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 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 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 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.
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 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 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 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 news from the Business Council of Mongolia newsletter. It highlights several stories:
- Ivanhoe Mines CEO Robert Friedland says revenue from byproducts at the Oyu Tolgoi mine will offset production costs and the mine is ahead of schedule.
- The Mongolian government has acquired over 263,000 hectares of land around Oyu Tolgoi for infrastructure development.
- Analysts are bullish on the prospects of Petro Matad due to its exploration success, strong management team, and large land holdings in Mongolia.
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 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 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.
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 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 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 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 news from the Business Council of Mongolia newsletter. It highlights several stories:
- Ivanhoe Mines CEO Robert Friedland says revenue from byproducts at the Oyu Tolgoi mine will offset production costs and the mine is ahead of schedule.
- The Mongolian government has acquired over 263,000 hectares of land around Oyu Tolgoi for infrastructure development.
- Analysts are bullish on the prospects of Petro Matad due to its exploration success, strong management team, and large land holdings in Mongolia.
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.
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 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 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
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 summarizes news from the Business Council of Mongolia newsletter, including highlights on business, economic, and political news in Mongolia. Some of the business news included SouthGobi shares falling due to fears a deal with Chalco would be derailed, an investigation into Ivanhoe Mines sinking its stock price, and Draig Resources reporting its thickest coal seams yet at its Teeg license. Economic news included updates on roads development, food safety, and China looking to Mongolia for iron ore. Political news included progress on a foreign investment law and the election process.
The document summarizes business and economic news from Mongolia. It discusses Rio Tinto's Oyu Tolgoi mine project and potential delays in approval for expansion. It also mentions Mongolian Mining Corp. seeking an extension on debt repayment due to low coal prices. Additionally, it provides details on Xanadu Mines receiving support for a proposed acquisition of the Kharmagtai copper project.
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 summarizes business and economic news from Mongolia. Key points include:
- Investors have agreed to amend the Oyu Tolgoi investment agreement to make financing conditions easier for Mongolia.
- Ivanhoe Mines and BHP Billiton discovered a new zone of copper and gold mineralization near the Oyu Tolgoi mine.
- Petro Matad plans to resume drilling for oil in eastern Mongolia next month after suspending operations over the winter.
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
The document provides business and economic news highlights from Mongolia. It discusses several mining contracts and projects, including MacMahon and BBM Operta receiving a USD 500 million contract for the Tavan Tolgoi coal mine. It also mentions firms like Sharyn Gol raising funds, TVN discovering coal at Nuurst, and Kincora uncovering higher grade copper at Bronze Fox. The highlights cover economic topics like Germany advising Mongolia's economy and direct flights to the US potentially beginning in 2013.
The document summarizes business and economic news from Mongolia. It reports that Ivanhoe Mines completed a $1.8 billion rights offering to finance the Oyu Tolgoi project. It also reports that Aspire Mining appointed a new director for its Ovoot coking coal project and that Altan Rio closed a 90% earn-in deal for a gold project. Additionally, it provides updates on several other mining and energy projects 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 is a newsletter from the Business Council of Mongolia that provides news highlights on business, economic, and political issues in Mongolia and related topics.
- Some of the business news includes SouthGobi Resources completing an investment in Aspire Mining, Khan launching international arbitration against the Mongolian government, and Sedgman securing new contracts from Energy Resources.
- Economic highlights cover inflation increasing to 13%, livestock numbers decreasing, and industrial output growing. Political news mentions Russia and Mongolia forming a joint uranium mining company and Mongolia inviting Arab investments.
The document summarizes news from the Business Council of Mongolia newsletter. Key points include:
- The US Export-Import Bank authorized a $500 million loan to support US exports for use at the Oyu Tolgoi copper-gold mine in Mongolia.
- A state commission in Mongolia approved the copper concentrator at the Oyu Tolgoi mine.
- Prophecy Coal Corp. shares surged after announcing a 25-year power tariff agreement for its coal mine mouth power plant project in Mongolia.
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:
- Mining contractor Macmahon flags potential legal action against Erdenes Tavan Tolgoi over a disputed mining contract worth hundreds of millions of dollars.
- Turquoise Hill Resources files an updated technical report for the Oyu Tolgoi copper mine in Mongolia.
- The Mongolian government approves plans to construct a $300-400 million copper smelting plant in Khentii province, choosing the location of Bor-Undur soum.
The document summarizes business and economic news from Mongolia. It discusses progress in negotiations between Mongolia and Rio Tinto regarding development of the Oyu Tolgoi copper and gold mine. It also mentions several Mongolian mining and infrastructure projects, including positive coal exploration results at Nuurstei, completion of a paved highway to transport coal, and planned railway construction. Additionally, it notes several business agreements signed, including between Diasoft and Trade and Development Bank of Mongolia regarding banking software and between First Frontier Capital and Golomt Bank regarding promoting foreign investment in Mongolia.
The document provides news highlights from the Business Council of Mongolia covering business, economic, and political topics. In the business section, it discusses Khan Resources losing an appeal on uranium mining licenses, the launch of a new iron ore venture by Hunnu Coal's chairman, mining ending at the Boroo gold mine with 250 layoffs, work progressing ahead of schedule at the Oyu Tolgoi copper and gold mine, and Petro Matad planning to drill up to two additional exploration wells on Block XX.
The document summarizes news from the Business Council of Mongolia newsletter dated July 4, 2014. It covers several topics:
- The Oyu Tolgoi copper mine director said the tax dispute with the government should not delay $4 billion in project financing for expansion. Meanwhile, the feasibility study is still delayed.
- Oyu Tolgoi and the government signed an agreement for the mine to receive power from a planned coal-fired power plant at the Tavan Tolgoi coal mine.
- Viking Mines signed a non-binding agreement with the Erdenet Power Plant for future coal supply from its Berkh Uul coal project, its second such agreement with a Mongolian authority.
- 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 the September 26, 2014 issue of the Business Council of Mongolia NewsWire. It includes the following highlights:
- Eight new members joined the Business Council of Mongolia, including companies in facilities management, tourism, accounting, and cycling.
- Upcoming events were announced, including a Risk Management and Insurance Conference in October focusing on risks in the mining industry and political/trade risks.
- Speakers at the Business Council of Mongolia monthly meeting discussed challenges in the mining industry due to economic pressures, the need for cost-cutting, and support for small start-up companies through business accelerators.
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.
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 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 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
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 summarizes news from the Business Council of Mongolia newsletter, including highlights on business, economic, and political news in Mongolia. Some of the business news included SouthGobi shares falling due to fears a deal with Chalco would be derailed, an investigation into Ivanhoe Mines sinking its stock price, and Draig Resources reporting its thickest coal seams yet at its Teeg license. Economic news included updates on roads development, food safety, and China looking to Mongolia for iron ore. Political news included progress on a foreign investment law and the election process.
The document summarizes business and economic news from Mongolia. It discusses Rio Tinto's Oyu Tolgoi mine project and potential delays in approval for expansion. It also mentions Mongolian Mining Corp. seeking an extension on debt repayment due to low coal prices. Additionally, it provides details on Xanadu Mines receiving support for a proposed acquisition of the Kharmagtai copper project.
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 summarizes business and economic news from Mongolia. Key points include:
- Investors have agreed to amend the Oyu Tolgoi investment agreement to make financing conditions easier for Mongolia.
- Ivanhoe Mines and BHP Billiton discovered a new zone of copper and gold mineralization near the Oyu Tolgoi mine.
- Petro Matad plans to resume drilling for oil in eastern Mongolia next month after suspending operations over the winter.
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
The document provides business and economic news highlights from Mongolia. It discusses several mining contracts and projects, including MacMahon and BBM Operta receiving a USD 500 million contract for the Tavan Tolgoi coal mine. It also mentions firms like Sharyn Gol raising funds, TVN discovering coal at Nuurst, and Kincora uncovering higher grade copper at Bronze Fox. The highlights cover economic topics like Germany advising Mongolia's economy and direct flights to the US potentially beginning in 2013.
The document summarizes business and economic news from Mongolia. It reports that Ivanhoe Mines completed a $1.8 billion rights offering to finance the Oyu Tolgoi project. It also reports that Aspire Mining appointed a new director for its Ovoot coking coal project and that Altan Rio closed a 90% earn-in deal for a gold project. Additionally, it provides updates on several other mining and energy projects 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 is a newsletter from the Business Council of Mongolia that provides news highlights on business, economic, and political issues in Mongolia and related topics.
- Some of the business news includes SouthGobi Resources completing an investment in Aspire Mining, Khan launching international arbitration against the Mongolian government, and Sedgman securing new contracts from Energy Resources.
- Economic highlights cover inflation increasing to 13%, livestock numbers decreasing, and industrial output growing. Political news mentions Russia and Mongolia forming a joint uranium mining company and Mongolia inviting Arab investments.
The document summarizes news from the Business Council of Mongolia newsletter. Key points include:
- The US Export-Import Bank authorized a $500 million loan to support US exports for use at the Oyu Tolgoi copper-gold mine in Mongolia.
- A state commission in Mongolia approved the copper concentrator at the Oyu Tolgoi mine.
- Prophecy Coal Corp. shares surged after announcing a 25-year power tariff agreement for its coal mine mouth power plant project in Mongolia.
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:
- Mining contractor Macmahon flags potential legal action against Erdenes Tavan Tolgoi over a disputed mining contract worth hundreds of millions of dollars.
- Turquoise Hill Resources files an updated technical report for the Oyu Tolgoi copper mine in Mongolia.
- The Mongolian government approves plans to construct a $300-400 million copper smelting plant in Khentii province, choosing the location of Bor-Undur soum.
The document summarizes business and economic news from Mongolia. It discusses progress in negotiations between Mongolia and Rio Tinto regarding development of the Oyu Tolgoi copper and gold mine. It also mentions several Mongolian mining and infrastructure projects, including positive coal exploration results at Nuurstei, completion of a paved highway to transport coal, and planned railway construction. Additionally, it notes several business agreements signed, including between Diasoft and Trade and Development Bank of Mongolia regarding banking software and between First Frontier Capital and Golomt Bank regarding promoting foreign investment in Mongolia.
The document provides news highlights from the Business Council of Mongolia covering business, economic, and political topics. In the business section, it discusses Khan Resources losing an appeal on uranium mining licenses, the launch of a new iron ore venture by Hunnu Coal's chairman, mining ending at the Boroo gold mine with 250 layoffs, work progressing ahead of schedule at the Oyu Tolgoi copper and gold mine, and Petro Matad planning to drill up to two additional exploration wells on Block XX.
