CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at firstname.lastname@example.org or +976-99996779.
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ASX halted trading at 2:48pm (11:48 UB Time) due to a glitch.
Close: Mongolia Related ASX Listed Companies, February 28, 2010
Haranga Exploration Update: Maiden Drilling, Selenge Magnetic Survey
February 28 (Haranga) Haranga Resources Ltd. (ASX:HAR) ---
· Maiden drill program has commenced at the Shavdal iron ore project in Mongolia
· Excellent magnetic survey results from the Company’s flagship Selenge iron ore project
Newly Released JORC Compliant Resource Estimate Quadruples Resource Inventory for Sharyn Gol Operations
Outstanding Result Now Sets the Scene for Further Development of the Mine Which Will Enhance the Company's Competitiveness in Both the Domestic and International Coal Markets
ULAANBAATAR, MONGOLIA--(Marketwire - February 27, 2011) - The directors of Sharyn Gol JSC (MSE: SHG MO) are pleased to announce the final results of the 2010 JORC Resource Estimate undertaken by independent geological consultants for the Sharyn Gol Mining Project.
· JORC Compliant Coal Resource totaling 374 Mt reported.
· 190.5 Mt Measured, 84.4 Mt Indicated and 98.9 Mt Inferred JORC Categories.
· 337.6 Mt reported above 300 meters from surface signifies the continuation of open cut mining for decades to come.
· JORC resource estimate calculated from a significantly larger Non-JORC Coal Inventory.
· Adjacent exploration targets identified demonstrating potential for further large increases to the existing coal resource base.
· New Open cut area containing 220.3 Mt down to 300 meters identified adjacent to existing open pit.
· All resources reported are entirely contained within the company's 100% held mining lease.
· Coal Quality and Washability test work indicating strong potential to produce a high yield, low ash, moderate to low sulfur, and high calorific value thermal coal product suitable to export to international markets.
· Company has now engaged an independent international mining Consultancy group to undertake a study into the near term upgrade and expansion of the operations.
JORC Resource Program Details
Between May and November 2010 the company engaged the professional management services of Triton Coal Pte. Ltd. to assist in the design and implementation of a 17,000 meter drilling program over the Sharyn Gol mining lease under the guidance of international resource consultancy firm Micromine.
The drilling program focusing on two areas within the mining lease named the "South West Area" and the "Satellite Area" was completed in late October 2010. 3-Dimensional wireframe modeling was undertaken following detailed seam correlation work and coal quality analysis.
JORC compliant coal resources for UNWASHED RAW COAL on an "Air Dry" basis for the two areas have been reported as totaling 373.8 Mt, Relative Density 1.54-1.71 g/cc, Ash 22.97-38.69%, Calorific Value 4,128-5,083 Kcal/kg, Internal Moisture 2.21-2.9%, Volatile Matter 26.66-33.30%, Sulfur 0.89-3.12% (average < 1%) content, Fixed Carbon 31.81-41.52%.
JORC compliant coal resources for UNWASHED RAW COAL on an "As Received" basis for the two areas have been reported as totaling 371.9 Mt, Relative Density 1.46-1.66 g/cc, Ash 20.99-37.68%, Calorific Value 3,783-4,524 Kcal/kg, Total Moisture 9.64-14.67%, Volatile Matter 24.59-29.8%, Sulfur 0.8-2.79% (average < 1%) content, Fixed Carbon 29.0-37.12%.
The Sharyn Gol Coal Resources have been classified and reported in accordance with the 2004 Australasian Joint Ore Reserves Committee (JORC) Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code).
Further Significant Exploration Upside Identified Capable of Substantially Adding Additional Coal to Current Resources
Also to note
· All Coal inventories identified above the Base Line of Weathering have not been included in this resource estimate.
· The JORC resource estimate has been calculated from a larger non-JORC coal inventory of 437 Mt.
· Remaining coal reserves and resources in the open cut have been excluded from the estimate.
