Government decided to issue bonds to finance loan/advance payment from the miners

Government of Mongolia will issue bonds as security for advance payment of the Ivanhoe Mines and Rio Tinto. According to the Oyu Tolgoi draft investment agreement, the miners to pay $ 250 mill as advance payment to Mongolian government. The investors (the miners) proposed to buy bonds of Government of Mongolia for 5 year period at annual interest rate of 3% as collateral for the loan/advance payment.
During today's cabinet meeting, the Government approved issuance of bonds worth $ 287.5 million dollars in stages. Ivanhoe Mines Mongolia Inc proposed to transfer the advance payment in following three 3 stages.
1st. transfer $ 100 mill within 14 days of signing of the investment agreement
2. transfer $ 50 mill within 14 days of effective date of the agreement
3. transfer rest of $ 100 mill within 14 days of raising funds necessary for building open and underground mine shafts at the site.

Reporting by Ganbat, reporter of MonInfo news service

Read More

Former President Enkhbayar Nambar under corruption investigation

Mongolian Government's Anti-Corruption Agency started questioning of Enkhbayar Nambar, former President of Mongolia for corruption allegation, according to the officials of the agency.
Especially, the agency is interested in role and participation of the former President in privatization of the Trade and Development Bank, ownership of private tv station " TV9" etc.

By Ganbat, reporter of MonInfo News Service

Read More

Opinion: Oyu Tolgoi investment agreement in limbo

Ambigious statements made by the Ministers of Minerals and Finance during teabreak of the cabinet meeting left many puzzled.
It was Bayartsogt, the finance minister who said early September " final deadline of signing Oyu Tolgoi investment agreement is 30th of September." What happened of this pledge?

What are "the procedures that the investment agreement has to go through before actually signed" mentioned by the Minerals Minister who is now running for the Parlamentary seat?

Also National Security council is to review the Oyu Tolgoi investment agreement? Does this mean the agreement is completely revised and different one than the previous version debated at the Parliament and approved by the National Security Council?

By Ganbat, reporter of MonInfo News Service

Read More

Buddhist Students' Association to celebrate its fifth anniversary

Mongolian Buddhist Students' Association is planning to celebrate its fifth anniversary on Oct 2, 2009. The anniversary celebration will continue for two days (Oct 1 and 2) and cultural shows by children will demonstrated.
On the evening of Oct 2, the Association members will chant Buddhist mantras for memory of Zorig Sanjaasuren, democratic leader slain on Oct 2, 1998.
The primary objective of the association is to provide knowledge and information on Buddhism to youth and students and help vulnerable and poor class of the Mongolian society.
Currently, the Association has opened up chapters in Uvurkhangai, Dundgovi, Khovd, Darkhan-Uul aimags or provinces of Mongola.

By Battsetseg, reporter of MonInfo News Service

Read More

A good old ‘thorn’ in India-Mongolia ties

September 30th, 2009 - 2:37 pm ICT by IANS
By Ritu SharmaPartapur (Jammu and Kashmir), Sep 30 (IANS) India and Mongolia have joined hands to tap the potential of seabuckthorn, a plant better known here as Leh Berry that has high concentrations of vitamins A, B2 and C and is found in abundance in both countries.
On a three-day visit to Ladakh to see the initiatives taken by the Defence Institute of High Altitude Region (DIHAR) to make the plant economically useful for the local population, Mongolian Ambassador to India Voroshilov Enkhbold told IANS: “We have seabuckthorn in Mongolia also, mostly in the western province. We have seen how valuable the cherry is.”
Most of the Ladakh region in Jammu and Kashmir is a cold desert, similar to the Gobi desert in Mongolia.
“I want to establish some relation with India on how to tap the potential of the plant,” the ambassador said.
Enkhbold will be taking to Mongolia samples of Leh Berry juice, a herbal anti-oxidant supplement prepared from the plant; herbal tea and some of the 200-odd products prepared by DIHAR scientists.
“We are sending two of our scientists to Mongolia to share our success story in making the plant a source of income for the local population,” said DIHAR’s director Shashi Bala Singh.
There is plenty of seabuckthorn growing wild in Ladakh, a region where temperatures can plunge to as low as minus 50 degrees Celsius. Distributed over 11,500 hectares in the area, the shrub can withstand the extreme temperature, including huge fluctuations, as it can also get pretty hot under the cloudless sky.
The berries have high concentrations of vitamins A, B2 and C, far higher than in other fruits and vegetables such as orange, carrot and tomato.
“The plant is a boon for the region. It fixes atmospheric nitrogen into the soil, making it more fertile, checks soil erosion, its leaves are anti-cancerous, prevent tumour and improve immunity. So we call it the Golden Bush of the cold desert,” Singh told IANS.
In 2001, DIHAR had commercialised the beverage it prepared from the fruit under the name “Leh Berry Juice”. In 2004 it made a herbal tea, the formula for which will be transferred to two vendors soon. In 2005, it came up with a jam and a sauce and in 2009, with a herbal anti-oxidant supplement prepared from the plant.
“Currently we are undertaking tests for UV (ultraviolet) protective oil and soft gel capsule rich in seed oil and omega fatty acids to be used as food supplement,” Singh added.
The locals, who used to once consider seabuckthron a weed, have benefited from the new findings of DIHAR and are now selling the fruit here as well as in other states.
“We would like small industries to come to Ladakh and invest in the project, providing more economic avenues to the Ladakhis,” W. Selvamurthy, distinguished scientist of the Defence Research and Development Organisation (DRDO), told IANS. Selvamurthy is also the chief controller of research and development in DRDO, the parent organisation of DIHAR.
Tsering Stobdan, a senior scientist working on the seabuckthorn research projects and a native of Ladakh, said: “So far less than five percent of the plant potential in the region has been exploited. The demand for the fruit is increasing and reflected in its price going up from Rs.8 to Rs.30 per kg in recent months.”
(Ritu Sharma can be contacted at ritu.s@ians.in)

Read More

No definite timeframe for Oyu Tolgoi deal, according to the Minerals Minister

As of now, Cabinet meeting of Government of Mongolia is discussing about Oyu Tolgoi investment agreement. The Minerals Minister Zorigt told to Mongolian reporters that "several procedures have to be passed before actual passing of the agreement. Therefore, i can not tell specific timeframe for the Oyu Tolgoi deal." He declined to give further details.

By Ganbat, reporter of MonInfo News Service

Read More

R.Friedland flew to Oyu Tolgoi this morning

Robert Friedland, chairman of Ivanhoe Mines, also known as "Toxic Bob" flew to Oyu Tolgoi deposit in South Gobi aimag this morning, sources close to Ivanhoe told to MonInfo news service.The Ivanhoe Mines Mongolia Inc, runs chartered flight between the mine site and Ulaanbaatar. It takes about one hour to reach the site.

Known for his flamboyant style and adventurous business dealings, he is not well liked in Mongolia after reportedly saying " ‘So we’re coming in from outer space and landing at Oyu Tolgoi… And the nice thing about this: there’s no people around; the land is flat, there’s no tropical jungle; there’s no NGOs. We’re only 70 kilometres from the Chinese border. It does not snow here. You’ve got lots of room for waste dumps."

In 2006, Mongolian civic groups burned his effigy during street protests.Since then, the "king of the Canadian Juniors" kept a very low profile in Mongolia.

It is not clear how long he will stay in Oyu Tolgoi with other potential investors or wait for Oct 6, 2009 signing ceremony. He is known for his support of esoteric religion of Lamaism, Mongolian Buddhism. Ivanhoe Mines Mongolia Inc funded restoration and building a local Lamaist temple and Stupa in Khankhongor area where Oyu Tolgoi is situated. It is not coincidence that Ivanhoe and Rio agreed to "auspicious" full-moon day of Oct 6, 2009.

By Ganbat, reporter of MonInfo News Service

Read More

Mongolian legislator confirms delay of OT agreement warns haste makes waste

Bayarsaikhan Tsevelmaa, Chairman of the Economic Standing committee of the State Great Khural (Mongolian parliament) told to Mongolian journalists "meticulous work of reviewing and matching word-for-word translations of the Oyu Tolgoi investment agreement in Mongolian and English languages taking longer than expected.There can not be clauses with double meanings in the agreement.We have to accept that quality and benefit of the agreement is essential than timing." In another word, the legislator of Mongolian Democratic Party (Umnugovi aimag) said " haste makes waste" and was confident about signing of the agreement on Oct 6, 2009.

By Ganbat, reporter of MonInfo News Service

Read More

News Alert from MonInfo, Mongolian News and Information Services company

As of now (11:18 am UB Time), no signing of Oyu Tolgoi investment agreement by the representatives of the Parties occurred in Ulaanbaatar.

It confirms early news reporting by the MonInfo about delay of Oyu Tolgoi investment Agreement by one week until Oct 6, 2009. That day is considered to be most auspicious day in Tibeto-Mongolian Buddhism-Lamaism. Traditionally, wedding ceremonies and start of move to a new location, business ventures and operations held on this day of Baljinnyam and Dashnyam.

By Ganbat, MonInfo News Service

Read More

Government of Mongolia cabinet meeting agenda of today

Every Wednesday, regular Cabinet meeting of Government of Mongolia is held. Right now, this week's Meeting is being held in the Government house. Prime Minister Bayar is absent from the meeting as he is in working in Selenge aimag, agricultural wheat farming area. The agenda includes issue of authorizing some Ministers to sign Investment Agreement and Shareholders' agreement which pertains to Oyu Tolgoi, gold and copper deposit.
By Ganbat, reporter of MonInfo News Service

GOVERNMENT OF MONGOLIA, AGENDA OF CABINET MEETING NO.60
The cabinet meeting will be held at 10 am on Sept 30, 2009.

