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Close: Mongolia Related ASX Listed Companies, April 28, 2010 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.063 | 0.000 | 0.061 | 0.063 | 0.063 | 0.063 | 0.061 | 4,343,025 | |
1.600 | 0.005 | 1.560 | 1.600 | 1.520 | 1.600 | 1.520 | 918,722 | |
0.470 | 0.000 | 0.430 | 0.470 | 0.460 | 0.470 | 0.420 | 517,000 | |
0.965 | -0.025 | 0.930 | 0.970 | 0.980 | 0.980 | 0.930 | 560,499 | |
0.550 | 0.000 | 0.500 | 0.550 | 0.000 | 0.000 | 0.000 | 0 | |
0.023 | -0.002 | 0.022 | 0.023 | 0.025 | 0.025 | 0.022 | 5,452,850 | |
0.007 | 0.000 | 0.007 | 0.010 | 0.000 | 0.000 | 0.000 | 0 | |
0.055 | -0.007 | 0.054 | 0.056 | 0.061 | 0.064 | 0.053 | 35,187,555 | |
0.185 | -0.010 | 0.180 | 0.185 | 0.195 | 0.200 | 0.185 | 301,844 | |
1.155 | -0.025 | 1.155 | 1.160 | 1.195 | 1.195 | 1.120 | 578,855 | |
0.275 | 0.000 | 0.275 | 0.280 | 0.275 | 0.285 | 0.275 | 216,080 | |
0.555 | -0.005 | 0.530 | 0.555 | 0.565 | 0.565 | 0.530 | 96,216 | |
24.750 | -0.330 | 24.750 | 24.810 | 25.180 | 25.300 | 24.680 | 2,101,536 | |
83.370 | -0.080 | 83.370 | 83.400 | 84.350 | 84.460 | 83.330 | 2,645,859 | |
46.290 | -0.160 | 46.290 | 46.300 | 46.600 | 46.750 | 46.250 | 16,095,857 | |
Source: asx.com.au
Petro Matad: Operational Update
April 28, Petro Matad Limited (LON:MATD) --
Petro Matad is pleased to announce that drilling operations at the Company's Davsan Tolgoi-4 well ("DT-4") have recommenced following the winter shut down.
In early December 2010 the Company suspended the drilling of the DT-4 at a depth of 1,271 metres and an orderly shutdown and hibernation was successfully carried out. In the last few weeks the Company and its drilling contractor, DQE International, have been undertaking preparatory work including the reinstatement of the drilling team and operational camp.
As previously announced the rig remained on-site throughout the winter months, it has now been re-commissioned, serviced and tested and is currently working on cleaning out the hole ahead of further drilling. Night time temperatures are still below zero, but 24 hour operations are anticipated to commence tomorrow and drilling towards the target depth of 2,020 metres is scheduled to recommence over the weekend.
Further announcements will be released in due course.
Ministry of Finance issued guarantee on ₮800 billion bond of Development Bank
April 27 (business-mongolia.com) Yesterday, the agreement on "Pre-conditions of the Mongolian Government Guarantee" was signed between the Ministry of Finance (State Secretary D.Battur) and the Development Bank of Mongolia (Chairman Ch.Hashchuluun). This will be the main condition of the Mongolian Government Guarantee which will be made by the Minster for Finance. The agreement was made according to the Mongolian laws such as Law on Budget Stability, Law on General Budget, Law on Development Bank, The Government resolution on setting the maximum limit of the loan guarantee, resolution on issuing Government guarantee and stock.
During the signature ceremony, Minister S.Bayartsogt handed "Stock Certificate of the Development Bank" and "the Mongolian Government Guarantee" to Chairman Ch.Hashchuluun.
Upon signature of the agreement, the Minister for Finance will be enabled to issue guarantee on spot whenever it is necessary to issue such bonds. This agreement will form legal environment for the issuance of the bond. Minister S.Bayartsogt noted that it is the first time in the Mongolian history to issue bond guarantee, in order to raise fund for the development programs and projects, equal to 9.8% of GDP and this operation is the key milestone in the development of Mongolia.
Shortly after the signature of the agreement, Chairman Ch.Hashchuluun shares his opinion with media representatives.
Q: When the Development Bank start issuing the bond and how much bond will be issued?
