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Report Date : |
19.09.2013 |
IDENTIFICATION DETAILS
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Name : |
MONGOLROSTSVETMET LLC |
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Formerly Known As : |
Mongolsovtsvetmet |
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Registered Office : |
Peace Avenue (Enkhtaivan Avenue) 98, 22nd Khoroo, Bayanzurkh District,
Ulaanbaatar |
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Country : |
Mongolia |
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Date of Incorporation : |
24.02.1973 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
· Mining and processing of acid grade fluorspar, met grade fluorspar, gold, coal, iron and silver. · Subject also provides exploration and geological survey works |
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No. of Employees : |
1,600 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Mongolia |
C1 |
C1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Mongolia ECONOMIC OVERVIEW
Mongolia's extensive mineral deposits and attendant growth in
mining-sector activities have transformed Mongolia's economy, which
traditionally has been dependent on herding and agriculture. Mongolia's copper,
gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten deposits, among
others, have attracted foreign direct investment. Soviet assistance, at its
height one-third of GDP, disappeared almost overnight in 1990 and 1991 at the
time of the dismantlement of the USSR. The following decade saw Mongolia endure
both deep recession, because of political inaction and natural disasters, as
well as economic growth, because of reform-embracing, free-market economics and
extensive privatization of the formerly state-run economy. The country opened a
fledgling stock exchange in 1991. Mongolia joined the World Trade Organization
in 1997 and seeks to expand its participation in regional economic and trade
regimes. Growth averaged nearly 9% per year in 2004-08 largely because of high copper
prices globally and new gold production. By late 2008, Mongolia was hit hard by
the global financial crisis. Slower global economic growth hurt the country's
exports, notably copper, and slashed government revenues. As a result,
Mongolia's real economy contracted 1.3% in 2009. In early 2009, the
International Monetary Fund reached a $236 million Stand-by Arrangement with
Mongolia and the country has largely emerged from the crisis with better
regulations and closer supervision. The banking sector strengthened but
weaknesses remain. In October 2009, Mongolia passed long-awaited legislation on
an investment agreement to develop the Oyu Tolgoi mine, considered to be among
the world's largest untapped copper deposits. Recent calls by nationalist
politicians to renegotiate the investment agreement, however, have called into
question the attractiveness of Mongolia as a destination for foreign direct
investment. Negotiations to develop the massive Tavan Tolgoi coal field face
similar obstacles. The economy grew by 6.4% in 2010, 17.5% in 2011, and by more
than 12.3% in 2012, largely on the strength of commodity exports to nearby
countries and high government spending domestically. Mongolia's economy,
however, faces near-term economic risks from the government's loose fiscal
policies, which are contributing to high inflation, and uncertainties in
foreign demand for Mongolian exports. Trade with China represents more than
half of Mongolia's total external trade - China receives more than 90% of
Mongolia's exports. Mongolia purchases 95% of its petroleum products and a
substantial amount of electric power from Russia, leaving it vulnerable to
price increases. Due to severe winter weather in 2009-10, Mongolia lost 22% of
its total livestock, and meat prices doubled. Inflation remained higher than
10% for much of 2010-12, due in part to higher food and fuel prices. The
economic slowdown in China during 2011-2012 resulted in fewer Mongolian
exports, a widened trade gap, and decreased government revenues, putting
pressure on Mongolian fiscal policy. Remittances from Mongolians working
abroad, particularly in South Korea, are significant.
|
Source : CIA |
Mongolrostsvetmet LLC
Street : Jukov Avenue, MRTSM Blgd
Area : Bayanzurkh District
Town : Ulaanbaatar 51
Country : Mongolia
Telephone : (976 11) 458
072 / 458 521 / 458 401 / 450 060 ext. 145 / Mobile (976 99) 117 403
(Bilguunbat
Byambajav)
Fax : (995 32) 458
380 / 458 401
E-Mail : mailbox@monros.mn / invest@magicnet.mn
Website : www.mongolros.mn
Also known as : Mongolrostsvetmet XXK / Mongolo-Rossiyskaya KOO
Mongolrostsvetmet / Mongolian-Russian
JV
Mongolrostsvetmet / KOO Mongolrostsvetmet
Formerly known as : Mongolsovtsvetmet
Name Position
1. Kh. Bolor-Erdene
General Director
2. Viktor Anatolievich Tyurin
First
Deputy General Director
3. Yevgeniy Vasilyevich Zemskiy
Deputy General Director
/ Production
4. P. Khangal
Head of Production
and
Development
Department
5. Ekaterina Vasilyevna Sainog
Chief Accountant
6. Bilguunbat Byambajav
Export Manager
Total Employees : 1,600
No complaints have been heard regarding payments from local suppliers or
banks.
Subject is a leading fluorspar and gold mining company in Mongolia.
We consider it is acceptable to deal with subject for LARGE amounts,
although it is normal accepted practice for international suppliers to deal on
secured terms with Mongolian importers.
Trade
risk assessment: Normal
NAME :
TRADE AND DEVELOPMENT BANK OF MONGOLIA
Branch : Juulnchny Gudamj 7
Town :
Ulaanbaatar 210646
Telephone : (976 11) 312 362 / 331 133
Fax :
(976 11) 325 449
The company also has an account with :
Golomt
Bank of Mongolia
Bodi
Tower, Sukhbaatar Square
Ulaanbaatar
Telephone:
(976 11) 311 530
Fax : (976 11) 312 307
SWIFT
Code : GLMTMNUB
Corr.
