1 MONGOLIA-CHINA AGREE TO COLLABORATE IN INCREASING MEAT EXPORT WWW.MONTSAME.MN PUBLISHED:2018/09/21      2 U.S. AND MONGOLIA SEEK TO STRENGTHEN ECONOMIC RELATIONSHIP WWW.STRTRADE.COM PUBLISHED:2018/09/21      3 MONGOLIA, U.S. LEADERS DISCUSS BILATERAL TIES WWW.XINHUANET.COM PUBLISHED:2018/09/21      4 BELT AND ROAD SIGNIFICANT TO MONGOLIA, PEOPLE AROUND WORLD -- ACADEMIC WWW.ENG.YIDAIYILU.GOV.CN PUBLISHED:2018/09/21      5 PETRO MATAD UPDATES MONGOLIA EXPLORATION WWW.OGJ.COM PUBLISHED:2018/09/21      6 RIO TINTO’S EXIT FROM COAL PAYS OFF, TO RETURN $3.2B FROM SALES PROCEEDS TO SHAREHOLDERS WWW.MINING.COM PUBLISHED:2018/09/21      7 OPENING CEREMONY OF SAINSHAND SALKHIN PARK HELD WWW.MONTSAME.MN PUBLISHED:2018/09/21      8 ALIBABA’S MA SAYS TRUMP’S TRADE WAR ‘DESTROYED’ HIS PROMISE TO CREATE JOBS FOR 1MN AMERICANS WWW.RT.COM  PUBLISHED:2018/09/21      9 LEGAL DISPUTE OVER EMC OWNERSHIP COMES TO AN END WWW.ZGM.MN PUBLISHED:2018/09/20      10 ERDENES TAVAN TOLGOI REVENUE SURGES DUE TO HIGHER COAL PRICES WWW.NEWS.MN PUBLISHED:2018/09/20      НУРАХ ДӨХСӨН БАЙРУУДЫГ ШИНЭЧЛЭХ КОМПАНИ ОЛДОХГҮЙ БАЙНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/21     МОНГОЛ УЛС ВАШИНГТОН, ПЁНЬЯНЫ ХЭЛЭЛЦЭЭРТ ЗУУЧЛАХАД БЭЛЭН ГЭДГЭЭ ЗАРЛАЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2018/09/21     УЛСЫН ХЭМЖЭЭНД 85.3 МЯНГАН ТОНН ТӨМС ХУРААН АВААД БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/21     ЗГ: БУЦАЛТГҮЙ ТУСЛАМЖИЙГ УСНЫ НӨӨЦИЙГ САЙЖРУУЛАХ, ХЭРЭГЛЭСЭН УСЫГ БУЦААН АШИГЛАХАД ЗАРЦУУЛНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/21     ҮСХ: УЛААНБААТАРТ АЖИЛЛАГЧДЫН САРЫН ДУНДАЖ ЦАЛИН УЛСЫН ДУНДЖААС 121.7 МЯНГАН ТӨГРӨГӨӨР ИХ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/21     МОНГОЛ УЛСЫН ИХ ХУРАЛ, ЕВРОПЫН ПАРЛАМЕНТ ХООРОНДЫН XII УУЛЗАЛТААР ХАМТАРСАН МЭДЭГДЭЛ ГАРГАЛАА WWW.DNN.MN НИЙТЭЛСЭН:2018/09/21     ТӨРИЙН АЛБАНЫ УДИРДАХ АЖИЛТНЫ УЛСЫН ЗӨВЛӨГӨӨН БОЛЖ БАЙНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/09/21     2019 ОНЫГ МОНГОЛ, АМЕРИКИЙН ЗАЛУУЧУУДЫН ЖИЛ БОЛГОНО WWW.EAGLE.MN НИЙТЭЛСЭН:2018/09/21     УУРХАЙЧДЫН АЖЛЫН БАЙР НЭМЭГДЭЖ, ЦАЛИН ӨСЧ БАЙНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/09/20     “ЭРДЭНЭТ”-ИЙН 49 ХУВИЙН ӨМЧЛӨЛ ТОЙРСОН ХУУЛЬ ЗҮЙН МАРГААН ЭЦЭС БОЛЛОО WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/20    

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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Russian gold reserves hit historic high, stockpiling record 223 tons last year www.rt.com

The Central Bank of Russia (CBR) added 300,000 ounces (9.3 tons) of gold to its reserves in December, bringing the total yearly holdings to a record 1,838.211 tons, worth over $76 billion in monetary terms.

According to new statistics, Russia is currently the sixth-largest gold owner after the United States, Germany, Italy, France, and China. Analysts say if the current pace of gold purchases continues, Russia may dethrone China as the fifth-largest bullion holder as early as the first quarter of 2018. Chinese gold reserves currently stand at 1,842 tons.

