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Hunnu Coal, Seeking Funds, Studies Hong Kong Listing Next Year
April 29 (Bloomberg) -- Hunnu Coal Ltd., an Australian company developing coal mines in Mongolia, is studying the sale of shares in Hong Kong next year to fund new operations.
“The plan is to dual-list it on the Hong Kong stock exchange, middle to late-next year,” Chairman Matthew Wood said today in an interview in Bloomberg’s Melbourne bureau. The company sold A$20 million ($19 million) in shares in an initial public offering and began trading in Australia in February.
“When we go to Hong Kong we’ll have numbers very similar to” the market value of SouthGobi, he said, without providing further details. SouthGobi has a market value of HK$18.78 billion ($2.4 billion), compared with Hunnu’s A$140 million.
Posco agrees to aid Mongolian industry
April 30 (JoongAng Daily) Korea’s leading steelmaker said yesterday that it will develop coke and coal gasification facilities in Mongolia.
Posco said it signed a preliminary agreement with the Mongolian government for coke production and coal gasification and to help develop its steel industry. The company said its CEO Chung Joon-yang visited Mongolia from Sunday to Tuesday to discuss the project.
Finance Minister explains proposed graduated royalty rates (as promised + royalties on zinc, molybdenum and coal)
April 29 (news.mn) --
The Finance Ministry studied many types of taxes and then formulated the present draft. There will be a basic five percent royalty fees on every mineral commodity. This will be raised by one percent, up to a maximum of 5%, as commodity prices increase.
For zinc it will be 5 percent for below USD 2,000, 6 percent at USD2,500, 7 percent at USD 3,000, 8 percent at USD 3,500 and so on.
Royalty on molybdenum will be 6 percent when the price per ton is USD40,000, 7 percent when USD45,000, 8 percent when USD50,000, 9 percent when USD55,000, and 10 percent when it crosses USD 55,000.
Coal will be in two groups - raw and processed. In the case of the first, royalty will be 5 percent when the price is USD 25 per ton, six percent when USD35 per ton, 7 percent when USD 45, 8 percent when USD 55, 9 percent when USD65 and 10 percent if the prices exceeds USD65 per ton. As for coked coal, it will be 5 percent for price below
USD100 per ton, 6 percent for USD130, 7 percent for USD160, 8 percent for USD190, 9 percent for USD210 and 10 percent if the price is above USD 210.
Both draft election laws to be discussed in Parliament
April 29 (news.mn) The Standing Committee on Government Organization has decided that both draft election laws will be discussed in Parliament. One of them has been submitted by MPs L.Bold, P.Altangerel and R.Amarjargal, and the other by MPs like D.Lundeejantsan, Ch.Saikhanbileg, Z.Enkhbold, D.Oyunkhorol, D.Arvin, Su.Batbold, E.Bat-Uul, S.Lambaa, D.Odkhuu, D.Odbayar, S.Oyun and J.Sukhbaatar. The two party groups have already favored the idea.
South Gobi Sands to finish work on paved road soon (translation of D. Bat-Erdene's interview, reported on yesterday)
April 29 (news.mn) D.Bat-Erdene, Public Relations Manager at South Gobi Sands LLC, answers questions on the mining sector.
When will your company make paved roads?
Work on paved roads is 50 percent finished and should be over by August. Many accidents happen when transporting coal, sometimes resulting in death also. Such risks will now be less. The road will be 18 meters wide.
Mongolians in Shanghai Expo-2010
April 29 (news.mn) Mongolia is participating in the International Expo of Shanghai which will run from May 1 to October 31. The theme of the Expo is Beautiful City and Good Life and the Mongolian pavilion is called Gobi and City.
On display are paleontological findings in the Mongolian Gobi. There are also Mongolian art works and dresses. The Chinese Government gave USD900,000 to Mongolia to construct its pavilion on a 330-sq-meter area.
