by the large number of service providers, this is improving gradually.
Internet freedom is not a talked about subject in Mongolian society. With more pressing matters such as the elections, mining industries and government grants, the subject of the internet and its freedom has taken a back seat. There is no evidence of internet censorship in Mongolia so far, but the cyber freedom of Mongolia is heavily dependent on foreign bodies who want to censor and control the internet. For example, the control measures such as the bills that were sent to the USA congress, PIPA and SOPA, at the beginning of this year.
SOPA stands for the Stop Online Piracy Act. It came from the US Senate. PIPA is short for PROTECTIP, which is itself short for Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property. SOPA and PIPA wanted to raise the cost of copyright compliance to the point where people simply get out of the business of offering it as a capability to amateurs.
The way they propose to do this was to identify sites that are substantially infringing on copyright - although how those sites are identified was never fully specified in the bills - and then they wanted to remove them from the domain name system. The domain name system is a piece of software that converts human-readable names, like Google.com, into the kinds of addresses machines are able to interpret: 188.8.131.52.
The problem with this model of censorship; of identifying a site and then trying to remove it from the domain name system, is that it won't work. The reason it won't work is that you can still type 184.108.40.206 into the browser or you can make it a clickable link and it will still send you to the intended website. So the policing aspect around the problem becomes the real threat of the Act.
If we dig further we discover that the SOPA and PIPA, as legislation, were drafted largely by media companies that were founded in the 20th century. The 20th century was a great time to be a media company, because media and entertainment were scarce. If you were making a TV show, it didn't have to be better than all the other TV shows ever made; it only had to be better than the two other shows that were on at the same time - which is a very low threshold of competitive difficulty.
The technology improved over time and at the end of the 20th century, that scarcity started to eroded – not just digital but analogue technology as well. Cassette tapes and video cassette recorders created new opportunities for people to behave in ways that threatened the media business. People not only liked to consume, but every time one of these new tools came along, it turned out that we also liked to produce and to share. This made entertainment abundant and the media companies had to face heavy competition from the general public who were previously just consumers. And so the media industries demanded that the US Congress do something.
By the early 90s, Congress passed the Audio Home Recording Act of 1992 that made it illegal for people to make lots of high quality copies of videos and mix tapes to sell. But that wasn't all the media industries wanted; they wanted to stop copying all together.
In 1998 the Digital Millennium Copyright Act which basically removed the technology to copy from the DVD players, game players, televisions and computers you bought so that you were unable to copy digital content produced by the media industry. The DMCA was more of a technological measure to stop copying rather than a legal measure.
The DMCA was not entirely successful because as it turns out, the internet proved to be a far more popular tool and far more powerful tool than anyone expected. The previous method of sharing such as cassettes and tapes were nothing compared to the Internet. Billions of people share written files, images, audio and video via the Internet. Some of the things we share are things we've made, some are things we found and some are things we've made out of what we've found. And all of it is a competition and a threat to the media industries.
PIPA and SOPA were the next stage of their endeavour to stop individuals from copying– they took the concept, innocent until proven guilty, and reversed it to, guilty until proven innocent. In other words you can't share until you show us that you're not sharing something we don't like. Suddenly, the burden of proof for legal versus illegal falls affirmatively on us and on the services that might be offering us any new capabilities. And if it costs even a penny to police one user, then this will cripple a service with a hundred million users.
The problem was that the Mongolian Internet users were largely unaware of the fact that their online freedom was at a peril and even if they knew about this, they had no direct power to influence the outcome. Though some might argue that these bills are outside the jurisdiction or influence of the Mongolian people and government, it is also plausible to say that the bill if passed would have affected the internet service as a whole, along with the Mongolian people's freedom. Though the bills were not passed because of the outbreak and protests from the online communities such as Facebook, Wikipedia and Youtube, the fact that the US congress is able to pass bills that concern the cyber freedom of other nations is troubling.
NSO: Social and economic situation of Mongolia (As of the first 4 months of 2012)
May 10 (NSO) --
I. Social indicators
In the first 4 months of 2012, 23895 mothers delivered 24014 children (live births) increased by 2361 mothers or 11.0 percent, and 2333 children or 10.8 percent, compared to same period of the previous year.
