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Close: Mongolia Related ASX Listed Companies, March 10, 2010
Xanadu Mines commences extensive drilling programme at its Galshar coal project in South East Mongolia
March 8. Xanadu Mines Ltd. (ASX:XAM) is pleased to announce that exploration drilling has commenced at its 100% owned Galshar thermal coal Project, 250km South East of Ulaanbaatar. As announced previously, Galshar has a coal exploration target on the area and the aim of the current drilling programme is to enhance and extend that target into a JORC code compliant resource.
Thai Banpu at 2-week high after Australian Hunnu deal
March 9 (Business Recorder) BANGKOK: Shares in Thailand's top coal miner, Banpu Pcl, rose 1.6 percent to a two-week high on Wednesday after it announced a plan to acquire a 12.4 percent stake in Australia's Hunnu Coal Ltd.
Late on Tuesday Banpu said its wholly owned Banpu Minerals (Singapore) Pte Ltd would spend A$45 million ($45.4 million) to buy the stake, which will give Banpu access to coal resources in Mongolia and enhance its long-term outlook.
At 0336 GMT, Banpu shares were up 1 percent at 744 baht after hitting their highest since Feb. 24 at 748 baht. The broad market was 0.5 percent higher.
This is Banpu's second acquisition in Australia after it bought Centennial Coal Co Ltd for $1.9 billion last year as part of a regional expansion drive.
"We believe this is a good move for Banpu, with the coal resources at Hunnu's two mines equivalent to 1.5 percent of Banpu's current resources," Kim Eng Securities said in a note.
Kim Eng said it calculated the acquisition price per tonne at US$3.7, which was less than the US$5.7 per tonne paid for Centennial Coal because Hunnu was still developing projects and had not launched operations.
The top broker rated Banpu a "buy" because it expected strong earnings growth this year.
Banpu, valued at $6.6 billion on the Thai bourse, is looking overseas because its local coal reserves are depleted.
It is already Indonesia's fourth-largest coal miner with five mines there.
Along with Australia and Indonesia, it is also targetting South Africa.
MICC Appoints Managing Director
March 3 (MICC) MICC, Mongolia’s leading investment bank, today announced the appointment of Ean Alexander as Managing Director. Ean’s primary focus will be on establishing and managing MICC’s Fund Management business, with Ean’s other activities including developing MICC’s metals and mining Investment Banking business with Mongolian and foreign clients. Based in Ulaanbaatar, Mr. Alexander will report to Achit-Erdene Darambazar, President of MICC.
"Ean brings to MICC a breadth of experience in mergers and acquisitions, corporate finance, asset management, capital markets and deep understanding of the metals and mining, and oil and gas sectors," said Darambazar, commenting on the appointment. "He has an outstanding track record in these endeavors and I expect our clients to benefit greatly from his expertise. We look forward to his contributions."
Mr. Alexander joins MICC from Macquarie Capital where he was most recently in Natural Resources, Mergers and Acquisitions group. Prior to that Mr. Alexander worked at both Rio Tinto, and InterContinental Hotel Group.
The S&P/ASX All Ordinaries Index represents the 500 largest companies in the Australian equities market. Index constituents are drawn from eligible companies listed on the Australian Stock Exchange. Liquidity is not considered as criteria for inclusion, except for foreign domiciled companies. The index is a component of the Australian indices that could be used as building blocks for portfolio construction. (Source: S&P)
Hunnu, Aspire included in the S&P/ASX All Ordinaries Index
March 4 (S&P) S&P Indices, the leading provider of equity indices in Australia, announced today that the following constituent additions and deletions will take place in the S&P/ASX indices, effective after the close of trading on March 18, 2011.
"SHIVEEKHUREN" PORT TO INCREASE CAPACITY
March 9, Ulaanbaatar, Mongolia, /MONTSAME/ The representatives of Mongolia and Alishaa aimag, Chinese Inner Mongolia, held a joint meeting March 8 and reached some decisions.
The meeting has been participated by the Authority for border protection, specialized inspection, the custom office at "Shiveekhuren" port, and several companies such as “MAK”, “SGS”, “Chinhua -MAK nariin sukhait”.
They have signed a memorandum in order to increase inflow capacity at the port, to refine its coal transport area organization, and to set up custom checkpoint near the mine.
Mongolia Growth Group Ltd. Announces Transformative Partnership (with Mongolia’s UMC Group)
March 9 (via COMTEX News Network) -- Mongolia Growth Group Ltd. (YAK - CNSX) Following extensive research, Mongolia Growth Group Ltd. (MGG or The Company) has decided to enter the Mongolian Property and Casualty Insurance Market. A partnership has been struck with various members of UMC Group to provide consulting services during the business formation process with the intention that certain individuals will stay on as senior management of the future insurance company.
In keeping with the principles of MGG, the future insurance management team has agreed to receive below market salaries with the majority of compensation being based on profitability measures. According to the term sheet, future management will receive a perpetual non-transferable option to purchase 25% of the future insurance company at stated book value by injecting additional capital into the company. Management will also be given certain incentive packages based on profitability where a portion of the cash incentive will be used to exercise the insurance company option. In addition, various individuals and members of UMC will be granted an aggregate of 500,000 10-year consultant options to purchase shares of MGG at a price of $1.64 per share. The options will vest in 3 years and only vest if certain conditions are met, including the successful creation of the insurance company.
