The document provides news highlights from the Business Council of Mongolia. It includes summaries of several stories: Erdenes-TT pushes back its IPO to 2013 due to delays in passing securities laws; Energy Resources reaches the finals for a global corporate social responsibility award; and the Mongolian vice minister of finance says a new foreign investment law is unlikely to be retroactive to halt Chalco's proposed purchase of Ivanhoe Mines. It also briefly summarizes personnel changes at Ivanhoe Mines and Voyager Resources, and reports that Entrée Gold's Heruga deposit continues expanding in size.
The document summarizes business and economic news from Mongolia reported in Issue 266 of the Business Council of Mongolia NewsWire dated March 22, 2013. Key highlights include:
- Mongolian officials tried to calm fears that disagreements between the government and Rio Tinto over the Oyu Tolgoi mine would delay its planned June start of commercial production.
- Rio Tinto paid nearly $12 billion in taxes globally in 2012, including $280 million in Mongolia.
- Rio Tinto attracted nearly double the $2 billion sought from commercial banks for project financing of Oyu Tolgoi, securing around $3.65 billion committed so far.
- Several mining companies including Newera Resources
This newsletter from the Business Council of Mongolia provides an overview of recent Mongolian business and economic news. It discusses developments at the Oyu Tolgoi mine, including its 2014 budget approval and a power deal. It also reports on mining, exploration and financing deals involving Tavan Tolgoi, Shenhua, Erdenet, and several junior miners. On the economic front, it mentions inflation, currency rates and plans to allocate part of the budget to construction. For politics, it notes progress on a minerals policy and cooperation between ministries. The newsletter recaps the previous month's BCM meeting and welcomes seven new member companies to the Business Council of Mongolia.
The document summarizes news from the Business Council of Mongolia newsletter. It reports on several stories related to Mongolia's mining and business sector: Turquoise Hill Resources' stock dropped 26% as rights to purchase new shares began trading, following the company's $2.4 billion rights offering to repay debt; Kincora Copper announced a $6.6 million write-down after Mongolia revoked 106 mineral exploration licenses, including two held by Kincora; Aspire Mining signed memoranda for potential purchase of 3.3 million tons per year of coking coal from its Ovoot project in Mongolia by Russian buyers.
The document is a newsletter from the Business Council of Mongolia covering various business and economic news items from Mongolia in Issue 265 dated March 15, 2013. Some of the key stories covered include: Rio Tinto waiting for a decision from Australia's export credit agency on funding for the Oyu Tolgoi mine after the US raised environmental and social concerns about the project; Oyu Tolgoi being named the "Best Project" of 2012 by Bloomberg TV Mongolia; Mongolian Mining Corp. aiming to increase raw coal output to 12 million tons in 2013 after missing targets in 2012 due to weak demand; and average selling prices for Mongolian coal falling 30% in 2012 which impacted company revenues.
This document summarizes a newsletter from the Business Council of Mongolia dated March 1, 2013. It includes sections on business, economy, and politics news highlights. In the business section, it discusses ongoing talks between investors of the Oyu Tolgoi project and the Mongolian government. It also mentions several personnel changes at companies operating in Mongolia like Turquoise Hill Resources and Energy Resources LLC expanding its coal processing capacity. The economic section notes updates on mining, finance, and economic indicators. The politics section discusses proposed revisions to Mongolia's minerals law and investigations into corruption cases.
This summary provides the key details from the Business Council of Mongolia newsletter:
- Mongolia wants to resolve its mine dispute with Rio Tinto over cost overruns at the Oyu Tolgoi mine by early 2014 in order to proceed with the mine's expansion.
- Turquoise Hill Resources, the operator of Oyu Tolgoi, will proceed with a $2.4 billion rights offer to repay credit facilities used for the mine's construction.
- Permafrost at the planned site of Power Plant No. 5 poses new challenges as construction is set to begin in 2015, increasing costs for the project's consortium.
The Business Council of Mongolia NewsWire issue 300 provides news highlights from Mongolian business, economic, and political realms. Key business stories include SouthGobi Resources restating financial results for the past 3 years due to revenue recognition errors, and several mining and exploration companies announcing new partnerships, investments, and projects. Economic reports touch on recommendations to tighten policies, investment rules spurring mining development, and Mongolia gearing up for challenges in the mining sector. Political headlines cover initiatives such as joining the Open Government Partnership and establishing cross-border reserves with Russia.
The document is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia. It reports that Erdenes Oyu Tolgoi has said progress is being made to resolve issues around financing the expansion of the Oyu Tolgoi copper and gold mine. It also reports that Turquoise Hill Resources plans to raise up to $2.4 billion through a rights offering to repay funding from Rio Tinto for the Oyu Tolgoi mine. Additionally, it discusses a US law firm investigating claims on behalf of minority shareholders of Turquoise Hill Resources.
The document summarizes business and economic news from Mongolia reported in Issue 266 of the Business Council of Mongolia NewsWire dated March 22, 2013. Key highlights include:
- Mongolian officials tried to calm fears that disagreements between the government and Rio Tinto over the Oyu Tolgoi mine would delay its planned June start of commercial production.
- Rio Tinto paid nearly $12 billion in taxes globally in 2012, including $280 million in Mongolia.
- Rio Tinto attracted nearly double the $2 billion sought from commercial banks for project financing of Oyu Tolgoi, securing around $3.65 billion committed so far.
- Several mining companies including Newera Resources
This newsletter from the Business Council of Mongolia provides an overview of recent Mongolian business and economic news. It discusses developments at the Oyu Tolgoi mine, including its 2014 budget approval and a power deal. It also reports on mining, exploration and financing deals involving Tavan Tolgoi, Shenhua, Erdenet, and several junior miners. On the economic front, it mentions inflation, currency rates and plans to allocate part of the budget to construction. For politics, it notes progress on a minerals policy and cooperation between ministries. The newsletter recaps the previous month's BCM meeting and welcomes seven new member companies to the Business Council of Mongolia.
The document summarizes news from the Business Council of Mongolia newsletter. It reports on several stories related to Mongolia's mining and business sector: Turquoise Hill Resources' stock dropped 26% as rights to purchase new shares began trading, following the company's $2.4 billion rights offering to repay debt; Kincora Copper announced a $6.6 million write-down after Mongolia revoked 106 mineral exploration licenses, including two held by Kincora; Aspire Mining signed memoranda for potential purchase of 3.3 million tons per year of coking coal from its Ovoot project in Mongolia by Russian buyers.
The document is a newsletter from the Business Council of Mongolia covering various business and economic news items from Mongolia in Issue 265 dated March 15, 2013. Some of the key stories covered include: Rio Tinto waiting for a decision from Australia's export credit agency on funding for the Oyu Tolgoi mine after the US raised environmental and social concerns about the project; Oyu Tolgoi being named the "Best Project" of 2012 by Bloomberg TV Mongolia; Mongolian Mining Corp. aiming to increase raw coal output to 12 million tons in 2013 after missing targets in 2012 due to weak demand; and average selling prices for Mongolian coal falling 30% in 2012 which impacted company revenues.
This document summarizes a newsletter from the Business Council of Mongolia dated March 1, 2013. It includes sections on business, economy, and politics news highlights. In the business section, it discusses ongoing talks between investors of the Oyu Tolgoi project and the Mongolian government. It also mentions several personnel changes at companies operating in Mongolia like Turquoise Hill Resources and Energy Resources LLC expanding its coal processing capacity. The economic section notes updates on mining, finance, and economic indicators. The politics section discusses proposed revisions to Mongolia's minerals law and investigations into corruption cases.
This summary provides the key details from the Business Council of Mongolia newsletter:
- Mongolia wants to resolve its mine dispute with Rio Tinto over cost overruns at the Oyu Tolgoi mine by early 2014 in order to proceed with the mine's expansion.
- Turquoise Hill Resources, the operator of Oyu Tolgoi, will proceed with a $2.4 billion rights offer to repay credit facilities used for the mine's construction.
- Permafrost at the planned site of Power Plant No. 5 poses new challenges as construction is set to begin in 2015, increasing costs for the project's consortium.
The Business Council of Mongolia NewsWire issue 300 provides news highlights from Mongolian business, economic, and political realms. Key business stories include SouthGobi Resources restating financial results for the past 3 years due to revenue recognition errors, and several mining and exploration companies announcing new partnerships, investments, and projects. Economic reports touch on recommendations to tighten policies, investment rules spurring mining development, and Mongolia gearing up for challenges in the mining sector. Political headlines cover initiatives such as joining the Open Government Partnership and establishing cross-border reserves with Russia.
The document is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia. It reports that Erdenes Oyu Tolgoi has said progress is being made to resolve issues around financing the expansion of the Oyu Tolgoi copper and gold mine. It also reports that Turquoise Hill Resources plans to raise up to $2.4 billion through a rights offering to repay funding from Rio Tinto for the Oyu Tolgoi mine. Additionally, it discusses a US law firm investigating claims on behalf of minority shareholders of Turquoise Hill Resources.
The document summarizes news from Mongolia across business, economic, and political topics. In business, a feasibility study for a coal washing plant in Mongolia was completed. Erdenes-TT expects to repay its debt to Chalco by the end of the year from coal sales. Mongolian and Japanese banks established a new leasing company called TDB Leasing. A Mongolian company acquired a 20% stake in a North Korean oil refinery to diversify Mongolia's energy sources away from Russia and China.
Rio Tinto and the Mongolian government are in ongoing negotiations over funding and control of the massive Oyu Tolgoi copper and gold mine project. While talks continued in March, disagreements remain over taxes, cost overruns, and management control. Failure to resolve the dispute could have serious negative consequences for Mongolia's economy and businesses that supply the mine project. Deputy Minister of Economic Development warned of a "catastrophe" if the project stops, as Oyu Tolgoi is expected to account for 30% of Mongolia's economy at full production. Mongolia's businesses are already feeling the effects of the uncertainty through slower contract awards and a general slowdown related to the mine project.
The document provides a summary of business and economic news from Mongolia. Some of the key points include:
- SouthGobi Resources suspended plans to build a railway from its coal mine to the Chinese border due to uncertainty over Mongolia's rail policy, and will instead focus on upgrading the road.
- Ivanhoe Mines said its Oyu Tolgoi copper mine may get a new partner in addition to Rio Tinto, as most large copper mines have multiple owners.
- SouthGobi Resources reported a net loss for the first quarter of 2010 due primarily to the partial conversion of a convertible debenture from China Investment Corporation, but revenues increased compared to the first quarter of 2009.
Ivanhoe Mines has nominated G. Batsukh, the former Mongolian ambassador to China, to be the Chairman of the Board of Directors of Oyu Tolgoi LLC. Ivanhoe Mines has also appointed five other directors to the board. Additionally, a new independent development plan for Oyu Tolgoi confirms that it has the resources to become one of the top three copper-gold producers globally and an exemplar for environmentally responsible mining development. The plan estimates 27 years of mining based on current reserves and 59 years including additional inferred resources. Meanwhile, the Prime Minister of Mongolia has indicated that state support for developing the Tavan Tolgoi coal deposit will favor foreign bidders backed by their
The document summarizes news from the Business Council of Mongolia newsletter. It reports that Ivanhoe Mines has made a significant new discovery at the Oyu Tolgoi mine in Mongolia, indicating there are greater resources than previously estimated. It also reports that Newcom Group and GE have signed an agreement to explore business opportunities in Mongolia, and that Mongolian Mining Corp has increased the price range for its upcoming IPO on the Hong Kong exchange.
This document provides a summary of business, economic, and political news from Mongolia in Issue 136 of the Business Council of Mongolia NewsWire dated September 17, 2010.
The main business highlights include Mitsui and Shenhua teaming up to bid for the Tavan Tolgoi coalfield, Mongolian Railway partnering with a Japanese firm to develop infrastructure, Rio Tinto increasing its stake in Ivanhoe Mines, and Origo Partners acquiring a stake in Kincora in Mongolia.
The economic news covers Mongolia taking bids for the Tavan Tolgoi contractor, national debt levels, bond sales, lending rates, and Mongolia's future beyond just mining.
The political
The document is a newsletter from the Business Council of Mongolia covering business and economic news related to Mongolia. Some of the key stories covered include Mongolian Mining seeking to raise $680 million in an IPO, Petro Matad raising $46.8 million to accelerate its drilling program in Mongolia, Khan Resources hoping the Nuclear Energy Agency will cooperate after it let the appeal deadline pass in one of their court cases, and the opening of Mongolia's first investment bank focused on the mining sector by former UBS executives, signaling the mineral boom taking place in Mongolia.
The document summarizes business news from Mongolia. It discusses several topics:
- Oyu Tolgoi defended its investment agreement as fair and valid, saying it benefits Mongolia. However, some lawmakers want to increase Mongolia's stake in the project.
- Despite calls to rework OT's agreement, investors increased shares in the project's main partner, shrugging off political risks.
- Prophecy Coal submitted a power purchase agreement proposal for its mine-mouth power plant project.
- Erdene Resources plans to split its coal and Mongolian mineral projects into separate companies to unlock shareholder value.
- Terra Energy is set to begin mining at its South Gobi coal project.
The document provides news highlights from the Business Council of Mongolia covering business, economic, and political topics. In the business section, it summarizes that Ivanhoe Mines began trading rights for its $1.8 billion rights offering, Singapore's wealth fund acquired a 5.5% stake in Ivanhoe Mines, and Altan Rio intersected high grades of gold at its exploration project. It also mentions officials planning to inspect Areva's uranium project and Khan Bank obtaining $94 million in financing.
The document summarizes news from the Business Council of Mongolia newsletter. It highlights several stories:
1) Rio Tinto is firming up $2.5 billion in financing for the Oyu Tolgoi mine expansion and expects government approval to ship copper within weeks.
2) Erdenes Tavan Tolgoi offered a one-year contract to mine 2 million tons of coking coal at West Tsankhi to attract new customers and raise cash.
3) The Mongolian government remains silent on allowing Centerra Gold to begin operations at its Gatsuurt gold project, which was to supply ore to the nearby Boroo mine for processing.
The document provides news highlights from the Business Council of Mongolia covering business, economic, and political news. In business news, it reports that Erdenes-Tavan Tolgoi is considering selling convertible bonds before its IPO, which has been pushed back to at least September. It also reports that Guildford Coal's estimates in Mongolia have reached over 2 billion tons and that SouthGobi Resources will sell the Tsagaan Tolgoi deposit for $30 million.
The document summarizes business and economic news from Mongolia. It discusses several mining companies active in Mongolia, including Ivanhoe Mines working on the Oyu Tolgoi project, which is seeking financing from EBRD and IFC. It also mentions Polo Resources selling its stake in a Mongolian joint venture and Hunnu Coal acquiring a large land position in South Gobi near the Tavan Tolgoi coal deposit. The monthly Business Council of Mongolia meeting is recapped, featuring presentations on fair competition policy, investment holding companies, and corporate governance best practices.
