1 FRONTIER'S "INVEST MONGOLIA TOKYO 2018" WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/09/19      2 U.S.-CHINA TRADE TUSSLE IS CREATING WINNERS IN SOUTHEAST ASIA WWW.BLOOMBERG.COM PUBLISHED:2018/09/19      3 YUSAKU MAEZAWA: THE JAPANESE BILLIONAIRE WHO WANTS TO FLY TO THE MOON WWW.BBC.COM PUBLISHED:2018/09/19      4 MONGOLIAN FOREIGN MINISTER RECEIVES CARDANO BLOCKCHAIN FOUNDER WWW.NEWS.MN PUBLISHED:2018/09/19      5 ERDENE ANNOUNCES RESOURCE ESTIMATE FOR THE HIGH-GRADE KHUNDII GOLD PROJECT WWW.GLOBENEWSWIRE.COM PUBLISHED:2018/09/19      6 RUSSIAN GIANT COPPER PROJECT IN TALKS TO RAISE $1.25B WWW.REUTERS.COM PUBLISHED:2018/09/19      7 MONGOLIA GRADUALLY WITNESSING PROGRESS IN TOURISM WWW.TRAVELANDTOURWORLD.COM PUBLISHED:2018/09/19      8 CHINA, MONGOLIA, RUSSIA PUSH FOR ‘ECONOMIC CORRIDOR’ WWW.RUSSIABUSINESSTODAY.COM PUBLISHED:2018/09/19      9 EXPERTS FROM CHINA, MONGOLIA, RUSSIA TALK ON CONSTRUCTION OF ECONOMIC CORRIDOR WWW.XINHUANET.COM PUBLISHED:2018/09/19      10 PM U.KHURELSUKH PAYING AN OFFICIAL VISIT TO THE UNITED STATES WWW.MONTSAME.MN PUBLISHED:2018/09/18      ШЕНГЕНИЙ БОГИНО ХУГАЦААНЫ ВИЗИЙН МЭДҮҮЛГИЙГ УЛААНБААТАР ХОТОД АВНА WWW.MEDEE.MN НИЙТЭЛСЭН:2018/09/19     2018 ЭХНИЙ 7 САРД МОНГОЛЧУУД ГАДААД РУУ ЭМЧИЛГЭЭНД ЯВАХДАА 19.5 САЯ АМ.ДОЛЛАР ЗАРЦУУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ӨНӨӨДӨР ТӨВ ТАЛБАЙД 4000 АЖЛЫН БАЙРАНД БҮРТГЭНЭ WWW.DNN.MN НИЙТЭЛСЭН:2018/09/19     ЗАЛУУЧУУДЫН ГАРААНЫ БИЗНЕСИЙН ШАЛГАРСАН ТӨСӨЛД 10,0 САЯ ТӨГРӨГИЙН ДЭМЖЛЭГ ҮЗҮҮЛЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/19     WORLD ECONOMICS: МОНГОЛЫН АЖИЛ ЭРХЛЭЛТИЙН ТҮВШИН СҮҮЛИЙН 5 ЖИЛИЙН ДЭЭД ТҮВШИНД ХҮРЛЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ERD: "ХӨНДИЙ" АЛТНЫ ТӨСЛИЙН ТОГТООГДСОН НӨӨЦ 751 МЯНГАН УНЦ АЛТ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ХЯТАДЫН $200 ТЭРБУМЫН ИМПОРТОД ТАРИФ ТОГТООВ WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/19     ШИВЭЭХҮРЭН БООМТООР ХОНОГТ 60-80 МЯНГАН ТОНН НҮҮРС ЭКСПОРТОЛЖ БАЙНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/09/19     БНХАУ-ЫН 200 ТЭРБУМ АМ.ДОЛЛАРЫН ИМПОРТОД 10 ХУВИЙН ТАРИФ НОГДУУЛАХ ШИЙДВЭР ИРЭХ 7 ХОНОГООС ХЭРЭГЖИНЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/18     ӨВӨЛ ЦАХИЛГААН СААТВАЛ ХОТ ДӨРВӨН ЦАГИЙН ДОТОР Л ХӨЛДӨНӨ WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/18    

Events

Name organizer Where
Frontier's "Invest Mongolia Tokyo 2018" Frontier Securities Tokyo Japan
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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Mongolia-Russia trade turnover increased by 40 percent www.montsame.mn

Ulaanbaatar /MONTSAME/ On August 28, E.Oyuntegsh, Secretary General of the Mongolian National Chamber of Commerce and Industry (MNCCI) and Ye.V.Averina, Deputy Head of the Chamber of Commerce and Industry of Tyumen Region of the Russian Federation, signed cooperation agreement during the meeting with business people of Tyumen region, co-organized by MNCCI and the Mongolian National Association of Food and Agriculture.

