Mongolia Day took
place in London Stock Exchange on June 28. Our reporter Budvaa Byambasuren sends
this report.

A sunny morning
welcomed us in London on Monday. We took a subway to the stock exchange
building in eastern London which took about 15 minutes in a train full of
people going to work. The front door of the Stock Exchange was closed. Assuming
that Englishmen would not make such a mistake, we walked around the building
and found another entrance, learning that the closed gate was only for official
visitors. We took a guest ID card from the receptionist which allowed us access
to the stock exchange chamber and elsewhere.

The event began at
8.45 am. MP O.Chuluunbat, director of Mongolian Stock Exchange R.Sodkhuu, director
of Government Property Bureau D.Sugar, director of Norton Sec Company B.Ulziibayar
and Mongolbank representative in London D.Enkhjargal were among those present. A
welcome speech was given by John Edwards, senior manager of the Stock Exchange
and D.Enkhjargal responded. LSE executive director Havir Rolet then spoke and expressed
his readiness to help Mongolian companies develop. Many investors and legal
consulting companies were present.

Presentations containing
suggestions on trading in international markets were given by Lawrent
Sharbonier of Credit Suisse and Peter Nichols of Rio Tinto. Both referred to
Mongolia’s huge potential and stressed that investors would be closely watching
the policy of the Mongolian Government.

Then came the turn
for the Mongolian presentation. O.Chuluunbat, vice director of Oil Department
D.Erdenebileg and director of Foreign Investment Department B.Ganzorig gave detailed
information on the mining sector, the legal environment and government
policies. D.Sugar, director of Government Property Bureau, talked about the 15
strategic deposits, and was very attentively heard.

B.Erdenebileg said, “I
am happy that Europe is no longer afraid of Mongolians and has opened its doors
for us.”  He gave detailed information
about Mongolian natural resources. Exploration licenses cover 23.3 percent of the
total area of the country, while mining licenses cover another 0.24 percent. The
number of total licenses is 1,081. Last year, USD500 million was invested in
the sector. There was scope for many more large foreign investments.

I asked Chuluunbat why
Mongolia was trying to enter a European market when foreign investors were flocking
to Asian markets? He explained that LSE is one of the biggest trading centers but
“investors here don’t have enough knowledge” about Mongolia. “There may also be
some who would ask where Mongolia is. It is different in Hong Kong because
there Mongolia is known. Shares are valued better there. But London Stock
Exchange has more experience in mining IPOs. Hong Kong is better for
manufacturing units’ IPOs. Both are beneficial for us. It is not the LSE’s
fault that Mongolia is not too well known here. Mongolian companies must introduce
and advertise themselves internationally,” he said.

The first Mongolian
company to trade in LSE is Petromatad Limited which owns IV, V and XX oil blocks.
It drills in XX and the other two are undergoing preliminary exploration. The
company told us what it did to get listed. It formed a marketing team of professionals
who managed everything. Their executive board has people with international reputation
and they receive advice from consulting companies. The LSE’s admission criteria
are tough but fair, and it has special provisions for emerging companies in the
secondary market.

There are 613
companies from 70 countries registered in LSE.