Saker falcons get new lease of life

Abu Dhabi: The Environment Agency - Abu Dhabi (EAD) said on Tuesday it signed a memorandum of understanding with the Ministry of Nature, Environment and Tourism, Mongolia, for the conservation of wild Saker falcons.

The five-year agreement aims to increase the breeding capabilities of the wild Saker falcons (Falco cherrug) by monitoring artificial nests placed throughout Mongolia for the birds, and by conducting comprehensive research and monitoring of the species.

The memorandum was signed by Mohammad Ahmad Al Bowardi, Secretary-General of the Executive Council and Managing Director of EAD and Minister Luimed Gansukh, Head of the Mongolian Ministry of Nature, Environment and Tourism, in the presence of EAD's Secretary-General Majid Al Mansouri.

The main aim of the agreement is to advance an ongoing project to increase the numbers of wild Saker falcons and help develop a regulatory system to govern the harvest and trade in wild Saker falcons in line with existing Convention on International Trade in Endangered Species (Cites) regulations.

Locally known as Hurr, meaning free, this species is the second largest falcon in the world. The Saker falcon is an important symbol of an Emirati heritage, and has sadly undergone a rapid global population decline.

There are currently an estimated 2,000 to 5,000 breeding pairs in the world.

Al Mansouri said: "In line with our commitment to promote sustainable falconry and falcon conservation, the agreement's objectives have been defined to allow us to learn more as well increase the population of Saker falcons in central Mongolia."

"By studying this species' habits and by creating nest sites where none existed previously, we are optimistic that the new population will support a sustainable harvest of Saker falcons for Arabic falconry and contribute to increasing the Saker population in Mongolia. We hope that this programme becomes a global example of how two government entities can work together for a joint cause."

The second objective of the agreement is to conduct research on the biology of the Saker falcon, to survey its population number and distribution, and to set up a long-term monitoring programme of the population in order to conserve this species for the future.

Finally, the agreement would also allow research and monitoring programmes on other raptor species, particularly those that are important to Arab falconry in line with the Convention on Migratory Species.


This memorandum is to expand a previous five-year agreement between the two parties which saw the EAD provide funding for biologists to conduct research on experimental artificial nests placed in 2006.

Fast facts: Endangered

- The Saker falcon is classified as endangered on the IUCN Red List and is listed in Appendix 2 of Cites.

- The Mongolian population is currently estimated at 2,000- 5,000 breeding pairs.

Source:Gulfnews.com

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Dreams Expand for Mongolian Woman with Disabilities

Gantuya Bazarsuren

Gantuya Bazarsuren at work in her new office

MANDALGOBI, Mongolia—As a child, Gantuya Bazarsuren dreamed of becoming a gymnast. But at age 13, while descending a flight of stairs carrying a container with water, she fell, injuring her legs so badly that she could no longer walk unaided. She was able to graduate from high school only with the help of her parents and teachers, who carried her to and from school and classes.

In the Central Gobi town of Mandalgobi, where Gantuya lives—and throughout much of Mongolia—negative perceptions of the disabled often prevent them from getting an education and joining the workforce.

There are 115,000 registered people with disabilities (PWDs) in Mongolia, according to the Ministry of Social Welfare and Labor. However, no general education schools, colleges, universities, or technical/vocational or training centers are accessible for PWDs in Mongolia. Currently, 146 teacher-training colleges and universities do not have standards for disability training or how to work with children with a disability.

After many years of practice, Gantuya mastered the use of crutches, but she remained isolated, alone, and mostly homebound.

In 2009, things began to change. She discovered programs that are part of USAID's Fostering an Inclusive Environment for Local Disabled (FIELD) Project, implemented by Mercy Corps. She began participating in trainings about NGOs, business-plan development, and disabled peoples' rights.

Since its inception in January 2009, the FIELD project has trained over 2,650 disabled people in Mongolia. In December of that year, project leaders advocated successfully for approval of "National Standards for Accessible Construction and Walkways" by Mongolia's State Department of Measurement and Standardization. As a result of the campaign, 23 accessible ramps already have been built by government and private sector agencies at their own cost, and several agencies have also modified their facilities to accommodate the needs of PWDs.

The FIELD trainings increased Gantuya's understanding of her situation and her potential. But much more important to her was the regular contact with other people and with the public, which gave her confidence and made her daily life more and more pleasant. She says that her participation in the trainings was helpful because she finally understood: “I can do something to improve my own situation.”

Gantuya did not go to university because she thought she would not be accepted by the other students. She now regrets that difficult decision.

“When I was a kid, I had many dreams, but I forgot about them while I spent so many years at my home. Now I’ve started remembering my dreams again and I want to be a writer,” said Gantuya.

A few months after the FIELD project started, Gantuya began to reintegrate into the local community. After completing a computer skills training course, she began working for a Mongolian NGO. She now earns an income and heads a disabled peoples’ group in Mandalgobi where participants are trained and exchange information.

It is a dream come true for Gantuya, who now says, “I’m no longer afraid to walk down the road anymore.

Source:USAID and Mercy Corps Mongolia (www.usaid.gov/press/frontlines/fl_sep10/p06_mongolia100914.html)

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UB observes UN International Day of Peace

In a world where the media daily reports news of human conflict and prejudice of all kinds including racial, gender, class, political and religious prejudice, Mongolia’s annual celebration of UN International day of Peace on September 21st stands out as a call for unity and peace. On this day the United Nations calls for people around the world to devote a specific time to focussing their efforts on promoting the ideals of peace. This will be the ninth year that different religious communities in Mongolia cooperated with the United Nations by joining countries throughout the world in observing the 28th United Nations International Day of Peace. During the day of Tuesday September 21st, each of the religious communities in Mongolia held prayers and meditations for peace in their various places of worship, culminating in a joint programme of prayers from all faiths around the Peace Bell in Sukhbaatar Square at 18.30 p.m. This ceremony was opened by
Ms Sezin Sinanoglu, the Resident Coordinator of the United Nations in Mongolia. She read a Peace Message from the Secretary General of the United Nations, Ban Ki-
Moon, and the event was closed by Mr. Tsedendamba, representing the President of Mongolia’s Council of Religious Affairs. On the evening of Monday, September 20th, Brahma Kumaris Mongolia prepared for UN International Day of Peace by hosting a Meditation for World Peace at the Brahma Kumaris Center in the Sukhbaatar District.
Prayers and Meditations on Tuesday September 21 at which all were welcome to participate, took place in the Meditation Room at Shedrup Ling at the Foundation for the Preservation of the Mahayana Tradition and continue at Dashchoiling Monastery, the Ananda Yoga Meditation Centre in the Sukhbaatar District, at the Baha’i Centre (Sukhbaatar District), at the Federation of Mongolian Muslim
Associations in the Bayangol District, and at the Cathedral of Saint Peter and
Saint Paul Cathedral, Amgalan. This simple ceremony demonstrated that peace is central to the spiritual teachings of all faiths, and echoes the ringing of the Peace Bell at the United Nations Headquarters every year on the International Day
of Peace. The Peace Bell in New York was cast in 1954 from coins donated
by children from 60 countries and was a gift from the UN Association of Japan. For half a century, the bell has sent a powerful message around the world about humankind’s aspiration for peace. In Mongolia our own Peace Bell was rung that day to remind ourselves of the oneness of humankind, the oneness of all religions and the need for peace, unity and tolerance among the peoples of the world.

