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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China’s coal imports from Russia, Mongolia surge after North Korea ban www.scmp.com

China’s coal imports from Russia and Mongolia soared in 2017, customs data showed on Thursday, as the two countries filled a supply gap caused by trade sanctions on North Korea.

Arrivals from Russia in 2017 surged 36.3 per cent from 2016 to 25.3 million tonnes, data from the General Administration of Customs showed, with December figures at 2.14 million tonnes, up 16.2 per cent from a year ago and 11.5 per cent from November.

Imports from Mongolia rose to 33.58 million tonnes in 2017, up 27.6 per cent from 2016, while December’s imports came in at 2.83 million tonnes, down 18.6 per cent from a year ago but up 2.5 per cent from November.

What will China say to US ‘blunt’ call to expel North Koreans?

China issued a ban on coal imports from North Korea in late February, about a week after the country tested an intermediate-range ballistic missile. For the rest of the year, China only reported North Korean coal imports in August and September.

In 2016, China brought in more than 20 million tonnes of North Korean coal, making it Beijing’s fourth-largest supplier after Australia, Indonesia and Mongolia.

“The majority of market share left by North Korea was grabbed by Russia, as mining costs in Russia are cheaper than in China’s northeastern region,” said Cheng Gong, an analyst at the China National Coal Association.

China’s imports from North Korea plummet to lowest level in four years

In 2017, Australia was China’s largest coal supplier for a sixth year in a row, bolstered by increasing demand for high-grade supplies due to Beijing’s crackdown on air pollution.

Coal imports from Australia rose 13.4 per cent from 2016 to 79.91 million tonnes. In December, China bought 8.07 million tonnes of Australian coal, up 19.4 per cent from a year ago.

Australian coal, with lower pollutants such as sulphides and ash and a higher energy value, is considered a high-grade fuel compared to Mongolian and Indian supply.

Arrivals from Indonesia in 2017 fell 9.7 per cent from 2016 to 35.28 million tonnes. December imports of 1.71 million tonnes were down 63.1 per cent from the same period in 2016.

China gas imports soar amid pollution crackdown on use of coal

In late November, Beijing eased some restrictions on coal imports to ensure stable coal supplies during the peak winter heating season.

Data released earlier this month showed China’s total December coal imports rose 3 per cent from November to 22.74 million tonnes.

Vessel-tracking and port data compiled by Thomson Reuters Supply Chain and Commodity Forecasts suggest China in January will import around 20.9 million tonnes of seaborne coal, both thermal and coking, up from 17.2 million in December and 19.1 million in November.

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Facebook and Google criticised by George Soros www.bbc.com

The billionaire investor George Soros has criticised tech "monopolies" such as Facebook and Google, calling them a threat to democracy.

At his annual dinner at the World Economic Forum in Davos, Mr Soros warned that social media platforms were "obstacles to innovation".

He raised concerns about their power to shape people's attentions.

However, he predicted their days were numbered because tax policy and regulation would catch up with them.

Mr Soros also called the Trump administration a "danger to the world", adding that he believed the president would be gone by 2020 "or sooner".

'Lost freedom'
But the outspoken financier reserved his strongest criticism for what he called the "unprecedented and transformative" effects of large internet firms.

"The power to shape people's attention is increasingly concentrated in the hands of a few companies," Mr Soros told assembled guests.

Referencing Google and Facebook several times during his speech, he said: "It takes a real effort to assert and defend what John Stuart Mill called 'the freedom of mind'.

"There is a possibility that once lost, people who grow up in the digital age will have difficulty in regaining it."

He cautioned that this would have "far-reaching political consequences", and had already played a large role in the election of Donald Trump.

Facebook declined to comment, while Google did not immediately return a request for comment.

The 87-year-old repeatedly praised EU competition commissioner Margrethe Vestager, whom he said would be the social media companies' "nemesis".

Ms Vestager has become best known for going after US tech giants, slapping charges on Google, Amazon and Apple.

Mr Soros said the EU, which has no internet giants of its own, was best placed to "protect society against them", whereas US regulators, he maintained, were too weak.

"Internet monopolies have neither the will nor the inclination to protect society against the consequences of their actions," he emphasised.

