Pages

Thursday, July 31, 2014

[BREAKING: FDI down 70% in first half as MNT sets another low, current account deficit $603.6m]

Please click Display Images or Download Pictures to properly view this newswire

- BREAKING NEWS -

Thursday, July 31, 2014

Follow the news on Facebook, Twitter and view archive here

 

FDI -70% to $873.2 million, Current Account Deficit -62% to $603 million - Preliminary BoP, First 6 Months of 2014

July 31 (Bank of Mongolia) --

Main indicators:

Current account deficit stands at US$ 603.6 million which is decrease of 62 percent or US$ 1,004.3 million from the previous year. This includes (i) 113 percent decrease of international trade in goods’ deficit, thus showed surplus of US$ 86.0 million; (ii) international trade in services’ deficit decreased by 11 percent to US$ 649.8 million; (iii) deficit on income account dropped by 51 percent to US$ 143.4 million; and (iv) surplus on current transfer increased by 81 percent to US$ 103.5 million.

Capital and financial accounts showed surplus of US$ 2.6 million which is decrease of 97 percent or US$ 884.9 million from 2013. This is due to 70 percent decline of foreign direct investment to Mongolia which equals to US$ 873.2 million and increase in other investment deficit by US$ 465.5 million.

Such increase in other investment were caused by following factors (i) US$ 209.5 million increase of trade credit receivables, (ii) US$ 187.3 million decline on disbursement of loans.

Balance of Payment for the First 6 Months of 2014

External sector statistics

Link to release

 

BoM MNT Rates: Thursday, July 31 Close

 

7/31

7/30

7/29

7/28

7/25

USD

1,870.92

1,870.00

1,867.19

1,860.88

1,856.92

EUR

2,506.28

2,505.52

2,508.10

2,499.44

2,500.62

CNY

303.14

302.78

302.13

300.73

299.84

GBP

3,161.48

3,166.75

3,170.77

3,159.31

3,152.21

RUB

52.70

52.45

52.46

52.60

52.94

July MNT vs USD, CNY Chart:

 

Link to rates

 

---


Room #5, Coffice Hub, 5th Floor, Time Center
21 Baga Toiruu Street, Sukhbaatar District 8
Ulaanbaatar, Mongolia 15160
Email: info@covermongolia.com
P
Please consider the environment before printing this e-mail.

Wednesday, July 30, 2014

[BREAKING: BoM raises policy rate by 1.5 points to 12% to fight rising inflation]

Please click Display Images or Download Pictures to properly view this newswire

- BREAKING NEWS -

Wednesday, July 30, 2014

Follow the news on Facebook, Twitter and view archive here

 

Mogi: starting from tomorrow

Monetary Policy Announcement: Policy Rate Raised by 1.5 Percentage Points to 12%

July 30 (Cover Mongolia) Monetary Policy Council of Bank of Mongolia has decided to raise the policy rate by 1.5 percentage points to 12% during today's regular meeting.

---

BoM Statement:

Дугаар: 2014/02

Мөрдөх огноо: 2014 оны 7 дугаар сарын 31-ний өдөр

Монголбанкны Мөнгөний бодлогын зөвлөл 2014 оны 7 дугаар сарын 30-ны өдрийн ээлжит хуралдаанаар мөнгөний бодлогын хүүг 1.5 нэгж хувиар нэмэгдүүлэн, 12.0 хувь болгох шийдвэр гаргалаа.

Хэрэглээний үнийн индексээр илэрхийлсэн инфляци 2014 оны 6 дугаар сарын эцэст улсын хэмжээнд жилийн 14.6 хувь, Улаанбаатар хотын хэмжээнд 15.1 хувьд хүрээд байна. Эдийн засгийг тогтворжуулах, гол нэрийн бараа, бүтээгдэхүүний үнийн өсөлтийг бага, тогтвортой түвшинд байлгах зорилгоор хэрэгжүүлсэн бодлогын арга хэмжээний үр дүнд хөтөлбөрт хамрагдах барааны үнийн өсөлтийн инфляцид үзүүлэх шууд нөлөөлөл нь 2010-2012 оны дунджаас 5.5 дахин буурлаа.

Гэвч, гадаадын шууд хөрөнгө оруулалт, гадаад цэвэр актив буурч байгаа хандлага сүүлийн 2 жилийн турш үргэлжилж, төсөвтэй адилтгах хөрөнгө оруулалтын зарцуулалтууд буурахгүй байна. Түүнчлэн, гадаад валютын орох урсгал, төлбөрийн тэнцлийг сайжруулах арга хэмжээний үр дүн хангалттай бус байна.

