1 IRKUTSK REGION SUPPLIES USD 31 MILLION PRODUCTS TO MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      2 27 PARLIAMENT MEMBERS SUBMIT PETITION ON CABINET DISSOLUTION WWW.ZGM.MN PUBLISHED:2018/11/20      3 AIRBNB IS USING WHAT3WORDS TO LIST STAYS WITH MONGOLIAN NOMADS WWW.TECHCRUNCH.COM PUBLISHED:2018/11/20      4 LOCAL PRECIOUS METAL ASSAY LABORATORY PURIFIES 99 KG OF GOLD WWW.MONTSAME.MN PUBLISHED:2018/11/20      5 LEGISLATOR OF MONGOLIA'S RULING PARTY SUBMITS PROPOSAL ON DISMISSING GOVERNMENT WWW.XINHUANET.COM PUBLISHED:2018/11/20      6 SHOCK DECISION: CHINA CLOSES BORDER TO COAL IMPORTS FROM MONGOLIA WWW.NEWS.MN PUBLISHED:2018/11/20      7 STRATEGY INTRODUCED TO FOSTER PRIVATE SECTOR IN WESTERN MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      8 MONGOLIA TO STRENGTHEN ECONOMIC TIES WITH RUSSIA WWW.XINHUANET.COM PUBLISHED:2018/11/19      9 VOLKSWAGEN TO SPEND $50 BILLION ON ELECTRIC CAR 'OFFENSIVE' WWW.CNN.COM PUBLISHED:2018/11/19      10 HABITABILITY OF MONGOLIA UNDER THREAT FROM CLIMATE CHANGE WWW.ADELAIDENOW.COM.AU PUBLISHED:2018/11/19      ЭРЧИМ ХҮЧНИЙ ИХ АЧААЛАЛ 973 МВТ-Д ХҮРЧЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/20     ЗАСГИЙН ГАЗРЫГ ОГЦРУУЛАХ БИЧИГ ӨРГӨН БАРЬСНЫ ДАРАА "ГЭРЭГЭ" БОНДЫН ХАНШ БУУРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/20     ХАЙНАНЬД ЗУГААЛАХ ГЭСЭН МОНГОЛЧУУД УЛААН-ҮҮДЭЭС НИСЭХ ТАСАЛБАРЫГ ХУУ ХАМЖ БАЙНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/20     ГАШУУНСУХАЙТ БООМТ: ЖОЛООЧ НАРЫН МЭДЭЭЛЛИЙГ УРЬДЧИЛАН ЯВУУЛАХ БАЙДЛААР АСУУДЛЫГ ШИЙДВЭРЛЭХЭЭР БНХАУ-ТАЙ ТОХИРОЛЦЛОО WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/20     ЗАМЫН НӨХӨӨС, 100 ГАРУЙ ТӨРЛИЙН РЕЗИНЭН БҮТЭЭГДЭХҮҮН ДОТООДОД ҮЙЛДВЭРЛЭЖ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/20     АЛТНЫ ОЛБОРЛОЛТ ЭДИЙН ЗАСГИЙГ ДЭМЖИЖ БАЙНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/11/20     МОНГОЛЫН АНХНЫ ХУВИЙН ХӨРӨНГИЙН БИРЖИЙН ХОЁР ДАХЬ БҮТЭЭГДЭХҮҮН: “ПАРК ТАУН” БОНД WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/20     МОНГОЛ, ОХУ-ЫН ТЭЭВРИЙН САЛБАРЫН ХАМТЫН АЖИЛЛАГААГ ӨРГӨЖҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/20     БНХАУ-ЫН ОЛОН УЛСЫН ИМПОРТЫН ҮЗЭСГЭЛЭН БНХАУ-ОХУ-ЫН БИЗНЕСИЙН ХАРИЛЦААГ ӨРГӨЖҮҮЛЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/19     АМЧАМ МОНГОЛ 2018 ОНЫ ЖИЛИЙН ТАЙЛАНГИЙН ХУРЛАА АМЖИЛТТАЙ ЗОХИОН БАЙГУУЛЛАА WWW.IKON.MN НИЙТЭЛСЭН:2018/11/19    

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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Trump tax reform gives Buffett $29bn boost www.bbc.com

US billionaire Warren Buffet says his conglomerate has received a profit boost of $29bn (£20bn) as a result of President Donald Trump's tax reforms, he says.

