Khan Up 87% as Wins Mongolian Court Case

Khan Resources Inc. (KRI.TO) is up 87% at 43 cents, and off a day high 45 cents, after announcing today that the Mongolian Capital City Administrative Court has ruled in favour of its 58%-owned joint venture subsidiary, Central Asian Uranium Company, LLC, and declared that the previous purported decision by the Mongolian Nuclear Energy Agency to invalidate CAUC's mining license 237A is itself invalid and illegal.

Trading in Khan was halted aroundn 10:45 a.m. ET, but it resumed about two hours later.

As previously announced in April 2010, both CAUC and Khan's 100%-owned Mongolian subsidiary Khan Resources LLC, the respective holders of mining license 237A and exploration license 9282X), both in respect of the Dornod Uranium Property, received notices from the NEA purporting to invalidate the Licenses effective as of October 8, 2009, allegedly based on unspecified violations of Mongolian law

Subsequently, each of CAUC and Khan Mongolia filed and has since been pursuing separate formal claims in the Court challenging the legal bases for the NEA's notices asserting, among other things, that the NEA had no legal authority to make a decision to invalidate the Licenses and that the NEA's purported decision to do so violated the provisions of Mongolian law and was, therefore, invalid.
source: http://community.nasdaq.com

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Japanese company wants to use bacteria in airag

In summer 2007, Gentaro Yasuda of Calpis Co. traveled to Mongolia in search of new types of lactic acid bacteria. He visited gers to sample and compare airag, the homemade fermented horse milk liquor whose recipes date back thousands of years. Calpis, with a research institute affiliated with the Japanese Ministry of Economy, Trade and Industry, concluded an agreement with the Mongolian government that stipulates that bacterium will be isolated at a Mongolian laboratory, the isolated strains will be stored in both countries, and a fixed sum will be paid to the Mongolian side at the time of any patent application.

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Khan Mongolia Court Case Postponed

TORONTO, ONTARIO, Jul 22, 2010 (MARKETWIRE via COMTEX) -- Khan Resources Inc. /quotes/comstock/11t!e:kri (CA:KRI 0.35, +0.02, +4.48%) ("Khan") announced today that the Mongolian Capital City Administrative Court has postponed the hearing of a case brought by its 100%-owned subsidiary, Khan Resources LLC ("Khan Mongolia") which challenges the legal basis of a notice by the Mongolian Nuclear Energy Agency (the "NEA") to invalidate Khan Mongolia's exploration license 9282X. The new date for the hearing has been set for August 2, 2010. The request for postponement was made by the NEA to allow them to change their legal representative and constitutes the second time the NEA has asked for a postponement of the hearings. On July 19, 2010, the Court did rule in favour of Khan's 58% owned joint venture subsidiary, Central Asian Uranium Company, LLC ("CAUC"), that a similar decision by the NEA to invalidate CAUC's mining license was itself invalid and illegal. The NEA has the right to appeal the Court's decision on CAUC's claim within two weeks of the date of the decision. (See Khan Press Release of July 19, 2010).

As previously announced in April 2010, both CAUC and Khan Mongolia received notices from the NEA purporting to invalidate their licenses relating to the Dornod Uranium Project effective as of October 8, 2009, allegedly based on unspecified violations of Mongolian law. Subsequently, each of CAUC and Khan Mongolia filed and has since been pursuing separate formal claims in the Court challenging the legal basis for the NEA's notices asserting, among other things, that the NEA had no legal authority to make a decision to invalidate the licenses and that the NEA's purported decision to do so violated the provisions of Mongolian law and was, therefore, invalid.

Mr. Grant Edey, President and CEO of Khan commented, "We are disappointed in the NEA's request to again postpone the court case. We were hopeful that a favourable decision for Khan Mongolia, coupled with Monday's favourable decision for CAUC, would allow us to move forward on a co-operative basis with the Government of Mongolia and its agencies to renew our licenses and continue the development of the Dornod Uranium Project".

Khan continues to believe that it and its Mongolian subsidiaries have always operated in compliance with applicable Mongolian laws. An appeal of the Court decision on CAUC by the NEA will be vigorously challenged by Khan through all legally available means.

Khan Resources Inc. /quotes/comstock/11t!e:kri (CA:KRI 0.35, +0.02, +4.48%) is a Canadian company engaged in the acquisition, exploration and development of uranium properties. Its current activities are focused on the Dornod area in north-eastern Mongolia, the site of a former open-pit uranium mine. 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:
Khan Resources Inc.
Grant Edey
President & CEO
416.360.3405
gedey@rogers.com

The Buick Group
Jonathan Buick
416.915.0915, Ext. 302 or Toll Free: 1.877.748.0914
jbuick@buickgroup.com






SOURCE: Khan Resources Inc.

mailto:gedey@rogers.com
mailto:jbuick@buickgroup.com



source: http://www.marketwatch.com

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Mongolia Coal Railway Will Link with Russia

Mongolia and Russia may speed up its previous talks to establish a joint venture Dornod Uranium and modernization of railway and mining cooperation, the 14th Mongolia-Russian inter-governmental commission meeting agreed in protocol, which concluded this week in Ulaanbaatar.

During the meeting, in which Russian side is represented by visiting Transportation Minister Igor Levitin, sides agreed to review 1949 agreement of the Ulaanbaatar Railway within this year. Russian side or Russian Railway agreed to invest US$250 million into Ulaanbaatar Railway, and to grant long-term tariff rebates to Mongolia’s transit freights through the Russian territory.

Igor Levitin reconfirmed Russian companies’ interests in developing Mongolia’s coal deposit Tavan Tolgoi, together with Russian Railways.

“We support new suggestions from the consortium to the working group of the Mongolian government on the integrated development of the deposit,” Levitin said.

Tavan-Tolgoi is one of the largest coal deposits in the world, with reserves of nearly 6.5 billion tons of coal, including 40 percent of high-calorie coking coal.

The Mongolian government wants to privatize Erdenes Tavan Tolgoi company, a subsidiary of state owned Erdenes MGL, by selling 30 percent to foreign investors, 10 percent to households by public shares and a further 10 percent to Mongolian private businesses at a nominal value. Remaining half of the shares will stay with the government.

