This document summarizes news from the Business Council of Mongolia newsletter dated April 23, 2010. It covers several topics:
- Mongolian MPs gave positive reviews of Boroo Gold's operations and supported allowing it to continue mining.
- The Mongolian government is considering graduated royalty rates on minerals to replace the windfall profits tax.
- Khan Resources filed a court claim challenging the invalidation of its mining license, saying its planned buyout will not be affected.
- The Constitutional Court dismissed a petition regarding Petro China's oil exploration activities, ruling that Mongolian laws do not apply due to an earlier agreement.
- Documents related to investor selection and agreements for the Tavan
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 bill forced electronic OEMs to analyze its supply chain to ensure compliance with the new law. The law is not aimed at banning conflict minerals if they originate from the DRC. Manufacturers can still source conflict minerals from the DRC or any adjoining country, but are likely to face liability on failure to disclose their sourcing practices.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 bill forced electronic OEMs to analyze its supply chain to ensure compliance with the new law. The law is not aimed at banning conflict minerals if they originate from the DRC. Manufacturers can still source conflict minerals from the DRC or any adjoining country, but are likely to face liability on failure to disclose their sourcing practices.
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Future Of Fintech In India | Evolution Of Fintech In IndiaTheUnitedIndian
Navigating the Future of Fintech in India: Insights into how AI, blockchain, and digital payments are driving unprecedented growth in India's fintech industry, redefining financial services and accessibility.
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role of women and girls in various terror groupssadiakorobi2
Women have three distinct types of involvement: direct involvement in terrorist acts; enabling of others to commit such acts; and facilitating the disengagement of others from violent or extremist groups.
‘वोटर्स विल मस्ट प्रीवेल’ (मतदाताओं को जीतना होगा) अभियान द्वारा जारी हेल्पलाइन नंबर, 4 जून को सुबह 7 बजे से दोपहर 12 बजे तक मतगणना प्रक्रिया में कहीं भी किसी भी तरह के उल्लंघन की रिपोर्ट करने के लिए खुला रहेगा।
हम आग्रह करते हैं कि जो भी सत्ता में आए, वह संविधान का पालन करे, उसकी रक्षा करे और उसे बनाए रखे।" प्रस्ताव में कुल तीन प्रमुख हस्तक्षेप और उनके तंत्र भी प्रस्तुत किए गए। पहला हस्तक्षेप स्वतंत्र मीडिया को प्रोत्साहित करके, वास्तविकता पर आधारित काउंटर नैरेटिव का निर्माण करके और सत्तारूढ़ सरकार द्वारा नियोजित मनोवैज्ञानिक हेरफेर की रणनीति का मुकाबला करके लोगों द्वारा निर्धारित कथा को बनाए रखना और उस पर कार्यकरना था।
Welcome to the new Mizzima Weekly !
Mizzima Media Group is pleased to announce the relaunch of Mizzima Weekly. Mizzima is dedicated to helping our readers and viewers keep up to date on the latest developments in Myanmar and related to Myanmar by offering analysis and insight into the subjects that matter. Our websites and our social media channels provide readers and viewers with up-to-the-minute and up-to-date news, which we don’t necessarily need to replicate in our Mizzima Weekly magazine. But where we see a gap is in providing more analysis, insight and in-depth coverage of Myanmar, that is of particular interest to a range of readers.
In a May 9, 2024 paper, Juri Opitz from the University of Zurich, along with Shira Wein and Nathan Schneider form Georgetown University, discussed the importance of linguistic expertise in natural language processing (NLP) in an era dominated by large language models (LLMs).
The authors explained that while machine translation (MT) previously relied heavily on linguists, the landscape has shifted. “Linguistics is no longer front and center in the way we build NLP systems,” they said. With the emergence of LLMs, which can generate fluent text without the need for specialized modules to handle grammar or semantic coherence, the need for linguistic expertise in NLP is being questioned.
01062024_First India Newspaper Jaipur.pdfFIRST INDIA
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ys jagan mohan reddy political career, Biography.pdfVoterMood
Yeduguri Sandinti Jagan Mohan Reddy, often referred to as Y.S. Jagan Mohan Reddy, is an Indian politician who currently serves as the Chief Minister of the state of Andhra Pradesh. He was born on December 21, 1972, in Pulivendula, Andhra Pradesh, to Yeduguri Sandinti Rajasekhara Reddy (popularly known as YSR), a former Chief Minister of Andhra Pradesh, and Y.S. Vijayamma.
1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 115, April 23, 2010
NEWS HIGHLIGHTS:
Business:
MPs give Boroo Gold an “A” for its work;
Government wants graduated royalty rates on minerals;
Khan files claim in court, says buyout will not be affected;
Court dismisses petition on Petro China‟s activities;
Tavan Tolgoi documents to go to National Security Council;
Garrison to install cutting-edge technology at Tovsiir project;
Loro Piana of Italy opens subsidiary in Ulaanbaatar;
Little chance for Mongolian companies in Tavan Tolgoi;
Forum on May 27 to discuss challenges to corporate governance;
Russian opposition to copper smelter at Erdenet recalled;
Khan Bank offers free trips, tickets to World Cup in South Africa;
Coke net rises 20%, helped by business outside USA;
Higher prices likely to make up for Rio Tinto‟s production shortfall.
Economy:
Foreign currency inflow rises 2.2 times y-o-y;
Loss of livestock is MNT360 billion;
Foreign stock exchanges interested in developing MSE;
Fraser Survey finds Mongolia inhospitable for mining investment;
Minimum wages can be fixed on hourly basis;
Parliament wants work on copper smelter at Erdenet to begin this year;
Mongolia must produce value added products;
IMF highlights sovereign debt risks;
Talk about trading in Tavan Tolgoi stock premature at this stage;
Finance Minister sees progressive fall in GDP percentage of budget revenue;
Cashmere production likely to come under „ethical‟ scrutiny;
Individual miners‟ issues to be regulated;
Risk aversion knocks copper after Goldman charge;
EITI Board appreciates Mongolia‟s achievements;
Members‟ non-compliance threatens transparency initiative;
New USD100 currency notes early next year;
Asia's growth curve lures firms to Hong Kong;
Capital bonanza worries emerging markets;
UN says China‟s emissions effort will cost up to USD86 billion a year;
A yuan rise will be more than a big yawn;
China adjusts policy but avoids rate increase to cool prices;
Russia worries over ruble‟s appreciation;
BRIC group urges swift reform of financial system.
Politics:
High officials, including MPs, declare assets and income;
PM wants less bureaucracy, more transparency;
2. DP contributing to MPRP‟s strength, complain leaders;
Assessment of MDG-based strategy to begin after June;
Policy directives see rise in human development index score;
Hearing on July 1 incidents postponed again;
Diplomatic enclave planned;
China extends demographic and corporate control over neighbors.
*Click on titles above to link to articles.
MEETING NOTICE TO BCM MEMBERS
The next BCM monthly meeting for Members will be Monday, April 26, 2010 at 5 PM at the Open
Society Forum. Our bilingual meeting will feature the following:
• Mr. D. Damba, President of the Mongolian National Mining Association (MNMA), will provide an
update on the Mining sector.
• Dr. Kerry ten Kate, Director, Business and Biodiversity Offsets Program (BBOP), Forest Trends, will
discuss ―Biodiversity offsets: Opportunities for business in Mongolia‖.
• Mr. Ben Turnbull, CEO, State Bank of Mongolia, will give a presentation on ―State Bank, an
Introduction‖.