Иймд, төлбөрийн тэнцлийн хүндрэлийг зөөлрүүлэх, инфляцийг эрчимжүүлэхгүй байлгах, дунд болон урт хугацаанд санхүүгийн тогтвортой байдлыг хангах, макро эдийн засгийн тогтвортой байдалд учирч болзошгүй эрсдэлээс сэргийлэх, иргэдийн бодит орлогыг хамгаалах зорилгоор төгрөгийн өгөөжийг нэмэгдүүлсэн бодлогын энэхүү арга хэмжээг авч байна. 2014 оны эцэст орон сууцны ипотекийн зээлээс бусад хөтөлбөрийн зээлийн үлдэгдэл өмнөх оноос 766 тэрбум төгрөгөөр буурахаар байгаатай уялдан мөнгөний бодлогын энэхүү шийдвэр нь төсвөөс гадуурх санхүүжилтийг оруулсан нэгдсэн төсвийн зохистой бодлоготой хамт хэрэгжих нь илүү үр дүнтэй байх болно.

Төлбөрийн тэнцлийн дарамтыг арилгаж, эдийн засгийг хүндрэлээс гаргахын тулд төсвийн тогтвортой байдлыг хангаж, экспортын орлого, гадаадын шууд хөрөнгө оруулалтыг нэмэгдүүлэх замаар гадаад валютын орох урсгалыг эрс сайжруулах нь чухал хэвээр байна.  

Зөвлөлийн хурлын хураангуй тэмдэглэлийг хоёр долоо хоногийн дараа Монголбанкны цахим хуудаст байршуулна.

Link to BoM release

 

---


Room #5, Coffice Hub, 5th Floor, Time Center
21 Baga Toiruu Street, Sukhbaatar District 8
Ulaanbaatar, Mongolia 15160
Email: info@covermongolia.com
P Please consider the environment before printing this e-mail.

[BREAKING: Turquoise Hill selling 29.95% SouthGobi stake, maintaining 26%]

Please click Display Images or Download Pictures to properly view this newswire

- BREAKING NEWS -

Wednesday, July 30, 2014

Follow the news on Facebook, Twitter and view archive here

 

Turquoise Hill Announces Sale of 29.95% Stake in SouthGobi Resources

VANCOUVER, BC--(Marketwired - July 30, 2014) - Turquoise Hill Resources (NYSE:TRQ) (NASDAQ:TRQ) (TSX:TRQ) (Turquoise Hill or the Company) today announced that it has entered into a share purchase agreement with National United Resources Holdings Limited (the Purchaser), a Hong Kong-based public company listed on the main board of the Stock Exchange of Hong Kong (SEHK), providing for the sale to the Purchaser of a 29.95% stake in SouthGobi Resources Ltd. (SouthGobi), an integrated coal mining, development and exploration company operating in Mongolia.

Under the terms of the agreement, which was effected in accordance with and in reliance upon the "private agreement" exemption under the Canadian takeover bid regime, Turquoise Hill has agreed to sell 56,102,000 common shares that it owns in the capital of SouthGobi to the Purchaser at a price of CDN$0.455 per common share, following which Turquoise Hill would continue to hold 48,705,155 shares of SouthGobi, representing approximately a 26% stake in SouthGobi. Approximately CDN$12.8 million in cash will be received by the Company at closing and deferred consideration of approximately CDN$12.8 million will be payable one year after the closing of the transaction.

Closing is subject to certain closing conditions, including the SEHK approving the circular to be provided to the Purchaser's shareholders for the shareholder vote on the transaction and the Purchaser's shareholders approving the transaction. Closing is expected to occur no later than November 30, 2014.

CIBC World Markets Inc. acted as financial advisor and Norton Rose Fulbright acted as legal advisors to the Special Committee and the Turquoise Hill Board of Directors in respect of this transaction.

Link to release

 

Turquoise Hill Enters Into an Agreement with National United Resources to Sell Shares Representing 29.95% of SouthGobi Resources' Total Shareholding

HONG KONG, CHINA--(Marketwired - July 30, 2014) - SouthGobi Resources Ltd. (TSX:SGQ) (HKSE:1878) ("SouthGobi" or the "Company") has been notified that Turquoise Hill Resources Ltd. ("Turquoise Hill") has entered into a share purchase agreement to sell a 29.95% stake in the Company to National United Resources Holdings Limited (HKSE:254, "NUR"), a Hong Kong-based public company listed on the main board of the Stock Exchange of Hong Kong Limited ("SEHK").