1. Approval of Industralization Program
(BY ALTANKHUYAG, DEPUTY PREMIER )

2. Draft law on consolidated Budget of Mongolia for 2010*
(BAYARTSOGT SANGAJAV, THE FINANCE MINISTER)

3. Amending a resolution attachment
(BAYARTSOGT SANGAJAV, THE FINANCE MINISTER)

4. Government bond sale
(BAYARTSOGT SANGAJAV, THE FINANCE MINISTER)

5. About authorization on signing investment agreement
(BAYARTSOGT SANGAJAV, THE FINANCE MINISTER)

6. About authorization on signing Shareholders' agreement
(BY BAYARTSOGT SANGAJAV, THE FINANCE MINISTER)

7. Setting term duration
(BY BAYARTSOGT SANGAJAV)

8. About some measures on Strategically important Mining deposits
(BAYARTSOGT SANGAJAV, THE FINANCE MINISTER)

9. About approving a Loan agreement
(BAYARTSOGT SANGAJAV, THE FINANCE MINISTER)

10. Draft law on Forensic Tests
(NYAMDORJ TSEND, THE MINISTER OF JUSTICE AND HOME AFFAIRS)

11. Draft government resolution on "issuing fund "
(NYAMDORJ TSEND, THE MINISTER OF JUSTICE AND HOME AFFAIRS)

12. Draft decree of the Prime Minister on "on setting up working group "
(NYAMDORJ TSEND, THE MINISTER OF JUSTICE AND HOME AFFAIRS)

13. About outcome of Thai Princess Sirindhorn's visit in Mongolia
(BATBOLD SUKHBAATAR, THE MINISTER OF FOREIGN AFFAIRS)

14. ”About implementation of Millenium Development Goals*
/ handouts will be distribute electronically/.
(DOLGOR, MINISTER OF GOVERNMENTAFFAIRS)

15.Second national program on ”Mental health”
(LAMBAA SAMBUU, MINISTER OF HEALTH)

16. About disbursing medical treatment cost*
(LAMBAA SAMBUU, MINISTER OF HEALTH)

17. Tri-party draft agreement on implementation of national program " on Food Security in Mongolia"
(BADAMJUNAI, MINISTER OF AGRICULTUR AND FOOD AND LIGHT INDUSTRY)


FOLLOWING PRESENTATIONS WILL BE MADE

18. About Mongolian participation in UN Peacekeeping Operations and other international eventst.
(By Bold Luvsanvandan, Mongolian Minister of Defence)

19. About implementation of Government Resolution
(NYAMDORJ TSEND, THE MINISTER OF JUSTICE AND HOME AFFAIRS)

20. About business trip by the Minister of Agriculture, Food and Light Industry
(DOLGOR, MINISTER OF GOVERNMENTAFFAIRS)

21. About business trip by the Minister of Social Wellfare and Labor
(DOLGOR, MINISTER OF GOVERNMENTAFFAIRS)

22. About setting up development bank*
(DOLGOR, MINISTER OF GOVERNMENTAFFAIRS)


Remark: *Relevant materials will be distributed.

GOVERNMENT AFFAIRS AGENCY

Read More

Robert Friedland in Mongolia; however, no signing ceremony today

Sources confirmed to MonInfo news service arrival of Robert Friedland, chairman of Ivanhoe Mines in Mongolia.He came with several institutional investors on his private jet.
Signing of the Oyu Tolgoi investment agreement was postponed by both Parties until Oct 6, an auspicious day according to Mongolian Lamaist Calendar.

Commercial Director of Rio Tinto Sam Rigal and John Fonian, Legal Affairs Director of Ivanhoe Mines and Bayartsogt Sangajav, the Finance Minister, Gansukh Luumed, Environmental Minister, Zorigt Dashdorj, the Minerals Minister will sign the agreement on behalf of the Parties.

By Ganbat, reporter of MonInfo News Service

Read More

Editorial: Why the signing of Oyu Tolgoi Investment Agreement delayed!!

Some readers of Mongolianviews news site might be wondering "what the heck..two conflicting reports within one hour !" Yes. we reported first Oyu Tolgoi Investment Agreement is going to be signed tomorrow. Then we dropped the bomb, reporting "signing of Oyu Tolgoi Investment Agreement is delayed by one week". However, now reliable sources at the Ministry of Finance confirmed early speculation that the signing of Oyu Tolgoi Investment Agreement will be delayed by one week. The next date is Oct 6, 2009. By tradition, Mongolian people selects a "good" or auspicious day to start some activities or campaign. According to Mongolian Lamaist/Buddhist Calendar, Oct 6,2009 is a "auspicious" day good to start any great activities.
Also because of clause" The Agreement will be provided and executed in the Mongolian and English languages each in two original copies, which each Party retaining one copy in each language. The Parties agree that the Mongolian and English versions will be treated equally" the reviewing and verifying Mongolian translations against English takes longer considering lack of Mongolian words for Mining and Technical terms of the complex agreement .
The previous IA had clause" in the event of any legal dispute in the interpretation between the two-language versions, the English version shall prevail".

By Ganbat, MonInfo Reporter

Read More

Breaking news:signing of Oyu Tolgoi Investment Agreement delayed by one week

According to some sources, due to need of "reviewing and verifying the English translation" of the Oyu Tolgoi investment agreement, signing of the agreement was postponed until Oct 6, 2009. Initially, the Government of Mongolia proposed to set the signing date tomorrow afternoon or Sept 30.

By Ganbat, MonInfo Reporter

Read More

Oyu Tolgoi Investment agreement to be signed tomorrow

Sources at the Ministry of Minerals and Energy told to MongInfo news service inking of Oyu Tolgoi Investment Agreement will be done tomorrow. Both sides (Ivanhoe and Mongolian officials) understand expectations and need for signing the agreement soonest. However, the parties want to get things "right and properly" the source said.

By Ganbat, MonInfo News Service

Read More

Central Asians find a favorite street in Seoul, Korea

A customer picking up a Mongolian newspaper from a store on the second floor of Mongolian Town, located in the front of the entrance to Gwanghui-dong’s Central Asia Street in downtown Seoul. By Jeon Min-gyu

Sitting in the back alleys of the bustling fashion cluster of Dongdaemun in central Seoul is Central Asia Street in Gwanghui-dong. The small neighborhood across the street from Doota Tower is easy to miss at first glance because it is not much different than any other alley area in Seoul. But on closer inspection, it’s clear this is no ordinary street.In fact, there are more signs in the Cyrillic alphabet here than there are in Korean or English. Likewise, shoppers are often a mixture of Russians, Uzbeks and Mongols speaking their native languages. “Just 10 years ago, all of these shops were leather stores,” said Cho Cha-gwan, 56. Cho, who used to be in the leather business, has worked in Gwanghui-dong for more than two decades. He’s run the Central Asian restaurant, “My Friends,” for 10 years. He also runs a small bakery selling Russian bread. “Russians and Mongolians started to flow into these streets around eight years ago,” Cho recalled. “A huge community of Russian and Uzbeks was established because many of them were working in the leather, fashion and textile trades. Dongdaemun served as their main business center,” Cho added.He noted that there are several nearby motels that the Russians patronize, like the Sinah Motel. The restaurant owner said the street has taken on its distinct form as the center for Central Asians in the past four or five years. “On weekends, Russians and Central Asians who are working in factories outside of Seoul swamp the neighborhood,” said Cho. “This neighborhood turns into a true Central Asian meeting ground where friends gather and pass around vodka.” The ground level of the street is mostly covered with Central Asian restaurants and bars selling delicacies made of lamb and vodka. There are also numerous travel agencies featuring destinations in Russia, Uzbekistan, Kazakhstan and other Central Asian countries. There are some clothing stores that exclusively serve customers from Central Asia. Unbeknownst to many first-time visitors, along the main entrance is a 10-story building more commonly known as Mongolian Town. Mongolian Town could easily be overlooked. The building sports few distinctive features. And the first floor has a Korean beer hof that is no longer in business.Other than the signs written in Mongolian, the place looks pretty much like any other office building in Seoul. Like the surrounding streets, the building seems to try hard to hide in plain view. However, within a few short steps into the building, a whole new world materializes - one that is unique in Seoul. The walls are plastered with Cyrillic signs advertising the latest mobile phones and other goods. There are posters touting Mongolian heavy metal bands. The clientele are mostly Mongols. Businesses here are diversified. On the second floor is a huge Mongolian restaurant with a small grocery shop that sells various items, including, naturally, vodka. Assorted floors hold small mom-and-pop stores crammed into tight spaces. “Many of the Mongols here are seeking their fortune,” said B. Byarmaa, a former doctor from Mongolia who runs a small shop in the building. She has been in Korea since 1997 and has been running the store since 2001. Byarmaa’s store has a large supply of Mongolian products including vodka, candies and souvenir goods like leather decorations displaying Genghis Khan’s likeness. Across the hallway is another store similar to Byarmaa’s. The owner, who wished not to be named and spoke little Korean, said Mongolians have little choice but to flock to Mongolian Town because that is where they have access to native goods and services, including food. “Without our Mongolian brothers and sisters we wouldn’t have a business,” the woman said. Areana Young, a woman from Uzbekistan, is a frequent customer of a beauty salon on the fifth floor of Mongolian Town. “I first came to Korea a year ago,” Young said in slightly awkward Korean. “I travel back and forth between Seoul and Uzbekistan.” She said she loves Seoul, which is very bustling compared to her hometown. She said she likes to visit Mongolian Town because it reminds her of her cultural roots. Young said she visits the beauty parlor once a week and chats with her Mongolian friends who hardly speak Korean. She said without the people and the neighborhood, she would be homesick. However, finding bargains in the area is not an easy task. “The price of services and products here are just the same as Korean consumer prices,” said Han Seung-soo, who runs an international calling card shop on the fourth floor of Mongolian Town. “Getting a haircut is 6,000 won ($5.00) and the food costs 5,000 won a dish, just like at a Korean restaurant,” Han said. “[Mongolian shop owners] have to pay their rent just like anyone else, and that’s why products aren’t all that cheap.” One big business impediment is the Korean government’s crackdown on illegal aliens, the anonymous shop-owner said. “Every time there’s a government inspection, sales take a dive,” she complained. This view was shared by Central Asian restaurant owner Cho.“The government came around without any warning, and I saw several customers running away in the middle of their dinner,” Cho said. People on the street and in Mongolian Town appear cautious and aware of newcomers. And they seem to take particular note of people hauling around large digital cameras. By Lee Ho-jeong, reporter of Joonangdaily.com [ojlee82@joongang.co.kr]

Read More

Ivanhoe Executives in Ulaanbaatar for signing of Oyu Tolgoi Investment Agreement

Robert Friedland, chairman of Ivanhoe Mines is expected to arrive today in Ulaanbaatar, sources told to MonInfo news service. Other executives of Ivanhoe like John Macken , Executive Director are already in Ulaanbaatar working out fine details and "nuts and bolts" of the massive Oyu Tolgoi investment agreement.

