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 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 and economic news from Mongolia. Some of the key stories covered include:
- Oyu Tolgoi exported 140,000 tons of copper concentrate in the first half of 2014.
- Moody's downgraded the credit ratings of three Mongolian banks, Khan Bank, XacBank, and Trade and Development Bank, following Mongolia's sovereign downgrade.
- Trade and Development Bank pulled a planned US dollar bond offering due to financial market turmoil in Europe.
- BDSec JSC received approval to issue 6 million new shares in a rights offering to raise about $2.5 million.
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. It discusses several stories on business and economic news in Mongolia, including:
1) Peabody Energy expressing interest in acquiring a stake in Mongolia's Tavan Tolgoi coal deposit to expand its operations in China.
2) Erdenes-TT again delaying its planned IPO in Hong Kong, London, and Mongolia due to weak coal demand and prices.
3) Oyu Tolgoi grappling with water scarcity in the Gobi desert for its mine operations while facing skepticism about its water usage from local herders and NGOs.
The document 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 in its Issue 336 dated August 1, 2014. Some of the key highlights include:
- Turquoise Hill announces the sale of a 29.95% stake in SouthGobi Resources to a Hong Kong company.
- Erdenes TT partners with Korean and Mongolian companies to develop a coal-to-methane gas facility at Tavan Tolgoi.
- Xanadu Mines expands drilling at its Altan Tolgoi copper-gold project, intersecting additional mineralization.
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
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.
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 and economic news from Mongolia. Some of the key stories covered include:
- Oyu Tolgoi exported 140,000 tons of copper concentrate in the first half of 2014.
- Moody's downgraded the credit ratings of three Mongolian banks, Khan Bank, XacBank, and Trade and Development Bank, following Mongolia's sovereign downgrade.
- Trade and Development Bank pulled a planned US dollar bond offering due to financial market turmoil in Europe.
- BDSec JSC received approval to issue 6 million new shares in a rights offering to raise about $2.5 million.
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. It discusses several stories on business and economic news in Mongolia, including:
1) Peabody Energy expressing interest in acquiring a stake in Mongolia's Tavan Tolgoi coal deposit to expand its operations in China.
2) Erdenes-TT again delaying its planned IPO in Hong Kong, London, and Mongolia due to weak coal demand and prices.
3) Oyu Tolgoi grappling with water scarcity in the Gobi desert for its mine operations while facing skepticism about its water usage from local herders and NGOs.
The document 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 in its Issue 336 dated August 1, 2014. Some of the key highlights include:
- Turquoise Hill announces the sale of a 29.95% stake in SouthGobi Resources to a Hong Kong company.
- Erdenes TT partners with Korean and Mongolian companies to develop a coal-to-methane gas facility at Tavan Tolgoi.
- Xanadu Mines expands drilling at its Altan Tolgoi copper-gold project, intersecting additional mineralization.
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
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.
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 is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia. Some of the key stories covered include Mongolia disputing that delays at the Oyu Tolgoi mine are its fault, Viking Mines signing a coal supply agreement, plans for a solar farm in the Gobi desert, and the Oxford Business Group releasing a report highlighting Mongolia's untapped economic potential. It also mentions several economic indicators and upcoming political and business events in Mongolia.
Rio Tinto and the Mongolian government are in ongoing negotiations over funding and control of the massive Oyu Tolgoi copper and gold mine project. While talks continued in March, disagreements remain over taxes, cost overruns, and management control. Failure to resolve the dispute could have serious negative consequences for Mongolia's economy and businesses that supply the mine project. Deputy Minister of Economic Development warned of a "catastrophe" if the project stops, as Oyu Tolgoi is expected to account for 30% of Mongolia's economy at full production. Mongolia's businesses are already feeling the effects of the uncertainty through slower contract awards and a general slowdown related to the mine project.
The document is a newsletter from the Business Council of Mongolia covering various business and economic news items from Mongolia in Issue 265 dated March 15, 2013. Some of the key stories covered include: Rio Tinto waiting for a decision from Australia's export credit agency on funding for the Oyu Tolgoi mine after the US raised environmental and social concerns about the project; Oyu Tolgoi being named the "Best Project" of 2012 by Bloomberg TV Mongolia; Mongolian Mining Corp. aiming to increase raw coal output to 12 million tons in 2013 after missing targets in 2012 due to weak demand; and average selling prices for Mongolian coal falling 30% in 2012 which impacted company revenues.
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.
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 summarizes business, economic, and political news from Mongolia based on a newsletter from the Business Council of Mongolia. Some key points include:
- The CEO of Oyu Tolgoi LLC, Mongolia's largest company, will step down in November after completing his three-year term.
- Mongolia has granted three local firms a one-year contract to mine part of the Tavan Tolgoi coal mine in an effort to boost coal output and payments.
- Mongolia's fifth largest bank, Savings Bank, is being taken over by a state-owned bank after its main shareholder defaulted on loans.
The document provides news highlights from the Business Council of Mongolia. It includes summaries of several stories: Erdenes-TT pushes back its IPO to 2013 due to delays in passing securities laws; Energy Resources reaches the finals for a global corporate social responsibility award; and the Mongolian vice minister of finance says a new foreign investment law is unlikely to be retroactive to halt Chalco's proposed purchase of Ivanhoe Mines. It also briefly summarizes personnel changes at Ivanhoe Mines and Voyager Resources, and reports that Entrée Gold's Heruga deposit continues expanding in size.
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.
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 business and economic news from Mongolia. It discusses ongoing negotiations between Mongolia and Rio Tinto over the Oyu Tolgoi mining project. It also mentions that Aspire Mining has identified potential savings of $200 million by selecting a new route for a proposed rail line. Additionally, it provides updates on various mining and infrastructure projects throughout Mongolia.
The document summarizes business and economic news from Mongolia. It discusses several mining companies active in Mongolia, including Ivanhoe Mines working on the Oyu Tolgoi project, which is seeking financing from EBRD and IFC. It also mentions Polo Resources selling its stake in a Mongolian joint venture and Hunnu Coal acquiring a large land position in South Gobi near the Tavan Tolgoi coal deposit. The monthly Business Council of Mongolia meeting is recapped, featuring presentations on fair competition policy, investment holding companies, and corporate governance best practices.
The document is a newsletter from the Business Council of Mongolia that provides news highlights from Mongolia in the areas of business, economy, and politics. Some of the key business stories discussed include Tavan Tolgoi expanding its coal wash plant, MMC receiving payment for transferring road assets, bank profits increasing in 2013, and Guildford Coal receiving approval to begin operations at its Baruun Noyon Uul mine. Economic highlights cover topics like the central bank maintaining interest rates, a rise in fuel prices, and the government distributing wool bonuses. Politics updates mention parliament addressing a rail gauge dispute and Mongolia expressing intent to join the Antarctic Treaty.
The document provides a summary of business and economic news from Mongolia. It discusses several 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 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.
The document is a newsletter from the Business Council of Mongolia that provides news highlights on business, economic, and political issues in Mongolia. It summarizes recent news stories on topics like bad bank debts affecting investors, mining and resource companies operating in Mongolia, economic indicators, and an recap of the BCM monthly meeting. The meeting discussed Mongolia's new investment law, opportunities in the oil and mining industries, environmental conservation programs, and the role of the new Invest Mongolia agency in attracting investment.
The document summarizes news from the Business Council of Mongolia newsletter. It highlights several business and economic stories including Turquoise Hill posting 2013 production numbers and guidance for 2014, FeOre selling its iron ore stake for $56.7 million, Merex planning an IPO of 40% of its shares on the Mongolian stock exchange, Xanadu Mines completing the acquisition of the Oyut Ulaan project, and MIAT planning an IPO with assistance from an international investment firm. It also previews the agenda for the upcoming BCM monthly meeting.
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 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.
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.
- 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.
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 is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia. Some of the key stories covered include Mongolia disputing that delays at the Oyu Tolgoi mine are its fault, Viking Mines signing a coal supply agreement, plans for a solar farm in the Gobi desert, and the Oxford Business Group releasing a report highlighting Mongolia's untapped economic potential. It also mentions several economic indicators and upcoming political and business events in Mongolia.
Rio Tinto and the Mongolian government are in ongoing negotiations over funding and control of the massive Oyu Tolgoi copper and gold mine project. While talks continued in March, disagreements remain over taxes, cost overruns, and management control. Failure to resolve the dispute could have serious negative consequences for Mongolia's economy and businesses that supply the mine project. Deputy Minister of Economic Development warned of a "catastrophe" if the project stops, as Oyu Tolgoi is expected to account for 30% of Mongolia's economy at full production. Mongolia's businesses are already feeling the effects of the uncertainty through slower contract awards and a general slowdown related to the mine project.
The document is a newsletter from the Business Council of Mongolia covering various business and economic news items from Mongolia in Issue 265 dated March 15, 2013. Some of the key stories covered include: Rio Tinto waiting for a decision from Australia's export credit agency on funding for the Oyu Tolgoi mine after the US raised environmental and social concerns about the project; Oyu Tolgoi being named the "Best Project" of 2012 by Bloomberg TV Mongolia; Mongolian Mining Corp. aiming to increase raw coal output to 12 million tons in 2013 after missing targets in 2012 due to weak demand; and average selling prices for Mongolian coal falling 30% in 2012 which impacted company revenues.
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.
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 summarizes business, economic, and political news from Mongolia based on a newsletter from the Business Council of Mongolia. Some key points include:
- The CEO of Oyu Tolgoi LLC, Mongolia's largest company, will step down in November after completing his three-year term.
- Mongolia has granted three local firms a one-year contract to mine part of the Tavan Tolgoi coal mine in an effort to boost coal output and payments.
- Mongolia's fifth largest bank, Savings Bank, is being taken over by a state-owned bank after its main shareholder defaulted on loans.
The document provides news highlights from the Business Council of Mongolia. It includes summaries of several stories: Erdenes-TT pushes back its IPO to 2013 due to delays in passing securities laws; Energy Resources reaches the finals for a global corporate social responsibility award; and the Mongolian vice minister of finance says a new foreign investment law is unlikely to be retroactive to halt Chalco's proposed purchase of Ivanhoe Mines. It also briefly summarizes personnel changes at Ivanhoe Mines and Voyager Resources, and reports that Entrée Gold's Heruga deposit continues expanding in size.
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.
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 business and economic news from Mongolia. It discusses ongoing negotiations between Mongolia and Rio Tinto over the Oyu Tolgoi mining project. It also mentions that Aspire Mining has identified potential savings of $200 million by selecting a new route for a proposed rail line. Additionally, it provides updates on various mining and infrastructure projects throughout Mongolia.
The document summarizes business and economic news from Mongolia. It discusses several mining companies active in Mongolia, including Ivanhoe Mines working on the Oyu Tolgoi project, which is seeking financing from EBRD and IFC. It also mentions Polo Resources selling its stake in a Mongolian joint venture and Hunnu Coal acquiring a large land position in South Gobi near the Tavan Tolgoi coal deposit. The monthly Business Council of Mongolia meeting is recapped, featuring presentations on fair competition policy, investment holding companies, and corporate governance best practices.
The document is a newsletter from the Business Council of Mongolia that provides news highlights from Mongolia in the areas of business, economy, and politics. Some of the key business stories discussed include Tavan Tolgoi expanding its coal wash plant, MMC receiving payment for transferring road assets, bank profits increasing in 2013, and Guildford Coal receiving approval to begin operations at its Baruun Noyon Uul mine. Economic highlights cover topics like the central bank maintaining interest rates, a rise in fuel prices, and the government distributing wool bonuses. Politics updates mention parliament addressing a rail gauge dispute and Mongolia expressing intent to join the Antarctic Treaty.
The document provides a summary of business and economic news from Mongolia. It discusses several 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 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.
The document is a newsletter from the Business Council of Mongolia that provides news highlights on business, economic, and political issues in Mongolia. It summarizes recent news stories on topics like bad bank debts affecting investors, mining and resource companies operating in Mongolia, economic indicators, and an recap of the BCM monthly meeting. The meeting discussed Mongolia's new investment law, opportunities in the oil and mining industries, environmental conservation programs, and the role of the new Invest Mongolia agency in attracting investment.
The document summarizes news from the Business Council of Mongolia newsletter. It highlights several business and economic stories including Turquoise Hill posting 2013 production numbers and guidance for 2014, FeOre selling its iron ore stake for $56.7 million, Merex planning an IPO of 40% of its shares on the Mongolian stock exchange, Xanadu Mines completing the acquisition of the Oyut Ulaan project, and MIAT planning an IPO with assistance from an international investment firm. It also previews the agenda for the upcoming BCM monthly meeting.
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 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.
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.
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.
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.
- 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 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.
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 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.
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.
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.
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.
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.
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 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.
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.
The document summarizes news from the Business Council of Mongolia newsletter dated November 27, 2009. Key points include:
- The Mongolian government took full control of the troubled Zoos Bank and renamed it the State Bank after it was found to have serious financial defects and bad loans totaling over $40 million.
