|"Open to Export" ICC WTO International business award||ICC WTO||London|
Ulaanbaatar /MONTSAME/ Deputy Prime Minister U.Enkhtuvshin exchanged views on the Mongolia-China relations and cooperation with Xing Haiming, Ambassador Extraordinary and Plenipotentiary of the People’s Republic China to Mongolia, on October 30.
The Chinese Ambassador congratulated U.Enkhtuvshin on becoming Deputy Prime Minister, and he further expressed Chinese readiness to closely cooperate in all sectors and implement joint projects and programs in certain sectors.
The Deputy Prime Minister noted that he would pay big attention on the bilateral relations and cooperation as he serves as Head of the Mongolian part at the Mongolia-China Intergovernmental Commission as well as the Cooperation Council on Minerals, Energy and Infrastructure Affairs.
The parties exchanged views on accelerating ongoing and planned projects financed by a Chinese Government’s soft loan and non-refundable aid on constructions of paved-roads and bridges.
U,Enkhtuvshin pointed out that Mongolia aspires to maximize the trade turnover to USD 10 billion by 2020 after improving carrying capacity of the Gants Mod border checkpoint, reducing traffic jams at borders, increasing the export of mineral, agricultural and animal products.
The sides also considered as necessity to intensify construction works of the economic cooperation zone in Zamyn-Uud and Erenhot and promptly launch joint feasibilities for establishing a free trade agreement.
Ulaanbaatar /MONTSAME/ The Financial Regulatory Commission (FRC) has raised the share capital of the Mongolian Stock Exchange JSC by MNT20 billion and made changes to the securities registration.
Thus the Mongolian stock exchange company now has the share capital of MNT21.8 billion or 218.4 million units of shares with nominal value of MNT100 each.
The FRC held its regular meeting on October 27 and made decisions on issuance and cancel of special licenses of some companies.
IMF Reaches Staff-Level Agreement on the First and Second Reviews of Mongolia’s Extended Fund Facility www.imf.org
Mongolia’s economy is recovering and GDP growth is now projected at 3.3 percent this year and 4.2 percent in 2018, reflecting buoyant external conditions and improving confidence. Key targets have been achieved.
Important structural reforms are underway to lay the foundations for long-term growth and break the boom-bust cycle. The key near-term focus is supporting the authorities’ policies to strengthen the banking sector and enhance fiscal policy making.
The IMF welcomes the authorities’ commitment to continue the reform momentum to cement the long-term benefits.
An International Monetary Fund (IMF) staff team led by Mr. Geoff Gottlieb visited Ulaanbaatar from October 18-30, 2017 to conduct discussions on the first and second reviews of the three-year Extended Fund Facility (EFF) arrangement approved on May 24, 2017, in an amount equivalent to SDR 314.5054 million, or about US$434.3 million (see Press Release No. 17/193).
At the conclusion of the visit, Mr. Gottlieb made the following statement:
“The economy is growing more strongly than expected, with GDP growth likely to reach at least 3.3 percent this year on the back of strong coal exports, a robust recovery in services, and a return of confidence following the approval of the $5.5 billion IMF-supported package. Growth is expected to become more broad-based in 2018 as the domestic economy revives, but there are downside risks to the coal sector.
“Performance under the program has been positive, with all quantitative targets met. Fiscal results have been better than expected, supported by stronger revenues and tight expenditure control. The overall fiscal deficit is likely to be 7.5 percent of GDP this year compared to 17 percent in 2016. The authorities’ proposed 2018 budget is in line with the revised program that envisages a deficit of 6.5 percent of GDP. The authorities have committed to save half of any revenue overperformance should it materialize, thus helping to reduce borrowing and ensure debt sustainability. The remainder would be used to fund productive one-off spending in line with the government action plan. Both this year and next, the authorities have allocated a one-time bonus to civil servants. Net international reserves have improved, and the authorities have rolled over the sovereign bonds maturing in 2017 and 2018 at attractive interest rates, removing a key risk to the external position.
“The authorities have moved ahead with their ambitious structural reform agenda, which will help to sustain growth over the medium term, promote diversification and competitiveness, and mitigate the boom-bust cycle. The rehabilitation and strengthening of the banking system is underway: the results of the comprehensive Asset Quality Review are expected in mid-December; important legal reforms are being drafted to strengthen the financial system; and improvements to the regulatory and supervisory framework are under way.
“On the fiscal side, steady progress is being made in strengthening tax administration, tax policy, and budgetary controls, including through the establishment of a fiscal council and a high-level working group on tax policy. It is important that the reform momentum is maintained in 2018 to cement the long-term benefits of such policies on promoting inclusive and sustainable growth. In this regard, it is encouraging that the commitment of the new government to the program policies remains strong.