Source:Mongol Messenger, English Weekly of Montsame-state run News Agency of Mongolia

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‘Wolf Totem’ translated into Mongolian

A novel ‘Wolf Totem’ selected as a bestseller in 2005 in China and published in 31 countries has been published in Mongolian language. The World Bank published the book within frames of its environmental program in Mongolia. Although there are many
priorities that should be resolved in frames of ‘Environment Reform-2’
project, the project team decided to make it public for Mongolians because
the novel is so close to people’s heart with its describing the everyday life
of nomads, the connection between humans and nature, their loving animals, the Mongolian way of using natural resources properly, how herders hunt wolf and how they can be friends, worshipping wolves and co-existence.
On the occasion of the 15th anniversary of WB’s Environment Program, the book launch of ‘Wolf Totem’ translated into Mongolian was held on September 20 in Khuush
Valley, Bogd Khan Mountain strictly protected area. Jiang Rong, author of the novel,
was so pleased with publishing his novel in Mongolian language that he gave the right of publication free of charge. In a preface of the book’s
translation, the author wrote, “Wolf Totem is now published in Mongolia’s
Cyrillic after having been published in over 30 languages including English,
French, German, Japanese, Italian and Spanish. It means that Mongolian wolf naturalism is coming back to the Mongolian steppe which is its own
native land of intelligence. I would like to express my extreme happiness
for it. After Wolf Totem was published in 2004 in China, there were severe
disputes. However readers welcomed it with appreciation and now it has

become one of bestsellers in recent years in China. Moreover, it gave
substantial influence even on the international market. Still, I desired
my novel to become a beloved book of Mongolians. For this reason, I wrote
an emphasis, “The book is dedicated to wolf and people of the steppe which
is well-known as prominent and to the Inner Mongolia’s steppe which was
astonished with its wonder”. I would like to write a Cyrillic Mongolian
version, “Dedicated to the Mongolian steppe which still maintains its
perfection and liberty.” In 1967, author Jiang Rong first visited the steppe boundary area near East Uzemchin, Inner Mongolia and wrote his novel inspired by the 11 years he spent in the Shiliin Gol steppe, the friendly relations he had with
Mongolians and his experiences. In the preface, he wrote, “My becoming
affectionate to Mongolia’s steppe and wolf naturalism connects that I was
fascinated to the beauty of nature and realized the more valuable thing in the
conscience of the nomadic culture. It is indicated with determined reverence
for liberal conscience from one side and with individual conscience for safeguarding nature from other side”. The novel was translated by Dr. and
Prof D. Boldbaatar and edited by poet G. Mend-Ooyo.Since its implementation in
1995, the World Bank’s Environment Program cooperates with Norwegian,
Irish, Dutch and Canadian Trust Funds, and Global Conservation Fund and conducted projects to work-out an action plan and program in the environmental sector, to intensify integrity between Buddhism and environmental management, to
conduct general environmental assessment, to carry out surveys and assessments on many spheres including strategy for waste water, land management, forestry, trading
of wild animals and environmental matters around mining, to draw up policy documents and handbooks, to train personnel as well as mobilize local citizens for protecting nature.

By B. Ooluun, reporter of Montsame news Agency

Source:Mongol Messenger, Weekly English Newspaper of Montsame, Mongolian State Run News Agency

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Jobs in Mongolia: Sandvik Mongolia LLC is looking for Logistic manager

Sandvik Mining and Construction, the world’s leading supplier of drilling and excavation machinery, equipment and tools for mining and construction industries, is currently looking for a Logistics Manager for our Ulaanbaatar office.
The primary responsibilities in this role in heading the logistics department are to oversee all day-to-day logistics and freight forwarding issues, liaising with international freight forwarders as well as an overall responsibility for the cost efficiency of the department. The qualified candidate will possess a university degree and be fluent in spoken and written English language. The ideal applicant
will also have at least 5 years experience in the field of logistics and
freight forwarding. Management experience is a plus, international experience will be seen as a major advantage.

The successful candidate will have a positive attitude and excellent communication skills. Ability to work efficiently & independently required. Excellent knowledge of Microsoft Office Applications required. Application deadline is the 13th October, 2010. Only shortlisted candidates will be contacted.
Applicants please send your documents via email to:
Gerelmaa.dagva@sandvik.com
Or contact:
Sandvik Mongolia LLC, Ulaanbaatar Office, Mrs. Gerelmaa
Dagva Tel. 11 331930

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Burkhan Khaldun Mountain under special protection

Site of Mongols history and Chinggis Khaan birthplace to be preserved in its natural state

On September 20, President Ts.Elbegdorj issued a decree to conserve the natural virginity of the Burkhan Khaldun Mountain and to safeguard Mongolian historical and cultural memorials, based on suggestions and opinions of scholars, researchers and citizens.The Burkhan Khaldun Mountain is a historical place where historical events
connected with the great history of the Mongolians and life of Chinggis Khaan
took place. With the decree, President reveres traditional custom and declared
performing ritual worship for Burkhan Khaldun Mountain on a new cairn located
near the foot of the Mountain’s supreme cairn.Moreover, the President instructed the
Government to define the unique natural and cultural valuables of the Burkhan
Khaldun Mountain and its surroundings and work-out a proposal to have it registered on UNESCO’s World Heritage.

The President also appealed to all government and non-government organizations, figures of scientific, historical and cultural spheres and individuals to
organize a wide-scope of efficient activities in relation to studies, and to protect the historical and cultural heritage regarding Chingis Khaan’s biography and publicize it around the world.

Source:Mongol Messenger, Mongolian English Weekly of Montsame News Agency

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Ravi Shankar makes his 3rd visit to Mongolia

On September 16, Deputy Prime Minister M.Enkhbold met with Sri Sri Ravi Shankar, an Indian spiritual Guru- leader and founder of the ‘Art of Living’ humanitarian organization. He visits Mongolia for the third time.

M.Enkhbold expressed his satisfaction with meeting Ravi Shankar, a teacher Guruji “who has helped thousands of people in Mongolia and around the world and
who devotes his life to healthy life and the bests of the humankind”. He underlined that Mongolians fully support Sri Sri Ravi Shankar, and that many people enjoy the benefit of training of the ‘Art of Living’ organization.
“I am confident that thousands of Mongolians wanted you to come here,” M.Enkhbold said and wished Ravi Shankar to enjoy a comfortable stay in Mongolia.
In response, Mr. Shankar mentioned the 25th anniversary of the ‘Art of Living’ organization, which took place in Bangalore, India with the participation of some two million people, and invited the Deputy Prime Minister to take part in the 30th
anniversary of the organization which will take place in February of 2011 in Germany.

Source:Mongol Messenger, Mongolian Weekly Newspaper of Montsame News Agency

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Entertainment that soars in Mongolia

In western Mongolia, a festival like no other showcases highly trained eagle hunters, children in hell-for-leather horse races and the odd sport of kokpar. Photo taken by Jainine Murphy

Hunters spend years training their horses and birds (captured as eaglets) to work together.Photo taken by Jainine Murphy

The youngest hunter at the festival is 13. Photo taken by Jainine Murphy

Jason Murphy

MONGOLIA — From Saturday's Globe and Mail Published on Friday, Sep. 17, 2010 11:25AM EDT Last updated on Wednesday, Sep. 22, 2010 12:03PM EDT

One eagle hunter is impressive. Put 50 together and you have one of the greatest aerial and equestrian shows on Earth.

The first hunter of the competition is a respected veteran (age takes precedence in western Mongolia). He kicks his stallion lightly and trots to the end of the arid plain. There, at the base of a jagged mountain, he wheels and surveys the area coolly with a face as brown and leathery as a withered potato. His ear-flapped hat is lined with marmot fur and his robes are made entirely of fox pelts – a sign of successful hunts.

The stallion snorts and paws the dusty ground. Its bridle is studded with medals from past competitions and its wooden saddle is filigreed with silver.

These two are good and everyone knows it. There are 600 people lining this field and even the judges – three elders seated at a table on a flatbed, smoking cigarettes impassively behind battered aviator sunglasses – lean forward in anticipation.