"We believe that insurance is a growth market in Mongolia where many consumers are not adequately covered," said Harris Kupperman, CEO of MGG. "We have found a management team that shares our culture of integrity and entrepreneurship. Their past success demonstrates their ability and we are thankful that they have chosen us as their partner to build this company."
"UMC is delighted to work with MGG in the Mongolian insurance markets," said Otgonjargal Gavaa, UMC Group partner. "We are looking forward to a long term successful cooperation in serving our valuable customers in Mongolia. UMC is committed to shaping competitive business models, delivering strong results in performance and building a company that will withstand the test of time."
In addition, three Mongolian individuals will be granted a combined total of 100,000 3-year consultant options to purchase shares of MGG at a price of $1.64 per share. These options are being issued in recognition of services already rendered. Management believes that these individuals will be an integral part of the future success of the Company.
Mongolia invests 11 million of euro
March 10 (news.mn) At a regular meeting of the Government, Minister for Finance S. Bayartsogt yesterday told about unification project of the International Bank for Economic Cooperation and the International Investment Bank.
He said that Mongolia takes part as a shareholder in the International Bank for Economic Cooperation and the International Investment Bank in frame of economic cooperating countries. Equity fund of these banks is a billion and 700 million of euro and Mongolia invested 11 million of euro to equity fund and owns 0.67% of total sum.
Shareholders are concluding an agreement of unification of the two banks in recent period of a time and Parliament of Mongolia would pass a new project of the agreement. Working group would be set up and President of the Mongol Bank L.Purevdorj will work as a Head of the working group. He will explain Mongolia’s position to the banks that borrowed to economic entities of Mongolia.
Besides, an employee from Mongolia works in the bank and countries have a seat, not depending on its share amount. But investor countries will vote seats depending on its share amount at present and some countries invest as shareholders like Mongolia. Minister S.Bayartsogt added to inform about conclusion of the agreement.
MONGOLIANS ABROAD TO BE REGISTERED (for TT shares and HDF cash)
March 9, Ulaanbaatar, Mongolia, /MONTSAME/ Those who have been registered in the renewed civil registration will own the ten-percent of the “Erdenes Tavantolgoi” LLC after having opened bank account.
In view of this, living abroad Mongolians are to be registered March 20-June 30. To get registered, over 16-year people have to come personally, while under 16-year ones may be registered by their parents, guardians or citizens' registration consul officer of diplomatic representative, all bearing national foreign passport, if needed, an identification card or birth certificate.
Lists of citizens names and information will be sent to social welfare organization and to the saving center of stocks settlement upon which the Mongolian gets a right to open the account and to receive his/her money from the Human development fund and the shares from the "Erdenes Tavan tolgoi" LLC.
EXCISE TAX INCREASES
March 10, Ulaanbaatar, Mongolia, /MONTSAME/ An excise tax on ton of diesel, imported through Altanbulag, Zamyn-Uud, Sukhbaatar and Ereentsav border checkpoints, will go up from "zero" to 130 thousand togrog, the same tax on АИ-92 petrol will increase from 230 thousand togrog to 250 thousand. This decision was made March 9 at the cabinet meeting.
The reason of this is that the Russian "Rosneft" company decreased in March prices of imported to Mongolia fuel--a ton of A-80 by 14 U.S. dollars, of AИ-92 by 18, and of diesel by 125 dollars.
Meanwhile, unchanged remain excise tax on A-80 as 160 thousand togrog per ton and all kinds of fuel imported through other border checkpoints.
The changes that will come to force March 11 are intended to keep the domestic prices stable and regulate possible fluctuations in future.
NAT'L COMMITTEE SET UP TO REDUCE AIR POLLUTION
March 9, Ulaanbaatar, Mongolia, /MONTSAME/ In accordance with a decree of the President, a national committee in charge of reducing the city's air pollution has been set up.
The Presidential office will chair the committee, the city's Mayor and heads of the parliamentary sub-committees on reduction of air pollution will act as its deputy leaders, the board has 18 members comprising state secretaries of several Ministries--of Finance, of Environment and Tourism, of Road, Transportation, Construction and Urban Development, of Mineral Resources and Energy--and heads of the General Agency for Specialized Inspection, Center of Standardization and Measurement, General Police Department, Energy Authority.
The committee's tasks are to regulate all projects and programs targeted at reducing air pollution, to unite financial resources, to control the consumption, and to conclude results of the works. Compulsory decisions will be made through resolutions. In respect of the rule, the committee will give report to parliament and the President every quarter. If necessary, a related matter may be submitted to the government and the National Security Council.
Sub-committees, led by governors, will work at the city's districts as well.
Government approves draft agreement on importing Chinese workers
March 10 (news.mn) The Government yesterday approved the draft of an agreement to be signed with China to import labor from there to work in specified areas.
Minister for Social Welfare and Labor T.Gandi has been asked to submit the draft to the National Security Council. Talks were held on the issue during the last meeting of the inter government commission for cooperation in economy, trade, science and technology, and China tentatively agreed to send workers, provided their security and interests were protected by a proper agreement. There have been reports of Mongolian employers and labor contractors employing foreign workers illegally so that their rights, such as housing, can be ignored.
"Mogi" Munkhdul Badral
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