At the meeting, Russian delegation including M.V.Vasiliev, Trade Representative of Russia to Mongolia, Deputy Head of Department of Investment Policy of the Chamber, Director of Ochakovo Company and representatives of Tyumenistalimost and Slada companies introduced their products.

In particular, Ms. Belousova Lola, manager of Slada Company, which produces over 40 thousand tons confectionaries per year and exports its products to China, Belarus, Uzbekistan, Ukraine and Mongolia, said "The survey shows that Mongolian consumers enjoy Slada's products; thus, we are willing to increase our sales in Mongolia."

During the business visit, B2B meeting took place, at which business people of the two countries exchanged views and sought cooperation opportunities.

The Mongolian side expressed its interest to collaborate with Ochakovo and Slada companies and develop cooperation in agricultural field, requesting to connect with companies of this field through the Chamber of Commerce and Industry of Tyumen region.

M.V.Vasiliev, Trade Representative of Russia to Mongolia said that it has been over a year since the Russian Trade Representation Office was opened in Mongolia. During this period, business relations between the two countries have improved and bilateral trade turnover has been increased by 40 percent.

B.Batchimeg

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Belt and Road debt trap spreads to Central Asia www.asia.nikkei.com

MOSCOW -- As Beijing bankrolls projects in Central Asia to promote its Belt and Road Initiative, countries in the region are at risk of granting China valuable concessions to ease their heavy debt burdens.

Turkmenistan faces an economic crisis, with reports leaking from the country of long queues snaking outside of grocery stores, one-month waits for flour and road closures by housewives demanding food.

The country's currency is officially quoted at about 3.50 to the dollar, but the manat has weakened rapidly on black markets to 18 or 19, local sources say. In addition to a shortage of daily necessities, the government forced hefty price increases on gas and water. Inflation has hit 300% by one estimate.

Some think the current crisis is worse than the turbulence that immediately followed the Soviet Union's collapse.

Turkmenistan relies on natural gas exports for 70% of its revenue. The nation's drift toward China accelerated in 2009 when it opened a pipeline to the Asian power through Uzbekistan and Kazakhstan while relying on funds from Beijing to fund gas field development and infrastructure construction. The loans total about $8 billion, according to the CIS Institute think tank, with money for repayment coming from gas export proceeds.

But Turkmenistan's revenue from natural gas exports last year was reportedly half the level of 2015 as Russia halted shipments from the country and Iran suspended imports due to a contract dispute. Lax spending on infrastructure and corruption have contributed to the decline in the nation's finances as well. Some predict that Turkmenistan will have to hand over gas fields to China as repayment for its debts.

Central Asian countries are bolstering relations with Beijing as they vie for a piece of the Belt and Road Initiative, which stretches from China to Europe. Borrowing from Beijing has ballooned in all but Kazakhstan, which receives direct investment from various countries, and Uzbekistan.

Neighboring Tajikistan handed over a gold mine to China in April as remuneration for $300 million in funding to build a power plant.

Kyrgyzstan reportedly has a contract with a state-run Chinese bank for a power plant in the capital of Bishkek that includes a clause giving Beijing control of wide-ranging assets if the country defaults on its repayments. China is also thought to be demanding concessions in negotiations for railway construction funding.

Hidden risks in Belt and Road projects came to light after Sri Lanka in 2017 gave China the operating rights to the Hambantota port for 99 years as the island nation struggles to repay debts.

China aims to become the dominant force in Central Asia in order to drive down the price of acquiring resources, said Andrei Grozin, who heads the Central Asia department at the CIS Institute.

Beijing also plans to invest in infrastructure and agriculture projects in former Soviet states like Ukraine that seek integration with the European Union, increasing its influence in Eastern Europe as antagonism between Moscow and Washington grows.

Ukraine and China agreed to $7 billion in joint projects at an intergovernmental commission in late 2017. Construction of highways and grain export bases is progressing.

"A pro-China faction is quietly rising," said a high-ranking Ukrainian official, as investment from the U.S. and Europe slows due to a virtual state of war between Kiev and Moscow.