The hunter's son has climbed the mountain with his father's prized possession, a mature female golden eagle (the females are the bigger and better hunters). She is hooded with a fitted leather cap topped with garishly dyed falcon feathers. A colourfully embroidered cape is draped over her back.

At a signal from the father, the cape and hood are removed and the eagle pertly scans the field with eyes eight times stronger than a human's.

I'm standing next to the flatbed and can see her yellow irises from here.

The hunter screams “haaaaaayooor!” and the stallion breaks into a sudden gallop, away from the mountain and straight toward the judges' table. The son hefts the eagle. She flares her wings and glides off his arm, circling the mountain once on a thermal draft before she locks onto the rider. He is looking back over his shoulder calling her with that “haaayoor!” shout as the stallion pounds toward the flatbed.

He has already covered half the plain when the eagle gives a cry that echoes his and swoops towards him. Forty metres before the flatbed, her trajectory grows shallower on final approach toward the rider's outstretched arm. The horse looks like it fully intends to run straight through those old judges. Fifteen metres out, the eagle catches the hunter's arm, wrapped in a thick sheepskin mitt to protect it from talons sharp and strong enough to decapitate a mountain goat. Horse, eagle and rider pull up just in front of the flatbed in a cloud of dust, whinnies and flaring wings. The crowd roars and the judges hold up scorecards, smiling now. The hunter soaks it all in for a second, mouth curved upward slightly, then kicks the stallion again and trots off the field as the next hunter rides out to try to duplicate the performance.

One eagle hunter down. Forty-nine more to go.
We're just outside Olgi, the small capital of Bayan-Olgi province in western Mongolia, to witness the annual Eagle Festival. This region is Mongolia's most remote, stretching toward Kazakhstan in the west, with China to the south and Siberian Russia to the north.

Modernity's hold is tenuous here. Paved roads end shortly outside Olgi and the population is mostly composed of semi-nomadic, ethnic Kazakh herders. They follow their goats (prized for their fine cashmere wool) between seasonal grazing grounds, living in round, wood-framed woollen tents called gers (also known as yurts). Horses outnumber cars and you're as likely to see a shaggy, Bactrian camel carting a family's goods as a truck.

Hunting for fur-bearing creatures may only be recreational these days, but owning a trained golden eagle is still a point of pride. Eaglets are captured from nests before they fledge. They are then painstakingly taught to land and perch on their master's arm, to soar above him while he rides across a hunting ground flushing out marmots, foxes and small wolves, and then to hold and kill a target without destroying the pelt. The training of hunter, horse and eagle takes years.

I watch several more eagle performances like the first before wandering off to take in some of the festival's other sights. A crowd gathers around two riders engaged in a game of kokpar. Each rider grabs one leg of a goat carcass and tries to pull the body out of his opponent's grasp. They circle with the carcass held between them, contorting in their saddles for leverage, the horses snarling, until one rider suddenly loses his balance and nearly falls. His opponent's horse senses the opportunity and bolts through the crowd for open ground. The losing rider hangs on to the goat for a few seconds more, his head centimetres from the ground and eight pounding hoofs, before admitting defeat and letting go.

No festival of any kind in Mongolia is complete without a horse race. The jockeys, mostly boys under 10, assemble in a rough line near the flatbed. A shout from one of the elders sends them off on a bareback circuit of the mountain and the plain. The horses run for 20 minutes at a full gallop. As they approach the finish line, a crowd rushes to greet the winner. The rider is shirtless, grinning, coated in sweat and dust. His mottled grey mount is foaming at the mouth but still tossing its head, ready to run. The boy is carried away by his father and beaming relatives like a victorious quarterback.

At the edge of the plain, local merchants sell eagle paraphernalia, embroidered carpets, colourful wall hangings, candy and toys, all spread out on the hoods of their jeeps. A few hunters have set up their gers. Another group is seated in a large circle on the ground, passing around a vodka bottle and making toasts to a good year's hunting. Young men are competing in a contest where rags are laid out in a weaving line across the field for riders to pick up at a full gallop while leaning from the stirrups. The roars of approval for a perfect run are exceeded only by those given for spectacular and/or drunken falls (the vodka has been flowing freely since sunrise).
The eagles share the spotlight with these other events for a little while, before reclaiming it in spectacular fashion. The hunters are in the middle of a new demonstration where they drag a piece of fox fur on a long string behind their horse while at full gallop. When it all goes well, the eagle is sprung from the mountain, spots the target and dives down on top of it in a flurry of dirt, fur and feathers. But one eagle has refused to play along and circles the plain lazily until it spots a little Kazakh boy, wearing a tattered, rust-coloured Washington Redskins jacket, running among the jeeps.

It's one of those dream-like moments where you know what's coming and can't do anything about it. The eagle glides toward the jeeps, locks her gaze, tucks her wings and drops 60 metres like a guided missile onto the shoulders of the running boy.

The festival explodes in shouts and screams. Every hunter, mother and tourist in range runs to the boy, who is flat on his face beneath a large, proud bird that has already started to make lunch out of the Redskins jacket. The boy is shaken but okay, and the bird is hustled away, no doubt confused over what it did wrong. Someone gets on a loudspeaker to remind everyone that the eagles are trained with strips of bloody meat, so running around wearing red clothing is not a good idea.

It's a chaotic, unscripted and very Mongolian moment. It's also a hell of an ending to day one of a three-day party.

IF YOU GO

The Olgi Eagle Festival takes place annually on the first weekend of October.

Getting there

First, fly into the Mongolian capital of Ulan Bator (Air China has daily flights from Beijing and Russia's Aeroflot flies there out of Moscow). From there, it's a two-hour flight on Aero Mongolia (www.aeromongolia.mn) to Olgi.

Accommodation

Don't expect luxury. The Tavan Bogd Hotel (976-01422-23046) has some rooms with attached bathrooms for about $30 per night. It gets more basic from there. The Blue Wolf Café rents out yurts that can accommodate four people for about $8 per person a night (bring your own sleeping bag). With advance notice, the restaurant can provide both Western and Mongolian food.

Tour Operators

Mongolia Expeditions (www.mongolia-expeditions.com), based in Ulan Bator, is staffed with excellent English speakers. Nomadic Expeditions (www.nomadicexpeditions.com) is another Mongolia specialist with offices in both Ulan Bator and the United States.

Special to The Globe and Mail

Source:The Globe and Mail newspaper of Canada

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Hamdan bin Zayed receives Mongolian Environment minister

Sep 21, 2010 - 11:05 -

Abu Dhabi, 21 Sep. 2010 (WAM) - H.H. Sheikh Hamdan bin Zayed Al Nahyan, the Ruler's Representative in the Western Region, received this evening Mongolian Minister of Environment '&' Tourism Luimed Gansukh.

Sheikh Hamdan welcomed the Mongolian official and praised the progressive bilateral relations and close cooperation between the two countries.

Sheikh Hamdan, who is the Chairman of Environment Agency - Abu Dhabi (EAD), said that the special programme to preserve Sakr falcon and other endangered birds will continue, thanks to the unlimited support of President His Highness Sheikh Khalifa bin Zayed Al Nahyan and General H.H. Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

"these programmes complement UAE's efforts in the protection of endangered falcons by re-introducing them to their natural breeding habitat," he said.

Sheikh Hamdan thanked the Mongolian Minister for the cooperation with EAD in the programme. He welcomed the Mongolian side's proposals about training and legislations that may help the environment and wildlife protection in Mongolia.

The Mongolian Minister expressed thanks to Sheikh Khalifa Sheikh Mohammed and Sheikh Hamdan for the support given to his country in preserving the Sakr falcon and in introducing the proper legislation for export of the threatened species.

He referred to the agreement signed between the UAE and Mongolia which aims at increasing the numbers of Sakr falcons within the next five years by building and monitoring artificial nesting places.