Ch.Hashchuluun: As for the Development Bank, there are many works are waiting for us to manage. First of all, it shall form its capital resource, with such purpose we are preparing to issue the first ₮300 billion at the end of April or early May. This guarantee of the Ministry of Finance, on behalf of the Government, will surely give huge impact of the bond issuance. With this guarantee, I hope that bond sales will be high enough. Prior to issue the bond, we will sign an agreement with Mongolbank and MSE in cooperating on the bond sales.
Q: Which projects will be entitled to receive bond funding?
Ch.Hashchuluun: We have the prioritized list of projects such as construction, energy, roads, heavy industry. The projects which meet with the requirements according to the law, will receive funding.
Q: Minister Kh.Battulga said that the Development Bank will grant fund for the newly planned railway construction, by April 30. So will it be funded?
Ch.Hashchuluun: Feasibility study of the newly planned railway construction was not finalized and approved. The funding will be made based on the feasibility study, but not according to the priority level. In other words, if the feasibility study is completed and approved, then the funding will be made.
Saving Bank chooses ING Bank as financial advisor
April 26 (news.mn) ING Bank of the Netherlands will work as a financial and strategic advisor to the Savings Bank under a recently concluded agreement. The ING Bank ranks 12th in the Fortune Global 500 and has 100,000 employees. It has had an office in Mongolia since 2008 and has advised Mongolian customers and partners.
Savings Bank is one of the top five banks in Mongolia and employs 2,000 employees. Cooperation with the ING Bank will significantly strengthen its bank's position in the market and improve its capital source.
Ch.Gankhuyag: Government will provide housing to people based on their jobs
April 27 (business-mongolia.com) --
Mr. Ch.Gankhuyag, Vice Minister for Finance, shares his opinion on the recent development of the Government plan for housing and its funding solutions.
Q: The Government decision of shutting down the Housing Finance Corp. (HFC) is masterminded by Vice Minister for Finance. Some say that secret owners and former executives of commercial banks are Cabinet Members now whom supported such decision. What would you say about it?
Ch.Gankhuyag: Principally, the Housing Finance Corp. was established to implement the state support in its people to solving their housing issues. It has been operating for 5 years already. But as for today's standpoint, it is necessary to make function of HFC clearer in order to involve people without apartments into the housing program. I think that the Government plans to implement this work, but not just shutting down. As for the hearsay, it is not true. Yes, I was working for a commercial bank. But I think it is not the issue of professional background but policy issue, whether the Government build houses itself and provide direct loan to people or not. The main question is that is it better to impose workable policy and to establish structure based on the realization of our budget and capacity or not.
Q: Don't you think that the Government's decision to issue bond of ₮300 billion, in order to implement program of "Household for 100,000 families", urged greed of commercial banks? Can't commercial banks draw this fund to themselves with existence of HFC?
Ch.Gankhyag: If someone talks like this, then it is total misunderstanding.
Q: Why, it can't be the alternative?
Ch.Gankhyag: Because the previously issued Government bonds were bought only by commercial banks, providing fund to the long term loan implemented by HFC. Therefore, source came from commercial banks. Also commercial banks provided the most of the loans to the construction companies. Over 25 thousand families solved their housing issue through the housing loan at commercial banks. It is big number.
Q: How much mortgage loan was provided for how long?
Ch.Gankhyag: Basically 25,000 mortgage loans with term of 10-15 years reached to public. Using this fund, prior to and after the economic recession, the construction companies built the apartments for the people. Shortly, commercial banks worked hard in building long term housing loan resource. But the Government needs to develop many fields such as the capital market and infrastructure availability in order to increase housing supply and accelerate the process.
Q: You mentioned about making clear of HFC functions. What does it exactly mean? The Cabinet Secretary said that it will implement re-structuring.
Ch.Gankhyag: The Government shall initiate works to facilitate loan with interest of 6% per annum to everyone, not only to state servants and officials, starting from those who need apartment desperately. It can be understood that this clearance will be made on the Government involvement in this regard.
More clearly it can be said that what would be the Government and HFC involvement in providing long term loan with less interest rate. How much fund shall be allocated in the state budget in order to decrease the interest rate, shortly it is all about subsidiary scheme. The Government will make decision how to implement such scheme. In addition, representatives from NDIC, Ministry of Roads, Transport, Construction and Urban Development, Ministry of Finance, Mongolbank, HFC, Mongolian Ipotek Corp. made joint prospect. Now it is important to deliver schedule in their efforts. The Government is going to issue a decision to provide housing not only to the state servants and officials, but to public. In order to achieve such important goal, the institute with professional HR, official approval from the state organizations, and full power to claim its loan interest and deposited real estate.