China is targeting Ukraine's military technology, a field in which Kiev has excelled since the Soviet era. After a Chinese company took a 41% stake in Motor Sich, a manufacturer of engines for military transport vehicles and helicopters, Ukrainian courts froze the deal.

Beijing signed a free trade agreement with Georgia last year and is investing in ports and transportation projects there. The Caucasus republic, along with Ukraine, has a free trade agreement with the EU. Georgia recently opened a railway from Azerbaijan to Turkey that is expected to serve as a vital artery for China's Belt and Road, connecting China and Central Asia with Eastern Europe while bypassing Russia. China is negotiating a free trade agreement with pro-Western Moldova as well.

Moscow seems to tolerate China's growing clout in Russia's sphere of influence. Some think Moscow prefers China to democratic and economic reforms promoted by the U.S. that emphasize transparency and rule of law. Concern exists that more Chinese money will stall Western reforms in these countries.

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Aspire to develop low ash coking coal project in Mongolia www.spglobal.com

Singapore — Aspire Mining Wednesday announced plans to develop a new low ash coking coal project in Mongolia.

Register Now The Ovoot Early Development Plan involves mining low ash and high yield coal from the Ovoot orebody and construction of a private temporary haul road to be completed in 12-15 months from commencement, the company said in a filing to the Australian Securities Exchange.
Output is initially planned at 3 million-4 million mt/year due to the limitations of Mongolia's rail capacity, with plans for an expansion of transportation to support output of up to 10 million mt/year, the company said, without providing a time line.

China imported 26.27 million mt of coking coal from neighboring Mongolia in 2017, comprising 38% of its total 69.9 million mt of coking coal imports in the year. Mongolian coal is sought-after for its low ash content; China's domestic coals typically have a higher ash content.

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Mongolia: Riding Reindeer And Hunting With Eagles In East Asia's Most Fascinating Destination www.forbes.com

Let’s start with getting there. Which is no easy feat. (Pro tip: book your flight through Hong Kong and take advantage of the great lounges there. Hello, Cathay Pacific’s six lounges.).

Once you’ve finally arrived in Ulaanbaatar, the country’s capital and the starting point for pretty much all the best adventures, get your last fill of life’s little luxuries – maybe hit the spa, or indulge on Korean barbeque, because life outside of the city is much simpler, but that’s exactly what you’re there for.

And while it’s common that Mongolians in the city speak English, don’t expect much of that once you get outside of the capital. Traveling with a translator is certainly not a bad idea, but you just might surprise yourself with how much communicating you can actually do with simple hand gestures and a few key phrases.

And even though you’ll want to travel here in June, July and August, keep in mind that unexpected changes in the weather, like blizzards in the far north, aren’t out of the question.

So, what makes Mongolia one of the most fascinating destinations in East Asia? Well, these adventures, to start.

Visit the Tsaatan Tribe

Spending time with the Tsaatan Tribe, the last nomadic tribe that herds and rides reindeer in the world, is like something out of a fairy tale. Besides a landscape that goes from beautiful rolling steppe to treacherous bogs and rocky mountainsides in minutes, there’s just something magical about seeing someone ride up to the teepee you’ve made home for a few days on a reindeer. Getting there is no small feat – my journey included a flight from Ulaanbaatar to Mörön, two-days of off-roading in a UAZ-452 Russian furgon, and two-days on horseback. But once you’re there, you’re a part of the tribe. Drinking reindeer milk tea, making noodles, herding in the reindeer at night, milking them in the morning, riding them to visit the neighbors or forage for juniper – it’s one of those experiences that will have you pinching yourself every few minutes.
Go to the Kazakh Eagle Hunters

Wolf-skin cloaked nomads wielding beautiful golden eagles and 4,000 years of tradition – that’s just the beginning of what’s so fascinating, and alluring, about paying a visit to the Kazakh people in the western part of the country. Not to mention, watching as an eagle soars through the air at speeds upwards of 200 mph is pretty bucket list-worthy. Once a year, in the Bayan-Ulgii Province located in the Altai Mountains of Western Mongolia, the Golden Eagle Festival brings out the best Kazakh hunters from the area, pitting them against one another in competitions that test the speed, agility and accuracy of their golden eagles. It’s an experience you won’t find anywhere else in the world.

October’s Golden Eagle Festival (October 6th – 7th, 2018) is an ideal time to visit.