We will again conclude the business portion of the meeting by asking BCM members in the audience
to briefly comment on specific problems, solutions, risks, opportunities and/or strategies affecting
their businesses. BCM members can learn from one another from sharing good news and bad.
Teleconferencing will again be available for Members not able to attend. The call number is (1-218)
936-7979, access code 771358 to be connected. The cost will be solely that of the long distance call
to the above U.S. number.
BUSINESS
MPs GIVE BOROO GOLD AN “A” FOR ITS WORK
Most MPs taking part in a discussion of Boroo Gold‘s request to continue operations at its mine at
Zuun Kharaa felt the company‘s performance deserved an ―A‖ grade and favored granting the
permission. Excavation at the mine is expected to be over in about six months unless the company
is allowed to extract gold from sand. It has succeeded in producing 1.2 tons of gold this way in an
experiment using a different technology and estimates a further nine tons can be produced.
During a discussion on the issue at the Standing Committee on Environment and Agriculture, Mr.
E.Bat-Uul said Canadian-invested Boroo Gold has never received a fair deal from Mongolian
authorities. He favored grant of permission. Supporting him, Mr. Kh.Narankhuu said the Erdenet
factory has been using this technology since 1996, and there is no reason to deny Boroo Gold
permission.
Boroo Gold has worked to its full capacity since 2004 to extract 41.2 tons of gold until now. Its sales
figures reached MNT880 billion at the end of 2009. It has paid MNT190 billion in taxes. It was
exempted from paying the windfall profits tax, but it was charged MNT150 for one cubic meter of
water instead of the standard MNT6.
Source: Ardiin Erkh
GOVERNMENT WANTS GRADUATED ROYALTY RATES ON MINERALS
The Government of Mongolia is considering an amendment to the Minerals Law and introduction of
graduated royalty rates on all minerals, except brown and thermal coal, to replace the windfall
profits tax.
Source: BCM Tax Working Group
KHAN FILES CLAIM IN COURT, SAYS BUYOUT WILL NOT BE AFFECTED
Shares of Khan Resources Inc. jumped 23 percent on Wednesday after the company said the
Mongolian Nuclear Energy Agency's (NEA) move to invalidate the mining license of its units would
3. not affect its buyout, and that it has challenged the decision in court. Earlier this year, the
Canadian explorer agreed to be bought by a unit of China National Nuclear Corp in a CAD56.5
million deal.
"Khan has no new information to indicate that the purported NEA invalidation notices and other
recent events in Mongolia will adversely impact CNNC's ability to obtain Chinese Government
approval or the likelihood of the CNNC offer proceeding," it said in a statement.
It also said a Khan unit, Central Asian Uranium Co LLC, in which it holds a 58 percent stake, has
filed a claim in a Mongolian court asserting that the NEA has no legal authority to make a decision
to invalidate the mining license. Khan Resources LLC is also in the process of preparing a similar
claim and intends to file it soon.
Khan Resources is also trying to start talks with the Mongolian Government regarding NEA's moves,
and has sent a letter to the Prime Minister requesting him to review and overturn the decision.
The unit, in which Russian and Mongolian State concerns hold a 21 percent stake each, operates in
the Dornod deposit in Mongolia which has uranium reserves of about 22,000 tons.
Source: Reuters.com
COURT DISMISSES PETITION ON PETRO CHINA’S ACTIVITIES
Dismissing a petition filed on behalf of the Mongolian coalition of civic movements for
environmental protection, the Constitutional Court has ruled that the Constitutional Regulations
governing the Law on Oil cannot be applied to Petro China‘s operations in Mongolia as the original
1991 agreement between the company and the Government of the People‘s Republic of Mongolia
predates the adoption of the Constitution.
The Chinese company works in oil exploration in the Menen steppe in a far eastern Mongolian
province. The terms of the agreement that gives Chinese preferential rights to exploit this oil are
kept ―secret‖. There is so much popular interest in the agreements on Oyu Tolgoi and Tavan Tolgoi,
but Petro China Daching Tamsag Company works in Menen quietly, allowing few questions and
answering fewer.
Its extracting operation is expected to begin soon, after the present Product Sharing Agreement is
renewed, and shareholding ratios renegotiated with the Government. There is no word on what the
new agreements might contain, and the court‘s ruling virtually turns the entire oil field into
Chinese territory where Mongolian laws do not apply. However it cannot stifle the nagging feeling
that the agreement violates Mongolian laws which clearly state that only the Government and the
Oil Agency have the right to conduct any commercial activity related to oil.
Source: Onoodor
TAVAN TOLGOI DOCUMENTS TO GO TO NATIONAL SECURITY COUNCIL
The Government meeting on Wednesday discussed all matters pertaining to selection of the
investor(s) to develop the Tavan Tolgoi deposit on a contract operator basis and also the draft
investment agreement for the project. These will now be sent to Ministers and the National
Security Council (NSC). Their suggestions will be again discussed by the Government and a final
document will then be submitted to Parliament. Minister for Minerals and Energy D.Zorigt told
media that the documents will be forwarded to the NSC next week.
The final choices of contractors will be made on the basis of criteria such as the applicant‘s skills in
operating a mine and marketing the output, access to funds, plans to involve Mongolian companies
in the work, proposed contribution to development of value added production facilities,
commitment to environmental protection, and safety record.
Source: English.News.mn
GARRISON TO INSTALL CUTTING-EDGE TECHNOLOGY AT TOVSHIIR PROJECT
Garrison International has appointed Consep International to establish a turnkey gold plant at its
Tovshiir gold project in South Eastern Mongolia. The Consep edge revolves around producing a
concentrate from ore that undergoes intensive cyanide leaching in a closed circuit system. As
compared to most other approaches and technologies, Consep's patented 20 ton-per-day closed
cyanide-electrowin circuit uses a small quantity of chemicals.
Test work on test ore from the Tovshiir project has produced overall gold recovery of 86%.
Garrison's management is optimistic that similar recovery rates will be achieved when full-scale
production commences. Consep facilities are fully automated.
Using state-of-the-art, leading edge technology will enable Garrison to maintain greater control
over all aspects of production, including by helping to minimize security risks during production,
and reducing the potential risks to wildlife, livestock, local inhabitants and the surrounding
4. environment. The plant should arrive for installation at the Tovshiir site during the 3rd quarter of
Garrison's 2010 financial year.
Source: www.garrison-intl.com
LORO PIANA OF ITALY OPENS SUBSIDIARY IN ULAANBAATAR
The Italian company Loro Piana, known for some of the world‘s finest luxury cashmere, has opened
a subsidiary in Ulaanbaatar, both to establish long-term relationships with nomadic herdsmen and
to monitor quality control. This has been accompanied by the publication by the company of ‗Baby
Cashmere: The Long Journey of Excellence‘, a book charting cashmere production in Mongolia.
Mr. Pier Luigi Loro Piana, joint chief executive, says, ―We believe it is vital to maintain optimal
conditions for the animals to preserve the cashmere‘s quality. The flocks must live naturally.‖
Source: The Financial Times
LITTLE CHANCE FOR MONGOLIAN COMPANIES IN TAVAN TOLGOI
A Government meeting early last week could not discuss the Tavan Tolgoi issue as planned because
most of the Ministers had just come back from foreign visits and pleaded lack of preparation. The
ordinary people are thus still in the dark about the Government‘s intentions on the deposit. Minister
of Finance S.Bayartsogt has told media two consortiums will be selected as operator companies, but
who they are or how they will be selected remains uncertain.
There is, however, a feeling that the oft-announced policy to support national companies is not
going to be followed. Not one of the 11 in the running after the first phase of selection has even the
slightest scent of Mongolia, and there has been no indication from the Government on how it will
help Mongolian companies play a part.
