CPSI NewsWire brings you market updates on Mongolia, compiled by CPS International, a Mongolian marketing arm of CPS Securities, a Perth, WA based stockbroking and corporate advisory firm, specialising in capital raising for mining and junior stocks.
Follow CPSI NewsWire on Twitter, Facebook
1878 trading +16.7% to HK$59.75 midday
UPDATE 1-China's Chalco seeks Ivanhoe's South Gobi stake for $926 mln
* Chinalco offering nearly 29% premium to South Gobi's HK listed shares
* Chalco shares fall 1.6pct, SouthGobi shares jump 16 pct (Adds details, background, analyst comment)
April 2 (Reuters) - China's aluminum producer Chalco has agreed to buy Ivanhoe Mining Ltd's controlling stake in Mongolian-focused coal miner SouthGobi Resources (TSX:SGQ, HK:1878) for $926 million, as the Chinese state company diversifies into other resources in the face of tough aluminium market.
Aluminium Corp of China Ltd (Chalco) said in a statement on Monday that it will acquire the 57.6 percent stake for C$8.48 per share, a 28.1 percent premium to South Gobi's Friday closing stock price. The Hong Kong price of the offer is HK$65.97, the company said.
Chinese miners are scanning the globe for natural resources to feed the country's fast growing energy needs and Chalco's move to buy control of a Mongolian coal company is part of that strategy. Chalco, China's biggest aluminium maker, has been battling lower metal prices and higher costs and has warned of losses in the quarter of 2012 after reporting a bigger than expected loss in the fourth quarter of last year.
"This is a very surprising acquisition and should be positive to Chalco's share prices as earnings growth in the company's aluminium business is limited and diversifying into coal is a good move," Robin Tsui, an analyst at BOCI Research said.
Chaclo's total liabilities totalled 99 billion yuan ($15.7 billion) at the end of 2011.
"Chalco is debt heavy but it is a central government-owned company and should have no problem in terms of funding, and have no danger of default," he added.
Chalco said it will fund its acquisition with internal funds and bank loans. Chinalco owns 12.9 percent stake in Rio Tinto Ltd , which in turn holds 51 percent stake in Canadian miner Ivanhoe Mining. Chinalco is the parent of Chalco.
Canadian and Hong Kong listed SouthGobi mining company is focused on Mongolia. It owns four coal projects in Mongolia and three development projects, the Soumber Deposit, Zag Suuj Deposit and the Ovoot Tolgoi Underground Deposit. In addition, SouthGobi holds mineral exploration licences in Mongolia.
SouthGobi shares jumped 16 percent on Monday to HK$59.50 per share.
Related:
Chalco Agrees to Buy Ivanhoe SouthGobi Stake for C$889 Million � Bloomberg, April 2, 2012
Aluminum Corporation of China Announces its Intention to Make a Proportional Takeover Bid for up to 60% of the Common Shares of Ivanhoe Mines' Subsidiary Coal Miner SouthGobi Resources � Ivanhoe Mines, April 1
Video: Chalco Takeover Almost Certain, SouthGobi CEO Says
April 2 (Bloomberg) -- Alexander Molyneux, chief executive officer of SouthGobi Resources Ltd., talks about the offer by Aluminum Corp. of China Ltd., known as Chalco, to buy Ivanhoe Mines Ltd.'s stake in SouthGobi for C$889 million ($891 million). Molyneux also discusses the outlook for the coking coal industry. He speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia."
Announcement made after market close. DRG closed today -0.98% to 50.5c
DRAIG COMMENCES DRILLING AT TEEG LICENCE
April 2, Draig Resources Limited (ASX:DRG) --
Highlights
• Drilling underway on Teeg licence (13879x), Ovorhangay Province, Mongolia
• Phase 1 exploration program to comprise 13 holes over 2000 metres
• Two drill rigs carrying out work on site
• Further holes planned for Nariin Teeg licence, pending initial results
• JORC compliant resource on track for release Q2 2012
Draig Resources Limited (ASX: DRG) ("Draig", or "the Company") is pleased to announce it has commenced drilling on its Teeg coal licence (13879x) in Mongolia's Ovorhangay Province.
