1 FOREIGN RELATIONS OF MONGOLIA’S ROAD TRANSPORT SECTOR BROADENING WWW.MONTSAME.MN PUBLISHED:2019/02/21      2 MONGOLIA EXPRESSES READINESS TO CONTRIBUTE TO STRENGTHENING ASIA-EUROPE COOPERATION WWW.MONTSAME.MN PUBLISHED:2019/02/21      3 OYU TOLGOI FUNDED 35.1 KM ROAD OPENS IN KHANBOGD WWW.GOGO.MN PUBLISHED:2019/02/21      4 POLYMER BITUMEN TO BE DOMESTICALLY PRODUCED WWW.MONTSAME.MN PUBLISHED:2019/02/21      5 KHURELBAATAR CHIMED: 319 ENTITIES DREW LOANS FROM TWO FUNDS WWW.ZGM.MN PUBLISHED:2019/02/21      6 CONSTRUCTION OF TAVANTOLGOI-GASHUUNSUKHAIT ROAD TO BE INTENSIFIED WWW.MONTSAME.MN PUBLISHED:2019/02/20      7 OVER 30 MEASURES PLANNED FOR REDUCTION OF ENVIRONMENTAL POLLUTION WWW.MONTSAME.MN PUBLISHED:2019/02/20      8 MONGOLIA SAYS IT EARNS OVER 169 MLN USD FROM COAL EXPORTS TO CHINA IN JAN WWW.HELLENICSHIPPINGNEWS.COM  PUBLISHED:2019/02/20      9 RUSSIA’S GAZPROM TO START CHINA GAS PIPELINE BY DECEMBER 1 WWW.RT.COM PUBLISHED:2019/02/20      10 MONGOLIA'S FOREIGN TRADE UP 41.6 PCT IN JAN. WWW.XINHUANET.COM PUBLISHED:2019/02/20      УГСАРМАЛ ОРОН СУУЦНЫ ДУЛААЛГАД ЗОРИУЛЖ 12.7 ТЭРБУМ ТӨГРӨГИЙГ УЛСЫН ТӨСВӨӨС ГАРГАХААР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/21     2018ОНД ЦАГААН БУДАА , ЭЛСЭН ЧИХЭР , ТАХИАНЫ МАХНЫ ИМПОРТ 24-32 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ДЦС IV: 2018 ОНД НИЙТ АШИГ 4.7 ДАХИН ӨСӨЖ , 4.48 ТЭРБУМ ТӨГРӨГ БОЛСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ТУСГАЙ САНГУУДААС ГАРГАСАН ЗЭЭЛИЙН 100 ОРЧИМ ТЭРБУМ ТӨГРӨГ ХУГАЦАА ХЭТЭРСЭН ӨР БОЛЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     МОНГОЛ УЛСЫН БОРЛУУЛАЛТЫН МЕНЕЖЕРҮҮДИЙН ИНДЕКС СҮҮЛИЙН 12 САРД АНХ УДАА УНАЛТЫН БҮСЭД ШИЛЖИВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     2018 ОНД ХАМГИЙН ЧИНЭЭЛЭГ БҮЛГИЙН ХЭРЭГЛЭЭ ЯДУУ БҮЛГИЙНХНЭЭС 5.1 ДАХИН ИХ БАЙВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     ХОВД ГОЛД ОСОЛДСОН 6 НАСТАЙ ХҮҮХДИЙН ЭРЛИЙГ ЗОГСООЛОО WWW.MONTSAME.MN НИЙТЭЛСЭН:2019/02/21     ДБНХ-НООС П.ОРХОНЫ БАРИЛДАХ ЭРХИЙГ 4 ЖИЛЭЭР ХАСАВ WWW.MONTSAME.MN  НИЙТЭЛСЭН:2019/02/21     УУХҮЯ: II САРЫН БАЙДЛААР НИЙТ НУТАГ ДЭВСГЭРИЙН 5.6 ХУВЬД АШИГТ МАЛТМАЛЫН ЛИЦЕНЗ ОЛГОСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/20     300 ОРТОЙ ТӨРӨХ ЭМНЭЛГИЙН БАРИЛГЫН АЖИЛ 80%-Д ХҮРЧ ГУРАВДУГААР САРЫН 1-НЭЭС ДУЛААНД ХОЛБОГДОХООР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/20    

Events

Name organizer Where
“Doing business with Mongolia”, “UK Investors show” бизнес хөтөлбөр March 27-April 02. 2019 ЛОНДОН ХОТ, ИХ БРИТАНИ Mongolian Business Database London UK
SYMPOSIUM ON GLOBAL MARKETS Nationalism and Protectionism: The United States in the International Arena June 17-18, 2019 The Center for American and International Law Plano, Texas, USA The Center for American and International Law (CAILAW) Plano Texas June 17-18 2019
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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New energy vehicle push excites base metal firms www.chinadaily.com.cn

China's ambitious bid to boost electric vehicles toward a battery-powered future can dramatically drive up demand for metals like lithium, cobalt, copper and nickel, industry insiders said.

