Origo sets up Mongolia JV with Trafigura

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. Operations 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. Chris Rynning, CEO of Origo and Chris Cox, a Director at Trafigura, will also serve on the board.

"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," Rynning said in a statement. "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."

Last year, Origo Partners opened an office in Ulan Bator to support a dedicated fund, Origo Altai Partners, for investment in Mongolia. Its existing assets in the country include a 17.6% stake in Gobi Coal & Energy. The private equity firm bought a 21% interest in November 2009, valuing the company at $71 million.

In its half-yearly report, Origo noted that the value of its stake in Gobi Coal and Energy rose to $65.8 million by June 30, 2011, compared to $52.7 million December 31, 2010.

In September, it was reported the owners of Gobi Coal and Energy, including Origo, are looking to sell the asset for as much as $750 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Industrials
• Mongolia
• Origo Partners
• Joint Venture
• Commodities