Shanxi likely to buy more Mongolian coking coal www.mongolianminingjournal.com

Shanxi province in Central China has 55 percent of the total coking coal reserves in the country and produces 40.74 percent of the country’s coking coal -- the raw material to produce coke – but even then it now looks set to become a major purchaser of Mongolian coking coal, as Shanxi’s coking industry is being expanded in a big way. The production capacity of the province’s coking coal mines has been increased by 104.45 million tonnes between 2014 and now, and is projected to go up another 97.15 million tonnes in the next three years, according to Zhang Gangfeng, General Secretary of the Shanxi Province Coking Industry Association. At the same time Shanxi’s coke producing capacity reached 127 million tonnes last year, giving it a 28.3 percent share of the total capacity in the country. The province actually produced 82 million tonnes of coke in 2016 and this is expected to reach 100 million tonnes this year. Capacity is to be increased by 80 million tonnes in the next five years to 200 million tones, giving the province 35.5 percent of the country’s total coke production capacity.

At the same time several other regions of China, such as the provinces of Hebei, Shandong, Anhui, Guizhou, Yunnan, and Heilonjiang have together slashed their coking coal production capacity by 7% or 84.77 million tonnes since 2014. The national coking coal extraction capacity is proposed to be reduced by 206.7 million tonnes or 16.7 percent of total capacity. This, too, was revealed by Zhang Gangfeng at Coal Mongolia 2017. 

This has to be seen together with the fact that 19 coking companies in Beijing, Tianjin, Hebei, and Shandong – all in the Chinese eastern region -- with total production capacity of 27.65 million tonnes have closed in recent years. More such plants are likely to face closure as the government enforces its stringent environment protection policy.

All this together has led to the situation where Shanxi becomes a major buyer of Mongolian coal. The companies there prefer to mix Mongolian coking coal with their own to get the best results. For example, coking coal from Ceke port could be blended with the high-ash coal of Shanxi while the low-sulphur coking coal from Gantsmod could be mixed with the local high-sulphur coal.  
China imported 42 million tonnes of coking coal in the first seven months of the year, 32 percent more than in the same period last year, and most of it was from Mongolia. The full year’s total coking coal import is expected to reach 66 million tonnes, 10 percent higher YoY, according to Fenwei Energy Information Service, which is China’s major coal database. The second half of the year will, however, see imports slowing down, the database warned. 

Both coking coal extraction and steel production in China are expected to increase, even if slightly, in 2017. Steel production is projected to reach 825 million tonnes, a 2.1 percent increase YoY, while coking coal extraction will go up to 474 million tones, a rise of 6.7 percent YoY. As for coke production, it may reach 456 million tonnes, 1.6 percent up YoY. 
All this bodes well for Mongolia’s coal export.

Construction of new wasterwater treatment plant to begin next year www.montsame.mn

Ulaanbaatar /MONTSAME/ During its regular meeting on November 15, the Cabinet resolved to start the construction of a new wastewater treatment plant in Ulaanbaatar by the second quater of next year.

Mongolia, Turkey discuss ties www.akipress.com

AKIPRESS.COM - Minister of Foreign Affairs of Mongolia D.Tsogtbaatar met Ahmet Yazal, Ambassador of Turkey to Mongolia, on November 14.

Cardiologists from Mongolia and Taiwan exchange experience www.news.mn

A medical conference entitled ‘Diagnosis and treatment of the coronary arteries’ was held in Ulaanbaatar on 10-11 November. The conference was co-organised by the Mongolian Science and Technological Fund with Taiwanese support.

Cabinet to improve coal transport management www.montsame.mn

Ulaanbaatar /MONTSAME/ During the Cabinet’s regular meeting on November 15, Minister of Mining and Heavy Industry D.Sumiyabazar reported on the current state of Oyu Tolgoi and Tavan Tolgoi mines, coal transport and the Tsagaan Khad Customs Stockyard.

Itools secondary market trading to begin on November 16, 2017 www.mse.mn

ITools, the most recent company to be listed on the Mongolian Stock Exchange, provides over 30 products and services such as domain name registration, internet and e-mail provison. It issued 38.86% of its stock and raised MNT 1.3 billion through its IPO which concluded on November 10, 2017. Using the money it raised on the Mongolia Stock Exchange, the firm plans to expand its data center business by founding a TIER III standard Modular Data Center Park in Darkhan City. 

November 15, 2017 trading report www.mse.mn

On November 15, 2017, 107,261 shares of 18 firms listed as Tier I, II, and III were traded. 10 firms’ shares increased in price, 7 decreased and 1 remained unchanged. State Department Store JSC /UID/ was the top performer, increasing 8.16 percent, whereas Baganuur JSC /BAN/ was the worst performer, decreasing 10.29 percent.

Buffett's Berkshire slashes IBM stake, adds to Apple www.reuters.com

NEW YORK (Reuters) - Warren Buffett’s Berkshire Hathaway Inc (BRKa.N) has sold another large piece of its stake in IBM Corp (IBM.N), backing further away from an investment that the billionaire has admitted was not one of his best.

Sudbury Coleman Mine in shutdown for 30 days www.mining.com

Brazil’s Vale (NYSE:VALE) announced today that the temporary closure of its Coleman Mine in Sudbury, Ontario, which was caused by critical repair work taking place at the shaft's ventilation compartment, will take longer than expected.

