This document provides a summary of business and economic news from Mongolia. It discusses rising tensions between Rio Tinto and Ivanhoe Mines over control of the Oyu Tolgoi copper and gold mine in Mongolia. Rio Tinto has provided funding to Ivanhoe but wants to increase its stake in the project, while Ivanhoe wants to limit Rio's control. The dispute could impact development of the major mine as well as Mongolia's economic interests. Several other mining deals and economic indicators affecting Mongolia are also summarized.
The document is a newsletter from the Business Council of Mongolia covering business, economic, and political news highlights from Mongolia. Some of the key points covered include:
- Rio Tinto hopes the Oyu Tolgoi copper and gold mine in Mongolia will begin production in 2012, ahead of previous estimates of 2013.
- Ivanhoe Mines says it has options to prevent a takeover by majority shareholder Rio Tinto, including interest from sovereign wealth funds in Mongolia.
- Voyager Resources acquired a copper-gold project in Mongolia's Oyu Tolgoi copper belt.
- The newsletter announces an upcoming meeting of the Business Council of Mongolia to present achievement awards.
The document provides news highlights from the Business Council of Mongolia covering business, economic, and political topics. In the business section, it summarizes that Ivanhoe Mines began trading rights for its $1.8 billion rights offering, Singapore's wealth fund acquired a 5.5% stake in Ivanhoe Mines, and Altan Rio intersected high grades of gold at its exploration project. It also mentions officials planning to inspect Areva's uranium project and Khan Bank obtaining $94 million in financing.
The document summarizes news from the Business Council of Mongolia newsletter. It reports on several stories related to Mongolia's mining and business sector: Turquoise Hill Resources' stock dropped 26% as rights to purchase new shares began trading, following the company's $2.4 billion rights offering to repay debt; Kincora Copper announced a $6.6 million write-down after Mongolia revoked 106 mineral exploration licenses, including two held by Kincora; Aspire Mining signed memoranda for potential purchase of 3.3 million tons per year of coking coal from its Ovoot project in Mongolia by Russian buyers.
This document summarizes news from the October 16, 2009 issue of the Business Council of Mongolia NewsWire. It includes the following highlights:
1) The head of Mongolia's Nuclear Energy Agency attempted to calm concerns from uranium companies about a new law regarding state ownership, saying the law does not affect existing exploration licenses.
2) A joint venture between Mongolia and Russia wants to remove Khan Resources from a uranium project in Mongolia, but it is unclear how this could be done legally given Khan Resources' existing exploration license.
3) Rio Tinto purchased additional shares in Ivanhoe Mines for $388 million as part of an agreement to increase its stake in the company, which is developing
The document summarizes news highlights from the Business Council of Mongolia newsletter. It includes several stories on mining projects and companies in Mongolia: Ivanhoe Mines maintains its board will remain independent despite Rio Tinto's majority stake; the IPO for Tavan Tolgoi faces challenges due to political instability and elections; control of Oyu Tolgoi provides a boost to Rio Tinto stock prices; and Meritus Minerals reports encouraging gold recovery results. It also mentions Mongolian Airlines adding a new domestic flight route and two firms receiving underwriting rights.
The document provides a summary of business, economic, and political news from Mongolia based on a newsletter from the Business Council of Mongolia dated October 23, 2009. Some of the key highlights include Entrée Gold supporting the Oyu Tolgoi investment agreement, Mongolia Energy announcing coal resources at its Khushuut mine, and Rio Tinto posting a record 12% increase in iron ore output for the third quarter. The document also announces an upcoming meeting for BCM members to discuss topics such as the mining and healthcare sectors in Mongolia.
- China Nuclear Corp plans to start mining uranium at the Gurvanbulag deposit in Mongolia within two years, with Mongolia owning at least 51% of the project. The deposit contains an estimated 10,000-15,000 tons of uranium.
- China Investment Corp will invest $500 million in SouthGobi Energy Resources to accelerate development of its Mongolian coal projects and increase coal production.
- Rio Tinto and Chinalco have begun discussions for Chinalco to potentially invest in the Oyu Tolgoi copper and gold mine in Mongolia, though any Chinese involvement would be politically sensitive given Mongolia's history with China.
The document summarizes business news from Mongolia. It discusses several topics:
- Oyu Tolgoi defended its investment agreement as fair and valid, saying it benefits Mongolia. However, some lawmakers want to increase Mongolia's stake in the project.
- Despite calls to rework OT's agreement, investors increased shares in the project's main partner, shrugging off political risks.
- Prophecy Coal submitted a power purchase agreement proposal for its mine-mouth power plant project.
- Erdene Resources plans to split its coal and Mongolian mineral projects into separate companies to unlock shareholder value.
- Terra Energy is set to begin mining at its South Gobi coal project.
The document is a newsletter from the Business Council of Mongolia covering business, economic, and political news highlights from Mongolia. Some of the key points covered include:
- Rio Tinto hopes the Oyu Tolgoi copper and gold mine in Mongolia will begin production in 2012, ahead of previous estimates of 2013.
- Ivanhoe Mines says it has options to prevent a takeover by majority shareholder Rio Tinto, including interest from sovereign wealth funds in Mongolia.
- Voyager Resources acquired a copper-gold project in Mongolia's Oyu Tolgoi copper belt.
- The newsletter announces an upcoming meeting of the Business Council of Mongolia to present achievement awards.
The document provides news highlights from the Business Council of Mongolia covering business, economic, and political topics. In the business section, it summarizes that Ivanhoe Mines began trading rights for its $1.8 billion rights offering, Singapore's wealth fund acquired a 5.5% stake in Ivanhoe Mines, and Altan Rio intersected high grades of gold at its exploration project. It also mentions officials planning to inspect Areva's uranium project and Khan Bank obtaining $94 million in financing.
The document summarizes news from the Business Council of Mongolia newsletter. It reports on several stories related to Mongolia's mining and business sector: Turquoise Hill Resources' stock dropped 26% as rights to purchase new shares began trading, following the company's $2.4 billion rights offering to repay debt; Kincora Copper announced a $6.6 million write-down after Mongolia revoked 106 mineral exploration licenses, including two held by Kincora; Aspire Mining signed memoranda for potential purchase of 3.3 million tons per year of coking coal from its Ovoot project in Mongolia by Russian buyers.
This document summarizes news from the October 16, 2009 issue of the Business Council of Mongolia NewsWire. It includes the following highlights:
1) The head of Mongolia's Nuclear Energy Agency attempted to calm concerns from uranium companies about a new law regarding state ownership, saying the law does not affect existing exploration licenses.
2) A joint venture between Mongolia and Russia wants to remove Khan Resources from a uranium project in Mongolia, but it is unclear how this could be done legally given Khan Resources' existing exploration license.
3) Rio Tinto purchased additional shares in Ivanhoe Mines for $388 million as part of an agreement to increase its stake in the company, which is developing
The document summarizes news highlights from the Business Council of Mongolia newsletter. It includes several stories on mining projects and companies in Mongolia: Ivanhoe Mines maintains its board will remain independent despite Rio Tinto's majority stake; the IPO for Tavan Tolgoi faces challenges due to political instability and elections; control of Oyu Tolgoi provides a boost to Rio Tinto stock prices; and Meritus Minerals reports encouraging gold recovery results. It also mentions Mongolian Airlines adding a new domestic flight route and two firms receiving underwriting rights.
The document provides a summary of business, economic, and political news from Mongolia based on a newsletter from the Business Council of Mongolia dated October 23, 2009. Some of the key highlights include Entrée Gold supporting the Oyu Tolgoi investment agreement, Mongolia Energy announcing coal resources at its Khushuut mine, and Rio Tinto posting a record 12% increase in iron ore output for the third quarter. The document also announces an upcoming meeting for BCM members to discuss topics such as the mining and healthcare sectors in Mongolia.
- China Nuclear Corp plans to start mining uranium at the Gurvanbulag deposit in Mongolia within two years, with Mongolia owning at least 51% of the project. The deposit contains an estimated 10,000-15,000 tons of uranium.
- China Investment Corp will invest $500 million in SouthGobi Energy Resources to accelerate development of its Mongolian coal projects and increase coal production.
- Rio Tinto and Chinalco have begun discussions for Chinalco to potentially invest in the Oyu Tolgoi copper and gold mine in Mongolia, though any Chinese involvement would be politically sensitive given Mongolia's history with China.
The document summarizes business news from Mongolia. It discusses several topics:
- Oyu Tolgoi defended its investment agreement as fair and valid, saying it benefits Mongolia. However, some lawmakers want to increase Mongolia's stake in the project.
- Despite calls to rework OT's agreement, investors increased shares in the project's main partner, shrugging off political risks.
- Prophecy Coal submitted a power purchase agreement proposal for its mine-mouth power plant project.
- Erdene Resources plans to split its coal and Mongolian mineral projects into separate companies to unlock shareholder value.
- Terra Energy is set to begin mining at its South Gobi coal project.
This newsletter from the Business Council of Mongolia provides an overview of recent Mongolian business and economic news. It discusses developments at the Oyu Tolgoi mine, including its 2014 budget approval and a power deal. It also reports on mining, exploration and financing deals involving Tavan Tolgoi, Shenhua, Erdenet, and several junior miners. On the economic front, it mentions inflation, currency rates and plans to allocate part of the budget to construction. For politics, it notes progress on a minerals policy and cooperation between ministries. The newsletter recaps the previous month's BCM meeting and welcomes seven new member companies to the Business Council of Mongolia.
The document summarizes news from the Business Council of Mongolia newsletter. It highlights several stories: Khan Bank received an $8 million EBRD loan to finance small and medium businesses; Golomt Bank signed agreements with Hungarian and Chinese banks to provide financing for trade; the Mongolian Stock Exchange is negotiating to use Bloomberg's terminal system for bond trades and took legal action against 196 companies that failed to file reports; Rio Tinto's CEO has helped steer the company to recovery as it approaches interim results and considers options for generating cash going forward including potential growth projects.
This document provides a summary of business, economic, and political news from Mongolia in Issue 136 of the Business Council of Mongolia NewsWire dated September 17, 2010.
The main business highlights include Mitsui and Shenhua teaming up to bid for the Tavan Tolgoi coalfield, Mongolian Railway partnering with a Japanese firm to develop infrastructure, Rio Tinto increasing its stake in Ivanhoe Mines, and Origo Partners acquiring a stake in Kincora in Mongolia.
The economic news covers Mongolia taking bids for the Tavan Tolgoi contractor, national debt levels, bond sales, lending rates, and Mongolia's future beyond just mining.
The political
The document is a newsletter summarizing business and economic news from Mongolia. It discusses Mongolia's plans to privatize and sell shares of major state-owned assets like the Erdenet Mining Corp, Tavan Tolgoi coal deposit, and Oyu Tolgoi copper mine through initial public offerings, likely in Hong Kong. It also mentions that BNP Paribas and Standard Chartered Bank were selected to structure loans for the $4.6 billion Oyu Tolgoi project. Additionally, the newsletter states that Mongolia is receiving proposals from stock exchanges like London, NASDAQ, and Hong Kong to assist in privatizing its state-run stock market.
The document is a newsletter from the Business Council of Mongolia covering business and economic news related to Mongolia. Some of the key stories covered include Mongolian Mining seeking to raise $680 million in an IPO, Petro Matad raising $46.8 million to accelerate its drilling program in Mongolia, Khan Resources hoping the Nuclear Energy Agency will cooperate after it let the appeal deadline pass in one of their court cases, and the opening of Mongolia's first investment bank focused on the mining sector by former UBS executives, signaling the mineral boom taking place in Mongolia.
The document summarizes news from the Business Council of Mongolia newsletter. It reports that Ivanhoe Mines has made a significant new discovery at the Oyu Tolgoi mine in Mongolia, indicating there are greater resources than previously estimated. It also reports that Newcom Group and GE have signed an agreement to explore business opportunities in Mongolia, and that Mongolian Mining Corp has increased the price range for its upcoming IPO on the Hong Kong exchange.
This document is a newsletter from the Business Council of Mongolia dated October 7, 2011. It provides summaries of news related to business, economic, and political issues in Mongolia. On the business front, it discusses announcements from Ivanhoe Mines and Rio Tinto regarding the Oyu Tolgoi investment agreement, Energy Resources completing a road for coal transport, and leadership changes at Newcom Group. It also provides updates on exploration and drilling from companies like Petro Matad and Lucky Strike. The economic section covers issues like investment stability, real estate growth, and commodity prices. Politics updates include discussions around dissolving the government and social welfare programs.
The document summarizes news from the Business Council of Mongolia newsletter. It includes the following highlights:
- Turquoise Hill says sales volume from the Oyu Tolgoi copper and gold mine has fallen below expectations due to post-commissioning issues and a shutdown of one line for 6-8 weeks. Production targets for 2014 are 150,000-175,000 tons of copper and 700,000-750,000 ounces of gold.
- The $4.2 billion financing package for the underground expansion of Oyu Tolgoi is dependent on completion of a feasibility study due in the second quarter. Both Turquoise Hill and the Mongolian government's Erdenes Oyu Tolgoi LLC are
The document summarizes a newsletter from the Business Council of Mongolia covering various business and economic news items from Mongolia. It discusses ongoing issues regarding the development of the giant Oyu Tolgoi copper and gold mine, including Rio Tinto writing down $4.7 billion due to delays, warnings of further $800 million in writedowns if delays continue, and commitments from project lenders set to expire at the end of March if agreements are not reached with the Mongolian government. It also briefly mentions other Mongolian mining, economic, and political news.
The document summarizes news from the Business Council of Mongolia newsletter. It discusses disputes between Ivanhoe Mines and Rio Tinto over financing and development of the massive Oyu Tolgoi copper-gold mining project in Mongolia. Ivanhoe unveiled plans to raise $800 million-$1 billion through an equity rights offering, widening rifts with Rio Tinto, who owns 35% of Ivanhoe. Analysts say Rio may find it difficult to block the share sale. The article also mentions other Mongolian mining news and economic/political updates.
The document summarizes business and economic news from Mongolia. It reports that Rio Tinto announced 1,700 redundancies at its Mongolian operations due to delays in underground expansion of the Oyu Tolgoi copper mine. Mongolia wants this expansion funded through cash flow from the mine until disputes over costs are resolved. Mongolia is also studying an IPO of its 34% stake in Oyu Tolgoi to give citizens ownership and help fund the expansion. Additionally, Prophecy Coal signed coal export deals to restart shipments to Russia.
The document summarizes business and economic news from Mongolia. Key points include:
- The Prime Minister said parliamentary approval is not needed for Rio Tinto's $4 billion financing package for the Oyu Tolgoi underground mine expansion.
- Rio Tinto agreed to provide Turquoise Hill, the majority owner of Oyu Tolgoi, with $600 million in bridge funding and committed to underwriting a rights offering if needed.
- Local residents announced protests against uranium exploration by French company Areva in southern Mongolia, claiming it has caused livestock deaths and health issues.
- TDB Capital launched an online trading platform, becoming the first in Mongolia to offer internet-based securities trading.
This document summarizes news from the Business Council of Mongolia newsletter for August 2, 2013. Major stories include Rio Tinto delaying underground development at the Oyu Tolgoi mine until it receives parliamentary approval for project financing. The majority shareholder of Savings Bank blamed receiving bad information about the Olon Ovoot mine for defaulting on loans. Aspire Mining's Ovoot coal mine resource estimates were upgraded, increasing reserves by 10.3%. Tests showed blending opportunities for coal from Ovoot and the Tavan Tolgoi mine.
The document summarizes business and economic news from Mongolia. It discusses Ivanhoe assessing options for its Oyu Tolgoi mine in Mongolia, including potentially auctioning it off. It also mentions a JORC resource estimate quadrupling the coal inventory for Sharyn Gol to over 374 million metric tons. Additionally, it provides an overview of the most recent Business Council of Mongolia monthly meeting, including presentations on the stock exchange, an upcoming coal conference, and aviation industry growth.
This document summarizes news from the Business Council of Mongolia newsletter dated July 31, 2009. It covers several topics in business, economic, and politics realms. In business news, it discusses ongoing negotiations between the Mongolian government and Ivanhoe Mines over the Oyu Tolgoi mining project, including demands for a 34% stake in the company. It also provides updates on other mining projects in Mongolia. In economic news, it mentions the effects of the global slowdown and support for small businesses. In politics, it notes a new amnesty law and Mongolia's plans to send troops to Afghanistan.
