Mongolia mines pose threats on several fronts « Mining Blog

Mongolia mines pose threats on several fronts

29. July 2011,

According to a report in London’s Evening Standard (22 July 2011) the London Stock Exchange (LSE) is “fighting” to secure the right to float a huge £3bn Mongolian coal mine, in competiton with the Hong Kong Stock Exchange (HKe).

Tavan Tolgoi expects to raise between $1.5 and $5 billion next year – at the top price it would rank as the priciest single coal asset on the planet. But says the Evening Standard, “Mongolian officials are vacillating between a dual and triple listing, on the Mongolian bourse plus either the Hong Kong Stock Exchange or London, or all three.

“The LSE, the US NASDAQ and the HKSE are among the groups that submitted proposals to help privatise the asset.

“Executives from some 20 investment banks visited Mongolia earlier this year to fight for a place on the lucrative deal. Of those, Goldman Sachs, Deutsche Bank, BNP Paribas and Macquarie were shortlisted.

“LSE chiefs also visited Mongolia in April and signed an agreement to modernise the country’s financial infrastructure and stock-market system”

Mongolia’s three million inhabitants are sitting on a huge gold mine – and literally. The country’s biggest upcoming mine is a copper-gold enterprise, owned by Ivanhoe Mines of Canada and UK-Australian Rio Tinto.

In theory, and if shared equitably, taxes paid by forthcoming mines could see Monglian citizens becoming some of the richest in the world. However, the social and environmental price to be paid for this will be immense.

An organisaton, calling itself “Fire Nation” , set up by Mongolian herdspeople ,has already taken action to halt uncontrolled mineral exploitation – and one of its leaders has ended up in jail. See:

http://www.minesandcommunities.org/article.php?a=11050&l=1

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