The Company Gobi was established in 1981 with Japanese economic and technical assistance to process natural goat and camel hair and produce cashmere and camel wool products from these fibres. The company has since developed into one of the five largest cashmere producers in the world, and currently employees around 1000 people. Gobi was partially privatised in 1993, when 26.5% of its equity was floated…
The Company Mongolian Mining Corporation (MMC) is a coking coal production and export company headquartered in Ulaanbaatar, Mongolia, and was the first local coking coal producer to be listed on the Hong Kong Stock Exchange. The company participates in the mining, processing and manufacturing of coal products, and owns and operates an open-pit coking coal mine at the Ukhaa Khudag deposit in the Tavan…
The Company Separate from Erdenes Tavan Tolgoi, Tavan Tolgoi (TT), or small Tavan Tolgoi, is one of the largest coal mining companies in Mongolia. TT has around 80m tonnes of coking coal reserves and 100m tonnes of high-grade thermal coal reserves. The company operates in Tavan Tolgoi, one of the world’s largest untapped coking and thermal coal deposits, located 267 km from the Chinese border in…
The capital markets in Mongolia have recently benefitted from a series of positive reforms, key hirings and the introduction of new legislation. Together, these measures promise to help breathe life back into the country’s stocks and bonds. After almost four years of declining equity prices, more than half a decade with virtually no initial public offerings (IPOs) and weaker demand for Mongolia’s…
While early 2014 was a time of considerable uncertainty for the banking sector in Mongolia, the year turned out to be much better than expected. No banks failed or faced runs, and the institution that generated the greatest concern – Golomt Bank – fared well in the end. Questions about asset quality persist, and corporate governance may not yet be where it should be. However, with Golomt Bank looking…
Given its small, open economy with abundant resources including coal, copper, gold, zinc and fluorspar, Mongolia faces the same boom-and-bust cycles of any resource-dependent nation. The country has the natural endowments to provide opportunities for its 3m citizens; however, managing fluctuating growth rates, ranging from -1.3% in 2009 to 17.3% in 2011, as well as investment, trade and fiscal revenues,…
Wedged between two of the world’s largest economies, Mongolia’s trade and investment policies are something of a balancing act. Reliant on its neighbours for both trade and transit infrastructure, Mongolia’s small, open economy has integrated with the global one by developing relationships with “third neighbours” to improve terms of trade. As surging mineral exports in the past half-decade…
Located between economic heavyweights China and Russia, Mongolia’s traditional balancing act between its giant neighbours has come under increasing pressure in recent months, while winning and maintaining international investor confidence continues to be a multi-faceted and essential task. Expectations of rapid and sustainable growth among the country’s citizens now exist within the framework of…
In Mongolian Investor appetite towards Mongolia could be improving amid hopes Ulaanbaatar may be in the process of settling a long-running dispute with mining giant Rio Tinto over the development of phase two of the Oyu Tolgoi mine, allaying concerns over the government's ability to repay or roll over existing debt. The government said in early April it had agreed “in principle” to an agreement…
In Mongolian Despite abundant energy resources, Mongolia is struggling to meet its growing demand for electricity, increasingly relying on imports until long-term projects to develop new generation capacity are completed. Energy production rose by 6.7% last year, with a total of 5.5bn KWh being generated domestically, according to data issued by the Ministry of Energy at the end of February. The…