Source:WAM/MAB or Emirates News Agency

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Khan Mongolia Court Decision Not Disputed by Nuclear Energy Agency

TORONTO, ONTARIO, Sep 21, 2010 (MARKETWIRE via COMTEX) -- Khan Resources Inc. /quotes/comstock/11t!e:kri (CA:KRI 0.31, 0.00, 0.00%) ("Khan" or the "Company") announced today that the dispute period for the August 2, 2010 decision by the Mongolian Capital City Administrative Court in favour of Khan's subsidiary, Khan Resources LLC ("Khan Mongolia") has now expired. The August 2, 2010 court ruling declared that the Mongolia Nuclear Energy Agency's (NEA) decision to invalidate Khan Mongolia's exploration license covering part of the Dornod uranium property was illegal and invalid.

The Company noted that the NEA, by contrast, had elected on August 9, 2010 to appeal the court's decision on July 19, 2010 in favour of Khan's 58% owned joint venture subsidiary Central Asian Uranium Company LLC ("CAUC"). The July 19, 2010 court ruling also declared that the NEA's decision to invalidate CAUC's mining license covering the remaining part of the Dornod uranium property was illegal and invalid. This appeal is expected to be heard in late September.

Grant Edey, President and CEO of Khan, said "the decision by the NEA not to appeal the Khan Mongolia court ruling was unexpected, but we are encouraged that they have chosen not to challenge the decision. We hope that the NEA will now also choose not to pursue the CAUC appeal and that we can resolve our dispute on the Dornod mining and exploration licenses cooperatively".

Khan intends to continue to defend its rights and interests in Mongolia. In addition to challenging NEA's appeal of the CAUC court ruling, Khan has filed with the Ontario Superior Court of Justice a $300 million lawsuit against Atomredmetzoloto JSC ("ARMZ") and its affiliate JSC Priargunsky Industry Mining and Chemical Union for damages suffered by Khan due to ARMZ's continuing efforts to secure Khan's rights to the Dornod uranium project.

Khan Resources Inc. /quotes/comstock/11t!e:kri (CA:KRI 0.31, 0.00, 0.00%) 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. Khan holds interests in the Main Dornod Property and in the Additional Dornod Property. Khan's website is www.khanresources.com.

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, regulatory, competitive and other risks and uncertainties, contingencies and other factors, including the impact of international, Mongolian and Canadian laws, trade agreements and regulatory requirements on Khan's business, properties, licenses, operations and capital structure, Khan's ability to re-instate or re-register the Dornod uranium project licenses, regulatory uncertainty and obtaining governmental and regulatory approvals, legislative, political, social, regulatory and economic developments or changes in jurisdictions in which Khan carries on business, the nature and outcome of pending and future litigation, arbitration and other legal proceedings, the speculative nature of exploration and development, risks involved in the exploration, development and mining business, changes in market conditions, changes or disruptions in the securities markets and market fluctuations in prices for Khan securities, the existence of third parties interested in purchasing some or all of the common shares or Khan's assets, the method of funding and availability of any potential alternative strategic transactions involving Khan or its assets, including those transactions that may produce strategic value to shareholders, the need to obtain, maintain and/or re-register licenses and permits and comply with national and international laws, regulations, treaties or other similar requirements, and uncertainty in the estimation of mineral reserves and resources. In addition, a number of other 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.

Contacts:
Investor Relations Contacts:
Khan Resources Inc.
Grant Edey
President & CEO
Office: 416.360.3405
gedey@rogers.com

Khan Resources Inc.
Paul Caldwell
Chief Financial Officer and Corporate Secretary
Office: 416.360.3405
pcaldwell@khanresources.com






SOURCE: Khan Resources Inc.

mailto:gedey@rogers.com
mailto:pcaldwell@khanresources.com

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Taiwan, Mongolia in charter flight talks

Taipei, Sept. 21 (CNA) Taiwan and Mongolia are contemplating setting up direct charter flights to promote bilateral tourism and trade relations, a Ministry of Foreign Affairs (MOFA) official said Tuesday.

"Both sides are keen on developing closer exchanges and boosting tourism. Currently we are in talks on possible charter flights, which would benefit tourists from both sides if the deal goes through, " Lin Jinn-jong, director-general of the MOFA's Department of West Asian Affairs, said at a press briefing.

The direct charters would lower airfares between the two destinations to around US$500 from the current US$1,000, Lin said. At present, visitors must enter Mongolia via third countries, such as South Korea and China.

About 2,000 Taiwanese tourists visit Mongolia annually, Lin said. Charter flights would not only benefit tourists but also 400 Mongolian students in Taiwan.

According to Lin, although bilateral trade volume is small, the US$8.02 million in trade between Taiwan and Mongolia in the first half represented 207 percent growth compared to the first six months of 2009.

As of 2009, Taiwan is Mongolia's 15th largest trade partner and Taiwanese companies had invested US$19.65 million there.

Taiwan does not have official diplomatic ties with Mongolia, which declared independence in 1911, the year that the Qing Dynasty fell.

However, Lin said, the central Asian country is intent on improving its economy through tourism and attracting foreign investment from foreign countries, including Taiwan.

That was why the charter flight issue was raised during the 9th Taiwan-Mongolia Joint Economic Meeting, which was held in the Mongolian capital of Ulaanbaatar on Sept. 9, he said.

More than 100 participants from Taiwan's Chinese International Economic Cooperation Association and its counterpart the Mongolian Chamber of Commerce and Industry attended the meeting, which will be held in Taiwan next year. (By Chris Wang)

Source:Central News Agency of Taiwan

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Mongolia rebuilds from the ground up

ZORIGT Dashdorj's office sits in the middle of a building site close to the centre of Mongolia's dusty capital, Ulaanbaatar.

Visitors have to pick their way carefully through rubble and piles of cement as they climb the two floors to meet the country's youthful and engaging Minister for Mining and Energy.

The building where Zorigt (all Mongolians go by their first names) is being ripped apart inside and put back together. An apt metaphor for the country, in the midst of a remarkable economic overhaul due to the emerging exploitation of its vast mineral wealth, and the work it will take to lift its whole population into a better life. In the 76-person parliament dominated by a coalition of the country's two main parties the Mongolian People's Revolutionary Party and the Mongolian Democratic Party, almost everyone seems to have some sort of title. But the former senior public servant, who is with the MPRP, with his responsibility for driving the industry that will soon make up 95 per cent of the country's exports is one of the handful of key decision makers that could help the foundation of prosperity for generations. With proper industrialisation the Mongolian government has estimated its GDP could grow elevenfold to $US41 billion by 2020.

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Last week, Rio Tinto signalled its clear intentions to be a major player in Asia's resource boom-country when it upped its stake in Canada's Ivanhoe Resources, the acknowledged Western mining pioneer in China, a huge fillip for Zorigt. "CVRD (Brazil's Vale) are engaged in ever significant exploration work here, Rio Tinto has a $US5bn project (the massive Oyu Tolgoi copper mine). So the rest of the guys if they want to come, I think they should," Zorigt tells The Australian.

"The more we have large mining players in this town the better to help us grow into a significant mining country."

But the model to attract the world's largest miners, who will have the capital resources to invest in the 15 deposits designated as nationally significant, is still being developed and tested by the government.

Zorigt says deposits whose exploration was done by the government will remain 50 per cent in government hands, with a 34 per cent stake in the others. It was Zorigt who set up the government's holding company Erdenes MGL (it means treasure in Mongolian), which will hold the government stakes in its major mining deposits.

He was then tapped for a cabinet position (Mongolia allows a mixture of politicians and external experts in its executive) and last year entered parliament in a by-election.

The looming test will be the Tavan Tolgoi deposit, which holds 6 billion tons of coal. It has been split on to five different concessions, or blocks, and the government is working on plan for the first two.