Acquisitions of the precious metal by Russia reached a record 223 tons last year, accounting for 17.7 percent of overall Russian reserves. Since June 2015, the country has added over 558 tons of gold.

The CBR has more than doubled the pace of its gold purchases, according to Gold.org data. It has been increasing the country’s gold reserves to meet a goal set by President Vladimir Putin to make Russia less vulnerable to geopolitical risks. The Russian gold hoard has increased by more than 500 percent since 2000.

According to the World Gold Council, Russia is not only the largest official buyer of gold but also the world's third-biggest producer, with the central bank purchasing from domestic miners through commercial banks.

In the past 10 years alone, the country has mined more than 2,000 tons of gold, with annual production expected to rise to 400 tons by 2030.

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Railway construction work en route Erdenet – Ovoot to be launched in 2019 www.montsame.mn

Ulaanbaatar /MONTSAME/ Minister of Road and Transport Development J.Bat-Erdene put forward a request to launch railway construction work en route Erdenet – Ovoot in spring of 2019 when he met representatives of the project contractor ‘Northern Railways’ LLC on January 19.

As estimated USD 1.25 billion is needed to build 542km long railway from Erdenet city of Orkhon aimag to Ovoot mine of Khuvsgul aimag, which is considered as one of the biggest construction works in road and transport sector. ‘Northern Railways’ LLC will tackle funding collaboratively with the China Gezhouba Group International Company of China.

The railway will be connected with Russia and China, and become a part of an economic corridor which connects Asia and Europe. Regarding this, the project executor requested from the Minister to carefully define the route to be connected with railways of Russia and China.

Minister J.Bat-Erdene said that the Ministry of Road and Transport Development is ready to take necessary actions. "At present, preparation works of the project are going slow. So, it is necessary to finish the preparation works by the fall of 2018 and launch the construction work in the spring of 2019."

He also added that it is vital to make ongoing activities of the project transparent to the state and public.

In return, representatives of the Northern Railways Company agreed with the Minister's request and expressed their willingness to closely cooperate. 
E.Altanzul

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Why Robert Friedland is bullish on copper www.mining.com

After having invested $1.2 billion to develop the Kamoa-Kakula project in the Democratic Republic of Congo, it is no surprise that Ivanhoe Mines’ executive chairman, Robert Friedland, is bullish on copper.

The engine that drives his confidence comes in the form of electric vehicles which, according to investment manager U.S. Global Investors, need up to four times the amount of copper traditional cars need and whose demand is expected to grow so much that, by 2027, 1.74 million tonnes of copper will be needed to meet it. Today’s demand is of 184,000 tonnes.

China is the main consumer of the world’s copper, with imports reaching 17.35 million tonnes in 2017. In its quest to curb pollution, the Asian giant is forecast to become one of the largest EV manufacturers in the coming years, thus increasing its copper needs even more.

Precisely talking to U.S. Global Investors about this topic, Friedland said that within this context people are going “to need a telescope to see copper prices in 2021.” Besides increased demand, he thinks prices could hit higher notes due to global supply disruptions such as those caused by labour negotiations in the world’s No.1 producer -Chile.

Ivanhoe Mines chairman, however, is confident his own project is going to continue to move forward smoothly. Located in an uninhabited area within the Central African Copperbelt, Kamoa-Kakula is set to become the third largest copper mine in the planet, only topped by Escondida in Chile and Australia's Olympic Dam in terms of sheer size. Its resource base was lifted above a billion tonnes and its average copper grade is estimated at 7.3 per cent.

Even though copper experienced a considerable fall this week, it had been on a tear since May 2017, reaching $7,000 a tonne for the first time in three years. Together with prices, China’s imports climbed to 17.35 million tonnes in 2017, up 2.3 per cent from the previous year.

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New oil-backed cryptocurrency aimed at ending market volatility www.rt.com

The first legally compliant digital currency based on a physical asset, OilCoin, was announced last month. Each token will reportedly represent the value of one barrel of oil.

A team of banking and technology managers, and US regulatory commissioners who launched the digital currency claim it would provide users with a safe haven from cryptocurrency volatility.

RT talked to Alexandre Kateb, president of Competence Finance SAS, to understand if the new digital currency could one day become a real safe haven like gold.

“OilCoin will try to replicate the movement of oil prices, very much like a financial instrument called an oil future,” said Kateb, who explained that this contrasted with bitcoin and other cryptocurrencies, the value of which is determined by supply and demand for the tokens in circulation, and the cost of issuing new tokens.