"The rising EV (electric vehicle) market has driven up demand for some metals ... We expect the trend to continue," said Zhu Yi, senior analyst of metals and mining at Bloomberg Intelligence

In 2015, China overtook the United States to become the world's biggest market for electric cars, providing a huge domestic market for batterymakers.

"The market has priced in the booming demand from EVs at a pretty early stage. We expect the real commissioning of EVs (to meet the projected demand) may happen in another 5-10 years, once the mass production of EVs starts," Zhu said.

Many international mining firms like BHP and Vale are looking to redraw their global layout to grab market share.

"China's efforts to reduce pollution will drive the growth of new energy vehicles, the production and sales of which are expected to reach 15 million units in 2030," said Fabio Schvartsman, CEO of Vale SA, a Brazilian mining behemoth.

"This will positively affect our base metal business, since the majority of our nickel products are very well suited to electric vehicles. We also produce cobalt and copper, which are also critical elements for the electric vehicle and battery production process."

Agreed Vicky Binns, vice-president of marketing for minerals with BHP. Copper, she said, is expected to be a big winner from the electrification of the light duty vehicle fleet as the Chinese economy will likely boost demand for the red metal.

"The reason we like EVs is that an EV contains on average of around four times as much copper as a conventional medium-size car, around 80 kg versus around 20 kg," she said.

Among the range of possibilities, BHP's mid-case estimate is the electric vehicle fleet will rise toward 230 million in 2035 and to around three-quarters of a billion in 2050.

With the world's largest number of electric vehicle manufacturers and the largest network of charging points, China has set a goal of selling 2 million new energy cars a year by 2020.

Eurasian Resources Group, the international metals and mining company, also believes in the opportunities presented by China's policy to promote manufacture and use of new energy cars. The company's major products such as ferrochrome, cobalt and copper, can support the emerging industry.

"We believe that the cobalt market still has a fantastic potential. We expect to see a strong primary uptrend in the next few years," said Benedikt Sobotka, chief executive officer of ERG.

Besides expanding its sales footprint in China, ERG is forging partnerships with Chinese companies. ERG's affiliate Metalkol SA has recently signed a contract with China Nonferrous Metal Industry's Foreign Engineering and Construction Co Ltd for capacity expansion of ERG's mine project in the Democratic Republic of the Congo.

At full capacity, the project will be able to supply up to 20,000 metric tons of cobalt annually to the global market. "This is enough to build 2.6 million electric vehicles," said Sobotka.

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Mining Minister receives UK Minister of State www.montsame.mn

Ulaanbaatar/MONTSAME/ On July 20, Mongolia’s Minister of Mining and Heavy Industry D. Sumiyabazar met the UK delegates led by Rt. Honorable Mark Field, MP and Minister of State for Asia and the Pacific of the Foreign Affairs and Commonwealth Office.

At the meeting, D. Sumiyabazar emphasized, “This year marks 55th anniversary of the establishment of diplomatic relations between Mongolia and the UK. We are satisfied with expanding bilateral ties and cooperation in education, investment and trade spheres.” The Minister also spoke that works of putting Mongolia’s major mining projects into economic circulation and attracting financial sources from internal and external capital markets are in the action.

During its spring session, Mongolia’s Parliament made a decision to trade a certain part of the shares of Tavantolgoi Project at domestic and foreign stock exchanges, added Minister D.Sumiyabazar.

Mr. Mark Field thanked for audience and invited the Minister to take part in MINEX Eurasia Conference and Mines and Money to be organized in London in November this year.

M.Unurzul

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Iron ore export increases www.montsame.mn

Ulaanbaatar /MONTSAME/ According to the National Statistics Office, iron ore exports reached 3.3 million tons in the first half of the year, an increase by 633.2 thousand tons compared with the same period of 2017.

Iron ore price was an average of USD 46.3, showing a decrease of USD 12.8 compared with the same period of the previous year. Mongolian iron was entirely exported to the People’s Republic of China.

