The document is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia. Some of the key points covered include:
- Mongolia Mining Corp agreeing to acquire QGX Coal Ltd in the largest acquisition deal in Mongolia worth $464 million.
- Prophecy Resources plans to build the Chandgana power plant in Mongolia with an initial capacity of 600MW and ultimately 4,200MW.
- Erdene Resource Development receiving a mining license for its Zuun Mod molybdenum-copper project.
- Oyu Tolgoi, Mongolia's largest mine, is expected to contribute significantly to economic growth over the next decade according to a new
The document summarizes recent news from Mongolia across various sectors including business, economy, politics, and tourism. Some key highlights include:
1) Major mining projects in Mongolia like Oyu Tolgoi and Tavan Tolgoi have started development and operations, while several exploration companies are reporting promising early results.
2) Mongolia is taking steps to develop its oil refining capacity to reduce dependence on imports by starting construction on several new refineries.
3) The tourism industry in Mongolia is seeing a shift towards more luxury camping experiences offering travelers a chance to live like nomads in remote areas of the country.
4) Russia has launched a new tourist route on the Trans-
The document summarizes business and economic news from Mongolia reported in Issue 180 of the Business Council of Mongolia NewsWire dated August 12, 2011. Several mining companies had positive developments, including SouthGobi achieving record sales and revenue from coal mining. Voyager Resources announced a major new copper discovery. Guildford Coal acquired additional land and aims to begin coal production within a year. Other news included MEC completing a road to transport coal to China, Petro Matad drilling exploration wells, and Shivee Ovoo building Mongolia's first coal drying factory. The economy news discussed proposals for the Tavan Tolgoi coal project, China raising railway freight rates, and the first new listing on the Mongolian stock
The document is a newsletter from the Business Council of Mongolia covering business and economic news in Mongolia. Some of the key highlights include:
- Prophecy Coal Corp acquiring additional coal exploration licenses adjacent to its Chandgana project to consolidate the coal basin.
- SouthGobi Resources beginning construction of a new paved highway to transport coal from its Ovoot Tolgoi mine to the Chinese border.
- Sojitz Corp. of Japan aiming to more than triple its sales of Mongolian coal to China within three years.
- EzNis Airways receiving a new Boeing 737 aircraft, expanding its international flight routes from Mongolia.
- Cockpit4u Aviation Service becoming the
The document summarizes business and economic news from Mongolia. It discusses ongoing negotiations between Mongolia and Rio Tinto over the Oyu Tolgoi mining project. It also mentions that Aspire Mining has identified potential savings of $200 million by selecting a new route for a proposed rail line. Additionally, it provides updates on various mining and infrastructure projects throughout Mongolia.
The document summarizes news from the Business Council of Mongolia newsletter. It discusses several Mongolian mining and business stories:
1) Mongolia Energy Corporation is preparing its Khushuut coal mine to begin operations in October, with an estimated 85 million tons of reserves.
2) Khan Resources is appealing a court decision to invalidate its mining licenses, saying the international community is watching the case's progress.
3) Petro Matad has discovered hydrocarbons at its first well in Mongolia, de-risking its entire block which contains 14 more prospects.
4) Hunnu Coal has begun trial mining at its Unst Khudag coal mine to obtain samples and data for
This document provides a summary of business, economic, and political news from Mongolia in its Business Council of Mongolia NewsWire newsletter. It highlights several major mining and infrastructure projects in Mongolia, including progress on the Oyu Tolgoi mine and issues around negotiations between Ivanhoe Mines and Rio Tinto. It also discusses Mongolia's economy, including developments regarding the Tavan Tolgoi coal mine, inflation, bond sales, and relations with China. On the political front, it mentions meetings between Mongolian and Chinese leaders and parliamentary discussions around corruption issues.
The document provides a summary of business, economic, and political news from Mongolia based on a newsletter from the Business Council of Mongolia. Some of the key highlights include:
- Drill results from Erdene Resource Development Corp's copper-gold project in Mongolia confirmed continuity of the mineralized zone.
- Mongolia Mining Corporation selected NIC and Uniservice Solution to supply fuel and provide support services for its operations.
- Mongolia Energy Corporation has sales agreements in place for 2 million tons of coking coal from its Khushuut project.
- Several mining companies discussed exploration and drilling results from their projects in Mongolia.
The document is a newsletter from the Business Council of Mongolia providing news highlights from July 8, 2011. It includes over 50 brief news items covering business, economic, and political news in Mongolia. Some of the top business stories include Centerra Gold announcing a significant new discovery in northeast Mongolia, Oyu Tolgoi beginning work on a new vocational training center, and Sedgman receiving a $24 million contract at the Ukhaa Khudag coal mine.
The document summarizes recent news from Mongolia across various sectors including business, economy, politics, and tourism. Some key highlights include:
1) Major mining projects in Mongolia like Oyu Tolgoi and Tavan Tolgoi have started development and operations, while several exploration companies are reporting promising early results.
2) Mongolia is taking steps to develop its oil refining capacity to reduce dependence on imports by starting construction on several new refineries.
3) The tourism industry in Mongolia is seeing a shift towards more luxury camping experiences offering travelers a chance to live like nomads in remote areas of the country.
4) Russia has launched a new tourist route on the Trans-
The document summarizes business and economic news from Mongolia reported in Issue 180 of the Business Council of Mongolia NewsWire dated August 12, 2011. Several mining companies had positive developments, including SouthGobi achieving record sales and revenue from coal mining. Voyager Resources announced a major new copper discovery. Guildford Coal acquired additional land and aims to begin coal production within a year. Other news included MEC completing a road to transport coal to China, Petro Matad drilling exploration wells, and Shivee Ovoo building Mongolia's first coal drying factory. The economy news discussed proposals for the Tavan Tolgoi coal project, China raising railway freight rates, and the first new listing on the Mongolian stock
The document is a newsletter from the Business Council of Mongolia covering business and economic news in Mongolia. Some of the key highlights include:
- Prophecy Coal Corp acquiring additional coal exploration licenses adjacent to its Chandgana project to consolidate the coal basin.
- SouthGobi Resources beginning construction of a new paved highway to transport coal from its Ovoot Tolgoi mine to the Chinese border.
- Sojitz Corp. of Japan aiming to more than triple its sales of Mongolian coal to China within three years.
- EzNis Airways receiving a new Boeing 737 aircraft, expanding its international flight routes from Mongolia.
- Cockpit4u Aviation Service becoming the
The document summarizes business and economic news from Mongolia. It discusses ongoing negotiations between Mongolia and Rio Tinto over the Oyu Tolgoi mining project. It also mentions that Aspire Mining has identified potential savings of $200 million by selecting a new route for a proposed rail line. Additionally, it provides updates on various mining and infrastructure projects throughout Mongolia.
The document summarizes news from the Business Council of Mongolia newsletter. It discusses several Mongolian mining and business stories:
1) Mongolia Energy Corporation is preparing its Khushuut coal mine to begin operations in October, with an estimated 85 million tons of reserves.
2) Khan Resources is appealing a court decision to invalidate its mining licenses, saying the international community is watching the case's progress.
3) Petro Matad has discovered hydrocarbons at its first well in Mongolia, de-risking its entire block which contains 14 more prospects.
4) Hunnu Coal has begun trial mining at its Unst Khudag coal mine to obtain samples and data for
This document provides a summary of business, economic, and political news from Mongolia in its Business Council of Mongolia NewsWire newsletter. It highlights several major mining and infrastructure projects in Mongolia, including progress on the Oyu Tolgoi mine and issues around negotiations between Ivanhoe Mines and Rio Tinto. It also discusses Mongolia's economy, including developments regarding the Tavan Tolgoi coal mine, inflation, bond sales, and relations with China. On the political front, it mentions meetings between Mongolian and Chinese leaders and parliamentary discussions around corruption issues.
The document provides a summary of business, economic, and political news from Mongolia based on a newsletter from the Business Council of Mongolia. Some of the key highlights include:
- Drill results from Erdene Resource Development Corp's copper-gold project in Mongolia confirmed continuity of the mineralized zone.
- Mongolia Mining Corporation selected NIC and Uniservice Solution to supply fuel and provide support services for its operations.
- Mongolia Energy Corporation has sales agreements in place for 2 million tons of coking coal from its Khushuut project.
- Several mining companies discussed exploration and drilling results from their projects in Mongolia.
The document is a newsletter from the Business Council of Mongolia providing news highlights from July 8, 2011. It includes over 50 brief news items covering business, economic, and political news in Mongolia. Some of the top business stories include Centerra Gold announcing a significant new discovery in northeast Mongolia, Oyu Tolgoi beginning work on a new vocational training center, and Sedgman receiving a $24 million contract at the Ukhaa Khudag coal mine.
The document is a newsletter from the Business Council of Mongolia that provides news highlights on business, economic, and political issues in Mongolia. It summarizes that Rio Tinto missed a financing deadline for expanding the Oyu Tolgoi copper mine in Mongolia, potentially delaying the project until 2015. It also reports that China's Shenhua Group will invest in a cross-border rail link to transport coal from Mongolia to China, and that South Korea's Posco is preparing to build a synthetic natural gas plant in Mongolia. Additionally, it outlines several other business deals and economic indicators in Mongolia.
The document is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia. Some of the key stories covered include:
- Rio Tinto securing a power deal for its Oyu Tolgoi copper mine in Mongolia ahead of a September 30th deadline.
- Turquoise Hill Resources working to resolve a tax dispute with Mongolia's government before funding commitments expire for the underground expansion of the Oyu Tolgoi mine.
- SouthGobi Resources reporting a narrower loss in Q2 2014 due to higher coal sales volumes, despite significantly lower coal prices.
The document summarizes news from the Business Council of Mongolia newsletter. It discusses several stories on business and economic news in Mongolia, including:
1) Peabody Energy expressing interest in acquiring a stake in Mongolia's Tavan Tolgoi coal deposit to expand its operations in China.
2) Erdenes-TT again delaying its planned IPO in Hong Kong, London, and Mongolia due to weak coal demand and prices.
3) Oyu Tolgoi grappling with water scarcity in the Gobi desert for its mine operations while facing skepticism about its water usage from local herders and NGOs.
The document is a newsletter from the Business Council of Mongolia providing news and updates on business and economic matters in Mongolia. It announces that the newsletter will be on hiatus for the Tsagaan Sar holiday and then resume on March 2nd. It then provides highlights on various business, economic and political stories in Mongolia, including updates on mining companies, infrastructure developments, government policies and meetings/events from the Business Council of Mongolia.
The document summarizes the key news highlights from Issue 185 of the Business Council of Mongolia NewsWire dated September 16, 2011. Some of the top business stories include TT's IPO being delayed until early 2012, Hunnu Coal agreeing to be acquired by Banpu for $477 million, and the Oyu Tolgoi mine expected to generate one-third of Mongolia's economy by 2020. The "Discover Mongolia" conference delivered investment opportunities in Mongolia's mining sector to over 1,000 investors. Government officials discussed plans to expand Mongolia's infrastructure including roads, railways, and power stations. A panel at the conference addressed issues like mining taxation, licensing, and activities of illegal artisanal miners.
The document summarizes business and economic news from Mongolia. It reports that the Mongolian Prime Minister said any involvement of Chinese company Chinalco in the Oyu Tolgoi mining project would need government approval. It also reports that Eznis Airways plans to buy two new jets to meet growing demand and that TNK-BP signed an agreement to potentially deliver oil products to Mongolia. Additionally, it provides positive drilling results from Erdene Resource Development Corp's copper and molybdenum project and notes that Xstrata officials met with the Prime Minister to discuss their Australian coal mining operations.
The document summarizes business and economic news from Mongolia. Key points include:
- Ivanhoe Mines is confident its power deal with China will come through in time for its 2013 copper production target.
- The Mongolian government established a state-owned firm, Erdenes Oyutolgoi, to manage its interest in the Oyu Tolgoi mine.
- Xanadu Mines reported total coal resources of 497 million tons across its projects after a new resource estimate.
- The Coal Mongolia conference will be held in Ulaanbaatar to attract investments into Mongolia's coal sector.
- GE will provide technical training to support Mongolia's Salkhit wind farm
The document summarizes business and economic news from Mongolia. It reports that Rio Tinto announced 1,700 redundancies at its Mongolian operations due to delays in underground expansion of the Oyu Tolgoi copper mine. Mongolia wants this expansion funded through cash flow from the mine until disputes over costs are resolved. Mongolia is also studying an IPO of its 34% stake in Oyu Tolgoi to give citizens ownership and help fund the expansion. Additionally, Prophecy Coal signed coal export deals to restart shipments to Russia.
The document summarizes business, economic, and political news from Mongolia reported in Issue 125 of the Business Council of Mongolia NewsWire dated July 2, 2010. Some of the key developments included:
- Rio Tinto raising its ownership in Ivanhoe Mines, which is developing Mongolia's Oyu Tolgoi mine, to 29.6% by exercising warrants ahead of schedule.
- SouthGobi Resources beginning construction of a coal handling facility at its Ovoot Tolgoi mine to add value by processing and blending coal.
- Petro Matad spudding its first exploration well in Mongolia, a key test for the company, after delays due to weather and disease outbreaks.
The document is a newsletter from the Business Council of Mongolia providing news highlights on business and economic developments in Mongolia. Some of the key points mentioned include Hunnu Coal doubling its thermal coal resource estimates, SouthGobi receiving a mining license for the Soumber Deposit, and Mongolia Growth Group achieving milestones by raising funds and obtaining an insurance license. For the Tavan Tolgoi coal deposit, the document reports that China Shenhua Energy, a Russian-Mongolian group, and Peabody Energy have been selected to develop the project, pending parliamentary ratification.
The document summarizes business and economic news from Mongolia reported in Issue 242 of the Business Council of Mongolia NewsWire dated October 5, 2012. Key highlights include:
- Erdenes-TT beginning exploration at West Tsankhi coal mine and Oyu Tolgoi nearing completion of an international airport.
- Chalco abandoning plans to purchase a 30% stake in Winsway Coking Coal and Gobi Energy halting drilling at Ger Chuluu D1 well without discovering hydrocarbons.
- Newera intersecting 26-meter long coal seams at its Shanagan East project and FeOre receiving a mining license for its Dartsagt iron-ore project.
This document is a newsletter from the Business Council of Mongolia covering various business news highlights from Mongolia. Some of the key stories covered include:
- SouthGobi Resources filing a notice of investment dispute against the Mongolian government over failure to approve mining licenses.
- Exploration work continuing for several mining companies, including Entree Gold expanding their Argo Zone deposit and Altan Rio beginning drilling at their Chandman-Yol project.
- China National Nuclear Corporation receiving approval for their Gurvanbulag uranium mine and a consortium being selected to develop the country's Power Plant No. 5.
- Several companies' stock prices falling due to declining coal demand and prices from China.
This document summarizes news from the Business Council of Mongolia newsletter for August 2, 2013. Major stories include Rio Tinto delaying underground development at the Oyu Tolgoi mine until it receives parliamentary approval for project financing. The majority shareholder of Savings Bank blamed receiving bad information about the Olon Ovoot mine for defaulting on loans. Aspire Mining's Ovoot coal mine resource estimates were upgraded, increasing reserves by 10.3%. Tests showed blending opportunities for coal from Ovoot and the Tavan Tolgoi mine.
