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Close: Mongolia Related ASX Listed Companies, June 1, 2011 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.047 | -0.001 | 0.045 | 0.047 | 0.048 | 0.048 | 0.045 | 940,656 | |
1.510 | 0.010 | 1.510 | 1.520 | 1.500 | 1.520 | 1.480 | 233,602 | |
0.270 | -0.015 | 0.270 | 0.285 | 0.280 | 0.280 | 0.270 | 65,300 | |
0.770 | 0.010 | 0.770 | 0.780 | 0.760 | 0.785 | 0.725 | 1,749,516 | |
0.012 | -0.001 | 0.012 | 0.013 | 0.012 | 0.012 | 0.012 | 1,641,274 | |
0.005 | 0.000 | 0.005 | 0.006 | 0.005 | 0.005 | 0.005 | 100,000 | |
0.058 | 0.006 | 0.057 | 0.058 | 0.053 | 0.058 | 0.053 | 3,149,022 | |
0.170 | 0.010 | 0.170 | 0.180 | 0.170 | 0.170 | 0.165 | 95,974 | |
1.310 | -0.010 | 1.310 | 1.350 | 1.320 | 1.325 | 1.290 | 511,204 | |
0.250 | 0.000 | 0.250 | 0.255 | 0.250 | 0.255 | 0.245 | 744,725 | |
0.500 | 0.000 | 0.350 | 0.500 | 0.000 | 0.000 | 0.000 | 0 | |
0.450 | 0.000 | 0.450 | 0.470 | 0.445 | 0.470 | 0.445 | 381,200 | |
23.030 | -0.170 | 23.000 | 23.050 | 23.300 | 23.300 | 22.940 | 974,009 | |
81.550 | 0.050 | 81.500 | 81.690 | 81.800 | 81.860 | 81.330 | 2,325,948 | |
44.530 | 0.170 | 44.520 | 44.600 | 44.560 | 44.910 | 44.440 | 9,416,103 | |
Source: asx.com.au
Mongolian Mining to Buy Kerry’s Coal Mine for $464.5 Million
June 1 (Bloomberg) -- Mongolian Mining Corp., the nation’s biggest coking coal exporter, agreed to pay $464.5 million to buy the Baruun Naran mine in Mongolia from a unit of Kerry Holdings Ltd., adding production to an adjacent operation.
Mongolian Mining will pay $379.5 million in cash for QGX Holdings, the unit that owns the mine, and $85 million in convertible bonds, the company said today in a statement.
“The sizable coking coal resources and reserves estimated in the Baruun Naran coking coal mine will open potential to diversify the group’s coal products and enhance sources of revenue,” Mongolian Mining said. The company will also be able to share mine and transport infrastructure, the statement said.
Prices for coking coal, a key steelmaking raw material, rose to a record this quarter, boosting appetite for mergers and acquisitions. Rio Tinto Group in April won control of Mozambique developer Riversdale Mining Ltd. following a A$3.9 billion ($4.2 billion) offer in December.
Mongolian Mining, based in Ulaanbaatar, climbed 2 percent to HK$9.28 at the close in Hong Kong. The stock has risen 2.3 percent this year, compared with a 2.6 percent gain in the Hang Seng Index.
Citigroup Inc. is advising Mongolian Mining and UBS AG is advising Kerry.
The bonds, which pay 2 percent interest, can be converted into as many as 60.7 million shares in Mongolia Mining at HK$10.92 each, the statement said. QGX is 90 percent owned by Kerry Mining and 10 percent owned by the board of Mongolian Mining and its controlling shareholder.
Extra Payment
Mongolia Mining may be required to pay as much as $105 million extra if the total proved reserves in the mine exceed 150 million metric tonnes within 18 to 21 months. Kerry Mining and other shareholders of the mine are required to pay as much as $90 million if the reserve is below that level during the period, the statement said.
The company raised about $750 million in an initial public offering in October and had said it plans to use $206 million from the share sale to fund acquisitions.
Mongolian Mining plans to raise production to 15 million tons a year by 2013 to meet increasing demand for the raw material from China’s steelmakers, Chief Executive Officer Battsengel Gotov said in September.
