CPSI NewsWire brings you market updates on Mongolia, compiled by CPS International, a Mongolian marketing arm of CPS Securities, a Perth, Western Australia based stockbroking and corporate advisory firm, specialising in capital raising for mining and junior stocks.
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Voyager: Non Renounceable Entitlement Issue & CEO Appointment
June 15, Voyager Resources Limited (ASX:VOR) --
Voyager Resources Limited (“Company”) is pleased to announce an underwritten non renounceable entitlement issue of up to 446,373,854 options at an issue price of 1 cent each (“Offer”) to raise approximately $4.464 million before costs.
This Offer to shareholders will be on the basis of one (1) option for every three (3) shares held in the Company at the record date. The options will have an exercise price of $0.03 expiring on 31/12/2014.
The Offer will be fully underwritten by CPS Securities (subject to normal commercial terms) and will be made pursuant to a prospectus to be lodged at ASIC in the near future (“Prospectus”).
The placement will allow all shareholders the opportunity to maintain exposure to the significant upside presented by Voyager’s Copper and Gold projects in Mongolia. Mongolia remains open for business and supportive of foreign investment and the Companies management team have a highly successful track record of exploring and operating in country.
Funds raised under the entitlement issue will primarily be used to focus on additional drilling programmes and the application of a mining license at the Company’s KM Project in Mongolia (as per Table 1 below). Additional expenditure will also be allocated towards the Company’s Daltiin Ovor and Khongor Projects.
The Company is now nearing completion of a study aimed at reviewing the extensive drilling, geology and geophysical database generated over the last 12 months. This includes over 50,000 metres of drilling which has highlighted some of the most promising drilling results in Mongolia since the discovery of the Giant Oyu Tolgoi Copper Deposit. Completion of the current entitlement issue will allow the Company to continue its active exploration programmes at the KM Project, but with a more focussed and careful approach.
Table 1. Use of Funds raised pursuant to Offer.
A$M | |
KM Drilling and Geophysical Programmes | 3.000 |
KM Mining License Application | 0.250 |
Daltiin Ovor and Khongor Exploration | 0.400 |
Expenses of the Offer | 0.270 |
Working capital | 0.544 |
Total | 4.464 |
In line with the Companies refocussing of its exploration efforts the Company has appointed the current GM Marketing Mr Joe Burke to the newly created position of Chief Executive Officer effective immediately.
Mr Burke has over 22 years experience in business operations, management and project development within the Asia-Pacific region.
Amongst his previous roles Mr Burke worked for Hunnu Coal and was instrumental in the $490M takeover of that company last year by Banpu Plc.
In a time of weak global markets and falling share prices, Voyager remains in a position of strength with an enviable land position in Mongolia, a highly experienced management team and a focused strategy for strong growth. I will be personally participating in the entitlement issue and I would encourage all shareholders to do likewise.
Prophecy Coal drives Chandgana process forward, 600 MW plant to go a long way in addressing Mongolian power deficit
June 14 (Proactive Investors) Prophecy Coal Corp. (TSE:PCY) forecasts aggressive growth ahead as the company plans to bring its 600 megawatt (MW) Chandgana power project in central Mongolia online by the first quarter of 2016, helping to relieve a major ongoing and growing power deficit in the country.
The project, for which the company has already officially submitted the power purchase agreement (PPA) to the federal government, would be the first thermal coal power plant in the country in over 20 years.
According to a company statement, the official submission followed "many months of work" with a designated working group of more than 20 government members.
The next step will be to reach an agreement on tariff, followed by execution of the PPA. The company is seeking an off-take deal, under which the government agrees to buy power from the plant at a specified rate during that time, subject to adjustments for inflation-related and certain other cost increases.
Greg Hall, a director of Prophecy Coal , says there are already three "Soviet-era" coal power plants within Mongolia, but all are "heavily polluting", and suffer from frequent disruptions due to an over-taxed power grid.
"The power deficit is becoming much, much worse," says Hall, "and the Chandgana power plant will go a long way to addressing this."
