1 US-MONGOLIA 'THIRD NEIGHBOR TRADE ACT' ON THE WAY WWW.THEDIPLOMAT.COM PUBLISHED:2018/11/17      2 CHINA'S FIGHT AGAINST SMOG MAKES PALLADIUM 2018'S BEST METAL WWW.MINING.COM PUBLISHED:2018/11/17      3 MILLENNIUM CHALLENGE CORPORATION PRESENTS GMS LICENSES WWW.MONTSAME.MN PUBLISHED:2018/11/17      4 MONGOLIA CALLS FOR GLOBAL ATTENTION ON CLIMATE CHANGE WWW.NEWS.MN PUBLISHED:2018/11/17      5 ADB OPENS A NEW WASTEWATER TREATMENT PLANT IN ARVAIKHEER, MONGOLIA WWW.AGENPARL.EU PUBLISHED:2018/11/17      6 CHINA TO BOOST COOPERATION WITH INDIA, MONGOLIA: DEFENSE MINISTER WWW.GLOBALTIMES.CN PUBLISHED:2018/11/17      7 DEATH ON MONGOLIA’S ‘COAL ROAD’ WWW.NEWS.MN PUBLISHED:2018/11/17      8 MONGOLIA SHAKEN BY WIDENING LOAN SCANDAL WWW.ASIA.NIKKEI.COM PUBLISHED:2018/11/17      9 MONGOLIA’S UNEMPLOYMENT FALLS BY 2.2 PERCENT WWW.NEWS.MN PUBLISHED:2018/11/16      10 MEETING MEAT DEMAND: MONGOLIA TO TRADE 17.9 PERCENT OF LIVESTOCK WWW.NEWS.MN PUBLISHED:2018/11/16      БНСУ-ЫН АЖ АХУЙН НЭГЖҮҮДИЙН АУТСОРСИНГ ЗАХИАЛГЫГ ГҮЙЦЭТГЭХ ЗАЛУУЧУУДЫГ СОНГОН, ШАЛГАРУУЛНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/17     НҮҮРСНИЙ ЭКСПОРТ 10 ХУВИАР ӨСӨЖ, 31.3 САЯ ТОНН БОЛОВ WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/17     СУДАЛГААГААР ЖДҮ ЭРХЛЭГЧИД ЗЭЭЛИЙН ХҮҮНИЙ ЗАРДАЛ ХАМГИЙН ИХ ХҮНДРЭЛ УЧРУУЛДАГ ГЭЖ ХАРИУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ERDENE RESOURCE DEVELOPMENT: ХАЙГУУЛЫН ЗАРДАЛ III УЛИРАЛД 42 ХУВИАР БУУРСАН WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ГОРХИ, ТЭРЭЛЖИЙН БАЙГАЛИЙН БОХИРДОЛД АНХААРАЛ ХАНДУУЛЖ ЭХЛЭВ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     ИРЭХ БААСАН ГАРАГТ ХОТЫН ДАРГЫГ ОГЦРУУЛАХ ЭСЭХИЙГ ХЭЛЭЛЦЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     “АМГАЛАН” ХОТХОНД БАЙРЛАХ ГЭРТЭЭ КАННАБИС ТАРЬЖ, УРГУУЛЖ БАЙСАН ТУРК ИРГЭНИЙГ БАРИВЧИЛЖЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/11/17     ӨНӨӨДӨР АВТОМАШИНЫ ДУГААРЫН ХЯЗГААРЛАЛТ ҮЙЛЧЛЭХГҮЙ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/17     ГАШУУНСУХАЙТЫН НҮҮРСТЭЙ МАШИНЫ ЦУВАА 120 КМ БОЛЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/16     ТАТВАРЫН ОРЛОГО 32.2 ХУВИАР ӨСӨЖ, ТӨСВИЙН ТЭНЦЭЛ 341.9 ТЭРБУМ ТӨГРӨГИЙН АШИГТАЙ ГАРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/16    

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

64x64

Irish men to drive from Mayo to Mongolia to raise money for the homeless www.thejournal.ie

Four Irish friends are to journey from Mayo to Mongolia in order to raise thousands for the homeless.

The foursome will drive from Ireland to Russia and then on to Mongolia as part of the famous intercontinental Mongol Rally, and want to raise money for the Dublin Simon Community along the way.