The operator companies will be asked for large sums as advance payment so that the Government
can fulfill its promise to give MNT1.5 million to each citizen. This actually blocks the chances of
Mongolian companies which are interested in Tavan Tolgoi as none of them has that kind of money.
The licenses which were owned by about 10 big Mongolian companies were almost literally taken
away by force. Now all that Mongolian companies can hope for is to form a consortium with foreign
companies.
Source: Ardiin Erkh
FORUM ON MAY 27 TO DISCUSS CHALLENGES TO CORPORATE GOVERNANCE
The third annual Mongolia Corporate Governance Forum, to be held on May 27, will bring together,
as in earlier years, Mongolian business leaders and policy makers. They will present and discuss the
results of the World Bank ROSC findings and recommendations. The forum will also discuss other
topical issues relevant to the current state of the markets and help form a general consensus on a
policy reform agenda in Mongolia. The forum will end with an action statement by the participating
business leaders in policy and legal and regulatory frameworks to remedy the corporate governance
challenges.
The key discussion points will be:
- World Bank Report on Standards and Codes on Corporate Governance 2010;
- Corporate Governance reform process: Progress and challenges top investment
environment;
- Corporate Governance in banking sector in light of recent crises;
- Investors‘ perspectives on Mongolia: Expectations and requirements;
- Future corporate governance policy frameworks and regulation.
Corporate Governance Development Center is the organizer of the event, with BCM, IFC, Eurasia
Capital, USAID and EPRC-Chemonics acting as partners in arranging it.
Source: Corporate Governance Development Center
RUSSIAN OPPOSITION TO COPPER SMELTER AT ERDENET RECALLED
Mr. D. Sugar, Chairman of the State Property Committee, has revealed that the Erdenet Mining
Corporation has posted a profit of MNT119 billion, which will go a long way in reducing its
substantial debt burden. The Russia-Mongolia joint venture Mongolrostsvetmet suffered losses but
with global commodity prices rising once again, it hopes to make a profit of around MNT500 million
next year.
Mr. Sugar indicated that some shares of Erdenet will sooner or later be sold at international stock
exchanges, but said this will not be allowed to interfere with Mongolia‘s 51% ownership of the
plant. He felt a copper smelter should have been built at Erdenet years ago, at a cost much lower
than the presently estimated USD500 million, but there were many reasons Mongolia could not have
5. its way. ―Frankly speaking, the Russian side never wanted Mongolia to export end products, and we
never had the money to go ahead despite the Russian objection,‖ he said.
Source: Zuunii Medee
KHAN BANK OFFERS FREE TRIPS, TICKETS TO WORLD CUP IN SOUTH AFRICA
All Khan Bank international Visa card holders as of May 5 this year will be entered in a special draw
and the 10 winners will be offered free trips to South Africa for the FIFA World Cup and free tickets
to two games in the tournament.
Source: Khan Bank
COKE NET RISES 20%, HELPED BY BUSINESS OUTSIDE USA
Coca-Cola Co.'s first-quarter profit rose 20%, but sales in North America continued to decline. The
company's international business, however, continued to surge and helped push profit ahead of
analysts' expectations. The soda company expects a moderate macroeconomic recovery as global
markets emerge from the recession, but said consumers haven't recovered fully yet.
Coca-Cola's first-quarter revenue increased 5% to USD7.53 billion, but fell short of Wall Street's
forecast amid the North America declines. World-wide volume rose 3%, boosted by strong growth in
emerging markets such as India. North America sales dropped 6% as volume declined 2%.
The U.S., which is the most profitable beverage market in the world, has been a persistently weak
spot for beverage makers Coke and PepsiCo Inc., which are counting on the acquisitions of their
bottlers to revive that business.
Source: The Wall Street Journal Asia
HIGHER PRICES LIKELY TO MAKE UP FOR RIO TINTO’S PRODUCTION SHORTFALL
Rio Tinto last week posted disappointing first-quarter production results, but predicted a 7.8%
increase in iron-ore output for the year in a signal that it expects China's demand for the world's
minerals to continue to surge. Analysts said the Anglo-Australian mining giant's production shortfalls
in iron ore, copper, aluminum and coal would likely be made up by rising commodity prices.
Separately, Rio Tinto Chief Executive Tom Albanese addressed the conviction earlier this month of
four company employees in China, telling shareholders that "there are different definitions of
business secrets in different countries" but adding, "We would never ask our employees to do
anything we know to be illegal."
Analysts said any negative impact on earnings forecasts from the production report would be
"immaterial" compared with the impact of surging commodity prices, which were running ahead of
forecasts. Mr. Albanese said most of the company's operations had still been running at capacity
and that an improving outlook was encouraging the miner to resume spending on growth projects.
Source: The Wall Street Journal Asia
ECONOMY
FOREIGN CURRENCY INFLOW RISES 2.2 TIMES Y-O-Y
Some 100 currency trade specialists from banks, major foreign trade companies, and Government
and international organizations, as well as economists and researchers participated at a recent
meeting called by the Central Bank. The per-day fluctuation of the MNT rate against the USD in the
last 11 months has been regularly under 1 percentage point. Foreign currency inflow has increased
2.2 times over last year and the official reserve of foreign currency has reached USD1.3 billion.
There has been a marked improvement in currency market information, transparency and
accessibility.
The meeting underlined the role of currency rate sustainability in supporting the economic revival,
which has only begun. The country‘s economic, financial, and banking sectors are still fragile, and
the threat of inflation is around the corner as large sums of cash are likely to be entering the
market soon, and adequate provisions to ensure currency stability are not yet in place. Looking
ahead, the participants discussed and approved several recommendations for post-crisis economic
management, and strengthening the foreign currency market.
Source: Undesnii Shuudan
LOSS OF LIVESTOCK IS MNT360 BILLION
A special Government meeting has adopted a comprehensive plan on improving conditions in the
animal husbandry sector hit by natural disaster, and also approved a temporary measure to provide
animals to herders who are left with no livestock.
6. According to the latest compiled reports, the dzud has affected 80.9 percent of the territory of the
country, covering 175 districts of 17 provinces. Some 57.3 percent of the total herder community or
97,500 households have been hit. Severe snow storms led to 17 people aged between 12 and 89
years freezing to death while pasturing their animals.
The total loss of animals is counted at 6.5 million, with the figure likely to rise. Of these 599,416
were big animals like horses, cattle and camels, while more than six million were sheep and goats,
with the latter alone accounting for more than half the number. This is a direct loss of MNT360
billion at current market prices.
The dzud has left 8,711 herder families with no animals at all, and 32,756 families have lost more
than 50 percent of their herd. Around 1,400 families have already moved to urban centers. About
69,600 herders had borrowed altogether MNT63.9 billion from commercial banks, of which MNT2.1
billion has been traced to those who have lost all or most of their animals.
The Government has so far spent MNT6.8 billion on helping herders, with international
organizations, individuals and entities sending aid worth MNT3.5 billion. Foreign relief aid programs
have spent MNT10.8 billion so far.
Source: Ardin Erkh, Montsame
FOREIGN STOCK EXCHANGES INTERESTED IN DEVELOPING MSE
Mr. L. Ganbat, Head of the Administrative Department at the State Property Committee (SPC), has
said that stock exchanges of Germany, Hong Kong, South Korea, and Japan have expressed interest
in helping restructure the Mongolian Stock Exchange (MSE) which is slated to be privatized this
year. Asked why foreign help was being sought, Mr. Ganbat said nationally available skills and
experience are not adequate to develop the kind of sophisticated securities market that will be
required when Mongolian natural resources finally attract foreign enterprises in numbers. The goal
is to allow Mongolians the same easy and equal access to trading in stocks as foreign investors
enjoy.