“The authorities and the team have reached staff-level agreement on the completion of the first and second reviews under the EFF arrangement, which is subject to the approval of the IMF Executive Board.
“The team thanks the authorities for their cooperation, constructive dialogue, and hospitality during its stay in Mongolia.”...
A Mongolian woman B.Baigalmaa is ready to fulfill her life-time dream of an epic adventure. An opening of her camel caravan “Steppes to the West” was held on October 29 at Sukhbaatar Square.
She believes it would be a historical journey that will promote the country, publicize Mongolia’s history and culture and show the strength of Mongolian woman.
The journey team headed by B. Baigalmaa consists of eight people from five countries. They will travel around 12,000 km on bactrian camels for over three years covering 16 countries.
B. Baigalmaa is an experienced mountaineer who climbed up Mongolia’s highest peaks and Mt.Elbrus, the highest peak of Europe, and Mt.Kilimanjaro, the highest peak of Africa as well as she had travelled 28 countries of the world.
Seeing off the journey, Mongolian mothers sprinkled with milk for the successful trip and wellbeing return.
SEOUL (Reuters) - Shares in Lotte Corp, the new holding company for South Korea’s No. 5 conglomerate, soared some 45 percent on their debut above their issue price, bolstered by hopes for better corporate governance and shareholder returns.
Although the debut comes at a difficult time for the conglomerate, which has been hit by political tensions between Beijing and Seoul, combined valuations for the group’s main listed firms on Monday were some 17 percent above levels for comparable entities in late September.
In early afternoon trade, Lotte Corp’s stock was trading at 68,400 won per share, above its issue price of 47,100 won.
Korea’s stock exchange, however, calculates moves on the first day of trade by comparing with an opening price which it works out from an average of orders before trade. On that basis, it was up about 7 percent on the day.
The holding company was created to simplify the group’s complex ownership structure and enhance the control of Chairman Shin Dong-bin, who survived a power struggle with his elder brother.
Under the restructuring, four key group firms - Lotte Shopping, Lotte Confectionery, Lotte Chilsung Beverage and Lotte Food were each split into two companies, with half of the resulting eight firms combined into one holding company.
The remaining four companies resumed trading on Monday after having been suspended since Sept. 28.
Lotte Confectionery, which has previously served as a proxy for the whole Lotte group for many investors, tumbled 13.5 percent as they switched out of the firm and into Lotte Corp.
Lotte Shopping, the group’s flagship retail unit, was down 6.6 percent. One of the South Korean firms’ most hurt by the political tensions between Beijing and Seoul, it has had to close most of its stores in China and last week posted a 58 percent drop in third-quarter operating profit.
The Lotte group agreed to hand over land to the South Korean government for a U.S.-made missile defense system in late February - a plan that has angered Beijing, which argues the radar can penetrate far into its territory.
Lotte Corp currently controls 42 of the group’s 91 units, a spokeswoman said, and plans to add others like Lotte Chemical and Hotel Lotte in the longer term.
Ulaanbaatar /MONTSAME/ EU-Mongolia relations are entering a new phase with the opening of a Delegation of the European Union (the equivalent of an embassy for the EU) in Ulaanbaatar, and the entry into force of the EU-Mongolia Partnership and Cooperation Agreement, said a press release issued by the EU on October 27.
Against this backdrop, the EU Ambassador to Mongolia Hans Dietmar Schweisgut will lead a group of more than twenty ambassadors and senior European diplomats from EU Member States to Mongolia to meet with the country's political leaders as well as representatives of civil society.
"This visit takes place at a timely moment: a new Government is in place, we open an EU Delegation, and the Partnership and Cooperation Agreement enters into force. I am looking forward to discuss with the new leadership of Mongolia how to take our relations to a new level. Now all conditions are in place to step up our political dialogue and cooperation, and to further strengthen our partnership.The EU and Mongolia share many common values: respect for human rights, democracy and the rule of law are the foundation of our relationship," Ambassador Schweisgut said.