“Demand for coking coal will continue to grow,” Mongolian Mining said in the statement today. “The acquisition enables the group to further expand its coking coal mining business and to solidify the company’s position as the leading coking coal miner in Mongolia.”
Record Prices
Japan’s Kobe Steel Ltd. agreed to pay Rio a record $330 a ton for the quarter starting April 1. The talks ended before a magnitude-9 earthquake in the Asian nation halted some steel output.
Asian steelmakers may pay as much as 8 percent less for hard coking coal next quarter as Australian supplies recover from disruptions caused by heavy rain and flooding in the world’s biggest exporter of the commodity.
Australian free-on-board prices may drop to $305 a ton for three-month contracts starting July 1, according to the median estimate of nine analysts surveyed by Bloomberg News last month. Forecasts ranged from $280 to $330 a ton.
Mongolian Mining operates at Tavan Tolgoi, near the border with China. The Tavan Tolgoi deposit is one of the world’s largest unexploited reserves of coking coal.
Related: Mongolian Mining Corp. in Nation’s Biggest Ever Acquisition – 2point6billion.com, June 1
Mongolian Mining (00975) buys coking coal mine at US$464m
June 1 (ETNet) Mongolian Mining Corporation (00975) said it agreed to acquire the entire issued share capital of QGX Coal Ltd. from Quincunx (BVI) Ltd. at US$464 million (equivalent to about HK$3.61 billion).
The consideration will be settled as to US$379.5 million in cash and the balance by the issue of convertible bonds in the principal amount of US$85 million, The conversion price is HK$10.92, representing a premium of about 20% to the closing price of HK$9.1. Assuming the convertible bonds are converted in full, the shares to be issued represent about 1.61% of the enlarged issued share capital of Mongolian Mining.
QGX Coal ultimately owns the Baruun Naran Coking Coal Mine, which is located at southern Mongolia, Umnugobi Aimag (Southgobi province) about 500 km south of Ulaanbaatar, the capital of Mongolia, and around 60 km east of Dalanzadgad, the provincial center.
Quincunx (BVI) is owned indirectly as to 90% by Kerry Mining (Mongolia) and 10% by MCS Minerals LLC. MCS Minerals LLC is in turn owned as to 51% by Odjargal Jambaljamts, an executive Director and chairman of the Board, and as to 49% by MCS Holding LLC, the controlling shareholder of Mongolian Mining. (HL)
Mongolian president asks Russia to resume petroleum supplies
MOSCOW, May 31 (RIA Novosti) Mongolian President Tsakhiagiin Elbegdorj appealed to the government of Russia to resolve the problem with petroleum products supplies.
"There have been failures in delivery in recent months, we have serious problems: now sowing has been delayed, production has become suspended and public transportion in cities has almost stopped," Elbegdorj said at a meeting with Russian Prime Minister Vladimir Putin.
Elbegdorj reported that the Mongolian energy minister will arrive in Moscow to hold talks with Russian Deputy Prime Minister Igor Sechin.
"Probably once they meet, the issue will be solved," Elbegdorj said.
According to Putin, the trade turnover between the two countries grew by 50% in the first quarter of 2011. "Of course we need to retain this growth," Putin said.
Faced by fuel shortages of its own, Russia, the world's largest oil producer, raised the fuel export tax by 44% this month. Putin has criticized Russia's oil groups, saying there was no lack of oil but that companies had restricted supplies to keep prices high.
In 2003 and in 2010, Russia wrote off a vast part of Mongolia's debts.
Several dozen Russian companies work in Mongolia. The two countries boasted more than $1 billion in trade in 2010.
Extraction of minerals and metallurgy are important cooperation areas.
Russia, Mongolia sign joint statement on ties
MOSCOW, May 31 (Xinhua) -- Russian President Dmitry Medvedev and his visiting Mongolian counterpart Tsakhia Elbegdorj signed on Tuesday a joint statement here, vowing to further promote ties between the two countries.
The joint statement was signed after the talks between the two presidents, during which the two presidents exchanged views on several common issues, especially the economic and trade issues.
Medvedev said he believes the Russian-Mongolian trade volume should not only rely on petroleum products, calling on diversification of bilateral trade.
"We are interested in trade turnover diversification. We need new powerful projects such as nuclear projects or Tavan-Tolgoi (coal deposit), which will promote bilateral cooperation," Medvedev said.
