Mongolia Business and Mongolian Daily Business News

MP D.Zagdjav, D.Batbayar proposed draft law on Limited Casino to Speaker D.Demberel. Casino business is soaring around the world and our two neighbours are allowing limited casinos in certain zones and areas. Neighboring regions of our neighbor countries don’t have any casinos or gambling centers, which allows Mongolia to flourish such businesses. Law initiators believe that it will contribute to the Mongolian economy and revenue.

One percent of casino income will be collected into the “Good Will” Foundation, a social welfare fund. The casino is only open to foreign nationals and the Government of Mongolia will own certain part of the casino.

APU JSC has held its financial meeting yesterday and has decided to give out MNT 1.4 billion of dividends to its shareholders. APU JSC has 3.5 thousand shareholders and according to MSE, APU distributed dividends to its shareholders on time for 5 years running.

In the year 2010, APU’s target is to increase production and profit. They are to finish all factory expansions and to produce products with 70-100 percent output. Also, USD 35 million will be invested into machinery and technology this year alone. Read the rest of this entry »

Hungarian Prime Minister Gordon Bajnai and his Mongolian counterpart Batbold Sukhbaatar discussed how to increase economic cooperation and strengthen ties between the two countries on Wednesday in Budapest. The meeting coincided with the 60th anniversary of the two countries’ establishment of diplomatic relations.

PM S.Batbold, on his first foreign trip since becoming PM in late 2009, said it was extremely important for Mongolia to build ties with the European Union. Read the rest of this entry »

Yesterday, representatives discussed about future state of the Mongolian development during the “Development Region” meeting of the Democratic union. The meeting started with the speech of MP D.Odkhuu and he reported that areas of North-West borders (Bayan Ulgi and Uvs provinces) to the South region of the country are rich of oil commodity. Uvs, Zavkhan, Khovd, Bayankhongor, Gobi-Altai, Umnugobi, Dundgobi, Dornogobi, Khentii, Sukhbaatar and Dornod provinces are included in the areas with rich resources of oil.

The next step is to manufacture products and goods out of these oil commodities in order to reduce oil and petrol importing. D.Odkhuu also made plans to build railway roads across the country to link the West and the East. This railway project will ensure faster economic growth and will open ways to export coals to South Korea and Japan. B.Ganbat, Advisor of Construction and Urban Development Minister said that this project will secure Mongolia to reach its Macro Economic targets. The cost of the Railway project is calculated to be around USD 14 billion.

Last Friday, 571,098 shares of 19 companies were sold at MSE, totaling sales of ₮411,235,647. TOP 20 Index has gained 4,8%, reaching 8507,89 points. It has been gaining since the New Year.
APU share gained 15%, reached ₮1150. But Genco Tour Bureau slumped by 2.5%, ₮120. Most sold shares were Khukh Gan, Naco Fuel and Shivee Ovoo.

6 months after signing of Oyu Tolgoi IA, the Government has held a hearing on the investment agreement implementation. 12 compulsory tasks were planned, but issues such as feasibility study, independent auditing, tax proof, Board of Directors and article of association of company are under implementation process.

For example, international independent auditing, a German branch of PricewaterhouseCoopers, has been working on the Oyu Tolgoi project and it will be completed within March. General Authority of Taxation is in charge of expense of the investors, tax redemption issues and a working group with 5 members is conducting inspection at Oyu Tolgoi LLC. Read the rest of this entry »

Prime Minister S.Batbold informed that Mongolia will pursue policy to own Tavan Tolgoi deposit 100%. Faith of Tavan Tolgoi is set to be decided during the spring session of SGK.

After this notice, there was fear of who would be interested in Tavan Tolgoi deposit accepting an operator’s status. The government said that interested bidders will not own share or equity of the deposit, but they will pay the payment for mining. But Minister D.Zorigt is confident that interested parties would be interested in the project, because such deals are common in the mining world. Read the rest of this entry »

Proceeds to be used by Ivanhoe to acquire critical mining and milling equipment for the Oyu Tolgoi copper-gold complex in Mongolia

LONDON, ENGLAND — Robert Friedland, Executive Chairman of Ivanhoe Mines, and John Macken, President and Chief Executive Officer, announced today that the company has entered into an agreement to issue 15 million common shares to Rio Tinto at CDN$16.31 per share, for net proceeds of CDN$244.7 million (US$232.4 million*).

Ivanhoe Mines will use the proceeds to purchase from Rio Tinto key mining and milling equipment to be installed during the construction of the Oyu Tolgoi copper-gold mining complex in Mongolia.

The equipment includes principal components for the 100,000-tonne-per-day Oyu Tolgoi phase-one copper-gold concentrator, including two large, 38-foot-diameter, semi-autogenous grinding (SAG) mills, four ball mills, re-grind mills, crushers, motors, gearless drives, conveyors and flotation cells. Also included is the hoist and major components for the sinking of Shaft #2 — the 10-metre-diameter, main production shaft for the underground block-cave mine at the Hugo North Deposit. Read the rest of this entry »

Many people are interested in Oyu Tolgoi project effect in the market and economy. The Investment Agreement assures direct payment and cash injection from OT investors into the Mongolian economy and public also received ₮70K right before the Lunar New Year. This distribution was a long awaited one for the mass, but those who contribute tax and revenue to the state, are suffering its cost; inflation.

Business sector of the Mongolian community wanted to provide and supply services and products that can be produced in Mongolia. According to the shareholders’ agreement, if the proposed services or products, existing in or originated from Mongolia offered by the Mongolian companies fully meet the requirement, Oyu Tolgoi LLC will prioritize it. Also local companies of Umnugobi aimag will be considered first.

Read the rest of this entry »

Nuclear Energy Law implementation and enforcement is not satisfactory. The Cabinet Meeting discussed the enforcement and implementation of the Nuclear Energy Law of Mongolia, during the irregular meeting of Cabinet Ministers. Uranium license holding foreign companies raised notable fund from the foreign capital market. According to the Nuclear Energy Law, if uranium deposit license holder transfers its 5 or more percent of total share, it shall seek approval from the Nuclear Energy Authority.

“…the Government decides to advertise the related laws to the public in order to raise awareness. Because it is important that the mining companies to know that if any uranium license holding companies try to transfer its equity of 5 or more percent, they should seek approval from the Nuclear Energy Authority…” it said in its report.