Anglo American PLC shows interest in Mongolian copper and coal deposits | Ubpost News

Anglo American PLC shows interest in Mongolian copper and coal deposits | Ubpost News: "It’s already been six months since one of the biggest mining companies in the world, Anglo American PLC, opened an office in Mongolia. On July 4, the company presented ways to efficiently implement social responsibility in mining to other companies in the sector. It was the first time that Anglo American PLC had spoken publicly and it announced that it will be studying opportunities to make investments and it also showed interest in mostly copper and coal deposits in Mongolia.
President and Chief Representative for the Anglo American office in Mongolia, Graeme Hancock, expressed that the company hopes to be a good partner to Mongolia and looks forward to cooperating with various social groups and province administrators, as well as non-governmental organizations."

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Asia Times Online :: Australia lifts role in Mongolia

Asia Times Online :: Australia lifts role in Mongolia: "Australia believes it can be a strong "third neighbor" to Mongolia because its companies are well placed to assist in the development of Mongolia's resources sector. Concurrently, this is a way for these companies to lessen the impact of Mongolian minerals replacing Australian ones in the Chinese market. A

Although the political controversies around revising Mongolia's foreign investment laws and reopening the OT agreement with Rio Tinto are serious concerns for Australia, the Australian Ministry of Foreign Affairs and Trade, out of belief that Australia can be Mongolia's model for managing its mining economy and mineral wealth, has made Mongolia a priority country under its Mining for Development initiative. "

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Mongolia taps Shenhua to break China coal impasse - MarketWatch

Mongolia taps Shenhua to break China coal impasse - MarketWatch: "BEIJING--Mongolia is reaching out to China's largest coal producer China Shenhua Energy [1088.HK] in an effort to break a deadlock over the terms of a souring coal supply deal with another Chinese giant, Aluminum Corp. of China [ACH], Mongolia's ambassador to Beijing said Friday.

The growing squabble with China, its largest trading partner, underscores how swiftly changing political and public sentiment in Mongolia toward foreign investment in the country's fledgling mining sector could throw into disarray the development of its Tavan Tolgoi deposit, potentially the world's largest untapped coal reserve."

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Mongolia Defends Draft Mining Law Branded as Bad for Investment - Bloomberg

Mongolia Defends Draft Mining Law Branded as Bad for Investment - Bloomberg: "Mongolian officials held a briefing yesterday to defend proposed changes to a mining law that the country’s biggest business association says would deter investment."

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Mongolia: Fast growing economy, evolving investment climate

Mongolia: Fast growing economy, evolving investment climate: "There are two world class mines that hold the key to economic success in Mongolia, namely Tavan Tolgoi, one of the world's largest coking coal deposits, and Oyu Tolgoi, the largest underdeveloped copper/gold project. The IMF estimated that export proceeds from these two mines could total US$2 billion in 2013, rising to US$7 billion by 2020, while Mongolia’s GDP in 2011 was only $8.8 billion.

With the expected $3 billion Tavan Tolgoi IPO this year and commercial production of Oyu Tolgoi to commence in first half 2013, it appears the Mongolia economy is poised to maintain good momentum. Mongolia’s average real GDP growth is projected to be 13.4% annually over the coming 5 years due to mining initiatives, according to IMF’s World Economic Outlook 2012."

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China and Mongolia to strengthen ties in mining infrastructure - Proactiveinvestors (AU)

China and Mongolia to strengthen ties in mining infrastructure - Proactiveinvestors (AU): "Mongolian Mining Minister D. Gankhuyag highlighted the rapid development of Mongolia-China economic and trade cooperation, saying that Mongolia has seen Chinese investment rapidly increasing in the country in the last few years.
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Mongolia: Fast Growing Economy, Evolving Investment Climate - Seeking Alpha

Mongolia: Fast Growing Economy, Evolving Investment Climate - Seeking Alpha: "Mongolia, entirely flanked to the north and south by Russia and China, is the most sparsely populated country in the world. However, the country has vast natural resources with more than 6,000 known mineral deposits of 80 different minerals. It has the potential to become a major player in global commodity markets with its rich gold, copper, zinc, uranium, coal, molybdenum and oil reserves."

