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Source: Mongoliamatters.comThe hotel chain Shangri-La is coming to Mongolia. It was announced somewhere last year, and that might be good news for Mongolia. But, the bad news is where and how it will be build. See image on the right. The construction has recently started next to the opera building at the Sukhbaatar square. Although Chris Miller informed us of a more amusing feature of the hotel, the location and the huge size make it hard to see this a contribution to Ulaanbaatar.
Publication date: Friday, September 30. 2006
http://english.people.com.cn/90001/90776/90883/6956834.htmlSpeaker of the Mongolian parliament Khural Demberel Damdin on Monday met a delegation led by Yuan Chunqing, governor of Shanxi province of of China, the parliamentary press and information service said.
Demberel said that he was satisfied with the positive development of the relation and cooperation between Mongolia and China. He said that strengthening the mutual trust between provinces of Mongolia and China carries an important significance in the ties of the two countries.
Yuan said that the delegation of Chinese business representatives arrived in Mongolia with a key aim to strengthen the mutual understanding and friendship. There is a great potential for Mongolia and Shanxi to develop cooperation in trade and tourism.
He said he hoped the two sides could sign some agreements on cooperation.
Yuan and his delegation arrived in Ulan Bator on Sunday for a three-day visit.
http://en.rian.ru/russia/20100504/158865515.htmlThe government of Mongolia could soon decide on establishing a joint venture with Russia to develop a Mongolian uranium deposit, the head of the Russian civilian nuclear power corporation, Rosatom, said on Tuesday.
At a meeting with Russian Prime Minister Vladimir Putin in the Black Sea resort of Sochi, Sergei Kiriyenko said that Russia had signed an intergovernmental deal on the uranium joint venture early in 2009 but the project stalled due to the change of government in Mongolia.
"Already after the election, we signed an agreement with the new government and in January signed a specific protocol. The government of Mongolia has made a decision on the Dornod-uranium deposit. This deposit is in the ownership of the government of Mongolia," Sergei Kiriyenko said.
Kiriyenko said that Russia had transferred all the constituent documents on the joint venture to the Mongolian side and the secretary of the Mongolian Security Council confirmed to Rosatom that a final decision on contributing the deposit to the joint venture would be made soon.
Kiriyenko said work on the deposit could be launched quickly as the deposit was located 300 km (186 miles) from Russia's neighboring Chita Region where a mining enterprise was situated and whose specialists and equipment could be used in the uranium deposit development.
Rosatom increased production of uranium by 25% in 2009 and has set the task of increasing uranium output by at least 11% in 2010, Kiriyenko said.
http://www.marketwire.com/press-release/Erdene-Provides-Mongolia-Coal-Project-Update-Regional-Coal-Exploration-Drill-Program-TSX-ERD-1257160.htmHALIFAX, NOVA SCOTIA--(Marketwire - May 10, 2010) - Erdene Resource Development Corp. ("Erdene") (TSX:ERD) is pleased to provide an update on coal exploration activities in Mongolia.
"Over the past few years our company has been at the forefront of Mongolia coal exploration. During that time, we have evaluated every known coal occurrence in Mongolia and completed over 250 site evaluations. Through that process, we have narrowed our focus to certain prospective areas and potential acquisitions that are now the target of our 2010 field exploration activities and additional due diligence projects." said Peter Akerley, President and CEO of Erdene. "With China now exceeding three billion tonnes per year of coal consumption and imports growing significantly, Mongolia is experiencing rapid development in the coal mining sector. Erdene is well positioned to be a part of that growth through its direct holdings, royalty interest and partnerships."
2009 and 2010 Coal Exploration Programs
In 2009, Erdene conducted regional scale geological mapping programs in Southwest and South Mongolia covering over six million hectares of ground within prospective high quality thermal and metallurgical grade coal basins. In addition, Erdene conducted comprehensive due diligence on several coal deposits and companies with prospective licenses, including the Mongolian government-owned Tavan Tolgoi coal deposit, a potentially five billion tonne thermal and coking coal deposit, as preparation for a possible tender bid submittal.
The 2009 mapping program successfully identified several new prospective coal basins and coal occurrences for detailed follow up work and formed the basis for a 404,937 hectare application program, comprising six applications in Southwest Mongolia. The six applications lie within large unexplored basins that contain numerous coal occurrences up to 11 metres in true thickness extending over areas up to 20 km in length. All applications have recently been approved by the Mongolian Cadastre Office and are the focus of an exploration program that includes a ground-based geophysical program and a two to three thousand meter exploration drill program. This exploration drill program commences in May and will continue throughout the 2010 field season.
A significant part of the 2010 field season will also focus on targets in Western and Eastern Mongolia where new transportation links are planned in areas with limited, previous coal exploration. These targets are considered to have very good potential for metallurgical and high quality thermal coal discoveries. Erdene has been awarded one license in the eastern part of the country with license applications pending in both regions. Erdene is also conducting due diligence evaluations on newly discovered coal deposits for potential joint venture or purchase opportunities.