- Anod Bank will be officially disbanded and the government will guarantee savings deposits and compensate shareholders.
- SouthGobi Energy completed a $500 million financing deal with China Investment Corporation to expand its coal mining operations in Mongolia.
- The Mongolian government says it has completed 5 of 10 conditions to start development at the Oyu Tolgoi copper-gold mine
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 a summary of business and economic news from Mongolia. Some of the key points include:
- Final demands from Mongolia regarding the Oyu Tolgoi investment agreement are almost ready and an agreement is possible before Naadam in July.
- Ivanhoe Mines shares jumped on reports that the Mongolian parliament may approve the Oyu Tolgoi agreement this month.
- CNNC International acquired a 69% stake in Western Prospector, a uranium exploration company.
- Entree Gold is compiling results from its spring exploration program including expanding resources at its Heruga copper-gold deposit.
The document summarizes business news from Mongolia, including several mining companies. SouthGobi Resources aims to secure a second coal mining license by year-end. Erdene Resource will apply for a molybdenum-copper mining license. Ivanhoe Mines reported increased revenue but wider losses in Q2 2010. Prophecy Resource reported the Chandgana Khavtgai project contains over 1 billion tons of coal. Canadian mining companies face challenges but also see success in Mongolia's emerging economy and significant mineral deposits, led by Ivanhoe Mine's giant Oyu Tolgoi copper-gold mine.
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 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.
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, economic, and political news from Mongolia reported in Issue 125 of the Business Council of Mongolia NewsWire dated July 2, 2010. Some of the key developments included:
- Rio Tinto raising its ownership in Ivanhoe Mines, which is developing Mongolia's Oyu Tolgoi mine, to 29.6% by exercising warrants ahead of schedule.
- SouthGobi Resources beginning construction of a coal handling facility at its Ovoot Tolgoi mine to add value by processing and blending coal.
- Petro Matad spudding its first exploration well in Mongolia, a key test for the company, after delays due to weather and disease outbreaks.
The document is a newsletter 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 provides a summary of business and economic news from Mongolia. Some of the key points include:
- SouthGobi Resources suspended plans to build a railway from its coal mine to the Chinese border due to uncertainty over Mongolia's rail policy, and will instead focus on upgrading the road.
- Ivanhoe Mines said its Oyu Tolgoi copper mine may get a new partner in addition to Rio Tinto, as most large copper mines have multiple owners.
- SouthGobi Resources reported a net loss for the first quarter of 2010 due primarily to the partial conversion of a convertible debenture from China Investment Corporation, but revenues increased compared to the first quarter of 2009.
The document is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia. It discusses several mining and coal projects in Mongolia, including Chinalco looking to buy a minority stake in the Oyu Tolgoi project, Peabody Energy completing Mongolia's first coal mine restoration project, and Entree Gold receiving a new coal mining license. It also mentions new partnerships and financing deals between various Mongolian and international banks and companies for projects in Mongolia.
The document provides a summary of business, economic, and political news from Mongolia in its Business Council of Mongolia newsletter. Some of the key highlights include:
- Mongolia is confident it can resolve disputes with Rio Tinto over the $5 billion expansion of the Oyu Tolgoi copper and gold mine by the December 31 deadline.
- Rio Tinto's Oyu Tolgoi mine has shipped copper concentrate to China but has not recorded any revenue yet due to delays in Chinese customs approval.
- Entrée Gold is considering a proposal to transfer its mining licenses for the Oyu Tolgoi project to Oyu Tolgoi LLC.
- A private equity group in Mongolia is
The document summarizes recent news from Mongolia across various sectors including business, economy, politics, and tourism. Some key highlights include:
1) Major mining projects in Mongolia like Oyu Tolgoi and Tavan Tolgoi have started development and operations, while several exploration companies are reporting promising early results.
2) Mongolia is taking steps to develop its oil refining capacity to reduce dependence on imports by starting construction on several new refineries.
3) The tourism industry in Mongolia is seeing a shift towards more luxury camping experiences offering travelers a chance to live like nomads in remote areas of the country.
4) Russia has launched a new tourist route on the Trans-
The document summarizes news from the Business Council of Mongolia newsletter dated February 19, 2010. It includes the following highlights:
- The newsletter covers business, economic, and political news in Mongolia, including updates on mining projects like Oyu Tolgoi and Tavan Tolgoi.
- SouthGobi Sands was named the "Local Job Creator of the Year" by the Mongolian National Chamber of Commerce for hiring many local residents.
- Leighton Holdings expressed confidence it will be chosen to develop the large Tavan Tolgoi coal deposit, while it already has contracts for other mines in Mongolia.
- Gobi, Mongolia's largest cashmere manufacturer, held
The document is a newsletter from the Business Council of Mongolia covering business, economic, and political news from Mongolia in May 2011. Some of the top business stories include Petro Matad finding hydrocarbons at a new well, SouthGobi Resources preparing for slowing Chinese coal demand, and Eznis Airways signing a strategic partnership with Japan's largest airline. Construction at the Oyu Tolgoi mine was 15% complete at the end of March. Several mining companies also reported financial results for the first quarter of 2011. On the economic front, coal hauling resumed and the government wanted to accelerate a new power plant project. In politics, prosecutors forwarded charges against a former official to the anti-corruption agency.
The document summarizes news from Mongolia across business, economic, and political topics. In business, a feasibility study for a coal washing plant in Mongolia was completed. Erdenes-TT expects to repay its debt to Chalco by the end of the year from coal sales. Mongolian and Japanese banks established a new leasing company called TDB Leasing. A Mongolian company acquired a 20% stake in a North Korean oil refinery to diversify Mongolia's energy sources away from Russia and China.
This document summarizes business and economic news from Mongolia reported in the Business Council of Mongolia NewsWire on April 22, 2011. Key highlights include MIAT airline beginning direct flights to Hong Kong to boost business travel between the two places. Prophecy Resource Corp expressed commitment to partnering with Mongolia for mutual growth. Rio Tinto's credit rating was upgraded to single 'A' status. Erdene Resource provided updates on its mining projects in Mongolia. Voyager Resources listed highlights of its Khongor copper-gold property.
The document summarizes news from Mongolia covering business, economic, and political topics. Key points include:
- Mongolia is seeking loans from the IMF and other countries totaling $3 billion to help plug its budget deficit amid falling commodity prices and demand.
- The number of mining licenses in Mongolia increased by 558 in the last 8 months, with exploration licenses increasing by 31.
- Over 61,000 livestock died in 8 western Mongolian provinces due to harsh winter weather conditions.
- Moody's is preparing to downgrade Mongolia's credit ratings due to concerns over its deteriorating external payments position and inability to ensure fiscal sustainability.
The document provides a summary of business and economic news from Mongolia. It includes the following highlights:
- Rio Tinto is restructuring leadership at the Oyu Tolgoi mine, with the current CEO stepping aside and a new managing director being appointed.
- The head of Mongolia's Erdenes Mongol, which holds state mining assets, plans to continue pursuing a strategy of diversifying into other industries similar to Singapore's Temasek fund.
- The Business Council of Mongolia released proceedings from its first annual summit addressing issues like maintaining stability and improving the business environment.
The document summarizes news from Mongolia across business, economic, and political topics.
1) Rio Tinto is encouraged by Mongolian government steps to update minerals laws and resume talks on the major Oyu Tolgoi copper and gold mining project.
2) A Korean investment consortium proposes a large investment to develop and transport coal from the Tavan Tolgoi deposits via railway to Russia and then by sea to meet South Korean energy needs.
3) The EBRD finalizes financing for major projects in Mongolia including loans to a petrol distributor and distribution company, and reviews its support for reducing air pollution in the capital.
After careful consideration for the preservation of the region’s environment, culture, and people, Jalsa Urubshurow opened Three Camel Lodge in 2002 as the only luxury eco-lodge in the Gobi Desert. Built by and staffed by locals, Three Camel Lodge offers travelers a way to experience the nomadic spirit of the region alongside modern comforts while protecting the natural beauty and culture.
After careful consideration for the preservation of the region’s environment, culture, and people, Jalsa Urubshurow opened the only luxury eco-lodge in the Gobi Desert, Three Camel Lodge, in 2002. Built by and staffed by locals, Three Camel Lodge offers travelers a variety of activities to learn about nomadic culture while enjoying modern comforts in a way that showcases the nomadic spirit without destroying the natural environment of the region.
The Business Council of Mongolia published its January 2020 Macroeconomic Updates report which contained the following key points:
1) Mongolia's GDP grew 6.3% in Q3 2019 while inflation was at 5.2% in December 2019. Exports reached a historic high of $7.6 billion in 2019, driven by record coal exports.
2) Foreign direct investment in Mongolia totaled $21.5 billion as of 2019, with the majority from Canada, China, Singapore, and Luxembourg invested mainly in mining.
3) The Mongolian currency, the togrog, depreciated 3.8% against the US dollar in 2019 as the central bank supplied $2.
Faro Foundation Mongolia is a non-governmental organization that promotes digital literacy and safe internet use in Mongolia. It works to educate the public on topics like online safety, proper social media use, and cyberbullying prevention. The organization's primary goal is to create positive social change through social media. It has developed a digital literacy curriculum and library on Facebook to teach essential digital skills to students, teachers, and parents.
The Business Council of Mongolia (BCM) is an independent non-profit organization established in 2007 to advocate for economic freedom and a competitive business environment in Mongolia. It has over 240 member organizations from various sectors. The BCM aims to equip its members with policy research, training, and networking opportunities. It is organized with a Board of Directors, Executive Committee, and six working groups focused on key issues. The Growth and Innovation working group works to promote digital transformation in Mongolia.
The One-Stop-Service Center (OSSC) was established in February 2019 under the Prime Minister's order to provide centralized public services to investors in Mongolia. The OSSC was created as part of Mongolia's three-pillar development policy and on the recommendation of the Investment Protection Council. It allows five government bodies, a bank, and notary office to render services to foreign investors from one location.
Mongolians are building a competitive Fintech sector with international ambitions by cultivating agile and innovative teams combining specialists and experts from 6 nationalities. To become truly internationally competitive, Mongolia must train professionals and executives to international standards by growing their next generation of innovative leaders and skilled experts. Overcoming these challenges will allow Mongolia to solve growing issues and compete in international markets.
The document discusses competitiveness rankings for Mongolia and its provinces. It analyzes Mongolia's performance in the IMD World Competitiveness Ranking, where Mongolia ranked 62nd out of 63 countries in 2018. The ranking evaluates countries across 4 factors: economic performance, government efficiency, business efficiency, and infrastructure. The document also summarizes findings from a provincial competitiveness report for Mongolia, which evaluated and ranked the competitiveness of Mongolia's 21 provinces. Finally, it outlines criteria and results from a competitiveness ranking of districts in Ulaanbaatar city across 5 factors of quality of life, living environment, safety and security, governance, and economic performance.
Digital transformation involves using digital technology in new ways to solve traditional business problems and drive organizational change. The presentation discusses how digital transformation differs from related concepts like digitization, analytics, and outsourcing. Key aspects of digital transformation include leveraging data as a strategic asset, adapting to digital natives, and undergoing cultural and technological changes. Methods like agile project management and design sprints are presented as ways to accelerate transformation. The presentation also provides examples of how companies have transformed, such as Domino's Pizza using digital strategies to regain market share.
DBS Bank was named the world's best digital bank by Euromoney in 2016 and 2018, beating competitors like Citi, BBVA, and ING. The CEO of DBS Bank, Piyush Gupta, accepted the award and said that banks of the future will be fundamentally different than today's banks due to their digital transformation. DBS Bank has spent three years focused on digital initiatives by changing employee mindsets and technology infrastructure to make banking simple and seamless for customers.
Mongolia transitioned to democracy in the early 1990s after a peaceful revolution. It now has a multi-party parliamentary democracy with freedoms of religion, expression, and private property rights guaranteed in its constitution. Mongolia's economy depends heavily on its mineral and agricultural sectors as it continues developing a market economy after transitioning from Soviet control.
The document discusses the Growth & Innovation Working Group of the Business Council Mongolia. The working group aims to:
1. Promote and advance business growth and innovation in Mongolian society through educating businesses, government, and the public on opportunities in research and development.
2. Enable all organizations to grow and innovate, not just start-ups or sectors traditionally thought of as innovative.
3. Focus on key objectives like digitalization, infrastructure, financial technology, data security, efficiency, public investment policy, and intellectual property protection to support the digital transformation of consumer and enterprise services through technologies like IoT, AI, fintech, blockchain, and more.
The working group plans events
The BCM held its January monthly meeting to discuss organizational updates. Key points:
- The BCM elected a new 15-member Board of Directors and appointed an Executive Committee and Working Groups.
- Two presentations were given on legal environments for asset management in Mongolia and on responsible mining.
- The BCM revised its mission statement to focus on providing members with policy research, training, and networking support for business in Mongolia.
- The BCM reorganized its working groups, which are now chaired by Board members, and strengthened its secretariat.