The document provides a summary of business, economic, and political news from Mongolia. It discusses Mongolian Mining Corporation's successful IPO and plans for infrastructure development. It also mentions Chinalco's interest in participating in the Oyu Tolgoi project and a Peabody Energy team inquiring about the international tender date for the Tavan Tolgoi deposit. Additionally, it provides an overview of the most recent Business Council of Mongolia monthly meeting and topics discussed.
The document summarizes business and economic news from Mongolia. It discusses Ivanhoe assessing options for its Oyu Tolgoi mine in Mongolia, including potentially auctioning it off. It also mentions a JORC resource estimate quadrupling the coal inventory for Sharyn Gol to over 374 million metric tons. Additionally, it provides an overview of the most recent Business Council of Mongolia monthly meeting, including presentations on the stock exchange, an upcoming coal conference, and aviation industry growth.
The document summarizes business and economic news from Mongolia reported in Issue 182 of the Business Council of Mongolia NewsWire dated August 26, 2011. Key points include:
- The selection of investors for the Tavan Tolgoi coal mine is still under review and Japanese and Korean companies have not been ruled out as potential investors.
- A new thermal power plant is being planned for the Gobi region to provide power for mining operations at Tavan Tolgoi and Oyu Tolgoi.
- Macmahon Holdings and BBM Operta Group were awarded a contract for work at the Tavan Tolgoi coal mine.
The document summarizes business and economic news from Mongolia. It reports that Khan Resources received notice from Mongolia's State Property Committee to increase state ownership of its uranium project to 51%. It also reports that Centerra Gold forecasts gold production of 640,000-700,000 ounces in 2010. Additionally, it mentions that Ivanhoe Mines plans to spend $758 million on development work at its Oyu Tolgoi copper-gold mine in 2010.
- The document summarizes news from the Business Council of Mongolia newsletter, covering business, economic, and political headlines.
- In business news, Petro Matad reevaluated its oil exploration expectations at Davsan Tolgoi after tests found no commercial oil. Oyu Tolgoi and Tavan Tolgoi will have separate power plants to supply their mining operations. Khan Bank announced management changes including a new acting CEO.
- Economic headlines included Mongolia being vulnerable to economic issues in western countries and falling stock prices due to slower Chinese growth.
- In politics, a new bill proposed distributing shares of Erdenes Tavan Tolgoi to citizens, which some business leaders opposed.
The document summarizes news from the Business Council of Mongolia newsletter. It includes the following key points:
- Rio Tinto warns that renegotiating Mongolia's investment agreement for the Oyu Tolgoi project risks damaging the country's reputation with foreign investors.
- Ivanhoe Mines and Rio Tinto have an uneasy relationship as partners in the Oyu Tolgoi project, made more difficult by disputes between the companies and potential government interference.
- Petro Matad receives encouraging initial results from its Davsan Tolgoi 4 exploration well in Mongolia, indicating a high quality oil without water.
The document summarizes news from the Business Council of Mongolia newsletter. It highlights several stories: Khan Bank received an $8 million EBRD loan to finance small and medium businesses; Golomt Bank signed agreements with Hungarian and Chinese banks to provide financing for trade; the Mongolian Stock Exchange is negotiating to use Bloomberg's terminal system for bond trades and took legal action against 196 companies that failed to file reports; Rio Tinto's CEO has helped steer the company to recovery as it approaches interim results and considers options for generating cash going forward including potential growth projects.
The document is a newsletter from the Business Council of Mongolia that provides news highlights on business, economic, and political issues in Mongolia. It includes summaries of multiple news stories related to Mongolian companies and mining projects, economic indicators and foreign investment in Mongolia, and political developments. It also announces an upcoming meeting of the Business Council of Mongolia that will feature presentations from the U.S. Ambassador, the CEO of a Mongolian investment company, and the chairman of Mongolia's National Development and Innovation Committee.
The document discusses Mongolia's industrialization policies and priorities between 2010-2015 as outlined by the National Development and Innovation Committee. The five priorities are: 1) Developing the mining sector and heavy industry; 2) Developing intensified agriculture and implementing industrialization policies; 3) Developing infrastructure related to mining; 4) Providing sustainable development through human development and environmental protection; 5) Improving governance and supporting the private sector. The document provides details on projects and initiatives within each priority area.
This document discusses reforms needed for Mongolia's meat industry. It outlines issues with the current veterinary system, herder management practices, and lack of coordination between businesses. The proposed reforms include strengthening laws around animal health, slaughtering standards, and traceability. Improving herder practices through entrepreneurship, feeding, and disaster preparedness is also suggested. Coordinating businesses through associations could boost investment, competition, and exporting of high quality meat and byproducts. Overall, the reforms aim to leverage Mongolia's grass-fed livestock into a premium natural meat brand through an honest, systematic approach.
The document summarizes news from Mongolia across business, economic, and political topics. In business, a feasibility study for a coal washing plant in Mongolia was completed. Erdenes-TT expects to repay its debt to Chalco by the end of the year from coal sales. Mongolian and Japanese banks established a new leasing company called TDB Leasing. A Mongolian company acquired a 20% stake in a North Korean oil refinery to diversify Mongolia's energy sources away from Russia and China.
Rio Tinto and the Mongolian government are in ongoing negotiations over funding and control of the massive Oyu Tolgoi copper and gold mine project. While talks continued in March, disagreements remain over taxes, cost overruns, and management control. Failure to resolve the dispute could have serious negative consequences for Mongolia's economy and businesses that supply the mine project. Deputy Minister of Economic Development warned of a "catastrophe" if the project stops, as Oyu Tolgoi is expected to account for 30% of Mongolia's economy at full production. Mongolia's businesses are already feeling the effects of the uncertainty through slower contract awards and a general slowdown related to the mine project.
The document provides a summary of business and economic news from Mongolia. Some of the key points include:
- SouthGobi Resources suspended plans to build a railway from its coal mine to the Chinese border due to uncertainty over Mongolia's rail policy, and will instead focus on upgrading the road.
- Ivanhoe Mines said its Oyu Tolgoi copper mine may get a new partner in addition to Rio Tinto, as most large copper mines have multiple owners.
- SouthGobi Resources reported a net loss for the first quarter of 2010 due primarily to the partial conversion of a convertible debenture from China Investment Corporation, but revenues increased compared to the first quarter of 2009.
Ivanhoe Mines has nominated G. Batsukh, the former Mongolian ambassador to China, to be the Chairman of the Board of Directors of Oyu Tolgoi LLC. Ivanhoe Mines has also appointed five other directors to the board. Additionally, a new independent development plan for Oyu Tolgoi confirms that it has the resources to become one of the top three copper-gold producers globally and an exemplar for environmentally responsible mining development. The plan estimates 27 years of mining based on current reserves and 59 years including additional inferred resources. Meanwhile, the Prime Minister of Mongolia has indicated that state support for developing the Tavan Tolgoi coal deposit will favor foreign bidders backed by their
The document summarizes news from the Business Council of Mongolia newsletter. It reports that Ivanhoe Mines has made a significant new discovery at the Oyu Tolgoi mine in Mongolia, indicating there are greater resources than previously estimated. It also reports that Newcom Group and GE have signed an agreement to explore business opportunities in Mongolia, and that Mongolian Mining Corp has increased the price range for its upcoming IPO on the Hong Kong exchange.
This document provides a summary of business, economic, and political news from Mongolia in Issue 136 of the Business Council of Mongolia NewsWire dated September 17, 2010.
The main business highlights include Mitsui and Shenhua teaming up to bid for the Tavan Tolgoi coalfield, Mongolian Railway partnering with a Japanese firm to develop infrastructure, Rio Tinto increasing its stake in Ivanhoe Mines, and Origo Partners acquiring a stake in Kincora in Mongolia.
The economic news covers Mongolia taking bids for the Tavan Tolgoi contractor, national debt levels, bond sales, lending rates, and Mongolia's future beyond just mining.
The political
The document is a newsletter from the Business Council of Mongolia covering business and economic news related to Mongolia. Some of the key stories covered include Mongolian Mining seeking to raise $680 million in an IPO, Petro Matad raising $46.8 million to accelerate its drilling program in Mongolia, Khan Resources hoping the Nuclear Energy Agency will cooperate after it let the appeal deadline pass in one of their court cases, and the opening of Mongolia's first investment bank focused on the mining sector by former UBS executives, signaling the mineral boom taking place in Mongolia.
The document summarizes business news from Mongolia. It discusses several topics:
- Oyu Tolgoi defended its investment agreement as fair and valid, saying it benefits Mongolia. However, some lawmakers want to increase Mongolia's stake in the project.
- Despite calls to rework OT's agreement, investors increased shares in the project's main partner, shrugging off political risks.
- Prophecy Coal submitted a power purchase agreement proposal for its mine-mouth power plant project.
- Erdene Resources plans to split its coal and Mongolian mineral projects into separate companies to unlock shareholder value.
- Terra Energy is set to begin mining at its South Gobi coal project.
The document provides news highlights from the Business Council of Mongolia covering business, economic, and political topics. In the business section, it summarizes that Ivanhoe Mines began trading rights for its $1.8 billion rights offering, Singapore's wealth fund acquired a 5.5% stake in Ivanhoe Mines, and Altan Rio intersected high grades of gold at its exploration project. It also mentions officials planning to inspect Areva's uranium project and Khan Bank obtaining $94 million in financing.
The document summarizes news from the Business Council of Mongolia newsletter. It highlights several stories:
1) Rio Tinto is firming up $2.5 billion in financing for the Oyu Tolgoi mine expansion and expects government approval to ship copper within weeks.
2) Erdenes Tavan Tolgoi offered a one-year contract to mine 2 million tons of coking coal at West Tsankhi to attract new customers and raise cash.
3) The Mongolian government remains silent on allowing Centerra Gold to begin operations at its Gatsuurt gold project, which was to supply ore to the nearby Boroo mine for processing.
The document provides news highlights from the Business Council of Mongolia covering business, economic, and political news. In business news, it reports that Erdenes-Tavan Tolgoi is considering selling convertible bonds before its IPO, which has been pushed back to at least September. It also reports that Guildford Coal's estimates in Mongolia have reached over 2 billion tons and that SouthGobi Resources will sell the Tsagaan Tolgoi deposit for $30 million.
The document summarizes business and economic news from Mongolia. It discusses several mining companies active in Mongolia, including Ivanhoe Mines working on the Oyu Tolgoi project, which is seeking financing from EBRD and IFC. It also mentions Polo Resources selling its stake in a Mongolian joint venture and Hunnu Coal acquiring a large land position in South Gobi near the Tavan Tolgoi coal deposit. The monthly Business Council of Mongolia meeting is recapped, featuring presentations on fair competition policy, investment holding companies, and corporate governance best practices.
The document provides a summary of business, economic, and political news from Mongolia. It discusses Mongolian Mining Corporation's successful IPO and plans for infrastructure development. It also mentions Chinalco's interest in participating in the Oyu Tolgoi project and a Peabody Energy team inquiring about the international tender date for the Tavan Tolgoi deposit. Additionally, it provides an overview of the most recent Business Council of Mongolia monthly meeting and topics discussed.
The document summarizes business and economic news from Mongolia. It discusses Ivanhoe assessing options for its Oyu Tolgoi mine in Mongolia, including potentially auctioning it off. It also mentions a JORC resource estimate quadrupling the coal inventory for Sharyn Gol to over 374 million metric tons. Additionally, it provides an overview of the most recent Business Council of Mongolia monthly meeting, including presentations on the stock exchange, an upcoming coal conference, and aviation industry growth.
The document summarizes business and economic news from Mongolia reported in Issue 182 of the Business Council of Mongolia NewsWire dated August 26, 2011. Key points include:
- The selection of investors for the Tavan Tolgoi coal mine is still under review and Japanese and Korean companies have not been ruled out as potential investors.
- A new thermal power plant is being planned for the Gobi region to provide power for mining operations at Tavan Tolgoi and Oyu Tolgoi.
- Macmahon Holdings and BBM Operta Group were awarded a contract for work at the Tavan Tolgoi coal mine.
The document summarizes business and economic news from Mongolia. It reports that Khan Resources received notice from Mongolia's State Property Committee to increase state ownership of its uranium project to 51%. It also reports that Centerra Gold forecasts gold production of 640,000-700,000 ounces in 2010. Additionally, it mentions that Ivanhoe Mines plans to spend $758 million on development work at its Oyu Tolgoi copper-gold mine in 2010.
- The document summarizes news from the Business Council of Mongolia newsletter, covering business, economic, and political headlines.
- In business news, Petro Matad reevaluated its oil exploration expectations at Davsan Tolgoi after tests found no commercial oil. Oyu Tolgoi and Tavan Tolgoi will have separate power plants to supply their mining operations. Khan Bank announced management changes including a new acting CEO.
- Economic headlines included Mongolia being vulnerable to economic issues in western countries and falling stock prices due to slower Chinese growth.
- In politics, a new bill proposed distributing shares of Erdenes Tavan Tolgoi to citizens, which some business leaders opposed.
The document summarizes news from the Business Council of Mongolia newsletter. It includes the following key points:
- Rio Tinto warns that renegotiating Mongolia's investment agreement for the Oyu Tolgoi project risks damaging the country's reputation with foreign investors.
- Ivanhoe Mines and Rio Tinto have an uneasy relationship as partners in the Oyu Tolgoi project, made more difficult by disputes between the companies and potential government interference.
- Petro Matad receives encouraging initial results from its Davsan Tolgoi 4 exploration well in Mongolia, indicating a high quality oil without water.
The document summarizes news from the Business Council of Mongolia newsletter. It highlights several stories: Khan Bank received an $8 million EBRD loan to finance small and medium businesses; Golomt Bank signed agreements with Hungarian and Chinese banks to provide financing for trade; the Mongolian Stock Exchange is negotiating to use Bloomberg's terminal system for bond trades and took legal action against 196 companies that failed to file reports; Rio Tinto's CEO has helped steer the company to recovery as it approaches interim results and considers options for generating cash going forward including potential growth projects.
The document is a newsletter from the Business Council of Mongolia that provides news highlights on business, economic, and political issues in Mongolia. It includes summaries of multiple news stories related to Mongolian companies and mining projects, economic indicators and foreign investment in Mongolia, and political developments. It also announces an upcoming meeting of the Business Council of Mongolia that will feature presentations from the U.S. Ambassador, the CEO of a Mongolian investment company, and the chairman of Mongolia's National Development and Innovation Committee.
The document discusses Mongolia's industrialization policies and priorities between 2010-2015 as outlined by the National Development and Innovation Committee. The five priorities are: 1) Developing the mining sector and heavy industry; 2) Developing intensified agriculture and implementing industrialization policies; 3) Developing infrastructure related to mining; 4) Providing sustainable development through human development and environmental protection; 5) Improving governance and supporting the private sector. The document provides details on projects and initiatives within each priority area.