The two sides also discussed progresses of several joint projects.
After the meeting, the presidents also attended signing ceremony of other four documents on bilateral cooperation and ties.
Related: Russian-Mongolian talks – Kremlin, June 31
Russian Railways Ready to Invest $1.5 Billion in Mongolia
May 31 (Bloomberg) -- OAO Russian Railways, the country’s rail monopoly, is ready to invest $1.5 billion in Mongolia’s train network to help the country exploit its natural resources, Chief Executive Officer Vladimir Yakunin said.
Mongolia is expected to name the partner that will help it expand the country’s rail network in June or July, Yakunin told reporters today in Moscow. The country needs about 6,000 kilometers (3,730 miles) of tracks as it seeks to develop deposits such as those in the Tavan Tolgoi coal basin.
Mongolian President Tsakhia Elbegdorj met with Russian counterpart Dmitry Medvedev today at the Kremlin and will hold talks with Prime Minister Vladimir Putin later today. Russia seeks to help Mongolia tap reserves of copper, coal, iron ore and uranium to boost trade, which rose to $1 billion last year.
“We need large locomotive projects,” Medvedev said today at a news conference. “If large projects are created, including the Tavan Tolgoi deposit and others, as well as cooperation in the nuclear sphere, they will, like locomotives, draw in mid- level cooperation.”
Located in the Gobi desert, Tavan Tolgoi contains 6.5 billion tons of the coal used in steelmaking and may be the world’s biggest untapped deposit of its kind, according to the Business Council of Mongolia.
Russia and Mongolia today signed an agreement to boost the capital of their 50-50 joint venture, AO UlanBator Railways, by $250 million, Yakunin said. Talks to increase Mongolia’s share to 51 percent will continue, he said.
There has been little progress on Rosatom Corp.’s venture with Mongolia’s MonAtom to develop the Dornod uranium deposit, Sergei Kiriyenko, head of Russia’s state-owned nuclear energy holding company, said today.
“Unfortunately, it is moving very slowly,” Kiriyenko said, declining to elaborate.
Medvedev said he and Elbegdorj today agreed to speed up joint projects.
Erdene Receives Mining License for the Zuun Mod Molybdenum-Copper Project in Mongolia
HALIFAX, NOVA SCOTIA--(Marketwire - May 31, 2011) -Erdene Resource Development Corp. ("Erdene" or the "Company") (TSX:ERD), is pleased to announce that it has received a Mining License for the Zuun Mod molybdenum-copper project in Southwest Mongolia from the Government of Mongolia.
"The granting of a mining license at Zuun Mod is an important milestone for the project and our Company", said Peter Akerley, President and CEO. "Our employees and Mongolian consultants have dedicated significant effort to this achievement and the receipt of the license is a testament to their ability to work with the Mongolian regulatory authorities. With the long-term Mining License secured, we now have the ability to advance this wholly owned project more rapidly."
The Zuun Mod Mining License covers an area of 6,041 hectares and contains the South Racetrack and North Racetrack deposits, which hosts all of the Measured and Indicated resources at Zuun Mod. The Mining License also contains the Khuvyn Khar copper prospect. The Mining License is valid for an initial 30-year term with provision to renew the license for two additional 20-year terms.
A revised National Instrument 43-101 compliant resource estimate for the Zuun Mod molybdenum-copper project is expected to be received from the Company's independent technical consultants, Runge Limited (Minarco-MineConsult), in early June. This revised resource estimate was commissioned following recent drilling results which indicated higher molybdenum and copper grades in the South Racetrack deposit, as disclosed in the Company's press release dated February 17, 2011. The Company expects this updated resource report will form the basis for the next stage of development at Zuun Mod.
Approval of an application for a second contiguous Mining License, south of the approved Mining License, is awaiting a decision by the Government of Mongolia on the definition of the boundaries of a water protection area overlapping the license area. This license application covers 358 hectares and contains the Stockwork deposit which hosts 15 percent of the Inferred resource at Zuun Mod. The Company is working closely with the Government of Mongolia to finalize the boundary of the exclusion area so that the water resource is protected and the impact, if any, on the Inferred resource included on this Mining License application is minimized.