In the first 4 months of 2012, at national level infant mortality decreased by 13 or 3.3 percent to 385, and child mortality aged 1-5 decreased by 12 or 13.5 percent to 77.
The number of unemployed reached 54.0 thousand at the end of April 2012, reflecting an increase of 12.3 thous.persons or 29.4 percent compared to same period of the previous year.
In the first 4 months of 2012, 528.5 thous.persons were registered as insurer, of which 334.8 thousand or 63.4 percent were those from the establishments, and 193.7 thousand or 36.6 percent from the government budgetary organization. Compared to same period of the previous year, the number of insurers increased by 62.5 thousand or 13.4 percent, of which the increased by 56.7 thousand or 20.4 percent from establishments, and increased by 5.8 thousand or 3.1 percent from government budgetary organization.
In the first 4 months of 2012, social welfare pensions and benefits allocated to 53.8 thous.persons, showing a decrease of 1.7 thous.persons or 3.1 percent, total amount of the allocated fund increased by 2.5 mln.tog or 22.6 percent compared to same period of the previous year...
Of 245.0 bln.tog distributed by the Human Development Fund to 2.3 mln.people (with double counting) in the first 4 months of 2012, 2.2 mln.people or 94.2 percent were those receiving the cash benefit of 21.0 thous.tog, 2.6 thous.people or 0.1 percent those receiving 70.0 thous.tog, and 131.5 thous.people or 5.7 percent those receiving 10.0 thous.tog.
In the first 4 months of 2012, the number of infectious disease cases was 15317 persons, increase by 1689 cases or 12.4 percent compared to same period of the previous year. The increase in the number of infectious disease cases was mainly due to the increases of 2616 persons or 6.0 times in mumps, 193 persons or 14.0 percent in syphilis, 46 persons or 2.7 percent in gonococcal infection and 8 persons or 0.6 percent in trichomoniasis, although there were decreases of 383 persons or 25.6 percent in varicella, 793 persons or 19.3 percent in viral hepatitis, 61 persons or 13.1 percent in shigellosis and 83 persons or 5.3 percent in tuberculosis.
At national level, 7672 crimes were registered in the first 4 months of 2012, reflecting an increase of 691 crimes or 9.9 percent compared to same period of the previous year. The increase in the number of crimes was mainly due to the increases in crime against the right of ownership (567), crime against the rules of safety of traffic and use of motor vehicles (97), crime against human life and health (or physical well-being) (48), crimes against environmental protection rules (46) compared to same period of the previous year.
In the first 4 months of 2012, occurred crimes caused 2708 injuries and 394 deaths. The number of injuries up by 77 persons or 2.9 percent and the number of deaths down by 43 persons or 9.8 percent compared to same period of the previous year.
II. Macroeconomic indicators
GDP by production approach reached 2277.4 bln.tog at current price, 980.2 bln.tog at 2005 constant price in the first quarter of 2012, up by 30.2 percent at current price and 16.7 percent at constant price compared to the same period of the previous year.
The national consumer price index in April 2012, increased by 0.5 percent compared to the previous month, 8.2 percent compared to the beginning of the year, and 16.0 percent compared to same period of the previous year. The increase in national index compared to the previous month was mainly due to 0.7 percent increase in food and non-alcoholic beverages and 2.0 percent in clothing, footwear and cloth.
According to the report of the Bank of Mongolia, money supply (broad money or M2) at the end of April 2012, reached to 6362.9 bln.tog, increased by of 258.1 bln.tog or 4.2 percent compared to the previous month, and increased by 1012.4 bln.tog or 18.9 percent compared to same period of the previous year.
At the end of April 2012, currency issued in circulation reached 708.9 bln.tog, increased by 60.4 bln.tog or 9.3 percent compared to the previous month, and increased by 80.3 bln.tog or 12.8 percent compared to same period of the previous year.
Loans outstanding at the end of April 2012, amounted to 5936.0 bln.tog, up by 154.5 bln.tog or 2.7 percent compared to the previous month, and up by 1962.1 bln.tog or 49.4 percent compared to same period of the previous year.