The Phase 1 drill program will comprise 13 holes over 2000 metres. Priority has been given to the Teeg licence where previous drilling resulted in two significant coal intercepts and the further identification of numerous coal targets during the recent geophysical survey.
Draig said the majority of holes drilled would be less than 200 metres deep, as the Teeg licence targets were expected to be relatively shallow. The geophysical survey revealed Teeg could potentially contain two laterally continuous synclinal features.
Further drilling will potentially follow on the nearby Nariin Teeg licence, depending on the results of the initial drilling at Teeg.Draig Managing Director Mark Earley said: "We have two rigs on site drilling for open cut coal and should have an initial assessment of the coal thickness and depth at the Teeg licence within the next 2 � 3 weeks, with coal quality results available in the weeks following.
"The commencement of drilling on our licences marks an exciting time for Draig and much of what we plan next is dependent on the coal we find in the next few weeks," Mr Earley said.
The Teeg licence area covers 22.20km2 and sits immediately south of the 50 year old Bayanteeg open�cut mine, which has extracted an estimated 5 million tonnes of surface coal to date.
Draig drilled five holes at the Teeg licence during a due diligence exploration program undertaken prior to the acquisition of eight coal licences in Mongolia. The drilling intersected black coal seams up to 60 metres on the Teeg licence.
ETG closed flat at C$1.25, EGI closed +4% to US$1.30
Entree Gold Announces Fiscal Year 2011 Results and Reviews Corporate Highlights
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 30, 2012) - Entrée Gold Inc. (TSX:ETG)(NYSE Amex:EGI)(FRANKFURT:EKA) ("Entrée" or the "Company") has today filed its annual operational and financial results for the year ended December 31, 2011. The Company's Annual Report on Form 40-F has been filed with the SEC, and is available on the Company website at www.entreegold.com. Shareholders can receive a free hard copy of the Company's audited Annual Financial Statements upon request.
Greg Crowe, President and CEO commented, "Looking back, 2011 was really about laying a strong foundation for the future of Entrée Gold. Significant advances have been made to both of our key assets. In Mongolia, our joint venture partner Oyu Tolgoi LLC ("OTLLC") and project manager Rio Tinto are nearing 75% completion on the construction of the Oyu Tolgoi mining complex. The initial phases of the Oyu Tolgoi mining complex include a portion of the joint venture's Hugo North Extension deposit. Initial production from OTLLC's open pit deposits is scheduled to commence in the second half of 2012. Underground work continues at a fast pace with first commercial production from OTLLC's Hugo North deposit expected in 2015. Entrée expects first development production from the joint venture's Hugo North Extension deposit that same year."
Updated information on the reserve case production schedules was provided in a technical report to be filed by Ivanhoe Mines Ltd. ("Ivanhoe Mines") on March 30, 2012. Today Entrée filed a separate NI 43-101 compliant technical report, which discusses the impact of the updated mine plan on the joint venture property as well as future development options for the considerable joint venture assets.
Greg Crowe further noted, "In addition to the advancements related to our Mongolian assets, we recently announced a substantial upgrade and expansion of resources for the Ann Mason Project in Nevada, which is fast becoming one of the leading undeveloped copper projects in North America. This latest resource estimate converts 75% of the previously estimated inferred resources into the indicated category using a 0.3% copper cut-off. We are now preparing a preliminary economic assessment for Ann Mason, which is expected in the second half of 2012."
Highlights for the year ended December 31, 2011 and subsequent developments through March 30, 2012 include:
Mongolia
Lookout Hill Joint Venture
Entrée retains a 20% carried interest in the Hugo North Extension deposit, which hosts indicated resources of 117 million tonnes grading 1.8% copper and 0.61 grams per tonne ("g/t") gold, estimated to contain 4.6 billion pounds of copper and 2.3 million ounces of gold plus inferred resources of 95.5 million tonnes grading 1.15% copper and 0.31 g/t gold estimated to contain 2.4 billion pounds of copper and 0.95 million ounces of gold. Entrée also has a 20% carried interest in the Heruga copper-gold-molybdenum deposit that hosts 910 million tonnes grading 0.48% copper, 0.49 g/t gold and 0.014% molybdenum estimated to contain 9.6 billion pounds of copper, 14.3 million ounces of gold and 280 million pounds of molybdenum. The indicated resource at Hugo North Extension includes a probable reserve which is included in the first lift (Lift 1) of the underground block cave operation.