In the first half of 2018, a total amount of exported gold decreased by 1039 kg or USD 38.5 million compared to the same period of 2017. Gold price per kilogram rose from USD 40317.8 to USD 42104.9. Gold was exported only to the UK.

Exports of ferrous metal waste, copper and its alloys, aluminum articles and unprocessed lead made up 98.4 percent of total metal exports. Compared with the same period of the the previous year, export of unprocessed lead increased by USD 64.3 thousand, copper and copper alloys by USD 248.1 thousand and aluminum articles by USD 323 thousand respectively.

B.Misheel
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B.Gangaamaa "Conquers" K2 Mountain www.news.mn

Mongolian mountaineer B.Gangaamaa successfully climbed to the summit of K2, second highest peak in the world after Mount Qomolangma, becoming the first person from the country for the feat.

Situated on the China-Pakistan border, the 8,611-meter high K2 is the highest point in the Karakoram range. Known as the Savage Mountain, K2 is considered to be one of the most difficult peaks to scale as about one person dies on the mountain for every four who're trying to reach the summit.

Currently, only 300 climbers have overcame the summit, while 77 have died in the attempt.

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Top 10 Richest People in Mongolia 2018 Mongolian Billionaires www.eliteshared.com

Here Are the Top 10 Richest People in Mongolia and their Net worth not forgetting their source of wealth. The richest people in Mongolia: How they became Mongolian Billionaires and millionaires. The following Forbes list of Mongolian billionaires is based on an annual assessment of wealth and assets compiled and published by Forbes magazine in 2018. The FORBES List is based on an estimated wealth taking company shares, real estates, art objects or luxury goods such as yachts into consideration.

1. Odjargal Jambaljamts 
Richest man in Mongolia Odjargal Jambaljamts estimated net worth is US $ 2.6 billion and he is ranked at No. 1 in the list of top 10 richest man in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018. Mr. Odjargal Jambaljamts serves as the Executive Chairman of Mongolian Mining Corporation and has been its Executive Director since May 18, 2010.
From 1989 to 1991, Mr. Jambaljamts was an automation engineer at the Energy Authority of Ulaanbaatar, Mongolia. Mr. Jambaljamts has over 14 years of experience in exploration and/or extraction activities

2.Chinbat Lhagva
Chinbat Lhagva estimated net worth is US $ 1.9 billion and he is ranked 2nd in the list of top 10 richest people in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018. He does not have any political affiliations.
Chinbat L is the General Director Mongolian television and General Director of the Gatsuurt Group. Also, he is a member of the board of Directors of “Mongolian agronomy entrepreneurs association”. He founded the Gurvan Gol JSC, a geological mining company, with his colleagues in 1998, and was a shareholder in the company.

3.Battulga Khaltmaa
Battulga Khaltmaa estimated net worth is US $ 1.5 billion and he is ranked at No. 3 in the list of top 10 richest people in Mongolia as given the impression in financial magazines such as Forbes and Bloomberg 2018. Khaltmaagiin Battulga is a Mongolian politician and President of Mongolia.
Battulga Khaltmaa served as Member of the State Great Khural from 2004 to 2016 and Minister of Roads, Transportation, Construction and Urban Development from 2008 to 2012.

4.Nyamtaishir B
Nyamtaishir B has been also listed as one of the wealthiest man in Mongolia as at 2018 due to his massive net worth. Multi Billionaire Nyamtaishir B estimated net worth is US $ 1.4 billion and he is ranked at No. 4 in the list of top 10 richest man in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018.

5.Batbold Sukhbaatar
Multi Billionaire Batbold Sukhbaatar estimated net worth is US $ 1 billion and he is ranked at No. 5 in the list of top 10 richest man in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018.
Sükhbaataryn Batbold is a Mongolian politician who was Prime Minister of Mongolia from 2009 to 2012, as well as General Secretary of the Mongolian People’s Party.

6.Bold Luvsandanzan
Bold Luvsandanzan estimated net worth is US $ 800 million and he is ranked at No. 6 in the list of top 10 richest people in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018.
Bold Luvsandanzan is the chairman of the Inter-Parliamentary friendship group of Mongolia-Switzerland and Vice-Chairman of the Inter-Parliamentary friendship group of Mongolia-Japan. Since 2014 Chairman of the Inter-Parliamentary friendship group of Mongolia-Germany.

