Multinational investment banks are after Erdenes Tavan-Tolgoi

The world’s top investment banks furnished their proposal to get involved in the IPO of Erdenes Tavan Tolgoi prior to closing of the tender announced by the government, due on 31 January 2011. Below is the list of investment banks submitted their proposal to the tender:


Bank of China
Jefferies and Company
Standard Chartered bank
Barclays Bank
ING
Bank of America - Merrill Lynch
Morgan Stanley
UBS
HSBC
Credit Suisse
Macquarie
BNP Paribas
CITI
JP Morgan
Goldman Sachs
Deutsche Bank

Mr. Enebish B, CEO of “Erdenes Tavan Tolgoi” LLC said, “The world’s giants are interested in. A Lot will depend upon us” and continued about current situation of Tavan Tolgoi deposit that “ company has been pursuing to mine 1-2 million tons of coal this year, 5-6 million tons in next year, then 15 million tons of coal after 4-5 years. Also highlighted that, “Erdenes Tavan Tolgoi” LLC is planned to export raw coal during first 2 years until coal washing plant built according to their approved business plan.

Source: BDSec

Work on Oyutolgoi ahead of schedule, Ivanhoe reports

Ivanhoe Mines has reported a narrower third-quarter loss and said full-scale construction at the Oyu Tolgoi copper and gold mine is progressing ahead of schedule. For the quarter, the company posted a loss of USD24.9 million versus a net loss of USD69.8 million a year ago. The Vancouver-based company reported quarterly revenue of USD6.6 million, mainly from its Ovoot Tolgoi coal mine in southern Mongolia. It expects to begin initial production of copper and gold at Oyu Tolgoi in late 2012. The company said discussions with a group of international financial institutions on a separate debt financing package are progressing and are expected to close in the first half of 2011.

Mongolia- Russia-China Border Railway Commission holds annual meeting

The Mongolia- Russia-China Border Railway Commission meeting began in Ulaanbaatar on Monday. This annual conference has been held since 1956 with the three countries playing host by turn. The Russian team was led by the A.I. Chernikh, Chief of the Transportation Center of the Sibir Railway, and the Chinese team by Ma Tsyan Fei, Deputy Chief of Chinese Railway Transportation.

Briefing media, Chernikh said that they had exchanged views on how to improve services, and reviewed implementation of the decisions reached at last year’s meeting in Khuhhot. Freight and passenger train transportation would be thoroughly discussed. 1.5 million tons of freight has passed through Mongolia-Russia borders so far this year. The Russian Railway has been reformed and the private sector is now very active.

D.Jigjidnyamaa of the Ulaanbaatar Railway added that the conference was focusing on technical issues and also discussing revision of border crossing and customs procedures. He said increased freight rates have had no effect on the volume transported but the work load relating to freight transfer in Zamiin-Uud and Ereen has to be eased.

“Discover Mongolia 2010”

“Discover Mongolia 2010” on September 8-10

 The Organizing Committee of Discover Mongolia has announced that the 8th annual International Mining Investors Forum will be held in Ulaanbaatar on September 8-10. “Mongolia is an exciting frontier in minerals industry where world class deposits are being discovered. Among them are the massive Oyu Tolgoi copper-gold deposit and Tavan Tolgoi- the world’s largest undeveloped coking coal deposit and many others” said Mr. Ankhbayar Gurdorj, Chairman of the Organizing Committee.

Mongolia welcomes investment in minerals business, and “Discover Mongolia” International Mining Investors Forum remains a resourceful base to launch and expand businesses, establish new contacts, learn of the latest developments and make deals.

In 2009, the 7th “Discover Mongolia” Forum was organized by the Mongolian National Mining Association alone, but this year, the founding members have decided to help in the efforts of the MNMA to add more value to the Forum and reinvigorate the business and entrepreneurial spirit among the participating investors by boosting the quality, content and scope of the Forum events.

Push to draw Chinalco into Oyu Tolgoi project

The governments of China and Mongolia are discussing a potential labour agreement which, if finalised, will transfer 2500 Chinese to work for the copper-gold mining project Oyu Tolgoi in Mongolia, the 21st Century Business Herald reported yesterday.

A person involved in the talks, who was not named, said the earliest a decision about whether Chinalco could participate in the development of the Oyu Tolgoi project may come next month.

If the government labour agreement is signed, the person said in the report that the chance for Chinalco to take part in the project would be higher.

Chinalco is now an indirect participant of the mine because it has roughly 9 per cent stake in Rio Tinto, which has a 22.4 per cent stake in Ivanhoe, the operator of Oyu Tolgoi project — the largest under-developed gold-copper mine in the world.

Rio has an option to increase its stake in Ivanhoe to 46.6 per cent eventually. Ivanhoe Mines has increased the expected production from the $US4.6 billion ($5.1bn) Oyu Tolgoi copper and gold mine in Mongolia.

 

It puts average annual output from the South Gobi desert mine at 540,000 tonnes of copper and 670,000 ounces of gold over a 27-year life, with first production in 2013.

 

Ivanhoe executive chairman Robert Friedland has said the company expects these results will continue to improve to where Oyu Tolgoi will rank alongside Grasberg and Escondida.

 

Ivanhoe has appointed Citi to review its options, including debt or equity raisings, sale of subsidiaries, project financing or other corporate transactions.

   

Source: business-mongolia