· A corridor containing significant coal inventory has also been excluded from the estimate.
· Target areas for additional resources have been identified: within the existing open cut, within the corridor, within the still open southern and northern extensions of the Satellite Area.
Coal Quality Test Work Demonstrates Potential to Derive a Competitive High Quality, Low Ash, and Low Sulfur Product for Export Markets
Coal Quality and Washability test work on 51 composite samples in the South West Area and 61 composite samples in the Satellite Area at a density of 1.6 has demonstrated good yields for a high quality thermal coal fraction.
Laboratory test work undertaken to date has demonstrated a 66-70% yield to produce an 11-14% ash thermal coal product with low-moderate sulfur levels and an estimated calorific value of 6,025 to 6,076 Kcal/kg.
In the South West Area the average yield for a 12% ash product with an estimated calorific value of 6,200 Kcal/kg was reported at 86%. In the Satellite Area the average yield for an 8.6% ash product with an estimated calorific value of 6,200 Kcal/kg is almost 90%.
These very encouraging results indicate the operations strong potential through establishing simple washing process, to produce a premium high quality, low ash, and low-moderate sulfur coal product suitable for export to international markets.
Sharyn Gol Mine Location
Sharyn Gol JSC owns 100% of the Sharyn Gol mining lease and is owner operator to its operations located 215 km north of the Mongolian capital city of Ulaanbaatar.
The operations are strategically located on a 65 km long dedicated rail spur, which was built specifically to service the mining operation. The rail spur, considered by the company as a competitive advantage over its peers in Mongolia provides direct access to the Trans-Mongolian Railroad, which is connected, to China and Russia.
The company currently mines approximately 50,000 tons of coal per month, which is largely sold into the domestic regional market.
The company has now engaged a reputable international mining engineering consultancy to look into the expansion and redevelopment of the existing operation to allow both a substantial increase in production and quality control.
Mr. B. Batmunkh, Chairman of Sharyn Gol JSC commenting on the results of the JORC program said, "This is an outstanding outcome for Sharyn Gol and long a waited since the company's privatization in 2003. The much larger than expected resource estimate reflects the diligence and professionalism of Triton Coal management team and our thanks go out to them. We would also like to thank Firebird Mongolia Fund, Ltd., Firebird Global Master Fund, Ltd., and Firebird Global Master Fund II, Ltd., our largest shareholders and the financial sponsors of the JORC drilling program, we could not have completed the project without their financial support and the day-to-day guidance and expertise we received from both James Passin and Anthony Milewski.
The results provide Sharyn Gol with a firm, solid, internationally recognized resource base from which we can now look to upgrade and expand our operations and for the first time, with confidence, work towards establishing quality coal products which will be able to competitively compete in the international coal sales arena."
STOCK EXCHANGE WEEKLY REVIEW
February 27, Ulaanbaatar, Mongolia, /MONTSAME/ Five stock trades were held at Mongolia's Stock Exchange on February 21-25. In overall, 3.9 million shares were sold of 58 joint-stock companies totaling MNT 2.6 billion.
Index TOP-20 was 32954.97 points increasing 3571.84 units or 12.2% against the week earlier. The total market capitalization was set at MNT three trillion and 547.7 billion increasing MNT 571.4 billion or 19.2%.
Shares of "Tav" /100.9%/, "Mongol savkhi" /100.8%/, and "Almaas" /100.6%/ increased, but shares of "Sor" /21.4%/, "Zoos goyol" /14.4%/, and "Moninjbar" /13.3%/ decreased.
38 stocks closed higher, 15 shares declined and five shares remained unchanged. Shares of "Mongol em impex" /1.6 million/, "Hai Bi Oil" /1.1 million units/ and "Genco tour bureau" /287.4 thousand units/ were the most actively traded in terms of trading volume and in terms of trading value--"Sharyn gol" (MNT 416.3 million), "Tavan tolgoi" (MNT 380.9 million), and "Mongol em impex" (374.1 million).
