Mongolian Economy and Finance

news.mn reports about 25 minutes ago that during today's closed session of parliament, MPs voiced support for the President's decision to temporarily ban license issuance and transfer.

- 4,520 million MNT will be saved for the budget after this operation.

No agreement on the railway transportation policy is in sight. No decision can be taken on this very important part of the wider minerals policy as MPs continue to be stuck on both the direction of the new network and on the width of the track. Some MPs give their view.

PERTH (miningweekly.com) – ASX-listed Hunnu Coal has acquired a 90% interest in the Tsant Uul coal project, in Mongolia, as part of its strategy to become a major coal developer in the South Gobi province.

(Reuters journalists have produced a special multimedia package on frontier markets including stories, video reports, pictures, research and graphics. To see the full package click here ) * Mongolia resource bonanza at risk from geopolitics * Russia, China vie for dominance in landlocked nation

BEIJING, May 26 (Xinhua) -- China will strengthen cooperation with the Republic of Korea (ROK), Japan, Mongolia and Myanmar through Premier Wen Jiabao's four-nation tour from May 28 to June 3, a senior Chinese official said Wednesday.

BMI View: We hold to our forecast for the Mongolian economy to grow by 9.0% this year, on the back of strong capital inflows and relatively robust external demand. That said, we note that a crisis in the agricultural sector will remain a downside risk to our forecast. In addition, in line with our global macro strategy we believe that external (specifically Chinese) demand will cool in H210 and into next year, leading to a slowdown in growth, although we remain extremely bullish through the medium term.

TORONTO - Polo Resources Ltd. (TSX:POL) says it will sell its 50 per cent interest in a joint venture company, receiving about US$35 million plus royalties for its Mongolian coal and uranium assets.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 25, 2010) - Prophecy Resource Corp. (the "Company") (TSX VENTURE:PCY)(OTCBB:PCYRF)(FRANKFURT:1P2) reports it has signed an agreement securing the loading of and the capacity to transport 1.5 million tonnes of coal annually through Mongolia's Sukhbaatar Railroad Station (Trans-Mongolian Railway) with the option to increase capacity based on availability.

The Rudd government should take heed of Mongolia's failed attempt to impose a hefty windfall profits tax on mining companies, Ivanhoe Australia Ltd says.

Fourteen agricultural experts from Inner Mongolia selected by the Ministry of Agriculture recently left for Mongolia to participate in the two-year China—Mongolia "South-South Cooperation" Project, providing technological aid.

Micromine, a mining and exploration software solution provider, has been certified by the Mongolian Government as a company authorised to conduct feasibility standard studies in the country. This allows the company to complete any geology, resources, mining and other related sections of studies that are submitted to the government for permitting and commissioning of mineral projects in Mongolia.

The EBRD and the IFC have signed a joint mandate letter with Ivanhoe Mines to advance primary financing for the Oyu Tolgoi project in Mongolia. 

The National Security Council made its comment on Tavan Tolgoi Investment Agreement. Therefore, on Wednesday, the Cabinet Ministers’ Meeting will discuss the issue on Tavan Tolgoi and plans to present the draft agreement to the State Great Khural. As for Tavan Tolgoi project, there are over 10 bidders expressed their interests. Also, Mongol 999 Consortium, a consortium of the Mongolian companies, expressed its interest.

Last week, the State Great Khural adopted “Mongol Livestock” Program. The program has two phases in 2010 – 2021. MP Ts.Sedvaanchig has more.

The irregular Meeting of Cabinet Ministers was held last Friday and discussed the issue of establishing the Development Council of the Southern Gobi. The Council will be established based on the Government Resolution 57 of 2009, Article 4.1 of Investment Agreement, signed between the Government of Mongolia and IMMI, Ivanhoe Mines Limited, Rio Tinto International Holdings limited companies.

Desertification is serious issue in Mongolia and World Day to fight Desertification is approaching.

Parliament discussed on Friday revising the legal status of Ulaanbaatar, following the big rise in its population in recent years. Migration from rural areas has, according to M.Enkhbold who proposed the draft amendments, has increased the population of the capital city by 471,500. It is now one of the 477 cities in the world with more than one million people. It also has 50 percent of the total Mongolian population and 70 percent of the country’s urban population.

Entree Gold is set to begin first phase exploration of the Shivee West copper-gold-molybdenum prospect in southern Mongolia.

Summary China declared at a high-profile summit the establishment of Kashgar Special Economic Zone in Xinjiang Uighur Autonomous Region, introducing preferential investment and taxation policies favorable to local governments and players.

QualityStocks would like to highlight Manas Petroleum Corp. (OTCBB: MNAP). Manas Petroleum is an international oil and gas company with primary focus on exploration and development in south-eastern Europe, Central Asia and South America.

May 24, 2010 (The Age - ABIX via COMTEX) -- Opposition by the mining sector is growing to the Australian Government's proposed new 40% resources rent tax in response to the Henry taxation system review.

