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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MIAT to operate nonstop Ulaanbaatar-Berlin service www.news.mn

Mongolian Airlines (MIAT) announced that they will be operating a nonstop route between Ulaanbaatar and Berlin, the capital city of Germany. These nonstop flights are expected to start from July or August 2019.

MIAT previously announced that they would be putting its new Boeing 737 MAX on its service route between Ulaanbaatar and Moscow Sheremetyevo.

MIAT, which is the country’s leading national carrier, expanded its fleet in 2017 by leasing two Boeing 737 MAX aircraft from the global leasing company Avolon. The first of these planes arrived on January 21st of this year.

The 737 MAX offers flexibility, efficiency and a lower per-seat cost in the single-aisle market and is the fastest-selling aircraft in Boeing’s history with orders having been made for more than 3,600 aircraft.

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Tugstsogt Nyambayar a hit in Brooklyn; earns WBC featherweight title shot www.ringtv.com

NEW YORK — The vision is precise, and certainly tells the mind in light-speed time what to do and when to react. That’s all Tugstsogt Nyambayar, the Mongolian 2012 Olympic flyweight silver medalist, needs.

Just that sliver of an opening. Just that minute drop of a glove.

Then he strikes.

He lands with accuracy, and thudding impact, and the game southpaw Claudio Marrero was able to uphold the frequent barrages. He just couldn’t stave off the fissures in his defense that “King Tug” mined.

In his biggest challenge to date as a professional, King Tug won a twelve round unanimous decision over Marrero in the WBC world featherweight title eliminator on the FS1 portion of the PBC on Fox from Barclays Center on Saturday night.

“We had a really good camp so this is just me putting the pressure and pace that we worked on in camp and using it in the ring,” said Nyambayar, after going twelve rounds for the first time in his career. “This sets me up for big fights. Whatever big fights are presented to us, we’ll take it.”

Nyambayar (11-0, 9 knockouts) outlanded Marrero (23-3, 17 KOs) 119 to 114, but needed 509 punches to get there, for 23.4 percent, while Marrero threw a total of 714 punches (16 percent).

Perhaps the most telling stat came in the jabs. King Tug landed just 10, but he threw just 98 (10.2 percent), while Marrero landed 12 jabs of 345 (3.5 percent).

In the 10th, referee Benjy Esteves took a point away from Marrero for hitting Nyambayar on the break. With a welt building below Marrero’s left eye, King Tug engaged again and even landed a low blow, but Esteves didn’t charge Nyambayar with a point.

In the last round, Marrero wanted to battle Nyambayar, but he attacked wildly, and Nyambayar picked him apart with piercing counter rights. Then, Nyambayar thought he would have some fun in closing, hopping around the ring with his arms up.

In the end, Nyambayar had his hand raised, after judges Julie Lederman (114-113), Eric Marlinski (115-112) and John Poturaj (116-111) saw him as the winner.

If Chris Colbert wanted to garner attention, he certainly did with his fluorescent pink look on the top of his head, to the bathrobe he wore into the ring, complete with white fur around the collar.

Colbert, the Brooklyn-based fighter known as “Little B-Hop,” was facing a challenge in Joshuah Hernandez (8-2, 7 KOs) a sinewy, skilled fighter from Chicago who had just lost once prior to meeting Colbert.

The pair fought in close quarters in the first two rounds, with Hernandez sporting a bloody nose for his efforts.

In the third, Colbert (10-0, 3 KOs) showed he could fight southpaw or orthodox, switching things up on Hernandez and making him hesitant. Through four rounds, Colbert had outlanded Hernandez 76-34.

Hernandez tried crowding Colbert in a corner in the fifth, though, to no avail. Colbert bore through the slight onslaught, and even landed a hard right. Too bad Colbert doesn’t possess heavy, one-punch power.

The pair finished the sixth with a wild exchange, after Colbert motioned with his glove to incite Hernandez into coming forward. The two then blasted away until the bell closed the round.

It was a spirited brawl in which Colbert came out ahead.

“He put up a great fight,” Colbert said about Hernandez. “Today I decided not to give the crowd a boxing lesson, I decided I wanted to show them that I can stand and fight with anybody if I choose to. We’re going to keep making these fights easier and easier.

“I have very high-quality fight and I’m getting better and better as we go. I’m looking forward to getting more opportunities.”

In a scheduled six-round super lightweight fight, Antuanne Russell (8-0, 8 KOs) stopped very overmatched Roberto Almazan (7-9, 2 KOs) at :59 of the second round with a pair of knockdowns, both off of right hooks off the top of the head.

