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Tuesday, May 8, 2012

[CPSI NewsWire: BCM Delivers Briefing on Draft Foreign Investment Law]

CPSI NewsWire brings you market updates on Mongolia, compiled by CPS International, a Mongolian marketing arm of CPS Securities, a Perth, WA based stockbroking and corporate advisory firm, specialising in capital raising for mining and junior stocks.

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BCM: Briefing Paper Foreign Investment Law

May 8 -- BCM has forwarded the below Brief (links below) to the Parliamentary working group on the "Foreign Investment (FI) draft law". 

We would encourage particularly our Mongolian BCM members to link to your best Parliament and Government contacts on this best vitally important matter. 

The Briefs prepared by BCM's Legislative working group are most helpful in describing the importance of sensible of FI oversight. They highlight the unfortunate results of a dangerous precedent resulting from flawed FI oversight. 

BCM believes Mongolia deserves legislation well-drafted to fit its particular needs. That will preserve security and stability and ensure the prospects for long-term growth, jobs and prosperity. 

1. Briefing Paper Foreign Investment Law 7th May 2012 Final
2. Briefing Paper Foreign Investment Law 7th May 2012 Final Mon

Link to BCM

 

Draig Resources intercepts 86 metre thick hard coal seam in Mongolia

May 8 (Proactive Investors) Draig Resources’ (ASX: DRG) latest drilling on the company’s Teeg licence in Mongolia has returned the thickest coal seam intercepts to date, with apparent thickness of 86.28 metres in one hole.

Phase 1 drilling at Teeg, which is located in the Ovorhangay province, has now been completed.

The 86.28 metre seam was intercepted from a depth of 27 metres. Other thick seams intercepted during the program included one of 66.75 metres and 30 metre thick intercepts in a twin angled core hole.

Samples and cores from the program are at the ALS laboratory in Ulaanbaatar for quality testing, with further tests to be undertaken in Queensland.

Draig has commenced the assimilation of drilling data and plans to begin resource modelling to define a JORC Resource for Teeg.

Planning for the Phase 2 drilling program is underway, with further drilling required to connect the due diligence coal intersection achieved in mid-2011 with the northern extent of the current strike.

If successful, this work could extend the strike length of mineralisation at Teeg to more than 6.5 kilometres.

Phase 2 drilling will also include exploration on the neighbouring Nariin Teeg licence, where geophysics have identified a number of potential coal bearing targets, and at the four South Gobi licences.

Mongolian Office

In a move to strengthen its position in Mongolia, Draig has completed the establishment of an office in the country, and appointed a Mongolia-based general manager.

Terrence Thompson has 25 years of experience in the startup, administration and expansion of domestic and international businesses, including the project management of construction and mining projects.

Link to article

Link to DRG release

 

Aspire: Investor Presentation – RIU Sydney Resources Roundup, May 2012

May 8, Aspire Mining Limited (ASX:AKM) --

Link to presentation

 

Solartech Shareholders Approve Placement Raising HK$61.6m

May 7, Solartech International Holdings Limited (HK:1166) --

Link to release

 

CAML: Annual Report 2011

May 8, Central Asia Metals (CAML:LN) --

Chairman and Chief Executive’s Statement

Dear Shareholders,

The primary focus for the Company during 2011 was the construction of a 10,000 tonne per year Solvent Extraction -Electro Winning (SX-EW) copper cathode plant at Kounrad in Kazakhstan. By 31 December 2011, the plant had reached material completion and following mechanical commissioning in the first quarter of 2012 first copper production is expected imminently within the projected capital cost of $46.9 million.

Mongolia

During the summer of 2011, CAML conducted a targeted drilling programme at Alag Bayan. Three holes were drilled to a combined total depth of 2,419 metres but no economic mineralisation was located. Subsequently, a further target area was identified which is currently being drilled by Ibex Mongolia LLC (formerly Govi-Ex Mongolia LLC) with assay results expected in April 2012. Ibex have an earn-in agreement with the Company for the Alag Bayan licence.