Xinjiang to import coking coal from Mongolia
February 27 (Steelguru) Far western province Xinjiang is seeking to boost coking coal imports from Mongolia to meet demand from its rapidly expanding steel sector. The region plans to raise crude steel capacity from roughly 7 million tonnes per year now to more than 22 million tonnes per year by 2015 however local deposit of coking coal resources is scarce, compared with huge steam coal reserves estimated at more than 2 trillion tonnes.
In Qinhe county of Xinjiang, local authorities are pushing forward the construction of a 1 million tonnes per year coking project with necessary washing facilities by 2015. The project is located at border crossing Takeshiken which will be a major outlet of Mongolian products after a series of infrastructure upgrading complete in the next few years. This includes the construction of railway and road projects that funnel coal and ore products into factories in Xinjiang, such as Bayi Steel a unit under Baosteel.
The border crossing Takeshiken was fully opened on January 13, before which it was closed between December and April. Statistics show Xinjiang produced 45 million tonnes of coal in 2008 of which 3.9 million tonnes was coking coal with hard coking coal only accounting for 0.67million tonnes.
(Sourced from China Coal Times)
Mongolian and International Coal Giant Gathers in UB
February 25 (UB Post) A big international conference and exhibition entitled “The Coal Mongolia 2011” opens at Chinggis Khaan Hotel in Ulaanbaatar on February 24.
More than four hundred foreign and domestic delegates are attending the event comprising of two key conferences entitled “Mongolian Coal Sector Policy and planning of coal industry of Mongolia” and “Mongolia – The New Player of the World’s Energy Sector”.
Other sessions’ topics include coal market & foreign trade, coal extracting technology, equipment and safety, coal investment projects and production, coal transportation and infrastructure, the government hour, and technology, reclamation and supply chain.
Minerals and Energy Minister of Mongolia D. Zorigt opened the event with his speech, followed by remarks by Prime Minister Batbold and Minerals Authority Director Batkhuyag.
The objective of the event is to put Mongolian coal on the international market, to expand channels of coal sales; to open up corridors of coal transport internationally; to attract investment onto coal exploration and extraction projects; to develop supply network of the coal sector; and to publicize Coal sector policy and planning of Mongolia to the investors.
Mongolia: the next EM superstar?
February 25 (FT) Forget China. The fastest growing country over the next 20 years will be its diminutive central Asian neighbour Mongolia, according to a report released by Citigroup this week.
The report, written by economists Willem Buiter and Ebrahim Bahbari, predicts that the Mongolian economy will expand 8.7 per cent annually (in purchasing power parity terms) between now and 2030. A low base, favourable demographics and a high savings and investment rate are expected to be the biggest contributors to its explosive growth.
The country’s growth potential has already been recognised by some investors: strong demand for Mongolian equities made them the in the world in 2010.
The report calculates countries’ growth potential using a novel “Global Growth Generators” (3G) index. This is a weighted average of six growth drivers selected by Citigroup: domestic savings/investment, demographics, health, institutions and policy, and trade openness.
The 3G index yields some surprising results. Among the highest ranked countries are Bangladesh, Egypt, Iraq, Nigeria, the Philippines and Sri Lanka.
None of these countries, however, is expected to grow as fast as Mongolia over the next 20 years. The next fastest, India, is predicted to expand 7.7 per cent annually – a full percentage point lower than Mongolia.
What explains Mongolia’s world-beating growth prospects? Three factors are especially important. The first is a low base. Mongolia’s 2010 level of real per capita income (in PPP terms) is $3,674, putting it in 51st place globally, below countries such as the Republic of Congo, Fiji and Honduras.
Favourable demographics will also give it a boost. Mongolia’s population is “small, young and growing” in Citigroup’s words, and expected to increase from 2.7m in 2010 to 3.5m over the next 40 years. Its working age population will grow by 18.7 per cent over the same period.
