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Baptized into the world of business and travel at a young age I’ve subsequently lived in multiple countries, traveled to many more and built myself a small fortune investing in businesses and markets that I spend an extraordinary amount of time doing due diligence on.

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Why Would Any Sane Investor Even Look At This?

Date: Saturday, December 17, 2016 12:58 PM EDT

Yep. Politics matters, all right?

The CNBC article goes on to state the following:

"Mongolia's government on Friday held an initial meeting with a private consortium, led by Shenhua, which is in talks to take over development of the Tavan Tolgoi mine from the Mongolian state-owned company Erdenes Tavan Tolgoi JSC (ETT)."

Now, as soon as Shenhua agreed to come to town the probabilities for the one company that's not even mentioned anywhere in the media to be one of the topics of discussion just got a whole lot better.

In the alert you'll recall the one major accelerant needed is the railroad. Here's what we said:

"In 2015, Mongolian Mining Corporation was able to put together a consortium of leading Chinese and Japanese firms (including Shenhua Energy and Sumitomo) that would pay to build a railroad to the border, build a power plant and then operate the TT mine so that the government of Mongolia would no longer be in the coal business.
Instead, the government was to earn royalties and taxes. Mongolian Mining Corporation would benefit as project operator, but more importantly, they would get access to the new railroad that would make their coal cheaper than Australian coal and let them once again ramp up production from almost nothing to nearly 10 million tons a year without substantial additional capital investment as all mining is done by a contractor.

It was a brilliant deal for all involved, but the DP government was so focused on destroying Mongolian Mining Corporation that they refused a deal that would have improved the government's own finances."

And we followed on with:

"It seems pretty obvious that the consortium deal is back on the table and will probably become sweeter for MMC than the prior version. In addition, there's also a strong likelihood that MMC's 18 million ton wash plant will be used to wash ETT coal in a toll milling situation.

The new railroad, a toll washing agreement on ETT coal, management of the ETT mine will all create huge value. No one knows the terms yet, but people are throwing around cash flow estimates to Mongolian Mining Corporation in the hundreds of millions (possibly even a billion) annually."

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