The document discusses Mongolia, Russia, and China's economic corridor program. It notes that the program aims to improve connectivity between the three countries through projects involving railway, roads, energy transmission lines, gas and oil pipelines, and high-speed internet. There are currently 32 projects across areas like infrastructure, energy, agriculture, border cooperation, trade, environment, education, medicine, and more. The document also discusses plans to establish a joint center for investment planning and projection in Ulaanbaatar to facilitate implementation of the economic corridor program projects and further trilateral cooperation.
This document provides information on business opportunities through procurement for Mongolia's Second Compact Agreement with the Millennium Challenge Corporation (MCC). It outlines that the total grant value is $350 million to fund activities supporting economic growth and poverty reduction in Mongolia. Key business opportunities include consulting services, goods, and construction works valued at approximately $44 million for the base year. The presentation also reviews MCC's procurement principles of transparency, fairness and competitiveness. It provides details on the procurement process and how opportunities will be advertised.
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1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 142, October 29 2010
NEWS HIGHLIGHTS:
Business:
Ivanhoe files counter-claims in dispute with Rio;
Appellate court rules in favor of Khan Resources;
SouthGobi takes stake in Aspire Mining;
Ivanhoe tension will not delay Oyu Tolgoi, says Rio CEO;
Moody's assigns Ba3 rating to notes and “negative” outlook to TDB's EMTN Program;
Winsway‟s sale of Mongolian coal up 141% y-o-y;
Alamar Resources acquires assets in Mongolia;
Erdenes Tavan Tolgoi IPO likely in late 2011;
Pepsi-Cola to be produced here;
Petro China caused ecological damage worth MNT1 billion, probe concludes;
PetroChina net rises 13% as oil demand climbs;
No accident at Oyu Tolgoi after 4.5 million man hours of work;
SouthGobi contracts Leighton to build 45-km paved highway from mine to China;
The value saga of Oyu Tolgoi;
Caterpillar earnings leap.
Economy:
Rise in budget deficit will upset everything, says Central Bank Governor;
Stronger MNT is bad for export, domestic producers;
Foreign currency reserve likely to reach USD2 billion by year-end;
Cultivators start paying back loans;
Mongolia‟s economic recovery getting broad-based, notes World Bank;
World Bank support for Government‟s reforms continues;
Central Bank Governor tells MPs why interest rates cannot be reduced;
Besides a large one, Mongolia plans to have smaller oil refineries;
Mongolia has pressures to defuse before fulfilling its promise;
Laugh if you like, but Mongolia is a serious play;
Nomads no more, a steppe-land struggles with new riches;
Singapore Exchange's takeover bid for ASX could threaten Hong Kong Exchange;
Asia needs a market for bourse ownership, but that's a long way off;
IMF calls for higher Asian currencies;
China shifts attitude on growth;
Brazil eyes royalty rates change;
Rethinking the light bulb with OLED technology.
Politics:
Mongolia ranked 116th
among 178 nations in Corruption Perceptions Index;
Elbegdorj blasts leaders-people divide and mistrust;
Prosecutor-General proclaims anti-corruption chief as “criminal suspect”;
State Property Committee is “responsible for more than privatization”;
MPs approve their salary raise proposal at first discussion;
About 100 Mongolians spent USD7 million to buy MMC shares at Hong Kong;
2. Court turns down appeals in two high-profile cases;
Canadian MPs want NAMBC input on cooperation with Mongolia;
Mongolia gets EITI „compliant‟ status;
Rumor halts blood donation, reserves come down;
Government partially lifts ban on animal imports from China;
Mongolian food industry celebrates 80th
anniversary;
Government says it had no links with international symposium;
Dundgobi going green;
Dinner in Arlington, Virginia, USA to raise funds for Mongolia Society project.
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BCM MONTHLY MEETING NOTICE
BCM‘s next monthly meeting for members will be Monday, November 1, 2010 at 5 PM at the
KEMPINSKI HOTEL KHAN PALACE, 2ND
FLOOR, Altai Ballroom. Parking will be reserved in front of the
hotel for BCM Members.
The bilingual meeting will feature the following presentations:
• Mr. D. Damba, President, MNMA, will provide an update on the mining sector;
• Mr. L. Sumati, Director, Sant Maral Foundation, will review the Polit Barometer- October 2010
Survey;
• Mrs. Jigjidmaa Dugeree, Local Coordinator of the IFC-funded ―Mongolian Business Inspection
Reform Project" will discuss the Investment Climate Program of IFC in Mongolia;
• Dr. Battsengel Gotov, Executive Director & Chief Executive Officer, Mongolian Mining Corporation
(MMC) will present an ―Overview of MMC‖.
We shall conclude the business portion of the meeting by asking BCM members in the audience to
briefly comment on specific problems, solutions, risks, opportunities and/or strategies affecting
their businesses. BCM members can learn from one another sharing good news and bad.
A networking reception will be held for all attendees immediately following the business portion of
the meeting in rooms ―Khusvgul‖ and ―Hustai‖, also on the 2nd
floor, Kempinski Hotel Khan Palace.
At 7 PM, the fortunate 140 of you with reservations for BCM‘s Membership Renewal Dinner should
proceed to the Oasis Restaurant on the 1st
floor, Kempinski Hotel Khan Palace.
BUSINESS
IVANHOE FILES COUNTER-CLAIMS IN DISPUTE WITH RIO
Ivanhoe Mines said on Tuesday it has filed counter-claims against Rio Tinto, in relation to an
arbitration process that was launched by the Anglo-Australian miner earlier this year. Vancouver-
based Ivanhoe and Rio are developing the nearly USD5 billion Oyu Tolgoi copper-gold project
Mongolia.
The two companies have been locked in a dispute over a shareholder rights plan adopted by Ivanhoe
in May. Rio, which owns roughly 35 percent of Ivanhoe's outstanding shares, alleges that the plan is
in breach of its contractual rights. Ivanhoe rejects Rio Tinto's claim.
The Canadian exploration company has also counter-claimed that Rio itself breached the terms of
their private placement agreement by engaging in activities that could affect the control of Ivanhoe
without the company's permission. Earlier this year in a securities filing, Rio said its minority
shareholder Chinalco had indicated an interest in acquiring a minority equity stake in Ivanhoe.
An independent arbitrator has scheduled hearings on the claim and counter-claim between January
18 and February 5, 2011.
Source: Reuters
APPELLATE COURT RULES IN FAVOR OF KHAN RESOURCES
Khan Resources Inc. has said a Mongolian appellate court has ruled in its favor regarding its mining
license and upheld an administrative court decision, which was contested by the Nuclear Energy
3. Agency (NEA). In July, the Ulaanbaatar Administrative Court had said notices issued by the NEA
meant to invalidate the mining license held by Khan's subsidiary, Central Asian Uranium Co LLC,
were illegal and invalid. The NEA has a right to appeal the appellate court ruling within 30 days,
Khan said in a statement.
Khan, which owns license to explore uranium at Dornod, has been facing trouble from the
Mongolian authorities. "We now trust the NEA will move forward with re-registering our licenses
under the Mongolian Nuclear Energy Act, or will provide just cause as to why not, all as prescribed
by the laws of Mongolia," Chief Executive Grant Edey said in a statement.
Source: Reuters
SOUTHGOBI TAKES STAKE IN ASPIRE MINING
Shares in Aspire Mining Ltd. rose over 30 percent after an Ivanhoe Mines Group company took a
substantial stake in the junior coal explorer. The Perth-based Aspire said on Monday the Ivanhoe-
controlled SouthGobi Resources had taken a 19.9 per cent interest in it via a placement of 105.7
million shares, raising AUD20.1 million.
Aspire also said the companies, which were focused on Mongolia, had formed a strategic
partnership to fast-track development of Aspire's wholly-owned Ovoot coking coal project in the
country's north. Aspire is yet to secure offtake partners for the Ovoot project and says only 10 per
cent of the area has been explored. Aspire chairman David McSweeney said the deal with
SouthGobi Resources would speed up the company's transformation from a coal explorer to a coal
mine developer.
SouthGobi president and chief executive Alexander Molyneux said Aspire was an exciting strategic
partner, given its large volume of potentially high-quality coking coal in Mongolia. Mr. Molyneux
said SouthGobi Resources would provide Aspire with in-country expertise. SouthGobi Resources,
which is 57 percent held by Canada's Ivanhoe Mines Ltd, produces coal at its Ovoot Tolgoi mine in
Mongolia's south.
Source: The Sydney Morning Herald
IVANHOE TENSION WILL NOT DELAY OYU TOLGOI, SAYS RIO CEO
Rio Tinto chief executive Tom Albanese has said ongoing tensions with Canadian partner Ivanhoe
Mines would not hold back the Oyu Tolgoi project which he said could be brought on stream early.
Mr. Albanese said in a television interview broadcast on Sunday he hoped to see first production
from the mine in 2013, and said both Rio Tinto and Ivanhoe Mines were committed to its rapid
development despite their disagreements.
"It's very important for Rio Tinto. It's very important for Ivanhoe. It's also very important for
Mongolia. It's a first class mine being built on time," Mr. Albanese told the Australian Broadcasting
Corporation (ABC) program Inside Business. "I'd like to actually see it get sped up if we can, first
production by 2013. It is on track as we speak."
Source: The Australian
MOODY‟S ASSIGNS Ba3 RATING TO NOTES AND “NEGATIVE” OUTLOOK TO TDB‟S EMTN PROGRAM
Moody's Investors Service has assigned a Ba3 rating to senior unsecured notes drawn under the
USD300 million foreign currency Euro Medium Term Note (EMTN) program of the Trade and
Development Bank of Mongolia LLC (TDB). The outlook is negative. "The rating and outlook on the
senior unsecured notes are the same as the EMTN program's and the bank's current foreign currency
issuer ratings. The negative outlook was placed in September, 2009," says Yvonne Zhang, a Moody's
Vice President and Senior Analyst.
The senior notes represent direct, unconditional, unsecured, and unsubordinated obligations of
TDB; and will help diversify the bank's funding sources and support future loan growth. TDB's long-
term foreign and local currency debt and issuer ratings are Ba3; its long-term local currency deposit
ratings, Ba3; its long-term foreign currency deposit ratings, B2; its short-term ratings, NP; and its
bank financial strength rating, D-. The outlook for these ratings is negative, except for the foreign
currency deposits rating, which has a stable outlook.
Moody's last rating action on TDB was taken on November 12, 2009, when the outlook on its B2 long-
term foreign currency deposits rating was changed to stable from negative. TDB reported total
assets of approximately USD558 million as of December 2009.
Source: Info-Prod Strategic Business Information
WINSWAY‟S SALE OF MONGOLIAN COAL UP 141% Y-O-Y
Winsway‘s sales volume for the nine months ended September 30 increased by 176% compared with
4. the same period last year. Benefiting from the completion of and improvement to the company‘s
cross border facilities and end-to-end integrated service platform, and the increasing demand for
imported coking coal from steel mills in China, Winsway‘s unaudited total sales of coking coal in the
period reached approximately 6.2 million tons, of which approximately 3.5 million tons were
Mongolian coking coal. Its sale increased by 141%.
Source: Winsway
ALAMAR RESOURCES ACQUIRES ASSETS IN MONGOLIA
Alamar Resources (ASX:ALG) has entered into a conditional agreement to acquire 100% of Mongolian
Resource Company, a growth-oriented Mongolia-based diversified resource company engaged in the
acquisition, development and operation of resource properties there. The proposed transaction is
conditional on a capital raising of not less than USD5 million at USD0.25 per share or not less than
80% of the average market price for shares on the 5 days before lodgment of the prospectus.
Source: Proactive Investors Australia
ERDENES TAVAN TOLGOI IPO LIKELY IN LATE 2011
Mr. L. Enebish, General Director of Erdenes MGL, has says that Erdenes Tavan Tolgoi LLC, which
holds the license for the Tavan Tolgoi coal deposit, is expected to have its IPO in late 2011. The
Government is likely to offer 30% of the company‘s shares in the IPO. Mongolia Mining Corporation
(MMC) recently raised USD651million by selling 20% of its shares, taking the company‘s worth to
USD3.2 billion. Erdenes Tavan Tolgoi owns a reserve at least ten times larger than MMC‘s and will
sell 30% of its stock, so if the MMC IPO is any indicator, Erdenes Tavan Tolgoi could easily end up
the biggest Mongolian company.
Source: Business-Mongolia.com
PEPSI-COLA TO BE PRODUCED IN MONGOLIA
Following an agreement with PepsiCo International, the second largest food and beverage company
in the world, GN Beverages will soon start producing Pepsi, Miranda and 7-Up brands in Mongolia. It
has acquired the franchise rights to special recipes for these internationally popular beverages and
also the special production techniques that give them their unique flavor. GN Beverages has over
150 employees and its fully automated plant works with the most modern German equipment. The
company‘s laboratory uses Japanese technology for tests to ensure quality control.