During 2011, the Company took the strategic decision to sell the Handgait exploration project following on from a limited drilling programme on site. The Ereen gold project also remains for sale and the CAML Board has appointed Cutfield Freeman & Co to oversee the sale process for both assets

Link to report

 

Mogi: Hmmm, how did this slip through me, or, more importantly, the media

EBRD Approved $55m Debt/Equity Deal with Altain Khuder

January 31, 2012 (Minutes from EBRD Board Meeting, January 31)

7.    Mongolia: Project Bronze

·         The Board approved a term loan of up to USD 30 million (EUR 23 million equivalent) to Altain Khuder LLC to develop the Tayan Nuur iron mine. The Board also approved an equity investment of up to USD 15 million (Tranche 1) for the purchase of a minority stake in the company’s yet to be listed parent holding company, and a USD 10 million (Tranche 2) additional facility to avoid potential future dilution of the Bank’s stake. 

Link to EBRD release

 

MSE Daily Trading Update: ETR UP 15% ON ITS FIRST SECONDARY MARKET TRADING DAY

7 May 2012 (BDSec) – E-Trans Logistics (ETR), the first infrastructure company listed on the Mongolian Stock Exchange (MSE), soared Monday on its first day of secondary market trading on the MSE, closing at MNT 138, up 15% from its initial offering price of MNT 120 a share.

Other noticeable winners today were Sudut (+13.04%), Sharyn Gol (+5.26%) and Mongol Nekhmel (+3.96%).

Today’s biggest decliners were Aduunchuluun (-9.78%), Olloo (6.59%), BDSec (-6.12%) and Zoos Goyol (-5.88%)

BDS index gained 0.25% to 4,567.8 while MSE Top 20 inched up 0.09% to finish at 20,513.1 on Monday. On the exchange 746,542 shares were traded with a value of MNT 189.6 mln (US$ 144K).

Link to article

 

MSE STOCK EXCHANGE WEEKLY REVIEW

Ulaanbaatar, Mongolia, May 7 /MONTSAME/  Five stock trades were held at Mongolia's Stock Exchange from April 23 to May 4. In overall, 437.1 thousand shares were sold of 44 joint-stock companies totaling MNT 426.0 million.

Index TOP-20 was 20493.96 points increasing 546.85 units or 2.7% against the week earlier. The total market capitalization was set at MNT one trillion 934.6 billion increasing MNT 37.5 billion or 1.9%.

Shares of "Darkhan teever" /15%/, "Aduunchuluun" /12.2%/, and "Chatsargana" /11.5%/ increased, but shares of "Khereglee impex" /20.1%/, "Gutal" /15.0%/, and "Mongol nekhmel" /13.8%/ decreased.

19 stocks closed higher, 15 shares declined and 10 shares remained unchanged.

Shares of "Remikon" /241.7 thousand units/, "Hai Bi Oil" /49.2 thousand units/ and "BDSec" /41.2 thousand units/ were the most actively traded in terms of trading volume and in terms of trading value--"BDSec" (MNT 151.0 million), "APU" (MNT 85.2 million), and "Remikon" (43.3 million).

Link to article

 

The dilemma of Mongolia on Chinese investment

May 7 (China Business Watch) Mongolia is not a hot word in Chinese economic news, but has a vital position for frontier investors. But now, it seems that Mongolia’s government wants to think more about Chinese investment.

According to Nisha Gopalan, author of “Mongolia wary of Chinese investment”, China has gained a lot benefits from the resource-rich country, especially the state-owned giant Aluminum Corp. of China Ltd. (NYSE:ACH, 2600.HK, 601600.SH, ), also known as Chalco. Chalco has made large investments in the country, taking 80% of production from Tavan Tolgoi, a giant coking-coal project that Mongolia plans to list in a$10 billion IPO in London, Hong Kong and Ulan Bator and spending more than$300 million for a stake in a trading firm that dominates the import of Mongolia coal into China.