Berkshire Hathaway reported a record quarterly and annual profit on Saturday.

The Republican law reform, approved in December, cut the corporate tax rate to 21% from 35%.

Mr Buffett, one of the richest men in the world, opposed the plan.

In his letter to investors, Mr Buffett said the tax cut accounted for nearly half of the firm's gain in net worth during 2017.

"A large portion of our gain did not come from anything we accomplished at Berkshire," he wrote. "Only $36 billion came from Berkshire's operations. The remaining $29 billion was delivered to us in December when Congress rewrote the US Tax Code."

Last month Barclays, a British bank, predicted that Berkshire Hathaway would be a major beneficiary. It said that after an initial windfall, its earnings could continue to rise by 12% on an ongoing basis.

Passing the bill through Congress was a major victory for President Trump. He called it "the largest tax cut in the history of our country" and a gift to the nation.

The reforms give the vast majority of taxpayers lower tax bills in the immediate future. However those cuts expire in 2025.

Mr Buffett, who believes in higher taxes for the rich, has said he would have preferred a different tax bill.

What does Berkshire Hathaway do?
Berkshire Hathaway has holdings in freight rail, major insurance companies, real estate, newspapers and utilities.

Its investments include Geico, the Kraft Heinz Co, Fruit of the Loom and Acme Brick Company, as well as Northern Powergrid subsidiaries, which serve about 3.9 million customers in the UK.

The firm and its subsidiaries employ more than 367,000 people globally.

Mr Buffett has led it for more than four decades, making his vast fortune.

According to Fortune magazine's ranking of world billionaires, he is worth $87bn, behind only Bill Gates and Jeff Bezos, the founders of Microsoft and Amazon respectively.

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Russian billionaire Deripaska quits as president of energy firm En+ Group & metal giant RUSAL www.rt.com

Russian tycoon Oleg Deripaska has quit as president of energy giant En+ Group and RUSAL, one of the largest aluminum companies in the world. The resignations will take effect on March 15.
The board of directors of the En+ company accepted Deripaska’s resignation as president of the group, and approved the appointment of Maksim Sokov to replace him, the firm’s website announced on Friday.

"The board of directors has approved... the appointment of Maksim Sokov as president of the group, and the board of directors also approved the resignation of Oleg Deripaska as president of the group, but he retains the post of non-executive director," the statement said.

En+ Group owns a 48 percent stake in RUSAL, which was founded in 2000 and has assets in 20 countries, with consumers in Europe, North America, Southeast Asia, Japan, China and South Korea.

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Electric powered Minis to be built in China www.bbc.com

Electric-powered Mini cars are to be built in China, as well as in Oxford where most Minis are currently made.

BMW, the owner of the Mini brand, said it had agreed an outline deal with Chinese manufacturer Great Wall Motor.

Cars made under that partnership will be for the Chinese market.

The deal will not affect BMW's plan, announced last year, to assemble the first electric Minis in Oxford from 2019. Those cars will use electric motors made in Germany.

BMW and Great Wall Motor still have to work out the exact location of their production line and how much they will invest.

BMW already has a joint venture with Brilliance Auto to build BMW-branded cars in China.

As well as two plants assembling cars, the joint venture has an engine plant which includes a battery factory.

Last year, BMW sold 560,000 cars in China - more than double the amount sold in its next two largest markets, the US and Germany, combined.

By Theo Leggett, BBC business correspondent
BMW is an ambitious company. It wants to expand, and it wants a bigger share of the fast-growing market for electric vehicles.

China scores highly on both counts - it has a huge number of consumers, and government policies there heavily favour electric cars.

BMW thinks that in order to take full advantage, it needs a local production base.

So where does this leave Mini's UK factories? Initially at least, the Chinese factory will produce vehicles for the Chinese market.

The cars made there there will be a different model from the electric Mini due to be built in Oxford from 2019, and BMW insists the Mini brand can expand internationally without calling into question its commitment to the UK.