In the recent development around resource “war” on Mongolia’s uranium district, Canadian Khan Resources, which holds interests in main uranium properties in the eastern part of the country, announced on May 21 that CNNC Overseas Uranium Holding has failed to obtain an approval for its offer to acquire all of the common shares of Khan at C$0.96 in cash per share.

Moscow, May 24 (PTI) Mongolian President Tsakhia Elbegdorj today underlined the need to deepen economic cooperation with India, with which the Central Asian nation has "age-old Buddhist ties".

The 19th Annual Meeting of the Asia-Pacific Parliamentary Forum (APPF) will be held in Mongolia in January 2011.

May 24 - The EBRD is providing $25 million loan to APU, a private brewery operating in Mongolia, to support company's drive to expand production capacity and diversify its product range.

May 24, 2010 - 2:29PM   Hunnu Coal Ltd was placed in a trading halt on Monday, pending an announcement by the company.

“General Guideline to Register State Investment”, developed by the National Development and Innovation Committee, was approved by the resolution of the Government. Within the framework, the General Manager of the State Budget ordered to submit the report of investment, prioritized by their importance based on the project research and feasibility, to the National Development and Innovation Committee by February 5 every year.

Sensitive financial issues were discussed at a “secret” meeting on Monday attended by members of the Standing Committee on the Economy, and representatives of the International Monetary Fund, the MongolBank, and the National Statistics Office. They talked mainly about the budget deficit and the threat of inflation.

24 May 2010 Polo Resources Limited ("Polo" or the "Company")

Posted 07:53 AM ET [By B. Huder] Ulaanbaatar, May 23, 2010 (BBC Monitoring via COMTEX) -- Governor of Russia's Sverdlovsk Oblast Mr Aleksandr Misharin arrived Sunday [23 May] in Mongolia to pay a visit at invitation of N. Altanhuyag, the first deputy premier and head of the Mongolia-Russia Inter-Governmental Commission. The official visit of the governor will start on Monday.

HALIFAX, NOVA SCOTIA, May 21, 2010 (MARKETWIRE via COMTEX) -- Erdene Resource Development Corp. /quotes/comstock/11t!erd ( CA:ERD 0.41, +0.03, +6.49%) ("Erdene" or "Corporation"), a diversified minerals company with assets in Canada, the United States and Mongolia, commented on the results of its Annual General Meeting of Shareholders, held on May 20, 2010. The meeting and subsequent presentation is available on Erdene's website at www.erdene.com .

(Repeats to widen distribution) * EBRD, IFC consider financing Mongolian copper-gold mine * EBRD, IFC may provide up to $300 mln each

Any foreign visitor wishing to enter Mongolia must have a valid passport and visa.

Deputy Prime Minister and Chairman of the National Emergency Commission M.Enkhbold has revealed how the MNT 3.4 billion (approximately USD2.5 million) given by the Asian Development Bank (ADB) for dzud relief will be used.

CALGARY , May 20 /PRNewswire-FirstCall/ - Ivanhoe Energy Inc.'s (TSX: IE, NASDAQ: IVAN ) Board of Directors announced today that Carlos A. Cabrera and Alex Molyneux have been appointed to Ivanhoe Energy's Board of Directors.

TORONTO, ONTARIO, May 20, 2010 (MARKETWIRE via COMTEX) -- Garrison International Ltd. /quotes/comstock/11v!gau ( CA:GAU 0.06 , -0.02 , -20.00% ) ("Garrison") is pleased to announce that the Mongolian Government has formally approved the Social Impact Study of the Tovshiir Gold Project prepared and submitted by Garrison.

* Major mining groups interested in Oyu Tolgoi in Mongolia * Ivanhoe natural seller since it mainly exploration firm * Would respect wishes of partner Rio Tinto

Prime Minister S.Batbold instructed State Property Committee chief D.Sugar on Tuesday to include representatives of civil organizations, professional associations, academics and researchers on the board of directors of state owned organizations and companies.

Sensitive financial issues were discussed at a “secret” meeting on Monday attended by members of the Standing Committee on the Economy, and representatives of the International Monetary Fund, the MongolBank, and the National Statistics Office. They talked mainly about the budget deficit and the threat of inflation. 

2010-05-19 20:32:07     Xinhua      Web Editor: Han Yueling  Wang Gang, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee, on Wednesday pledged to enhance exchange and cooperation with the Mongolian Democratic Party (MDP).

May 19, 2010, 11:22 AM EDT (Updates with chairman’s comments from second paragraph.) By Jesse Riseborough May 19 (Bloomberg) -- Ivanhoe Mines Ltd., building a $4.6 billion copper and gold mine in Mongolia with Rio Tinto Group, said it may bring in another partner after receiving interest in the Oyu Tolgoi project.

LONDON -(Dow Jones)- The medium- to long-term outlook for copper is positive with a tight supply situation expected over the next decade, the head Rio Tinto's copper division said Monday.

