Mongolia Energy Corporation

Mongolia Energy Corporation Limited
Company type	Public company
Industry	Mining, Energy
Predecessor	New World Cyberbase
Founded	1972
Headquarters	Bermuda
Area served	Mongolia, Xinjiang (China)
Products	Coal, ferrous metals, non-ferrous metals, oil and gas concessions

Mongolia Energy Corporation Limited (abbreviated as MEC) functions as a holding enterprise in the mining and energy sectors, with operations spanning Mongolia and the Xinjiang region of northwestern China. Established under Bermuda jurisdiction and publicly traded on the Hong Kong Stock Exchange, MEC became part of the MSCI Hong Kong Index in June 2008.

In 2008, MEC was criticized as a China Concepts Stock that lacked tangible earnings, with its stock price largely influenced by investor speculation. The company also encountered controversy over its acquisition of a private jet in 2005 through recapitalization efforts, which was subsequently sold in 2007.

History

MEC's listing on the Hong Kong Stock Exchange occurred in 2007 when New World Cyberbase, a technology firm listed since 1972, acquired the assets of Mongolia Energy Limited and rebranded itself as Mongolia Energy. During the 2007–2008 fiscal period, MEC secured extensive coal, ferrous, and non-ferrous metal concessions located in western Mongolia.

Early in 2007, between January and February, MEC obtained its initial coal concessions at Khushuut and Darvi, totaling , with shareholder approval granted in April. By May 2007, the company expanded its resource portfolio by acquiring of concessions at Gants Mod. In September of that year, MEC entered into a transportation cooperation agreement with COSCO. By December, MEC had acquired a 20% shareholding in oil and gas exploration concessions situated in western Mongolia and partnered with CNPC Daqing Petroleum to conduct feasibility assessments.

Exploration activities at Khushuut in January 2008 confirmed significant coal deposits within the concession area. In March 2008, MEC invested in a multi-metal project featuring tungsten and tin resources located at Ruoqiang County, Xinjiang, with project completion anticipated by mid-2009.

The company further broadened its asset base during 2008–2009. In May 2008, MEC acquired coal and metal concessions covering across Olan Bulog and Govi-Altai, elevating its total concession holdings in western Mongolia to . Additionally, it secured a 25% ownership interest in a corporation managing approximately two billion tonnes of coal resources in Xinjiang, affording MEC an effective 20% stake across this venture and related projects. In September 2008, MEC won an international bid granting it a 20% interest in over 1.18 million hectares of oil and gas concessions located in Southern Mongolia’s Ergel XII petroleum block.

Operations

MEC operates through various subsidiaries that acquire, explore, and develop coal, ferrous metals, non-ferrous metals, as well as oil and gas concessions within Mongolia and Xinjiang, China.

By 2009, MEC controlled concession territories totaling approximately 330,000 hectares. Starting mid-2009, the company aimed to produce three million tons of coking coal annually, with plans to escalate production to eight million tons per year by 2012.

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