This document discusses reforms needed for Mongolia's meat industry. It outlines issues with the current veterinary system, herder management practices, and lack of coordination between businesses. The proposed reforms include strengthening laws around animal health, slaughtering standards, and traceability. Improving herder practices through entrepreneurship, feeding, and disaster preparedness is also suggested. Coordinating businesses through associations could boost investment, competition, and exporting of high quality meat and byproducts. Overall, the reforms aim to leverage Mongolia's grass-fed livestock into a premium natural meat brand through an honest, systematic approach.
The document provides a summary of business and economic news from Mongolia in its January 22, 2016 issue. Some of the key stories included: Oyu Tolgoi reporting record levels of copper and gold production in Q4 2015; Aspire Mining finalizing approvals for a proposed railway to transport coal; and the head of the Erdenet Miners' Union demanding lower royalties and greater transparency for the state-owned mine. The summary also mentions a planned direct flight between New Delhi and Ulaanbaatar by March 2016 and several new business openings in Mongolia.
The document outlines seven major Russian coking coal development projects that will provide almost 80 million tonnes of new annual production capacity by 2020 to supply Russian steelmakers and export markets in Asia, and argues that while increased competition is possible, lack of infrastructure means Mongolian and Russian coal production will likely co-exist targeting different markets due to transportation challenges.
This document provides information on first aid and common health risks in the workplace. It outlines how to treat injuries like wounds, burns, sprains and broken bones. It also covers health emergencies such as fainting, seizures, strokes, heart attacks, nosebleeds and choking. Additionally, it discusses office-specific health risks including eyestrain from excessive computer use, neck and back problems from poor posture, and obesity due to sedentary jobs. The goal is to educate about first aid protocols and promoting worker health and safety.
The Sant Maral Foundation conducted a survey of 5020 respondents from Ulan Bator and provinces between March 16-April 14, 2012. Key findings include:
- 77.3% of respondents nationwide said they would participate in elections if held tomorrow.
- The top three parties respondents said they would vote for were the Mongolian People's Party at 16.5%, Democratic Party at 17.3%, and MPRP-MNDP union at 6.3%.
- Respondents were split on whether dismantling the coalition government before elections was right or wrong, with 23.6% saying right and 44% saying wrong.
- Unemployment was seen as the biggest socio-political or economic problem
The document summarizes key findings from PwC's 2014 Global CEO Survey for Mongolia. It discusses what Mongolian CEOs think about the global and local economies in 2014, their revenue expectations, and top threats. It also outlines actions CEOs plan for 2014-2015 like pursuing growth in existing markets and innovation. While many CEOs see a need for change, over a quarter think no change is needed in areas like governance and supply chains. Recruiting skilled workers is also a challenge.
The document provides an overview of recent advocacy efforts, events, opportunities, and personnel changes at the Business Council of Mongolia (BCM). It announces the hiring of a new business development consultant and summarizes BCM's advocacy efforts on certificate of origin issues. It also lists past and upcoming BCM events and opportunities for members.
- Mongolia has an open foreign investment policy across all sectors and has seen nearly $2 billion invested in the past year. Major mining projects like Oyu Tolgoi are investing billions more.
- Property rights are respected and Mongolia has a liberal ownership regime with privatization of most industries like banking. The investment climate is stable with peaceful elections.
- Capital markets are embryonic with an improving banking system but small stock exchange. The government is working to reform and upgrade the exchange to international standards.
- Mongolia's mining supply chain will see a multiplier effect from foreign investment, estimated to be 3-5 times the direct investment. The government will support local Mongolian suppliers for major projects like Oyu
- Mongolia has experienced strong economic growth over the past decade led by foreign investment in mining. However, expansionary fiscal and monetary policies have pressured the balance of payments and added to macroeconomic risks.
- The IMF projected growth of 12% in 2013 and 9.5% in 2014 due to new copper and gold mine production. However, non-mining growth has been boosted by unsustainable stimulus measures.
- Mongolia needs to change course by adjusting fiscal policy, unwinding monetary stimulus, and allowing continued exchange rate flexibility in order to reduce vulnerabilities and ensure sustainable growth. This will help address rising inflation, banking sector weaknesses, and fiscal risks from off-budget spending.
This document summarizes news from the October 16, 2009 issue of the Business Council of Mongolia NewsWire. It includes the following highlights:
1) The head of Mongolia's Nuclear Energy Agency attempted to calm concerns from uranium companies about a new law regarding state ownership, saying the law does not affect existing exploration licenses.
2) A joint venture between Mongolia and Russia wants to remove Khan Resources from a uranium project in Mongolia, but it is unclear how this could be done legally given Khan Resources' existing exploration license.
3) Rio Tinto purchased additional shares in Ivanhoe Mines for $388 million as part of an agreement to increase its stake in the company, which is developing
The document provides a summary of business, economic, and political news from Mongolia. It discusses several topics, including the Prime Minister prioritizing work on two large mining deposits, a Japanese company obtaining rights to explore three uranium mines, five companies being chosen to conduct oil exploration, and a Mongolian bank partnering with American Express to enable its cardholders to access the bank's ATM network. It also mentions the appointment of a new Central Bank President, plans to import more fuel from Kazakhstan, and a mining company selling its metals division to another company.
The document summarizes business and economic news from Mongolia reported in Issue 180 of the Business Council of Mongolia NewsWire dated August 12, 2011. Several mining companies had positive developments, including SouthGobi achieving record sales and revenue from coal mining. Voyager Resources announced a major new copper discovery. Guildford Coal acquired additional land and aims to begin coal production within a year. Other news included MEC completing a road to transport coal to China, Petro Matad drilling exploration wells, and Shivee Ovoo building Mongolia's first coal drying factory. The economy news discussed proposals for the Tavan Tolgoi coal project, China raising railway freight rates, and the first new listing on the Mongolian stock
Mongolia Energy Corporation is an energy and resources developer focused on coal, oil and gas, and minerals projects in Mongolia and China. It owns several coal, ferrous metals, and non-ferrous metals concessions in western Mongolia through its wholly owned subsidiary MoEnCo. Mongolia Energy utilizes experienced geological, mining, and legal teams to explore and develop its concessions, following all regulatory requirements. Its flagship Khushuut coal project in western Mongolia contains over 149 million tonnes of indicated coal resources that could produce 8 million tonnes of coal annually starting in year 4. Mongolia Energy works with established partners like John T. Boyd Company and Leighton Asia to advance the Khushuut project.
- Mongolia's Commodities Exchange plans to partner with the Toronto Stock Exchange to receive technical assistance and training as it establishes a mineral exchange.
- Mövenpick Hotels & Resorts announced new hotels in Mongolia, Turkey and Morocco, including a 250-room hotel in Ulaanbaatar slated to open in 2018.
- A fire at a PetroChina oil tanker facility in Dornod Aimag, Mongolia killed two Chinese workers and hospitalized one Mongolian, halting operations at the site.
The document summarizes news from the Business Council of Mongolia newsletter dated July 4, 2014. It covers several topics:
- The Oyu Tolgoi copper mine director said the tax dispute with the government should not delay $4 billion in project financing for expansion. Meanwhile, the feasibility study is still delayed.
- Oyu Tolgoi and the government signed an agreement for the mine to receive power from a planned coal-fired power plant at the Tavan Tolgoi coal mine.
- Viking Mines signed a non-binding agreement with the Erdenet Power Plant for future coal supply from its Berkh Uul coal project, its second such agreement with a Mongolian authority.
The document summarizes business and economic news from Mongolia. It discusses several mining projects and companies, including progress on the Oyu Tolgoi mine, Shenhua Energy's interest in the Tavan Tolgoi coal project, and Haranga Resources announcing iron ore prospects at its Selenge project. It also mentions Newcom LLC's plans to export renewable energy from Mongolia to Japan and the Development Bank of Mongolia raising $600 million in international debt markets. The Business Council of Mongolia meeting featured presentations on the banking sector, foreign investors' views of Mongolia, and private sector involvement in development.
The document summarizes key legislative changes from Mongolia's 2015 spring legislative session. It discusses 20 new laws passed, 18 laws repealed or amended, and 16 international agreements ratified. Specific laws covered include support for domestic production, taxation revisions like the value added tax law, financial reporting reforms, and other policies on privatization, energy, and occupational health and safety. An irregular legislative session in August passed additional laws on amnesty, economic transparency, and firearms.
Khan Resources, a Canadian mining company, has filed a CAD300 million lawsuit against Russian state-owned uranium company ARMZ and its subsidiary for damages resulting from interfering with Khan's economic interests and rights in Mongolia. Specifically, Khan alleges that ARMZ sought to establish its own joint venture over the Dornod uranium region in Mongolia without regard for Khan's existing rights, impugned the legitimacy of Khan's interests, and interfered with a competing acquisition offer, all with the goal of eliminating Khan's Mongolian assets. Khan states it was forced to file the lawsuit in order to protect its rights and seek compensation for the substantial damages caused by ARMZ.
This document provides a summary of news from the Business Council of Mongolia for May 18, 2012. It includes highlights on business, economic, and political news. For business, it summarizes news about mining companies like Erdenes-TT, Ivanhoe Mines, SouthGobi Resources, and Centerra Gold. It also discusses plans from Mongolian companies to produce synthetic diesel from coal. For the economy, it covers secondary bond trading, tax revenue from resources, and threats from climate change. For politics, it mentions new legislation on foreign investment and elections.
The Prime Minister of Mongolia discussed Mongolia's economic outlook and challenges in an interview. He stated that Mongolia expects around 8% GDP growth in 2010 and over 10% growth for the next 5 years. Mongolia is a major exporter of coal and copper to China and aims to increase processing industries to create jobs. The main economic problem is managing mining wealth to reduce poverty levels and potential social tensions. The Prime Minister aims to channel wealth to combat poverty and is considering economic models of resource-rich nations like Canada, Chile and hybrid models.
The document summarizes business and economic news from Mongolia in Issue 100 of the Business Council of Mongolia NewsWire dated January 8, 2010. Some of the key stories covered include SouthGobi Energy planning to raise $400 million from a Hong Kong IPO to fund coal production expansion in Mongolia, China National Gold's unit partnering with Monnis for gold exploration in Mongolia, and SouthGobi aiming to increase coal production at its Ovoot Tolgoi mine sixfold by 2012 through investments in mining infrastructure. The document also provides highlights of exploration and corporate activities by Entrée Gold in Mongolia in 2009, including the signing of an investment agreement for the Oyu Tolgoi mining project.
The document summarizes news from the Business Council of Mongolia newsletter. It includes the following highlights:
- President Ts. Elbegdorj set a 2012 deadline to select companies to develop part of Mongolia's Tavan Tolgoi coal field, seeking to resolve a dispute between Chinese, Russian, and American bidders. Developing this field could bring billions of dollars in investment and royalties.
- Ivanhoe Mines will change its name to Turquoise Hill Resources to reflect its ownership in the giant Oyu Tolgoi copper and gold mine in Mongolia.
- Rio Tinto's Oyu Tolgoi mine in Mongolia is expected to begin copper production this year and
- The document summarizes business and economic news from Mongolia. It discusses several mining companies expanding operations in Mongolia, including Centerra Gold and Xstrata Coal. It also mentions the European Bank for Reconstruction and Development planning to increase investments in Mongolia by 50% in industries like mining, retail, and tourism. Additionally, it provides updates on Mongolia's rankings in terms of ease of doing business and notes a sharp fall in the country's budget surplus for the first 8 months of 2008.
The document summarizes news highlights from the Business Council of Mongolia newsletter. It includes several stories on mining projects and companies in Mongolia: Ivanhoe Mines maintains its board will remain independent despite Rio Tinto's majority stake; the IPO for Tavan Tolgoi faces challenges due to political instability and elections; control of Oyu Tolgoi provides a boost to Rio Tinto stock prices; and Meritus Minerals reports encouraging gold recovery results. It also mentions Mongolian Airlines adding a new domestic flight route and two firms receiving underwriting rights.
The document summarizes business and economic news from Mongolia. It discusses Rio Tinto's Oyu Tolgoi mine project and potential delays in approval for expansion. It also mentions Mongolian Mining Corp. seeking an extension on debt repayment due to low coal prices. Additionally, it provides details on Xanadu Mines receiving support for a proposed acquisition of the Kharmagtai copper project.
The document provides a summary of business and economic news from Mongolia in Issue 166 dated May 6, 2011 of the Business Council of Mongolia NewsWire. It highlights several stories including GE opening an office in Mongolia, analysts downgrading shares of Ivanhoe Mines, Sharyn Gol announcing plans for expansion and strategic review, and AIDD winning a large drilling contract in Kazakhstan. It also summarizes economic reports and statistics as well as political news briefs from Mongolia.
The document summarizes news from the Business Council of Mongolia newsletter. It discusses several mining and exploration projects in Mongolia, including: Discover Mongolia opening as an investor conference; plans for Erdenes Tavan Tolgoi to raise $3 billion in an IPO next year; exploration results from Xanadu Mines and Kincora Copper expanding their projects; and earnings increasing for mining services company Major Drilling due to high demand.
The document summarizes news from the Business Council of Mongolia covering business, economic, and political topics in Mongolia. Some key points include:
- Rio Tinto faces further delays in expanding the Oyu Tolgoi copper mine due to potential missed deadlines for securing project financing.
- Mongolia will spend 1 trillion MNT on industrial production and the volume of gold sales grew 8-fold year-over-year.
- Parliament adjusted its schedule for the spring session and a new state-owned company will replace ministries' construction departments.
- The BCM meeting had over 100 attendees and new members were introduced, including Mongol Bridge Group and Resource Mincom LLC.
This document provides a summary of business and economic news from Mongolia in Issue 130 of the Business Council of Mongolia NewsWire dated August 6, 2010. Key highlights include:
- Khan Resources winning a second court case reinstating its uranium exploration license in Mongolia.
- Petro Matad's shares rising after tests confirm the presence of oil in its first exploration well and it beginning a three-well drilling campaign.
- Ivanhoe Mines having "interesting discussions" with potential new strategic investors after easing restrictions on its shareholder registry.
- The EBRD and Khan Bank signing Mongolia's first co-financing facility agreement worth $10 million to expand Khan Bank's
The document summarizes business and economic news from Mongolia. It discusses several mining projects and disputes between Rio Tinto and the Mongolian government over profits from the Oyu Tolgoi copper mine. It also mentions Anglo American entering the Mongolia market, restrictions placed on SouthGobi's assets, and presentations made at the Coal Mongolia 2013 forum calling for cooperation between the public and private sectors in Mongolia.
The document summarizes business and economic news from Mongolia reported in the Business Council of Mongolia NewsWire on June 24, 2011. Key highlights include:
- The Mongolian government suspended PetroChina's crude oil transport along a gravel road for various violations.
- Erdene Resource Development took investors on a tour of its mining operation sites in Mongolia.