'Societies in crisis'
The Hungary-born hedge fund manager, who initially became famous for having made $1bn by betting on the devaluation of the pound in 1992, heads several foundations devoted to "defending open societies from their enemies".

Mr Soros, a Holocaust survivor, opened his speech by disclosing that he found the current moment in history "rather painful".

"Open societies are in crisis, and various forms of dictatorships and mafia states, exemplified by Putin's Russia, are on the rise."

But he predicted that Donald Trump, whom he previously branded a "would-be dictator," might not last to the end of his term.

"I expect a Democratic landslide in 2018," Mr Soros asserted.

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Cryptocurrency mining is a waste of energy – IMF's Lagarde www.rt.com

The amount of power wasted on producing bitcoin and other cryptocurrencies could soon be equivalent to the yearly energy needs of a large country like Argentina if current trends continue, according to IMF chief Christine Lagarde.

“The bitcoins mining, which is this accelerated and augmented use of computers to actually determine the value and incentive the functioning of the mechanism, is energy angry,” Lagarde said at the World Economic Forum in Davos in an interview with Bloomberg on Thursday.

“And we figure that in 2018, if it continues, that system will actually consume as much electricity as Argentina.”

According to the Bloomberg’s data, cryptocurrency miners used more than 37 gigawatt-hours a day – equivalent to 30 1.2-gigawatt nuclear reactors running at full capacity.

Digiconomist’s Bitcoin Energy Consumption Index says cryptocurrency mining could power 4,124,115 US households, and the energy consumed can be compared to Iraq’s electricity consumption.

The cryptocurrency network is mostly fueled by coal-fired power plants in China because energy is cheap there, which results “in an extreme carbon footprint for each unique bitcoin transaction,” the website claims.

“In times of climate change and when we look at how much coal is being used in some Chinese provinces to actually mine bitcoin, it’s a big concern,” Lagarde said.

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DBM’s investment rating upgraded to BBB www.gogo.mn

Moody’s has stated that the credit rating of the Development Bank of Mongolia (DBM) has a direct link to the nation’s credit rating, which has been upgraded from Caa1 to B3, as the government can support DBM as needed, and DBM's rating has been upgraded to BBB.

With the upgraded rating, DBM has the opportunity to issue long-term and low-cost financing in the international stock market. A country’s financial system, governance, budget and monetary policy play an important role in determining a nation's credit rating. When a rating changes, international investment expenditure can swing by up to 0.8 percent.

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Mining Minister attends World Economic Forum www.montsame.mn

Ulaanbaatar/MONTSAME/ On January 24, Mining and Heavy Industry Minister D.Sumiyabazar attended the World Economic Forum’s session on policy meeting of leaders of mining and metallurgy sector, at which he briefed about Mongolia’s state policy on mining sector and actions planned.

During his attendance, D.Sumiyabazar met with Deputy Prime Minister of Russia Arkady Dvorkovich, exchanging views on fuel supply and geology sector’s cooperation. Minister D.Sumiyabazar put proposals regarding reliable and constant fuel supply and reducing fuel price. In response, Arkady Dvorkovich told that Russian side is ready to render support on the matter. The Mining Minister agreed to hold a meeting with authorities of ‘Rosneft’, Russian Oil Company, on January 29 in Ulaanbaatar.

The same day, Minister D.Sumiyabazar met with Turkish Deputy Prime Minister Mehmet Simsek and discussed about bilateral cooperation and mining sector’s outlook. The meeting was followed by another meeting with authorities of ‘Lazard Freres’ financial advisory and asset management firm of France.The firm seeks cooperation with Mongolia for conducting structural changes of state-owned companies operating in mining sector and raising money from international financial market.

M. Unurzul

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Tax increases cigarette prices www.news.mn

Earlier this year, the State Great Khural (parliament) decided to raise seven taxes following Mongolia’s enrollment into the IMF’s extended fund facility. Excise taxes on alcoholic products and tobacco have been increased by 10 percent. According to initial reports, the price of pack of 20 cigarettes has increased by MNT 200-1200 since the tax came into effect on 1 January.