7.Baatarsaikhan Tsagaach
Baatarsaikhan Tsagaach estimated net worth is US $ 800 million and he is ranked at No. 7 in the list of top 10 richest people of Mongolia as given the impression in financial magazines such as Forbes and Bloomberg 2018.
Mr. Ts. Baatarsaikhan serves as the President of the Tavan Bogd Group. Mr. Baatarsaikhan is the Founder of Tavan Bogd Trade Co., Ltd. He has been a Director of Khan Bank LLC since March 2009.

8.Boldbaatar Tserenpuntsag
Boldbaatar Tserenpuntsag estimated net worth is US $ 800 million and he is ranked at No. 8 in the list of top 10 richest men in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018. Mr. Tserenpuntsag earned a master’s degree in Engineering from the Elecrotechnical Institute of Telecommunications in Leningrad, Russia.
Mr. Boldbaatar Tserenpuntsag is the Chairman and Co-Founder at Newcom Group. Prior to founding the firm, Mr. Tserenpuntsag was the First Deputy Director at the Mongolian Telecommunications Authority and a Member of the first Mongolian Parliament which was elected after the 1990 revolution. He also served as the General Director of the Mongolian Telecommunications Company.

9.Batkhuu Gavaa
Batkhuu Gavaa estimated net worth is US $ 700 million and he is ranked at No. 9 in the list of top 10 richest people in Mongolia as given the impression in financial magazines such as Forbes and Bloomberg 2018. Batkhuu.G, a former Member of Parliament for the Democratic Party (DP) and his brother Batsaikhan.P own the Media Group LLC with 50:50 shares.
Batkhuu Gavaa holds a Major in engineering and economics. He is a former Member of Parliament, Vice-Speaker of the Parliament, and former Minister of Road, Transport, and Tourism of Mongolia. He is a member of the Democratic Party (DP).

10.Erdenebileg Doljin
Erdenebileg Doljin estimated net worth is US $ 700 million and he is ranked at No. 10 in the list of top 10 richest man in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018. Mr. Doljin Erdenebileg has been the Chairman and Director of Trade and Development Bank of Mongolia LLC since December 28, 2006.
Mr. Erdenebileg serves as a Member of the Representative Governing Board of Ulaanbaatar City Bank. He holds a Bachelor’s in Law from the Institute of Law in Mongolia and a Master’s in Business Administration from the Academy of Management in Mongolia.

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Irkutsk region's export of chicken eggs to Mongolia almost doubled www.rusexporter.com

For the first five months of 2018 Irkutsk Region has exported to Mongolia chicken eggs valued at $1.8 mln., it is a 57% increase compared to the same period of the last year.

From January to May, 2018 Russia’s export of chicken eggs has amounted to $10.4 mln.

Irkutsk Region has accounted for 17% of national chicken eggs export and ranked 2nd among Russian regions exported this production. The leader of chicken eggs export is Leningrad region (39%)

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86 percent of active entities in Mongolia have up to 9 employees www.gogo.mn

According to the National Statistical Office’s Social and Economic Situation report, a total of 163,000 entities were registered in the Statistical Business Register as of February 2018.

Currently, 50.9 percent (83,100) of all registered entities are operational, thus classified as active enterprises. Out of these active entities, 85.9 percent employ up to nine people, while three percent have more than 50 employees.

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Mongolia takes steps to boost cashmere production www.news.mn

The Mongolian government launched a four-year programme to boost cashmere and wool industry in February. The initiative aims to increase exports more than fivefold by providing financial support to help domestic firms improve technology and expanding the country’s processing capacity.

The Mongolian Wool and Cashmere Association along with Mongolian national enterprises such as Erdenet Carpet LLC, Ulaanbaatar Carpet LLC, Mogul Wool LLC and Sor Cashmere LLC have been working with the aim of combing the overwhelming percentage of wool and increasing production of final products - in other words, covering the full cycle from processing to final product. Accordingly, they have requested the Mongolian Agricultural Commodity Exchange to decrease commission rates. This request has been heeded: the exchange has reduced the commission rates for combed wool by 0.2 percent and for washed wool by 15 percent. Currently, one kg of wool is sold by MNT 3200- MNT 4000. Mongolia produces annually over 30 thousand tonnes of wool. The government aims to process 26 thousand tonnes of wool domestically.

The Development Bank of Mongolia and the Ministry of Food, Agriculture and Light Industry have also established an 500 billion tugrik “Cashmere Development Fund”. Mongolia has an estimated total of 27 million goats, currently giving an annual cashmere production capacity of 9,400 tonnes.

