Nova Trans LLC
Mongolia's emerging logistics company
- Make an energy haven for the people and earth
- Be the most preferred resources logistics company globally
- Be the best Mongolian trucking company, providing efficient, safe, fast and low cost trucking services
- Implement advanced IT-based logistics system
- Introduce professional driver management
Nova Trans LLC (“Nova”) is an emerging logistics company incorporated in Mongolia, primarily focusing on trucking mineral ores to the Chinese border from mine sites in Mongolia. The company aims to be the most preferred logistics company in Mongolia, providing efficient, fast, and safe trucking services at the lowest cost possible. Nova envisions itself to creating an energy haven for people and earth.
Nova is owned by Nova Resources Limited, through its indirect acquisition of Salins Limited, which holds the entire issued capital of Nova. Nova Resources Limited is an investment company incorporated in Bermuda and trades on the AIM market of the London Stock Exchange.
Nova has entered into a coal transportation agreement with Energy Resources LLC (ER), one of the largest coking coal producers in Mongolia and owner of Ukhaa Khudag (UHG) coal deposit located in the Tavan Tolgoi coal formation in South Gobi. The agreement provides that Nova will transport coal from the UHG mine site to Tsagaan Khad port (Chinese border), passing through Gashuun Sukhait (215km) paved road. The service contract is for a one-year period commencing June 5, 2012 with a discretionary one year extension thereafter.
Nova will be initially operating with a fleet of 32 trucks and 64 trailers, with loading capacity of 140 tons for each truck. The agreement offers a competitive freight charge of US$0.08 per ton per kilometre, which would generate around US$950,000 revenue per truck per annum. With this, the company expects to target approximately US$30 million in revenue and US$8 million in net profit in the first year, 2012. Nova arranged a temporary camp to support the early stage of trucking operation, while the construction of permanent camp is being setup. Nova plans to increase its fleet size significantly in the succeeding years.
Updated on 4th of July 2012
Charles Alexander Green, Chairman
Significant experience in corporate transactions; previously Sheffield United Football Club, Source BioScience, Texas Group PLC
Ji Won Park, CEO
18+ years in the public company strategic planning and project management; Previously Korean Military; recognised by Forbes Asia
Kyung Hoon Park, CFO
Previously STIC Investments, A.T. Kearney, Hana Bank, Viant Inc.
Demberel Manga, Deputy COO
Previously Mongolian State Material and Technical Supply, “Chinggis Khaan” International Airport LLC
- One of the largest coking coal producers in Mongolia
- Owns and operates Ukhaa Khudag coking coal deposit (UHG),
in Umnogobi, which is 245km north to the Chinese border
- Transportation is handled by ER’s subsidiary, Transgobi LLC
- UHG holds 499.9Mt of coal resources; 286Mt of coal reserves
- Covers 2,960 hectares of coking coal
- Started mining in 2009
- Produced 1.8 Mt, 3.8 Mt and 7 Mt in 2009, 2010 and 2011, respectively
- Targets 10 Mt for 2012 and 14 Mt by 2014
Contract with Energy Resource LLCTransportation business of Energy Resource LLC (ER) is conducted by its subsidiary, Transgobi LLC
|Transportation Route:||Ukhaa Khudag (UHG) mine site to Tsagaan Khad, Mongolia|
|Contract Term:||One year with optional one-year extension|
|Start of Contract:||5 June 2012|
|End of Contract:||15 April 2013|
|Fleet size:|| starting with 32 trucks and tandem trailers
(Loading capacity 140 tons each)
|Road:||215 km purpose built paved road|
Trucks and Temporary Camp
Mongolia's Transport Sector
- The trucking industry is broadly anticipated to expand over the next decade
as trucking is the only viable short and medium term transportation solution
- One of the fastest growing sectors in parallel with Mongolia's accelerating
- Recorded CAGR of 13% over the last decade
- Mongolian logistics industry generated USD564million in 2011
or 11% of GDP in 2011
- One of the largest countries (19th in the world and 2nd largest landlocked)
- Over 14 new “world class” coking coal mines will be opened in the next few years
(currently only 5 export to China)
- Shares a 4,700 km border with China
- ‘Economist Intelligence Unit’ expects the country to have the world’s
2nd fastest-growing economy in 2012
Nova Resources Limited (“Nova Resources”) has invested indirectly in a logistic services business. The business is being conducted by ZHCH Mining LLC.
ZHCH is 100% owned by Salins Limited. Salins Limited is 100% owned by Nova Mongolia Pte Ltd (“Nova Mongolia”). Nova Mongolia is 100% owned by Nova Resources.
ZHCH Mining LLC has entered into a coal transportation contract with Transgobi LLC (which office is at 15, Central Tower, Sukhbaatar Square-2, Sukhbaatar District, 8th khoroo, Ulaanbaatar 14200, Mongolia) to transport coal from its Ukhaa Khudag coal mine, located at Tsogttsetsii soum, Umnugobi aimag, Mongolia to Tsagaan Khad, Mongolia (the “Contract”).
The services pursuant to the Contract will now commence on 15 May 2012. The Board of Directors are informed that the management of ZHCH expects that if the Contract is executed efficiently and management performs, ZHCH's annual revenue could be about US$30,000,000.00 (about GBP19,000,000) and annual net profit could be about US$8,000,000 (about GBP5,000,000).
Transgobi LLC is 100% owned by Energy Resources LLC (“ER”). ER is a coking coal producer and exporter in Mongolia; which owns and operates the Ukhaa Khudag high-quality coking coal deposit located within the Tavan Tolgoi coal formation in the South Gobi province of Mongolia. ER is considered as one of the largest coking coal producers in Mongolia. More information on ER and Transgobi may be found at http://www.energyresources.mn/ and http://www.energyresources.mn/about/show/id/8.