Source: Udriin Sonin
PETROCHINA CAUSED ECOLOGICAL DAMAGE WORTH MNT1 BILLION, PROBE CONCLUDES
The law on environmental impact evaluation, passed in 2000 and amended twice since then, calls
for the assessment of the effects of any industrial activity and of the financial costs of reclamation
every four years. Following complaints from citizens about the ecological damage done by
PetroChina Daqing Tamsag in Dornod province, Munkh-Orgil Trade Company was asked to probe the
allegations. Its head, Mr. B.Erdenebaatar, has now said they have completed the work and
concluded that the ecological damage done by Petro China in the area the company was asked to
study amounted to MNT1 billion in monetary terms. The company dug over 300 holes and then
linked them, in the process heavily damaging the soil.
Source: Undesnii Shuudan
PETROCHINA NET RISES 13% AS OIL DEMAND CLIMBS
PetroChina, China's largest publicly traded oil company by capacity, on Wednesday reported third-
quarter profit of USD5.21 billion, up 13% from a year earlier. PetroChina's profit for the nine-month
period rose 23%.
China has driven rising global oil demand, especially since late 2008, when government stimulus
spending was channeled into energy-intensive infrastructure projects. In response to strong
demand, PetroChina has increased its energy production. For January through September, its crude-
oil output rose 1.3% to 639.7 million barrels, while its average selling price for crude jumped 46% to
USD71.76 a barrel. The state-controlled oil giant refined 657.4 million tons of crude, up 8.3%.
Source: The Wall Street Journal Asia
NO ACCIDENT AT OYU TOLGOI AFTER 4.5 MILLION MAN HOURS OF WORK
With 4,500 people engaged in the construction, the physical face of the Oyu Tolgoi project is
changing not from month to month but from day to day. A special feature of the work so far has
been the strict implementation of internationally recommended labor safety measures. This has
5. meant that there has not been a single accident so far in the 4.5 million man hours of work.
Source: Udriin Sonin
SOUTHGOBI CONTRACTS LEIGHTON TO BUILD 45-KM PAVED HIGHWAY FROM MINE TO CHINA
SouthGobi Resources has awarded a USD48 million contract to Leighton Asia, a division of Australia-
based contracting giant Leighton Group, in a joint venture with Monnis International, a leading
Mongolian resource, construction and transportation conglomerate to build a paved highway
dedicated to the delivery of export shipments from SouthGobi‘s Ovoot Tolgoi coal mine to the
Mongolia-China border crossing at Shivee Khuren-Ceke.
Work will include the design and construction of the 45-km highway linking the Ovoot Tolgoi coal
mine with Ceke, a major coal terminal on the China side of the border with rail connections to key
coal markets in China. The coal-hauling highway will be 17 meters wide and will consist of four
fully-paved lanes with a one-meter central median in order to provide capacity well in excess of 20
million tons of coal per year. It will be constructed with a concession granted by the Government of
Mongolia as per the country‘s recently passed Concession Law. Upon completion, the road will
accommodate heavy axle loads of fully loaded coal trucks and set new standards for haul road
infrastructure in Mongolia.
―We are very pleased to work with Leighton Asia and Monnis International on this significant
infrastructure project in southern Mongolia,‖ said Mr. Alexander Molyneux, President and CEO of
SouthGobi. ―The new coal highway will improve safety for coal transporters, will greatly reduce the
environmental impacts of the unpaved road – and will facilitate further aggressive growth of our
mining business.‖
The new highway is scheduled to be completed by the end of 2012.
Source: SouthGobi Resources
THE VALUE SAGA OF OYU TOLGOI
There are many risks in mining; even the risk that unimaginable individual success could become a
risk in advancing an asset to productive and useful status. Ivanhoe Mines' NYSE stock price may have
multiplied by a factor of more than ten in less than two years, but it seems that it's simply not
enough for Robert Friedland, who owns a self-confessed 18.3% stake in the group, currently worth
USD2.3 billion.
His stake, that is; Ivanhoe as a whole has a market value of USD12.4 billion. This is not a bad gain
for Ivanhoe's re-discovery of Oyu Tolgoi in 2001 in the Gobi Desert. The discovery goes back forever:
outcropping rocks in the area were smelted for copper some 700 years ago, during the times of
Genghis Khan.
At the time of rediscovery in 2001, Ivanhoe's stock price was around CAD1.50 a share; it is now
trading up around CAD24.00 a share. On 18 October 2010 Ivanhoe was back in the headlines on the
announcement that it would be looking to issue fresh common shares to raise USD800 million, and
perhaps USD200 million more, further fueling its apparent row with transnational miner Rio Tinto.
Oyu Tolgoi is a USD-4.6-billion mine build, currently under way. The saga can be traced to 27
October 2006, when Rio Tinto completed a first private placement with a cash-strapped Ivanhoe.
Rio Tinto has reacted to the latest news by, in effect, proclaiming that Ivanhoe has undermined Rio
Tinto's claimed first right of refusal, dating to 2006. Ivanhoe seems to counter that the right
pertains only to private placings, and not a general rights issue.
Read more…
In July Rio Tinto announced that it had told Ivanhoe that it's taking to arbitration Ivanhoe's
"breaches of the private placement agreement caused" by Ivanhoe's adoption of a shareholders
rights plan on 5 April. The arbitration is now expected to be finalized by 5 February 2011.
In July Ivanhoe reacted - in part - by declaring that it has "exercised its contractual right and given
60 days‘ advance notice to Rio Tinto of a forthcoming change in the agreement governing Rio Tinto's
investment in Ivanhoe Mines". That, in short, meant termination of a covenant that's restricted
Ivanhoe's ability to issue shares to "strategic investors".
Termination of the covenant meant that Ivanhoe could issue more than 5% of its common shares to
one or more third-party strategic investors, "which could include major mining companies". To some
observers, this seemed like an odd way of thanking Rio Tinto for so far risking billions of dollars,
and making available the skills and institutional memory of a transnational mining group.
To date, Rio Tinto, which years ago agreed to the responsibility for developing and operating Oyu
Tolgoi, has pushed, via Ivanhoe, significant investment and intellectual capital into developing the
mine. On 29 June, a further USD393 million in cash went from Rio Tinto to Ivanhoe. To date, Rio
Tinto has invested some USD1.73 billion in Ivanhoe, inclusive of convertible debt, and increased its
6. ownership in Ivanhoe to 34.9%.
On current agreements, Rio Tinto's past and potential future investments in Ivanhoe comprises some
USD2.5 billion. Agreements (up to now) state that Rio Tinto's stake in Ivanhoe can increase up to
46.6% by October 2011, when a standstill over Rio Tinto mounting a takeover bid for Ivanhoe
expires.
As an alternative to the rights issue just announced by Ivanhoe, Rio Tinto, which believes there are
"superior financing opportunities available" could exercise early its USD750 million or so warrants.
That aside, Ivanhoe's intended rights issue, even if successful, is nowhere near enough to finish the
mine build. For months, Ivanhoe has ventured to find non-equity financing for Oyu Tolgoi. Months
ago, the group referred to ongoing attempts to finance including apparent buy-ins from the
International Finance Corporation, part of the World Bank, and the European Bank for
Reconstruction and Development.
In June Ivanhoe signed a mandate letter, where the IFC and EBRD may each consider providing a
two part finance package, being USD 300 million from each entity in the form of limited-recourse
project financing, and a further USD1.2 billion in commercial loans under a "B loan structure". Now
Export Development Canada, BNP Paribas and Standard Chartered have been added to the list of
potential financiers. A debt package is anticipated to close during the "first half" of 2011.
According to recent updates from Ivanhoe, Phase I Oyu Tolgoi, which has been authorized and is
under way, would cost an estimated USD4.6 billion. During 2013, production would start building up
to an average annual production of some 1.2 billion pounds of copper (about 544,000 tons) and
650,000 ounces of gold, for the first 10 years.
Without further equity funding, when the mine starts building up, Oyu Tolgoi's project debt could
be in the region of USD3 billion. At that stage, with all the build capital spent, risks would be at
something of a peak; Rio Tinto, the major financier, may choose to allow its exposure to remain
relatively diversified (Ivanhoe has other interests) and relatively modest, until mine output is
proven, debt starts diminishing, and possible dividends loom.
Ivanhoe's direct stake in Oyu Tolgoi is at 66%, given the 34% held by the Mongolian government,
which has been anything but a silent partner, securing from Ivanhoe the purchase of government
bonds and handsome tax pre-payments.
Ivanhoe has other interests, including 57% of SouthGobi (full market value: USD2.2 billion), 81% of
Ivanhoe Australia (USD1.3 billion), and 50% of Altynalmas Gold, which holds 100% of the Kyzyl gold
project in Kazakhstan. Like Oyu Tolgoi, each of these assets needs significant development capital,
and, if it comes to that, build capital. For now, Ivanhoe Mines needs friends with big balance
sheets, and clout in capital markets. But it seems that one man, who seems to have everything,
wants something else as well.
Source: Mineweb
CATERPILLAR EARNINGS LEAP
Caterpillar Inc.'s third-quarter profit surged 96%, as construction and mining companies replenished
their machinery fleets after a reduction in purchases last year. The world's largest manufacturer of
bulldozers, excavators, wheel-loaders and other construction equipment, has said that machinery
sales rose sharply even in North America and Europe—two regions where construction activity
remains weak.
Demand from developing economies showed no signs of weakening. Machinery sales in Latin
America more than doubled, while sales in Asia rose 81%. The company has been overhauling its
production sites this year to boost its manufacturing capacity in China, Brazil and other markets
where accelerated infrastructure construction and mine expansions are creating robust demand for
machinery.
The company now expects 2010 revenue in a range of USD41 billion to USD42 billion, compared with
USD39 billion to USD42 billion previously. For the quarter ended September 30, Caterpillar reported
a profit of USD792 million, up from USD404 million a year earlier. Revenue rose 53% to USD11.13
billion, rebounding from a 44% decline a year earlier.
Source: The Wall Street Journal Asia
ECONOMY
RISE IN BUDGET DEFICIT WILL UPSET EVERYTHING, SAYS CENTRAL BANK GOVERNOR
The Central Bank Governor, Mr. L.Purevdorj, has said the unexpected decision of Minister of
Finance S.Bayartsogt to include social welfare expenditure in the budget is likely to raise budget
expenses from MNT3 trillion to about MNT4.4 trillion. The resulting increase in the budget deficit
7. will have to be met with domestic loans. That could very well mean higher inflation. If the original
draft budget is changed, the monetary policy will also have to be changed. A bigger budget deficit
will also mean printing more bank notes and the Central Bank does not want this.
He said it was essential to coordinate monetary policy and fiscal policy. The monetary policy seeks
to tackle problems like inflation that arise from the budget. If the deficit is kept low, as in the
original draft budget for 2011, the Central Bank will be in a position to follow a more liberal
monetary policy and reduce interest rates. If Government spending is curbed, the private sector
can be given easier access to loans. Mr. Purevdorj said they are waiting for the final form of the
budget before taking a decision on interest rates so that once taken, it does not have to be changed
soon.
Asked about the MNT getting stronger, he told journalists the Central Bank is monitoring the
movement. ―If there is a sudden strengthening we have to buy foreign currency, but I don‘t think
this will happen. The USD rate will stabilize around MNT1300,‖ he said.
Source: English.News.mn
STRONGER MNT IS BAD FOR EXPORT, DOMESTIC PRODUCERS
Contrary to popular perception, a stronger MNT may not be all good for Mongolia. Ms. G.Delgermaa,
Director of the Foreign Currency and Economic Section at the Central Bank, explained to journalists
that a rising MNT, as seen in recent days when the market has been volatile, means investment in
mining projects would cost less and this would be good. However, Mongolia‘s exports will
correspondingly earn less in terms of the MNT, and domestic production will suffer as imports
become cheaper. The Central Bank is watching the situation carefully, but it is too early to say if
the recent trend of changes in the exchange rate has had any effect on macroeconomic indicators.
Source: Ardiin Erkh
FOREIGN CURRENCY RESERVE LIKELY TO REACH USD2 BILLION BY YEAR-END
The Central Bank revealed last week that the country‘s foreign currency reserve has exceeded
USD1.8 billion, and is expected to reach USD2 billion before the year ends. The high prices of gold
and copper have been behind the increase.
Source: Udriin Sonin
CULTIVATORS START PAYING BACK LOANS
This year‘s wheat harvest has been three times more than that in 2007, and has raised hopes that
the Russian ban on export of its wheat will not affect Mongolia. Cultivators are happy with the
result of their efforts. With an incentive bonus from the Government supplementing their yield
sales money, and sales to alcohol and flour companies almost complete, they have begun to pay
back the loan taken from the agricultural fund.
Source: Undesnii Shuudan
MONGOLIA‟S ECONOMIC RECOVERY GETTING BROAD-BASED, NOTES WORLD BANK
In its latest Mongolia Quarterly Economic Update, the World Bank notes that Mongolia‘s impressive
recovery from the steep recession of late 2008 and early 2009 is now becoming broad-based. Strong
demand for copper and coal from China are fuelling the recovery, and are also helping to
substantially improve the external balance. However, price pressures are unlikely to abate in the
coming months. The 30 percent wage and pension increase for public sector employees and the
cash transfers currently taking place will help to keep demand side inflation pressures strong.