The large power plant, which will be equipped with "the latest technology" in terms of clean coal energy, is expected to be close to what one would find in a modern North American natural gas power plant, Hall says.
"The plant will not only address the power shortage, but also the terrible pollution problem."
Prophecy is actively driving the process forward, and has recently signed a co-operation agreement with the Energy Authority (EA) of Mongolia, another step toward getting the plant up and running in the next four years. The EA is the agency that implements governmental policy in the power and energy sector of Mongolia.
The co-operation agreement covers the basic rights and obligations of Prophecy as the seller and the National Electricity Transmission Grid Company of Mongolia (NETGCO) as the purchaser of energy.
The EA confirmed the need to purchase the net electric output of the plant to satisfy the electricity energy demands of the country’s central and eastern regions.
As such, the company said that the plant will supply electricity to the central and eastern energy systems in Mongolia, with an expected 100 MW net electric output starting from the first quarter of 2016, up to 200 MW from the third quarter of 2016, 300 MW from the first quarter of 2017, and 400 MW from the third quarter of 2017.
At the start-up date in 2016, Hall says the plant will only be able to meet about two thirds of the country's deficit, leaving the government to seek additional power sources.
For example, the power needs of the Oyu Tolgoi mine in Mongolia owned by Rio Tinto (NYSE:RIO) (LON:RIO) and Ivanhoe Mines (TSE:IVN) (NYSE:IVN) will require the companies to purchase electricity from China for the first five years of production beginning in 2013.
Prophecy plans on increasing output from its Chandgana plant from 2017 to 2020 by adding 3,600 MW of capacity, selling excess power to Chinese markets and to industrial users, who typically pay a higher rate than governments. The initial life of the plant is estimated to be around 30 years.
The Chandgana coal property consists of three licenses: Chandgana Tal, which has a measured resource of 141 million tonnes and includes two licenses, and Khavtgai Uul – which contains one license and is located in the southwestern end of the basin – and has a measured resource of 509 million tonnes and indicated resource of 539 million tonnes.
Coal for the Chandgana plant will be sourced from the company's Chandgana deposit, for which it has obtained all necessary permits and licenses to initiate production.
Regarding financing, Hall says the company has had discussions with a number of the major energy players in the business, as well as with large Asian coal companies. Discussions with other interested parties are also in progress.
"The execution of the final power purchase agreement will make the Chandgana project bankable, and after this, Prophecy will enter into firm discussions with potential joint venture partners," Hall adds.
Though Hall cannot disclose the price it is negotiating with the government for the power purchase agreement, he says it is competitive and in line with current rates in North America.
The EA will monitor the Chandgana power plant construction process to ensure the power plant is constructed within Mongolian regulations and approved technical and design specifications.
Prophecy also holds the licenses and owns the mining equipment of the Ulaan Ovoo coal mine, which lies in the northern part of Mongolia, and is within close proximity to the Russian border.
The property, which is already in production and is supplying coal to two major coal-fired plants in the north, consists of "good quality thermal coal", says Hall, and has an expected mine-life of over 20-years, and an efficient strip ratio of 1.8:1 for the near term.
The Ulaan Ovoo deposit hosts a measured resource of 174 million tonnes and has an indicated resource of 34 million tonnes, of which 20.7 million tonnes are classified as a reserve.
Recently, the company announced that it will sell 22,100 tonnes of thermal coal from its Ulaan Ovoo mine to a local, direct reduced iron (DRI) manufacturing plant.
DRI product is one of the chief raw materials in steel-making as it has higher qualities and advantages compared to scrap irons and pig irons. DRI products typically sell in China at over US$300 a tonne.
Prophecy's "high quality thermal coal" is ideal for DRI, which is also known as sponge iron.
The company said the undisclosed buyer has indicated that it would eventually like to increase the supply from Prophecy to 300,000 tonnes on an annual basis.
Hall says there is market demand to warrant doubling current production at Ulaan Ovoo, which can be done without further capital investment.