Q: Can HFC meet with such requirements?
Ch.Gankhyag: According to the law, an institution with appropriate license shall deal with banking business, both in the Civil Law and Banking Law. It shall receive license from Mongolbank and FRC and has capable management team and HR. This standard is being followed everywhere.
Q: So Commercial banks meet with this requirement right?
Ch.Gankhyag: Other NBFO (Non-Banking Financial Organisation) and Savings and Credit Cooperatives can be included in here.
Q: Mongolian Ipotek Corp. (MIC) can meet these requirements then?
Ch.Gankhuyag: MIC was not established to provide direct loan. It hasn't been giving loan to anyone, but it is an institute to create circulation through buying of loan packages and re-selling it to the secondary market. But now it is taking about providing direct loan. In this case, there will be many issues needed to be considered such as interest calculation, depositing secured estate, clearing, risk and reserve fund and tax. Also, according to the law, who will get the right to provide loan.
Q: Difference between interest of HFC and commercial banks are huge like 9% per annum. Will this gap be filled by the taxpayers' money?
Ch.Gankhuyag: The State issued several bonds in the past allocating certain funds in the budget through HFC and commercial banks. In order to pursue its policy, it has been utilizing the taxpayers' fund. It is the role of the state. Now, we are talking about to modify and improve this policy. This new structure and scheme shall be approved by the Cabinet Meeting. In order to form the system, the arrangement for MIC, in raising fund from the secondary market (capital market/Stock exchange), shall be created immediately. Otherwise, this subsidiary still exists and will exist in the future. Hence it is important to implement policy to encourage demand in this sector. In order to encourage the demand, block in the money supply is being removed. Recently, MSE management issue was solved. When MSE operates openly and transparently, bigger investment funds will settle in Mongolia. Alongside, if Health Insurance and Social Insurance are reformed and insurance companies are allowed to invest in, an opportunity to attract long term and reliable fund from the domestic market to the construction sector will be formed.
In other words, the current system is all about drawing commercial bank funds to HFC through Government bond and when HFC places it back to commercial banks. What we are thinking about now is that the Government takes funds from commercial banks with condition of paying back. The state is trying to form the system of providing long term soft loan to its people through creating workplaces and encouraging labour.
Q: So what is the role of HFC?
Ch.Gankhuyag: As for HFC, it is going to regulate and coordinate the procedure. In other words, it will monitor the process, such as building infrastructure and planning new districts in certain areas. Its main role is to secure appropriate utilization of the subsidy to the target people or segment. The state shall not be the place to build houses or buildings. HFC is just a LLC with involvement of local authority and Government: 51% is to Ulaanbaatar City, 24.5% is to the Ministry of Finance and 24.5% is to the Ministry of Roads, Transport, Construction and Urban Development. This company was established to implement "Housing for 40,000 Households" Program. Due to certain conditions and problems, this initiative lacks progress. This shall be intensified and it is necessary to form the condition of providing housing for 100,000 households. But the whole budget can't be provided by the budget (tax income). Therefore, we concentrate on the solution based on the market economy mechanism.
24 mining licenses canceled in Bayan-Ulgii
April 26 (news.mn) The Mineral Resources Authority has canceled 24 special mining licenses covering 30,000 hectares in Bayan-Ulgii aimag on the ground that there has been no work there in the last three years. Exploration work in the aimag has revealed that it has 200 rich deposits of gold, silver, copper, zinc, lead and molybdenum.
Contracts allowed export of crude without tax
April 25 (news.mn) The State Specialized Inspecting Agency (SSIA) has found that crude oil from Toson-Uul XIX and Buir XXII has so far been exported without payment of any tax as the contracts with the Mineral Resources and Petroleum Authority (MRPA) did not have any provision for levying tax. The agreements were signed in 1993 and 5.4 million barrels of crude has been exported from Toson-Uul XIX alone since 1998 without any tax. Output from both blocs continues to be exported without tax.
