By Elena Fehrbach
Apr. 8 – The Government of Mongolia has approved the investment structure for proposed Sainshand Industrial Complex, where 66 percent of investment is expected to be foreign. The preliminary feasibility study conducted by Bechtel Group Inc., a civil engineering company from the USA, shows that more than 10 billion USA investment may be required in total to fund the project, out of which 4 billion USD required to build the power distribution system and waste storage facility. The Development Bank of Mongolia is currently deciding on lending of approximately 10 million USD needed to cover the technical studies preparation. Continue reading
By Elena Fehrbach
Apr. 2 – The capacity of the planned power plant at Tavan Tolgoi coal mine will be increased from previously planned 300 MW to 450 MW. According to the Ministry of Energy, the capacity of the future plant should meet the needs of Tavan Tolgoi coal mine and help Oyu Tolgoi with power supply. Power plant will be fueled by the coal from Tavan Tolgoi. Continue reading
By Elena Fehrbach
Mar. 1 – Legal reform is continuing in Mongolia. Release of the new Strategic Foreign Investment Law draft in May 2012 is followed by release of the new Minerals Law draft. Minerals Law is truly considered to be one of the most important legal documents in Mongolia where 90% of all exports is occupied by different mineral commodities.
The current Minerals Law was adopted in 2006. The next step was taken on 17 June 2010 when the Government has issued the moratorium on issuance of the new exploration licenses. The moratorium was supposed to be in place until 31 December 2012, the date when the new Mineral Law was assumed to be adopted. Recently conducted plenary session has extended the moratorium term until the new Minerals Law is adopted. The current status of new exploration licenses issuing keeps local and foreign miners concerned about the opportunity to extend the portfolio of licenses by issuing and/or tender process, as the date of adoption of the new Minerals Law is not defined yet. Continue reading
Jun. 28 – Today is the day for Mongolians to vote in the 2012 Parliamentary Election. The Mongolian 76-member legislature – the Grand Khural – is sovereign with ultimate power over laws.
The Parliamentary Election of 2012 is scheduled to be carried out from 7 a.m. to 8 p.m. today, June 28. Due to the election, 11 political parties and two coalitions have submitted their platforms and nominated their candidates for new proportional representation party lists and majoritarian electoral ridings. Continue reading
Jun. 11 – The recent opening of eight new border gates between Mongolia and China exclusively for coal transportation will significantly increase coal export capacity between the two nations, SouthGobi Resources Ltd. said in a statement.
Coal was previously transported out of Mongolia at Shivee Khuren-Ceke through a single gate approximately eight meters wide, which would allow empty trucks into Mongolia in the mornings and loaded trucks into China in the afternoons, the company said in a Hong Kong stock exchange filing. Continue reading
May 24 – Macquarie and Bank of America-Merrill Lynch have been appointed joint global coordinators and bookrunners for the proposed listing of Mongolian iron ore miner Altain Khuder, a person familiar with the matter told Deal Journal Australia.
Altain Khuder is one of Mongolia’s largest iron-ore miners, which owns the Tayan Nuur iron ore mine in the southwest of the country. The company is planning to raise about US$300 million through a Hong Kong initial public offering (IPO). Continue reading
Posted in Business, Foreign Trade, Mining
Tagged Altain Khuder, Australia, Bank of America, Coal, Iron Ore, Macquarie, Mongolia IPO, Mongolia Mining, Steel
Apr. 10 – The Ulaanbaatar Railway Mongolia-Russia joint venture (UBTZ) transported a record 18.4 million tons of cargo and gained net profits amounting to more than 4.4 billion tugrik last year, according to the company statement which was announced during a regular meeting of the board of directors.
Freight traffic has grown by 10 percent, while the volume of passengers has grown by 9 percent to 3,829,000 in 2011, compared with 2010. The majority of passengers (3,662,600) were carried domestically, and 166,400 passengers internationally.
Freight turnover for the Ulaanbaatar Railway, or the Trans-Mongolian Railway, stood at 11,382,000 tons in 2011. Continue reading
Apr. 3 – Ivanhoe Mines has reported that construction of the Oyu Tolgoi (OT) copper-gold mining complex is advancing toward its planned start-up in 2012 with commercial production scheduled for the first half of 2013. The project is currently 72.7 percent complete, according to the company.
Ivanhoe, which began investing in the project in April 2011, has spent US$4 billion on the Oyu Tolgoi complex. In total, including drilling exploration and preparation work on the mine, the company has currently spent US$10 billion on the project.
OT – located 550 kilometers south of Ulaanbaatar and 95 kilometers from the China-Mongolia border – has large copper, gold, silver and molybdenum reserves. The mine is subdivided into three sections: