RE: RE: mongolia = basket case. "highly speculative due to today's news out of mongolian govt."
I nibbled on a few shares this morning and fully expect most all things will be ironed out come an end of June time frame.
Having a position in another Mongolian coal play, reaction by the Monglian Gov't can not be sugar coated. At the same time, its more of the same in that this is an election year and certain politicians always play to the populist fear of China and Russia so as to garnish additional votes. After the election in June, and at the end of the day, Mongolia has no choce but to embrace a greater involvement within the country by both China and Russia. In the case of South Golbi (or better yet Ivanhoe), I think the mistake made was not involving the Mongolian Gov't more closely in the process. With drafted legislation most likley never to see the light of day, the pulling of (or even threat to pull) various licenses has implications across the board. Not exactly a good move on behalf of the Gov't because this will no doubt stall and or deter additional foreign investment. Hence, I think it will be cleared up and clarified very quickly. If not, it will be very difficult on behalf of the Gov't to correct the damage done.