April 29 (FT) A low-profile Chinese couple have become the country’s wealthiest people overnight after an initial public offering that also earned Goldman Sachs a near 200-fold profit on the bank’s original $5m investment in the pair’s pharmaceutical company.
Wall Street Faces Capital Shortfalls, Pay Cuts in Banking Bill
April 29 (Bloomberg) -- JPMorgan Chase & Co. and Goldman Sachs Group Inc. are among U.S. investment banks that may be forced to raise an additional $250 billion in capital, cut executive pay and divest some of their most lucrative assets under a bill on the U.S. Senate floor today, analysts say.
- on average 70-80 companies are joining in daily
- the accumulated capital is to be placed in a bank and not spent until shareholders decide so. if wished the million MNT will be refunded in full
- the capital raised is to be used for IPO expenditures and hiring underwriters
- Board Members is to be selected next Wednesday during its general meeting
- legal name is to be "Монгол 999+ Үндэсний нэгдэл" ХК or "Mongol 999+ National Alliance" JSC. (probably there is no + in the name as it is not allowed by regulations)
- the idea for this "alliance" came about 1, 2 years ago but was originally thought to include 10-20 companies
- when asked how will Mongol 999 pay the 2 bln MNT asked by the government as prepayment, the head of the working group replied: it's not exactly 2 bln, it's 0.5-2 bln, and this can be raised by IPO
- when asked how will you compete with the foreign experienced bidders, replied: the alliance includes not only experienced miners but also financial, legal, clothing, ... firms with experience, therefore through knowledge-sharing we can compensate each other's shortcomings. Plus, mongolians are not inexperienced in coal, we have Baganuur, Shivee Ovoo.
Apri 29 (news.gogo.mn) summarized: apart from the 2 drafts previously reported to be introduced, a third one is said to be introduced, which proposes a proportional system where votes are given to parties.
The first draft proposes a single electoral district with votes for a single candidate. the second draft proposes 10 districts, based on population, and votes are both for parties and candidate.
Government hands in draft amendments to 2010 budget to speaker
April 29 (news.gogo.mn) Summarized: PM Batbold handed in draft amendments to 2010 general, social insurance fund, "Human Development Fund" budgets. this is to reflect the change in copper gold prices and shows an increase in both budget revenue and deficit. budget deficit will reach 6.4% which is higher than the agreement with IMF, which is 5%. but the 100 bln MNT government bond to restructure banks will not be included in the expenditure, therefore will not breach the stand-by agreement, the article says.
(details in english will be distributed as it is known)
BREAKING NEWS: Parliament has just approved plans for a copper smelter.
April 28 (source: news.mn ) During Great Khural's morning session, MPs approved plans to build a copper smelter by a vote of 77.4%. No details were given on this article. Details will be promptly distributed as it is known. ... http://politics.news.mn/content/9009.shtml (mongolian)
Amendments to Mineral Law approved by cabinet, set to be introduced to parliament
April 28 (source: news.mn) among these amendments, a new incremental royalty tax ranging from 5% to 10%, increasing on a 1% increment, is included. these increases will depend on the price increase on each commodity. Minister Bayartsogt in a interview gave examples on copper and gold:
Note: OT will be exempt from this change as stated in the Investment Agreement
Mongol-999 has 780 participant companies
April 28 (source: news.mn) Mongol-999, a consortium formed for the purpose of becoming a national operator of TT has 780 companies registered, the article says. On Monday they had 700 companies. Each company will invest a million MNT and become a shareholder. The article also states that the Chamber of Commerce has allegedly given its support to Mongol-999.
April 28 (news.mn) The State Property Committee (SPC) has reconstituted the executive board. The new Directors are: Ch.Gankhuyag, CEO of Tenger Financial Cooperative, B.Bold, CEO of Newcom, Z.Shagdarsuren, General Secretary of the Association of Banks, N.Tsogt, an international lawyer, and three officials from the SPC. D.Boldbaatar of the Mongol Bank and L.Bayaraa from the Ministry of Finance were re-appointed. The SPC wants to get a team of Mongolians who have studied the relevant disciplines abroad to work under the direction of the Board to fulfill the Government directive to develop the country’s capital market.