There are plenty of ways to live in Chenggis Khaan’s footsteps (or as we call him in the west, Genghis Khan). You can do a day tour from Ulaanbaatar and get an idea of the history, economy and political climate of Khaan’s day, which is an easy introduction to Mongolia’s past.

But, for those looking for a little bit more (okay, a lot more) adventure, do it right and travel back to the 13th century and take on the steppe by horse. Horses played an integral role in Khaan’s success, thanks to his supply point route messenger system (called the Yam system), which acted as a relay messenger system for horses. Every 14 to 40 miles riders can switch horses (or pass on documents and goods to a fresh rider), eat and find shelter. This is the system that helped Khaan conquer the largest contiguous empire in history, from Eastern Europe to Southeast Asia and China, in his prime.

From Khentii National Park, where the steppe meets the forest, to visiting with a nomadic family in the valley of Jargalant River, trekking through the country this way is certainly one of the coolest (and most bragworthy) ways to experience Mongolia.

Companies like Discover Mongolia offer ‘Follow in the Steps of Genghis Khan’ horse treks.

Cross the Gobi

One of the greatest parts about visiting Mongolia is the diversity that you can find in the terrain across the country. The steppe and the mountains in the north are one thing to experience, but the Gobi Desert in the south is something completely different, and just as spectacular.

The fifth largest desert in the world, and the largest in Asia, the Gobi isn’t all sand – there’s plenty of exposed bare rock here as well, making it one of the most unique (and challenging) terrains you’ll find anywhere. Set off by horseback to cover the most ground and discover wild Bactrian (two-humped) camel, horses and wild gazelle along the way, along with the last desert-inhabiting bear, the Gobi bear.

Stay in traditional gers during your journey (and keep in mind that desert nights can get cold), meeting with nomadic families all along the way, learning about the history and culture of the country firsthand.

You can also take on the desert by van, if horses aren’t exactly your thing.

Nomadic Expeditions leads tours from Ulaanbaatar to the Gobi and back by van.

Travelers interested in visiting the Gobi Desert can cross it by either horse or van. (Credit: Shutterstock)

Motorbike or Road Trip Across the Country

Whether you want to follow the trail of Chinggis Khaan, hightail it across the steppe or set off through the Gobi, there’s no wrong way to see Mongolia. And each of these trails are wildly different – just remember: the only thing you can ever count on here is the unexpected. From the weather to the bumpy terrain across the flatlands of the steppe, barren and unforgiving dessert in the Gobi, and everything in between along the Chinggis Khaan route, this will certainly be an unforgettable adventure for one reason or another.

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President Kh. Battulga to meet with Vladimir Putin in September www.gogo.mn

President Kh. Battulga will attend the fourth annual Eastern Economic Forum, which will be held from September 11 through 13 in Vladivostok.

Press Secretary for the President of Russia Dmitry Peskov reported that President Vladimir Putin will meet with President Kh. Battulga during the forum. During the 2016 Eastern Economic Forum, 216 trade and investment agreements valued at 32 billion USD were signed, while investment agreements for 32 projects and programs with a value of 20.8 billion USD were signed in 2017.

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Russia could become global leader in coal exports – Putin www.rt.com

Russian President Vladimir Putin has announced plans to expand the country’s coal exports on the global markets.
“Last year, domestic companies exported more than 190 million tons of coal,” the president said, noting that Russia is currently the world's third biggest exporter.

“The current market conditions provide Russia with an opportunity to expand its presence in the world’s markets, uphold that position and boost its share of exports,” Putin said as quoted by TASS.

According to the president, achieving those goals depends on solving a whole range of vital tasks, including logistics.

“Producers’ plans on production increase must be in a constant connection with development agenda of Russian Railways (RZD), as well as with sea ports investment projects,” Putin said, highlighting the need to provide a complex approach for increasing the carrying capacities of the country’s railroads.

The president called for not only the needs of coal companies to be addressed, but firms shipping bulk and liquid cargos as well. Putin also urged domestic fuel and energy corporations to enter new markets and to diversify supplies.

“Russian energy companies maintain stable positions on foreign markets. For example, the volume of natural gas exports broke the record high for two consecutive years,” he said speaking in front of the Commission on the Strategy for the Development of the Fuel and Energy Complex and Environmental Safety.

“Over the past few years, the global energy market has become noticeably more competitive, so it’s extremely important to effectively use our competitive advantages, diversify supply routes, enter and consolidate positions on new markets,” the president said.

Putin defines the Asia-Pacific region as “one of the most attractive destinations” with a growing demand for a wide range of products that is opening up great opportunities for Russian firms.

