Mongolia Business and Mongolian Daily Business News

Today, 73.6 thousand shares of 13 JSCs were sold at MSE totaling 14.6 million MNT. Index top 20 is 6442.95 units and was decreased by 9.29 units. 41.4 thousand shares of Moninjbar JSC were sold and it was the most actively traded stock at MSE. In comparison to the previous day’s trade, share price of Bayangol hotel was increased by 11.70 percent but share price of Erdenet carpet was decreased by 14.49 percent.

After the outbreak of umbilical infection disease the standing committee on social policy set up a working group and got au fait with the operations of the maternity hospitals number 1, 2 and 3.

The working group presented its report on Tuesday at the standing committee’s meeting. Although the health budget has been increasing year after year due to the inefficient policy and regulations not much attention has been given toward maternity hospitals’ issues which eventually caused the outbreak of the disease, according to the working group. Furthermore, they stated that finance ministry’s decision to cut the budget of the health ministry also was one of the factors. Read the rest of this entry »

The Parliament started to discuss a draft resolution on guidelines for privatization of state-owned properties in 2010-2012. The novity of the guidelines is a proposal by the Government to trade state-owned shares of shareholding companies through the stock exchange besides traditional ways of privatizations in the coming three years. Also the guideline enables issuance of IPO at the domestic and international markets by companies that need investments through consessional way. Majority of Parliamentarians, who commented with respect to the draft reolution, criticised the erroneous privatization 20 years ago and asked the draft initiators if there is a guaranty that it would not repeat the same mistake. The issue of trading state-owned shares of strategically important mineral deposits through the stock exchange drew attention of the Parliamentarians.

MP N.Ganbyamba: Privatizaion of 1990’s had no effect. No single plant has been built in the last 20 years. The guideline says shareholding companies with stateowned properties are to be formed and their shares will be traded. Aren’t any shareholding companies established today? Read the rest of this entry »

Eurasia Capital produced a research note on SouthGobi Energy Resources, the company which in our view has successfully become the “New Star in Mongolia”.  You can access the report on www.eurasiac.com

Alisher Ali Djumanov, CEO of Eurasia Capital gave interview with Bloomberg in which he discussed investment opportunities in Mongolia, sovereign wealth funds as well as SouthGobi, Ivahnoe Mines and Rusal in Bloomberg program “Commodities IPOs in Hong Kong”.  The video of this interview is available at www.eurasiac.com.

SouthGobi to raise up to US$500mn from HK listing and global share offering.  SouthGobi Energy Resources (SGQ) announced on 21 January 2010 that it has priced its share offering on the Hong Kong Stock Exchange (HKEx) at C$17 or HK$ 126.04 per share, the top end of the indicative price range. The shares have been significantly oversubscribed on the back of strong investor demand. 27mn shares are set to be sold to investors, with 90% of shares to be listed on HKEx and remaining to be sold in Canada.  If the over-allotment option of 4mn additional shares is excised, the Company will be able to raise up to C$527mn or US$500m in gross proceeds.  The shares will start trading on HKEx on 29 January 2010. Read the rest of this entry »

“MWTS” Co.ltd became Mongolian Stock Exchange member on January 18 of 2010 – 19th anniversary of establishment of the Mongolian Stock Exchange and establishment of capital market in Mongolia, based on the resolution number 246 stated on November 23, 2009 by the Financial Regulatory Commission to grant special license to run broker and dealer activities in securities market for a 3 years period and request of the “MWTS” Co.ltd.

MSE 46th member “MWTS” Co.ltd was established on July 31, 2009. The company started its operation with the goals to reach brokerage service to the professional level, acquaint the high quality securities to the investors, support JSCs operation, and implement and make standard good governance. Read the rest of this entry »

12.8 thousand shares of 10 JSCs were sold at MSE totalling 4.6 million MNT trade. Index top 20 is 6360.39 units and was increased by 8.71 units. 8.3 thousand Genko tour bureau shares were sold and it was the most actively traded share. In comparison to the previous day’s trade, share price of Darkhan Nekhi was increased by 5.0percent but share prices of State Department Store (-3.61 percent) and Eermel (-2.88 percent) JSCs were decreased during today’s trading session of MSE.

Two Vice Presidents of Mongolbank submitted their request of resignation. MPRP proposed Mr. Javkhlan.B and Democratic Party proposed Mr. Zoljargal.Kh, former Executive of MSE.

MPRP party group at SGK held meeting on the issue of Mongolbank. Mr. Purevdorj, President of Mongolbank, presented the issue for the discussion, because three presidents of Mongolbank are appointed by the State Great Khural.

Together with the issue, their replacements were also presented to the discussion. After three hours’ meeting of the party group, it didn’t made resolution. Because, some MPs ever raised a question of dismissing the President of Mongolbank, but it decided to postpone it until hearing of the President of Mongolbank’s report.

“Oyu Tolgoi” LLC Community Relations and Sustainable Development Department  is pleased to invite registered and interested bidders to the following public information sessions pertaining to two current tenders as listed below:

Community Health, Safety and Security Program Design Consultancy (RFP-OT-MR005508)

Information session to be held on Thursday, February 4, 2010 at 2:30 pm

Location: Chinggis Khan Hotel, Ulaanbaatar, Mongolia Read the rest of this entry »

Private entities and shops will be required to get a special license for trading cigarettes, stated the Citizens’ Representative Assembly of UB. ADRA Mongolia and the Department of Law of UB Governor’s Office signed a cooperation agreement to cut the consumption of cigarettes among the population, and especially among the youth.

In the scopes of the cooperation the Capital Council released a regulation that states about setting certain controls on cigarettes. Accordingly private entities and shops will need special licenses to sell cigarettes. Read the rest of this entry »

NEW YORK, NY — Ivanhoe Mines Ltd. marked five successful years of trading on the New York Stock Exchange (NYSE) today when Executive Chairman Robert Friedland rang the opening bell in a traditional ceremony signalling the start of daily trading.

Mr. Friedland was joined on the bell podium by guests and executives who included Sangajav Bayartsogt, Mongolia’s Minister of Finance; Andrew Harding, Chief Executive of Copper for Rio Tinto; Lawrence Leibowitz, Group Executive Vice President of NYSE Euronext; John Macken, CEO and President of Ivanhoe Mines; Peter Meredith, Deputy Chairman of Ivanhoe Mines; and former Massachusetts Governor Bill Weld, a Senior Adviser to Ivanhoe Mines.

Mr. Friedland said that during the past five years Ivanhoe Mines has emerged as a significant developer of mineral projects in the Asia Pacific region.

“Ivanhoe and its strategic partner, Rio Tinto, are building one of the world’s largest copper-gold mines at Oyu Tolgoi, in Mongolia, and have signed a landmark Investment Agreement with the Mongolian Government. SouthGobi Energy Resources, a subsidiary, is exporting high-quality coal to China from its first mine in Mongolia and another subsidiary, Ivanhoe Australia, has discovered the world’s highest-grade direct source of rhenium and molybdenum.” Read the rest of this entry »