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John Polomny
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John Polomny is an individual investor and speculator seeking unique, overlooked, and well researched opportunities and speculations from all over the world.
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  • Chinese To Build Cross Border Rail Link To Mongolian Coal Field

    World Coal:

    Chinese state-owned mining group Shenhua, which operates 1765 km of coal railway in China, has signed a joint venture agreement to develop a cross-border rail link to serve the Tavan Tolgoi coalfield in the South Gobi region of Mongolia.

    Under an agreement signed in Ulaanbaatar on 7 April 2014, Shenhua will hold a 49% interest in a joint venture being formed to progress the project. A consortium of Mongolian firms, including Erdenes Tavan Tolgoi, Energy Resources LLC and Tavan Tolgoi, will hold the remaining 51% stake.

    Gashuunsukhait Railway Company will invest in the construction of a railway project at the Sino-Mongolian border crossing, which will be a standard gauge (1435 mm) cross-boundary cargo transportation railway with approximately 20 km in length connecting the Gashuunsukhait boundary control point in Mongolia and the Ganqimaodu boundary control point in China.

    This is something that would not have occurred a couple of years ago. Remember the whole fall off in foreign direct investment into Mongolia was due to the Mongolian governments adverse reaction to Chalco's attempted takeover of SouthGobi Resources. Behind the scenes and below the radar deals like this keep happening and are a reason I am still bullish on Mongolia and Mongolia stocks. Of course the media and most people are fixated on resolution of the OT impasse but slowly but surely the situation is turning in Mongolia.

    Disclosure: I am long MNGGF.

    Tags: MNGGF
    Apr 14 7:58 PM | Link | Comment!
  • Palladium Trading At Highest Level Since 2011

    (click to enlarge)

    Palladium continues to move higher as the miner strike in SA continues. The metal is looking more and more bullish and appears to have broken out on the weekly chart. From everything I am reading regarding the strike, it appears that even when a settlement is reached the mining companies are going to use the excuse of higher labor costs as a reason to begin shutting down high cost operations and money losing shafts. This will further constrain the supply of pgms and should help to further increase the price.

    Disclosure: I am long SAPLF.

    Tags: SAPLF, Palladium
    Apr 12 11:08 AM | Link | Comment!
  • Japan Reverses Policy On Nuclear Power

    Bangkok Post:

    The government of Prime Minister Shinzo Abe decided on a national energy policy Friday that supports the use of nuclear power now and in the future, retracting a nuclear phase-out goal introduced by its predecessor after the 2011 Fukushima Daiichi disaster.

    The Basic Energy Plan sets the stage for the government to move ahead to restart nuclear reactors, all of which are now offline amid safety concerns, while reaffirming the continuity of the country's spent fuel recycling projects that have not made headway.

    The move has been expected since the pro-nuclear Liberal Democratic Party returned to power in December 2012, but the government spent several more months than initially expected before deciding on the plan as draft documents stirred controversy among lawmakers who saw them as too strongly pro-nuclear in tone.

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    As for the policy direction over the next 20 years or so, the government said it will "proceed with the reactivation of nuclear power plants" that have satisfied what the government calls the world's toughest regulatory standards, and at the same time pledged to "reduce nuclear dependence as much as possible."

    It also left open the possibility of allowing the construction of new reactors, saying in the plan that the government will "assess the amount of nuclear power that should be secured" to ensure a stable energy supply in a resource-scarce country.

    This was inevitable as I had been saying for some time. The simple fact is that the Japanese economy was having to spend huge amounts of money importing LNG and coal to make up for the offline nuke plants. A responsible restart of some of the reactors was always going to happen or the lights were going to go out in Japan. It does not appear that all the reactors will be restarted but this should be the catalyst for a rising uranium price later in 2014.

    Disclosure: I am long URA, CCJ, URPTF.

    Tags: CCJ, URA, URPTF, Uranium
    Apr 11 3:46 PM | Link | Comment!
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