The document summarizes business news from Mongolia. It discusses several topics:
- Transport firms halting coal exports from Tavan Tolgoi due to unpaid fees. Erdenes-TT seeking a $400-500 million government loan to repay debt and fund infrastructure projects.
- Rio Tinto inviting bankers to arrange $4 billion in project financing for the Oyu Tolgoi copper-gold mine.
- Exploration companies reporting positive drilling results at iron ore projects in Mongolia, confirming wide zones of mineralization.
- Other news items on mining, coal shipping, airline routes, and proposed industry consolidation.
The document summarizes business and economic news from Mongolia. Key points include:
- The Prime Minister said parliamentary approval is not needed for Rio Tinto's $4 billion financing package for the Oyu Tolgoi underground mine expansion.
- Rio Tinto agreed to provide Turquoise Hill, the majority owner of Oyu Tolgoi, with $600 million in bridge funding and committed to underwriting a rights offering if needed.
- Local residents announced protests against uranium exploration by French company Areva in southern Mongolia, claiming it has caused livestock deaths and health issues.
- TDB Capital launched an online trading platform, becoming the first in Mongolia to offer internet-based securities trading.
The document summarizes news from the Business Council of Mongolia newsletter. It includes the following highlights:
- President Ts. Elbegdorj set a 2012 deadline to select companies to develop part of Mongolia's Tavan Tolgoi coal field, seeking to resolve a dispute between Chinese, Russian, and American bidders. Developing this field could bring billions of dollars in investment and royalties.
- Ivanhoe Mines will change its name to Turquoise Hill Resources to reflect its ownership in the giant Oyu Tolgoi copper and gold mine in Mongolia.
- Rio Tinto's Oyu Tolgoi mine in Mongolia is expected to begin copper production this year and
The document is a newsletter from the Business Council of Mongolia covering business, economic, and political news highlights from Mongolia. Some of the key business stories covered include: Mongolian miners starting operations at the Tavan Tolgoi coal mine which could impact international bidding for rights to the mine; the launch of exports from Mongolia's Oyu Tolgoi copper mine being delayed pending final government authorization; and a USD 122 million wind farm in Mongolia scheduled to begin operations in June 2013. Economic highlights include the payment of interest for Mongolia's first Chinggis bond and a strengthening currency. Political stories note Tony Blair advising Mongolian companies and Mongolia joining an international environment group.
The document is a newsletter from the Business Council of Mongolia that provides news highlights from June 4, 2010. It covers business, economic, and political news items. The business section notes that the Mongolian minister wants to import Chinese labor for the Oyu Tolgoi project due to a lack of qualified local workers. It also discusses several mining projects and deals, including Shenhua reiterating interest in the Tavan Tolgoi coal mine and MEC offering a contract to Leighton Asia for coal mining in western Mongolia. The economic section covers topics like the prime minister stressing the need for better corporate governance and China scaling back factory production growth. The politics section mentions China pledging $500 million during
The document is a newsletter from the Business Council of Mongolia that provides news highlights from Mongolia in business, economy, and politics. Some of the key business highlights include: Oyu Tolgoi is expected to begin copper and gold production in August 2012; SouthGobi Resources updated coal reserves at Ovoot Tolgoi; and Winsway Coking Coal plans to issue $500 million in senior notes to finance investments including in Mongolia. Economic highlights include a 30% increase in minimum wages and plans for Mongolian citizens to receive shares in Erdenes MGL. Political highlights discuss Mongolia considering nuclear power and investigations related to riots in July 2010.
- The document is a newsletter from the Business Council of Mongolia covering business, economic, and political news highlights from Mongolia.
- In business news, there were further delays to selecting a consortium for the West Tsankhi coal project. Erdenes MGL appointed a new executive director, and several mining and energy companies had news regarding projects and operations in Mongolia.
- Economic news included Mongolia completing a $1.5 billion international bond offering, updates on budgets, banking, welfare, housing, energy, poverty, infrastructure, and Mongolia's relationship with China on copper.
- Political news covered parliamentary discussions on foreign investment, elections, constitutional issues, banking regulations, and diplomatic meetings.
The document summarizes business, economic and political news from Mongolia reported in the Business Council of Mongolia NewsWire issue 216 dated April 6, 2012. On the business front, it reports that Chalco will buy a controlling stake in SouthGobi Resources and that Trafigura purchased a 5% stake in Golomt Bank. It also discusses Prophecy Coal's plans to raise funds to build a power plant, exploration activities by companies like Black Ridge and Guildford Coal, and operations by companies like PetroChina and CGBEM. On the economic side, it notes Mongolia's relations with countries like South Korea, Germany and the US. And on the politics side, it provides brief updates on legislation being considered
This document discusses plans for the Shivee Ovoo intermodal terminal project in Mongolia. It begins with background on Mongolia's mining-driven economic growth and potential as a coal exporter. It then discusses the current lack of transportation infrastructure and established supply chains as problems. The proposed solution is to construct an intermodal terminal to facilitate coal, mineral and goods transportation for mines. Analysis of demand, location, design concepts, costs, financing, and projected profits are provided. The terminal aims to capture 10% of Mongolia's planned increased coal exports and meet demand from new industries. Risk analysis suggests the investment would be financially feasible.
The document is a newsletter from the Business Council of Mongolia that provides news highlights on business, economic, and political issues in Mongolia. It summarizes that Rio Tinto missed a financing deadline for expanding the Oyu Tolgoi copper mine in Mongolia, potentially delaying the project until 2015. It also reports that China's Shenhua Group will invest in a cross-border rail link to transport coal from Mongolia to China, and that South Korea's Posco is preparing to build a synthetic natural gas plant in Mongolia. Additionally, it outlines several other business deals and economic indicators in Mongolia.
The document is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia. Some of the key stories covered include:
- Rio Tinto securing a power deal for its Oyu Tolgoi copper mine in Mongolia ahead of a September 30th deadline.
- Turquoise Hill Resources working to resolve a tax dispute with Mongolia's government before funding commitments expire for the underground expansion of the Oyu Tolgoi mine.
- SouthGobi Resources reporting a narrower loss in Q2 2014 due to higher coal sales volumes, despite significantly lower coal prices.
The document summarizes news from the Business Council of Mongolia newsletter. It discusses several stories on business and economic news in Mongolia, including:
1) Peabody Energy expressing interest in acquiring a stake in Mongolia's Tavan Tolgoi coal deposit to expand its operations in China.
2) Erdenes-TT again delaying its planned IPO in Hong Kong, London, and Mongolia due to weak coal demand and prices.
3) Oyu Tolgoi grappling with water scarcity in the Gobi desert for its mine operations while facing skepticism about its water usage from local herders and NGOs.
The document is a newsletter from the Business Council of Mongolia providing news and updates on business and economic matters in Mongolia. It announces that the newsletter will be on hiatus for the Tsagaan Sar holiday and then resume on March 2nd. It then provides highlights on various business, economic and political stories in Mongolia, including updates on mining companies, infrastructure developments, government policies and meetings/events from the Business Council of Mongolia.
The document summarizes the key news highlights from Issue 185 of the Business Council of Mongolia NewsWire dated September 16, 2011. Some of the top business stories include TT's IPO being delayed until early 2012, Hunnu Coal agreeing to be acquired by Banpu for $477 million, and the Oyu Tolgoi mine expected to generate one-third of Mongolia's economy by 2020. The "Discover Mongolia" conference delivered investment opportunities in Mongolia's mining sector to over 1,000 investors. Government officials discussed plans to expand Mongolia's infrastructure including roads, railways, and power stations. A panel at the conference addressed issues like mining taxation, licensing, and activities of illegal artisanal miners.
The document summarizes business and economic news from Mongolia. It reports that the Mongolian Prime Minister said any involvement of Chinese company Chinalco in the Oyu Tolgoi mining project would need government approval. It also reports that Eznis Airways plans to buy two new jets to meet growing demand and that TNK-BP signed an agreement to potentially deliver oil products to Mongolia. Additionally, it provides positive drilling results from Erdene Resource Development Corp's copper and molybdenum project and notes that Xstrata officials met with the Prime Minister to discuss their Australian coal mining operations.
The document summarizes business and economic news from Mongolia. Key points include:
- Ivanhoe Mines is confident its power deal with China will come through in time for its 2013 copper production target.
- The Mongolian government established a state-owned firm, Erdenes Oyutolgoi, to manage its interest in the Oyu Tolgoi mine.
- Xanadu Mines reported total coal resources of 497 million tons across its projects after a new resource estimate.
- The Coal Mongolia conference will be held in Ulaanbaatar to attract investments into Mongolia's coal sector.
- GE will provide technical training to support Mongolia's Salkhit wind farm
The document summarizes business and economic news from Mongolia. It reports that Rio Tinto announced 1,700 redundancies at its Mongolian operations due to delays in underground expansion of the Oyu Tolgoi copper mine. Mongolia wants this expansion funded through cash flow from the mine until disputes over costs are resolved. Mongolia is also studying an IPO of its 34% stake in Oyu Tolgoi to give citizens ownership and help fund the expansion. Additionally, Prophecy Coal signed coal export deals to restart shipments to Russia.
The document summarizes business, economic, and political news from Mongolia reported in Issue 125 of the Business Council of Mongolia NewsWire dated July 2, 2010. Some of the key developments included:
- Rio Tinto raising its ownership in Ivanhoe Mines, which is developing Mongolia's Oyu Tolgoi mine, to 29.6% by exercising warrants ahead of schedule.
- SouthGobi Resources beginning construction of a coal handling facility at its Ovoot Tolgoi mine to add value by processing and blending coal.
- Petro Matad spudding its first exploration well in Mongolia, a key test for the company, after delays due to weather and disease outbreaks.
The document is a newsletter from the Business Council of Mongolia providing news highlights on business and economic developments in Mongolia. Some of the key points mentioned include Hunnu Coal doubling its thermal coal resource estimates, SouthGobi receiving a mining license for the Soumber Deposit, and Mongolia Growth Group achieving milestones by raising funds and obtaining an insurance license. For the Tavan Tolgoi coal deposit, the document reports that China Shenhua Energy, a Russian-Mongolian group, and Peabody Energy have been selected to develop the project, pending parliamentary ratification.
The document summarizes business and economic news from Mongolia reported in Issue 242 of the Business Council of Mongolia NewsWire dated October 5, 2012. Key highlights include:
- Erdenes-TT beginning exploration at West Tsankhi coal mine and Oyu Tolgoi nearing completion of an international airport.
- Chalco abandoning plans to purchase a 30% stake in Winsway Coking Coal and Gobi Energy halting drilling at Ger Chuluu D1 well without discovering hydrocarbons.
- Newera intersecting 26-meter long coal seams at its Shanagan East project and FeOre receiving a mining license for its Dartsagt iron-ore project.
This document is a newsletter from the Business Council of Mongolia covering various business news highlights from Mongolia. Some of the key stories covered include:
- SouthGobi Resources filing a notice of investment dispute against the Mongolian government over failure to approve mining licenses.
- Exploration work continuing for several mining companies, including Entree Gold expanding their Argo Zone deposit and Altan Rio beginning drilling at their Chandman-Yol project.
- China National Nuclear Corporation receiving approval for their Gurvanbulag uranium mine and a consortium being selected to develop the country's Power Plant No. 5.
- Several companies' stock prices falling due to declining coal demand and prices from China.
This document summarizes news from the Business Council of Mongolia newsletter for August 2, 2013. Major stories include Rio Tinto delaying underground development at the Oyu Tolgoi mine until it receives parliamentary approval for project financing. The majority shareholder of Savings Bank blamed receiving bad information about the Olon Ovoot mine for defaulting on loans. Aspire Mining's Ovoot coal mine resource estimates were upgraded, increasing reserves by 10.3%. Tests showed blending opportunities for coal from Ovoot and the Tavan Tolgoi mine.
The document summarizes business news from Mongolia. It discusses several topics:
- Transport firms halting coal exports from Tavan Tolgoi due to unpaid fees. Erdenes-TT seeking a $400-500 million government loan to repay debt and fund infrastructure projects.
- Rio Tinto inviting bankers to arrange $4 billion in project financing for the Oyu Tolgoi copper-gold mine.
- Exploration companies reporting positive drilling results at iron ore projects in Mongolia, confirming wide zones of mineralization.
- Other news items on mining, coal shipping, airline routes, and proposed industry consolidation.
The document summarizes business and economic news from Mongolia. Key points include:
- The Prime Minister said parliamentary approval is not needed for Rio Tinto's $4 billion financing package for the Oyu Tolgoi underground mine expansion.
- Rio Tinto agreed to provide Turquoise Hill, the majority owner of Oyu Tolgoi, with $600 million in bridge funding and committed to underwriting a rights offering if needed.
- Local residents announced protests against uranium exploration by French company Areva in southern Mongolia, claiming it has caused livestock deaths and health issues.
- TDB Capital launched an online trading platform, becoming the first in Mongolia to offer internet-based securities trading.
The document summarizes news from the Business Council of Mongolia newsletter. It includes the following highlights:
- President Ts. Elbegdorj set a 2012 deadline to select companies to develop part of Mongolia's Tavan Tolgoi coal field, seeking to resolve a dispute between Chinese, Russian, and American bidders. Developing this field could bring billions of dollars in investment and royalties.
- Ivanhoe Mines will change its name to Turquoise Hill Resources to reflect its ownership in the giant Oyu Tolgoi copper and gold mine in Mongolia.
- Rio Tinto's Oyu Tolgoi mine in Mongolia is expected to begin copper production this year and
The document is a newsletter from the Business Council of Mongolia covering business, economic, and political news highlights from Mongolia. Some of the key business stories covered include: Mongolian miners starting operations at the Tavan Tolgoi coal mine which could impact international bidding for rights to the mine; the launch of exports from Mongolia's Oyu Tolgoi copper mine being delayed pending final government authorization; and a USD 122 million wind farm in Mongolia scheduled to begin operations in June 2013. Economic highlights include the payment of interest for Mongolia's first Chinggis bond and a strengthening currency. Political stories note Tony Blair advising Mongolian companies and Mongolia joining an international environment group.
The document is a newsletter from the Business Council of Mongolia that provides news highlights from June 4, 2010. It covers business, economic, and political news items. The business section notes that the Mongolian minister wants to import Chinese labor for the Oyu Tolgoi project due to a lack of qualified local workers. It also discusses several mining projects and deals, including Shenhua reiterating interest in the Tavan Tolgoi coal mine and MEC offering a contract to Leighton Asia for coal mining in western Mongolia. The economic section covers topics like the prime minister stressing the need for better corporate governance and China scaling back factory production growth. The politics section mentions China pledging $500 million during
The document is a newsletter from the Business Council of Mongolia that provides news highlights from Mongolia in business, economy, and politics. Some of the key business highlights include: Oyu Tolgoi is expected to begin copper and gold production in August 2012; SouthGobi Resources updated coal reserves at Ovoot Tolgoi; and Winsway Coking Coal plans to issue $500 million in senior notes to finance investments including in Mongolia. Economic highlights include a 30% increase in minimum wages and plans for Mongolian citizens to receive shares in Erdenes MGL. Political highlights discuss Mongolia considering nuclear power and investigations related to riots in July 2010.
- The document is a newsletter from the Business Council of Mongolia covering business, economic, and political news highlights from Mongolia.
- In business news, there were further delays to selecting a consortium for the West Tsankhi coal project. Erdenes MGL appointed a new executive director, and several mining and energy companies had news regarding projects and operations in Mongolia.