April 27 (news.mn) The MPRP group of MPs yesterday agreed to discuss in Parliament the draft election law developed by MPs such as L.Bold, according to its head, D.Lundeejantsan. The draft proposes a system of proportional representation.
April 28 (news.mn) The Fraser Institute"s annual survey reveals miners and explorers still believe Mongolia is a nightmare. It is seen as “suffering from endless tinkering with mining laws and regulations, resource-nationalism, creeping expropriation, and non-transparency".
Hopu, Temasek miner taps China Life for $250 mln (reported yesterday)
HONG KONG, April 27 (Reuters) - Iron Mining International, partly owned by private equity firm Hopu and Singapore's state investor Temasek [TEM.UL], has secured a $250 million investment from China Life ahead of its planned Hong Kong IPO.
Iron Mining, which was previously known as Lung Ming Investment Holdings Ltd, owns and operates a Mongolian iron ore mine. The firm has revived plans for a roughly $1 billion IPO, an offering expected to be handled by Credit Suisse (CSGN.VX) and Goldman Sachs (GS.N), four sources with direct knowledge of the offering told Reuters.
... Iron Mining's IPO is scheduled to launch on the Hong Kong Stock Exchange before the end of the year, the sources said. The revived IPO plan comes as iron ore spot prices have soared amid a recovery in steel production.
(Mogi's note: Iron Mining owns 53 percent of Mongolian iron ore mine Eruu Gol. Local partner Dornyn Gobi LLC holds the remaining 47 percent. Previously CIC invested $700mln, Temasek & Hopu $300 mln in Iron Mining International (then Hong Kong Lung Ming Investment Holding.
The National Venture Capital, LLC Teams up with VentureChoice, Inc. to Boost its Investment Activities
Ulaanbaatar, Mongolia (PRWEB) April 26, 2010 -- The National Venture Capital, LLC (NVC) today announced entering into a partnership and joining VentureChoice Investors' Network to broaden its venture investment activities.
Located in capital city Ulaanbaatar, NVC is the pioneer venture capital firm and largest non banking financial institution in Mongolia. NVC provides a unique financing opportunity to regional startups and growth stage companies. ... http://www.prweb.com/releases/2010/04/prweb3911704.htm
Deputy Foreign Minister Alexei Borodavkin Meets with Secretary of Mongolia’s National Security Council Tsgaandari Enhtuvshin
April 28 (Business Financial Newswire) - Mongolia-focused mining firm Lotus Resources has reached a settlement with Habsbur over monies that were contractually due, but not paid, for 7,042,253 shares issued to Habsburg under a subscription agreement.
Canadian Stocks Decline as S&P Cuts Portugal, Greece Ratings
April 27 (Bloomberg) -- Canadian stocks fell for the first time in seven days after energy and financial companies dropped as Standard & Poor’s ratings cuts spurred concern that debt defaults in Europe will slow economic growth.
... Ivanhoe Mines Ltd., which is building a copper and gold mine in Mongolia, sank 6 percent to C$16.73. The Asia country put a freeze on new mining licenses and transfers of existing permits. ... Gold producers helped the S&P/TSX avoid a further dive as investors looked for an alternative to holding currencies. The metal advanced to a two-week high. ... http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aiIbDpNd3Zv0
MCC 2009 net meets forecast, Q1 net up 24 pct
HONG KONG, April 28 (Reuters) - Metallurgical Corp of China (MCC) (1618.HK)(601618.SS), a construction and engineering firm, on Wednesday met analyst forecasts with a 42 percent profit rise for 2009, and said it will look to overseas expansion to help drive revenues this year.