Principals in arrears at the end of April 2012 reached 71.2 bln.tog, increased by 9.8 bln.tog or 16.0 percent compared to the previous month, decreased by 11.0 bln.tog or 13.4 percent compared to same period of the previous year.
At the end of April 2012, the non-performing loans over the bank system reached 316.6 bln.tog, showing decreases of 3.6 bln.tog or 1.1 percent compared to the previous month, of 64.9 bln.tog or 17.0 percent compared to same period of the previous year.
In April 2012, there were 21 trading days and 14.4 mln.shares valued at 4.1 bln.tog were traded.
In the first 4 months of 2012, total equilibrated revenue and grants of the General Government Budget amounted to 1465.8 bln.tog and total expenditure and net lending amounted to 1513.8 bln.tog, representing deficit of 48.0 bln.tog in the equilibrated balance of General Government Budget.
Current revenue of the General Government Budget amounted to 1460.8 bln.tog and current expenditure reached 1231.9 bln.tog. Thus, the budget equilibrated current balance was in surplus of 229.0 bln.tog.
Compared to same period of the previous year, tax revenue increased by 229.7 bln.tog or 21.5 percent. The increase was mainly due to the increases of 102.0 bln.tog or 27.5 percent in taxes on goods and services, 67.8 bln.tog or 55.9 percent in social security contribution, 35.1 bln.tog or 12.8 percent in income tax, 14.6 bln.tog or 6.9 percent in other taxes and 8.8 bln.tog or 9.9 percent in taxes on foreign trade.
Compared to same period of the previous year, non-tax revenue increased by 35.4 bln.tog or 28.3 percent. The increase was mainly due to the increases of 28.0 bln.tog or 48.8 percent in revenues from budget entities, 8.7 bln.tog or 89.4 percent in revenues from others, 3.7 bln.tog or 32.9 percent in revenues from interest, 3.2 bln.tog or 22.7 percent in revenues from oil petroleum and 1.9 bln.tog or 16.3 percent in navigation fee although there was decreases of 10.3 bln.tog or 50.1 percent in revenues from dividends.
In the first 4 months of 2012, total expenditure and net lending of the General Government Budget increased by 364.3 bln.tog or 31.7 percent to 1513.8 bln.tog compared to same period of the previous year. This was mainly due to increases of 129.9 bln.tog or 2.0 times in capital expenditure, 116.6 bln.tog or 27.7 percent in expenditure of goods and services, 93.1 bln.tog or 16.1 percent in subsidies and transfers, 16.9 bln.tog or 2.8 times in lending minus repayments and 7.7 bln.tog or 46.7 percent in interest payments.
In the first 4 months of 2012, spending of 255.4 bln.tog on capital expenditure increased by 129.9 bln.tog or 2.0 times compared to same period of the previous year. This was mainly due to increases of 125.8 bln.tog or 2.0 times in capital expenditure of domestic sources and 4.1 bln.tog or 2.3 times in foreign financed capital expenditure, compared to same period of the previous year.
In the first 4 months of 2012, Mongolia traded with 118 countries from all over the world and total external trade turnover reached 3373.1 mln.US dollars, of which exports made up 1292.4 mln.US dollars and imports made up 2080.6 mln.US dollars.
Foreign trade balance showed a deficit of 788.2 mln.US dollars in the first 4 months of 2012, reflecting 366.8 mln.US dollars or 87.0 percent increase compared to same period of the previous year. The foreign trade deficit in the first 4 months of 2012 was mainly caused by the fact that the import growth was higher by 20.1 points than the export growth.
Total external trade turnover increased by 626.2 mln.US dollars or 22.8 percent, of which imports up by 496.5 mln.US dollars or 31.3 percent, and exports up by 129.7 mln.US dollars or 11.2 percent, compared to same period of the previous year.
Mineral products, natural or cultured stones, precious metal, jewelry, coins, raw & processed hides, skins, fur & articles, animal origin products, textile articles and auto & air transport vehicles & their spare parts thereof accounted for 98.3 percent of the total export value amount.