- Economic news included Mongolia completing a $1.5 billion international bond offering, updates on budgets, banking, welfare, housing, energy, poverty, infrastructure, and Mongolia's relationship with China on copper.
- Political news covered parliamentary discussions on foreign investment, elections, constitutional issues, banking regulations, and diplomatic meetings.
The document summarizes business, economic and political news from Mongolia reported in the Business Council of Mongolia NewsWire issue 216 dated April 6, 2012. On the business front, it reports that Chalco will buy a controlling stake in SouthGobi Resources and that Trafigura purchased a 5% stake in Golomt Bank. It also discusses Prophecy Coal's plans to raise funds to build a power plant, exploration activities by companies like Black Ridge and Guildford Coal, and operations by companies like PetroChina and CGBEM. On the economic side, it notes Mongolia's relations with countries like South Korea, Germany and the US. And on the politics side, it provides brief updates on legislation being considered
This document discusses plans for the Shivee Ovoo intermodal terminal project in Mongolia. It begins with background on Mongolia's mining-driven economic growth and potential as a coal exporter. It then discusses the current lack of transportation infrastructure and established supply chains as problems. The proposed solution is to construct an intermodal terminal to facilitate coal, mineral and goods transportation for mines. Analysis of demand, location, design concepts, costs, financing, and projected profits are provided. The terminal aims to capture 10% of Mongolia's planned increased coal exports and meet demand from new industries. Risk analysis suggests the investment would be financially feasible.
This document provides an overview of risk management and insurance solutions for mining industries in Mongolia. It discusses some of the unique risks faced by mines, including natural hazards like floods, earthquakes, and tailings dam failures. The presentation outlines the type of detailed company and risk information that underwriters require to properly evaluate mining risks and design insurance coverage. This includes details on mining methods, commodities produced, locations, values, risk management practices, and loss history. The goal is to develop adequate and sustainable risk transfer solutions for mining clients. Popular loss exposures discussed include tailings dam failures and floods.
The document discusses listing Erdenes Tavan Tolgoi (ETT) on the Mongolian Stock Exchange (MSE) as an alternative to an international IPO. Listing ETT on the MSE would be significantly less expensive, avoiding the $10 million cost of an international IPO. It would also help develop the local capital market by increasing the MSE's market capitalization and trading volumes. This option is lower risk than attempting an international IPO during current market conditions and negative sentiment towards Mongolian assets. Listing ETT domestically could serve as an example for future privatizations and help distribute shares to Mongolian citizens as promised.
The document summarizes news from the Business Council of Mongolia newsletter. It includes the following key points:
- Rio Tinto warns that renegotiating Mongolia's investment agreement for the Oyu Tolgoi project risks damaging the country's reputation with foreign investors.
- Ivanhoe Mines and Rio Tinto have an uneasy relationship as partners in the Oyu Tolgoi project, made more difficult by disputes between the companies and potential government interference.
- Petro Matad receives encouraging initial results from its Davsan Tolgoi 4 exploration well in Mongolia, indicating a high quality oil without water.
1) The document summarizes plans by Sharyn Gol JSC to significantly expand its coal mining operations in Mongolia over the next several years.
2) It currently produces 0.5 million tonnes per year but has outlined plans to ramp up production to 1 million tonnes initially and eventually to 2.5 million tonnes through opening a new pit and expanding existing operations.
3) Sharyn Gol has a large JORC-compliant coal resource base of over 374 million tonnes that can support expanded mining for over 100 years at the planned higher production rates.
The document provides a summary of business and economic news from Mongolia. Key highlights include:
- Prophecy Coal signing an agreement with a major power company to develop the Chandgana Power Plant.
- Wagner Asia complaining that police in Ulaanbaatar are unlawfully stopping trucks in the city.
- Petrovis facing potential fines or loss of permits for raising gas prices.
- Turquoise Hill reporting a large increase in quarterly income primarily due to gains in derivative values.
- Kincora raising $4.6 million through a private equity placement to fund exploration at its Bronze Fox project.
The American University of Mongolia (AUM) was founded in 2011 by Mongolian and American businessmen, educators, and community leaders to bring American-style higher education to Mongolia. AUM's presentation to the Business Council of Mongolia outlines its mission to integrate liberal education into its programs to teach skills like communication, cultural sensitivity, and its current offerings including an English language institute, executive education programs, and a partnership with Indiana University's business school. AUM is seeking support from the council for its planned expansion of academic programs and new facilities.
The document provides a summary of business and economic news from Mongolia in Issue 166 dated May 6, 2011 of the Business Council of Mongolia NewsWire. It highlights several stories including GE opening an office in Mongolia, analysts downgrading shares of Ivanhoe Mines, Sharyn Gol announcing plans for expansion and strategic review, and AIDD winning a large drilling contract in Kazakhstan. It also summarizes economic reports and statistics as well as political news briefs from Mongolia.
The document summarizes business and economic news from Mongolia. It discusses several topics:
1) Three Mongolian banks merging to combat fiscal crisis, with Zoos Bank making an official request to merge with two others.
2) Peabody Energy signing an agreement with China's GreenGen project to develop a clean coal project in China.
3) Mongolia Energy Corp signing an agreement to produce coal at a mine in Mongolia.
The document provides a summary of business, economic, and political news from Mongolia based on a newsletter from the Business Council of Mongolia dated October 23, 2009. Some of the key highlights include Entrée Gold supporting the Oyu Tolgoi investment agreement, Mongolia Energy announcing coal resources at its Khushuut mine, and Rio Tinto posting a record 12% increase in iron ore output for the third quarter. The document also announces an upcoming meeting for BCM members to discuss topics such as the mining and healthcare sectors in Mongolia.
This document provides a summary of business, economic, and political news from Mongolia in its Business Council of Mongolia NewsWire issue 179 dated August 5, 2011. Key highlights include that Centerra Gold hopes to produce an initial resource statement on its Altan Tsagaan Ovoo prospect by the end of 2011. Construction at the Oyu Tolgoi project is 32% complete and under budget. Ivanhoe Mines CEO estimates the company is worth at least double its current value given the quality of its Oyu Tolgoi asset. Erdenes Tavan Tolgoi began shipping coal to Chinese company Chalco and hopes to export 1 million tons of coal in 2011.
The document proposes introducing a "Business Education & Career Guidance Program" called "Business Academy for Children" (BAC) in Mongolia. The BAC would be an after-school program to empower high school students with business and leadership skills. It would have three components: an information platform, educational courses on business/entrepreneurship, and networking opportunities. The program aims to address issues like education-occupation mismatch and lack of career guidance. It plans to reach 1,000 students annually and gradually expand nationwide.
- The document summarizes news from the Business Council of Mongolia newsletter, covering business, economic, and political news in Mongolia.
- In business news, precious metals production is helping offset costs at the Oyu Tolgoi mine, Rio Tinto increased its stake in Ivanhoe Mines, and Voyager Resources discovered a new copper intersection. Aspire Mining received a positive report on its Ovoot coal mine's product quality. Petro Matad shifted drilling operations due to technical difficulties. Prophecy Coal signed coal sales agreements.
- Economic news included Mongolia excelling in 2011 and consumption and mining spurring economic growth.
- In politics, employees may strike at Erdenes T
This document summarizes Mongolia's recent macroeconomic conditions and banking sector trends. It notes that Mongolia's GDP growth has slowed in recent years due to weak commodity prices and currency depreciation. The banking sector has seen rapid growth in loans and deposits but this growth has now stopped. Non-performing loans have risen due to the economic downturn and now stand at 7% of total loans. Several initiatives have recently been implemented to strengthen Mongolia's financial sector regulations and governance.
The Development Bank of Mongolia (DBM) was established in 2011 to foster Mongolia's economic and infrastructure development through long-term financing. DBM plans to finance over 1.3 billion MNT for rail, road, housing, and industrial projects in 2012. Major projects include constructing 1,500 km of roads, housing districts, engineering utilities, and the first phase of a new national railway system. DBM also aims to develop Mongolia's first industrial park in Sainshand through financing various mineral and energy processing plants. Implementation of these large infrastructure ventures faces challenges of contractor capacity and finalizing technical plans.
The document discusses AREVA's 15 years of presence in Mongolia exploring for uranium. Key points include:
- AREVA has been exploring for uranium in Mongolia for 15 years, holding 12 exploration licenses in the Sainshand basin and 15 licenses in the Dariganga area.
- AREVA intends to mine the uranium deposits it has discovered and the mining process will take 15-60 years from exploration to production to environmental monitoring.
- AREVA and Mongolia have partnered for 15 years, making their first significant uranium discovery at Dulaan Uul and confirming its potential for mining.
- A corporate structure has been established with Mongolian companies to oversee
The document summarizes news from the Business Council of Mongolia newsletter. It highlights several stories:
1) Rio Tinto is close to striking a deal with Mongolia on developing the second stage of the Oyu Tolgoi mine, as an engineering contractor has begun hiring workers for the project.
2) Mongolian Mining Corporation has secured $150 million in pre-export loan financing and a $50 million option to fund working capital and investments.
3) Mongolia Growth Group has appointed a new CEO, Paul Byrne, to lead the company in its next phase of development.
The document summarizes business news from Mongolia. It discusses several topics:
- Oyu Tolgoi defended its investment agreement as fair and valid, saying it benefits Mongolia. However, some lawmakers want to increase Mongolia's stake in the project.
- Despite calls to rework OT's agreement, investors increased shares in the project's main partner, shrugging off political risks.
- Prophecy Coal submitted a power purchase agreement proposal for its mine-mouth power plant project.
- Erdene Resources plans to split its coal and Mongolian mineral projects into separate companies to unlock shareholder value.
- Terra Energy is set to begin mining at its South Gobi coal project.
The document summarizes news from the Business Council of Mongolia newsletter. It highlights several stories:
1) Rio Tinto is firming up $2.5 billion in financing for the Oyu Tolgoi mine expansion and expects government approval to ship copper within weeks.
2) Erdenes Tavan Tolgoi offered a one-year contract to mine 2 million tons of coking coal at West Tsankhi to attract new customers and raise cash.
3) The Mongolian government remains silent on allowing Centerra Gold to begin operations at its Gatsuurt gold project, which was to supply ore to the nearby Boroo mine for processing.
The document provides news highlights from the Business Council of Mongolia covering business, economic, and political news. In business news, it reports that Erdenes-Tavan Tolgoi is considering selling convertible bonds before its IPO, which has been pushed back to at least September. It also reports that Guildford Coal's estimates in Mongolia have reached over 2 billion tons and that SouthGobi Resources will sell the Tsagaan Tolgoi deposit for $30 million.
The document summarizes business and economic news from Mongolia. It reports that Khan Resources received notice from Mongolia's State Property Committee to increase state ownership of its uranium project to 51%. It also reports that Centerra Gold forecasts gold production of 640,000-700,000 ounces in 2010. Additionally, it mentions that Ivanhoe Mines plans to spend $758 million on development work at its Oyu Tolgoi copper-gold mine in 2010.
The document summarizes news from the Business Council of Mongolia newsletter dated October 10, 2014. Key highlights include:
- Rio Tinto's $5.4 billion Oyu Tolgoi copper project expansion in Mongolia has missed another deadline for financing commitments from lenders, raising concerns over Rio's copper earnings and Mongolia's economic outlook.
- Mongolia plans to expand its state-owned Darkhan metallurgical plant to include an iron ore wet concentrate plant by year's end, and upgrade the facility over the next four years.
- China's Sinopec submitted plans for a $30 billion brown coal gasification project in Mongolia to produce synthetic natural gas.
- MIAT
The document is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia. Some of the key points covered in the newsletter include:
- Negotiations between Rio Tinto and the Mongolian government over the Oyu Tolgoi mine are expected to be resolved by September.
- A new free-trade zone began registering companies in Selenge Province.
- Several companies announced expansion projects, new investments, and equipment orders.
- Mongolia's state-owned bank and airline both announced plans to add new planes to their fleets.
- Mongolia's parliament approved an economic stimulus plan and debated infrastructure investment.
- First quarter profits dropped for Canadian miner Center
The document is a newsletter from the Business Council of Mongolia that provides news highlights from Mongolia in the areas of business, economy, and politics. Some of the key business stories discussed include Tavan Tolgoi expanding its coal wash plant, MMC receiving payment for transferring road assets, bank profits increasing in 2013, and Guildford Coal receiving approval to begin operations at its Baruun Noyon Uul mine. Economic highlights cover topics like the central bank maintaining interest rates, a rise in fuel prices, and the government distributing wool bonuses. Politics updates mention parliament addressing a rail gauge dispute and Mongolia expressing intent to join the Antarctic Treaty.
The document provides a summary of business and economic news from Mongolia. It discusses several stories including Canada's Centerra Gold being approved to mine a gold deposit in Mongolia, Russia forgiving over $170 million of debt owed by Mongolrostsvetmet, and Aspire Mining cutting estimated mining costs for its Ovoot coal project in Mongolia by 22%. It also mentions the Mongolian geology lab receiving international accreditation and a Mongolian company producing charcoal for barbecues from locally sourced sawdust.
The document is a newsletter from the Business Council of Mongolia that provides news highlights on business, economic, and political issues in Mongolia and internationally. Some of the key stories covered include: progress being unclear on the planned IPO of Mongolia's Tavan Tolgoi coal mine; the Mongolian government greenlighting a planned 600-megawatt coal power plant by Prophecy Coal; and Xanadu Mines planning to continue drilling its metallurgical coal exploration project through the winter months.
The document provides a summary of business, economic, and political news from Mongolia in its Business Council of Mongolia newsletter. Some of the key highlights include:
- Mongolia is confident it can resolve disputes with Rio Tinto over the $5 billion expansion of the Oyu Tolgoi copper and gold mine by the December 31 deadline.
- Rio Tinto's Oyu Tolgoi mine has shipped copper concentrate to China but has not recorded any revenue yet due to delays in Chinese customs approval.
- Entrée Gold is considering a proposal to transfer its mining licenses for the Oyu Tolgoi project to Oyu Tolgoi LLC.
- A private equity group in Mongolia is
The document summarizes business and economic news from Mongolia. It discusses several stories including Mongolia unveiling a new trademark for fur and cashmere products, Chalco acquiring a majority stake in SouthGobi Resources, and Oyu Tolgoi defending its operations against claims of environmental damage. It also mentions Mongolian Growth Group exploring a potential listing on the Mongolian Stock Exchange and the Mongolia Corporate Governance Forum happening in May.
The document summarizes business and economic news from Mongolia in Issue 100 of the Business Council of Mongolia NewsWire dated January 8, 2010. Some of the key stories covered include SouthGobi Energy planning to raise $400 million from a Hong Kong IPO to fund coal production expansion in Mongolia, China National Gold's unit partnering with Monnis for gold exploration in Mongolia, and SouthGobi aiming to increase coal production at its Ovoot Tolgoi mine sixfold by 2012 through investments in mining infrastructure. The document also provides highlights of exploration and corporate activities by Entrée Gold in Mongolia in 2009, including the signing of an investment agreement for the Oyu Tolgoi mining project.