In 2011, development and construction at the Oyu Tolgoi mining complex advanced rapidly, achieving over 70% completion at the end of the year. Oyu Tolgoi is on track for first development production in the second half of 2012:
・ An updated mining plan was released in March 2012, which resulted in an increase in the net present value (at an 8% discount rate) of the Hugo North Extension - Lift 1 from $79 million (see news release of May 11, 2010) to $129 million.
・ Net smelter return ("NSR") value of the Hugo North Extension - Lift 1 reserve increased to $79.40/tonne from $55.57/tonne (see news release of March 30, 2012). The NSR calculation reflects the net value per tonne received for the ore by the mine (after all costs and charges).
・ A significant portion of the mineralization on the Entrée-OTLLC joint venture property has not been included in the updated mining plan and remains in the mineral resource category, including Hugo North Extension - Lift 2 and the Heruga Deposit.
・ Drilling of targets at Hugo North Extension and Heruga continue on the Entree-OTLLC joint venture property. In 2011, approximately 14,900 metres of drilling were completed.
The Company's updated technical report, titled "Technical Report 2012 on the Lookout Hill Property" ("LHTR12"), is available on SEDAR andwww.sedar.com. LHTR12 is dated March 29, 2012 and was prepared by AMC Consultants Pty Ltd in Adelaide, Australia, a Qualified Person as defined in National Instrument 43-101 ("NI 43-101").
Shivee West
Entrée continues to explore its adjacent 100% owned Shivee West property. The 2011 work program for Shivee West resulted in the discovery of a new gold zone (the Argo Zone) and the property remains highly prospective for additional discoveries.
Of significance on the Argo Zone:
・ Surface sampling returned two separate high-grade surface chip samples averaging 42.4 g/t gold over 4 metres and 19.3 g/t gold over 3 metres respectively.
・ Reverse circulation ("RC") drilling intercepts include 2.21 g/t gold over 3 metres (hole ending in mineralization), 9.32 g/t gold over 2 meters, and 2.08 g/t gold over 8 metres.
・ Mineralization is hosted in quartz-veined felsic volcanic rocks associated with a 2.5 kilometre long magnetic low.
…
Corporate Highlights
* Completion of a marketed financing for total gross proceeds of approximately US$15.7 million, including exercise of the over-allotment and exercise of Rio Tinto's pre-emptive rights.
* Sale of asset backed securities for gross proceeds of approximately US$2,600,000.
* Sale of the Togoot license to a private Mongolian company for cash consideration of approximately US$1,500,000.
* For the three months ended December 31, 2011, net loss decreased to US$4,673,755 compared to a net loss of US$7,942,711 in the three months ended December 31, 2010.
* For the year ended December 31, 2011, net loss decreased to US$17,140,208 ($0.15 per share) compared to a net loss of US$20,069,408 ($0.19 per share) for the year ended December 31, 2010.
…
IVN closed +0.84% to C$15.69, +1.03% to US$15.74
Ivanhoe Mines Corporation Presentation, March 2012 - "Oyu Tolgoi: Countdown to Start-Up"
March 23, Ivanhoe Mines Limited (TSX:IVN, NYSE:IVN) --
Related:
Annual Information Form � Ivanhoe Mines, March 30
Oyu Tolgoi Project Integrated Development and Operations Plan Technical Report, March 2012 � Ivanhoe Mines, March 29
MSE Daily Market Update: MONGOLIA STOCKS FALL, LED BY TAVANTOLGOI, AFTER PASSING REGISTRATION DATE
30 Mar 2012 (BDSec) Tavantolgoi (TTL), the largest MSE-listed company in terms of market capitalization, plunged 12% to MNT 10,501 after passing its registration date (record date), even though the company has not officially announced its dividend payout.
