MONGOLIA – JV for coal and iron ore projects
A new joint venture has been formed between one of the world’s top oil and commodity traders and one of Mongolia’s largest private natural resources investors. 1 The 50:50 JV between Trafigura Beheer BV and Origo Partners will develop coal and iron ore deposits in Mongolia with significant export potential.Trafigura-Origo MGL will invest in a number of already identified Mongolian iron ore and coal exploration projects and target further high-grade deposits. The partners will also look at expanding the scope of the venture into other countries including Kazakhstan and Russia, and to cover all commodities.
The joint venture will be jointly managed by Mikhail Zeldovich who is the head of Russia/CIS and Mongolia at Trafigura. The company has grown its thermal and coking coal business in the Atlantic and Pacific markets since coming into the coal market two years ago.
Trafigura director Chris Cox says, “The joint venture represents an excellent opportunity to further strengthen our involvement in Mongolia. It also helps us to maintain our position as a leading player in the global commodities business.”
Luke Leslie, the head of Mongolia and mining investments at Beijing-based Origo, will co-manage the JV with Mikhail Zeldovich. He says the venture will provide its shareholders with exposure to China-linked high growth investment opportunities.
Origo chief executive officer Chris Rynning says the JV is an endorsement of the company’s mining franchise, its market leading position in Mongolia and the country’s potential to develop into a major supplier of bulk commodities and base metals.
“Working with Trafigura, one of the world’s leading trading companies, will enable us to enhance our existing strong position in Mongolia and the wider region.
“This JV will enable our experienced team of finance professionals, industry experts and geologists to further develop our investments in Mongolia’s natural resource sector. Our on the ground presence means we are in an increasingly strong position to create value by applying our engineering and exploration skills and equipment at all stages of project development,” says Chris Rynning.
The joint venture will be jointly managed by Mikhail Zeldovich who is the head of Russia/CIS and Mongolia at Trafigura. The company has grown its thermal and coking coal business in the Atlantic and Pacific markets since coming into the coal market two years ago.
Trafigura director Chris Cox says, “The joint venture represents an excellent opportunity to further strengthen our involvement in Mongolia. It also helps us to maintain our position as a leading player in the global commodities business.”
Luke Leslie, the head of Mongolia and mining investments at Beijing-based Origo, will co-manage the JV with Mikhail Zeldovich. He says the venture will provide its shareholders with exposure to China-linked high growth investment opportunities.
Origo chief executive officer Chris Rynning says the JV is an endorsement of the company’s mining franchise, its market leading position in Mongolia and the country’s potential to develop into a major supplier of bulk commodities and base metals.
“Working with Trafigura, one of the world’s leading trading companies, will enable us to enhance our existing strong position in Mongolia and the wider region.
“This JV will enable our experienced team of finance professionals, industry experts and geologists to further develop our investments in Mongolia’s natural resource sector. Our on the ground presence means we are in an increasingly strong position to create value by applying our engineering and exploration skills and equipment at all stages of project development,” says Chris Rynning.
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