7 Nov 2011 07:00
Press Release 7 November 2011
ORIGO & TRAFIGURA ANNOUNCE MONGOLIAN
IRON ORE & COAL VENTURE
Origo Partners Plc ("Origo") and Trafigura Beheer B.V. ("Trafigura") are pleased to announce the formation of a joint venture company, Trafigura-Origo MGL to invest in coal and iron ore opportunities in Mongolia ("the Joint Venture"). The Joint Venture will benefit from the combination of Origo's transactional, geological and technical expertise in Mongolia and Trafigura's global and Mongolian experience in commodities production, trading and logistics.
The Joint Venture, to be owned 50:50 by wholly-owned Mongolian subsidiaries of Trafigura and Origo respectively, will invest in a number of already identified iron ore and coal exploration projects in Mongolia with the objective of targeting further high-grade deposits with the potential for significant export volumes.
Origo and Trafigura have also agreed to consider expanding the scope of the Joint Venture into other countries in the region, such as Kazakhstan and Russia and to cover all commodities. Origo will share in the benefits of the trading of commodities from assets that the Joint Venture invests in. Trafigura is one of the world's leading physical commodity trading companies. Origo is one of the largest private equity investors in the Mongolian natural resource sector.
The Joint Venture will be jointly managed by Luke Leslie, Head of Mongolia and Mining Investments at Origo and Mikhail Zeldovich, Head of Russia/CIS and Mongolia at Trafigura. The Company's Board will also include Chris Rynning, CEO of Origo and Chris Cox, a Director at Trafigura.
Chris Cox, Director of Trafigura Beheer B.V. said:
"The Joint Venture represents an excellent opportunity to further strengthen our involvement in Mongolia. It also helps us to maintain our position as a leading player in the global commodities business."
Commenting on today's announcement, Chris Rynning, the CEO of Origo, said:
"The Joint Venture is an endorsement of our mining franchise, our market leading position in Mongolia and the country's potential to develop into a major supplier of bulk commodities and base metals. Working with Trafigura, one of the world's leading trading companies, will enable us to enhance our existing strong position in Mongolia and the wider region.
"This Joint Venture will enable our experienced team of finance professionals, industry experts and geologists to further develop our investments in Mongolia's natural resource sector. Our on the ground presence means we are in an increasingly strong position to create value by applying our engineering and exploration skills and equipment at all stages of project development."
For further information please contact:
Origo Partners plc
Chris Rynning chris@origoplc.com
Niklas Ponnert niklas@origoplc.com
Broker and Nominated Adviser
Liberum Capital Limited
Simon Atkinson / Richard Bootle +44 (0)20 3100 2222
Public Relations (Origo)
Aura Financial
Andy Mills / Nina Legge +44 (0)20 7321 0000
Trafigura
Global Media Office +44 (0)20 7009 1708 / media@trafigura.com
Notes to editors:
Origo Partners
·; Origo is an AIM-listed private equity investor and fund manager which provides its shareholders with exposure to China-linked investment opportunities.
·; Based in Beijing, Origo has a significant portfolio of investments in a range of industrial sectors, including metals and mining, agriculture, renewable energy/clean tech and technology, telecom and media.
·; Origo invests directly in high growth Chinese companies as well as in companies based around the world with significant exposure to Chinese export markets.
·; Origo has a wholly-owned Mongolian subsidiary in Ulaanbaatar which invests in and operates Mongolian assets and a portfolio of investments in the country that includes investments in Kincora Copper, Gobi Coal & Energy, Voyager Resources and Moly World Limited.
·; For more details refer to www.origoplc.com
Trafigura
·; Trafigura is one of the world's leading international commodity traders, specializing in the supply and transport of crude oil, petroleum products, renewable energies, coal, refined metals, ferrous and non-ferrous ores and concentrates.
·; Established in 1993, Trafigura is owned by its founding shareholders and senior management. The company has achieved substantial growth in recent years, growing turnover from US$18 billion in 2004 to US$79.2 billion in 2010.
·; Trafigura employs over 6,000 people globally and operates from 67 offices in 44 countries.
·; Trafigura has been involved in the Mongolian natural resources sector since 1997 and has a representative office in Ulaanbaatar.
·; For further information on Trafigura, please refer to the company's website: www.trafigura.com