An encouraging month for Mongolia, November saw significant progress on the political front. After our letter to shareholders discussing the change of leadership, with Prime Minister Chimed Saikhanbileg replacing Mr. Norovyn Altankhuyag, a coalition between the incumbent Democratic Party (DP) and opposition Mongolia People’s Party (MPP) was formed. Further, on Friday, December 5th Prime Minister Saikhanbileg proposed 19 new Ministers for 15 Ministries, thus setting the stage for a potentially prolonged period of political and economic stability.
Canrim views these developments as long awaited positives. Now able to move forward and repair a sputtering economy, the reissuance of licenses is expected to happen in the coming months, led by a new and proactive Minister of Mining, R.Jigjid.
Touching on operations, the company continues to review projects in the secondary market, several of which are currently of interest. Our burn rate remains in check and we will wait to scale operations until we begin acquisition of minerals properties. However, as the necessary “ingredients” are nearly in place, we expect Canrim’s operations in Mongolia to accelerate into 2015.
Mongolian Economic Update:
1. GDP increases by 7% in first 9 months
2. November 05: Aspire signs railway EPC framework deal
3. November 05: PM Norovyn Altankhuyag loses no confidence vote by 54.5%
4. November 18: Mogul Power LLC Signs binding Memorandum of Understanding
with Chinese for 600MW power plant
5. November 21: Chimed Saikhanbileg elected as new PM
6. November 29: MPP accepts invitation to form unity government
7. December 01: SGQ raises $9m to pay CIC
8. December 01: Mongolia enlists JPMorgan in establishing State Investment Fund
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