In 2009, the Mongolian government transferred 50 percent of Ulaanbaatar Railway shares to the beneficial ownership of Russian Railways for a five-year term. The country has recently adopted a railway development policy, of which priority project is the construction of a 1,100 kilometer railway link from Tavan Tolgoi to Sainshand and further Choibalsan and reach the Russian border.
Mongolian Parliament in its upcoming fall session may conclude an investment agreement with the project’s potential investor. The bidders included BHP Billiton, India’s Jindal, Brazil’s Vale, U.S. Peabody, China’s Shenhua, and a consortium of South Korea’s COPEC and Russian-Mongolian Infrastructure Development company.

To carry out a large-scale project to modernize Mongolia’s existing infrastructure and build new rail lines to potential mineral deposits, Russian Railways and the Mongolian government created the Russian-Mongolian joint venture Infrastructure Development in May 2009. The purpose of the venture is to provide an effective platform for attracting investment in the development of Mongolia’s railway network.

“Russian Railways rigorously fulfills all its obligations in terms of technical support for the Ulaanbaatar Railway. At the end of 2009, Russian and Mongolian specialists finished work ahead of schedule on laying 108 km of continuous welded rail track on the Mandal – Davaany line, which will allow train speeds to be increased to 120 km/h”, said Vadim Morozov, First Vice President of Russian Railways.

Last year, Russian engineering companies carried out a full inspection of the current state of the Ulaanbaatar Railway network, and found there to be a high level of wear and tear, insufficient carrying capacity of infrastructure, and significant degradation of rolling stock. It is estimated that US$1.7 billion dollars for the construction of a new rail line to the Tavan Tolgoi coal mine, and US$500 million dollars for the modernization and purchase of rolling stock up to 2015.
source: The UB Post

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Giorgio Armani now has a store in Ulaanbaatar

Giorgio Armani SpA, the Italian fashion company whose clothes are worn by celebrities including Angelina Jolie and Leonardo DiCaprio, said it opened its first stores in Mongolia and Vietnam as it seeks to tap Asian demand.

Emporio Armani boutiques opened in Ulaanbaatar and in Ho Chi Minh City, Vietnam, where the clothier also added a cafe, the Milan-based company has said in two e-mailed statements to Bloomberg, without saying when the outlets began trading. Each country is “ready” for Italian fashion and design, Giorgio Armani, the closely held company’s founding president and chief executive officer, said in the statements.

Armani is seeking to diversify its geographic sources of revenue after profit fell 28 percent last year because of the recession in North America and Japan. The company follows LVMH Moet Hennessy Louis Vuitton SA in opening stores in Mongolia and Vietnam. Sales of luxury goods in Asia Pacific, excluding China, may rise 10 percent this year, Bain & Co. estimated in April.

Armani has 1,503 single-brand outlets worldwide.

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Despite hardship, Christian community in Mongolia grows

Hope, joy and optimism is growing in Mongolia's small Catholic community, in particular because of a brand new community formed by six newly baptised women in Arvaiheer, main town of the southern Mongolian Uvurhangai region, thanks to the missionary endeavours of community of Consolata Missionaries IMC.

The feast of Pentecost, 23 May 2010, "was a special feast for the mission" , says Fr. Daniele Giolitti IMC. Six local women were received into the Church with the administration of the Sacraments. “Since we arrived in Mongolia in 2003, these are practically the first visible fruits of our presence as evangelisers in this part of the world”.

“We wish to offer thanks to the Lord – the missionary continues – for these six new sisters in Christ who have made such a radical decision, if we think of the context in which they are prepared to live the Christian message which is so new for the people here ”. Battogoo (Lucia) is the youngest (23); Perlimaa (Rita) and Diimaa (Elisabetta) two sisters belonging to a large family; Narantuya (Caterina) and Otgonbayr (Maddalena) married with children; Deejit (Anna) “we accompanied them along a two year path as they discovered the faith and then prepared to receive the Sacraments. In these two years they shared with us some aspects of daily family life poverty and hardship”.

“It was for us a special grace to see these lives mysteriously marked by the presence of God leading them to this personal encounter with Jesus”, says Fr. Giolitti, adding that the joyful event is an ulterior encouragement for the mission.

On 19 September 2006 a small group of missionary priests and missionary Sisters of the Consolata Order took up residence in Arvaiheer after a long and arduous iter which began officially in the Summer of 2005, to obtain the necessary recognition in a region where the Catholic Church had never been present. At long last, at the beginning of 2007 the local government granted the missionaries a permit for religious activity in the region of Uvurkhangai.

This was the start of the new mission which has just borne its first fruits.

The Catholic community in Mongolia has a Bishop and three parishes with almost 200 Mongolian born Catholics, a good number of catechumens preparing to be received into the Church, many groups for apostolate, well frequented pastoral structures including a number of kindergartens, a polytechnic school, homes for street children, for the disabled, for unmarried mothers. Missionary activity, first started ten years ago, is entrusted to some 50 missionaries and religious..
source: http://www.speroforum.com

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World Bank Country Manager talks of Mongolia’s economic future

Arshad M. Sayed of the World Bank is leaving Mongolia soon after four years as Country Manager and Resident Representative. In what may well be his last public address here, the Indian-born economist who has worked closely with the Mongolian Government to help it tide over the economic crisis, told a selected audience at the Central Bank auditorium on Thursday that it was certainly possible for Mongolia to turn the present crisis into an opportunity but nothing can be achieved soon or without taking hard decisions. His lecture was entitled “Mongolia’s Economic Growth: What’s Next?”

Sayed said Mongolia’s future would depend on its Government sticking to “a policy of sustainable and equitable growth based on the future rise in mining revenue”. He warned that instead of nurturing and encouraging “expectations far ahead of reality”, the Government and the people should settle for an informed social compact that would accept “hard decisions in uneasy times”.

Recalling that his first public address in Ulaanbaatar, in October 2006, was entitled “Mineral Resources: Blessing or Curse?”, Sayed said four years and a global crisis later he was still in no position to give a definitive answer, and was not even sure if there was one. Mongolia’s medium-term growth outlook is very favourable, but the upcoming mining boom is likely to lead to significant structural shifts. Withdrawal of the windfall profit tax means the Government will lose revenue equivalent to 5 per cent of the GDP, and this can be cushioned only with fiscal consolidation. Mining booms are inevitably followed by busts, and a social safety net has to be put in place so that the poor are permanently protected. The banking sector must be reformed and infrastructure needs addressed.

Sayed read out a poem he had written as his fareweel thoughts on Mongolia. It endd with the following words: “Do not pity, /or worry,/ or shed tears/ or rush in judgement/ For I am Mongolia/ and I have a date with destiny.”