All these years, audit work had never studied the product sharing agreement and had concentrated on accounts only. The SSIA also feels there was no proper monitoring of how USD4.9 million paid by organizations for training activity has actually been spent. The MRPA has also failed to enforce any environmental rehabilitation work in areas explored and exploited.
The SSIA has delivered an urgent note to the Government suggesting a revision of the terms of the original contracts and to see how the loss of tax between 1998 and 2010 can be compensated.
MMC: Annual Report 2010
April 28, Mongolian Mining Corporation (HK:975) --
Link to Notice of Annual General Meeting, AGM Circulars, and Proxy Form
Citi: MMC share price under pressure in short-term, but long term value intact. Retains BUY Rating at HK$10
April 21 (ETNet) Citigroup cited Mongolian Mining (00975) management indicating that the gravel road connecting the UHG mine to Tsagaan Khad to reopen in 3-4 weeks when maintenance work completes.
The road was suspended this week due to environmental concerns, and safety issues.
Management remains confident on its full year production and sales targets and believes that its long-term customer relationships will not be affected due to the logistic hiccups.
Citi believes the share price could be under pressure in the short-term as sales volume in 2Q could be partially affected. However, it believes the company's long-term value (high quality asset, strong mining execution, volume growth, and improving product mix) is intact and retained its "buy" rating, with a target price of HK$10. (KL)
Link to MMC official statement
Winsway's rating & outlook unaffected by Mongolian ban - S&P
April 21 (ETNet) Standard & Poor's Ratings Services said today that its rating and outlook on Winsway Coking Coal Holdings Ltd. (BB-/Stable/--) (01733) are not immediately affected by the suspension of trucking on the sole access road to a mining area in Mongolia where the company sources at least 50% of its coal in the country.
The government suspended trucking to Tavan Togol for safety and environmental reasons.
It is currently unclear when the ban will be lifted.
S&P believes that a prolonged ban could have a material impact on Winsway's coking coal supply. It estimated that the company has sufficient inventory for one or two months. Winsway could source coal from overseas sources, although margins on seaborne supplies are materially lower. The credit rating agency does not believe the company's debt servicing will be affected in 2011 even if the ban is prolonged. It believes Winsway's liquidity is adequate as it recently raised US$500 million from the bond market. (KL)
Goldman trims Winsway (01733) TP to HK$5.65
April 21 (ETNet) Goldman Sachs trimmed its target price for Winsway Coking Coal (01733) to HK$5.65 from HK$5.8 post recent issue of senior notes, and maintained its "buy" call.
The house noted that recently the Ministry of Railway (MoR) offered some qualified buyers the chance to acquire rolling stock on MoR's behalf. Winsway could potentially acquire up to 6,000 new railcars, according to company guidance (likely to start with 4,500).
In addition, Winsway has secured sufficient railway allocation, while its available off -take from Mongolian coal mines exceeds Goldman's 8mn tons estimate, and so even if some mines do not deliver they may not miss their volume target. (KL)
LKY rose 13.9% on the announcement on Wednesday
Lucky Strike NKAK Coal Project Acquisition and Coal Transportation Service Agreement
Vancouver, British Columbia CANADA, April 27, 2011 /FSC/ - Lucky Strike Resources Ltd. (LKY - TSX Venture), Cathy Fong, CEO of Lucky Strike Resources Ltd. (the "Company" or "Lucky Strike"), is pleased to report the Company signed a letter agreement (the "Letter Agreement") with a private Mongolian company (the "Representative") that represents the owner of two exploration licences covering an area of 8,736 hectares within the eastern boundary 3 km west of the Olonbulag coking coal deposits in the aimag of Hovd in southwest Mongolia and known as the Nariin Khargait and Ar Khadnii Ovoo ("NKAK") coal properties (the "Properties"). The Representative has also confirmed that it can secure transportation contracts for the transportation of at least one million tonnes of coal per year from Mongolia to the China border within the first three years of operation which will be conducted through a joint venture company (the "JV Company"). It is contemplated by the Letter Agreement that the Properties will be transferred to the JV Company and all transportation licences and contracts will be vested in the JV Company. Pursuant to the terms of the Letter Agreement, the Representative has granted to Lucky Strike an option to acquire up to a 75% interest in the JV Company on the financial terms described below.