It’s brilliantly simple. We give you a start point and a finish point but where you go or what you do in between is entirely your steaming bag of adventuring magic. We recommend that you don’t spend too long planning your route or pouring over useful maps or guidebooks. Find out what’s there when you arrive. Unleash the unexpected. – Mongol Rally organisers
To date they have fundraised over €3,250 for their chosen charity, the Simon Community. They have pledged to donate 100% of this money to the charity – their car for the trip is sponsored by JJ Burke’s garage in Co Mayo.

“We’re four friends – three from Mayo and one from Greystones,” explained Ben Ruddy. “We wanted to do something for charity and we were thinking these days you have to do something big to get people’s attention.”

Wicklow man Luke Cafferky and Mayo men Ruddy, Dave Kelly, and Joe McGing, make up the group. Kelly and Ruddy grew up together, and met Cafferky while travelling in South America. With Ruddy having worked in South Korea for the last seven years, the men are travelling some distances to reunite for the challenge.

As “mad travellers”, they thought the long trip would be perfect for them.

The Mongol Rally began in 2004, with just six teams taking part in the first event. Though the event used to end in Mongolia, now it technically ends in Russia, after the drivers pass through Mongolia.

Ruddy volunteered with the Simon Community while in college, so he said he always wanted to go back and do something else to help them. “I knew there was such a spiralling problem with homelessness in the Leinster region,” he explained. “So we decided to go with Dublin Simon Community. ”

On 7 July, they will leave Westport, take the ferry from Rosslare and begin their trip to Mongolia. To make things even more interesting, they will be travelling in a 1.2 litre Clio.

“We’ll be passing through Iran, Kazakhstan and Mongolia so we are hoping to take a less well-travelled path to get out there,” said Ruddy. They are also planning to raise money right up until they arrive in Mongolia, in September.

It will take about three months to complete the journey. Around 350 cars are taking part this year, so the group won’t be alone in their challenge.

“So we will definitely be in touch with other teams and it’s definitely a case of helping each other cross the finish line,” said Ruddy. The event isn’t a race, he said. “It doesn’t matter how long it takes you. There is a closing date to get there – September 10, but most people don’t mind. It’s the camaraderie and the journey rather than a race.”

Plus, with a limit of a 1.2l car engine, they can’t exactly travel fast anyway.

The four men know that taking part in such a challenge will be, well, challenging. “We will definitely have problems along the way,” said Ruddy. “We barely know how to change a tyre! It’s going to be interesting – there’s definitely not a mechanical bone between us. If we break down we’ll have to get on the good side of the locals.”

“We think it will be good challenge – we definitely are determined to get out there,” he added.

“We are hoping we will get to €5000 or more,” said Ruddy of their fundraising goal. “We really need to get sponsors behind us.”

They have even set up a site where people can follow their progress and donate if they wish.

...


64x64

Rio Tinto’s Mongolian copper worries mount www.mining.com

Shares in Rio Tinto-controlled Turquoise Hill Resources opened 3% lower on Friday after the Mongolian government reinstated a decade-old agreement ordering the Vancouver-based company to source power for its Oyu Tolgoi mine domestically.

Rio Tinto, down 1.8% in New York, could face higher costs on its $5.3 billion underground expansion of the giant copper-gold mine in the South Gobi desert near the border with China.

Mongolia gave Rio four years to build a local power plant which could come with a bill as high as $1 billion to serve the mine in the land-locked country to replace Chinese suppliers.

Rio said in a press release Friday "the cost and means of financing this will be finalized between shareholders":

Rio Tinto will continue to review its capex forecasts for the project but has already earmarked $250 million a year for the development of a power station in Mongolia in its 2019 and 2020 capex forecasts.

The underground expansion would lift Oyu Tolgoi production from 125–150kt this year to 560kt at full tilt from 2025, making it the biggest new copper mine to come on stream in several years.

Last month Rio Tinto set up a 80-person office in Mongolia, independent from Oyu Tolgoi to strengthen ties with Ulaanbaatar and serve as a base for exploration in the vast mineral-rich nation of fewer than three million inhabitants.

Earlier January the government served the mine with a new bill for $155 million in back taxes which the company is disputing. Turquoise Hill also had to declare force majeure on deliveries after protests by Chinese coal haulers disrupted deliveries near the border.

Rio has come under pressure from shareholders about its alleged lack of transparency about pledges to the Mongolian government and escalating costs for the expansion, as well as its treatment of minority shareholders of 51%-owned Turquoise Hill.