III. Economic sector indicators
In the first 4 months of 2012, at national level natural losses of adult animals down by 167.1 thous.heads or 46.2 percent to 194.8 thous.heads compared to same period of the previous year. Out of the losses of adult animals, 9.5 thousand were horses, 18.0 thousand were cows, 0.3 thousand were camels, 76.3 thousand were sheeps and 90.7 thousand were goats.
In the first 4 months of 2012, the total industrial output increased by 61.7 bln.tog or 10.6 percent to 646.1 bln.tog (at 2005 constant prices) compared to same period of the previous year. The increase in the industrial output was mainly due to 0.8-59.8 percent, increases in mining and quarrying products such as copper, with concentrate, molybdenum, with concentrate, coal, zincum concentrate, iron ore and crude oil and 1.8 percent to 5.4 times increases in industrial main products of manufacturing sector such as alcoholic beverage, bakery products, sawn wood, bread, beer, milk, soft drinks, carpet, metal steel, metal foundries, electric wire, plastering mortar, metal sleeper and briquette.
In the first 4 months of 2012, 6643.8 thous.t freight and 1236.5 thous.passengers (double counting) were carried by railway transport. Compared to same period of the previous year, the number of carried freight rose by 1123.9 thous.t or 20.4 percent and the number of carried passengers rose by 81.7 thous.persons or 7.1 percent. Due to the increase in carried freight and passengers, revenue from railway transport increased by 27.2 bln.tog or 25.5 percent to 133.6 bln.tog in the first 4 months of 2012, compared to same period of the previous year.
In the first 4 months of 2012, 1179.9 t freight and 200.7 thous.passengers (double counting) were carried by air transport. Compared to same period of the previous year, the number of carried freight increased by 622.6 t or 2.1 times, the number of carried passengers rose by 62.7 thous.persons or 45.4 percent. Due to the increase in carried freight and passengers, revenue from air transport increased by 10.5 bln.tog or 29.1 percent to 46.6 bln.tog in the first 4 months of 2012, compared to same period of the previous year.
According to the report of the Institute of Meteorology and Hydrology, maximum precipitation was registered in Rashaant soum (43.9 mm) of Khuvsgul aimag in April 2012. In April 2012, Sainshand soum of Dornogovi aimag had the highest air temperature (29.1°C), while Tsetsen-Uul and Tes soums of Zavkhan aimag and Tariat soum of Arkhangai aimag had the lowest air temperature (-21°C). Wind speed reached 34 m/sec in Altai soum of Govi-Altai aimag.
Daily average concentration of nitrogen dioxide exceeded 24 times around the 13th micro district of Ulaanbaatar city, 12 times around the West crossroad, 6 times around Kharkhorin market and 2 times around the 32nd Toirog, daily average concentration of sulphur dioxide exceeded 21 times around the 32nd Toirog, 8 times around the 13th micro district, 5 times around the Offitseruudiin ordon and the 1st micro district respectively and 2 times around the West crossroad and Kharkhorin market respectively, particulate matter less than 10 micrograms exceeded 30 times around the 32nd Toirog, 26 times around Kharkhorin market, 22 times around the West crossroad and 16 times around the 13th micro district, particulate matter less than 2.5 micrograms exceeded 4 times around the West crossroad from the maximum allowable concentration of air quality standard in April 2012.
In the first 4 months of 2012, 1461 disasters and accidents occurred. As a result, 45 people died, 0.9 thous.livestock and domestic animals had lost. By the types of disasters, 1313 fires on possessions, 13 cases of domestic animal madness disease, 10 accidents related to artisanal mining and rock falls and incidences of chemical substance usage respectively, 8 river and lake accidents occurred in the first 4 months of 2012. In the first 4 months of 2012, estimated damage caused by the disasters and accidents amounted to 3.9 bln.tog.
Compared to same period of previous year, disaster and accidents occurred up by 220, people died down by 27.
"Mogi" Munkhdul Badral
Senior Client Manager / Executive Director
CPS International LLC
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 email@example.com or +976-99996779.
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.