Category Archives: Mongolia News

Mongolia News

Rio Tinto gets Australian loan for Mongolian mine project 1

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Mongolia
Reposted from ABC Radio Australia

Mining giant Rio Tinto has secured funding support from the Australian government for its massive Oyu Tolgoi copper mine in Mongolia.

In March the United States refused to support the World Bank’s involvement in the same project.

Oyu Tolgoi is Mongolia’s largest investment project and is expected to boost the country’s economy by about one third when in production.

The six billion dollar mine is expected to start production in June after the settling of disputes between Rio Tinto and the Mongolian government. More…

Mongolia Economic Growth Slows to 7.2% as Coal Exports Decline Reply

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coal mongolia
Reposted from Bloomberg Businessweek
By Michael Kohn

Mongolia’s economic growth slowed in the first quarter after coal prices fell and moderating Chinese demand reduced the nation’s exports.

Gross domestic product, as measured by production in constant prices, grew 7.2 percent from a year ago, the National Statistical Office of Mongolia said on its website today. That compares with the 16.7 percent pace of expansion for the same period last year and a 12.3 percent annual rate for 2012. More…

Rio Tinto Expects Mongolia’s OK for Oyu Tolgoi Exports Soon 1

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Mongolia
Reposted from The Wall-Street Journal
By Rhiannon Hoyle

SYDNEY–Rio Tinto PLC (RIO.AU) expects final approvals from Mongolia to ship copper and gold from its Oyu Tolgoi mine within weeks, a big step forward for the nation’s largest investment project that has been caught up in a row over costs between the miner and the government.

Rio Tinto had previously targeted commercial production by the end of June, but now thinks it will be able to start shipping material to its customers by that time, Chief Executive Sam Walsh said Thursday. More…

Mongolia opens mine site to tender Reply

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Tavan Tolgoi contains up to 7.5 billion tonnes of high-quality coal.

Tavan Tolgoi contains up to 7.5 billion tonnes of high-quality coal.


Reposted from the South China Morning Post
By Reuters in Ulan Bator

Mongolia’s plan to develop the untapped western block of its massive Tavan Tolgoi coal mine will help raise cash from new customers to offset an exclusive but loss-making supply deal with China’s Chalco, an official with the mine’s developer said.

The mine’s state-owned operator, Erdenes Tavan Tolgoi (ETT), expects to begin exporting coal from the West Tsankhi coal field in the third quarter of this year after opening it up to tender last week, said Tsagaan-Uvgun Delgersaikhan, the head of mine planning at the firm. More…

Mongolia, amid influx of foreign money, clashes with a major partner, mining giant Rio Tinto Reply

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World of stock
Reposted from The Washington Post
By Michael Kohn and William Mellor

Outside, it’s minus 22 degrees as a February wind blasts across the Central Asian steppe and through the Mongolian capital, Ulaanbaatar. Inside Government House, President Tsakhia Elbegdorj delivers a televised speech that simultaneously warms his people and chills foreign investors.

The country’s 76 legislators have convened to debate the future of one of the planet’s richest copper and gold mines, Oyu Tolgoi, which is 66 percent owned by the London-based Rio Tinto Group and 34 percent owned by the state. Elbegdorj tells them Rio Tinto has let the project’s total cost balloon by $10 billion. The higher expenses, which Rio Tinto disputes, would diminish and delay profits the government shares in. More…

World Bank Cuts Growth Forecast for Mongolia as Exports Slow Reply

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mqu_april_2013
Reposted from Bloomberg Businessweek
By By Michael Kohn

The World Bank lowered its forecast for Mongolia’s economic expansion this year on falling exports and foreign investments, and said the government needs to better manage spending.

Mongolia’s gross domestic product may rise 13 percent this year, compared with a previous forecast of 16.2 percent, the World Bank said in a press statement. The government’s fiscal deficit jumped to 8.4 percent of GDP last year, a 13-year record, it said. More…

Mongolia to be energy self-sufficient by 2014, says minister Reply

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Mongolia
Reposted from The UB Post
By B.Khash-Erdene

Minister of Energy M.Sonompil said last week that the ministry is aiming to make Mongolia energy self sufficient by next year and plans to expand energy production further to eventually become an energy exporter. The minister’s comments came during a regular update on the ministry’s current projects and plans. The updates are part of the government’s actions to increase transparency. More…

Mongolia eases restrictions on miners Reply

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A Mongolian camel herder in front of Rio Tinto's Oyu Tolgoi copper-gold project, which is due to start production by July

A Mongolian camel herder in front of Rio Tinto’s Oyu Tolgoi copper-gold project, which is due to start production by July


Reposted from The Australian
By Rowan Callick

MONGOLIA, for years held out as a potential competitor with Australia to attract global investment for highly promising mining prospects, has faltered following the introduction a year ago of stringent regulations requiring parliament to approve foreign involvement in the industry.

But the country’s parliament, the State Great Hural, has now amended that tough legislation to ease restrictions on private investors while raising the bar on state-owned enterprise capital. More…

Mongolia Tavan Tolgoi says coal exports to China to resume on Monday Reply

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2-16-Oyu Tolgoi
Reposted from Reuters

Mongolia’s massive Tavan Tolgoi coal mine will resume exports of coking coal to China on Monday after suspending deliveries in January due to cost pressures, the state firm in charge of the project said.

Erdenes Tavan Tolgoi signed an initial $250 million coal sales agreement with Aluminium Corporation of China (Chalco) in July 2011, but halted deliveries in January, saying the price paid for the coal was below the cost of production. More…