(Update1) 2010-05-18 03:27:00.825 GMT     (Updates with CEO comment in fourth paragraph.) By John Duce     May 18 (Bloomberg) -- SouthGobi Resources Ltd., the coal miner backed by China’s sovereign wealth fund, halted plans to build a rail link between its pit in southern Mongolia and the Chinese border because of uncertainty over government policy.

The Cabinet Meeting was held last Wednesday to start building Industrial Complex area at Sainshand and intensify its activities.

The working group established by the Government to prepare a draft plan to set up a development bank has finished its work. The draft was presented to the Government earlier last week.

The Organizing Committee of Discover Mongolia is pleased to announce that the 8th annual International Mining Investors Forum shall take place in Ulaanbaatar, Mongolia, on September 8-10, 2010.

Fourteen agricultural experts from Inner Mongolia selected by the Ministry of Agriculture recently left for Mongolia to participate in the two-year China—Mongolia "South-South Cooperation" Project, providing technological aid.

Voyager Resources (ASX: VOR) has reported that Reverse Circulation (RC) drilling has commenced at its high grade Daltiin Ovor Gold Project in Mongolia.

May 17, 2010, 12:37 AM EDT By Masumi Suga and Ichiro Suzuki May 17 (Bloomberg) -- Itochu Corp., Japan’s fourth-largest trading company, invested in Winsway Coking Coal Holdings Ltd. to secure coal from Mongolia, stepping up competition with China and Russia for the steelmaking ingredient as prices jump.

English.news.cn    2010-05-17 16:18:18 ULAN BATOR, May 17 (Xinhua) -- Czech Prime Minister Jan Fischer will pay an official visit to Mongolia on Wednesday and Thursday, the government of Mongolia said Monday.

(Reuters) - Hong Kong's ambition to turn its stock exchange into a major destination for mining IPOs may be a slow burn given its existing ban on pure exploration companies and the bourse's fuzzy record on disclosure.

According to Media Office of the Government on May 12,2010 regular Cabinet meeting today discussed and made following decision.

Peerzada Ashiq , Hindustan Times Email Author Srinagar, May 12, 2010 First Published: 21:09 IST(12/5/2010) Last Updated: 21:12 IST(12/5/2010) Mongolia has expressed interest in collaborating with Jammu and Kashmir in the in the fields of tourism, education and culture.

President Elbegdorj’s visit to the US in mid-May has been postponed because of scheduling difficulties at the White House.

China has initiated feasibility studies for a free trade agreement (FTA) with Mongolia to further strengthen bilateral trade ties between the two nations, a top official from the Ministry of Commerce said on Tuesday.

He Yong (R), Deputy Secretary of the Communist Party of China (CPC)'s Central Commission for Discipline Inspection, shakes hands with Mongolian People's Revolutionary Party General Control Committee Chairman L. Dondog during their meeting in Beijing, capital of China, May 10, 2010. (Xinhua/Li Tao)

Critical decisions are under consideration for rail transportation to strategic deposits It has become necessary to develop a new railway for transporting mining products, extracted from strategic minerals deposits in Mongolia, to refineries.

VANCOUVER, BRITISH COLUMBIA, May 06, 2010 (MARKETWIRE via COMTEX) -- East Asia Minerals Corporation /quotes/comstock/11v!e:eas ( CA:EAS 7.55 , -0.29 , -3.70% ) is pleased to announce the appointment of Mr. Edward C. Rochette to the Company's Board of Directors. Mr. Rochette is a lawyer, and an internationally known negotiator and transaction specialist with 30 years of experience in the acquisition of mining rights, international business, land management and natural resource transactions. The Board of Directors and Management Team welcome Mr. Rochette to the Board of East Asia Minerals as it moves into its next stage of growth. Mr. Rochette's extensive and expert background further adds to the depth of the Board and in particular adds important strength to the international and law component of the Board.

HONG KONG (Dow Jones)--ING Groep NV (ING) has appointed a head of corporate and investment banking for Mongolia, the company said in an internal memo seen by Dow Jones Newswires, possibly becoming the first major bank to create such a post dedicated to Mongolia.

By David Stanway BEIJING, May 3 - Landlocked Mongolia sits on vast quantities of untapped mineral wealth and analysts say it could be one of the fastest growing economies of the next decade, as well as a key investment target for global mining giants.

The government of Mongolia could soon decide on establishing a joint venture with Russia to develop a Mongolian uranium deposit, the head of the Russian civilian nuclear power corporation, Rosatom, said on Tuesday.

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By Melissa Pistilli—Exclusive to Uranium Investing News Mongolian President Tsakhia Elbegdorj finished off a nearly week-long state visit to China Monday and the question on the minds of some in the uranium market is whether or not the battle over Mongolia’s Dornod uranium deposit was discussed between the two nation’s heads of state.

By Adam Hamilton & Scott Wright | 03.05.2010 Since most countries accurately report mine output, and several agencies catalog this information, we know where in the world gold is being produced.  But where in the world are the juniors exploring for gold?  Are they spinning their drills proportionate in geography to where the miners are operating?  I hear questions like this all the time, but unfortunately there is no collective means of knowing where the juniors are concentrating their efforts.