Parliament spring session opens

Mongolia's national revenue has increased three times in the past five years. Mongolian economy is possible to increase this year more than eight percent than planned despite a bad situation in the country's agricultural sector, Parliamentary Speaker D.Demberel said at his remark at an opening of the spring session of parliament on Monday.


Prices of our mineral resources tend to rise from the previous year. A preparation for possessing strategically important new mineral deposits and putting them into economic circulation are principally completed on government level," he added.

"About MNT 500 billion is budgeted for investments and other actions in 2010. In addition, MNT 30.1 billion will be spent on development of small- and medium-sized enterprises, 20.6 billion on supporting employment and 9.5 billion on implementing 'Mongolian Livestock' program," Mr Demberel stated.

The Speaker urged to help herders who have been suffering from unexpected natural calamity. He underlined the importance of immediate support from the state and government in eliminating losses caused to the animal husbandry.

"Parliament plans to discuss 28 package issues this spring session. In total, some 100 bills and resolutions are expected to be discussed by parliament", he said.

Source: Montsame

Hong Kong-listed firm buys stake in Mongolian coal property

Kiu Hung Energy Holdings, formerly known as Kiu Hung International Holdings, intends to acquire a 19.99% stake in First Dean Holding, a coal firm based in Mongolia, for HKD1.4 billion.


The Hong Kong-listed firm will pay HKD3.58 million in cash and will pay another HKD209.2 million by issuing 523 million new shares at a price 33.3% more than its closing price before shares were suspended from trading. The new shares will account for 10% of the enlarged capital. The remaining HKD1.22 billion will be paid by issuing two batches of convertible bonds.

Source: news agency

Stock trading suspended.

A shareholders meeting of the Tuul Songino Usnii Nuuts JSC which was held on December 30, 2010 determined that “Tuul songino usnii nuuts” projects is impossible to be achieved and made a decision to give up implementing the projects.


In accordance with related laws, a decision of the shareholders meeting and FRC’s resolution of March 24, 2010, a stock trading of the “Tuul Songino Usnii Nuuts” JSC has been suspended on March 30 2010.
 
source: http://www.mse.mn/index.php?module=news&cat=1&id=1858

Ivanhoe not to sell its shares in Oyutolgoi, says Robert Friedland

Ivanhoe Mines is looking at various options to fund its development of the Oyu Tolgoi project, but will not sell a stake in the project itself, Executive Chairman Robert Friedland has said. Speaking at a special session on Mongolia at Asia Mining Congress 2010 in Singapore, Friedland said both Ivanhoe and the Mongolian Government, which owns 34% in the project, have the first right of refusal if either party wants to sell a stake.


With both sides unlikely to sell their stake in the mine, “the only way for anyone to participate (in Oyu Tolgoi) is to become a shareholder of Ivanhoe, and we like it that way” he said. Asked if China Aluminum Corp., or Chinalco, is in negotiations to buy a stake in Ivanhoe, Friedland said every mining company “is sniffing around” for opportunities, but he would not comment on interest from any specific company.

He said the only three companies technically capable of undertaking such a large project as Oyu Tolgoi are Rio Tinto, Chile"s Corporacion Nacional del Cobre, or Codelco, and Freeport-McMoRan Copper & Gold Inc. Rio Tinto, the technical operator of the project, already has a 22.4% stake in Ivanhoe and has an option to take it up to 46.6% eventually. Chinalco, which holds around 9% of Rio Tinto, is currently the single largest shareholder in the Anglo-Australian miner.

Friedland said Ivanhoe has budgeted to spend USD758 million on the construction of the Oyu Tolgoi mine in 2010 alone. It has appointed Citigroup Inc. and Hatch Corporate Finance to explore funding options. Mongolia"s gold production is expected to rise 300% and copper production will also rise significantly in the next five years as a result of the new project, he said.

source: http://biz.news.mn/content/5368.shtml

Mongolian Cabinet, Ivanhoe, Rio Tinto, Finalise Oyu Tolgoi Deal

The government of Mongolia approved on March 31st, the feasibility study presented by Ivanhoe Mines and its strategic shareholder, Rio Tinto. The feasibility study was the last of the ten conditions Ivanhoe had to meet, paving the way to start developing the Oyu Tolgoi copper gold mine. The Mongolian Government announced yesterday at a press conference, that it confirmed that the procedural and administrative conditions contained in the Investment Agreement had been satisfied within the allocated six-month period that has followed the agreements official signing on October 6, 2009 Ivanhoe Mines Ltd and Rio Tinto the development partners for the project, will now move forward with the Government of Mongolia to commence the development phase of the project. Production is expected to commence in 2013, with a five year ramp up to full expected production of 450,000 tones of copper per year with significant gold by-products. Projections remain to be confirmed in an updated development plan. Ivanhoe estimates total investment over the next four years to build and commission the initial mining complex which will be approximately US$4 billion. Building a coal-powered electricity generating plant for Oyu Tolgoi would require an additional capital commitment. D. Zorigt Minister for Mineral Resource and Energy said that today the minerals sector accounts for 22 percent of GDP and nearly 60 percent of national industrial sector. These figures will increase dramatically following the development of Oyu Tolgoi. Sources: Ivanhoe press release, Rio Tinto press release