- Mongolia Growth Group received an insurance license under the name Mandal General to underwrite property and casualty insurance in Mongolia.
- Several mining and exploration companies including Voyager Resources, Mongolia Energy Corporation, and Petro Matad provided updates on their drilling, mining, and exploration activities in Mongolia.
This document summarizes news from the Business Council of Mongolia newsletter dated February 18, 2011. It covers several business and economic stories related to Mongolia's mining and coal industries. Key points include: the Prime Minister praising Oyu Tolgoi's vocational training program; Aspire Mining beginning exploration drilling at its Ovoot Coking Coal Project; Petro China being included in a working group implementing transparency standards and submitting audit reports; and MCS Holding planning a coal gas plant to provide cleaner heating for households.
The document summarizes news from the Business Council of Mongolia newsletter. It discusses several stories on business and economic news in Mongolia, including:
1) Peabody Energy expressing interest in acquiring a stake in Mongolia's Tavan Tolgoi coal deposit to expand its operations in China.
2) Erdenes-TT again delaying its planned IPO in Hong Kong, London, and Mongolia due to weak coal demand and prices.
3) Oyu Tolgoi grappling with water scarcity in the Gobi desert for its mine operations while facing skepticism about its water usage from local herders and NGOs.
Rio Tinto tightens its grip on Ivanhoe Mines as part of a $3.3 billion financing deal that will see Robert Friedland step down as CEO. Rio Tinto will nominate 11 of 13 new board members and provide $1.8 billion in funding, securing its control over the Oyu Tolgoi copper and gold mine in Mongolia. However, the head of Rio's Copper division says they have no interest in Ivanhoe Mines' other assets outside of Oyu Tolgoi. Mongolia also threatens to suspend mining licenses of SouthGobi Resources amid a proposed takeover by Chinese metals company Chalco, a move that could stall China's largest investment in Mongolia to date.
- The document summarizes business and economic news from Mongolia. It reports that Turquoise Hill Resources and Rio Tinto expect to sign a $4 billion financing plan by the end of June to develop the second phase of the Oyu Tolgoi mine, while Mongolia plans to begin investigating Oyu Tolgoi's tax and contractual compliance. It also mentions that Erdenes Tavan Tolgoi will begin mining the West Tsankhi coal area and potentially partner with foreign miners, and that Japanese companies will build Mongolia's second international airport.
The document summarizes news highlights from the Business Council of Mongolia newsletter. It includes the following key points:
- Ivanhoe Mines expects to begin test production at its Oyu Tolgoi copper and gold mine by Q4 2012 and reach full commercial production in 2013.
- Mongolia Mining, the first Mongolian firm to tap the Hong Kong IPO market, has secured strategic investors like Kerry Group and Ancora Capital to help raise $1 billion.
- The Central Bank of Mongolia is likely to penalize banks that failed to disclose ownership details by the required deadline, as the bank has now posted these details publicly on its website.
- Canadian mining companies are playing
The document is a newsletter from the Business Council of Mongolia covering business, economic, and political news highlights from Mongolia. Some of the key points covered include:
- Rio Tinto hopes the Oyu Tolgoi copper and gold mine in Mongolia will begin production in 2012, ahead of previous estimates of 2013.
- Ivanhoe Mines says it has options to prevent a takeover by majority shareholder Rio Tinto, including interest from sovereign wealth funds in Mongolia.
- Voyager Resources acquired a copper-gold project in Mongolia's Oyu Tolgoi copper belt.
- The newsletter announces an upcoming meeting of the Business Council of Mongolia to present achievement awards.
This document summarizes business and economic news from Mongolia reported in the Business Council of Mongolia NewsWire on April 22, 2011. Key highlights include MIAT airline beginning direct flights to Hong Kong to boost business travel between the two places. Prophecy Resource Corp expressed commitment to partnering with Mongolia for mutual growth. Rio Tinto's credit rating was upgraded to single 'A' status. Erdene Resource provided updates on its mining projects in Mongolia. Voyager Resources listed highlights of its Khongor copper-gold property.
After careful consideration for the preservation of the region’s environment, culture, and people, Jalsa Urubshurow opened Three Camel Lodge in 2002 as the only luxury eco-lodge in the Gobi Desert. Built by and staffed by locals, Three Camel Lodge offers travelers a way to experience the nomadic spirit of the region alongside modern comforts while protecting the natural beauty and culture.
After careful consideration for the preservation of the region’s environment, culture, and people, Jalsa Urubshurow opened the only luxury eco-lodge in the Gobi Desert, Three Camel Lodge, in 2002. Built by and staffed by locals, Three Camel Lodge offers travelers a variety of activities to learn about nomadic culture while enjoying modern comforts in a way that showcases the nomadic spirit without destroying the natural environment of the region.
The Business Council of Mongolia published its January 2020 Macroeconomic Updates report which contained the following key points:
1) Mongolia's GDP grew 6.3% in Q3 2019 while inflation was at 5.2% in December 2019. Exports reached a historic high of $7.6 billion in 2019, driven by record coal exports.
2) Foreign direct investment in Mongolia totaled $21.5 billion as of 2019, with the majority from Canada, China, Singapore, and Luxembourg invested mainly in mining.
3) The Mongolian currency, the togrog, depreciated 3.8% against the US dollar in 2019 as the central bank supplied $2.
Faro Foundation Mongolia is a non-governmental organization that promotes digital literacy and safe internet use in Mongolia. It works to educate the public on topics like online safety, proper social media use, and cyberbullying prevention. The organization's primary goal is to create positive social change through social media. It has developed a digital literacy curriculum and library on Facebook to teach essential digital skills to students, teachers, and parents.
The Business Council of Mongolia (BCM) is an independent non-profit organization established in 2007 to advocate for economic freedom and a competitive business environment in Mongolia. It has over 240 member organizations from various sectors. The BCM aims to equip its members with policy research, training, and networking opportunities. It is organized with a Board of Directors, Executive Committee, and six working groups focused on key issues. The Growth and Innovation working group works to promote digital transformation in Mongolia.
The One-Stop-Service Center (OSSC) was established in February 2019 under the Prime Minister's order to provide centralized public services to investors in Mongolia. The OSSC was created as part of Mongolia's three-pillar development policy and on the recommendation of the Investment Protection Council. It allows five government bodies, a bank, and notary office to render services to foreign investors from one location.
Mongolians are building a competitive Fintech sector with international ambitions by cultivating agile and innovative teams combining specialists and experts from 6 nationalities. To become truly internationally competitive, Mongolia must train professionals and executives to international standards by growing their next generation of innovative leaders and skilled experts. Overcoming these challenges will allow Mongolia to solve growing issues and compete in international markets.
The document discusses competitiveness rankings for Mongolia and its provinces. It analyzes Mongolia's performance in the IMD World Competitiveness Ranking, where Mongolia ranked 62nd out of 63 countries in 2018. The ranking evaluates countries across 4 factors: economic performance, government efficiency, business efficiency, and infrastructure. The document also summarizes findings from a provincial competitiveness report for Mongolia, which evaluated and ranked the competitiveness of Mongolia's 21 provinces. Finally, it outlines criteria and results from a competitiveness ranking of districts in Ulaanbaatar city across 5 factors of quality of life, living environment, safety and security, governance, and economic performance.
Digital transformation involves using digital technology in new ways to solve traditional business problems and drive organizational change. The presentation discusses how digital transformation differs from related concepts like digitization, analytics, and outsourcing. Key aspects of digital transformation include leveraging data as a strategic asset, adapting to digital natives, and undergoing cultural and technological changes. Methods like agile project management and design sprints are presented as ways to accelerate transformation. The presentation also provides examples of how companies have transformed, such as Domino's Pizza using digital strategies to regain market share.
DBS Bank was named the world's best digital bank by Euromoney in 2016 and 2018, beating competitors like Citi, BBVA, and ING. The CEO of DBS Bank, Piyush Gupta, accepted the award and said that banks of the future will be fundamentally different than today's banks due to their digital transformation. DBS Bank has spent three years focused on digital initiatives by changing employee mindsets and technology infrastructure to make banking simple and seamless for customers.
Mongolia transitioned to democracy in the early 1990s after a peaceful revolution. It now has a multi-party parliamentary democracy with freedoms of religion, expression, and private property rights guaranteed in its constitution. Mongolia's economy depends heavily on its mineral and agricultural sectors as it continues developing a market economy after transitioning from Soviet control.
The document discusses the Growth & Innovation Working Group of the Business Council Mongolia. The working group aims to:
1. Promote and advance business growth and innovation in Mongolian society through educating businesses, government, and the public on opportunities in research and development.
2. Enable all organizations to grow and innovate, not just start-ups or sectors traditionally thought of as innovative.
3. Focus on key objectives like digitalization, infrastructure, financial technology, data security, efficiency, public investment policy, and intellectual property protection to support the digital transformation of consumer and enterprise services through technologies like IoT, AI, fintech, blockchain, and more.
The working group plans events
The BCM held its January monthly meeting to discuss organizational updates. Key points:
- The BCM elected a new 15-member Board of Directors and appointed an Executive Committee and Working Groups.
- Two presentations were given on legal environments for asset management in Mongolia and on responsible mining.
- The BCM revised its mission statement to focus on providing members with policy research, training, and networking support for business in Mongolia.
- The BCM reorganized its working groups, which are now chaired by Board members, and strengthened its secretariat.
The document discusses Mongolia, Russia, and China's economic corridor program. It notes that the program aims to improve connectivity between the three countries through projects involving railway, roads, energy transmission lines, gas and oil pipelines, and high-speed internet. There are currently 32 projects across areas like infrastructure, energy, agriculture, border cooperation, trade, environment, education, medicine, and more. The document also discusses plans to establish a joint center for investment planning and projection in Ulaanbaatar to facilitate implementation of the economic corridor program projects and further trilateral cooperation.
This document provides information on business opportunities through procurement for Mongolia's Second Compact Agreement with the Millennium Challenge Corporation (MCC). It outlines that the total grant value is $350 million to fund activities supporting economic growth and poverty reduction in Mongolia. Key business opportunities include consulting services, goods, and construction works valued at approximately $44 million for the base year. The presentation also reviews MCC's procurement principles of transparency, fairness and competitiveness. It provides details on the procurement process and how opportunities will be advertised.
Acolyte Episodes review (TV series) The Acolyte. Learn about the influence of the program on the Star Wars world, as well as new characters and story twists.
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The Biggest Threat to Western Civilization _ Andy Blumenthal _ The Blogs.pdfAndy (Avraham) Blumenthal
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El Puerto de Algeciras continúa un año más como el más eficiente del continente europeo y vuelve a situarse en el “top ten” mundial, según el informe The Container Port Performance Index 2023 (CPPI), elaborado por el Banco Mundial y la consultora S&P Global.
El informe CPPI utiliza dos enfoques metodológicos diferentes para calcular la clasificación del índice: uno administrativo o técnico y otro estadístico, basado en análisis factorial (FA). Según los autores, esta dualidad pretende asegurar una clasificación que refleje con precisión el rendimiento real del puerto, a la vez que sea estadísticamente sólida. En esta edición del informe CPPI 2023, se han empleado los mismos enfoques metodológicos y se ha aplicado un método de agregación de clasificaciones para combinar los resultados de ambos enfoques y obtener una clasificación agregada.
1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 220 – May 4, 2012
NEWS HIGHLIGHTS:
Business:
Erdenes-TT pushes back IPO date to 2013;
Energy Resources reaches final round for social responsibility award;
Foreign investment law unlikely to be retroactive, says vice minister;
Ivanhoe names new CEO and CFO;
Voyager's managing director resigns;
Entree’s Heruga continues to grow;
Kincora concludes Golden Grouse acquisition;
Ex-Im Bank and Development Bank of Mongolia pledge cooperation;
Standard Chartered sees strong growth;
SGS opens OT lab;
Aspire Mining: Q1 report;
Voyager Mining: Q1 report;
Kumai to issue USD 7 million IPO;
Eumeralla Resource’s IPO listed on ASX;
Meet Up and Investor Summit in Ulaanbaatar;
China, Mongolia to hold investor forum;
Vale sees higher taxes ahead, but greater iron ore demand too;
Xstrata to sell Canadian coal project partnered with Erdene Resource;
Chalco swings to quarterly loss from aluminum business.
Economy:
Mongolia to create USD 600 million sovereign fund for pensions in July;
Government greenlights MMC's rail project to China border;
Mongolia wary of Chinese investment;
Curbing air pollution in the capital;
Development begins on green pilot home;
Coal seen rebounding as China sets record steel output;
Looking to frontier markets for the next big thing;
For investors, a narrow bumpy road to Asia's latest frontier;
Mining the Chinese consumer;
Pain for Hong Kong IPO buyers;
Mining investment driving Australia's growth.
Politics:
Mongolia eyes new foreign investment law;
Election committee announces electoral scheme;
Parliamentary elections to cost MNT 16.8 billion;
Printing of new IDs to begin in July;
Four MPs abandon MPP for Enkhbayar's party;
MNDP, MPRP form coalition;
Government announces 20 May deadline to cash out Erdenes-TT shares;
Enkhbayar to remain in prison for two months during corruption investigation;
Government lifts fines on fuel importers;
2. MCA-Mongolia honored for achievements;
Clinton lauds Mongolia's lead in Community of Democracies;
Mongolia relates importance of reducing its air pollution to U.S. officials;
Japan relaxes visa requirements for Mongolians;
Politics dig into mining;
Steppe in an ugly direction.
ECONOMIC INDICATORS:
MSE Top 20 Index by Market Capitalization;
Foreign-listed Companies with Mongolian Assets;
Supermarket Price Comparison – April 2012;
Inflation;
Central Bank policy rate;
Currency rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank Eznis Airways
Kempinski Hotel Khan Palace Mongolian National Broadcasting
Mongolian Star Melchers Breakthrough PR
Asia Pacific Securities Oxford Business Group
3. BUSINESS
ERDENES-TT PUSHES BACK IPO DATE TO 2013
Erdenes-Tavan Tolgoi has pushed back plans for an international stock market debut to early 2013,
disappointing hopes its initial public offering (IPO) would boost London's fortunes this year. The
state-owned group is planning to list 29 percent of the firm in a float analysts say could raise about
USD 3 billion.
"Now we are set up to target our IPO in the first quarter next year," chief executive B. Enebish said.
Earlier hopes were for a listing before Mongolian elections in June, though that had already been
pushed back to later in 2012. Enebish said Tavan Tolgoi, which cannot complete listing plans until
Parliament passes a key securities law, was waiting to determine the equity structure of the
company after shares were distributed to Mongolian citizens, who can either keep them or sell
them back to the state.
The delay to the listing will force the company to raise "several hundred million" dollars to pay for
the start of infrastructure projects and other work that would otherwise have been financed by the
IPO proceeds. Enebish said no decision had been made, but options included a convertible bond.