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15 month old Mongolian boy gets gift of life

You could say it's an incredible journey for an incredible gift: a 15-month-old Mongolian boy gets a life-saving heart surgery right here in San Antonio.

Bolor-Erdene, or Borkhuu as he's called, weighs only 15 pounds and struggles to just breathe and eat every day.

"He's a rambunctious child who's limited. He's a child who you can clearly see that he wants to do all types of things that kids his age do, but he has limitations," said Dr. Adil Husain, a cardiothoracic surgeon at Christus Santa Rosa Children's Hospital.

Borkhuu had nearly an inch-sized hole in his heart, which doctors say was one of the worst defects they'd seen. It was patched after a four hour surgery Friday. He couldn't have received this treatment at home in Mongolia, so the organization HeartGift San Antonio brought him here and gave him the surgery at no cost to him. This type of operation could cost upwards of $160,000.

Borkhuu's mother is expecting another child any day now, so he made the trip with a guardian, Tuya. She met his family for the first time at the airport. She says they were taking pictures, dressed in their traditional clothes.

"All of them crying, it was so hard to see and they were saying to Borkhuu, 'please come back to me,'" Tuya said.

Borkhuu was resting peacefully Friday afternoon and doctors say he should be back on his feet, running around by early next week. He'll stay in San Antonio with a host family for a few weeks while he recovers, then he'll be able to return home to his family.
source: http://www.woai.com/content/news/newslinks/story/15-month-old-Mongolian-boy-gets-gift-of-life/HOJxT3iMUUW81Vie_EQMOQ.cspx

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Ivanhoe shares surge on strategy to attract strategic investors

Andy Hoffman

Vancouver — From Wednesday's Globe and Mail Published on Tuesday, Jul. 13, 2010 2:33PM EDT Last updated on Tuesday, Jul. 13, 2010 7:46PM EDT

After the dramatic events surrounding Ivanhoe Mines Ltd. (IVN-T17.18-0.37-2.11%) this week, two things are certain about Robert Friedland: The brash promoter still knows how to drum up a frenzy of interest in a mining project, and he’s not afraid of a fight.

Vancouver-based Ivanhoe and its chairman, Mr. Friedland, on Tuesday declared war on its biggest shareholder, global mining giant Rio Tinto (RTP-N46.35-1.23-2.59%) by unveiling plans to lift restrictions on Ivanhoe’s ability to issue shares to strategic investors.

The aggressive move, coupled with Ivanhoe’s decision in April to implement a “poison pill” that would frustrate any attempts by Rio Tinto to launch an unsolicited takeover, resulted in a flurry of trading in Ivanhoe’s shares, which surged 14.3 per cent on the TSX on speculation that the mining firm might garner interest from another potential suitor.

It also prompted the resignation of Andrew Harding, the head of Rio Tinto’s copper division, from Ivanhoe’s board of directors, setting the stage for a showdown between Ivanhoe and the world’s third-largest mining company.

The prize at the centre of the battle is control of the Oyu Tolgoi project in Mongolia, considered to be one of the world’s largest untapped copper-and-gold deposits. Ivanhoe recently estimated Oyu Tolgoi’s annual production would exceed 544,000 tonnes of copper and 650,000 ounces of gold for the first 10 years of a 59-year mine life.

“It has been well anticipated that there will be other parties interested in Oyu Tolgoi and this cracks the door open for them a bit,” John Hayes, an analyst with BMO Nesbitt Burns, said in an interview.

Officials from Rio Tinto – which already owns 29.6 per cent of Ivanhoe and has the right to increase that stake to 46.7 per cent as part of an agreement struck with Ivanhoe in October of 2006 – declined to comment on the dispute. However, a source close to London-based Rio Tinto said the company planned to exercise its right to appoint two additional members (for a total of three) to Ivanhoe’s board in the near future in a bid to exert more control over the company.

Rio recently disclosed that it has been in talks with its own largest shareholder, Aluminum Corp. of China (also known as Chinalco) about giving the Chinese state-backed company a stake in Ivanhoe or a direct interest in the Oyu Tolgoi project. Rio also disclosed that is interested in potentially acquiring a direct interest in the deposit rather than its equity stake in Ivanhoe.

Last week, Rio said it planned to refer Ivanhoe’s shareholder rights plan, or “poison pill,” to arbitration in British Columbia. Ivanhoe adopted the plan in April against the wishes of Mr. Harding, Rio’s sole appointment on the Ivanhoe board at the time. The arbitration process is expected to take 90 days.

After more than five years of delays, construction on Oyu Tolgoi, which is expected to cost $4.6-billion (U.S.), is now well under way and there are believed to be about 3,000 workers on site. Rio has spent more than $1-billion financing the massive mine but, as a minority shareholder of Ivanhoe without a direct interest in the deposit, it is not in charge of the project. Ivanhoe’s biggest challenge has been securing financing for its share of the building costs.

Mr. Friedland, a globe-trotting veteran of the resource sector, is well versed in playing potential suitors against one another to maximize shareholder value. He orchestrated the frenzy around the Voisey’s Bay nickel deposit in Labrador by pitting Canadian mining stalwarts Inco and Falconbridge against one another in a dramatic battle for control of the project. Voisey’s Bay was eventually sold to Inco in 1996 for $4.3-billion (Canadian), far higher than many anticipated.

When Ivanhoe struck its investment agreement with Rio Tinto in 2006, it appeared that Mr. Friedland had, in return for a much needed investment in Ivanhoe, given the mining giant a major advantage against competitors vying for control of Oyu Tolgoi. But with the adoption of the poison pill, which would flood the market with shares if Rio acquired more than 46.7 per cent of Ivanhoe, and with Tuesday’s decision to lift the covenant that prevented Ivanhoe from selling more than 5 per cent of its shares to a strategic investor, Mr. Friedland has shown Ivanhoe still has plenty of options if Rio were to launch a takeover bid.

“Rio was talking and trying to plan the future of Ivanhoe. But now Rio is saying, ‘We’ll plan the future of Ivanhoe, thank you very much,’ ” Mr. Hayes said.

Under the investment agreement, Rio has the right to match any offer for Ivanhoe’s shares from another strategic investor. However, the poison pill would prevent Rio from exercising that right beyond a 46.7 per cent stake in Ivanhoe.