The document summarizes news from the Business Council of Mongolia newsletter dated July 4, 2014. It covers several topics:
- The Oyu Tolgoi copper mine director said the tax dispute with the government should not delay $4 billion in project financing for expansion. Meanwhile, the feasibility study is still delayed.
- Oyu Tolgoi and the government signed an agreement for the mine to receive power from a planned coal-fired power plant at the Tavan Tolgoi coal mine.
- Viking Mines signed a non-binding agreement with the Erdenet Power Plant for future coal supply from its Berkh Uul coal project, its second such agreement with a Mongolian authority.
- 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 the September 26, 2014 issue of the Business Council of Mongolia NewsWire. It includes the following highlights:
- Eight new members joined the Business Council of Mongolia, including companies in facilities management, tourism, accounting, and cycling.
- Upcoming events were announced, including a Risk Management and Insurance Conference in October focusing on risks in the mining industry and political/trade risks.
- Speakers at the Business Council of Mongolia monthly meeting discussed challenges in the mining industry due to economic pressures, the need for cost-cutting, and support for small start-up companies through business accelerators.
The Baganuur coal mine in Mongolia is seeking to expand its operations and capacity. It has proven coal reserves of over 700 million tons. The mine currently produces around 3 million tons annually but needs to increase production to 6 million tons by 2020 to meet growing demand from power plants in the central region. To do this, the mine plans to invest over $130 million USD to modernize equipment, transition to more efficient surface mining, and expand conveyor transport systems. This investment is expected to lower production costs, increase reserves, and have a positive net present value and internal rate of return that would justify the funds. The mine aims to partially finance this expansion through an initial public offering on the domestic stock exchange while maintaining majority
The document summarizes political trends from a June 2012 survey in Mongolia. It finds that over 80% of respondents planned to participate in the 2012 parliamentary elections. The ruling Democratic Party polled the highest at around 42%. The document outlines two scenarios for how parliamentary seats may be distributed as a result, with the Democratic Party projected to win between 40-49 seats out of 76 total.
Mongolia's economy and foreign investment are heavily dependent on the Oyu Tolgoi copper and gold mine project. The project accounted for over 50% of foreign investment and significantly impacted GDP growth and budget revenues between 2009-2012. However, Mongolia now faces challenges in attracting further investment for exploration and mining. Mongolian mining companies' stock prices on global exchanges have declined 60-70%, and investors that operated at a loss are no longer interested in investing. Additionally, Mongolia faces high risks that unstable policies could increase interest rates on its $1.5 billion bond issued and planned $3.5 billion in future bonds.
The document summarizes business and economic news from Mongolia. Some of the key points include:
- Mongolia and Rio Tinto have resolved some disputes around the Oyu Tolgoi copper mine expansion, reducing outstanding issues from 30 to 15. However, approving project financing remains a hurdle.
- French energy giant Areva signed an agreement with Mongolia's Mon-Atom to develop two uranium mines in the Gobi Desert in cooperation with Mitsubishi.
- GDF SUEZ signed an MOU with Newcom to develop future renewable energy projects in Mongolia, building on Newcom's existing wind farm.
- A little-known Mongolian company won an auction
- James Passin of Firebird Management gave a presentation on investment opportunities in Mongolia amid its economic crisis and liquidity problems.
- Mongolia experienced a stock market bubble in 2011 that burst in 2012-2013 due to various economic and political issues. All listed Mongolian companies saw their stock prices crash.
- However, Passin argued Mongolia is well-positioned for recovery, citing new supportive laws and policies, the upcoming OT underground mining project, and international support for Mongolia's liquidity. He saw opportunities in distressed Mongolian assets like stocks and debt.
- Passin's goal is acquiring controlling stakes in Mongolian companies to introduce modern practices and finance investments to unlock value for
The document provides an overview of the Mongolian coal mining industry, opportunities, and challenges. It discusses:
1) Mongolia has become China's largest supplier of coking coal, with exports growing significantly in recent years to meet China's increasing demand. Mongolian coal mines have geological advantages of shallow, thick, high-quality seams close to China.
2) Mongolian Mining Corporation is the largest coal producer in Mongolia, operating two open-pit coking coal mines and related infrastructure like washing plants and roads. Safety and production have improved at its mines.
3) The industry faces challenges of being landlocked, having underdeveloped infrastructure, and needing skilled labor. Opport
The document summarizes the services provided by IEEC, a mining consultancy firm. IEEC was established in 1992 and has experience working in various countries on coal, precious metals, and iron ore projects. They have over 1,000 staff with expertise in exploration, resource evaluation, feasibility studies, and operational assistance. The presentation provides examples of how IEEC has added value to clients' mining projects in Russia and Mongolia by improving exploration programs, development strategies, mine designs, and project valuations. IEEC joined the Business Council of Mongolia to contribute their technical expertise to the country's expanding mining sector.
Sharyn Gol JSC is a Mongolian coal mining company that operates the oldest coal mine in Mongolia. The company is planning a major expansion to increase production from 0.8 million tonnes per year currently to 2.5 million tonnes per year. Recent drilling has delineated large new JORC-compliant coal resources totaling 324 million tonnes that can support increased production. The company's rail spur provides access to both domestic and international coal markets in China and Russia. Sharyn Gol JSC aims to become a leading Mongolian coal producer and exporter by capitalizing on strong Asian demand for thermal coal.
The document summarizes business and economic news from Mongolia. It reports that Franklin Templeton has suffered investment losses from bets on Mongolian bonds as the country's mining and economy struggles. It also reports that Mongolian Mining Corp hired financial advisors as it faces debt repayments and its bonds have been downgraded to CCC- by S&P on risks of default. Additionally, it provides brief updates on various other Mongolian companies and economic indicators.
Unlocking the economic potential of Mongolia's resources sectors.
- Mongolia's GDP is predicted to double in 5 years due to new mining projects and infrastructure investments totaling $39-52 billion.
- Funding will come from foreign investment, domestic banking sector growth, stock and debt markets, sovereign borrowing, and other sources. Realizing this potential requires political stability, strong legal systems, and prudent fiscal policies.
- The document summarizes business and economic news from Mongolia. It discusses several mining companies expanding operations in Mongolia, including Centerra Gold and Xstrata Coal. It also mentions the European Bank for Reconstruction and Development planning to increase investments in Mongolia by 50% in industries like mining, retail, and tourism. Additionally, it provides updates on Mongolia's rankings in terms of ease of doing business and notes a sharp fall in the country's budget surplus for the first 8 months of 2008.
This document provides an overview of the insurance industry in Mongolia and details about Mandal Insurance. Some key points:
- The insurance industry in Mongolia is small, accounting for less than 1% of the financial sector, but has grown significantly in recent years.
- Mandal Insurance has experienced strong growth since being founded in 2011, increasing its gross written premium 15 times and nearly doubling its reserve funds every three years.
- Mandal aims to "reinvent insurance" in Mongolia by developing innovative products tailored to client needs, such as flexible premium payments and a new health insurance product.
- The company focuses on ethical practices like avoiding kickbacks and investing in client services rather than just reselling
The document provides a summary of business, economic, and political news from Mongolia. It discusses several topics, including the Prime Minister prioritizing work on two large mining deposits, a Japanese company obtaining rights to explore three uranium mines, five companies being chosen to conduct oil exploration, and a Mongolian bank partnering with American Express to enable its cardholders to access the bank's ATM network. It also mentions the appointment of a new Central Bank President, plans to import more fuel from Kazakhstan, and a mining company selling its metals division to another company.
The document summarizes news from the Business Council of Mongolia newsletter. Key points include:
- Parliament will discuss draft changes to laws on taxes and infrastructure to facilitate an investment agreement for the giant Oyu Tolgoi copper/gold mine.
- There is disagreement between mobile phone companies in Mongolia over rates, disrupting service for over 200,000 users.
- Details revealed of the revised Oyu Tolgoi investment draft agreement, which would abolish the controversial 68% windfall profits tax and stabilize other taxes.
- A mining industry seminar criticized recent laws seen as hampering the mining sector without economic benefit.
This document summarizes innovations in Mongolia and identifies areas for improvement. It notes that while Mongolia has an Innovations Law and allocates some funding for research and development (R&D), the funding is low at 0.27% of GDP and not enough goes to applied research. Other issues include a lack of an Innovations Fund, insufficient cooperation between research institutions and the private sector, and too few researchers. The document recommends that Mongolia establish a Foundation Mongolia modeled after Chile's public-private partnerships, with at least $50 million in initial state funding and private sector management of research consortiums to better support innovations.
1. TenGer Financial Group is a diversified financial services group in Mongolia spanning microfinance, insurance, lending, savings, and payments.
2. As the Mongolian economy and financial sector grows, TenGer is well positioned to track this growth as it offers a full range of financial services.
3. Investing in financial institutions like TenGer provides exposure to Mongolia's economic development, but requires conditions like strong corporate governance, professional management, and balanced ownership to be met.
Voyager Resources is an ASX-listed company exploring for copper in Mongolia. It has three copper and copper-gold projects, including its flagship Khul Morit project which shows potential to host a significant copper porphyry system based on recent drilling results and geological analysis. The company is well financed with $4 million in cash and plans to restart diamond drilling at Khul Morit in late 2012 to test priority copper porphyry targets. Mongolia is anticipated to become a substantial copper producer, and Voyager Resources is positioned to benefit from investment interest in copper projects there.
Modun Resources is developing the Nuurst Thermal Coal Project in Mongolia to supply coal for power generation and reduce air pollution in Ulaanbaatar. The project has a JORC-compliant resource of 478 million tonnes and initial mining plans target 1 million tonnes of raw coal and 250,000 tonnes of cleaner-burning dried coal briquettes annually. The project is well-located near existing infrastructure and customers in Ulaanbaatar. Modun aims to become a long-term, reliable domestic coal supplier and help Mongolia meet its increasing energy demands and air quality targets in a sustainable manner.
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 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 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 business news from Mongolia, including several mining companies. SouthGobi Resources aims to secure a second coal mining license by year-end. Erdene Resource will apply for a molybdenum-copper mining license. Ivanhoe Mines reported increased revenue but wider losses in Q2 2010. Prophecy Resource reported the Chandgana Khavtgai project contains over 1 billion tons of coal. Canadian mining companies face challenges but also see success in Mongolia's emerging economy and significant mineral deposits, led by Ivanhoe Mine's giant Oyu Tolgoi copper-gold mine.
This document provides a summary of news from the Business Council of Mongolia for May 18, 2012. It includes highlights on business, economic, and political news. For business, it summarizes news about mining companies like Erdenes-TT, Ivanhoe Mines, SouthGobi Resources, and Centerra Gold. It also discusses plans from Mongolian companies to produce synthetic diesel from coal. For the economy, it covers secondary bond trading, tax revenue from resources, and threats from climate change. For politics, it mentions new legislation on foreign investment and elections.