Rio holds an effective one third of Oyu Tolgoi via its shareholding of Turquoise Hill and the Mongolian government 34%.

Copper was trading near its highs for 2018 on Friday jumping to $3.24 a pound or $7,140 a tonne. Copper averaged $2.80/lb ($6,192/t) over the course of last year.

...


64x64

Rosneft raises border price for gasoline: Fuel price increases by 30-60 percent www.gogo.mn

Although A92 and A80 have been exempted from Excise Tax on Gasoline, the fuel prices have been increased by 30-60 percent. Accordingly, the Ministry of Mining and Heavy Industry commented on the price increase during its regular “Transparency- Mining” press meeting. Earlier this month, Minister of Mining and Heavy Industry Sumiyabazar Dolgorsuren met with the delegation from Russian Rosneft LLC. The minister reported that the results of the meeting will be released after high-level meetings are over; however, he highlighted that the Rosneft delegations might offer more favorable conditions for Mongolia.

Concerning the price increase, Radnaasuren Lkhamaasuren, Deputy Head of Mineral Resources and Petroleum Authority of Mongolia (MRPAM), explained, “Oil dealers recovered around 60 percent of their loss through the excise tax exemption. However, border price had to increase due to oil price surge in the global market. Thus, oil dealers have increased fuel price by MNT 20- 30 per liter in order to prevent price fluctuation.” Fuel Policy Department of the Ministry of Mining and Heavy Industry informed that the ministry is holding a policy to maintain retail price of fuel. There will not be any fuel shortage issue in the future.

Another good news is the reducing USD /MNT rate. This will have significant impact in maintaining fuel price.” MRPAM is expected to collect MNT 291.8 billion to the State Budget. The officials informed that a total of MNT 223.4 billion will be collected from oil export revenue. For instance, January report shows that MNT 21.9 billion has been accumulated to the budget, of which MNT 19.2 billion were from oil export revenue, displaying 7.5 percent of annual plans. As of February 5, Mongolia’s fuel reserve could cover 39 days of average consumption, informed the related officials.

Additionally, Organization of the Petroleum Exporting Countries’ (OPEC ) decision to reduce production output and the political instability in the second half of 2017 had significant impact on global oil price. As for Mongolia, border price at Mongolia-Russian borders have been increased since July 2017, reaching USD 140 per ton. International Monetary Fund’s Extended Fund Facility program also forced Mongolia to increase excise tax on gasoline in July and November of last year. Furthermore, Rosneft increased their border price of fuel this month.

...


64x64

Industrial production increases www.montsame.mn

Ulaanbaatar /MONTSAME/ A total production of commodities of industrial sector reached MNT 12.9 trillion in 2017, showing MNT 3 trillion or 30.3 percent increase compared to same time last year, reported by D.Sumiyabazar, the Minister of Mining and Heavy Industry.

Specifically, total production of mining, extractive industry reached MNT 9.4 trillion increasing by MNT 2.3 trillion or 32.8 percent, of which MNT 1.1 trillion or 78.7 percent growth was made up in coal mining and MNT 1 billion or 20.7 percent growth in metal ore mining.

Mining, extractive sector accounts for 72.6 percent of production of industrial sector.

B.Batchimeg

...


64x64

The FBI, CIA and NSA say American citizens shouldn't use Huawei phones www.cnn.com

U.S. intelligence agencies have issued a stern warning to Americans: Do not buy smartphones made by Chinese tech companies Huawei or ZTE.
Top officials from the CIA, NSA, FBI and the Defense Intelligence Agency testified in front of the Senate Intelligence Committee on Tuesday that the Chinese smartphone makers posed a security threat to American customers.

Republican Senator Tom Cotton of Arkansas asked the group to raise their hands if they would recommend private American citizens use products or services made by Apple competitor Huawei or smartphone maker ZTE. None of them did.

FBI Director Chris Wray explained why it is an issue for companies and local governments to use Huawei or ZTE products and services.

There is a risk of letting any company "beholden to foreign governments" inside the country's telecommunications infrastructure, he said. Huawei is a global leader in networking equipment, and the government has previously blocked it from selling technology to some federal agencies.

"It provides the capacity to maliciously modify or steal information," Wray said. "And it provides the capacity to conduct undetected espionage."