He added that OilCoin would have to be backed by physical oil inventories, unlike oil futures, which have to be rolled over periodically and is purely a financial instrument.

Kateb said that “very much like a traditional currency, it is possible to back a cryptocurrency by a physical asset” but expressed doubts that OilCoin could become a real safe haven.

He believes “commodity-backed currencies are a thing of the past, because in the modern world it is technological innovation that drives the economy, not the supply of physical commodities.”

Talking about the possibility of a new cryptocurrency affecting oil prices, Kateb said gigantic quantities of physical oil and other oil-related assets would have to be bought in order to have any such impact.

“It has been said that oil futures can affect oil prices, but according to the studies conducted by the IMF and other financial watchdogs, financial instruments backed by oil may affect the volatility of oil prices but not their level which is determined by the traditional supply and demand for the physical commodity,” he explained.

The economist said that OilCoin would be as volatile as oil itself, adding that it would also have the same kind of cost as oil, namely the "carry cost" incurred by storing physical oil.

“Therefore, the real value of an OilCoin could be subject to a continuous depreciation as time goes by. This is akin to the so-called "contango" effect, which is normally observed with oil futures,” said Kateb.

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Vietnam jails most senior Communist Party official in decades www.bbc.com

The most senior Communist Party official to go on trial in decades has been sentenced to 13 years in jail in Vietnam.

Former Politburo member Dinh La Thang was found guilty of economic mismanagement over losses in state oil firm PetroVietnam.

The former head of the firm was sentenced to life imprisonment.

The trial is part of a crackdown on corruption that involves high-profile energy and banking executives.

Twenty other people were sentenced on Monday in Hanoi, receiving jail terms ranging from three years suspended to nine years.

The trial is seen as a showcase of the Communist Party's fight against corruption but also an act of internal purging, correspondents say.

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Rio Tinto chief executive Jean-Sebastien Jacques is bridge-building in Mongolia. www.afr.com

Rio Tinto is doubling down in Mongolia, where its operations have been hit with a triple whammy of complications in the past fortnight.

Chief executive Jean-Sebastien Jacques has travelled to the country and out into the Gobi Desert to reaffirm that Rio is there to stay despite the recent unrelated setbacks.

Rio said it was opening a new office in the capital Ulaanbaatar and expanding its Mongolian workforce to about 80 people.

The company said the expansion and Mr Jacques' visit were planned before the Mongolian government handed its giant Oyu Tolgoi copper and gold mine a $US155 million ($195 million) tax bill.

Mr Jacques was at the underground mine, in the Gobi Desert about 550 kilometres south of Ulaanbaatar, on Sunday.

Oyu Tolgoi was prevented from delivering copper to its customers late last week because of a border road block related to tensions between Mongolia and China.

The border, about 80 kilometres from the mine, reopened at the weekend but it is too soon to declare its operation back to normal given the threat of more protest blockades over new tariffs on Mongolian goods entering China.

The third incident involving Oyu Tolgoi involved a raid by Mongolian immigration officers that led to dozens of overseas workers, including Australians, being kicked out of the country over visa issues.

'We are here to stay'
Rio said those caught up in the visa issues were employed by contractors and not members of its staff.

The raid was part of a widespread crackdown on overseas workers in Mongolia targeting a number of businesses.

Rio's Canadian-listed subsidiary, Turquoise Hill Resources, which owns 66 per cent of the project with the remainder in the hands of the Mongolian government, said last week that it had paid all taxes and charges required under the investment agreement and Mongolian law.

"Mongolia is one of Rio Tinto's most strategically important markets and we are here to stay," Mr Jacques said in a statement to coincide with his visit.

"We have invested more than $7 billion in Mongolia since 2010, including salaries, supplier payments, investment in the community, and $1.5 billion in taxes, royalties and other payments to the government of Mongolia.

"Today we are demonstrating the deepening of our commitment to Mongolia through the establishment of a new country office under new Mongolian leadership to support our exploration, global technology services efforts and relationships in country."

The new office will support Rio's exploration program and technology centre. It will also focus on building stronger relationships with partners in Mongolia.

Munkhtushig Dul, a veteran of the public service and former Noble Group executive in Mongolia, will lead the new office and have responsibility for Rio's day-to-day operations in the country.

The new office will operate separately from the Oyu Tolgoi team led by managing director Armando Torres.

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Ulaanbaatar hosts Mongolia-US annual consultations www.montsame.mn

Ulaanbaatar /MONTSAME/ The 12th political consultations between the Ministry of Foreign Affairs and the United States Department of State took place on January 20 in Ulaanbaatar.