The document summarizes news from the Business Council of Mongolia newsletter. It includes the following key points:
- Rio Tinto warns that renegotiating Mongolia's investment agreement for the Oyu Tolgoi project risks damaging the country's reputation with foreign investors.
- Ivanhoe Mines and Rio Tinto have an uneasy relationship as partners in the Oyu Tolgoi project, made more difficult by disputes between the companies and potential government interference.
- Petro Matad receives encouraging initial results from its Davsan Tolgoi 4 exploration well in Mongolia, indicating a high quality oil without water.
The document summarizes business and economic news from Mongolia. It reports that Khan Resources received notice from Mongolia's State Property Committee to increase state ownership of its uranium project to 51%. It also reports that Centerra Gold forecasts gold production of 640,000-700,000 ounces in 2010. Additionally, it mentions that Ivanhoe Mines plans to spend $758 million on development work at its Oyu Tolgoi copper-gold mine in 2010.
The document is a newsletter from the Business Council of Mongolia that provides news highlights on business, economic, and political issues in Mongolia. It includes summaries of multiple news stories related to Mongolian companies and mining projects, economic indicators and foreign investment in Mongolia, and political developments. It also announces an upcoming meeting of the Business Council of Mongolia that will feature presentations from the U.S. Ambassador, the CEO of a Mongolian investment company, and the chairman of Mongolia's National Development and Innovation Committee.
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 is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia in Issue 281 dated July 5, 2013. It includes over 50 brief news highlights on topics like mining projects, transportation, tourism, and economic indicators. Some of the key stories include Rio Tinto postponing the first shipment from the Oyu Tolgoi mine due to a dispute with Mongolia over revenue, Turquoise Hill securing a $225 million loan from Rio Tinto to fund OT operations, MMC expanding its coal processing capacity to 15 million tons annually, and a Mongolian firm preparing to launch a new oil enterprise in North Korea.
BDSec is Mongolia's largest brokerage and investment banking firm. It has the most experienced team in Mongolia and maintains strong relationships with local companies. BDSec provides services such as equity and bond broking, advisory, and underwriting. It has a market value of $28 million and is the only publicly traded financial company in Mongolia. BDSec executes the majority of transactions on the Mongolian stock exchange and has over 700 international clients from more than 30 countries.
This issue of the Business Council of Mongolia newswire discusses various business and economic news items in Mongolia. It reports that at a Democratic Party meeting, heated exchanges occurred over the shareholding in the Oyu Tolgoi mine. It also reports that the Mongolian government plans to revoke four gold mining licenses held by Centerra Gold for environmental reasons. Additionally, it provides updates on several mining and exploration companies operating in Mongolia, including SouthGobi Resources' share buyback program and survey results from Garrison International's Tuvshir project.
This newsletter from the Business Council of Mongolia provides an overview of recent Mongolian business and economic news. It discusses developments at the Oyu Tolgoi mine, including its 2014 budget approval and a power deal. It also reports on mining, exploration and financing deals involving Tavan Tolgoi, Shenhua, Erdenet, and several junior miners. On the economic front, it mentions inflation, currency rates and plans to allocate part of the budget to construction. For politics, it notes progress on a minerals policy and cooperation between ministries. The newsletter recaps the previous month's BCM meeting and welcomes seven new member companies to the Business Council of Mongolia.
The document summarizes news from the Business Council of Mongolia newsletter. It highlights several stories: Khan Bank received an $8 million EBRD loan to finance small and medium businesses; Golomt Bank signed agreements with Hungarian and Chinese banks to provide financing for trade; the Mongolian Stock Exchange is negotiating to use Bloomberg's terminal system for bond trades and took legal action against 196 companies that failed to file reports; Rio Tinto's CEO has helped steer the company to recovery as it approaches interim results and considers options for generating cash going forward including potential growth projects.
This document provides a summary of business, economic, and political news from Mongolia in Issue 136 of the Business Council of Mongolia NewsWire dated September 17, 2010.
The main business highlights include Mitsui and Shenhua teaming up to bid for the Tavan Tolgoi coalfield, Mongolian Railway partnering with a Japanese firm to develop infrastructure, Rio Tinto increasing its stake in Ivanhoe Mines, and Origo Partners acquiring a stake in Kincora in Mongolia.
The economic news covers Mongolia taking bids for the Tavan Tolgoi contractor, national debt levels, bond sales, lending rates, and Mongolia's future beyond just mining.
The political
The document is a newsletter summarizing business and economic news from Mongolia. It discusses Mongolia's plans to privatize and sell shares of major state-owned assets like the Erdenet Mining Corp, Tavan Tolgoi coal deposit, and Oyu Tolgoi copper mine through initial public offerings, likely in Hong Kong. It also mentions that BNP Paribas and Standard Chartered Bank were selected to structure loans for the $4.6 billion Oyu Tolgoi project. Additionally, the newsletter states that Mongolia is receiving proposals from stock exchanges like London, NASDAQ, and Hong Kong to assist in privatizing its state-run stock market.
The document is a newsletter from the Business Council of Mongolia covering business and economic news related to Mongolia. Some of the key stories covered include Mongolian Mining seeking to raise $680 million in an IPO, Petro Matad raising $46.8 million to accelerate its drilling program in Mongolia, Khan Resources hoping the Nuclear Energy Agency will cooperate after it let the appeal deadline pass in one of their court cases, and the opening of Mongolia's first investment bank focused on the mining sector by former UBS executives, signaling the mineral boom taking place in Mongolia.
The document summarizes news from the Business Council of Mongolia newsletter. It reports that Ivanhoe Mines has made a significant new discovery at the Oyu Tolgoi mine in Mongolia, indicating there are greater resources than previously estimated. It also reports that Newcom Group and GE have signed an agreement to explore business opportunities in Mongolia, and that Mongolian Mining Corp has increased the price range for its upcoming IPO on the Hong Kong exchange.
This document is a newsletter from the Business Council of Mongolia dated October 7, 2011. It provides summaries of news related to business, economic, and political issues in Mongolia. On the business front, it discusses announcements from Ivanhoe Mines and Rio Tinto regarding the Oyu Tolgoi investment agreement, Energy Resources completing a road for coal transport, and leadership changes at Newcom Group. It also provides updates on exploration and drilling from companies like Petro Matad and Lucky Strike. The economic section covers issues like investment stability, real estate growth, and commodity prices. Politics updates include discussions around dissolving the government and social welfare programs.
The document summarizes news from the Business Council of Mongolia newsletter. It includes the following highlights:
- Turquoise Hill says sales volume from the Oyu Tolgoi copper and gold mine has fallen below expectations due to post-commissioning issues and a shutdown of one line for 6-8 weeks. Production targets for 2014 are 150,000-175,000 tons of copper and 700,000-750,000 ounces of gold.
- The $4.2 billion financing package for the underground expansion of Oyu Tolgoi is dependent on completion of a feasibility study due in the second quarter. Both Turquoise Hill and the Mongolian government's Erdenes Oyu Tolgoi LLC are
The document summarizes a newsletter from the Business Council of Mongolia covering various business and economic news items from Mongolia. It discusses ongoing issues regarding the development of the giant Oyu Tolgoi copper and gold mine, including Rio Tinto writing down $4.7 billion due to delays, warnings of further $800 million in writedowns if delays continue, and commitments from project lenders set to expire at the end of March if agreements are not reached with the Mongolian government. It also briefly mentions other Mongolian mining, economic, and political news.
The document summarizes news from the Business Council of Mongolia newsletter. It discusses disputes between Ivanhoe Mines and Rio Tinto over financing and development of the massive Oyu Tolgoi copper-gold mining project in Mongolia. Ivanhoe unveiled plans to raise $800 million-$1 billion through an equity rights offering, widening rifts with Rio Tinto, who owns 35% of Ivanhoe. Analysts say Rio may find it difficult to block the share sale. The article also mentions other Mongolian mining news and economic/political updates.
The document summarizes business and economic news from Mongolia. It reports that Rio Tinto announced 1,700 redundancies at its Mongolian operations due to delays in underground expansion of the Oyu Tolgoi copper mine. Mongolia wants this expansion funded through cash flow from the mine until disputes over costs are resolved. Mongolia is also studying an IPO of its 34% stake in Oyu Tolgoi to give citizens ownership and help fund the expansion. Additionally, Prophecy Coal signed coal export deals to restart shipments to Russia.
The document summarizes business and economic news from Mongolia. Key points include:
- The Prime Minister said parliamentary approval is not needed for Rio Tinto's $4 billion financing package for the Oyu Tolgoi underground mine expansion.
- Rio Tinto agreed to provide Turquoise Hill, the majority owner of Oyu Tolgoi, with $600 million in bridge funding and committed to underwriting a rights offering if needed.
- Local residents announced protests against uranium exploration by French company Areva in southern Mongolia, claiming it has caused livestock deaths and health issues.
- TDB Capital launched an online trading platform, becoming the first in Mongolia to offer internet-based securities trading.
This document summarizes news from the Business Council of Mongolia newsletter for August 2, 2013. Major stories include Rio Tinto delaying underground development at the Oyu Tolgoi mine until it receives parliamentary approval for project financing. The majority shareholder of Savings Bank blamed receiving bad information about the Olon Ovoot mine for defaulting on loans. Aspire Mining's Ovoot coal mine resource estimates were upgraded, increasing reserves by 10.3%. Tests showed blending opportunities for coal from Ovoot and the Tavan Tolgoi mine.
The document summarizes business and economic news from Mongolia. It discusses Ivanhoe assessing options for its Oyu Tolgoi mine in Mongolia, including potentially auctioning it off. It also mentions a JORC resource estimate quadrupling the coal inventory for Sharyn Gol to over 374 million metric tons. Additionally, it provides an overview of the most recent Business Council of Mongolia monthly meeting, including presentations on the stock exchange, an upcoming coal conference, and aviation industry growth.
This document summarizes news from the Business Council of Mongolia newsletter dated July 31, 2009. It covers several topics in business, economic, and politics realms. In business news, it discusses ongoing negotiations between the Mongolian government and Ivanhoe Mines over the Oyu Tolgoi mining project, including demands for a 34% stake in the company. It also provides updates on other mining projects in Mongolia. In economic news, it mentions the effects of the global slowdown and support for small businesses. In politics, it notes a new amnesty law and Mongolia's plans to send troops to Afghanistan.
The document summarizes news from the Business Council of Mongolia newsletter. It includes the following key points:
- Rio Tinto warns that renegotiating Mongolia's investment agreement for the Oyu Tolgoi project risks damaging the country's reputation with foreign investors.
- Ivanhoe Mines and Rio Tinto have an uneasy relationship as partners in the Oyu Tolgoi project, made more difficult by disputes between the companies and potential government interference.
- Petro Matad receives encouraging initial results from its Davsan Tolgoi 4 exploration well in Mongolia, indicating a high quality oil without water.
The document summarizes business and economic news from Mongolia. It reports that Khan Resources received notice from Mongolia's State Property Committee to increase state ownership of its uranium project to 51%. It also reports that Centerra Gold forecasts gold production of 640,000-700,000 ounces in 2010. Additionally, it mentions that Ivanhoe Mines plans to spend $758 million on development work at its Oyu Tolgoi copper-gold mine in 2010.
The document is a newsletter from the Business Council of Mongolia that provides news highlights on business, economic, and political issues in Mongolia. It includes summaries of multiple news stories related to Mongolian companies and mining projects, economic indicators and foreign investment in Mongolia, and political developments. It also announces an upcoming meeting of the Business Council of Mongolia that will feature presentations from the U.S. Ambassador, the CEO of a Mongolian investment company, and the chairman of Mongolia's National Development and Innovation Committee.
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 is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia in Issue 281 dated July 5, 2013. It includes over 50 brief news highlights on topics like mining projects, transportation, tourism, and economic indicators. Some of the key stories include Rio Tinto postponing the first shipment from the Oyu Tolgoi mine due to a dispute with Mongolia over revenue, Turquoise Hill securing a $225 million loan from Rio Tinto to fund OT operations, MMC expanding its coal processing capacity to 15 million tons annually, and a Mongolian firm preparing to launch a new oil enterprise in North Korea.
BDSec is Mongolia's largest brokerage and investment banking firm. It has the most experienced team in Mongolia and maintains strong relationships with local companies. BDSec provides services such as equity and bond broking, advisory, and underwriting. It has a market value of $28 million and is the only publicly traded financial company in Mongolia. BDSec executes the majority of transactions on the Mongolian stock exchange and has over 700 international clients from more than 30 countries.
This issue of the Business Council of Mongolia newswire discusses various business and economic news items in Mongolia. It reports that at a Democratic Party meeting, heated exchanges occurred over the shareholding in the Oyu Tolgoi mine. It also reports that the Mongolian government plans to revoke four gold mining licenses held by Centerra Gold for environmental reasons. Additionally, it provides updates on several mining and exploration companies operating in Mongolia, including SouthGobi Resources' share buyback program and survey results from Garrison International's Tuvshir project.
Khan Resources, a Canadian mining company, signed a memorandum of understanding (MoU) with MonAtom, Mongolia's state-owned uranium company, to establish a joint venture for Khan's uranium project in Mongolia. Under the terms of the MoU, MonAtom would acquire a 51% stake in the project in accordance with Mongolian law, but then transfer some of its stake to Khan in exchange for Khan shares and warrants, leaving Khan with a 65% stake in the joint venture. The deal is aimed to satisfy Mongolian regulatory requirements and provide certainty for developing the project, while retaining value for Khan shareholders. Khan believes the agreement will deliver greater value than a hostile bid by a Russian company.
Global foreign direct investment declined in 2014 due to economic fragility, policy uncertainty, and geopolitical risks. Developing countries saw a 2% rise in inward investment flows, with China becoming the largest recipient. Mongolia is working to improve its investment environment through liberalization, promotion, and large infrastructure projects to attract more foreign investment and diversify its commodity-dependent economy.
- The document provides a summary of business and economic news from Mongolia, including stories on mining projects, commodity prices, and the Mongolian economy.
- A key story discusses a study finding that Mongolia is unlikely to receive dividends from its stake in the Oyu Tolgoi copper and gold mine until at least 2035, though it will continue receiving other revenues from the project.
- Other stories cover mining project expansions and discoveries, appointments within mining companies and the Mongolian government, and economic indicators from Mongolia such as inflation and currency rates.
- The document provides a summary of business and economic news from Mongolia in its NewsWire issue 459 dated January 6, 2017.
- Key highlights include Mongolia requesting a $200 million loan from Russia's second largest bank, XacBank receiving $20 million in funding from the Green Climate Fund, and explorers like Xanadu Mines and Erdene intersecting high grades of gold at their projects in Mongolia.
- Other news items cover Mongolian Mining preparing for debt restructuring, SouthGobi Resources executing a debt deferral agreement, and several international partnerships and investments in Mongolia.
The document provides information on EBRD's role in Mongolia to support economic diversification and import replacement. It discusses how EBRD has invested over $1 billion since 2006 across various sectors. It highlights the importance of diversification given Mongolia's dependence on mining. Example projects described include financing a cement plant, dairy expansion, and ice cream factory to promote import replacement and agriculture. The document also discusses financial products like debt, equity, value chain finance, and local currency loans that EBRD provides to support SMEs and private sector growth in Mongolia.
The document provides an overview and summary of recent advocacy efforts, events, partnerships, and opportunities by the Business Council of Mongolia (BCM). It discusses BCM's recent advocacy on issues like certificates of origin and proposed tax hikes. It also summarizes BCM events like their annual summit and partnerships with organizations like Bloomberg. Upcoming events and opportunities for members are highlighted, including funding for carbon reduction projects and sponsoring BCM's corporate brochure.
Wagner Asia Group is a US-owned company that has operated in Mongolia since 1996. It operates in several industries including mining, construction, and transportation. The document discusses Wagner's corporate values and ethics policies, its contributions to the local economy through employment and sourcing from local suppliers, and its extensive corporate social responsibility programs. These include environmental sustainability initiatives, health and safety training for employees, charitable donations, and community projects in areas like education, healthcare, and the environment.