The company is pressing ahead with plans for a three-way listing in Hong Kong, London and
Ulaanbaatar, potentially simultaneously, Enebish said, dismissing concerns the Hong Kong leg could
be dropped over regulatory issues. The London leg could be an issue of shares or global depository
receipts. Only a handful of companies have listings in three cities, given cost and practical
considerations.
Uncertainty around the western block of the coal deposit has been another factor to the delay. Last
July Mongolia and China's Shenhua Group, United States-based Peabody and a Russian-Mongolia
consortium headed by Russian Railways would be given rights to the project. Japanese and South
Korean bidders complained, leading the government to rethink its decision.
A senior executive at the mine said last week said Mongolia might develop the western block itself,
but Enebish said the negotiations have "not stopped completely, it is pending now. From the
company valuation perspective, it needs to be clarified before our IPO."
Source: Reuters
ENERGY RESOURCES REACHES FINAL ROUND FOR SOCIAL RESPONSIBILITY AWARD
Energy Resources LLC, the Mongolia-based coal mining subsidiary of Mongolian Mining Corp. (MMC),
has been placed among the top 6 from a list of 100 companies competing for the ―Global Corporate
Social Responsibility‖ award.
Companies that compete for this award are typically global companies operating on multiple
continents with a long history and a legacy of rich social responsibility. MMC has passed to the final
round of choices for the honor.
The relatively young miner's standing with companies with up to 100 years of experience, such as
Standard Chartered Bank, Proctor & Gamble, FedEx, DHL, and Huawei, is apparently a testament to
the great strides it has made in implementing international standards into its business practices. It
also speaks on the company's policies, planning and innovation with its economic development
efforts to Mongolia.
The company says it has put social responsibility as a high priority since its inception. It was
established with the combined financing of MMC, Petrovis LLC, and Shunkhlai Group. It currently
operates from the Ukhaa Khudag coal mine at Tsgottsetsiin Soum, Umnugobi Aimag.
Source: Zuunii Medee
FOREIGN INVESTMENT LAW UNLIKELY TO BE RETROACTIVE, SAYS VICE MINISTER
Mongolia's vice minister of finance has hinted that Mongolia is not dead-set to shoot down the
Aluminum Corp. of China's (Chalco's) proposal to buy Ivanhoe Mine Ltd.'s 57.6 percent stake in
SouthGobi Resources Ltd. Ivanhoe Mines has said it would use those funds to help finance
development of its world-class Oyu Tolgoi copper and gold mine.
The Mongolian government said after Chalco's proposal was announced that it would suspend
4. SouthGobi's license for its several large coal projects and would introduce new foreign investment
legislation.
―I don't think the law will be retroactive. The Chalco deal is still ongoing, still on the table,‖ said
Vice Minister of Finance Ch. Ganhuyag. He added that the new law would only apply to investment
in certain deposits, but the list would go beyond the country's current list of strategic assets.
―There must be some sort of threshold,‖ he said.
The vice minister also mentioned that Mongolia was keen to cooperate with Beijing on securing
access to the seaborne coal market, for example through the port of Tianjin.
Ganhuyag did not elaborate on whether the legislation would involve specific shareholders limits for
a foreign on foreign state-owned entity, but said it would bring Mongolia into line with other
resource-rich states like Canada and Australia.
Source: Reuters
IVANHOE NAMES NEW CEO AND CFO
Ivanhoe Mines Ltd. announced that its board of directors has appointed Kay Priestly as Chief
Executive Officer, stepping in to replace well-known mining billionaire Robert Friedland, and Chris
Batemans as Chief Financial Officer.
The management changes were contemplated by the memorandum of agreement signed with
majority shareholder Rio Tinto PLC. The agreement included a comprehensive financing package,
which is intended to cover Ivanhoe Mines total funding needs to complete the development of its
huge Oyu Tolgoi copper and gold project.
"On behalf of the board, I would like to congratulate Kay and Chris on their appointment as CEO and
CRO, respectively," said Interim Chairman Michael Gordon. "This is an important point in Ivanhoe's
history as Oyu Tolgoi prepares for its planned start-up later this year, transitioning from an
exploration project to a world-class, tier-one, copper-gold mine and one of Mongolia‘s largest
mining operations."
Priestly previously was a senior executive of Rio Tinto and has served as a director of Ivanhoe Mines
since February 2011. Most recently she served as chief financial officer of Rio Tinto's global copper
product group. Bateman previously was a senior executive of Rio Tinto and served as chief financial
and business development officer of the company's diamonds and minerals product group since
2010.
Source: Ivanhoe Mines Ltd.
VOYAGER'S MANAGING DIRECTOR RESIGNS
Voyager Resources Ltd. has announced the resignation of Managing Director Kell Nielsen.
The company said Nielsen has stepped down to pursue other business opportunities, but would
continue to consult Voyager Resources on the development of the KM copper project. The board
noted that Kell had helped ―in leading the discovery of arguably the most exciting copper discovery
in Mongolia since the giant Oyu Tolgoi copper deposit.‖
The company will continue to be managed on a daily basis by George Tumur, operations director,
and Matthew Wood, executive chairman.
Source: Voyager Resources Ltd.
ENTRÉE‟S HERUGA CONTINUES TO GROW
Entrée Gold Inc. reported an uncovered copper and molybdenum mineralization at its Heruga
project that has expanded the size of the deposit there.
―This hole is significant because it extends the known limit of mineralization for this section of the
deposit by 150 meters to the east and 150 meters deeper,‖ said Greg Crowe, president and chief
executive officer. ―It also supports the working theory that gold grades increase to the east and at
depth along the Oyu Tolgoi mineralized trend.‖
The company's exploration team intersected 590 meters of 0.33 percent copper, 0.7 grams per ton
of gold, and 56 parts per million molybdenum at hole EJD0034A. The hole was drilled by joint
venture manager Oyu Tolgoi LLC on the Entree OT LLC joint venture property.
5. Source: Entrée Gold Inc.
KINCORA CONCLUDES GOLDEN GROUSE ACQUISITION
Kincora Copper Ltd. concluded its share exchange agreement with Temujin Mining Corp. for the
acquisition of Golden Grouse LLC, an indirectly wholly-owned subsidiary of Temujin.
Golden Grouse is a Mongolian company that holds mineral exploration license adjoining Kincora
Copper's Bronze Fox project in Mongolia. In exchange for the entirety of shares of Golden Grouse,
Kincora Copper has issued Temujin Mining 20 million shares of its shares and a portfolio company of
Aberdeen International Inc, an investment corporation and a member of the Forbes & Manhattan
Group.
On closing, Temujin retained some 1.5 million Kincora shares and paid out dividends to remaining
shareholders of Temujin Mining. Kincora is also responsible for fulfilling a working commitment
within a two-year period, or issue 15 million "bonus shares" to Temujin.
"We now hold two of [Ivanhoe Mines Ltd.'s] former high priority targeted properties in Mongolia, the
Bronze Fox and Tourmaline Hills," said Kincora President and chief executive officer Igor Kovarksy.
"Kincora now has one of the largest land holdings along the highly prospective copper belt hosting
Oyu Tolgoi."
The chief executive later added that its 2012 drilling program would start this week.
Source: Kincora Copper Ltd.
EX-IM BANK AND DEVELOPMENT BANK OF MONGOLIA PLEDGE COOPERATION
The Export-Import Bank of the United States and the Development Bank of Mongolia signed a
memorandum of understanding to facilitate trade opportunities between the United States and
Mongolia.
"Mongolia has one of the fastest growing economies in the world, and there are enormous
opportunities for U.S. businesses to help meet the country's growing infrastructure needs," said Ex-
Im Bank Chairman and President Fred Hochberg.
Chairman Hochberg was on a business-development mission in Mongolia to encourage sourcing of
U.S. products and services for regional infrastructure projects. The bank has historically had limited
exposure in the country, however, several products are currently in the pipeline that will increase
the Ex-Im Bank's activity.
Source: Export Import Bank of the United States
STANDARD CHARTERED SEES STRONG GROWTH
Standard Chartered PLC, which is currently preparing for the official opening ceremony for its
Ulaanbaatar representative office this month, posted high single-digit revenue growth in the first
quarter and flagged plans to roll out more branches to snatch up market shares in fast-growing
economies.
The Asia-focused bank said the strength of the U.S. dollar against Asian currencies combined with
complex regulatory requirements slowed the bank's income growth below its customary double-digit
increase.
However, the lender re-affirmed its full-year targets of double-digit growth and pledged to boost
investment as it seeks to lure customers and improve services. The extra money will be spent on
Propping up infrastructure and building more branches, especially in mainland China, said group
Finance director Richard Meddings in a call with analysts.
―Accelerating investment is a real source of confidence,‖ he said and the extra investment will
mean that the bank's costs will increase in line with income in 2012.
The United Kingdom-based bank said it posted low-double-digit operating profit growth in the three
months ended 31 March, helped by a strong performance across major markets such as Hong Kong,
Malaysia, Indonesia, China and regions in the Americas, United Kingdom, and Europe, which more
than offset the impact of subdued domestic business sentiment in India. The positive income
momentum continued into February and March, Meddings said.
Overall, Standard Chartered expects the global economy to improve despite renewed fears over the
6. solvency of several euro-zone countries. ―Macroeconomic sentiment is showing signs of
improvement although there remain clear uncertainties and risks in the global environment,‖ Chief
Executive Peter Sands said in a statement.
Source: Wall Street Journal
SGS OPENS OT LAB
SGS SA has been awarded the operational contract for the on-site laboratory at the Oyu Tolgoi
copper and gold mine in Umnugobi Aimag.
Operations at the on-site laboratory are expected to begin 1 June. The new facility will employ
more than 50 staff currently undergoing training at SGS's local facility in Ulaanbaatar, and operate
24 hours a day, 7 days a week.
Source: SGS SA
ASPIRE MINING: Q1 REPORT
Aspire Mining Ltd. has released its quarterly report with news of drilling at a new site, a pre-
feasibility study for a rail line, and exploration results from its Ovoot coking coal project.
The firm reported 4,100 meters of exploration drilling to a "new discovered area" at the Ovoot
project, located in northern Mongolia. It is currently working on the completion of a pre-feasibility
study for there. It expects results sometime this month. Aspire mining has thus far spent AUD 17
million (USD 17.6 million) on the discovery and development at Ovoot.
The firm has also begun its feasibility study for the construction of a 170-kilometer road connecting
Ovoot to the provincial capital of Moron. Additionally, Sedgman Ltd. has completed a preliminary
design study for a coal-handling and-preparation plant for inclusion in Aspire Mining's pre-feasibility
study. The plant would hold two 900-tonnes-per-hour wash plants for annual production of 16
million tons of washed coal.
A power supply study has also been completed by Snowy Mountains Engineering Corporation to
connect a main 110 kilovolt power grid that has already been constructed over the Ovoot project. A
new coal-fired power station is underway by a private power supply company approximately 70
kilometers south of Ovoot with a completion target for mid-2013.
In addition to Ovoot, Aspire Mining holds exploration licenses at the Nuramt Basin and earns 70
percent interest in the Zavkhan iron-ore project. It is seeking a permission for drilling at the
Zavkhan project.
Source: Aspire Mining Ltd.
VOYAGER RESOURCES: Q1 REPORT
Voyager Resources Ltd. has released its quarterly report, highlighting drilling results.
The company reported drilling results from its KM copper porphyry project during the quarter with
first assays being received from drilling at the Aranjin Discovery. Aranjin is the third shallow
hydrothermal breccia discovered the at KM project. Drilling highlights included between 0.6 and 2.1
percent of copper and 5.3 and 15.2 grams per tons of silver.
Source: Voyager Resources Ltd.
KUMAI TO ISSUE USD 7 MILLION IPO
Kumai Energy Ltd. has announced its intention to raise USD 7 million in an initial public offering on
the Australian Securities Exchange.
"China's shift to a net importer of coking coal since 2009 has seen Mongolia set up as China's natural
supplier of coal," said Managing Director Craig McGuckin in a letter to potential investors.
The company plans to raise its targeted USD 7 million through the issuance of 35 million shares at
USD 0.20 a share.
Source: Kumai Energy Ltd.
EUMERALLA RESOURCE‟S IPO LISTED ON ASX
Eumeralla Resource Ltd. has been admitted to the official list of the Australian Securities Exchange
7. (ASX).
The company released some 20 million shares following a successful initial public offering issuing
17.5 million shares at AUD 0.20 per share to raise a minimum of 3.5 million.
Eumeralla Resources is focused on the acquisition and exploration of mining projects in Mongolia.
The company already holds one granted minerals exploration license in northeast Mongolia that
covers 12,657 hectares, including the historical Chuluun Khoroot tungsten mine, active between
1945 and 1955.
The license is located about 20 kilometers north of the town of Dashbalbar and 85 kilometers
northwest of the Solowevsk-Choibalsan railway.
Source: Proactive Investors
MEET UP AND INVESTOR SUMMIT IN ULAANBAATAR
Investors will gather at the Meet Up and Investor Summit in Ulaanbaatar from 25 to 28 July.
This event hosted by the CapitalistExploits.at web company is geared toward institutional and
sophisticated investors looking to conduct on-the-ground special situations due diligence and risk
assessment. The three-day summit will include a tour of the Mongolian Stock Exchange (MSE),
investor briefing, roundtables, networking opportunities, a city real-estate tour, as well as meetings
with bankers, members of Parliament, and government decision makers.
Scheduled presenters include Harris Kupperman of Mongolia Growth Group and James Passin of
Firebird Management, LLC.
Source: CapitalistExploits.at
CHINA, MONGOLIA TO HOLD INVESTOR FORUM
China's Longan Law Firm, in conjunction with the construction equipment supplier Volvo Group, will
host the Chinese and Mongolian Investment Forum 2012 event on 18 May in Beijing.
The event will be an opportunity for business representatives from each nation to present joint
projects and lead discussions on investment opportunities into the Mongolian mining and
construction industry and legal environment. Among the 50 Chinese businesses in attendance will be
Shinhua Group, China Gold Group, and the China Development Bank, as well as 40 Mongolian
companies.
The forum has received support from both entities as well as the Mongolian and Chinese mining
associations. The event will also include a job fair for Mongolian students studying in China.
Source: Zuunii Medee
VALE SEES HIGHER TAXES AHEAD, BUT GREATER IRON-ORE DEMAND TOO
Vale SA, parent company of Mongolian coal miner Tethys Mining LLC and the world's largest iron-ore
miner, expects demand and prices for its main product to recover through 2012, but is likely to face
bigger future tax bills that would make it harder to capitalize on any improvement in metal
markets, company executives said.
Chief Executive Murilo Ferreira said on Thursday in a post-results conference call with analysts that
Vale expects to meet the company's 2012 estimates for sales of 310-million tons of iron-ore, its
main revenue earner, despite poor sales in the first quarter.
