Amendments to Mongolia’s 2006 Minerals Law lifting a four-year ban on new mineral resource exploration licences and extending the validity of such licenses to 12 from nine years are the focal point of July’s newsletter of Mongolia-focused Singaporean mining company Canrim Resources.
The amendments, passed in July and seen as an effective means of boosting investment, also increase the proportion of Mongolia’s area available to mining and exploration.
“Glenn Griesbach, VP of Resource Development, and our team in Mongolia continued their detailed due diligence on potential licenses for acquisition, predominately in copper/gold and other base metal resources. With renewed interest in the secondary license market, Canrim has also identified value in several projects currently under review. Preferring to be scrupulous with assets the Company acquires, we are moving cautiously in order to mitigate a rise in capital expenditures as there is little competition at present. We believe our prudence will keep Canrim in an attractive position,” Canrim says in the newsletter, made available to EmergingMarkets.me.
As other highlights of last month, the newsletter mentions a Mongolian-Japanese free trade agreement signed on July 22, a three-year extension on July 14 of a 10bn-renminbi currency swap deal between Mongolia and China, and the Mongolian central bank’s order of July 30 raising the interest rate by 1.5% to 12% to curb inflation.
“Mongolia remains one of the most under-explored geologically attractive regions in the world and is strategically positioned near to the commodity consuming nations of China, Russia, South Korea and Japan,” Canrim says in its newsletter.
Canrim operates in both the primary and secondary markets and takes up select infrastructure projects. Its management has a combined experience of more than 50 years in Mongolia’s resource sector. The company has offices in Singapore and Ulaanbaatar.
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