Looking ahead, the company continues to make progress on opening the Zheltura border crossing - 17 kilometres from its Ulaan Ovoo mine - to facilitate coal export to Russia, which would increase the total demand for coal from the Ulaan Ovoo mine.
"With the opening of this crossing, Russian trucks could potentially come directly into Mongolia and load at Ulaan Ovoo's mine mouth, eliminating a major component of our costs and allowing us to sell very competitively to Russia," Hall affirms.
When asked about the new foreign investment act in Mongolia that recently passed, Hall says he is not concerned and feels Prophecy is in a position to benefit from the passage of that act.
"The act is similar to Canada's in that it gives the government the chance to review transactions over a certain size and allows the process to be more transparent.
"This isn't a negative - governments should be involved so every party is familiar with the rules."
MIXED RESULTS ON MSE
14 June 2012 (BDSec) - Mongolian Stock Exchange had another big day, with MNT 4.5 billion (US$3.4 million) worth of 1.76 million shares traded as two stocks rose for every decliner. Mongol Savkhi (UYN) was the biggest gainer and closed up 13.7% to MNT 1,700.
Material Impex (MMX), majority owned by Genco Group LLC, jumped 6.1% to close at MNT 1,750. Genco Group, one of the largest conglomerates of Mongolia, owns considerable amount of shares of MSE-listed companies, namely Genco Tour Bureau (JTB), Bayangol Hotel (BNG) and Talkh Chikher (TCK).
Sharyn Gol (SHG) advanced 5.2%, Sor (SOR) increased 4.5% and Genco Tour Bureau added 3.3%. Olloo gave up 6.3% to close at MNT 150, wiping out its 6.7% gain of yesterday. Mongolia Development Resources (MDR) dipped 4.9% to close at MNT 950.
Local News in Brief
• Mongolia Meet Up and Investor Summit 2012 will be held July 25-28, 2012 in Ulaanbaatar, Mongolia. It’s an intensive 3-day Summit being held in the capital of Ulaanbaatar, where you’ll meet members of Mongolia’s Parliament, top business leaders and influencers in the country, tour local real estate developments and be exposed to unique one-of-a-kind opportunities. Source: www.capitalistexploits.at
• The Cabinet meeting which held on Wednesday, on June 13, 2012, decided to decrease water price by 2.5 times in ger district of Ulaanbaatar city. Currently apartment residents pay MNT 0.40 per one liter water, while residents in ger district by MNT 1. By the survey Mongolian resident in ger district use 10 liter water a day. By international standard one person should use 20-25 liter water a day. Source: news.mn
• Mongolian citizens living, working and studying abroad gave their votes for the 11 parties and two coalitions running in the election in person, at the election sub commissions between 7.00 am and 10.00 pm local time on June 10. The voting procedure finished on Monday at 11.00 am Ulaanbaatar time (GMT +8.00). According to preliminary results, 64.8 per cent of total people abroad or 2,777 citizens gave their votes. In accordance with an ordinance on regulation for the people abroad in which a diplomatic mission of Mongolia is located and voting procedures, 39 election sub commissions with 188 employees organized the election abroad. A total of 4,320 people sent their requests from which requests of 44 people had to be denied in connection with disqualification of his/her documents. Thus, 4,276 citizens were officially registered to take part in the voting. Source: Montsame
XacBank Nominated for 2012 FT Sustainable Banking Awards
June 13 (FT) --
Sustainable Bank
Africa-Middle East
Bank of Palestine
BMCE Bank, Morocco
Nedbank, South Africa
Americas
Banco de Galicia y Buenos Aires, Argentina
Itaú Unibanco, Brazil
Santander Brasil, Brazil
Asia-Pacific
Sumitomo Mitsui Banking, Japan
XacBank, Mongolia
Yes Bank, India
Europe
Bank Sarasin & Co, Switzerland
The Co-operative Banking Group, UK
Sekerbank, Turkey
.......................................................................