The company reported late on Wednesday that its first-quarter earnings dropped by nearly half
from a year ago due to rainy weather over the regions of Brazil, out of which Vale mines and ships
its ore to foreign markets. Moreover, Vale executives began to prepare investors for the eventuality
of higher company tax rates and royalties in the future as governments, most notably in Brazil and
Argentina, seek to take a bigger piece of the China-driven boom in demand for metals.
Director of Ferrous Metals Jose Martins said he expected sales volumes of iron ore to improve in the
second quarter as the rainy season comes to an end. He said after iron-ore prices dropped to USD
120 to USD 130 a ton in the past months, they have stabilized at a "reasonable" level of USD 150 a
ton.
"We expect sales volume to improve and iron-ore prices to rise based on Chinese steel production
tendencies," Martins said. "As demand picks up later in the year, we should see prices rising to a
8. level of around USD 180 [a ton]."
Source: Reuters
XSTRATA TO SELL CANADIAN COAL PROJECT PARTNERED WITH ERDENE RESOURCE
Coal mining major Xstrata Coal and Zuunmod copper project miner Erdene Resource Development
Corp. last week announced in a joint statement that Xstrata Coal was seeking an operating coal
company to buy its interest in the Donkin coal project in the province of Nova Scotia, Canada.
Xstrata said it was interested in pursuing larger-scale projects.
―Over the past decade, Xstrata has evolved, as has our business strategy, and core to that is a focus
on larger volume mining complexes,‖ said Xstrata Coal chief executive Peter Freyberg.
Xstrata, under a joint venture agreement, is committed to fund the first USD 10 million of Erdene's
development funding requirement and would bring forward up to USD 1 million of this to cover
Erdene's share of expenditure on the project during the sales process. It added that it still believed
the Donkin project to be a valuable asset to a qualified partner and remained positive about its
viability.
Erdene has a 60-day right of first refusal on the sale by Xstrata Coal of its interest in the Donkin
project. The Donkin mine was expected to produce 2.75 million washed-coal tons a year and would
directly employ about 300 people, targeting coal production by mid-2014.
Source: Mining Weekly
CHALCO SWINGS TO QUARTERLY LOSS FROM ALUMINUM BUSINESS
Aluminum Corp. of China Ltd., the nation's biggest producer of the lightweight metal and a
company that has caused rifts in Mongolian society as it tries to diversify its production with
Mongolian coal assets, swung to a loss in the first quarter. It said it may be unprofitable in the first
half because of weak prices and higher fuel costs.
Aluminum prices in London fell 12 percent in the first quarter from a year earlier as a slowing global
economy curbed demand amid an industry overcapacity. Chalco Chief Executive Officer Xiong
Weiping plans to diversify into rare earths, coal and iron ore as profit margins shrink in its aluminum
business.
―Chalco's aluminum business may incur big losses this year because prices are below production
costs,‖ Robin Tsui, a Hong Kong-based analyst with BOC International Holdings Ltd., said today
before the earnings announcement. ―The losses are factored into the share price. The proposed
acquisition of coal assets may boost the balance sheet in two or three years.‖
The company expects to record a first-half loss ―because aluminum-products prices remain hovering
around low levels and raw material and fuel costs stay high,‖ it said in a statement.
Earlier this month, it agreed to buy a stake of as much as 60 percent in Mongolian coal producer
SouthGobi Resources Ltd. for CAD 925 million (USD 943 million), its biggest deal since it paid USD
1.35 billion for a stake in Rio Tinto PLC's Simandou iron ore project in Guinea in July 2010.
Mongolia's Mineral Resources Authority last week requested the suspension of projects, including
SouthGobi Resources Ltd.'s Ovoot Tolgoi mine, while it reviews Chalco's proposed purchase.
Chalco also agreed to buy 29.9 percent of Mongolian coal exporter Winsway Coking Coal Holdings
Ltd. for HKD 2.39 billion (USD 308 million) from Winsway‘s Chairman and controlling shareholder,
Mr. Wang Xingchun.
Source: Business Week
ECONOMY
MONGOLIA TO CREATE USD 600 MILLION SOVEREIGN FUND FOR PENSIONS IN JULY
Mongolia plans to set up a new sovereign wealth fund with USD 600 million after the country's June
elections, Vice Minister of Finance Ch. Ganhuyag said a conference in London.
The country also plans to raise the size of its existing stabilization fund to USD 500 million from USD
200 million by the end of the year, he told reporters at the Mongolia Capital Markets Day
9. conference at the London Stock Exchange.
The new fund, which will finance pensions, is set to be created on 1 July, Ganhuyag said.
Source: Bloomberg
GOVERNMENT GREENLIGHTS MMC'S RAIL PROJECT TO CHINA BORDER
The government has officially approved Mongolia Mining Corp.'s (MMC's) proposal for the
construction of a railroad to the Gashuun Sukhait China Mongolia border point. A lack of rail
infrastructure has led to bottlenecks in mineral exports.
The government has given the greenlight to MMC's proposal to construct a rail from its Ukhaa
Khudag coal mine to the Gashuun Sukhait. Officials have been assigned to the project to ensure the
rail complies with Mongolian law.
Government has also place support behind a line that would run from Ukhaa Khudag to Tavan
Tolgoi, and then to the Sainshand China-Mongolia border point.
Source: Frontier Securities
MONGOLIA WARY OF CHINESE INVESTMENT
Although Myanmar has taken the spotlight from Mongolia for adventurous frontier investment, China
has never lost interest in Mongolia.
State-owned giant Aluminum Corp. of China Ltd. (Chalco) has made large investments in the
resource-rich country in recent weeks. But a recent deal in Mongolia has hit a stumbling block, and
signs are starting to show that the country may be slowly closing its doors to foreign ownership,
especially from China.
Chalco is already a big player in Mongolia, taking 80 percent from Tavan Tolgoi. Seeking to diversify
from aluminum, Chalco in April spent more than USD 300 million for a stake in Winsway Coking Coal
Holdings Ltd., a trading firm that dominates the import of Mongolian coal into China. That followed
a bid of almost USD 1 billion for a majority stake in SouthGobi Resources Ltd., which is controlled
by Canada's Ivanhoe Mines Ltd.
But Chalco's bid for SouthGobi Resources—to which Ivanhoe Mines agreed--appears to have spooked
China-wary Mongolian officials. SouthGobi Resources says the deal is being reviewed by the
Mongolian government on national security grounds. The back story is that Parliament is looking to
put in place limits on how much a foreign state body can hold in a strategic resource, a political
move ahead of the country's June elections.
Even as Mongolia is concerned about relying too much on China, its options are limited. Neighboring
China is the world's largest use of resources, meanwhile landlocked Mongolia faces difficulties
getting its good to the Pacific Ocean to supply the rest of the world. Russia, to the north, has its
own raw materials, and exporting Mongolia commodities through vast Siberia to the sea is
uneconomical.
China's demand has been key to Mongolia's success, but the country is now signaling it may not want
to give up more to its powerful neighbor.
Source: Wall Street Journal
CURBING AIR POLLUTION IN ULAANBAATAR
Ger dwellers in Ulaanbaatar are growing vulnerable to sever respiratory illnesses when forced to
break thick, toxic smog, reported the World Bank.
Air pollution was monitored year round in Ulaanbaatar's ger districts for the first time during a
study, as published in a new report by the World Bank. The calculated exposure of the population
to 2.5 particulate matter in the city was found to be on average through the year, 10 times higher
than Mongolian air quality standards mandate and six to seven times more than the most lenient
World Health Organization (WHO) targets.
Ulaanbaatar's air pollution comes from many sources—dust from the desert, unpaved roads, lack of
vegetation, ash and emissions from coal stoves, power plants, boilers, and vehicles. But coal and
wood burning by the 175,000 households in the ger districts contributes to the severity of air
pollution in wintertime—summer air pollution is much lower than in winter.
10. "Today children are suffering from many unfamiliar illnesses caused by air pollution," said ger
district resident Gerelchimeg. "As a mother I am very worried about my children's health and my
neighbors' newborns."
International organizations such as Millennium Challenge Corp. (MCC) and Asian Development Bank
are working with the Mongolian government to find solutions.
With the support of the World Bank, the government has mobilized about USD 45 million in donor
assistance. The bank also approved an additional USD 15 million credit for the Ulaanbaatar Clean
Air Project, led by the Ulaanbaatar city government.
Read more…
The World Bank's study finds that reducing air pollution in Ulaanbaatar will require sustained
efforts. Achieving the standards for air quality means reducing particulate emissions by 94 percent
at the ger districts.
For the short term, the Clean Air Project will help replace stoves and low-pressure boilers used now
by ger-dwelling families with new energy-efficient models that burn fuel more cleanly. It will
provide subsidies to bring down the cost as well.
"There is no magic bullet for reducing air pollution," said Galius Draugelis, a lead energy specialist
at the World Bank. He added, "Many solutions will require Ulaanbaatar citizens to change
technologies and learn how to use them."
Source: World Bank
DEVELOPMENT BEGINS ON GREEN PILOT HOME
A construction company in Ulaanbaatar will introduce new solutions to heating and air pollution
issues in the capital with the construction of a pilot building. Its developers plan to unveil the
finished home after two years of construction and development.
Building Technology Co. Ltd. will lead the project using blueprints developed with the aid of
Swissmade Mongolia LLC. The design will utilize natural lighting and a uniquely designed staircase,
walls and ceiling to mimic that of a traditional Mongolian ger. For eco-friendly energy consumption,
the structure will utilize solar panels and wind turbines.
The company said it chose special concrete wall material that would be easy to procure in the
domestic market and is well suited for Mongolia's harsh climate. For greater insulation, it will take
advantage of 330 millimeter thick stone and wool, as well as triple-paned windows. It also uses
earthquake-resistant concrete for added safety.
The structure will make use of a pipe network underneath the floor for warmth in winter and cool
temperatures in summer, in addition to an air conditioning device that controls the temperature of
air entering and exiting the home. Finally, it will recycle water to decrease valuable water
resources to suit Mongolia's overly dry environment.
Source: Udriin Sonin
COAL SEEN REBOUNDING AS CHINA SETS RECORD STEEL OUTPUT
The price of coking coal, which has quickly caught up with copper to become a major export for
Mongolia, is set to rebound as early as July from four straight quarterly declines as China and India
see raw material overseas to fire new steel production in the world's fastest-growing major
economies.
Contract prices that fell to USD 206 a metric ton for the quarter ending 30 June may rebound to
average USD 225 a ton this financial year, based on the mean estimate of 10 analysts, steelmakers
and mining companies surveyed. Contracts of coking coal, a key ingredient used to make steel,
peaked at USD 330 in the June quarter last year.
China, the largest steel producer and the top consumer of Mongolia-borne coal products, is leading
demand growth forecast at almost 10 percent this year. India, the third-biggest steelmaker, is set
to boost capacity by a third to more than 100 million tons in a five-year USD 1 trillion plan to build
roads, bridges, and railway networks.
China may surpass Japan as the biggest coking coal importer by 2015, a position it may eventually
relinquish to India, Robertson said.
11. Urbanization and infrastructure building in central and western China will fuel ―very strong‖ steel
demand, said Fortescue Metals Group Ltd.'s chief executive officer. Global trade in coking coal may
rise 9.6 percent to 297 million tons this year, compared with a 0.7 percent drop last year. Mongolia,
which became China's biggest supplier of coking coal in July 2011, will probably continue to growth
this year, Dr. G. Battsengel, Chief Executive Officer at Mongolian Mining Corp. said in March.
Read more…
Growth in China slowed more than forecasted last quarter to its least in almost three years,
prompting economists to predict a rebound as the government loosens policy to counter weak
domestic and European demand. Gross domestic product expanded 8.1 percent from a year earlier
after an 8.9 percent fourth-quarter gain. Demand for importing coking coal in China may rise 37
percent to 63 million tons this year from last year too.
Source: Bloomberg
LOOKING TO FRONTIER MARKETS FOR THE NEXT BIG THING
Emerging-market portfolio managers specialize in finding the next big thing. But after the
transformation of many economies in Asia and Latin America, such as the one Mongolia has
experienced, in the past two decades and the strong returns and mainstream popularity of their
markets, what is left to be found.
Frontier markets are often in a much earlier state of economic development than larger emerging
markets and may have only recently opened to foreign investing,‖ said Mark Mobius one of the
pioneers of investing in the developing world. ―This helps explain their high-growth potential.
Newer markets typically have more room to grow, and the search for growth potential amid acute
global volatility is encouraging many investors to expand their horizons.‖
A recent report by Citigroup identified 11 economies expected to show exceptional growth through
the middle of the century, including two of the usual suspects, China and India. Most of the others
are frontier markets—Bangladesh, Iraq, Mongolia, Nigeria, Sri Lanka, and Vietnam—or else minor
emerging markets that mangers of frontier portfolios sometimes invest in.
Advocates of investing in places like these expect them to become the markets of tomorrow. As for
today and yesterday, well, that's a different story. The MSCI Frontier Markets Index lost about two-
thirds of its value during the global collapse of 2008 and 2009. That is slightly worse than MSCI's
indexes of global emerging and mature markets, but where frontier markets really suffer in
comparison is in the period since then. The recovery in frontier markets has been much shallower,
leaving the index at less than half of its 2008 high, while the other two indexes have recovered
nearly all of their lost ground.
Source: New York Times
FOR INVESTORS, A NARROW BUMPY ROAD TO ASIA'S LATEST FRONTIER
Mongolia is so 2011; Myanmar is stealing some of its glory.
The 55 million-person Southeast Asian nation, tucked between India and China, is emerging from
nearly two decades of Western sanctions. The military junta whose actions precipitated those U.S.
and European strictures promoted the use of the name Myanmar, beginning in 1989. Before that,
the country was known as Burma—a name still used by some.
Investor interest was first piqued in March 2010, with the formation of a new government, which in
turn followed on the release of the National League for Democracy leader Aung San Suu Kyi from
house arrest in November 2010. Since then, reform has hurtled forward with the easing of sanctions
and parliamentary by-elections in April 2012. Right how, though, the country's economic isolation, a
legacy of the Western sanctions, means there are only very limited ways to get financial exposure
to it.
Given plans to establish a new Myanmar stock exchange by 2015, patient investors may end up
having more choices, however, which would eliminate any scarcity premium for the current
Myanmar plays. This is not to say the future is not bright for Myanmar; but that assumption already
is built into the price of the stocks available there. The current fervor also indicates how far the
current global bull market has run since March 2009. '
12. Frontier markets need a good story—like Mongolia had with its transition from a communist Soviet
satellite to a prized example of a developing democracy and blossoming market economy—and
typically captures investors' imagination late in the cycle. In that respect, Myanmar's mood feels
similar to the excitement that whirled around Vietnam in 2006. But Vietnam had a fledgling stock
market to soak up liquidity; the Burmese excitement has by default focused on small clutch of
names.