The EU Ambassador, together with over 20 ambassadors and senior diplomats from EU Member States come to Ulaanbaatar for their annual meeting with the Mongolian leadership. The objective of these meetings is to take stock of relations between the EU and Mongolia, and to discuss how to strengthen, promote and extend the scope of cooperation between the parties. The visit will also offer an early opportunity to discuss how the EU and its Member States, together with Mongolia, start implementing the Partnership and Cooperation Agreement. We have already made some progress with the first EU-Mongolia Human Rights Dialogue held in March this year. The EU is also looking into possibilities to enhance trade relations, and will discuss Mongolian ideas on how best to assist Mongolia's businesses to better use the EU's GSP+ (Generalised Scheme of Preferences – an EU policy allowing developing countries to pay fewer or no duties on exports to the EU, giving them vital access to the EU market and contributing to their growth). The EU provides development assistance to support Mongolia's authorities in implementing structural economic reforms.
On 1 November 2017, the EU-Mongolia Partnership and Cooperation Agreement (PCA) will enter into force. It provides the EU and its Member States on the one hand and Mongolia on the other with a general framework for expanding their bilateral relations. Its implementation will strengthen political, economic and sectoral cooperation across a wide range of policy fields. It is an expression of our mutual commitment to enhance bilateral cooperation.
The EU Ambassador will also sign the Establishment Agreement that will allow the European Union to open its Delegation in Ulaanbaatar. The Delegation will strengthen the EU's relationship with Mongolia, and is a sign of the EU's long-term commitment to the people of the country....
Xanadu Mines drills high-grade copper below current resource in Mongolia www.proactiveinvestors.com.au
Xanadu Mines Ltd (ASX:XAM) has successfully drilled extensions of high-grade copper along strike and below the current resource at the Stockwork Hill deposit within the Kharmagtai project in Mongolia.
The Stockwork Hill deposit consists of composite intrusions hosting gold-rich porphyry copper mineralisation circa 800 X 400 metres and extending to a depth of at least 600 metres.
Xanadu has now drilled a significant new zone of high-grade mineralisation outside the current resource (1.5 billion pounds copper and 2+ million ounces gold), returning:
- 294 metres at 0.47% copper and 0.85 g/t gold (1.01% copper equivalent) from 466 metres, including 86 metres at 0.78% copper and 1.91 g/t gold (2.0% copper equivalent) from 558 metres.
Significantly, the presence of bornite (an ore of copper) suggests this new zone of mineralisation is closer to the high-grade core of the system.
Further drilling is underway to expand this new zone by deepening several shallower holes above and along strike of the targets.
Andrew Stewart, managing director, commented: “We are excited that hole KHDDH419 successfully demonstrated a clear extension of high-grade mineralisation along strike and at depth outside the current resource model.
“We are particularly excited with the new results from this hole which has discovered a new zone of gold-rich copper porphyry mineralisation, representing the downthrown block of the main Stockwork Hill deposit.
“The high-grade extensions we have identified provide the opportunity to assess Stockwork Hill as a potential underground resource that has the potential to deliver significant additional value to the Project”.
Singapore plans to develop solar power and energy-storage technologies as the oil-trading hub of Asia pushes to generate more of its power from renewable sources.
The city-state is testing floating power projects in its reservoirs, a technology that could help solar meet as much as a quarter of electricity demand by 2025, Deputy Prime Minister Teo Chee Hean said Monday in a speech opening Singapore International Energy Week. The government also reached agreements for energy storage and micro-grid projects, Sim Ann, senior minister of state for trade and ministry, said at the event.
To reduce its reliance on fossil fuels, Singapore is trying to overcome natural limitations on hydropower and wind and a lack of available land for solar panels. While the city-state is a small emitter of carbon, it will be one of the first to feel the effects of climate change, Teo warned.
“We are one of the small island states, the average height above sea level is not a great deal,” Teo said. “If the sea levels rise, we have to take it very seriously, or all of us will have to take swimming very seriously.”
Singapore, which has long been one of the world’s largest oil refining and trading hubs, has shifted its electricity mix over the past century from coal to oil to natural gas, which now generates about 95 percent of Singapore’s 8 gigawatts of power. Solar capacity has grown to a peak of 140 megawatts from about 0.4 megawatt in 2008, Sim said.
The island nation can produce a peak of 2 gigawatts from solar by 2025, Teo said, citing a study by the Sustainable Energy Association of Singapore. Floating solar can help by creating extra surface space for photo-voltaic panels, Teo said. Tests done at Tengeh Reservoir have shown floating panels to be more efficient than rooftop, he said, adding that the country will also explore vertical solar panels on the sides of skyscrapers.
Singapore is pushing forward with plans to store intermittent solar energy, awarding deals to groups led by Red Dot Power and CW Group to install 4.4 megawatt-hours of storage solutions in two substation locations connected to the grid, Sim said. Singapore’s Energy Market Authority will also make it easier for consumers to generate solar power for themselves and to sell excess energy back to the grid, she said.