NKAK Coal Properties
The NKAK coal properties are located in southwest Mongolia, about 20 km north of the Baitag Chinese border, 500 km southwest of the City of Altai and 1,500 km west of the Capital City of Ulaanbaatar in Mongolia. According to the Representative, the history of the property dates back to 1955 with geological mapping at 1:200,000 scale by a Russian geologic team and further assessment work completed in 1975. The exploration licenses cover areas that include occurrences of Lower Carboniferous Olonbulag terrigenous sediments that host coal seams.
The NKAK properties cover an area of 8,736 hectares and are situated 3 km west of the Olonbulag coal deposits. The Olonbulag coal units include the Nariin Khargait, Buduun Khargait, and Ochiriin Bulag deposits, and are directly southeast of the NKAK properties. They are reported to contain coal seams ranging up to 45m thick. The Representative completed a reconnaissance survey in July 2010 that resulted in the delineation of coal occurrences extending for 11 km in length and 2.5 km in width. In 2010, channel sampling in the prospect area revealed a 10-50m thick coal-rich bed consisting of two seams that crop out along the hinge of an anticline fold.
There is one coal mine 10km from the NKAK properties within Mongolia. There are three coal mines including Wotouquan, Balikun East and Sandaoling just south of the Chinese border in the Xinjiang province of China.
Coal Transportation
Pursuant to the Letter Agreement, the Representative has agreed to use its commercial efforts to secure and assign transportation contracts to the JV Company for the transportation of a minimum of one million tonnes of coal per annum ("tpy") from Mongolia to China within the first three years of operation. The Representative's affiliate company holds a transportation licence and contract and is currently transporting 500,000 tpy coking coal from Tavan Tolgoi to Tsagaan Had a reloading station through to Gashuun Suhait Mongolian-Chinese border to the final destination of Gants Mod in China. The Representative has advised Lucky Strike that they are in negotiations with numerous additional transportation contracts throughout Mongolia. Tavan Tolgoi is reportedly, the world's largest coal deposit with an estimated 6.42 billion tonnes of coal reserve and a target production of 15 million tonnes by 2015 according to the Mineral Resources and Petroleum Authority of Mongolia and the Golomt Bank's Mining Department.
Lucky Strike, with the Representative, plans to develop additional transportation logistics operations including fleets of trucks, truck shop, station facilities, warehouse and office for the coal transportation of numerous deposits across Mongolia. The number of tonnes for transportation may be increased, based on investment interest from the capital market.
Mongolia exported 9 million tons of coal in 2010 according to Mongolian Golomt Bank's Mining Department with a forecast of 16 million tons in 2011 and to reach 45 million tons by 2016. Mongolia's number one trading partner, China, is estimated to currently receive two-thirds of all Mongolia's exports.
Financial Terms
In order to acquire up to a 75% ownership interest in the JV Company, Lucky Strike is required to: (a) make a non-refundable payment of US $300,000 to the Representative upon execution of the Letter of Agreement; (b) make US $600,000 in cash payments to the Representative over a three year period of which US$500,000 is payable upon receipt of TSXV approval, US$50,000 is payable on the first year anniversary of the approval date and US $25,000 is payable on both the second and third anniversary of the approval date; and (c) complete a minimum of US$8 million in exploration and development expenditures over a three year period of which US$1 million must be expended by the first year anniversary of the approval date, US$2 million must be expended by the second year anniversary of the approval date and US$5 million must be spent by the third year anniversary of the approval date. The acquisition is subject to completion of legal and technical due diligence and acceptance of the TSX Venture Exchange.
Finder's fees may be paid, and will be in accordance with TSX Venture Exchange policies, and is subject to the approval of the regulatory authorities.
GTSO's First Mongolian Rare Earth Assay Yields 'Better Than Expected' Results
April 27 (4-traders) A new rare earth mineral assay commissioned by Green Technology Solutions' (OTCQB:GTSO) joint venture in Mongolia confirms the presence of rare elements at the first of several mining properties that the company plans to develop in the Central Asian nation.
Last month, the Mongolian agent company for GTSO's joint venture with Rare Earth Exporters of Mongolia (REE) signed a letter of intent to develop a new licensed rare earth mine in Mongolia's Tuv province. According to the letter, the joint venture has the right to seek investors, scientists and other professionals in performing due diligence toward a definitive agreement with ArErkhes, LLC, the mine's license holder. GTSO and REE commissioned a mineral assay of the site by SGS Mongolia Minerals to determine what rare earths are present in the property.