Finally, the Mongolian economy will benefit from a domestic investment boom. From 2006 to 2009, its investment rate was 38.5 per cent and its saving rate 39.1 per cent – among the highest in the world. As long as these rates stay relatively stable, Mongolia’s labour productivity should increase rapidly – just like that of its frugal neighbour China over the past 30 years.
While Mongolia performs weakly on the policy and institutions component of the 3G index, it has so far succeeded in avoiding the “natural resource curse” that has blighted so many low-income commodity exporters. Copper, coal, tin, tungsten and gold account for a large proportion of the Mongolia’s industrial production.
As Citigroup says:
Mongolia’s economy is overwhelmingly based on resource extraction. It is therefore a prime candidate for the natural resource curse. Unlike most of the other central Asian countries, however, Mongolia has thus far avoided the lure of personalised autocracy or strong-man rule, and the bureaucracy, although weak, is some distance from the klepocratic end of the ‘kleptocratic-technocratic’ continuum.
Investors can be reasonably confident, then, that their money is safe in Mongolia. And if strong growth translates into higher investment returns – as it did last year – Mongolia may be about to become a lot more popular.
Banks return to health
February 24 (news.mn) The Mongol Bank feels the banking sector has turned the corner. Vice President B. Javkhlan told a press conference today that at 6.7%, bad loans stood at their lowest since before the economic crisis. The total capital of commercial banks now amounts to MNT640 billion, substantially higher than the MNT450 billion before the crisis hit. It had subsequently fallen to MNT170 billion.
Banks have posted a healthy profit of between 11% and 12%. During the days of the crisis, most banks were in the red, he said.
GTSO Pursues Rare Earth Transport Agreement with Russian Railways
February 24, SAN JOSE, Calif.--(EON: Enhanced Online News)--Green Technology Solutions, Inc. (OTCBB: GTSO) announced today that the company has approached freight services provider Russian Railways regarding the transport of rare earth ore from Mongolia to the international seaport of Vladivostok, Russia.
GTSO and Rare Earth Exporters of Mongolia announced the formation of a joint venture earlier this month to procure rare-earth mining claims and operations in Mongolia. The joint venture plans to convey Mongolian mining products overland to railway for transport to Vladivostok in order to avoid shipping through China. Destination ports for these mining products are set to include the U.S., Japan and South Korea.
Russian Railways is a major freight provider on the Eurasian continent, offering international freight services for ore and many other types of commodities. The company provides rail service traversing Mongolia from south to north, including passage through the nation’s capital, Ulan Bator, where the joint venture’s new transport office is located.
“Russian Railways is the ideal company to help us transport rare earths from mines in Mongolia to port in Russia,” said GTSO President and CEO John Shearer. “They have the necessary expertise and infrastructure to transport 20 tons of ore per day by rail, which is our goal. We hope to reach an agreement with them soon.”
GTSO Readies Rare Earth Transport Office in Mongolia – EON, February 25
Mongolian President Meets Chinese FM on Ties (, establishing consulate in HK)
February 25 (Xinhua) President Elbegdorj Tsakhia met in Ulan Bator Thursday with visiting Chinese Foreign Minister Yang Jiechi on promotion of relations between their two neighboring countries.
After the meeting, the two ministers attended a signing ceremony for three agreements involving fire prevention in border regions and the exchange of a note about Mongolia's establishment of a general consulate in Hong Kong.
Yang arrived in Mongolia on Thursday for a two-day visit.
Mongolia and Turkmenistan send delegates to study Azerbaijani insurance pension model
February 28 (ABC.AZ) Baku, Fineko/abc.az. The World Bank has recommended Azerbaijan-developed pension insurance model for the transition countries.
The State Social Protection Fund (SSPF) of Azerbaijan informs that this recommendation suggests study and application of the Azerbaijani model for on Bank’s similar projects in transition countries. In this regard, Mongolia and Turkmenistan have already made an official request to the SSPF into the possibility of studying the Azerbaijani model.