Fiscal balances have improved strongly in step with mineral-related revenues. In large part this
recovery reflects the support to government revenues from buoyant commodity prices. The bulk of
the increase in revenues was accounted for by the Windfall Profits Tax and domestic corporate and
indirect tax revenues, reflecting the underlying improvement in the economy and the recovery in
commodity prices. However, as fiscal balances improved, pressures to increase spending also
mounted.
As the elections of 2012 draw closer, spending pressures will amplify even further. Fortunately,
Parliament recently passed a Fiscal Stability Law, which forces 2011 revenues to be based on a
long-term copper and coal price trend, and starts setting the resulting savings aside in a
stabilization fund. The law targets a structural budget deficit (along the lines of Chile‘s structural
balance rule) of 4 percent of GDP in 2011, falling to 2 percent by 2013. It also puts a ceiling to debt
(at no more than 40 percent of GDP) and restrains expenditure growth to not more than the rate at
which the economy is growing.
The present session of Parliament is expected to debate and enact a number of important reform
8. laws, continuing the post-crisis reform agenda. This includes a banking sector capacity
strengthening and capital support program which contains, as a last resort tool, a stand-by bank
recapitalization facility with proper covenants to protect the public funds. Parliament will also
debate a social welfare reform law which would set the stage for the introduction of a targeted
means-tested poverty benefit, replacing the formerly universal transfers. Passage of the law is also
linked to the last tranches of the budget support operations of the ADB and Japan. Finally,
Parliament is also expected to adopt a new Organic Budget Law which will lay out a new process of
budget management, including improvements in public investment planning, and fiscal
decentralization. For 2011 and 2012, in the run-up to elections, the challenge for Parliament will be
to implement and adhere to the landmark laws it will have passed in the wake of the crisis, and to
avoid the temptations of unsustainable increases in spending.
Source: World Bank
WORLD BANK SUPPORT FOR GOVERNMENT‟S REFORMS CONTINUES
Minister of Finance S. Bayartsogt and Ms. Coralie Gevers, the new Country Manager of the World
Bank, Mongolia, have signed a USD30 million Financing Agreement in support of the significant
reforms that the Government has been undertaking since it was hit by the economic crisis in 2008.
The Second Phase of Development Policy Credit (DPC2), which complements the First Phase
financing of USD40 million that was approved in June 2009, aims to support the Government in its
continued efforts to sustain the economic recovery and to develop a stable fiscal framework for the
future. In particular, the DPC2 supports reforms in four areas: (i) establishing an improved fiscal
policy and management; (ii) designing a social protection system that supports the poorest people
through economic downturns; (iii) preparing a framework towards a sounder financial sector; and
(iv) maintaining an attractive investment climate for mining.
Source: The World Bank, Mongolia
CENTRAL BANK GOVERNOR TELLS MPs WHY INTEREST RATES CANNOT BE REDUCED
Several members of the Standing Committee on the Economy were critical of the monetary policy
for 2011 when they reviewed it on Tuesday. The mining industry is bringing in foreign currency to
Mongolia at a time when the MNT has abruptly become stronger. This is the classic initial sign of the
Dutch disease, they said. Large foreign companies have borrowed USD760 million to finance their
work in Mongolia, but all of this is from foreign sources. With the Central Bank‘s policy interest
rates high, commercial banks cannot charge lower interests and thus cannot service loan demands.
Members urged the Central Bank to be bold and to reduce rates.
The Bank‘s Governor, Mr. L.Purevdorj, was at the meeting to answer questions. He explained that
inflation has to be controlled and kept stable before the Central Bank can reduce policy interest
rates. There is also no certainty that even if the Central Bank lowers rates, commercial banks
would follow suit. He felt the Government should revise its guarantee of citizens‘ savings with
banks as this encourages banks to attract deposits on tempting terms. But the most important
thing, he told the MPs, was to keep the budget deficit low, by scrapping the distribution of cash
allowances. ―Only when these are done, can the Central Bank reduce its rates,‖ he said.
Source: News.mn
BESIDES A LARGE ONE, MONGOLIA PLANS TO HAVE SMALLER OIL REFINERIES
Petroleum Authority Chairman D. Amarsaikhan has said that apart from the 44,000-bpd oil refinery
to be built in Darkhan by a Japanese company in cooperation with Mongol Seiku at an estimated
cost of USD600 million, smaller refineries needing an investment of around USD40 million each are
also planned to be constructed in regional centers. Annual consumption in the country is expected
to grow from the present 850,000 tons to 1.5 million tons by 2015. The country produced and
exported to China about 2 million barrels of crude oil in 2009. This rose 41.1% in the first nine
months of 2010. With proven reserves of 119 million tons, Mongolia has enough oil to meet its own
needs for at least 30 years, even if no new discovery is made.
Source: UB Post
MONGOLIA HAS PRESSURES TO DEFUSE BEFORE FULFILLING ITS PROMISE
With nations scouring the globe in pursuit of dwindling mineral supplies, the world's attention has
shifted to Mongolia, a country some are heralding as the next resource success story. Among the
last places on earth with rich, untapped mineral deposits, this landlocked, underdeveloped country
is expected to become one of the world's fastest-growing economies over the next decade -- if, that
is, it can address a set of daunting challenges and bring these resources to the market.
9. According to some estimates, there is about USD1.3 trillion worth of untapped coal, gold, silver,
copper, uranium and zinc deposits in what is being called "Minegolia." The country's GDP is expected
to rise as much as 10 percent per year, from the current USD5 billion to USD30 billion by 2020, as a
result of revenue from these minerals alone. Meanwhile, per capita income is expected to
quadruple, from USD3,000 in 2008 to USD12,000 by 2015 -- or about what the average person in
Shanghai currently earns.
This transformation is already under way. The government is currently in a joint venture with
Ivanhoe Mines Ltd. and Rio Tinto PLC to exploit the Oyu Tolgoi mine in the south Gobi Desert. The
mine is one of the world's largest underdeveloped copper-gold projects, and could yield up to
USD50 billion in revenue when production begins in 2013. Tavan Tolgoi, the world's largest
untapped coking coal site, is expected to generate up to 50 million tons of coal per year for 200
years once production is ramped up. And with a relatively open society and a fairly accommodating
business environment, Mongolia is also fast becoming a popular investment destination for brands
such as Louis Vuitton and Burberry. Companies listed on the Hong Kong Stock Exchange have also
acquired almost USD1 billion in Mongolian resource assets through mergers and acquisitions.
Yet the country will have to overcome a set of formidable challenges if it is to realize its full
resource potential. First, having been historically subjected to Chinese control until the early 20th
century, and then under Soviet influence until the end of the Cold War, Mongolia will have to
manage relations with its two neighbors deftly while preserving its sovereignty. Relations with
Beijing will be an especially tough balancing act. China is the country's top export market,
accounting for 64 percent of Mongolia's exports, and increasingly relies on Mongolia for energy. But
there are lingering suspicions among Mongolians that the country is becoming overdependent on
China.
Read more…
When the government signed more than 66 percent of the rights to Oyu Tolgoi's deposits over to
foreign companies last year, the decision was denounced as a sellout. Some domestic critics remain
convinced that these companies are bringing in experienced Chinese miners rather than hiring
Mongolians. Similar concerns may also have motivated the government's decision to cancel an
equity-stake sale in Tavan Tolgoi to a foreign company in favor of full state ownership. (Chinese
coal company Shenhua had been seen as one of the front runners in the bidding.) Ulaanbaatar has
also tried to diversify its portfolio by strengthening its relations with other countries as well. Within
the last few months alone, it has agreed to supply energy-hungry Japan with rare earths, reached
out to Vietnam to exchange development experience, concluded an agreement with Canada to
invest more than USD600 million and set up direct charter flights with Taiwan to promote tourism
and trade.
The leadership must also ensure that the economic benefits derived from these resources are felt
by the population at large, even as it confronts the country's myriad development problems.
Mongolia ranks 147th in the world in terms of nominal GDP, with a fifth of the population living on
less than USD1.25 a day (measured in 2005 purchasing power parity terms). About 30 percent of the
population is still nomadic or semi-nomadic. The country's reliance on resources and agriculture
makes it vulnerable to price fluctuations and natural disasters, and the combination of a harsh
winter in 2009 and the global financial crisis reduced GDP growth last year from 8 percent to 2.7
percent. The government has issued cash handouts but cut child-benefit payments and subsidies for
young couples, which has only caused inflation to spike, hitting the poor even harder. Mongolia also
faces a massive urbanization crisis, with 40 percent of its population living in the capital alone and
that number expected to swell even more in the future.
There are also concerns that the government is not adequately balancing economic and
environmental imperatives. Decades of poorly regulated urbanization and industrialization have
resulted in severe air pollution, overgrazing, deforestation and soil erosion. As a result, according
to the United Nations Environment Program, more than 70 percent of Mongolian territory suffers
from desertification, while wheat yields are about half those of the 1980s, and several rivers and
lakes have begun to dry up. Yet the government has proven unwilling or unable to enforce
regulations governing foreign mining companies, and reports of arsenic traces at sites and polluted
rivers have begun to surface.
Frustrated environmental activists and farmers are increasingly taking the law into their own hands,
and there have been six reported mining-related confrontations -- including one death -- so far this
year. In the latest incident last month, four activists from the United Movement of Mongolian Rivers
and Lakes opened fire on gold-mining equipment belonging to Chinese and Canadian firms, claiming
that the companies had violated a law prohibiting exploration or mining at the headwaters of
rivers.
10. The promise of Minegolia is clear, and the pressure for this resource-rich nation of steppes and
deserts to develop is mounting. But the government's ability to navigate a dizzying array of
geopolitical, development and environmental obstacles to drive the country into a bright economic
future is still unproven.
Source: www.summitbusinessmedia.com
LAUGH IF YOU LIKE, BUT MONGOLIA IS A SERIOUS PLAY
Some people have been talking up the imminent arrival of Mongolia as a hot new investing
destination for years now, usually to hoots of derision. Recently, though, they had not one but
three separate confirmations that Mongolia has finally become the newest ―in thing‖ in the fickle
world of investing. The first indicator was at an event for a City think-tank called the CSFI. This
august institution usually doesn‘t talk much about adventurous investing and certainly not about
Mongolia but at a gathering of Big Bears – pessimistic types predicting a coming financial storm – the
subject of Mongolia came up.
While most of the speakers were rather predictably banging on about gold, one talked about the
growing supply issues facing the global resources sector and the fact that Mongolia seems to have
most of the easy-access mega projects worth investing in. Crucially, its canny political leadership
has no intention of being gobbled up by either the Chinese or the Russians in a resources land grab
and is busily playing off each of these superpowers.
A couple of days later, another development caught their attention – namely that one of the most
successful international stockpickers, James Barstow at Aurora investment trust, has made a big bet
on a Mongolian oil play called PetroMatad, which is itself attracting huge attention among the
speculative small-cap brigade on the London market. It‘s best to see the Mongolia story as part of a
wider regional narrative that includes the Chinese resource-rich provinces of Xinjiang and Inner
Mongolia, as well as the state of Mongolia proper.
The clincher, though, came with the news that a specialist investment research firm called Eurasia
Capital has launched . . . wait for it . . . a Mongolian equity tracking index. The index is still a
vulnerable, young waif, comprising an odd mixture of hugely speculative miners and a few financial
services groups. But its launch speaks of a new mania gripping the Asian markets. Barely a week
goes by without some Hong Kong-based outfit announcing it‘s about to launch a big new Mongolian
division. There is talk of aircraft arriving in Ulaanbaatar, crammed full of bankers, mining execs and
stock promoters all desperate to come up with the next Big Mongolian Thing.
Read more…
The fun and games have only just begun when it comes to this landlocked, resource- rich country.
Some specific Mongolian funds are certain to emerge that offer investors a more attractive play on
this frontier market – at the moment all but a handful of the companies on the Eurasia index are
very specific resource exploration companies. The biggest opportunities will be in the broader
service economy sector as well as in real estate and infrastructure. But one can predict the
multiplier effects of billion-dollar projects will cascade into the small, illiquid local stock market,
triggering a massive bubble.
Origo‘s chief executive Chris Rynning says: ―It is inevitable that Mongolia will experience bubbles
with international investors charging in, creating immediate domestic wealth and rapid asset
appreciation.‖ He adds the important caveat that ―a lot of Mongolian companies look very pricey
already. I think many of them will struggle to meet their production targets, mainly because of
slower-than-expected infrastructure build-out‖.
Source: The Financial Times
NOMADS NO MORE, A STEPPE-LAND STRUGGLES WITH NEW RICHES
Mongolians were until recently wont to describe themselves as ―beggars sitting on a huge pile of
gold‖. The country has vast but largely untapped mineral deposits. Until recently wages were low
and jobs scarce. Shoppers in Ulaanbaatar were not spoilt for choice—unless they were in the market
for dried meat, vegetables or furry hats.