MonInfo will follow the event, therefore, tune in at mongolianviews.blogspot.com

Read More

Mongolia faces hurdles in ramping up coal exports

* Mongolia wants to boost coal exports but needs investors * Infrastructure strained by trade with giant neighbours * Needs to weigh control of resources against incentives

ZHUHAI, China Sept 28 - Mongolia, with three times as much coal reserves as top thermal coal exporter Indonesia, is eager to boost its own exports of the fuel, but faces the dilemma of luring investors into the sector while still keeping control.
Shipments from the landlocked nation, dwarfed by neighbours Russia and China, will rise 30 percent in 2009 from a year earlier, to more than 5 million tonnes, but still less than half the government's target of 12 million, an industry official said.
"We could produce more, but we could not ship it out," Luvsandagva Davaatsedev, chairman of the Mongolia Coal Association, a group of coal miners, told Reuters on the sidelines of the Asia-Pacific Coal Trading Conference in Zhuhai.
The key problems were insufficient investment, poor infrastructure and a lack of direct access to other markets, he added. Mongolia ships the bulk of its coal to China, the world's largest consumer and producer of the fuel.
China's coal imports from Mongolia increased about a half from a year earlier to 3.63 million tonnes in the first eight months of this year, official Chinese customs data showed.
"Mongolia and China are considering a green-tech power plant at the Shivee Ovoo coal mine in the southeast of Ulaanbaatar that could consume 12-15 million tonnes of coal a year," Davaatsedev said. "The electricity output would then be exported to China."
With only state-owned coal firms are allowed to use the railways, private coal companies are forced to ship their product by road, adding to their costs, Davaatsadev said.
"The existing railway link was too busy to handle more coal cargoes because it was also a main route for Russian exports to China," he said.
A year ago, Davaatsedev had said Mongolia's coal exports to China could rise sixfold in five years, to about 25 million tonnes if certain large projects were to come online.
TAVAN TOLGOI DELAY
Eyeing major projects but short of funds, Ulaanbaatar is divided between retaining control of its coal assets and offering incentives to woo foreign investors, particularly to mine the Tavan Tolgoi coal deposit in southern Mongolia, which has proven reserves of more than 6 billion tonnes.
"We have lost some time there due to ownership disagreement," Davaatsedev said.
Coal production in the Tavan Tolgoi region had been expected to rise quickly and sharply if the government had approved the ownership structures.
Mongolia needs foreign participation to expand mine exploration, improve infrastructure facilities including rail, road, power and communication links besides revamping its laws, Davaatsedev added.
"Mongolia even does not have enough machines and equipment, or the technology, to perform regular checks on coal exports at its customs and inspection departments," he said.

Source: Reuters

Read More

Khan Sets Out Development Plan for Dornod Uranium Project in Mongolia

TORONTO, ONTARIO--(Marketwire - Sept. 28, 2009) - Khan Resources Inc. (TSX:KRI) today announced its development plan for the Dornod Uranium Project ("Project") in the Republic of Mongolia. Aker Solutions of Toronto completed a Definitive Feasibility Study ("DFS") for Khan in March 2009, which demonstrates an internal rate of return after tax of 29.1% for the Project at a long-term uranium price of US$65 per lb. of U3O8, and assumes a three year construction period after the awarding of engineering contracts. "The DFS confirms that Khan's Dornod Uranium Project is one of the most economic of the next generation of uranium mines and is poised to come into production in short order during the period of expected higher uranium prices," said Martin Quick, President and CEO of Khan.
Step One in the development plan is negotiating and obtaining an Investment Agreement from the Government of Mongolia. Mr. Quick added that "We are encouraged by the recent progress achieved by Ivanhoe and Rio Tinto on negotiating an Investment Agreement on their Oyu Tolgoi copper gold project and we are prepared to immediately commence negotiations with the Government of Mongolia. Recent discussions in Mongolia with our joint venture partners indicate a desire by all to advance the development of the deposit." Khan holds a 58% joint venture interest in Central Asian Uranium Company, Limited ("CAUC"), which in turn holds a mining license on the Main Dornod Property. Other joint venture partners are the Russian state-owned company JSC Priargunsky, which holds a 21% interest in CAUC, and MonAtom, a Mongolian state-owned entity, which holds the remaining 21%. Khan also holds a 100% interest in an adjacent exploration license area, known as the Additional Dornod Property. CAUC and Khan are in the process of re-registering the mining and exploration licenses under Mongolia's new Nuclear Energy Law.
As set out in and current as of the date of the DFS, the probable mineral reserve prepared by P&E Mining Consultants Inc. for the Deposit No. 2 open pit and the Deposit No. 7 underground orebody is 18.0 million tonnes at an average grade of 0.133% U3O8 for 52.9 million lbs of U3O8 out of the 64.3 million lbs U3O8 of indicated mineral resources. Khan has a 58% interest in Deposit No. 2 and two-thirds of Deposit No. 7, plus a 100% interest in the remaining one-third of Deposit No. 7. This ownership gives Khan an overall interest of 69% of the uranium contained in both deposits.
Khan's Dornod Uranium Project is expected to generate substantial economic benefits to the Government and people of the Republic of Mongolia. At an expected mine life of 15 years and assuming a long-term uranium price of US$65 per lb U3O8 with a through-put of 3,500 tonnes per day generating an average annual production rate of 3.0 million lbs U3O8 at a cost of US$23.22 per lb U3O8 or US$58.26 per tonne of ore, the DFS estimates total payments of approximately US$464 million for royalties and corporate income taxes to the Republic of Mongolia. Mr. Quick added: "The Project will operate in a high unemployment region of Mongolia, the Dornod Aimag, where we plan an employment level of approximately 933 persons during the peak employment year, with an average of 97.5% Mongolian nationals over the life of the project. Khan's plan is to build a mill and extract the maximum economic value for the Dornod project, and not to export unprocessed ore."
Step Two is financing the Dornod Uranium Project. "We need clarification under the newly enacted Nuclear Energy Law as to Mongolia's desired ownership level, and assurances that the Government of Mongolia and JSC Priargunsky of Russia will both fully fund their share in the Project before proceeding to seek project financing", said Mr. Quick. "We believe the strong economics of the Project, with the expected high internal rate of return and a net present value of US$276 million after tax, using a 10% discount rate, will allow a fairly high ratio of project debt." Currently, the Government of Mongolia and JSC Priargunsky each hold 21% interests in Mining License 237A, which together approximate 31% of the total Dornod Uranium Project resource.
Step Three is the construction phase. Martin Quick said: "We are optimistic that we will be able to reduce the estimated US$333 million in capital expenditures. In particular we will investigate the use of pre-owned mill equipment in order to reduce the cost of the mill which is currently estimated at US$110 million." The projected development combines the underground mining of Deposit No. 7 in years 1 to 15 with open-pit mining for Deposit No. 2 in years 8 to 15. Khan intends to use the resin-in-pulp method recommended by Aker Solutions. Mr. Quick added: "We believe the resin-in-pulp method is the best recovery technology for the project which will yield an average recovery rate of 88% for the combined No. 2 and No. 7 deposits." Successfully implemented in East Africa and Russia, the resin-in-pulp method simplifies the conventional uranium processing circuit by eliminating the need for the more expensive and fire prone solvent extraction step.
Khan has completed a substantial amount of work at the Dornod site to date to ready the Project for the construction phase. From definition drilling to prove-up the uranium resource and detailed metallurgical test work, through to a comprehensive Environmental Impact Assessment and the recently completed DFS, Khan and its subsidiaries have invested over US$20 million to lay the ground-work for this next phase. On-site, a 70 person self-contained camp has been built, lined settling ponds have been constructed in preparation for mine de-watering, and work is being completed on a 27 km power line bringing main-line power into the project from the Choibalsan generating station.
James Doak, Chairman of Khan said: "Khan intends to develop the Dornod Uranium Project in such a way as to maximize the value to our shareholders by avoiding unnecessary dilution in the project financing. We would like to produce uranium into the anticipated strengthening phase of the uranium cycle starting in 2013. Our shares are trading at close to their per share cash value and we are looking forward to demonstrating the Dornod economics to the marketplace." Added Martin Quick: "We acknowledge the legitimate interest of the Government of Mongolia in ensuring that its people benefit from the uranium and other natural resources in Mongolia. We remain committed to working constructively with the Government to demonstrate that this can be achieved while still respecting our legal rights. We encourage the Republic of Mongolia to expedite the Investment Agreement necessary for Khan to proceed with this Project, which is expected to bring significant economic and social benefits to the Republic of Mongolia in general and the northeast Dornod region in particular."
Khan's ability to negotiate and obtain an Investment Agreement from the Mongolian Government and to bring the Dornod Uranium Project into production in accordance with its current development plan will depend on, among other things, Khan successfully re-registering the Dornod mining and exploration licenses under the new Nuclear Energy Law, and Khan and its joint venture partners successfully negotiating and entering into an updated joint venture development agreement. Khan is currently in the process of re-registering the licenses and taking other steps as part of its long-term and continuing objective of bringing the Dornod Uranium Project into production while at the same time enhancing shareholder value. There can be no assurance as to the timing or ultimate success of achieving a satisfactory Investment Agreement or these other steps. Reference is made to Khan's September 11, 2009 news release providing an update on the new Nuclear Energy Law and other developments. Khan will continue to provide further updates concerning this and other developments in Mongolia as information becomes available.
NI 43-101 and Qualified Persons
As previously disclosed by Khan, Hrayr Agnerian, P.Geo., Associate Consulting Geologist at Scott Wilson Roscoe Postle Associates Inc., E.J. (Gene) Puritch, P.Eng. and Malcolm Buck, P.Eng., P&E Mining Consultants Inc., and Les Heymann, P.Eng., Senior Process Consultant, Aker Solutions, are the qualified persons (as defined under National Instrument 43-101) on the Project and supervised the preparation of the technical information contained in the prior news release issued by Khan on March 11, 2009 in respect of the results of the DFS, which formed the basis for the technical information reproduced in this news release.
Reference is made above to Khan's March 11, 2009 news release with regard to the results of the DFS. Reference is also made to the DFS, a copy of which has been filed on SEDAR. Both documents are available on SEDAR at www.sedar.com. Pursuant to National Instrument 43-101, Khan cautions investors not to assume that any part or all of Khan's mineral resources constitute or will be converted into reserves and that mineral resources that are not mineral reserves do not have demonstrated economic viability.
Forward-Looking Statements and Information
This press release may contain forward-looking statements and forward-looking information, which are subject to certain risks, uncertainties and assumptions. Forward-looking statements and information are characterized by words such as "will", "plan", "expect", "project", "intend", "believe", "anticipate", "forecast", "schedule", "estimate" and similar expressions, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements and information are not historical facts and are based upon a number of estimates and assumptions and are inherently subject to significant business, social, economic, political, competitive and other risks and uncertainties, contingencies and other factors. A number of factors could cause actual results to differ materially from the results discussed in such statements and information, and there is no assurance that actual results will be consistent with them. For further details, reference is made to the risk factors discussed or referred to in Khan's annual and interim management's discussion and analyses and Annual Information Form on file with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Such forward-looking statements and information are made or given as at the date of this news release, and Khan assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.
Khan Resources (TSX:KRI) is a Canadian company engaged in the acquisition, exploration and development of uranium properties. Its current activities are focused on the Dornod area in northeastern Mongolia, the site of a former Russian open-pit uranium mine. Khan holds interests in the Main Dornod Property, licensed for mining, and in the Additional Dornod Property, licensed for exploration. The Company's website is www.khanresources.com.
For more information, please contactKhan Resources Inc.Martin QuickPresident & CEOOffice: 416.360.3405mquick@khanresources.comorThe Buick GroupJonathan BuickOffice: 416.915.0915, Ext. 302or Toll Free: 1.877.748.0914jbuick@buickgroup.com