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 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 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
This document is a newsletter from the Business Council of Mongolia that provides news highlights from Mongolia's business sector in January 2012. It summarizes that MMC surpassed its 2012 coal production target. It also reports that grieved workers detained SouthGobi Sands' COO and that the EBRD financed Vitafit Group's improved production capabilities. Additionally, it mentions that commodities giant Trafigura is looking to acquire Mongolian coal assets to capitalize on Mongolia's importance as a supplier to China.
The document is a newsletter from the Business Council of Mongolia that includes the following highlights:
- Several mining companies announced significant mineral resource estimates at their Mongolian properties, including Haranga Resources reporting 32.8 million tons of iron ore and Moly World reporting 203.4 million tons of molybdenum ore.
- Power remains an issue for the Oyu Tolgoi mine as agreements have not yet been reached to import electricity from China, potentially delaying production timelines.
- South Korea wants at least a 10% stake in the Tavan Tolgoi coal mine project and does not think the previously discussed 36% stake is sufficient.
- The newsletter also provides various other
The document provides a summary of business and economic news from Mongolia. Some of the key points include:
- Final demands from Mongolia regarding the Oyu Tolgoi investment agreement are almost ready and an agreement is possible before Naadam in July.
- Ivanhoe Mines shares jumped on reports that the Mongolian parliament may approve the Oyu Tolgoi agreement this month.
- CNNC International acquired a 69% stake in Western Prospector, a uranium exploration company.
- Entree Gold is compiling results from its spring exploration program including expanding resources at its Heruga copper-gold deposit.
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.
This document provides a summary of business and economic news from Mongolia in Issue 160 dated March 25, 2011 from the Business Council of Mongolia newsletter. Key highlights include:
- Prophecy Resource is ready to export 520,000 tons of coal from its Ulaan Ovoo mine in Mongolia to Russia and other countries starting in April.
- Hunnu Coal reports majority interests in 13 coal projects in Mongolia with total JORC resources of 414 million tons reported so far from its projects.
- Assay results from Aspire Mining's Ovoot Coking Coal Project indicate the coal has a very high theoretical yield to produce a product with low ash content and high coking
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.
This document provides a summary of business and economic news from Mongolia. It discusses that Mongolia Mining Corp. plans to pursue acquisitions after its successful IPO in Hong Kong. It also mentions that the Trade & Development Bank plans a $150 million bond sale. Additionally, it provides updates on mining companies such as Energy Resources, SharynGol, Petro Matad, and Oyu Tolgoi.
The document is a newsletter from the Business Council of Mongolia covering business, economic, and political news from Mongolia in May 2011. Some of the top business stories include Petro Matad finding hydrocarbons at a new well, SouthGobi Resources preparing for slowing Chinese coal demand, and Eznis Airways signing a strategic partnership with Japan's largest airline. Construction at the Oyu Tolgoi mine was 15% complete at the end of March. Several mining companies also reported financial results for the first quarter of 2011. On the economic front, coal hauling resumed and the government wanted to accelerate a new power plant project. In politics, prosecutors forwarded charges against a former official to the anti-corruption agency.
This document provides a summary of business and economic news from Mongolia in Issue 130 of the Business Council of Mongolia NewsWire dated August 6, 2010. Key highlights include:
- Khan Resources winning a second court case reinstating its uranium exploration license in Mongolia.
- Petro Matad's shares rising after tests confirm the presence of oil in its first exploration well and it beginning a three-well drilling campaign.
- Ivanhoe Mines having "interesting discussions" with potential new strategic investors after easing restrictions on its shareholder registry.
- The EBRD and Khan Bank signing Mongolia's first co-financing facility agreement worth $10 million to expand Khan Bank's
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 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 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.
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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1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 175, July 8 2011
BCM wishes all readers of the NewsWire a happy Naadam.
Our next issue will be on July 22.
NEWS HIGHLIGHTS:
Business:
Hunnu Coal doubles Unst Khudag thermal coal resource;
SouthGobi receives mining license for Soumber Deposit;
Erdene receives NI 43-101 compliant report updating Zuun Mod reserve estimates;
Guildford reports further significant coal intersections in Mongolia;
Voyager Resources starts drilling at Khul Morit;
Mongolia Growth Group achieves two milestones in June;
Mongolia Energy says concessions unaffected by mining ban law;
4 oil companies fined for selling to card holders only;
MIAT sold 2,000 tickets knowing there would be no special flights from Seoul;
Khan Mongolia Equity Fund to be launched in August.
Economy:
Shenhua, Russia, Peabody selected to develop Tavan Tolgoi;
Enebish says choice not final yet, while S. Korea says it is "unclear and unfair";
Rosnefti raises fuel prices, Mongolia abolishes excise tax;
Government seeks partner to set up oil refinery in Choibalsan;
China ready to sell petroleum only under long-term agreement;
Miners welcome move to diversify oil import sources;
Central Bank approves measures to develop domestic FX market;
Central Bank unhappy with growth rate of buying gold;
MSE gears up for investor education effort;
Investment banker certain Mongolian firms will see transparency as asset, not burden;
Russian company to upgrade power station in Darkhan, with German loan to Mongolia;
State to spend MNT1.5 billion on post-mining reclamation;
Water used in mining, agriculture likely to cost more;
Plan for low-fare Korean airline to serve Mongolia;
Export of Mongolian fluorspar to rise;
UK travel group says first Mongolia trade mission “a huge success”;
Increased demand for executive facilitation services in Mongolia;
China manufacturing at lowest in 2 years;
Extent of local debts in China laid bare;
High-speed rail poised to alter China, freeing old tracks for freight.
Politics:
DP drops referendum idea, wants 38:38 election system, but boycotts Parliament;
Parliament has no official information on ACA chief’s conviction;
Enkhbayar wants to “hand over Tavan Tolgoi to the people”;
2. Green Party leader denies charges of financial impropriety;
MPRP calls for national unity, lists priorities;
MNT160 million more needed to finish work on Sukhbaatar and Choibalsan monuments;
Taking away parking space deliberate policy;
Two who plant trees to make South Gobi more hospitable.
*Click on titles above to link to articles.
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BUSINESS
HUNNU COAL DOUBLES UNST KHUDAG THERMAL COAL RESOURCE
Hunnu Coal has doubled the resource for its Unst Khudag thermal coal project to 676 million tons.
Around 540.9 million tons of this falls within the measured category, 59.9 million tons in the
indicated category, and a further 75.6 million tons are in the inferred category. Further upgrades to
the Joint Ore Reserve Committee (Jorc) resource model are expected later in the year, with
additional drilling currently under way.
Hunnu reported that it was also developing a scoping study for the mine, from where between 10
million and 20 million tons of coal a year would be delivered to the Chinese border, over a 20-year
life-of-mine. The developer said that the company was in advanced discussions for offtake
agreements with a number of potential buyers.
The latest resource drilling has brought Hunnu‘s total Jorc resource across all its Mongolian projects
to around 766 million tons, with an initial estimate currently being calculated for the Altai Nuurs
hard coking coal project, which has an exploration target of between 250 million and 500 million
tons. A resource upgrade is also currently being completed for the Tsant Uul project, which
currently hosts a Jorc resource of 90 million tons.
3. Source: Mining Weekly
SOUTHGOBI RECEIVES MINING LICENSE FOR SOUMBER DEPOSIT
The Mineral Resource Authority of Mongolia has issued mining license MV-016869 to SouthGobi Sands
LLC, a wholly-owned Mongolian operating subsidiary of SouthGobi Resources Ltd. The new license
pertains to the resource previously disclosed by the company under NI 43-101 standards as the
Soumber Deposit. The deposit is approximately 20 km east of SouthGobi's flagship Ovoot Tolgoi
Mine. An independent NI 43-101 resource estimate for Soumber, prepared in January, 2011,
estimates 61.4 million tons of measured and indicated resources and 65.8 million tons of inferred
resources. The new 10,992.92 hectare mining license is granted for an initial term of 30 years with
an option for two 20-year extensions.
"With the granting of the Soumber mining license, we can immediately finalize plans for mine
development at Soumber," said Mr. Alexander Molyneux, President and CEO. "Soumber will likely
have an integrated coal processing facility and will require around two years of development for
first clean coal production." SouthGobi plans to complete a Pre-Feasibility Study on Soumber and
include the inaugural reserve report when it updates resources and reserves during 2012.
Source: SouthGobi Resources Ltd.
ERDENES RECEIVES NI 43-101 COMPLIANT REPORT UPDATING ZUUN MOD RESERVE ESTIMATES
Erdene Resource Development Corp. has received a National Instrument 43-101 compliant Technical
Report for its Zuun Mod molybdenum-copper project. The report includes an updated resource
estimate prepared by Minarco-MineConsult, part of Runge Limited, following 4,331 meters of
additional drilling (15 drill holes) completed in late 2010 and reported in June.
The updated estimate has a Measured and Indicated resource of 218 million tons at an average
grade of 0.057% molybdenum and 0.069% copper. In addition, there is a 168 mt Inferred Resource at
an average grade of 0.052% Mo and 0.065% Cu.
Source: Erdene Resource Development Corp.
GUILDFORD REPORTS FURTHER SIGNIFICANT COAL INTERSECTIONS IN MONGOLIA
Guildford Coal Limited has reported further significant intersections in its South Gobi coal project,
where Stage 2 drilling has commenced to quantify coal tonnages and qualities according to the
JORC Code and to prepare a Mining License application. An Exploration Target range of 29Mt to 149
Mt has been estimated for the company‘s Middle Gobi Project; the coal is likely to suit thermal
markets and is potentially amenable to open cut mining methods. Geologists believe that there is
additional upside potential for further drilling to increase this exploration target tonnage range.
Source: Guildford Coal
VOYAGER RESOURCES STARTS DRILLING AT KHUL MORIT
Voyager Resources has commenced Reverse Circulation (RC) drilling at the Khul Morit Copper
Porphyry Project located in the South Gobi region. To date three drill holes (of an estimated 40-
hole program) have been completed, and copper mineralization has been intersected in each. The
extent of the mineralized widths and grade will not be known until assay analysis of the samples is
completed at an independent laboratory in Ulaanbaatar.
Source: Voyager Resources
MONGOLIA GROWTH GROUP ACHIEVES TWO MILESTONES IN JUNE
In its latest monthly letter to shareholders, Mongolia Growth Group has said the company achieved
two significant milestones in June. First, it raised more than USD17 million, money ―we are anxious
to put to work in properties with attractive yields‖. Second was the receipt of an insurance license
from the Financial Regulatory Authority, nearly two months earlier than expected. Interestingly,
the company‘s SUV was the first asset to be insured by Mandal General Insurance. Clarifying
expectations for the company over the next few years, the company explains it will report losses
early on and Mandal will report accounting losses in its first year in business.
