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
Aug. 2 – According to a new decree issued by the president of the Bank of Mongolia (BoM), the country’s central bank, minimum capital reserves for the country’s commercial banks are to be doubled to MNT16 billion by May 2013 in an effort to cut down on the number of small banks across the country.
Of Mongolia’s 14 commercial banks, only half currently maintain the target of MNT16 billion. If the commercial banks cannot reach the target by the deadline, they will be forced to shut down or merge with other banks. According to the calculations and predictions of the BoM, the commercial banks can all fully achieve the target by increasing their revenue and profit. Continue reading
Jul. 29 – The Mongolian government has awarded the massive western Tsankhi block of the Tavan Tolgoi mine to a coalition led by China’s largest coal company Shenhua Group. They have taken a leading 40 percent share of the project, leaving a Russian-Mongolian concern with 36 percent and U.S.-based Peabody Energy with 24 percent.
Industry sources familiar with investing in Mongolia said the government, as expected, opted in part to satisfy China’s huge appetite for energy resources. The open pit Tavan Tolgoi, one of the world’s largest untapped mines, has proven reserves of 6.4 billion tons, including 1.2 billion tons in the Tsankhi block alone. Continue reading
Jul. 20 – Total exports from Mongolia rose 52.3 percent in the first half of 2011 to a total value of US$2 billion, with 90 percent of the total delivered to its southern neighbor China, according to Mongolia’s National Statistics Committee.
Minerals made up the bulk of the increase, rising 71.8 percent from a year ago and making up about 85 percent of the total volume, Mongolia’s National Statistics Committee said late on Monday. Over the past six months, imports into Mongolia reached US$2.7 billion, also more than double the same period of last year, the committee said. Continue reading