Road construction is one of the fastest growing industries in Mongolia.
Of the current 49,294 kilometres of roads in Mongolia, less than 25% are paved. To improve its infrastructure, the government intends to build over 10,000 kilometres of new paved roads over the next ten years. To do so, it passed a new law to mandate paved roads between Ulaanbaatar and each of the country’s 21 province centers by 2016. In addition, the government allocated US$335 million to road building projects in the near term.
Modern roads and other transportation infrastructure are essential to the growth of Mongolia’s economy. A large, sparsely-populated country, Mongolia possesses world-class resource assets about to be developed. Whether it becomes one of the world’s wealthiest economies in the coming years will depend on a massive investment in the nation’s infrastructure.
Khot recently demonstrated its capabilities to the Mongolia Ministry of Road and Transportation with a six-kilometer road repair contract. In October 2014 a Khot crew repaired a section of road near Khongor Sum, strategically situated on the north-south road that connects Russia, China, and all the major cities in Mongolia.
This contract marks an important initial milestone for Khot as it commences operations in the road building and infrastructure sector. Now completed with projected revenue of approximately USD $1.16 million (USD$698,000 received so far), this valuable first step allows Khot to gear up for the much larger opportunities in this burgeoning sector.
Map of road covered by repair contract in Khongor Sum
James Passin, Chairman
Mr. Passin is a fund manager at Firebird Management LLC. He joined the firm in 1999. Mr. Passin is the Co-Founder and Manager of Firebird Mongolia Fund, Firebird New Mongolia Fund, Firebird Global Fund, and Firebird Global Fund II and a Principal at FGS Advisors LLC and FG2 Advisors LLC. He is a director of a number of both public and private Mongolian and Canadian companies, including Vanoil Energy Ltd., Sharyn Gol JSC, and BDSec JSC. Mr. Passin is a graduate of St. John’s College, where he majored in Philosophy and Classical Literature. James is a recipient of the Mining Sector 90-Year Anniversary Honorary Medal from the Mongolian government. James was also named “Fund Manager of the Year” at the 2012 Mines and Money Conference in Hong Kong.
Don Padgett, President and CEO
Mr. Padgett has extensive experience in all aspects of public company finance and governance. He is a director of a number of international public and private companies. Mr. Padgett previously held executive positions at Canaccord Capital and Burns Fry (BMO Nesbitt Burns).
Erin Chutter, Non-Executive Director
Ms. Chutter serves as the President and CEO of Global Cobalt Corp, after founding the company in 2007. Erin has led a multinational and multidisciplinary financial and technical team to develop the Karakul Cobalt Mine Project in Altai, Russia as well as mining projects in Canada and the US. She carries particular expertise in complex international mining projects requiring creative financing solutions. Erin was also a founding Director of Niocorp. Erin is a Director of the MacDonald Laurier Institute, a world-renowned Ottawa-based think tank leading new research on social license and resource extraction, and is the Chair for the Canadian Eurasian Russia Business Association (Vancouver Chapter). In 2011, she was honoured as a “40 Under 40” by Business in Vancouver.
Kenneth Farrell, Non-Executive Director
Mr. Farrell spent from 1977 to 1980 as a principal engineer for the Queensland Government Road Construction Authority with responsibility for a broad range of road and bridge construction projects, including remote environments. He then served as the Senior Construction Engineer for BHP Billiton on their Groote Eylandt Manganese Mine. For the following 15 years Mr. Farrell held various executive management roles in the operating companies of BHP Billiton. He joined PT Bumi Resources in 2002 to oversee the its expansion into Indonesia’s largest diversified mining company, which includes PT KPC – the world’s largest export coal mine. Mr. Farrell remains an Executive Director of Bumi Resources. He is a Member of the Institution of Engineers, Australia; a Member of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Company Directors. Mr. Farrell holds an Honours Degree in Civil Engineering, a degree in Commerce and a post graduate diploma in Company Directorship.
Orgilmaa Siizkhuu, Non-Executive Director
Ms. Siizkhuu is the Chief Legal Officer of NIBank in Ulaanbaatar. She is an expert in Mongolia corporate and securities law. Ms. Siiizhkuu holds a law degree from the Law School of the State University of Mongolia and is a member of the Mongolian Advocates Association.
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