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HIV Infections Rises to 262 in Mongolia www.xinhuanet.com

ULAN BATOR, July 19 (Xinhua) -- The number of HIV-positive people rose to 262 in Mongolia after seven new cases were registered in the second quarter of this year, the National Statistical Office said in a report Thursday.

More than half of the HIV-infected are people between 20 and 44 years old. About 99 percent of the infections were sexually transmitted, according to the report.

The first case of HIV infection in Mongolia was recorded in 1992. Since then, 40 people have died of AIDS in this East Asia country with a population of more than 3 million.

In the first half of this year, there were a total of 21,827 cases of infectious diseases reported in Mongolia, down by 16.3 percent from a year ago, the report said.

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Frontclear Facilitates a Landmark Transaction With State Bank Mongolia, EBRD and ING Bank www.ktvn.com

Frontclear arranged and structured a USD 30 million cross-border collateral swap with the European Bank for Reconstruction and Development (EBRD), enabling a further repo transaction between the Mongolian State Bank and ING Bank. It is the first time in Mongolia that a repo or collateral swap transaction has been done with local currency collateral cross border and a first such deal involving a commercial bank.

In this transaction, Frontclear borrowed USD 30 million in US Treasury bonds from the EBRD and then on-lent them to the State Bank LLC in Mongolia against Mongolian local currency government bonds in a collateral swap transaction. Frontclear guaranteed the transaction to EBRD. With the US Treasuries in hand, State Bank LLC borrowed funds in a repo transaction with ING Bank N.V. Singapore branch.

Credit risk, legal and operational risks plus wrong way risk concerns, has made it very difficult for Mongolian banks to source hard currency liquidity against local collateral in global capital markets. The landmark transaction made it possible for State Bank LLC to competitively access funding from foreign banks. It also helped clarify certain legal and operational issues related to bond trading in Mongolia, which were mitigated by effective Frontclear deal arranging and structuring.

Both collateral swap transactions were documented under an International Swap and Derivatives Association (ISDA) agreement, whereby Frontclear customized the swap confirmation to legal issues in the Mongolian market. The repo transaction was closed under a Global Master Repurchase Agreement (GMRA). The transaction documents introduced best practice operational and legal concepts, which will be further reviewed in a Frontclear organized Executives' Roundtable in Ulaanbaatar in September 2018.

"We are proud of the catalyst role we have played in originating the structure. The transaction provides a new mechanism for Mongolian banks to utilize local collateral in international capital markets and sets a benchmark for the development of Mongolia's money market going forward." - Andrei Shinkevich, SVP Frontclear

"We expect this transaction to generate positive ramifications for Mongolia as it enabled know-how transfer to the local market and should have a demonstration effect on other potential followers from global financial markets." - Aude Pacatte, Director, Head of Portfolio Management EMEA, EBRD

"State Bank is delighted for successfully executing this inaugural transaction that provides possibilities to practice the financial instrument in line with international best practice and facilitates development of interbank money market in broader perspective in Mongolia." - Chinbat Lkhagvasuren, Director General, Treasury Department, State Bank of Mongolia

"We are proud to have been given the opportunity to play an instrumental role in the further development of the capital market in Mongolia, together with State Bank of Mongolia, Frontclear, and EBRD."- Erik Versavel, ING Mongolia Country Head

About Frontclear

Frontclear is a development finance company focused on catalyzing stable and inclusive interbank markets in emerging and developing countries (EMDC). Frontclear facilitates access by local financial institutions to interbank markets through providing credit guarantees to cover a transacting institution's counterparty credit risk. This on the condition that local currency assets can be used for collateral management purposes. Frontclear's Basel III compliant guarantees specifically cover due payment of the Early Termination Amount under ISDA contracts and corresponding claims under GMRA. The guarantees are in turn counter-guaranteed by KfW, a AAA-development financial institution. The guarantees are complemented by a technical assistance programme (FTAP). FTAP supports targeted and planned interventions in bank and system development, which reduce the operational and country risks obstructing interbank trading. European Bank for Reconstruction and Development (EBRD), the Dutch development bank FMO, the Financial Sector Deepening Africa (FSDA), the French development bank Proparco, The Currency Exchange Fund (TCX), the UK's Department of International Development (DFID) and the German Ministry of Development Cooperation (BMZ). Frontclear's guarantees are counter-guaranteed by KfW, a AAA-rated German development Bank.

For further information, please visit http://www.frontclear.com

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