Daily Business News Mongolia

Interview with MP O.Chuluunbat: To become the factor that without Mongolian copper, the Chinese factories to be in trouble

Q: Inflation reached 33%. Can Bank of Mongolia and The Ministry of Finance take right measure to harness the inflation?

Chuluunbat: Yes, inflation reached 33%. Not only Bank of Mongolia is the guardian of inflation. Inflation is not because of sole policy of Mongol Bank, but it is fueled by budget policy. During the last two years, the budget expenditure has increased by 70%. It is over 100% including this year’s increase. Such big expense definitely accelerates the inflation. If the budget expense was devoted for the investment, then it won’t be like this. All expense was spent only for the pocket, therefore everybody spend their money in shops. In this sense, inflation was fueled by budget policy not by the policy of Bank Mongolia. The Bank of Mongolia is trying to harness the inflation, but measures don’t show any effect. The Bank of Mongolia has some other measures. It will probably talk with the Parliament and Government. (more…)

Posted in Business, Economy, Government, Interview | No Comments »

Gas price might fall down

People are hit hard by rapid tariff growth of transport vehicles caused by price increase in the commodity market. Then, very pleasant news is that gas price is to fall down in few days. Last spring the Government adopted the draft resolution on “Some measures on accumulating petroleum resource products”. As a result, it was decided to buy a total of 107.934 tons petroleum products for storage in 2008, of which 20.600 tons would be imported from China and Russia with the funds of the Developing Mongolia Foundation on August. The first part of the petroleum products is imported in accordance with the agreement. We got some details from Ch.Chuluunbat, Head of Petroleum Products Department of Minerals and Oil Authority.

So far how much resource has been accumulated?
Of 8700 tons petroleum products to be imported from Russia, 6000 tons has been imported and forwarded to the storage. And 1400 tons out of 8000 tons to be imported from China has been forwarded. Within the 10th of September 20600 tons of resource shall be accumulated.

How many percentage of storage petroleum it equals to? When is the remainder due?
Its equals to about 20 percent. The remaining shall be imported within the year according to schedule. (more…)

Posted in Business, Economy, Government | No Comments »

Profit warning bashes Metal-Tech

LONDON (SHARECAST) - Speciality metal producer and recycler Metal-Tech crumpled today on news that the weaker dollar versus the Israeli Shekel will mean interim pre-tax profits falling “significantly” below expectations.

A 13% drop in the value of the dollar versus the Israeli currency since the end of last year has prompted a big increase in the cost of sales, operating expenses and finance expenses, it said.

Meanwhile, revenue for the first six months of 2008 significantly higher than management expectations has not translated into better operating profit due to the higher cost of labour and consumables. (more…)

Posted in Business, Mining, News | No Comments »

Yangtze Telecom Announces Second Quarter 2008 Financial Results

Yangtze Telecom Corp. (TSX VENTURE:SMS) today reported its financial results for the second quarter ended June 30, 2008. During the quarter, the Company operated through a subsidiary in China - 95%-owned Hunchun VAS Technology Company Ltd. (HCVAS) and a subsidiary in Mongolia - NBC Co. Ltd. (NBC). All dollar amounts are in Canadian dollars unless otherwise noted.

Revenue for the quarter ended June 30, 2008 was $3,061,000, consisting of $3,030,000 of sales from HCVAS and $31,000 of sales from NBC. The comparative sales with the same quarter in 2007 for NBC was $15,000 and for HCVAS, nil as HCVAS was acquired in December 2007. The revenue of HCVAS was all derived from sale of software licenses for the biometric fingerprint car security system. (more…)

Posted in Business, News | No Comments »

Russia: PAVA exported 31.600 tonnes of flour in 2008

PAVA company is increasing its developing rates for the foreign market. During the first eight months of 2008, PAVA exported 31.600 tonnes of flour on the foreign market, or 83.9% of planned volumes to be exported in 2008, according to the company.

Further, PAVA has contracts with 13 countries including Mongolia, Tajikistan, Afghanistan, Kyrgyzstan, Turkmenistan, Uzbekistan, Somalia, Ethiopia, North Korea, Bangladesh, Thailand and others for continuing exports.