Tobacco smoking is the main cause of death that is preventable. A study conducted by the Mongolian Health Ministry in 2017 on tobacco use in the country showed that 61.3 percent of teenagers have smoked once or twice. According to a WHO study, Mongolians spend an average of MNT 100 billion on 3.2 billion cigarettes annually.

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New global gold standard in kilobar may soon be coming www.rt.com

The World Gold Council (WGC) is considering a global standard for 1 kilogram gold bars so they could be used as collateral in futures markets and potentially encourage demand.
People close to the matter told Reuters the aim is to include companies from the world of gold refining, banks and brokers that trade the precious metal in the futures and physical markets, and the London Bullion Market Association (LBMA).

“The plan is to create a standard for kilobars that can be adopted around the world, delivered anywhere, possibly using blockchain to identify the bars, their origins,” a physical gold trading source said. “Rigid standards and blockchain would bring in people who are worried they could be getting conflict metal.”

The kilobar measure dominates Asian trade as gold contracts on the Shanghai Gold Exchange, Shanghai Futures Exchange, and Hong Kong Exchanges and Clearing are all in kilobars.

However, lack of transparency about their origin and the absence of a global standard thwart their use on exchanges elsewhere. They cannot be accepted at London Metal Exchange clearing arm LME Clear because they differ from its standard bars which are typically around 400 ounces.

According to sources’ estimates, top consumer China imports about 95 percent of gold in kilobars, while second-largest consumer India imports 80 percent in kilobars. The WGC estimated China’s 2017 gold demand at up to 1,000 tons and India’s at 650 tons.

“The Asian consumer market is in kilobars, it dominates gold trade,” a gold industry source said. “If you want to trade on the LME and you want to lodge your collateral in kilobars in another location, why shouldn’t you be able to? There are vaults all over the world.”

“You can add a lot of information with blockchain, where the gold was mined, where it was refined, serial numbers, who owned it previously. It could bring new demand to the market,” a physical market source said.

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Chinese investors bid for Khuut-Bichigt project www.gogo.mn

Investors are offering their bids to invest in Khuut-Bichigt route railroad, which will be the main freight line in the eastern region of the country. For instance, Baxin Railway LLC of People's Republic of China (PRC) expressed its interest to invest in the railroad, as well as to establish an project park in Khuut station. Presently, the initial feasibility study of the railroad has been prepared. Once the Ministry of Road and Transport Development approve the feasibility study, the information on investment will be made public, informed the working group responsible for Khuut-Bichigt railroad.

Furthermore, environmental and social impact assessments, as well as field research and engineering geology analysis have been completed. The industry experts prioritize research and estimation of a railway project. Therefore, the working group is preparing a detailed study of the project. “Establishment of a complex infrastructure in the east will have a significant impact in the regional development and will provide transit transportation for the two neighbors, remarked Tsengel Bold, CEO of Mongolian Railways state-owned company.

A deposit with around 200-300 million tons of mineral resource is located in the Khuut-Bichigt route. The infrastructure will intensify mineral turnover and will allow Mongolian mining products to be traded in the international markets. Also, the early estimation show that some percentage of freight transports of Russian and PRC in the Trans-Manchuria railways could be transited through Khuut-Bichigt. The Government’s 2016-2020 Action Plan stated to establish Tavantolgoi-Gashuusukhait and Khuut-Bichigt route railroads. The 239 km long Khuut-Bichigt railroad will also provide around 800 workplaces. Although the investment amount is still unknown, the related officials informed that the initial cost will be around USD 1 billion.

Mongolia, Russia and PRC have agreed to establish a trilateral economic corridor within the frames of “Belt and Road” initiative of PRC and “Development Road” initiative of Mongolia. Accordingly, 33 projects will be implemented for the corridor, which will consist of central, western and eastern regional development. Additionally, the related officials and investors of Khuut-Bichigt project have gathered to convene at the Corporate hotel on January 22-23.

Tugsbilig.B

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With Mongolia at risk of third consecutive dzud disaster, UK-supported forecast-based financing rolled out to complement expanded Red Cross operation www.reliefweb.int

The IFRC said today that with well over half of Mongolia now facing at least a ‘high risk’ of a third consecutive winter dzud, it’s augmenting its operation for the 2016–17 disaster to support preparedness and capacity building with the Mongolian Red Cross Society (MRCS); this follows “close consultation with the affected population and relevant authorities”.