Material Impex (MIE) tumbled 9% to MNT 2,001. Moninjbar (MIB) slipped 2% to MNT 196.
MSE Top 20 index suffered its sharpest daily fall in two months, dropping down 2.88%, following TTL's decline. However, only MNT 55.8 mln ($42.0k) of transactions have made during today's bourse. Today's winners were Darkhan Nekhii (12.6%), Khukh Gan (2.78%) and APU (1.60%).
Local News
The main constituent of inflation, meat prices are falling as greater supplies reach the market from herders.
"ADUUNCHULUUN" JSC DECIDED TO DISTRIBUTE DIVIDEND
April 2 (MSE) "Aduunchuluun" JSC's board of directors meeting had held on March 15 2012 and decided to distribute dividend of 45 tugrik per share to shareholders.
"KHYALGANAT" JSC DECIDED TO DISTRIBUTE DIVIDEND
April 2 (MSE) "Khyalganat" JSC's board of directors meeting had held on March 13 2012 and decided to distribute dividend of 148.32 tugrik per share to shareholders through 2011 operational profit and planned to deposit at shareholder's accounts at central depository of MSCH&CD Co., Ltd. They decided to make expire March 15 2012 as a registration day that make lists of existing shareholders who are eligible for dividend.
American Investment Consortium Launches for Mongolia
The Embassy of Mongolia in Washington, DC this week hosted the inaugural gathering of the Mongolian-American Investment Consortium (MAIC), whose goal is to leverage Western experience and capital to develop high potential business opportunities in Mongolia.
Washington, DC, March 31, 2012 --(PR.com)-- Projects initiated in financial services, precious metal mining and sustainable forestry.
The Embassy of Mongolia in Washington, DC this week hosted the inaugural gathering of the Mongolian-American Investment Consortium (MAIC), whose goal is to leverage Western experience and capital to develop high potential business opportunities in Mongolia. Technology CEOs and representatives of financial, NGO, and government organizations toasted the bright prospects for business partnership in Mongolia in diverse industries including financial services, mining, agriculture, transportation, telecommunication, and energy.
MAIC's honorary chairmanship rotates among the presidents and owners of consortium member companies. Dan Hodges, MAIC's first chairman and president of the Medusa Companies, stated, "There are tremendous opportunities available in Mongolia for dramatic growth in invested capital, together with a once-in-a-lifetime chance to help build the financial, industrial and core infrastructures of this sovereign nation with such a remarkably rich cultural heritage. We deeply appreciate and value the participation of all who join us to make a difference that benefits both the American and Mongolian people."
The executive director of the Ulan Bator office of MAIC, Munkhsaikhan Medree, will be responsible for receiving investment proposals from Mongolia and presenting them to interested consortium members. Medree said "We are currently building investment support for specific business plans in gold mining, sustainable forestry, and financial services. MAIC represents a new chapter in economic development with Mongolia because the expertise and interest are focused on specific initiatives that relate not only to natural resources, but to diverse entrepreneurial opportunities reflective of Mongolia's transformation. We are thrilled at the enthusiasm for participating in the blossoming of the Mongolian economy, especially when investor expertise offers the opportunity to leapfrog generations of old technology, such as in electricity generation and telecommunication."
Organizations in Mongolia submitting their business proposal and interested investors may contact MAIC through the website http://www.mongoliainvest.org.
Minister informed investors on energy sector
March 30 (news.mn) State Property Committee have informed investors who interested on construction of new power station. Last year State Property Committee announced bid on new power station.
D.Zorigt, Mineral and Energy Minister briefed investors about energy sector current situation and introduced a new energy projects which Mongolian government preparing to realize.
Behre Dolbear: 2012 RANKING OF COUNTRIES FOR MINING INVESTMENT WHERE "NOT TO INVEST"
Environmentalists protest nuclear plant construction in Mongolia
ULAN BATOR, March 29 (Xinhua) -- A Mongolian environmental group staged a protest Thursday over the government's plan to build the first nuclear power plant in the uranium-rich country.