"The first one will be 50 per cent owned by the government, 10 per cent floated on the local market for retail investors, 10 per cent available for domestic companies and 30 per cent floated on international markets," Zorigt says.

He now says he does not expect one large miner to snap up the 30 per cent, as was originally mooted.

The second block with be 100 per cent-owned by the government but be licensed to a single mining group that will then pay a fee to the government for mining rights. But details for this remain sketchy and, if past form is any guide, could well be changed before being finalised.

"We have plenty of interest and we are talking to lots of people," he says. But Zorigt says he is keen to finish the process on the first block first. Contract tenders are due in the first week of October with Leighton a possible bidder.

While Rio is putting its money where its mouth is, uncertainty and the heavy hand of an inexperienced government has seen others stay away.

BHP, for instance, has shut up shop and critics point to a lack of services infrastructure starting with access.

The only offshore destinations that are directly connected by air are Seoul, Beijing and Moscow. During Mongolia's dramatically inhospitable winters, Ulaanbaatar -- blanketed in snow for six months, with temperatures regularly reaching minus 40C -- is hardly the place for miners to grab a week or two of rest and recreation. Mongolian Airlines has had Hong Kong, where many of the country's nascent mining groups are stockmarket-listed, on its schedule for some months, but so far has not started flying the route.

On the ground, there are no top-tier international law firms or investment banks and only PricewaterhouseCoopers of the big four accounting firms has an office, and that is less than a month old. This forces mining executives to shuttle between Mongolia and either Beijing/Hong Kong or Korea.

As well, there are the more fundamental infrastructure problems with water, power and transport.

"It's a growth problem," Zorigt says. "In 2000, our GDP per capital was maybe $US400-$US500. Now it is over $US2000.

"If you look at the government budget, I remember when it used to be a bit over $US200 million. Now are talking well over $US2bn ($2.1bn)."

That is half the size, by the way, of Australia's total foreign aid budget. Zorigt, an economist and lawyer who was educated in Moscow, Japan and at the Australian National University, says 27 per cent of people are living under the poverty line, but that the figure is decreasing.

But there are plenty of local people, including those living in humble yurts on the edge of town who spoke to The Australian, who are concerned that the government is frittering away the economic benefits of the mining boom by handing out money instead of spending it on much-needed roads, hospitals and schools.

The last election in Mongolia turned into a populist, vote-buying auction where the main political parties offered a major handout totalling 1.5 million tugriks ($1260) to each Mongolian. A series of well-attended street marches were held to protest against the delay in the payments.

The first part was delivered in a single handout of 70,000 ($US55) to each Mongolian, but the government has now opted for monthly payments.

"During the downturn, the government was struggling to get people to spend," Zorigt says. "During times like this, I think it is economically justifiable. Secondly, in Mongolia given the impact that winter has on herding people (Zorigt's grandfather was herder all his life) they want some better security during this time. These people need cash in their hands.

"These people are actually planning their budgets on this 10,000 tugriks they will get in September."

But the real reason appears to be rooted in politics. "If you believe in democracy, and both parties were elected on that platform (of handouts), in order to keep the faith of people you have to keep your election promises," Zorigt says.

"We are only a young democracy (communism fell in 1990) and can't afford to have politicians and parties breaking promises."

But Zorigt says the government has ambitious plans to solve the infrastructure problems.

In February, Mongolia's parliament adopted a landmark Concession Law that will allow private companies to investment in infrastructure by way of public private partnerships.

"This is going to be an extremely important law," Zorigt says. "Before this we didn't have that legal framework."

And in recent weeks the government has just approved a list of more that 100 projects so private investors can pour money into railways, roads, power and housing projects.

"Private companies can come in and operate them and get their money back. This law and this list are probably going to be the solution to our problem; so far we have struggled to make the public investment in infrastructure," Zorigt says. "This is very serious bet on the future."

Michael Sainsbury, China correspondent for the Australian

Source:The Australian

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Tender looms for 1100 km of new railway /Preconditions for new railway introduced/

On September 11 a ‘Pre-tender Conference for Construction of New Railways in Mongolia’ was held at the Chinggis Khaan Hotel. During this conference, the Mongolian side introduced a State Policy on Railway Transport, Law on Concession, preliminary basis of the Feasibility Study and the funding and heard opinions of investors.a Mongolia’s Parliament endorsed the State Policy on Railway Transportation last June. As the resolution stated, approximately 1100km of railroad will be built in the first stage.
As A. Gansukh, Deputy Minister of Road, Transport, Construction and Urban Development presented during the conference, National Development Strategy (NDS) envisions has two development phases; 2007-2015 and 2016-2021, where envisioned annual Gross Domestic Products (GDP) growth are to be 14 percent and 12 percent, and per capita GDP of USD 5,000 and USD 12,000 respectively.

A pre-tender conference for new railway construction was held at the Chinggis Khaan Hotel

Moreover, it is expected that the national GDP would reach USD 41 billion.
He said that an issue by whom and in what conditions 1100 km railway main composition, which is the first stage of State Policy on Railway Transportation, looks like a matter for Mongolia; however, it concerns regional development as well. The newly built railway will be a bridge to the sea and effective to eliminate single market dependence and can bring minerals into a profitable market. The first stage of 1100km will be constructed from Dalanzadgad- Tavantolgoi-Tsagaan suvraga- Zuunbayan–400km; Sainshand- Baruun Urt–350km, Baruun Urt- Khuut -140km and Khuut-Choibalsan -150km. This giant construction work is proposed to complete within 2.5 years and is planned not to exceed 4 years. However, there are some investors willing to complete it in 2.5-4 years. The track gauge of the new railroad will be 1520mm. As the first stage of railroad is built, the total volume of current cargo transported by the railway will increase by 3.5- fold as the amount of products for export is estimated to reach an average of 50 million tonne per year as a result of coming into exploitation of group coal deposits at Tavan Tolgoi, Tsagaan suvraga copper deposit, large coal, copper, wolfram, zinc and fluoride mineral deposits at Aduunchuluun, Chandgana, Talbulag and Khuut. Construction of the first stage railroad will be sufficient to transport coal to Russia, the European Union, China,Japan and South Korea.

Work has already started to draw up a Feasibility Study for the new railway and study conditions for building the railway. It was said that it is likely to take much cost to build the railroad which will mainly run through the gobi area. Currently, two neighbors and third countries including Japan and South Korea expressed their interest to take part in this constructional work.
The Deputy Minister said that they plan to complete construction of first stage railway by 2012 and it was preliminarily estimated that the cost for construction per kilometer would be USD 2.5 million. However, these all have not been estimated as final. Tender conditions will be clear while grounds of the Feasibility Study are finalized after hearing suggestions of investors. The government will soon resolve which one of two options Build-Operate-Transfer (BOT) or Build-Transfer (BT) to utilize. Also, whether the international tender will be organized in one or two stages has not yet been decided. The Government will resolve this when the tender is announced.
Both of Russia and China are transitioning to bigger trains. It should be considered and there are clear main conditions including heavyhaul and 1520 mm of gauge track in qualifications for the tender. As Ch. Ganbat, advisor at the Ministry of Road, Transportation, Construction and Urban Development stated in his report at the conference, Mongolia needs to plan for long-term growth.
As of the volume of coal transport by railway, it is likely to reach 10 mpta (million tonne per year) in the nearest three years, 30 mpta in ten years and 70-100 mpta in 25-30 years.
At the conference, B. Zayabal, head of Public and Private Partnership and Concession Department at the State Property Committee, introduced organizing a tender to give authority of concession under the Law on Concession. The Law on Concession will provide a legal framework for building a new railway infrastructure.
B. Zayabal introduced three options the to give the tender an authority of concession to build new railway infrastructure will be conducted with one or two steps in accordance with the Concession Regulations and announce an open tender to build new railway infrastructure under the Law on Tender.
If a one-step tender is organized, it will be possible to select by this December; if a two-step tender is run, the selection will be by March of 2011. If organizing an open tender under the Law on Tender, the selection will be this November.
Representatives from the Asian Development bank, Embassies of some countries and companies of Russia and China attended the conference and heard preliminary introductions. As of today, investors from Russia, Japan, and South Korea expressed their interest to cooperate. For instance, over 80 companies including Mongolia, Republic of Korea, Japan, China and others are interested. 