The SPC has already reconstituted the MSE executive board. The new Directors are: Mr.
Ch.Gankhuyag, CEO of Tenger Financial Cooperative, Mr. B.Bold, CEO of Newcom, Mr.
Z.Shagdarsuren, General Secretary of the Association of Banks, Mr. N.Tsogt, an international
lawyer, and Mr. Ganbat and two others from the SPC. Mr. D.Boldbaatar of the Central Bank and Mr.
L.Bayaraa from the Ministry of Finance were re-appointed. The SPC wants to get a team of
Mongolians who have studied the relevant disciplines abroad to work under the direction of the
Board to fulfill the Government directive to develop the country‘s capital market.
The Government has decided in principle that several State-owned companies or joint ventures
controlling strategically important mineral deposits will issue IPOs at international securities
markets, but no specific decision has yet been taken on the shareholding ratio in the companies or
on details on the IPOs, Mr. Ganbat said.
Source: Zuunii Medee, Mongolia-business.com
FRASER SURVEY FINDS MONGOLIA INHOSPITABLE FOR MINING INVESTMENT
The Fraser Institute's annual survey reveals miners and explorers still believe Mongolia is a
nightmare. It is seen as ―suffering from endless tinkering with mining laws and regulations,
resource-nationalism, creeping expropriation, and non-transparency".
The Institute‘s annual survey of mining companies was published last week, representing the
opinions of 670 mining executives and managers internationally on the policy and mineral riches of
72 jurisdictions on all continents except Antarctica. Companies participating in the survey reported
exploration spending of USD2.9 billion in 2009 and USD3.6 billion in 2008.
"Last year's survey showed significant pessimism towards new mining investment, but this year's
survey reveals a strong rebound in optimism," the Fraser Institute noted. Almost twice as many
mining companies (333) said they will increase explore budgets. "Miners also expect mineral prices
will increase over the next two years: 64 percent expect mineral prices will rise moderately, while
nearly 20% expect substantial increases," the survey said. Twenty percent or more expect peak
prices for copper and gold, while 10% expect new peaks for silver, nickel, platinum, zinc and coal.
California dwells in the cellar as a least favorable jurisdiction along with Venezuela, Ecuador, the
Philippines, Mongolia, Bolivia, Honduras and Guatemala. ―Respondents said California's staunchly
environmentalist polices create a strong deterrent to investment by interfering with mining
practices that are proven to be clean and responsible," the report observed. "Unfortunately, the
rest of the worst-ranked jurisdictions are developing nations that urgently need the new jobs and
economic prosperity mining can create."
Source: www.fraserinstitute.org
7. For the complete Fraser Institute annual survey, see BCM website - Resources, Mongolia Reports.
MINIMUM WAGES CAN BE FIXED ON HOURLY BASIS
Parliament has approved a new law to change the procedures of computing minimum wages that
comes into force on January 1, 2011. Wages in certain jobs will be calculated on the basis of MNT
670 per hour. This will allow many, including students, to hold part time jobs. The minimum wages
will vary from sector to sector, with workers in the mining or infrastructure sectors not bound by
the mandatory rate of MNT108,000 per month. Every sector will be free to determine its own
minimum wage rates.
Source: Undesnii Shuudan
PARLIAMENT WANTS WORK ON COPPER SMELTER AT ERDENET TO BEGIN THIS YEAR
A day after members of a Standing Committee had threatened the concerned Minister with dire
steps if action was not seen to be taken on building a copper smelter without delay, Parliament last
week approved, with 90.4 percent MPs voting for it, a proposal to begin work on one at the Erdenet
factory this year. The most important consideration was the new jobs the smelter would offer
though some MPs worried that it might not be economically viable as only 23 percent of the output
at the Erdenet mines is copper, the rest being soil.
Mr. Kh.Narankhuu noted the smelter would lead to a drastic fall in the volume of railway freight,
creating problems for the UB Railway. On the flip side will be the trade benefits, as Mongolia would
not have to depend solely on China to buy its copper ore if it can produce refined copper. Erdenet
produces 130,000 tons of ore a year, part of which can be refined and part exported as ore.
There was no indication where the money will come from, as the Erdenet factory is already in debt.
Source: Ardiin Erkh
MONGOLIA MUST PRODUCE VALUE ADDED PRODUCTS
The global financial crisis hit one and all but while some nations are well on their way to recovery,
others are still down. Both its neighbors are setting their house in order, but Mongolia continues to
be in the wilderness. Some may not agree, saying that every citizen has received or will soon
receive MNT70,000, with another MNT50,000 to follow soon, before the final MNT500,000 is
distributed. They do not ponder what the country‘s condition is. Raw minerals are our only export,
and we continue to import around 80% of our consumer goods. Substantial revenue has been
generated in recent months from the rise in copper and gold prices, but most of this goes toward
paying for petrol and diesel imports.
An official of the Mongolian Industrial Corporation has said USD1.7 billion is needed to establish a
plant to liquefy coal. Such investments have to be made as only industrial development can lift
Mongolia up. Once we start producing value added products, we have the potential to produce
USD1.1 billion worth of goods a year, raising GDP by 20%-25%. Only then can we look at our
neighbors without wondering about disparity.
Source: Onoodor
IMF HIGHLIGHTS SOVEREIGN DEBT RISKS
A healthier world economy and better financial conditions have reduced banks‘ need to write down
assets but sovereign debt problems may be spreading, according to the International Monetary
Fund. In its twice-yearly global financial stability report, the fund reduced its estimate of the
writedowns required of banks around the world to USD2,300 billion from an earlier estimate of
USD2,800 billion made six months ago. A recovery in the financial markets had increased the value
of their assets and made it easier to raise capital, the fund said.
But the IMF said that the credit recovery would be ―slow, shallow and uneven‖, and that sovereign
debt problems in countries such as Greece had the potential to undermine the recovery. The rise in
sovereign credit risk premiums in the early stage in the crisis had now been compounded by growing
concern about the creditworthiness of countries with heavy government debt burdens.
Prime Minister S. Batbold recently said in Hong Kong that Mongolia plans to raise up to USD1 billion
through a sovereign bond offering in the fourth quarter.
The IMF report compared how sovereign risk focusing on government solvency was transmitted
between European countries over different phases of the global financial crisis.
Source: The Financial Times
TALK ABOUT TRADING IN TAVAN TOLGOI STOCK PREMATURE AT THIS STAGE
The Minerals Law says 10% of the stocks of any entity owning the mining license of a strategically
8. important deposit have to be traded in the Mongolian Stock Exchange (MSE), but nothing like this
has taken place so far. State Property Committee official L. Ganbat has told media that there is no
ulterior reason behind this and the provision will be effective as soon as the MSE is ready to handle
the work. Negotiations are on with the Hong Kong Stock Exchange to facilitate arrangements for
this.
He also said the reported declaration by some MPs that the MNT1.5 million to be disbursed to every
citizen will include shares in the Tavan Tolgoi deposit was premature. The mandatory compulsion to
sell stocks does not apply to companies with exploration licenses and no decision has yet been
taken on who will operate the coal deposit, so anything to do with such stocks now is nothing but
speculation.