However, with its focus on creating long term value, the company says, ―While there's an upfront
cost of acquiring a policy, if we can underwrite at a profit, that policy eventually becomes an
annuity for us as it is recognized. Over time, we hope to acquire a sizable stream of these
annuities. There is a cost to doing this, but the value of these annuities should be higher than the
cost of acquiring them over time.‖ The company continues to acquire assets, having so far spent
nearly USD10 million purchasing rentable property. It now owns in excess of 4,400 meters of
rentable office and commercial space, and over two dozen rentable apartments.
4. Source: Mongolia Growth Group
MONGOLIA ENERGY SAYS CONCESSIONS UNAFFECTED BY MINING BAN LAW
Mongolia Energy Corporation has clarified the report made by independent auditors in its annual
results announcement regarding certain licenses which may be affected by a mining prohibition law
(MPL) in Mongolia. The company currently has 21 mining and exploration licenses under its
concessions in Mongolia, of which 4 mining licenses and 1 exploration license may be affected by
the MPL. The Mineral Resources Authority of Mongolia has said the boundary lines of restricted
areas as defined by the MPL have not been determined nor announced to the public and Mongolia
Energy Corporation has been informed that it could continue to operate normally under the
Minerals Law of Mongolia. The company‘s mining and exploration activities under concessions are
being conducted as usual and have not been affected by the MPL since the passing of the MPL on
July 16, 2009.
Source: ETNet
4 OIL COMPANIES FINED FOR SELLING TO CARD HOLDERS ONLY
Four petroleum importing and distributing companies -- Petrovis, Shunghlai, Just Oil, and Magnai
Trade -- have been fined MNT10 million each for unfair trade practice during the fuel shortage.
They restricted retail petroleum sale to those who held cards and coupons issued by them and also
imposed an arbitrary limit on how much diesel an individual customer could buy. The anti-monopoly
agency asked them on June 28 to stop both practices as they had no legal sanction but they did not
comply. ―We then imposed a fine of MNT10 million each on them as their actions violated the law
of fair competition and were in conflict with the interests of citizens,‖ the agency said last week.
The maximum fine that could be imposed earlier was MNT250,000. This has now been raised to
MNT10 million, but many think even this is too small a sum to be an effective deterrent. They say
this is equal to just two days‘ profit from retail sales.
Source: The UB Post
MIAT SOLD 2,000 TICKETS KNOWING THERE WOULD BE NO SPECIAL FLIGHTS FROM SEOUL
MIAT Mongolian Airlines has come under criticism in South Korea for launching charter flights
without approval from the Korean government, duping air travelers who purchased unauthorized
tickets. Airlines are obliged to receive prior approval from aviation authorities in Seoul to fly
chartered flights between Korea and other countries. According to the Korean Ministry of Land,
Transport and Maritime Affairs, Mongolia‘s national carrier has been selling tickets on three weekly
chartered flights since June without a green light from the authorities.
MIAT operates six regular flights per week between Incheon and Ulaanbaatar, with Korean Air
providing another six weekly flights. Passengers with bogus MIAT tickets have been able to board a
plane only when seats on a regular flight become vacant. Some travelers have had to fly to Japan or
China to take a flight from there to Ulaanbaatar. MIAT operates a Boeing 737-800 aircraft on the
Incheon-Ulaanbaatar route, which carries up to 170 passengers. More than 500 passengers a week,
or 2,000 for the month of June, were estimated to have bought unauthorized plane tickets.
―Well before June, we notified Mongolian Airlines and travel agencies of our decision that the
airline would not be given approval for launching chartered flights this year. But the company
ignored our notice by selling seats on unapproved flights in order to make more money,‖ a Korean
ministry official said. He said the ministry is considering imposing a range of legal and
administrative penalties on MIAT, including the suspension of its business license.
Read more…
―We will do everything we can to minimize damage to those who purchased the problematic
tickets. We will also try to revise the aviation treaty with Mongolia to increase the number of
regular flights,‖ the official said. In response, the airline‘s Seoul office said the company received
approval for the operation of three weekly charter flights on July 4, admitting that it had sold
unauthorized tickets until Sunday. ―We got the go-ahead from the ministry Monday for our
chartered flights,‖ said a sales manager, who declined to be named. But he refused to speak
further on the issue.
After launching the Incheon-Ulaanbaatar route in 1999, MIAT operated charter flights during the
summer peak season every year to meet growing travel demand until last year. MIAT and Korean
Air have tried to keep their weekly regular flights at the current six for years because if the number
of weekly flights rose, other airlines would be allowed to operate on the lucrative route, according
to the ministry.
The two airlines have also been criticized for charging travelers higher airfare, compared to those
5. of other similar-distance international routes. An economy-class round ticket on the route, which
takes about three and a half hours, is priced at about USD550, which can go up by 50% during peak
seasons. Aviation authorities in Seoul have been trying to boost the number of flights between
Korea and Mongolia to make it possible for other airlines to operate the route. That will provide air
travelers with more choice and bring down ticket prices.
Source: Korea Times
KHAN MONGOLIA EQUITY FUND TO BE LAUNCHED IN AUGUST
Khan Investment Management will launch the Khan Mongolia Equity Fund in August to capitalize on
the growth opportunities in Mongolia and provide investors with both diversified and liquid exposure
to one of the world's most resource rich and fastest growing economies. The Fund will invest in
companies with significant assets and operations in Mongolia listed internationally and on the
Mongolian Stock Exchange, while opportunistically participating in Mongolian initial public offerings.
The Fund has partnered with industry leading service providers to achieve its capital growth
objectives.
"Mongolia is forecast to have the fastest growing economy in the world over the next decade.
Growth will be primarily driven by the development of the nation's mining sector, which includes
some of the world's largest coal, copper, gold and uranium deposits," said Travis Hamilton,
Managing Director of Khan. Prior to founding Khan, Mr. Hamilton was a Director at the Helvetica
Group, a boutique asset management and fund management firm with USD3.5 billion under
management, which in 2006 launched the first collective investment vehicle, now listed on the
London Stock Exchange, to access the Qatar Stock Market.
Gordian Capital Singapore Private Ltd, a specialist fund management group, has been appointed
Investment Manager of the Fund. Gordian operates a number of funds with total assets under
management in excess of USD300 million. Monet Capital, a leading investment banking firm based
in Ulaanbaatar with a seat on the Mongolian Stock Exchange, has been appointed chief Investment
advisor. As more Mongolian companies offer their shares to the public Monet is well placed to
participate in this segment of the market that is expected to grow rapidly over the next few years.
Source: Khan Investment Management
ECONOMY
SHENHUA, RUSSIA, PEABODY SELECTED TO DEVELOP TAVAN TOLGOI
China Shenhua Energy Co., a Russian-Mongolian group, and the U.S. Peabody Energy Corp. have
been picked to develop the Tavan Tolgoi deposit, potentially the world‘s largest untapped coking
coal reserve. A Shenhua-led group will get a 40 percent share in the project, while Peabody will
hold 24 percent and the Russian- Mongolian venture 36 percent, according to a statement by the
Mongolian Government. The other bidders were Vale SA, ArcelorMittal, and Xstrata Plc.
The decision becomes effective only after ratification by the Mongolian Parliament. This has not
been possible as the Democratic Party, junior partner in the coalition Government, is boycotting all
Parliamentary work on an apparently unrelated issue and so no session of the lawmaking body was
possible until Thursday afternoon.
Shenhua was originally listed as partner of Mitsui & Co. in the bid and the Russian-led group had
comprised companies from Japan and South Korea. The Mongolian Government statement made no
mention of Mitsui or Japanese and South Korean companies.
―The government clearly wants Russia, China and America to participate in developing Tavan
Tolgoi,‖ said Mr. D. Achit-Erdene, president of MICC, a Mongolian investment bank. ―But I‘m not
sure it‘s a good idea to make a geopolitical decision when it is really an economic matter. All these
groups wanted to develop this deposit by themselves.‖
Shenhua and the other winners will pay the government USD500 million as outright fees and another
USD500 million as advance payment. Agreements to build facilities like a power plant, railway, and
coal-to-liquids facility are part of the deal.
Source: Bloomberg, The Financial Times
ENEBISH SAYS CHOICE NOT FINAL YET, WHILE S. KOREA SAYS IT IS “UNCLEAR AND UNFAIR”
Two days after the Mongolian Government announced its choice on Tavan Tolgoi, a senior official
said nothing was ―final yet‖, while South Korea complained the bidding process was "unclear and
unfair". The latest development adds more confusion to the hotly contested deal, which has been
undermined by political considerations.
"We are still in talks with the companies. It's not final yet," Mr. B. Enebish, executive director of
6. state-owned Erdenes MGL, which owns the deposit, said on Wednesday. South Korea said the
Mongolian Government had asked the preferred bidders in April to form one grand consortium for
the project and bidders had since been in talks to meet the request. "While we were still in talks,
the government unilaterally announced three shortlisted bidders without negotiations with the
participants," Seoul's Energy Ministry said in a statement.
"Together with Japan, we plan to raise the issue with the Mongolian government of the
international bidding, which was carried out in an unclear and unfair manner, and tap the
possibility of additional talks," the statement said. "We were dumbfounded by the announcement.
We've been asking for explanations from Ulaanbaatarr through diplomatic channels," a ministry
official said on condition of anonymity.
Read more…
Mongolia picked a newly formed Russian-Mongolian consortium and excluded Korean and Japanese
firms, it said. "We are trying to nail down the exact composition of the Russian-Mongolian
consortium...will tap the possibility of additional talks with the Mongolian Government as this
international bidding process has been unclear and unfair," the statement said.
Members of the South Korean firms which participated in the Russian-Korean-Japanese consortium
include state-run Korea Resources, POSCO, utility firm KEPCO, trading firm LG International and
Daewoo International. Japanese firms in the group include Itochu Corp, Sumitomo Corp, Marubeni
Corp, and Sojitz Corp. "We are still under negotiation. Our understanding is that this is not the final
decision," said an executive of one Japanese firm, which is part of the consortium.
China's Shenhua teamed up with Japan's Mitsui & Co but the Japanese firm's name was dropped
without explanation. Mitsui said they haven't received notice from the Mongolian Government and
have no information whether they are still in.