Ivanhoe Mines has filed counter-claims against Rio Tinto in an ongoing arbitration regarding their joint Oyu Tolgoi project in Mongolia. An appellate court in Mongolia ruled in favor of Khan Resources and upheld their mining license. SouthGobi Resources, a subsidiary of Ivanhoe Mines, took a 19.9% stake in Aspire Mining to help fast-track development of Aspire's Ovoot coking coal project in Mongolia. The CEO of Rio Tinto said tensions with Ivanhoe Mines over Oyu Tolgoi would not delay the project and that first production could begin in 2013. Moody's assigned a Ba3 rating to Trade and Development Bank of Mongolia's $
The document discusses Mongolia's financial regulatory reforms and plans to develop its capital markets. It outlines challenges such as macroeconomic instability, a high deposit rate due to instability, weak investor protection, and inefficient infrastructure. Recent reforms include new legislation, decreasing regulatory constraints, and developing investment fund and custodian regulations. Plans are discussed to privatize state-owned companies, increase the bond market, trade strategic mining deposits on the stock exchange, improve listed companies, introduce new financial products, and develop insurance companies and non-bank financial institutions as institutional investors. The strategy involves implementing a sustainable national strategy by 2025 and developing an international financial zone in Ulaanbaatar.
- The Oyu Tolgoi project in Mongolia signed an Investment Agreement in October 2009 to develop one of the largest copper and gold mines in Asia.
- They are currently in the process of fulfilling 10 conditions in the agreement over the next 6 months to make it effective, and have already completed 5 of the conditions.
- Over the next few years, they will invest over $5 billion to develop the mine and build infrastructure, hiring over 4,000 workers for construction and 3,000 long-term operations roles.
- They are working to develop comprehensive training programs with universities and vocational schools to prepare Mongolian workers to meet international mining standards for the decades-long project.
The document summarizes the proceedings from the Business Council of Mongolia's first annual summit held in 2016. Key recommendations were provided to the Mongolian government regarding stability, capacity, and improving the business environment. On stability, the document emphasizes maintaining fiscal discipline, consistent policies and regulations, and ensuring government structures operate openly. It recommends improving capacity by focusing on education, innovation, and reducing corruption. It also stresses the need for reliable infrastructure, liberalizing financial markets, consistent tax policies, and enforcing rule of law to improve the business environment. The overall goal is to restore confidence and encourage investment by enhancing Mongolia's competitiveness and reputation internationally.
The document summarizes news from the Business Council of Mongolia newsletter. It lists the top performers among Mongolia's national enterprises in 2009 as MCS Group and Erdenet Mining Corporation. It also provides brief updates on various Mongolian companies and economic news, including Khan Bank being named best bank, Centerra Gold's increased revenue, and plans for development of the Tavan Tolgoi and Ovoot Tolgoi mines. The monthly BCM meeting recap discusses membership growth, working group activities, and presentations on biodiversity offsets and the mining sector outlook.
This document is Mongolia's Land Law, which establishes classifications and regulations regarding land ownership, possession, and use. It defines key terms and establishes principles for land governance, including maintaining territorial integrity and ensuring equitable access. The law establishes that all land is state property except where granted to citizens for ownership. It classifies land into categories including agricultural, urban, roads and networks, forests, water resources, and special needs. Foreign citizens and entities can access land through use contracts. Citizens, companies and organizations must pay land fees to possess or use land.
The document summarizes Mongolia's macroeconomic policies in response to balance of payments shocks and after economic adjustment. It discusses:
1. Mongolia implemented countercyclical monetary and fiscal policies to ensure stability during a 2013 balance of payments shock, maintaining balanced economic growth.
2. In response, Mongolia absorbed shock impacts through exchange rate flexibility and reserves while implementing economic stimulus measures and reforms.
3. Going forward, Mongolia aims to maintain a prudent and stable macroeconomic policy mix of fiscal discipline and flexible, non-inflationary monetary policy to support sustainable growth.
Mongolia has opportunities and challenges in its coal mining industry. It has proximity to China, the largest coal consumer, and favorable geology for mining. However, it also faces infrastructure and regulatory hurdles. Mongolian Mining Corporation is the largest coal producer in Mongolia. It operates two open-pit coal mines and plans to expand mining capacity and transportation infrastructure like a new railway. The company focuses on sustainable development through job training, community projects, and environmental protection.
This document provides an unofficial translation of Mongolia's Law on Minerals. Some key points:
- It defines terms related to mineral exploration and mining such as prospecting, exploration, mining claims, license types, and deposit classifications.
- It establishes state ownership of mineral resources and the government's powers to regulate the sector and participate in strategic deposits.
- It outlines licensing requirements and procedures, the duties of regulatory agencies, and rules around reserving areas for future exploration or resolving disputes.
- The document aims to regulate mineral exploration and mining in Mongolia in accordance with the country's constitution and relevant laws.
Rio Tinto tightens its grip on Ivanhoe Mines as part of a $3.3 billion financing deal that will see Robert Friedland step down as CEO. Rio Tinto will nominate 11 of 13 new board members and provide $1.8 billion in funding, securing its control over the Oyu Tolgoi copper and gold mine in Mongolia. However, the head of Rio's Copper division says they have no interest in Ivanhoe Mines' other assets outside of Oyu Tolgoi. Mongolia also threatens to suspend mining licenses of SouthGobi Resources amid a proposed takeover by Chinese metals company Chalco, a move that could stall China's largest investment in Mongolia to date.
The document summarizes news from the Business Council of Mongolia newsletter. It includes several stories about the Oyu Tolgoi copper and gold mine project: the Mongolian government is considering increasing taxes and royalties on the mine by $300 million, threatening the project; Rio Tinto denies that China-Mongolia relations are causing delays in negotiations for power supply to the mine; and herders are demanding just compensation from Rio Tinto for being driven off their land by the mine. Other business stories cover mining, oil, trade, and economic development in Mongolia.
The document provides a summary of business and economic news from Mongolia. It discusses several mining projects including agreements related to the Oyu Tolgoi project between Ivanhoe Mines, Rio Tinto, and the Mongolian government. It also mentions coal mining projects from companies such as SouthGobi Resources, Hunnu Coal, and Mongolia Energy Corp. In addition, it briefly outlines political and economic topics covered in the issue including credit ratings for Khan Bank and XacBank, rare earth minerals, and currency exchange rates.
The document summarizes news from the Business Council of Mongolia newsletter. It discusses progress in negotiations for the Oyu Tolgoi and Tavan Tolgoi mining deposits. Investment banks like Deutsche Bank and JP Morgan may help the government sell part of Tavan Tolgoi, estimated to be worth $1-2 billion. The government will own at least 51% of Tavan Tolgoi. NGOs are seeking more transparency in the negotiations. Banks proposed measures to the central bank like government-guaranteed mortgages to restart the housing market and stimulate the economy.
The document summarizes news from Mongolia's Business Council covering business, economic, and political topics. On business, it discusses mining company executives who see opportunities in Mongolia's growth. It also notes disagreements between Rio Tinto and Ivanhoe Mines over expansion plans for the Oyu Tolgoi mine. On the economy, it discusses Mongolia's dependence on China and policy debates. Politically, it mentions discussions between the President and MPs on national security and debates on foreign visitor policies.
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 provides news highlights from the Business Council of Mongolia covering business, economic, and political news. Some of the top stories include:
- TT's East block of the Tavan Tolgoi coal project is set to begin large-scale production on December 1st.
- Mongolia is continuing negotiations with international miners to develop the TT West block after complaints caused them to cancel the previous agreement.
- Rio Tinto and Ivanhoe Mines stocks rebounded after the Mongolian government backed down from attempts to renegotiate the Oyu Tolgoi investment agreement.
- Erdene Resources reported encouraging early results from drilling at its Altan Nar gold prospect in southwest Mongolia.
The document discusses several business news highlights from Mongolia. It mentions that the Tavan Tolgoi coal deal will undergo revision, with Japan and Korea potentially receiving stakes. It also discusses Ivanhoe Mines rejecting talks of altering its Oyu Tolgoi contract, Gobi Coal & Energy searching for a buyer, and Indian firms exploring bids for uranium acquisitions in 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
Ivanhoe Mines has nominated G. Batsukh, the former Mongolian ambassador to China, to be the Chairman of the Board of Directors of Oyu Tolgoi LLC. Ivanhoe Mines has also appointed five other directors to the board. Additionally, a new independent development plan for Oyu Tolgoi confirms that it has the resources to become one of the top three copper-gold producers globally and an exemplar for environmentally responsible mining development. The plan estimates 27 years of mining based on current reserves and 59 years including additional inferred resources. Meanwhile, the Prime Minister of Mongolia has indicated that state support for developing the Tavan Tolgoi coal deposit will favor foreign bidders backed by their
The document summarizes business and economic news from Mongolia reported in the Business Council of Mongolia NewsWire on November 4, 2011. Key points include:
- Investors are hopeful that Ivanhoe Mines will be acquired by Rio Tinto to resolve a shareholder dispute by January 2012.
- Mongolia Mining Corporation's Ukhaa Khudag coal mine is expected to be depleted within 27 years at its current production rate.
- Bloomberg plans to launch a Mongolian television station in partnership with Trade and Development Bank to provide business and financial news to Mongolia.
- Several mining companies announced exploration successes expanding coal and iron resources at projects in Mongolia.
The document summarizes news from the Business Council of Mongolia newsletter. Key points include:
- Construction at the Oyu Tolgoi copper/gold mining project is ahead of schedule, with pre-stripping of the open pit mine to begin in August.
- Ivanhoe owns 66% of the project and plans to initially send most production to Chinese smelters.
- The monthly Business Council of Mongolia meeting welcomed 12 new members and heard presentations on Germany-Mongolia business and two Mongolian mining companies.
- Arts and creativity were also discussed, including efforts to preserve Mongolian cultural heritage.
The document summarizes business and economic news from Mongolia reported in Issue 266 of the Business Council of Mongolia NewsWire dated March 22, 2013. Key highlights include:
- Mongolian officials tried to calm fears that disagreements between the government and Rio Tinto over the Oyu Tolgoi mine would delay its planned June start of commercial production.
- Rio Tinto paid nearly $12 billion in taxes globally in 2012, including $280 million in Mongolia.
- Rio Tinto attracted nearly double the $2 billion sought from commercial banks for project financing of Oyu Tolgoi, securing around $3.65 billion committed so far.
- Several mining companies including Newera Resources
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 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 highlights from the Business Council of Mongolia newsletter. It includes the following key points:
- Ivanhoe Mines expects to begin test production at its Oyu Tolgoi copper and gold mine by Q4 2012 and reach full commercial production in 2013.
- Mongolia Mining, the first Mongolian firm to tap the Hong Kong IPO market, has secured strategic investors like Kerry Group and Ancora Capital to help raise $1 billion.
- The Central Bank of Mongolia is likely to penalize banks that failed to disclose ownership details by the required deadline, as the bank has now posted these details publicly on its website.
- Canadian mining companies are playing
The document summarizes business and economic news from Mongolia reported in the Business Council of Mongolia NewsWire on July 30, 2010. Key highlights include:
- Chinese aluminum company Chalco suspended its stock trading ahead of a signing ceremony with mining company Rio Tinto regarding potential partnerships or investments.
- Engineering company Fluor reached an agreement to provide program management and engineering services for the construction of Ivanhoe Mine's Oyu Tolgoi copper and gold mining project in Mongolia.
- Mongolia's Nuclear Energy Agency requested a postponement of a court case regarding its attempt to invalidate exploration licenses held by Canadian mining company Khan Resources in Mongolia.
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 summarizes the key news highlights from Issue 185 of the Business Council of Mongolia NewsWire dated September 16, 2011. Some of the top business stories include TT's IPO being delayed until early 2012, Hunnu Coal agreeing to be acquired by Banpu for $477 million, and the Oyu Tolgoi mine expected to generate one-third of Mongolia's economy by 2020. The "Discover Mongolia" conference delivered investment opportunities in Mongolia's mining sector to over 1,000 investors. Government officials discussed plans to expand Mongolia's infrastructure including roads, railways, and power stations. A panel at the conference addressed issues like mining taxation, licensing, and activities of illegal artisanal miners.
The document summarizes business, 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.
Similar to 23.07.2010, NEWSWIRE, Issue 127-128 (20)
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.
Essential Tools for Modern PR Business .pptxPragencyuk
Discover the essential tools and strategies for modern PR business success. Learn how to craft compelling news releases, leverage press release sites and news wires, stay updated with PR news, and integrate effective PR practices to enhance your brand's visibility and credibility. Elevate your PR efforts with our comprehensive guide.
El Puerto de Algeciras continúa un año más como el más eficiente del continente europeo y vuelve a situarse en el “top ten” mundial, según el informe The Container Port Performance Index 2023 (CPPI), elaborado por el Banco Mundial y la consultora S&P Global.
El informe CPPI utiliza dos enfoques metodológicos diferentes para calcular la clasificación del índice: uno administrativo o técnico y otro estadístico, basado en análisis factorial (FA). Según los autores, esta dualidad pretende asegurar una clasificación que refleje con precisión el rendimiento real del puerto, a la vez que sea estadísticamente sólida. En esta edición del informe CPPI 2023, se han empleado los mismos enfoques metodológicos y se ha aplicado un método de agregación de clasificaciones para combinar los resultados de ambos enfoques y obtener una clasificación agregada.
Acolyte Episodes review (TV series) The Acolyte. Learn about the influence of the program on the Star Wars world, as well as new characters and story twists.
An astonishing, first-of-its-kind, report by the NYT assessing damage in Ukraine. Even if the war ends tomorrow, in many places there will be nothing to go back to.
Here is Gabe Whitley's response to my defamation lawsuit for him calling me a rapist and perjurer in court documents.
You have to read it to believe it, but after you read it, you won't believe it. And I included eight examples of defamatory statements/
1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 127-128, July 23 2010
This is a double issue, giving all the news from last week when we did not publish because of
Naadam.
NEWS HIGHLIGHTS:
Business:
Mongolia watches as Rio-Ivanhoe relations sour;
Why tension rises between Rio and Ivanhoe;
Khan Resources claims victory in Mongolian court;
Petro Matad exploration well at Davsan Tolgoi-1 achieves success;
Energy Resources plans IPO at Hong Kong;
Ivanhoe adds to 'core lender' group for Oyu Tolgoi;
Hong Kong-listed companies rush to buy resource assets in Mongolia;
Voyager Resources starts drilling at Argalant Gold Project;
Mongolia Development Resources first investment holding company listed on MSE;
EBRD lends XacBank USD8 million in MNT for MSMEs;
Entrée Gold files new technical report;
Khan Bank team receives Best Bank award in Hong Kong;
Banks asked to reveal identity of major shareholdings and directors;
New fraud charges against Altan Dornod man likely;
Asia Pacific Investment Partners completes USD4 million convertible note offering;
Giorgio Armani opens store in Ulaanbaatar;
Morgan Stanley Chairman joins China's CIC as advisor;
Burberry sales jump 27%.
Economy:
Development is not wish fulfillment, says PM‟s advisor;
Social, economic data published;
Revised budget shows deficit at 6.4% of GDP;
Copper at 3-week high on China buying, lower stocks;
Processing plants to begin work by 2013, says Zorigt;
Government reviews preparations for establishment of industrial complex;
PM wants professional team to run Development Bank;
Arshad Sayed of World Bank talks of Mongolia‟s “date with destiny”;
NGO feels too much is left unsaid in the Tavan Tolgoi draft;
Citizens‟ shares in Tavan Tolgoi will be valuable assets, assures PM;
Russian Minister tells Mongolia of consortium‟s interest in Tavan Tolgoi;
Monitoring Board sends advisory to Central Bank administration;
Bank loans, both outstanding and non-performing, rise y-o-y;
Business cycle won't be normal for next ten years, says Rio Tinto CEO;
Industrial and service cooperatives‟ association turns 20;
Mongolia wants to boost ties with China's Xinjiang region;
Import bottleneck contributes to price rise;
Mongolian Stock Exchange offers ray of hope;
NEA chief defends State policy in uranium sector;
Updates on TVET ready;
3-day Mongolia Investment Summit in Hong Kong in October;
China passes U.S. as world's biggest energy consumer;
2. China denies IEA claim on energy consumption;
China's dubious energy accolade;
Chinese economy starts to cool down;
Managing China's economic trajectory is getting trickier;
Seoul calls on IMF to tackle volatility.
Politics:
Parliament extends session to finish work;
MPs postpone decision on removing anti-corruption bosses;
U.S. Deputy Secretary of State pays a day‟s visit;
Mongolia-Russia meeting ends with reiteration of intents;
Ambassador sees steady growth in relations with Russia;
Russian Transport Minister pitches for aircraft sale;
Wagons, engines on new railway may be privately owned, Minister clarifies;
Construction of new Parliament building to begin in autumn;
Elbegdorj emulates Putin, dives to the bottom of Lake Baikal;
World Bank representative awarded medal;
U.S. move to ascertain source of “Mongolian” honey;
Senator to ask why Canberra 'lobbied against tax' in Mongolia;
Containing China from Mongolia to Vietnam;
Beijing revives the idea of „empire‟ with the New Silk Road;
Michael Kohn sees a sprinkling of new parks in Ulaanbaatar.