Source: Zuunii Medee
FINANCE MINISTER SEES PROGRESSIVE FALL IN GDP PERCENTAGE OF BUDGET REVENUE
Finance Minister S.Bayartsogt last week submitted broad outlines of the budget for 2011 and draft
assumptions for the budget for the two years after that to Parliament Speaker D.Demberel. The
mid-term assumption estimates budget income for 2011 will be 46.9 percent of the GDP, for 2012,
42.8 percent, and for 2013, 34 percent, after taking into account the Government‘s development
policies and programs, and global market projections. The average price for copper and gold in
2011-2012 was taken to be USD 6,800-7,000 per ton and USD1,100-1,200 per ounce respectively.
The Government intends to adopt an amended Mineral Law by 2011. This will raise royalty rates as
prices increase in the international market, with no relation to investors‘ profits.
It was indicated that the money from the Human Development Fund will be distributed fully in
2011-2012. The budget expense needs to be cut by MNT338 billion to keep the deficit at roughly
about four percent of the GDP.
Source: Onoodor, Ardin Erkh
CASHMERE PRODUCTION LIKELY TO COME UNDER ETHICAL SCRUTINY
Mongolian herders whose cashmere production is prey to price fluctuations, often attributed to
manipulation by Chinese traders, may now fall under closer scrutiny from end-users, cashmere
producers in the West. ―There is too little knowledge about the impact of cashmere production,‖
says the spokesman of a growing group of companies working to raise awareness of the issues
surrounding its production, and the development could create fresh hardship for herders already
hemmed in by the dzud. The merchandise standards manager of a British retails group says, ―There
has to be trust but suppliers who understand our expectations on sourcing also understand that if
that trust is broken, they risk their long-term trading relationship.‖
Strong, light, warm to wear, and deliciously soft, cashmere is wonderfully luxurious but, with
clothing production falling under increasing environmental scrutiny, questions are now being asked
about cashmere production. Woven from the soft hair of goats, cashmere is both natural and long-
lasting but its production has raised concerns over desertification, caused by over-grazed
grasslands, and the possible cruelty to goats kept in confined spaces. Such worries have prompted
some cashmere manufacturers to investigate their supply chains more thoroughly.
Even though ―ethical‖ has become an increasingly valuable selling point, for most manufacturers,
the cashmere supply chain is so complicated that they have little chance to fully audit supply in
order to make claims with assurance. But attitudes at the luxury end are slowly changing, as are
attitudes beyond the fashion industry.
China provides a government subsidy to farmers who can demonstrate good land management.
Organizations such as Sustainable Agriculture Research and Education have funded projects to
develop improved combing techniques. These techniques discourage the use of speedy shearing, a
process that can leave goats with little or no coat for warmth. The United States Agency for
International Development has launched a campaign to teach combing to some 170,000 Afghani
goatherds, which will boost rural incomes from herds more typically farmed for meat, milk or
leather. The aim is to make cashmere as long-lasting, and sustainable, as possible.
Source: The Financial Times
INDIVIDUAL MINERS’ ISSUES TO BE REGULATED
The Government will submit to Parliament three draft amendments seeking to coordinate issues
related to extraction work in small and unorganized mines, mainly the activities of those commonly
known as ninjas. These pertain to the Law on Mineral Resources, the Law on Income Tax covering
persons whose business income is impossible to determine, and the Law on Land.
The expected total effect of the proposed amendments is to improve conditions in the small mining
9. sector. Stricter labor safety requirements will be imposed, and miners will have to form some
organization such as a cooperative. Figures collected in August 2009 found 35,100 people work in
their individual capacity in 101 territories of 57 districts of 18 provinces, extracting gold, coal,
fluorspar, tungsten and other mineral resources.
Source: Ardin Erkh
RISK AVERSION KNOCKS COPPER AFTER GOLDMAN CHARGE
Risk aversion drove copper to a three-week low on Monday, as investors fretted about the potential
impact of fraud charges against Goldman Sachs, Wall Street's most influential bank and a leading
commodities player. Investors were seen parking their cash into the safety of the U.S. dollar,
which tends to make dollar-priced metals more expensive for non-U.S. investors, as the
combination of the Goldman news and lingering concerns about Greece's debt compounded the
shaky market sentiment.
Copper for May delivery on the New York Mercantile Exchange's COMEX division ended down 1.75
cents at USD3.497 per lb, its lowest level on a closing basis since March 26. On the London Metal
Exchange, copper for three months delivery touched a session low of USD7,610, its weakest since
March 29, before ending at USD7,696 a ton from USD7,763 on Friday, when it lost over 2 percent of
its value.
Commodity and equity markets collapsed late on Friday after the U.S. Securities and Exchange
Commission charged Goldman Sachs with fraud over its marketing of a debt product tied to
subprime mortgages that was designed to fail.
Source: Reuters.com
EITI BOARD APPRECIATES MONGLIA’S ACHIEVEMENTS
The Extractive Industries Transparency Initiative (EITI) board last week decided to extend the
validation deadline for Ghana and 15 other implementing countries. EITI rules permit an extension
only if a country demonstrates that its inability to meet the deadline is due to exceptional and
unforeseeable circumstances outside its control. No new deadline has been set. (See next story for
an earlier report giving the background.)
"The decision by the EITI Board, consisting of representatives from governments, civil society and
companies, has reinforced the credibility of the EITI. Rules were rigorously applied, and countries
will still need to make fast progress. Consensus was forged within the Board after extensive
discussions,‖ said Mr. Peter Eigen, chair of the EITI Board, and founder of Transparency
International.
Mongolia, which is yet to be confirmed as EITI Compliant, submitted its final EITI validation report
before its deadline of March 9. The Board welcomed the country's achievements in EITI
implementation and noted that the validation report concludes that further steps need to be taken
to achieve EITI Compliant status. Therefore Mongolia remains an EITI Candidate. Within the next six
months, the International Secretariat will assess whether the recommendations of the Board to
Mongolia have been adequately addressed. The International Secretariat will then make a
recommendation to the Board on whether they are EITI Compliant.
Read more…
EITI is a voluntary initiative born out of the 2002 World Summit on Sustainable Development in
Johannesburg. It is meant to address the resource curse syndrome that has bedeviled many natural
resource dependent countries in the developing world. It remains the only credible international
standard for improved transparency and accountability in the generation and use of extractive
sector revenues.
Source: allAfrica.com
MEMBERS’ NON-COMPLIANCE THREATENS TRANSPARENCY INITIATIVE
The board of the Extractive Industries Transparency Initiative can pat itself on the back for its
eight-year-old track record. The EITI also confronts a decision that could bring its success to an
abrupt end. The initiative was launched as a reaction to the all-too-regular diversion of billion-
dollar revenues from oil, gas, and mining in poor countries away from the resources‘ rightful owners
– the populations of those countries. It brings governments, civil society, and extractive companies
together in an effort to raise the transparency of money flows to host governments.
EITI was criticized at its inception for being voluntary and hence toothless. Its improbable
achievement, however, has been the provision of institutionalized moral persuasion. It helped, of
course, that public opinion in rich countries had been alerted to the breathtaking degree of
corruption in the extractive sector. But EITI‘s ability to set global transparency standards is also
10. due to its definition of clear, internationally comparable criteria and its recent requirement that
countries‘ fulfillment of those criteria be independently verified.
That contribution is now under threat. Only three out of 22 candidate countries, including
Mongolia, completed the verification before their deadline in March this year. Seventeen have
asked for an extension. How the board responds will determine the EITI‘s credibility. A short
extension may be reasonable for those very close to completion, who only missed the deadline
because of glitches in the first ever round of verification. But the board must resist the temptation
to ―encourage progress‖ by granting extensions too liberally.