Entrée Resources Announces Third Quarter 2017 Financial Results www.wtol.com

VANCOUVER, Nov. 14, 2017 /PRNewswire/ - Entrée Resources Ltd. (TSX:ETG; NYSE American:EGI – the "Company" or "Entrée") is pleased to report its financial results for the three and nine months ended September 30, 2017. Details of the Company's third quarter 2017 financial results are contained in the unaudited consolidated financial statements and management's discussion and analysis, which are available on the Company's website at www.EntreeResourcesLtd.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All figures are in US dollars unless otherwise noted.

THIRD QUARTER 2017 HIGHLIGHTS

Entrée/Oyu Tolgoi JV Property

Entrée has engaged its consultants, Amec Foster Wheeler Americas Limited ("Amec Foster Wheeler") to commence work on an updated National Instrument 43-101 Technical Report (the "Technical Report") on Entrée's 20% participating interest in the Entrée/Oyu Tolgoi joint venture ("Entrée/Oyu Tolgoi JV") in Mongolia. Completion of the Technical Report will be a significant milestone for the Company as it will enable management to discuss preliminary economics for potential future phases of the Oyu Tolgoi mine, where a significant amount of the Entrée/Oyu Tolgoi JV's mineralization occurs, thereby helping investors to understand the underlying value of Entrée's flagship asset. The updated Technical Report will include:
an updated reserve case for the first lift ("Lift 1") of the Hugo North Extension block cave on the Entrée/Oyu Tolgoi JV property. The reserve will be based on information contained within the 2016 Oyu Tolgoi Feasibility Study finalized in May 2016 by Entrée's joint venture partner Oyu Tolgoi LLC ("OTLLC"). First development production from Lift 1 on the Entrée/Oyu Tolgoi JV property is expected in approximately 2021; and
a Preliminary Economic Assessment of Entrée's interest in both Lift 2 of the Hugo North Extension copper-gold deposit ("Lift 2") and the Heruga copper-gold-molybdenum deposit ("Heruga").
Entrée management visited the Oyu Tolgoi mine in early September and had an opportunity to tour some of the main surface infrastructure, including the concentrator and tailings facilities and to also go underground to observe some of the development work completed to date. This visit included a review of plans with OTLLC for the immediate and medium-term future. Entrée is pleased to report that project development, including both direct production and supporting infrastructure, appears to be on track and is being completed to the highest safety and operating standards.
The development of Shaft 4, which is the first physical development work on the Entrée/Oyu Tolgoi JV property, is expected to commence in 2018. Shaft 4 will provide the necessary ventilation required to support mining of the northern part of the Hugo North deposit (including Hugo North Extension on the Entrée/Oyu Tolgoi JV property), which is reported to contain some of the highest-grade copper-gold mineralization in the entire Oyu Tolgoi project. Completion of Shaft 4 is expected in 2021.
As reported by Turquoise Hill Resources Ltd. ("Turquoise Hill") on November 2, 2017, production from the Lift 1 underground mine, which starts on OTLLC's Oyu Tolgoi mining license, remains on track for first draw bell in mid-2020 and sustainable first production in 2021. Activities reported in Q3 2017 include:
Underground lateral development made good progress with approximately 1.4 equivalent kilometres completed. Since the re-start of development in 2016, a total of 5.4 equivalent kilometres of lateral development has been completed.
The third development crew was deployed. Crews four and five were in training during the quarter and are expected to be deployed during Q4 2017. Also during Q3 2017, commissioning of the new 3,500 tonne per day development crusher was completed. With the deployment of crews four and five, a step up in lateral development rates is expected to begin in Q4 2017.
At the end of Q3 2017, Shaft 2 sinking was at 1,249 metres and work had commenced on the service-level excavation that has a floor at 1,256 metres. Shaft 2 sinking is expected to be complete in 2017 at a final depth of 1,284 metres with fit out occurring over 2018. Shaft 2 is key to future increases in lateral development activity.
Shaft 5 sinking progressed approximately 214 metres during Q3 2017. During September, the underground team achieved the best sinking rate for Shaft 5 since project re-start averaging 2.6 metres per day. Sinking of Shaft 5 began slower than expected due to an extended construction re-start period and lower productivity with completion now likely in early 2018. When completed, Shaft 5 will be dedicated to ventilation thereby increasing the capacity for underground activities; however, with good early progress and continued on-plan lateral development, the completion of Shaft 5 sinking in early 2018 is not expected to materially impact the lateral development plan.
Development of the convey-to-surface decline continued to progress with month-on-month improvement resulting from the use of project-wide process optimization techniques. The convey-to-surface system is the eventual route of the full 95,000 tonne per day underground ore delivery system to the concentrator; however, it is not a critical path item for first draw bell planned in mid-2020. Expected completion of the convey-to-surface system is 2022, which will facilitate the ramp up to full production by 2027.
Corporate

Q3 2017 net loss from continuing operations, was $0.3 million as compared to Q3 2016 ($1.0 million), a reduction of 70% from the comparative period of 2016.
As at September 30, 2017, cash on hand was $7.7 million with a working capital balance of $7.8 million.