More than 100 people gathered in Sukhbaatar Square in central Ulan Bator, holding posters and shouting slogans in the cold and snow.
Mongolian Environmental Protection Organizations Federation president J. Batbold demanded the parliament annul the nuclear energy law adopted in 2009, drop the power plant plan and suspend the issue of a uranium mining permit.
The government plans to start construction of the plant in 2021. The country has abundant uranium reserves, estimated at 1.4 million tons.
Batbold also asked the government not to accept nuclear waste, which has been a sensitive issue since widespread local media reports last year, denied by the government, that Mongolia was receiving nuclear waste from Japan and the U.S.
One protestor told reporters the Fukushima nuclear power plant accident in Japan should raise doubts in the Mongolian government over its nuclear power plant plan. The government should give up the plan and instead work on renewable energy development, he said.
Archive exhibition held to mark 25th anniversary of Mongolia-U.S. ties
ULAN BATOR, March 30 (Xinhua) -- Mongolia and the United States jointly launched an archive exhibition on Friday to mark the 25th anniversary of diplomatic relations between the two countries.
Speaking at the opening ceremony of the exhibition, Mongolian Deputy Foreign Minister G. Tenger said since the two countries forged diplomatic ties in 1987, cooperation in the fields of politics, economy, trade, investment, culture, education and defense have developed, and the bilateral relations have been upgraded to a comprehensive partnership.
He hoped the exhibition will introduce to the public the development of cooperation between Mongolia and the United States.
U.S. Ambassador Jonathan Addleton said his country and Mongolia shared a long history of friendship and exchange, and their relations are also marked by the development of partnerships involving commercial ties and people-to-people exchange.
The exhibition is aimed at promoting understanding and friendship between the two peoples by displaying historical documents, photographs and documentaries.
Mongolia and the United States established diplomatic relations on Jan. 27, 1987.
More land to be privatized
March 30 (news.mn) By the parliament decision every citizen owns 0.07 ha land free of charge. Citizens can apply for land till next year. But citizens complaining that no more land for privatization around Ulaanbaatar. City Land Office informed will offer more land in Bagakhangai, Nalaikh, Gachuurt, Bayanzurkh and Songinokhairkhan district.
Bagakhangai district will receive citizens request from May 1 told City Land Office official.
With Mongolia Talent Network achieve your potential
March 28 (information-online) Mongolia Talent Network enjoyed the launch of Oxford Business Group's Mongolia 2012 report at the Blue Sky Tower. The report is intended to share some of the context of this market with the global community so that confidence in Mongolia's future continues to build and opportunities for Mongolians continue to grow in their home country. This is particularly true in terms of Mongolian career opportunities.
From our perspective, there was no unexpected news but it does reinforce a lot of the good news as well as some of the critical success factors for the coming years. The continued economic success of Mongolia will also continue to create job opportunities in Mongolia for both Mongolians and expats.
We wanted to share the headlines as they were reported in case they're of interest.
* 10-20% GDP growth expectation restated for 2012-15
* 30% of GDP will be from OT by 2020, reinforcing the need for economic diversification
* The group see continued opportunities in construction but see the real excitement in energy sector (particularly renewable energy like wind and solar), agriculture (which I didn't realise still represented 30-40% of Mongolian jobs ), and tourism, as well as domestic consumption as wealth increases.
* The key challenges that they noted were the impact of capital inflow on domestic prices and the subsequent inflationary pressure, the challenges of setting the right fiscal policy, and the ability to ensure distribution of wealth.
The future for Mongolia is not without challenges, but everyone is aware of those challenges and doing their utmost to address them.
The future is very bright indeed and, as always, if anyone is interested in exploring what Mongolian job opportunities would be available to them in Mongolia please contact me at AdrienneYoungman@MognoliaTalentNetwork.com or register your CV on our website at www.MongoliaTalentNetwork.com
We are also very happy to provide career advice to anyone interested in searching for Mongolian jobs or to any hiring managers looking hiring managers we can advise on searching for employees in Mongolia.