Alas, those who got caught up in the Vietnamese hype through late 2007 experienced a dizzying
drop in 2008. Will investors fare better in Asia's latest frontier?
Source: Barrons
MINING THE CHINESE CONSUMER
A phrase you don't often hear: Significant growth in the United States more than offset slowing in
China. That's what Caterpillar, a supplier of mining equipment in Mongolia via Wagner Asia, Chief
Executive Doug Oberhelman says in the company's first-quarter report.
Caterpillar, which boasted 29 percent year-to-year profit growth in the first quarter, wasn't alone in
complaining of weak demand from China. Brazilian iron-ore producer Vale reported that revenue
from China fell nearly 12 percent year-to-year in the first three months of the year, contributing to
a roughly 44 percent fall in net earnings.
There's a cyclical aspect to the downturn in China's investment. When the government removes its
controls on the property sector, demand for earth movers, iron ore, and elevators, will rise again.
But the stark contrast between the first quarter results in a reminder that the structure of China's
demand is changing. In the past mining iron was the best way to profit from China's growth. In the
future, mining consumers' wallets may do just as well.
Source: Wall Street Journal
PAIN FOR HONG KONG IPO BUYERS
Companies ranging from China's biggest banks to the world's top makers of luxury goods to
Mongolian miners such as Mongolian Mining Corp. have tapped the Hong Kong capital market in the
past three years, making it the world's leader. But investors who bought shares in many of the city's
offerings are not cheering.
The average initial public offering (IPO) in Hong Kong since the start of 2009 is down 13 percent,
and more than two-thirds of the offerings have underperformed on the Hang Seng Index since their
listings. Investors are showing signs of shunning new listings, and regulators are planning to set up
regulations, including potentially making underwriters criminally liable for accuracy of the listing
prospectuses given to investors.
"We'll need to see a few successful IPOs before we have some confidence," said Alex Au, managing
director of Richland Capital Management Ltd., a Hong Kong-based hedge fund.
Hong Kong was the top venue in the world for IPOs in 2009, 2010, and 2011, raising a total of USD
138.7 billion, driven by a surge in Chinese companies going public and western business seeking
exposure in Asia. Of the 127 companies that raised more than USD 100 million each in Hong Kong
IPOs in those three years, 72 percent were trading below their offering price and 69 percent had
underperformed Hong Kong's benchmark Hang Seng Index from since they went public through 23
April. Those numbers exclude five IPOS that have been suspended from trading, including Hontex
International Holdings Co., which Hong Kong regulators allege provided investors with false or
misleading information.
Hong Kong's regulatory watchdog, the Securities and Futures Commission (SFC), plans to release in
the next few weeks a consultation paper that is expected to propose changes that would hold IPO
underwriters liable for the contents of prospectuses. The SFC would then request public feedback
on any such proposals.
Some bankers say IPOs are performing poorly because they are priced too high. One reason is that
companies, in particular from China, sometimes turn to state-owned firms to buy shares, which
creates artificial demand.
Source: Wall Street Journal
13. MINING INVESTMENT DRIVING AUSTRALIA'S GROWTH
The resource sector accounted for nearly half of the AUD 450.2 billion (USD 463.2 billion) worth of
major investment projects under way or committed to in Australia, Deloitte Access Economics
reported on Wednesday. As Mongolia's number one competitor for mining commodity sales to China
and a country that has developed a resource-based economy, Australia should be one model for
foreign investment schemes Mongolia should look to as it seeks to regulate foreign investment.
In its quarterly Investment Monitor, Deloitte noted that some 45 percent of projects in the database
were in mining, with the sector showing AUD 105 billion growth from the previous year.
―Mining investment is the major driver of the surge in Australia's business investment growth, and
also of Australia's economic growth. With the investment pipeline of projects in planning also
dominated by mining, this trend is set to continue for some time,‖ the report said.
The report noted that had been the case for the past few quarters, major investments projects
continued to transition through the planning stages. During the quarter under review, energy major
Chevron's USD 29 billion Wheatstone Liquefied natural gas (LNG) project got under way, along with
Inpex Alpha's USD 30.8 billion Darwin LNG project, which transitioned to a committed status.
The Investment Monitor found that finding investment options in Australia was relatively simple,
however, it added that the smooth delivery of these pipelines was not guaranteed as a number of
supply side challenges faced the industry.
Source: Mining Weekly
POLITICS
MONGOLIA EYES NEW FOREIGN INVESTMENT LAW
Mongolia's parliament is considering a new law that could dramatically curtail foreign investment
across the country, restricting foreign ownership to 49 percent or less in wide swathes of the
economy.
The draft legislation is the clearest sign yet that Mongolia is uncomfortable with the large foreign
investments that have so far been a mainstay of economic growth. If passed in its current, the law
would mandate majority Mongolian ownership in businesses worth more than MNT 100 billion and in
―strategic‖ sectors including natural resources, transport, food, real estate, communications and
agriculture.
Although the foreign investment law was first drafted last year it was not presented to Parliament
until 24 April, following an attempt by state-owned Aluminum Corp. of China (Chalco) to invest
about USD 1 billion in a coking coal mine the Gobi Desert.
Chinese state-owned groups have been investing heavily in resource-rich neighbors such as Myanmar
and Kazakhstan. However, resource nationalism is on the rise along China's borders, as highlighted
by Myanmar's recent decision to suspend construction on a giant Chinese-funded hydropower
project. Chinese investments in Mongolia have often been stymied by historic mistrust between the
two countries.
Mongolia's draft foreign investment law could be revised significantly before it is passed. The role of
foreign investment, which comprises 62 percent of Mongolia's gross domestic product (GDP) last
year, is a central part of a political debate in advance of the June election.
Business leaders in Ulaanbaatar have expressed concern over the impact the law could have on
business, and the Business Council of Mongolia is expected to issue a statement on the law later this
week.
―If this law gets passed in its current form, then nothing will move in Mongolia and nobody will
come to invest,‖ said. B. Byambasaikhan, chief executive of Newcom Group.
Source: Financial Times
ELECTION COMMITTEE ANNOUNCES ELECTORAL SCHEME
The head of Mongolia's General Election Commission has introduced plans for this June's
parliamentary and regional elections to local press.
14. General election head N. Luvsanjav and Secretary Ch. Sodnomtseren introduced 35 initiatives and a
timetable for the implementation on the election law passed by Parliament. Officials have put a
temporary hold on electoral registration since the announcement of the election date last month.
The committee plans to announce the 26 district committees this week and then resume
registration by parties and coalitions 13 May. Registration for independent candidates will begin 14
May.
Once registration resumes candidates will begin their campaigns. Voters have also been advised to
check their names on the voter registration list from that time.
While elections for the Ulaanbaatar municipality will be held on the same day as state
parliamentary elections, regional elections will be held the following day. Parliament ultimately
decided it was best to hold elections on separate days to make sure votes could be accurately
counted by election staffs.
Just one voting form will be distributed on the first day of elections to be electronically counted by
machine. On election day there will be 2,500 machines counting votes, leaving one machine per
district of 15,000 people, and two or three machines for larger districts with greater populations.
The voting options on machines in different districts will look different as well, as the program will
introduce the names of the local candidate affiliated with party to each district.
Read more…
Mongolians living abroad will have the opportunity to cast their vote at their respective diplomatic
missions, and will only be able to vote for Parliamentary elections. After votes are cast they will be
sealed and sent to the Election Committee.
Voters will have to show their old identification cards, as the new electronic cards will not be
distributed in time for elections. Those attempting to use other documents in place of their official
state identification will be turned away.
Source: Zuunii Medee
PARLIAMENTARY ELECTIONS TO COST MNT 16.8 BILLION
The General Election Committee has proposed spending MNT 16.8 billion on the upcoming
parliamentary election on 28 June.
The funds would go to running operations at 340 election office and 1,950 units, and paying 10,000
personnel. An additional MNT 300 million would be spent on coordinating votes for Mongolians living
abroad.
For local elections, the Election Committee said municipalities would have to foot the bill
themselves.
Source: Udriin Sonin
PRINTING OF NEW IDS TO BEGIN IN JULY
Bodi International Group has officially stated that the delay in printing new ―smart‖ identification
cards is due to the need to change the programming to the scanning machines used in their
production.
Bodi International said it would begin printing the new cards in July instead of 6 April, as it had
originally planned. The electronic identification cards will hold data such as finger prints and
registered addresses on a computer chip embedded within them.
―Data Card, an American company, changed its reader program to adjust them to non-standard
applications chosen by the Central Election Committee,‖ said the company in its statement.
The government had partly planned to introduce new identification cards to prevent voter fraud in
the upcoming June Parliamentary elections. Angry protests and riots broke out that resulted in the
death of a reported five individuals in 2008 after word spread that the elections had been rigged.
However, the government has already decided that old identification card will be admissible in the
upcoming election.
In response to the delay, officials from the Ministry of Justice and the Authority on State
registration met with a representative from Bodi Electronics to reach an agreement. On 30 April a
programmer from Data Card came to Mongolia to begin changing the program operating on the
15. machines. A test run for printing began on 3 May, followed by official printing on 7 May.
The registration agency now has two machines at its disposal, each with the capacity to print one
card every three seconds.
Source: Udriin Sonin
FOUR MPS ABANDON MPP FOR ENKHBAYAR'S PARTY
Four policy makers have left the Mongolian People's Party (MPP) to join the Mongolian People's
Revolutionary Party (MPRP). Led by the recently arrested third president of Mongolia, N. Enkhbayar,
the MPRP is an offshoot of the currently ruling MPP in Parliament and has assumed its original
name.
MPs D. Terbishdagva, Ts. Davaasuren, Ch. Ulaan, and O. Chuluunbaatar announced their decision to
walk away from the MPP to MPP party leader U. Enkhtuvshin this week. ―These four are among the
nine who unsuccessfully demanded the resignation of Ts. Nyamadorj, Minister of Justice and
Internal Affairs.‖
The MPRP has recently received support among sympathizers of Enkhbayar following his arrest for
his refusal to cooperate with an investigation on corruption charges.
Source: News.mn
MPRP, MNDP FORM COALITION
The Mongolian People's Revolutionary Party (MPRP), headed by former President N. Enkhbayar, and
Mongolian National Democratic Party (MNDP) announced they would join for a coalition for the 28
June parliamentary election.
Both sides agreed they would establish a governing board composed of 20 members. The coalition
has chosen currently detained Enkhbayar as the head of that board. Newly joined member to the
MPRP D. Terbishdagva was elected as deputy, N. Udval as general secretary, MP O. Chuluunbat as
secretary and head of the central region committee, and MP Ch. Ulaan as secretary and head of the
east region committee.
The coalition has chosen "to establish justice" as its motto.
Source: News.mn
GOVERNMENT ANNOUNCES 20 MAY DEADLINE TO CASH OUT ERDENES-TT SHARES
The Mongolian government has announced 20 May to be the deadline for citizens requesting to sell
their shares of Erdenes-Tavan Tolgoi JSC at a nominal price.
The government has already distributed 20 percent of all shares to Erdenes-TT to the accounts of
Mongolian citizens, to which they may trade for cash. Those who miss the deadline will have
automatically opted to hold their shares.
The Minister of Social Protection is expected to announce information to those who opted to take
cash by 1 June and will be further publicized by the media.
―Although the government is trying to slow down the inflationary impact by distributing money
gradually, the size of cash injections is substantial. Once government receives applications, it will
create expectations,‖ said Dale Choi, Frontier Securities' chief investment strategist. He added that
the government would likely experience pressure to meet expectations and exacerbate inflation.
Source: Frontier Securities
ENKHBAYAR TO REMAIN IN PRISON FOR TWO MONTHS DURING CORRUPTION INVESTIGATION
The Sukhbaatar District Court has ruled that recently incarcerated former President N. Enkhbayar
will be incarcerated for two months while he pleads his case.
An official source from the Independent Agency for Anti Corruption has requested that he testify on
his defense at the prosecutor‘s office. The decision to hold the former president was made in the
presence of four representatives of Enkhbayar's defense.
Officials said that Enkhbayar has committed repeated offenses since his incarceration for his refusal
to cooperate with authorities in the investigation. This includes his refusal to sign a document
consenting that he understood his daily schedule, rights and responsibilities during his arrest. He
16. has also reportedly used his mobile phone, and received and sent letters without having them first
screened by authorities.
Authorities said that physically the former president is fine, as he undergoes a medical examination
twice every day.
Source: Udriin Sonin
GOVERNMENT LIFTS FINES ON FUEL IMPORTERS
An organization representing consumers' rights in Mongolia released a report this week alerting
people that the fines imposed on fuel importers have been lifted.
Fines totaling MNT 17.2 billion imposed by the Unfair Competition Regulatory Authority to eight fuel
importers have been rescinded, said the National Association of Consumers of Mongolian Society in
its report. The government agency incurred those fines to those companies for raising fuel prices by
MNT 210 to MNT 260 on 6 January. Declaring the price hikes unreasonable, the agency said those
importers were guilty of price gouging.
―Due to increases in the exchange rate to the U.S. dollar and other external factors, the price of
diesel fuel should not exceed MNT 1,885; or MNT 1,850 for A1 92 and MNT 1,550 for A80,‖ said B.
Ariunsan, vice minister of mineral resources and energy in an official decree.
However, according to the Law on Competition, Article 11.1, the state does not have the authority
to intervene on prices established by private enterprises. Ultimately, the government was found
without any mechanism that would allow it to regulate prices, with exception to monopolies.
Officials are now looking to develop amendments to the law, saying every enterprise should have to
receive approval from a state legal authority to any increase in price.
Source: Udriin Sonin
MCA-MONGOLIA HONORED FOR ACHIEVEMENTS
The Millennium Challenge Corp. (MCC) honored its Mongolia arm in Washington, D.C. last week.
The MCC reported that the Millennium Challenge Account-Mongolia has demonstrated a
commitment to gender integration across a wide range of operational areas, including program
implementation, communications and monitoring and evaluation. It has conducted gender trainings
with its program implementation units and contractors and established points of contact on gender
issues in each such unit, it added.
Through quarterly meetings, MCA-Mongolia tracks progress on gender integration, which has helped
to improve program interventions.
Present at the ceremony to receive an award were Kh. Bekhbat, ambassador extraordinary and
Plenipotentiary of Mongolia to the United States, and MCA-Mongolia delegates.
Source: Montsame
CLINTON LAUDS MONGOLIA'S LEAD IN COMMUNITY OF DEMOCRACIES
U.S. Secretary of State Hilary Clinton expressed her gratitude toward Mongolia for its chairmanship
of the Community of Democracies in a letter to Mongolia's minister of foreign affairs.
―We are satisfied with the dramatic development of the [Community of Democracy's] actions for the
last two years,‖ said Clinton.