... MCC said it would use part of its IPO proceeds of about $5.12 billion to pay for mining rights in Afghanistan, Argentina and Pakistan, and for iron and steel projects in Australia, India, Vietnam and Mongolia. ... http://uk.reuters.com/article/idUKTOE63Q04Y20100428
S3 Investment Company Announces Monseka Mining Corp. as New Redwood Capital Client
DANVILLE, Calif., Apr 28, 2010 (GlobeNewswire via COMTEX) -- S3Investment Company, Inc. (Other OTC:SIVC) today announced that the newest client of its wholly owned Redwood Capital subsidiary is Monseka Mining Corporation, which was founded to become a world class multi-mineral provider focused on the production of tungsten, tin, molybdenum and bismuth. ... Monseka Mining, which has a successful track record analyzing mines for major mining companies in Mongolia, Australia, Indonesia, Papua New Guinea, and Vietnam, ...
Mongolian chess master beats World No.1 Koneru Humpy
ULAN BATOR, April 28 (Xinhua) -- Mongolia chess player Mongontuul Batkhuyag defeated current world number one Koneru Humpy from India in the second round of a third stage of the Grand Prix of World Chess Federation (FIDE) in Nalchik city, Russia, the MONTSAME said on Wednesday. ... http://news.xinhuanet.com/english2010/sports/2010-04/29/c_13271904.htm
Mongolian companies form Consortium to bid for Tavan Tolgoi
April 27 (MongolianPortfolio) Mongolian companies formed a consortium to bid for Tavan Tolgoi. They have called it Mongol-999 and said any company depositing 1 million tugriks can join in the consortium. The biggest companies to join this consortium is "Max group", Jiguur Grand", and "Tavan Tolgoi Trans".
During the press conference their representatives claimed that PM S.Batbold has expressed his support for the group.
April 27 (MongolianPortfolio) Today stocks of 25 companies worth 56 million tugriks have been traded on MSE and Top-20 Index fell to 10214.5 by 150.6 points.
The five most traded stocks were: Online portal website Olloo.mn worth 11.5 million tugriks (up by 4%), Khukh Gan 10.7 million tugriks (up by 2.78%), cashmere maker Gobi 8.7 million tugriks (down by 3.18%), alcohol and beverages APU 5.8 million tugriks (down by -3.65%), coal miner Tavan Tolgoi 3.6 million tugriks (no change).
Polo's possible offer values Caledon at 129 mln stg
BANGALORE, April 27 (Reuters) - Australian coking coal producer Caledon Resources' (CDN.L) largest shareholder Polo Resources Ltd (POLO.L) made a possible offer for Caledon, which valued the company at about 129 million pounds ($199.3 million), to expand its coal-focused operations. ... http://www.reuters.com/article/idUSSGE63Q08120100427
Mongolia Approves Meritus Acquisition of Gold Property from Troy Resources
Apr 26, 2010 (TheNewswire.ca via COMTEX) -- Vancouver, British Columbia: Meritus Minerals Ltd (Meritus),(TSX- .MER) is pleased to announce that the Mongolian Government has approved the acquisition of Troy Resources Ltd's. (Troy),(TSX- TRY) subsidiary in Mongolia by Meritus as stated on 20/1/2010.
As required by law, the Mongolian Government has: i) Approved the purchase of Troy's shares in Troy Mongolian Alt Resources LLC (TMAR) by Meritus, ii) Approved the name change of TMAR to Meritus MGL LLC
Anti-protectionism conference kicks off in Istanbul
ISTANBUL, April 27 (Xinhua) -- ... Regarding significant changes in competition laws over the past decade, the report noted that all of the listed countries, except Mongolia and Poland, benefited from increased penalties, while 35 of them had changed laws to allow for greater investigative powers and greater leniency. ... http://news.xinhuanet.com/english2010/business/2010-04/28/c_13270072.htm
April 26 (news.mn) Following instructions from the President Elbegdorj to the National Security Council, all activities related to mining licenses were temporarily suspended at 5 pm on April 20. The activities cover issue of mining and exploration licenses, re-issue of forfeited licenses and trading in licenses. The President called the heads of Standing Committees and the Director of the Mineral Department to a meeting earlier on the day to explain his decision. The meeting was attended by Presidential advisers P.Tsagaan, A.Ganbaatar and M.Batchimeg.
