Talon Energy (ASX:TPD) through its Perth Basin partnership with Strike Energy (ASX:STX) has drilled a new well in the Perth Basin Cattamarra Coal Measures, Walyering-6, revealing a new gas discovery in the Cadda Formation with 4m of net pay at 2,683m depth.

On top of the new Cadda gas discovery, the partnership has also struck a 21m thick payload in the Cattamarra Sandstones.

Meanwhile, new production test results for Walyering-5 provide evidence suggesting a large connected gas field underneath the ground, a promising indication for the forward development of the Walyering gas field.

Strike Energy Limited holds 55% of the JV, and Talon Energy retains 45%; the project is in the boundaries of WA permit EP447.

Gas bearing geology detected in the Cattamarra Sandstones are located mostly across the B & C Sands, with the A Sand returning low gas saturation (blamed on a breached seal,) and, the D Sand containing "immaterial" streaks of net gas pay.

Based on this, Walyering-6 will target the B & C Sands for future production testing of Walyering-6. Samples of gas from the newly identified Cadda Formation well will be sent to a laboratory for compositional analysis; the Cadda target will be included in the Walyering-6 flow test.

Across to Mongolia…

Investors will also be interested in looking across to Mongolia, where Talon Energy has commenced drilling its Snow-Leopard 2 well onsite the Gurvantes XXXV CSG project in the Southern Gobi.

That well is being spud alongside project partner TMK Energy (ASX:TMK). TMK Energy's share price is up 10% in post-lunch trades. The two Australian companies are two of a small handful of players active in the Mongolia region, both companies report a good standing with government resources officials.

SL-2 is underway as the results from SL-1 remain pending with the company confident gas contents will reflect the upper end of estimates attached to initial data.

Snow Leopard-2 is located some 5km to the east of SL-1. Talon Energy notes upon the completion of SL-2, a further two drill holes will be launched on-site "over the next 2-3 months."

After all four wells are drilled, data from the quad will be used to inform the design of a pilot well program intended to de-risk the asset and demonstrate the commercial potential of the development of gas resources on-site the company's mammoth Mongolian acreage.

Talon expects the pilot well program to launch in the second half of 2022.

Mongolia reported 29 new COVID-19 infections, according to the country's health statistics database as of May 16.

21 of them were found in Ulaanbaatar, and 8 cases were detected in regions of the country.

No new linked death were reported the past day, the death toll makes 2,113.

The Cabinet made the decision to have a 226-km railroad be constructed en route Zuunbayan-Khangi through a concession agreement on February 23 this year. Prime Minister L.Oyun-Erdene highlighted that the project is being implemented in the framework of the government’s ‘New Revival Policy’ due to how there has come to be disruptions in the “blood flow” of the country’s economy.

“Without resolving the pressing issue being faced at border checkpoints, one cannot imagine the country’s development to “crawl”, let alone jump. Thus, works are being carried out to transform the Khangi border checkpoint, one of Mongolia’s checkpoints on the southern border, into a second Zamiin-Uud checkpoint by making it possible to have about 50 percent of freight pass through the checkpoint.

With the new railroad, the distance to the border checkpoint will decrease by 318 km, cutting transportation costs by USD 8.

Aside from the transport of products being exported and imported into the country, this also creates the opportunity to increase the annual capacity for transporting freight between Europe and Asia to 20 million tons. Furthermore, investments made in railroad construction projects are often considered as a “multiplier” for the economy. Similarly, the investment made in the Zuunbayan-Khangi railroad is estimated to serve as a x1.5 multiplier for Mongolia’s economy.”

How profitable will the new railroad be?

With residential areas along the railroad, 1,485 new job opportunities are expected to be created. On top of this, according to the feasibility study, it is possible to export 15.6 million tons of freight from the Sainshand route, and 6 million tons of coking coal from the Tavantolgoi route, bringing total capacity to 21.6 million tons.

The construction of the 226 km railroad officially started on March 12. By putting the Zuunbayan-Khangi railroad and the Khangi railroad border checkpoint into operation, transportation costs for exporting coal, iron ore, and copper concentrate will reduce and competitiveness will increase. As the location of Khangi border checkpoint is close to the plants and factories near Bugat and Ordos, it also creates favorable conditions for competition through more opportunities to export mining products.

The project for the construction of the 226 km railroad en route Zuunbayan-Khangi, which is being carried out in the framework of the ‘New Revival Policy’ of the Government of Mongolia, is deemed to be of high significance due to how Khangi border checkpoint is located between the border checkpoints of Gashuunsukhait and Zamiin-Uud.

