August saw business return to usual in Mongolia as those in the countryside for an extended Naadam holiday returned to the city. This was followed by a high level visit from Chinese President Xi Jinping to Ulaanbaatar from August 21 to 22. Multiple agreements in infrastructure and mining were signed and now need to be executed on.
One agreement of particular importance between the two countries was the joint declaration to upgrade bilateral ties to a Comprehensive Strategic Partnership. Mr. Jinping’s visit led to increased optimism from foreign investors, who have shown a renewed interest in Mongolia, as well as recent appreciation of the Tugrik.
Minerals sector activity also gained momentum with the competitive tendering of the first 14, predominantly copper/gold and gold, exploration licenses in five years on August 22. Further license issuance is expected to follow as the new Minerals Policy states license coverage can increase to 19.89% from the current 7.6% of the country.
Internally, Canrim continues its process of due diligence on exploration licenses for potential acquisition. Several small-scale projects under review fall into a unique category which could be brought towards production during the 2015 field season, thus providing imminent cash flow, if we decide to pursue them. Focused on developing the business while considering measures to mitigate future dilution, such opportunities are attractive.
Mongolian Economic Update:
- August 21-22: Chinese President Xi Jinping visits Ulaanbaatar;
- August 21: Governors of the Bank of Mongolia & Bank of China expand
currency swap by RMB 5 billion to RMB 15 billion;
- August 22: MRAM issues first exploration licenses in five years;
- August 27: Viking Mines extends minimum subscription level for private
placement as Auminco Mines takeover is now unconditional;
-
September 03: President Vladimir Putin visits Ulaanbatar.
Sorry, comments are closed for this post.