Sustainable Global Bank
Banco Santander, Spain
Bank of America, US
BNP Paribas, France
Citi, US
Crédit Agricole, France
Credit Suisse, Switzerland
Morgan Stanley, US
Standard Chartered, UK
.......................................................................
Sustainable Investor
Bridges Ventures, UK
Dragon Capital Group, Vietnam
Environment Agency, UK
LeapFrog Investments, Australia
SAM, Switzerland
Storebrand, Norway
VantagePoint Capital Partners, US
.......................................................................
Sustainable Investment
CleanStar Mozambique & Bank of America Merrill Lynch, Mozambique-UK
Embraport & Inter-American Development Bank, Brazil-US
Korean Recycling Plant & ZincOx Resources, South Korea-UK
Optima Energía & Acapulco Municipality, Mexico
PerPETual Global & Aloe Private Equity, India-UK
VINTE Viviendas Integrales & IIC & Banamex, Mexico-US
.......................................................................
Technology In Sustainable Finance
Credit Suisse with Opportunity International, Switzerland
Itaú Unibanco, Brazil
Kilimo Salama, Kenya
Sustainability Accounting Standards Board, US
YellowPepper, US
Mongolia may be a model to others
From Mr John P. Finigan.
June 8 (FT) Sir, As the newly anointed “über-optimist” cited by David Pilling in his article “Whoah there: Mongolia is not yet the new Qatar” (May 31) may I first amplify the rationale underpinning the validity of my comparison of the pace and nature of the respective economic development of both countries: an analysis he refutes in somewhat caustic fashion. High quality global journalism requires investment.
As chief executive of Qatar National Bank and concomitantly as adviser to the minister of finance during Qatar’s years of formative development from 1995 onwards and since 2007 as CEO of Golomt Bank, Mongolia’s leading bank, I have enjoyed a unique vantage point at the heart of their common exponential development.
In the past five years, notwithstanding the global financial crisis, Mongolia’s gross domestic product has grown by 128 per cent rising in dollar terms from $4.03bn to $7.88bn, an achievement worthy of some recognition.
Second, in addressing your Asia editor’s pervasive theme of underlying negativity, Mongolia is indeed a young democracy still striving to emerge from relative poverty, which faces many of the development challenges he identifies. These are currently exacerbated by the slowdown in the (perhaps misnamed?) advanced economies. Nonetheless, prior negative experiences elsewhere should be viewed merely as prologue not destiny. In common with all other nations, Mongolia is a far from perfect country, merely an emergent market nation faced with a unique combination of challenge and opportunity.
Mongolia’s political leaders (both in government and on both sides of the political spectrum engaged in this month’s parliamentary elections) remain cognisant of those combined elements of challenge and opportunity. They and others tangentially involved in supporting their endeavours are, for the most part, guided by an unstinting commitment to do their best to achieve material progress as a model of regional development while eliminating poverty, improving welfare and striving to eradicate rent-seeking and corruption.
Our leaders are subliminated neither by the fear against which your writer cautions nor the apparent hubris he propounds from his initial transitory exposure to our nation and its governance.
Should Mongolia successfully achieve the positive social and economic transformation that its citizens merit then, rather than striving for other contemporary national comparatives, future assessments of the country’s progress may perhaps echo Pericles’ encomium to Athens (in somewhat more propitious times, 2,600 years ago) in declaiming: “We shall be as a model to others and a follower of none.”
John P. Finigan, Chief Executive, Golomt Bank of Mongolia, Ulaanbaatar, Mongolia
Inflation at 15.4% Year on Year
Ulaanbaatar, Mongolia, June 12 /MONTSAME/ The national consumer price index in May of this year, increased by 1.0 per cent compared to the previous month, 9.2 per cent against the beginning of the year, and 15.4 per cent against the previous year.
The increase in national index compared to the previous month was mainly due to 1.3 per cent increase in food and non-alcoholic beverages and 2.4 per cent in housing, water, electricity and fuels.