The President said he had taken the extreme step after careful consideration. Despite numerous complaints about the way licenses were issued, the situation has not improved. Mineral resources are connected to national security but half of license holders violate laws by not giving the necessary annual information. Corruption and other violations of the law are common.
There are 4,706 active mining licenses, 3,610 of them for exploration and 1,096 for usage. The President has asked the Government to report to the National Security Council on the situation in May. In June, citizens will be given information about this through the Civil Chamber.
The President also urged a change in the Mining license law.
April 26 (news.mn) Minister for Finance S.Bayartsogt presented three draft laws and one draft protocol to the Parliament Speaker on Friday. One relates to the grant of USD79.7 million from Millennium Challenge Foundation, and another to a soft loan for USD43.1 million from the Asian Development Bank to build the Choir-Sainshand-Zamiin Uud road.
Mongolia has a loan agreement with the Kuwait Fund for Economic Development to build Unit-Murun and Unit-Tarialan road. There is another agreement for a Hungarioan soft loan for USD25 million to update the state owned Biocombinat factory.
Garrison Appoints Consep International Ltd. to Provide a Turnkey Gold Plant
TORONTO, ONTARIO--(Marketwire - April 13, 2010) - Garrison International Ltd. (TSX VENTURE: GAU.V) ("Garrison") is pleased to announce that it has appointed Consep International Ltd. ("Consep") to establish a turnkey gold plant at Garrison's Tovshiir gold project in South Eastern Mongolia.
... Test work conducted to date using the Consep gravity - leach system on test ore from the Tovshiir project has produced overall gold recovery of 86%. Garrison's management is optimistic that similar recovery rates will be achieved when full-scale production commences at Tovshiir. Recoveries using the Consep system often reach as high as 95% at other similar operations, and Consep facilities are fully automated. ... Management of Garrison anticipates that the Consep plant should arrive for installation at the Tovshiir site during the 3rd quarter of Garrison's 2010 financial year.
(Garrison International's Market Cap, as of yesterday, is C$6.8mln)
China's Sany Heavy, Yitai Coal plan $1 billion HK IPOs
(Reuters) - China's Sany Heavy Industry Co Ltd and Inner Mongolia Yitai Coal Co announced Hong Kong initial public offerings that could raise more than $1 billion each as mainland firms increasingly tap Hong Kong for funds. ... http://www.reuters.com/article/idUSTRE63P07D20100426
MONGOLIAN STOCK EXCHANGE NEWS
Ulaanbaatar, /MONTSAME/ At the Stock Exchange trade on Monday, a total of 98.1 thousand shares of 15 JSCs were traded costing MNT 65.6 million.
The Index of top-20 was 10365.10 units decreasing 2.37 units against the previous day. Rate of share of the "Mongolian telecommunication" JSC was increased by 6.49%, but share of the "Darkhan nekhii" JSC was decreased by 3.33%.
3 ETFs to Watch This Week: Gold Miners, Solar Energy, Austria
April 26 (Seeking Alpha) ... Why GDX Could Be On The Move: Before the market opens on Wednesday, the largest component of GDX, Barrick Gold, will give its quarterly earnings report. Barrick Gold, with a market capitalization of almost $40 billion, is one of the largest gold miners in the world and is often seen as a bellwether for the industry. Barrick makes up close to 16% of GDX’s holdings. The company is expected to earn sixty cents for the first quarter of 2010 (see What Every Investor Needs To Know About Commodity ETF Investing for a look at how investors use ETFs like GDX to bet on commodity prices). ... http://seekingalpha.com/article/200737-3-etfs-to-watch-this-week-gold-miners-solar-energy-austria?source=yahoo
Italian cashmere company opens subsidiary in Mongolia
April 26 (news.mn) The Italian company Loro Piana, known for some of the world’s finest luxury cashmere, has opened a subsidiary in Ulaanbaatar, both to establish long-term relationships with nomadic herdsmen and to monitor quality control. This has been accompanied by the publication by the company of ‘Baby Cashmere: The Long Journey of Excellence’, a book charting cashmere production in Mongolia, according to a report in The Financial Times.