*Click on titles above to link to articles.
BUSINESS
MONGOLIA WATCHES AS RIO-IVANHOE RELATIONS SOUR
The close relationship between global miner Rio Tinto and Canadian company Ivanhoe Mines
appears to be unraveling just as their biggest joint project starts moving toward production. At the
center of the dispute lies a slow-motion tug-of-war over control of Mongolia's Oyu Tolgoi mine, the
world's largest undeveloped deposit of copper and gold, due to start production in 2013.
In a world where miners habitually bemoan the dwindling number of blockbusting discoveries, the
site 550 km south of Ulaanbaatar stands out, with measured, indicated and inferred reserves of 81
billion pounds of copper and 46 million ounces of gold, worth around USD300 billion at current
market prices. "Ultimately that is just such a fantastic asset, and [Rio Tinto chief executive] Tom
Albanese has openly stated that they want to own more of Ivanhoe," says a mining analyst in
Sydney.
Rio said on July 9 it was seeking arbitration over a shareholder rights plan adopted by Ivanhoe's
board in April. Rio said the plan was in breach of a private placement it agreed with Ivanhoe in
October 2006, under which it has provided the Canadian company with USD1.73 billion, primarily
for investment in Oyu Tolgoi. Ivanhoe retaliated by suspending restrictions on new strategic
investors.
In a statement on the issue, Ivanhoe highlighted that the shareholder rights plan "does restrict Rio
Tinto ... whether acting alone or in concert with another party, from acquiring additional Ivanhoe
shares in the market". "(Ivanhoe) are protecting themselves," said an analyst. "If Rio ever does
decide to make a bid, they want to make sure they get a full price, not a cheeky price."
The Mongolian government may also be wary of Chinalco's involvement. China would be the major
consumer for the mine, but Ulaanbaatar is prickly about Beijing and Chinalco is a Chinese state-
owned company. "The government is carefully analyzing the situation to make sure that the
interests of Mongolia and its shareholding in Oyu Tolgoi are ensured and that strategic interests of
the country are well protected," said Mr. D. Zorigt, Minister for Mineral Resources and Energy.
A spokesman for Rio Tinto said the arbitration process was expected to be "quite rapid" but he
didn't comment on the company's strategy. An Ivanhoe spokesman in Vancouver also didn't offer
comment on the company's motivation, while Chinalco executives couldn't be immediately reached
for comment.
Read more…
3. Ivanhoe said in a statement on July 13 that the move would allow third-party strategic investors,
"which could include major mining companies", to take stakes of at least 5%, in effect diluting Rio's
own holding. Oyu Tolgoi is two-thirds owned by Ivanhoe and one-third by the Mongolian
government. Rio, in turn, controls 29.6% of Ivanhoe, and is allowed to increase its stake to 46.65%
by October 2011. Ivanhoe's executive chairman, Mr. Robert Friedland, holds another 22%.
Some analysts say Rio is intent on retaining the option of increasing its holding in Ivanhoe to a
majority stake, with Ivanhoe's board equally intent on capping its control at 46.65%, or even
reducing it. Under the shareholder rights plan adopted by Ivanhoe's board in April, any party making
an acquisition above 20% of the company would trigger a so-called poison-pill clause, allowing
existing shareholders to purchase fresh shares and dilute the party's stake.
Such poison-pill clauses are commonly used in the U.S. to prevent creeping stake-building by
suitors. Ivanhoe‘s announcement would similarly risk diluting Rio's stake, keeping majority control
out of its reach. One issue raised by several observers is that Ivanhoe may fear a third party taking
out a stake as an informal proxy for Rio, thus boosting the Anglo-Australian company's effective
position above 50%.
Any such concerns would have been heightened by a recent Securities and Exchange Commission
filing by Rio, in which the company said it was having "ongoing discussions" with Aluminum Corp. of
China, or Chinalco, over the Chinese company acquiring a minority stake in either Ivanhoe or Oyu
Tolgoi. Chinalco holds 9% of Rio's stock and acts as a joint-venture partner with the Anglo-Australian
company in the Simandou iron ore project in Guinea.
Source: The Wall Street Journal Asia
WHY TENSION RISES BETWEEN RIO AND IVANHOE
It is impossible not to perceive the suddenly visible tension between Rio Tinto and its vehicle for
Mongolian expansion, Ivanhoe Mines. It is part of another move in the Anglo-Australian's progress
towards control of the world's biggest undeveloped copper prospect, Oyu Tolgoi. Currently, Rio is a
partner in Ivanhoe's Mongolian ambitions in everything but investment fact.
Rio is already embedded in the technical and financial progress of Ivanhoe's proposed USD4 billion
Oyu Tolgoi project. It also led the final rounds of negotiations that successfully ended five tricky
years of debate over Mongolian mining law and the mining agreements that ultimately secured
investment in the project. But the uncomfortable fact for the mining giant is that it has no direct
skin in the Mongolian game.
And that position would seem to be unsustainable, at least from Rio's perspective. Ivanhoe's most
recent integrated development plan holds out the prospect that Oyu Tolgoi can sustain average
production of 410,000 tons of copper and 455,000 ounces of gold over a 59-year mine life.
Rio is an owner of three of the world's biggest copper producers. It owns all of Utah's century-old
and still-going-strong Bingham Canyon and very healthy minority positions in the BHP Billiton
operated Chilean monster, Escondida, and Freeport's Indonesian lesser-monster, Grasberg. Oyu
Tolgoi, along with an ultra-deep US deposit called Resolution, has long been announced as Rio's
copper future. It owns 60 per cent of Resolution. Its exposure to Oyu Tolgoi is through a still
growing minority stake in Ivanhoe.
So, when you boil it down, it would seem inevitable that Rio will attempt either to take control of
Ivanhoe or move to meaningful level of direct ownership of Oyu Tolgoi LLC, the Mongolian company
that owns the mining leases. As things stands, Rio has influence over Oyu Tolgoi through a 22.4 per
cent stake in the Canadian Godfather of Mongolian mining, Ivanhoe. Rio is currently in the process
of exercising USD393 million of warrants, converting them into a further 7.3 per cent of Ivanhoe.
And, as soon as September 12, when a USD350-million loan along with USD108 million of capitalized
interest converts into 45.8 million shares, Rio will control 42.9 per cent (fully diluted) of Ivanhoe.
Incidentally, Mr. Robert Friedland, the legendary executive chairman and founder of Ivanhoe, owns
23 per cent of the business and has denied loud and often that his interest is, or will be, on the
market.
Read more…
Rio says its "strong objection" to Ivanhoe's recently adopted shareholder rights scheme was ignored
and it wants a third party to review an arrangement. The effect of the scheme is that Rio, or
anyone else for that matter, is prevented from moving to control of Ivanhoe without making an
offer for all the outstanding capital. Canadian takeover rules allow for a partial offer and, given Rio
is headed for about 43 per cent, taking that one step further to control would have seemed logical.
"We been talking this issue through for a while now and we are just not getting a lot of love," a Rio
insider has commented. Rio says it chose arbitration over a court process because it would be
settled quicker and because it is less harmful to what needs to remain a civil, constructive
4. relationship. What happens now is that an arbitrator has to be agreed on, or appointed by a court,
within 30 days and then the process must kick off within 51 days.
Talk about the shareholder rights scheme have been bustling on since April, when the independent
directors of Ivanhoe proposed an idea ostensibly aimed at ensuring all shareholders might benefit
from any attempt Rio might make at taking control of its bridge into Mongolia and beyond. Rio sees
it quite differently, arguing that the scheme is a breach of its "contractual rights". The whats and
hows of those claimed breaches have not been spelt out.
In the meantime, though, Rio has been busy attempting to translate its investment in Ivanhoe into a
direct stake in Oyu Tolgoi. The reality of these discussions, if not their detail, was confirmed in a
statement to the US Securities and Exchange Commission. "Rio Tinto's discussions with the Company
(Ivanhoe) about long-term structures, including the potential conversion of its subsidiary's equity
stake in the company into a direct ownership interest in the Oyu Tolgoi copper and gold mineral
development project in Mongolia's South Gobi region, continue."
At the same time, Rio has been busy talking to Chinalco about both Ivanhoe and Oyu Tolgoi. In the
same statement, Rio reported that Chinalco had "indicated an interest in acquiring a minority
equity stake in the Company (Ivanhoe) or acquiring a direct minority ownership interest in the OT
project. If any arrangement is agreed to, it may be a bipartite or tripartite arrangement with the
Company and/or Rio Tinto," the statement said.
Then, hidden beneath an explosion of legalese, Rio spelt out the options it is working on. The
company said it might seek further representation on the Ivanhoe board before raising the prospect
of "availing itself of its rights to acquire additional securities" in Ivanhoe.
Rio then suggested it could yet approach Mr. Friedland "alone or jointly with a third party" with a
proposal for the "long-term structure of its (Rio's) existing investment, a direct interest in the OT
Project or other changes to the capitalization, ownership structure of operation of the company."
How Ivanhoe has received this stuff, well, you can only guess. Mr. Friedland is no one's idea of a
shrinking violet. But it might well be illustrative of the sort of pressures and tension now afoot that
Rio says its senior appointee to the Ivanhoe board, global copper boss Andrew Harding, recently
resigned to concentrate on chairing the technical committee steering Oyu Tolgoi.
Mr. Harding's departure leaves Mr. Tracey Stevenson the only Rio representative on Ivanhoe's board.
But it is understood Rio is now determined to lift its representation to the three it is entitled to
under the investment agreements forged back in 2006. Mr. Harding's priorities could be instructive
on two fronts. Rio might well be expressing its disappointment with being ignored in the discussion
over the shareholders rights issue. And, the idea that Mr. Harding is going to spend time running the
Oyu Tolgoi technical committee might well indicate, as has been rumored, that there is some
discord between Ivanhoe and its shareholder over the planned shape of project.
Source: The Australian
KHAN RESOURCES CLAIMS VICTORY IN MONGOLIAN COURT
Khan Resources has won a court challenge to a Mongolian decision to invalidate a key mining license
held by a subsidiary of the company, it said on Monday. The Mongolian Capital City Administrative
Court has ruled in favor of Central Asian Uranium Company (CAUC), in which Khan owns 58%, ―and
declared that the previous purported decision by the Mongolian Nuclear Energy Agency (NEA) to
invalidate CAUC's mining license 237A is itself invalid and illegal‖, the firm said.
In April, both CAUC and Khan's 100%-owned Mongolian subsidiary Khan Mongolia received notices
from the NEA, which said that their respective licenses had been invalidated as of October 2009,
based on unspecified violations of Mongolian law. CAUC holds the license for the Dornod uranium
project, and Khan Mongolia has an exploration license for an adjoining property.
Khan said at the time that it planned to challenge the notices in Mongolian court, and then-CEO
Martin Quick suggested that Mongolian officials were acting under pressure from Russia, which
wants to participate in the development of the Dornod project. "We are extremely pleased that
the court accepted all of CAUC's claims and unequivocally affirmed that the NEA's actions were
unlawful and illegal," Khan CEO Grant Edey said.
NEA has the right to appeal the decision within two weeks. A separate case to consider the Khan
Mongolia license is still pending, with a hearing scheduled for July 22.
Although CAUC's mining license is no longer considered invalidated, the company will need to wait
for it to be approved for re-registration under Mongolia's new nuclear energy law. CAUC applied in
November last year to have the license reregistered.
―Khan continues to believe that it and its Mongolian subsidiaries have always operated in
compliance with applicable Mongolian laws. Khan intends to continue to vigorously challenge the
NEA's action, including any appeals the NEA may bring, through all legally available means,‖ the
5. company said.
Read more…
Last year, Russian State-owned miner Atomredmetzoloto (ARMZ), which owns 21% of CAUC,
launched a hostile bid for Khan, which the company rejected as opportunistic. ARMZ backed off the
offer in February, after Khan agreed to be acquired by China National Nuclear Corp. However, the
CNNC offer was dropped in May, after the Chinese group failed to get regulatory approval in China
for the CAD0.96 a share offer.
Source: www.miningweekly.com
PETRO MATAD EXPLORATION WELL AT DAVSAN TOLGOI-1 ACHIEVES SUCCESS
The Petro Matad Davsan Tolgoi-1 (DT-1) exploration well reached a final measured depth of 1,220m
on 14 July. The well passed through the Tsagaantsav formation from 1,075m to 1,146m, then
entered metamorphic basement. The entire 71m section of the Tsagaantsav formation contained
oil shows and elevated mud gas, with indications of live oil through six sandstone and conglomerate
units totaling about 35m in aggregate. Several of these intervals included very good shows that
included cut, fluorescence, oil staining and a strong petroliferous odor. Good reservoir quality is
indicated by fast drilling breaks through all sandstone and conglomerate intervals.
Wireline logging will be carried out on the DT-1 well and following completion of that process the
drill will move to DT-2. Subject to Board consideration and approval, DT-2 is to be a 2,000m test of
the lower Tsagaantsav that is located 4 km west of DT-1 within an independent structural closure,
and adjacent to the Tamsag Basin generative area.
CEO Douglas McGay said, "To have achieved success on the first well has been both a significant
achievement for our company and Mongolia, and also a tribute to our technical teams. Although
the scientific testing and analysis of the discovery is only just commencing, DT-1 has gone a long
way towards proving that the Davsan Tolgoi Prospect is, in total, as viable a target as first
hypothesized. Not only have we encountered significant hydrocarbons, the increase in our
scientific knowledge will lessen the risks associated with further wells. It also adds confidence to
our assessment of the other leads and prospects on Block XX, and the other 6 sub-basins in Block XX
that are still to be explored and tested."
Source: Petro Matad Limited
ENERGY RESOURCES PLANS IPO IN HONG KONG
Energy Resources LLC aims to raise between USD800 million and USD1 billion in a Hong Kong initial
public offering by as early as September, three sources with knowledge of the matter have said.
The Mongolian coking coal company, whose Ukhaa Khudag mine is roughly 245 km from the Chinese
border, will be the first company listed in Hong Kong to be fully based and operated in Mongolia.
The offering would be sponsored by Citigroup and JP Morgan, the sources said.
Mongolia's domestic companies are seeking foreign capital to help them expand, and the
government is trying to connect local companies and its stock market with the rest of Asia -- from
Hong Kong to Korea to Japan -- hoping to turn domestic franchises into regional ones. Earlier this
year, media reports said Energy Resources was seeking either a London or a Hong Kong IPO.
The company's peers in Hong Kong -- Mongolian Energy Corp and SouthGobi Energy Resources --
operate mines in Mongolia but are headquartered offshore in Hong Kong and Canada, respectively.
Hong Kong has long been a natural destination for emerging Mongolian champions, given its
diversified investor base, proximity to mainland China, and China's hunger for Mongolia's copper,
iron ore, gold and coal.
Source: Reuters.com
IVANHOE ADDS TO „CORE LENDER‟ GROUP FOR OYU TOLGOI
Ivanhoe Mines has appointed BNP Paribas, Standard Chartered and Export Development Canada
(EDC) to complete its core lender group of five financial institutions that will lead the arrangement
of a project finance debt package for the Oyu Tolgoi complex.
Ivanhoe said in May that it had signed a joint mandate letter with the European Bank for
Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) for
evaluation of a major financing package for the project, which is expected to cost USD4.6 billion.
"The completion of the assembly of the core lender group is a key step in the process of securing
the Oyu Tolgoi financing package, which we expect to close in the first quarter of 2011," executive
chairperson Robert Friedland said in a statement. "The five financial institutions have indicated that
they are prepared to consider providing limited recourse loans that would total more than USD2
billion, demonstrating the high level of interest in international financial circles in participating in
6. the project and awareness of its game-changing significance to copper and gold markets," he
commented.
Mr. Friedland said that Ivanhoe had evaluated expressions of interest from 13 banks and selected
Paris-based BNP Paribas and London-based Standard Chartered to work with the EBRD, the
International IFC and EDC in arranging the financing.