Erdene is also pleased to announce that it has retained the services of Renmark Financial Communications Inc. ("Renmark") to enhance its retail Investor Relations activities. Renmark is a Montreal and Toronto based company, and one of the largest retail Investor Relations firms in Canada, with over 12 years of experience in providing consulting and financial communication services primarily to Canadian listed companies in the mining and exploration sector.
MONGOLIA TO RECEIVE LOAN OF USD 500 MILLION
May 31, Ulaanbaatar, Mongolia, /MONTSAME/ On Tuesday, the cabinet meeting backed in principle a draft agreement to be established between Mongolia's Ministry of Finance and the Export-Import Bank of China on exploiting an export loan of USD 500 million from the government of China.
An order of the Prime Minister on granting a right to sign the agreement will be made soon.
In accordance with a plan of the government, the loan will be spent for erecting processing factories of meat, milk, flour, an elevator for grain, and small tractors.
In addition, the government plans to finance a project on road and works of constructing flyovers.
An order has been given to Kh.Battulga, the Minister of Road, Transportation, Construction and Urban Development, to Yo.Otgonbayar, the Minister of Education, Culture and Science, and to G.Monkhbayar, the City's Mayor to draw up technical and economic justification for the construction works.
The loan of USD 500 million will be repaid within 20 years with an interest of two per cent per year.
IFC Invests $2 million in Mongolia’s Leading Dairy Processor to Support Rural Economy
The FINANCIAL -- Ulaanbaatar, Mongolia, May 31, 2011—IFC, a member of the World Bank Group, said today it invested $2 million in Suu JSC, Mongolia’s leading dairy processor, helping expand economic opportunities in Mongolia’s rural areas, while diversifying the country’s natural resource-led economy and improving food safety.
IFC’s investment consists of an eight-year, $2 million loan to help Suu increase production capacity and tighten quality controls. Suu will improve food safety by installing new equipment to test milk quality, and by implementing an environmental and safety management system that will set the standard for Mongolia’s dairy industry.
“IFC provides not only long-term financing, but also a stamp of approval for our socially responsible operations,” said D. Ganbaatar, Chairman of Suu JSC. “We are committed to working with IFC to improve our food safety standards, quality control as well as our corporate governance practices.”
IFC’s investment will help Suu extend its network of raw milk herder-suppliers to about 4,000 from the current 2,500 herders, thus contributing to their economic sustainability. The company buys raw milk through 19 milk collection stations in rural Mongolia and sells products through more than 100 distributors.
France’s Société de Promotion et de Participation pour la Coopération Economique (Proparco) and the Belgium Investment Company for Developing Countries (BIO) are also providing $2 million each.
“Supporting Mongolia’s small and medium enterprises to generate employment and diversify its natural resources-led economy is a top priority for IFC as we expand our programs in the country, both in investment and advisory services,” said Hyun-Chan Cho, IFC’s Country Manager for China and Mongolia. "IFC’s partnership with Suu is important as we helped mobilize the financing from our long-term partners, BIO and Proparco. We look forward to working with Suu and our two partners to support herders in Mongolia’s rural areas and improve food safety.”
Revitalizing Mongolia’s traditionally important dairy industry, which collapsed during the country’s transition to a market economy in 1990, will largely depend on the success of dairy processors such as Suu and their capacity to increase production of quality milk through a well-functioning supply chain at prices that compete with imports.
Nomadic herding and traditional dairy pasturing are an important part of Mongolia’s economy. Livestock contributes more than 20 percent to the country’s gross domestic product and represents 40 percent of all employment in the country.
Hunnu Coal: Company Presentation May 2011
HUNNU HIGHLIGHTS
Ø Enviable land position in the World Class Southern Mongolian Coal Provinces.
Ø Acquisition of 70% of the Altai Nuurs Premium Coking Coal Project from Rio Tinto:
o Cost of US$23M plus deferred payments of US$17M.
o Exploration Target* of between 250 million and 500 million tonnes.
o Premium hard coking coal with an average CSN of 8.5.
Ø Exploration Target* of 800 million to 1 billion tonnes of coal at Tsant Uul & Unst Khudag:
o 90Mt JORC Resource for Tsant Uul Coking Coal Project, with 61Mt in Measured and Indicated categories.
o 324Mt JORC Resource for Unst Khudag Project based on <30% of available data with 226Mt in Measured and Indicated categories.