Read More

Mongolia Said to Delay Signing of Ivanhoe’s Mining

Sept. 28 (Bloomberg) -- Mongolia’s government will delay for a few days the conclusion of an accord to let Ivanhoe Mines Ltd. develop the country’s Oyu Tolgoi copper and gold deposits, three officials familiar with the situation said.
The agreement, which President Tsakhiagiin Elbegdorj hoped to seal Sept. 30, will be delayed until the end of this week or next because of scheduling conflicts, according to officials at the parliamentary office, minerals and foreign-affairs ministries, who declined to give their names.
The deposits, situated about 80 kilometers (50 miles) north of Mongolia’s border with China, were described by Rio Tinto Group in 2006 as “the world’s largest undeveloped copper-gold resource.” In March 2008, Vancouver-based Ivanhoe estimated the copper resources in the project at 78.9 billion pounds (35.8 billion kilograms) and the gold resources at 45.2 million ounces.
Mongolia is seeking $25 billion of overseas investment in mining over the next five years, Prime Minister Sanjaa Bayar said July 17. Ivanhoe may invest between $30 billion to $50 billion during the mine’s 30-year lease.
Mongolian president Elbegdorj said in a Sept. 25 interview with Bloomberg he expected the accord, which has taken six years to conclude, to be signed in September. Baast Zolbayar, the Mongolian parliament’s media director, could not be reached in the capital Ulaanbaatar to comment.
Ivanhoe spokesman Bob Williamson didn’t return a call to Bloomberg News before regular business hours.
To contact the reporter on this story: Eugene Tang in Ulaanbaatar on eugenetang@bloomberg.net

Read More

No inking of Oyu Tolgoi Investment Agreement today

Adding to frustration of stock brokers and shareholders of Ivanhoe Mines and Rio Tinto company, no pompous ceremony of inking of the Oyu Tolgoi Investment Agreement was not held today.
No word about inking the Oyu Tolgoi agreement was whispered or spoke loudly among the Government officials in Ulaanbaatar. As predicted by MonInfo, Mongolian Newswire Service, the inking of the agreement was not done today. However, it is likely within next few days..
MonInfo, Mongolian news service run by local Mongolians will continue to provide most accurate, fair, unbiased Mongolia news reports for the world....

Read and support us at mongolianviews.blogspot.com !!!!

By MonInfo, Mongolian News Service company

Read More

Prime Minister to work in Selenge aimag

Recently arrrived Prime Minister Bayar is to work in Khuder, Yoroo areas of Selenge aimag neighboring Russian Federation in the north, according to the press service of the Government. These areas are breadbasket of the country which produces much of the wheat and grain. Strong snow and dust storms hit the areas on Sept 18-21, freezing much of unharvested wheat. PM is expected to visit local agricultural companies and assess the situation.

So far, no information about whether the Oyu Tolgoi investment agreement will be signed today.
By Ganbat, MonInfo News Service

Read More

About the Hazara students on scholarship in Mongolia

The Tsahim Urtuu Holboo NGO is pleased to announce the names of three outstanding high school graduates of Hazara heritage who have been selected to receive full undergraduate scholarships to pursue studies at the prestigious National University of Mongolia on this blessed day of May 31, 2009 - the 10th year anniversary of global Mongolian Tsahim Urtuu Network (E-Station Network).
The initial account was to offer two scholarship awards that were available for the 2009-2013 academic years; however, with careful consideration of each applicant, the members of the Committee have decided to make an exception this year and award an additional third candidate with the scholarship.The Tsahim Urtuu Scholarship winners are:
- Meqdad Salehi
- Zahra Hussain Bakhsh
- Ghulam Abbas
Scholar awardees are selected from 6 finalist candidates and are judged to have the strongest record of accomplishments in school and community service and greatest potential for academic success in college.
The objectives of the Tsahim Urtuu Scholarships are outlined as follows:
• To enable intellectually distinguished young Hazara high school graduate students, their country's future leaders, to study in Mongolia.
• To help scholars gain an understanding and appreciation of contemporary Mongolia.
• To motivate scholars to act as ambassadors from the Hazara community to Mongolia and vice versa throughout their lives thus strengthening the relationship between the Hazara and Mongolian peoples.
• To promote the personal and academic fulfilment of each scholar.
The scholarships were awarded through a competitive application process. The award includes full-tuition of five years of academic study, living cost, textbook cost, medical insurance, visa fee, academic fees, transportation cost from the recipient's country to Mongolia and lodging at the university campus where the recipient will study.
The scholarship awards, totalling approximately $52 000 dollars, are being financed by donations mostly from Tsahim Urtuu Network members and Mongolian nationals abroad, and grants from Mongolian corporate organizations and professional associations.
As future leaders, with a lasting understanding of Mongolian culture, history and society, Tsahim Urtuu scholars will contribute to the establishment of relationship between the Mongolian and Hazara peoples, their governments and their institutions.
On behalf of Mongolian people, and the members of the Tsahim Urtuu Network and Tsahim Urtuu Holboo, Congratulations to Meqdad Salehi, Zahra Hussain Bakhsh, and Ghulam Abbas, the Tsahim Urtuu Scholarship winners!

The Scholarship CommitteeTsahim Urtuu Holboo NGOUlaanbaatar, MongoliaAnnounced on this blessed day of May 31, 2009
The Tsahim Urtuu Scholarship winners
Name: Meqdad Salehi
Age: 20
Place of birth: Kabul, Afghanistan
Major: Social science and Mongolian language
School: School of Mongolian Studies, National University of Mongolia
Current job/school: 12th grade student at Marefat high school
Quote from the essay: "...I entered to Marefat High School just after our return from exile... At Marefat, I learned that we have our roots in Mongolia and at the time of Chengiz Khan, our ancestors have come to this part of the world. Still I don’t know much about Mongolia... But my teachers and especially some books in Persian helped me find tens of similar words and expressions that are used both in Mongolian language and in Hazara language... My teacher used a good term: you will be the Ambassador of Hazaras to Mongolia. I would be too honored to be that one!..."
Name: Zahra Hussain Bakhsh
Age: 20
Place of birth: Bamyan, Afghanistan
Major: Network EngineeringSchool: School of Information Technology, National University of Mongolia
Current job/school: part-time English teacher
Affiliations: Young Leader's Forum
Quote from the essay: "...In 2005, after the fall of Taliban regime, I came back to my homeland to apply for higher education... I will fill the IT expert scarcity and strengthen the sustainable development of Afghanistan in particular for central zones of Afghanistan and Bamyan University which majority are Hazara ethnic there... I am not satisfied yet with what I did, I believe that I can do much better if I am trained and developed through a 5 years of higher education in Mongolia and then I will be equipped to work for Hazara community in Afghanistan..."
Name: Ghulam Abbas
Age: 20Place of birth: Quetta, Pakistan
Major: History and journalism
School: School of Social Sciences, National University of Mongolia
Current job/school: Communications officer, ActionAid-International anti-poverty agency and Daily Outlook newspaper
Quote from the essay: "...Hope for better days has always been the only inspiration for my struggles... I hope my life experiences, ambitions, thirst for getting to know about my Mongolian ancestors closely and my economic condition would make me a good candidate for the Tsahim Urtuu Scholarship at the University of Mongolia... "
The members of the "Tsahim Urtuu Scholarship Project":
The Scholarship Committee membersD.Sainbayar - Chairman of the Scholarship Committee, and Chairman of the Board, Tsahim Urtuu Holboo NGOP.Bayarmagnai - Board member, Tsahim Urtuu Holboo NGON.Baasandorj - Board member, Tsahim Urtuu Holboo NGODr. Ch.Lodoiravsal - Director of School of Information Technology, NUMDr. D.Zayabaatar - Director of School of Mongolian Studies, NUMProf. Sh.Sodnom - Director of School of Social Sciences, NUMD.Tserenbat - Head of Tsahim Urtuu Holboo NGO, London, United KingdomD.Anulan - CEO, Tsahim Urtuu Holboo NGOProf. Aziz Royesh - Board of Trustees, Marefat High School, Kabul AfghanistanReza Kateb - Asia Foundation, Kabul, AfghanistanHussain Hazara - World Bank, Kabul, Afghanistan

Read More

Hazara students from Afghanistan have arrived in Mongolia to study on scholarship

On Sept 12, three Hazara students selected to study in Mongolia under scholarship of "Tsahim Urtuu" NGO, arrived in Mongolia. Hazaras are believed to be originated from Mongolian troops of Chinggis Khaan which invaded Afghanistan in the 13th century.Hazaras suffering under the Taliban regime caused emotional bonding between the Mongolians and the Hazaras.Mongolian public started to see the Hazaras in Afghanistan as long-lost brothers and sisters which needs support and assistance.
Some Mongolian TV crews travelled to Afghanistan to establish contacts with the Hazaras.In an attempt to bring together the Mongolian and Hazara people which share same gene and ancestors dating back to Chinggis Khaan's time, the NGO selected three Hazara-Mongolian nationals to study in Mongolia for 5 year period.
Coming from repressed, conservative society like Afghanistan, the Hazara students might find Freedom and Democracy in liberal, democratic and religiously tolerant Mongolia something to cherish and love.