Elbegdorj temporarily suspends transfer and new issuance of mining licences
April 23 (translation) (www.president.mn) Elbegdorj, as chairman of the National Security Council, announced that he has given directions to relative authorities to temporarily suspend all transfers, new issuance, reissuances of mining licenses until a new law on mining comes in to effect. This announcement was done with consultation with the other two members of the council, the Prime Minister and Speaker. This suspension is to take effect as of April 20, 2010. Reasons for the decision, according the announcement on the President's own website, is that half of exploration licenses holders do not act responsibly, do not submit annual reports, and their only interest is to use them as tools for capitalization. ... (english version will be distributed as soon as it is released)
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 22, 2010) - The Board of Directors of Ivanhoe Mines Ltd. announced today that it has amended the shareholders' rights plan previously adopted on April 5, 2010. The amendments to the plan can be summarized as follows:
the definition of "Acquiring Person" has been revised to enable a person who becomes the beneficial owner of 20% or more of the common shares through a combination of listed provisions to acquire an additional 1% of Ivanhoe's shares without triggering the plan;
the definition of "Beneficial Ownership" has been revised to delete the reference to ownership by way of "Derivative Contracts";
the definition of "Exempt Acquisition" has been revised to cap the exemption for issuances under incentive plans and to modify the provision related to permitted treasury issuances; and
the shareholder approval provision has been revised to clarify that separate shareholder approvals of the plan will exclude both "Acquiring Persons" and "Grandfathered Persons".
April 23 (UB Post) Mongolian government will name three members of Oyu Tolgoi LLC’s Board of Directors soon. D.Sugar, Chairman of the State Property Committee, who refused to disclose the names of the candidates, said they will represent 34 percent stake of the Mongolian government at the major copper-gold project.
Tavan Tolgoi Agreement to be Exhibited to Parliament
April 23 (UB Post) The government, which has taken 100 percent interest of the project through its wholly-owned Erdenes MGL Company, agreed to submit draft investment agreement of Tavan Tolgoi with potential strategic investors to National Security Council headed by the President Ts.Elbegdorj for recommendations. ... Full Article
Mongolia, South Korea to build waste recycle plant in Ulan Bator
ULAN BATOR, Apr. 24, 2010 (Xinhua News Agency) -- Mongolia and the Republic of Korea on Saturday signed a cooperation agreement to build a waste recycling plant in the Mongolian capital city.
The cooperating parties are the Ulan Bator municipal administration and the Korea International Cooperation Agency, according to the city's administrative office.
The waste recycling plant, to be completed in 2011 at a cost of 3.5 million U.S. dollars, will sort out, recycle and burn combustible wastes to generate power. ... Link to Article
Mongolia and China agreed to coordinate when submitting reports to UNESCO about objects of cultural heritage
April 5 (Montsame) Mongolian delegation headed by the minister of education, E. Otgonbayar held discussions with China about the questions of cultural heritage and concluded an agreement. According to the signed document, now, in a case of submitting an application about entering a cultural heritage into the UNESCO list, both sides are expected to discuss it and come to an agreement, using flexibility and showing respect to one another’s spiritual and cultural heritage. ... Link to Article
Protesters reach agreement with MPs’ group, call off hunger strike
April 25 (news.mn) The hunger strike by some protesters was called off on Thursday after a series of talks between leaders of the movement and an MPs’ group set up by Parliament to settle the issue. The protest is being led by the Civil Movement Demanding Fulfillment of Pre-Election Promises, the Independence Alliance, My Mongolian Land Movement, the National Soyombo Movement, the Reform Movement, and the National Khas Movement. The parties signed a memorandum incorporating the terms of agreement reached at the talks. ... One of their leaders, D.Battsogt, said their talks with the group led by MP U.Enkhtuvshin had led to agreement on the following.