BNP Paribas and Standard Chartered have indicated that they are considering retaining a
―significant‖ exposure to the Oyu Tolgoi project debt through a mix of facilities, including EBRD and
IFC 'B' loans, facilities backed by export credit agencies and commercial loans. Under the terms of
the mandate letter signed earlier this year, the IFC and the EBRD will consider directly providing up
to USD600 million, representing approximately USD300 million each, as part of a group of primary
lenders in limited-recourse project financing.
The EDC is also considering providing up to USD500 million in direct project financing capacity,
subject to necessary approvals, including ensuring that the Oyu Tolgoi Project meets EDC's
environmental and social impact review requirements.
Read more…
Significant support for the Oyu Tolgoi financing also is expected from commercial lenders under 'B'
loan structures and under the guarantee schemes of other export credit agencies, Ivanhoe said, and
the company continues to discuss additional financing options for the balance of its capital
requirements.
Ivanhoe is 29.6% owned by the world's third-biggest miner Rio Tinto, which can increase its holding
to 46.6%. The two recently revealed a dispute over Ivanhoe's new shareholder rights plan, which Rio
says breaches the terms of existing agreements between the companies. The firms are headed to
arbitration to resolve the issue.
Ivanhoe also announced last week it had given Rio Tinto 60 days' notice that it will terminate a
covenant that has prevented it from issuing shares worth more than 5% of the company to so-called
strategic investors.
Although Oyu Tolgoi is Ivanhoe's most high-profile asset, the company also owns 65% of Mongolian
coal-miner SouthGobi Energy Resources and a controlling interest in Ivanhoe Australia.
Source: www.miningweekly.com
HONG KONG-LISTED COMPANIES RUSH TO BUY RESOURCE ASSETS IN MONGOLIA
Over the last 12 months, Mongolia has become an attractive investment destination for companies
listed on the Hong Kong Stock Exchange (HKEx). In this period several such companies have acquired
resource assets in Mongolia worth USD966 million in M&A deals. All recent Mongolia M&A deals in
which Hong Kong companies were involved were completed through injection of resource assets
into the existing publicly listed companies. Before acquisition, these companies engaged in a
diverse range of activities and industries including agriculture, waterworks, IT, clean tech, plastic
products and even manufacturing of toys and gifts.
Following their acquisitions, the following HKEx-listed companies are now primarily Mongolia-
focused resource companies:
Bestway International Holdings, an investment holding company engaged in trading of
plastic products, acquired two tungsten mines in Mongolia for USD121 million in July 2009.
North Asia Resources Holdings, formerly known as Green Global Resources Ltd., acquired
100% of North Asia Resources Group Ltd., a private resource company in Mongolia, for
USD227million in December.
Kiu Hung Energy Holdings, an investment holding company with businesses in energy, gift
and toy industries, acquired coal assets in Mongolia from First Dean Holdings Ltd for USD180
million in March.
Solartech International Holdings, a manufacturer of cables, wires, connectors and
terminals, has acquired an 87.9% stake in Sun Progress Ltd which owns a copper-gold-silver
mine in Mongolia for USD193 million in May.
Ming Hing Waterworks Holdings, engaged in waterworks technology and engineering,
acquired a number of coal, gold and copper mining and exploration licenses in Mongolia for
USD245 million in June.
Mongolia Energy Corp, formally New World CyberBase Ltd., was the first HKEx-listed
company to acquire a resource asset in Mongolia through asset injection. It paid over
USD150 million for a coal mine in January 2007.
More Hong Kong-listed companies are expected to pursue M&A deals in Mongolia through asset
injections. Some small-cap companies may find it too tempting to acquire resource assets in
7. Mongolia in order to revive their sagging fortunes and join the growing league of Mongolia-focused
resource companies at the HKEx. At the same time, the private owners of resource companies in
Mongolia might target small-sized HKEx-listed companies in their effort to seek "back-door listing"
through lucrative reverse takeovers.
Read more…
Most of these companies would appear to have overpaid for these earlier stage resource assets.
Poor post-acquisition share price performance only underscores investor concerns. For example,
Solartech is down 75% since the announcement of its deal. Owners of target companies with
Mongolian assets (primarily mainland Chinese and Hong Kong private investors) are clear winners as
they have disproportionally benefited from these deals.
Source: www.eurasiac.com
VOYAGER RESOURCES STARTS DRILLING AT ARGALANT GOLD PROJECT
Initial diamond core drilling has started at Voyager Resources‘ Argalant Gold Project in Mongolia.
The program is designed to test highly anomalous geophysical targets that were delineated from a
recent induced polarization (IP) survey conducted over the area.
Argalant is about 900 km west of Ulaanbaatar. The property is 21sqkm in size and is in a similar
geological setting to the nearby Golden Hills Gold-Copper Project. Voyager plans to complete about
1000 meters of diamond core drilling at Argalant in coming weeks.
Voyager continues to focus on growing its gold business in Mongolia through the acquisition, funding
and focused development of high quality gold projects. The start of drilling at Argalant is the
second in a number of drill programs to be completed over the next six months, with reverse
circulation drilling continuing at the high-grade Daltiin Ovor Gold Project and drilling to start at
Voyager‘s Tsagaan Chuluut and Tsagaan Gold Projects.
Source: www.voyagerresources.com
MONGOLIA DEVELOPMENT RESOURCES FIRST INVESTMENT HOLDING COMPANY LISTED ON MSE
Mongolia Development Resources (MDR) has become the first investment holding company listed on
the Mongolia Stock Exchange (MSE). The company shares resumed trading on MSE on July 15,
following the approval of the new charter and new prospectus by the Financial Regulatory
Commission. MDR shares are now traded under new ticker MDR, instead of the earlier TSU, dating
from the time when the company was known as Tuul Songino Water Resource.
The main activity of MDR is to build and provide diversified exposure to the Mongolian economy for
local and international investors. The main areas of investments are property, mining, oil & gas,
infrastructure and financial services. The company launched its IPO on the Mongolia Stock Exchange
in December 2007, raising MNT 13.7 billion in one of the largest IPOs in the history of MSE to date,
with 90% of shareholders being international investors.
Source: Mongolia Development Resources
EBRD LENDS XACBANK USD8 MILLION IN MNT FOR MSMEs
The European Bank for Reconstruction and Development (EBRD) has announced a synthetic loan
worth USD8 million in local currency to XacBank for financing micro and small businesses in
Mongolia. XacBank is the second largest microfinance bank in Mongolia, and the EBRD holds
approximately ten per cent equity stake in it.
Extended under the EBRD‘s Mongolia Financial Sector Framework, the loan will enable XacBank to
meet the growing demand for local currency financing and increase further its outreach to
entrepreneurs in remote areas. The synthetic local currency loan, the first one provided by the
EBRD in Mongolia, will help XacBank increase the term of its local currency funding, and expand its
portfolio of loans in MNT. This will enable XacBank‘s clients to repay their loans in the same
currency as they earn from their operations.
It is envisaged that a technical assistance program will accompany the loan financing to further
strengthen the bank‘s MSME lending business by providing capacity building and strengthening risk
management and internal control practices. ―With this transaction and in close cooperation with
our partner bank XacBank, the EBRD is deepening its support for Mongolian micro and small
enterprise sector which is an essential element for private sector growth in Mongolia. This local
currency facility is the first the EBRD has executed in Mongolia and it will enable XacBank to
mitigate the foreign currency exchange risks for its clients‖, said the Head of the EBRD Office in
Mongolia, Mr. Philip ter Woort.
Source: Microfinance Focus
8. ENTRÉE GOLD FILES NEW TECHNICAL REPORT
Entrée Gold has filed a comprehensive NI 43-101 Technical Report (ETR10) which outlines the
history and exploration of the Lookout Hill Project and discusses various scenarios related to future
development of the Oyu Tolgoi mining complex and, more specifically, the Entrée-Ivanhoe Joint
Venture Property.
ETR10 includes information from Ivanhoe Mines‘ integrated development plan (IDP10) prepared for
the Oyu Tolgoi project. Entrée has supplemented the work in IDP10 with additional analysis specific
to the company and its holdings in the Oyu Tolgoi project area. This additional work has been
prepared to examine further aspects of the mineral reserve, metal price sensitivities, real options
analysis, Heruga and additional production options.
Entrée‘s president and CO Greg Crowe says, ―The nature and quality of the Oyu Tolgoi deposits
allows the development team great flexibility in determining how and when individual deposits are
brought on line.‖
Source: www.entreegold.com
KHAN BANK TEAM RECEIVES BEST BANK AWARD IN HONG KONG
The prestigious magazine Euromoney announced some time ago that it had chosen Khan Bank as the
best bank of Mongolia for the 5th year in a row. A team from the bank received the award at a
ceremony in Hong Kong on July 15.
Explaining its choice, Euromoney has said, ―Khan Bank is still widely regarded by independent local
securities firms and market participants as having the best corporate governance and the strongest
balance sheet. In October 2009 it became the first Mongolian bank ever to reach MNT1 trillion in
total assets, and is the first among its peers to convert all of its branches to an online real-time
system. It has the largest ATM network in the country, and … is best poised to benefit in Mongolian
financial and economic development.‖
Source: Khan Bank
BANKS ASKED TO REVEAL IDENTITY OF MAJOR SHAREHOLDINGS AND DIRECTORS
The head of the Inspection Department at the Central Bank, Mr. B.Lhagvasuren, has said banks that
have not revealed their shareholding pattern, names of directors, and other information as
demanded by provisions of the new Banking Law will have to explain their failure. The Central Bank
has all the information, but it cannot reveal them. The legal onus to do so is on the banks
themselves. Some banks have said they are waiting for a final provision relating to the election of
one independent member to the representative administrative board to take effect, but the Central
Bank has told them that they must reveal the name of the other directors without delay.
Source: Ardiin Erkh
NEW FRAUD CHARGES AGAINST ALTAN DORNOD MAN LIKELY
Investigations are believed to have revealed that Mr. S.B. Paushok, head of Altan Dornod Mongol,
unlawfully siphoned off large sums of money the company kept in Anod and Zoos banks as security
against supply of machinery and equipment from the Japanese Itochu Corporation. The Russian
businessman, who has taken the Mongolian Government to an international arbitration court on the
windfall profits tax issue, is already facing charges of tax evasion, and is now likely to be accused of
benefiting from fraudulent bank transactions.
Source: Zuunii Medee
ASIA PACIFIC INVESTMENT PARTNERS COMPLETES USD4 MILLION CONVERTIBLE NOTE OFFERING
Hong Kong-based Asia Pacific Investment Partners recently completed a convertible note offering,
raising approximately USD4 million, according to Mr. Lee Cashell, Managing Partner of APIP. The
round was led by a Singapore-based hedge fund and also included a number of other private and
institutional investors.
APIP holds market-leading positions in Mongolia's real estate development, cement, and mining
industries and also has interests in transportation, luxury development, and infrastructure
development. It owns Altan San Securities, one of the country's major stock broking firms with a
seat on the small but rapidly developing Mongolian Stock Exchange.
"The majority of the financing raised in the recent round will be allocated towards rapid capacity
expansion of Central Asian Cement (CAC) and will be used to develop CAC's own clinker production
facility as part of the company's vertical integration strategy. Additional funds will be used towards
further exploration of the company's recent discovery of a large body of iron ore in a region
bordering close to China," commented Mr. Cashell.
9. The company is planning an additional capital raising exercise of USD30 million later this year as a
precursor to seeking listing on a suitable exchange.
Source: Asia Pacific Investment Partners
GIORGIO ARMANI OPENS STORE IN ULAANBAATAR
Giorgio Armani SpA, the Italian fashion company whose clothes are worn by celebrities including
Angelina Jolie and Leonardo DiCaprio, said it opened its first stores in Mongolia and Vietnam as it
seeks to tap Asian demand.
Emporio Armani boutiques opened in Ulaanbaatar and in Ho Chi Minh City, Vietnam, where the
clothier also added a cafe, the Milan-based company has said in two e-mailed statements, without
saying when the outlets began trading. Each country is ―ready‖ for Italian fashion and design, Mr.
Giorgio Armani, the closely held company‘s founding president and chief executive officer, said in
the statements.
Armani is seeking to diversify its geographic sources of revenue after profit fell 28 percent last year
because of the recession in North America and Japan. The company follows LVMH Moet Hennessy
Louis Vuitton SA in opening stores in Mongolia and Vietnam. Sales of luxury goods in Asia Pacific,
excluding China, may rise 10 percent this year, Bain & Co. estimated in April.
Armani has 1,503 single-brand outlets worldwide.
Source: Bloomberg.com
MORGAN STANLEY CHAIRMAN JOINS CHINA‟S CIC AS ADVISOR
China Investment Corp, the country‘s main sovereign wealth fund, has appointed Mr. John Mack,
chairman and former chief executive of Morgan Stanley, to its 14-member international advisory
council. The USD300 billion fund‘s choice of Mr. Mack as an advisor will further cement its ties with
the Wall Street bank, in which it holds a stake of nearly 10 per cent.
Mr. Mack is expected to step down as chairman of Morgan Stanley at some point in the next year or
two and has been looking for ways to stay engaged in China, according to Beijing-based bankers. He
will follow in the footsteps of Mr. John Thornton, the former Goldman Sachs president and current
non-executive chairman of HSBC‘s North American unit.
CIC has also named Mr. Joseph Yam, former head of Hong Kong‘s Monetary Authority, to the
council. Current members include Mr. Nicholas Stern, a former World Bank chief economist, Mr.
James Wolfensohn, a former World Bank president, and Mr. Taizo Nishimuro, chairman of the
Tokyo Stock Exchange and a former chairman and CEO of Toshiba.
Mr. Mack and Mr. Yam will both serve a term of two years on the council, which was set up more
than a year ago as part of CIC‘s plan to be more transparent and accountable.
Source: The Financial Times
BURBERRY SALES JUMP 27%
U.K. luxury fashion house Burberry PLC, which recently opened its own store in Ulaanbaatar, has
reported a strong start to its fiscal year, with a 27% rise in first-quarter sales, and said it expects to
remain unaffected by projected drops in consumer spending. The company said it is not overly
concerned about the effect of potential macroeconomic headwinds on consumer spending as
governments across the world take measures to cut public expenditure and rein in borrowing. "The
Burberry brand continues to outperform irrespective of what the local economy is doing," said
Finance Chief Stacey Cartwright.
Burberry's better-than-expected increase in sales to USD427.4 million in the three months to June
30 was boosted by purchases of outerwear and non-apparel accessories, and a strong performance
from Europe and Asia-Pacific. The Americas grew at a low single-digit pace as promotional activity
was reduced, the company said. Retail sales rose 21% from a year earlier, with sales from stores
open at least a year up 10% and new space generating 6% of total growth.
Source: The Wall Street Journal Asia
ECONOMY
DEVELOPMENT IS NOT WISH FULFILLMENT, SAYS PM‟S ADVISOR
Mr. N.Enkhbayar, Economic Advisor to the Prime Minister, has cautioned that optimal utilization of
the Tavan Tolgoi resources would need much more than the present practice of just transporting
and unloading across the border in small volumes. ―We shall now need more complex negotiations
and shrewd analysts who know how the commodity market works,‖ he has said. Now that the
Government policy on the railway has been approved by Parliament, work can start on determining
10. how the railway will be constructed, by whom and what the terms of the agreement would be. ―All
this takes time and we should not expect trains to start running soon,‖ he has said.
Mr. Enkhbayar feels Mongolia has to outgrow the mindset that is a legacy of the old regime. An
inability to identify, evaluate and grab chances provided in a free market, ―to grasp the modalities
of the market system as it works in most of the rest of the world, especially in the wealthy West‖
has led to international organizations sometimes criticizing Mongolia for producing ―wish lists‖, for
preparing ―dream projects‖ that do not come true. ―Another problem with us is that we lack a
proper understanding of the way things need to be done,‖ he has said, citing as example how all
the talk about setting up metallurgical and processing industries sidesteps any concrete reference
to how this can be done. ―No one publicly admits that a copper smelter is technologically
complicated, requires large investment, and skills. We do not have any of these at the moment so a
smelter is indeed wishful thinking. Where will the electricity and other basic requirements come
from?‖ he asks.
Mr. Enkhbayar recognizes that if foreign companies thought it would be commercially viable, they
would not only have built a processing plant in Mongolia, but would also have started manufacturing
cars here. They were deterred by the market size for the product and by the lack of skilled labor.
These are preliminary considerations before building any large industry, whoever wants to build it.