Read more…
Kicking out countries hampered by disorganized institutions or political unrest may seem like
punishment for circumstances beyond their control. But moving the goalposts undermines the
reason those who can achieve credible transparency standards have for making the effort to do so.
The measure of EITI‘s success so far is that it is a must-have qualification. The rush to join
continues: this year Iraq has been admitted as a candidate and Chad recommended for admission.
The goal, however, must be that countries want to deserve the EITI stamp of approval, not just
receive it.
Source: The Financial Times
NEW USD100 CURRENCY NOTES EARLY NEXT YEAR
The U.S. Treasury Department has unveiled what it
calls "the next generation one hundred", a redesigned
USD100 bank note to stay ahead of counterfeiters. The
new notes will be available on February 10, 2011.
When they are moved, the inkwell will change color
from copper to green, and the Liberty Bell will appear.
The old bills will continue to be accepted until they
wear out.
Over the past decade, the $20, $50, $10 and $5 have
all received makeovers. The $100 bill last got a
makeover in March 1996.
Source: The Wall Street Journal Asia
ASIA’S GROWTH CURVE LURES FIRMS TO HONG KONG
Out-of-towners are stirring up a lot of buzz in the Hong Kong stock market these days. All are
seeking to sell shares on the Hong Kong Stock Exchange. Uniting them is the hope they can tap into
vast pools of money from Asia and from international investment funds seeking better returns than
those on offer in the mature markets of the U.S. and Europe.
Last week, top government officials from Mongolia were in Hong Kong also talking up their interest
in the Hong Kong stock market. The country is making a splash in the commodities world thanks to
rising interest in its plentiful mineral and energy deposits. It wants to list those holdings, along with
infrastructure assets being built to service them, on an overseas exchange. "Hong Kong is a natural
choice for us in terms of funding and expertise," Prime Minister S. Batbold told a room of Hong Kong
bankers and would-be investors.
Any Hong Kong offerings by state-owned Russian and Mongolian companies likely still are a ways off.
And, of course, any cracks in the China growth story—a reversal in the country's property market or
a rise in bad loans, for example—could put an end to the giddiness about Hong Kong's appeal as a
gateway to Asian growth. Nonetheless, all the talk spells good news for Hong Kong's ambitions as a
financial center. It adds, too, to the sense among many here that the center of gravity in global
financial markets is shifting toward Asia.
Source: The Wall Street Journal Asia
CAPITAL BONANZA WORRIES EMERGING MARKETS
Look just about anywhere in the emerging world, and real exchange rates have appreciated rapidly
over the past 12 months, with Mongolia no exception. The Bloomberg-JP Morgan Asia Dollar index,
which tracks the 10 most active emerging Asian currencies, is at a 19-month high.
This is due to a ―capital bonanza‖ in emerging markets, driven partly by ultra-low interest rates in
the developed world and rising interest rates elsewhere. But it also follows a fundamental
reassessment of the creditworthiness and prospects of emerging, versus developed, economies. The
result for the developing world is a possible capital surfeit and attendant fears of overvalued
11. exchange rates, floods of cheap imports and extreme volatility should the wall of money eventually
retreat.
In many ways though, such capital flows are the welcome first stage of the world‘s needed ―great
rebalancing‖. Much of the developed world is overleveraged. To pay down debt, it must generate
financial surpluses that need to be sustained over several years. These surpluses must be recycled
into one of two areas: greater corporate investment – unlikely given low rates of capacity
utilization in many western economies – or more exports to less indebted areas, such as the
emerging world.
Read more…
The big question for the emerging economies and their ilk is whether they have the microeconomic
flexibility to cope with the subsequent currency appreciation. The problem is not yet biting. Fast-
growing emerging economies have supported the recovery in developed economies, which has
sustained demand for exports. And developing economies are generating their own internal
demand.
Shipments between Asian countries that once formed part of a supply chain ending in the west are
often sold to regional consumers. ―The stuff is getting stuck in China, disappearing in local shops,
rather than being shipped on to other destinations,‖ says an economist at HSBC.
According to the International Institute of Finance, a bankers‘ research group, net private inflows
into emerging economies this year could exceed USD700 billion versus USD531 billion last year. In an
ideal world, these capital inflows would be channeled into financing the infrastructure and
productive resources in emerging states. Importing capital goods produced in the developed world
would close the circle in a beneficial way.
Underdeveloped local financial systems means this rosy scenario will not always follow, but policy
options are limited.
Source: The Financial Times
UN SAYS CHINA’S EMISSIONS EFFORT WILL COST UP TO USD86 BILLION A YEAR
In the face of rising energy needs from a wave of unprecedented urbanization, China will have to
spend up to USD86 billion a year to reach ambitious greenhouse-gas reduction targets, a United
Nations report says in one of the first estimates of how much China's global warming targets will
cost. China's leaders have pledged to cut carbon intensity—a measure of how much carbon is
emitted relative to how much the economy produces—by 40% to 45% by the year 2020. Reaching the
lower end of that range could actually save the country USD30 billion a year from efforts such as
improvements to power plants, which would increase energy efficiency and mean buying less coal,
natural gas or oil.
It is "proper and feasible for China to set its abatement target at 40% to 45%, even without
technological and financial assistance from the international community," the China Human
Development Report said. The report's authors say China's leaders will have to think twice about
more-ambitious goals because the costs quickly spiral up after the easiest improvements are made.
Trying to reach a target of 51% could cost USD86 billion a year, or 1.2% of projected gross domestic
product, according to the report prepared by the U.N. Development Program in collaboration with
Renmin University of China. And some critics say even that isn't enough to head off dramatic
increases in the absolute amount of greenhouse gases China emits, because the intensity targets
don't put absolute limits on China's carbon output.
Who will pay that huge bill is a key question in global climate-change talks. China says developed
countries such as the U.S. have a historical responsibility to pay for the clean-up because they
produced most of the carbon already in the atmosphere.
Read more…
But since 2007, China has surpassed the U.S. to be the world's top greenhouse-gas polluter, and
Western countries counter that any improvements could be wiped out unless China and other fast-
developing countries accept absolute caps on their carbon emissions.
Adding to the stresses is a huge new wave of urbanization, the report said. Over the next two
decades, a projected 350 million rural dwellers, more than the population of the U.S., will leave
the Chinese countryside and move to cities, requiring the construction of 50,000 high rises and 170
new mass-transport systems—double what Europe has, the report said.
Source: The Wall Street Journal Asia
A YUAN RISE WILL BE MORE THAN A BIG YAWN
When China allowed the yuan to rise in 2005, it startled investors and sent waves through the
financial markets. This time around, a revaluation is widely expected. So, will a higher yuan turn
12. out to be a big yawn?
Not necessarily. Based on the experience of 2005, a rising yuan could boost other Asian currencies,
lift commodity prices and hurt U.S. Treasury debt. Domestic-focused Chinese stocks are also likely
to rise. With China being an even bigger force throughout the global economy, sucking up
commodities and dominating exports, the market effects could be bigger this time around.
While some market moves have begun in anticipation of a policy change—oil prices are up and Asian
currencies are rising—some analysts believe the market may be underestimating the size of any
revaluation, leaving open the chance of a bigger-than-expected reaction when a change comes.
So far, the markets are betting on China making a gradual move. An excessively aggressive yuan
appreciation could be viewed as China clamping down strongly on economic growth. That could
result in a flight out of riskier assets, such as emerging-market stocks and commodities.
With a stronger yuan, imported raw materials already in high demand in China—such as crude and
copper—would become cheaper there. That could allow increased demand from Chinese companies.