The railroad will be put into operation in November 2022.

Aside from handling 50 percent of the current load and reducing transportation costs by USD 8 per ton, the new route’s connection to the Khangi border checkpoint will open a new pathway for export.

Zuunbayan-Khangi railroad to be built through a concession agreement

The Government made the decision to establish a concession agreement for the Zuunbayan-Khangi railroad construction project through its Resolution No.28 dated January 12, 2022. In its framework, the State Procurement Agency was given the rights to establish the agreement with ‘Mongolian Trans Line’ LLC and ‘Mongolian Trans Logistics’ LLC based on the conditions of developing blueprints for the project, carrying out construction, using the railway, and transferring it.

With the new railroad, the 1,722 km distance between Yuruu station and China’s Bugat station (Zamiin-Uud-Erlian) will be reduced by 306 km to 1,404 km (Khangi-Mandal), which is estimated to bring down transportation costs for iron ore by USD 4-8.

The project will not only bring the competitiveness of Mongolian iron ore closer to those of China and Australia, but also increase the capacity of the total amount of freight being transported in the country and create some 1,600 job opportunities. Through the project’s implementation, Mongolia’s railroad transportation capacity will increase by a historical amount. It should also be noted how such a big objective is planned to be reached in just half a year.

Out of the 42 border checkpoints on land, there are currently only three border checkpoints connected to rail: Sukhbaatar, Ereentsav, and Zamiin-Uud. While about 50 percent of Mongolia’s main export products such as copper and coking coal pass through the checkpoint at Gashuunsukhait, over 70 percent of imported goods and products pass through Zamiin-Uud border checkpoint.

180 entities and some 3,500 construction workers will be involved in the Zuunbayan-Khangi railroad project, with around 1,300 permanent job opportunities created as a result.

By N.Saranchimeg

The article was published in the Mongol Messenger weekly newspaper on May 13.

The price of wheat has jumped on international markets after India banned the export of the staple cereal.

The benchmark wheat index rose as much as 5.9% in Chicago, the highest it has been in two months.

The export ban comes after a heatwave hit India's wheat crops, taking domestic prices to a record high.

Wheat prices have soared by around 60% on world markets this year, pushing up the cost of everything from bread to noodles.

India's government said it would still allow exports backed by letters of credit that have already been issued, and to countries that request supplies "to meet their food security needs".

Government officials also said the ban was not permanent and could be revised.

However, the decision has been criticised by agriculture ministers from the Group of Seven (G7) nations meeting in Germany.

"If everyone starts to impose export restrictions or to close markets, that would worsen the crisis," German food and agriculture minister Cem Ozdemir said.

The G7 is an organisation of the world's seven largest so-called "advanced" economies, which dominate global trade and the international financial system. They are Canada, France, Germany, Italy, Japan, the UK and the United States.

Although India is the world's second-biggest wheat producer, it has not previously been a major exporter as most of its crop is sold on domestic markets.

But Ukraine's wheat exports plunged after the Russian invasion. And with droughts and floods threatening crops in other major producers, commodity traders were expecting supplies from India to make up for part of the shortfall.

Before the ban, India had aimed to ship a record 10 million tonnes of wheat this year.

Just a week ago, senior officials from India's commerce ministry told me that they were bullish about increasing the country's wheat exports to meet the surge in global demand. They echoed Prime Minister Narendra Modi's statement that "India was ready to feed the world".

So, the ban does seem like a major policy U-turn. It also hints at the government's concerns over rising prices at home. But the decision could cause what one expert described as a foreign policy challenge for India.

Delhi had been making noises to get a waiver from a World Trade Organization rule that makes it difficult for countries to export grains that - as the Indian government routinely does - are bought at a fixed price from farmers for official reserves. And some countries seemed willing to help India find a way to export wheat to the world.

The same countries are now likely to be upset.

Global food prices hit a fresh record high in March after the Ukraine war caused a "giant leap", according to the United Nations (UN).

That came as the conflict cut off supplies from the world's biggest exporter of sunflower oil - Ukraine - which means the costs of alternatives also climbed. The country is also a major producer of cereals such as maize and wheat, which have risen sharply in price too.

The UN said that global food prices eased slightly in April but remain almost 30% higher than the same time last year.

Rising food prices, along with a jump in the cost of energy, have been pushing up inflation around that world.

That has forced major central banks, including the US Federal Reserve and the Bank of England, to raise interest rates in an attempt to rein in rising prices.

That, in turn, has triggered concerns that the higher cost of borrowing could hit global economic growth, with some high-profile commentators warning of a recession.