Mr. Enkhbayar has reiterated that the position of the Prime Minister is that the choice of the
extracting contractor at Tavan Tolgoi will depend on the merit of the total package offered to
Mongolia, not just on who will do the work at the least cost. ―Ultimately the project will be
profitable depending on the quality of the coal and timely delivery. It is a fiercely competitive
world and customers are not interested in whether the coal comes from a Mongolian state-owned
company or an Australian private company. Origin has become secondary in a globalised world. The
determining factor is commercial competence and it is up to Mongolia to make the most of its
resources and opportunities,‖ he had said.
Source: The Mongolian Mining Journal
SOCIAL, ECONOMIC DATA PUBLISHED
The National Statistical Office has revealed social and economic figures for June and, in some
cases, for the first six months of the year. The point of reference will be corresponding figures in
2009, unless otherwise specified.
Consumer price index
The national consumer price index in June dropped 1.5 percent from May but was 11.4 percent
higher than in June, 2009.
Unemployment
The number of registered unemployed reached 39,941 at the end of June, an increase of 1.1 per
cent.
Foreign trade
Total turnover of trade with 120 countries in the first half of the year reached USD 2,664.9 million,
an increase of 61 percent. Exports rose 71.5 percent and imports 51.9 percent. Trade deficit
decreased by 63.3 percent.
Industrial output
Total industrial output in the first six months rose 12.4 percent (at 2005 constant prices) over that
in the corresponding period last year. This includes a 4.4% rise in the manufacturing sector and a
6.5% increase in electricity, thermal energy, and steam generation.
Construction
Domestic entities accounted for 87.6 per cent of the total MNT55.9 billion worth construction and
installation work in the first half of the year.
Freight and passengers
The volume of freight rose 17.9 per cent in the first six months, but passenger traffic fell 0.8 per
cent. Both figures cover all types of transport.
Budget
11. The deficit in the General Government Budget was MNT93.8 billion less in the first half of 2010,
when compared to the same period last year. Tax revenue increased 66.2 per cent. Collection from
the windfall profits tax rose 4.2 times, from corporate income tax 2.1 times, and from VAT 69.0
percent.
Non-tax revenue in this period fell 26.2 percent year on year. Total capital expenditure was 57.0
percent higher but foreign financed capital expenditure decreased 87.4 percent.
Social welfare
Government organizations accounted for 41.8 percent of the 493,900 people covered by social
insurance in the first half of 2010, with the rest 58.2 percent coming from the private sector. A
total MNT166.0 billion was paid as pension from the social insurance fund in the first half of 2010,
of which retirement pension accounted for 73.1 percent, pensions for the disabled for 12.8 percent,
breadwinner loss pension for 7.4 per cent, and military pension for 6.7 percent.
MNT12.7 billion was paid as social welfare allowances to 55,700 people in the first half of 2010. The
amount is 5.7 per cent more than in the same period last year, while the number of beneficiaries is
4.7 percent higher. Altogether MNT169.8 billion was distributed to 2.4 million people from the
Human Development Fund (HDF).
Share trading
A total 1.6 million shares valued at MNT1.2 billion were traded in 21 trading days in June. The
number of shares traded was 4.1 times fewer than in May and 7.8 times fewer than in June, 2009.
Source: Montsame
REVISED BUDGET SHOWS DEFICIT AT 6.4% OF GDP
Among the several draft laws hastily approved, in succession by the relevant Standing Committee
and then by Parliament itself, without too much of a discussion in either forum, before Parliament
went into recess after an extended session, was the one on budget revision. Revenue is now fixed
at MNT2,645.7 billion, MNT145.3 billion less than earlier estimated, while expenses are MNT3,107.9
billion, down by MNT143.3 billion. The total deficit now stands at 6.4 percent of the GDP.
Source: Undesnii Shuudan
COPPER AT 3-WEEK HIGH ON CHINA BUYING, LOWER STOCKS
Copper rose to its highest in more than three-weeks on Wednesday due to strong physical and
Chinese buying and falling inventories, but traders said economic growth worries were likely to
keep a lid on prices. Benchmark copper for three-month delivery CMCU3 on the London Metal
Exchange touched USD6,874.75 a ton, its highest since June 28.
"There was Chinese buying overnight, which triggered this rise," a trader said. "It then pushed
through some stop levels; and it's been technical buying and short-covering after that." He said from
a technical point of view, markets could go higher but he added: "Unless you see a serious
tightening in the physical market, I just don't see how copper can sustain these kinds of levels."
Copper has been stuck in a range of around $6,300 to $6,900 since early June. "You've got this
tussle between positive and negative, and as a consequence I see these things trade range bound,"
said an analyst at Deutsche Bank.
Read more…
Continuous stock drawdowns underpin prices, but unexpectedly poor economic data from the
United States, like Tuesday's new U.S. home construction hitting an eight-month low, is capping
further gains and clouding the demand prospects. A mid-year metals price poll showed copper was
expected to average USD6,878 a ton this year from USD7,077 a ton in the January poll. ]
Investors also fretted over data showing China's imports of refined copper fell for a third straight
month in June. Copper stocks fell 1,975 ton to 417,625 ton, down from near seven-year highs at
555,075 tons hit in mid-February. Industry data showed, in the first four months of the year the
copper market had moved into a deficit of 67,000 tons, from a 74,000 surplus in the same year-ago
period.
Source: Reuters.com
PROCESSING PLANTS TO BEGIN WORK BY 2013, SAYS ZORIGT
Minister of Minerals and Energy D.Zorigt has said there is no provision in the Oyu Tolgoi agreement
that gives a specific year by which Mongolia will recoup its investment in the project though he
would expect this to happen within 7-8 years. He regretted that certain sections chose to ignore the
reality and failed to appreciate how well work on the project was progressing, and instead
12. continued to criticize the agreement on imaginary grounds. He also told media that processing of
raw minerals in the country will certainly begin by 2013.
Source: Udriin Sonin
GOVERNMENT REVIEWS PREPARATIONS FOR ESTABLISHMENT OF INDUSTRIAL COMPLEX
Following a review of the preparatory work so far on establishing the Sainshand industrial complex
the Government has asked Mr. Ch.Khurelbaatar, Head of the Cabinet Secretariat, to suitably amend
the related laws and resolutions so that further and faster progress is possible. He was asked to
create conditions so that national entrepreneurs got adequate opportunity to participate in this and
similar projects. The Head of the National Committee of Development and Reform, Mr.
Ch.Khashchuluun, was directed to select general and legal advisors for the project. The Sainshand
industrial complex is planned to have coking coal plants, a copper smelter, an iron and steel plant,
factories to produce construction material, and a petroleum refinery. All investment will come from
the private sector.
Sainshand in Dornogobi will come up as an environment-friendly city with all modern facilities and
will center on the industrial complex. It will require over USD10 billion in five years to implement
the project. The funds are expected to come from several sources in stages. The proposed factories
will have to be linked with the sources for their raw material as also with the likely markets, both
domestic and foreign, for their products. A skilled workforce will be needed to construct railways
and other infrastructure. The Government feels an experienced advisor will be useful to coordinate
all the technical and financial work.
Source: News.mn
PM WANTS PROFESSIONAL TEAM TO RUN DEVELOPMENT BANK
A special meeting of the Government on Tuesday took the formal decision to set up a Development
Bank and also adopted a set of directive principles that would govern its work. The Head of the
National Committee of Development and Reform, Mr. Ch.Khashchuluun, and the Head of the State
Property Committee, Mr. D.Sugar, were given the responsibility to get the bank working within the
third quarter of 2010 and to select a team of qualified and independent professionals to run it.
The bank‘s main job will be to act as the financial intermediary in business projects of strategic
importance, to provide middle- and long-term finance, to widen collaboration with international
aid and financial organizations, and to attract domestic and foreign investment in viable projects.
The bank is likely to concentrate on infrastructure and heavy industry, especially processing units.
Prime Minister S.Batbold has made it clear that the bank must be managed by an internationally
acceptable team of professionals.
Source: Ardiin Erkh
ARSHAD SAYED OF WORLD BANK TALKS OF MONGOLIA‟S “DATE WITH DESTINY”
Talking about ―Mongolia‘s Economic Growth: What‘s Next?‖ in something like a public valedictory
address before leaving the country after four years as Country Manager and Resident
Representative, Mr. Arshad M. Sayed of the World Bank told a selected audience at the Central
Bank auditorium on Thursday that the much-touted trickledown effect ―does not always work‖ and
that Mongolia‘s future would depend on its Government sticking to ―a policy of sustainable and
equitable growth based on the future rise in mining revenue‖. He warned that instead of nurturing
and encouraging ―expectations far ahead of reality‖, the Government and the people should settle
for an informed social compact that would accept ―hard decisions in uneasy times‖.
Recalling that his first public address in Ulaanbaatar, in October 2006, was entitled ―Mineral
Resources: Blessing or Curse?‖, Mr. Sayed said four years and a global crisis later he was still in no
position to give a definitive answer, and was not even sure if there was one. Every nation must
fashion its own way of optimally balancing contradictory pulls. Mongolia has to ―transform its
underground resources into tangible wealth‖, diversify its economic and revenue base, ensure that
it does not succumb to populist temptations of extravagance during commodity price booms,
maintain fiscal discipline in the awareness that busts are inevitable, lift the banking sector from its
present vulnerable position, add more value to existing assets, and avoid installing a dependency
framework.
Mr. Sayed ended his address by reading out a poem he had written while working on the text of the
talk. The poem in turn ends with the following words: ―Do not pity,/or worry,/or shed tears/ or
rush in judgment/ for I am Mongolia/ and I have a date with destiny.‖
Taking part in a lively question-and-answer session, the Bank‘s mining specialist here, Mr. Graeme
Hancock, said he found the Oyu Tolgoi agreement quite balanced and was optimistic about the
13. Government‘s policy on Tavan Tolgoi. However, too much must not be expected from an entity
that has not yet been formed.
Source: BCM NewsWire
NGO FEELS TOO MUCH IS LEFT UNSAID IN THE TAVAN TOLGOI DRAFT
Mr. N.Dorjdari, a researcher at the Open Society Forum, has complained that the Government has
not revealed its thinking or decision on several aspects of the Tavan Tolgoi agreement. It has not
specified how the sale price is to be fixed, whether the coal will be sold against orders or only on
the spot, whether it can be used as collateral, or whether the Government can do any of these
unilaterally with its share of the output. ―Many of the provisions of the agreement read very well in
principle, but their failure to be specific is disturbing,‖ he has said, adding that this does not
permit an informed public debate on the matter. He fears that the Government is so much in a
hurry to get the project moving that it is leaving things vague. It will be much better, he thinks, to
have terms that are unambiguous and will not be open to contradictory interpretations during
implementation of the project.
He also feels the Government is ―getting involved in many things beyond its competence‖. For
example, he sees no justification for the state to be mining coal, an activity that should be left
entirely to the private sector. In its haste to emphasize how it is delivering the people‘s property to
the people, the Government is ignoring the more important point that it would be even better if
the people could receive something more profitable. The people prefer direct distribution as they
have no faith in the government investing the money on their behalf and then distributing
handsome dividends. State performance has been so poor that people do not hope for anything
from it and would like to get whatever is available, instead of waiting for more profits later.
Read more…
Elaborating his organization‘s objections to the State getting involved in mining, Mr. Dorjdari said it
is rare that this is successful. ―We in Mongolia think Erdenet is a great success story, but production
costs there are the highest among all comparable units in the world. Also consider this. Wouldn‘t
there be a conflict of interest if Erdenes MGL is to wear two hats? It will oversee the operation and
at the same time be an active partner in the operation. It will be expected to make the most profit
for the state and also to ensure the utmost environmental protection and safety. I find it an
impossible dichotomy. And as a state company it will be under the Prime Minister which may make
things difficult to insist on proper professional management,‖ he has said.
He feels the Government has chosen to keep the people in the dark about the main components of
the agreement, perhaps because it does not wish to be stopped in its tracks by too many questions.
―It has given no figures, no projections. Not merely does it not ask for feedbacks, it closes all
opportunities for people to participate in the decision making,‖ he says, adding that ―our concerns
are not insubstantial, nor are the worries far-fetched‖. For example, he says, ―Nothing is quite
clear about how, or if, the different companies will coordinate their operations. How will they sell
the coal in all of which the Government will have a share? Depending on what price each company
gets in the market, the Government may find its income fluctuating.‖
Source: The Mongolian Mining Journal
CITIZENS‟ SHARES IN TAVAN TOLGOI WILL BE VALUABLE ASSETS, ASSURES PM
Prime Minister S. Batbold has reassured Mongolians that the free shares they will get in the
proposed Erdenes-Tavantolgoi Company will not be just pieces of paper, but will gain more and
more value as mining expands. He said, ―As Prime Minister, I give my word that everything to do
with the company will be open and transparent.‖
He conceded that ―our knowledge of how stock exchanges work is not very deep or detailed‖, but
said the Government would study how the rights of small stock holders are protected and their
interests safeguarded in foreign countries and apply the required regulatory system here. ―Not just
the small investors‘, but national interests have to be furthered as well, by ensuring that the
controlling interest in a company is not easily transferred,‖ he said.
He said Mongolia would like to introduce European standards in their commercial activities, ―as our
old friends in COMECON have done‖. This would convince the world of the safety of investing in
Mongolia.
Source: Onoodor
RUSSIAN MINISTER TELLS MONGOLIA OF CONSORTIUM‟S INTEREST IN TAVAN TOLGOI
Russian Transport Minister Igor Levitin has reiterated that the Russian companies En+Group and
Renova Group are interested in developing the Tavan Tolgoi deposit, together with Russian Railways
14. (RZhD). "We have passed on the information from the consortium to the working group of the
Mongolian government on the integrated development of the deposit," Mr. Levitin said in a
statement in Ulaanbaatar on Wednesday.
In 2009, the Mongolian Government transferred 50 percent of Ulaanbaatar Railway (UBR) shares to
RZhD for a five-year trust management. (This claim is based on information that has not been
reported widely, if at all, in the Mongolian media.) UBR's priority project is the construction of a
1,100-km railway link between Tavan Tolgoi and the Russian border. Mr. Levitin said that the
railroad would help transfer coal from Tavan Tolgoi to Russia's sea ports in the Far East, for export
to other destinations.
Source: RIA Novosti
MONITORING BOARD SENDS ADVISORY TO CENTRAL BANK ADMINISTRATION
The first meeting of the new monitoring board of the Central Bank decided to send an advisory to
the Central Bank administration, recommending new procedures to prepare the budget, to identify
and prioritize sources of income and items of expenditure as well as to ensure proper and timely
implementation of the work schedule. The decision was taken after a review of reports on
expenditure plans, risk management practices, and execution of administrative board decisions,
submitted by three members of the board.
The board suggested that the Central Bank should ask Parliament to clarify if the Law of Finances of
Budgeted Organizations applied to it. If it did, the Bank would have to reveal details of foreign
currency reserves, and many other details of its operations, excluding those that could impinge on
customers‘ prerogatives.
Source: Ardiin Erkh
BANK LOANS, BOTH OUTSTANDING AND NON-PERFORMNG, RISE Y-O-Y
The Central Bank reports that money supply (broad money or M2) at the end of June was 8.3
percent more than at the end of May 2010, and 44.5 percent more than at the end of June, 2009.
Currency issued in circulation was 3.3 percent less than at the end of May, but 25.1 percent more
than at the end of June, 2009.
The volume of loans outstanding at the end of June was 1.0 percent more than at the end of May,
and 12.6 percent more than at the end of June, 2009. Principals in arrears fell 11.6 percent from
the end of May, and 25.9 percent from the end of June, 2009. Total non-performing loans stood at
2.9 percent less than at the end of May, but 35.2 percent more than at the end of June, 2009.
Source: Montsame
BUSINESS CYCLE WON‟T BE NORMAL FOR NEXT 10 YEARS, SAYS RIO TINTO CEO
The business cycle will not be normal for the next ten years, feels Rio Tinto CEO Tom Albanese. Mr.
Albanese, who has steered the company‘s large global diversified mining business through a series
of challenging global financial meltdown circumstances since the dark days of late 2008, anticipates
an uplifted demand circumstance for Rio Tinto's products, but within a volatile environment.
He cautions that there is need to be careful about the ongoing global macro risks and the current
structural difficulties in the global economy, and foresees that Rio Tinto will have to contend with
two large forces as it goes about doing its overall long-term investment planning.