Non-performing loans decreased 20.6% year-on-year
Ulaanbaatar, Mongolia, June 12 /MONTSAME/ According to a report of the Bank of Mongolia, money supply (broad money or M2) at the end of May 2012, reached MNT 6729.6 billion, increasing by of MNT 366.7 billion or 5.8 per cent against the previous month, and increasing by MNT 1300.7 billion or 24.0 per cent against the previous year.
At the end of May 2012, currency issued in circulation reached MNT 782.9 billion, increasing by MNT 74.0 billion or 10.4 per cent against the previous month, and increasing by MNT 158.1 billion or 25.3 per cent compared to same period of the previous year.
Loans outstanding at the end of May, amounted to MNT 6121.2 billion went up by MNT 185.2 billion or 3.1 per cent against the previous month, and went up by MNT 1874.4 billion or 44.1 per cent against the previous year. Principals in arrears at the end of May reached MNT 60.1 billion, decreasing by MNT 11.1 billion or 15.6 per cent against the previous month, decreasing by MNT 15.7 billion or 20.7 per cent against the previous year.
At the end of May, the non-performing loans over the bank system reached MNT 315.7 billion, showing decreases of MNT 0.9 billion or 0.3 per cent against the previous month, of MNT 81.9 billion or 20.6 per cent against the previous year.
In May of this year, 11.3 million shares costing MNT 4.7 billion were traded in 23 trading days.
Budget deficit at 18.2% in first 5 months
Ulaanbaatar, Mongolia, June 12 /MONTSAME/ In the first 5 months of 2012, total equilibrated revenue and grants of the General Government Budget amounted to 1820.0 billion togrog and total expenditure and net lending amounted to 2224.5 billion togrog, representing deficit of 404.5 billion togrog in the equilibrated balance of General Government Budget.
Current revenue of the General Government Budget amounted to 1813.9 billion togrog and current expenditure reached 1782.3 billion togrog. Thus, the budget equilibrated current balance was in surplus of 31.6 billion togrog.
Compared to same period of the previous year, tax revenue increased by 275.8 billion togrog or 20.4 percent. The increase was mainly due to the increases of 111.7 billion togrog or 22.7 percent in taxes on goods and services, 82.0 billion togrog or 49.9 percent in social security contribution, 36.3 billion togrog or 11.8 percent in income tax, 32.8 billion togrog or 12.5 percent in other taxes and 11.2 billion togrog or 9.3 percent in taxes on foreign trade.
Compared to same period of the previous year, non-tax revenue increased by 11.9 billion togrog or 6.8 percent. The increase was mainly due to the increases of 10.5 billion togrog or 73.2 percent in revenues from others, 7.4 billion togrog or 44.5 percent in revenues from oil petroleum, 4.9 billion togrog or 6.4 percent in revenues from budget entities and 4.7 billion togrog or 31.6 percent in revenues from interest although there was decreases of 14.1 billion togrog or 44.2 percent in revenues from dividends and 1.7 billion togrog or 8.9 percent in navigation fee.
In the first 5 months of 2012, total expenditure and net lending of the General Government Budget increased by 742.5 billion togrog or 50.1 percent to 2224.5 billion togrog compared to same period of the previous year. This was mainly due to increases of 325.0 billion togrog or 46.7 percent in subsidies and transfers, 204.6 billion togrog or 2.0 times in capital expenditure, 182.2 billion togrog or 33.6 percent in expenditure of goods and services, 18.0 billion togrog or 95.5 percent in interest payments and 12.7 billion togrog or 49.1 percent in lending minus repayments.
In the first 5 months of 2012, spending of 403.7 billion togrog on capital expenditure increased by 204.6 billion togrog or 2.0 times compared to same period of the previous year. This was mainly due to increases of 194.7 billion togrog or 99.4 percent in capital expenditure of domestic sources and 9.9 billion togrog or 4.0 times in foreign financed capital expenditure, compared to same period of the previous year.
Trade deficit 74.2% higher in 2012 than last year
Ulaanbaatar, Mongolia, June 12 /MONTSAME/ In the first 5 months of 2012, Mongolia traded with 121 countries from all over the world and total external trade turnover reached 4356.1 million US dollars, of which exports made up 1708.1 million US dollars and imports made up 2648.0 million US dollars.