On Sunday, Lloyd Blankfein, the senior chairman of Wall Street investment banking giant Goldman Sachs, said there is a "very, very high risk" of recession in the US, the world's biggest economy.

Mr Blankfein's comments on CBS's Face the Nation came on the same day as Goldman Sachs economists cut their US economic growth forecasts for this year and next.

UK-Hungary-Mongolia co-production 1242 Gateway to the West, starring Kevin Spacey, Eric Roberts and Terence Stamp, is set to shoot in Hungary and Mongolia from October.

The two-time Oscar winner will direct this historical drama in an international co-production with capital from the United Kingdom, Hungary and Mongolia. Veteran Hungarian director Peter Soos will helm the film, which is scripted by Aron Horvath and Joan Lane and produced by Bill Chamberlain and Kornel Sipos. The Mongolian co-producers are Bayar Banzragch and Battushig Batbold.

The film tells the story of Genghis Khan’s grandson Batu Khan, who was elected commander in chief of the western part of the Mongol empire. A skilled military commander, he won battles from China to Persia and was given responsibility for the invasion of Europe but in 1242 Khan is confronted by a deeply spiritual man and a castle in Hungary that halts his invasion of Europe and ultimately causes his downfall.

Mongolia has officially launched a national program to promote the development of football under the auspices of President Ukhnaa Khurelsukh, the presidential press office said on Saturday.

The national program is being implemented across the country, within the framework of developing public sports reflected in the president's policy and the government's "Healthy Mongolians" program, according to the press office.

"We hope that the national program will help increase the number of children and youth involved in football, create professional high-ranking footballers and pave the way to promote the country's name internationally through the sport," Khurelsukh said at the program's launch ceremony on Saturday.

"I also hope that under this program, the number of professional teachers and sponsors will significantly increase," he added.

According to the program, Mongolia will organize an annual football competition called "Dream Goal" for students of all ages, build standard football fields in all 21 provinces, and implement the "Cooperation and Partnership" program to promote domestic products and services around the world through football.

On April 21, the High-level consultation meeting "Challenges and solutions for water sector of Mongolia" was held under the auspice of the President of Mongolia at the Government House in Ulaanbaatar.

The meeting was organized by the Country Water Partnership of Mongolia and the Water Agency of Mongolia. This meeting was attended by the high-level persons from the Government of Mongolia, Parliament, ministries, as well as representatives of water sector, academicians, NGOs, scientists, researchers and various experts.

They all gathered to discuss current water problems of Mongolia and exchange views and propose its solutions. The President of Mongolia U. Khurelsukh, in his speech at the meeting, said: "I am glad to meet with you today to discuss water policy in Mongolia. An essential part of Mongolia's policy is the environment and water. Scientists and researchers know that 76% of the territory of our country is decertified, degraded, and rivers have dried up, and natural and ecological difficulties have arisen. Therefore, I am glad that the "Billion Tree" national campaign initiated by the President of Mongolia has been supported and is becoming a nationwide movement. From the United Nations platform, Mongolia has announced that it will plant billions of trees by 2030. I am glad that citizens, businesses, and organizations supported this campaign and started organizing and working with the initiators to plant and protect trees in our country. Hundreds of years of scientific research have shown that "forests are the most reliable protectors and natural water reservoirs." Hence, water supply needs to be addressed first to grow forests. Our water sector was established in 1938 and is now on its 84th anniversary. In 2020, the Law on Water was amended, and the Water Authority was reorganized. Today, it operates under the Ministry of Nature, Environment, and Tourism. According to the 2021 water assessment, 6767 rivers, 4057 lakes and ponds, 13222 springs, and 635 mineral springs were counted in our country. In the last three years, 1586 rivers and streams have been restored, and 2452 rivers, streams, and springs have dried up. It shows the current natural condition of Mongolia and climate change impact on our environment.”

During the meeting, the Country Water Partnership of Mongolia's Chairman Prof. Basandorj Davaa presented a letter of appreciation to the President of MongoliaFrom left to right: Minister of Environment and Tourism, CWP-Mongolia Chairman and the President of Mongolia with the Letter of Appreciation Ukhnaagiin Khurelsukh. He said: "I appreciate your authentic leadership in Mongolia's water sector. I am pleased to give you a letter of appreciation on behalf of the Country Water Partnership. We want to emphasize your contribution to Mongolia's water security, which is adaptable to climate change and has a sustainable future. Accept this letter of appreciation from the Country Water Partnership, as our wish to continue our long-term cooperation with you.”

