Shares were down 11% Thursday at 11.05 pence each.

Petro Matad has been interpreting 3D seismic volumes from Tugrug through March and April, with the frequency content of the data "excellent", and it said the fault plane reflections are "remarkably" well-defined which is significantly helping mapping the complex Falcon prospect.

The company said based on these results the fault block originally targeted for drilling in the centre of Falcon is smaller than thought. However, the data does confirm a large and well-defined fault to the east which Petro Matad said is much larger than in original mapping.

More detailed work is needed, it said, to progress these prospects to drillable status.

Petro Matad also said Thursday it is to focus drilling on the Snow Leopard prospect in to the second quarter, deferring drilling on block V. Snow Leopard is less complex, it said, and it is part of a confirmed source and reservoir outcrop.

Snow Leopard has all permits required save for a land use permits which is now being renewed, which it said is "a routine matter". Plans are on track for site construction to start in May, with drilling to cost around USD7.0 million lasting around 70 days.

Following this Petro Matad will drill the Wild Horse prospect in block IV, with permitting going well, it said. The most time consuming part, the detailed environmental impact assessment, has been submitted, and approval is expected imminently.

The tender for a drilling rig on block XX is nearly finished, and it expects to secure "a good quality contractor" for drilling as early as the second half of 2018, if possible.

Chief Executive Mike Buck said: "The company's decision to shoot 3D seismic over the structurally complex Tugrug Basin was a good one. The new mapping on the 3D indicates that we have some excellent targets but we do not wish to delay our exploration efforts in 2018 whilst they are matured to drillable status.

"Snow Leopard and Wild Horse are two large, well defined and exciting prospects with huge follow up potential. As the firm two well programme for blocks IV and V in 2018, they will tell us a lot more about the potential of the area and we are moving ahead rapidly with preparations to start drilling during this quarter. Planning, procurement, and permitting for drilling in block XX are also advancing well."

By George Collard; georgecollard@alliancenews.com

The "Transit Mongolia-2018" forum, co-organized by Mongolia's Ministry of Road and Transport Development and Ulan Bator Railway Association, will be part of the 23rd exhibition of Trans-Russia/Trans-Logistica.

Major Eurasian freight transportation companies will take part in the expo to discuss regional transport sales, cooperation, as well as railway investment and cooperation, Mongolian News Agency reported Thursday.

This is the first time that Mongolia will participate in the expo, which will be held from April 17 to 19.

Ongoing test work shows that gold should report to a copper concentrate as free gold inclusion.

The new results build on Xanadu’s previous metallurgical studies which showed very high gold recovery to the rougher concentrate.

Xanadu’s chief executive officer Dr Andrew Stewart said: “These above average results, as expected, show that gold occurs as coarse grains in association with principle copper sulphides.

“While further testing is required as the project advances, we see no significant hurdles to producing a high-quality concentrate via standard processing pathways from the Kharmagtai project.”

The objective was to determine the location of gold across all three zones of the Kharmagtai deposit - Copper Hill, White Hill and Stockwork Hill.

Petrological and scanning electron microprobe work showed most gold as separate grains within the copper-bearing sulphides and pyrite rather than as a solid solution.

The grains range up to 100 microns in size and include native gold and with silver as electrum.

Some minor grains also occur in silicate minerals and magnetite.

The copper sulphides analysed showed no trace metal within them as solid solution, indicating sulphides from the samples should produce concentrates free of significant deleterious elements.

“The test results allow us to focus on the drilling underway,” Stewart said.

“This is expanding the resource and targeting near-surface porphyry copper-gold deposits within this largely under-explored porphyry copper-gold district.”

“The Russian agribusiness sector is our pride. In 2017, agricultural production increased more than 20 percent for all types of farms when compared to 2012,” Medvedev told the State Duma on Wednesday.

Medvedev explained that “such rapid growth is the result of an unprecedented state support for the agro-industrial complex,” because “over six years, more than 1.2 trillion rubles ($18.62 billion) has been allocated from the federal budget.”

The prime minister noted the flexible tariff policy, another measure of state support.

“We harvested a significant grain crop, which was difficult to transport by railroad, so we’ve introduced a preferential tariff for that. We are also building new terminals in ports, creating a network of wholesale distribution centers,” said Medvedev.

Last month, President Vladimir Putin said Russian exports of agricultural products and foodstuffs had grown 16-fold since 2000. Two years ago, Russia became the world leader in wheat exports.

Since the early 2000s, the country’s share of the world wheat market has quadrupled, from four to 16 percent.

The president said Russia will soon sell more produce abroad than it imports. To achieve the goal, authorities plan to develop infrastructure, broaden the railway network, and increase the capacity of seaports, elevators, and storage terminals.

Putin said that Russia should be aiming at exports of environmentally friendly and quality products. GMO has been banned in Russia since 2016. The Russian leader previously said he wants to make the country the world’s largest seller of GMO-free food.

There are currently 2 main statuses for non-Japanese workers. One is for people employed in 18 professional categories, including professors, doctors and lawyers.