Analyst Raymond Goldie of Salman Partners pointed to Anglo-American PLC as a potential suitor for Ivanhoe or an investor in Oyu Tolgoi. He said attempts to invest in Oyu Tolgoi by Chinalco or other Chinese state-owned enterprises would likely face opposition from the Mongolian government, which has a 34-per-cent interest in the project.

Source:www.theglobeandmail.com

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Mongolia's Energy Resources plans HK IPO -sources

* Energy Resources aims to raise up to $1 bln in Q4 - sources

* Citigroup and JP Morgan mandated as underwriters - sources

By Joseph Chaney and Kennix Chim

HONG KONG, July 13 - Mongolian coking coal company Energy Resources LLC aims to raise between $800 million and $1 billion in a Hong Kong initial public offering by as early as September, three sources with knowledge of the matter told Reuters.

Energy Resources, whose Ukhaa Khudag mine is roughly 245 km from the Chinese border, will be the first company listed in Hong Kong to be fully based and operated in Mongolia.

The offering would be sponsored by Citigroup and JP Morgan , the sources said. All three sources declined to be named because they were not authorised to speak publicly about the matter.

Mongolia is attracting serious attention from global investors after sealing a deal in October with Ivanhoe Mines Ltd and Rio Tinto Ltd to develop the $3 billion Oyu Tolgoi mine, one of the world's biggest untapped copper and gold deposits.

Now, Mongolia's domestic companies are seeking foreign capital to help them expand, and the government is trying to connect local companies and its stock market with the rest of Asia -- from Hong Kong to Korea to Japan -- hoping to turn domestic franchises into regional ones.

Earlier this year, media reports said Energy Resources was seeking either a London or a Hong Kong IPO.

The company's peers in Hong Kong -- Mongolian Energy Corp <0276.HK> and SouthGobi Energy Resources <1878.HK> -- operate mines in Mongolia but are headquartered offshore in Hong Kong and Canada, respectively.

Hong Kong has long been a natural destination for emerging Mongolian champions, given its diversified investor base, proximity to mainland China, and China's hunger for Mongolia's copper, iron ore, gold and coal.

Citigroup and JP Morgan declined to comment.

Source:Reuters news service

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Ivanhoe breaks contract with Rio Tinto, shares jump

By Catherine Carlock, MarketWatch

SAN FRANCISCO (MarketWatch) -- Shares of Ivanhoe Mines Ltd. surged 14% in Toronto Tuesday after the company announced plans to terminate a contract with London-based mining group Rio Tinto PLC, its largest shareholder. The current agreement limits Ivanhoe's /quotes/comstock/11t!e:ivn (CA:IVN 17.07, +2.14, +14.33%) ability to bring new investors into its Oyu Tolgoi mining project in southern Mongolia, Ivanhoe said in a statement. Termination will allow Ivanhoe to issue more than 5% of its common shares to strategic investors, including major mining companies. For Rio Tinto, the termination will prevent it from owning a stake larger than 46.7% -- essentially barring the larger miner from taking up its right to purchase.

Ivanhoe's decision to dissolve its contract with Rio Tinto is the latest tussle between the Vancouver miner and its heavyweight partner, the third-largest mining company in the world. Rio Tinto /quotes/comstock/13*!rtp/quotes/nls/rtp (RTP 47.55, +0.66, +1.41%) /quotes/comstock/23s!a:rio (UK:RIO 3,128, +25.50, +0.82%) has held a strategic stake in Ivanhoe since 2006 and now owns a 30% stake of the company.

On Friday Rio said it plans to take Ivanhoe to arbitration over the previous passage of a shareholder rights amendment. Ivanhoe announced the plan in early April, stating it would protect shareholders during a potential takeover bid or a transaction that would involve a change in control.

Production on the Oyu Tolgoi copper-gold project, which Ivanhoe calls the world's largest undeveloped copper-gold project, is not expected to begin until 2013.

Source:www.marketwatch.com

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Chinese aluminum company seeking stake in Ivanhoe or its Mongolian mine

By: Ross Marowits, The Canadian Press

MONTREAL - Rio Tinto says it is in talks with a Chinese aluminum company about buying a minority equity stake in Ivanhoe Mines Ltd., or a direct interest in Ivanhoe's signature copper-gold project in Mongolia.
In a filing Wednesday with U.S. regulators, the London-based global mining giant said it continues to talk with the Aluminum Corporation of China (Chinalco) — a large Rio Tinto shareholder — about its ownership interests.
"If any arrangement is agreed, it may be a bipartite or tripartite arrangement with (Ivanhoe) and/or Rio Tinto," it said.
Any such arrangement may require approval from Ivanhoe, Rio Tinto and the Mongolian government.
Rio last year walked away from Chinalco's desire to invest US$19.5 billion in the company after shareholders balked at the infusion designed to reduce Rio's debt.
The company said it has also had discussions about the Mongolian project with "numerous parties," including the European Bank for Reconstruction and Development and the World Bank's International Finance Corporation.
Ivanhoe is working with both organizations to evaluate a major financing package for construction of the planned $4.6-billion Oyu Tolgoi mining complex.
"Rio Tinto intends to continue its discussions," it stated.
Rio Tinto (NYSE:RTP) has called the Mongolia project the world's largest untapped copper and gold resource. It announced last week that it was increasing its stake in Ivanhoe Mines Ltd. (TSX:IVN) by 7.3 per cent to almost 30 per cent as Ivanhoe continues to develop the Oyu Tolgoi project.
It will increase its stake by exercising all of its series A warrants, which entitle it to acquire just over 46 million Ivanhoe shares at US$8.54 per share, for total consideration of approximately US$393 million.
Rio Tinto said it is also continuing to talk with Ivanhoe about the potential conversion of the equity stake in Ivanhoe of a subsidiary, Rio Tinto International Holdings Ltd., into a direct ownership interest in the Mongolian project.
Rio Tinto and Ivanhoe are development partners for the Oyu Tolgoi project. Production is expected to commence in 2013, with a five-year ramp up to full production.
Ivanhoe declined to comment on Rio Tinto's filing or its discussions.
But in May, deputy chairman Peter Meredith told a London conference that the project would likely have another partner and that it makes sense for Chinese interests to study investment in the mine.
After the completion of the exercise of the series A warrants, Rio Tinto will own 144.66 million Ivanhoe shares. If Rio Tinto were to exercise all of its remaining share purchase warrants and convert its US$350-million loan into shares, it would own approximately 267.8 million shares of Ivanhoe representing some 44 per cent of the company.
Rio Tinto is a leading international mining group headquartered in the United Kingdom, combining Rio Tinto plc, a London- and NYSE-listed company, and Rio Tinto Ltd., which is listed on the Australian Securities Exchange.