By Ganbat, reporter of MonInfo News Service

Read More

Letter from Mongolian civic groups opposing OT investment agreement to all shareholders of Ivanhoe and Rio Tinto

AN ALERT LETTER
ATTN: shareholders of Ivanhoe Mines Limited Co. and Rio Tinto International Holdings Limited Co., and the international community concerned about the impact of mining on the environment and ecology.
About 50 representatives of 22 civil society organizations and individuals met today at the Puma Imperial Hotel in Ulaanbaatar to discuss the most recent version of the proposed investment agreement with Ivanhoe Mines on Oyu Tolgoi. The participants expressed concern over the Mongolian government’s haste to formalize an investment contract, which has numerous weaknesses as specified below by economists, scholars, engineers, legal and development professionals. Taking into consideration the fact that: 1. The legality of the mining license itself is an issue that has been under discussion since 2005. According to which the exploration license for Oyu Tolgoi has been purchased by Ivanhoe Mines Limited Co. from BHP Minerals international exploration inc at the time when by law it would have been expired as the seller had not applied, nor paid the fee for extension of the license. ACTION: Meeting appointed persons/entities to file a case with the Administrative Court for a judicial ruling on the issues surrounding the exploration of BHP Minerals international exploration inc’s exploration license, its extension and purchase of the exploration license for Oyu Tolgoi by Ivanhoe Mines.
2. An environmental impact assessment has not been carried out formally as required by international standards for a minerals deposit of this magnitude in a fragile eco-system such as the Gobi Desert. Regardless of what the Mongolian government requires or does not require, Ivanhoe Mines and Rio Tinto have the obligation under international conventions as well as their own CSR policies to carry out a full and detailed environmental impact assessment. ACTION: The meeting reiterated the call from meetings of environmental NGOs to the government to amend the laws on land, minerals and mining to require an environmental impact assessment before a mining/exploration license is issued and agreed join efforts to demand a formal international standard environmental impact assessment and/or an audit in the Oyu Tolgoi region.
3. The Ivanhoe Mines’ statement of investment implemented to date keeps changing with every new draft of investment agreement and the deep suspicions it brings about in the absence of technical feasibility study the meeting concluded that a drastic measure is required. ACTION: Meeting agreed to send a letter to the government and political parties demanding an independent audit of investment in the Oyu Tolgoi mine to be carried out before the agreement is signed.
4. The feasibility study has still not been completed and submitted to the authorities as required by the Law on Minerals. ACTION: The meeting reiterated the position of the mining engineers and professionals that the government should not proceed with the signing of an investment agreement in the absence of a feasibility study.
5. A constitutional debate initiated by several citizens L. Tsog and B. Lhagvajav regarding constitutionality of the Law on Annulling the Law on Windfall Tax and amendments to the Law on Corporate Tax. The claim of the petitioners that law amendments were designed to fit the needs of the investment agreement for Oyu Tolgoi have been ruled by the Constitutional Court as violation of legislative due process as were submitted by government in haste. ACTION: Continue constitutional debate on these and previous 2006 amendments to the Minerals Law, package of tax laws determined as unconstitutional by the Constitutional Court Decision #06 dated May 22, 2007. Information: the proposed investment agreement is based principally on the “Minerals Law of Mongolia” enacted in 2006, the legitimacy of which is still largely questionable. In March 2007 the Constitutional Court has ruled that several provisions in the “Minerals Law of Mongolia” were enacted unconstitutionally. Other provisions of the law (ss. 5.4-5.5) are currently being reviewed by the Constitutional Court of Mongolia, for the third time, for contravening the Constitution. While negotiating the contract, government authorities of Mongolia have made several steps that contravened the Constitution and other relevant laws. The latest example was the unlawful revocation of the “Law of Mongolia on the Windfall Tax” and unlawful enactment of the amendment to the “Business Entity and Organization Income Tax Law of Mongolia” (Corporate Tax Law).
6. The working group appointed by the meeting has delivered a statement to the Mongolian Peoples Revolutionary Party and Democratic Party’s national leadership councils meetings held on September 25, 2009. The statement called upon the two parties to reconsider the decision to proceed with the investment agreement, which does not protect the interests of Mongolia as well as violates many law provisions and principles of fairness and sovereignty of a nation over its natural resources. A 34-item list of issues and problems identified by professional and the civil society organization was enclosed to this statement. The statement also called upon the MPRP to reconsider its plan to nominate Minister T. Zorigt to run for parliament as this public official is in conflict of interest as he led the government team negotiating, preparing and submitting the proposed investment agreement. The “Civil Code of Mongolia” specifies that any contract “that breaches the law” (s 56.1.1), contract “based on serious misleading” (s 58), contract “concluded as a result of fraud” (s 59), and contract “made forcibly” (s 60) is not enforceable.We would like to remind again, that the Constitution of Mongolia states that the Mongolian state will not be bound by international treaties and documents which conflict with the Constitution of Mongolia. The Mongolia public will not tolerate or bear the consequences from the acts of corrupt officials. We highly esteem your companies as important allies in extracting and processing Mongolia’s abundant mineral resources. Thus, we request that as a shareholder you encourage your companies to work with us under the principles of transparency, fairness, law and order to revise the impending contract to ensure a lasting and reliable partnership.

Ulaanbaatar, Mongolia 2009-09-25

Read More

Update # 1: Enkhbayar withdrew his name; Zorigt secured his party's nomination

During MPRP congress held one hour ago, former President Enkhbayar withdrew his name and thus allowing Zorigt, the Minerals Minister to be nominated by unanimous vote of the MPRP conference members.
By Ganbat, reporter of MonInfo News Service

Read More

The Minerals Minister Zorigt Dashdorj likely to run for by-election for his party

MPRP Ruling Council has nominated Zorigt Dashdorj, Minister of Minerals for the election this afternoon. Zorigt, the young Sinologist and elder brother of a promising government official slain by a disruntled owner of a bankrupt Savings and Credit Cooperative in 2007 started his political career from tough task of negotiating with international miners.
In constituency no.24, where President Elbegdorj elected last year, political battle for the parliamentary seat is going to be not easy. Democratic Party's district council nominated Burmaa, a woman who is seen as representative of Mongolian civic society institutions.
Both candidates have to be confirmed by the each party's congresses.Former President Enkhbayar Nambar is supported by MPRP veteran members for the nomination. However,it is likely that in a largely blue (pro-Democratic) election district, MPRP would prefer younger, career driven young official over used gun like former President Enkhbayar. In the eyes of some MPRP members, Zorigt is seen largely as inexperienced and "green". For former President Enkhbayar, it is going to be a fight for his survival in Mongolian political life. If he can't secure his party's nomination, it is likely the end for his political career.
By tonight, it will be clear who won the nomination of both parties. The election is scheduled on Oct 18, 2009. Outcome of the election is not significant enough to shift political power balance in the parliament. MPRP is going to be still dominant party in the Parliament.

By Ganbat, Reporter of MonInfo News Service

Read More

Polo Resources interested in little Tavan Tolgoi

Following letter of Polo Resources addressed to Batbold Sukhbaatar, Minister For Foreign Affairs and Trade has surfaced in Mongolian media lately. The letter is dated Jan 18, 2009. It expressed the company's interest to develop a small part of Tavan Tolgoi,coking coal mine in South Gobi aimag. Tavan Tolgoi, reputedly one of world's largest coking coal mines is to be auctioned off by Government of Mongolia soon, with government holding 51% interest in it.

Minister Batbold referred the letter to Zorigt, Minister of Minerals. It is not clear what action the Minerals Minister took. However, Polo Resources may have missed deadline for submitting bid documentations.

Here is transcript of the letter for our readers' interest.
MonInfo News Service

18 Jan, 2009 To:Honorable Minister S.Batbold, Minister for Foreign Affairs Mongolian Parliament Re:Interest in Tavan tolgoi project Dear Sir, I would like to firstly congratulate the new government on all the great initiatives I have witnessed since the election and that Mongolia has managed to keep a positive attitude in tough world times; it is a credit to the hard work by the current Government. The purpose of this letter is to allow us to introduce our group's involvement in Mongolia and indicate our desire to make a bid for a small part of Tavan Tolgoi. Our Group is a Joint Venture of three companies including a Publicly Listed London Company-Polo Resources Limited, MG Capita (who represents the interests of EBRD and other financial institutions and American Listed Company-Peabody Energy (world's largest coal company) who is currently farming into our joint venture. Polo Resources LLC currently holds 60 coal and 26 Uranium licenses in Mongolia and is active in developing several coal mine projects including the Ereen mine in Bulgan Province(2 Mtpa), Banner Project (2 Mtpa) in Tavan Tolgoi and Union Project in Tuv Province (2 Mtpa). We have also developed good relations with Chinese offtake groups and have offices in China and London. As you are aware Peabody has lodged as a sole bidder for a larger portion of Tavan Tolgoi and this bid which also includes Peabody (25%) share is on the basis of targeting a smaller part of Tavan Tolgoi. It should be considered that this smaller bid is tailored for a quick start approach to assist in generate cash immediately for Mongolia. Some of the benefits of our project proposal are:
Small Immediate Project-only 7% of the total resources
Separate License 11943X with appromixately 500Mt of coal defined
Faster development-full production in 1-2 years
Government receives tax & royalties from start of project
All infrastructure needed is included
World Class mine established with world class standards
Government receives -US$2.1 bn over 10 years as equity, royalties and taxes

Read More

Prime Minister Bayar not yet back from South Korea; signs of delayed inking of Oyu Tolgoi Investment Agreement

As of this evening, still no sign of Prime Minister Bayar.... According to Government Press service, he was due to come home on evening of Sept 23, 2009 from Seoul, Korea after going through intensive medical care there. Cabinet meeting on Wednesday was chaired by Deputy Premier Altankhuyag. No explanation or comment has been issued by the Press office.

