Mongolia Business and Mongolian Daily Business News

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.

One of the main priorities of the Batbold’s administration is to decrease the number of universities and reform the educational sector of Mongolia. In the frames of it the government is discussing about erecting campus complex that will meet international standards.

Yesterday, PM S. Batbold familiarized with the operations of the associated officials who were directed to study the matter. Yo. Otgonbayar, minister of education stated that the campus can be erected either in Buyant Ukhaa or Yarmag. USD 300 million is required in erecting the campus complex, and additional USD 45 million in developing the infrastructure. The land and investment issues are planned to be settled within this year, officials reported. Read the rest of this entry »

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 »

A working group established by the Security and Foreign Policy Standing Committee of SGK has concluded its examination on Mardai group deposits. MP Z.Enkhbold, Chairman of the Committee, held press conference.

Q: Was illegal issuance of licenses revealed during the examination?

MP Z.Enkhbold: Uranium deposits located in the territory of Bayandun, Gurvanzagal and Dashbalbar soums of Dornodn aimag were explored between 1971-1974 and “Uranium exploitation Agreement in the Mongolian territory” was made between the Government of Mongolia and Soviet Union in December 23 1981. It mined 510.6 thousand tons of ore between 1988 – 1995.

But MRA issued mining and exploration licenses to “Emeelt Mines”, “Western Prospector Mongolia”, “Adamas Mining” companies in the previously mined areas, breaching provision 2.3 of article 17 and provision 1.4 of article 19 of the Mineral Law of Mongolia. It is illegal to issue exploration license in the previously mined areas. After Agreement of Concession was annulled in late 1989 and early 1990, all uranium properties returned to Mongolia. I would like to quote two examples to give you how big scale of work were underwent in the above – mentioned areas; over 40 kilometers of railway to transport small carriers was laid and three horizontal shafts were built. After the Agreement with Russia was annulled, all reports, findings, locations of ore, electrical supply lines and over 130 kilometers long railway was transferred to the Mongolian side free. Over 14 licenses were issued to 4 companies in the previously mined areas. It is much similar to issue an exploration license in the mining area of Erdenet copper and molybdenum mine and then to raise fund at the Canadian Stock Exchange. Read the rest of this entry »

3 stock trades were held during the week of 17-19th of February. 291.9 thousand shares of 24 JSCs were sold at MSE totalling 582.9 million MNT. Index top 20 reached 6890.08 units and were increased by 249.29 units or 3.8 percent. The total market capitalisation reached 668.3 billion MNT.

Shares of total 24 JSCs were traded; share prices of 17 JSCs were increased, share price of 1 JSC was decreased but 6 JSCs were unchanged. Shares which prices were increased are Shariin gol (31.6 percent), Talkh Chikher (25.0 percent) and Aziik (15.0 percent) but share price of Suu JSC was decreased by 14.7 percent. Read the rest of this entry »

photo courtesy of gogo.mn

Q: Feasibility study of OT deposit was rejected by the Mineral Wealth Council of Mongolia. What was the main reason of rejection?

Minister D.Zorigt: Professionals and experts made comments during the hearing and meeting of the Mineral Wealth Council of Mongolia. Also they put several questions from investors. Upon receipt of the response the approval will be discussed. Working group met with investors regarding the above-mentioned questions on February 5 2010. Investors’ side promised to give detailed explanation on the questions .

Q: It said that total capital investment size increased in the feasibility study by $1 billion. What is your opinion?

Minister D.Zorigt: Initial investment size hasn’t increased. It’s all investment is made according to the investment agreement.

Q: Upon signature of the agreement, the Government will receive $250 million as pre-paid loan. When the second funding will be made? Read the rest of this entry »

Yesterday, progress of Oyu Tolgoi project was reviewed during the government meeting. D.Zorigt, Minister for Mineral Resources and Energy said 7 of the 12 issues to be resolved in the six months before implementation begins have been resolved. The certain points were raised by the Professional Council of Minerals and the working group sought clarification from the investors. Reply from the investors is expected soon. Internationally recognized organisation will carry audit inspection. Tax exemption claims are being assessed by the Tax Authority and the work should be finished within February says the officials.

67.9 thousand shares of 14 JSCs were sold totaling 55.6 million MNT trade. 56.3 thousand Khukh gan JSC shares were sold and it was the most actively traded stock. In comparison to the previous day’s trade, share price of Aziik JSC was increased by 15.0 percent but share price of Baganuur JSC was decreased by 3.13 percent. Index top 20 dropped to 6890.08 units with a decrease of 3.14 units if compared to the previous trading session. Additionally, no government or private bonds were sold today, at MSE.

D.Demberel, Speaker of the Parliament will pay an official visit to the Republic of Korea with an invitation from National Assembly of Korea. Speaker Demberel will hold meetings with Kim Hyong-O; Speaker of National Assembly, Yu Son Ho, head of the Standing committee on justice and Park Jin, head of the Standing committee of foreign affairs and trade. The both sides will shares views on the bilateral relations and cooperation. The Speaker will visit Jeju Island and will give interviews to TV channels and the press. He will also be received by Lee Myung-bak, the President of the Republic of Korea. The Speaker’s delegation includes D.Odkhuu MP and other members of the Mongolia-South Korea parliamentary group.

213.5 thousand shares of 12 JSCs were sold at MSE totalling 515.1 million MNT trade. Index top 20 reached 6893.22 units and were increased by 150.96 units. Shares of Shariin gol JSC was the most actively traded. In comparison to the previous day’s trade, share price of Shariin gol JSC was increased by 14.94 percent, Talkh chikher JSC by 15.0 percent and Bayangol hotel by 10.53 percent respectively. No government and private bonds were traded.

Today’s trading session is recorded as the most actively traded session since the year 2008. The economic recession lead to the stock exchange downturn. The officials explain that trading worth of over 500 million MNT was last seen in the year 2008.