Ø First coal production in 2011.
Ø Completed 50,000 metres of drilling in 2010.
Ø Strong cash position A$43M.
Ø Construction of rail spur at Choir depot to Trans-Mongolian Railway commenced.
Ø Feasibility study commenced into Choir to Unst Khudag rail line.
Ø Off-take agreements in advanced stages for both Tsant Uul and Unst Khudag.
Ø Trial open cut mine completed at Unst Khudag.
Ø Transportation and logistics studies at advanced stage.
…
Mongolia Connects to Hong Kong with Direct Flights and Consulate
May 31 (China Briefing) – Mongolia has strengthened its ties with Hong Kong through the creation of a new consulate, and the establishment of bi-weekly direct flights to Ulaanbaatar. The links bring increased exposure to the financing and business opportunities in the country as Mongolia seeks to attract investors to help the nation develop its new-found wealth.
Mongolia’s GDP is currently among the fastest growing in Asia and is currently running at 12 percent growth this year, with expectations it will rise to 30 percent by 2013. A boom is taking shape in the light of massive coal, gold, copper, uranium and oil and gas reserves that are likely to transform the nationals of this vast, yet sparsely populated nation into U.S. dollar millionaires within a few years. Hong Kong provides the closest regional financial hub and global expertise required to service the development of this transition.
Over the last few months, nearly every flight into Mongolia has been running at capacity, not just with tourists, but filled with investment bankers, hedge fund managers and investors keen to acquire a share in Mongolia’s future. The financial base for a majority of the deals is in Hong Kong and the business community that invests in Mongolia is also based in Hong Kong.
The opening of the new route, which is set to be very profitable for Mongolia’s national airline MIAT, also signifies a stepping stone towards the eventual privatization of MIAT within the next couple of years. The non-stop route between Hong Kong and Ulaanbaatar will be served by a Boeing 737-800 aircraft every Thursday and Sunday, providing 12 seats for business class and 150 seats for economy class. On Thursday, the flight departs Hong Kong at 11:55 a.m. and departs Ulaanbaatar at 6:25 a.m.; on Sunday, it departs Hong Kong at 1:05 p.m. and departs Ulaanbaatar at 7:40 a.m. in the morning. HKSAR passport holders can enjoy the convenience of up to 14 days visa-free access to Mongolia.
Mongolia has also recently opened consulates in San Francisco and Osaka.
Coal Sector of Mongolia and CBI Will Present 2011 CHINA CLEAN COAL TECHNOLOGY CONFERENCE
2011 CHINA CLEAN COAL TECHNOLOGY CONFERENCE
SHANGHAI, May 31--(BUSINESS WIRE)--Organized by CBI Energy and supported by Coal Sector of Mongolia, MONGOLIAN NATIONAL MINING ASSOCIATION and Indonesian Coal Ming Association, 2011 China Clean Coal Technology Conference will be presented on July 12-13, 2011, in Beijing, China.
China’s clean coal technology innovations will continue during the 12th Five-year Plan period (2011-2015). In 2010, China’s demand for ethylene equivalent was 24.84 million tons, larger than its domestic production; the demand for propylene equivalent was 19.05 million tons, 5.90 million tons more than the national output. This indicates a significant demand-supply gap in China’s ethylene and propylene markets. While the edge of petroleum to low-carbon olefin was blunted by the rising oil prices, the MTO technology using coal as the raw material will give the Chinese producers more advantages.
…
GTSO Moves Forward with New Rare Earth Profit Agreement with Mongolian Mining Company
Definitive Agreement to be Followed by Shipment of Rare Earths from Mongolia to South Korea
SAN JOSE, Calif. May 31 (BUSINESS WIRE) -- Green Technology Solutions, Inc. (OTCQB:GTSO) President and CEO John Shearer said today that the company is close to finalizing a new profit agreement with the Mongolian mining and trading company Ar Erkhes, LLC.