As part of the international response to the last dzud, the MRCS has distributed humanitarian cash totalling nearly a quarter of a million tugriks, or the equivalent of US$ 100 each to 2,740 households, and distributed first aid and veterinary kits to 1,740 households in 11 severely affected provinces.

The IFRC’s February 2017 emergency appeal was increased last October to more than US$ 850,000 from US$ 655,000, to extend the operation for a further three months.

Risk map

Now the new operational update quotes Mongolian scientists as saying that after an unusually hot and dry summer, there’s a risk of a countrywide ‘black dzud’ – a local term for a very cold winter with little precipitation, water or pasture.

“The lack of precipitation withered pasture land throughout the country,” the update says, “and many herder households were unable to prepare an adequate amount of hay and about 60 per cent of livestock were not able to gain enough fat.”

As of the third quarter of last year, it adds, more than 600,000 animals had died from hunger or disease.

In November the National Agency for Meteorology and Environment Monitoring issued a dzud-risk map for this winter showing 12 provinces or some 40 per cent of the country at ‘extreme risk’ of a dzud and about 20 per cent at ‘high risk’.

The MRCS last month distributed 20 bundles of hay to each of 624 vulnerable households in soums (townships) in parts of Tuv and Uvurkhangai provinces assessed from the government map to be at extreme risk of dzud; among other recent interventions, 55 herder households in nine provinces also got help repairing their winter shelters.

Animal kits

Complementing this effort, with support from the UK government through the British Red Cross, the MRCS has now begun implementing a bilateral forecast-based financing operation developed by the Climate Centre to reduce the dzud risk – the first ever in Mongolia.

Two-thousand households in 40 soums at extreme risk are getting unconditional cash grants (photo) and shortly animal-care kits to help them through the worst of the winter.

The MRCS “is now developing an integrated dzud preparedness and contingency plan in close consultation with the National Emergency Management Agency and herder communities,” the IFRC update says.

The Mongolian government has not formally declared a new dzud this winter or requested international assistance.

In the 2016–17 dzud, all but four of the country’s 21 provinces and some 37,000 herder households dependent on livestock in sparsely populated areas were badly affected, with temperatures dropping as low as minus 50°C.

As many as 1.1 million livestock were lost in the winter of 2015–16, and the dzud of 2009–2010, one of the most severe in history, saw nearly 10 million animals die.

Mongolian Red Cross personnel facilitating a humanitarian cash distribution earlier this month in Tuv province as part of the UK-supported forecast-based financing programme there.

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Cabinet meeting in brief www.montsame.mn

Ulaanbaatar /MONTSAME/ During its regular meeting on January 24, the Cabinet made following decisions.

� The Cabinet decided to submit to the Parliament a draft bill on General Program on Funding established between the Government of Mongolia and the Asian Development Bank. Financing of USD 468 million will be spent for diversifying economy, improving business environment, ensuring stability of social protection sector and creating jobs.

� The Cabinet resolved to submit to the Parliament a draft law on Mongolia-Korea intergovernmental general agreement on Issuance of Soft Loan from Economic Development Cooperation Fund in 2017-2019. The soft loan equal to USD 700 million has an annual interest of 0.2 percent and 30 years of repayment term and is to be spent for elimination of air pollution of Ulaanbaatar city.

� The Cabinet decided to set amount of undue tax loss at 0.050 percent a day in cases a tax payer does not pay his/her taxes in scheduled time or tax department and inspectors impose and collect unreasonable or excessive taxes.

� The Cabinet adopted methodology to compute index of provincial development, information required and list of organizations to give information. The index should be computed within the first quarter of the year and announced to public.

� The Cabinet decided to deliver information to National Security Council about condition of crime and law violations related to illegal circulation of narcotic drugs, and psychotropic.

� The Cabinet adopted Requirements and registration rule for citizen and legal body who render consulting service. The rule will set requirements for citizens and legal bodies in construction sector to give professional consulting service and regulate other relations.

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