The meeting presentations covered the following topics: - Prospects for water demand in Mongolia and solutions to meet growing water needs; - Transboundary accumulation and use of surface water (foreign experience); - Approaches to strengthening water governance.

Participants came to conclusions followed presentations:

The best solution to meet most of the growth in water demand is from available resources in the Arctic Ocean basin and the Selenga River catchment area.

Implementing the Orkhon-Gobi and Orkhon-Ongi surface water reuse projects will address the short-term low water demand. However, obstacles to these activities include transboundary water issues and environmental and social impact assessments.

The fact that many ministries are responsible for water issues is a severe obstacle to a unified approach to the further development and policy of water sector and finding appropriate solutions to current and future situations.

Water resources and river basins, protection, rational use, rehabilitation, construction of water facilities, and ownership, use, and services should be considered comprehensively and based on water governance and management.

The working group involving NGOs on water problems in Mongolia has to be established.

The IWRM approach and establishing river basin councils are coming a target for water sector of Mongolia.

The Updated Draft Water law of Mongolia has been passed by Prof. Basandorj to the President office. The President of Mongolia came to the conclusion that the improvement of water governance as a strategic direction should attract serious attention from the government and parliament, as well as civil society.

Mongolian Prime Minister Oyunerdene Luvsannamsrai has instructed the Development Bank of Mongolia (DBM) to explore potential options, including an early payment, to settle its outstanding Samurai Bond obligations. Following this, the Bank says it will be able to further manage its future obligations and improve its overall debt profile. The move will reduce Mongolia's general government debt as the sovereign guarantee on the bond will concurrently mature.

According to Mr. Manduul Nyamdeleg, CEO of DBM, the Bank is waiting on potential options to make an early payment on its first-ever Samurai bond of JPY 30 billion (US $231 million) before its maturity date of December 2023. DBM is the only policy-oriented financial institution in the country with a mandate to finance large-scale, strategically important development projects in Mongolia. DBM serves a unique role in the local economy by filling the gap created by the emerging domestic banking sector, which remains unable to finance large development projects. Since its inception in 2011, the Bank has financed energy, transportation, affordable housing, agriculture, processing factories and mining projects in the country.

Due to its policy nature and the Government backing, DBM has maintained a strong funding base with a longer tenure and lower cost compared to those of the commercial banks in Mongolia.

In 2013, the Bank issued Mongolia's first-ever Samurai bond in the amount JPY 30 billion with a 10-year maturity and coupon rate of 1.52%. The guarantee from the Government of Mongolia and Japan Bank for International Cooperation (JBIC) made it possible to secure the long-term funding with a lower interest rate at the time. The proceeds from the bond have been used to finance affordable housing, processing factories, and agricultural projects in Mongolia.

Founded in 2011, Development Bank of Mongolia is wholly owned by the Government of Mongolia. Its principal objectives are ensuring sustainable economic growth in Mongolia, fostering value-added, export-driven production, and introducing financial solutions designed to implement Government development policies. As of May 10, 2022, total assets are MNT 4,196,004.38 million (US$1,351 million). Total loans and advances represent MNT 2,592,042 million (US $834.7 million), with the loan portfolio focusing on key sectors such as mining, agriculture and energy. Though the Bank was only established 11 years ago, it has successfully issued a number of notes in the international capital markets.

For more information, please contact: spilcher@atticuscomms.com

This content was issued through the press release distribution service at Newswire.com.

As part of his working visit to Ulaanbaatar on 10 May 2022, CICA Executive Director Ambassador Kairat Sarybay held a meeting with Minister of Foreign Affairs of Mongolia Ms. Battsetseg Batmunkh and full-format consultations at the Ministry of Foreign Affairs of Mongolia on a wide range of CICA-related issues.

Minister of Foreign Affairs of Mongolia Ms. Battsetseg Batmunkh reaffirmed Mongolia's commitment to the principles and goals of CICA, as well as support for the initiatives of the Kazakh Chairmanship to transform the Conference into a full-fledged international organization, and expressed readiness to actively participate in the process. In turn, Ambassador Kairat Sarybay informed the Minister about preparations for the Sixth CICA Summit to be held on 12-13 October 2022 in Nur-Sultan. Kairat Sarybay noted the importance of the principles of multilateralism in the context of the evolving geopolitical situation in the world and emphasized the role of CICA as an effective mechanism for multilateral cooperation on the Asian continent. The head of the Secretariat paid special attention to the opportunities that CICA could provide to increase connectivity in the region with a number of landlocked developing countries. The Executive Director encouraged Mongolia to implement its potential in the priority area of environment protection coordinated by Ulaanbaatar.