Last week, the two companies signed a letter of intent to participate in a profit agreement for the excavation and shipping of rare earth ore from three sites in Mongolia to South Korea. Excavation of rare earth ore for the initial shipment is currently underway at Ar Erkhes’ Avdrant mine in Mongolia’s Tuv province. Once the profit agreement is signed, 15 tons of minerals are set to be transported via rail to the international seaport of Vladivostok, Russia. From there, the ore will be shipped to South Korea.
“We’re very close to coming to terms with Ar Erkhes on this profit agreement, as both sides are very eager to move forward with our rare earth export plans,” Shearer said. “It’s very likely that we’ll announce the agreement’s signing this week in order to proceed with the first shipment of ore to South Korea.”
…
Mongolian PM says country thankful for U.S. aid
ULAN BATOR, June 1 (Xinhua) -- Mongolian Prime Minister Batbold Sukhbaatar told a visiting U.S. delegation Wednesday that his country appreciates Washington's comprehensive support.
Mongolia is thankful for the all-around support it has received from the U.S., the prime minister was quoted by the governmental press service as telling the visitors, led by Senator Roy Blunt, a Republican from Missouri.
For his part, Blunt said that Washington is also grateful to Ulan Bator for Mongolia's active participation in international peacekeeping operations.
Noting that Mongolia is experiencing economic growth, Blunt added that the U.S. will remain a trade and economic partner of the Asia country.
In October 2007, the Mongolian and U.S. governments signed an agreement that allowed Mongolia to receive nearly 285 million U.S. dollars in aid in five years for the purpose of reducing poverty and promoting economic growth.
With U.S.-Mongolian economic interaction on the rise, U.S. coal company Peabody Energy is currently bidding for the right to develop a giant coal deposit in Mongolia's Southern Gobi region.
Mongolia Is Not Forgotten
May 31 (UB Post) On Sunday Jeremy Browne, a British Liberal Democrat MP for Taunton Deane and Minister of State at the Foreign and Commonwealth Office since 2010, arrived as part of the British delegation to Mongolia in an effort to improve ties between the two nations. He spent the day at a variety of talks in the Ministry of Foreign Affairs, with the vice president and discussing various ways in which British-Mongolian co-operation can be improved.
At a press conference at the Kempinski Hotel on Monday 30th May, he began with an expression of his pleasure at representing Britain in Mongolia.
‘I understand that I am the first British minister to visit since 2008 and, as such, I would like this to convey a personal message of how closely Britain would like to work with Mongolia and forge a strong partnership of mutual benefit to both countries’.
The visit had been a start in the instigation of improvements to Mongolian education and financial systems and the introduction of more plans to allow young Mongolians to study in the UK.
The British delegation the week before had emphasized the abilities of collaboration to create a greater prosperity for Mongolia; not just the oft praised Mongolian economy, which can be helped by greater British investment and the subsequent creation of many new jobs, but even to the smaller details of welcoming Mongolian athletes to the London 2012 Olympics- something which wrestling champions here have not been slow to notice.
‘I believe this is a period of exciting and positive change and Britain wants to be a part of it, in an exciting partnership with Mongolia’, he commented, following up expressions of amazement at the remarkable economic boom in Mongolian with the figures behind the Rio Tinto project- this investment by Rio Tinto is equal to the whole Mongolian economy and between this fiscal deal and the experience and knowledge which they can contribute, ‘it is possible that within the next ten years Mongolian lives will be able to prosper and Britain can play its part in that’.
Despite the repetition of many of the catchphrases of success which are coming to settle over Mongolia, the day was marked with a touch of opposition to the British presence.
Starting the day with a morning protest at the Ministry of Foreign Affairs, the Ambassador Thorda Abbott-Watt and Mr Browne were faced with dozens of discontented protesters chanting and waving banners.
Three ranks deep and surrounding the building, the peaceful protesters were nevertheless very vehement about their concerns; specifically the release of Bat Khurts, the head of the Mongolian spy network who is currently under arrest in Britain.
Waving banners with slogans such as ‘Let Khurts back to his homeland’, ‘Where’s the kidnapping Dickson?’ (referring to the previous British ambassador in Mongolia who arranged for the diplomatic visit upon which Khurts was arrested) and ‘It is the big interest of a big country and the big power of a small country’, the crowd chanted something which can only roughly be translated as ‘Bring Him Home’.