But the recent investment for Chalco in Mongolia doesn’t go smooth. Its bid of almost $1 billion for a majority stake in SouthGobi Resources has been suspended by China-wary Mongolian officials. Nisha Gopalan explains that it is a political move ahead of the country’s June elections. Mongolia’s parliament is thinking about limiting the export of a strategic resource to a foreign state body.

However, Mongolia doesn’t have more choices in picking a trade partner. As a landlocked country, it faces difficulties in supplying its goods to the rest world across the Pacific Ocean. Its neighbor, Russia, boasts its own raw materials. And it looks little beneficial to export Mongolian commodities through vast Siberia to the sea. As its neighbor, China is the largest user of resource in the world and the best trade partner. Although benefiting a lot from foreign investment, mainly China, Mongolia still doesn’t want to give much more to its powerful neighbor.

Link to article

 

Case of Former President Transferred to Prosecutor’s Office

May 8 (Info-Mongolia.com) --

Link to article

 

Former Mongolia president detained for polls ploy - lawyer

May 7 (Reuters) - A lawyer for Mongolia's arrested former president, Nambar Enkhbayar, has accused the government of waging a politically motivated campaign against him in order to stop him contesting parliamentary elections in June.

Nambar Enkhbayar, arrested on April 13 as prosecutors began investigating charges of corruption, served as president from 2004 to 2009 and heads the Mongolian People's Revolutionary Party (MPRP), an important participant in next month's vote.

Foreign investors are waiting to see how the arrest will affect the elections, with legislators considering a series of contentious new mining policies as well as the fate of the $6-billion Tavan Tolgoi coal mine near the Chinese border.

Enkhbayar's MPRP was expected to erode the support of the ruling Mongolian People's Party (MPP) in the vote, and his lawyer, Oktober Basankhuu, said the detention - likely to last until after the June 28 poll - was designed to remove him and his party from the contest.

"The whole purpose of his detention is not to corroborate the investigation," said Basankhuu.

"It's clearly to imprison and isolate him. They decided the outcome long ago," Basankhuu said, referring to Enkhbayar's political enemies.

The investigation office of Mongolia's anti-corruption agency declined to comment.

Mongolia's tiny economy is set grow at record rates over the next decade as the government cashes in on big and mostly untapped deposits of coal, copper, gold and uranium.

But investors have expressed concern about the resilience of its democracy and the strength of its legal system.

Populism and "resource nationalism" ahead of the election have caused alarm, with parliamentarians calling for deals to be renegotiated and for "strategic resources" to be taken over by the state.

Last year, nationalists in parliament failed to persuade the government to renegotiate a landmark 2009 agreement that granted Canada's Ivanhoe Mines a 66 percent stake in the giant Oyu Tolgoi copper and gold mine.

Trying to placate growing unease about the way mines are being sold to foreign companies, Mongolia has also said it would review the licenses of Canadian coal miner SouthGobi Resources after its parent, Ivanhoe, said it would sell up to Chinese aluminium giant Chalco.

Opinion polls suggest that Enkhbayar's arrest has merely compounded the uncertainty ahead of the vote, said Luvsandendev Sumati, a pollster with the Sant Maral Foundation in Ulan Bator.

"More than half of the respondents are undecided. The arrest has just increased their numbers," he said.

Link to article

 

Ex-Mongolian President in Deteriorating Health Condition

May 7 (news.mn) The health condition of detained former Mongolian president Nambar Enkhbayar, who began a hunger strike at 7 a.m. Friday, On May 4, is quickly deteriorating, said doctors.

N.Enkhbayar detained in Tuv province and doctors decided to move him to the Detention center’s hospital Ulaanbaatar and Saturday evening took him the capital city.