In conjunction with the 2009 regional mapping program, Erdene completed comprehensive property and company based evaluation programs within several, prospective metallurgical grade coal basins throughout Mongolia, including a detailed review of coal acquisition opportunities in the South Gobi Coal Basin. Erdene plans to continue regional property evaluations in 2010 as well as increased license staking and acquisition activity to identify and secure large-tonnage metallurgical, high-quality thermal coal deposits. A budget of USD$1.9 million is in place for 2010 coal exploration programs in Mongolia; these programs are fully funded by Xstrata Coal Canada Ltd. through the Erdene-Xstrata Coal Alliance. Xstrata Coal Canada Ltd. has the right to earn a 75% interest in any of Erdene's coal projects in Mongolia by funding through to completion of feasibility.
Galshar Coal Project
Erdene has a royalty interest in three coal exploration licenses (Galshar property) located in Eastern Mongolia. In December 2008, Erdene optioned its 100% interest in the Galshar property to a private Mongolian company and received cash consideration of USD$100,000 with additional payments of USD$100,000 remaining. Erdene is also entitled to a royalty of USD$1.50 per tonne of coal for each tonne of the first five million tonnes of coal mined from these properties and a royalty of USD$ 0.75 per tonne for any additional tonnes of coal mined from these properties in excess of five million tonnes.
Mongolia-China Coal Market Background
Mongolia borders China, the largest coal consuming nation, which is reported to have consumed 3.1 billion tonnes of coal in 2009 with imports expected to double in 2010 to 126 million tonnes. Mongolia provides many large open pit deposits and vast unexplored basins, whereas 80% of China's coal mines are underground with 90% of their high quality resources located below 400 metres, particularly their metallurgical grade resources. Currently, more than one-half of China's coal imports are sourced from Australia, Indonesia and Vietnam. In January 2010, China sourced coal shipments from as far away as Colombia. The Erdene-Xstrata Coal Alliance is positioning itself to become a major participant in the coal industry in Mongolia.
J.C. (Chris) Cowan, P.Eng. (Ontario), is a Qualified Person as that term is defined in National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.
Erdene Resource Development Corp. is a diversified resource company with multiple projects at various stages of development from exploration to production; all projects are focused on high-growth commodities. These projects include a 25% interest in Xstrata Coal Canada Ltd.'s Eastern Canadian Donkin Coking Coal Project, a 100% interest in the large tonnage Zuun Mod Molybdenum project in Mongolia, a royalty interest in a developing construction material project in the United States as well as a 65% equity interest in TSX-V listed Advanced Primary Minerals Corporation. Erdene has a current working capital position of approximately $12.3 million, including that of its controlled subsidiary APM, with 89,230,877 common shares issued and outstanding and a fully diluted position of 93,084,877 common shares.
Certain information regarding Erdene contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Erdene believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. Discussion of the various factors that may affect future results is contained in Erdene's annual information form dated March 29, 2010, which is available at www.sedar.com. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.
http://namnewsnetwork.org/v2/read.php?id=120081SRI NAGAR, May 12 (NNN-PTI) -- A Mongolian delegation today met Jammu and Kashmir state Chief Minister Omar Abdullah here and discussed cooperation in the areas of tourism, education and culture.
The two-member delegation led by the country's Ambassador to India Voroshilov Enkold told the chief minister that they were looking to enhancing tourism relations.
"We are looking forward to enhance tourism relations with Jammu and Kashmir," Enkold told Abdullah during a 40-minute interaction, an official spokesman said.
"The state offers potential in the fields of tourism, education and culture and the government is keen to upgrade tourist facilities..." the chief minister told the delegation.
The delegation including Governor of UVS province of Mongolia Tsachikher Erdenesuren is here to study the areas of cooperation between both sides, the spokesman said.
The delegation is also visiting Drass and Leh in Ladakh region. They will witness a polo exhibition match at Drass.
http://english.people.com.cn/90001/90776/90883/7005889.htmlChinese Premier Wen Jiabao's upcoming official visit to Mongolia will significantly push forward the China-Mongolia good-neighborly partnership of mutual trust, Chinese Ambassador to Mongolia Yu Hongyao said.
The visit, to take place on Tuesday and Wednesday, will be the first by a Chinese premier in 16 years and also the first by Wen as premier.
It is expected to further boost the mutual understanding and trust between the two peoples, as well as bilateral exchanges and cooperation in various fields, Yu told Xinhua in a recent interview.
During the visit, Wen will hold talks with his Mongolian counterpart Sukhbaataryn Batbold, and meet President Tsakhia Elbegdorj and Damdingiin Demberel, chairman of State Great Hural of Mongolia, to exchange views on bilateral relations as well as international and regional issues of common concern.
During Wen's stay, both countries will also ink a variety of trade and economic cooperation agreements.