GTSO President and CEO John Shearer said Tuesday that the assay's results were "better than expected."
"We were very pleased to learn that the assay confirms concentrations of lanthanum, scandium, yttrium, cerium and other elements at the ArErkhes property," Shearer said. "Initially, we did not expect that such a volume would be found there. Our next step will be to have a geologist analyze the report along with soil samples to determine the density of rare earths on the property."
ArErkhes is a trading and mining company located in the Mongolian capital of Ulan Bator. The company claims to hold a special license to work the largest Tantalum mine in Mongolia and the world. The assayed property is the second mining property in Tuv to be pursued by GTSO and REE. In March, the joint venture executed a land lease agreement for another site in the province's Erdenesant district. The Tuv province surrounds the capital city of Ulan Bator, Mongolia's road and rail transportation hub and home to the joint venture's transportation office. GTSO and REE plan to truck rare earth ore from mining properties across Mongolia to Ulan Bator, where they can be shipped by rail to the international seaport of Vladivostok, Russia, for export to South Korea, Japan, the U.S. and elsewhere.
In May, Shearer will travel to Mongolia to inspect properties the joint venture is working to develop into rare earth mines. Earlier this month, GTSO announced plans to acquire REE as a wholly owned subsidiary, potentially setting the company up to become the sole owner of mining rights to several mining properties in the developing Asian nation.
"Currently, we are working to assess the value of the rare earth deposits on four different properties in Mongolia," Shearer said. "Those values will help us to determine a fair acquisition price for Rare Earth Exporters of Mongolia."
…
Mongolia Growth Group Ltd. Publishes April 2011 Monthly Letter to Shareholders
Calgary, Alberta CANADA, April 26, 2011 /FSC/ - Mongolia Growth Group Ltd. (YAK - CNSX), is pleased to announce the release of its April 2011 letter to shareholders.
April 2011 Shareholder Letter
To the Shareholders of Mongolia Growth Group Ltd.,
I am writing to you from Ulaanbaatar, Mongolia, where our young company is making rapid progress. Naturally, we have had to deal with the growing pains of any new venture (corporate formations, account openings, etc.) and adding complexity to this; we have had to learn the rules in a new country. However, these hassles are increasingly in the past and we can now focus on building our business. Of course, nothing happens without capital, and I am thankful to everyone who subscribed to our recently completed $14,860,458 offering. As you know, management here at MGG eats its own cooking and nearly $4 million of the total proceeds came from senior management and the board.
We are now focused on deploying that capital in an intelligent manner. Upon receiving regulatory approval, we intend to invest US $5,000,000 in our new insurance venture. The whole point of insurance is the confidence that, when you have a claim, your insurer has the financial strength to cover your loss. Based on our research, we will be the best capitalized insurance company in Mongolia following this capital injection. If insurance is about strength, between our management team and our capitalization, we are off to a very strong start.
We have also been deploying capital into real estate. This is somewhat complicated by our strict return on capital hurdles and the small size of the market that we are targeting. To date, we have evaluated dozens of opportunities and acquired 11 residential apartments, over 1,000 meters of prime commercial space and 250 meters of leasable office space. Pending our due diligence process, we have a number of exciting properties that we hope to add to the portfolio in the near future.
Our focus is unchanged-we want to partner with businesses leveraged to the growth of Mongolia. Barring that, we want to own high quality real estate. While the returns on real estate may not be as good as other businesses, we can be very happy with the stability of the double-digit yields and the potential for capital appreciation.
The capital markets are quite fickle. I never want to rely on them for our funding. As a new company, profitability is paramount. Therefore, it's very exciting to see our first rent checks showing up in our accounts. Revenue is the first step towards profitability. Given our focus on low cost operations, it shouldn't be long before we have true earnings.
During early May, I will be returning to North America for meetings (and Mother's Day). If you live near Omaha, Los Angeles or New York City, contact Genevieve Walkden (info@mongoliagrowthgroup.com) if you would like to attend any of our presentations. In summary, we've been running this company for less than three months, but I am proud of the progress we have already made.
Sincerely,
Harris Kupperman
Chairman & CEO
Mongolia Growth Group Ltd.