The first is the good news of a broad anticipated uplift in the demand for the company's products in
the next ten years, as a consequence of continued investment by China, South East Asia and an
upcoming India, with discussion intensifying about when Africa will become part of the demand
equation. But the second is the bad news of the anticipated demand uplift taking place within an
environment of structural dislocation.
He forecasts a more volatile environment within the uplifted demand circumstance. "That will mean
that we'll see very, very nice highs, but pretty scary lows, and it will not be a normal business
cycle, at least for the next ten years," he says, adding that Rio Tinto is thus readying itself for
higher levels of volatility. "I've said this to each of our managers, ‗Be ready'."
Read more…
That readiness entails continuing to focus on large long-life low-cost ore bodies, as well as
reinforcing the importance of a strong balance sheet and a single A credit rating. Rio Tinto
currently has a triple B credit rating and an A minus credit rating, depending on the rating agency.
"It also means that each of our managers has to recognize that while markets may be strong today,
they are not necessarily guaranteed to be smooth sailing forever, and that they must not let up on
creating very competitive operations,‖ he has said.
Rio Tinto halved its debt to USD19.5 billion by the end of 2009 and by another USD4.5 billion by
15. April this year. It is now one notch away from attaining a single A credit rating. While it needs to
reduce debt further, it is clearly also mindful of the need to begin bringing good projects forward,
and has been approving new projects that will need capital injection in the coming years.
A series of investment elections have been concluded with Ivanhoe, its investment partner at the
rich Oyu Tolgoi copper/gold project in Mongolia.
Source: www.miningweekly.com
INDUSTRIAL AND SERVICE COOPERATIVES‟ ASSOCIATION TURNS 20
It is now 20 years since The Mongolian Association of Industrial and Service Cooperatives (MAoISC)
was established, a landmark event in the country‘s transition from a controlled economy to one
where private enterprises would dominate. The association has around 300 primary cooperatives as
members, representing altogether 16,500 enterprises spread over all provinces. The changing
demands of the cooperatives as the free market economy developed led to two amendments to the
law on cooperative, passed in 1995, the first in 1998 and then again in 2002, and consultations have
been held since 2007 on another amendment. Among the provinces that are most vocal in
demanding the fresh amendments are Khuvsgul, Bulgan, Erdenet, Dornod, Sukhbaatar, Dornogovi,
Govisumber, Khentii, and Uvs.
The association works in close cooperation with the Mongolian Employers‘ Federation, and its
representative is included in the tripartite National committee for Social and Labor Consensus
Building. It also regularly names enterprises, in Ulaanbaatar and in the provinces, as the top
national cooperatives, to generate healthy rivalry and competitiveness among its members,
The German development organization, GTZ, has organized training courses for members of the
MAoISC, and a UN agency has partnered it in conducting a national forum on microcredit. Several
other consultative meetings have been held with other international organizations.
MAoISC runs cooperative support centers in Bayankhongor, Bayan-Ulgii, Zavkhan, and Dornogovi
provinces. One of its main achievements in improving the management of cooperatives has been in
capacity building, with 40 cooperative auditors and 13 national consultants working nationwide at
present.
Source: Onoodor
MONGOLIA WANTS TO BOOST TIES WITH CHINA‟S XINJIANG REGION
Prime Minister S.Batbold has told a visiting Chinese delegation from the Xinjiang Regional People's
Congress that Mongolia wants to develop stronger ties with the Xinjiang Uighur Autonomous Region.
Enhancing cooperation at the border areas of the two countries plays an important role in widening
bilateral trade and economic cooperation, and Mongolia has been paying attention to this, the
Prime Minister said.
Mongolia and China have 13 ports at the border, four located in Xinjiang. Mr. Batbold said that
Mongolia aims to resolve the questions concerning infrastructure, industry and services at the ports,
and to boost ties with Xinjiang in developing agriculture, animal husbandry, ancillary sectors and
working industries.
Source: Xinhua
IMPORT BOTTLENECK CONTRIBUTES TO PRICE RISE
Initially blamed on the distribution of the ―motherland grace‖ allowance, prices have continued to
increase months after that large sum of money was injected into the market, baffling economists.
Finance Minister S.Bayartsogt feels the present decision to distribute smaller amounts on a monthly
basis will keep inflation in check. He is confident there will be more positive news on the economic
front. The economy is expected to grow 8%. The common man, having to pay MNT500 more for 1 kg
of rice, MNT3,000 more for 1 kg of lamb, and MNT5,000 more for 1 kg of beef, compared to June,
2009, can only hope his confidence is not misplaced.
It is not just economic policies that are at fault. Prices go up when demand exceeds supply. The
head of the Financial Market Association, Mr. U.Ganzorig, has been repeatedly complaining that
prolonged shortage of railway capacity has been responsible for less goods being imported from
China, even though traders on both sides were ready to sell and buy. Unemployment nationwide is
estimated to have surpassed 230,000, but official figures keep it at 38,000.
Source: Zuunii Medee
MONGOLIAN STOCK EXCHANGE OFFERS RAY OF HOPE
Sentiment on the major stock exchanges around the world may be gloomy but there is always a ray
of hope at the exotic market places of the so-called frontier markets, which have performed
16. surprisingly well in times of economic difficulties and uber-cautiousness in the rest of the financial
world.
The Mongolian Stock Exchange is housed in a building that was formerly a children‘s cinema.
Despite such an unassuming headquarters, the MSE rose 85 per cent during the first half of the year,
mostly due to rising prices of commodity stocks. However, stock trading in Ulaanbaatar is still
restricted, especially for foreign investors. Turnover is low, and there are no stock certificates or
funds listed.
The exchange, founded in 1991 to implement "the centre of the reform program" which was set to
privatize the state owned enterprises, is one of the smallest in the world. It has a market
capitalization of less than USD600 million. Currently, the exchange has launched a cooperation
treaty with the Singapore bourse "to collaborate for the benefit of the financial services industries
in Singapore and Mongolia".
Source: GulfNews.com
NEA CHIEF DEFENDS STATE POLICY IN URANIUM SECTOR
Prof. S.Enkhbat, Chairman of Nuclear Energy Agency, has said Mongolia has to take big strides in
the field of nuclear science studies, and their application to industry. ―It is not enough to have just
academics. We must also have a sizable number of our own professionals,‖ he says. Unfortunately,
at the moment there are almost no proper research facilities in the country as no investment was
made in this sector in the last 20 years.
Asked how Mongolia plans to balance the specific interests of the several different countries that
are interested in its uranium sector, Mr. Enkhbat said the Government‘s policy has been clear right
from the start. ―Rather than working with any one country, we have opted for many partners,‖ and
investment from Saudi Arabia and Kuwait is expected soon. ―The Mongolian Government will not
have any shares in all these investment to control the interests of any of these countries; rather,
the job of our Government is to define policy parameters, systemize regulatory principles, and
provide fair and untroubled working conditions for them.‖
Referring to the issue of the cancellation of Khan Resources licenses, Mr. Enkhbat said the company
has spread a lot of untrue information, which it should not have done as a respectable company.
After CNNC of China withdrew its offer, there is nobody else to buy Khan Resources share and it is
in a very difficult situation. However, ―this difficult situation was not caused by Mongolia, but by
the company itself. It did not comply with the law, ignored a number of reminders to rectify its
mistakes and, instead, chose to spread untrue information, showing disrespect for the Government
and the law. We wrote to the Toronto Stock Exchange to take measures against Khan Resources and
to inform the shareholders of the company about its wrongdoings.‖
Source: The Mongolian Mining Journal
UPDATES ON TVET READY
The Mongolian technical vocational education training system (TVET), organized during the socialist
era, broke down with the transition and does not meet the present needs of the market in terms of
skill, quality and relevance. Some time ago, a number of reform initiatives were identified with
the assistance of GTZ and other external partners. The TVET law was passed in early 2009, to help
create the enabling environment for reforms in the sector. The National Council on TVET and the
TVET Agency were established. While the institutional framework is now in place and the first steps
towards reforms have been taken, these have to be complemented with a longer-term and
comprehensive overhaul of the system as a whole. Only this will produce graduates with
internationally recognized trades‘ qualifications.
Two papers prepared in his capacity as Chairman of BCM's Education Working Group by Dr. Saha
Meyanathan of Development Advisory Services -- TVET Issues in Mongolia: An Update, and Financing
the TVET System in Mongolia: An Update –- are available on the BCM website, Education Working
Group section. Both have been supported by GTZ. They are to be used by BCM for dissemination and
further discussions.
Source: BCM
3-DAY MONGOLIA INVESTMENT SUMMIT IN HONG KONG IN OCTOBER
Mines and Money Hong Kong will be hosting the Mongolia Investment Summit 2010, in association
with the Foreign Investment and Foreign Trade Agency (FIFTA) of Mongolia on 14-16 October in
Hong Kong. The meeting will showcase a range of Mongolia-based opportunities in the natural
resources sector and beyond. With participants drawn from highest levels of the Mongolian
government, the conference also offers investors the chance to meet key decision-makers within
17. Mongolia and to receive first hand insights into the key market drivers, risks and influencers that
are shaping the Mongolian market.
The speakers include:
Mr. D. Zorigt, Minister of Mineral Resources and Energy
Mr. D.Tsogtbaatar, State Secretary at the Ministry of Foreign Affairs and Trade
Mr. Ts. Bayarsaikhan, MP and Head of the Standing Committee on the Economy
Mr. D. Sugar, Chairman, State Property Committee
Mr. D. Batkhuyag, Chairman, Mineral Resources Authority
Dr. Ch. Khashchuluun, Chairman, National Development and Innovation Committee
Mr. B. Ganzorig, Chairman, FIFTA
Mr. O. Orkhon, First Deputy CEO, Trade and Development Bank
Mr. Jim Dwyer, Executive Director, Business Council of Mongolia
Mr. Masa Igata, CEO, Frontier Securities
Mr. Parmeshwar Ramlogan, IMF Resident Representative, Mongolia, and
Mr. Alexander Molyneux, President and CEO, SouthGobi Energy Resources.
Source: www.minesandmoney.com
CHINA PASSES U.S. AS WORLD‟S BIGGEST ENERGY CONSUMER
Powered by years of rapid economic growth, China is now the world's biggest energy consumer,
knocking the U.S. off a perch it held for more than a century, according to new data from the
International Energy Agency. The Paris-based agency, whose forecasts are generally regarded as
bellwether indicators for the energy industry, said China devoured a total of 2,252 million tons of
oil equivalent last year, or about 4% more than the U.S. The oil-equivalent metric represents all
forms of energy consumed, including crude oil, nuclear, coal, natural gas and renewable sources
such as hydropower.
To be sure, the global recession hit the U.S. more severely than China and hurt American industrial
activity and energy use. Nonetheless, China's total energy consumption has clocked annual double-
digit growth rates for many years, driven by the country's big industrial base. Highlighting how
quickly its energy demand has increased, China's total energy consumption was just half the size of
the U.S. 10 years ago.
"The fact that China overtook the U.S. as the world's largest energy consumer symbolizes the start
of a new age in the history of energy," IEA chief economist Faith Berol said in an interview. The U.S.
had been the biggest overall energy consumer since the early 1900s, he said. The IEA is an energy
adviser to most of the world's biggest economies.
China's voracious energy demand helps explain why the country—which gets most of its electricity
from coal, the dirtiest of fossil fuel resources—passed the U.S. in 2007 as the world's largest emitter
of carbon dioxide emissions and other greenhouse gases.
The U.S. is still by far the biggest energy consumer per capita, with the average American burning
five times as much energy annually compared with the average Chinese citizen, said Mr. Berol, who
has been in his current role for six years.
Read more…
The U.S. is still the biggest oil consumer by a wide margin, going through on average roughly 19
million barrels a day—with China at a distant second at about 9.2 million barrels a day. But many oil
analysts believe U.S. crude demand has peaked or is unlikely to grow very much in coming years
because of improved energy efficiency and more stringent vehicle fuel-efficiency regulations.
The decreased energy "intensity" of the U.S. economy is a key reason investors, such as General
Electric Co., have increasingly looked to China as a driver of future growth. Mr. Birol said China
requires total energy investments of some $4 trillion over the next 20 years to keep feeding its
economy and avoid power blackouts and fuel shortages.
Source: The Wall Street Journal Asia
CHINA DENIES IEA CLAIM ON ENERGY CONSUMPTION
China on Tuesday dismissed claims that it was the world‘s largest energy consumer, calling the
latest estimates from the International Energy Agency ―not very credible‖. China‘s quick reaction
underlines the sensitivities that surround China‘s thirst for energy, particularly as the government
struggles to meet ambitious efficiency targets by the year‘s end.
Mr. Zhou Xian, head of the general office of the National Energy Administration, dismissed the
numbers. ―When the IEA came to China to publish its energy outlook a couple of days ago, they also
overestimated China‘s energy consumption and carbon dioxide emissions,‖ he said. ―We think that
18. is because of a lack of knowledge about China, especially about China‘s latest developments of
energy conservation and renewable energy.‖
The IEA‘s estimates of energy use and demand can change between the preliminary forecasts and
the final data – sometimes by a big margin. The IEA‘s underestimation of energy demand in 2004
contributed to a global jump in oil prices. China‘s own numbers for its 2009 energy consumption are
lower than the IEA‘s. But even those figures suggest that China and the US are neck and neck for
the top consumption spot.
One of the main differences between the IEA numbers and those of China is that the IEA includes
China‘s consumption of traditional biomass. Mr. Fatih Birol, the IEA‘s chief economist, said on
Tuesday, ―A Chinese person consumes only one-third of the amount of energy of someone living in
the western world.‖ But he added that ―in terms of energy usage, these do not change the fact that
China has become the largest energy consumer in the world‖.
Source: The Financial Times
CHINA‟S DUBIOUS ENERGY ACCOLADE
News that China consumed more energy than the U.S. last year will be taken by many as another
sign that a new epoch is upon us. Indeed, that's how the International Energy Agency, source of the
data, described its findings Monday. But the headline numbers only tell half the story. The
underlying data say a lot about the challenges facing both economies.
China consumed half as much energy as the U.S. in 2000. Last year, it burned through slightly more.
Yet the energy mix for each country couldn't be more different. Coal accounts for 22% of U.S.
energy consumption, but a full two-thirds of China's, up from 57% in 2000.
That says much about the nature of China's economic expansion, which has become over reliant on
fixed-asset investment in, for example, export-oriented factories. The Chinese services sector's
relative smallness shows up in the economy's energy intensity which is, dollar for dollar of gross
domestic product, still three times that of the U.S. Little wonder Beijing has been reluctant to
embrace efforts to curb carbon-dioxide emissions.
The U.S. energy mix is more balanced, although oil remains pre-eminent at 37% of consumption.
Like China, the U.S. must find ways of being more energy efficient. In the U.S., each person used
energy equivalent to 7.1 tons of oil last year. That is down from eight in 2000, but still much higher
than China's 1.7 tons per person.
Unlike China, America's task doesn't involve altering the entire structure of the economy but
instead changing consumption habits, such as driving more efficient vehicles. That is tough enough.
For China, despite its new leadership position, balancing its energy requirements looks even harder.
Source: The Wall Street Journal Asia
CHINESE ECONOMY STARTS TO COOL DOWN
The Chinese economy grew at 10.3 percent in the second quarter over the year before, down from
the previous three months as government efforts to cool the housing market and infrastructure
investment began to bite. The comparable first quarter figure was 11.9 percent, when many
economists feared China was close to overheating. For the first half of the year, the economy
expanded by 11.1 percent. Although the slowdown was expected, other figures suggested the
economy could be cooling more quickly than forecast, including a drop in the expansion of
industrial production to 13.7 percent in June, year on year, from the 16.5 percent increase in May.
The government said it was relaxed about the reduced pace of economic activity. ―The slowing will
help our economy avoid overheating and assist in the transformation of our economic model,‖ said
Mr. Sheng Laiyun, spokesman for the National Bureau of Statistics. However, the weakness has
unnerved investors at a time when many hoped China could help sustain a global economy that
shows signs of faltering in the US and Europe. It could also put Beijing under domestic pressure to
unwind some of its recent tightening measures, especially in housing.
China publishes growth figures on a year-on-year basis but does not release a sequential,
seasonally-adjusted growth figure which would give a more accurate impression of the direction of
economic activity. Private sector estimates vary considerably, with Goldman Sachs putting the
implied quarter-on-quarter growth rate at 8 per cent on an annualized basis, while Standard
Chartered estimated 10 per cent.