Foreign trade balance showed a deficit of 939.9 million US dollars in the first 5 months of 2012, reflecting 400.4 million US dollars or 74.2 percent increase compared to same period of the previous year. The foreign trade deficit in the first 5 months of 2012 was mainly caused by the fact that the import growth was higher by 16.8 points than the export growth.
Total external trade turnover increased by 660.5 million US dollars or 17.9 percent, of which imports up by 530.4 million US dollars or 25.0 percent, and exports up by 130.1 million US dollars or 8.2 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 98.5 percent of the total export value amount.
Industrial Output Up 9.1%
Ulaanbaatar, Mongolia, 12 /MONTSAME/ In the first 5 months of 2012, the total industrial output increased by 69.9 billion togrog or 9.1 percent to 834.0 billion togrog (at 2005 constant prices) compared to same period of the previous year.
The increase in the industrial output was mainly due to 1.0-68.4 percent, increases in mining and quarrying products such as copper concentrate with 35 percent, molybdenum, with concentrate, coal, zincum concentrate, crude oil and iron ore and 0.9 percent to 5.4 times increases in industrial main products of manufacturing sector such as alcoholic beverage, bakery products, spirit, beer, bread, soft drinks, carpet, milk, juice, metal steel, metal foundries, electric wire, meat, plastering mortar, metal sleeper and briquette.
ABOUT FOREIGN DEBTS OF MONGOLIA
Ulaanbaatar, Mongolia, June 13 /MONTSAME/ The government of Mongolia plans to reduce the external debts to 80 per cent, and the size of loans from foreign countries to 50 per cent in 2012-2014 stage by stage.
It has been reflected in a report of Mongolia's economic, financial and budgetary situations which is issued by the Ministry of Finance. According to this report, the government will reduce an amount of debts by 50 per cent by the year 2014.
In addition, the government intends to develop the market of domestic debts in several phases so as to provide the governmental financial needs with the lowest size of expenditures, and to make up 50 per cent of the financial resources from domestic debt market. These matters are reflected in the middle-term strategic document on debt management for 2012-2014 adopted in this year. This document also reflects ways of realizing the goals and structure of debts.
As of today, the debt crisis pressure of Mongolia was 3-11 per cent between 2008 and 2011, and it was three per cent in the last year. It means that the debt crisis pressure is considerable low.
By end of the previous year, the Mongolia's government used foreign loans of MNT 257.9 billion granted by donor countries and international financial organizations. Then, foreign debts of MNT 76.9 billion has been repaid, and the balance of the government's credit repayment was MNT 2,650.9 billion at the end of 2011.
In 2011, the size of external debts was equal to 28.3 per cent of the Gross Domestic Product by the current price. Thus, Mongolia is considered as a country with a low-risk of foeign debts in frames of the criteria by the International Monetary Fund (IMF) and the World Bank (WB).
Freight increased 18.9%, Railway freight revenue by 23.2% in first 5 months
Ulaanbaatar, Mongolia, June 12 /MONTSAME/ In the first 5 months of 2012, 8336.4 thousand ton freight and 1594.5 thousand passengers (double counting) were carried by railway transport.
Compared to same period of the previous year, the number of carried freight rose by 1327.5 thousand ton or 18.9 percent and the number of carried passengers rose by 115.1 thousand persons or 7.8 percent. Due to the increase in carried freight and passengers, revenue from railway transport increased by 32.5 billion togrog or 23.2 percent to 172.3 billion togrog in the first 5 months of 2012, compared to same period of the previous year.
In the first 5 months of 2012, 1480.4 ton freight and 256.3 thousand passengers (double counting) were carried by air transport. Compared to same period of the previous year, the number of carried freight increased by 780.3 ton or 2.1 times, the number of carried passengers rose by 76.8 thousand persons or 42.8 percent. Due to the increase in carried freight and passengers, revenue from air transport increased by 12.7 billion togrog or 27.5 percent to 59.0 billion togrog in the first 5 months of 2012, compared to same period of the previous year.