Acoording to MPRP, main opposition party lead by N.Enkhbayar health condition still critic. But N.Enkhbayar refusing to take any medical assistance.

By as informed his chief doctor Tseden-Ish said that the decision on forced treatment of Enkhbayar was made earlier in the day. 

Enkhbayar, held on corruption charges, demanded the dismissal of the chief of the Mongolian Supreme Court and the chief state prosecutor and top officials of the Anti-Corruption Agency, who he considered were appointed illegally. 

In his handwritten letter smuggled by his lawyers from the jail, the former Mongolian president said that he was "arrested by an illegal order of the current oligarchy regime. 

"The oligarchs, who took power through fraudulent elections... illegally detained me in order to hide their election fraud and weaken my struggle against their activities and for a fair election, the demolition of the oligarchy regime and the establishment of an independent legal and judicial system in Mongolia," he said in the letter. 

On April 13, Enkhbayar was arrested on charges of being involved in an illegal privatization deal of a hotel and publishing house and of using TV equipment donated to a Mongolian Buddhist organization to form his own television station. 

Enkhbayar, being held in a Tuv province jail, faces an extension of his arrest for two more months until June 27, just one day before parliamentary elections.

Link to article

 

NGO-s to monitor the June 28 election

May 7 (news.mn) The network of NGO’s started parliamentary election monitor. The network, established in 2008, included- The Open Sociey Forum, The Globe International, The Center of Elector’s Education, The Development Center of Philantrophy, The Center of Human Rights and Development and The MIDAS.   

The network confirmed and signed a rule of transparency and independent monitor on Friday.

The network will monitor five process of election:

-The process of printing, safe, distribute and archive of election voting paper,

-The list of electors name,

-The media monitor

-The monitor of authomatic voting system, and

-Monitor of voting day.

Results should be introduced to the public and then submitted to the General Election Committee.

Link to article

 

USAID partners with GIZ To Reduce Greenhouse Emissions in Mongolia

May 7 (news.mn) Construction begins today on a thermo-technical retrofitting project that will reduce greenhouse gas emissions and help make Ulaanbaatar an environmentally-friendly city.   A collaborative project between U.S. Agency for International Development (USAID) and Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), three schools in Ulaanbaatar City have been selected for rehabilitation - School No. 63, No. 79-1 and No. 79-2.   

This project uses clean energy – through solar power and thermal insulation - to increase heat levels in the school buildings.  

In addition to introducing these technologies, local contractors, engineers, and architects will receive on-the-job training on the application of environmentally-friendly techniques; learning modules on clean energy will also be provided to teachers and students. 

Funding for this 13-month project totals $1,517,000 USD.  

Heat energy consumption and CO2 emissions are expected to be reduced by 50% after the thermo-technical retrofitting.

Link to article

 

Something Amiss in Land of Nomads

May 7 (WSJ Blog) Mongolia’s president likes to call his country the freest in its region, a proud achievement for a nation squeezed between Russia and China. But as the detention of a former president over corruption allegations drags on ahead of key elections, analysts are asking whether the case risks eroding Mongolia’s democratic system.

U.S. Vice President Joe Biden praised the nation’s democratic system on a visit there last August, saying its freedoms “captured the imagination of the world.”  George W. Bush said much the same in his 2005 visit.

But last week, a district court judge in Ulan Bator extended the detention of former president Enkhbayar Nambar for up to two months, meaning he can be held until the eve of parliamentary elections on June 28. Mr. Enkhbayar hopes to join the 76-seat State Great Khural, as the parliament is known, and possibly contest the presidential election in 2013.

A range of people inside and outside Mongolia, including Mr. Enkhbayar’s supporters, voice doubt the corruption allegations are the only reason he was detained and are suspicious that political influence played a part in the national corruption watchdog’s pursuit of him. Observers say the political comeback of a man who served as president between 2005 and 2009, and earlier as prime minister and speaker of the parliament, are likely major factors too.