The document is a newsletter from the Business Council of Mongolia covering business and economic news related to Mongolia. Some of the key stories covered include Mongolian Mining seeking to raise $680 million in an IPO, Petro Matad raising $46.8 million to accelerate its drilling program in Mongolia, Khan Resources hoping the Nuclear Energy Agency will cooperate after it let the appeal deadline pass in one of their court cases, and the opening of Mongolia's first investment bank focused on the mining sector by former UBS executives, signaling the mineral boom taking place in Mongolia.
The document summarizes news from the Business Council of Mongolia newsletter dated September 19, 2014. It covers several topics:
1) The tax dispute between Rio Tinto and the Mongolian government over the Oyu Tolgoi copper mine has been resolved, with taxes owed reduced to $30 million from $130 million.
2) Exploration drilling has started at Aspire Mining's Nuurstei coal project, which could lead to a pre-feasibility study.
3) Genie Energy has signed an agreement to explore an additional 25,000 square kilometers in Mongolia for oil shale, bringing its total exploration area to 60,000 square kilometers.
The document summarizes business and economic news from Mongolia reported in the Business Council of Mongolia NewsWire on June 24, 2011. Key highlights include:
- The Mongolian government suspended PetroChina's crude oil transport along a gravel road for various violations.
- Erdene Resource Development took investors on a tour of its mining operation sites in Mongolia.
- Mongolia Growth Group received an insurance license under the name Mandal General to underwrite property and casualty insurance in Mongolia.
- Several mining and exploration companies including Voyager Resources, Mongolia Energy Corporation, and Petro Matad provided updates on their drilling, mining, and exploration activities in Mongolia.
- The document summarizes business and economic news from Mongolia. It reports that Turquoise Hill Resources and Rio Tinto expect to sign a $4 billion financing plan by the end of June to develop the second phase of the Oyu Tolgoi mine, while Mongolia plans to begin investigating Oyu Tolgoi's tax and contractual compliance. It also mentions that Erdenes Tavan Tolgoi will begin mining the West Tsankhi coal area and potentially partner with foreign miners, and that Japanese companies will build Mongolia's second international airport.
The document is a newsletter from the Business Council of Mongolia covering business, economic, and political news highlights from Mongolia. Some of the key stories covered include OT copper mine beginning initial production, Rio Tinto paying $935 million to maintain its stake in Ivanhoe Mines, a ruling in favor of Khan Resources over the expropriation of its uranium project, and updates on several mining and exploration companies' activities and projects in Mongolia.
The document is a newsletter from the Business Council of Mongolia providing summaries of business and economic news from Mongolia. It discusses several stories including: OT expanding its mining operations and hiring hundreds of Mongolians starting in July; OT shipping over 2 million tons of copper concentrate in Q1 2016; a Mongolian development bank inking an oil loan with Russia; and mines leading tax payments in Mongolia in 2014 and 2015. It also briefly summarizes other mining, economic, political and business stories from Mongolia.
The document provides a summary of business, economic, political, and other news from Mongolia in Issue 339 dated August 22, 2014 from the Business Council of Mongolia newsletter. Some key highlights include:
- Operations at Mongolia's Tavan Tolgoi coal mine have been halted due to payment disputes between the state-owned mine operator and contractor Macmahon Holdings.
- Mongolian Mining Corp saw revenues fall 22% in the first half of 2014 compared to the same period in 2013 due to challenging market conditions in China.
- The World Bank has appointed a new country representative for Mongolia, James Anderson, who will begin work in Ulaanbaatar next week.
- Guildford Coal
After careful consideration for the preservation of the region’s environment, culture, and people, Jalsa Urubshurow opened Three Camel Lodge in 2002 as the only luxury eco-lodge in the Gobi Desert. Built by and staffed by locals, Three Camel Lodge offers travelers a way to experience the nomadic spirit of the region alongside modern comforts while protecting the natural beauty and culture.
After careful consideration for the preservation of the region’s environment, culture, and people, Jalsa Urubshurow opened the only luxury eco-lodge in the Gobi Desert, Three Camel Lodge, in 2002. Built by and staffed by locals, Three Camel Lodge offers travelers a variety of activities to learn about nomadic culture while enjoying modern comforts in a way that showcases the nomadic spirit without destroying the natural environment of the region.
The Business Council of Mongolia published its January 2020 Macroeconomic Updates report which contained the following key points:
1) Mongolia's GDP grew 6.3% in Q3 2019 while inflation was at 5.2% in December 2019. Exports reached a historic high of $7.6 billion in 2019, driven by record coal exports.
2) Foreign direct investment in Mongolia totaled $21.5 billion as of 2019, with the majority from Canada, China, Singapore, and Luxembourg invested mainly in mining.
3) The Mongolian currency, the togrog, depreciated 3.8% against the US dollar in 2019 as the central bank supplied $2.
Faro Foundation Mongolia is a non-governmental organization that promotes digital literacy and safe internet use in Mongolia. It works to educate the public on topics like online safety, proper social media use, and cyberbullying prevention. The organization's primary goal is to create positive social change through social media. It has developed a digital literacy curriculum and library on Facebook to teach essential digital skills to students, teachers, and parents.
The Business Council of Mongolia (BCM) is an independent non-profit organization established in 2007 to advocate for economic freedom and a competitive business environment in Mongolia. It has over 240 member organizations from various sectors. The BCM aims to equip its members with policy research, training, and networking opportunities. It is organized with a Board of Directors, Executive Committee, and six working groups focused on key issues. The Growth and Innovation working group works to promote digital transformation in Mongolia.
The One-Stop-Service Center (OSSC) was established in February 2019 under the Prime Minister's order to provide centralized public services to investors in Mongolia. The OSSC was created as part of Mongolia's three-pillar development policy and on the recommendation of the Investment Protection Council. It allows five government bodies, a bank, and notary office to render services to foreign investors from one location.
Mongolians are building a competitive Fintech sector with international ambitions by cultivating agile and innovative teams combining specialists and experts from 6 nationalities. To become truly internationally competitive, Mongolia must train professionals and executives to international standards by growing their next generation of innovative leaders and skilled experts. Overcoming these challenges will allow Mongolia to solve growing issues and compete in international markets.
The document discusses competitiveness rankings for Mongolia and its provinces. It analyzes Mongolia's performance in the IMD World Competitiveness Ranking, where Mongolia ranked 62nd out of 63 countries in 2018. The ranking evaluates countries across 4 factors: economic performance, government efficiency, business efficiency, and infrastructure. The document also summarizes findings from a provincial competitiveness report for Mongolia, which evaluated and ranked the competitiveness of Mongolia's 21 provinces. Finally, it outlines criteria and results from a competitiveness ranking of districts in Ulaanbaatar city across 5 factors of quality of life, living environment, safety and security, governance, and economic performance.
Digital transformation involves using digital technology in new ways to solve traditional business problems and drive organizational change. The presentation discusses how digital transformation differs from related concepts like digitization, analytics, and outsourcing. Key aspects of digital transformation include leveraging data as a strategic asset, adapting to digital natives, and undergoing cultural and technological changes. Methods like agile project management and design sprints are presented as ways to accelerate transformation. The presentation also provides examples of how companies have transformed, such as Domino's Pizza using digital strategies to regain market share.
DBS Bank was named the world's best digital bank by Euromoney in 2016 and 2018, beating competitors like Citi, BBVA, and ING. The CEO of DBS Bank, Piyush Gupta, accepted the award and said that banks of the future will be fundamentally different than today's banks due to their digital transformation. DBS Bank has spent three years focused on digital initiatives by changing employee mindsets and technology infrastructure to make banking simple and seamless for customers.
Mongolia transitioned to democracy in the early 1990s after a peaceful revolution. It now has a multi-party parliamentary democracy with freedoms of religion, expression, and private property rights guaranteed in its constitution. Mongolia's economy depends heavily on its mineral and agricultural sectors as it continues developing a market economy after transitioning from Soviet control.
The document discusses the Growth & Innovation Working Group of the Business Council Mongolia. The working group aims to:
1. Promote and advance business growth and innovation in Mongolian society through educating businesses, government, and the public on opportunities in research and development.
2. Enable all organizations to grow and innovate, not just start-ups or sectors traditionally thought of as innovative.
3. Focus on key objectives like digitalization, infrastructure, financial technology, data security, efficiency, public investment policy, and intellectual property protection to support the digital transformation of consumer and enterprise services through technologies like IoT, AI, fintech, blockchain, and more.
The working group plans events
The BCM held its January monthly meeting to discuss organizational updates. Key points:
- The BCM elected a new 15-member Board of Directors and appointed an Executive Committee and Working Groups.
- Two presentations were given on legal environments for asset management in Mongolia and on responsible mining.
- The BCM revised its mission statement to focus on providing members with policy research, training, and networking support for business in Mongolia.
- The BCM reorganized its working groups, which are now chaired by Board members, and strengthened its secretariat.
The document discusses Mongolia, Russia, and China's economic corridor program. It notes that the program aims to improve connectivity between the three countries through projects involving railway, roads, energy transmission lines, gas and oil pipelines, and high-speed internet. There are currently 32 projects across areas like infrastructure, energy, agriculture, border cooperation, trade, environment, education, medicine, and more. The document also discusses plans to establish a joint center for investment planning and projection in Ulaanbaatar to facilitate implementation of the economic corridor program projects and further trilateral cooperation.
This document provides information on business opportunities through procurement for Mongolia's Second Compact Agreement with the Millennium Challenge Corporation (MCC). It outlines that the total grant value is $350 million to fund activities supporting economic growth and poverty reduction in Mongolia. Key business opportunities include consulting services, goods, and construction works valued at approximately $44 million for the base year. The presentation also reviews MCC's procurement principles of transparency, fairness and competitiveness. It provides details on the procurement process and how opportunities will be advertised.
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Youngest c m in India- Pema Khandu BiographyVoterMood
Pema Khandu, born on August 21, 1979, is an Indian politician and the Chief Minister of Arunachal Pradesh. He is the son of former Chief Minister of Arunachal Pradesh, Dorjee Khandu. Pema Khandu assumed office as the Chief Minister in July 2016, making him one of the youngest Chief Ministers in India at that time.
1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 170, June 3 2011
NEWS HIGHLIGHTS:
Business:
MMC to buy nearby rival in country’s largest acquisition transaction;
Prophecy’s Chandgana plant to have 4,200 mw capacity when completed;
Agreement with Bechtel signed;
Erdene receives mining license for Zuun Mod molybdenum-copper project;
Oyu Tolgoi to be asked for advance royalty and excise tax;
OT releases "a tide of growth that will float everybody's boat";
Origo Partners invests in advanced stage molybdenum exploration project;
Just Agro to raise MNT30 billion from “meat bond” sale;
ESTO first Mongolian road builder to receive ISO 9001;
Newcom Group building 50-mw wind power plant;
IFC invests in Suu JSC, Mongolian dairy processor;
Mongolia Development Resources focuses on UB and 2nd
-tier cities;
Anod Bank officials return to jail after a day of freedom.
Economy:
Mongolia "dreams big and aims high", Deputy Minister tells Investment Forum;
Government approves USD500 million loan from China;
Import from new sources will make oil more expensive, warns Minister;
Elbegdorj asks Putin to ensure stable supply of petroleum;
Central Bank confident it will rein in inflation and rising MNT, “two wild horses”;
Electricity may cost 75% more in 2014, warn energy officials;
MSE to introduce 24-hour trading this year;
New features to mark Discover Mongolia-2011 on September 8-10;
Banks and other players in financial sector set for rapid growth;
PM wants comprehensive plan to meet needs of South Gobi’s mining boom;
A piece of Mongolia's mine;
Mining, especially coal, is Mongolia’s economic future;
Deripaska loses fear and favor value in Mongolia;
Beijing softens stance on price increases, Unilever escapes punishment;
Chinese manufacturing growth falters.
Politics:
Shenhua will own share of Mongolian Railways;
Russian Railways ready to invest USD1.5 billion in Mongolia;
Medvedev wants Russia-Mongolia trade to go beyond petroleum;
Russia blames Mongolia for delay in uranium JV;
PM thanks U.S. for “all-round support”;
DP group wants new ACA chiefs appointed;
18 trains canceled to save diesel fuel;
MP against having nuclear power plant, as “we are an irresponsible people”;
Judge explains why ACA officials’ appeal was rejected;
Group to work on relocation of ger district households;
Mongolia connects to Hong Kong with direct flights and consulate;
2. “Solar gers” under development;
A tale of two Mongolias.
*Click on titles above to link to articles.
BUSINESS
MMC TO BUY NEARBY RIVAL IN COUNTRY’S LARGEST ACQUISITION TRANSACTION
Mongolia Mining Corp. has agreed to buy coking-coal miner QGX Coal Ltd. for USD464 million,
marking the largest acquisition by a Mongolian company of another company in the country. Hong
Kong property-and-hotels conglomerate Kerry Group, among the holdings of tycoon Robert Kuok,
bought 90% of QGX in 2008 for USD259 million. Kerry owns 8.1% of MMC, which late last year
became the first Mongolian company to list its shares in Hong Kong.
MMC will pay a Kerry unit USD379 million in cash and the rest through a USD85 million MMC
convertible loan that expires in 18 months. If in 18 months the reserve calculation of the QGX mine
exceeds 150 million tons of coking coal, MMC will pay Kerry an added USD105 million in cash. If not,
the value of the convertible bond will be reduced. Depending on reserve calculations and including
royalty payments, Kerry could be paid a maximum of USD950 million. UBS AG advised Kerry on the
sale, while Citigroup Inc. advised MMC.
QGX owns the Baruun Naran Coking Coal Project in southern Mongolia and has 282 million tons of
resources and 185 million tons of reserves. MMC, which has properties near the QGX site, owns and
operates an open-pit Ukhaa Khudag coking-coal mine located in the Tavan Tolgoi coal formation in
South Gobi, Mongolia. MMC holds 500 million tons of resources and 286 million tons of reserves.
“The sizable coking coal resources and reserves estimated in the Baruun Naran coking coal mine
will open potential to diversify the group‟s coal products and enhance sources of revenue,”
Mongolian Mining said. The company will also be able to share mine and transport infrastructure.
“Demand for coking coal will continue to grow and the acquisition enables the group to further
expand its coking coal mining business and to solidify the company‟s position as the leading coking
coal miner in Mongolia,” the statement said.
Source: The Wall Street Journal, Bloomberg
PROPHECY’S CHANDGANA PLANT TO HAVE 4,200 MW CAPACITY WHEN COMPLETED
Prophecy Resources plans to use only “clean” coal in its Chandgana power plant, according to Mr.
David Jan, CFO. Chandgana‟s location, between Ulaanbaatar and Beijing, makes it eminently
suitable to supply electricity to both Mongolia and Beijing. The company is sure China will be
interested as buying electricity from Mongolia will gain it carbon credits. The benefit of the project
for Mongolia would lie in the use of coal to create a value added product. The power plant will have
an initial capacity of 600 mw but the plan is to ultimately generate 4,200 mw. Chandgana is just 60
km from Mongolia's existing power grid and its output can be quickly integrated to the Mongolian
system, putting an end to costly power import from Russia.
Construction is expected to begin in the 1Q2013. International banks have shown interest in
financing the project, and Monnis has invested in the company‟s operations in Mongolia. Prophecy is
looking for Asian-listing to raise more capital.