The government of Mongolia will soon start with phase 1 of the recently ratified ‘State Policy on Railway Transportation’

source: The Mongol Messenger

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Results of commercial bank examinations made public

The Mongol Bank’s Supervision Department performed commercial bank examinations for how they fulfill a statement asserted in clause #38 of the Law on Banking. This
clause regulates how banks shall openly inform financial reports and other information. The Mongol Bank announced a press conference on September 2, at which Kh. Delger introduced results of the examination. According to the examination, the
structure and progress of equity funds of 14 currently operating banks were surveyed and reviewed as of July 30, 2010. Of the 14 banks operating in the country, the State Bank is Stateowned; and three banks, Chinggis Khaan Bank, Saving Bank, and Credit Bank are 100 percent foreign-owned; Trade and Development Bank, Khan Bank, National Investment Bank, and Trans Bank have mixed foreign and domestic shareholding; and Golomt Bank, Capital Bank, Capitron Bank, Ulaanbaatar City Bank, Erel Bank, and XacBank are 100 percent owned by Mongolians.
The total equity of all banks stands at Tgs 252.1 billion. Of them, Saving Bank has the largest equity fund amount of Tgs60 billion, while Ulaanbaatar Bank, Erel Bank, and Trans Bank have Tgs8 billion.

However, they meet the minimum equity fund stated in the order of the Governor of the Mongol Bank.
It should be no surprise that most commercials banks got insufficient marks during the examination on how they fulfill their obligations by the law, such as issuing reports and punctually inform the public about important information regarding their financial and activity reports, structures and the composition of shareholders, financial and registration system, internal supervision, principal shareholders, members of the Board of Directors and other decisive-making officials and basic banking activity including loans and services. Among the commercial banks, Capital Bank fulfilled its obligation completely. Other banks missed some of the indicators. For instance, some banks failed to perform its duty to inform publicly about disbursed loans, issued letters of credit, other duties and services. For other indicators, they satisfied the examination with 88 percent of the total evaluation. The percentage of bad loans in the total loans of the banking system stood at 20 percent as of December 31, 2009. However, it decreased by 14.4 percent according to the July report.
Administrative actions were taken on banks that did not obey the law completely under the Law on Banking. They are likely to be fined around Tgs5-60 million and received warnings to remove contradictions for a certain period. Equity fund amounts and owners of the commercials banks are shown below

source: The Mongol Messenger

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Mongolia asks Turkey for technical assistance to dam project

Mongolian Environment Minister visited Turkish counterpart Eroglu to receive technical assistance for The Orkhon-Gobi pipeline project.


Mongolian Environment Minister Luimed Ganskhuk visited Turkish Environment and Forestry Minister Veysel Eroglu Thursday to receive technical assistance for "the Orkhon-Gobi Multipurpose Irrigation Pipeline project".

Speaking to reporters before the private meeting in Istanbul, Eroglu said under the project construction of a dam over the Orkhon river was planned in order to generate electricity and supply water to the mining facilities in Southern Mongolia, irrigation systems as well as drinking water networks.

Eroglu said Mongolia requested technical assistance from Turkey and Turkish experts prepared a preliminary study for the $600 million project. He said experts would now make a feasibility study for the construction of the dam, the hydro power plant and the pipeline, with the build-operate-transfer model.

In his part, Mongolian Environment Minister Ganskhuk said that they were carrying talks with Turkish officials to see if the project could be funded by the Turkish International Cooperation and Development Agency (TIKA).

He said they were looking to take decision in the Turkish-Mongolian Joint Economic Council for the signing of an agreement between the environment ministries of the two countries for the implementation of the feasibility report.
source: http://www.worldbulletin.net

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Mongolian Railway to Consult with CADEX

Mongolian Railway State Owned Share Holding Company (Mongolian Railway) has entered into a wide-ranging business consulting alliance with CADEX KK of Tokyo, Japan, with aim of enhancing the railway infrastructure in Mongolia.

Under the newly signed agreement, CADEX and its Mongolian subsidiary CADEX LLC Mongolia (Ulaanbaatar) will act as a business consultant of Mongolian Railway, specifically as manager of projects to acquire railway technologies and personnel (through hiring and education/training) with the goal of contributing to the stable management and long-term growth of Mongolian Railway.

Mongolia faces the urgent need to establish railway systems to regions with high potential for natural resource development. The Mongolian Government is seeking to resolve this situation while at the same time dealing with various management issues related to railway operation, such as funding and human resources.

Under the alliance agreement, CADEX will apply its railway consulting and project management experience in China, as well as its human resources network, achievements and know-how throughout the Asian region, to build cooperative relationships with third parties outside Mongolia with the objective of rapidly achieving a stable freight transportation system, new business opportunities and the efficient development of underground resources.

Mongolian Railway was established in 2008 by the Government of Mongolia to equip and maintain the country’s railway infrastructure, proactively promote the development of resources and supply these resources to international markets. Specifically, the company is working to rationalize Mongolia’s logistics system, establish a safe and secure railway management system, and establish and maintain stable quality assurance systems, thereby modernizing Mongolia’s railway system, raising the presence of Mongolia in the international resources market and contributing to the development of Mongolia’s economy. The company is wholly owned by the Government of Mongolia.
source: The UB Post

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Mongolia’s Tourism Education Discussed in Vietnam

Delegates from Mongolia, Indonesia, Malaysia, the Republic of Korea (RoK), the Philippines, and Vietnam discussed sustainable tourism development at a workshop held in Vietnamese City of Ha Long, on September 14.

At the workshop held within the framework of the East Asia Inter-Regional Tourism Forum (EATOF), Mongolian delegates spoke of tourism-related issues, particularly tourism education in the country.

Dr Milagros C. Espina from the San Jose University in the Philippines introduced a waste management and natural resources programme called ‘Winning over Waste’ (WOW).

The success of WOW will encourage similar activities in EATOF and reduce the impact of climate change, he said, emphasising the necessity exchanging information among cultures about WOW and other initiatives.

The workshop also heard speeches on rural tourism development in Indonesia’s Yogyakarta province, undersea tourism and new adventure tourism development in Sarawak in Malaysia.

The two-day fair saw the participation of travel agencies from eight provinces, namely Cebu (the Philippines), Gangwon (RoK), Luang Prabang (Laos), Sarawak (Malaysia), Siem Reap (Cambodia), Tottori (Japan), Tuv (Mongolia) and Yogyakarta (Indonesia).

The second sea tourism and flight route committee was reestablished at a conference held by the EATOF organising board on September 14.
source: The UB Post

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Russian-Mongolian maneuvers Darkhan-3 completed

The Russian-Mongolian tactical exercises 'Darkhan-3' that were launched September 1 at the military maneuver ground 'Burduny' of the Siberian Military District in the Republic of Buryatia, RF, came to a close on Wednesday.
According to the press service of the Siberian Military District, Commander Land Forces of Russia, Alexander Postnikov, and Minister of Defense of Mongolia, Luvsanvandan Bold, considered the assigned tasks well performed: "The maneuvers ended with a good result."

Repair groups carried out complex missions of recovery and repair of more than 30 pieces of weapons and military equipment for educational and practical purposes.

