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Report Date : |
21.02.2014 |
IDENTIFICATION DETAILS
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Name : |
MINING NATIONAL OPERATOR LLC |
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Registered Office : |
Sky Plaza Business Center (frmly Tenggeriin Tsag Center) 4th, 5th and 6th Floors, Olympic Street 12, Sukhbaatar District, 1 Khoroo, Ulaanbaatar |
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Country : |
Mongolia |
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Year of Establishments: |
2010 |
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Legal Form : |
Limited
Liability Company |
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Line of Business : |
Subject is engages in gold mining |
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No. of Employees : |
420 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – december 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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 |
Mining National Operator LLC (Correct)
Mining National Operator Ltd (Requested)
Building : Sky Plaza
Business Center (frmly Tenggeriin Tsag Center)
4th, 5th and 6th
Floors
Street : Olympic
Street 12
Area : Sukhbaatar
District, 1 Khoroo
Town : Ulaanbaatar
Country : Mongolia
Telephone:
(976 75) 754 040 / Mobile (976 99)
101 650 (Erdenebaatar Sukhbaatar)
Fax : (976
70) 104 020
E-Mail : erdenebaatar_s@mno.mn / erdenebolor2002@yahoo.com
Website : www.mno.mn
Also
known as : Uul Uurhayn Undesniy Olborlogch XXK
Name Position
Board
of Directors
1.
Sh Lkhamsuren Chairman
2.
G. Nyamdorj Member of the
Board
3.
Ch. Purevjargal Member of the
Board
4.
D. Bartanbaatar Member of the
Board
5.
S. Tumurbaatar Member of the
Board
6.
G. Tegshjargal Board
Secretary
Management
1. E. Enkhbold Chief Executive Officer
2. Erdenebaatar
Sukhbaatar Business Development Manager
Total
Employees : 420
No
complaints have been heard regarding payments from local suppliers or banks.
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 : KHAN
BANK OF MONGOLIA
Branch : Peace
Avenue
P.O. Box : 185
Town : Ulaanbaatar
Telephone:
(976 11) 457 880
Fax : (976
11) 457 880
The company also has an
account with the following banks:
1. Golomt Bank of Mongolia
Bodi Tower,
Sukhbaatar Square
Ulaanbaatar
Telephone:
(976 11) 311 530
Fax : (976 11) 312 307
2.
Trade and Development Bank of Mongolia
Juulnchny Gudamj 7
Ulaanbaatar 210646
Telephone: (976 11) 312 362 / 331 133
Fax
: (976 11) 325 449
Private
companies in Mongolia are not required to publish or disclose balance sheets.
However, the subject interviewed offered the following information :
Sales
Turnover : TUGRIK 84,000,000,000
- 2013 - approx
Net
Profit : not given
Financial
year ends 31 December.
Date
Started : 2010
History
: The subject company was established in Mongolia in 2010 and commenced
operations in January 2012.
Capital
: not given
Limited
Liability Company with the following shareholders:
Shareholders
1.
Mondulaan Trade LLC (majority)
Est.: 1998
2.
Sh Lkhamsuren
3.
Other undisclosed 7 physical individuals
The exact shareholding percentage was not disclosed.
Affiliated companies of the subject
company :
Associates
1.
Nuudelchin Group LLC
Rokmon Building, Office 902
Undsen Khuuli Street 24
Bayangol District, 2nd Khoroo
Ulaanbaatar
Telephone: (976 11) 310 089 / (976 99) 111
944 / (976 99) 112 963
/ (976 88) 051 021
Fax
: (976 11) 310 089
E-Mail
: narangerel@nuudelchin.mn / nyamdorj@nuudelchin.mn
Website
: www.nuudelchin.mn
Chairman: Sh. Lkhamsuren
Employees : 350 (including 20 administrative
staff)
Est.: 22 July 1998
Tax No.: 5371244
Shareholders:
- Undisclosed 5 equally shared
private individuals - 75%
- Sh. Lkhamsuren - 25%
2.
Khishigten Nuudelchin LLC
Est.: 2009
3.
Arga Baril LLC
Est.: 2006
4.
Mining National Operator LLC
5.
Ekho Khangal LLC
The Company is involved in the
following activities :
Subject is engages in gold mining.
NACE Code : 0729
Subject
neither imports nor exports any products (requirements) at present time.
The
Company has the following facilities :
Administrative
offices located at the heading address.
You
enquired on: Mining National Operator Ltd. Please note that the correct name is
as per heading.
Interviewed:
Erdenebaatar Sukhbaatar (Business Development Manager).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.28 |
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UK Pound |
1 |
Rs.103.84 |
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Euro |
1 |
Rs.85.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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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.