Source: Eurasia Capital
AGREEMENT WITH BECHTEL SIGNED
The agreement appointing US-based Bechtel to provide general consultancy services for the
Sainshand industrial complex was signed last week by Mr. Ch.Khashchuluun, head of the National
Development and Innovation Committee (NDIC), and Mr. Steven R. Katzman, Director General of
Bechtel Asia. The company has six months from now to work out a master plan, including
preliminary technical and economic feasibility studies, draft terms of agreements with those who
will set up the various factories, and financing plans. The complex will be built in several phases.
Source: Montsame
ERDENE RECEIVES MINING LICENSE FOR ZUUN MOD MOLYBDENUM-COPPER PROJECT
Erdene Resource Development Corp. has received a mining license for the Zuun Mod molybdenum-
copper project in southwest Mongolia from the Government of Mongolia. “This is an important
milestone for the project and our company", said Mr. Peter Akerley, President and CEO. "Our
employees and Mongolian consultants have dedicated significant effort to this achievement, and the
3. receipt of the license is a testament to their ability to work with the Mongolian regulatory
authorities. With the long-term mining license secured, we now have the ability to advance this
wholly-owned project more rapidly."
The Zuun Mod mining license covers an area of 6,041 hectares and contains the South Racetrack and
North Racetrack deposits, which hosts all of the measured and indicated resources at Zuun Mod.
The mining license also contains the Khuvyn Khar copper prospect and is valid for an initial 30-year
term with provision for renewal for two additional 20-year terms.
Approval of an application for a second contiguous mining license, south of the approved present
one, is awaiting a decision by the Government on the definition of the boundaries of a water
protection area overlapping the license area. This license application covers 358 hectares and
contains the Stockwork deposit which hosts 15 percent of the Inferred resource at Zuun Mod.
Source: Erdene Resource Development Corp.
OYU TOLGOI TO BE ASKED FOR ADVANCE ROYALTY AND EXCISE TAX
The Government last week instructed the Minister of Finance to prepare an agreement to receive
from Oyu Tolgoi LLC in advance a part of the royalty and excise tax the company would be liable to
pay once it begins extraction and sales operations. The agreement will come into effect next year
and the amount paid will be adjusted against the taxes as and when they are due. The move will
also reduce the interest on the Mongolian Government bonds held by Ivanhoe Mines Mongolia Inc to
1.59% from 3%. The company bought the bonds in October 2009 with the USD100 million it was to
pay as the first installment of the advance payment as stipulated in the investment agreement. The
company will thus month pay USD100 million as the third installment.
Source: Montsame
OT RELEASES “A TIDE OF GROWTH THAT WILL FLOAT EVERYBODY’S BOAT”
Mr. Peter Nicholls, General Manager of Rio Tinto's Commercial Department, has said that with a
potential mine life of 50 years Oyu Tolgoi is expected to withstand the lower end of the commodity
price cycle. The Oyu Tolgoi investment agreement has seven main areas of commitment: the terms
of investment, taxation, procurement, infrastructure, employment and training, regional
development and environment. Mr. Nicholls said that Rio Tinto and Ivanhoe Mines have invested
USD2 billion over the last four years and USD4.5 billion is budgeted for the completion of first phase
of the project between 2011 and 2013. A total of 12 major construction projects in the South Gobi,
Choyr and Darkhan are 100% managed by Mongolian contractors for a total of over USD40 million.
OT LLC has so far engaged 2,833 Mongolian suppliers and last year signed contracts with 103 local
suppliers in Khanbogd and Dalanzadgad for a total USD1.5 million.
A study assessing the macroeconomic consequences of the project for Mongolia, commissioned by
Rio Tinto and prepared by a team of independent economists led by Dr. Brian Fisher, Chairman and
Managing Director of BAEconomics, shows, in Dr. Fisher‟s words, how "a tide of growth will float
everybody's boat". According to the study the Mongolian economy is expected to grow more than
10% a year for the next ten years, meaning that by the year 2020 the size of the economy will more
than double, as Oyu Tolgoi ramps up to full production. At the moment, Mr. Nicholls said, the
economic impact is revealed by y-o-y rise in the production of wooden doors and windows by 258%,
of sawn wood by 300%, and of cement by 200%. The net income of restaurants in Ulaanbaatar was
up 800% in January this year. Economists predict that 4 additional jobs will be created in the
country for every job at Oyu Tolgoi.
The Mongolian Directors of the Oyu Tolgoi LLC recently visited Rio Tinto's headquarters in London
and also its Salt Lake City copper mine in Utah, which has been in operation for over 100 years, to
get an idea of how Rio Tinto is implementing in Oyu Tolgoi its best international practice learnt
from operating in over 40 countries, in areas from the pristine tundra in the far north of Canada to
the Namib Desert, and to the remote Kimberley region of Western Australia.
Source: Eurasia Capital
ORIGO PARTNERS INVESTS IN ADVANCED STAGE MOLYBDENUM EXPLORATION PROJECT
Origo Partners Plc has acquired a 20 per cent equity stake for USD10 million in Moly World Ltd,
owner of an advanced stage molybdenum exploration project, covering an area of 2,360 hectares
approximately 40 km north of Tsagaan-Uul district in Khuvsgul province in northern Mongolia.
Origo's wholly owned commodities trading company, Origo Resources International Ltd., has been
granted an off-take covering up to 20 per cent of all possible production for the life of the mine.
Two independent assessments lead Origo to believe that the project has the potential to host a
world class molybdenum resource, benefiting from high grade and near surface mineralization.
4. Moly World will use the proceeds from the sale to fund further exploration work, including
exploration for extensions and infill drilling in order to produce a JORC compliant resource
estimate, targeting a minimum of 300 million pounds of molybdenum by December 2011. A total of
8 drilling rigs are in the process of being deployed at the project in one of the largest exploration
programs currently under way in Mongolia.
Source: Origo Partners
JUST AGRO TO RAISE MNT30 BILLION FROM “MEAT BOND” SALE
Just Agro, a subsidiary of the Just Group, plans to raise MNT30 billion through sale of bonds soon, as
revealed by its Director, Business Development, Mr. B. Enkhbat. The so-called "meat bond" will
carry 16.2% interest and will be redeemed after a year. The company is valued at MNT45 billion and
it is offering its sales agreements and meat stock of 16,000 tons as guarantee. The proceeds from
the offering will be used for OPEX, procurement of livestock and increasing production capacity.
The company plans to export 12,600 tons of beef and horse meat to Russia, and 4,500 tons of
mutton to Arab countries, while selling 6,000 tons of meat in the domestic market. Just Agro‟s
market share is 32% in livestock procurement, 26% in slaughter capacity and 30% in meat and semi-
finished meat storage.
Source: Eurasia Capital
ESTO FIRST MONGOLIAN ROAD BUILDER TO RECEIVE ISO 9001
ESTO Co. Ltd is the first Mongolian road construction company to be awarded the international ISO
9001 certificate by the National Center of Standardization and Measurement, following
recommendations from its Quality Approval Council. The award testifies to the advanced quality of
the operations system of the company. ESTO has been building and repairing roads in Mongolia since
2004, using international technology applied by a workforce which attends frequent refresher
trainings to update their skills.
Source: Udriin Sonin
NEWCOM GROUP BUILDING 50-MW WIND POWER PLANT
The diversified holding company Newcom Group, engaged in air transport, energy, real estate,
financial services, telecom and other sectors, is currently focused on infrastructure related
projects. It is building a wind power plant with a capacity of 50 mw, which will be the first plant to
be connected to the national electricity grid since 1985. Mongolia possesses significant wind
resources and the success of the project will be a boost for clean energy generation, according to
Mr. Byambasaikhan, the Group‟s Managing Director.
Source: Eurasia Capital
IFC INVESTS IN SUU JSC, MONGOLIAN DAIRY PROCESSOR
IFC, a member of the World Bank Group, has invested USD2 million in Suu JSC, Mongolia‟s leading
dairy processor, helping expand economic opportunities in rural areas, while diversifying the
country‟s natural resource-led economy and improving food safety. IFC‟s investment consists of an
eight-year, USD2 million loan to help Suu increase production capacity and tighten quality controls.
Suu will improve food safety by installing new equipment to test milk quality, and by implementing
an environmental and safety management system that will set the standard for Mongolia‟s dairy
industry.
“IFC provides not only long-term financing, but also a stamp of approval for our socially responsible
operations,” said Mr. D. Ganbaatar, Chairman of Suu. “We are committed to working with IFC to
improve our food safety standards, quality control as well as our corporate governance practices.”
IFC‟s investment will help Suu extend its network of raw milk suppliers to about 4,000 from the
current 2,500 herders, thus contributing to their economic sustainability. The company buys raw
milk through 19 milk collection stations in rural Mongolia and sells products through more than 100
distributors. France‟s Société de Promotion et de Participation pour la Coopération Economique
(Proparco) and the Belgium Investment Company for Developing Countries (BIO) are also providing
USD2 million each.
“Supporting Mongolia‟s small and medium enterprises to generate employment and diversify its
natural resources-led economy is a top priority for IFC as we expand our programs in the country,
both in investment and advisory services,” said Mr. Hyun-Chan Cho, IFC‟s Country Manager for China
and Mongolia. Revitalizing Mongolia‟s traditionally important dairy industry, which collapsed during
the country‟s transition to a market economy in 1990, will largely depend on the success of dairy
processors such as Suu and their capacity to increase production of quality milk through a well-
5. functioning supply chain at prices that compete with imports.
Nomadic herding and traditional dairy pasturing are an important part of Mongolia‟s economy.
Livestock contributes more than 20 percent to the country‟s gross domestic product and represents
40 percent of all employment in the country.
Source: The FINANCIAL
MONGOLIA DEVELOPMENT RESOURCES FOCUSES ON UB AND 2ND
-TIER CITIES
Real estate will be the sector most attractive to investors after mining, according to Mr. Marat
Utegenov, Executive Director of Mongolia Development Resources, an MSE-listed property and
infrastructure developer. The company raised MNT13.2 billion at an IPO on MSE in December 2007,
and is currently one of the few listed companies which provide non-resource exposure to investors.
Growing per capita income plus more advantageous mortgage terms will ensure rapid expansion in
the property sector. As business grows more office space will be needed, and the company is
focusing on Ulaanbaatar and second-tier cities such as Erdenet, Darkhan, and Dalanzadgad. It has
acquired land IN Dalanzadgad to construct a 6-story building with a conference hall, office space
and fully serviced apartments. The project is to be completed by 2012Q1 for sale and rent.
Source: Eurasia Capital
ANOD BANK OFFICIALS RETURN TO JAIL AFTER A DAY OF FREEDOM
Three former Anod Bank officials went back to jail on June 1, just a day after being released on
bail. The Chief of the Representatives Managing Council, Mr. N.Enkhtur, and two of its members,
Mr. N.Davaa and Mr. E.Gur-Aranz, were released on bail on May 31, but the Ulaanbaatar
Prosecutors‟ Office submitted to the Judge General of Bayanzurkh district on June 1 that they
should not stay free until investigation into their case is concluded. The judge agreed and overruled
the previous order granting bail, giving the prosecutors one more month to finish their work. Five
police officials went to Mr. Davaa‟s house to take him back to prison. The three have been
convicted for misappropriating bank funds and for selling counterfeit shares to 1,200 people. The
former Executive Director of the Bank, Mr. L.Ulambayar, was granted bail some time ago.
Prosecutors are now reviewing the charges against them for the next stage of the trial.
Source: Unuudur
SPONSORS
Khan Bank Eznis Airways
Kempinski Hotel Khan Palace Mongolian National Broadcasting
Mongolian Star Melchers
6. ECONOMY
MONGOLIA “DREAMS BIG AND AIMS HIGH”, DEPUTY MINISTER TELLS INVESTMENT FORUM
More than 150 participants, including Mongolian public and private sector leaders and international
and regional investors from over 20 countries, attended the second annual Mongolia Investment
Conference organized by Eurasia Capital on May 25. They heard of and discussed the investment
opportunities Mongolia has to offer, and many of them left with their mind made up to come back.
Deputy Minister of Finance Ch. Gankhuyag opened the conference by asserting that two decades of
political and economic reforms have made Mongolia a robustly functioning market that is
increasingly attractive to foreign and domestic investment. He did not gloss over hurdles such as
lack of infrastructure, but his final call was "to dream big and aim high".
Mr. Alisher Ali, Chairman of Eurasia Capital, said Mongolia would be a "global outperformer" over
the next decade, and recommended 7 specific types of asset classes that investors should focus on:
local equities, stocks of internationally listed companies, the MNT, fixed income instruments,
private equity/pre-IPOs, property and infrastructure.
Source: Eurasia Capital
GOVERNMENT APPROVES USD500 MILLION LOAN FROM CHINA
The Government on Tuesday approved in principle a proposal to take a loan for USD 500 million
from the Government of China. The money will be transferred through an arrangement between
Mongolia's Ministry of Finance and the Export-Import Bank of China. A formal order by the Prime
Minister asking the Ministry to sign the agreement will be issued soon.
Mongolia intends to use the loan to set up factories to process meat, milk, and flour, to buy small
tractors and a grain elevator, to build roads and to construct flyovers. The loan is repayable in 20
years with 2% annual interest. Repayment will begin only after the seventh year.
Source: Montsame
IMPORT FROM NEW SOURCES WILL MAKE OIL MORE EXPENSIVE, WARNS MINISTER
Minister of Mineral Resources and Energy D.Zorigt has asked Mongolians to be prepared for some
unpalatable developments stemming from the planned diversification of fuel import sources. The
most important of these could be a hefty price increase, because the proposed new sources will
charge at international rates, which are high at the moment and likely to get higher. Apart from
the loss of “generally cheaper Russian oil”, the country also faces a shortage of storage capacity, as
the proximity of Russia had helped easy supply. Following the drastic increase in price and a
resultant fuel shortfall in 2008, Parliament raised the minimum storage limit, but the cost of this so
far has been MNT8 billion. The Minister has called for budgetary allocation for this permanent
expense, if Mongolia has to stock enough oil to avert a crisis in supply like the present one.
Source: Zuunii Medee
ELBEGDORJ ASKS PUTIN TO ENSURE STABLE SUPPLY OF PETROLEUM
President Ts.Elbegdorj told Russian Prime Minister V.V. Putin at their meeting in Moscow that curbs
on fuel exports by Russia had put Mongolia to serious difficulties in agriculture, mining and public
transportation. "There have been failures in delivery in recent months, and we have serious
problems: now sowing has been delayed, production has become suspended and public
transportation in cities has almost stopped," Mr. Elbegdorj said. Mr. Putin explained that Russia
itself faced problems in fuel supply, but instructed Russian officials to see if Mongolia could be
supplied from the reserves of Rosnefti LLC. Deputy Prime Minister I.I. Sechin will look into the
matter.
Mr. Elbegdorj said the Mongolian Energy Minister will be visiting Moscow to hold talks with Mr.
Sechin to seek a long-term solution to the vexing problem. "Probably once they meet, the issue will
be solved," he said. Faced by fuel shortages of its own, Russia, the world's largest oil producer,
raised the fuel export tax by 44% last month. Mr. Putin has criticized Russia's oil groups, saying
there was no lack of oil but that companies had restricted supplies to keep prices high.
Several dozen Russian companies work in Mongolia. The two countries boasted more than USD1
billion in trade in 2010. According to Mr. Putin, the trade turnover between the two countries grew
by 50% in the first quarter of 2011. "Of course we need to retain this growth," he said.
