source: Mining weekly

Poor economic data and falling commodity prices have caused concerns for investors in the Australian markets. Both the economies of Mongolia and Australia rely heavily on their mineral resources and the mining sector.  Many Mongolian firms, such as Aspire Mining are listed on the Australian Securities Exchange (ASX).

The Western Australian Index dropped 11.9 percent in September, to close at AUD 148.6 billion. Some of Australia's major resource companies may have been undersold.

“We are now experiencing the effect of prolonged uncertainty and fear within the markets,” said Keith Jones, a managing partner at the advisory firm Deloitte.

Almost all commodity prices surveyed during the month also fell. Base metals were the most heavily affected because of growing concerns of a double-dip recession. Copper, lead, and nickel fell 23.9 percent, 22.2 percent, and 20.3 percent respectively. Precious metals also fell with gold prices down 10.9 percent, silver down 28.1 percent, and palladium down 22.4 percent and platinum down 17.6 percent. Bulk commodities iron ore and coal remained relatively stable with iron ore down 5 percent and coal up 2 percent in the month.

Banpu Minerals' acquisition of Hunnu Coal was one example of how resource firm deals remain prominent. Last month Hunnu announced a bid from Thailand's leading energy provider, Banpu Minerals to purchase all Hunnu shares that the company does not already own for AUD 1.80 per share. The price represented a significant premium to trading levels at that date and saw Hunnu share prices spike 25 percent in one day from AUD 1.38 to AUD 1.73. Hunnu closed that month with a market capitalization of AUD 368 million, up AUD 88 million from the previous month.