Vancouver-based Ivanhoe is an international mineral exploration and development company. Besides its stake in the Mongolian project, it has a 57 per cent interest in Mongolian coal miner SouthGobi Resources (TSX:SGQ).

It also has an 81 per cent interest in Ivanhoe Australia, an exploration and development company, and a 50 per cent interest in Altynalmas Gold Ltd., a company developing the Kyzyl gold project in Kazakhstan.

Its shares closed up 70 cents, or 5.36 per cent at $13.76 in trading Wednesday on the Toronto Stock Exchange.

Source:http://www.winnipegfreepress.com

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In Mongolia, sex tourism by S. Korean males leads to anti-Korean sentiment

With Korean men contributing to growth of industry, the damage to Korea’s image has increased


South Koreans’ sex tourism to Mongolia remains widespread. According to an investigative report by The Hankyoreh, Mongolians accused South Korean tourists of spawning a culture of buying sex in their country. In 2002, a South Korean opened the first karaoke bar in Mongolia’s capital city of Ulan Bator and most karaoke bars in Mongolia are owned by South Koreans. The number of karaoke bars in Mongolia has increased to include some 50 bars.

A 35-year-old South Korean businessman, who is only identified by the surname Park and lives in Mongolia, told The Hankyoreh, “When men visit, their purpose is obvious, so the number of bars has increased significantly.”

A Mongolian tour guide, identified only as Matha, said, “Regardless of age, more than 70 percent of male tourists on group tours buy sex.” The tour guide showed a list of business cards that he had received from South Korean tourists, who included a manager of a well-known securities company and a local government official.

Some South Korean nationals who live in Mongolia say they have seen older men who have a 20-something local woman as a mistress. A female South Korean national in Mongolia, who is only identified by her surname Park, said, “Korean men here have the worst behavior. For instance, a 70-something (Korean) man had a Mongolian woman as a mistress. When she got pregnant, he abandoned her and ran away.”

The South Korean embassy in Mongolia said, “Sex tourism is undermining the image of South Korea and its people.” At the end of 2007, there were some 3,000 South Korean nationals in Mongolia. Last year, the number of South Korean tourists to Mongolia stood at some 40,000 people.

With the practice remaining widespread, the Mongolian government stepped up its crackdown on sex tourism by passing new anti-prostitution laws last year. However, the effect was nothing more than a reduction in a few number of karaoke bars.

Perhaps even worse is there are signs that the crackdown has had an adverse effect on the industry. To avoid the crackdown, prostitution has spread to horseback-riding schools, massage parlours and others. An official at a Mongolian horseback-riding school, which is only identified by the letter “G” and is located an hour’s drive from the city center, said, “When (men who are here as sex tourists) arrive at the airport, they are escorted here. Local women arrive here in a different van. When they move off to the grassland, (the women) are accompanied by the men.”

The increase in sex tourism by South Korean male visitors has been a source of rising anti-Korean sentiment among Mongolians, according to South Korean nationals in the country. A 38-year-old South Korean national, who is only identified by the surname Lee and has lived in Mongolia for three years, said the number of assault cases against Korean people is on the rise.

A 42-year-old local tour guide, who is only identified as Temuchin, said, “Anti-Korean sentiment is high because (Korean men) buy sex from (local) women.”

With the recent emergence of a right-wing organization in Mongolia, the damage to Korean people is growing further.

Erden Birk, the head of the country’s biggest right-wing organization, Daiyar, said, “There have been cases in which four 60-something men spent time with one 20-something woman in a room until morning and others in which tourists go directly to an underground karaoke bar at their hotel as soon as they arrive from the airport, without even unpacking their baggage. If these things continue to happen, it will be difficult to stop the violence.”

Last year, South Korea’s Ministry of Gender Equality and Family revised a passport law and the government is now allowed to ban

people who have been arrested for buying sex from being issued new passports or passport renewals. However, the effect of the ban has so far been negligible. Bae Lim Sook-il, the head of the Incheon Women’s Hotline, said, “Prostitution (in South Korea) isn’t even being punished properly. So the government can’t punish people for soliciting prostitution in foreign countries.”

Lee Na-young, a sociology professor at ChungAng University, said, “The mindset and culture of Korean males, which view females as objects of entertainment, needs to be fundamentally changed.”

Please direct questions or comments to [englishhani@hani.co.kr]

Source:http://english.hani.co.kr/arti/english_edition/e_international/298846.html

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Mongolia continues fight against foot-and-mouth disease

ULAN BATOR, July 6 (Xinhua) -- The government will continue to fight foot-and-mouth disease in eastern Mongolia by vaccinating millions of livestock, officials said Tuesday.

Efforts to fight the disease in eastern Mongolia were continuing and the vaccination of the country's livestock would also continue, Enkhbold Miegombo, deputy premier and chairman of the national emergency commission, said during a commission meeting.

The commission said the government has spent 326 million Tugrig (0.22 million U.S. dollars) on the vaccination of cattle herds. So far, 1,400 infected cattle have been slaughtered and buried in Dornod province.

Meanwhile, the ministry of food, agriculture and light industry has proposed to vaccinate all 7.1 million livestock in Khentii, Sukhbaatar, Umnugobi, and Dornogobi provinces.

Emergency officials were also attempting to monitor the movement of about 10,000 whitetail gazelle herds in eastern Dornod province.

The first symptoms of foot-and-mouth disease, a highly contagious and fatal disease in animals, was detected April 22 in cattle herds in Dornod province.

Since then, a quarantine has been imposed in the province. The disease, however, has broken out five times in the villages of Matad, Bayantumen, Khalkhgol, and Bulgan since May 14.

source: xinhua

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Mongolia promotes use of traditional script

ULAN BATOR, July 6 (Xinhua) -- Mongolian President Elbegdorj Tsakhia on Tuesday issued a decree to promote the use of the traditional Mongolian script.

"Official letters by president, speaker of the parliament, prime minister and cabinet members of government to officials of other countries in similar positions shall be written in traditional Mongolian script and will be translated to the language of that country or any of the official languages of the United Nations and be attached," said the decree.