Source: News.mn, RIA Novosti
CENTRAL BANK CONFIDENT IT WILL REIN IN INFLATION AND RISING MNT, “TWO WILD HORSES”
In his keynote address at the second annual Mongolia Investment Conference organized by Eurasia
Capital on May 25, Central Bank Deputy Governor N. Zoljargal listed factors that made the
7. economic outlook for the next two years very positive. The Bank‟s monetary policy will be aimed
at reining in "two wild horses", inflation and appreciation of the MNT. The National Development
and Innovation Committee (NDIC) estimates the Mongolian economy will grow not less than 7.5% for
the next ten years, GDP this year will grow 7.5%, reaching 20.6% in 2014 and gradually tapering off
to 16.9% in 2020, making it one of the fastest growing economies in Asia.
Referring to terms of trade (ToT), which shows the ability of a country to finance its imports, Mr.
Zoljargal said the export: import ratio is stable and rising, though it is yet to reach its earlier peak.
Month-on-month (m-o-m) ToT change is related to the international prices of oil, copper and coal.
Net capital inflows started growing in April 2010 and in December reached the highest level ever,
with the whole year‟s net capital inflow of USD1.6 billion growing 5.3 times compared to 2009. The
growth continues, with this year‟s January to March figures up 2.7 times more y-o-y. He noted that
the trend could create difficulties in managing capital inflows. The current account deficit in 2010
was USD931.5 million and could stay negative for some time until the import of all capital goods for
production purposes ends and exports increase. However, capital and financial account surpluses
will fully cover the current account deficit. In 2010 total capital account, direct investment and
portfolio investment was USD2.14 billion, and the Bank‟s projection is that balance of payments
(BOP) will reach USD870 million next year.
Mr. Zoljargal said the Central Bank evaluates the purpose and composition of capital inflows,
whether it is for long-term investment, short-term investment or for speculative purposes. The
Bank will neutralize the effects of short-term net capital inflow, while encouraging that for long
terms. The MNT has appreciated 3% so far this year and the Bank does not plan to intervene except
when the volatility affects daily business or is excessive.
Read more…
Money supply increased 67% last year, but monitoring and timely measures kept inflation down to
13%. It was 7% and 5.5% in March and April, and Mr. Zoljargal was confident there would be nothing
to worry this year. However, one third of the inflation is "imported" from China and Mongolia cannot
do anything about prices rising there.
Mr. Zoljargal said the loan-to-GDP ratio was substantially lower than in developed countries, but
the Mongolian banking system is safe and stable. He rejected suggestions that the economy was
overheating, saying Mongolia is in an early stage of development and “is just warming up”.
Source: Eurasia Capital
ELECTRICITY MAY COST 75% MORE IN 2014, WARN ENERGY OFFICIALS
Two senior officials in the Energy Regulation Department have said electricity rates are likely to be
raised every year for the next four years, and the total rise effective in 2014 will be MNT60 or 75%
more per unit than at present. This is the minimum increase generating companies will need to pay
off their debts and losses totaling MNT70 billion now, an amount that will rise considerably if the
coal companies succeed in convincing the Government to allow them to charge more for the coal
they supply to power plants.
Source: Zuunii Medee
MSE TO INTRODUCE 24-HOUR TRADING THIS YEAR
Mongolian Stock Exchange (MSE) Chairman Bold has said that 24-hour internet trading will be
introduced at the MSE latest by the end of this year. The MSE is waiting for the London Stock
Exchange to give its recommendations on the key issue of whether the trading system will be a
separate entity, or a subsidiary or part of the MSE.
Source: Eurasia Capital
NEW FEATURES TO MARK DISCOVER MONGOLIA-2011 ON SEPTEMBER 8-10
Mr. P. Ochirbat, the first President of Mongolia, has joined the Organizing Committee of "Discover
Mongolia-2011" as Chairman. The annual investment forum will this year take place from September
8-10 at the Children's Palace in Ulaanbaatar. The 9th edition of the "Discover Mongolia International
Mining Investors' Forum”, to give the event its full name, will attract, as always, global mining
executives, investment professionals, and parties interested in benefiting from the vast mining
opportunities Mongolia has to offer.
Ex-President Ochirbat is a mining engineer by training. “It is an honor to be joined by such a
distinguished individual. His advice and input will improve the conference agenda,” said Mr. N.
Algaa, a member of the Organizing Committee and Executive Director of Mongolian National Mining
Association. "I have always been a keen supporter of this remarkable event and a promoter of
responsible and mutually beneficial private sector investment in Mongolia's mineral sector. I am
8. pleased to serve this year on the Organizing Committee as its Chairman," said Mr. Ochirbat.
This year‟s conference will offer a variety of new features. New mining projects will be introduced
and various technical panel discussions will be running parallel to the open session. The
Government Hour session will be more comprehensive with a broader range of Government officials
invited and more time allocated during the second day of the conference.
Online registration has started at www.discovermongoliaforum.com. BCM is a Supporting
Organization and BCM members can register by paying the "early bird" rate of USD500 instead of the
normal rate of USD700.
Source: Discover Mongolia
BANKS AND OTHER PLAYERS IN FINANCIAL SECTOR SET FOR RAPID GROWTH
Both the banking and non-bank financial sectors are set to grow rapidly, their representatives told
the Mongolia Investment Conference last week. Trade and Development Bank President Randolph
Koppa stated that bank loans grew 35% y-o-y in Q12011 and the annual figure is expected to be 50%.
Mr. Batzaya of Khan Bank said its assets would double in 2011 and so there will be enough seed
money for fresh loans.
Banks represent 95% of the Mongolian financial sector, but Tenger Financial Group CEO Mr. Bold
said the non-banking sector is also ready to take off in a big way. Once the pension and insurance
markets are restructured, they would attract investors. With per capita income estimated to rise
dramatically, the insurance sector in particular would offer several opportunities for innovation and
expansion. Leasing is another interesting area, he added, though the concept is yet to fully
develop.
Source: Eurasia Capital
PM WANTS COMPREHENSIVE PLAN TO MEET NEEDS OF SOUTH GOBI’S MINING BOOM
Prime Minister S.Batbold has called for a comprehensive policy straddling several sectors to keep
pace with the expansion of mining in the South Gobi. For example, he feels it will be better for all
to join hands in executing a total paved road construction program, instead of individual companies
working on stretches to serve their individual needs. Similarly, he has instructed a working group
led by First Deputy Premier N.Altankhuyag to draw up a middle-term working plan for energy,
infrastructure and urban development encompassing the whole mining region, and to submit it to
the Government by June 10.
The group has started work on drawing up a strategic plan for the province‟s development and a
master plan for the development of Tsogttsetsii, Khanbogd and Gurvantes districts. Their main
features will be construction of two paved roads, one from Mandalgobi to Dalanzadgad (163 km)
and the other from Dalanzadgad to Tavan Tolgoi to Oyu Tolgoi (251 km), expansion of the
Gurvansaikhan airport, and installing 110-kw power transmission lines from Tavan Tolgoi to
Dalanzadgad.
The present population of Tsogttsetsii and Khanbogd districts is around 3,000 people, but this is
estimated to rise to 10,000 before long. Existing hospitals, schools and kindergartens must be
repaired and some new ones will have to be built. Related Ministers have been asked to make
arrangements. Taking careful note of a report from the province governor, the Prime Minister has
asked the Tavan Tolgoi company to act in a more transparent manner, and to restructure its
internal organization, if that is found necessary. He also wants the company to begin some
construction.
Source: Montsame
A PIECE OF MONGOLIA’S MINE
After the collapse of the Soviet Union, Mongolia had a democratic revolution in early 1990. It has
remained one of the region‟s more solid democracies since. The mining sector accounts for 81
percent of exports, 32 percent of government revenue and 30 percent of gross domestic product, a
share that is likely to increase dramatically. So far, only about 27 percent of Mongolia has been
mapped to a scale of 1:50,000, which shows that the country‟s resources remain largely untapped,
according to data from the investment bank ResCap.
For a long time, the star in the Mongolian resources firmament was Oyu Tolgoi, which looks set to
become one of the world‟s top three copper mines, just across the border from the world‟s biggest
copper consumer in China. But then came the news about a neighboring project, coal this time, at
Tavan Tolgoi, which is the world‟s second-largest coal deposit, after China‟s Shengli. The Mongolian
government will announce the winning bids to develop Tavan Tolgoi shortly. The western and
central part of Tavan Tolgoi holds more than one billion metric tons of coal, 68 per cent of which
9. can be used for steelmaking and the rest as fuel in power plants. Last year coal production doubled
to 25 million tons to become Mongolia‟s top export, encouraging the government to speed up Tavan
Tolgoi‟s development.
“We expect the Mongolian economy to grow up to 10 per cent this year, or 33 per cent in US dollar
terms, due to the further estimated appreciation of the MNT against the dollar, and it may continue
ranking among the three fastest-growing economies,” wrote Eurasia Capital in a research note. The
problem is finding enough qualified locals to staff the mines.
Mr. Seamus Brennan is chief adviser to a government committee examining duty-free zones. “I‟m
very optimistic about the prospects for Mongolia. This is a young country, it‟s only 20 years old.
There is a great future here,” he says.
Source: Irish Times
MINING, ESPECIALLY COAL, IS MONGOLIA’S ECONOMIC FUTURE
Last year, something important happened in the coal markets. China actually imported coal for the
first time. As recently as 2001, China exported 90 million tons. But in 2009, China imported around
86 million tons. That‟s a huge shift in less than a decade. Overall, that import total is just a drop in
the bottle. China alone burned about half the world‟s total demand for coal last year, about 2.8
billion tons. Over the next five years, China may well need another billion tons of coal annually.
What opportunities are there in satisfying China‟s demand for coal? Leaving aside the coal
producers that export coal to China, there are a number of Chinese coal miners. These include
China Coal, China Shenhua, Fushan Energy, Hidili Industry and Yanzhou Coal. As a group, they have
lots of coal and big growth potential as they start to unlock those reserves. The biggest growth,
though, may be just outside of China, in Mongolia. Yes, Mongolia.
Mongolia is a big country, the 19th largest in the world, at over 600,000 square miles. It‟s also one
of the emptiest countries in the world, with fewer than 3 million people. About 40% of that
population lives in Ulaanbaatar, the capital city, which lies on a flat table of earth amid high
mountains. Mongolia, though, is rich in resources – iron, tin, copper, gold and silver…and coal. Lots
and lots of coal. Mongolia has 10% of the world‟s coal. Indonesia is currently the largest exporter of
coal. Mongolia has double the amount of coal Indonesia has.
Total coal reserves are around 125 billion tons, according to AME Mineral Economics. This spans the
full spectrum of coal, everything from high-grade coking coal (used in making steel) to low-grade
lignite. Yet Mongolia currently produces only around 10 million tons a year. AME reports only 40 of
the 200 known coal deposits have active mining going on. There is no infrastructure in place to get
the coal to market. But that‟s changing.
Read more…
Already, about 64% of all of Mongolia‟s exports go to China. For China, this is like having the „Saudi
Arabia of coal‟ right across the border. For Mongolia, China is a meal ticket. Trade with China has
created an influx of cash in the country. Mining, it seems, is Mongolia‟s economic future.
One of only a handful of publicly-traded Mongolian coal companies is SouthGobi Energy, which
trades in Toronto. It seems to be quite a gem, too. SouthGobi has low mining costs and high-quality
coal – better than many Chinese companies. SouthGobi has one producing mine, Ovoot Tolgoi, and
two other coal projects. Its producing mine is only about 25 miles from China‟s Ceke port, where
the coal is then shipped by rail into China. This is a big advantage because sparse infrastructure in
Mongolia can make it challenging to get coal to China.
SouthGobi plans to boost production from about 4 million tons per year currently to 14 million tons
by 2013. China Investment Corp. (CIC), the state-owned wealth fund that manages China‟s bulging
reserves, put a big slug in the company and now owns 14%. (It would own 26% if it exercised certain
options.) Temasek Holdings, the Singapore state-owned fund, owns 2%. Ivanhoe Mines owns 57%.
So there are lots of insiders here who have just put fresh money in the deal. The CIC deal is
important because it will surely help open doors for SouthGobi in China. Plus, the CIC would love to
buy SouthGobi whole someday. SouthGobi, with prize assets, is an obvious goldfish among much
larger fish. SouthGobi may be the first significant public company to capitalize on Chinese coal
demand, but it won‟t be the last.
Source: The Daily Reckoning
DERIPASKA LOSES FEAR AND FAVOR VALUE IN MONGOLIA
Mr. Oleg Deripaska has been losing ground to Russian rivals in Mongolia, and is facing
unprecedented administrative sanctions in Ukraine and Russia. The commercial effect is to force
upwards the cost line on his balance-sheets, squeezing the earnings from which he must pay his
debts and shareholder dividends. The political effect is to undercut the perception that Mr.
10. Deripaska and his allies are too tough to resist.
In Mongolia, the Mongolian tale of Tavan Tolgoi has been running for several years now. In the Gobi
Desert, and with at least 6 billion tons of coking coal yet to be extracted, it is one of the largest
deposits in the world. A year ago, the Mongolian Government halted the sale of a 49% share in the
project on terms devised by JP Morgan and Deutsche Bank. Since then, the idea was adopted
instead of retaining 70% of the project equity in government and domestic hands, and licensing the
project operating rights in a two-stage tender.
Fifteen international bidders have been recognized this year by the Mongolian mine owner, Erdenes
Tavan Tolgoi. These include Chinese companies, Peabody of the US, Arcelor Mittal, Xstrata, Vale of
Brazil and two Indian companies. Mr. Deripaska‟s bid was submitted by his En+ holding, which holds
Deripaska‟s shares in Rusal, and owns outright Eurosibenergo, the group‟s electricity producer and
Strikeforce Mining and Resources (SMR), a molybdenum miner. These two have failed in bids to
attract Chinese investors and a Hong Kong share listing.
Mr. Deripaska‟s appearance in the Tavan Tolgoi bidding without a Chinese partner is significant,
because without Chinese commitments to buy the coal and finance the several-billion dollar cost of
the project, EN+ lacks the credit to match the competition. The closest Mr. Deripaska comes to a
railway – required to cover the ground between Tavan Tolgoi and the nearest Chinese coal-
consuming steel mill – is RCTM, a plant producing railcars for a variety of bulk cargoes.
Read more…
Last September, EN+ and Eurosibenergo made this announcement of a no-money memorandum of
understanding with the Mongolians. A link to the Tavan Tolgoi mine project is mentioned, but no
source for the financing needed. A miner already established in Mongolia says the government in
Ulaanbaatar is anxious not to allow China to dominate the terms of extraction and sale of Tavan
Tolgoi‟s coal, nor the Russians either. If Mr. Deripaska is hoping that the EN+ bid will cover for the
Chinese, he is likely to lose, the source notes.
The traditional Mongolian tradeoff between the powerful neighbors to south and north (and Japan
to the west) explains why Mr. Deripaska‟s Russian rivals in the Tavan Tolgoi contest are part of a
geographically and politically more diverse lineup. Cash and railways are also the key to the Tavan
Tolgoi tender, so state-owned Russian Railways has submitted a bid of its own, with more of both
than EN+ has so far been able to muster. In this rival Russian bid, Russian Railways (RZD), run by Mr.