Under the terms of the agreement, which was effected in accordance with and in reliance upon the "private agreement" exemption under the Canadian takeover bid regime, Turquoise Hill has agreed to sell 56,102,000 common shares that it owns in the capital of the Company to NUR at a price of CAD0.455 per common share, following which Turquoise Hill would continue to hold 48,705,155 shares of the Company, representing approximately a 26.00% stake in the Company. SouthGobi notes that under the proposed transaction, approximately CAD12.8 million in cash will be received by Turquoise Hill at closing and deferred consideration of approximately CAD12.8 million will be payable to Turquoise Hill one year after the closing of the transaction.

Closing is subject to certain closing conditions, including approval of both the SEHK as well as NUR's shareholders. Closing is expected to occur no later than November 30, 2014.

Upon closing of the transaction, the Company expects that two persons nominated by NUR will be appointed to the board of directors of the Company.

SouthGobi will continue to focus on its business and drive to deliver upon its 2014's objectives with the usual high priority on safety.

Link to release

 

---


Room #5, Coffice Hub, 5th Floor, Time Center
21 Baga Toiruu Street, Sukhbaatar District 8
Ulaanbaatar, Mongolia 15160
Email: info@covermongolia.com
P Please consider the environment before printing this e-mail.

Tuesday, July 29, 2014

MIBG Releases Detailed Review of Mongolia's Mineral Law

Please click Display Images or Download Pictures to properly view this newswire

Tuesday, July 29, 2014

Follow the news on Facebook, Twitter and view archive here

 

MIBG Releases Detailed Review of Mongolia's Mineral Law

MIBG has released a detailed un-official translation of the amendments to the new Mineral Law. This includes MIBG's opinion on how the specific changes, additions, and removals will impact Mongolia, and more specifically the mining sector.

This report is the first critical analysis of the amended Mineral Law, including English translations of each amended article for straight forward comparison. In total, 81 articles have been added, altered, changed, or terminated and we have rated all of the changes as either Positive, Neutral, or Negative. From these 81 amendments, according to MIBG's ratings 37 amendments have been rated positive, 38 amendments rated neutral, and 6 amendments were rated negative. We believe that the legislation has not only put the 2012 proposed minerals law behind us, but it has actually improved on its predecessor from 2006.

MIBG's "Mineral Law Review 2014" is available for subscription by clicking here.

 

Disclosure: Cover Mongolia is acting as a Sales Agent of the review

 

---


Room #5, Coffice Hub, 5th Floor, Time Center
21 Baga Toiruu Street, Sukhbaatar District 8
Ulaanbaatar, Mongolia 15160
Email: info@covermongolia.com
P Please consider the environment before printing this e-mail.

Sunday, July 27, 2014

Winsway Chairman Pledges 29.9% Stake to Shanxi Coal

July 26 (Cover Mongolia) When Winsway Coking Coal Holdings (now Winsway Enterprises Holdings, HKEx:1733) announces that its founder and chairman Wang Xingchun, who holds 49.1%, pledged his 29.9% Winsway stake to a major China state-owned company, they didn’t say to whom. But soon enough, as per HKEx disclosure rules, the unnamed SOE was revealed as Shanxi Coal International Energy Group, listed on Shanghai Exchange with a market capitalization of RMB 8.56 billion ($1.38 billion), in a disclosure of interest notice.

Friday, July 25, 2014

[BREAKING: DBM raising $200m in loans, backed by GoM guarantee, with $100m greenshoe option]

Please click Display Images or Download Pictures to properly view this newswire

- BREAKING NEWS -

Friday, July 25, 2014

Follow the news on Facebook, Twitter and view archive here

 

Mogi: DBM steps in where TDB couldn’t without a GoM guarantee

Development Bank of Mongolia out with $200m

The Development Bank of Mongolia is raising a $200m loan that features a $100m greenshoe option, made even more appealing with a guarantee from the country's government

By Shruti Chaturvedi

July 24 (GlobalCapital) Credit Suisse is the sole bookrunner for the deal, which is split into three portions: a three year bullet, which pays a margin of 425bp over dollar libor, a five year amortiser offering 437.5bp, and a seven year amortiser paying 450bp over libor.

Lenders are allowed to commit to any or all of the tranches, said a banker.

The deal is open to banks at three levels of participation - mandated lead arrangers coming in with commitments of $50m or over will earn 125bp as fees for the three year, 150bp for the five year and 175bp for the seven year.