But with the recent launch of several big mining projects, a transformation looms. It will present
the government with a different set of problems; how to manage a promised economic boom
without devastating the environment or destabilizing either the economy or the nation‘s fledgling
democracy.
Few doubt that the boom is coming. The IMF foresees a double-digit annual-growth rate for years to
come; and a quadrupling of GDP per head—currently a measly USD2,000—by 2018. Two mines in
Mongolia‘s southern Gobi region are expected to provide much of the new wealth. One, called Oyu
Tolgoi, which was given the green light last year, will tap an estimated 40 million tons of copper
11. and also gold. The other is an existing coal mine, Tavan Tolgoi, to which new capacity has been
added, including road and rail links to its main customer, China (surprise, surprise).
The government will be a big beneficiary of the boom: it owns a third of Oyu Tolgoi (a Canadian
firm, Ivanhoe, owns the rest). Yet the country‘s president, Mr. Ts. Elbegdorj, considers it
potentially dangerous. ―If we get much more income and much more profit in a bad system with
bad governance, I think Mongolia is in trouble,‖ he says.
Mongolian politics is already based on patronage, with politicians invariably offering cash and other
goodies for votes. Swollen government coffers could exaggerate these bad habits. Corruption could
also thrive—as it did in the 1990s, on the back of a hasty privatization of state-owned businesses
soon after the country emerged from the Soviet Union‘s shadow and introduced democracy. Indeed,
the involvement of many senior officials in mining makes this likely. And even virtuous public
spending may push up inflation.
Read more…
An economy hooked on a handful of commodities is also vulnerable to price shocks. A new fiscal
stability law has been adopted, setting indices for commodity prices for budgeting purposes. When
prices go above the index, excess revenue will be stored in a ―stability fund‖. If prices fall, the
government can tap the fund to cover its costs.
Other precautions are being taken. New anti-corruption legislation has been passed. And Mr.
Elbegdorj vows to help boost investments in non-mining sectors, including tourism, finance and
outsourcing. He says that mining‘s contribution to output should shrink from 70%, its current level,
to around 20% within two decades.
That sounds unlikely. Yet there is hope that Mongolia‘s current leaders, who are better educated
than their predecessors, do at least understand the dilemmas involved in managing the coming
riches and the rising expectations they will bring. ―It‘s a question of whether we become Nigeria or
Chile,‖ says a senior government adviser, in a country accelerating away from its sleepy nomadic
past.
Source: The Economist
SINGAPORE EXCHANGE‟S TAKEOVER BID FOR ASX COULD THREATEN HONG KONG EXCHANGE
Hong Kong's stock exchange has had a great run. The news from Singapore should be a warning sign
that it can't take its good fortune for granted. Singapore Exchange Ltd.'s USD8.2-billion takeover bid
for ASX Ltd. is no sure thing. But if it goes through, the result could be a game-changer, creating a
new center for trading in Asia with the liquidity to attract major investors and big companies alike.
The merger is in part a defensive move in the face of Hong Kong's relentless success. Hong Kong
Exchanges & Clearing Ltd., known as HKEx, has attracted the world's biggest initial public offerings
this year, and looks on target to finish up 2010 as the world's top exchange for funds raised through
IPOs for the second year running. Its listed market value is greater than any other exchange in the
world.
It has China to thank for that. Hong Kong depends on the mainland as the source for most of its
share offerings, including the Agricultural Bank of China Ltd. IPO that made history this past July as
the world's biggest ever. Of the USD22.1 billion AgBank raised, USD12 billion was in Hong Kong.
China is indirectly bringing listings to Hong Kong as well. Companies from Russia, France and
Mongolia that raised cash on the Hong Kong exchange this year did so because of their ability to sell
themselves as proxies for China's economic growth.
Singapore alone lacks Hong Kong's mainland Chinese hinterland. But a combined Singaporean and
Australian exchange—call it SAX—does create a new attraction that could make up for it. Liquidity is
one area where this shines through. The two exchanges together accounted for about USD6.7 billion
in average daily trading volume last month, within striking distance of the USD9.49 billion that Hong
Kong generated. Big investors like liquidity, and so do companies looking to raise funds. You might
not attract an AgBank to list on SAX, but one analyst said you might attract a company like pan-
Asian life insurer AIA Group Ltd., the Asian arm of American International Group Ltd. that just
raised USD17.8 billion on HKEx.
An exchange that opened at 9 a.m. in Sydney and closed 11 hours later at 5 p.m. in Singapore
would also look fairly attractive compared to Hong Kong's four-hour trading day. Even an effort by
HKEx to extend trading to 5½ hours is meeting resistance from traders loath to part with their
customary two-hour lunch.
Read more…
SGX has already been more aggressive than HKEx when it comes to embracing new technologies
such as dark pools and high-frequency trading. After an expected upgrade to its systems next year,
Hong Kong's latency—the time it takes to executive a trade—will still be about nine milliseconds. By
12. next year, SGX will offer trading about 100 times faster than that, according to J.P. Morgan. And it
has joined forces with Chi-X Group Ltd. to run a dark pool that allows investors to trade large
blocks of shares anonymously, even as dark pools have been slow to gain traction in Hong Kong.
(HKEx executives say other factors apart from latency, including government duties on trades and
minimum trade sizes, make high-frequency trading less appealing in Hong Kong.)
HKEx's new chief executive, Charles Li, is pushing innovation on one front, in new products linked to
offshore trading of China's currency, the yuan. One of his projects is to create yuan-denominated
stock listings in Hong Kong as soon as next year that would capitalize on enthusiasm among global
investors for the yuan's long-term prospects. However, demand for the shares, whose value would
be determined more by their underlying assets than the currency in which they are traded, remains
an unknown.
Hong Kong is also trying to attract more resource-related listings by revising its listing rules in ways
that allow mining companies to list more easily than in the past. But a SAX that incorporates trading
in Australia's many commodity companies would boast a critical mass in resource plays that would
make it a go-to exchange for other listings in the sector, depriving Hong Kong of a profitable new
source of business.
Hong Kong may not be in danger of losing its position as the main entry for foreign stock investors
into the China market. But if it isn't careful, a nimbler competitor in Singapore may soon make that
position less profitable.
Source: The Wall Street Journal Asia
ASIA NEEDS A MARKET FOR BOURSE OWNERSHIP, BUT THAT‟S A LONG WAY OFF
For a brief, happy moment earlier this week it looked like Asian bourses were in for a desperately
needed shake-up. Singapore Exchange (SGX) unveiled an USD8.3-billion bid for ASX, operator of
Sydney's stock market. Talk inevitably turned to prospects for consolidation elsewhere. Everyone
spoke too soon. The SGX-ASX deal already is facing stiff political resistance and mounting
skepticism over whether it will go through. Analysts (and journalists) are waking up to the reality
that other Asian mergers would face dim prospects, too. Yet rather than merely take that
pessimism as a given, it's important to pinpoint exactly why exchange consolidation remains so far
off.
A wave of exchange mergers should by rights be the big Asian story of the day. The tide is sweeping
the West, both domestically (a tie-up between the Chicago Mercantile Exchange and Chicago Board
of Trade in the U.S., for instance) and internationally (NYSE and Euronext; Nasdaq and OMX;
Deutsche Boerse and International Securities Exchange). True, these mergers have delivered
somewhat less than some might have hoped. The dream of creating a single exchange across the
Atlantic—where one can start trading shares in, say, a Dutch company at 9 a.m. in Paris and finish
13 hours later at 4 p.m. in New York—has proven elusive. Global bourses still are hostage to local
regulators, so the theoretical big pools of capital these mergers have dangled in front of listing
companies and traders have turned out to be just as fragmented as before, in practice.
But that doesn't mean the exercise is pointless. The merged bourses claim some success trimming
costs, although savings are limited by the fixed costs of adhering to local regulations. More
significantly, merged bourses are becoming more inventive at generating revenue in a world where
online trading platforms of many sorts are biting into their traditional business of offering a venue
for trading financial instruments. NYSE Euronext, for instance, is increasing its revenues by selling
technology to other, smaller exchanges.
Put another way, what is unfolding in the West is not a trend toward consolidation per se, but
rather the development of a vibrant market in exchange ownership. This includes Western
exchanges that are not consolidating. The London Stock Exchange has remained aloof despite
attempts to buy it. So have others, such as the Chicago Board Options Exchange. "I look at it and I
say, 'Is it bigness that's the answer, or is it growth that's the answer?'," CEO William Brodsky told
Reuters in July. "I'd rather have growth than just bigness for the sake of it." Investors will have
ample opportunity to judge whether he and others are right about that.
Read more…
Not so in Asia, however. As a region that is experiencing massive capital inflows, and has enormous
economic growth potential, Asia ought to be the epicenter of innovation and competition among
bourses trying to direct capital most efficiently to those who need it. Instead, the region has seen a
few half-hearted attempts at "cooperation" among various exchanges and little else.
The facile explanation for this is that Asian governments view their stock exchanges as national
treasures that cannot be allowed to fall into the hands of foreigners. ASX labors under a regulatory
15% cap on foreign ownership, for instance. Conventional wisdom holds that a foreign takeover
13. attempt of almost any Asian bourse would die a political death. But NYSE-Euronext faced political
challenges, too—Jacques Chirac, for one, thought the Parisian exchange should have merged with
the Frankfurt bourse. That deal went ahead. Something more than nationalism is at work in Asia.
The real explanation is that many Asian governments still have not made their peace with global
capital flows. This is most obvious, surprisingly enough, in those markets that are most developed:
Singapore, Australia and Hong Kong.
Politicians in Canberra worry that a foreign owner could disadvantage the Sydney market by,
perhaps, encouraging more companies to list in Singapore than in Australia. Hong Kong's
government believes the territory's exchange is too important to be left in anyone else's hands, and
so it retains for itself the right to appoint half the board. The Monetary Authority of Singapore owns
nearly 25% of SGX, though it doesn't vote those shares.
In effect, policy makers don't trust global capital markets to fund successful companies in a healthy
economy (Australia); or to recognize the rule-of-law and other benefits of setting up financial shop
in the world's two freest economies (Hong Kong and Singapore). In the face of such distrust, excited
talk of bourse consolidation is premature.
This governmental reluctance to set exchanges free is a problem that will grow more serious with
time. Aside from consolidation, Asian exchanges face critical questions. To rely on China or to
diversify efforts to attract IPOs further afield? To compete against or to embrace new electronic
platforms and so-called black pools of secretive hedge-fund money? And on and on. A vibrant
market for ownership could spur more creative thinking in the face of such challenges.
Source: The Wall Street Journal Asia
IMF CALLS FOR HIGHER ASIAN CURRENCIES
Asian countries should allow their currencies to rise and withdraw stimulus measures as they
grapple with surging capital inflows that threaten to fuel inflation, the International Monetary Fund
said last week. Asia, including Japan, is likely to grow 8% this year, faster than the 7% estimated in
April, but the region's economies need to rebalance their growth toward stronger domestic demand,
as imports of goods and services by developed nations aren't likely to return to pre-crisis levels
anytime soon, the IMF said in its latest Regional Economic Outlook for the Asia-Pacific.
"In view of the strong economic expansion that is under way, and emerging signs of inflationary
pressure in some economies, Asia has reached the threshold to normalize policy stances across the
region," the IMF said in the report. "Greater exchange-rate flexibility will be an important
component of policy tightening."
Asian nations have been rushing to deal with rapid capital flows as investors shift away from the
economic uncertainties of the U.S. and Europe. The shift has shaken currency markets and
prompted several Asian nations to intervene to keep their currencies from rising in value.
Meanwhile, China—which bears the brunt of global scrutiny over its currency controls—has let the
renminbi rise but still faces pressure to let its currency float more freely.
Asian countries have comprehensive tools to tackle capital inflows, Mr. Anoop Singh, director of the
IMF's Asia and Pacific Department, has said. "The challenge is to channel these inflows beyond the
financial market, such as to infrastructure projects.".
Read more…
The capital inflows haven't gone beyond their peak levels before the 2008 financial crisis and the
IMF doesn't expect governments to erect capital controls, Mr. Singh said. Still, further tightening of
monetary conditions in Asia may be needed, including increased exchange-rate appreciation, the
IMF said in the report.
A faster withdrawal of fiscal stimulus would also help guard against the risks of overheating and a
buildup of financial imbalances. "Despite the recent tightening, financial conditions generally
remain accommodative in many emerging Asian economies compared with before the crisis
(especially in China, the Philippines, and Thailand), as the policy easing of 2009 has not been
completely unwound, equity valuations remain elevated, and bank credit continues to recover," the
report said.
The IMF said managing capital inflows is another major policy challenge for Asia, as U.S. monetary
conditions are likely to remain supportive for an extended period and global interest rates may stay
low.
Currencies such as the Australian dollar, Thai baht, Indian rupee and Singapore dollar have racked
up substantial gains in the past two months. The Chinese yuan has also appreciated but hasn't kept
pace with its regional peers. The IMF said the yuan "remains substantially below the level consistent
with medium-term fundamentals," citing China's rapid pace of foreign-exchange reserve
accumulation, its large trade surplus and its productivity.