Restoration of the child allowance.
The promise to pay every citizen MNT 1.5 million will be kept.
Repealing seven amendments to the State Constitution approved when the MPRP was in power in 2000.
Amending the Mineral Law to make it comply with the Constitution and the Concession law.
Holding a meeting urgently on the Oyutolgoi investment agreement to bring it in line with the 40th and 57th protocols of Parliament.
The working group on the July 1 incidents must report openly to the people. Parliament must order the State General Prosecutor to reveal how exactly the five people were killed.
The sides will jointly monitor the implementation of the agreement.
There will be no hunger strikes, sit-ins or any other form of public protest until the terms of the agreement are fulfilled.
The people will be told of the agreement and its progress through Mongolian National Public Broadcaster.
Parliament ratifies law on asset-backed securities
April 26 (in Mongolian) (Montsame) On Friday session, parliament passed the law and the necessary amendments to other laws regarding asset-backed securities. ... (no details were specified in this article. details will be distributed as it becomes known)
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 23, 2010) - Fortress Minerals Corp. (TSX VENTURE:FST - News; "Fortress" or the "Company") reports that Zebra Holdings and Investments S.a.r.l. ("Zebra"), an insider of the Company, has agreed to provide an unsecured demand loan to Fortress in the amount of $500,000 CAD at an interest rate of prime plus 2% for short term working capital purposes. The principal amount of the loan and all accrued and unpaid interest thereon is payable on demand or, in any event, not later than October 15, 2010. However, Fortress may prepay the principal sum and all accrued and unpaid interest at any time, without penalty. ... Link to Article
Khan Resources' shareholder calls meet on takeover
April 22 (Reuters) - Laramide Resources Ltd (LAM.TO), which holds a 13.2 percent stake in Canadian explorer Khan Resources Inc (KRI.TO), has called for a special meeting with shareholders regarding the introduction of new members to Khan's board. ... Full Article
Khan Resources points out anomalies in Nuclear Energy Agency’s action
The company has issued a statement pointing out several inconsistencies and anomalies in the NEA action. “Despite the fact that the Nuclear Energy Law stipulates that exploration licenses must be re-issued within three months and mining licenses within six to 12 months, the license re-registrations of Khan are still pending. Khan has made repeated requests for an official update as to the status of these applications and its licenses. However, until now, Khan has not yet received any official response from the NEA.”
... "It is entirely unclear and completely nonsensical as to why the State Specialized Inspection Agency would continue to inspect the Dornod licenses and engage in communications and discussions with Khan and its subsidiaries concerning the Dornod licenses with a view to coming to a formal decision at some point in the future, if in fact that licenses were invalidated in October 2009, as the NEA now alleges," Quick said. ... Full Article
Individual miners’ issues to be regulated
April 22 (news.mn) The Government will submit to Parliament three draft amendments seeking to coordinate issues related to extraction work in small and unorganized mines. They pertain to the law on mineral resources, the law on income tax covering persons whose business income is impossible to determine, and the law on land.
SouthGobi is making “very strong” margins at its mines in Mongolia, Molyneux said. Since April 1, the company has been selling unprocessed coal at USD40 a metric ton while the cost of extraction is about USD20 a ton, he said. “So you make USD20 a ton, and that’s pretty good money,” he said. “Our exploration and corporate overhead costs will remain relatively flat as the earnings grow from the mining business.” ... Full Article
Government gives preliminary approval to Tavantolgoi documents
The investment agreement will be between the State-owned Erdenes MGL Company, the chosen investor company /consortium, and the Government of Mongolia. The investors will be foreign companies. The draft investment agreement has 19 chapters, 143 articles and two appendices.