The decree also mandates the use of traditional Mongolian script in official documents such as birth and marriage certificates, educational certificates and diplomas along with the Cyrillic alphabet.

The decree will enter into force on July 11.

The traditional Mongolian script is an alphabet used by Mongolia until 1946 when Cyrillic alphabet was introduced under the pressure of the Soviet Union. The majority of Mongolia's 2.7 million people don't know how to write and read it.

source: xinhua.net

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PROGRAM OF NAADAM FESTIVAL

The program of the Naadam festival has been approved for the 804th anniversary of the Great Mongol Empire and the 89th anniversary of the People's Revolution in Mongolia

July 10, Saturday
08:00-10:40 am- Khyazaalan race for 4-years-old-horses at Khui Doloon Khudag horse race arena
10:00-10:40 am-Opening of national archery contest in the Archery Arena
10:00-11:00 am-Ceremony of raising the state flag and a parade of honor on the Sukhbaatar square
10:30 am-05:00 pm-Archery
10:30 am-Opening of painting exhibition "Across Beautiful Mongolia"
11:00 am-Opening of ankle bone shooting contest
11:40-12:00 am-Ceremony of laying wreaths to monuments of Chingis Khaan and D.Sukhbaatar
02:00-04:30 pm- Shudlen race for 3-year-old horses
02:00-05:00 pm-Concert of honor in Central Cultural Palace

July 11, Sunday
08:00-10:40--Horse race Azarga, stallions
10:00 am-Ankle bone shooting (semi-final)
11:00 am-Ceremony of moving the Nine White Banners from the Government House to Central Stadium
11:10 am-President Ts.Elbegdorj will open the Naadam festival
11:20 am-Opening of Naadam festival
11:50 am-03:00 pm-First round of national wrestling
02:00-04:40 pm-- Ikh Nas, a race for 6 and over years horses
01:30-04:00 pm-First round of children's national wrestling
01:30-02:00 pm-Demo archery contest
02:00 pm-Ankle bone shooting (semi-final)
02:00-05:00 pm--Khasaa Archery at the Archery stadium
03:20-06:00 pm-2nd round of national wrestling
04:20-06:00 pm-2nd round of children's wrestling
06:30-11:00 pm-"Ulaanbaatar's evening" concert on the Sukhbaatar square
11:00 pm-- Salute of the Naadam

July 12, Monday
&nbs presents awards to the champions of archery and ankle bone shooting
03:20-04:00 pm--6th round of national wrestling
03:20-04:00 pm--5th round of children's wrestling
04:00 pm--Praise ceremony of winning horses at the Central Stadium
04:20 pm--Presentations of gifts to children jockeys by President Ts.Elbegdorj
04:40-05:10 pm--6th round of children's wrestling
04:40-05:20 pm--7th round of the national wrestling
05:20-05:40 pm--Awarding the "Nachin" and "Khartsaga" titles to wrestlers by President Ts.Elbegdorj
05:50-06:40 pm--8th round of the national wrestling
06:30-07:00 pm--7th round of children's wrestling
06:45-07:05 pm--Award ceremony of "Zaan" titled winning wrestlers by Ts.Elbegdorj
07:00-07:30 pm--9th round of the national wrestling
07:45-08:00 pm--President Ts.Elbegdorj presents awards to the wrestling champions of the Naadam
08:05 pm--President Ts.Elbegdoj closes the Naadam Festival
08:10 pm--Closing ceremony of the Naadam Festival and moving State White Banners back to the Government House

July 13, Tuesday

10:00 am-Open tourism day called "Mongolians in Deel" on Sukhbaatar square
11:00 am-Day of horse race trainers at Khui Doloon Khudag

Cultural and art performances and service for the 804th anniversary of Great Mongolian State, and the 89th anniversary of the Mongolian People's Revolution
July 9-13 Academic Ensemble of National Songs and Dance:
06:00 pm-Concert named "Amazing Mongolian art"

July 12
08:00 pm-National orchestra concert named "Beautiful Mongolia"

July 13
08:00 pm-Dance concert named "Wonders of Mongolian dance"

July 11 Academic Theatre of Opera and Ballet:
05:00 pm-"La traviat 07:00 pm -Comedy by "Shine Uye" production
July 13
06:00 pm-Polish folk concert of the "Istebna" ensemble

July 9-13 Central Cultural Palace of Mongolian Trade Unions:
07:00 pm-Comedy by "X-tsuts" group

July 9-13
06:00 pm-Concert for tourists by the "Tumen Ekh" national songs and dance ensemble

July 10-13 "Tengis" movie theatre:
10:30 am-07:00 pm-New film days

"Orgoo cinema" movie theatre:
10:00 am-10:30 pm-Movies-Iron man-2, Babies, the Karate Kid and Kick Ass

July 9-13 Confederation of Mongolian Creative Artists:
10:00 am-07:00 pm-Painting exhibition named "Across Beautiful Mongolia"

July 6-10 Fine Art Gallery:
09:00 am-06:00 pm-photo exhibition named "To all hearts for Mongolia"

July 8-14
09:00 am-06:00 pm-Exhibition of Buryat artists' pictures

On July 9-13-Open will be National Historical Museum, Natural Historical Museum, Palace Museum of Bogd Khaan, Fine Art Museum of Zanabazar, Museum of Ulaanbaatar city's History and Reform, Museum for Victims of Political Persecution, Museum of Choijin Lama, International Museum of Intelligence.
In addition, demonstration of polo sport will take place at Khui Doloon Khudag horse race arena.

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Banking Law comes into effect, on paper

The new law under which banks must reveal the names of their directors and major shareholders took effect on July 1. This information will help customers choose a bank and will also helpful the general public to track the ownership of financial institutions. However, the banks’ websites do not give much information that will help in either. This is what we found.

1. Golomt Bank was established in 1995. Its Representative Administrative Board comprises D.Bayasgalan, L.Boldkhuyag, and M.Zorigt. The bank accounts for 23 percent share of the banking sector, is fully Mongolian invested and is the only bank in the country receiving financial support from Credit Suisse.

2. XAC Bank was established in 2001 when Development Golden Fund LLC and Gobiin Ekhlel LLC merged. The Director of its Representative Administrative Board is Ch.Ganbold, and the members are M.Bold, S.Bekhbat, P.Erdenejargal, Ch.Gankhuyag, J.Anderson, M.Madden. O.Marcuet, R.Ranken, and S.Jary

3. Capital Bank got the new name in 2003. Mongolia’s transition to the market economy brought with it the urgent need to restructure banking and financial systems in the country. In 1990, 16 state and private factories and business entities established the Industrial Shareholding Bank which was precursor to Capital Bank. In 1998, the bank was renamed Renovation Bank and in 2003, all members of the Board approved a proposal to change its name. It is the first private commercial bank with 100 percent domestic investment.