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Mongolia Draft Mining Law Threatens Investment Climate -Business Group | Fox Business

Mongolia Draft Mining Law Threatens Investment Climate -Business Group | Fox Business: "The legislation, which includes a requirement for existing miners to relinquish stakes in projects to indigenous groups, marks a departure from the free-market principles that have benefited the country since the 1990s, The Business Council of Mongolia, the country's largest business group, said in a four-page open letter to Mongolia's president last week."

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Mongolia's proposed law to affect mining

Mongolia's proposed law to affect mining: "The council's letter to Mongolian President Tsakhia Elbegdorj's office, obtained by the Financial Times, warns: "The impact of the draft law on the minerals industry will be to halt current minerals exploration and development in Mongolia and greatly discourage any future investment. ... Collateral damage is likely to include all other sectors of supply, including but not limited to the construction and real estate sectors, imposing a significant chain-reaction burden on the banking and financial institutions which they may not be able to withstand and leading to a deepening crisis.""

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Foreign Investment to Mongolia: Restrictionsand Comparisons with Canada | Ubpost News

Foreign Investment to Mongolia: Restrictionsand Comparisons with Canada | Ubpost News: "There has been a flurry of writing on foreign investment in Mongolia in English-language media recently, from newspaper accounts to more scholarly arguments from think tanks and the like. To my mind, many of these writings have taken the perspective of a foreign investor, rather than the perspective of Mongolian policy-makers or any Mongolian, really."

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Mongolia Minerals Law Threatens Coal Project, Group Says

Mongolia Minerals Law Threatens Coal Project, Group Says: "Proposed changes to Mongolia’s mining laws threaten the viability of the nation’s biggest coal project at Tavan Tolgoi and will further deter foreign investment, the Business Council of Mongolia said.
The legislation, which will give the state the right to a free stake in many mineral projects, will take the country away from the free-market principles practiced there since the early 1990s, Mongolia’s largest business group said in a four-page letter sent to President Tsakhia Elbegdorj’s office on Jan. 7.
The letter, made public by e-mail yesterday, came after the draft laws were published last month. Enlarge image  A worker stands by the arm of a digger in a coal mine in Mongolia. Mineral product exports account for more than 90 percent of the country’s exports. Photographer: Doug Kanter/Bloomberg Overseas investment in Mongolia, which relies on minerals for more than 90 percent of its exports, has cooled since a law last year restricted state owned companies from controlling strategic assets. "

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In Mongolia, this year’s land acquisitions position church for growth - Adventist News Network

In Mongolia, this year’s land acquisitions position church for growth - Adventist News Network: "The Seventh-day Adventist Church’s Mongolia Mission Field acquired five new properties this year, positioning the still fledgling church in the region to expand its community services and church infrastructure.

Only established in Mongolia’s modern era since the early 1990s, the denomination in Mongolia has 24 congregations and close to 2,000 members. Thanks to international support, recent capital investments in land, church buildings, and plans for community centers, the church is poised for more significant outreach and, church officials hope, membership growth."

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Is Mongolia's Resource Boom on the Brink of Collapse?

Is Mongolia's Resource Boom on the Brink of Collapse?: "Mongolia was the world’s fastest growing economy last year, driven by foreign investment and rapid developments in its rich coal, copper and gold mining sectors. Now it looks like all of that development could fall apart and the nation’s economy could collapse, all due to an ill thought out law."

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Boom in Mongolia Deflates After Deal That Started It Is Threatened - NYTimes.com

Boom in Mongolia Deflates After Deal That Started It Is Threatened - NYTimes.com: "ULAN BATOR, Mongolia — The concept of a “blue sky country” has become almost a cliché in presentations about Mongolia, the world’s fastest-growing economy last year. The phrase, which evokes the Montana-like landscape of the steppe, paints a picture of sunny investment horizons in this frontier democracy rich in coal, copper and gold.

But visitors to this city, the capital of Mongolia, seldom find a blue sky today. It is smoggy, and soot rains down from the hills, as the poorest residents burn cheap brown coal to stay alive through the winter."

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Mongolia: Mobile Telephony Rings the Changes | Ubpost News

Mongolia: Mobile Telephony Rings the Changes | Ubpost News: "The mobile telephony market in Mongolia is fast maturing, with expanding 2G and 3G coverage set to drive up connections and penetration surpassing 100% by the end of the year.
Industry growth has been boosted by fierce competition among the four players in the marketplace, Mobicom Corporation, Unitel Group, Skytel and G-Mobile, who are vying for just 2.8m possible subscribers.
However, progress has yet to make a significant contribution to private sector growth or translate into major investment, despite the expectation of an approaching data boom."