14. Source: The Wall Street Journal Asia
CHINA SHIFTS ATTITUDE ON GROWTH
Signs are building that China's government is retreating from the single-minded focus on high
growth that pulled it through the global financial crisis, and is instead emphasizing structural
changes that could contribute more to expansion and jobs in the struggling West. China's gross
domestic product rose 9.6% from a year earlier in the third quarter, slowing from 10.3% growth in
the second quarter, official data issued last week show, as the government withdrew stimulus and
took measures to cool sectors such as the property market.
How China manages its economy is an issue of global concern, with the nation representing one of
the few sources of strong growth. While the recovery produced by the nation's huge stimulus plan
has been welcome, many of its trading partners still want to see a change of course. The U.S., for
instance, has pushed for freer domestic markets and policies to boost incomes, so Chinese
consumers can buy more imported goods. Particularly contentious is China's exchange-rate policy:
Many countries complain that China, by intervening to hold down the value of its currency, supports
its own exporters to the detriment of others.
China's government has repeatedly said it will do more to boost consumer spending and cut its trade
surplus, but those pledges haven't been backed up with many concrete changes. There are now
signs that such priorities have gotten more backing, as authorities allow the recent boom in heavy
industry and investment to cool. Data published last week showed that the rebound in growth,
which has been largely driven by state-backed credit and investment, continued to ease in the third
quarter of 2010. The expansion in gross domestic product slowed to 9.6%, from 10.3% in the second
quarter, as gains in capital spending fell back to levels last seen before the launch of the stimulus
program in late 2008.
But even before those data were published, authorities had signaled that the ultra easy policies
adopted in the crisis years are on their way out. China's central bank raised benchmark interest
rates earlier last week for the first time since December 2007. China's currency is now rising at its
fastest pace against the dollar since 2008.
Read more…
The apparent change in course for the world's fastest-growing major economy came just after the
ruling Communist Party reached agreement on economic priorities and the political succession in
coming years, and many observers see a new approach at work. "We think the government will
tolerate a lower rate of growth but will aim to significantly improve the structure of the economy,"
said Deutsche Bank economist Jun Ma. The interest-rate increase—unusual because it came at a
time of slowing growth—"is a very important signal that a policy consensus has been reached," he
said.
China's top Communist Party leadership closed a high-level conference Monday last week with call
for "accelerating the transformation of the nation's economic development pattern" and "putting
more emphasis on securing and improving people's livelihood to promote social equality and
justice." A communique said those priorities will be inscribed in the nation's next five-year plan,
which is now being drafted for publication next year.
With the next summit of the Group of 20 major economies just weeks away, China is under
increasing international pressure to run its economy in a way that supports recovery elsewhere. And
the "transformation" leaders endorsed refers to efforts to make Chinese economic growth less
driven by exports to the West and the loan-fueled investment that has been at the center of its
stimulus plan.
Though China helped lead the world economy out of the worst of the crisis, the government is now
dealing with some of the costs of the drive to keep growth high: huge debts of uncertain quality in
the state-owned banking system and a bubbly housing market that is fueling urban discontent.
Officials hope the consumer spending of a rising middle class will provide a more sustainable source
of growth for the future. A consumption-driven Chinese economy would probably grow somewhat
slower, analysts say, but be less prone to boom-and-bust cycles and shocks from abroad—a trade-off
many see as worth making.
"To emphasize domestic demand is a firm policy of the Chinese government, and this is a
comprehensive policy from all directions," deputy central bank governor Yi Gang said at the
International Monetary Fund's annual meeting earlier this month. He said the government will help
drive domestic consumption through supporting urbanization; reducing income inequality;
improving social security, health care and education; and boosting infrastructure in rural areas.
The leadership's emphasis on structural overhauls over stimulating high growth rates is based on
confidence in the economy's prospects, government advisers say. "We're not worried about China's
15. short-term growth prospects. China has great domestic growth drivers," such as the urbanization of
its rural population, said Hu Angang , an economist at Tsinghua University who has advised the
government on its five-year plans.
But the new direction also recognizes the growing consensus among academic economists that
China is unlikely to sustain its recent 10%-plus growth rates as its economy becomes increasingly
large and mature. The effects of the financial crisis also continue to weigh on the U.S., Europe and
Japan, which means their demand for Chinese exports is unlikely to grow as robustly in the future
as in the past.
"Based on fundamentals, it seems likely that China's growth rate will ease. Growth in the coming 10
years is probably going to be less than in the previous 10 years," said Louis Kuijs, an economist at
the World Bank's Beijing office. "The government could boost investment to offset those
fundamental forces, but it's deciding not to do that."
The priorities for the next five-year plan that the leadership presented this week will "help us
adjust our economic structure at a faster pace, raise the quality and efficiency of economic
development, and improve people's livelihood," Sheng Laiyun, spokesman for the National Bureau of
Statistics, said Thursday. The next five-year plan will de-emphasize old-style quantitative targets,
he said, which will help "dilute" some of the negative impact those have brought in the past.
Skeptics note that the latest economic data provide little evidence that China has shifted away
from a free-spending stimulus policy. "Strong investment supported by easy money, record exports
underpinned by a depreciating yuan, and retail sales that are driven by incentives to spend
represents more of the same, not a shift in the growth model," said Tom Orlik, an analyst in Beijing
for Stone & McCarthy Research Associates.
The slowdown in growth has so far been very modest, with industrial output—an important indicator
in China's manufacturing-heavy economy—still up 13.3% from a year earlier in September, after
August's 13.9% rise. A sharper deterioration could test how willing the government is to let growth
find a natural floor. On the other hand, a pickup in broader inflation—the consumer price index was
up 3.6% in September after a 3.5% gain in August—helps the argument for higher interest rates and
a stronger currency.
Even if the government succeeds in its goal of consumer-driven Chinese economy, there are
questions over how much support to the world economy would be delivered even by the most free-
spending of Chinese households. "Even in a best-case scenario, however, China will provide only a
partial offset to the weaker demand from advanced economies, given the relatively small size of
both overall Chinese consumption and Chinese imports of consumer goods," the International
Monetary Fund said in its latest assessment of the world economy.
Source: The Wall Street Journal Asia
BRAZIL EYES ROYALTY RATES CHANGE
Brazil's government will likely wait at least until the next administration takes office in 2011 before
changing a mining law and discussing a possible royalty hike. Both moves could potentially
deteriorate the investment climate in Brazil's mining industry. Increased royalties pose a threat to
the bottom line of Vale, the world's largest iron ore exporter, and could constrain growth in its iron
ore production. President Luiz Inacio Lula da Silva wants to consult the president-elect on the bill
designed to heighten competition in the mining sector. That means it is unlikely to be sent this
year.
Under the proposed law the government would have more discretion in approving new mineral
projects in line with its priority of adding more value domestically rather than exporting raw
materials. It would also improve regulatory oversight and reduce the time companies had to
develop mines to discourage speculation in mineral properties.
Under one of the current proposals, companies would be charged a lower royalty if they promoted
regional or industrial development or conservation projects. Those companies that provided no
"value-added" would be charged the "full rate," but the increase has not yet been defined. An
official has insisted the intent was not to impose an excessive burden on companies that already
faced high taxes in Brazil. "Nobody wants to kill off Brazil's mining industry; we want to find a
reasonable rate," he said.
Currently royalties are set at 2 percent for iron ore and 1 percent for gold over net revenues.
Industry leaders have warned that higher royalties and tighter regulatory oversight restrictions
could act as a disincentive to fresh investments.
Source: www.miningweekly.com
16. RETHINKING THE LIGHT BULB WITH OLED TECHNOLOGY
At the Korea Electronics Show earlier this month, big-name companies like Samsung Electronics Co.
and LG Electronics Co. showed off new cellphones with OLED screens. One of their suppliers,
Novaled AG of Germany, used its booth to instead show OLED-based lights, including a prototype of
a desk lamp made of several cellphone-sized panels put together. Philipp Wellmann, an Asia
manager for Novaled, said he expected such products to reach stores in about two years. "We are
getting to the stage where design and prototyping is possible," Mr. Wellmann said.
The world‘s three major lighting players Royal Philips Electronics NV, Siemens AG's Osram-Sylvania
and General Electric Co. are also developing OLED products. They hope it grabs a slice of the
roughly USD90 billion annual lighting market, according to research firm Strategies Unlimited. OLED
technology uses less energy than incandescent bulbs and, in laboratory use, is nearly as efficient as
fluorescent. The color of the light OLED produces is closer to natural light than either of the two
dominant bulb technologies. The OLED lights can be both flat and flexible, even placed in glass that
is transparent when the light is off.
GE's research unit is developing a manufacturing processes for OLED lights in which the organic
material is placed on a substrate in a roll-type process similar to the way a newspaper is printed.
GE is aiming to reduce manufacturing costs. It also needs to increase OLED lifespans to 5,000 hours
per product before it can consider manufacturing in bulk.
Read more…
OLED stands for organic light emitting diodes and is similar in name to another technology, LED or
light emitting diodes, that has revolutionized the lighting industry over the last decade. Both
technologies are semiconductors and they follow some of the same manufacturing techniques and
falling-cost economics of the computer chip industry.
But the two technologies differ in their structure and the type of light they produce. LEDs, which
are seen in products ranging from flashlights to giant video billboards, are discrete points of light,
or basically very small light bulbs. Looked at directly, they glare. OLED-based lights emit light
evenly across a thin panel of glass, producing more diffuse light than an LED does.
Source: The Wall Street Journal Asia
POLITICS
MONGOLIA RANKED 116TH
AMONG 178 NATIONS IN CORRUPTION PERCEPTIONS INDEX
Mongolia has been ranked 116th
among 178 countries in the latest Corruption Perceptions Index
released by Transparency International on Tuesday. However, at 2.7 its score has remained the
same as in 2009.
The index reveals that many governments around the globe are strongly affected by corruption.
Nearly 75 percent of the 178 countries included scored below 5 on a corruption perception scale of
0-10, with 0 being perceived as highly corrupted to 10 being perceived as having low levels of
corruption. Denmark, New Zealand and Singapore tie for first place with scores of 9.3, meaning
they were seen as having the least amount of corruption, the organization said. Seen as the most
corrupt governments were Afghanistan and Myanmar, both with scores of 1.4, and Somalia, with a
score of 1.1.
Source: www.thirdage.com
ELBEGDORJ BLASTS LEADERS-PEOPLE DIVIDE AND MISTRUST
Much of President Ts. Elbegdorj‘s long speech at last week‘s ceremony to observe the 20th
anniversary of Mongolia‘s adoption of parliamentary democracy was devoted to corruption in
Mongolian public life, insensitivity of political leaders to people‘s needs, and their arrogant refusal
to be accountable to the electorate. The State apparatus‘s unabashed self-service, instead of
serving the people, is getting out of control. Most of what the government produces is reaped by
the government itself.
Referring to leading politicians‘ claims that they listen to the people, Mr. Elbegdorj read out from a
letter he had received from a citizen: ―They listen to what they want to hear, advise what they
please to advise and take their own thoughts as the only ultimate truth.‖
The agency to combat corruption has become an agency to comfort corruption and MPs‘ failure to
decide on dismissing the Anti-Corruption Authority chief Sangaragchaa even in three months has
caused anger and frustration among people and damaged the reputation and honor of the State.
Parliament is a bridge of accountability between the people and the Government, but it has been
made into a screen, a wall of rock between the two, the President said.
He said he has no wish to meddle in government actions, but only wants to fulfill his constitutional
17. obligations. A country falls apart as much from aggression from outside, as from corruption, red
tape and unlawful practices at home. His efforts to cooperate with Parliament and the Government
have been met with constant resistance. He still hopes for cooperation and is ―ready to walk in
front and hold the fire‖.
Asserting that ―there is no civil society without civil participation‖, Mr. Elbegdorj said the euphoria
created at ―the return to Ulaanbaatar, thanks to the democratic revolution, of the powers and
rights of the Mongolian people that had been kept in Beijing during the Manchu period and in
Moscow during communism‖ has evaporated as they ―are now stuck in the pockets of Parliament
and the Government‖.
He was confident of a bright future for the country and its people. The greatest strength of a
society lies in people who believe in themselves, who share common values and interests, who
appreciate the essence of a free society and who know their positions in that free society, he said.
Source: The President‘s Office
PROSECUTOR-GENERAL PROCLAIMS ANTI-CORRUPION CHIEF AS “CRIMINAL SUSPECT”
Unhappy and frustrated by Parliament‘s failure to act in three months on its request to dismiss the
Anti-Corruption Authority (ACA) Chief Ch.Sangaragchaa and his deputy, Mr. D.Sunduisuren, the
State Prosecutor-General‘s Office (SPGO) last week took the extraordinary step to proclaim both
officials as ―suspects in a criminal case‖. This is expected to put pressure on MPs to resolve the
issue, though there is no clarity on what the next step in the saga will be.