But the announcement may send another signal to the government - that Mini can survive without the UK, and is more than capable of moving production elsewhere if it finds the business climate after Brexit too uncomfortable.

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Rio Tinto says changing structure, moving some staff www.mining.com

LONDON, Feb 22 (Reuters) – Rio Tinto is moving some of its support staff as it creates three global hubs, but is not changing its operating model, it said on Thursday.

Rio Tinto, the second biggest miner by market capitalisation, has listings in London and Australia, a headquarters in London and an Australian office.

In addition, it has created a commercial and marketing hub in Singapore and three global hubs.

Rio Tinto said in an emailed statement its operating model was not changing, but it was "adjusting where work is done by creating three global hubs" and it was starting a consultation with British employees as some roles would be moved to one of the three hubs. It did not specify where the hubs would be.

Earlier the Financial Times reported the plan.

The biggest miner BHP , which like Rio has a dual structure, is under pressure from activist investor Elliott Advisors to simplify its set-up, but BHP says the evidence so far is that any gains would be less than the cost of change.

Rio CEO Jean-Sebastien Jacques said he regularly reviews Rio's structure and is comfortable with it.

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Economic recovery program runs effectively www.montsame.mn

Ulaanbaatar/MONTSAME/ At its regular meeting on February 22, the Cabinet reviewed an accomplishment of ‘Economic recovery program’ by end of 2017. Relevant ministers were instructed to intensify the slow-paced activities.

136 out of 204 events in total included in the program were implemented last year and 68 will be implemented in the first half of this year. The positive results appeared when key indicators of macroeconomics and society before and after the program implementation were compared.

For instance, the economy rose, budget deficit and the loss in the GDP declined, external trade circulation, export and currency reserve increased, currency exchange rate stabilized, confidence in Tugrug restored and savings in Tugrug rose, Mongolia’s special drawing rights improved as well as conditions met to restore investors’ confidence.

M.Unurzul

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Mongolia-Russia Intergovernmental Commission to meet www.montsame.mn

Ulaanbaatar /MONTSAME/ The 11th Mongolia-Russia Intergovernmental Commission meeting will take place in Moscow on February 26-28.

The regular meeting of the Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation will be led by Mongolian Deputy Prime Minister U.Enkhtuvshin and Russian Minister of Natural Resources and Environment Sergey Donskoy.

The 11th meeting will review the implementation of the protocol of the 10th meeting and address bilateral cooperation on construction of a power plant at Eg River, border region development, road and transport, energy, environment and agriculture sectors.

Moreover, the Sub-Commission on Regional and Cross Border Cooperation will meet to discuss the implementation of the Mongolia-Russia-China Economic Corridor program and bilateral cross border cooperation.

The Sub-Commission meeting will be led by Deputy Minister of Foreign Affairs B.Battsetseg from Mongolian side and Deputy Minister of Economic Development Alexey Gruzdev.
Kh.Aminaa

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MSE introduces upcoming changes and two new indices www.gogo.mn

Following the Financial Regulatory Commission’s approval of revisions on “Trading rules”, “Index Calculation Rules”, and “Listing Rules” on February 8, 2018, Mongolian Stock Exchange (MSE) has introduced the amendments to the rules.

The notable changes of Trading Rules are as follows:

Closing price to be calculated as a weighted average of the trades within the last hour prior to trading close
Upper price limit for block trade to be removed
New order types such as Fill or Kill, Minimum Fill and Iceberg order to be enabled. 
Changes of Listing Rules:

The regulations for dual-listing including the waivers and exemptions are provided;
Listing criteria and requirements are updated including a new section for mining companies
Listing fees are set to be calculated from the total market capitalization
In order to promote the sustainable activities of listed companies, the companies with operations that promote sustainable development shall receive discounts on their listing and annual fees.
Two new indices start retrospectively from January 2, 2018

Additionally, the MSE has introduced 2 new indices Board I and II (MSE-A & MSE-B). MSE informed that this will allow investors and market participants to understand which board of securities is driving the market performance as well as laying a foundation for introduction of index based products in the future.

Calculation of Board I (MSE A Index) and Board II (MSE B Index) indices start retrospectively from January 2, 2018 with the initial value of 10 000 each and from the start of the year, MSE A Index has gained by 7.9 percent and MSE B Index by 0.8 percent.