Chinese Premier Wen Jiabao (L) shakes hands with his Mongolian counterpart Sukhbaataryn Batbold in Ulan Bator, Mongolia, June 1, 2010. (Xinhua/Pang Xinglei)
Visiting Chinese Premier Wen Jiabao and his Mongolian counterpart Sukhbaataryn Batbold agreed Tuesday to deepen bilateral cooperation in various areas including energy, trade and environmental protection.
China and Mongolia should strengthen exchanges and cooperation and advance the partnership of good-neighborliness and mutual trust between the two countries, Wen said in talks with Batbold in Ulan Bator, Mongolia's capital.
China is ready to maintain exchanges of high-level visits with Mongolia, said the Chinese premier, who arrived earlier in the day for a two-day official visit.
He said the two nations should strengthen mutual political trust and continue to extend firm support to each other on major issues concerning their respective core interests.
Wen also said the two sides should adopt practical measures to deepen their trade and economic cooperation and make efforts to promote cooperation in mineral resources development, infrastructure construction and finance.
China is also willing to boost cooperation with Mongolia in energy, environmental protection and transportation, he added.
During the talks, the Chinese premier pledged continued support and assistance for Mongolia's economic and social development.
He suggested that the two sides launch a feasibility study at an early date on a China-Mongolia free trade area (FTA).
http://www.businessweek.com/news/2010-06-18/mongolia-seeks-investors-in-10-billion-mine-building-update1-.htmlMongolia is seeking investors for a $10 billion desert industrial complex that will meet rising Asian demand for coal and copper from some of the world’s largest untapped mineral resources.
A copper smelter, oil refinery, power plants and chemical coking facilities are planned at Sainshand in the Gobi desert to do value-added processing for the Tavan Tolgoi coking coal deposit and Oyu Tolgoi copper mine, said Ganbat Chuluunkhuu, a government adviser and former Wall Street financier with Commerzbank AG.
The Mongolian government wants investors to fund as much as 40 percent of the project that will build 1,000-kilometers (650 miles) of railroads through south Gobi and eastern Mongolia, connecting Tavan Tolgoi to China and Russia, Chuluunkhuu said in an interview in the capital city Ulan Bator.
“Mongolia can become the Kuwait of central Asia,” Chuluunkhuu said yesterday. “All the resources are there, and all the buyers are there. The only missing part is to get everybody organized, prepare all the documentation that meets international practice. It’s doable.”
Tavan Tolgoi holds about 6 billion metric tons of coal in the deserts of southern Mongolia, making it one of the world’s largest unexploited reserves of the fuel.
Rio Tinto Group and Ivanhoe Mines Ltd. are developing Oyu Tolgoi, which London-based Rio has called the world’s largest copper resource. It may operate for as long as 30 years and generate between $30 billion and $50 billion in revenue, Mongolian President Tsakhia Elbegdorj said in September.
Mongolia, a landlocked country sandwiched between China and Russia, is seeking investors as part of a national development strategy that aims to grow its economy by 14 percent between 2007 and 2015, bringing gross domestic product per capita for the nation’s 2.7 million people to $5,000 from the current $1,900.
That would raise GDP per capita to above the level of countries including Thailand, Maldives, and China, assuming the same growth rate for other Asian nations, according to Chuluunkhuu, adviser to the Ministry of Road, Transportation, Construction and Urban Development of Mongolia.
Mongolia targets another 12 percent economic growth from 2016 to 2021, and GDP per capita of $12,000, surpassing Malaysia, and putting it in the same league as South Korea and Taiwan, Chuluunkhuu said.
The World Bank estimated the value of Mongolia’s GDP in 2008 was just $5.3 billion. Mongolia is rated B1 by Moody’s Investors Service, four levels below investment grade and on par with Fiji and Papua New Guinea. Standard & Poor’s rates the nation BB-, the third-highest non-investment ranking.
Mongolia plans to fund 60 percent to 70 percent of the project through debt financing, and seeks foreign and local equity sponsors, including private equity, pension funds and institutional investors for the remaining 30 percent to 40 percent, according to Chuluunkhuu.
About 40 percent of the funds will finance the infrastructure part of the plan, and the rest will be used for industrial facilities.
Five railways will be built. One will connect Tavan Tolgoi, Sainshand, to an existing railroad to Russia, while another four will run through China.
“If we don’t get international investors, the project can’t start off,” Chuluunkhuu said.
Hong Kong Exchanges & Clearing Ltd. Chief Marketing Officer Lawrence Fok, who was in Ulan Bator for a forum on corporate capital raising this week, says Mongolia can be attractive to investors.
Mongolia has “the story about China’s economic growth and its increasing demand for resources,” Fok said in an interview. “Mongolia and other resource-rich countries share the same characteristics of having a small population and massive resources, which would benefit from China’s economic growth and its rising demand for resources.