Airspan Announces Ulusnet Mongolia 4G Network Expansion
Delivering 4G Broadband Services to Mongolian Residents and Businesses
BOCA RATON, FL--(Marketwire - Apr 28, 2011) - Airspan Networks Inc., a leading provider of broadband wireless access networks, announced today the expansion by Ulusnet, Mongolia, of their 4G broadband network.
Ulusnet launched its WiMAX network in 2007 and has been serving residential, business and government customers with high-speed broadband services since. With a successful business in place, Ulusnet is meeting the growing demand for broader coverage, as well as faster and more mobile services by expanding its existing network with Airspan infrastructure.
The Ulusnet network consists of a combination of Airspan micro and macro-cell equipment to gain the right type of connectivity where needed. Operating in the 2.5 GHz frequency, Ulusnet leverages the Airspan Air4G base station's compact footprint, powerful technology, fractional frequency reuse (FFR) features and the network management system to operate an efficient, low-cost network.
The majority of the network is located in the city of Ulaanbaatar, the capital and largest city in Mongolia and home to about 38% of the nation's population. The new expansion will continue to serve the city as well as target some of the more rural countryside.
"Airspan has served us well for several years," commented Ulusnet CEO Byambatseren Davaakhuu. "We have a strong partnership that supports our rapidly growing network. Mongolia is one of the fastest growing economies in Asia and with a growing economy comes a higher demand for high-speed connectivity. Ulusnet is well positioned to continue to serve Mongolian resident and commercial customers with 4G data and voice services."
Amit Ancikovsky, President of Products and Sales for Airspan, added, "Ulusnet has shown impressive growth and has managed their business intelligently. This operator is a prime example of how Airspan helps customers succeed in emerging markets. Airspan infrastructure has been an ideal match for Ulusnet, offering the right coverage, capacity and range to meet their business objectives and support their growth."
Mongolia: Death Stalks Country's Oldest Mine
April 27 (Eurasianet.org) Mongolia's mining sector may be thriving, but Nalaikh, a town once famed as the country's industrial hub and the site of its first coal mine, has become synonymous with mining disasters.
Since the collapse of Communism and the end of Soviet subsidies in the early 1990s, the eponymous Nalaikh mine has emerged as perhaps the most dangerous place in Mongolia. Yet, with little government oversight, hundreds of informal miners continue to excavate coal there. The former state-run site has claimed 47 lives since 2009, according to an official count. The victims are mostly young men between the ages of 23 and 35.
On March 15, seven coal miners at Nalaikh died after becoming trapped in underground shafts. The tragedy, however, was overshadowed by the government's release of a long-awaited shortlist of companies vying to develop Tavan Tolgoi, the world's largest untapped coking coal deposit, holding an estimated 6.5 billion tons. International mining giants Peabody, Vale and Xstrata are among the short-listed companies. In addition to a prodigious amount of coal, Mongolia is believed to hold deposits of precious metals, including gold and copper, totaling roughly $1 trillion.
The output of Tavan Tolgoi alone is expected to double Mongolia's GDP by 2015. A vital component in the steel industry, international demand for coking coal is expected to grow. But Nalaikh's thermal coal, found deep underground, attracts little international or government interest these days. Though the site is large, it pales in comparison with new, easier-to-access finds in the resource-rich country. The Ministry of Mineral Resources and Energy estimates Mongolia has 150 billion tons of coal reserves.
Today, only informal miners and small companies continue to scrape away at the Nalaikh deposit, working under precarious conditions.
Mining at Nalaikh, about 35 kilometers southeast of the Mongolian capital Ulaanbataar, dates back to 1920. And as late as the 1950s, Nalaikh was still the only mine in the country, employing as many as 1,500 people. As the most industrialized town in Mongolia back then, it drew migrants from all over the country. A fatal methane gas explosion in 1990 that killed 21 and forced the government to shut down the mine.
"With the breakdown of Soviet support, we couldn't afford the technology required for large scale underground mines anymore," said Chogtkhuu Luvsang, a former employee at the Nalaikh mine and currently chief inspector at the local Geological and Mining Inspection Agency. The government additionally focused its attention and resources on developing less expensive open pit mine sites.
The Nalaikh mine still holds about 30 million tons of coal, Luvsang says. As the work is informal, the exact number of workers is difficult to pinpoint, but Luvsang estimates about 2,500 people work at Nalaikh during the peak season from September to May.