Source: Reuters, AFP
ROSNEFTI RAISES FUEL PRICES, MONGOLIA ABOLISHES EXCISE TAX
Minister for Mineral Resources and Energy D. Zorigt has said the Government has decided to abolish
all excise taxes on fuel to keep prices from increasing. Talks on fuel import in July are continuing in
Moscow and the first shipment of AI-92 and AI-80 is already on its way. Mongolia‘s average monthly
consumption of AI-92 is 20,000 tons. Rosnefti will supply 10,000 tons in July and the search is on
for other sources, in Russia and also in China, for the rest. Rosnefti has raised its July per-ton sale
prices by USD119 for AI-80, by USD201 for AI-92, and by USD4 for diesel.
Source: Undesnii Shuudan, Government press release
GOVERNMENT SEEKS PARTNER TO SET UP OIL REFINERY IN CHOIBALSAN
The Government has asked Minister for Mineral Resources and Energy D.Zorigt and Chief of the
State Property Committee D. Sugar to arrange for a partner company to own shares along with the
state in a proposed oil refinery in Choibalsan of Dornod province, and to prepare the rules and
regulations under which the joint venture will work. The refinery will be called Dornod Oil LLC.
Several proposals have been received from unidentified sources to set up a refinery but the only
ones to meet international standards are the following, with their respective capacity in brackets:
Darkhan (2 million tons), Rashaant Urtuu (300,000 tons), some place in Dornod province (120,000
tons), Zuunbayan in Dornogobi (330,000 tons), and another also in Zuunbayan (50,000 tons). The
cost ranges from USD28 million to USD600 million and it would take between 1.5 years and 4 years
to finish construction.
Source: Zuunii Medee
CHINA READY TO SELL PETROLEUM ONLY UNDER LONG-TERM AGREEMENT
Chinese Ambassador Wang Xiaolong told Deputy Prime Minister M.Enkhbold on Tuesday China was
ready to sell AI-92 to Mongolia, but only under a long-term agreement, and not as a temporary
measure. Mr. Enkhbold had some days ago requested China for 22,000 tons of AI-92 immediately
and then 10,000 tons every month. The Chinese reply came in the form of a letter from the State
Council of China. It says China was ready to help Mongolia, but it had its own problems with
meeting domestic demands and could sell AI-92 to Mongolia only as a long-term arrangement. Mr.
Enkhbold told the Ambassador Mongolia would send specific suggestions on such an agreement soon,
and said Mongolia was interested in expanding its cooperation with Sinopec Corporation.
Source: Udriin Sonin
MINERS WELCOME MOVE TO DIVERSIFY OIL IMPORT SOURCES
The Government has said that during Prime Minister S. Batbold‘s recent visit to China, an
7. agreement was signed for long-term cooperation in petroleum extraction, processing, and supply. It
is believed China has agreed to ―favorably consider‖ a Mongolian request for financing and
technical support for construction of a petroleum refinery. Mongolia also proposed importing
petroleum package products in exchange for crude exports to China. Minister of Mineral Resources
and Energy D.Zorigt has added that talks are also being held with Korea and Singapore to ensure
regular supply. He favors a wide diversification of supply sources to prevent a recurrence of the
shortage in recent weeks that bred popular discontent and hit industrial production.
The shortage also led to arbitrary increase in prices for privately arranged supplies. It is too early to
calculate the exact impact on mining costs but such instability can be dangerous when mining
activity sees the anticipated increase. It has been reported that there were no restriction on
Russian fuel supply to countries such as Kyrgyzstan. Miners have welcomed the move to tap China as
an import source, as this may help avoid the waste of fuel entailed in coal trucks returning empty
after unloading coal at the border. The political implications are interesting. China is showing it is
prepared to help Mongolia when asked, especially at a time when Russia has been less than helpful.
This may change the general Mongolian aversion to seeking succor from China. Some analysts feel
this is the beginning of the Bear making way for the Dragon.
Source: Frontier Securities
CENTRAL BANK APPROVES MEASURES TO DEVELOP DOMESTIC FX MARKET
The Central Bank has approved several measures recommended at a recent meeting of FX market
professionals to develop the domestic FX market, improve its profitability and manage exchange
rate risks. These include
- Preparation of a regulatory framework and procedures to be followed by commercial banks to
implement the swap agreement between the Central Bank and the People‘s Bank of China, and
- Wider use of more kinds of financial derivative instruments by both banks and their customers.
The Bank has also noted that despite short-term fluctuations, average exchange variation per day
has been just 0.01 percent. The deficit in the current account balance of payments has increased y-
o-y 3.3 times to USD476 million, but the financial account surplus has also increased 3.3 times to
reach USD483 million in the same period, and the total balance of payments shows a surplus of
USD35 million. In-and-out FX liquidity increased 1.7 times y-o-y at the end of May, and the total
amount of USD inflow increased 4.2 times. FX reserves at the end of May increased by 74% y-o-y or
by USD1 billion, and interbank market trading turnover rose 3 times y-o-y.
Source: Frontier Securities
CENTRAL BANK UNHAPPY WITH GROWTH RATE OF BUYING GOLD
The Central Bank bought 1.1 tons of gold in the first five months of 2011, 50 percent more than in
the corresponding period last year. However, since 2010 was the year when it bought the lowest
amount of gold, the Central Bank is not satisfied with this year‘s growth. The present figures are
39% less than in 2009, 2.3 times less than in 2008, and 21 percent so than in 2007.
One reason for the Central Bank failing to buy gold according to expectation is that some
commercial, particularly Savings Bank have been buying gold in substantial quantity for exporting
it. Contrary to popular belief, they act perfectly within the law in this.
Source: The UB Post
MSE GEARS UP FOR INVESTOR EDUCATION EFFORT
Forced to sell his animals and flee his dried-up lands, former herder Sainbuyangiin Tsagaan-Ovgon is
now hoping mining profits will let him return to his native Gobi. The 72-year old, who admits he
knows nothing about stocks, will soon receive 536 shares in the Mongolian company that owns the
world's largest coking coal deposit.
The potential windfall is part of an experiment to allow Mongolians to share directly in wealth
generated by mining at Tavan Tolgoi, the hotly contested coal project. "These shares will be a big
help to herders like myself," said Tsagaan-Ovgon, who sported a traditional silk robe and white
fedora as he mingled with the crowd on Ulaanbaatar's Sukhbaatar Square. "We can plant fruit,
vegetables and trees. In the city people can use their shares to start small businesses, they can
package jam or make sweaters and then build their own brand names."
Erdenes Tavan Tolgoi's international IPO could raise up to USD5 billion, a vast sum for one of the
poorest countries in Asia. Ten percent of shares are reserved for Mongolian citizens, and another 10
percent is to be split among Mongolian companies. Some lawmakers support giving those shares to
citizens as well. The value of each Mongolian's shares could be around USD300, Mongolian officials
have estimated, a substantial amount in a country where the average GDP per capita stands at
8. USD1,573.
To cope with the coming wave of citizens-turned-traders, Mongolia's tiny stock exchange is gearing
up for a massive investor education effort, so that the opportunity represented by the shares is not
frittered away by an impoverished population unfamiliar with capital markets.
Read more…
"When I daydream about the possibilities here I think, 'Wouldn't it be wonderful if I can make
Mongolia the most investment literate country in the world'," said Mr. Bill Gorman, president of the
Mongolian Stock Exchange. It's a tall order for the exchange, which trades for only two hours each
day. It signed a USD14.2 million restructuring agreement with the London Stock Exchange, to help it
upgrade ahead of the listing of Erdenes Tavan Tolgoi, the license holder for the coal deposit.
Mr. Gorman envisions cartoon-style pulp books to introduce capital market concepts, starting from
the basics of "what is a stock, what is a company and how it is set up". A markets-themed soap
opera could follow. "I am hoping to train everyone from school children to Supreme Court justices,"
he said at the exchange, a Russian-style building painted a cheerful shade of peach.
"People can do whatever they want with their shares. They can buy them, sell them, trade them or
frame them and hang them on their wall," says Mr. Peter Morrow, a banker and stock exchange
board member. "But the shares represent real value and when people realize that, they won't give
them up easily."
That's the hope, at least.
During the messy privatization following the collapse of the Soviet Union in the 1990s, Russians
received vouchers that entitled them to shares of state-owned companies. But many sold them for
pennies, or even vodka or flour, to savvy free-marketeers who went on to become tremendously
wealthy oligarchs. The challenge will be to avoid a similar scenario in Mongolia, a former Soviet
satellite where local industry collapsed along with the Soviet Union.
Mining in Mongolia has boomed thanks to Chinese demand for minerals and coal, but corruption and
environmental degradation plagues the sector. The Mongolian state has failed to capture its share
of the wealth, or pass it on to its people. All Mongolians born before March 31, 2011 are eligible for
the shares, but they will only become valuable after the IPO in 2012. It will be years, if not
decades, before Tavan Tolgoi yields dividends once the coal gets to market.
Mr. Gorman acknowledged that some would sell their stake but said others would hang on for
potential dividends. Laws to encourage companies to issue dividends would help raise interest in
holding shares. "If we can get the Mongolians to keep their shares and enjoy the benefits we have
been successful," Mr. Gorman said.
Former herder Tsagaan-Ovgon said he hoped to use his shares to return to the land and plant trees,
helping to reverse the desertification that drove him to the capital city. "I really don't know what it
means to be a shareholder but I am hoping the government will give me some information about it,"
he said. "They say it's a way to share the land and I just hope that is the case, because Tavan Tolgoi
belongs to all Mongolians."
Source: Reuters
INVESTMENT BANKER CERTAIN MONGOLIAN FIRMS WILL SEE TRANSPARENCY AS ASSET, NOT
BURDEN
Mr. Pietro Doran, whose Korea-based Doran Capital Partners and Eurasia Capital have joined hands
to bring institutional investors to Mongolia, feels the rate of economic development that is going on
in Mongolia today is something only very few countries have experienced in their entire history.
This dynamic economic growth outstrips its present stage of political maturity. The regulatory
environment in terms of foreign investment is still evolving and the challenges will only increase as
the average Mongolian citizen wonders what they get from this market expansion.
Mr. Doran feels such regulatory changes will continually evolve to meet the ever increasing
complexity and sophistication of a growing Mongolian economy. This is why most investors tend to
be nervous about going into a developing economy as the laws and regulations governing and
effecting foreign investment tend to be in a constant state of evolution as political needs and
economic expediency must be balanced with increasing societal expectations. Mr. Doran feels their
present partnership will keep investors clear of such pitfalls because of its deep understanding of
Mongolia as well as its commitment to improving the investment environment.
Read more…
They are hoping for success with Koreans who know what can be accomplished within the
environment of a developing economy because ―the powerhouse that is Korea today was forged
from the same extraordinary political and socio-economic forces that are changing Mongolia today‖.
