Mar. 16 – Mongolia’s travel and tourism sector directly contributed around US$256.3 million to the country’s gross domestic product in 2011, accounting for almost 4 percent of the total. Furthermore, it is forecast to rise by 7.3 percent in 2012, according to the World Travel and Tourist Council’s (WTTC) recent report titled, “Travel and Tourism: Economic Impact. Mongolia.”
The total contribution of the industry – direct, indirect and induced – is even larger and accounts for US$592.4 million, or 9 percent of Mongolia’s GDP, and is forecasted to rise by 6.4 percent in 2012. By comparison, the global average for direct industry contribution to GDP is 5.12 percent and for overall economic impact – 13.8 percent. Continue reading
Jan. 30 – The government is looking to launch an initial public offering of Erdenes Tavan Tolgoi ahead of parliamentary elections in June, while experts have warned that the coal deposit will raise much less than expected if listed in a hurry.
“We are trying to go for the IPO before the elections,” a senior Mongolian government official said, adding that a ministerial reshuffle is likely to occur this week, after which a task force would be set up to look into the IPO process.
The world’s largest coking-coal deposit of Tavan Tolgoi, located in the South Gobi Desert near China’s northern border, is still in its developing stages. Last year, it produced its first million tons of coal from deposits at Tsankhi. According to estimations, Tavan Tolgoi can produce 15 million tons of coal each year at full production capacity. Continue reading
Posted in Business, Finance, Markets, Mining
Tagged Erdenes Tavan Tolgoi, Gobi Desert, Mongolia Business, Mongolia Finance, Mongolia Mining, Tavan Tolgoi, Tavan Tolgoi IPO, Tsankhi
Jan. 18 – Mongolia’s economy, which grew almost 21 percent in the last quarter of 2011, risks contraction along with a global downturn in commodity prices partly due to a surge in state spending, according to the International Monetary Fund.
Government spending, which jumped 50 percent in real terms to 6.3 trillion tugrik (US$4.6 billion) last year, is on course to accelerate inflation to an average 18.7 percent in 2012, according to an IMF report. Continue reading
Sept. 2 – The South Korean Development Bank has won a government tender to manage the newly-established Development Bank of Mongolia. The agreement follows the Mongolian State Property Committee’s search for an international “management team” to run the Mongolian bank.
The committee ultimately selected the South Korean Development Bank, with the contract being signed off by Ch. Hashchuluun for the Development Bank of Mongolia, and Han Dai Woo and Kim Jang Ji for the Korean bank. Continue reading
Op-Ed Commentary: Chris Devonshire-Ellis
Aug. 25 – As in many emerging countries, the rules and regulations concerning foreign investment in Mongolia can be changeable. In some instances, the government has granted licenses to companies to operate in certain mining areas, only to rescind them later. However, while the regulatory environment in Mongolia as concerns investment may have been erratic, it is improving, and with the assistance of a raft of international organizations to help them, the certainty of the business operational situation in Mongolia is improving. Continue reading
Aug. 25 – In signs of what will become a regular spot on the international business travel itinerary, U.S. Vice President Joe Biden arrived in Ulaanbaatar this week for a visit to Mongolia, which he called a shining example of democratic development. This follows on from his earlier meetings in Beijing.
During his visit, Biden praised Mongolia for successfully carrying out presidential and parliamentary elections after making a peaceful transition to democracy in the early 1990s. The landlocked country had been a Soviet satellite for decades. Continue reading
Aug. 10 – Mongolia-focused oil explorer Petro Matad has said it has found hydrocarbons at one of its wells in Eastern Mongolia, almost a year after it discovered oil at the first well it drilled in the region. The explorer said initial analysis at its Davsan-Tolgoi-4 (DT-4) well pointed to an oil interval containing a minimum of six meters of net pay — the zone of a reservoir that contains economically producible oil.
Petro Matad said the deeper regions of the reservoir also exhibited the presence of hydrocarbons and further analysis was being carried out at the site. Continue reading
Aug. 9 – Ivanhoe Mines Chief Executive Robert Friedland has suggested the company he founded is worth more than double its current value, based on recent deals in the copper sector and the quality of its Oyu Tolgoi mine in Mongolia. Global markets are expecting global miner Rio Tinto, Ivanhoe’s biggest shareholder, to buy out Ivanhoe to secure full ownership of the massive Oyu Tolgoi copper-gold-silver mine, which it operates, sometime after January 2012.
Friedland said based on the 1.4 times net asset value that top gold miner Barrick Gold paid for copper miner Equinox Minerals earlier this year, Ivanhoe would be worth between US$34 and US$46 a share. That compares with Ivanhoe’s last trade at US$25.50. Continue reading