Mongolia is seeking bids from engineering and construction companies to do “master planning” for the industrial complex and railroads as the project’s management consultants, he said. A tender notice will be published by June 25, and final proposals are due by July 30. Selection of the project manager will be completed by Aug. 20.
If the project’s master plan, expected to be completed by April 2011, proves to be economically viable, the government wants to start construction in the second half of next year, Chuluunkhuu said. Building will take two to three years, with production estimated to begin in 2014, starting to generate economic benefits from 2017, he said.
Chuluunkhuu, a Mongolian native who was invited by the government to return to his country for the project from Wall Street in July 2009, worked for six years in structured commodity and project financing with Commerzbank AG in New York.
Mongolia is trying to reduce its reliance on mining, which now accounts for about 65 percent of its GDP. Without industrialization, it is estimated mining will make up 95 percent of the nation’s economy by 2021, as compared with 63 percent if the expansion plan goes ahead, the adviser to the minister said.
Apart from saving the Mongolian economy from the risk of being overly dependent on mining and subject to fluctuations in commodity prices, the industrialization also will create about 78,000 jobs between 2010 and 2021, according to Chuluunkhuu. Foreign workers will be needed at the initial stage.
http://english.peopledaily.com.cn/90001/90776/90883/7069889.htmlPrime Minister Batbold Sukhbaatar said Friday that his country wants to develop ties with China's Xinjiang Uygur Autonomous Region.
Enhancing cooperation at the border areas of the two countries plays an important role in widening bilateral trade and economic cooperation, and Mongolia has been paying attention to developing its relations with the border areas and autonomous regions of China, the prime minister said.
Sukhbaatar spoke during talks with a Chinese delegation led by Arken Imirbaki, chairman of the Standing Committee of the Xinjiang Regional People's Congress.
Mongolia and China have 13 ports at the border, four located in Xinjiang.
Sukhbaatar said that Mongolia aims to resolve the questions concerning infrastructure, industry and services at the ports.
He said that Mongolia wants to boost ties with Xinjiang in developing agriculture, animal husbandry, ancillary sectors and working industries.
Imirbaki said that he values development of the bilateral ties. He said that the Xinjiang region is ready to develop together with Mongolia.
http://www.financeasia.com/News/228871,mongolia8217s-first-boutique-investment-bank-adds-to-its-team.aspxOscar Mendoza has joined Mongolia’s first boutique investment bank, Frontier Securities, as co-chief operating officer. Mendoza will be responsible for the day-to-day management of Frontier Securities and for setting and executing the firm's global strategy.
"Oscar is an experienced international financial markets professional with true passion for (the markets). He is a respected figure in the frontier arena," said Masa Igata, chief executive officer of Frontier Securities. "Oscar's hiring reaffirms Frontier Securities' ongoing commitment to the cross-border business in the frontier market of Mongolia. We look to him to provide industry leadership and to help us grow our business and further integrate our cross-border solutions into our broader frontier financial markets solutions sets".
Frontier Securities is based in Ulaanbaatar and stakes the claim as Mongolia’s first boutique investment bank. Its stated goal is to provide clients with the best of both worlds: an investment bank with a local presence and a firm with international financial markets expertise, particularly in Hong Kong, Tokyo and Singapore.
Mendoza has an MBA from the International University of Japan and is billed by the firm as an executive with "years of experience".
http://english.peopledaily.com.cn/90001/90777/90851/7122780.htmlMongolia hopes to move its comprehensive partnership with Japan to a new level, said Mongolian President Tsakhia Elbegdorj on Monday.
"Loans and assistance from the Japanese government and people have played an important role in strengthening the democracy and reform of Mongolia," said the president during a meeting with visiting Japanese Foreign Minister Katsuya Okada.0 He thanked representatives from both countries for their efforts on an economic partnership agreement, which, if signed, will be the first of its kind that Mongolia has ever had with a foreign country.
Okada said the agreement will enhance not only the economic relationship, but also cooperation in all aspects between the two countries.
Statistics from Japan's Foreign Ministry show that Japan's economic cooperation with and aid to Mongolia has reached about 2.18 billion U.S dollars in 2008, accounting for approximately one third of total aid for Mongolia by foreign countries and international organizations.
http://www.nhandan.com.vn/english/business/300810/business_vn.htmVietnam and Mongolia have agreed to establish a business relationship, aiming to reach US$12 million in two-way trade by 2012.
The agreement was made during the 14th session of the Mongolia-Vietnam Inter-governmental Committee on economic, trade and scientific-technological co-operation held in Ulan Bator from August 26-29.
The Mongolian side at the meeting was led by Tunjin Badamjunai, Minister for Food Agriculture and Light Industry and Chairman of the sub-committee. The Vietnamese side was headed by Ho Xuan Hung, Deputy Minister of Agriculture and Rural Development and Chairman of the sub-committee.
The two sides reviewed the implementation of the agreements reached at the previous session, informed each other about socio-economic development in their respective countries, and set an orientation for future fundamental co-operation.
They stressed that during the upcoming visit to Vietnam by the Mongolian Chairman of the Mongolian National Assembly in December, the two sides expect to sign an agreement on co-operation in education and training for the 2011-2005 period and a protocol on hygiene and food safety quarantine for meats.
The Vietnamese delegation was received by Mongolian Deputy Prime Minister Miyegombo Enkhbold, who stressed both countries’ strength in agriculture as well as opportunities for co-operation in health care, education, food, agriculture, light industry, mining and energy.
He said he believed that Vietnam as ASEAN Chair will support Mongolia’s participation in the East Asian Summit meeting and in ASEAN activities.
Two-way trade between Vietnam and Mongolia reached US$9.8 million in 2009.
Courtesy of International Republican InstituteAre Mongolians happy with the progress being made, content with the opportunities to access their representatives?
According to a May 2008 poll conducted by the International Republican Institute (IRI), only 35 percent of respondents were satisfied with their representation in the national parliament, with only slightly more – 39 percent – who believed such representation was effective.
The presence of such a gap between those who govern and the governed means there could be no better time for redoubling efforts on good governance in Mongolia. The country is at a critical juncture with its mining projections – the resource boom will hit a few years from now, leaving time to plan in advance to avoid the pitfalls of becoming a typical rentier state that absconds from any meaningful accountability to its citizens. If not planned for appropriately, rapid resource development can have a negative impact on democracy (e.g. see the growth of non-fuel mineral wealth in countries such as Angola and the Democratic Republic of the Congo).
The strengthening of governing institutions is critical in preventing such a downward spiral.
Improved governance is how Mongolia can not only avoid a backlash in its revenue surge but also how it can take its democracy to the next level. In the last five years, IRI has worked with State Great Hural and parliamentary district staff in developing and strengthening accountable and transparent governance practices and institutions. More recently, this work has carried over into several provincial areas, with a focus on enhancing constituent outreach throughout all levels of government.
What little local level authority exists in Mongolia risks further impairment once the mining revenue streams in and these officials (and subsequently, their constituents) are left out of the process. Decentralizing power to these lower levels will not only improve the chances of this revenue filtering to the local level but will also develop more and better connections between citizens and their representatives.
Parties and government representatives recognize the need to become focused on connecting with citizens. Creating bridges between constituent groups, political parties, local governments and the national parliament will facilitate the kind of two-way interactions critical in any well-functioning democracy.
Mongolia already stands as a positive case study of democracy in Asia, but the challenges that lie ahead will test the country’s aptitude in governance. We would all be wise to take notice and continue supporting the Mongolian people’s ongoing commitment to democracy.
http://namnewsnetwork.org/v2/read.php?id=133113ULAANBAATAR, Sept 14 (NNN-KUNA): Kuwait Capital Governor Sheikh Ali Al-Jaber Al-Sabah met here on Tuesday with Mongolian Parliament Speaker Demberel Damdin and Mongolian Prime Minister Sukhbaataryn Batbold discussing aspects of the two countries ties.
During his visit, Sheikh Ali yesterday held talks with Deputy Governor of the Mongolian capital city of Ulaanbaatar and discussed joint cooperation. The two sides also signed a twinning agreement between the two governorates.
The meeting was attended by Kuwait's ambassador to Mongolia Moubarak Al-Suhaijan, Kuwait's Municipality's Director General Ahmad Hamad Al-Subeeh, Director of the Department of Antiquities and Museums in the National Council for Culture, Arts and Literature Emad Al-Zayed, Director of Public relations in the Chamber of Commerce and Industry of Kuwait Fahad Al-Yousef, Director of Public Relations in Kuwait city Mohammed Al-Failakawi.
Following the signing agreement, Sheikh Ali affirmed that the agreement would help strengthen ties between the two countries.
http://www.bloomberg.com/news/2010-09-27/mongolian-mining-increases-price-range-of-h-k-ipo-update1-.htmlMongolian Mining Corp., the country’s biggest privately owned coking coal producer, boosted the amount it’s seeking from an initial share sale in Hong Kong as demand for stock rises in a market trading at the highest level in more than eight months.
The company and its shareholders are targeting as much as HK$5.44 billion ($701 million) from the sale of 719.4 million shares at HK$6.48 to HK$7.56 apiece, according to terms for the sale. The amount is 3 percent above the maximum HK$5.28 billion sought under the previous price range.
Mongolian Mining’s IPO will be the biggest on record by a company from the landlocked Asian nation, according to data compiled by Bloomberg going back to 1999. The stock being sold represents about 20 percent of the company, according to initial terms for the transaction, which would give Mongolian Mining an estimated market capitalization of $3.5 billion.
“Receptions should be positive for such stocks as coking coal is scarce compared with thermal coal,” said Lawrence Lau, an analyst of Bank of China (Hong Kong) Ltd. “The market sentiment has improved with people taking on more risk.”