For example, the Korean government‘s critical role in enforcing stock market disciplines forced
9. Korean corporation to become transparent. What they found was by following the rules of improved
governance and accountability, listing on the market was good for the corporations and a boon to
the Korean economy. And that is the power and advantage of a well managed public market; while
it insists on transparency and highest standards of corporate discipline it acts as an incredibly
efficient conduit for delivering capital at competitive rates and, in doing so, augments the
reputation and value not just of the firms listed on that market but the image of the country itself.
―Transparency is then not a burden but is, in fact, an advantage and a measure of a firm‘s maturity
and success,‖ Mr. Doran said.
He believes Koreans experience a sense of pride in helping Mongolia achieve its place in the global
arena, feeling they are helping to build the future of their ancestral home. The advantage for
Mongolia today is that as a country, as a government and as a changing society, it does not have to
look to Europe or to America for example and it does not need to look to China for inspiration in the
management of its economic growth. ―And given the fierce independence of the average Mongolian,
I certainly don‘t think that China is a political or economic model they could even possibly
duplicate,‖ Mr. Doran said.
Source: The Mongolian Economy Journal
RUSSIAN COMPANY TO UPGRADE POWER STATION IN DARKHAN, WITH GERMAN LOAN TO
MONGOLIA
Asen Corp of Russia will upgrade a power station in Darkhan. The German Government has given a
soft loan of 12 million euro for the work. The plant was built in 1965 and needs new turbines and
generators. A 35-mw turbine and other equipment would be installed and the transformers‘ load
bearing capacity raised. Asen Corp hopes to finish the work in two years.
Source: News.mn
STATE TO SPEND MNT1.5 BILLION ON POST-MINING RECLAMATION
The Government will spend more than MNT1.54 billion on estimating reclamation costs and on
actual rehabilitation work in areas damaged by mining and exploration activities. The project will
cover 246 areas in 12 provinces where special licenses were issued in legally prohibited areas.
Source: Udriin Sonin, Zuunii Medee
WATER USED IN MINING, AGRICULTURE LIKELY TO COST MORE
The Deputy Chief of the Water Board has hinted that new standards for water use will soon be
issued. He feels water costs are too low in Mongolia. Mining companies buy a ton (or approximately
1,000 liters) of water for MNT180 but citizens buy 40 liters for MNT40. The ecological and economic
value of water has to be considered. A working group of the Ministry of Nature, Environment and
Tourism is studying the issue and is likely to recommend an increase in the price of water used in
mining and agriculture. The rates for water used in households are not to be increased much.
Source: News.mn
PLAN FOR LOW-FARE KOREAN AIRLINE TO SERVE MONGOLIA
Officials from the South Korean embassy called a press conference last week to refute suggestions
in local media reports that South Korea was to blame for not permitting additional MIAT flights
between Ulaanbaatar and Seoul in the summer. They said the flight schedule is governed by an
agreement made between the two countries in the early 1990s, and additional flights will be
possible only after this agreement is revised.
They agreed that the present passenger load would justify additional flights. Korean Air was
considering setting up a new airline which could operate cheaper flights to and from Mongolia. The
present high price for tickets on the Seoul-Ulaanbaatar route keeps many intending passengers
away, and a cheaper but comfortable arrangement will significantly bring a large number of Korean
tourists here, which would mean economic benefit to Mongolia.
Source: Udriin Sonin
EXPORT OF MONGOLIAN FLUORSPAR TO RISE
Global exports of Mongolian-sourced fluorspar ―will replace‖ Chinese material over the next few
years as China continues to ramp up domestic consumption, according to fluorspar trader and
processor Tianjin Steyuan Mineral Co. Ltd.
Source: Industrial Minerals
UK TRAVEL GROUP SAYS FIRST MONGOLIA TRADE MISSION “A HUGE SUCCESS”
10. Incentive travel specialist CT Group Travel says its first ever trade mission to Mongolia has been ―a
huge success‖. CT Group is the UK‘s leading organizer of overseas trade missions, organizing and
managing up to 2 trade missions every week of the year. Mongolia was added to its portfolio in May
2011. Trade missions provide an excellent opportunity for companies to identify potential business
opportunities in overseas countries. Being part of one provides companies a fast track route to
meeting suitable companies to trade with, generating high quality opportunities that often lead to
the development of long and prosperous partnerships.
What made the trade mission to Mongolia such a success is their keenness to identify international
partners beyond the many historic relationships they have with businesses in neighboring China and
Russia. The potential to trade with Mongolian businesses for UK companies is huge, especially for
businesses involved in industries such as agriculture and mining. There were 17 participants in
total, ranging from multinationals to SMEs. Managing Director Mark Kempster says the success of the
first trade mission has led the company to organize two more missions to Mongolia within the next 8
months.
Source: CT Group Travel
INCREASED DEMAND FOR EXECUTIVE FACILITATION SERVICES IN MONGOLIA
EBM Consulting, the leading due diligence and risk mitigation company with offices in Hong Kong
and Mongolia, has reported an upsurge in interest in its Mongolian VIP Facilitation Services. "Our VIP
and Executive Facilitation Service offers executives the comfort of having their trips to Mongolia
professionally project managed from arrival to departure," said Mr. Mark McMillan, Chief Operations
Officer at EBM Consulting. "In the last few months we've seen an upsurge in demand, with particular
interest in the provision of airport facilitation, transportation, personal protection and concierge
services." EBM personnel have been operating in Mongolia for several years and the company
opened an office in Ulaanbaatar in March 2011.
Source: EBM Consulting
CHINA MANUFACTURING AT LOWEST IN 2 YEARS
Chinese manufacturing activity has fallen to its lowest level in more than two years, fueling
concerns that the world‘s second-largest economy is slowing down because of aggressive action by
the government to tame inflation. China‘s official purchasing managers‘ index – a key measure of
the manufacturing sector – dropped to 50.9 in June, down from 52 a month earlier. The figure was
below market forecasts and perilously close to dipping below the 50 line that would signal a
contraction in industrial activity. The index recorded its lowest level since posting 49 in February
2009 during the global financial crisis.
Output and new orders in the official manufacturing survey all slowed sharply, but so did input
prices, indicating that inflationary pressure from global commodity costs was clearly on the wane. A
lessening of inflation would help pave the way for a relaxation of China‘s policy stance. Premier
Wen Jiabao signaled as much when he said that measures to control inflation had been effective
and that he was ―emphatic‖ in his belief that China would be able to maintain its course of rapid
development.
In an attempt to unwind its massive stimulus unleashed during the global financial crisis, China has
over the past nine months raised interest rates four times and banks‘ required reserves nine times.
The sting from that sustained tightening has been felt most harshly by small- and medium-sized
enterprises, which struggle to get bank credit even at the best of times. Strapped for cash, many
have slowed their production and even warned of bankruptcy in recent months.
Source: The Financial Times
EXTENT OF LOCAL DEBTS IN CHINA LAID BARE
Chinese local governments owe USD1,650 billion in debt, according to the first national audit of
regional finances published by Beijing. That amount is equivalent to about 27 per cent of China‘s
economy and easily outstrips the central government‘s officially declared debt balance of less than
20 per cent of GDP. The new audit provides the most authoritative estimate to date of provincial
and city governments‘ explicit debts and suggests the problem, although large, is manageable.
Local governments have accumulated an unprecedented mountain of debt in the wake of the 2008
financial crisis after Beijing opened credit floodgates, backing state-owned banks to lend to state-
backed infrastructure projects. The move succeeded in jump-starting flagging growth but left
serious concerns over the viability of many projects and the indebtedness of local governments
nationwide. The audit confirmed an explosion in borrowing in 2009 when outstanding local debt
rose 62 per cent. But it also showed that the government began to get a grip on the problem last
11. year, with debt growth slowing sharply to 19 per cent.
Combined with central government debt and other liabilities such as bad bank loans, analysts
estimate China‘s overall explicit debt load is about 70 per cent of gross domestic product. Some
analysts believe the contingent liabilities of the government are much higher, once debts on the
books of state-owned enterprises and other entities implicitly backed by the state are included.
Source: The Financial Times
HIGH-SPEED RAIL POISED TO ALTER CHINA, FREEING OLD TRACKS FOR FREIGHT
Even as China opened bullet train service from Beijing to Shanghai this month, the nation‘s steadily
expanding high-speed rail network is being pilloried on a scale rare among Chinese citizens and
news media. Complaints include the system‘s high costs and pricey fares, the quality of
construction and the allegation of self-dealing by a rail minister who was fired earlier this year on
corruption grounds. But often overlooked, amid all the controversy, are the very real economic
benefits that the world‘s most advanced fast rail system is bringing to China — and the competitive
challenges it poses for the United States and Europe.
Just as building the interstate highway system a half-century ago made modern, national commerce
more feasible in the United States, China‘s ambitious rail rollout is helping integrate the economy
of this sprawling, populous nation — though on a much faster construction timetable and at
significantly higher travel speeds than anything envisioned by the Eisenhower administration. Work
crews of as many as 100,000 people per line have built about half of the 10,000-mile network in
just six years, in many cases ahead of schedule — including the Beijing-to-Shanghai line that was
not originally expected to open until next year. The entire system is on course to be completed by
2020.
Read more…
For the United States and Europe, the implications go beyond marveling at the pace of Communist-
style civil engineering. China‘s manufacturing might and global export machine are likely to grow
more powerful as 200-mile-an-hour trains link cities and provinces that were previously as much as
24 hours by road or rail from the entrepreneurial seacoast. Around China, real estate prices and
investment have surged in the more than 200 inland cities that have already been connected by
high-speed rail in the last three years. Businesses are flocking to these cities, now just a few hours
by bullet train from China‘s busiest and most international metropolises.
Meanwhile, a shift in passenger traffic to the new high-speed rail routes has freed up congested
older rail lines for freight. That has allowed coal mines and shippers to switch to cheaper rail
transport from costly trucks for heavy cargos. Because of this shift, plus the construction of
additional freight lines, the tonnage hauled by China‘s rail system increased in 2010 by an amount
equaling the entire freight carried last year by the combined rail systems of Britain, France,
Germany and Poland, according to the World Bank.
The bullet train bonanza, and the competitive challenge it poses for the West, is only likely to
increase with the opening of the 820-mile Beijing-to-Shanghai line, which will create a business
corridor between China‘s two most dynamic cities. The railway ministry plans 90 bullet trains a day
in each direction. The trains will barrel along at initial speeds of 190 miles per hour, with plans to
accelerate to 220 miles per hour by the summer of 2012, if the first year of operation goes
smoothly. Even at the initial speeds, they will take less than five hours to cover a distance
comparable to New York to Atlanta — which requires nearly 18 hours on Amtrak.