After the formal closure of the site and surrounding industries, masses of freshly unemployed and skilled miners turned to illegal mining. By 1994, the government attempted to regain some control by issuing licenses for operations at Nalaikh. "There are 36 small companies with licenses now but they all operate the same way -- with minimal safety standards," says Luvsang. He can do little except issue warnings and provide safety training, he added. It is Luvsang's impression that the government pays too little attention to Nalaikh, as officials have their eyes on bigger projects, involving vast foreign investments.
Shafts at Nalaikh these days are dug haphazardly and with little coordination among the various mining teams; cave-ins are becoming more frequent as shafts stray too close together and go deeper than ever before. In many instances, miners don't bother setting up safety beams, considering them an unnecessary expense.
Concern over the increasing number of accidents has the government mulling whether to declare a freeze on all mining at Nalaikh. But miners are unlikely to abandon the site, unless they are presented with a viable alternative to earn a living. "There are about 200 shafts and each shaft has a minimum of 10 workers -- not to forget all the drivers, middlemen and resellers dependent on this. It would be catastrophic for all of us if the mines are shut," insists Musa Tuluu, a second-generation ethnic Kazakh miner whose father migrated to Nalaikh in the 1960s.
For most workers at Nalaikh, speculation on a mining boom in Mongolia and the Tavan Tolgoi contract stir little excitement. "They'll most probably get Chinese workers and I'm too old to dream now," says 47-year-old Quad Byek, a former digger who now runs his own operation at a shaft employing nine men. Though worried about the safety of the team working underground, he admits their main concern is to dig as much coal as possible before the weather warms and the frozen earth thaws. That's when the risk of cave-ins increases significantly.
Beneath a layer of cynicism, many miners hope for a better life, at least for their families. "I hope my children don't continue the family tradition of mining, but if they do, I hope they find work in big companies where work is easier and safer," said Tuluu, the Kazakh.
C @ Limited enters agreement with aim to acquire Indonesian coal assets
April 28 (Proactive Investors) Perth-based C @ Limited (ASX: CEO) has entered into an agreement with PT Ethica Trada Cermelang (Ethica) to secure in-country representation in Indonesia in order to acquire and develop high quality coal assets.
C @ Limited is currently engaged in supplying wholesale optical frames and lenses to opticians. During 2010 it announced that it would search for opportunities in the coal resources sector.
The agreement with the leading Indonesian coal advisor will accelerate C @ Limited's project identification and review process and provide a strategic partner in Indonesia that brings along the expertise, capabilities and local support.
C @ Limited said it is encouraged that a pipeline of potential projects is available, even in a relatively well established and developed coal market such as Indonesia.
The agreement is for a period of six months, with a further six month option available at C @ Limited's election. During this time the company will reimburse Ethica for expenditure related to these activities.
There will be a success-based equity fee. Upon identifying a suitable Indonesian coal opportunity, an unincorporated joint venture will be established with Ethica to acquire the project assets.
C @ Limited will retain the majority interest in the joint venture projects. Ethica will also have the opportunity to acquire an additional minority contributing interest in the joint venture.
Mark Earley, C @ Limited managing director, said "The company is on track with its investment strategy in both Mongolia and Indonesia, two countries identified for their prospective coking and thermal coal project opportunities, having recently secured a number of significant licenses in Mongolia under a similar model."
<Mogi & Friends Fund A/C>
Mogi & Friends Fund is a tiny fund of A$20.8K I created in late September with a few friends to put my own (and a few friends') money where my mouth (just mine) is.
Mogi
Disclosures
· I personally and through my "Mogi & Friends Fund" hold 75,000 HAR shares in aggregate.
· Jason Peterson, CPS Securities Director, holds shares (approx. 6,500,000) and options (1,000,000) in HAR.
· CPS holds 500,000 options in HAR for corporate advice provided to HAR – Jason Peterson is a 33% shareholder in CPS.
· CPS and CPSI directors and employees hold shares in HAR and may buy and sell these shares as and when they see fit.
· CPS has received an IPO management fee of $250,000 and a 5% fee for any funds placed to its clients under the prospectus.
· HAR has paid for Jason Peterson's travel and accommodation expenses to and in Mongolia – this must be disclosed as a soft dollar commission.
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"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
P Please consider the environment before printing a copy of this email.
Central Tower · 12th Floor · Left Wing · 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 AFSL License 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.