After a company or consortium is finally chosen, it will be asked to submit documents from its side within 2 months.
As of today, Extrata (Australia), a consortium of Peabody Energy (USA) and Shenhua Energy (China), Vale (Brazil), Jindal Steel and Power (India), Sojits (Japan), Marubeni, Itochu (Japan), COPEC (South Korea), Mitsui (Japan), Sumitomo (Japan), Erdos Chinglon Coal /China/, and Russian Railway /Russia/ and others are bidding to jointly exploit the Tavantolgoi coal deposit.
April 22 (news.mn) The National Development and Innovation Committee has developed general policy directives for Mongolia for 2011. The human development index now standing at 0.731 is planned to be raised to 0.758 by next year. Norway tops the index with 0.971. Russia’s present score is 0.817, and China’s 0.773. Mongolia is ranked 115th among 182 countries.
The committee estimates the price of gold per ounce to be above USD1,000, and that of copper per ton to be USD7,200 this year. By 2013, Mongolia will have 8.2 percent economic growth and per capita GDP will exceed USD2,000. Foreign trade will show a surplus.
April 22 (Seeking Alpha) The elevated price of gold has gold miners and ETFs that cover them holding their shares salivating. If gold’s price remains as high as it is now, deals and investments could shift the gold mining landscape for good. ... Full Article
Peabody Beats, Sees Demand Rise
April 22 (Zacks) Peabody Energy (NYSE: BTU - News) reported first-quarter 2010 earnings of 52 cents per share, higher than the Zacks Consensus Estimate of 41 cents and the year-ago profit of 50 cents. The better-than-expected result was due to improved pricing, coupled with higher volumes from the company’s Australian operations. ... Full Article
Protestors in Mongolia officially stops hunger strike
ULAN BATOR, April 22 (Xinhua) -- Demonstrators protesting a variety of government policies said Thursday they have stopped a hunger strike now that their representatives and Parliament have reached agreement. ... Full Article
Mongolian president to visit China
BEIJING, April 22 (Xinhua) -- Mongolian President Tsakhia Elbegdorj will pay a state visit to China from April 28 to May 3 at the invitation of Chinese President Hu Jintao, Foreign Ministry Spokeswoman Jiang Yu announced here Thursday.
Khan Resources' Mongolian issues to not hurt buyout
April 21 (Reuters) - Khan Resources Inc (KRI.TO) said the Mongolian Nuclear Energy Agency's (NEA) move to invalidate the mining license of its units would not affect its buyout, and that it challenged the decision in court, sending its shares up as much as 23 percent. ... Full Article
Khan Files Formal Claim in Mongolian Administrative Court, Requests Prime Minister's Assistance and Provides Update on the CNNC Offer
April 19, 2010 (FinancialWire) -- Gulfside Minerals Ltd., (TSX Venture: GMG) said it has signed final earn-in agreements with two private Mongolian companies to acquire 100% interest in two mining exploration licenses which are located to the north and north east of its Black Hole and Onjuul projects and around 170 km south west of Ulaanbaatar in Mongolia.
According to Gulfside, the two additional licenses add 10,319 hectares acres to the company's holdings, which increases the size from 2,156 ha to 12,475 ha.
ADB Helps Mongolia Prepare for Urban Growth Ahead of Influx in Southeast Gobi
April 21 (The FINANCIAL) -- The Asian Development Bank (ADB) is providing $15 million in grant to help Mongolia improve urban infrastructure and services in the booming mining and border towns in Southeast Gobi.
April 22 (news.mn) Mining at Boroo Gold’s mine at Zuun Kharaa is expected to be over in about six months unless the company is allowed by the Minerals and Energy Ministry to extract gold from sand. The company has succeeded in producing 1.2 tons of gold this way in an experiment using a different technology and estimates a further nine tons can be produced. ... http://english.news.mn/content/7831.shtml