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ADB to help Ulaanbaatar transform its ger areas into eco-districts www.montsame.mn

Ulaanbaatar /MONTSAME/ The Asian Development Bank’s (ADB) Board of Directors has approved USD 80 million loan to help transform ger areas in Ulaanbaatar into affordable, low-carbon, climate-resilient and livable eco-districts.

ADB will additionally administer a USD 95 million loan and a USD 50 million grant from the Green Climate Fund (GCF), as well as a USD 3 million sector grant from the High-Level Technology Fund (HLTF).
A third of Mongolia’s population live in urban ger areas, or settlements of low- and middle-income households. These districts suffer from poor sanitation, inadequate solid waste management, and limited water supply, which pose health and environmental hazards. A heavy reliance in these ger areas on coal and biofuels for heating and energy generates large carbon dioxide emissions and worsens air pollution, especially during winter.
“About 850 thousand people live in Ulaanbaatar’s ger areas and have poor access to urban services,” said ADB Senior Urban Development Specialist Mr. Arnaud Heckmann. “This project will improve the lives of around 100 thousand people, including 10 thousand direct beneficiary households that will have access to green housing units, by financing 20 new environmentally friendly districts with good services, green spaces, and access to shops and jobs.”

Incremental growth and migration are increasing the population living in these poor conditions because affordable housing options for low- and middle-income households are very limited. A 2016 survey by the Capital City Housing Corporation estimated housing demand at 150 thousand units, while available affordable housing stock is about 4000 units, with 60 percent of ger area residents willing to move to apartment units if acceptable and affordable solutions are proposed.

The project is a large-scale initiative to provide sustainable and comprehensive solutions to transform sub-standard, highly vulnerable, highly emitting, and polluting ger areas into affordable, climate-resilient and livable eco-districts.

The Ulaanbaatar Green Affordable Housing and Resilient Urban Renewal Sector Project will build 1,500 social housing units along with key infrastructure such as roads, water, sewerage, and heating pipes, as well as green houses for urban farming and public and green spaces; social and public services; and rooftop solar panels and a smart monitoring system for building performance and renewable energy control financed by the HLTF. The solar panels will produce about 40 percent of all electricity demand.

The project will also provide USD 75.7 million out of the GCF loan to the eco-district and affordable housing fund (EDAF) that will make long-term loans to commercial banks, which will be passed on to real estate developers to build an additional 8,500 homes—including 5,500 affordable and 3,000 market rate units—and commercial activities, and to provide low-cost mortgages. The loan to EDAF is expected to leverage around USD 300 million more in investments from developers, commercial banks and beneficiaries. The Asset Management Company of the Development Bank of Mongolia will manage EDAF on behalf of the Ministry of Finance. The GCF grant will be used to provide performance-based grants to qualified developers for climate change mitigation and adaptation features.

A key element of the project is the voluntary land swapping approach for implementing the eco-districts. Under this approach, households owning or renting a plot of land within the proposed eco-district perimeter can choose to participate or not on the mechanism. If they opt to participate, households will have access to a housing unit in the eco-district, through land and asset swaps, rent-to-own schemes, or affordable rental arrangements. If they choose not to participate, the eco-district design will be adjusted to avoid affecting the non-participating household. A community participation plan, which includes skills training and linkages with job opportunities for poor households, will also be implemented.

Institutional and policy improvements, meanwhile, will guide the transformational impacts of the project with respect to regulations, standards, and sector capacity for climate-responsive urban planning; increased performance, energy efficiency, and renewable energy in buildings; improved supply and access to low-carbon affordable housing; sustainable green housing finance; and eco-efficient urban services.
The project is expected to be completed by the end of 2026 and will cost a total of USD 570.1 million.

Source: adb.org

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Mongolia provides quick entry services to facilitate Belt and Road Initiative www.xinhuanet.com

ULAN BATOR, Aug. 28 (Xinhua) -- Mongolia has implemented three measures to support the Belt and Road Initiative (BRI), a senior foreign ministry official said.

The Mongolian Government introduced the measures in November. They are issuing multiple-entry visa for personnel involved in the BRI, allowing them to apply for visa at Mongolia's airport and border crossing, and providing quick access at international arrival and departure, Ariunbold Yadmaa, director general of the Ministry of Foreign Affairs' consular department, told Xinhua on Monday.