They were there waiting not only for the arrival of the Ambassador and Minister of State, but also of Khurt’s friends, family and lawyer who arrived with an official letter written in both English and Mongolian to present to the embassy.
Though questioned repeatedly about the event, Browne was unable to give a statement more thorough than those describing the inability of politicians to become involved in legal affairs, as the case has now been handed over to the independent courts.
It is being decided at present in England whether Mr Khurts should be extradited to Germany, where he faces charges for the abduction of a Mongolian citizen.
Enkhbat was forcibly removed from France into Berlin, where he was placed on a plane to Ulaanbaatar and tortured in prison there, until his release.
Five days after he left prison he died, which his family have described as a direct result of his injuries retained from torture. Enkhbat was accused in 1998 of the murder of Zorig Sanjasuuren, the leader of the democratic movement, for which no evidence has yet been shown.
‘There is a very clear separation of power between the government and the courts in England,’ he tried to explain, despite the barrage of insistent questions.
‘I understand the strong feelings and have listened carefully to the representations made to me but it is not possible for me to intervene.
The independent courts are expected to hear the case without political influence…to judge it based on the arguments and not on the bias of a politician.
However, the importance of this case should not detract from the importance of the wider relationship between Britain and Mongolia.’
His firm statement, however, did not prevent the many questions concerning the issue, ranging from whether he knew about the reasons behind the Dickson’s early leave of post (to which the Ambassador was quick to assert it was for early retirement) or whether he had received the petition from Khurt’s family.
The Ambassador too was not prepared to comment on this diplomatic issue.
‘The visit would have been planned regardless of this issue,’ Mr Browne stressed, ‘and is part of making sure that Mongolia is not forgotten in Britain’.
Nevertheless, the frosty reception on Monday morning cannot have made for a welcome start.
The Minister’s visit concludes with a Business breakfast at the Kempinski Hotel organized by the British-Mongolian Chamber of Commerce and Gerege Partners LLC.
Enkhbold Speaks Freely
May 31 (UB Post) An extract from an interview with Z.Enkhbold, a Democratic Party MP in the Great State Assembly. Sourced from Udriin sonin.
Last week MPs visited the Zamiin Uud harbor. Can you tell us why?
-We are working at the moment on putting new policies about border harbors into action.
A few members of the Great State Assembly and I visited the Zamiin Uud harbor to acquaint ourselves with the present situation before the law is passed.
This harbor is strategically very important for our country. Most of our exports as well as imports pass through this particular harbor. Depending on the season, because of too much load there is often large amounts of traffic in Zamiin Uud, leading to inflation in UB. We also visited a Chinese harbor.
This is a completely different picture- you can see how much their government invested there. As for Mongolia there is both a lack of finance as well as flawed policies. We focused too much on opening a casino there and making profit from it: that was the extent of our ambitions.
The Chinese side of the harbor mainly is financed by Mongolians who go there and spend money on shopping, restaurant and hotels.Who says we can’t use this policy?
What is your opinion on your fellow member of the Great State Assembly, D.Zorigt?
-I believe that he and the two other MPs who finalized the Oyu Tolgoi contract used a legal loophole to sign it to Mongolia’s disadvantage.
That is exactly why my party members twice suggested the dismissal of this particular minister. I don’t understand why the administration is protecting him so eagerly.
Furthermore, a source of petroleum has been found in Dornod. We could easily set up a factory to supply parts of Mongolia with fuel worth 5-6 million tugrug.
Yet, although he is the minister in charge of this matter and should be doing everything to support this for the development of our country, he is doing the total opposite.
The joint Parliament is a great excuse because in the end no one will accept the blame; everyone will point fingers at each other. That is what happened to our new power station.
All the blueprints and everything involved are ready only the minister Zorigt seems to be very nonchalant in finalizing the location. If he does not want to or is not capable of carrying out his duties, he should let others do so who are willing to take his position.
New laws were put to discussion in the assembly concerning the election. Have you any comment?
-Yes. We are at the moment considering on passing a new law on the processes involving how the members of the assembly are elected.
Our party wants a 50:26 policy; where either 50 of the 76 member or the 26 of them are elected indirectly. [The indirect members will vote not on the individuals but on the party.]
It’s only matter of which 26 or 50 will be indirect and which direct. The other party members also agreed upon this.