Representatives of the Ministry of Environment and Tourism, the Ministry of Finance, the Ministry of Justice and Home Affairs, the Ministry of Defense, the Ministry of Education, Culture, Science and Sport, the Ministry of Food, Agriculture and Light Industry, the Ministry of Labor and Social Protection, the Ministry of Energy, the National Emergency Management Agency and the Institute for Strategic Studies of the National Security Council joined the US representatives from the Department of State, Department of Health and Human Services, Department of Homeland Security, US Agency for International Development, and U.S. Embassy in the Annual Bilateral Consultations .

The meeting was co-chaired by State Secretary of the Ministry of Foreign Affairs Ts.Davaasuren and the US Acting Assistant Secretary of State for East Asian and Pacific Affairs Susan A.Thornton.

During the meeting, Mongolia reported on the activities of the Government, foreign policy priorities, latest developments in political, social and economic spheres, implementation of the International Monetary Fund’s Extended Fund Facility program and measures taken to attract foreign direct investment and restore investors’ trust.

The sides noted how bilateral relations advanced in 2017 in the margins of the 30th anniversary of diplomatic relations. In particular, bilateral relations have seen developments such as the re-selection of Mongolia as eligible country for a Second Compact Agreement of the Millennium Challenge Corporation, launch of USD 10 million project to boost Mongolia’s meat export, the first consultation on energy policy, re-establishment of Mongolia group in the US Congress, addition of Mongolia to the list of countries eligible for the H-2A/B visa program and implementation of LEAD and FLEX programs.

The meeting agenda included bilateral trade and economic cooperation, US investment into Mongolia, broadening of cooperation in defense, peacekeeping, agriculture, energy and security, finalization of the Second Compact Agreement and cooperation within the H-2A/B visa program.

Moreover, the meeting also touched upon on global issues, including security in the Asia Pacific region and the Korean Peninsula, and the US’ policy in the Indo-Pacific region.

The annual consultations have been held since 1998 in Ulaanbaatar and Washington in turn, with an aim to review the bilateral relationship and determine the future directions and priorities in bilateral relations.
Kh.Aminaa

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Rio Tinto sets up new exploration office in Mongolia www.reuters.com

MELBOURNE (Reuters) - Rio Tinto will set up a new office in the Mongolian capital of Ulaanbaatar, separate from its Oyu Tolgoi mine division, to focus on exploration and building local ties.

The new office, which will expand to 80 staff this year, will support the company’s exploration program and local services units, as well as focus on growing relationships, the miner said in a statement on Monday.

“Today we are demonstrating the deepening of our commitment to Mongolia through the establishment of a new country office under new Mongolian leadership,” Rio Tinto chief executive Jean-Sebastien Jacques said.

“Mongolia is one of Rio Tinto’s most strategically important markets and we are here to stay.”

Rio Tinto operates the Oyu Tolgoi copper and gold mine, which is jointly owned by the government of Mongolia, with 34 percent, and Turquoise Hill Resources with 66 percent. Turquoise Hill is in turn 51 percent-owned by Rio Tinto.

The company had invested more than $7 billion in Mongolia since 2010, including salaries, supplier payments, investment in the community, and $1.5 billion in taxes, royalties and other payments to the government, Jacques said.

Earlier this month Oyu Tolgoi said it was evaluating a bill for about $155 million from Mongolia’s tax authority following an audit of payments made between 2013 and 2015.

Munkhtushig Dul has been appointed as Rio Tinto’s country director and will lead the new Rio Tinto office. He will work in coordination with the Oyu Tolgoi LLC team, led by managing director Armando Torres.

Dul has previously worked in senior roles within the Noble Group’s Mongolian operations, as well as the Mongolian Stock Exchange and the Executive Office of the National Security Council.

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Foreign trade turnover reaches USD 10.5 billion www.montsame.mn

Ulaanbaatar /MONTSAME/ In 2017, Mongolia traded with 163 countries and total trade turnover increased by USD 2.3 billion or 27.3 per cent compared to the previous year, reaching USD 10.5 billion, of which export made up USD 6.2 billion and import 4.3 billion.

The export increased by USD 1.3 billion or 26.1 per cent whereas import went up by USD 977.3 million or 29.1% compared to the same period of the previous year.

Foreign trade balance surplus reached USD 1.9 billion, showing an increase of USD 307 million or 19.7 percent against 2016.

USD 1.3 billion increase in export was influenced by mineral products' export which raised by USD 1.4 billion in 2017, of which coal export up by USD 1.3 billion.
E.Altanzul

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MBD (B2B) Business offers # 16 www.mongolianbusinessdatabase.com

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Please review the following MBD business offers package number 16 and feel free to visit www.mongolianbusinessdatabase.com for more information on each offer and contact us.
MBD Admin: contact@mongolianbusinessdatabase.com 99066062

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