It wasn’t much of an exhibition. Russell was clearly the superior fighter and Almazan appeared in survival mode from the opening bell. It didn’t take long for referee Shada Murdaugh to see enough and wave it over.

“I listened to my corner’s directions and they told me that the hook was going to be there when he shot his left hand,” Russell said after what amounted to a sparring session. “I went to my hook position and I was ready to catch and fire.

“This is nothing new to me. I just try to execute what I’m told and sharpen my craft. We’re going back to the drawing board and we’ll be patient.”

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Inability to tackle air pollution to cause 5,200-14,000 deaths by 2024 www.zgm.mn

Scientists have warned that the inaction to air pollution will result in 5,200-14,000 death. Urged by the foreboding statement, the President of Mongolia Battulga Khaltmaa sent an official letter to the General Prosecutor’s Office to demand accountability from the authorities behind the potential misuse of air pollution reduction budget last week.

“State policies and decisions on air pollution reduction have become prey for profit-seekers and all the frivolous decisions, such as smokeless stoves and solid fuels have clogged the situation to its current state. For instance, the new development and mid-term program approved by the Parliament’s 36th resolution of 2010 is one of them,” read the letter. Between 2008 and 2016, Mongolia has spent a total of MNT 164.1 billion, raised USD 104.7 million from foreign loans and USD 48.6 million in non-refundable aid. Regardless of numerous actions, the air pollution became worse in the capital, overreaching the disastrous level.
Considering the time and spent on combating air pollution, as well as the results, people’s lives and actual condition that is harming public health, the President suspects potential criminal violence in related government bodies and authorities, including abuse of power, bribery, negligence of duty and improper use of state budget.

“...thus, I ask the Prosecutor to pay serious attention to the matter that is gravely violating Mongolians’ rights to live in a safe and healthy environment, investigate the violations in air pollution reduction projects, and take immediate actions in demanding responsibility from the criminals,” stated the President.

In response to his submission of the letter, General Prosecutor of Mongolia Enkh-Amgalan Magvannorov remarked, “President addressed the air pollution issue when he first met me after his election. Accordingly, we have conducted a certain investigation and, in cooperation with the Independent Authority Against Corruption and the General Police Department, opened a criminal case on December 12, 2017. The investigation is progressing at a slower phase. The data collected between 2008 and 2017 indicates that a total of MNT 129.4 billion was spent from the State budget, MNT 30 billion from Ulaanbaatar city budget and over USD 100 million from international organizations. As we already know, the air pollution in Ulaanbaatar did not reduce. The law enforcers will pay extra attention to the matter. Owing to the fact that air pollution reduction actions were implemented for over a decade, it is taking a significant amount of time to investigate the matter in details.

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Facebook plans to integrate Messenger, WhatsApp and Instagram. What that means for users www.cnn.com

New York (CNN Business)Facebook plans to integrate its messaging platforms, WhatsApp, Instagram and Messenger, according to a report from the New York Times.

The three services would remain separate apps, but their infrastructure behind the scenes would be the same.
Even with minimal changes on the surface, the move could have an impact on the billions of people who use the tools. For example, it could allow the company to build a single user profile from its different apps to better target ads.
The apps could also get end-to-end encryption, which shields messages from being read by people outside of the conversation, according to Facebook.
"We're working on making more of our messaging products end-to-end encrypted and considering ways to make it easier to reach friends and family across networks," a Facebook spokesperson said in a statement. "As you would expect, there is a lot of discussion and debate as we begin the long process of figuring out all the details of how this will work."

Facebook estimates 2.6 billion people total now use Facebook, WhatsApp, Instagram or Messenger each month, according to its most recent earnings report. In addition, more than 2 billion people use at least one of these Facebook-owned apps each day on average.
Debra Aho Williamson, principal analyst at research firm eMarketer, said data would likely be shared between the apps as a result of the move. That could make it easier for Facebook to track users' activities across its family of apps and target ads more effectively.
For users, increased data sharing could also mean that information about their activities on WhatsApp will be associated with what they do on Facebook, Instagram or Messenger, she added.
"If users didn't think Facebook and its messaging apps were all the same company, they will have to confront that reality now," Williamson said. "Knitting the messaging apps together shows that Facebook wants to exert more control over them, and that may lead to more internal executive conflict."