4. Capitron Bank – no information.

5. Credit Bank – no information.

6. Erel Bank – no information.

7. Chinggis Khaan Bank gives all details of its administration team on the website. The Director of its Representative Administrative Board is Sergei Gromov.

8. Trade and Development Bank – no information.

9. Savings Bank – The Representative Administrative Board menu of the bank’s website is under construction.

10. Khan Bank – All details of the Representative Administrative Board are on the website.

11. Trans Bank was established in 1997. It cooperates with Russia’s Sudostroitelni, Russlavbank, Baikalbank, Mejdunarodni Bank of Economic Cooperation, Austria’s Raffaisingbank, and China’s China Construction Bank Corporation. Its shareholders are D.Enkhtaivan, D.Enkhtuya, B.Orgilmaa and Infrastructure LLC

As we saw most of the banks reveal nothing about their shareholding pattern.
source: news.mn

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Parliament rushing to approve Tavantolgoi project proposal

The draft Government proposal on Tavantolgoi, a project expected to be a powerful levers for Mongolia’s economic development, is all set to be approved by Parliament in the present session before it concludes on July 9. Last Friday, the draft got the approval of both party groups in Parliament. The DP group did not attend the meeting of the Standing Committee on the Economy but later announced its support for the proposal. The Standing Committee meeting started around 5 pm and discussed the report of the working group set up by Parliament.

The report made the following recommendations.

1. A new state-owned company to be called Erdenes-Tavantolgoi will be established and it will hold the license to the deposit. It will also sign the final investment agreement with an operator company to do the extraction work.

2. Citizens will get 10 percent of the shares of this new company free.

3. Another 10 percent of the shares will be sold to companies that were registered before June 31, 2010 and that have paid all taxes.

4. Another 30 percent of the shares will be offered in domestic and foreign stock markets

5. The ownership of Erdenes MGL, now state-owned, will be privatized.

The issue was then discussed in Parliament.

MP D.Gankhuyag said apart from Oyutolgoi, exploration of all the other 14 strategic deposits were made with state funds. “How then are some companies operating in Tavantolgoi today without any state participation?” he asked.

The head of the standing committee, Ts.Bayarsaikhan, explained that by the late 1990s, 51 percent of Tavantolgoi had become private property. Energy Resources started work. In 1997, 96 percent of the mine was returned to state ownership under the Minerals Law. The companies were given compensation. Erdenes MGL now owns this 96 percent of Tavantolgoi.

The director of Erdenes MGL said initial Russian estimates that Tavantolgoi held 1 billion 32 million tons of coking coal and 1.3 billion tons of thermal coal are likely to be wrong. After a long discussion, the draft was approved by more than 90 percent of the MPs. It was transferred to Standing Committee to be prepared for the final discussion.

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Young American dies on hiking trip in Bogd Khan park

The police have concluded that U.S. citizen Colin McLain froze to his death during a hiking trip in Bogd Khan National Park, south of Ulaanbaatar, over the weekend. The 25-year-old was in the country to do an eight-week "externship" with the legal adviser to the President of Mongolia. He arrived here at the end of May and was due to return to the United States in August.

According to his family in the USA, Colin was hiking with another American. They had water, a map and all the supplies they needed. The two stopped to camp the first night and when they were close to their destination the following day, Colin stopped to rest. He reportedly told the other American to continue without him and that he"d catch up. "The other guy went on," Colin’s grandfather told media. "He assumed Colin made it out. ... He didn"t report him missing for 36 hours."

Searchers found Colin"s body on Tuesday.


source: www.news.mn

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EBRD loans $180 million for Mongolia coal washing plant

The European Bank for Reconstruction and Development said Tuesday it
agreed to a $180 million loan for the construction of the first coal washing
plant in Mongolia at Energy Resources' Ukhaa Khudag (UHG) coking coal mine in
South Gobi.

The new coal handling and preparation plant at the UHG mine will allow
Energy Resources to boost exports and increase competitiveness in both
international and domestic markets, a statement Tuesday from the London-based
bank said.

The EBRD said in March 2009 it was taking an equity stake in privately-
held Energy Resources through an investment of up to $30 million.

The Ukhaa Hudag deposit in southern Mongolia, about 200 km north of the
border with China, has a future expected production life of over 100 years,
the EBRD said at the time.

Energy Resources is a Mongolian consortium, comprising three domestic
groups.
--Hector Forster, hector_forster@platts.com

Source:www.platts.com

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Prosecutor General wants anti-corruption agency head dismissed

The State Prosecutor General yesterday sent a letter to Parliament requesting it to dismiss Ch.Sangaragchaa, head of the Anti- Corruption Agency (ACA). This was revealed to media on Tuesday by L.Bold, an aide to the Prosecutor General, and B.Galdaa, head of the investigation unit in his office.

The Prosecutor General has concluded after an investigation that Sangaragchaa has misused funds allocated to the agency from the budget. The ACA head holds the move is “a conspiracy” against him. According to him the law allows Agency staff to receive a one-time allowance to buy an apartment. “There has been no violation of the law in giving 16 of our 90 workers this allowance,” he told journalists.

source:www.news.mn

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Policeman’s notebook shows how evidence was fabricated

Today is the second anniversary of the incidents of July 1, 2008 which ended with five deaths from police firing. Senior officials such as the head of the General Police Authority, Maj-Gen. Ch.Amarbold, the head of the Metropolitan Police Authority, Mr. O.Zorigt, the head of the Public Discipline Department, Mr. G.Ganbaatar, and the head of the Patrol Department, Mr. Sh.Batsukh, were investigated for abuse of power and causing massive damage. Policemen Ya.Khorlooryembuuchii, D.Tumurbaatar, U.Darjaa, Yu.Gantulga, A.Uuganbayar, B.Battseren and N.Ariunbold were investigated for intended murder.

After 18 months of investigation, the cases against all of them were withdrawn on February 3, 2010 under orders from Mr. Yo.Sagsai, investigating prosecutor at the Metropolitan Prosecuting Authority. The senior officials were cleared under the Amnesty Law, while the cases against the policemen were closed with the explanation that “even though they had admitted to opening fire, it cannot be ascertained who fired the fatal shots.”