SOURCE: Agrimarket Consulting

Posted in Agriculture, Business | No Comments »

Khan walks away from bid for Western Prospector

TSX-listed Khan Resources will allow its offer for Western Prospector to lapse on Wednesday, the company said in a statement.
Western Prospector, which has said that Khan’s offer of 0,685 of a Khan share for each Western share undervalued its prospects, in July endorsed a rival C$1,34 a share bid from Tinpo Holdings.
Khan first announced its takeover plans in May.

Both it and Western Prospector have properties in Mongolia, but Western Prospector argued that its Saddle Hills uranium project is closer to a production decision than Khan’s Dornod prospect. (more…)

Posted in Business, Mining | No Comments »

Foreign Minister of South Korea to visit Mongolia Next Week

Minister of Foreign Affairs and Trade Yu Myung-hwan will visit Russia next week for talks on bilateral ties, a ministry official said Wednesday.
“Minister Yu will leave for Russia Tuesday and is considering visiting Mongolia before returning to Seoul on the weekend” said the official.
In Moscow, Yu will meet with his Russian counterpart Sergei Lavrov to discuss the schedule and agenda for a summit between Presidents Lee Myung-bak and Dmitry Medvedev slated for later this month in Moscow, he said.
Yu and Lavrov will also discuss ways to resolve North Korea’s nuclear issue as well as promote bilateral ties, he added.
There has been no fixed schedule for Yu’s visit to Mongolia, said the official.

SOURCE: The Korea Times

Posted in Government, Politics | No Comments »

Mongolian leaders headed to Middletown

A cultural festival in Middletown will host a business conference for United States and Mongolian business leaders.
The conference, from Oct. 1-3 will occur as part of the Middfest International at Manchester Inn, a festival that seeks to expose people to other cultures.

Mongolia is a country slightly smaller than Alaska and wedged between China and Russia.

The program begins on Oct. 1 with an overview of Butler County’s economic development activities followed by group tours of area businesses. Participants from Mongolian companies will be matched with area business entities in their sectors of interest. One-on-one meetings and visits to offices and plants are scheduled for Thursday, followed by tours of the U.S. Air Force Museum and industrial areas surrounding Wright-Patterson Air Force Base. The program activities conclude on Friday morning with a breakfast and roundtable discussion followed by a tour of AK Steel Corp.’s (NYSE: AKS) Middletown plant. (more…)

Posted in Business, Government | No Comments »

Khan Resources Allows Offer for Western Prospector to Expire

TORONTO, ONTARIO, Sep 03, 2008 (MARKET WIRE via COMTEX) — Khan Resources Inc. (CA:KRI: news, chart, profile) announced that it will allow its offer to acquire the outstanding common shares of Western Prospector Group Ltd. to expire today and will not acquire any shares of Western Prospector pursuant to the offer.
On May 11, 2008, Khan announced its offer to acquire all of the outstanding common shares of Western Prospector in order to consolidate its position in the Saddle Hills district of Mongolia and achieve significant synergies from the joint development of Khan’s Dornod uranium deposit and Western Prospector’s Gurvanbulag uranium deposit in that district. (more…)

Posted in Business, Mining | No Comments »

Australian ambassador presents his credential letters

Mr.Peter Rowe, newly appointed ambassador of Australia to Mongolia presents his credentials to the president N.Enkhbayar today. “I hope that bilateral relations between 2 countries shall be expanded during your service. We are always glad with Australia’s scholarship for Mongolian students. Economic cooperation is one of significant units in our relations, especially in mining sector. We are planning to organize international summit on climate change in North East Asia. Our neighboring countries strongly support this idea, and I believe that Australia shall take part in summit next year”, president says.

Ambassador Peter Rowe: “I am glad to visiting in Mongolia as an ambassador for a second time. Climate change is not only economically but also strategically significant issue. My gratitude to your concern on global problem.”

Posted in Economy, Government, Politics | No Comments »