But high-speed rail is not universally acclaimed in China. Financial regulators in Beijing have
cautioned banks to monitor their rising exposure from hefty loans to the rail ministry. To pay for
rapid deployment of the high-speed system, the ministry has borrowed more than USD300 billion. It
plans to invest an additional USD115 billion this year, despite running losses on existing operations
that it attributes mainly to rising diesel fuel costs for older lines, as well as rising interest
payments. Among the biggest beneficiaries of the high-speed rail system are firms that contribute
nothing to defray its costs. Those would be freight shippers, which now have more exclusive use of
the older rail lines, with fewer delays.
On the older tracks, the rail ministry has long been able to dictate that freight rates would
subsidize passenger trains because the ministry owns those older tracks outright. The new, high-
speed lines — passenger trains only — are owned by joint ventures between the rail ministry and
provincial governments. That has prevented the ministry from forcing freight shippers to cross-
subsidize the new high-speed services. As a result, passengers must pay much higher fares on the
new trains than on the older ones.
The lack of freight subsidies is also causing concern in the rail and banking industries that the debt
agreements of some joint ventures might need to be revised to extend the repayment of investment
12. costs over more years. For ordinary citizens, meanwhile, the steep prices for high-speed train
tickets have touched China‘s raw nerve of rising income inequality.
Chinese and foreign engineers have questioned the long-term strength of the concrete used in
bridges and viaducts under contracts awarded during the term of the disgraced former rail minister,
Liu Zhijun. The rail ministry‘s new leaders, brought in after the corruption investigation, contend
that safety concerns are misplaced. But they have responded to public anger over fares by
announcing plans to lower the top speed on many routes July 1 — which will not only address safety
questions but will sharply reduce the amount of electricity consumed — and pass on the savings
through reduced fares.
When the Beijing-to-Shanghai line opens, it will create a north-to-south artery with links to east-to-
west rail lines at two dozen stations along the way.
Source: The New York Times
POLITICS
DP DROPS REFERENDUM IDEA, WANTS 38:38 ELECTION SYSTEM, BUT BOYCOTTS PARLIAMENT
The DP has changed its mind about the referendum on the election law and does not support the
idea any longer. Explaining the change of stand, Mr. Ch.Saikhanbileg, head of the DP group in
Parliament, told journalists that holding a referendum would cost between MNT6 billion and MNT8
billion but the outcome may not justify the prohibitive expense. A referendum held in a hurry and
under politically charged conditions may also not represent the true national mood. If people now
vote against change, another referendum cannot be held before at least 8 years. Mr. Saikhanbileg
said the DP has agreed to modify its stand on the election law and if the MPP does the same, an
agreement can be reached. The MPP is sticking to direct election for 52 MPs while allowing the
remaining 24 to be elected on the basis of proportional representation. The DP has suggested a
38:38 ratio and has informed the MPP of the decision.
At a later press conference, the MPP group leader, Mr. U.Enkhtuvshin, said the election law is an
issue of state policy and thus, under the law passed in 1995, can be decided in a referendum. Also,
according to MPP calculations, only MNT3 billion was needed for a referendum. He asked the DP
group to return to Parliament. ―If we cannot finish pending work, including this issue, before July
10 we shall have to wait until the Autumn session,‖ he said, adding, ―If the two groups cannot
agree, the decision should be passed on to voters.‖
Source: News.mn
PARLIAMENT HAS NO OFFICIAL INFORMATION ON ACA CHIEF’S CONVICTION
The Spring session is likely to end without any effort by Parliament to appoint successors to the
chief and the deputy chief of the Anti-Corruption Authority (ACA, both convicted to serve terms in
prison. The Chief of the Standing Committee on State Structure, Mr. J.Sukhbaatar, told media that
Parliament had no official information on the court‘s decision and cannot act on its own. That is
why it could not take up the issue of replacing the incumbents or dismissing them.
Source: Ardiin Erkh
ENKHBAYAR WANTS TO “HAND OVER TAVAN TOLGOI TO THE PEOPLE”
The following is a selection of questions journalists asked Mr. N.Enkhbayar, the MPRP leader, at a
recent press conference, and his answers.
Is the MPRP going to claim its property now held by the MPP?
It is an interesting and valid issue but I do not think this is the main problem now. It is not
important if a party has property. What is important is that every Mongolian has their own property.
Our first job is to hand over Tavan Tolgoi to the people.
Will the MPRP build its own headquarters building?
The MPP calls the building it uses as its headquarters ―The Palace of Independence‖. People, not us
or them, should own that building. I said a few months ago this building should be the people‘s
property, not the MPP‘s or the MPRP‘s. We need a lawsuit here.
We all know who donated how much for the MPP headquarters. One company donated MNT1 billion.
You should be investigating why a party should receive that kind of money from a business house,
but my guess is that you will not be allowed to do so.
Read more…
Do you see the MPRP as the 19th political party to be registered in the country, or as its first
and oldest political party?
Whatever it is, we shall be the first in people‘s hearts. The MPP is being laughable when it seeks to
13. make much of the fact that it is on page one of the register while we are on page 19.
What are your views on the election system?
I have been changing my opinion. That is only human. A rock stays the same, but plants grow
differently every year. That is the sign of being alive. I supported the system now in force, but now
that it has created two irresponsible political forces, I think it is the right time to have a mixed
system so that new political forces can emerge.
You once led what is today’s MPP, so must bear some responsibility for its actions…
I understand that and now I want to correct my mistakes. But I alone cannot be blamed for
everything. I was against the Oyu Tolgoi agreement that was signed. I did not get their cooperation
when I sought to find the truth about the July 1 incidents. I am trying to change for the better,
while my former colleagues keep changing for the worse.
They should answer those questions. They are changing in a bad way; when I am changing in a good
way. I want to tell them to think about the Mongolian people.
Do you expect many more MPP members to join the MPRP now, including MPs?
Every MPP MP won the 2008 election as an MPRP candidate. They and the losing candidates, too,
should understand that people and the voters want them to belong to the MPRP.
Did the MPRP get its name with the support of the President?
Certainly not. It has been a long time since I last met the President. According to Article 6.3 and
15.6 of the Political Parties Law, a name of an existing party cannot be adopted but a new name
can be taken. In the Supreme Court‘s register, there was no political party called the MPRP, so we
were given it. Our request could have been granted sooner, as the legal provision was clear, but the
MPP made the process longer.
Source: The UB Post
GREEN PARTY LEADER DENIES CHARGES OF FINANCIAL IMPROPRIETY
The Civil Will-Green Party alliance continues to face problems. Courts keep saying that the Green
Party‘s decision to merge with the Civil Will was taken at a meeting that was not lawfully called
and thus not valid, even though 90% of the party‘s members support it. And now the Anti Corruption
Authority (ACA) is investigating MP and Chief of the Civil Will-Green Party, Mr. D.Enkhbat on
charges of impropriety in use of the MNT70 million given by the state to the Green Party for having
a seat in Parliament.
Mr. Enkhbat has told media that ACA officials asked for some clarification and he has sent his reply.
The money was spent on various activities of the Green Party in and out of Parliament. ―Everything
was done according to rules and all accounts were properly maintained and then audited,‖ he said,
adding that he had submitted the financial statement to a regular meeting of the party in March.
He has now sent the statement and the audit certificate to both the ACA and the Supreme Court,
which, too, has received complaints against him. He said the party had no assets besides some
tables, chairs and a computer, so it was not difficult to prepare the explanation of expenses.
Source: News.mn
MPRP CALLS FOR NATIONAL UNITY, LISTS PRIORITIES
At their first press conference after being registered by the Supreme Court as The Mongolian
People‘s Revolutionary Party (MPRP), the party‘s leaders, including its chairman, Mr. N.Enkhbayar,
Deputy Chairman, Mr. Ts.Shinebayar, and General Secretary, Ms. N.Udval, appealed to all political
forces in the country to join the MPRP in working for national unity and progress. Calling for an end
to the ―harmful policies‖ of the coalition government, the MPRP has announced its three priority
tasks right now. These are:
- Equal distribution of revenue from natural resources, including letting people own all the shares
of Tavan Tolgoi
- Finding and revealing the truth about what happened on July 1, 2008
- Ensuring that next year‘s parliamentary elections are fair.
The leaders warned media and commentators to stop speculating about the legal basis of the
Supreme Court accepting the MPRP plea for registration. Such ―baseless‖ allegations are ―illegal
and unethical and meant to put us under pressure‖, they said.
Source: The UB Post
MNT160 MILLION MORE NEEDED TO FINISH WORK ON SUKHBAATAR AND CHOIBALSAN
MONUMENTS
The Ulaanbaatar City Citizens' Representative Assembly recently discussed a report on the status of
the renovation work on the statues of Sukhbaatar and Choibalsan. The contractor company which
14. had stopped the work and a working group of the Representative Assembly studied the situation and
the contractor‘s problems. The group concluded that MNT160 million more will be needed to
complete the project. After several delays, July 9 had been fixed as the date for completion of the
work but all now depends on when the additional funds are provided.
Source: Zuunii Medee
TAKING AWAY PARKING SPACE DELIBERATE POLICY
I went to City Hall seeking answers to my question about the parking situation on Baga Toiruu (the
Little Ring Road). I couldn‘t quite understand the logic behind taking away parking spaces on the
road and figured there had to be a reasonable answer. It seems that taking away spaces was
actually a conscious decision made by the city, after recommendations by the Traffic Police. The
Traffic Police believe that having less parking spaces will actually reduce traffic problems. Without
places to park traffic will flow faster, they say. I then asked, what happens if a car has to stop to go
to a local business? There are tons of small shops and cafes on Little Ring Road and many would lose
business if they don‘t have parking. The answer was somewhat convoluted but essentially it breaks
down like this:
The road engineer says that if businesses have fewer customers because they have less parking then
they will have to figure out a way to make their own parking. I said, how are they going to do that?
He said businesses should knock down the buildings and make new ones that have underground
parking. I then said, well, most of the businesses on Baga Toiruu are small mom and pop shops and
cafes, they are not going to be able to knock down their buildings and build new ones with
underground parking. To this he says that those little shops and cafes should never have been built
in the first place. He says they are ugly, unsafe and not designed for commercial space (OK, on this
he does have a point).
Read more…
He added that if the businesses get killed off because of this new road design, then the property
prices will come down and developers will be able to go in, buy a whole building, knock it down and
put up a new one. He tells me -- those buildings have exceeded their lifespan, they should be torn
down and replaced with newer, more efficient buildings. He concludes by adding that if there are
fewer parking spaces, people will use their cars less and will just walk around town, thereby
reducing traffic.