NEW 210MW THERMAL SUBSTATION IS TO BE BUILT NEXT TO THE IV THERMAL POWER PLANT, ULAANBAATAR
June 15 (InfoMongolia.com) The foundation laying ceremony for the construction of the new thermal substation with 210 MW capacities next to the IV Thermal Power Plant (TPP) was held on June 14, 2012.
Team of scientists and researchers from the Power Engineering School of the Mongolian University of Science and Technology (MUST) conducted the feasibility study of the substation to be built with the financing from the state budget.
With commissioning of the new substation to operate shoulder to shoulder with the central heating network of Mongolia will be enabled to keep up with the increasing demand on heat supply and the stations will be given with an opportunity to operate efficiently using its full capacity by following sufficient operating mode of heat transmission at any time and any season. Also, pleasant conditions will be created for improving the turbine operations by increasing the utilization degree as with the on stream of the substation maneuvering of the heat transmission by central heating network and the substation will be enabled too.
An initiation to build a substation with a capacity of 210 MW with a steam driven prime mover using its own internal potential recourses was proposed by the IV Thermal Power Plant and was promoted by the Ministry of Mineral Recourses and Energy.
The new substation will be a core stone in connecting the residential districts “Orbit”, “Bayangol”, “MUST” and “Moscow Complex” that are planned to be built in the area named Bayangolyn Am, on the east side of “Nairamdal” International Children’s Camp Road.
The Ministry of Mineral Recourses and Energy called for an open bid earlier this year of 2012, where “Alliance-Tech” LLC has been chosen to be the executor of the construction work of the substation that will be on stream by 2013.
As seen from the surveys done in the last few years, the central heating network was supplying heat measured in relevance with the outside temperature maximum of -27°C. Currently, the IV Thermal Power Plant generates 662 GCal/hour heat. The full capacity of the IV TPP is evaluated at 1185 GCal/hour. In January 2012, the station dealt with its most intense load was 717 GCal/hour in its entire history since it became operational in 1987. Thus, with the new substation, the IV TPP will be enabled to receive extra 280-310 GCal/hour heat generation load.
Foundations of the IV Thermal Power Plant, the state owned company was first laid in 1979. The first unit was put into operation in 1983. Since 1987 it has been operating with a project capacity of 380 MW. As a result of an extension made in 1988-1990, the capacity increased by 160 MW, 2007, 2009 2 x 20 MW and now it has an installed capacity of 580 MW electricity and 1185 GCal/heat generation.
In Mongolia, temperatures fall as low as -40°C in midwinter. The heat and electricity generated by IV Thermal Power Plant in Ulaanbaatar is an important lifeline for the people living there. This is the largest coal fired power plant in Mongolia and it generates 70% of the electricity for Mongolia's central energy system and 65% of the heat energy used by Ulaanbaatar district heating system.
Also, the long awaited the V Thermal Power Plant's construction is to start in 2013. The Government has decided to build the V TPP next to the existing III TPP and the facility will have six furnaces, five turbines, and the capacity to produce 300 MW CHP (combined heat and power) of electricity, and heat at a rate of 1101 GCal/hour. The plan is to finish the first part of the V TPP in 2015 and start the second part and finish by 2020. The plant will have capacity to produce 820 MW of electricity using the latest technology. Two small eco friendly factories will be built near the power station to recycle the waste from the factory.
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"Mogi" Munkhdul Badral
Senior Client Manager / Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
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Suite 1213 · Level 12 · 2 Sukhbaatar Square
Sukhbaatar District 8 · Ulaanbaatar 14200 · Mongolia
CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSLicense Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
Disclosure/Disclaimer
CPS Securities, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions mentioned in correspondence from CPS International.
CPS International advise this email contains general information only and does not include advice. In preparing this communication, CPS International did not take into account the investment objectives, financial situation and particular needs of any person. As with any speculative mining company there are significant risks.
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