The weakening in activity appears to have blunted the recent surge in inflation, with the consumer
price index falling from 3.1 percent in May to 2.9 percent in June and factory-gate inflation down
from 7.1 percent to 6.4 percent. At the same time, exports and consumption have remained robust,
with the government announcing that retail sales grew 18.3 percent in June over the same month
last year, following a 44 percent increase in exports in June, year-on-year. Fixed asset investment
19. increased 25.5 percent in the first half of the year, which economists said implied an increase of
24.7 percent in June, year on year, slightly down from 25.4 percent in May.
Source: The Financial Times
MANAGING CHINA‟S ECONOMIC TRAJECTORY IS GETTING TRICKIER
In the corn-growing hamlet of Dashmien in northern China, signs are emerging that the nation's
supercharged economic growth may be reaching its limit. A bottomless pool of inexpensive migrant
labor has long been one of China's greatest resources, fueling its manufacturing boom. But all the
able-bodied workers have left this village already, leaving mostly the elderly. "All the young men
have gone out to work," says Wang Shuzhen, 58 years old, whose two sons left town, one to work in
construction, the other as a driver.
With the Chinese economy continuing to grow at record rates, World Bank Chief Economist Justin
Yifu Lin tells how it got there and how it can avoid the calamities that have tripped up other fast-
growing nations.
Fewer migrant workers are heading to China's manufacturing zones along the coasts because
villages like Dashimen are tapped out, putting pressure on wages and sparking worries about labor
shortages. Job centers in the Pearl River Delta, the manufacturing heartland of southern China, had
9% more vacancies than applicants in the first quarter, according to a survey by China's labor
ministry.
The Chinese economic juggernaut is still outrunning these trends. Some big engines of long-term
growth look unlikely to sputter: consumer spending by China's newly affluent, and the migration of
hundreds of millions of people to the nation's cities. Chinese industries from sheet glass to
automobiles to electronics are emerging as potentially deadly rivals to American, Japanese and
European champions.
But managing China's economic trajectory is getting trickier, Chinese officials and economists say.
"The growth rates of the past can't be sustained forever," says Li Shantong, an economist at the
Development Research Center, a government think tank in Beijing. China needs to adapt to a future
where exports and infrastructure are less important, and more growth comes from technology and
innovation, she says. "It may not be as fast as in the past. But we can't continue with the same
resource-intensive pattern."
Read more…
Higher wages at home and low-wage competition from other countries will make it harder for
China, already the world's largest exporter, to maintain rapid export growth. Real-estate bubbles
have developed in places like the tropical island province of Hainan, prompting the government to
take steps to try to cool those markets so they don't threaten the financial system.
The favorable demographics that have supplied manpower for economic growth are changing.
China's working-age population, age 15 to 64, has grown continuously. But partly because most
families are limited to one child, growth of this working population is slowing, according to the
United Nations. The labor pool is expected to peak around 2015, and then decline, according to
U.N. projections. In China, manual laborers tend to stop working before age 65, due both to the
demands of the work and to employers' preference for younger workers.
China‘s favored tool for supporting growth—vast, bank-financed investments in infrastructure—may
not work as well in the future, as it becomes harder to find worthwhile projects. China's great
economic challenge is likely to be ensuring that a transition to slower growth is gradual and
manageable, rather than sharp and disruptive. Growth here has stemmed in part from China's drive
to catch up with wealthy nations on technology, infrastructure and education. Japan, South Korea,
Taiwan and Singapore went through similar periods, and the rapid growth there eventually slowed.
"No country grows at 8% to 10% indefinitely," says Dwight Perkins, a Harvard University economist
who correctly forecast the Chinese economic boom ignited three decades ago by market reforms.
"In all countries, that growth rate comes to an end." China's economic growth has averaged more
than 9% a year since 1978. Mr. Perkins figures the high-growth phase has, at most, a decade left to
run.
Diminishing growth in China would have profound consequences for the global economy. Resource-
rich countries in Latin America and Africa depend on expanding Chinese markets. Mature economies
such as the U.S. and Europe look to China as an export market and a new place to invest.
Inside China, sustained high growth has made it easier for the government to put off dealing with a
host of problems, from bad loans created by state-controlled banks to sharp social divisions
between rural and urban residents. The country's grand political bargain has been simple:
Communist Party rule in exchange for increased prosperity and higher living standards.
Government officials are giving voice to the need to plan for a different kind of economic future.
20. "The international financial crisis has caused a major change in the external conditions for China's
development," Vice Premier Li Keqiang said earlier this year. The government needs to accelerate
overhauls to the structure of the economy, he said, in order to lay a foundation for "stable and
rapid economic growth over the long term."
The most anticipated problem is an end to some 35 years of steady growth of the working-age
population, which fueled the expansion when China liberalized its economy. The demographic
changes added about 1.8 percentage points of economic growth annually since the late 1970s,
according to the Center for Strategic and International Studies, a Washington think tank. But by
2030, the CSIS predicts, the contraction in the working-age population will reduce growth by 0.7
percentage points a year.
In places like Dashimen, in the hills in northern Hebei province, everyone who can physically labor
is already working in jobs in the cities. Yin Zhen, the 61-year-old husband of Ms. Wang, says he was
a migrant worker himself until employers started passing him over for younger men about five years
ago.
With growth of the labor force slowing, migrant workers are in a stronger position to bargain with
employers. A central-bank survey this year showed average wages for migrant workers, who
traditionally fill the least-skilled slots and have little economic power, rose 17.8% from a year
earlier.
Those gains will improve the lives of the poorest urban workers. They also will make it tougher for
Chinese exporters of low-end merchandise like apparel and toys to continue to compete mainly on
price. Exporters will have to keep boosting productivity to make up for higher wages, and start
making higher-end products that are less price-sensitive.
That puts trade, one of China's great growth drivers, under pressure. China's exports have grown by
an average of 21% a year over the past decade. With markets in Europe and the U.S likely to grow
slowly over the next few years, China will be hard-pressed to sustain that pace.
Qi Lihong, import-and-export department manager of Tonglu Spring River Knitting Group, a garment
maker in Hangzhou, says higher wages and government-mandated benefits have pushed her labor
costs up about 10% this year. To attract workers in the tightening labor market, the company is
building nicer dormitories.
The higher costs complicate Spring River's effort to rebound from the global economic slump.
Annual revenues dropped to $28 million last year, from a peak of $40 million in 2006. For labor-
intensive products like textiles and clothing, there are now cheaper places to manufacture than
China. Average wages in Vietnam and Pakistan are just one-third of China's. "We can see that more
orders are flowing to the low-cost countries," Ms. Qi says.
On the beaches of Hainan, off China's southern coast, another threat to China's continued growth
has risen. The office buildings in downtown Haikou, the provincial capital—evidence of a real-estate
boom and bust in the early 1990s—now are dwarfed by new luxury apartment buildings and resorts.
Apartments at the Serenity Coast development in the resort town of Sanya start at around $1
million. "Chinese people are getting rich and learning how to consume," says Xu Nengli, director at
Kinderly Real Estate, the project's sales agent.
Serenity Coast's sales averaged more than $400 million a month in 2009, and more buildings are still
going up. "Everyone thinks this business is easy to do and wants to jump in the market," Mr. Xu says.
New investment in Hainan real estate has more than doubled this year, according to official figures,
and prices are up an average of 50%.
Concerns are mounting about a real-estate bubble in Hainan and many other places where the rush
to profit from real estate has pushed up prices. Attempting to head off a crisis, Beijing is requiring
banks to tighten mortgage-lending standards. Many cities have restricted purchases by
nonresidents.
Partly as a result, sales have cooled somewhat, especially in the hottest real-estate markets. But if
Beijing applies too many restraints, it could hurt construction, a major source of jobs.
So far, the government has been successful in shielding China from the worst of the global financial
crisis, thanks in part to a surge in construction projects such as roads, bridges and airports.
Even before the stimulus, investment accounted for 44% of China's economy, a higher level than
Japan or South Korea ever reached in their modernization drives. The returns on those investments
matter enormously for how China grows.
The latest round of public works, however, might not boost the economy as much as core first-wave
infrastructure projects, such as the national highway system, did in earlier years.
In Qingdao, a thriving port city in Shandong province, the construction boom is in full swing. The
city is squeezed onto the eastern edge of Jiaozhou Bay, with the only room for expansion to the
north and west. A highway curves around the bay, but it is often choked with traffic. In response,
21. the local government has begun building a 17-mile bridge across the bay. The cost: $1.4 billion,
mostly covered by bank loans. "Economic development drives traffic, and traffic drives economic
development," says Shao Xinpeng, chief engineer of Shandong Hi-Speed Qingdao Expressway Co.,
the state company building the bridge.
But the bridge will face competition from a much-shorter tunnel also linking downtown Qingdao to
the bay's west side. Min Zhengliang, an economist at Qingdao University, is skeptical. "To spend so
much money to save only 20 minutes of driving time is just not worth it," he says.
China's banking system, which is mainly state-controlled, has financed many such projects. Banks
made loans last year worth one-third of economic output, and this year they are on track to hit 20%
of GDP—a total of roughly $2.5 trillion in new credit over two years. (At the peak of the U.S. credit
boom, new borrowing through banks and credit markets amounted to 18% of GDP, though China is
growing much faster.) That credit load could limit China's ability to drive future growth through
such spending.
Yet China has flourished the past 30 years by constantly reinventing its economy, abandoning failed
experiments and pursuing successful ones. Xiao Geng, the Beijing-based director of the Columbia
Global Center in East Asia, ticks off a number of must-do policy fixes: improve the social safety net,
ease price controls on energy and capital, and alter the dominant role of state enterprises.
"It really requires very dramatic, deep and consistent reforms to have sustainable growth in the
future," he says. "I'm worried about it, but still quite confident they will manage to do it.
Source: The Wall Street Journal Asia
SEOUL CALLS ON IMF TO TACKLE VOLATILITY
The International Monetary Fund should come up with a detailed and realistic plan for tackling the
volatility that can arise from rapid international capital flows, thereby ensuring global financial
stability, South Korea's Finance Minister has said. "I believe the IMF has an important contribution to
make, by proposing and enacting concrete and realistic measures to strengthen financial safety nets
around the globe," measures that the Group of 20 leading nations are aiming to finalize at their
summit in Seoul in November, Minister of Strategy and Finance Yoon Jeung-hyun said in a prepared
welcoming speech for a three-day IMF-South Korea Asia 21 Conference.
The conference, co-hosted by South Korea and the IMF, is designed to repair the latter's image in a
country where the assistance it gave during the Asian financial crisis remains controversial at best.
Mr. Yoon called for a change in the Washington-based body to reflect the growing voice of the
increasingly important Asian economy by speeding up its efforts to overhaul quotas.
IMF Managing Director Dominique Strauss-Kahn said Monday that Asian policy makers need to be
prepared for further possible shocks given downside risks to the global economy including the
recent turmoil in Europe. With Europe and U.S. expected to witness a potentially extended period
of lower growth rates, Asia needs to increase its domestic investment and consumption as a long-
term policy issue, he said.
"As Asia's economic weight in the world continues to rise, its stake in the economic performance of
other countries is rising, too," Mr. Strauss-Kahn said. "In my view, the macroeconomic, financial and
corporate sector reforms put in place over the last decade have played an important role in the
region's resilience. So, despite being hit hard initially, Asia was able to bounce back quickly from
the global financial crisis."
Source: The Wall Street Journal Asia
POLITICS
PARLIAMENT EXTENDS SESSION TO FINISH WORK
Pressure of unfinished business led to the Spring session of Parliament being extended for six days.
Its final meeting was held on July 16. The Autumn session will begin after a two-month recess.
Before announcing the break, Speaker D.Demberel noted that 67 percent of items on the agenda
had been disposed of. Some 130 draft laws and protocols had been discussed and approved. The
most important among these were the national livestock program, the policy on the railways, and
proposal for the exploitation of the Tavan Tolgoi coal deposit. Parliament also approved the
Government proposal for a budget revision to increase salaries of government employees and
pensions by 30 percent from October 1. A fiscal stability law was also approved. Not all MPs were,
however, happy with the haste with which Standing Committees approved draft laws in the last
days. Some drafts were discussed for less than five minutes.
The heads of the two party groups in Parliament – Mr. D.Lundeejantsan of the MPRP, and Mr.
Ch.Saikhanbileg of the DP – held a joint press conference, for the first time in Parliament‘s 20-year
22. history, to review the session. Mr. Saikhanbileg said the effect of many decisions made during the
session will become apparent as time goes by. Mr. Lundeejantsan said there had been major
differences between the two groups on several issues, making consensus difficult.
Source: News.mn
MPs POSTPONE DECISION ON REMOVING ANTI-CORRUPTION BOSSES
Even after sitting for six days beyond its scheduled break, Parliament could not take a decision on
whether to remove from their job Mr. Ch.Sangarragchaa, head of the Anti-Corruption Authority, and
his deputy, Mr. D.Sunduisuren, as demanded by State Prosecutor General D.Dorligjav. By law, a
decision should have been taken within two weeks of the request, but MPs could not agree on their
course of action in the three weeks between the request and the end of the Spring session. Mr.
Dorligjav wrote a second letter to Speaker D.Demberel about the urgency of the issue, expressing
unhappiness that Mr. B.Bat-Erdene (MPRP), head of the Standing Committee on Justice, ―had erred
in interpreting the law in a way that allowed him not to take a decision within the stipulated time
on the ground that Parliament would be going into recess soon‖.
The Standing Committee met several times to discuss the issue, but did not announce a decision.
Since all the meetings were held in camera, no details have emerged on what the MPs said, but Mr.
Bat-Erdene told media that a Special Control Sub-committee had been set up to evaluate some of
the charges the Prosecutor General had brought and would need time to submit a report. Also, he
said, the case was being investigated by a joint working group established by the Investigation
Department of State Prosecuting Authority and the General Intelligence Authority. ―So we decided
to wait for their reports,‖ he said.
Mr. D.Lundeejantsan, head of the MPRP group of MPs, later said the group does not intend to take
sides and wants the law to take its own course. Mr. Ch.Saikhanbileg, leader of the DP group, felt
the Standing Committee should have settled the issue within the 14 days given by law. ―I do not
know what happens now. Will the director of the Anti-Corruption Authority, D.Sangaragchaa, retain
any authority if he is allowed to continue in his job? Does he command the respect of those working
with him? The Anti-Corruption Authority is not just an agency. It has a special moral standing,‖ he
said.
Read more…
After Parliament had gone into recess, the Head of the Standing Committee on Justice, Mr.Bat-
Erdene wrote to the Prosecutor General asserting that the Committee had not willfully delayed
taking a decision on the issue. The letter says the Committee ―heard the director and the deputy
director separately, to get maximum information to help settle the case without politicizing the
case‖. A review of documents and testimony from related officials led to the Committee deciding
―the issue was not clear‖. Members of the Committee ―also felt that dismissing officials appointed
by Parliament without detailed scrutiny of all available material will adversely affect the morale of
those working against corruption‖. Article 22.5 of the anti-corruption law ―is clear that anti-
corruption officials must not be dismissed for reasons not indicated in law‖.
The Standing Committee also wanted that Parliament‘s Monitoring Special Sub-committee must
resume its own investigation into the matter without any hindrance from the anti-corruption
organization.
Source: English.News.mn
U.S. DEPUTY SECRETARY OF STATE PAYS A DAY‟S VISIT
At a meeting with visiting U.S. Deputy Secretary of State of James B. Steinberg on Monday, Prime
Minister S. Batbold said Mongolia-U.S. relations are getting stronger and the two countries have
made progress in social, political and economic sectors. He appreciated the ―staunch support‖ the
USA has consistently given to Mongolia in its transition to a market economy and to social as well as
political democracy. Assistance programs managed by the U.S. Millennium Challenge Corporation
are being implemented successfully in the country.
Mongolia would continue to protect international and regional security and has dispatched
peacekeepers to several global hot spots in partnership with the U.S. and many other countries, the
Prime Minister said.
Mr. Steinberg said the U.S. values its relationship with Mongolia and will expand cooperation with
the country by training Mongolian students and specialists in America.
Mr. Steinberg arrived in Mongolia after visiting Kazakhstan, Uzbekistan and Kyrgyzstan, and flew on
to Japan on Tuesday to participate in a trilateral dialogue involving Japan, Australia and the United
States. During his one-day stop here, he also held talks with Foreign Minister G.Zandanshatar and
visited a totally U.S.-equipped mobile field hospital that will be deployed at the UN military base in