Mongolia’s government has said virtually nothing about the case and hasn’t responded to numerous requests for comment.

A wide range of the political spectrum stands to lose with the re-emergence of Mr. Enkhbayar on the public stage, analysts say. A recent poll determined he is more popular than the president and the prime minister.

In recent years, Mr. Enkhbayar broke from the party  of the current prime minister, Sukhbaatar Batbold, and formed the Mongolian People’s Revolutionary Party. The name is a reprise of the one used historically by his previous party, which ruled Mongolia during the years the nation was a satellite of the Soviet Union.

Mr. Enkhbayar’s primary rival is the current president, Elbegdorj Tsakhia, who hails from the Democratic Party, defeated him in the 2009 presidential election and installed new management at the top of the agency that ordered the former president’s arrest.

That 2009 presidential vote swung to Mr. Elbegdorj in part because of public distrust that built up after demonstrations against the result of 2008 parliamentary elections ended with a handful of deaths during riots. The post-riot finger-pointing continues to sow discord today.

For the coming election, hopes were that 2008-type irregularities would be minimized with new elector identification cards and voting machines but that system isn’t likely to be ready. The Enkhbayar case comes amid a mining boom that is giving the Mongolian economy strong underpinnings but requires big decisions.

The corruption allegations date to Mr. Enkhbayar’s time in office, including misuse of donations to a Buddhist charity in 2000, use of government money to deliver eight volumes of books to South Korea over three years beginning in 2005, plus a murky hotel-purchase deal in 2007. According to a translation of the agency’s complaint, provided by Mr. Enkhbayar’s family, the corruption investigation was opened last October.

Mr. Enkhbayar denies the charges through his attorney. He hasn’t appeared in court or been formally charged.

The drama began at dawn on April 13 when Mr. Enkhbayar was forcibly removed from a home in Ulan Bator by a phalanx of riot police, who dragged him into a van wearing no shoes and with a bag over his head. (after minute 17 here) They dropped him in a prison in a province south of the capital.

A group of lawyers calls him a political prisoner and, like Mr. Enkhbayar’s family, worries he is being mistreated. The former president sent word last week he was beginning a hunger strike.

The arrest was ordered by the country’s six-year-old corruption watchdog, the Independent Agency Against Corruption. Late last year, the agency’s leadership was shaken up by President Elbegdorj.

Among those installed was Khurts Bat, as deputy director. Mr. Khurts has an unusual resume for such a post.

A year or so after Mr. Khurts arrived in London in 2010, the U.K. extradited him to Germany in connection with a European arrest warrant. European officials allege that in 2003 when Mr. Khurts was head of Mongolia’s National Security Council, he participated in the kidnapping, drugging, imprisonment and forcible repatriation to Mongolia of a dissident suspected in the 1998 murder of a former top government official. Mr. Khurts couldn’t be reached for comment.

Last September, Germany released Mr. Khurts shortly before a visit to Mongolia by German Chancellor Angela Merkel.

Corruption is a serious problem in Mongolia. The country has fallen sharply on Transparency International’s annual rankings, to 120 of 183 countries, in the years since the watchdog agency was created in 2006.

A political analyst, Alan Wachman of Tufts University, said it is too early to know the genuineness of the charges facing Mongolia’s former president, but he says Mongolia is looking more like some of its democratic neighbors for a worrying reason. “At this stage, all one can know with any certainty is that the arrest of the former president does fit an unhappy pattern for former presidents in Asian democracies,” he said by email, citing examples from South KoreaTaiwan and the Philippines.

Link to article

 

As One Hand Gives, the Other Takes Away

May 8 (Mongolian Economy) The central bank has increased its policy rate by 0.5 percent and increased it funding to commercial banks. Apparently the Bank of Mongolia consider these measures acceptable in Mongolia’s current state. Is there any guarantee that inflation will not rise again?