Read more…
And all bets are off should China decide against making any changes to its currency policy. Asian
countries, among the most likely to be prime beneficiaries of a rising yuan, have already
strengthened in anticipation of a move, and more gains are likely.
Governments in Asia have spent the past year straining to keep their currencies from rising in order
to maintain their competitiveness against China. Managing these exchange rates has meant
aggressively selling their own currencies and buying dollars. If China allows more currency strength,
then other countries in the region that have strong trade with China, or compete with China, would
be more comfortable allowing their currencies to rise.
Source: The Wall Street Journal Asia
CHINA ADJUSTS POLICY BUT AVOIDS RATE INCREASE TO COOL PRICES
China has once again shown its preference for using administrative controls to manage its surging
economy, raising down-payment requirements for certain home buyers after announcing that
economic growth in the first quarter surged to 11.9% from a year earlier.
In any other major economy where growth had accelerated as quickly as China's, higher interest
rates would seem inevitable. But in China, authorities have been reluctant to raise rates, which
economists worry is putting them behind the curve in tackling risks of inflation and possible asset
bubbles.
"The Western world thinks change in interest rates is the most important monetary-policy tool.
However, it is absolutely not the case in China,‖ a former adviser to the People's Bank of China, has
said. "While interest rate is a price tool, quantitative tools are the most important in China, such as
loans and money supply." The preference for regulatory measures—such as outright caps on
lending—as opposed to price-based measures—such as interest rates to influence the market for
loans—reflects the historic legacy of China's command-based economy.
Chinese inflation data may give the central bank some breathing room on rates. The latest quarter's
gross domestic product growth compares with a 10.7% rise in the fourth quarter of 2009, and just
6.2% in last year's first quarter, the slowest quarterly expansion in nearly two decades.
Read more…
The Government already has taken several steps to cool down the overall economy, mainly by
reducing the quantity of lending by China's banks, almost all of which are Government controlled.
Authorities have set a lower target for loan growth this year, and have required banks to keep more
money in reserve. But two powerful levers that could control inflation by influencing the price of
money—higher interest rates and a stronger currency—have remained untouched, although many
analysts expect China to start gradually revaluing the yuan in the coming weeks.
Source: The Wall Street Journal Asia
RUSSIA WORRIES OVER RUBLE’S APPRECIATION
Prime Minister Vladimir Putin declared on Tuesday that Russia's one-year recession was over. But
the optimistic overview failed to mention the country‘s main economic worry: the rapidly
appreciating ruble. With economic recovery, a higher oil price and speculative capital inflows
driving Russian equities up 130 per cent last year, the ruble has appreciated from 33.5 to the dollar
a year ago to around 29 to the dollar today. The situation is a welcome change for the Government
from the first half of 2009, when the central bank sold billions of dollars to save the plummeting
currency.
But while the strong ruble may be a positive signal for investors, it has created its own problems:
economists are worried about export competitiveness and, worse, the possibility of a new asset
13. bubble. Both could threaten the meager growth that has been achieved since January, following an
8 per cent fall in economic output in 2009. Mr. Putin, speaking in Parliament, predicted growth
would be a modest 4 per cent in 2010.
Since the central bank is targeting inflation, it has to run a flexible foreign exchange policy. ―A
flexible exchange rate is an integral element of a formal inflation targeting system, as you cannot
target both the exchange rate and inflation at the same time,‖ said Mr. Odd Per Brekk, the
International Monetary Fund‘s Moscow representative. ―From this perspective, the increased
flexibility of the ruble that we have seen recently is a welcome move.‖ But Mr. Bond said there
were risks in allowing the currency to appreciate too much. ―The risk is that large inflows of hot
money would make the ruble too strong and reignite inflationary pressures.‖
Russia‘s central bank has tempered investor interest by lowering interest rates, cutting the
benchmark refinancing rate by a total of 475 basis points in the past year to a record low of 8.25
per cent.
Source: The Financial Times
BRIC GROUP URGES SWIFT REFORM OF FINANCIAL SYSTEM
Leading emerging powers last week called for swift reform of international financial institutions to
give developing countries a greater voice, saying their group was vital to achieving a new world
order. The call from the increasingly influential BRIC countries for more say in global financial
institutions such as the World Bank and the International Monetary Fund came ahead of this month's
G20 finance ministers' and IMF meetings in Washington.
The leaders of Brazil, Russia, India and China said that voting share reforms at the World Bank to
give developing countries more clout should be approved at the IMF meetings. Setting a specific
deadline, the group also said those reforms should be completed by a G20 summit in November.
The group has been pushing for reforms since the global financial crisis of 2008, arguing the current
system is unfairly dominated by advanced economies such as the United States, Japan and Europe.
The statement said the group would resist all trade protectionism and look into increasing
commerce with one another in local currencies, bypassing the U.S. dollar.
But the group, which has rowed back from talk last year of setting up a new reserve currency,
stressed the importance of maintaining the stability of major reserve currencies. As the largest
holder of U.S. Treasury bonds, China is not keen to see the value of its investments diminish.
Despite their economic clout and 40 percent share of the world's population, differences among the
four countries have become more evident since their first summit in Russia last year, exposing the
limitations of the group's ambitions.
Source: Reuters.com
POLITICS
HIGH OFFICIALS, INCLUDING MPS, DECLARE ASSETS AND INCOME
An unidentified Government official has been dismissed after the Independent Authority Against
Corruption (IAAC) found inaccuracies in his declaration of income and assets. Some 243 of
Mongolia's highest level officials made the mandatory disclosure before February 15. These have
now been published after the IAAC reviewed, investigated, and analyzed them. In October,
President Ts. Elbegdorj has expressed his unhappiness that the performance of the IAAC was not
satisfactory, as it ―touched only the tip of corruption, not the core‖.
The MP who tops the list in terms of income is Mr. D.Zorigt, from the DP and not to be confused
with the Minister for Minerals and Energy, who earned USD19.2million in 2009 (at MNT1,400 to the
USD). He was followed by Mr. B.Choijilsuren (MPRP) with USD2.8 million, and Mr. E.Munkh-Ochir
(MPRP) with USD900,000, who also owns five apartments, as does Mr. D.Odbayar (MPRP). The only
MP with more apartments is Mr. G.Bayarsaikhan (DP), who has six.
Some MPs are successful businessmen in their life outside politics and have declared substantial
amounts of investment in their other career. Once again, it is Mr. D.Zorigt (not the Minister) who
leads the pack with USD21 million in investments. Prime Minister S.Batbold follows him with USD12
million and third among the top ten is Minister of Roads and Transportation Kh.Battulga with USD8
million.
Read more…
Mr. P.Ochirbat, a member of the Constitutional Court, is the high official with the most money in
his bank savings accounts, with USD1million. A close second is Mr. N.Zoljargal, Vice President of the
Central Bank, who has USD928,000, and third on the list is Mr. J.Ènkhbayar, with USD642,000.
Mr. D.Kiyekshusan Batbayar(DP) valued his herd of livestock at USD269,000, while those of Mr. Kh.
14. Badamsuren (MPRP) and Mr. B.Bat-Erdene, both from the MPRP, were estimated at USD175,000 and
USD104,000 respectively.
Source: Mongolia-Web, Montsame
PM WANTS LESS BUREAUCRACY, MORE TRANSPARENCY
Prime Minister S.Batbold has said people need to be convinced that the Government and other
authorities are serious about eradicating corruption and that ―our words are not empty rhetoric‖.
He was speaking at a seminar on methods of implementing an anti-corruption plan with people‘s
participation.