During the consultations of Ambassador Kairat Sarybay in the Multilateral Cooperation Department of the Ministry of Foreign Affairs of Mongolia, the parties had a thorough discussion on the ways to step up cooperation on confidence building measures under all five dimensions of CICA, as well as through the advisory bodies of the Conference: Business Council, Youth Council, Think Tank Forum and Council of Eminent Persons. Environmental Dimension Expert Dr. Ugur Turan presented the Secretariat's vision on topical issues of the environmental dimension, including the introduction of advanced green technologies. The Mongolian colleagues expressed their readiness to study the topical issues within the framework of environmental cooperation and give the necessary impetus to the development of that priority area.

During a meaningful conversation with the candidate to the CICA Council of Eminent Persons from Mongolia – Director of the Diplomatic Academy of Mongolia Ambassador Khasbazaryn Bekhbat, the sides discussed the future substantive work of the new CICA advisory body and its membership.

In order to enhance environmental cooperation, Expert in the Environmental Dimension of the CICA Secretariat Dr. Ugur Turan held a meeting at the Climate Change Department of the Ministry of Environment and Tourism of Mongolia. The Ministry’s specialists confirmed their interest in developing an updated concept in the priority area of environment protection and in organizing appropriate events to implement CICA confidence building measures.

During the visit, Executive Director Kairat Sarybay delivered a lecture to students of the National University of Mongolia and experts of the Mongolian association of researchers, which included the 30-year history of the development of CICA, the priorities of the Kazakh Chairmanship, as well as the activities of the Conference planned for the near future. The Executive Director emphasized the importance of interaction between the academic and research communities in the search for joint solutions to the challenges facing the CICA Member States, urging Mongolia to join the CICA Think Tank Forum.

As part of the visit, Ambassador Kairat Sarybay was also introduced to the activities of the International Think Tank for Landlocked Developing Countries, which was established by the United Nations at the initiative of Mongolia in Ulaanbaatar in 2009. The parties agreed to identify areas for future cooperation in order to meet the special needs of landlocked countries, as well as to consider the possibility of implementing joint projects.

At the close of the visit, Ambassador Kairat Sarybay was interviewed by the Montsame news agency, where he presented the activities of CICA.

The Development Bank of Mongolia (‘DBM’) to look into potential prospects, including an early payment before maturity, to pay off the outstanding bond obligations of the JPY 30 Billion Samurai Bond. The Samurai Bonds are unconditionally and irrevocably guaranteed by the Government of Mongolia and Japan Bank for International Cooperation (JBIC) with a maturity date of December 2023.

In 2013, the Bank issued Mongolia’s first-ever Samurai bond when the Mongolian balance of payments was at stake with foreign trade deficit rising to $1.4 billion and foreign investment falling by 47 percent. But the Government of Mongolia and the Japan Bank for International Cooperation (JBIC) made it possible to secure long-term funding with a lower interest rate.

DBM is steeped in controversies surrounding the credibility of its financial capabilities; being the only policy-oriented financial institution in the country with a mandate to finance large-scale, strategically important development projects in Mongolia. However, despite public questioning of the credibility Mr. Manduul Nyamdeleg, CEO of the DBM, states the bank’s potential to make early payments of the Samurai bond.

Since 2011 DBM has mandated 60% of its loans to finance large-scale domestic industrial projects in Mongolia and facilitate Mongolia’s overall development, and the rest to diversify the Mongolian economy to better insulate the economy against future macroeconomic changes in the demand and price for Mongolia’s commodities exports. Over the past five years, the trade turnover for Mongolia averaged $13.2 billion. Despite the pandemic, the foreign trade turnover has been positive since 2014; the trade balance was negative $2 million in 2013 and increased to $9.25 billion in 2021.

DBM’s issuer credit ratings from Moody’s, S&P, and Fitch are B3, B, and B, respectively, corresponding to Mongolia’s long-term sovereign credit rating outlook. This reflects a vital link to ongoing Government support for the Bank’s critical policy-oriented role in the Mongolian economy. Though the Bank was established 11 years ago, it has successfully issued several notes in the international capital markets and has a healthy risk fund through its 2% origination fees.

Despite the controversy and some non-performing loans, DBM’s performance and allocation of funds to repay the Samurai Bond reflect its perseverance. If the recent turnaround of the bank is anything to go by, stricter measurements on loan processing and the correct allocation of funds enable the bank to fulfill its initial purpose. It seems DBM is set to rebound after some setbacks.

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