Huawei has not made strides in the U.S. market in large part because of government concerns that the Chinese government can use its smartphones and other products for intelligence gathering.

In 2012, Congress released a report saying the two Chinese companies should be viewed "with suspicion." The companies both strongly disputed the reports' findings at the time, with Huawei calling them "baseless."

In January, talks between Huawei and AT&T to sell its smartphones fell through. On Tuesday, Wray praised the efforts of telecommunications providers that are trying to "raise awareness on this issue."

Huawei said in a statement Wednesday that it is "monitoring developments" in Congress, but it declined to comment directly on the intelligence committee hearing.

The company highlighted its strong position in many markets outside of the U.S. Its phones outsell Apple's in places like Central and Eastern Europe, according to research firm Canalys.

"We operate in 170 countries where there is trust with governments and customers. We pose no greater cybersecurity risk than other vendors," Huawei said.

The company insisted it "has never been asked to provide access to our technology, or provide any data or information on any citizen or organization to any government, or their agencies."

ZTE said in a statement that its mobile phones and devices incorporate chipsets and other components manufactured in the U.S.

"As a publicly traded company, we are committed to adhering to all applicable laws and regulations of the United States, work with carriers to pass strict testing protocols, and adhere to the highest business standards," a representative for ZTE said in an emailed statement.

Cotton introduced a bill last week that would prohibit the government from contracting with companies that use Huawei or ZTE products. It's a companion bill to the "Defending U.S. Government Communications Act" put forth in the House last month. In 2013, Congress passed a law that prevented some federal agencies from buying tech from these firms without approval.

It's the latest push by Congress to prohibit foreign-made products due to intelligence concerns. For instance, the Russia-based Kaspersky Lab has been banned from federal computers.

...


64x64

Unemployment decreased www.montsame.mn

Ulaanbaatar /MONTSAME/ The National Statistics Office of Mongolia presented the social and economic data of Mongolia as of January of 2018 on February 14.

As of January, a number of working age people reached 1.4 million, of whom 801.6 thousand are living in urban areas and 565.6 are in rural areas.

In the fourth quarter of the last year, the employment rate increased by 1.3 points compared to that for the previous quarter, whereas unemployment decreased by 6.7 thousand.

Economically inactive population is made up of 264.9 thousand pensioners, 240.9 thousand students and 60.4 thousand people with disabilities.

...


64x64

Melbourne street art video spreads message of Mongolian pollution problem www.abc.net.au

Among the more recent artworks to adorn the walls of a small Melbourne park is a mural drawing attention to air pollution in Mongolia.

But the artist behind the Docklands piece said a newly-released video showing the making of the mural portrays the artwork's message better than the mural itself.

As well as being the world's coldest capital city, with temperatures as low as minus 40 degrees Celsius, Ulaanbaatar in Mongolia is among the most polluted cities in the world.

Melbourne-based artist Khosnaran Kurelbaatar, aka Heesco, moved to Australia from Mongolia in 1999 and still has friends and family in Ulaanbaatar.

"I go visit, if not every year, then every second year," he said, adding that he has watched the city's air pollution problem "growing spontaneously".

"I have so many family members there, and seeing what they go through started really affecting me.

"It's pretty much a humanitarian disaster."

Heesco said using art to draw attention to the issue was "better than doing nothing".

"As a mural artist I do have a small amount of viewers, of followers, that I can reach," he said.

Working with organisation Breathe Mongolia, Heesco arranged for a photographer to shoot images showing the pollution on the streets of Ulaanbaatar.

He used two of those photos, both showing children wearing facemasks, as the basis for his mural.

Local videographers then filmed Heesco as he painted the work.

"I wanted to start off painting a really clear blue sky — Mongolia was once known as the land of blue sky," Heesco said.

He then painted the buildings and people before spraying lightly over the artwork with grey paint to portray the city's smog.

"In the video process you will be able to see from the beginning to the end, which I think works better."

Heesco said he hoped the mural and video would help inform the public about Mongolia's smog problem and draw the attention "of whoever is willing to contribute" to solving it.

"Mongolia needs sustainable solutions to this problem," he said.

He said places like Melbourne have the research facilities and funding required to come up with those solutions, but those researchers had to first be aware there was a problem to solve.

"People won't know unless we do something and talk about it," he said.

"Hopefully this will bring some attention to it."

...