Bank : Sberbank, Irkutsk, Baikalsky Head Office, Russia
SWIFT
Code : SABRRU66
Corr.
Acc. : 30112840818000000003 USD
Private
companies in Mongolia are not required to publish or disclose balance sheets.
However, the subject interviewed offered the following information :
Sales
Turnover : TUGRIK 56,000,000,000 - 2010
- exact
: TUGRIK 60,000,000,000 - 2011 - exact
: TUGRIK 69,000,000,000 - 2012 - approx
Net
Profit : TUGRIK 800,000,000 - 2010 - exact
: TUGRIK 8,000,000,000 - 2011 – exact
Total
Assets : US DLRS 50,000,000
Financial
year ends 31 December.
Date Started : 24 February 1973
History : The subject company was established in Mongolia on 24 February
1973 as state owned company. In 1992 subject changed its name from
Mongolsovtsvetmet to Mongolrostsvetmet. On 25 April 2007 subject converted into
Limited Liability Company.
Tax No.: 2550466
Authorized Capital : TUGRIK 1,226,788,000
Paid-Up Capital : TUGRIK 1,226,788,000
Limited Liability
Company with the following shareholders :
Shareholders Percentage
1. State Property Committee of Mongolia (SPC) 51%
Government House IV
Chingeltei District
Ulaanbaatar
Telephone: (976 51) 263 538
Fax : (976 11) 312 798
Est.: 31 July 1996 (by decree
No.: 117)
(government agency responsible
for the administration of the
privatization process in
Mongolia and management of state-owned
properties and Public Private
Partnerships)
2. Russian Technologies State Corporation 49%
(Gosudarstvennaya Korporatsiya
Rostehnologii)
Gogolevsky Boulevard 21
Moscow 119991
Russia
Telephone: (7 495) 287 2500
Fax : (7 495) 695 4594
E-mail: media@rostechn.ru
Affiliated company
of the subject company :
Associate
1. Erdenet Mining Corporation LLC
Amariin Square 1,
Bayan-Undur Soum
Erdenet 213900
Orkhon Aimag
Telephone: (976 1352)
73793 / 71501 / 73589 / 73501 / 73790 / (976
99) 351 891 (Erdenebileg
Tsumyasukh) / (976 95) 342 866 / (976 99)
351 773 / (976 96) 009
287 / (976 96) 009 296
Fax : (976 1352) 73002 / 23002 / 73686
E-Mail : info@erdenetmc.mn / office@erdenetmc.mn /
bilegt@erdenetmc.mn
Website : www.erdenetmc.mn
Est.: 22 November 1973
C.R. No.: 9019008085
Tax No.: 2074192
Capital : TUGRIK 2,658,321,900
Shareholders :
- State Property
Committee of Mongolia (SPC) - 51%
- Russian
Technologies State Corporation - 49%
2. Shigir-Alt Co Ltd
Est.: 1994
Shareholders:
- Mongolrostsvetmet LLC
– 51%
- MIKO Holding Co Ltd - 25%
- Zarubejtsvetmet - 24%
(managing company for Zaamar Placer Gold Operation)
Subject’s formerly affiliated company :
Darkhan Metallurgical Plant JSC
Darkhan Soum
Darkhan-Uul Aimag
Darkhan –Uul
Telephone: (976 1372) 24203
Fax : (976 1372) 23946
Est.: 19 March 1990
Tax No.: 2051303
Capital : TUGRIK 40,910,000,000
The Company is
involved in the following activities :
Mining and processing of acid grade fluorspar, met grade fluorspar,
gold, coal, iron and silver.
Subject also provides exploration and geological survey works.
Subject operates
following plants :
- Bor-Undur Mine & Mineral Processing Plant
- Urgen-Mine
- Zaamar Placer Gold Operation
- Adag underground mine
- Zeregtsee placer Gold Operation
NACE Code : 0729 / 0899 / 0990
Imports from China, Russia and Germany.
Exports to Russia, Thailand, USA, Kyrgyzstan, Belarus and Ukraine.
The Company has
the following facilities :
Owned premises comprising administrative offices located at the heading
address as well as processing plants located in Khentii Aimag, Tov Aimag and
Dornogovi Aimag.
Subject also has 3 branch offices located in Moscow (Russia), Irkutsk
(Russia) and China.
Subject formerly had the following contact details:
Mobile: (976 99) 111 748 (Nominzul Dashzeveg) / (976 99) 295 993 (Ya.
Purvee)
E-mail: nominzul@monros.mn
Peace Avenue (Enkhtaivan Avenue) 98
22nd Khoroo
Bayanzurkh District
Ulaanbaatar
Moscow Office
Mikluko-Maklaya BLGD 34-62
Moscow 117279
Russia
Telephone: (7 499) 724 3728
Fax : (7 499) 724 3728
The address which you provided: Peace Avenue 98 Bayanzurkh District 22 applies
to subject's registered office address. Please note that subject's
administrative office address is as per heading.
Interviewed: Bilguunbat Byambajav (Export Manager).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.14 |
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UK Pound |
1 |
Rs.100.48 |
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Euro |
1 |
Rs.84.37 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.