Chinese State Councilor and Foreign Minister Wang Yi inspected the Belt and Road quick access at the Chinggis Khaan International Airport in Ulan Bator on Saturday during his visit to the country, marking the official launch of the three facilitation measures.

The Chinese Ambassador to Mongolia, Xing Haiming, said Mongolia is a natural partner of the BRI, supporting it and participating in it since it was proposed in 2013.

Mongolia has dovetailed its development strategy with the BRI, Xing said, adding that the initiative will promote Mongolia's development and China-Mongolia relations.

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Johor Sultan given warm welcome in Mongolia www.thestar.com.my

PETALING JAYA: The Johor Sultan was accorded a warm welcome inside a purpose-built traditional home or “ger”, pitched inside the State House in Ulaanbaatar.

Sultan Ibrahim Ibni Almarhum Sultan Iskandar, who is on his first official visit to the country, called on Mongolian President Khaltmaagiin Battulga.

According to the Sultan’s official Facebook page, the Ruler was given a briefing by Mongolian government officials and major private developers on emerging business and investment opportunities, especially on real estate development, in the landlocked country.

He also took the opportunity to visit the Mongolian government-owned Gobi cashmere factory store in Ulaanbaatar, which is popular with tourists for its premier quality clothing.

Mongolia is the supplier of about 40% of the world’s raw cashmere, the country’s largest export after minerals.

The Sultan, who is accompanied by Tunku Panglima Johor Tunku Abdul Rahman, is leading a 15-member delegation.

Today, he is expected to visit Tsonjin Boldog, some 55km from Ulaanbaatar, where a 40m-high statue of Mongol Empire founder Genghis Khan on horseback is located.

Sultan Ibrahim’s visit to the country is at the invitation of the Mongolian president, which was conveyed to him by the Mongolian ambassador to Singapore, George Lkhagvadorj Tumur, in June.

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Toyota to invest $500m in Uber in driverless car deal www.bbc.com

Japanese carmaker Toyota is to invest $500m (£387m) in Uber and expand a partnership to jointly develop self-driving cars.

The firm said this would involve the "mass-production" of autonomous vehicles that would be deployed on Uber's ride sharing network.

It is being viewed as a way for both firms to catch up with rivals in the competitive driverless car market.

The deal also values Uber at some $72bn, despite its mounting losses.

That is up 15% since its last investment in May but matches a previous valuation in February.

According to a press release issued by the firms, self-driving technology from each company will be integrated into purpose-built Toyota vehicles.

Uber halts self-driving tests after death
Uber settles with Waymo on self-driving
The fleet will be based on Toyota's Sienna Minivan model with pilot trials beginning in 2021.

Shigeki Tomoyama, executive vice president of Toyota Motor Corporation, said: "This agreement and investment marks an important milestone in our transformation to a mobility company as we help provide a path for safe and secure expansion of mobility services like ride-sharing."

Both Toyota and Uber are seen as lagging behind in developing self-driving cars, as firms such as Waymo, owned by Alphabet, steam ahead.

Uber has also scaled back its self-driving trials after a fatal crash in Tempe, Arizona, in March, when a self-driving Uber SUV killed a pedestrian.

Since then, the ride-hailing giant has removed its autonomous cars from the road and closed its Arizona operations.

Uber's troubled self-driving car efforts are in need of external help, and this deal with Toyota might provide that expertise. It's of course a terrific opportunity for Toyota, too.

It was reported earlier this month that Uber was sinking around $1m-$2m into its autonomy work every single day. The results of that effort have not been something to be proud of - one fatal crash, one very expensive lawsuit, and not a lot of self-driving compared to the leader in this sector, Waymo.

Sharing the burden, and R&D cost, will delight Uber's investors as it aims for its initial public offering next year.

Meanwhile, shares in Toyota spiked at reports of the deal. Not surprising. Many analysts think personal car ownership will drop dramatically when the self-driving, ride-sharing future is fully upon us - with major companies instead purchasing enormous fleets of vehicles. Toyota, then, may have just secured its biggest ever customer.

The deal extends an existing relationship with Toyota, and furthers Uber's strategy of developing autonomous driving technology through partnerships.

The US firm has also teamed up with Daimler, which hopes to own and operate its own self-driving cars on Uber's network.

On Monday, Uber said it planned to focus more on its electric scooter and bike business in future, and less on cars - despite the fact it could hurt profits.

Revenue from its taxi business is rising but the cost of expansion into new areas such as bike sharing and food delivery has meant losses have grown rapidly.

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