64x64

False allegation over EMC's 49 percent ownership debunked at court www.gogo.mn

The Government has failed in front of the judiciary. It has been confirmed that the Government has come to a deadlock after pressuring the private sector and intervening with its operations. Mongolian Copper Corporation (MCC ) has issued a claim against the Government’s decision to nationalize Erdenet Mining Corporation (EMC) to the Administrative Court, which was ruled in favor of MCC last friday.

It was confirmed by the court that MCC did not loan from the Government to purchase EMC's 49 percent stake. In other words, the claim about MCC buying EMC’s ownership through a loan from Bank of Mongolia (BoM) and Development Bank of Mongolia (DBM) has been proven false. Although the MCC had announced several times that the company did not loan from BoM and DBM, the public agencies have been refusing to provide evidence; however, the Administrative Court required the Government to collect some of the necessary information.

The related documents included a proof that the company did not receive any loan from DBM or BoM. This turn of event raised more attention than the court’s decision for some as its the first time DBM and BoM have released any document relating to the Government’s accusation. Right after the Cabinet was formed, the Minister of Justice and Home Affairs Nyamdorj Tsend proudly declared to settle EMC’s issue in the first 100 days and fulfilled his promise; however, his illegal actions driven by his own interests have failed the Cabinet. During the court ruling, it was also proven that the Government’s Agency for Policy Coordination on State Property (PCS P) has re-appointed EMC’s board of directors, announced distribution of dividend and made its transaction, as well as increasing the number of directors and making structural changes before the court ruled its decision.

While EMC is rushing to ratify 2018 purchase plan, premium of the board, contract review of and the CEO and tender lists, the court has ruled to suspend the rules and regulations of EMC and Mongolrostsvetmet LLC, which was approved by the PCS P, as well as the resolution on reappointing the board. Whether if the Government will accept or reject the suspension will display the true face of justice system in Mongolia. The administration law states that a suspension act must be settled within a week; but the PCSP has made several requests and complaints to delay the case. The plaintiff’s attorney presumed that the Government is trying to buy time in order to ratify the board premium and 2018 tender lists.

Tugsbilig.B

...


64x64

Tavan Tolgoi JSC releases 2017 financial report www.gogo.mn

 

According to the report, the sales revenue totalled MNT 428 billion in 2017, 2.4 times higher compared to the same period of 2016. The company paid a total of MNT 48 billion to income tax, earning a total of MNT 141 billion net profit.

In 2016, the company has distributed 85 percent of its net profit (MNT 45.9 billion, MNT 872 per share) as a dividend.

Additionally, the company's market value reached MNT 569 billion, the bid for shares hit MNT 1.4 million and distributed MNT 130 thousand per share in 2011, setting a record in Mongolian Stock Exchange.

...


64x64

Russia gets $41.5 billion boost from OPEC deal www.rt.com

Since the start of the OPEC-Russia production cut deal, Russia’s oil companies and government have received the equivalent of around $41.5 billion more in proceeds, thanks to the higher oil prices.
Due to the higher oil prices as a result of the pact, Russia’s federal budget has received so far $29.41 billion (1.7 trillion rubles) more, Russian Energy Minister Alexander Novak tweeted on Tuesday. The oil companies - a combined $12.11 billion (700 billion rubles) more since the beginning of 2017.

The higher revenues are the result of the $15-$20 increase in oil prices, compared to the price of oil before the deal between OPEC and a dozen non-OPEC nations led by Russia was signed, the minister said.

Russia is cutting 300,000 bpd as part of the pact with OPEC, and although there have been voices and speculation that some Russian companies are unhappy with the agreement that hampers their production expansion plans, Moscow has been keeping its end of the deal so far.

Russia’s crude oil production in January was basically flat compared to December 2017, after rising production at foreign firm-led projects compensated for small declines at the two major Russian oil producers, Rosneft and Lukoil.

The oil price rally earlier this year has caused many to wonder whether Russia and/or some OPEC members could ditch the deal because they wouldn’t want oil prices too high—a scenario that could incentivize US shale production too much.

US production is beating previous growth expectations, while minister Novak said in an interview with Russian news agency Interfax that the goal of the OPEC-Russia deal in bringing the oil market back to balance had been two-thirds achieved.

Asked how the cartel and allies will exit the deal, Novak said that it should be gradual and will likely take several months—between two and five months—to avoid a sharp increase in production that could again result in oversupply.

...