Mongolia
Mining Corp. is looking out for acquisition targets in the Mongolian resources
sector following an initial public offering in Hong Kong raising USD650
million, according to its top executive. Executive Chairman J. Odjargal said
the company “will focus more on coal and iron ore” in identifying
potential targets. “A major criterion will be proximity to the
Mongolian-Chinese border,” he said.

Mongolia
Mining is the first Mongolian company to list its shares in Hong Kong, though
several other companies doing business with Mongolia have already raised funds
on the exchange.

Mongolia”s
ability to deliver goods to China is hampered by poor transportation links. .
Odjargal said that there are plans for two new rail lines already approved by
Mongolia”s parliament, including a direct link from the company”s Ukhaa Khudag
deposit in the southern Gobi desert to the Chinese border that would cut its
transport costs in half. Currently, all of the company”s coal is delivered to
the border by truck.

“The
railway will help increase our margins significantly,” he said. However,
the timing of construction for the two projects won”t be known until the first
quarter of 2011, he said.