THE COMPANY: Originally a state-owned company, Sharyn Gol was partially privatised and listed on the Mongolian Stock Exchange in 1995. It became 100% private in 2003. The firm has undergone complete restructuring since a New York-based company, Firebird Fund, acquired 61% of it. In January 2011 Sharyn Gol was named “most transparent joint stock company” at an event organised for the 20th anniversary…
Fundraising offshore has been a major trend among Mongolian corporates over the last three years. While commodities slumped in 2012 and political risk reemerged on foreign investors’ radar, Mongolia seems likely to continue tapping international markets via both debt and equity issuance in coming years. The government, however, must be cautious to preserve investor appetite for new issues by…
Since the dawn of democratic Mongolia back in 1989-90, much has changed internally, as the country has sought to negotiate the new, post-Cold-War epoch. This has involved not only embracing new ideas, but also a revised orientation towards neighbours and the wider international community in an era of rapid globalisation. This process has faced various strains, as the events of 2012 clearly…
With 14 commercial banks in a market of MNT10.11trn ($7.1bn) in assets by June 2012, Mongolia is one of the more fragmented banking markets in terms of number of lenders. Yet the years since the financial crisis of 2008 have witnessed a rapid concentration of business in the hands of five top banks: Khan Bank, Golomt Bank and Trade and Development Bank (TDB) – the “big three” – as well…
Mongolia’s reputation as a suitable destination for foreign investment suffered in 2012, as mining companies along with those in other sectors came under a new and restrictive legal regime: the Strategic Entities Foreign Investment Law of Mongolia, which passed in May. This legislation, combined with a high-profile merger, the government’s cancellation of some double-taxation agreements in…
THE COMPANY: Not to be confused with Erdenes Tavan Tolgoi, Tavan Tolgoi Joint-Stock Company (TT JSC, also known as Small Tavan Tolgoi) is still one of the largest coal mining companies in Mongolia. The firm’s name means “five hills” and refers to the area’s landscape. The company is part of the larger Tavan Tolgoi deposit, the world’s largest undeveloped coking coal deposit, which is…
autumn session that year, a group of legislators called on the government to seek a renegotiation of the OT deal. At issue was the point at which the government has the right to increase its stake in the mine from 34% to 51%. According to the initial agreement, Mongolia can boost its stake to 51% once Rio Tinto has recovered the costs of developing it, or after 30 years. Mongolia wants to do so sooner.…
Though Mongolia’s mining industry is still relatively young and new factors may change the calculus, for now its fortunes are expected to rise and fall with China, which is the primary buyer for the country’s mining output and highly likely to continue in that role. Given that relationship, Mongolian-economy watchers have been paying close attention to trends there in hopes of forecasting…
Ulaanbaatar is the only city in Mongolia with more than 100,000 people, but opportunities outside the capital city are in many cases as attractive as those within its borders. Towns that have until now been sleepy frontier outposts are set for a transformation thanks to the mining sector – labour demands at the mines will mean the need for housing, services, industrial applications, transportation…
In such a highly seasonal market the break-even point has been challenging for most tour operators to reach. While tourist arrivals have grown over the past decade, the number of operators has surged and only a handful in the sector are able to thrive on the basis of a four-month high season alone. Although new air links may diversify the type and increase the number of tourists, tour agencies…