Mongolian Mining is selling shares in Hong Kong where the Hang Seng Index has surged 9.1 percent from a six-week low on Aug. 31 amid rising confidence in the global economy. The gauge gained 1.1 percent as of 2:41 p.m. today, set to close at the highest level since Jan. 11.
Citigroup Inc. and JPMorgan Chase & Co. are managing Mongolian Mining’s IPO. The shares are being priced at 11.6 times to 13.6 times the company’s forecast 2011 profit and 7.6 to 8.9 times its estimated 2012 earnings, according to the term sheet obtained today.
Of the proceeds, about 50 percent will be used to improve transport links and infrastructure, Chief Executive Officer Battsengel Gotov told a press briefing in Hong Kong today. About 40 percent will go toward exploration and acquisitions, he said.
Production at the company’s pit at Ukhaa Khudag was 1.8 million metric tons in 2009 and will likely rise to 3.8 million tons this year, Gotov said. The company plans to raise production to 15 million tons a year by 2013 to meet increasing demand for coking coal among China’s steelmakers, he said.
Mongolian Mining is based in the Tavan Tolgoi area, south of Ulaanbaatar and about 240 kilometers (149 miles) from the border with China. Tavan Tolgoi holds about 6 billion metric tons of coal in the deserts of southern Mongolia, making it one of the world’s largest unexploited reserves of the fuel.
Previously, Mongolian Mining and its investors planned to sell shares at HK$6.29 to HK$7.34 apiece, according to last week’s term sheet.
http://www.toboc.com/tradenews/Japan-Trains-Eye-On-Mongolian-Rare-Earths-After-Spat-With-China/1564.aspxLast month's unofficial Chinese ban on rare earth shipments to Japan following a row over the detention of a Chinese trawler captain has alerted Japan to scramble for the critical minerals elsewhere. Last week both Japan and Mongolia, a prospective rare earth belt, have decided to conduct test drilling on potential sites in Mongolia in a bid to make the country a major sourcing destination for rare earths for Japan.
Rare earths comprising of 17 minerals are widely used in rechargeable batteries for electric and hybrid cars, advanced ceramics, magnets for cars, computers, DVD players, wind turbines, catalysts in cars and oil refineries, TVs, lasers, fibre optics, superconductors and space science.
While the US reduced mining for rare earth minerals in late 1970's owing to stringent disposal laws, China initiated mining projects at that point as it sat on one-third of world's rare minerals. As a result, China today supplies about 97 percent of the world's rare earth elements, and currently supplies about 96 percent of Japan's needs.
Although China claimed that it did not ban the exports of rare earth to Japan, the leading Japanese car manufacturers informed there were undue delays in shipments getting released from the Chinese ports. The Sino-Nipponese relations strained after the detention of a Chinese trawler captain whose boat collided with two Japan Coast Guard vessels off the disputed Senkaku Islands on Sep 7.
While Mongolian Prime Minister Sukhbaatar Batbold visited Tokyo last week, Prime Minister of Japan Naoto Kan said "Development of mine resources in resource-rich Mongolia will benefit both countries." According to Japanese government sources, the country is engaged in various programs to counter import of rare minerals from a principal single source. Besides Mongolian venture, assistance to rare earth mining projects in Kazakhstan, Vietnam and other countries are considered; and providing subsidies for the development of a new technology to reduce the use of rare earth elements in manufacturing.
http://www.ft.com/cms/s/0/a5202710-d0a6-11df-8667-00144feabdc0.htmlMongolia’s pitch to become the new frontier for metals and mining is facing renewed scrutiny from investors around the world as a Mongolian coal miner completes a landmark listing in Hong Kong.
Mongolian Mining Corp (MMC) is set to raise at least $650m after pricing its shares on Tuesday in Hong Kong in the middle of a target range set by advisers JPMorgan and Citi.
The initial public offering, representing 20 per cent of the company’s equity, creates the first homegrown, multibillion-dollar miner in a country that possesses little capital or infrastructure, but vast deposits of coal, copper and gold.
The arrival of this young “state champion”, as Zorigt Dashdorj, Mongolia’s mining minister calls MMC, comes as the country’s prime minister and top officials complete a global tour intended to raise the country’s investment profile.
Referring to MMC’s deposits of coking coal, which is used to make steel and which lie close to the border with China, a banker involved in MMC’s IPO said: “Here you have high-quality mineralisation sitting next to the biggest consumer of those minerals.”
But the statement applies to all large mineral projects in Mongolia, including Oyu Tolgoi, the copper-gold mine that defines the country for international investors.
The proximity to China created investor euphoria about Mongolia a year ago. Last October, a long-awaited agreement between the government and Ivanhoe Mines, the developer of Oyu Tolgoi, signalled that the country was open for business just as China was becoming a net importer of commodities such as coal.
But the momentum slackened as investors looked more closely at the country’s dire lack of infrastructure, in spite of the government’s promises of a big building programme of roads, railways and power plants.
