The Mongolian Mining Journal

Checking on how companies curb corruption Care for it or not, any Transparency International (hereafter TI) report gets handsome media coverage in every country, even where it has no direct relevance. If a country is seen as having improved on its perceived performance recorded in the previous year’s report – as Mongolia has done in this year’s Corruption Perceptions Index (CPI) – it raises expectations of a rise in foreign investment.

Fitch revises Mongolia outlook to Negative from Stable Fitch Ratings has revised the Outlooks on Mongolia’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to Negative from Stable and affirmed the IDRs at ‘B+’. The Country Ceiling is affirmed at ‘B+’ and the Short-Term Foreign-Currency IDR at ‘B’. The issue ratings on Mongolia’s senior unsecured foreign- and local-currency bonds are also affirmed at ‘B+’.

TT power plant to follow global best practices The planned thermal power plant based on Tavan Tolgoi coal is to be built with both Government and private investment. The Head of the Tavan Tolgoi Electrical Plant Proposal Department, Dr of Economics M. Enkhsaikhan, describes how things are progressing.

World Economic Forum-Annual Meeting, Davos-Klosters, Switzerland World Economic Forum-Annual Meeting, Davos-Klosters, Switzerland

The over whelming burden of compensation A prospecting company denied a mining licence under the ‘long-titled’ law is preparing to claim nearly $500 million from the State in court. It obtained the prospecting licence before the law was passed in 2009 and thereafter spent more than $10 million on the prospecting work.

Mongolia signs deal with illegal gold miners The government has signed a deal with the country’s gold producers association, which aims to reduce illegal extraction of the metal by reducing barriers for them to become formal miners.

Forum sends recommendations to Parliament, President The following recommendations, emerging from the proceedings at the “20 years in the modern mineral sector” forum, have been sent to members of parliament, the President’s Office, and cabinet members.

Taxes as important as dividend from OT Intense discussions between the Mongolian side and Rio Tinto are on, and three separate committees with members from both sides are holding talks on how the initial investmenton OT had been spent, if the Feasibility Study needs change, and how to find finances to develop the underground mine. Meanwhile, no one is certain how long additional financing for the underground mine at Oyu Tolgoi is to remain suspended.

Shenhua to buy 1 billion tons of TT coal, build railway Ya. Batsuuri, CEO of state-owned Erdenes Tavan Tolgoi, has said three mining companies have agreed to export 1 billion tons of coal to China’s Shenhua Group Corp. in the next 20 years. The total value of the exports at current prices would be about $50 billion

Khan Resources not alone in opting for arbitration Toronto-based Khan Resources is gambling that an international arbitration case in Paris will allow it to regain control of a uranium project that, it claims, was illegally expropriated by the Mongolian government, leaving it with nothing but angry investors.

20 Years of the Minerals Sector in Mongolia Government palace Hall “A” on 15th November 2013

PM’s visit gives a big push to transit transport deals It’s been said that with access to the ocean, Mongolia could serve the world, but without it, she will only serve her neighbours. Seaborne trade will allow Mongolia to offer her abundant natural resources in the global market and fulfil her economic potential, but for this the country needs transit transport facilities through both its neighbours. Mongolia has been holding regular strategic talks with them to reach this goal.

Wondering why companies are there I remember how in the early days of my stay in Ulaanbaatar, interaction with local journalists would leave me both amused and bemused by their insistence on using the word Company or LLC after mentioning the name of a business firm, particularly if it was one of some size.

Team absolves Areva of damaging environment, animals Uranium miner Areva SA has been cleared of causing any damage to the environment and being responsible for cattle deaths.

“We have to balance the commercial and environmental aspects of mining” The draft State policy on the mineral sector, now before the State Great Khural, is likely to be discussed and, many hope, approved during the Fall session. Three independent working groups helped prepare the draft. One of these was led by B.Batkhuu, director of Policy Implementation Department at the Ministry of Mining. N.Aruintuya of MMJ talked to him to know more about the draft.

Erdenet Mining mulls copper cathode plant Erdenet Mining Corp is carrying out a feasibility study for the construction of a 100.000-tpy copper smelter, according to commercial department head N. Enkhbaatar.

TNC: Mongolia needs more data on its groundwater resources Bruce McKenney, Strategy Director for the Nature Conservancy’s Development by Design program, tells how Mongolia can develop the green economy and minimize the mining sector’s impact on the environment.

“Geologists are romantic, unique individuals” B. Bat-Erdene, head of the Mongolian Industrial Geologists Association, explains to E.Odjargal the unique nature of a geologist’s work and what leads to success in a remarkable profession.

At tide’s ebb Faced with a yawning budget deficit, Prime Minister Julia Gillard last year came up with a 30%-tax on the “super profits” from the mining of iron ore and coal in Australia. From 1 July 2012, a company was to pay the tax when its annual profits reached $75 million. Around 320 companies fell into the net.

Fluorspar mining gets a boost Fluorspar is not among the top export items in Mongolia, but is beginnings to play an increasingly important role in the country’s economy. Total production is 2012 was 420,000 tons, according to the United States Geological Survey (USGS), making it the world’s third largest producer.