MIRA INFORM REPORT

 

 

Report Date :

12.02.2014

 

IDENTIFICATION DETAILS

 

Name :

MONGOLYN ALT (MAK) CORPORATION LLC

 

 

Registered Office :

Khan-Uul District, 1st Khoroo, 19th Khoroolol Ulaanbaatar

 

 

Country :

Mongolia

 

 

Date of Incorporation :

December 1993

 

 

Com. Reg. No.:

9011071054

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·      Subject is engaged in agricultural activities

·      Subject also provides geology exploration services.

·      Supply of coal to Power Plant of Darkhan, Erdenet Ore Dressing

 

 

No. of Employees :

500

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

No complaints

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Mongolia

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 

 

 

 


MONGOLYN ALT (MAK) CORPORATION LLC (CORRECT)

MONGOLYN ALT MAK GROUP LLC (REQUESTED)

 

Company name and address

 

MONGOLYN ALT (MAK) CORPORATION LLC

 

 

ADDRESS

 

Area     : Khan-Uul District, 1st Khoroo, 19th Khoroolol

Town     : Ulaanbaatar

Country  : Mongolia

 

Telephone: (976 75) 759 700 / Mobile (976 99) 114 260 / (976 99) 631 277 / (976 99) 091 067 (Ayuna Nishtamdar) / (976 99) 091 139

Fax      : (976 70) 107 481

E-Mail   : ganbi@mak.mn / mak@mak.mn / gedavaa@mak.mn

 

Shortform Name : MAK Corp

 

Also Known As : Mongolyn Alt Mak LLC / Mongolyn Alt Mak XXK

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                     Position

 

1. Byambaa Nyamtaishir            President

 

2. D. Sodnom                             Advisor of the President

 

3. D. Dashzeveg                        Vice President / Technical Policy

 

4. Avirmed Ganbileg                    Vice President / Trade & International Cooperation

 

5. G. Davaatseren                      Vice President / R & D

 

6. D. Sainjargal                           Chief Accountant

 

7. Yur Aherlenbayar                   Manager

 

8. Ayuna Nishtamdar                  Procurement Manager

 

Total Employees : 500


PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

We consider it is acceptable to deal with subject for MEDIUM amounts,

although it is normal accepted practice for international suppliers

to deal on secured terms with Mongolian importers.

 

Opinion on maximum credit : TUGRIK 350,000,000

 

Trade risk assessment : Normal

 

 

PRINCIPAL BANKERS

 

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 the following banks :

 

1. Golomt Bank of Mongolia

   Sukhbaatar Square 3

   PO Box 11

   Ulaanbaatar 11

   Telephone: (976 11) 311 530 / 312 307 / 311 971

   Fax      : (976 11) 311 958

 

2. Khan Bank

   Seoul Street 25

   PO Box 44

   Ulaanbaatar

   Telephone: (976 11) 332 333 

   Fax      : (976 70) 117 023

 

 

FINANCIAL INFORMATION

 

Private companies in Mongolia are not required to publish or

disclose balance sheets. However, the subject interviewed offered

the following information (latest available):

 

Sales Turnover      : US DLRS  7,000,000 - 2002 - exact

                    : US DLRS  6,000,000 - 2003 - exact

                    : US DLRS  6,000,000 - 2004 - exact

                    : US DLRS 10,000,000 - 2005 - exact

                    : US DLRS 15,000,000 - 2006 - exact

                    : US DLRS 20,000,000 - 2007 - exact

                    : US DLRS 23,000,000 - 2008 - exact

                    : US DLRS 20,000,000 - 2009 - projected

 

Net Profit          : not given but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :    December 1993

 

C.R. No. :          9011071054

Tax No.:            2095025

 

Capital : not given

 

Limited Liability Company with the following sole shareholder :

 

Byambaa Nyamtaishir                       100%

 

Affiliated companies of Mongolyn Alt (MAK) Corporation LLC :

 

Associates

 

Bumbat Co Ltd

(joint venture between Mongolyn Alt (MAK) Corporation LLC (49%) and

Mongolia Gold Resources Ltd (51%)

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Subject carries out coal mining in Alagtogoo's high calorie stone

deposit in Dalanjargalan soum of Dornogobi aimag.

 

Supply of coal to Power Plat of Darkhan, Erdenet Ore Dressing

Plant and Khutul Cement and Lime Factory.

 

Bituminous Coal production capacity : 5 thousand tonnes - 2007

 

Subject also provides geology exploration services.

 

The Company also engages in agricultural activities. It has 3,000

hectares of crop field (wheat) and 40 hectare fruitberry garden in

Mongolia.

 

NACE Code : 0510

 

Imports equipment from Europe.

 

Until 2007 subject was engaged in gold mining. Subject completed

exploration of the deposits in Zaamar soum of Central aimag, Ikh

Galt, Ikh alt, Khailaast, Baruun Shand.

 

Naryn Sukhait is reported to hold about 380 million mt of resources

of high-rank, low-ash, low-sulphur metallurgical and steam coal, of

which 220 million mt of resources belong to the licenses of Mongolyn

Alt Corporation LLC.

In accordance with the Special Permit for the construction of railway

from the Naryn Sukhait mine to the Mongolian-Chinese border granted

to Mongolyn Alt Corporation LLC, 47.8-km railway construction is

scheduled to start up in early 2010.

 

 

FACILITIES

 

The Company has the following facilities :

 

Office premises located at the heading address.

 

Subject's mining equipment fleet consists of 26 units including

Caterpillar's D8N, D8R, D9R bulldozers, 320, 322, 350L excavators,

627F scrapers, 988F, IT-28 loaders, 769C trucks and Chinese-Czech

made "Tatra" trucks, Russian made DET-250 as well as other small,

medium capacity machines and equipment.

 

Subject also has a representative office in China.

 

Subject has 3,000 hectare crop field and 40 hectare fruitberry garden

in Khalkh Gol soum of Eastern aimag.

 

Until 2012 subject was located at :

 

Building 14

13th Micro-district, Bayanzurkh District

P.O. Box : 237

Ulaanbaatar 210349

Telephone: (976 11) 455 882 / 455 338 / 450 199 / 455 785

Fax      : (976 11) 458 075

 

BRANCH OFFICES

 

Building 14

13th Micro-district, Bayanzurkh District

P.O. Box : 237

Ulaanbaatar 210349

Telephone: (976 11) 455 882 / 455 338 / 450 199 / 455 785

Fax      : (976 11) 458 075

 

 

SPECIAL NOTE

 

You enquired on: MONGOLYN ALT MAK GROUP LLC. Please note that the subject’s correct registered name is as per heading.  

 

The address which you provided: Building 14, Microdistrict 13, Bayanzurkh district 18, PO Box 237, Ulaanbaatar 210349 applies to subject's former and branch addresses. Please note that subject's current administrative office address is as per heading.

 

Interviewed: Ayuna Nishtamdar (Procurement Manager).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.44

UK Pound

1

Rs.102.48

Euro

1

Rs.84.28

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.