The Social Insurance Fund of Mongolia has already expressed a desire to send its employees to Azerbaijan. Turkmenistan is also ready to send a delegation to explore possibilities of cooperation in the area of pension insurance reform.
The SSPF also notes that delegations from Afghanistan have visited the country repeatedly with the same purpose.
Kuwait to build children’s hospital
February 25 (news.mn) Prime Minister S.Batbold today told a meeting of senior health officials that Kuwait will help build a children’s hospital in Ulaanbaatar at a cost of USD35 million, according to an agreement reached during his recent visit to that country. Emphasizing the need and right of every Mongolian citizen to be healthy, educated, employed and housed, Batbold noted that the Government will provide all support to reach this goal.
World Bank grant for new software at tax office
February 28 (news.mn) Crown Agents of Great Britain, Daewoo International Corp and Daewoo Systems of South Korea will install the Trips software, the latest technological software, at the National Taxation Office under a World Bank grant of USD2.3 million. This will make operations at the tax office transparent and also reduce volume and expense of work. It will also link central organizations with their local branches.
The project would be implemented within 16 months.
Spy chief lodges extradition appeal
February 27 (UKPA) A Mongolian spy chief has lodged an appeal after a judge in London ruled he could be sent to Germany to face charges of kidnap and false imprisonment.
His solicitor, Duncan MacDonald, of JD Spicer & Co, said: "We can confirm that we lodged an appeal on behalf of Mr Khurts this week."
Full papers are expected to be submitted to the High Court next week.
Mr Damiran was taken from France to Berlin, drugged and then flown to Mongolia.
He was wanted for questioning in connection with the murder of Mongolian Infrastructure Minister Zorig Sanjasuuren.
Mongolian spy chief appeals British extradition ruling – AFP, February 26
Trading glitch stalls ASX
February 28 (BusinessDay.com.au) Update. Australia's sharemarket halted trading more than an hour early today because of a technical glitch involving its new trading system.
The market effectively froze at about 2.48pm, east coast summer time, when confirmation of some trades failed to be sent as normal, prompting authorities to close the entire market, said ASX spokesman Matthew Gibbs.
"We are working to rectify the problem," Mr Gibbs said. ''Normal clearance and settlements processes will now take place.''
The ASX had considered extending trading to make up for lost time but has since dropped the plan while technicians work to fix the problem. Mr Gibbs declined to say whether trading would be able to resume as normal at 10am tomorrow.
''Before 10am, we'll know whether trading will resume,'' he said.
<Mogi & Friends Fund A/C>
Mogi & Friends Fund is a tiny fund of A$20.8K I created in late September with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.
Trading will resume tomorrow in a reverse takeover stock the Fund took part in. Again, 117% is calculated based on the $10K investment being at face value as we’ll only find out tomorrow the market value of the stock.
· I personally and through my “Mogi & Friends Fund” hold 75,000 HAR shares in aggregate.
· Jason Peterson, CPS Securities Director, holds shares (approx. 6,500,000) and options (1,000,000) in HAR.
· CPS holds 500,000 options in HAR for corporate advice provided to HAR – Jason Peterson is a 33% shareholder in CPS.
· CPS and CPSI directors and employees hold shares in HAR and may buy and sell these shares as and when they see fit.
· CPS has received an IPO management fee of $250,000 and a 5% fee for any funds placed to its clients under the prospectus.
· HAR has paid for Jason Peterson’s travel and accommodation expenses to and in Mongolia – this must be disclosed as a soft dollar commission.
· Please refer to the prospectus for further disclosures.
"Mogi" Munkhdul Badral
CPS International LLC
P Please consider the environment before printing a copy of this email.
Suite 906 · Central Tower · 2 Sukhbaatar Square
Sukhbaatar District 8 · Ulaanbaatar 14200 · Mongolia