Mongolia Business and Mongolian Daily Business News

The Russian delegates of “Ulaanbaatar Railway” Joint Cooperative have arrived in Ulaanbaatar to attend the general committee meeting. The meeting will focus on possible increase of capital. Parties agreed upon increasing its capital up to $250 million, but no progress is made so far. Parties consider this meeting as important. 11 main issues will be discussed during the meeting such as production activities of 2010, financial situation of the Joint Cooperative.

The general committee consists of six members, three Mongolians and three Russians.

Distribution of MNT 70 thousand for every citizen may sound good but on the other hand it has negative effect on the economy, especially the inflation. Statistics shows that cash flow in the economy in February was increased by 89.0 billion MNT or 3.1 percent from the previous month. Extra cash in people’s hands mean demand will rise for consumer goods and will result in to hype the inflation.

Some economists predict 5 percent of inflation for the beginning of this year but official statistics for January and February are not yet revealed. Major holidays like the Mongolian New year also affected the price of consumer goods during February.

The bad fact of the distribution of 70 thousand MNT of the HDF is that it will bring the price of consumer goods up, therefore the few little cash on people’s hand is worthless in the long run. Additionally, increased cash flow in the economy did not increase domestic production as import already rose by 90.0 million USD or 43.7 percent this year alone. This is one of the worst news as it continues to increase the trade deficit of Mongolia.

The Foreign Investment and Foreign Trade Agency of Mongolia, in conjunction with Hong Kong Exchanges and Clearing, Mongolian State Property Committee, Mongolian Stock Exchange is going to organize  “FORUM ON HONG KONG LISTING OF MONGOLIAN ENTERPRISES” in Hong Kong, China on April 12^th within framework of Prime Minister`s visit to Hong Kong. Read the rest of this entry »

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 »

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.

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 »

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.

Mr. Claus Roland is appointed as the Director and Country Resident Representative of World Bank for Mongolia He is also in charge of affairs of Republic of Korea and China. Before appointed for Mongolia, he was Country Director for Russian Federation. Mr. Roland is German and has been service for World Bank since 1981, missions in South America, East Europe and Asia.

He was in charge of China since mid 1990s. Mr. Claus Roland will pay visit to Mongolia in March or April.

The Mineral Wealth Council of Mongolia held meeting on “Toson Uul – XIX” oil field in Tamsag basin of Dornod aimag and approved its reserve.

“Upon this approval experimental oil production is converted into official and Mongolia has become oil producing country.” said Mr. D.Amarsaikhan, Head of the Oil Authority of Mongolia. “The proven reserve of the field is 199,2 million ton”, he said. Read the rest of this entry »