Recent news
Aspire’s Ovoot likely to grow into Tier 1 resource
Aspire Mining Ltd. has already defined the second largest coking coal reserve in Mongolia, after TavanTolgoi, and additional coal intersected during drilling outside the existing resource at its Ovoot coking coal project could increase the size. There is still plenty of room for Ovoot to grow into a Tier 1 resource, with only around 20% of the Ovoot Basin explored by Aspire.
Dark cloud from China covers Mongolia
Minister of Finance Ch.Ulaan announced in August that State revenue until then was MNT1.2 trillion less than what had been estimated in the budget.
Mark the figure it is not MNT100 billion, MNT200 billion or even MNT500 billion, but a whopping MNT1.2 trillion. The shortfall has put the Human Development Fund in a critical situation and it is not clear how State-funded construction works will continue. Just before his statement, several coal companies had put exports on hold.
The “Reform” Government’s proposed Action Plan
We give below selected parts of the 2012-2016 Action Plan formulated by the Government and awaiting approval by Parliament.
Every Mongolian to have a job and an income
• Keep inflation in single digit and the purchasing power of the MNT stable.
• Restrict budget deficit to no more than 2% of GDP.
• 80% of imports by sectors other than mining will be exempt from tax.
How depressing is Australia’s official 2013 iron ore and coking coal chart
The commodities outlook of the Bureau of Resources and Energy Economics, the Australian government’s official forecaster, is not nearly as upbeat as many producers’ own predictions. In its latest quarterly overview BREE forecasts that in 2013, the average contract price for FOB Australia iron ore is set to decrease 20% to US$101 a tonne down from an expected average of $126 a tonne this year.
Coking coal market quiet as steelmaker bids stable
The seaborne coking coal market was unchanged Wednesday as several Chinese market participants gave indicative bids at current levels. Platts assessed both premium low-vol and mid-vol hard coking coal with 64% CSR (coke strength after reaction) unchanged at $140.50/mt FOB and $124/mt FOB Australia respectively. Purchasing managers at two large Chinese mills said prices for Australian premium material were exhibiting some signs of stability.
China Iron Ore Price Index Falls For 4 Consecutive Weeks
= Price gap between imported ore (including tax) and domestic ore expands to about RMB 55 =
According to China Iron & Steel Association (CISA), China Iron Ore Price Index (CIOPI, April 1994=100, 62% Fe content) for the second week (10 - 14) of September 2012 turned out to be 358.33 with a decrease by 17.58 points (4.7%) from the previous week, which hit the lowest level since CISA started to announce CIOPI from September 2011 for four consecutive weeks.
China Aug coal imports down on yr for 1st time
China’s coal imports fell for the first time this year in August compared with the year-ago level, as overseas coal is losing its price advantage over domestic supplies following the recent price falls and sluggish demand in China. Coal imports, including lignite, amounted to 20.44 million tonnes in August, slumping 15.8% from the month before, and down 0.7% from one year ago, showed the latest data from the General Administration of Customs.
China’s iron-ore miners cut output as prices fall
A slide in iron-ore prices to three-year lows is forcing many high-cost miners in top consumer China to curb output, industry sources say, in a move that could reduce the surplus in a market weighed down by near record Chinese stocks.China produces about one-billion tons a year of iron ore and buys 60% of the steelmaking raw material traded globally.
Proposal for controlling coal output may hardly turn into reality in China
Fourteen of China’s largest coal groups, including China Shenhua, China coal energy and Shanxi coking coal Group, issued a joint statement on August 30th 2012, proposing that all of China’s coal miners appropriately control production in order to stabilize the domestic market against the lackluster demand. Insiders consider it unlikely for Chinese miners to control their production spontaneously given by the huge cost pressures involved.
Mongolia’s Mining and Mineral Game
Mongolia’s newly elected government is implementing “Resource Nationalism” to restrict foreign investments. Currently China controls 70% of Mongolia’s mining assets and politicians are looking to limit foreign control. Last month, Chalco was forced to give up the acquisition of SouthGobi. Still Chinese control is prominent.
Join Hands to Meet Challenges and Promote Sustainable Development
Theme of CHINA MINING 2012 is published.
One week to go before the early bird rate expires
CHINA MINING Conference and Exhibition, the 14th edition of the largest mining event in Asia hosted by China Ministry of Land & Resources, will be held in Tianjin on November 3-6, 2012.
Guatemalan president retracts proposed mining law reform
President Otto Perez Molina has officially withdrawn two proposed amendments to the Guatemalan Constitution pertaining to mining law reform, including a highly controversial trial balloon which would have permitted state ownership of up to 40% in new mining projects. If adopted, Article 125 would have allowed the Guatemalan government to acquire up to 40% ownership or equity in future new mining projects, which were not already operating in Guatemala.
Philippines ban on open pit mine unlikely to be lifted
The Philippine province where a joint venture of Xstrata Plc wants to develop a $5.9-billion copper and gold mine is unlikely to lift its ban on the project. South Cotabato Governor Arthur Pingoy has said that Sagittarius Mines, owned by the global miner and Australian mining firm Indophil Resources, may have to go to court to end the ban on open-pit mining, the method to be used at Southeast Asia’s biggest copper and gold prospect in Tampakan.
Rio comes up tops in Transparency International report
Mining giants Rio Tinto and BHP Billiton have come up tops in a recent report by anticorruption group Transparency International, placing second and third respectively out of 105 largest publicly traded companies, with Norway’s Statoil taking the highest ranking.
Lessons from a land far away
Everything seems to be in a limbo in the country right now. Parliament is too new to develop its own personality, and acquiring one could be difficult until many new members find the right balance between living up to their resource nationalist identity and living it down after donning a new garb.
PARTS OF SPEECH
“I believe in Mongolia’s bright future. I found this belief 17 years ago when I first visited Mongolia. The country is enjoying success within a short period of time because the people have always aspired to freedom and justice, and because the people are strong…The United States is making substantially increased investments — diplomatic, economic, strategic and otherwise — in this part of the world. It’s what we call our pivot toward Asia.”
Candidates for strategically important deposits: Part II
An appendix to the State Great Khural Decree No.27 of 2007 refers to 39 deposits which might qualify to be classified as strategically important deposits if they fulfil certain criteria. These are known as candidate deposits. Our July issue gave general information on 13 of them, and this month we cover another 13 deposits. We do not give comprehensive details, but mention present ownership of the mines and give an idea of how these are working at the moment.