Misc
All Aboard for Mongolia
Taking on Genghis Khan's land, with a journey on one of the world's most storied train lines
March 30 (WSJ) The Trans-Mongolian Railway leaves in the dead of night.
It departs from an ornate station in Irkutsk, Russia, where wooden houses built by exiled 19th-century intellectuals mingle with blocky Soviet-era buildings. It winds past Russia's vast Lake Baikal, traverses the Mongolian grasslands that Genghis Khan rode his horsemen across on the way to Europe and rattles through the Gobi Desert into China, pulling into Beijing 1,820 miles later.
It is one of the most storied train rides in the world, a journey through raw landscapes and historic realms. For decades, I'd longed to experience it for myself.
I first fell under the spell of Genghis and his Mongol horde―a rapid-strike force of mounted warriors who invaded civilizations as far apart as Baghdad and Budapest―more than half a century ago, when I studied with Francis Cleaves, the renowned translator of "The Secret History of the Mongols." Into the 1980s, my dream of visiting was all but impossible, with Khan's land run by one of communism's most brutal Stalinist dictatorships. But last year, with Mongolia moving toward a full democracy, the time finally seemed right for a rail trip with my wife through parts of Russia, Mongolia and China.
I knew the five-week expedition, involving multiple legs, odd stops and extended side trips, would be a test of our travel mettle. So, it turned out, was the planning―few travel agents could make arrangements across three countries with different languages, cultures and bureaucracies. All told, it took five months to arrange our visas, guides, hotels and transportation.
We had decided to embark in Irkutsk, where the also-famous Trans-Siberian Railroad stops en route from Moscow to Vladivostok, connecting to the Trans-Mongolian that runs south toward Ulaanbaatar. At 10 p.m., we appeared at the bustling station. As our guide checked the track, we dodged the locals pushing through the doors, laden with all manner of bundles and packages.
"Irkutsk-Pekin" was stenciled on the side of our train in Cyrillic letters, but otherwise it was unromantic-looking. The inside, even in first class, was clean but not much more inspiring. Our compartment had a window, a fold-down table and simple berths for four. At each end of the car was a tiny metal room with a toilet that flushed waste through a trap door.
Our guide glanced around our spartan quarters and pronounced us "safe" before taking off. What that meant wasn't quite clear―we'd been warned that passengers could easily become victims of brigands, their luggage, cameras, wallets pilfered as they slept or took breaks on platforms. But more pleasant company soon appeared. A conductor (they are invariably women) clad in a blue skirt, white shirt and apron poked her head into our compartment and asked if we'd like some tea. Darting down the corridor to a wood-fired samovar tucked in a cupboard, she reappeared moments later carrying glasses in filigreed silver holders and tea bags of Siberian milk tea, thick, fragrant and soothing.
We claimed the two lower bunks just before a third passenger arrived―a rotund Mongolian lady carrying bulging shopping bags. She plopped them on the top bunk and sat next to us, smiling but clearly unhappy. A few minutes later, she disappeared, then returned for her bags. She'd negotiated a bottom bunk next door. Helping her with her purchases, I discovered they consisted of large watermelons she'd bought in Siberia and was planning to sell for a handsome profit in Mongolia's capital, where fruit is scarce and expensive.
Precisely on time, the train gave a shiver and started moving into the countryside, chugging around the southern end of Lake Baikal. In June we'd have been treated to spectacular views of the world's deepest lake, but it was September and the sun had set 90 minutes earlier. Gazing out at the darkness, we nibbled at the food we'd brought―granola and packaged cheese from home; sausage, black bread, chocolate and shelf-stable milk from Irkutsk. Lulled by the rocking, we fell asleep in our bunks, though not before wedging a backpack against the door.
Dawn broke as we hit the border. At Naushki, on the Russian side, a guard with a German shepherd briskly announced himself at our compartment. We briefly panicked that the canine might take a shine to our sausage, but the guard curtly checked our papers and left. Just across the barbed-wire border in Sükhbaatar, friendlier Mongolian guards glanced at our passports. Mongolia is a nation trapped between superpowers―as one shepherd told us, "We may hate the Russians, but we fear the Chinese." It's no longer either nation's poor cousin, thanks to its vast mineral resources, though you might not know it from a landscape that was so empty, it seemed Genghis could gallop past at any moment.
