Mongolia Business and Mongolian Daily Business News

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.

Mongolian dream

THE eyebrow-raiser on Friday was the debut of Hunnu Coal (HUN), whose 20c shares shot to 41c on debut, then settled to close at 33.5c. Who would have thought that coal exploration in Mongolia could have got investor pulses racing so quickly?

This has concentrated minds at the so far unlisted Xanadu Mines, which has some advanced coal projects in Mongolia. The Sydney company had been planning to float in Hong Kong, but that exchange has yet to bed down its new resource company rules, so it looks as if Xanadu might strike on the ASX while the iron’s hot.

Friday also saw the settlement by Windy Knob Resources (WKR) on its Ovoot coal project in Mongolia. Sadly for those who had become attached to probably the most colourful company name on the ASX, WKR will trade as Aspire Mining (AKM) from tomorrow. Read the rest of this entry »

Dear readers and subscribers,

As you may have known that the National New year of Mongolia (Lunar New Year) is approaching and today is the New Year’s Eve. I would like to wish you to strengthen and enrich what you have achieved in the Year of Ox and let your achievements and success be more strong and your life healthier.

Have An Excellent and Exceptional Year

photo courtesy of meforum.mn

Yesterday, the Mongolian Economic Forum has concluded and Prime Minister S.Batbold provided speech to the participants.

In his speech, Prime Minister S.Batbold said that “This Forum has shown that there was clear interest and demand of social dialogue on national development with active involvement of the Government, society, and business community and media representatives. The Forum has allowed us the opportunity to strive for the united solution, reach common sense and understanding even we had different views and opinions” I think that we all Mongolians have single goal but misunderstanding towards each other.
The main result and outcome of the Forum is that we reached the perception of encouragement if we discuss about the development of Mongolia sitting together. We discussed 6 main topics with the active participation of the President’s institution, State Great Khural, political parties and social representation. A well known economist Ernando de Soto contributed notable comments for the Forum. Read the rest of this entry »

“19 laws were adopted and 37 issues were discussed by the Standing Committee on Budget” said MP Ts.Davaasuren, Chairman of Standing Committee on Budget during the press conference. The most important laws were General Budget Law of 2010 and Law on Human Development. Mongolia plans to hold its budget deficit within 5% of GDP, according to the agreed program with IMF. Therefore, budget was adopted with deficit of ₮356 billion. IMF gave direction to the Government to keep the deficit below ₮416 billion.
Copper price, the main contributor to the budget revenue, was predicted at $5200 by the Government, but SGK increased it up to $5800. As for today, copper price is $6200 per ton at the market. Read the rest of this entry »

Mr. G.Zandashatar, Minister for Foreign Affairs and Trade received Mr. Kobayashi, Board Director of Itochu Corporation. Mr. Kobayashi has vast experience in the relationship between Mongolia and Japan, leading Economy Committee of Mongolia – Japan, and Itochu has been active in Mongolia over 20 years. Read the rest of this entry »