The other is for people who take part in a technical intern program.

The newly proposed status would allow foreigners with certain skills to work in the country for up to 5 years. Those who have completed internships would be eligible on the condition they do not bring their families to Japan.

The government would require companies employing these workers to draw up support plans that help them settle in and arrange accommodation. Businesses would be asked to submit reports to the Justice Ministry.

The government adds it is also considering allowing those status-holders to stay in the country indefinitely if they pass stipulated exams during their 5-year stay.

The government plans to include the proposal in this year's basic policy in economic and fiscal management and reform.

The Prime Minister congratulated the Chinese President on his re-election and conveyed President Kh.Battulga’s greetings.

The sides expressed mutual commitment to reinforce political trust based on respect of each other’s core interests and to maintain the frequency of high-level visits. The sides agreed to mark the 70th anniversary of establishment of diplomatic relations with a grand celebration next year.

While acknowledging wide opportunities to boost bilateral trade and economic cooperation, the sides agreed on several actions to be taken to reach the goal to increase bilateral trade turnover to USD 10 billion by 2020 – intensify cooperation mechanisms, effectively utilize the channel of exchange through the Mongolia-China Expo, reduce non-tariff barriers in trade and accelerate the progress of China-funded projects.

The sides exchanged views on other matters such as regional and trilateral cooperation with Russia. They appreciated positive outlook of the Korean Peninsula and the activation of high-level dialogue between nations in the region, expressing willingness to put efforts into the denuclearization of the Korean Peninsula.

According to the company’s managers, the 55 Mwh wind park will provide electricity for 100,000 households and offset carbon dioxide emissions for 200,000 tons of coal.

Officials from the Ministry of Energy visited the wind park and concluded that construction is being carried out as planned, without any delays.

Mongolia's renewable energy capacity is expected to be increased by 95 Mwh in 2018

Sanjaagiin Bayar, prime minister between 2007 and 2009, negotiated Rio Tinto's initial investment after it took over the mine from Canadian-listed developer Ivanhoe Mines. Saikhanbileg Chimed, who held office between 2014 and 2016, oversaw negotiations for the second, and more expensive, underground stage.

Both are now in custody, according to a statement on Wednesday from Mongolia’s anti-corruption authority, which last week requested that Mr Saikhanbileg return from the US to respond to questions.

Neither man could be immediately reached for comment.

The development of the enormous mine has been accompanied by years of fraught negotiations between Mongolia and Rio, including Ulan Bator's rapidly changing policies on foreign mining investment and allegations of cost overruns against the global miner.

Mongolia needs the proceeds from the mine to meet its national budget, but won't see the bulk of the revenue flow until Rio is compensated for its expenses and financing costs. Rio is financing the Mongolian state’s share of the investment in the mine at commercial rates, adding to the tension.

The mine has also exposed divisions within Mongolia between those who wanted the state to take a direct share and those who argued that the state should limit itself to collecting taxes. The promise of windfall proceeds inspired political parties to make rash spending commitments, adding to Mongolia's fiscal woes during a prolonged commodities downturn.

The arrests in Mongolia come as Rio Tinto faces investigations into payments made to a French consultant to secure a large iron ore mine in Guinea.

The Senior Country Economist of ADB Declan Magee said “We are optimistic about Mongolia’s economic growth in 2018. In 2018, the economic growth will slightly slow down compared to 3.8 percent growth in 2017, which is a good indicator. The mining investments are the main factor of the growth. However, the risk factor for the growth is coal export, especially the transportation problems. The economic growth is expected to be intensified, going up to 4.3 percent in 2019.”

Inflation rate in Mongolia is forecast to be 8 percent in 2018 and 7 percent in 2019. The budget deficit is expected to reach 6.4 percent of GDP in 2018 and 5.1 percent in 2019. The main reason for this would be increase in expenditures and predicted decrease in revenue due to tax reforms.

Country Director of the ADB for Mongolia Yolanda Fernandez Lommen introduced the Outlook on the economy of Asian countries. She noted the opportunities to expand economic growth in the Asia-Pacific region. The regional economic growth was 6.1 percent in 2017 and is expected to be 6 percent in 2018 and 5.9 in 2019.

Moreover, she emphasized that the regional inflation rate is expected to be 2.9 in 2018, reason for which is the commodity price rises and consumer demand on the international markets.

B.Misheel

Mongolian and Chinese companies will be doing business in environment, mining, water supply, ger area re-planning, commerce, hotel, construction, meat and meat processing plant, railway, energy, banking and finance and tourism industries. For instance, Bodi International LLC signed a USD 450 million agreement on the Buuruljuut Thermal Power Plant project with the China State Construction Engineering company.

Mongolia-China trade volume reached USD 6.7 billion in 2017, which is 36 percent higher than that of 2016 and constitutes 63 percent of Mongolia’s foreign trade. Mongolia and China aim to see USD 10 billion trade turnover by 2020.
Kh.Aminaa