About a thousand troops and about 200 units of the armed forces of Russia and Mongolia were involved in the exercises. At the moment, the Mongolian Armed Forces units are entraining the materiel and preparing for departure to the sites of their permanent deployment.

source: http://www.newsbcm.com

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Petro Matad to raise US$46.8 mln for accelerated drilling programme in Mongolia

The new funds are primarily earmarked for accelerating work on the XX block in Mongolia

Petro Matad (LON:MATD) announced it is conditionally raising up to US$46.8 million before expenses through a placing and subscriptions for up to 22,483,878 new shares at 135 pence each, primarily to accelerate in drilling programme on Block XX in Mongolia.

It has already received commitments to subscribe for 13,640,203 placing shares, raising approximately US$28.4 million. The group will also issue up to 8,843,675 new shares through direct subscriptions.

In addition to the fundraising, the European Bank of Reconstruction and Development (EBRD) which at the end of 2009 took 17.5 percent stake in the company for a US$6 million investment, will have the right to subscribe to as many shares as required to maintain its stake in Petro Matad.
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The EBRD is able to subscribe for all or part of its entitlement and its right to subscribe on these terms will expire on 11 October 2010. A further announcement of the EBRD's intention will be made by the Petro Matad in due course

Regarding the accelerated exploration of block XX, the group now intends to test all wells in its three well programme instead of the single test that was previously budgeted in 2010. Weather permitting, Petro Matad plans to drill a fourth well in Davsan Tolgoi in 2010.

The group also plans to immediately commission further seismic surveys in other parts of Block XX. Priority will be in the southern portion of the block, where other sub-basins have been previously identified and partially explored. In addition, supplementary exploration of the other leads and prospects outlined in the northern part, adjacent to Davsan Tolgoi, will be commenced.

Some of the funds will be applied to accelerated and additional exploration on Blocks IV and V with extra 2D seismic surveying and stratigraphic borehole drilling. In addition, other exploration opportunities in Mongolia will be assessed and if promising, pursued.

Petro Matad CEO Douglas McGay commented: "The proceeds from the share issue will allow us to increase the momentum of the company's drilling programme on Davsan Tolgoi, and to enable value to be added to the results of that programme with further tests, studies and appraisals. It will set the stage for further development.

"Just as importantly the proceeds will give the resources to our professional exploration team to build and accelerate their activities on the other areas of interest that our company is exploring with its partner, the Government of Mongolia. The remainder of Block XX and Blocks IV and V in central Mongolia will now benefit from more detailed exploration programmes, carried out even faster,” he added.

Petro Matad is the parent company of a group focused on oil exploration, as well as future development and production in Mongolia. The group holds the sole operatorship of three production sharing contracts with the government of Mongolia. The principal asset is the PSC for Block XX, a petroleum block of 14,250 square kilometres in the far eastern part of the country. The two other blocks, IV and V are located in central Mongolia and jointly cover 71,040 square kilometres.
source: http://www.proactiveinvestors.co.uk

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Mining projects in Mongolia ‘kicking off’

Mongolia’s mining industry is taking off as projects involving state-owned enterprises and corporate investments fuel market activity, according to Hogan Lovells head of infrastructure and project finance Asia, James Harris.
The firm has received a steady stream of work from traditional E&R-rich jurisdictions such as Indonesia, Vietnam, China and India but more recently from Mongolia, Harris told ALB.
“We’ve been doing stuff with three types of clients: private-sector developers, investors, buyers or sellers; lenders to these people; governments or governments assisted by a multilateral such as the World Bank, IFC or the Asian Development Bank (ADB),” he said. “The strongest countries would be – working from south to north – Indonesia, Vietnam, Philippines, China, Mongolia, and India to the east.”
Mongolian firm GTS Advocates has seen a similar increase in corporate and commercial transactions involving the mining community in the last 10-12 months. “Certainly we noticed the dramatic increase in investment in the mining sector in Mongolia. Most of these projects involve funding of operations from private companies,” GTS Advocates partner Batbayar Byambaa said.

Byambaa attributes the upswing in mining transactions to two factors: the increase in global metal prices; and the inking of a number of mega deals last year by the Mongolian government.“Last year the government signed an investment deal with Rio Tinto and Ivanhoe – that was the starting the point of the flood of investment into the mining sector in Mongolia,” Byambaa said.
On 15 September 2010, Hogan Lovells also announced its appointment as legal adviser to state-owned mining company Erdenes MGL – the sole owner of the mining operations for the Tavan Tolgoi project in Mongolia.
Often called the world’s biggest untapped coking coal deposit, Tavan Tolgoi holds a coal reserve of 6.5bn tonnes. The successful implementation of the Tavan Tolgoi project will be pivotal to a number of other projects in Mongolia, particularly in the rail and power sectors, and the proposed development of a major industrial park.
As part of the appointment, Hogan Lovells will help Erdenes establish draft mining agreements which can be used for the development of the Tavan Talgoi coal deposit area and other future coal mine developments in Mongolia.
It is expected that Hogan Lovells will also assist in the negotiation and finalisation of the mining agreements between Erdenes and the international private-sector participants in the project.
The Hogan Lovells team will be led by Ulaanbaatar-based Michael Aldrich and comprise of John Copper in London, Joseph Bell in Washington DC, James Harris in Singapore and Jamie Barr in Hong Kong.ALB
source: http://asia.legalbusinessonline.com

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Albanese aiming for piece of the Mongolian pie

RIO Tinto's executive and board gathered in bucolic Hampshire on Monday for their annual two-day strategy summit.

The main topic of conversation for the re-emerging global miner was the next crucial stride towards an endgame in what must rank high on its list of next year's priorities by picking up another 5 per cent of Robert Friedland's Ivanhoe Mines.

The coincidence of Rio's pow wow with the long established date for the crystallisation of debt-to-equity swap with Ivanhoe is so delightful it is hard to believe it wasn't deliberately concocted by someone inside the Anglo-Australian. Ivanhoe and Rio, you see, are not seeing anything like eye-to-eye on the ground rules of their investment partnership.

It is said, mind you, that for all the commercial tension, Friedland and Rio boss Tom Albanese remain on pretty good terms. Albanese, for example, recently joined a partying throng at the Canadian billionaire's 60th birthday celebrations amid the ruins of the ancient Khmer capital of Angkor Thom.

With yesterday's 5 per cent in the bag, Rio now owns 34.9 per cent of Ivanhoe and, all things being equal, it can move at a time of its own choosing to 44 per cent of the Godfather of Mongolian mining by exercising warrants over another 84 million Ivanhoe shares.

Ivanhoe is of interest to Rio because the Canadian company owns 66 per cent of what it routinely touted as the world's biggest undeveloped copper project. It is called Oyu Tolgoi and it sits in Mongolia's chunky share of the Gobi desert.

Ivanhoe says phase one of its copper giant will cost $US4 billion ($4.2bn) to build. It will doubtless be wrong. Given the current state of project price inflation, it will certainly cost a heap more than that.

And Ivanhoe's problem is that, given the current ownership construct of the project, it is going to have to carry the whole of that funding. Just over two months ago now, 66 days to be precise, Ivanhoe told Rio it would go looking for another strategic partner to help it secure the $US4bn necessary to finance stage one of the world's biggest undeveloped copper project, Oyu Tolgoi, in Mongolia.

That number is significant because the terms of the investment agreement require Rio be given 60 days notice of the termination of restrictions on the introduction of new strategic investors. Now, ahead of that announcement Ivanhoe instituted what Canadians call a "shareholder rights scheme" but what the rest of investment world knows as a "poison pill".

The aim of the scheme is to constrain any effort Rio might make to creep from senior minority to controlling shareholder in Friedland's company. If the scheme stands, Rio will not be able to move beyond 44 per cent of Ivanhoe unless it makes an offer for the whole of the company.