Clinton wrote to Minister G. Zandanshatar, emphasizing the role the international organization has
played in forwarding the democratic development in the world, and expressed her country's
willingness to cooperate in its aim of strengthening democracy worldwide.
Source: Montsame
MONGOLIA RELATES IMPORTANCE OF REDUCING ITS AIR POLLUTION TO U.S. OFFICIALS
The Mongolian ambassador to the United States stressed the importance of reducing air pollution at
Mongolia's capital in Washington D.C. for an Earth Day event.
Ambassador Kh. Bekhbat explained that economic growth should not come at the expense of his
home-country's environment and the health of its people at a meeting focusing on reducing air
pollution for Mongolia.
17. A representative of the Ministry of Environment and Tourism gave a report on the work underway in
Ulaanbaatar to reduce air pollution. Speakers from the Fresh Air project, developed by the National
Committee on Reducing Air Pollution with financial support from the Millennium Challenge Corp.,
also gave their own description of the situation in Ulaanbaatar to the U.S. audience.
The meeting brought together some 40 people from U.S. agencies, non-government organizations
(NGOs), research and scientific organizations, and private entities.
Source: Montsame
JAPAN RELAXES VISA REQUIREMENTS FOR MONGOLIANS
The Japanese Embassy in Ulaanbaatar announced that it has eased its visa requirements.
The embassy said it would no longer require an official invitation or an authorized paper from a
Japanese party. However, the authorization document will be necessary for those who do not meet
a set of financial requirements.
The duration of the approval process for visas has also been shortened to three-working days.
Source: News.mn
POLITICS DIG INTO MINING
A nasty bout of resource nationalism in Central Asia is worrying investors brave enough to invest in
frontier markets.
SouthGobi Resources‘ majority owner Ivanhoe Mines Ltd. has agreed to sell a 57.7 percent stake in
the company to state-run Aluminum Corp. of China. (Chalco). In response the government is now
rushing through legislation that puts limits on foreign investment into enterprises with ―strategic
significance.‖
Minister of Foreign Affairs G. Zandanshatar told MPs that the law could be passed ―within two
weeks.‖ He said it is only a ―coincidence‖ that the government is rushing through this law following
the revoking of SouthGobi's licenses and ahead of the June parliamentary elections. Nevertheless,
Chinese influence is a touchy subject, and bashing foreign investors, especially Chinese ones, goes
down well with voters.
SouthGobi Resources is one of the country's largest exporters, shipping one in every five tons of
Mongolian coking coal to China. The company is majority owned by Ivanhoe Mines, but Chalco
earlier in April agreed with Ivanhoe to buy the majority stake for USD 926 million, a hefty 28
percent premium to the market.
The problem is that SouthGobi is listed in Canada and has no major Mongolian shareholders (as well
as Ivanhoe Mines, the Chinese sovereign wealth fund China Investment Corp. owns 13.8 percent).
Foreign investors are worried that if Mongolia finds a way to intervene in this case, it may do so in
other deals in the future. Currently, there is no known legal reason for Mongolia to prohibit this
deal or suspend the license.
Populist talk about clawing back greater shares of the country's resources is not new. Last year a
letter was sent by MPs to Ivanhoe Mines demanding a higher stake in Oyu Tolgoi. That issue was
promptly resolved when the government, Ivanhoe Mines and its project partner Rio Tinto PLC
released a joint statement honoring the original agreement. This time round, however, political
reputations are on the line.
Source: FT's Beyond BRICs
STEPPE IN AN UGLY DIRECTION
Politics in Mongolia has been rough-and-tumble since 1990, when the country escaped Soviet
domination to become a vibrant if imperfect democracy. But when scores of security forces raided
the homes of a former president, N. Enkhbayar, and detained him over what officials call a serious
case of corruption, politics took a new and ugly turn.
Police first confronted Enkhbayar on 12 April as he returned to his home in Ulaanbaatar, Witnesses
say police broke his car window and assaulted his government bodyguard, but Enkhbayar managed
to enter his house. Supporters rushed to the site, and police staked out before forcing their way in
early next morning.
18. The raid has aroused surprise from the high degree of force deployed on a former leader—he was
seen taken away barefoot and his head covered—and the belief that partisan politics is at the core
of the arrest. Most of Mongolia's top officials, Enkhbayar included, are widely thought to have
enriched themselves though power and oversight over the mining industry. Yeah the vaguely
described particulars of Enkhbayar's supposed crime—irregularities in the privatization of a small
hotel and local newspaper—strike many as unconvincing.
L. Sumati of the Sant Maral Foundation, a polling firm, says authorities should pursue bigger wrongs
if they are serious about fighting corruption.
The timing is fraught. Parliamentary elections will take place in late June. Last year Enkhbayar left
the majority party to form a splinter party of his own. He has reportedly persuaded six or seven
members of Parliament over to his party. The timing is also poor because the arrest comes as
Mongolia must act pragmatically and use sound fiscal judgment when managing the huge foreign
investment from mining. The government is presented with both the opportunity to deal with
inequality and poverty as well as the task of avoiding the ―resource curse‖ that has afflicted other
developing countries.
Investors and the International Monetary Fund (IMF) had seen Mongolia as a darling among emerging
markets. That image suddenly looks fragile.
Source: The Economist
ANNOUNCEMENTS
STARTUP WEEKEND ON 4-7 MAY
The fourth installment of Startup Weekend Mongolia will be held from 4 to 7 May at the WIBE
Campus in Handgait.
Startup Weekends are 54-hour events where developers, designers, marketers, product managers
and startup enthusiasts come together to share ideas, form teams, build products, and launch
startups to build applications and develop commercial cases around them.
For more information, visit the website swmongolia.org.
___________________________________________
ALS THREE-DAY COAL QUALITY COURSE BEGINS 28 MAY
The ALS Coal Quality Course will begin run 28 until 30 May at the Blue Sky Tower Hotel. The early
bird registration discount for a cost of USD 1,250 ends 7 May.
The course is a comprehensive introduction to the broad issues of coal quality, from mining and
preparation through the end user. It is delivered in bite-size modules to assist students in
understanding how to obtain the maximum benefits from a coal product.
Students will attend the three-day comprehensive course on broad issues of coal quality, from
exploration, to mining, testing and preparation through to delivery to the end user, delivered by
expert presenters.
For more information call 343882, 99092732, or email b.sainbileg@alsglobal.com for registration
and additional information about the course.
___________________________________________
FIFTH CORPORATE GOVERNANCE FORUM IN ULAANBAATAR ON 9 MAY
The fifth Mongolia Corporate Governance Forum will be held 9 May at the Kempinski Hotel, Khan
Palace in Ulaanbaatar. As a Supporting Organization for this event, members of the Business Council
of Mongolia will receive a special 10 percent discount.
The event will feature speakers such as Prime Minister S. Batbold and Ch. Khashchuluun, Chairman
of the National Development and Innovation Committee. The key points for discussion include
corporate governance in private companies, the reform process for corporate governance, and its
role in the financial sector. There will also be time devoted to the Capital Market Development
Initiative.
19. To register, visit the website cgdc.org.mn and fill out the registration form. For more information,
call Tsend-Ayush at 9910 5111 or email tsendee51@yahoo.com or tsend-ayush.t@cdgc.org.mn
___________________________________________
FUTURE MONGOLIA, 16-19 MAY, UB SPORTS PALACE
Mongolia first-ever world-class exhibition, Future Mongolia, will open from 16 to 19 May at Buyant
Ukhaa Sports Palace in Ulaanbaatar. Future Mongolia is an international trade fair and conference
for sustainable development.
Future Mongolia is on the best track to become the leading trade fair in Mongolia for the
international capital goods industry. Industry giants, e.g. Caterpillar, Liebherr and the mining
equipment manufacturer TAKRAF already confirmed their participation. The organizer is confident
that the envisaged number of more than 100 exhibitors will be reached. BCM is a Supporting
Organization for the trade fair. For more information visit the website.
Those interested in the event can call +49 89 244 41 9370 or email info@future-mongolia.com.
___________________________________________
2nd COALTRANS MONGOLIA IN ULAANBAATAR ON 23-24 MAY
Only three weeks remain before the 2nd Coaltrans Mongolia is held from 23-24 May at Chinggis Khan
Hotel in Ulaanbaatar.
Having overtaken Australia to become the largest exporter of metallurgical coal to China at the end
of 2011, the Mongolian coal market continues to establish itself as a competitive producer in the
global coal markets. This event will explore the development of coal projects in the country and
offer insight into what level of influence Mongolia will have over the future of coal prices.
Guest speakers include Graeme Hancock, Chief Operating Officer of Erdenes Tavan Tolgoi, and Dr.
G. Battsengel, Chief Executive Officer of Mongolia Mining Corp.
BCM is a Supporting Organization again this year for Coaltrans Mongolia. For more information visit
coaltrans.com/mongolia or email coaltrans@euromoneyplc.com
___________________________________________
ECOPRENEUR 18-22 JUNE, ULAANBAATAR
Ecopreneur 2012 will be held 18-22 June in Ulaanbaatar.
The event is the second international ―green‖ business plan competition for young entrepreneurs
aged 18-36. Its slogan is ―planet first,‖ appealing to the desire to save our beautiful planet through
responsible eco-friendly business. The mission is to promote young entrepreneurial initiatives and
creative ideas for green economic development, more socially and environmentally responsible
companies, and creating awareness for environmental preservation.
The event is hosted by the Ministry of Nature and Tourism, the Mongolian government, and the
Mongolian National Chamber of Commerce and Industry (MNCCI), with the Mongolian Entrepreneur
Association leading its organization.
For more information, visit ecropreneur.mn. Those interested in attendance may call +976 7018
6353, +976 9999 0941, or +976 9990 6883; or email ecopreneur2012@gmail.com
___________________________________________
MINExpo INTERNATIONAL 2012, LAS VEGAS, 24-26 SEPTEMBER
The Business Council of Mongolia (BCM) and the Mongolian National Mining Association (MNMA) with
the support of the U.S. Embassy‘s Commercial Section in Ulaanbaatar are now registering a
Mongolian business delegation to participate in ―MINExpo International 2012‖ which will be
organized at the Las Vegas Convention Center on September 24-26, 2012.
MINExpo International 2012 is the world's largest and most comprehensive exposition dedicated to
mining equipment, products and services. More than 1,400 exhibitors in eleven exhibit halls will
display the latest technology, equipment, components, parts and services for exploration,
extraction, safety, environmental remediation and preparation and processing of metallic ores,
coal, industrial minerals and more!
20. To register, please contact BCM at 70114442, tugi@bcmongolia.org or MNMA at 314877,
enkhbold@miningmongolia.mn for registration and additional information about the event.
___________________________________________
REGISTER NOW FOR MONGOLIAN MINING DIRECTORY-2013
Mongolian Mining Directory-2013 which provides information database for Mining companies,
investors, suppliers, service companies, government and non government organizations will be
published for the fourth year to commemorate the 90th anniversary of the Mongolian mining
industry. The MMD is distributed free of charge to international and domestic mining companies,
international conferences and exhibition, embassy offices in Mongolia and foreign countries to
investors.
BCM is a Supporting Organization of the MMD and welcomes Mongolian mining industry participants
who are interested in advertising their products and services in Mongolian Mining Directory-2013.
For more information please visit: www.mining.mn, www.mongolianminingdirectory.mn or call
+976-7011 5590.
___________________________________________
“MM TODAY” on MNB-TV, Fridays at 18:45 [TONIGHT]
BCM is pleased to announce Mongolian National Broadcasting continues its cooperation with BCM on
―MM Today‖. This English news program is aired every Friday for 10 minutes and is scheduled for
18:30 tonight! Tune in to watch this program that reports stories from today‘s BCM NewsWire.
___________________________________________
POSTINGS ON MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The new ‗Presentations‘ section on BCM‘s Mongolian website which can be reached via link to
bcm.mn/itgeluud. Several presentations already posted include 9 from Coal Mongolia in February
9-10, 2012.
As a key component of BCM‘s Mongolian website ‗News‘ section, articles from the Government‘s
―Open-Government.mn‖ site are regularly posted.
___________________________________________
POSTINGS ON ENGLISH WEBSITE 'PRESENTATIONS', 'MONGOLIA REPORTS' AND „MONGOLIAN
BUSINESS NEWS‟
On BCM‘s English website, ‗Resource, Presentations‘ section, for your review are 4 presentations
from BCM‘s April 23 monthly meeting, 12 presentations on Mongolian entities at Mines and Money
Hong Kong 2012 on March 21-23, 11 presentations from Coal Mongolia 2012 on February 9-10, 7
speeches from the Mongolian Investment Summit on December 8-9, 2011 in London, several
speeches at the Risk Management Forum on November 8 co-organized by BCM and Mandal Insurance,
speeches at Discover Mongolia 2011, and speeches from all BCM‘s monthly meetings in 2011-12.
Also on BCM‘s English website, ‗Resource, Mongolia Reports‘ section, please note the Polit
Barometer, April 2012 by Sant Maral Foundation (Mongolian and English versions); ADB‘s Asian
Development Outlook, April 2012; detailed results of BCM‘s NewsWire survey of March 2012; World
Bank‘s Mongolia Quarterly Economic Update, February 2012; Executive Summary of the Mongolian
Real Estate Report 2012 by M.A.D. Investment Solutions; Mongolia – World Bank Country Survey
2011; Welcoming remarks by Jim Dwyer, BCM at Mongolia Investment Summit 2011 Hong Kong,
Mining Journal Supplement for Mongolia, October 2011; and ―Mongolia‘s Mining Services Cluster
2010‖, Professor Michael E. Porter, Harvard University, The Microeconomics of Competitiveness.
We are now posting some news stories and analyses relevant to Mongolia to BCM website's
‗Mongolian Business News‘ as they come, instead of waiting until each Friday to put them all
together in the weekly NewsWire. The NewsWire will, however, continue to be issued on Friday,
and will incorporate items that are already on the home page, so that it presents a consolidated
account of the week‘s events.
___________________________________________
21. SOCIAL NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
MONGOLIA/129826330435540 to read the latest announcements and comment on events carried in
the NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
Of course for news information, interviews, and announcements regarding our organization, visit
the official BCM website at bcmongolia.org and bcm.mn.
ECONOMIC INDICATORS
22.
23. INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
March 31, 2012 *15.3% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 17.3% y-o-y, Ulaanbaatar city, March 31, 2012
CENTRAL BANK POLICY RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
CURRENCY RATES – May 3, 2012
Currency Name Currency Rate
U.S. dollar USD 1,315.96
Euro EUR 1,731.01
Japanese yen JPY 16.38
British pound GBP 2,128.83
Hong Kong dollar HKD 169.59
Chinese yuan CNY 208.74
South Korean won KRW ` 1.17
Russian ruble RUB 44.65
Disclaimer: Except for reporting on BCM‘s activities, all information in the BCM NewsWire is
selected from various news sources. Opinions are those of the respective news sources.