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BCM Mongolia NewsWire Highlights: Courts, Cards, Tinpo and Treasures |
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Friday, 08 August 2008 |
 NEWS HIGHLIGHTS:
Business:
Western Prospector starts mailing Tinpo offer; Khan Bank’s new card for China; Ereen coal site likely to open in October; Centerra Gold reports second quarter earnings; More coal in South Gobi Energy Resources’ Ovoot Tolgoi site; Petrochina apologizes for border brawl; Euromoney’s ‘Mongolia Investment Forum-2008’ next month in Ulaanbaatar; Delegation from Germany to meet with BCM members on August 25.
Economy:
The Bank of Mongolia issues half-year report; Consumer prices rise 32.6 percent in 12 months; Kazakhstan-Mongolia road planned; Mongolia asks visiting Emir of Kuwait for oil; China to build new rail line to import Mongolian coal; Urban migration: risk or reward?
Politics:
President’s advisor asks DP to go to court, if it thinks it has a case; MPRP group presents draft of “treasure share” plan; Mongolia and S. Korea discuss military cooperation.
WESTERN PROSPECTOR STARTS MAILING TINPO OFFER
The Western Prospector Group announced on Tuesday that they had begun mailing the previously announced offer from Tinpo Holdings to acquire all of the issued and outstanding common shares of Western for cash consideration of $1.34 per share. The mailing of the offer and take-over bid circular is accompanied by a circular of the Western board of directors, in which the Western board unanimously recommends that the holders of shares accept the offer.
The offer is open for acceptance until 5 p.m. (Vancouver time) on September 11, unless withdrawn or extended. The offer is subject to certain conditions, including there having been validly deposited under the offer and not withdrawn such number of shares which, together with any shares beneficially owned, controlled or directed by Tinpo, its affiliates or joint actors, represent at least 66 2/3% of the issued and outstanding shares (on a fully diluted basis).
KHAN BANK’S NEW CARD FOR CHINA
The Khan Bank’s new China Union Pay (CUP) card is aimed at offering protection to Mongolian businessmen in China against cash loss risks. It will also make it easier for Mongolians to transfer money to friends and relatives studying and living in China.
Holders of the new card will be able to use it in trade transactions and public services in the settlement areas of China and to withdraw Chinese Yuan in cash from over 120,000 ATMs there.
PRESIDENT’S ADVISOR ASKS DP TO GO TO COURT, IF IT THINKS IT HAS A CASE
D.Zumberelkham, legal advisor to President N.Enkhbayar, feels the
Democratic Party should move court, instead of holding up business. He
told media on August 5 that the President called Parliament into
session, but he certainly could not apply force to swear members in.
The legal expert said most of the DP demands that are holding up
scheduled business cannot be resolved politically. “If they think they
have a case they should go to court, instead of holding the entire
political process to ransom by posing obstacles to everything by making
demands. Mongolia has a legal system and only a competent court can
decide whether the GEC had acted within the law or not.”
He favored Parliament going into recess as soon as the new MPs are
sworn in. After passions cool and negotiations have borne some fruit,
Parliament will again meet and the autumn session can start functioning
normally. He noted that the law is vague about taking the oath, as no
action is recommended against anyone not doing so. Asked whether the
GEC head had acted legally, the advisor said conventions also are
important. In earlier elections the GEC had acted similarly and nobody
objected.
MPRP GROUP PRESENTS DRAFT OF “TREASURE SHARE” PLAN
A working group set up by the MPRP to devise ways of distributing what
is called “Treasure share” recently presented the first draft of its
formulation. After studying the experience of other countries the group
feels the most practical way of distributing the monetary value of the
country’s exhaustible resources would be through creating a special
fund. Distribution of cash might trigger inflation and so citizens must
be given their share of the benefits in alternative ways. For example,
they could hold certificates to receive free education or health care.
The fund would be financed by the mining sector. It will not be part of
the state budget, as a fall in minerals prices is always possible. The
working group feels it should be possible to allot Tg 1.5 million to
each citizen from the fund by next year, or latest by 2010.
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