The Mongolian economy is expanding very fast. Some believe using interest rates to control inflation is inconvenient, and say the central bank should change its interest rate policy. Is this really the best method?

The Bank of Mongolia has been given the government a loan to pay for the MNT 21,000 monthly allowances from the Human Development Fund after it ran short on Funds. Was this legal? How does this affect the independence of the central bank?

What effect will elections have on interest rates?

1.    The only way for the Bank of Mongolia’s to tackle inflation seems to be with its policy interest rate. There is no other option left for the central bank. As a result of its policy, inflation can be maintained at a reasonable level.

However, the negatives could outweigh the positives because increased interest rates make loans more expensive. Investment resources will get more expensive too, which would disturb business and the of the market balance that makes credit possilbe.

They also put pressure on the market. The reasons for inflation must be carefully considered. According to economic theory, there are two criterium to consider. On the one side is demand and the other is supply. Supply shocks create inflation. Today’s monetary policy is eroding demand and closing wallets. It’s possible to tackle inflation by reducing assets with an interest rate policy. However, inflation can’t be solved by monetary policy alone.

2.    Wage rises and cash distributions are creating inflation. Also peole who are taking advantage of the sensitivity of the market are part of the problem.

For example, there is the price of meats. Every spring prices rise and push up inflation because it depends purely on supply. So employing a monetary policy for inflation that is created by conditions withihin the economy itself is useless. It won’t be effective. For that reason, the causes of inflation must be separated and quantified by their influences on supply and demand.

It is the responsibility of the government, not the central bank, to wipe out the causes of inflation. In addition to monetary policy, government regulation is another market influence.

The government must take responsibility for meat scarcity. The central bank and the government must reach a mutual agreement. Distributing cash leads to an underdeveloped industry that can’t produce anything. It is concerning that the government does not explain its supply policy, which would increase product provisions.

Thus, the central bank has decided to close demand, which is a preventive action against inflation and product scarcities. In the end, all of the reasons for a policy must be agreed upon. Introducing a policy that distibutes on one side and restricts on the other is innefective, as we’ve witnessed for the last four years.

3.    The winners of the election will lead the government and enforce its policies. Money plays a crucial role in a country like Mongolia, where the government operates only to fulfill the promises it made. When huge sums of money rush into the market, the results is a bubble because no real industry has been developed anywhere else.

To prohibit policy makers from acting on their own free will, the central bank holds onto the money. Its regulations allow it to give loans to government. If the goverment has the final word, then the central bank is left as the creditor.

However, the government must repay its loan within three months. It is uncertain if it can repay the loan it recently took out so soon. Even the next government might not be able to  manage. The prime minister and the president of the central bank have equal standings. The prime minister is not allowed to give orders to the central bank president. That’s illegal. If the president of the Bank of Mongolia was not chosen by Parliament and was regulated by a diffferent law, it would be even more independent.

Link to article

 

Mongolia: Boosting local construction

May 7 (Oxford Business Group via Business-Mongolia.com) A wave of new infrastructure and phased housing projects in Mongolia looks set to give the country’s construction sector a huge boost while also generating wide-ranging opportunities for foreign investors in the building industry.

Mongolia is rolling out an extensive programme of developments that includes the construction of roads, bridges and homes as it gears up for an anticipated natural resources boom that is expected to transform the economy and pave the way for widespread urbanisation.

The government is funding many of the projects through its mining sector and state budget but is also looking to attract investment from the private sector for developments that include the building of satellite cities to reduce population density, road networks and infrastructure for power.

While the huge volume of work spells good news for Mongolia’s builders, concern has been raised that the country’s construction sector will require an extensive overhaul before local firms can meet increased demand for infrastructure. Some observers have also suggested that efforts to tap foreign investment need to be stepped up if Mongolia is to attract companies with the necessary expertise.