After being acquired by Facebook, WhatsApp and Instagram remained relatively independent entities. However, both platforms have become increasingly important to the company as Facebook has struggled with fake news, foreign election meddling and privacy scandals.
WhatsApp was acquired by Facebook in 2014, and its CEO and co-founder Jan Koum left the company in May 2018. Koum reportedly decided to resign after disagreeing with Facebook over its approach to personal data and encryption.
In October, Instagram co-founders Kevin Systrom and Mike Krieger left Facebook after reportedly clashing with CEO Mark Zuckerberg over the direction of the photo sharing app. Instagram was acquired by Facebook in 2012.
Jessica Liu, senior analyst at research firm Forrester, believes the user experience would only change slightly.
"I'm sure most users won't notice and won't think twice about it," she said. "As it is, you're already getting Facebook friend suggestions in Instagram and you're already getting kicked from Facebook to the Messenger app if you want to talk 'privately' to another Facebook user."

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Why China is under pressure to make a trade deal www.bbc.com

In Washington this week, the US and China are due to hold their highest level talks since the two sides struck a temporary truce to their trade war.

They have until 1 March to come up with some sort of compromise or tariffs will be hiked again, and we march back into a trade fight that affects us all.

China watchers tell me Beijing is under increasing pressure to make a deal.

Here's why:

A slowing economy
The trade war may not have caused China's slowdown, but it is definitely making things worse.

Growth data released last week showed China posted the slowest growth rate since 1990 but that in itself is not as worrying as other data points, including that consumer sentiment and retail sales are flatlining or weakening fast.

Small and medium-sized companies in China are feeling the chill with lower orders and inventories.

Just how much pressure the Communist Party is facing because of a weakening economy was reflected in a rare acknowledgement by President Xi Jinping, whose legitimacy is based in part in keeping China strong.

Losing its factory lustre?
There is also evidence to show that foreign firms are diversifying their sourcing, production and supply chains away from China, if not pulling out altogether.

This recent survey conducted by QIMA, a leading Asian supply chain auditor, shows that 30% of more than 100 global businesses are diverting their sourcing from China to other countries.

As many as three-quarters of these companies have started sourcing suppliers in new countries.

If this trend continues then jobs in Chinese factories are at risk - a recent report looking at China's economy by JP Morgan points to rising unemployment as a major near-term risks.

Social stability is predicated on China's economic stability, and the Communist Party is well aware that its credibility lies in delivering the Chinese dream to its people.

The Huawei factor
The fate of Huawei also hangs in the balance, both from a business and diplomatic standpoint.

China is big on symbolism and "doesn't believe in coincidences" Einar Tangen, an advisor on economic affairs for the Chinese government, told me on the line from Beijing.

Mr Tangen pointed to the arrest of Meng Wanzhou, the daughter of Huawei founder, which took place on the day President Xi and US President Donald Trump met at the G20 summit and declared the temporary truce between the two sides, setting the 90 day deadline for talks.

What's going on with Huawei?
The Huawei exec trapped in a gilded cage
Another date looms next week, with the latest round of talks taking place on the day the US has to file the extradition treaty for Ms Meng.

"Both of these dates are seen as attempts by the US to use Huawei as leverage in the trade talks," says Mr Tangen.

The US is also reportedly preparing an investigation into Huawei which could see it banned from buying American chips, a move that crippled China's ZTE last year.

"The Chinese see this as the US trying to push China down," he says.

"This is not about right or wrong. They view this in context of the 100 years of humiliation they suffered at the hands of the West and they don't want that repeated."

American firms want a deal
But the US is also under pressure to make a deal.

American firms in China have complained about the impact of Trump's tariffs on their business but want the US to make a good deal.

"This administration has been willing to risk the health of the US economy with tariffs," says Stephen Kho, international trade partner at law firm Akin Gump in Washington DC.

"So now that we've come this far, businesses want to take advantage of this moment and walk away from these talks with something significant. They will want to see China's offer to buy more American goods along with promises of systemic changes."

A solution to the US-China trade war is good for us all.

The longer these two superpowers slap tariffs on each other's goods, the more expensive products will be for us, companies will report lower profits, and global growth will slow.

Both sides are under pressure to make a deal. But this is ultimately, as Mr Kho also points out, "a game of chicken." Whoever blinks first could also be the biggest loser.

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Alibaba lashes out at US over ‘unfair’ treatment of Huawei as tech giant faces scrutiny www.rt.com

E-commerce giant Alibaba slammed the US for attempting to curb Huawei’s access to Western markets. A senior official from the company says a political agenda lies behind Washington and its allies’ treatment of the Chinese firm.
“I think what the American government and together with the Five Eyes Alliance – what they’re trying to do with Huawei – is a bit unfair, there’s definitely a political agenda behind it,” Joe Tsai, an executive vice chairman at Alibaba, said at a Reuters event in Hong Kong on Friday.