Saying that bureaucracy and lack of transparency in administration nourish corruption, Mr. Batbold
called for ―glass walls‖ behind which nothing could be hidden. "There is much talk and many plans.
It is not that nothing has been achieved, but the measures adopted have to be much more
effective," the Prime Minister said, and called upon administrative officials to give the leadership in
any anti-corruption campaign. However, he made it clear the responsibility was not limited to State
organizations only. NGOs, others in the civil society and individual citizens also have to get actively
involved.
Source: Udriin Sonin
DP CONTRIBUTING TO MPRP’S STRENGTH, COMPLAIN LEADERS
A meeting of the Democratic Party‘s National Consultative Committee was marked by sharp
criticism of the party head, Mr. N.Altankhuyag, when he referred to the decision to distribute
MNT1.5 million to citizens as one of several noteworthy achievements of the coalition government.
The Head of the Union of Democratic Forces, Mr. Z.Enkhbold, said the DP had promised many other
things which the Government was in no hurry to implement. ―We did not promise cash and in any
case we did not win the election, so had no compulsion to fulfill our promises. By agreeing to the
MPRP demand, we have opened the way for them to go into the next election with the claim that
the MPRP fulfilled its promise to give money to the people,‖ he said. Mr. Kh.Temuujin wondered if
the DP leadership understood politics or if it saw itself as spreading goodwill. ―Everything the DP is
doing will lead to defeat, instead of victory. Two of the three ministers who negotiated the Oyu
Tolgoi investment agreement were from DP, but its success is being touted as an achievement of
the MPRP,‖ he said.
Mr. Altankhuyag later told media that the criticism was unwarranted as several of the DP‘s own
election pledges have found their way into the Government‘s program. Referring to DP‘s continuing
to be in coalition with the MPRP, he said ―leaving is easy and will not really hurt either partner, but
people‘s interests will suffer without this cooperation at the top‖.
Source: English.News.mn, Udriin Sonin
ASSESSMENT OF MDG-BASED STRATEGY TO BEGIN AFTER JUNE
The Government has asked Ministers, the Mayor of Ulaanbaatar, and Governors of provinces to
begin preparatory work for the first-stage assessment of the implementation of the Millennium
Development Goals-based Comprehensive National Development Strategy (NDS). The review will
cover the period until June 30, 2010.
The NDS, approved by Parliament early in 2008, defines a policy for the next 14 years toward
supporting human development in a democratic society by promoting economic growth, as well as
actively developing the country's society, economy, science, and technology in strict conformity
with global and regional development.
The NDS is planned to be implemented in two phases. The first, from 2007 to 2015, will focus on
achieving MDGs and actively developing the country's economy, while the second, from 2016 to
2021, will make the transition to a knowledge-based economy.
Source: Montsame
POLICY DIRECTIVES SEE RISE IN HUMAN DEVELOPMENT INDEX SCORE
The general policy directives for Mongolia for 2011, prepared by the National Development and
Innovation Committee, envisions that the human development index now standing at 0.731 will go
up to 0.758 by next year. Norway tops the index with 0.971. Russia‘s present score is 0.817, and
China‘s 0.773. Mongolia is ranked 115th
among 182 countries.
The committee estimates the Mongolia will have 8.2 percent economic growth by 2013 and its per
capita GDP will exceed USD2,000. Foreign trade will show a surplus.
Source: English. News.mn
15. HEARING ON JULY 1 INCIDENTS POSTPONED AGAIN
The public hearing on events relating to the July 1 incidents has once again been postponed. It was
listed in Parliament‘s business on April 21 but Speaker D.Demberel announced the postponement
because the State Prosecutor General did not agree to testify. Among others expected to give their
version of the role of law enforcement organizations during the incidents were former Internal
Minister Ts.Munkh-Orgil and Director of General Police Ch.Amarbold.
Source: Udriin Sonin
DIPLOMATIC ENCLAVE PLANNED
The Foreign Affairs Ministry wants to have an exclusively diplomatic enclave in Ulaanbaatar and also
to make additions to its own building. The Mayor of the city has already agreed to allow the
Ministry to use the land next to its present building for the extension. The land for the enclave will
be offered as soon as a suitable area is identified.
Source: English.news.mn
CHINA EXTENDS DEMOGRAPHIC AND CORPORATE CONTROL OVER NEIGHBORS
Today China‘s ambitions are as aggressive as those of the United States a century ago, but for
completely different reasons. China does not take a missionary approach to world affairs, seeking
to spread an ideology or a system of government. Instead, its actions are propelled by its need to
secure energy, metals and strategic minerals in order to support the rising living standards of its
immense population.
China‘s northern border wraps around Mongolia, a giant territory that looks like it was once bitten
out of China‘s back. Mongolia has one of the world‘s lowest population densities and is now being
threatened demographically by an urban Chinese civilization next door. Having once conquered
Outer Mongolia to gain access to more cultivable land, Beijing is poised to conquer Mongolia again,
albeit indirectly, through the acquisition of its natural resources.
As with Mongolia, the fear is not that the Chinese army will one day invade or formally annex the
Russian Far East. It is that Beijing‘s demographic and corporate control over the region is steadily
increasing. Central Asia, Mongolia, the Russian Far East and Southeast Asia are natural zones of
Chinese influence. But they are also zones whose political borders are not likely to change.
Read more…
The very fact of China‘s rising economic and military power will exacerbate U.S.-Chinese tensions in
the years ahead. To paraphrase the political scientist John Mearsheimer, the United States, the
hegemon of the Western Hemisphere, will try to prevent China from becoming the hegemon of
much of the Eastern Hemisphere. This could be the signal drama of the age.
Source: The New York Times
A fuller version of this article by Robert D. Kaplan, a senior fellow at the Center for a New
American Security and a correspondent for The Atlantic, appears in the May/June issue of Foreign
Affairs.
ANNOUNCEMENTS
THE MONGOLIAN MINING JOURNAL, APRIL ISSUE
The April issue of the bilingual Mongolian Mining Journal, to be
released next week, is devoted to a detailed examination of the need
for a new mining law. It also includes reports on the Government‘s
plan to introduce a graduated royalty system on minerals, to replace
the windfall profits tax.
The English section features interviews with Mr. B.Batkhuu, Head of
the Mining and Heavy Industry Department at the Ministry of Mineral
Resources and Energy, and Mr. D.Damba, President of the Mongolian
National Mining Association. In addition to these, the Mongolian
section has interviews with Mr. B.Battulga of Mon En and Mr. N.
Gombosuren, an academic on the case for a mining law. Both sections
have reports on the proposed royalty rates.
16. ____________________________________
“BSPOT" on B-TV
BTV (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.
_____________________________________
“MM TODAY” and Tuesday’s ENGLISH NEWS PROGRAMS on MNB-TV
BCM is pleased to announce that Mongolian National Broadcasting (MNB) 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.
MNB will air coverage of BCM‘s Monday, April 26, monthly meeting with interviews of the main
speakers on its weekly English News program anchored by Ms. Oyunchimeg on Tuesday, April 27, at
21:15 PM.
SPONSORS
17. ECONOMIC INDICATORS
MSE TOP 20 INDEX
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]
March 31, 2010 *8.5% [source: NSOM]
*Year-over-year (y-o-y)
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
18. CURRENCY RATES – April 22, 2010
Currency name Currency Rate
US dollars USD 1,400.55
Euro EUR 1,882.41
Japanese yen JPY 15.03
British pound GBP 2,155.10
Hong Kong dollar HKD 180.41
Chinese yuan CNY 205.15
Russian ruble RUB 48.17
South Korean won KRW 1.26
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.