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Oyu Tolgoi provides update on Mongolian domestic power solution www.gogo.mn

Ulaanbaatar, Mongolia - Oyu Tolgoi LLC wishes to clarify how it will deliver a long-term domestic power solution for Oyu Tolgoi in response to recent commentary.

On 15 February 2018 the Government of Mongolia cancelled the Southern Region Power Sector Cooperation Agreement (PSCA). The PSCA laid out a framework for cooperation between the Government of Mongolia and Oyu Tolgoi LLC to deliver a comprehensive energy plan for the South Gobi region. The Government of Mongolia’s primary intention was to develop the Tavan Tolgoi Power Project (TTPP), a new independent power plant at the Tavan Tolgoi coalfields, with Oyu Tolgoi as off-taker rather than owner.

The cost of building a power plant by Oyu Tolgoi is not included in the $5.3 billion investment approved for the development of the underground in May 2016.

The formation of the PCSA and prioritisation of discussions and evaluation of TTPP, at the specific request of the Government of Mongolia, resulted in the suspension of Oyu Tolgoi’s plans to start construction its own power plant in 2012. It also suspended Oyu Tolgoi’s obligation under the 2009 Investment Agreement to source power from within Mongolia by 2017 because it was recognised by the Government that the TTPP process would take longer than four years.

While TTPP is moving forward and despite considerable efforts by the Government’s Project Implementation Unit, MCS (TTPP’s domestic shareholder), Rio Tinto and Oyu Tolgoi to progress the project, its development has been slow due to limited investors and lenders appetite. TTPP currently lacks a lead investor to develop a viable technical and commercial proposal for Oyu Tolgoi to consider and it is unable to secure financing without a credible lead investor. Extensive negotiations and lender due diligence would still be required once those key issues are resolved. TTPP would therefore not be operational within four years.

Oyu Tolgoi has been reviewing other options that can be implemented within the four year timeframe, including refreshing previous plans to develop its own power plant at the Oyu Tolgoi mine site. In this context, Oyu Tolgoi will be engaging with the Minister of Energy to ensure the necessary permits and approvals are in place, including the application of permits that were submitted for renewal in January 2017, but which have not been granted, and to ensure overall alignment on the way forward.

The cost of building a power plant by Oyu Tolgoi is not included in the $5.3 billion investment approved for the development of the underground in May 2016.

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February 22, 2018 trading report www.mse.mn

On February 22, 2018, 274,580 shares of 24 firms listed as Tier I, II, and III were traded. 8 companies’ shares increased in price while those of 18 companies' shares decreased and 3 companies' shares unchanged. "Euroasia Capital Holding" (SUN+15.00%) and "Tushig Uul" (TUS+14.99%) were the top performers whereas "Materialimpex" (MIE-13.16%) and "Tavantolgoi" (TTL-9.70%) were the worst performers.

On the secondary market for block government securities, 1,997 bonds worth MNT197.5 million were traded.

The TOP-20 Index decreased by 3.38 percent to reach 20001.38 points. The MSE market cap stands at MNT2,413,079,369,346.00

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Mongolia establishes Cashmere Development Fund www.news.mn

The Schneider Group noted that cashmere market has been recovering since a low point in 2014. This is of great benefit for Mongolia as one of biggest producer of cashmere. Subsequently, the Mongolian Government is focusing on cashmere exports and increasing the production workforce. Mongolia produces a third of the global supply, and cashmere makes up 40 percent of the country's non-mineral exports. The country trades MNT 700-800 billion of cashmere annually.

Mongolia plans to implement ‘Cashmere 2’ programme in 2018-2022. The four-year program is expected to increase the country's production and export of final cashmere products 5.7 times. The aim is to increase production of finished goods by 60-70 percent.

For this propose, the Cabinet has established the Cashmere Development Fund. The MNT 500 billion fund will support the cashmere industry.

Mongolia exported 5400 tonnes of washed cashmere to China in 2017. This accounted for 60 percent of total raw cashmere and 54.3 percent of revenue.

The Schneider Group is a global specialist in the processing and trading of fine wools and high value fibres. The company was set up in the early 1920's in Australia.

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