Lead arrangers pledging between $25m and $49m earn fees of 110bp, 125bp and 150bp for the three tranches respectively, while co-arrangers committing between $10m and $24m net fees of 85bp, 100bp and 125bp, respectively

The fundraising comes just after the Trade & Development Bank of Mongolia had to pull a dollar bond issue when investors were reluctant to open their portfolios to Mongolian risk.

However, because the DBM loan comes backed by a guarantee from the government of Mongolia, it is unlikely to run into similar headwinds, according to bankers.

Link to article

 

---


Room #5, Coffice Hub, 5th Floor, Time Center
21 Baga Toiruu Street, Sukhbaatar District 8
Ulaanbaatar, Mongolia 15160
Email: info@covermongolia.com
P Please consider the environment before printing this e-mail.

Tuesday, July 22, 2014

Mongolia-Focused Canrim Resources' June Update


July 2014 (Canrim Resources) --
Greetings from Ulaanbaatar Mongolia,
The past month has been one of measurable progress for Canrim Resources Pte Ltd. Ranjeet Sundher, the company's Founder, and Scott Osheroff, Vice President of Corporate Development, spent much of June in Ulaanbaatar meeting with the company's local team, composed of Turbat Demchigsuren, Canrim's Country Manager and Bolderdene Banzaragch, Senior Exploration Manager. We also met with a number of government and private industry representatives. All-the-while, Glenn Griesbach, Vice President of Resource Development, has continued his due diligence on potential mineral properties for acquisition.
On July 1, during the final session of Parliament before the summer recess, Parliament issued a Decree on amendments to the Minerals Law, an event Canrim previously, conservatively budgeted to occur in October-November. One of these amendments involved a lifting of the moratorium on the issuance of exploration licenses, thus assigning responsibility for the issuance (and renewals) to the Minerals Resource Authority of Mongolia (MRAM). We expect MRAM to enact relevant procedures soon after the mid-July Naadam national holiday and will follow developments closely to ensure we remain in the pole position for the acquisition of new exploration licenses. 
Canrim has positioned itself as a first-mover in the acquisition of mineral projects. Canrim's management team has over 50 years combined experience in Mongolia with a track record of several successful exits in the minerals sector. We have the ability to be quick and agile in the execution of our business model (with a full season of due diligence already behind us). Being proactive during the time it will take MRAM to begin reissuing new licenses, Canrim's geological team continues to review existing mineral licenses for potential acquisition. Canrim is interested in the secondary market for licenses, as on July 1 the life of licenses was increased from nine to twelve years, at one stroke improving the attractiveness of scores of licenses. We continue to identify and short-list available projects by way of technical due diligence and commercial discussion. 
Mongolian Economic Update:
Notable transactions and developments during the first half of 2014:
  1. January 8: Altan Rio Minerals Ltd. announced equity facility of up to $10 million with European Bank for Reconstruction and Development (EBRD)
  2. June 13: Aspire Mining Limited bought into a joint venture project with Noble Group through a 50% purchase of the Ekhgoviin Chuluu LLC joint venture
  3. June 20: GDF SUEZ S.A. signed a Concession Agreement with government for construction of a $1.2 billion, 415 megawatt, power plant in Ulaanbaatar
  4. July 1: Amendments made to Minerals Law
  5. July 1: Moratorium on issuance of exploration licenses lifted
  6. July 1: Life of exploration licenses extended from nine to twelve years
  7. July 1: Petroleum Law passed
We look forward to updating you again on our progress and developments in Mongolia. In the meantime, if you wish to learn more about Canrim Resources, I encourage you to email us directly at canrimresources@gmail.com. Our team will be delighted to speak with you and share our vision for the company's future.
Sincerely,
Ranjeet Sundher
Director and CEO
Canrim Resources Pte Ltd.
About Canrim Resources Pte Ltd.
Canrim Resources Pte Ltd. is a Singapore-incorporated holding company, controlling several subsidiaries established for the purpose of developing minerals-related business activities in Mongolia. With over 50 years management experience in Mongolia’s resource sector, as well as offices in Singapore and Ulaanbaatar, Canrim Resources Pte Ltd. has positioned itself as a strong player in the Mongolian minerals sector, seeking to execute on transactions of minerals licenses in both the primary and secondary markets, in addition to select infrastructure projects. Mongolia remains one of the most under-explored geologically attractive regions in the world and is strategically positioned near to the commodity consuming nations of China, Russia, South Korea and Japan.