The Asia Miner

SEP-OCT 2014

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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September/October 2014 | ASIA Miner | 13 MONGOLIA-focused resources company, Tian Poh Resources Ltd has lodged a prospectus with the Australian Securities & Investment Com- mission (ASIC) for the initial public offering (IPO) of its shares, ahead of a planned listing on the Australian Securities Exchange (ASX). A success- ful IPO will enable the company to fast-track development of the Huabei Kuangye Coal Project in southern Mongolia. The prospectus was lodged on August 12, the offer was due to open on August 20 and the closing date of the offer is scheduled for September 15. Tian Poh expects the shares to be allotted on September 17 and the opening listing date to be September 24. Tian Poh has an enviable land position with 10 projects spanning 125,000 hectares located in the same world-class minerals province that hosts two of the world's top 10 largest mineral deposits, Oyu Tolgoi and Tavan Tolgoi. The company's most advanced asset is the Huabei Kuangye coal de- posit, which already has a 30-year mining licence and is adjacent to the Shinejinst coking coal mine, which has 95 million tonnes in reserves out of a 229 million tonne resource. It is ideally located less than 300km to the Chinese border and along the government-planned rail line. Tian Poh's CEO Poh Kay Ping says the company is well positioned to beneft from the Mongolian Government's recent pro-mining and devel- opment policies. "Tian Poh has a high quality portfolio of mineral assets, located on the doorstep of the world's biggest consumer in China, and near to planned or existing infrastructure. "Our strategy is to generate early cashfow through bringing Huabei Kuangye to production, so as to fund advancement of our other coal, gold and copper assets. "We believe the timing for new shareholders is favourable given Mon- golia's shift towards attracting and maintaining foreign investment and its pro-mining initiatives. "We are focused on building the next diversifed resources company in Mongolia and believe that our clear pathway to early production, in-country management team, and pipeline of exciting and highly prospective assets will set the company up for prolonged growth going forward." Poh Kay Ping is the entrepreneur behind diversifed Singapore private investment company, POH Group, which has a track record of suc- cessfully completing a US$430 million phosphate benefciation plant EPC project in Saudi Arabia through its joint venture with a Chinese state-owned enterprise. He is also a non-executive director of Sin- gapore Stock Exchange mainboard listed Poh Tiong Choon Logis- tics, one of the oldest logistics companies in Singapore having been established in 1950. He has twice been awarded commendations by the President of the Republic of Singapore and carries the titles PBM and BBM. THE wholly-owned subsidiary of Mongolian Mining Corporation (MMC), Mongolian Coal Corporation Limited (MCCL), has entered into a joint venture agreement with Risun Mining Co, a subsidiary company of the Risun Group. MCCL and Risun will establish a joint venture company named Tianjin Zhengcheng Import and Export Trade Co in the Tianjin Airport Economic Zone in China for the joint transportation, sale and distri- bution of coal products produced by MMC. MCCL and Risun will respectively hold 51% and 49% of the total equity interest and contribute corresponding equity stakes in the JV within two years of its establishment. The primary business objective of the JV is to develop MMC's coal sales in the Chinese market, including the marketing and sale of hard coking coal to customers in the Tangshan, Baoding, Xing- tai and Shijiazhuang area of Hebei province and northern Shandong province in China, as well as Risun Group's coke-chemical plants. MMC's CEO Dr Battsengel Gotov says, "We are delighted to work with Risun Group, the largest independent coke and coal-derived chemicals producer and supplier in China. We believe our partnership will expand geographical penetration of our products to China's ma- jor coke and steel producing areas, by leveraging Risun's extensive marketing network and channels. The collaboration is also expected to strengthen our long-term relations with end-user customers by supply- ing our washed hard coking coal products and give us the opportunity to further expand and diversify our revenue sources." MMC is the largest producer and exporter of high-quality hard coking coal in Mongolia. It owns and operates an open-pit coking coal mine at the Ukhaa Khudag (UHG) deposit within the Tavan Tolgoi (TT) coal formation, as well as the Baruun Naran (BN) coking coal deposit, both in the South Gobi region. Earlier this year MMC, through its indirect subsidiary Energy Resourc- es LLC, signed a shareholders agreement with China Shenhua Over- seas Development and Investment subsidiary Lodestar Investment, Mongolian state-owned joint stock company Erdenes Tavan Tolgoi and Mongolian joint stock company Tavan Tolgoi JSC. The agreement entails that the parties establish a joint venture to be named Gashuunsukhait Railway, to jointly develop a cross-border freight railway connecting the Gashuunsukhait port station of Mongolia and the Ganqimaodu port station of China. Development of the cross border railway project is a component of the coal export support measures announced by the Government of Mongolia on August 16, 2013. These measures outline the importance of the immediate improvement of cross border transportation and logis- tics operations for coal exports from Mongolia to China. MMC enters coal trading joint venture Tian Poh Resources coal, gold and copper prospects are all in southern Mon- golia, not far from the border with China. Tian Poh lodges IPO prospectus

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