“Investors need the confidence of a successful IPO because Mongolia is still a high-risk frontier with little track record,” says Chris Rynning, chief executive of Origo, a Beijing-based private equity company that has invested in Mongolia.
“MMC is an important test case for outbound IPOs from Mongolia, where a success will form precedent for many more IPOs to come,” he added.
The retail part of MMC’s share offering was 10 times oversubscribed, according to bankers. The investor interest in MMC is one sign that Mongolia’s minerals-led development is regaining momentum.
The government has clarified plans for Tavan Tolgoi, the enormous coking coal deposit that ranks with Oyu Tolgoi as one of the best undeveloped mineral areas in the world.
Tavan Tolgoi will be half-owned by the government, Mr Zorigt told the Financial Times in an interview.
The half earmarked for privatisation will be split 20:30 between Mongolian and international investors respectively. The concession, however, will be split into two blocks. Erdenes, the state-owned mining group, is considering international applications to operate one of these blocks.
MMC has been dubbed “mini-TT”, after Tavan Tolgoi. The company’s principal mine – which aims to produce 15m tonnes of coking coal by 2013 – comprises one-sixth of the original Tavan Tolgoi licence area.
As part of the development programme, MMC is building a road to China and is expecting a rail line to follow as part of the government’s plans for an east-west arterial railway to intersect the Soviet-era trans-Mongolian line.
It is also building its own coal-washing plant and claims that there is enough water in the bleak south Gobi desert to do so.
Worries about the country’s basic water and rail infrastructure, as well as its lack of equipment, have weighed on the shares of a Mongolian company that pioneered a Hong Kong listing earlier this year.
SouthGobi Energy, a thermal coal miner, has seen its shares fall 36 per cent since its debut in January.
Meanwhile, a second Mongolia-related IPO has completed in Hong Kong. Last week, Winsway, a coking coal trader and logistics company handling shipments from Mongolia to China, raised HK$3.7bn (US$477m). It priced its shares just below the middle of the range.
Bankers involved in the Winsway and MMC IPOs were nervous of both companies coming to the market at the same time. But in spite of the Winsway IPO, SouthGobi remains investors’ main focal point.
Mr Zorigt is confident that MMC, which is expected to debut in Hong Kong in mid-October, will help dispel investor doubts about the future of Mongolia and he promises that other national champions will be emerging over the next decade.
“We are strong believers in national champions,” he says. “In our experience, in our part of the world, Japan and Korea have succeeded in part because of these large corporations. The next step of our industrialisation requires this more sophisticated type of business.”
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Remote villages in Mongolia are definitely places that could use clean energy to help in providing power for daily needs. Kyocera recently installed a decent amount of solar power in two villages in this nation through the World Bank’s Renewable Energy for Rural Access Project, calling what it did “among the largest stand-alone solar power generating systems in the world.”
The projects at the two Mongolian villages, which were installed this past summer, have a total capacity of 305.1kW. That isn’t a lot when you compare it to the massive solar plants being built in California, but it certainly meets the needs of the villages of Gobi-Altai and Bayantooroi, which are both located in the Gobi Desert region. The villages here, because of harsh environmental conditions, previously suffered from volatile power supply. The solar power installed now reportedly provides a stable 24-hour-a-day electricity supply, which we assume means either some form of on-site energy storage is available for power needs after the sun goes down or other forms of electricity are used instead.
Kyocera has been active in Mongolia for sometime when it comes to solar power, taking part in a project by the New Energy and Industrial Technology Development Organization (NEDO) to supply portable solar power generating systems for 200 nomadic herding families’ yurts.
http://en.trend.az/capital/business/1774618.htmlThe Azerbaijani State Customs Committee (SCC) Chairman Aydin Aliyev and Mongolian Customs General Administration head Derje Tseveenjav signed a protocol on cooperation in professional training and skill development in the customs sphere in Baku, the Committee's published report says.
During the meeting of the two countries' customs agencies' heads, which was held in Baku, Aliyev stressed Azerbaijan's interest in close cooperation with Mongolia in many areas, including customs.
"This protocol will give impetus to further cooperation between our countries in customs and accelerate the mutual integration between the sides," he said.
Tseveenjav, in turn, also positively assessed cooperation between customs authorities of Azerbaijan and Mongolia, and stressed the importance of maximal use of the existing potential in the development of this cooperation.
During his visit to Baku, Tseveenjav visited the SCC's departments on statistics and IT, the regional educational center of the World Customs Organization, the Canine Training Center of the SCC.
http://www.reuters.com/article/idUSSGE69Q0KG20101027Oct 27 (Reuters) - Khan Resources Inc (KRI.TO) said the Mongolian appellate court ruled in its favor regarding its mining license and upheld an administrative court decision, which was contested by the Nuclear Energy Agency (NEA).
In July, the Capital City Administrative Court had said notices issued by the NEA meant to invalidate the mining license held by Khan's subsidiary, Central Asian Uranium Co LLC, were illegal and invalid.