The other segment of the law is particularly focused on voting.
The machinery used today sometimes misreads; it counts one as two or two as because the counting is done in groups. If we were to bring in new technology that would allow voters to put in their ballot to scan directly after voting it would make things easier.
Candidates would be able to see what percentage of voters elected for them on their own computers. However, we have to be very careful on protocol if the machinery breaks.
There was a situation in the Philippines, when they were using this new technology for first time, where the parties would break it in order to use the backup plan- which was to allow the people in the committee to start counting with hands.
That is where the real fuss occurs.
FACTBOX-Key political risks to watch in Mongolia
BEIJING, June 1 (Reuters) - Landlocked Mongolia sits on vast quantities of untapped mineral wealth, and foreign investment in a number of gigantic mining properties is expected to transform its tiny economy in the next decade.
Analysts say it could become one of the world's fastest growing economies and is already a key investment target for resources giants like Rio Tinto and Peabody Energy .
Mongolia aims to become a major force in the regional coal market by developing the billion-dollar Tavan Tolgoi or "Five Hills" mine, the world's biggest untapped deposit of its kind.
Erdenes MGL, the mine's state-owned operator, has chosen banks to list the eastern part of the property next year. A shortlist of investors for the western section has also been drawn up, including consortia from Japan and South Korea as well as Peabody, Xstrata and ArcelorMittal , with the winner due to be announced in June.
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Once great Rio now second best
May 31 (The Intelligent Investor) Australian investors today have a choice of two diversified mining giants - BHP Billiton and Rio Tinto. But which business is the better bet?
Ten years ago, the answer was simple enough. Having made disastrous acquisitions in copper and suffered substantial losses in steel and elsewhere, BHP was a mess. Rio was more accomplished and much larger - nobility among commodity stocks.
But ten years on and the commodities kingdom has a new monarch. A quality gap has emerged and BHP Billiton has become a clearly superior business.
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Mind the margin
Examining Rio's EBIT margins emphasises this point.
During the largest commodity bull market in a century one might reasonably expect Rio's margins to be higher today than a decade ago. And yet they're not. Rio was a high margin business even before the boom and, until 2007, margins rode the wave of higher commodity prices.
But by 2009, they were back to pre-boom levels. Look at Rio's margins now and it's hard to know the boom ever happened.
The fact is, Rio has changed. Gone is the conservative contrarian, replaced by another voice in the China choir, saddled with a capital intensive, low margin aluminium business that has all but eradicated the benefits of the greatest commodities boom in history.
This is a transformation of the very worst kind.
Iron ore may fall
The second concern relates to iron ore. Should iron ore prices fall to reflect marginal costs and new supply as we suspect they will, profits from both BHP and Rio's coveted iron ore divisions will be savaged.
Vulnerability to iron ore prices is made worse by the move to spot pricing, abolishing the 40-year old annual contract system.
A fall in prices will be bad news for both stocks, but worse for Rio. BHP retains a high level of diversification, with oil, iron ore, coal, base metals and other materials occupying greater prominence than they do at Rio, where just three commodities—iron ore, aluminium and copper—account for three quarters of profits.
And because Rio's capital expenditure program is focused on those metals, that concentration will grow.
Rio's iron ore division remains world class. We estimate its value at around $100bn at current prices, meaning it accounts for almost two thirds of the value of the group.
High quality, however, will not be adequate defence against a slump in prices. With so much of Rio's value tied up with iron ore, Rio remains vulnerable to lower prices.
Off the table
Something is rotten in the kingdom of Rio, and though it is a difficult decision to make, the risks of holding on outweigh the benefits.
It's quite possible that the iron ore boom continues and Rio's share price rises with it but long term, this is no longer the sort of business one should aim to own, unless purchased very cheaply.
<Mogi & Friends Fund A/C>
Historic +20.9%, Qtd -31.2%
Mogi & Friends Fund is a tiny fund of A$23K I created in late September with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.
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Mogi
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"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
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CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
Disclosure/Disclaimer
CPS Securities, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions mentioned in correspondence from CPS International.
CPS International advise this email contains general information only and does not include advice. In preparing this communication, CPS International did not take into account the investment objectives, financial situation and particular needs of any person. As with any speculative mining company there are significant risks.
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