The ‘Five Eyes’ group he referred to is comprised of New Zealand, Australia, Canada, the UK and US – all of which allege the Chinese provider could pose a threat to their national security. The first two countries have already barred Huawei from assisting in building 5G networks.

Washington has already forbidden government agencies from using Huawei’s technology and is mulling a ban on the 5G rollout, while London and Ottawa are also reviewing the telecom giant’s access to their markets.

Canada has played more than a minor role in the Huawei saga, as the company’s finance chief, Meng Wanzhou, was arrested in the country last month. Her arrest sparked a diplomatic row between Canada and China and added further fuel to the fire of the US-China trade war, as Washington is seeking her extradition.

Alibaba’s executive vice chairman said the US’ leadership turned the problem of the trade deficit into a broader anti-China campaign, which “worries everybody.”

“President Trump may have started it focusing on the trade deficit itself... but over the course of the last nine months it was blown into a bigger anti-China problem,” Tsai stated.

Alibaba’s founder, prominent Chinese billionaire Jack Ma, earlier spoke out against the trade war between the world’s two largest economies. He called the row “the stupidest thing in this world” and warned that it could last 20 years. Last year, he also backtracked on his famous promise to create a million jobs in the US, blaming the US-instigated dispute for “destroying the premise the promise was made on.”

Earlier this week, Huawei warned it may pull out of countries where it is not welcome. While the company did not explicitly point to particular countries, it later proclaimed that even without the US market it can become the world’s biggest smartphone seller.

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International tourism hits 1.4 billion forecast 2 years early www.rt.com

A new report from the United Nations World Tourism Organization (UNWTO) showed that 2018 was a very good year for global tourism, with 1.4 billion worldwide traveler arrivals.
The UNWTO didn’t expect that figure until 2020, and it occurred in part due to stronger economic growth, greater visa facilitation, and more affordable air travel.

“The growth of tourism in recent years confirms that the sector is today one of the most powerful drivers of economic growth and development,” said UNWTO Secretary-General Zurab Pololikashvili.

According to the report, tourism to the Middle East and Africa grew above the six-percent world average, year over year, with a 10-percent increase in the Middle East and a seven-percent jump in Africa. Asia and the Pacific and Europe both grew by six percent.

Statistics also showed the Americas growing below the world average, with a three-percent increase. International arrivals in Central America and the Caribbean both slid by two percent, with the Caribbean hit hard by the impact of the September 2017 hurricanes Irma and Maria.

The agency’s forecast for this year is expected to be more in line with international tourism’s historical growth trends of 3-4 percent.

It said that Brexit uncertainty, an economic slowdown, geopolitical and trade tensions may mean more of a “wait and see” approach to travel in 2019. However, stable fuel prices, improved air connectivity, and strong outbound travel from emerging markets will be positive indicators for the year.

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State Secretary of Foreign Ministry working in Canada www.montsame.mn

Ulaanbaatar/MONTSAME/ D.Davaasuren, State Secretary of the Ministry of Foreign Affairs, is working in Canada on January 23-25.

During his working visit, he met with Mr. Donald Bobiash, Assistant Deputy Minister/Asia Pacific of the Department of Foreign Affairs and Trade Development (DFATD) of Canada. The sides shared views on current bilateral relations and cooperation and further objectives and discussed about expansion of Mongolia-Canada friendly relations and partnership.

They also agreed to organize the 8th roundtable of the two countries in Ulaanbaatar city, set a roadmap of bilateral cooperation, advance relations, build a mechanism of ministerial consultative meeting and cooperate in multilateral and regional arena.

Mr. Davaasuren handed an invitation over to Canadian side to take part in Ulaanbaatar Dialogue on Northeast Asian Security to be held in June, 2019 in Mongolia, which was accepted with support.

The Canadian side highlighted that the two countries have successfully celebrated 45th anniversary of diplomatic relations together and expressed its commitment to cooperate on matters agreed.

Moreover, Mr. Davaasuren held meetings with Mr. Benoit Daignault, President and CEO of the Export Development Canada and authorities of other relevant organizations and exchanged views on Canadian investment to Mongolia with support of this organization and possibilities to increase trade and investment.

The State Secretary also met with Mr. Duane McMullen, Director General, Trade Operations in Global Affairs Canada, and Ms. Sarah Taylor, Director General, Northeast Asia and Oceania for Global Affairs Canada, exchanged views on further objectives of bilateral relations and cooperation and discussed about opening Trade Representative Office of Mongolia in Canada.

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Finance Minister discusses on going projects with Chinese Ambassador www.montsame.mn

Ulaanbaatar /MONTSAME/ On January 23, Minister of Finance Ch.Khurelbaatar held a meeting with Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to Mongolia Xing Haiming.