Khan, which owns license to explore uranium at Dornod, has been facing trouble from the Mongolian authorities.
The NEA has a right to appeal the appellate court ruling within 30 days, Khan said in a statement.
"We now trust the NEA will move forward with re-registering our licenses under the Mongolian Nuclear Energy Act, or will provide just cause as to why not, all as prescribed by the laws of Mongolia," Chief Executive Grant Edey said in a statement.
The company had submitted applications for re-registration of the mining and exploration licenses in November 2009.
Shares of Toronto, Ontario-based Khan closed at 38.5 Canadian cents Tuesday on the Toronto Stock Exchange. They have lost 38 percent of their value year to date.
http://www.koreatimes.co.kr/www/news/biz/2010/11/123_76498.htmlLIG Engineering and Construction (E&C), one of the top-tier builders here in Korea, is changing the face of the Mongolian landscape, creating a highway, which traverses the central Asian country.
The Seoul-based company said Wednesday that the construction works are faring well to pave a 176 kilometer-long two-lane road from Choir, situated around 260 kilometers southeast of Ulaanbaatar, to Sainshand adjacent to the capital.
This May, LIG E&C won a $43.87 million order for the road in a hard-fought contest involving global players from China and Russia. The entity broke ground of the Mongolian government’s biggest-ever construction project in September.
``The jobs are underway as planned. We will complete them by 2012, which will substantially improve transportation in Mongolia as well as help the country preserve its ecologically-significant prairie,’’ LIG CEO Kang Hee-yong said.
As of the end of 2009, Mongolia had some 200,000 kilometers of roads across the nation with a mere 5 percent of them sealed. Hence, vehicles cannot run during the rainy season.
This devastated the prairie because motorists tend to drive on the pastures during the monsoon seasons. The Choir-Sainshand connection is expected to reduce such headaches to a large extent.
The road does not just concern Mongolia’s domestic issues but is also related to the so-called Great Asian Highway that involves more than 30 countries to connect Europe and Asia by land transport.
LIG CEO Kang said that the company will continue to strengthen its footing on the global scene, especially in nearby Asian countries, in the future.
``The sky’s the limit for the potential of Mongolia. We will impress it through completing the highways in perfect fashion,’’ said Kang who took the reins of the corporation last year.
``From the perspective of a builder, central Asian nations including Mongolia are rich in upside potentials. Because the infrastructure is not well established in the wide territory, their prospects are good.’’
Kang’s top priority in globalization is to be woven into the cultural fabrics of targeted countries to gain local relevance.
``We need to optimize systems tailored toward each country, taking advantage of local staff, facilities and resources. This will minimize risks while maximizing efficiency,’’ Kang said.
``Based on thorough research, we are required to understand targeted markets to come up with tailor-made strategies. We should not blindly seek short-term benefits, to become the real partners of our customers.’’
Established in 1967, LIG E&C has remained a first-string constructor in Asia’s No. 4 economy. It is widely known by its brand LIGA.
http://bigpondnews.com/articles/Finance/2010/12Rio Tinto Ltd is to provide finance to Canada-based Ivanhoe Mines for the development of its Oyu Tolgoi copper and gold project in Mongolia.
In exchange for a $US1.8 billion loan, and Rio's participation in Ivanhoe's $1.2 billion rights offering, Rio will assume direct management of the Oyu Tolgoi project.
The deal is expected to help deliver the mine six months ahead of schedule in late 2012.
The agreement will allow Rio Tinto increase its ownership in Ivanhoe to 49 per cent, by acquiring 20 million shares at market prices.
Rio Tinto will be allowed to subscribe to Ivanhoe common shares from treasury at market prices until January 2012.
Ivanhoe owns 66 per cent of the Oyu Tolgoi copper and gold mine project, with the remainder held by the government of Mongolia.
Independently verified estimates indicate Oyu Tolgoi contains approximately 37 million tonnes of copper and 1,300 tonnes of gold in measured, indicated and inferred resources.
It is expected to operate for almost 60 years.
http://www.ptinews.com/news/1189481_Bollywood-actors-have-huge-fan-following-in-MongoliaKolkata, Dec 13 (PTI) Bollywood actors are immensely popular in Mongolia, which shows that cinema surpasses language and borders, Speaker (chairman) of Mongolian parliament Damdinglin Demberei today said.
"The Mongolian people love to watch Indian movies. They are fans of yesteryear actors ranging from Raj Kapoor to Amitabh Bachchan to present day Bollywood stars," Demberei said at the inauguration of second Mongolian film festival at the state-run film complex Nandan here.
"The ties between the two countries go beyond politico-economic exchanges and are a cultural communion between creative persons," Demberei, heading a cultural delegation to the country, said, recalling the visit of his country's president to India last year.
He said he was mesmerised by his visit to Jorasanko, the birthplace of Rabindranath Tagore, and referred to a member of his team who had spent some time at Santiniketan.