Rio as challenged the legality of the proposed scheme on the basis that it retrospectively relieves the company of rights established under the October 2006 investment agreement that introduced it as a cornerstone shareholder in Ivanhoe.

The way Rio sees it, that agreement allows it to move to a maximum of 46.6 per cent of Ivanhoe by October next year and, as well, it includes a "no dilution" clause. Further, the deal provides Rio with a call over any new capital that Ivanhoe might issue in the pursuit of cash to fuel its Oyu Tolgoi ambitions. That call could be made even if it sees control pass to Rio. Ivanhoe disputes Rio's view of the shareholder rights scheme saying it merely aims to prevent its partner creeping past 50 per cent to control.

Rio has requested the arbitration available under the Canadian rules to sort out this dispute but Ivanhoe has been unable to meet the 60-day deadline for the necessary agreement on just who should be appointed to conduct that arbitration. So it would seem likely now that Rio will attempt to get the courts to appoint an arbitrator with a view to delivering a decision by late November.

The outcome of that process might well determine the timing of whatever efforts Friedland is making to introduce a new strategic shareholder to Ivanhoe.

If the shareholders rights scheme overrides the 2006 investment agreement and Rio is frozen at 44 per cent, unless it is prepared to make a full bid for Ivanhoe, then Friedland could issue the 5 per cent and more he has signalled could be placed with a third party without Rio being able to redirect those shares to its own account. That is an outcome, needless to say, that would strongly disappoint Rio .

After all, while Albanese plays good cop, the company has engaged in a strategy that aims ultimately to narrow even more Friedland's alternatives and to deliver Rio with a controlling interest, not in Ivanhoe, but in its headline project, Oyu Tolgoi.

Rio has already discussed with Friedland its desire to translate its Ivanhoe investment into a direct equity stake in the Mongolian copper play. And that remains the endgame here.

Scare campaign?

WELL, hasn't it been a jolly week or so for stoic QR National's boss Lance Hockridge and his resolute chairman John Prescott.

Just three working days after the coalminers' endured the humiliation of the collapse of their bid for Hockridge's crown jewels, his coal freight rail tracks, the National Competition Council moved to effectively remove the shadow of regulatory risk from the proposed IPO of QR National.

The NCC yesterday issued a pair of draft decisions that first rejected Asciano's attempt to seek a declaration of the Queensland coal network and, second, moved to certify for a decade Queensland's existing, though recently modified, rail access regime.

The NCC's decision triggered some diverting pyrotechnics last night. Asciano, quite predictably, indicated it would pursue its application no matter what the outcome of the NCC process, indicating it would lobby the Treasurer directly on the matter and consider a review of any decision by the Australian Competition Tribunal. Somewhat less predictably, the victorious Queensland Treasurer released a pretty spiky statement claiming the twinned decision "puts a lie" to Asciano's claim about the competition risks inherent in the plans to float QR National as an integrated freight service provider and rail track owner. "There are others who have attempted to cruel the QR National float by running inaccurate scare campaigns in the media about the effectiveness of the Queensland access regime," Andrew Fraser said.

"These are the same people who have complained about the supposed lack of competition in the Queensland coal network, despite telling their own investors that they are already forecast to achieve 30 per cent of the Queensland market-share by 2020.

"The proposed recommendation by the NCC puts a lie to those claims." Winners can be grinners, I suppose. But is Fraser really suggesting that Asciano has lied here?

Of course, for the moment at least, the public tension between Asciano and the government is not really the main game. The fact is QR National has dealt now with the two issues that threatened to cruel its approach on publicly listed freedom from the constraints of government ownership. The attempt to unbundle the tracks has disappeared and the risk that life unfettered by government ownership would be constrained instead by competition regulators has been substantively reduced.

The task remaining, mind you, is not insubstantial. All Hockridge and Prescott have to do now is demonstrate they have buying interest enough to support the IPO valuations demanded by the Bligh government.
source: http://www.theaustralian.com

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Mongolia to Take Bids for Tavan Tolgoi Coal Deposit Contractor Next Month

Mongolia will take bids for a contractor to mine Tavan Tolgoi, one of the world’s largest untapped deposits of steel-making coal, next month, said the country’s minister for minerals and energy.

“The bidding for the operator will be done in early October,” Dashdorj Zorigt said in an interview in the Chinese city of Tianjin today.

Mongolia, which shares a border with China and Russia, wants to retain ownership of new mines including Tavan Tolgoi, which holds more than 6 billion metric tons of coal. Among the companies that have said they are keen to develop Tavan Tolgoi is China Shenhua Energy Co., the biggest Chinese coal producer.

The nation expects to set up a state-controlled company, Erdenes Tavan Tolgoi, to oversee the deposit before the start of the mining season in April, Zorigt said on Aug. 3.

“The government is in the process of appointing an independent board and CEO for the Tavan Tolgoi company,” he said today.

Mongolia plans to sell 30 percent of the company controlling Tavan Tolgoi in share sales to help fund $1.5 billion of initial development cost, the minister said on July 8. The shares will be sold in Mongolia and overseas.

The government hasn’t decided which overseas stock market will handle the sale, Zorigt said today.

To contact the Bloomberg staff on this story: Baizhen Chua in Tianjin at bchua14@bloomberg.net

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UN - Ochir Enkhtsetseg of Mongolia Chair of Second Committee

Ochir Enkhtsetseg, Permanent Representative of Mongolia to the United Nations, was elected Chair of the Second Committee (Economic and Financial) on 11 June 2010. (See Press Release GA/10947)

She has served as her country’s Permanent Representative since 1 October 2007. Prior to that appointment, Ms. Enkhtsetseg was Director-General of the Multilateral Cooperation Department at Mongolia’s Ministry of Foreign Affairs, a post she held from 2000 to 2007. In her previous 12 years with the Ministry, she was an Officer and Senior Officer in the Department of International Organizations, and an Officer in the Europe and America Department.

A career diplomat, Ms. Enkhtsetseg joined the United Nations almost 20 years ago. From 1992 to 1997 she was First Secretary and later Counsellor at the Permanent Mission of Mongolia to the United Nations. Previously, she was a member and Deputy Head of numerous delegations to sessions of the General Assembly.

While fulfilling her duties as a Permanent Representative, Ms. Enkhtsetseg would continue to serve as a member of the Governmental Advisory Board of the International Centre for Democratic Transition, based in Budapest, Hungary, and as a board member of the Mongol Cultural Heritage International Association, in Ulaanbaatar, Mongolia.

Ms. Enkhtsetseg holds degrees from Moscow State Institute of International Relations and Stanford University. Fluent in Mongolian, English and Russian, she was born in Ulaanbaatar on 26 November 1961.;)
source: http://www.un.org/News/Press/docs//2010/bio4240.doc.htm

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S.BATTSETSEG BECOMES WORLD CHAMPION

Ulaanbaatar, Mongolia, /MONTSAME/ A member of the state selected team for free-style wrestling and an international master of sports S.Battsetseg won a gold medal in the FILA Wrestling World Championship running in Moscow city, Russia.

Battsetseg Soronzonbold of Mongolia celebrates her victory over Zhang Lan of China in their women's 59 kg free style gold medal match at the World Wrestling Championships in Moscow September 9, 2010.… Read more »

REUTERS/Grigory Dukor (RUSSIA - Tags: SPORT WRESTLING)

S.Battsetseg competed in women's free-style wrestling in the weight category of 59 kg. She had a bye in her first round, and then defeated her rivals Tonya Lynn Verbeek from Canada, Joice Souza Da Silva (Brazil) and Ayoko Shoda (Japan). At the final round, S.Battsetseg beat Zhang Lan from China by scores of 8:0.
The 20-year old S.Battsetseg has become the first ever female wrestler of Mongolia to win a gold medal of the FILA Wrestling Championships.

source:

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