Meantime, President Elbegdorj is in New York attending UN Conference on Global warming. So far, President Elbegdorj met with Thomas Friedman, author of "The world is Flat" and Hernando De Soto, author of "Mystery of Capital"books and former President Bill Clinton.

Absense of Mongolian political leaders could delay inking of Oyu Tolgoi Investment Agreement despite assurances from Government officials. Officials claim all work related to Oyu Tolgoi investment agreement is going according to course.However, it is not likely to delay the signing for weeks.
Some sources said Prime Minister was to visit Australia before signing of Oyu Tolgoi investment agreement and visit a copper smelter run by Rio Tinto there.
All this signals potential delay of inking Oyu Tolgoi investment agreement. Fall session of State Great Khural due to start on Oct 1.

By Ganbat, reporter of MonInfo News wire service

Read More

Ivanhoe May Consider Selling Stake as Oyu Tolgoi Accord Nears

By Jason Scott
Sept. 23 (Bloomberg) -- Ivanhoe Mines Ltd., seeking to build the Oyu Tolgoi copper and gold project in Mongolia with Rio Tinto Group, may consider selling up to a 9.9 percent stake in the company after being approached by sovereign wealth funds.
Ivanhoe and Rio agreed to change provisions of Rio’s agreement to invest $2.4 billion in Ivanhoe to allow a sale, the Toronto-based company said today in a statement. Any sale won’t affect Rio’s accord to buy a 43.1 percent stake in Ivanhoe, the statement said.
“Several sovereign-wealth funds are among potential investors who have expressed unsolicited interest in participating in Ivanhoe’s growth opportunities,” Ivanhoe President John Macken said in the statement without specifying them. “Ivanhoe Mines and Rio Tinto also have agreed to cooperate in considering potential investments in Ivanhoe by one or more strategic shareholders,” the statement said.
Ivanhoe has tried for more than six years to reach an accord with Mongolia to mine Oyu Tolgoi and benefit from demand in China, the biggest metals buyer. Mongolia’s government would like to sign a final agreement “as soon as possible,” Minister of Mineral Resources and Energy Dashdorj Zorigt said Sept. 9.
Rio, based in London, has also agreed with Ivanhoe to change their accord to allow it to delay the Oct. 27 deadline for the second stage of its planned investment in Ivanhoe. The deadline will be delayed in 30-day increments until “either until the completion of an approved, unconditional investment agreement for Oyu Tolgoi, or until April 27, 2010,” the statement said.
“Rio Tinto is committed to its partnership with Ivanhoe in developing Oyu Tolgoi,” Bret Clayton, Rio’s chief executive of copper and diamonds, said in the statement. “We have made good progress with the government of Mongolia and expect to sign the investment agreement shortly.”
Oyu Tolgoi is about 80 kilometers (50 miles) north of Mongolia’s border with China. Ivanhoe in March 2008 estimated the copper resources in the project at 78.9 billion pounds and the gold resources at 45.2 million ounces. Rio, the world’s third-largest mining company, called Oyu Tolgoi “the world’s largest undeveloped copper-gold resource” when it agreed to buy 10 percent of Ivanhoe in 2006.
To contact the reporters on this story: Jason Scott in Perth at jscott14@bloomberg.net;

Read More

Prime Minister Bayar is expected to come back to Ulaanbaatar tomorrow on Sept 23

According to Press service of the Mongolian Government, Prime Minister Bayar Sanjaa is due to come home tomorrow afternoon from Seoul, South Korea where he underwent through medical treatment.

Earlier, the press service said the Premier will come on Sept 21.

By Ganbat, reporter of MonInfo News Service

Read More

South Korean company acquires copper deposit in Mongolia

Freegood Acquires $24 Million Copper Mine from Mongolia
Seoul (Korea Newswire) September 22, 2009 11:33 AM -- A South Korean venture company has acquired a cooper mine worth 30 trillion won (roughly $24.82 million) with an estimated reserve of 5 million tons in Mongolia. Freegood Inc. which specializes in development of natural resources announced on September 2 that, the company has acquired a copper mine located in Undur Naran from Ivanhoe Mines Mongolia Inc., a Canadian mine developer Ivanhoe Mines Ltd.(TSX:IVN, NYSE:IVN)'s subsidiary company in Mongolia. Undur Naran is located about 450 kilometers from Southeast of Mongolia’s capital city Ulaan Bator. Freegood will be developing a mine that spans 332㎢ which is equivalent to about half the size of Seoul City in Korea. Ivanhoe Mines acquired the mine in 2004 after confirming reserves of copper, gold and molybdenum through a variety of methods including satellite search, aero magnetic and ground magnetic.
Professor Lee In-seong of the School of Earth and Environmental Studies at the Seoul National University who analyzed the Ivanhoe Mines’ report on the mine with the request from Freegood said, “Given a copper grade of the 0.3-0.5 percent range in stone samples excavated from the region, the total cooper reserve is estimated to be some 58 million tons.” “The company has taken over the mine independently without forming a consortium. The company cannot disclose the actual acquisition price.” said CEO Oh Suk-min of Freegood. “Since the company calculate the size of the reserve for development purpose at 10 percent of the estimated reserve, the company’s conservative estimation of the reserve is some 5 million ton. Given the current copper price is around $6,000, the value of the mine nears a minimum of 30 trillion won,” said Oh. “The region is blessed with a good environment to develop resources, and also has plenty in social overhead capital. Extra research and actual excavation in 2010 are to be determined within this year,” Oh added. About Freegood Inc. Freegood Inc. is ore development company in south korea. Freegood Inc. beginning with management consulting in 2007 to overseas ore development business in 2009. The company has acquired a copper mine located in Undur Naran from Ivanhoe Mines Ltd.(IMMI : Ivanhoe Mines Mongolia Inc.). and now developing copper and gold mines in the Undur Naran area, Mongolia, and will expand the areas in the future into various overseas resources development businesses to become a leader in the area of overseas resources development. For more information, please visit www.freegoods.co.kr or email us at pr@freegoods.co.kr About Ivanhoe Mines Ltd. Ivanhoe Mines is an international mining company with operations focused in the Asia Pacific region. Ivanhoe‘s core assets are its world-scale Oyu Tolgoi copper and gold mine development project in southern Mongolia, its large shareholdings in Mongolian coal miner SouthGobi Energy Resources (SGQ:TSXv) and in Ivanhoe Australia (IVA:ASX), an Australian copper-gold-uranium exploration and development company. Ivanhoe Mines’ shares are listed on the Toronto, New York and NASDAQ stock exchanges under the symbol IVN. For more information on Ivanhoe Mines, please call Ivanhoe's Investor Relations at +1.604.688.5755 or email us at info@ivanhoemines.com. News Source: Freegood Inc.

Read More

Northern People: Helmets for Mongolia by Northern Michigan's Daily Newspaper

Kids in Mongolia race but have no protective gearBy MARTA HEPLER DRAHOSmdrahos@record-eagle.com
MAPLE CITY -- Chelsey Phelps has been riding horses since she was 5, the age thousands of children in Mongolia begin racing horses professionally.
Except in Mongolia, many child jockeys ride without protective gear such as helmets, resulting in hundreds of deaths every year, Phelps said.
It's a crisis the Traverse City College Preparatory Academy student is determined to help solve as part of the 4-H horse club, Hidden Beech Equestrians. The Leelanau County club has been working since May to collect used riding helmets to send overseas in partnership with American Peace Corps volunteer Alexandra Yang.
The project began when club leader Eleanor Miller read a letter to the editor by Yang in a leading horse magazine. Yang is a Peace Corps volunteer serving at the Baruun-Urt Children Development Center in Mongolia, part of a group working to equip child jockeys with durable saddles. Because of the agency's limited funds, Yang is seeking help in providing the young racers with riding helmets.
After Miller tossed the idea out to her club during a planning meeting, Phelps, 17, adopted it as her 4-H community service project. Then she got the rest of the club on board.
"I know a lot of kids here that love horses and love riding, and I can't imagine having to ride without the same protection and rights to protection, and being forced, whether they want to or not, to race," said Phelps, who competes with her thoroughbred show hunter, Diesel, in 4-H and regional Stepping Stone Horse Shows.
So far the club has collected about a dozen helmets through e-mails and phones calls to local barns, helmet companies and other equine organizations. But many more are needed, Phelps said.
"So far it's been very hard, but it's something we really want to push," she said. "People are having trouble letting go of some of their personal things. And because of the economy, more people are trying to reuse or pass it on."
Miller said the club, based at her Cedar farm, has always been committed to community service projects. But this one has a special appeal to the group's 18 members, ages 9 to 18.
"In the past, we've always given money to a horse rescue organization and then we've gone down and helped with the horses," said Miller, who also coaches Leelanau Horse Bowl teams and has been an instructor for the 4-H Therapeutic Riding program in the five-country area. "This is a way to expand their horizons and interest in what use and value people in other countries place on their horses."
Since long before the time of Chinggis (Genghis) Khan, horse riding has been a popular tradition in Mongolia.
Each July, Mongolians gather to celebrate the "Naadam" Festival, in which participants compete in three sports: archery, wrestling and horse racing. More than 30,000 child jockeys between 4 and 10 race their ponies over a 12- to 28-kilometer course in what has been called "the world's longest horse race." An estimated 5 percent of the young riders fall off during the event.
Miller said the club plans to mail the helmets it collects near the end of October.
"They have no protection, so any protection they can get is better than none," Phelps said.
To make a donation, e-mail chellybelly005@aol.com.