Vladimir Yakunin, is partnered by Siberian Coal and Energy Company (SUEK), owned by oligarch-
sized figures, Mr. Andrei Melnichenko and Mr. Sergei Popov. SUEK is Russia‟s largest coal-miner,
specializing in steam coal, not coking coal. RZD and SUEK are consortium members of a syndicate
led by Korea Resources Corporation, and including Japanese coal buyers and traders – Marubeni,
Sumitomo, Sojitz, and Itochu.
In February, SUEK chief executive Vladimir Rashevsky publicly confirmed SUEK‟s keenness to win
the tender, and Mr. Yakunin followed suit a few days later. RZD has long-established relations with
Mongolia in the railway sector, and in 2009 prepared a survey of the country‟s railways and future
rail needs. RZD will not say it for the record, but sources make clear that Mr. Yakunin, Mr.
Melnichenko and Mr. Popov do not want Mr. Deripasaka in their syndicate, and do not believe he
adds to the Mongolian favor they already enjoy.
Source: The Business Insider
BEIJING SOFTENS STANCE ON PRICE INCREASES, UNILEVER ESCAPES PUNISHMENT
Beijing has signaled that its anti-inflation crusade does not preclude all price increases, even for
politically sensitive products, after a top official of China‟s price watchdog said Unilever would not
be punished for raising the price it charges retailers for some daily necessities. Unilever was fined 2
million yuan in May for publicizing its intention to raise some prices – a move which triggered
widespread panic buying. This week, official media reported that Unilever had told some retailers it
would increase the cost of some body care and beauty products. Unilever refused to confirm the
news, and Carrefour said it would not immediately pass along the price rise to consumers.
Ms. Li Qing, deputy director general of the department of pricing supervision at the National
Development and Reform Commission (NDRC), China‟s top planning agency, told the official China
Daily that Unilever would not be punished for the move. “Companies like Unilever have the right to
decide whether to raise prices or not, it‟s their decision. We will not interfere,” Ms. Li said. Her
language may assuage fears among foreign consumer goods manufacturers alarmed by the earlier
decision to fine Unilever for talking about raising prices.
The NDRC has explained its fine by criticizing Unilever for allowing its spokesman to tell local media
that detergent and soap prices might be raised because of high raw material prices. Unilever had
“intensified inflationary expectations among consumers” and “seriously distorted market order”,
11. Beijing said, hinting that the move was a subtle form of price collusion aimed at ensuring that other
manufacturers also follow suit.
“The government knows that it cannot cap prices forever and that at some point companies will
have to raise prices,” says Mr. Shaun Rein of China Market Research Group in Shanghai. “Companies
won‟t invest in China if they cannot turn a profit”. Unilever “is mainly mass-market, which means
narrow margins, so any cost of production and distribution has to be reflected in retail prices,” says
Mr. Matthew Crabbe, of Access Asia, a consumer consultancy, in Shanghai.
Read more…
Despite widespread government pressure on industry associations, supermarkets and individual
companies to avoid raising prices of consumer goods, Chinese inflation has remained stubbornly
high. Some consumer goods manufacturers have reacted to rising input prices by reducing package
sizes, a kind of disguised price hike. Coca-Cola recently reduced its bottle size from 600 ml to 500
ml in China, saying the move was taken to “meet the demands of consumers which change over
time in a dynamic and competitive market”.
Source: The Financial Times
CHINESE MANUFACTURING GROWTH FALTERS
A key gauge of Chinese manufacturing growth edged lower in May but remained stronger than
analysts had expected to suggest that the world‟s second-largest economy was gliding towards a
soft landing. China‟s official purchasing managers‟ index, designed to provide a snapshot of
conditions in the manufacturing sector, dipped to 52.0 last month from 52.9 in April. However, that
was a touch ahead of most forecasts. A similar survey sponsored by HSBC registered 51.6 in May,
also softer than last month but well ahead of a preliminary reading of 51.1 that unnerved markets
last week.
A reading of above 50 in PMI surveys indicates expansion, while a reading below that level indicates
contraction. With developed markets still struggling to shake off the effects of the global financial
crisis, economies from Brazil to New Zealand have become increasingly reliant on China as a
locomotive of growth. Fears that it was sputtering to a slowdown have in recent months dented
global markets and weighed on commodity prices, which are particularly sensitive to the strength of
Chinese demand.
The slowdown has to a significant extent been deliberately self-inflicted, as officials have increased
policy tightening to rein in inflation that has been running at close to a three-year high. On the
inflation front, the PMI provided a modicum of good news. The sub-index for input prices dropped
sharply to 60.3 from 66.2 a month earlier, a third consecutive decline. That fall, which mainly
reflects the easing of global commodity prices, points to reduced cost pressures for Chinese
producers.
Source: The Financial Times
POLITICS
SHENHUA WILL OWN SHARE OF MONGOLIAN RAILWAYS
Mr. Ch. Khashchuluun, Chairman of the National Development and Innovation Committee, has
revealed that China Shenhua will be one of the strategic shareholders of the newly formed
Mongolian Railways LLC, which will seek an IPO that will leave the Mongolian Government with 51%
of the stakes. Shenhua announced in March that it has won regulatory approval to build a railway in
Inner Mongolia, China, costing USD725.1 million. Mr. Khashchuluun‟s statement strongly indicates
the Mongolian railway and the one in Inner Mongolia will together form a large network.
“We need a big network of railways to access 5 places in China to transport our mineral resources
to China and to the world through the ports of China. One of the most important ports is Tianjin,”
Mr. Khashchuluun said. The Mongolian Railways will seek strategic investors and launch an IPO this
year or in 2012, and the railway project will be rushed to be finished in 2012.
Source: QuamNews
RUSSIAN RAILWAYS READY TO INVEST USD1.5 BILLION IN MONGOLIA
OAO Russian Railways, the country‟s rail monopoly, is ready to invest USD1.5 billion in Mongolia‟s
train network to help the country exploit its natural resources, Chief Executive Officer Vladimir
Yakunin has said. He also said the two countries signed an agreement during President Ts.
Elbegdorj‟s visit to Russia to boost the capital of their 50-50 joint venture, Ulaanbaatar Railway, by
USD250 million, while talks to increase Mongolia‟s share to 51 percent will continue.
Source: Bloomberg
12. MEDVEDEV WANTS RUSSIA-MONGOLIA TRADE TO GO BEYOND PETROLEUM
Presidents Ts. Elbegdorj and Dmitry Medvedev signed on Tuesday a joint statement in Moscow,
vowing to further promote ties between the two countries. Mr. Medvedev said he believes the
Russian-Mongolian trade volume should not rely on petroleum products only, calling on
diversification of bilateral trade. However, he promised to ask exporters in his country to devise
ways in which regular supply of petroleum products to Mongolia could be assured.
Source: Xinhua
RUSSIA BLAMES MONGOLIA FOR DELAY IN URANIUM JV
There has been little progress in Rosatom Corp.‟s venture with Mongolia‟s MonAtom to develop the
Dornod uranium deposit, Mr. Sergei Kiriyenko, head of Russia‟s state-owned nuclear energy holding
company, said on Wednesday. “Unfortunately, it is moving very slowly,” Mr. Kiriyenko said,
declining to elaborate. He said, "We have already signed the final framework documents, which
have yet to come into force. But it has been slightly delayed by procedural things on Mongolia's
part. We have signed an action plan, according to which the Mongolian side is required to compile a
list of property and assets it is ready to contribute to the joint venture."
Source: Bloomberg, UPI
PM THANKS U.S. FOR “ALL-ROUND SUPPORT”
Prime Minister S. Batbold told a visiting U.S. delegation Wednesday that Mongolia appreciates
Washington's comprehensive support. “Mongolia is thankful for the all-round support it has received
from the U.S.,” the Prime Minister was quoted by the government press service as telling the
visitors, led by Senator Roy Blunt, a Republican from Missouri. In reply, Mr. Blunt said that
Washington is also grateful to Ulaanbaatar for its active participation in international peacekeeping
operations.
Source: Xinhua
DP GROUP WANTS NEW ACA CHIEFS APPOINTED
The DP group in Parliament this week reviewed a report on the implementation of the Government
program between 2008 and 2012 and concluded that the Government‟s performance has not been
good, especially in areas such as industry, and infrastructure and urban development. The group
also discussed the need to appoint a new head and deputy head of the Anti-Corruption Authority.
The present incumbents, Mr. Ch.Sangaragchaa and Mr. D.Sunduisuren, have lost their appeal against
jail terms and the MPs felt Parliament should choose their successors. The group will present their
views at the next meeting of the Speaker‟s Council.
Source: Udriin Soniin
18 TRAINS CANCELED TO SAVE DIESEL FUEL
Ulaanbaatar Railway has canceled 18 trains to Bor-Undur, Zuunbayan, Shariin Gol and Nalaikh, and
reduced the number of wagons in other passenger and freight trains. This will save 60 tons of diesel
daily.
Source: News.mn
MP AGAINST HAVING NUCLEAR POWER PLANT, AS “WE ARE AN IRRESPONSIBLE PEOPLE”
Mr. Sh.Saikhansambuu, MPP MP, has warned Mongolians not to go for an atomic power plant, “as we
are irresponsible people and should not trust ourselves to take proper safeguards”. The experience
of developed countries shows that operation of atomic plants is a challenging responsibility, and the
MP says, “We should stop making tall promises on uranium usage until we attain a certain level of
national responsibility.” He blames both senior officials and media for raising unconfirmed hopes in
the popular mind and for talking without much consideration or understanding of the various issues
involved.
Source: Zuunii Medee
JUDGE EXPLAINS WHY ACA OFFICIALS’ APPEAL WAS REJECTED
The Judge General of Ulaanbaatar Court, B.Sarantuya, has sent to the Office of the President and
to the Speaker explanatory notes on her rejection of the appeals of Anti-Corruption Authority (ACA)
officials against their conviction by a primary court. She asserted that evidence had confirmed the
charges against Mr. Ch.Sangaragchaa, Mr. D.Sunduisuren and Mr. U.Altangadas –- Chief, Deputy
Chief and Head of Administration respectively of the ACA -- and that the provisions of the law had
been rightly applied. The original investigation had not strayed from the law and further
13. investigation to deal with the appeal did not produce anything to support the claims of the
convicted.
Source: News.mn
GROUP TO WORK ON RELOCATION OF GER DISTRICT HOUSEHOLDS
Minister for Road, Transportation and Urban Development Kh.Battulga told Parliament last week
that 75,000 apartments would be built in four areas in Ulaanbaatar as part of the New Creation
program. The Mayor‟s Office has already established a working group to arrange for relocation of
households from these ger districts identified for development. It will start work in June. The
Government has allocated MNT350 billion to build infrastructure to serve the new apartment blocks
and some work has begun. MNT20 billion of the total amount is likely to be spent this year. Mr.
Battulga also said that auto roads would link all province centers with one another and the Ministry
has already prepared the blueprint of building altogether 1,377 km of such roads. Another 4,500
km is planned. He added that domestic cement production is not sufficient to meet the demands of
the road construction program.
Mr. Battulga was making a statement answering questions Mr. S.Byambatsogt had asked Prime
Minister S.Batbold on implementation of the program. Mr. Byambatsogt expressed satisfaction at
the progress, but asked for more attention to be paid to the provinces.
Source: Ardiin Erkh
MONGOLIA CONNECTS TO HONG KONG WITH DIRECT FLIGHTS AND CONSULATE
Mongolia has strengthened its ties with Hong Kong through the creation of a new consulate, and the
establishment of bi-weekly direct flights to Ulaanbaatar. The links bring increased exposure to the
financing and business opportunities in the country as Mongolia seeks to attract investors to help
the nation develop its new-found wealth. Hong Kong provides the closest regional financial hub and
global expertise required to service the development of this transition.
Over the last few months, nearly every flight into Mongolia has been running at capacity, not just
with tourists, but filled with investment bankers, hedge fund managers and investors keen to
acquire a share in Mongolia‟s future. The financial base for a majority of the deals is in Hong Kong
and the business community that invests in Mongolia is also based in Hong Kong.
The opening of the new route, which is set to be very profitable for Mongolia‟s national airline
MIAT, also signifies a stepping stone towards the eventual privatization of MIAT within the next
couple of years. The non-stop route between Hong Kong and Ulaanbaatar will be served by a Boeing
737-800 aircraft every Thursday and Sunday, providing 12 seats for business class and 150 seats for
economy class. On Thursday, the flight departs Hong Kong at 11:55 a.m. and departs Ulaanbaatar at
6:25 a.m.; on Sunday, it departs Hong Kong at 1:05 p.m. and departs Ulaanbaatar at 7:40 a.m.
HKSAR passport holders can enjoy the convenience of up to 14 days visa-free access to Mongolia.
Source: China Briefing
“SOLAR GERS UNDER DEVELOPMENT”
There is good news for Mongolian nomads on both sides of the Russian-Mongolian border, as their
centuries-old traditional dwelling is about to receive a welcome upgrade. The incredibly functional
ger is easy to set up or take apart and is wonderful for escaping the cold of winter and reducing the
heat of summer. But the modern nomad often has electrical devices -- small televisions or radios,
electric lights, and so on. That has required transporting diesel generators on carts (plus canisters
for carrying fuel) as the seasons force the nomads and their herds on to greener pasture lands.
But now Russia's Republic of Tuva and Mongolia are jointly developing the "solar ger", made from
photovoltaic fibers. Top Tuva official Sholban Kara-ool announced the project, noting that the solar
fibers would be able to charge a mobile phone or flashlight and that energy accumulated over the
course of a sunny day could power televisions and electric lights during the night. Mr. Kara-ool
claimed that the project would have a huge effect on Mongolia's campaign to have "100,000 solar
gers" for its herders.
Source: Radio Free Europe
A TALE OF TWO MONGOLIAS
Recent reports in the press over ethnic tensions “in Mongolia” demonstrate there is still much to be
understood about the region. Apparently, an ethnic Mongolian herder was killed by a Han Chinese
lorry driver in an accident that has sparked unrest in the Chinese autonomous region of Inner
Mongolia. Meanwhile, Mongolia itself remains an independent country and is utterly unaffected by
the incident in China. Such reports however, tend to demonstrate poor standards of journalism, a
14. lack of appreciation of the dynamics between the two areas, and a disregard for historical fact.
That the incident was widely reported in headlines as having taken place in “Mongolia” blurs
distinctions and is indicative of lazy journalism. This article aims to describe the differences
between the two as well as shed some light on the background to the incident in question.
Many Chinese nationals still in fact regard all of Mongolia – including the sovereign nation to the
north of Beijing – as being historically Chinese. Yet the reverse is true. While Mongolia was
subsumed by the Han, it was the Mongols who were long the masters of the Steppes, creating under
successive Khans an empire that stretched across Eastern Europe, Russia, most of Central Asia,
China, Tibet and parts of India. Indeed, the very Dalai Lama himself is a symbol of Mongolian
supremacy – the title was created by Altai Khan and bestowed upon the dominant Tibetan King of
the day. The name itself is Mongolian, meaning “Ocean of Wisdom,” and is not Chinese. As Tibet
sold religious favors to the Mongolians to legitimize the latter‟s command of the region, so Tibet
fostered a type of trade in religious blessings in return for military protection. This system would
later be inherited by the Chinese dynasties as the Mongolian empire eventually crumbled, leaving
Tibet to bestow favors upon the new regional power. This only came to a halt when Chairman Mao
decided he had no need for religion and derided it as “poison”. Those acts of “suzerainty” so often
quoted by the Chinese as meaning sovereignty, were in fact introduced by the Mongols, not the
Chinese. A case for Tibet being part of Mongolia is arguably stronger than the case for the Chinese
settlement of the land, military force and might not withstanding.