Riding the Trans-Mongolian felt like being on a milk train. It clicked and swayed along on tracks that have seen better days, making frequent stops that allowed us to quickly explore tiny depots in towns surrounded by wide grasslands.
After two more nights, the Trans-Mongolian pulled into the capital of Ulaanbaatar and we set off for three weeks of exploring―to the nearby Ganden Buddhist monastery, northeast to Hinti province for fly fishing, south to the Gobi Desert. We bounced over the steppes, sleeping in gers that were warmed only by a stove and stood a half-mile from the nearest outhouse. We awoke to stunning sunrises over flat, hardscrabble earth. The simple lives of the nomads―many possess a few pots, some basic clothes, a tiny, solar-powered TV set and sheep―reminded us just how few belongings people really need.
Early one evening we re-boarded the Trans-Mongolian in Ulaanbaatar's dim central station (the lights go on after night truly sets in, to save electricity). On this leg, the train didn't boast austere Russian fittings but a seedy, old-word décor―wood-paneled walls, fringed table covering, an Oriental carpet.
We entered the 500,000-square-mile Gobi Desert around dawn. Except for a few 20-story-high dunes on the far western fringe, it's a flat wasteland of scrub brush and sandy soil, and on the Mongolian side there is little to see. But when we passed into China's Inner Mongolian Autonomous Region, brand-new towns began to fill the landscape. Wind farms whirring with hundreds of turbines. And, despite the ostensibly friendly relations with Mongolia, on sidings were flatbed trains loaded with tanks pointing north toward the border.
Before we could go much further, our train had to undergo a process known as "changing the bogeys." The distance between the rails changes between Mongolia and China. So at the border, each car is lifted off the Mongolian bogeys and Chinese ones are slid into place. The process gave us about an hour to explore the Chinese border town―a single street lined with stall-like shops selling spices, rice and clothing. I had to restrain my wife from adding a load of fragrant foodstuffs to our already backbreaking luggage. Then we got back on the train, heading south toward the Inner Mongolian capital of Hohhot.
We arrived in late evening, and drove through the brilliantly lit streets. Hohhot, the regional capital, has a large Muslim population, and our guide pointed out minarets, including a hulking structure that he said was a mosque under construction. The next day we learned that many buildings sporting minarets are department stores that authorities hope visitors will take for mosques. Somehow, it felt like being back in Russia under the kommissars―or for that matter, China under Mao―except that the mall at our hotel boasted Louis Vuitton, Ermenegildo Zegna and Bose boutiques.
We boarded the Trans-Mongolian for our final leg at Hohhot's chaotic central station, where we were nearly engulfed in the masses of people. There were two mates in our compartment. One, a student, slept the entire ride. The other, a garrulous Chinese entrepreneur, regaled us with tales of his mine safety invention, his business and his lpans to emigrate to Vancouver.
We'd heard it was dangerous to leave our compartment for a moment, since you risk finding locals without first-class tickets in your place. But we encountered no thieves on our trip―only people who were friendly, generous and curious about us, invariably the only Americans around. In fact, the most thrilling part of our trip wasn't the ride itself, but the kaleidoscope of humanity we encountered, from Scandinavian missionaries to students from Eastern Europe to watermelon vendors on their way to Ulaanbaatar.
We pushed through more densely populated areas, stopping at small towns during the 10-hour trip to the capital. In the early morning we passed canyons and rivers, craggy hills, even a glimpse of the Great Wall of China, designed to keep out the Mongols with whom we'd been consorting.
Finally we pulled into Beijing West Railway Station. As we disembarked, I breathed a sigh of relief and accomplishment. Then we humped our bags up a steep staircase, and into a maelstrom of taxis and people.
---
"Mogi" Munkhdul Badral
Senior Client Manager / 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.
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.
No comments:
Post a Comment