During the meeting, the sides exchanged views on cooperation, bilateral foreign trade, and big projects that are being implemented with the soft-loan and non-refundable financial assistance of the Chinese Government. Specifically, they discussed the implementation of ongoing projects such as construction works of new waste-water treatment plant of Ulaanbaatar city, of the 20.9 km long auto road from Gachuurt intersection to Nalaikh and Choir intersections, of apartment complex for 1008 households and infrastructure of border-checkpoints.

In addition, various events are planned to be organized in connection to the 70th anniversary of the establishment of diplomatic relations between Mongolian and the People’s Republic of China.

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Organic skincare label uses Mongolia’s natural bounty – sheep tail fat, yak milk and berries from the steppes www.scmp.com

Hippophae, or sea buckthorn, has been used for centuries for its reported health benefits. However, there are few places in the world where it can grow.

The small orange berries thrive in sunny areas, but grow best in places that are often too harsh for other plant life. Sea buckhorn thrives on the remote Mongolian steppe which, despite its sub-zero temperatures in winter, experiences an average of 250 sunny days per year.

Khulan Davaadorj, the CEO of Mongolia’s Lhamour organic skincare company, is determined to use her country’s natural abundance to build a sustainable business using these and other ingredients that are less common elsewhere; the company also uses pine tar, yak milk, sheep tail fat and horse oil – products that are sustainable thanks to Mongolia’s climate, bountiful livestock, and long tradition of nomadic herding.

Davaadorj began experimenting with skincare in an effort to treat her own skin, which was suffering in Mongolia’s harsh climate and the damaging pollution that blankets the capital city, Ulan Bator.

After witnessing the transformative effect of natural products, she enrolled in an organic cosmetics programme to learn about using natural ingredients to treat skin issues.

She launched Lhamour in 2014, and her products quickly received the country’s first organic certification and became popular in Mongolia.

In 2015, the Mongolian Chamber of Commerce named Davaadorj entrepreneur of the year, and in 2016, the prime minister named her woman of the year.

Having achieved success domestically, she dreamed of offering her hand-crafted products to the world. However, building an international company in Mongolia is no small task. Because the country is landlocked between Russia and China, products for international markets must be sent by air.

High-value lightweight products such as skincare and cosmetics are therefore more profitable.

In the past year, Khulan Davaadorj has succeeded in making Lhamour an international brand – its products are now available with free delivery in Hong Kong, and are also distributed in Thailand, Taiwan, Australia, and the United States.

Davaadorj is committed to growing her business in an environmentally sustainable way. She says: “[Lhamour] is more about quality than quantity and it is more about sustainability than profit.” The company uses eco-friendly packaging, shipping its products in recycled paper or reusable containers. In its flagship stores, it features “no-waste corners”, where regular customers can refill their tins and bottles.

Five Asian skincare brands promoting clean beauty
Avoiding waste is integral to Mongolian culture. When an animal is killed every part is used. Meat is eaten, hides are tanned to make leather, and wool is made into Mongolian cashmere.

Lhamour is staying true to the roots of the country’s culture, finding new uses for such precious resources.

Those familiar with Mongolia’s exports will recognise that organic skincare is an anomaly. In 2016, more than 88 per cent of the country’s exports were mined natural resources, primarily coal and copper. Because of transport challenges, nearly all of Mongolia’s exports go by train to neighbouring China. This overreliance on a single, highly volatile sector and trading partner opens Mongolia up to high levels of economic instability.

Lhamour’s hydrating facial oil uses a unique blend of plant-derived oils to hydrate and balance the skin and ward off the damaging effects of pollution exposure.
While creating a skincare company may strike some as frivolous work, in making Lhamour products available internationally, Khulan Davaadorj is helping to stabilise her country by diversifying its exports.

In addition to relying too heavily on its mining sector, Mongolia is also at a disadvantage because it exports most of its materials in their raw form rather than refining them or engaging in other processes that add value and create employment.

Lhamour does the opposite – a dedicated team of employees makes and packages all of its products in Mongolia. Davaadorj employs 36 people, nearly all women, and many from disadvantaged backgrounds. Those who were taken on in the company’s early days are still working with her, because, as she says, “they see a purpose in doing something good for the country and other people”.

She hopes that, through international expansion, she will be able to create more jobs in her home country, providing people with sustainable employment.

Davaadorj, who is 31, believes her work can inspire other young entrepreneurs. “We are trying to tackle a universal problem and show people all around the world that even start-ups from developing countries can create impact and lead others by example.”

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