At the beginning of April, Mongolia’s Cabinet identified a list of several “urgent” roads and bridges to be built. It also announced that 5572 km of roads and 900 km of highways connecting Ulaanbaatar with aimags (provinces) would be restored under the umbrella of the country’s MNT4.9trn ($3.75bn) “New Up Building” programme, which is spearheading much of the country’s mid-term development.

While MNT4.57trn ($3.5bn) will be drawn from the mining sector for the programme, MNT22.9bn ($17.5m) of funding is expected to come from foreign and domestic investment, according to officials.

The mission director of the Asian Development Bank (ADB), Robert Shoelhammer, meanwhile, announced at the end of March that the institution would play a key part in driving forward efforts to modernise the capital’s public transport system and develop the ger (yurt) areas where 60% of the city’s population live.

The capital city is expected to see much of the new development. The mayor of Ulaanbaatar, G. Munkhbayar, outlined 115 new construction and transport projects earmarked for the capital that are scheduled to be completed by 2030 at an estimated cost of $9.9bn. Approximately 42% of the population currently lives in the city and this number is expected to rise to 55% over the next 18 years.

One of the capital’s largest ongoing construction projects, the “Homes for 100,000 Households” programme, is set to enter its next phase following Prime Minister S. Batbold’s confirmation in March that the green light had been given for the building of a second wave of new apartments. The government has already increased the number of homes in the first order from 79,000 to 124,000, according to The Ulaanbaatar Post.

Batbold said that the second order of homes, which would be built around the city and in rural areas, were aimed primarily at households on small or medium-sized incomes, with almost half the number of apartments expected to be less than 55 sq metres in size. The programme is one of a number of key projects, alongside railways, roads and the Sainshand Industrial Complex, being funded by bonds issued by the Development Bank.

The president of the Mongolian Builder’s Association, M. Batbaatar, highlighted the positive impact the new wave of activity would have on the industry, telling OBG, “For the next 15 years, this programme will give us work.”

But while the construction sector looks set to play a vital role in Mongolia’s development, analysts believe the industry could be held back by challenges in key areas, such as capacity and regulatory constraints, shortages of materials and manpower, and transportation bottlenecks.

A report issued by the World Bank in February showed that construction activity in the country dropped 20.5% in a year-on-year comparison in the fourth quarter of 2011. It also pointed out that only 5% of licensed domestic road construction companies were found capable of large construction projects.

“The government would need to urgently address the following areas in order to expand road sector capacity successfully: company capabilities and capacity, business and government policy, funding and performance, labour force, and construction materials,” it said.

There are signs that Mongolia is opening up to foreign investment as opportunities become available, such as the announcement in February that the US-based firm FLSmidth had won a $112m contract with the local Mongolyn Alt Group to supply a greenfield cement plant some 330 km from Ulaanbaatar. Once built, the plant should have a 3000-tonnes-per-day supply capacity.

However, while the cost of cement and bricks has fallen in recent years, the cost of other, mostly imported, materials has fluctuated, prompting concern from industry players that domestic production of key supplies is insufficient. Although the government’s initiatives are expected to fuel considerable growth in construction, the call is growing for greater efforts to be made to attract more foreign investment and expertise that would bolster the sector’s prospects in the long term.

Link to article

 

---

"Mogi" Munkhdul Badral

Senior Client Manager / Executive Director

CPS International LLC

Telephone/Fax: +976-11-321326

Mobile: +976-99996779

Email: mogi@cpsinternational.mn

P Please consider the environment before printing a copy of this email.

 

Suite 1213 · Level 12 · 2 Sukhbaatar Square

Sukhbaatar District 8 · Ulaanbaatar 14200 · Mongolia

 

CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSLicense Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.

 

Disclosure/Disclaimer

CPS Securities, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions mentioned in correspondence from CPS International.

CPS International advise this email contains general information only and does not include advice. In preparing this communication, CPS International did not take into account the investment objectives, financial situation and particular needs of any person. As with any speculative mining company there are significant risks.

 

 

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