Indeed, the Chinese shame of having been invaded by the Mongols is such that history itself
becomes warped – schoolchildren are taught that Genghis Khan was a Chinese Emperor. He wasn‟t,
he was a “barbarian” invader who conquered all. Beijing is still modeled – in terms of the siting of
the main Tiananmen Square, the Forbidden City and the main avenues – on the ancient Mongolian
city plans. No wonder the Chinese have such a strange attitude towards their neighbor, with
distinctions between the sovereign state and the Chinese autonomous region still being blurred
today.
Read more…
With the demise of the Genghis Khan-led Mongolian Empire, which effectively lasted for about 400
years under different Khans, China eventually gained the upper hand and subsumed Mongolia
towards the end of the 17th century under the Qing Dynasty. It was the collapse of the Qing Dynasty
in 1911 that gave the Mongolians the contemporary initiative to declare independence, but this
came just as the rise of the Bolshevik Revolution was occurring in Russia. Faced with a choice
between going cap in hand back to the Chinese or sticking with the Russians, the Mongolians chose
to be under strong Soviet influence until their withdrawal in 1991. Democratic elections were
almost immediately held.
Inner Mongolia as a region has historically been the subject of various kingdoms over the centuries
before becoming part of the Mongolian Empire under Genghis Khan. Like Mongolia, it also fell to the
Qing Dynasty in the late 1600s, but various regions of Mongolia were subjected to different rules.
Inner Mongolians, unlike those elsewhere, were forbidden to travel to other parts of what had been
the Mongolian Empire and a gradual assimilation by the Han Chinese began in a manner that did not
occur elsewhere. Mass emigration of Han Chinese began in the late Qing period with the balance of
ethnicity shifting to Han dominance, a position that remains today. With that has come settlement
and the gradual destruction of the nomadic lifestyle.
There are other curious differences between Inner Mongolians and Mongolians. Many of the former
read and write traditional Mongolian script (which still appears on RMB banknotes today) while
under the Soviets, Cyrillic was imposed and many Mongolian nationals cannot read Mongolian as a
result (however a reeducation and implementation program is now taking place in Mongolian
schools). As many Inner Mongolians over the past 300 years have intermarried with Chinese,
Mongolian nationals often regard them as inferior. Plus the advance of settled farming runs counter
to traditional Mongolian values and understanding of land management techniques.
The incident in Inner Mongolia – which appears to have been the result of an ethnic Mongolian
herdsman trying to prevent Chinese coal trucks driving across grasslands – is symptomatic of the
entirely different social structures each have come from. While many Mongolians remain nomadic,
the Chinese are essentially settlers, and put land to long term use. The conflict of cultures and
wisdom comes from the way the Chinese manage the land as opposed to the Mongolians viewpoint.
“Scientific” methods of communal farming are deemed superior to the “backward” methods of the
nomads. It‟s a struggle as old as human habitation of the grasslands themselves, but one in which,
in Inner Mongolia at least, the local ways are being pushed aside in favor of Han Chinese
settlements and “advancement”. Such divisions cause friction in Inner Mongolia, but in Mongolia
itself – where the traditional methods are still used without interference or ridicule – the wisdom of
15. the nomadic life over a sedentary existence soon becomes apparent.
The results of the mass Han experiment in Inner Mongolia has had mixed results. In Inner Mongolia,
the ethnic Mongolian‟s earn significantly less than the Han Chinese, which may indicate that on an
ethnic basis, the Mongolian nationals are already better off than their Inner Mongolian
counterparts. Such a wide disparity between per capita incomes also indicates the money is not
going back to the province. Inner Mongolia has become a feeding basket for the rest of China,
regardless of the consequences to the ethnic residents, and to an increasing extent, the imposition
of “scientific” methods of increasing production. It is, in essence, a region being stripped of its
assets and the re-sale value of them.
That those scientific methods at the expense of traditional nomadic lifestyles are heralded as
superior by the Han settlers seems beyond doubt. Yet Inner Mongolia is suffering some of the worst
desertification of grasslands in the world. The eradication of wolves for example, to protect
valuable sheep flocks is a case in point. Traditionally, Mongolians and wolves have had a love-hate
relationship. Yes, wolves take livestock, but wiping them out, as has been the Han Chinese policy,
does far more damage than good. The “scientific” evaluation of the Han settlers of wolves as a
scourge has resulted in many areas of Inner Mongolia becoming over-populated with rabbits,
resulting in a total destruction of the grassland. Once replaced, it can never be reclaimed, and the
Gobi Desert is growing in Chinese Inner Mongolia at a rate of 2.4 percent a year.
The accident that has sparked unrest in Inner Mongolia appears to have come from a similar lack of
appreciation of land management by the Han. Apparently wanting to avoid a bumpy road, a convoy
of coal trucks took a detour across nomadic pastures. It‟s the middle of lambing season right now,
and sheep will abort if disturbed, while the damage to the pastures themselves should not be
underestimated. The Mongolian who died apparently did so trying to protect the grasslands and was
run over by a truck – some say deliberately. It‟s that distinction that marks the difference in the
understanding of land management techniques between the Chinese and the Mongolians. Settlers
versus nomads, and each year the Gobi grows larger.
Back in Mongolia itself, there is little signage in Chinese and a subtle, yet profound, dislike for
many Chinese. Wary of what happened to Tibet, and warier still of the damage being caused to
millions of hectares of land to the south in Inner Mongolia, the Mongolian nationals retain their
nomadic ways, and are passionate believers in democracy, Buddhism and the ways of the land. The
link between traditional beliefs and a culture of awareness so in-tune with the land that it has
become spiritual, ultimately manifests itself in the Dalai Lama being revered here. He still visits
from time to time, and when that happens, the Chinese close the border in protest. A culture based
on settlement and science, it seems, has no place for the sentimentality of the governing forces of
nature. That is the major weakness in the Chinese attitude towards sustainable development. It
leads instead to exploitation, while the Dalai Lama is regarded as a “splittist”. What that really
means is he understands the desirability for a nomadic lifestyle in Tibet over mass settlement.
Lhasa, meanwhile, has become clogged up with fumes, and the air quality is suffering in that most
holy of cities.
The Mongolians and the Tibetans, both used to harsh terrains, understand this. Not wanting to
stress the land out, the nomadic existence still enjoyed by 50 percent of the entire national
population of Mongolia is in reality far more scientific and sustainable than the “new technologies”
of the Chinese. While that superior culture has ended up poisoning children with melamine tainted
milk from Han Chinese-run Inner Mongolian-based dairies, no such event took place in Mongolia
itself, another major dairy producer.
Faced also with the new, massive wealth that Mongolia‟s numerous mining projects will bring, the
GDP growth rate and per capita income will see Mongolia outstrip its southern neighbor in just a
few years. Mongolia‟s per capita income by 2015 is expected to reach USD10,000, higher than that
of Inner Mongolia and even surpassing the Shanghainese. For a nation of “backward, dirty,
unsophisticated peasants” (as was described to me by one Han Chinese recently) its seems that
maybe after all, the nomadic lifestyle and attention to detail as regards natural sustainability may
be the way forward.
It‟s been noticed by some Han Chinese as well. Lu Jiamin, writing under the alias Jiang Rong, wrote
about this issue in his novel “Wolf Totem”. It‟s a book all Inner Mongolian-based cadres would be
well advised to read, and makes one weep for the inevitability of the Han destruction of land
through settlement farming in areas that simply cannot sustain such treatment. When scientific
progress means milk laced with poisons, it‟s time to start looking at the traditional alternatives.
The two Mongolias could not be more different.
Source: 2point6billion.com
16. ANNOUNCEMENTS
"MONGOLIA: CAPITAL RAISING AND INVESTMENT", ULAANBAATAR, JUNE 7-8
This annual Frontier Securities conference provides a perfect opportunity for those interested in
exploring the latest developments in Mongolia's business environment to receive direct information
from key sources. Investors will be able to discover lucrative opportunities and Mongolian
companies will learn of various methods of raising capital abroad. Senior managers from the Korea
Stock Exchange, the Hong Kong Stock Exchange, the Australian Securities Exchange, Deutsche Börse
AG and Tokyo AIM will share their knowledge and insights regarding capital raising with the
audience.
The other major theme at the event will be investment opportunities in Mongolian mining, real
estate and other expanding sectors. Confirmed participants include investment banks and investors
such as BOCI, CICC, Citigroup, J.P. Morgan, Quam Asset Management Fund, as well as professional
entities such as Hogan Lovells, American Appraisal, Moody's Investors Service and CRU International.
_________________________________________________
CORPORATE GOVERNANCE FORUM, ULAANBAATAR, JUNE 13
The Fourth Annual Corporate Governance Forum, organized by the Corporate Governance
Development Center will bring together Mongolian business leaders and policy makers to identify
and stress the linkages between corporate governance and capital market development. It will also
present an open platform to discuss a number of topical issues relevant to the current state of
corporate governance reform, and to help reach al consensus on the necessary policy and corporate
level reform agenda. The forum will end with a resolution and an action statement by the
participating business leaders on policies and legal and regulatory frameworks to remedy the
current corporate governance challenges in Mongolia.
The key discussion points would be:
- Country experiences on the role of stock exchanges in corporate governance
- Corporate governance reform process: progress and challenges for State-owned enterprises
- Corporate governance in the banking sector: Impact of the new Banking Act, issues in CG
assessment.
Business Council of Mongolia is an Organizing partner of this forum. Requests for registration should
be made to Ms. Tsend-Ayush Tel: 99105111, Email: tsendee51@yahoo.com or tsend-
ayush.t@cgdc.org.mn.
___________________________________________
CHURCHILL’S TRAINING WORKSHOP, ULAANBAATAR, JUNE 14, 15, 28
Churchill's is organizing, with BCM support, a training workshop on how to develop and implement
the Environmental Management System and the Occupational Health & Safety Administration
System. Designed for company directors and senior managers, the seminar will provide an overview
of the two international standards, and include templates and procedures from both standards for
use in the development of working company systems.
Delegate registration fee for three days is MNT120,000 (including refreshments). The Seminar dates
will be June 14,15 and 28, 2011. It will be conducted in English & Mongolian at the Ministry of
Agriculture Training Center. Registration: by email, churchills@magicnet.mn, Online
http://www.isochurchills.com, Tel: 976-70111956 – 99731454 (E-M), 99151124 (E).
________________________________________________
INTRODUCTORY COURSE ON ARTIFICIAL NEURAL NETWORKS, ULAANBAATAR, JUNE 16-17
The Mongolian University of Science and Technology and the American Center for Mongolian Studies
are co-sponsoring a short course on June 16-17 by Dr. Rajive Ganguli, Professor and Chairman of
Mining Engineering at University of Alaska-Fairbanks, USA. This introductory course is on artificial
neural
networks with special focus on mining engineering. It will present best practices of neural network
modeling, and will use an Excel based neural network software developed specifically for this
course by the instructor. The areas to be covered include introduction to neural networks,
architecture selection, activation functions, topology, and neural network architecture including
training algorithms.
Registration requests, along with a fee of USD100, will be received in Room 23 at the Second
building in MUST from June 1 to June 12. For more information, call 99082864 or 99015671, and
Еmail: altantuya@must.edu.mn, ariunbolorp@must.edu.mn
17. ________________________________________________
COALTRANS MONGOLIA, ULAANBAATAR, JUNE 21-22
Coaltrans Mongolia will be a unique opportunity to see and understand at first hand the
development of one of the last remaining coal frontiers. It will address:
- Spectacular growth prospects for the Mongolian economy, coming on the back of the development
of the country‟s wealth of mineral assets with reserves estimated in value of USD1.3 trillion.
- Opportunities that many large scale coal investments offer – in particular the Tavan Tolgoi coal
deposit containing 6.4bt of coking and thermal coal which will be privatized.
- The prospects for exports of 25-40mt per annum of coal into China and in the longer term through
Russia to Pacific markets.
- The considerable challenges facing Mongolian transport infrastructure in delivering coal exports
across the border into China‟s burgeoning steel industry and power sector.
- The challenge of operating coal mines in extreme weather conditions as well as the scarcity of
water supply.
Among the speakers will be:
- D. Zorgit, Minister of Mineral Resources and Energy
- B.Enebish, Executive Director, Erdenes MGL
- D.Batkhuyag, Chairman, The Minerals Authority of Mongolia
- G.Battsengel, Chief Executive Officer, Mongolian Mining Corporation.
Business Council of Mongolia is a Supporting Organization of the event.
Enquiries about speaking opportunities are to be addressed to Gerard Strahan at
gstrahan@euromoneyplc.com, and about benefits available in relation to sponsorship opportunities
to David-Griffiths, at cdavid-griffiths@euromoneyplc.com.
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“MM TODAY” on MNB-TV, Fridays at 21:15
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with
BCM on “MM Today”. This English news program is aired every Friday for 10 minutes and is
scheduled for 21:15 tonight. Tune in to watch this program that reports stories from today‟s BCM
NewsWire.
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“HOW THEY SEE US” on BTV on June 08th at 19:05
Thursday, June 09 is the next date for “How they see us”, BTV‟s fortnightly program in Mongolian
started in cooperation with BCM. The 15-minute program will be from 19:05, and will cover
reports on Mongolia in international media, featured in the BCM NewsWire and other sources.
___________________________________________
NEW POSTINGS ON BCM WEBSITE'S 'PRESENTATIONS' AND 'MONGOLIA REPORTS'
„Presentations‟ from BCM‟s 5 monthly meetings in 2011, summaries of the key addresses at Eurasia
Capital‟s Mongolian Investment Conference on May 25, Jim Dwyer of BCM‟s interview on Mongolia
National Broadcasting‟s “Face to Face” on May 16, and the very successful Mines and Money Hong
Kong‟s „Mongolia Investment Summit‟ morning on March 25 as well as „Mongolia Reports‟ including
the Polit Barometer-May 2011 from Sant Maral Foundation and the U.S. Embassy Mongolia‟s
Commercial Section‟s “2011 Mongolia Investment Climate Statement” are among the presentations
posted on BCM's website (www.bcmongolia.org) in the "Resource, Presentations" and “Resource,
Mongolia Reports” sections for your review.
We are now posting some news stories and analyses relevant to Mongolia on the BCM website's
„Mongolian Business News‟ as they come, instead of waiting until Friday to put them all together in
the weekly NewsWire. The NewsWire will, however, continue to be issued on Friday, and will
incorporate items that are already on the home page, so that it presents a consolidated account of
the week‟s events.
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19. INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
April 30, 2011 *5.5% [source: NSOM]
*Year-over-year (y-o-y)
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
CURRENCY RATES – June 1, 2011 (The Central Bank rates for June 2 were not posted until the
time work on this issue was completed.)
Currency Name Currency Rate
US dollar USD 1,245.35
Euro EUR 1,794.36
Japanese yen JPY 15.26
British pound GBP 2,056.88
Hong Kong dollar HKD 160.11
Chinese Yuan CNY 192.20
Russian Ruble RUB 44.55
South Korean won KRW 1.15
Disclaimer: Except for reporting on BCM‟s activities, all information in the BCM NewsWire is
selected from various news sources. Opinions are those of the respective news sources.