Read More

85% Of All Mongolia's Mobile Phone Subscribers Are In Ulaanbaatar

New report provides detailed analysis of the Telecommunications market

Published on September 19, 2009by Press Office(Companiesandmarkets.com and OfficialWire)LONDON, ENGLAND

Mongolia - Telecoms, Mobile & Internet
Since the Mongolian Government's telecommunications reform program in the mid-1990s, there has been effective liberalisation of all market segments, partial privatisation of the fixed-line incumbent operator, Mongolia Telecom, and establishment of an independent regulator. Mongolia acceded to the WTO in 1996.Competition is in place for both fixed and mobile telephony, including local, long-distance, and international, Internet, VoIP, and VSATs. The Internet market is a small but growing sector. Government initiatives such as the e-Mongolia National Program are helping to spread Internet awareness and usage throughout the country.

While the fixed-line network has been expanding slowly, the mobile phone market has undergone a remarkable boom, with the number of subscribers growing at an average rate of over 100% year-on-year for a number of years. The national policy has been to have a competitive telecommunications segment with two CDMA and two GSM mobile telephone service operators. Accordingly, two additional mobile licences were awarded in 2005/06 to Unitel (GSM) and rural mobile operator G-Mobile (CDMA).As part of the transition to a market-based economy, Mongolia committed itself to modernising its telecommunications network and steadily introducing advanced communications services. The government considers national infrastructure development as a high priority and, in particular, it has focused on the development of the telecoms sector, seeing it as central to the overall development of the country, the improvement of living standards, increasing foreign investment, boosting tourism and private sector development, and implementation of innovative changes.Key highlights:Not all areas of Mongolia are connected to the Internet. However, good progress has been made, with most universities and research institutes, government organisations, agencies, banks, and companies in Ulaanbaatar being online. Market penetration continues to remain strong in the urban centres. Although, the rural sector is catching up with over 50% of provincial centres having high speed Internet access.Although approximately 80% of Internet users still use narrowband connections, the number of e-commerce services such as e-banking, online shopping, and e-services are slowly being established in Mongolia. This is partly attributed to a government initiative established in 2005 called the One Home One PC program providing low-cost computers for around US$250. As a result, nationwide PC penetration increased by 60% and continues to rise steadily.In what is promising to be Mongolia's first real broadband network, MCS Electronics started implementing a two-year Fibre to the Building (FttB) project covering all Ulaanbaatar districts, major buildings, hotels, schools, and government houses.Poor infrastructure for fixed-line phones has contributed to the explosive growth of Mongolia's mobile industry, with the number of subscribers growing at an average rate of over 100% year-on-year. Subscribers are primarily in urban areas - 85% of all subscribers are in Ulaanbaatar.In April 2009 MobiCom launched the first high-speed mobile broadband network in the country, making use of HSPA technology. The company plans to introduce mobile broadband services to its subscribers across Mongolia, starting in the capital Ulaanbaatar where about 40% of the country's 3 million inhabitants live. MobiCom plans to offer a range of new services, such as high-speed mobile Internet access, video telephony, MMS and other innovative multimedia services related to e-health and e-commerce.For those needing high level strategic analysis and objective analysis on Mongolia, this report is essential reading and gives further information on:The jointly implemented project by the World Bank and the Mongolian Government called ‘Improvement of Information Telecommunication Infrastructure'. The fund was set up for the purpose of bringing telecommunications to rural and remote areas, at the same time expanding services and improving service quality. The project is due to be completed by the end of 2011.Renewed efforts in early 2009 to complete the privatisation of Mongolia Telecom. The operator continued to provide services throughout the country by leasing network assets from the Posts and Telecommunications Authority, which owned the infrastructure. Although Mongolia Telecom had been a very profitable company throughout most of the 1990s, the advent of mobile competition, international IP telephony providers and later on the substitution of international SMS for voice, all had a negative impact on its profit margins. By 2008 the major portion of its revenue was being gained through international telephone calls where the regulations meant it faced no competition.Mongolia is a small country with predominantly basic telecommunications services. The report covers trends and developments in telecommunications, mobile, Internet and broadband.Subjects include:Market and industry analyses, trends and developments;Facts, figures and statistics;Industry and regulatory issues;Infrastructure;Major players, subscribers;Internet;Mobile Voice and data markets;Broadband (FttH, DSL, cable TV).

Read More

Religious freedom association formed in Mongolia

Religious freedom supporters in Mongolia this month moved to form a national chapter of the International Religious Liberty Association (IRLA), a step they hope will encourage the government to implement greater principles of freedom of belief.If officially approved, the new Mongolian Religious Liberty Association -- comprised of religious, government and academia members -- will encourage a more literal interpretation of the nation's constitutional guarantee of religious freedom. While the government has increasingly adopted democratic principles, some experts say strict control of churches still exists in wake of the country's recent communist past."We hope Mongolia will follow the United Nations recommendations for religious freedom and that every religion and believer will live at peace and be respected," said John Graz, IRLA secretary-general.The possible Mongolia IRLA was suggested at this month's symposium on religious freedom in Mongolia's capital, Ulaanbaatar, on September 9. Among the 50 participants were representatives from academic and government institutions and religious faiths, including Baptists, Buddhists, Catholics, Mormons and Seventh-day Adventists. "This is an important step in the development of religious liberty in Mongolia," said Paul Kotanko, director of the Adventist Church's Mongolia Mission and local IRLA representative.Kotanko says Mongolians have a "deep desire for social harmony," yet traditional religions of Buddhism and Shamanism are vying for influence. Some are still wary of new religions or faiths not native to Mongolia, he said.Every church and local congregation is required to register each year with local authorities. If a registration decision is delayed, the church can be temporarily or permanently shut down, Kotanko said. Local authorities throughout the country have varying attitudes toward religions, Kotanko said. Some jurisdictions have prohibited outreach activities, he reported.Mongolia is home to some 3 million people, 50 percent of whom are Buddhist. About 40 percent claim no religion.Established in 1893, the IRLA is present in some 80 countries and is the world's largest non-sectarian forum dedicated to religious freedom.-By Adventist News Network-Glenn Mitchell contributed to this story.

Read More

Research and Markets: Mongolia Mining the Updated Q3 2009 Report - with Independent Forecasts and Competitive Intelligence on Mongolia's Mining Indust

DUBLIN--(Business Wire)--Research and Markets


(http://www.researchandmarkets.com/research/ef56a4/mongolia_mining_re) has announced the addition of the "Mongolia Mining Report Q3 2009" report to their offering. The Mongolia Mining Report provides industry professionals and strategists,corporate analysts, mining associations, government departments and regulatorybodies with independent forecasts and competitive intelligence on Mongolia'smining industry Mongolia's mining industry has great potential. Its mineral resources arelargely unexplored and unexploited. That said, the exploration that has beencarried out to date has found sizable reserves of coal, copper, fluorspar andgold. Full scale extraction of these resources has occurred at a number ofmines. In total, about 80 types of minerals have been discovered in Mongolia.However, the biggest drawback to foreign investment remains regulatory issues.In May 2009, the Mongolian government was forced to defend itself in theFrankfurt Court of International Arbitration, after it was sued for US$1bn byRussian mining company Altan Dornod Mongol. As reported by Mongol News, thecompany accuses the Mongolian authorities of taking excessive taxation fromRussian investments, claiming that the 68% windfall tax is against internationallaw as Mongolia and Russia have signed a bilateral agreement to avoid doubletaxation for companies operating between the territories. The Mongolian TaxationAuthority claims that Altan Dornod Mongol owes MNT56bn (US$39.6mn) and hassubsequently shutdown the company's bank accounts and is threatening toconfiscate its mining licenses. Meanwhile, the analyst remains concerned about ongoing delays to thefinalization of what will be a landmark agreement over drilling rights at theOyu Tolgoi gold and copper mine, although we expect the deal to be finalised inH109, with a resultant surge in FDI inflows through the remainder of 2009 and2010. Indeed, the importance which Oyu Tolgoi, and the underlying legal contractbetween the government and Anglo-Australian Rio Tinto and Canada's Ivanhoe willplay for Mongolia's growth dynamics cannot be downplayed. As the biggest foreigninvestment project in Mongolia's history, we expect the benchmark miningagreement to not only increase investment inflows in the short term, but alsoserve as the framework upon which future projects will be based. Yet, in late April the Democratic Party, which is a partner in Mongolia'scoalition government, announced its reservations about the draft investmentagreement governing the project. Though most legislators in Ulan Bator remainkeen on finalising the landmark mining deal, ongoing disagreements withinparliament continue to obstruct conclusion of the agreement. Key participants in the mining sector include: Centerra Gold, Erdene Gold,Ivanhoe Mines, QGX, Solomon Resources, and South Gobi Energy Resources (asubsidiary of Ivanhoe Mines). Key export markets include China, Canada, Japan,South Korea and the US. Key Topics Covered:* Executive Summary * Industry Trends And Developments * - Overview * - Regulatory Structure * - Recent Developments * Key Projects * - Metals * - Gold * - Copper * - Minerals * - Fluorspar * - Coal * Swot Analysis * - Mongolia Political Swot * - Mongolia Economic Swot * - Mongolia Business Environment Swot * Business Environment * - Asia Pacific Overview * - Table: Asia-Pacific Business Environment Ranking * - Mongolia - Business Environment Ranking * - Limits Of Potential Returns * - Risks To Realisation Of Returns * - Legal Framework * - Property Rights * - Physical Infrastructure * - Labour Force * - Foreign Investment Policy * - Operational Risk * Industry Forecast Scenario * - Metals Price Outlook * - Aluminium * - Table: Bmi Aluminium Forecast * - Copper * - Table: Bmi Copper Forecast * - Global Industry Overview * - Regional Analysis * - Mongolia'S Mining Industry Forecast * - Table: Mongolia Mining Industry Data And Forecast, 2006 - 2013 * Competitive Landscape * Company MonitorCompanies Mentioned:* Centerra Gold Inc * Erdene Gold Inc * Ivanhoe Mines * Solomon Resources Limited * SouthGobi Energy Resources LtdFor more information visithttp://www.researchandmarkets.com/research/ef56a4/mongolia_mining_reResearch and MarketsLaura Wood, Senior Manager,press@researchandmarkets.comU.S. Fax: 646-607-1907Fax (outside U.S.): +353-1-481-1716 Copyright Business Wire 2009

Read More

Prime Minister Bayar to come home on Sept 21

Prime Minister Bayar Sanjaa currently undergoing medical treatment South Korea, is expected to be back on Sept 21, 2009, according to his press service. Signing of Oyu Tolgoi investment agreement is expected when he arrives back from South Korea, according to sources.He also expected to pay official visit in Australia after coming home.