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Dragon on the steppes: how Mongolia got it wrong on China

Dragon on the steppes: how Mongolia got it wrong on China: "Mongolia relies on foreign investment to support development of its extensive deposits of coal, copper and other resources. Canadian companies, including Turquoise Hill Resources (formerly known as Ivanhoe) and Centerra Gold, have been leading investors in Mongolia.
But while Mongolia is highly reliant on China as an export market (over 90 per cent of Mongolia’s mineral exports, the nation’s primary export, go to China), it has been reluctant to allow Chinese ownership of mineral resources. Its efforts to block Chinese ownership of resources have affected all foreign investors, raised uncertainty and may have led to an overall decline in foreign investment.
In practice, it is difficult, if not impossible, to set restrictions on certain investors without affecting all investment to some degree. Restrictions that target specific countries are generally not allowable under international trade rules. Forcing a foreign investment proposal to go through a review process creates delays and uncertainty for potential investors, reducing returns and limiting the number of investors willing to take risks in sectors requiring a review."

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Mongolian mine to affect water supply?

Mongolian mine to affect water supply?: "Oyu Tolgoi was 94 percent complete in July and is slated for commercial production in the first half of 2013. The Mongolian government holds a 34 percent stake in the project, expected to account for about 30 percent of Mongolia's annual economic output.
The mine, in the South Gobi desert region, holds an estimated 41 billion pounds of copper and 21 million ounces of gold, The New York Times reports.
The region covers an area of 135 square miles and is home to 3.8 million livestock, including camels, horses, cows, sheep and goats, which require some 31,600 cubic meters of water each day.
That compares with the water needs of an estimated 10,000 cubic meters per day for residents in the sparsely populated region.
Extracting copper from the mine, however, is a water-intensive process.
A World Bank assessment indicated that in 2010, Oyu Tolgoi used about 67,000 cubic meters of water a day and the government-owned Tavan Tolgoi coal mine consumed 76,000 cubic meters daily."

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Mongolia attracts twice its GDP for debut bond

Mongolia attracts twice its GDP for debut bond: "The landlocked country has a gross domestic product of just $8.5 billion, so orders were roughly twice the size of the economy. Getting a piece of a frontier credit like this, and one with exposure to China, was certainly part of the attraction. Mongolia is fast-growing — its growth rate in 2011 was about 17.5% — and resource rich.
Previously, the closest thing investors had to Mongolian sovereign paper was through state-owned Development Bank of Mongolia, which had priced a $580 million government-guaranteed bond earlier this year. With a dearth of sovereign paper in Asia, Mongolia’s bond offered a chance to diversify. “There is little sovereign paper in Asia — aside from the Philippines and Indonesia, and some issuance from Sri Lanka, Pakistan and Vietnam,” said Arthur Lau, head of fixed income for Asia ex-Japan at Pinebridge Investments."

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Mongolian Government Releases USD 1.5 billion in Bonds | Ubpost News

Mongolian Government Releases USD 1.5 billion in Bonds | Ubpost News: "The Wall Street Journal – Mongolia, a country that has been rescued five times in 22 years by the International Monetary Fund, sold $1.5 billion in debt Wednesday in its first government bond offering.
The sale, equal to nearly one-fifth of the size of Mongolia’s economy, is akin to the U.S. government borrowing $2.5 trillion in one bite.
“This is a big-bang entry into global capital markets,” said Jan Dehn, co-head of research for Ashmore Investment in London, which manages $68 billion and had planned to buy the bond.
Mongolian officials, who have been visiting investors this week to drum up demand, sold more than 80% of the two-part deal. A $500 million, five-year bond sold at its launch price of 4.125% yield. A $1 billion, 10-year bond sold at 5.125%, according to people familiar with the deal."

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Mongolia still open to foreign investors

Mongolia still open to foreign investors: "After that announcement, Ulan Bator threatened to withdraw SouthGobi's operating licences. The government told SouthGobi its licences were in good standing only a few days after Chalco withdrew its bid in September, but the few months of uncertainty caused a loss in sales for SouthGobi.
Enkhbayar played down concerns that some politicians want to reopen an investment agreement with Rio Tinto, which has 66 per cent control over the Oyu Tolgoi copper and gold mining project, among the world's five largest.
"The government will not change or terminate the basic contract … but there are some issues that are unclear," he said."

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