Singapore’s SP Group signed a memorandum of understanding with the Singapore Institute of Technology to develop the country’s first urban micro-grid at the institute’s future campus in Punggol.
The halt will remain in place until Wednesday 1st November 2017.
Aspire Mining Ltd (ASX:AKM) remains focused on its coal assets in Mongolia, and advancing key infrastructure including railway.
Aspire has this morning been granted a trading halt by the ASX, pending details of a capital raising.
The halt will remain in place until the opening of trade on Wednesday 1st November 2017, or earlier if an announcement is made to the market.
Global growth is on a tear, and that can only be positive for metals prices.
That’s the message coming from the industry ahead of LME Week. For the first time in years, optimism is widespread among traders, smelters, miners and brokers gathering in London, buoyed by a combination of strong growth across the world’s key demand centers, supply curbs in China and a return of investor interest.
"The global economy looks much better than it has done probably since the crisis, maybe before that," said Saad Rahim, chief economist at Trafigura Group Pte, the second-largest metals trader. "I’m pretty bullish."
The upbeat mood shows how much has changed in two years, when the commodities collapse brought the titans of mining to their knees. In September 2015, Glencore Plc was forced to raise money when its stock was cratering, an effort to sooth investors frightened by a staggering debt load. Now, the mining giant has regained its swagger, reaping profits and inking deals worth billions for natural resource assets around the world.
Industrial metals have rallied sharply since the middle of the year. Copper is approaching $7,000 a metric ton, zinc topped a decade high and aluminum has jumped almost 30 percent this year. With that backdrop, macro hedge funds -- once major players on the London Metal Exchange -- are beginning to look again at metals markets, according to brokers.
“Investor appetite has been increasing for metals since late summer," said Sid Tipples, co-head of metals at JPMorgan Chase & Co.
Volumes on the LME have picked up, hitting the highest level since 2015 in September. Matthew Chamberlain, chief executive of the exchange, suggested there’s further room for growth.
"Before the funds are actually in the markets, they’re working out the best entry strategy and getting ready, and that certainly seems to be the mood music in the market," he said in an interview.
For the first time in years, the outlook for global metals demand doesn’t hinge solely on China. Manufacturing in the euro-area is growing at its fastest pace since at least 2014. This month, the International Monetary Fund upgraded its growth outlook for the U.S., the euro area, Japan and China and said the global economy’s performing at its best pace in the last 10 years.
Metals demand in Europe is picking up on the back of rising demand from the construction and automotive sectors. Codelco, the world’s largest copper producer, raised the premium it charges to deliver metal to European customers for the first time in four years. Forecasters including Bank of China International see further gains for base metals in a period of synchronized global growth.
“The economic outlook is stronger than it has been for a while across the major economies with more consistent growth in Europe, the U.S. and China,” said Tipples at JPMorgan.
While strong global demand is underpinning the optimism, supply issues are also creating pockets of tightness. Glencore’s output cuts helped fuel the zinc rally and Chinese capacity cutbacks have spurred higher aluminum prices.
The supply issues are being felt in corners of the physical metals industry that are largely inaccessible to financial speculators.
For example, the price of alumina, used to make aluminum, has jumped 56 percent since August, according to data from consultancy CRU Group, amid Chinese production cuts that fueled a wave of buying by aluminum smelters.
Lead ore treatment charges, which miners pay smelters to convert the ore to metal, are moving negative. Cargoes of lead concentrates have changed hands at treatment charges of minus $40 a metric ton, traders said, an unusual situation that implies traders are paying more for lead ore than the value of the metal.
On the LME, overall inventories are being drawn down. Stocks of metal in the exchange’s warehousing system have dropped to the lowest since 2008.
"We’ve seen inventory draws across the board on the LME, and the underlying demand picture would suggest those draws are real," said Ingrid Sternby, senior research analyst at Blenheim Capital Management LLP, a commodities hedge fund in London. "The market now is at a point where fundamentals are playing a more important role."
Still, global growth can’t continue at a fast pace forever, said Mark Hansen, chief executive of mid-sized metals trader Concord Resources Ltd.
"I’m concerned we have got into this zone where people think everything is just going to get better and better," he said. "China has just done its Party Congress. We’ve probably reached peak credit creation for this cycle in China."
He warned that miners could respond to the recent rally by adding new production, especially in zinc where prices are trading far above the cost of production.
"Two years ago, things were pretty dreadful for the mining industry. Things are pretty good now. The supply discipline that kicked this rally off can dissipate in the next six to 12 months," he said....