New evidence has now been found that may hold the key to solving this issue. It is the notebook of a man whose identity is being kept secret. Some police officials mentioned in the notebook are here referred to as “He” or “She”. No other change has been made.

Note

… I am writing this because vice colonel “He” came on July 3 and ordered us to tell the truth.

2008 July 2

- The directors called us to their room one by one and said we were to tell any investigator, “We were told that a blue vehicle came out extremely fast from the south to north road near the Foreign MInistry and a man holding a thermos bottle is shooting us”. Vice colonel S.Darjaa told us to carefully stick to this statement.

- Colonel Batsukh met all of us individually and asked us to say that the police shot in the air with training bullets. People shot at us. Vice Colonel S.Darjaa also supported this.

- Vice commander “He” saw vice colonel Darjaa shoot. “He” said beside “Him” that two shots were fired near tall building.

2008 July 3

- Chief Commander Mandakh talked about aiming at the legs of a man when going with vice colonel “He”. He also said that he was unsure he had hit the man, even though the man was then seen limping. He said weapons specialist chief commander Batdorj knew about this. “He” was eating lunch with “He” and “He” in the cafeteria of the division when they talked about this.

- There were several policemen of the second division standing at the entrance. One of them said, “I saw division governor/commander Batsukh shoot a child in the stomach from inside the car. He shoots well.”

- The mirror of the patrol car which Batsukh drove was broken and had a mark of a small gun. Seeing that, captain Khorlooryenbuuchii said in the presence of everyone “Why didn’t you change this mirror?”

-Chief commander Batdorj told “He”, “He” and me, “It seems that I’m going to be the guilty one for giving the bullets.”

-Vice colonel “He”: Don’t tell lies as Batsukh said. Don’t tell that you used training bullets. Batsukh went to meet director Amarbold. Thus tell the truth!

2008 July 4

- Vice commander “He” called me at home at 8.45 a.m. “We are moving. The bullets have been found and collected. Now we will say we used training bullets.”

- At 1 p.m., Vice Colonel Darjaa gave us training bullet shells and told us to secretly drop them at places where the protest had been strong. And reminded us to say we used training bullets when giving testimony. At that time vice colonel Ganbaatar of Metropolitan Police also repeated that we should say that we used training bullets and cautioned us not to say anything otherwise to prosecutors.

- Chief commander of 6th division Munkhbayar, driver Sukhbat, vice commander Ganbaatar and Batdorj had small guns on that day. They agreed not to tell anyone. Told us that people in black vehicle had opened fire on us.

- When “He” said the remaining bullets had not been found, Batsukh said it was fired. At that time UBZ 4059 blue car had its mirror changed.

- at 8.50 chief colonel “He” called and said “Come and sign the paper that you took training bullets. Then go home.”

2008 June 18

- At 23 pm vice colonel Myagmarjav and division commander Batsukh said we will be interrogated. If any of you are not sure what to say, tell us now. Your guns will be fixed.

2009 May 30

- chief commander “He” talked with “He” and arranged a meeting near Opera House. There, “He” said “He” might be called by the prosecutors. Director “He” said that the testimony given by “He” is very uncomfortable. If “He” is called by the prosecutor just tell him you did not give evidence.

The above notes were written by a policeman of sixth division of Patrol Department. It is clearly seen that the police authorities took many measures to hide the evidence. It is not clear if this note will be taken up as evidence.

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Mongolia, Saudi Arabia to boost mining cooperation

Mongolia and Saudi Arabia on Tuesday pledged to step up their cooperation in the mining and minerals sectors.

There is full potential for successful and mutually beneficial cooperation between the two countries, Prime Minister Batbold Sukhbaatar said during a meeting with a Saudi Arabian delegation led by Ali bin Ibrahim Al-Naimi, Saudi Arabia's Minister of Petroleum and Mineral Resources.

Sukhbaatar stressed the need to raise current bilateral cooperation to a new level, especially in the mining and minerals sectors, which are the two countries' most dominant economic sectors.

The prime minister added that Mongolia could learn from Saudi Arabia's experience in oil exploitation, capitalization and management.

The Saudi oil minister said that his visit to Mongolia aims to explore opportunities for mutual cooperation and investment in the mining sector.

The minister said that the Saudi Chamber of Commerce and Industry looks forward to strengthening bilateral cooperation with Mongolia.

The Saudi minister also expressed willingness to help train Mongolian oil specialists and create opportunities for Saudi businessmen to invest in the Asian country.

Source: Xinhua

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Mongolia coal railway to connect with Russia

ULAN BATOR, Mongolia (AP) – Mongolian lawmakers have approved plans for a rail line linking with Russia to help tap large coal deposits in the south, the latest move in the long-delayed project that could make the poor but mineral-rich nation less dependent on exporting to China.

The landlocked country of 2.7 million people is trying to retain more of its natural wealth from its huge mineral deposits, including copper, gold and coal. Plans to expand output and open new mines have stalled as the government struggles to re-negotiate terms on mining concessions with big foreign companies.

The huge Tavan Tolgoi coking coal deposit in the south Gobi region, estimated to have more than 6 billion tons of coal, has attracted interest from 10 international mining companies including China's Shenhua Energy, a Russian consortium led by Gazprom, and Australia's BHP Billiton.

Lawmakers on Thursday voted nearly unanimously in favor of building the line and making it broad gauge, refering to the distance between the rails, so it could link up with Russia's rail network. There were concerns that if the rail were standard gauge like China's rail system, too much of the commodity would end up flowing to coal-hungry China at bargain prices. China currently takes about two thirds of Mongolia's exports.

The deposits are located only about 200 kilometers (124 miles) from the Chinese border but Transportation Minister Battulga Khaltmaa said Mongolia would rather sell processed coal to Japan and South Korea. "The policy will greatly boost the economic development of Mongolia. Instead of shipping raw materials directly to one market, jobs and value-added production will be created in Mongolia,'' he said.

The 1,100 kilometer (683.54 mile) railway will connect Tavan Tolgoi to the Russian border, the minister said. The country will invite international bidding for the railway's construction, which is expected to be completed in two years.

Tavan Tolgoi was discovered in the 1950s, when Mongolia was a Soviet satellite. The country made a peaceful transition to democracy in the early 1990s.
source: http://www.mb.com

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