By Ganbat, reporter of MonInfo News Service

Read More

KPMG Representatives in Mongolia

One of world’s largest professional advisory service companies, KPMG is interested in entering Mongolian market.
Representatives of KPMG China and Korea have arrived in Mongolia for symposium “ Business Issues for Mongolian Decision makers” organized by Onch-Audit, local Mongolian auditing company. Managing partners of KPMG Korea, Young Hyo Kim, Ken Lee from Korea and David Xu, Khoonming Ho from KPMG China gave series of presentations for representatives of Mongolian businesses at Khan Palace, Kempinski hotel, Ulaanbaatar today. The presentations were titled “ Accessing International Capital Markets”, “ Investment Outlook and Fundraising Strategy”, “ Foreign Direct Investments in Mongolia from China and Korea”.
Mongolia started to use GAAP (Generally Accepted Accounting Practices), international accounting standards since 1994.However, According to Onchinsuren, Director of Onch-Audit, “there are some pervasive and fundamental issues in current Mongolian accounting and management information system. Businesses interested to invest in Mongolia lack incomplete data about economic events. Mongolian companies still have inefficient use of internal accounting control. Management accounting practice is underdeveloped in Mongolia.”
Francis Siu, China regional leader of KPMG said “ Mongolia has three distinctive advantages. These are, abundance of mineral resources like gold, copper, coal, uranium, relatively well educated young population, closeness to big markets of China and Russia.”
KPMG is a global network of professional firms providing audit, tax and advisory services.

By Ganbat, reporter of MonInfo News Services

Read More

New mining technology uncovering Mongolian gold

Tuesday September 15, 2009 12:54:19 PM GMT
GOLD-CONFERENCE/IVANHOE
By Steve James
DENVER, Sept 15 (Reuters) - Mine engineers using technology that can identify ore bodies more than 3,000 meters (10,000 feet) underground have discovered new gold and copper deposits below Mongolia's Gobi desert, Ivanhoe Mines Chairman Robert Friedland said on Tuesday.
Ivanhoe is using the proprietary "Zeus" technology -- which measures electrical conductivity to locate mineral deposits -- along a 20-km (12-mile) stretch near Ivanhoe's Oyu Tolgoi copper-gold project, he told the Denver Gold Forum industry gathering.
Meanwhile, Ivanhoe is awaiting final approval by the Mongolian government, of Oyu Tolgoi, after the country's parliament recently approved mining law changes that removed most remaining hurdles for its start-up operations.
Friedland said he was not involved in negotiations going on with the government and could not speak further about the project, one of the world's largest gold deposits, containing at least 46 million ounces.
But the Ivanhoe chief did speak about new discoveries in the area some 50 miles (80 km) from the border with China.
"Recently we found a new deposit, called Heruga, which is a 13 million-ounce gold deposit in its own right, with about 16 billion tonnes of copper," Friedland said.
He said another, as yet unnamed deposit had been located in the area, using Zeus, which was developed by a company called Goviex and is licensed to Vancouver-based Ivanhoe.
"This is non-invasive exploration technology like you would experience if you had a liver problem and needed a CAT scan or if there was something wrong with your brain and you needed an MRI.
"What we're doing is stretching enormous copper wires across he Gobi...and through those wires we put an enormous electrical current," said Friedland.
"This is technology that separates the needles from the haystacks," he said, adding that results of the survey allow mining engineers "to directly see copper and gold." The information is then sent to the drill rigs which can drill straight into the ore body, avoiding the hit-and-miss of traditional mining.
"It would be like burying a 1957 Volkswagen a mile or two deep and discerning whether it is a '57 or '58 model from the shape of the rear bumper," Friedland said.
He said Oyu Tolgoi and other discoveries will be a boon for Mongolia's economy, giving it over 100 years of mining, boosting Gross Domestic Product by 30 percent and increasing employment by 10 percent.
Mongolia's finance minister said on Aug. 25 that the agreement with Ivanhoe would be concluded within two weeks. Ivanhoe and partner Rio Tinto said they expected to sign a deal soon.
(Editing by David Gregorio)

Read More

India, Mongolia sign uranium agreement

NEW DELHI, Sept. 15 (UPI) -- India signed a civil nuclear energy agreement with uranium-rich Mongolia on Monday.
The memorandum of understanding for "peaceful use of radioactive minerals and nuclear energy" was signed during Mongolian President Elbegdorj Tsakhia's state visit to India.
According to a statement issued by the Mongolian presidency, Indian officials expressed a "willingness to cooperate in mining, especially in uranium sector."
Tsakhia pledged to support Indian involvement in the minerals sector through government policy and "mutually beneficial long-term cooperation." He said Mongolia appreciated "India's notion to develop our cooperation in the uranium sector, as we are always open to such proposals."
Mongolia claims to have 6 percent of the world's uranium reserves.
India, Asia's third-largest energy consumer, now has a nuclear power generation capacity of 4,120 megawatts, which accounts for 3 percent of its total capacity. By 2030 it hopes to boost that amount to 60,000 megawatts, Shyam Saran, special envoy to Indian Prime Minister Manmohan Singh, said Jan. 8, Bloomberg reported. But India lacks its own uranium resources.
In September 2008 India received a waiver from the nuclear suppliers' group to undertake nuclear commerce, lifting a 30-year ban on purchasing uranium. Since then, it has signed nuclear deals with France, Russia, the United States and Kazakhstan.
Although Mongolia is not a member of the NSG, it had supported India's case for an exemption at the International Atomic Energy Agency meeting prior to the NSG talks.
Nuclear experts believe that the supply of uranium is more critical for India than access to enrichment and reprocessing technology.
To meet India's domestic shortages, the company is slated to spend at least $1.2 billion to secure equity in uranium mines abroad.
India is looking to secure long-term uranium supply contracts from Kazakhstan, Canada and Brazil as it orders reactors totaling some $14 billion from overseas, said state-run Nuclear Power Corp. of India Chairman Shreyans Kumar Jain said in early June, Bloomberg reports.
Mongolia's uranium production cooperation agreement with Russia earlier this year was followed by a deal to develop Mongolia's Dornod uranium deposit in a 50-50 joint venture with Russia's AtomRedMetZoloto, reports World Nuclear News. That upset Canada-based Khan resources, which has a 100 percent stake in an exploration lease and a 58 percent stake in a mining lease related to the deposit.
Prior to that, the Mongolian government suspended exploration licenses and passed a new nuclear energy law to the surprise of Western companies that already have uranium interests in the country, said World Nuclear News.

Read More

Good Karma

Barry Jiggins is on the lookout for old medical equipment for Mongolia, writes IAN FRAZER on Sept 12, 2009 issue of “Townsville Bulletin” daily newspaper of Australia.
Barry Jiggins, radiographer, aid worker and Beatles fan, is more of a Help that Let it Beperson. He arrived in Townsville recently to promote relief work in Mongolia, in a car loaded with op-shop blankets. "I bought the blankets in Innisfail, Ingham and Townsville," he said."It's good karm, I don't believe you get anything back if you put nothing in."Last January. Mr.Jiggins founded MongoliaAid International Inc, formalising his five-year long quest to help schools and hospitals in the Central Asian nation of two million people.After seeing shortages of bedding and clothing in hospitals and schools during a tourist trip to Mongolia in 2003, he collected more than 12,000 blankets and nearly 10,500 pairs of shoes, mainly in North Queensland. He sent five shipping containers of blankets, shoes, clothing, washing machines, toys and books to Gobi desert communities between 2003 and 2008."I more or less steered the course of these ship by myself with a few key supporters," he said. "But my ambitions for the people of Mongolia far outstripped our infinite ability to reach donors."He hopes the new organization, registered as a charity in July, will collect and distribute medical equipments as well blankets and raise funds for projects such as digging wells. Goals include collecting 200,000 more blankets by 2020 to supply every hospital in the Gobi region and raising $ 100,000 for four new wells in the villages of Bayangovi and Bayanlig. Mr.Jiggins, 40, a whimsical Beatles fan, plans to name the wells John, Paul,George and Ringo. "To show my bona fides I will put up half of the $ 100,000," he said. "I am saving my pennies, although I have been extravagant with the blankets. "Water quality is an ongoing problem and wells have run down since the Soviet money disappeared."MongoliAid International has also begun acquiring medical and surgical equipment for hospitals in the capital Ulaanbaatar and in the Gobi region.The organization is seeking old anaesthetic and ultrasound machines, crutches, wheelchairs, blood-pressure machines and walking frames. One of Mr.Jiggins' colleagues at the Cairns Base Hospital recently found him a pair of old mechanical anaesthetic machines discarded on the Atherton Tableland. "They need basic items of rehabilitation that we take for granted," Mr Jiggins said. "Our mission statement is to make the world a better place, one Mongolia at a time."Mr.Jiggins, who received an Officer in the Order of Australia award in 2007 in recognition of his aid work, said he was often asked ' why Mongolia?'"When people say why not look after your own backyard? I tell them that I've travelled a bit and the world is my backyard," he said."When I am in Mongolia, it's my front yard."He says the world should take more notice of the way Mongolian people look at each other and visitors to their country."Australians with a world outlook will appreciate that no matter how much we cast ourselves as victims of the global economic downturn, Mongolians do it materially much tougher than most of us can imagine," he says on the www.mongoliaid.org.au. website. Mr.Jiggins says turning 40 earlier this year and the death of his dad, Barry senior, last year, aged 71, had reinforced his helping-hands vocation.Barry Sr was among Bribane's best-known rugby league identities, having worked for the Bulimba Stars club in a 30-year career that began by chance when he took Barry junior to his first junior league game. "Dad's legacy and what he stood for, I have never been able to take with me," he said.But he rates The Beatles' music as another important influence on his life."The Beatles didn't repeat themselves, they pushed the envelope," he said."I don't repeat myself either. That's another way of spelling boredom."

Read More