Daily Business News Mongolia

MP Ts.Badamsuren: The limit is over for making incomplete laws

Oyu Tolgoi and Tavan Tolgoi deposits are to be exploited soon. There is a talk about finalize drafting the amendment in the Mineral Law of Mongolia by February 1 2009. It was cleared by MP Ts.Badamsuren, the head of the working group on amending the Mineral Law of Mongolia.

Q: The Government received full power to start negotiation on Tavan Tolgoi and Oyu Tolgoi. But when the draft amendment will be proposed to the State Great Khural. Is it true that it will be ready by February 1 2009? (more…)

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The Government of Mongolia receives the power of starting deal and signing on investment agreement.

The State Great Khural made a crucial step toward starting deal and signing on the investment agreement of Oyu Tolgoi and Tavan Tolgoi. Yesterday, the State Great Khural session was progressive and more serious than ever before.

The issue that was not scheduled in the session was “General Principle and Guideline”. Many MPs think that due to the failure of singing on the investment agreement of strategically important deposits of Mongolia lost so many chances. Therefore, most of MPs thought that it is not necessary to make populism on this issue.
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Mongolia Turns to Hong Kong for IPOs, President Says

Dec. 3 (Bloomberg) — Mongolia is pushing its commodities companies to sell shares in Hong Kong next year to raise funds, President Nambaryn Enkhbayar said.

The country is seeking investors in Hong Kong, where about $12 billion of shares changed hands daily last year, compared with an average $208,844 in its home bourse, based on data from the Mongolian Stock Exchange’s 2007 fact book.

“Next year will be a very important and crucial year for Mongolian companies to list here,” Enkhbayar said in an interview in Hong Kong yesterday. “Mongolian companies have been planning to do IPOs here, but because of the financial situation of the world market, they’ve decided to delay.” (more…)

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Khan Resources Announces Letter of Intent With Marubeni Corporation

TORONTO, ONTARIO, Dec 04, 2008 (MARKET WIRE via COMTEX) —-Khan Resources Inc. (TSX: KRI) is pleased to announce that it has signed a Letter of Intent (LOI) with Marubeni Corporation of Japan relating to uranium exploration and mining in Mongolia. The Energy Division of Marubeni is a multi-national trading company that has been most successful in investing in the oil, gas and uranium sectors, and is interested in working with Khan on the Mongolian Dornod uranium project.

“We are excited by Marubeni’s interest in Khan’s Dornod uranium project and are optimistic about the positive influence Japanese investors have on the Mongolian mining investment environment. Marubeni is a world-class player in the commodities trading arena and we look forward to working together for the mutual benefit of all stakeholders”, stated Martin Quick, Khan’s President and CEO. (more…)

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Mongolia to reopen talks on mine development

ULAN BATOR, Mongolia — Mongolia decided Thursday to reopen talks with international mining companies on two key mineral deposits, a national issue so sensitive that it helped lead to deadly rioting, a protested election and the country’s first-ever state of emergency earlier this year.

The poor, landlocked country is trying to retain more of its natural wealth from its huge mineral deposits, including copper, gold and coal, but it has been hit hard by falling metals prices. (more…)

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Rio Tinto slashes more jobs all the way to Mongolia

RIO Tinto, which outlined a multi-billion-dollar capital expansion plan as it resisted BHP Billiton’s takeover overtures, yesterday continued to slash proposed spending in light of its huge debt and sagging world economic growth.

With BHP having canned the bid and commodity prices plunging, Rio announced a major staff cut at its massive Mongolian copper joint venture.

It also effectively tossed its planned $1.1 billion expansion of its Kestrel mine near Emerald in Queensland up in the air, though the development of its Clermont mine, to replace Blair Athol, is apparently on track. (more…)

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Working group on amending Mineral Law of Mongolia is to meet again.

Today, the working group on amending Mineral Law of Mongolia, led by MP .Kh.Badamsuren, shall report to the Standing Committee on Economy. Actually this amendment was supposed to propose together with draft agreement on Oyu Tolgoi and Tavan Tolgoi by the Government of Mongolia, by December 1 2008. But it was postponed because of the Draft of the State Budget discussion. (more…)

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Mongolia Mulls Faster Investment Approvals, President Says

Dec. 3 (Bloomberg) — Mongolia, sitting on what Rio Tinto Group has said is the world’s largest undeveloped copper-gold resource, is considering faster approval for investments after commodity prices plunged, President Nambaryn Enkhbayar said.

Government and lawmakers are discussing the possibility of reviewing projects individually rather than waiting for changes to its laws, Enkhbayar said in an interview on Bloomberg Television in Hong Kong. (more…)

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Polish President’s the first visit to Mongolia since 1990

Prime Minister S.Bayar met with the Polish President Lech Kaczynski. Prime Minister S.Bayar said that “Poland is rich in coal and has abundant experience in exploiting coal mines and training professional and skilled worker for this field. Therefore, Mongolia has an interested in cooperating with Poland in the sectors of mining and railway and training workers for these sectors.” He also added that Mongolia and Poland have possibility of attracting Polish investors in coal mining sectors and introducing new technology and know-how into Mongolia. (more…)

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MP Ch.Khurelbaatar, Head of the Standing Committee on Budget: Budget has a big chance to be changed in the future.

Q: The State Budget has loss of 6.1%of GDP. What was the main factor of such loss in the budget?
MP Ch.Khurelbaatar: This budget was approved in quite decisive period of crisis and newly established parliament. It can be said that this crisis situation affected the budget. Also some measures were inserted in the budget in relationship with the crisis. Therefore, the total budget loss is 395 billion MNT or 6.1% of total GDP. But the state budget current balance has profit of 300 billion MNT. The current balance is the index of the state has savings for its creation from the income. Therefore, current balance of 300 billion MNT says that major part of its budget loss is because of the investment and creation. (more…)

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