I must admit that I am perplexed by all of this, and somewhat astonished to hear that the city is
actually trying to kill off local businesses as a way to get rid of the old Russian buildings. Now, in
conclusion, I ask if they are taking away the parking spaces, where does the city expect people to
park in the near term. The answer, he says, it so build huge, multi-story parking garages around the
city.
Whoa, I thought he wanted to limit the parking spaces. But now he says he wants to build big
parking structures. I consider suggesting to scrap the idea of parking structures and just have street
parking, but in the end, I give up.
So let us recap the plans for downtown UB:
*Less street parking
*More parking structures in courtyards
*Dead commercial space
*The eventual destruction of the most unique Russian-era building in the city.
Source: ubchildrenspark.blogspot.com
TWO WHO PLANT TREES TO MAKE SOUTH GOBI MORE HOSPITABLE
Few places in the world are feeling the effects of global warming as powerfully as Mongolia, the
almond shaped country located between northern China and Siberia. Mongolia‘s average
temperature has gone up by 2.1 degrees Celsius in the last 70 years, about three times the global
average. The added warmth is drying the land and the country‘s lakes and rivers. Studies of
precipitation suggest that rain is falling more frequently in intense bursts rather than in gentle
sprays.
I traveled to South Gobi with two foresters: Tsogtbaatar, a member of Mongolia‘s Academy of
Sciences, and Park, the former head the Korean organization Northeast Asian Forest Forum. (Both
Tsogtbaatar and Park, following custom in their counties, go only by given names.) The two
foresters might be called tree huggers, but in South Gobi trees are too bushy and spiny to clasp
without injury. Eight years ago, with help from South Gobi locals, Tsogtbaatar and Park started
planting long rows of saplings. They wanted to prove to skeptical residents of the region that
15. windbreaks of trees could hold soil in place and trap dust blowing in the wind. They wanted to
prove that trees could make South Gobi more hospitable for people, their livestock and the sparse
vegetation that is the foundation of herding life.
Read more…
Tsogtbaatar and Park showed me several examples of what they‘ve accomplished. Where I come
from, New England, the woodlands they‘ve created would seem pitifully stunted. But here, where,
only about one tenth as much rain falls, the small forests inspire awe. Just outside the city of
Dalanzadgad, the capital of South Gobi, they planted a 2.5-mile-long windbreak about 200 yards
wide with thousands of trees in rows. The leaves of ten foot-tall poplar trees glisten in the sun and
rustle in the wind. Nearby, slower growing Siberian elm exude a spicy aroma. Tsogtbaatar says
when the short-lived poplar die, in several decades, the elm will come into their own, improving
the lot of residents of Dalanzadgad for many years.
The pair of foresters had not been back to see the fruits of their labor for several years.
Tsogtbaatar says many people question whether an artificial forest can even be created in South
Gobi. ―They say Tsogtbaatar and Park are crazy,‖ he says. So, even though it is too early to know
how well the trees halt dust or secure soil in place, the sight of their little woodlot pleases them.
Park says by proving wrong the skeptics, and showing how to make a forest grow here, they‘ve
performed an important service. ―Our work is almost done. Now it‘s the government‘s job,‖ he says
in slightly broken English. Whether a large-scale tree-planting program will ever take place, though,
is uncertain. As Tsogtbaatar says, speaking with an accent with hints of his first foreign language,
Russian, ―In Mongolia, very difficult to plan ahead. Just hope for best.‖
Source: National Geographic
ANNOUNCEMENTS
2011 CHINA CLEAN COAL TECHNOLOGY CONFERENCE, BEIJING, JULY 12-13
Organized by CBI Energy and supported by the coal sector of Mongolia, the Mongolian National
Mining Association and the Indonesian Coal Mining Association, the 2011 China Clean Coal
Technology Conference will be held in Beijing on July 12-13. China‘s clean coal technology
innovations will continue during the 12th Five-year Plan period (2011-2015). In 2010, China‘s
demand for ethylene equivalent was 24.84 million tons, larger than its domestic production; the
demand for propylene equivalent was 19.05 million tons, 5.90 million tons more than the national
output. This indicates a significant demand-supply gap in China‘s ethylene and propylene markets.
While the edge of petroleum to low-carbon olefin was blunted by the rising oil prices, the MTO
technology using coal as the raw material will give the Chinese producers more advantages. The
conference will discuss all aspects of the issue.
___________________________________________
METALS MONGOLIA, ULAANBAATAR, AUGUST 26
The main objective of the international investment conference, to be held in Government House, is
to provide a discussion platform and assist in medium- and long-term planning and implementation
associated with the Government‘s intentions to achieve value-added production at industrial parks
through downstream processing of ferrous and non-ferrous metal products. It is aimed to provide
potential investors with an insight into the Government‘s policies pertaining to metallurgical
industry, related exploration, extraction, processing, and infrastructure projects; to facilitate such
investments; provide opportunity for open discussion and possible solutions through involvement of
representatives of both public and private sector and professional organizations on the
opportunities and challenges in project financing, tax and legal environment.
The conference will have main and branch sessions involving over 800 representatives of parties
engaged in ferrous and non-ferrous metal projects, manufacturers, suppliers, foreign and domestic
investors, academics, professional associations, state administrative bodies, embassies. The main
conference will cover the present situation and future trends in Mongolia‘s metallurgical industry. A
special feature will be the Government Hour, which will feature an open discussion on
strengthening PPP in the metal-based industrialization process.
The branch conferences will be on
1. Opportunity to develop rare-earth based industries
2. Developing base metal industries
3. Developing iron and steel industries
4. Issues facing provision of required infrastructure to ferrous and non-ferrous metals based
16. industries-experiment and opportunity.
Each branch conference will include thorough discussions of resources and reserves of the type of
metal discussed, applicable market conditions, investment projects, technology and equipment.
BCM is a supporter of the event.
For more information, Visit: http://www.metalsmongolia.mn/, or call +976-70115590, Fax: + 976-
70125590, or Email: info@metalsmongolia.mn.
------------------------------------------------------------
INVESTMENT FORUM, ZUUNMOD, TUV PROVINCE, AUGUST 30
The government of Tuv province, the National Committee for Regional Development, and the GIZ
Investment Policy and Advisory Service Project are jointly organizing the Investment Forum aimed
at promoting investment in Mongolia. Detailed business plans will be presented to allow a focused
dialogue between potential investors and Mongolian companies seeking capital for further
expansion. Targeted presentations by experts from the business community and public
administration will highlight the relevant framework.
BCM is a supporting organization of this event. For further information, please contact ipas@giz.de.
______________________________________
COMPETITIVENESS AND CORPORATE SOCIAL RESPONSIBILITY CONFERENCE, ULAANBAATAR, SEPT
6-7
This conference, organized by GIZ Integrated Mineral Resource Initiative, will be focused on
debating whether corporate social responsibility increases the competitiveness of an economy and
its players in the long run or whether it is rather a disadvantage that, particularly in structurally
weak economies such as Mongolia, prevents the establishment of globally competitive value chains.
The main areas for discussion will be:
- CSR and Sustainable Economic Development
- Economic Globalization and CSR
- CSR and Enterprises.
For any questions please contact imri@giz.de.
___________________________________________
MINES AND MONEY AUSTRALIA 2011, SYDNEY, OCTOBER 10-12
Building on the success of shows in Hong Kong, Beijing and London, Mines and Money is coming to
Sydney on October 10-12 with the goal of helping to match up mining projects with Australian and
international capital. The Business Council of Mongolia is a supporter of this year's event and its
members are entitled to a 15% discount on the conference delegate price.
The event features an exhibition of 85 high-growth junior and midcap mining companies and a
conference program offering 36 mining company spotlight presentations, allowing investors to
browse a wide range of hot potential mining investment opportunities. The conference also
features keynote presentations, analyst insight sessions and investor panel discussions, providing
delegates with a treasure trove of information essential to investment decision making – including:
- Commodities price trends
- Key market economic outlooks
- Chinese outbound investment trends
- The growing role of India as an investor in Australian mining
- Industry risk assessments
- Emerging market opportunities
Among the international cast of investors, analysts and mining insiders, lending their expertise to
the conference agenda, are:
- Tad Watroba, Executive Director, HANCOCK PROSPECTING
- Zeng Chen, President & CEO, CITIC RESOURCES HOLDINGS
- Trevor Rowe, Executive Chairman, ROTHSCHILD AUSTRALIA
- Bernard J. Guarnera, President & CEO, BEHRE DOLBEAR & COMPANY
- Chris Baker, Investment Manager, CALEDONIA
- Clive Donner, Managing Director, LINQ RESOURES
- Louis Rozman, Investment Director, PACIFIC ROAD CAPITAL MANAGEMENT
- Jason Chesters, Head of Equities, PATERSONS ASSET MANAGEMENT
- Ian Douglas, Managing Director, Australia, AMERICAN APPRAISAL
- Robin Chambers, Senior Partner, CHAMBERS & COMPANY
17. - Richard Karn, Managing Director, THE EMERGING TRENDS REPORT
- Philip Klapwijk, Executive Chairman, GFMS
- Mickey Fulp, Founder, THE MERCENARY GEOLOGIST
- Gavin Wendt, Founding Director & Senior Resource Analyst, MINELIFE
and many more.
- Visit the Mines and Money Australia website where online booking is now available
- Call our Sydney-based customer services team on +61 2 9279 2222
- Email info@ResourcefulEvents.com.
___________________________________________
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.
___________________________________________
“BSPOT” on B-TV, Monday to Friday at 21:30
B-TV (Business TV) now telecasts a 10-minute English-language news program called BSPOT every
evening from Monday to Friday at 21:30, taking most of the stories from the BCM NewsWire.
___________________________________________
NEW POSTINGS ON BCM WEBSITE'S 'PRESENTATIONS' AND 'MONGOLIA REPORTS'
Several draft laws, still to be discussed in Parliament, are posted on our website, in the Legislative
Working Group section.
‗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 are posted in BCM website‘s "Resource,
Presentations" for your review.
‗Mongolia Reports‘ including Z. Batbayar, Deputy Director of the Water Authority, at BCM‘s
Environmental Working Group‘s recent meeting, 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 reports posted on BCM's website (www.bcmongolia.org) in the
―Resource, Mongolia Reports‖ section.
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.
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]
Year 2010 *13.0% [Source: NSOM]
May 31, 2011 *4.2% [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 – July 7, 2011
Currency Name Currency Rate
US dollar USD 1,244.25
Euro EUR 1,778.66
Japanese yen JPY 15.37
British pound GBP 1,991.73
Hong Kong dollar HKD 159.85
Chinese Yuan CNY 192.41
Russian Ruble RUB 44.38
South Korean won KRW 1.17
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.