Asked if MPs are unwilling to be seen as voting against a powerful man like the ACA chief,
Parliament Speaker D.Demberel said an MP who took his job seriously should not be afraid of such
things. As elected representatives of the people, they should be responsible and do what is best for
the nation and according to Constitutional provisions. He felt no matter what Parliament decides on
the Prosecutor-General‘s original request to dismiss Mr. Sangaragchaa, following the latest
proclamation, an investigation against the ACA head would be started in the legal framework.
Mr. B.Bat-Erdene, MPRP MP and Chief of the Standing Committee on Justice, which is perceived as
being behind the delay and which has insisted on secret voting on the issue, said he did not know
why the SPGO took this present step. A full session of Parliament was to discuss the issue last week
but could not do so as the Prosecutor-General was outside the country, he said.
Source: English.News.mn
STATE PROPERTY COMMITTEE IS “RESPONSIBLE FOR MORE THAN PRIVATIZATION”
Established in the days of the transition to a market economy, the State Property Committee (SPC)
has outlived its utility in the eyes of many who want it disbanded before it becomes totally
irrelevant and an anachronism. Others feel its role should change, and it can be made responsible
for arranging public-private partnership under the Concession Law. Its Deputy Chief, Mr.
O.Erdenebulgan, however, has dismissed all such suggestions and said it has too much on its plate.
―Privatization of state property is not our only responsibility,‖ he has said and added, without going
into details, ―We have other work, too, and they are increasing.‖
Regarding selecting a team to restructure and run the Mongolian Stock Exchange (MSE), he said the
bids of the South Korean Stock Exchange and a joint consortium of NASDAQ and MOSDAQ had to be
rejected as these ―did not meet our criteria‖. There are ―some favorable points in the London
Stock Exchange proposal, so we are talking with them‖. A team from there is studying MSE
operations.
Mr. Erdenebulgan told media the SPC has considerable achievements in strengthening corporate
governance. All state-owned economic entities now publish their financial details and accounts on
the website. Their planned purchases and expenses are also announced in advance. Some state-
owned companies have 1-3 independent members from civil organizations on their representative
managing councils. The SPC selects them in order to ensure openness.
Source: Ardiin Erkh
MPs APPROVE THEIR SALARY RAISE PROPOSAL AT FIRST DISCUSSION
With 84.1% of MPs present supporting it, the proposed salary raise of State high officials, including
MPs, was approved at its first discussion in Parliament last week. The Standing Committee on State
Structure had earlier unanimously agreed that the voting at the first discussion would be enough for
the proposal to become law. The salary of judges, prosecutors and officials of the Anti-Corruption
Authority will also increase.
Source: News.mn
ABOUT 100 MONGOLIANS SPENT USD7 MILLION TO BUY MMC SHARES AT HONG KONG
18. Mr. D.Achit-Erdene, President of the Mongolian International Capital Corporation (MICC), which
acted as a broker at the Mongolian Mining Corporation (MMC) IPO, says 1% of the shares on offer had
been kept for Mongolian citizens. ―We were surprised by the strength of the demand. The 1% meant
USD7 million, which is quite a large figure, but we received enough orders to stop booking after two
days,‖ he said. ―We then submitted fresh applications to the secondary market.‖ His rough guess is
that about 100 Mongolians bought MMC shares at the IPO.
Source: Ardiin Erkh
COURT TURNS DOWN APPEALS IN TWO HIGH-PROFILE CASES
The Ulaanbaatar High Court last week heard appeals in two high-profile cases and in both cases
upheld the sentence passed by a lower court. Ts.Jargalsaikhan, former advisor of the Foreign
Relationship Department in the Parliament Office, had been sentenced to 17 years‘ rigorous
imprisonment for treason and passing state secrets. The Central Intelligence Service charged him
with sending to his contacts in China by e-mail information about the Russian Parliament Speaker‘s
official visit to Mongolia. In the other case, former State-Secretary of the Ministry of Industry and
Trade, D.Surenkhor, had been sentenced to four years of simple imprisonment for embezzling or
otherwise causing the state a loss of altogether MNT91.3 million.
Source: English.News.mn
CANADIAN MPs WANT NAMBC INPUT ON COOPERATION WITH MONGOLIA
The Canadian House of Commons Standing Committee on Foreign Affairs and International
Development has asked Mr. Steve Saunders, President of The North America-Mongolia Business
Council (NAMBC), to meet with them to discuss cooperation between the Canadian Public Service
Commission and the Mongolian Civil Service Council, as outlined in the MoU signed during Prime
Minister S. Batbold‘s visit to Ottawa last month.
Source: NAMBC
MONGOLIA GETS EITI „COMPLIANT‟ STATUS
Mongolia and Ghana have received ―compliant‖ status from the Extractive Industries Transparency
Initiative, a corporate, civil society and government-composed group devoted to increasing
financial disclosures in the oil, gas and mining industries. The group requires an independent
assessment of a country‘s disclosure and reporting practices in order to become a compliant state.
Mr. Peter Eigen, chair of EITI, said in a statement, ―Since committing to the EITI in 2005, Mongolia
has published payments from its extractive sector in three excellent EITI Reports…This allows all
stakeholders in Mongolia to monitor one of the most important sources of government revenue, and
to monitor an industry that is transforming Mongolia‘s economy.‖
Source: The Wall Street Journal blogs
RUMOR HALTS BLOOD DONATION, RESERVES COME DOWN
Blood donation has almost stopped since rumors circulated that 14 patients received transfusion of
blood from a HIV-infected donor. The Ministry of Health and officials of related organizations have
denied any truth in the rumor, insisting that the infection was detected before the blood could be
used, but donors have chosen to stay away.
The National Center for Blood Analysis (NCBA) has had only 4 or 5 blood donors on any day last week
in place of the usual 100. The result is that the blood reserve has now come down to meet three
days‘ average demand. Medical officials said registered donors are not responding to their request
to come and give blood.
Source: Ardiin Erkh
GOVERNMENT PARTIALLY LIFTS BAN ON ANIMAL IMPORTS FROM CHINA
The Government has lifted its comprehensive ban on import of breeding animals and fully processed
products of animal origin from China. The only restrictions now remaining are that the proposed
imports must be from areas certified to be free of any infectious disease in animals, that they
should come only through specified ports and only by assigned vehicles. The ban on import from
China of all kinds of birds, non-breeding ungulates, any raw material of animal, and unprocessed
and semi-processed products continues to be in force.
Source: Undesnii Shuudan
MONGOLIAN FOOD INDUSTRY CELEBRATES 80TH
ANNIVERSARY
19. The Ministry of Commerce and Industry was established in 1930 and food industries were brought
under it. This was a significant decision that helped develop a national food industry in Mongolia,
following a consolidated policy. The Mongolian Food Association has ambitious plans to mark the
80th
anniversary of this momentous event, in cooperation with the Ministry of Food, Agriculture, and
Light Industry. There will be a forum where representatives of the General Customs Office, the
Standardization Agency, and the Unfair Competition Regulatory Agency will join producers to
discuss ways of improving the supply system of raw materials. An open day was held in June in
cooperation with the City Mayor‘s Office, the Ministry of Social Welfare and Labor, to show people
how the food processing industry operated. Several other events have been, or will be, organized in
the provinces as also for specialized sections of the industry.
Source: Udriin Sonin
GOVERNMENT SAYS IT HAD NO LINKS WITH INTERNATIONAL SYMPOSIUM
The Mongolian Government has in a statement dissociated itself from the recent two-day
international symposium on the 1913 Treaty between Mongolia and Tibet that was organized in
Ulaanbaatar by the editorial board of the journal Independence of the National Intelligence
Academy of Mongolia. The Government has said it was not involved in any way with the symposium,
nor does it have any position on the issue it discussed.
The symposium was attended by 27 experts from Mongolia, India, the USA, South Korea, Russia,
Canada, Taiwan, Japan, Holland and Germany, who presented papers on a Treaty of Friendship and
Alliance signed in 1913 between Mongolia and Tibet. Most of them argued that the treaty was a
valid document according to international law and was accepted as such by most countries, thus
asserting the sovereignty of both signatories.
Source: Tibet.net
DUNDGOBI GOING GREEN
The governor of Dundgobi province, Dr. D.Chandmani, has said that effective implementation of
several projects so far, and with work expected to begin shortly on several more, the ―greening‖
of the area is no longer a dream. Thousands of trees are growing well in Mandalgobi town, keeping
desertification at bay. The Central Bank and Saving Bank have joined NGOs, schools and others in
the work. More trees will be planted but the next phase of the work will see the introduction of
seabuckthorn. A children‘s park is now under construction and it will have trees and gardens. The
town‘s central park will also get coniferous and decorative trees. Scientists in the Institute of
National Development are preparing a long-term policy for the development of the province, Dr.
Chandmani said.
Source: Zuunii Medee
DINNER IN ARLINGTON, VIRGINIA, USA TO RAISE FUNDS FOR MONGOLIA SOCIETY PROJECT
The Mongolia Society and the Young Mongolian Professionals Association (YMPA) are holding a
fundraiser roundtable with dinner and entertainment on November 11 in Arlington, Virginia, USA.
Proceeds will support the Mongolia Society‘s project to publish new books on Mongolian history and
culture and YMPA‘s creation of a nationwide database of young Mongolian professionals working in
the US.
The theme of the evening‘s roundtable is ―US-Mongolian People to People Relations—Growing our
Ties.‖ Panelists include Mrs. Ann La Porta, wife of the former US Ambassador to Mongolia, Mr.
Jeffrey Davidson of Rio Tinto, Ms. Sas Carey of Vermont‘s Nomadicare, Mr. Dan Plumley of the
Massachusetts-based Totem Project for Mongolia‘s reindeer people, and Mrs. Dash Nyamsuren from
the Mongolian School of the National Capital Area.
Source: NAMBC
ANNOUNCEMENTS
MONGOLIA INVESTMENT SUMMIT, NOVEMBER 23-25, LONDON
The Mongolia Investment Summit on 23-25 November in London will be bringing together companies
operating in Mongolia with the Mongolian government to discuss the opportunities and challenges
surrounding investing in this frontier economy. Those registering before 5 November will save up to
£135.
Delegates will:
• Learn the best entry strategies into Mongolia
20. • Access partnership and investment opportunities
• Gain first hand insights into regulations and policies affecting foreign investment
• Understand how frontier market investment can work for you
• Get a clear picture of how the government is working to improve Mongolia's business
environment.
Among the speakers will be:
• Andrew Harding, Chief Executive, Copper, Rio Tinto on the importance of emerging markets in
meeting global commodity demands.
• Robert Friedland, Executive Chairman, Ivanhoe Mines on how they worked with the Mongolian
government to come to an agreement on the Oyu Tolgoi mine, and how the mine will be developed.
• Kevin Bortz, Director, Natural Resources, EBRD about Mongolia's economic outlook and what
remaining reforms need to be made.
• G. Tsogtsaikhan, Director, MonAtom LLC about where the opportunities for Mongolia's uranium
mining are found.
• T. Amarzul, Executive Director, Petro Matad LLC on the development of Mongolia's petroleum
resources, and why they chose to list with LSE AIM.
• Daniel Broby, Chief Investment Officer, Silk Invest about their appetite for Mongolian investment,
what type of projects they are seeking and what restrictions and risk perceptions they have.
More information can be had at www.terrapinn.com/mongolia.
___________________________________________
“BSPOT" on B-TV
BTV (Business TV) now telecasts a 10-minute English-language news program called BSPOT every
evening from Monday to Friday at 21:30, taking most of the stories from the BCM NewsWire.
___________________________________________
“MM TODAY” on MNB-TV
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with
BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is
scheduled for 21:15 tonight. Tune in to watch this program that reports stories from today‘s BCM
NewsWire.
___________________________________________
NEW POSTINGS ON BCM WEBSITE'S 'PRESENTATIONS' AND 'MONGOLIAN BUSINESS NEWS'
The speaker presentations which were presented at the Mining Investment Summit 2010 in Hong
Kong, October 14, 2010, are now posted on BCM's website (www.bcmongolia.org) in the "Resource,
Presentations " section for your review.
There are 17 presentations made by Mongolian and foreign officials to the more than 200 attendees
at the highly successful conference.
We are now posting some news stories and analyses relevant to Mongolia on the BCM website's
‗Mongolian Business News‘ as they come, instead of waiting until Friday to put them all together in
the weekly NewsWire. The NewsWire will, however, continue to be issued on Friday, and will
incorporate items that are already on the home page, so that it presents a consolidated account of
the week‘s events.
SPONSORS
22. INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
September 30, 2010 *10.6% [source: NSOM]
*Year-over-year (y-o-y)
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
CURRENCY RATES – October 28, 2010
Currency name Currency Rate
US dollars USD 1,286.52
Euro EUR 1,775.91
Japanese yen JPY 15.69
British pound GBP 2,029.49
Hong Kong dollar HKD 165.82
Chinese yuan CNY 192.49
Russian ruble RUB 42.05
South Korean won KRW 1.14
23. Disclaimer: Except for reporting on BCM‘s activities, all information in the BCM NewsWire is
selected from various news sources. Opinions are those of the respective news sources.