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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TerraCom reaches production levels www.news.com.au

TerraCom's two operating mines in Australia (Blair Athol Thermal Coal Mine) and Mongolia (BNU Coking Coal Mine) are now producing at name plate production levels.

To date short and long term contracts have underpinned the coal produced. The market remains strong in both sectors with coking coal prices and thermal coal prices in respective markets looking to remain strong for 2018.
The first 58 hectares of rehabilitation at Blair Athol Mine has been completed as per forecast.

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Coal loading resumes at Tavan Tolgoi deposit www.montsame.mn

Ulaanbaatar /MONTSAME/ Coal loading has resumed at Tavan Tolgoi deposit, reported corresponding officials on December 21.

The logjam of trucks at the Gashuunsukhait border crossing has been reduced to 17 km from over 100 km after collaborative efforts made by the Ministry of Road and Transport Development, the Ministry of Mining and Heavy Industry and the National Road Transport Center.

The Minister of Mining issued an ordinance to suspend coal loading at Tavan Tolgoi deposit from December 13 to clear the border jam of coal trucks. As such, coal loading has resumed at the Tavan Tolgoi deposit for Tsagaan Khad route.

It was reported that 10.3 million tons of freight passed the Gashuunsukhait border crossing in 2014, 5.6 million in 2015 and 13 million in 2016. By far in 2017, 17 million tons of coal has been exported through the border crossing.

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Fitch gives Rio Tinto a 'Positive' outlook www.mongolia.gogo.mn

Credit agency Fitch Ratings has upgraded Rio Tinto’s outlook to Positive from Stable.

Rio Tinto's long-term issuer default rating has been reaffirmed at A-. Fitch noted that revision was due to the company’s significant absolute debt reduction, which dropped by 7.8 billion USD from the end of 2015 to June 30, 2017.
Fitch predicts that the price of raw materials will be stable, and that free cash flow will be allocated to Rio Tinto's shareholders and that it will increase capital expenditure on high-value projects.
It was noted that Rio Tinto’s financial policy for the next one to three years will play an important role in further revisions. Share prices for Rio Tinto on the Australian Stock Exchange have been increasing by two percent since early December 2017.

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Value of top 50 mining companies surge $140 billion in 2017 www.mining.com

Heading into 2018 the world's 50 largest listed firms are worth a collective $896 billion, adding $141 billion in combined market capitalization year-to-date, with the bulk of those gains recorded since July.

Go back to the start of the mining industry’s upswing around 18 months ago and $227 billion of wealth has been created for shareholders of the MINING.com Top 50.

The top 10 make up more than half the sector's market value and after underperforming the rest of the field during the first half of 2017, the big diversified and base metals companies caught up rapidly.

Of the gains since end-June nearly 65% have accrued to the top 10 largest mining companies. Year-to-date just two companies – Vale and Glencore – constitute 27% of market capitalization growth.

Gold companies have had a tough go of it this year with top producers Newmont Mining and Barrick Gold falling out of the top 10. Newmont overtook Barrick as the world’s most valuable gold miner this year, but was pushed out of the top tier by diversified giant Anglo American which continues to climb the rankings after years in the wilderness.

New entrant to the top 10 is high-flying China Molybdenum, the best performing mining stock in the world this year with a 150% gain in value year-to-date. The company started the year in 31st spot. The Luoyang City-based base metal giant is now worth more than $20 billion (also the bar for admittance to the top ten) as its acquisition spree of recent years begins to pay off in a big way.

Another company making the most of the rally in copper and zinc this year is KAZ Minerals which joins the Top 50 for the first time. The Kazakh company is up 120% in 2017 and worth $4.7 billion. At the beginning of 2017 a market value of less than $4 billion was enough for entry into the MINING.com Top 50.

Only nine out of 50 firms are trading in negative territory for 2017 with Russian operations and potash proving a deadly combination. Russian diamond miner Alrosa has had a dismal year suffering a similar fall as that of Uralkaliy, the worst performing mining stock this year. The potash producer's 24% decline drops the company from position number 30 at the start of the year down to a 44 ranking.

Dropping out of the Top 50 is German-based potash miner K+S after losing over 10% of its value in 2017. Of the four remaining fertilizer miners in the Top 50, Potashcorp of Saskatchewan bucked the weaker trend with an 8.4% gain this year as it looks to close the merger with US-based Agrium to create the world’s largest producer of the crop nutrient.

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Forum ‘Climate Investment Partnership' takes place in Ulaanbaatar www.montsame.mn

Ulaanbaatar/MONTSAME/ A forum titled ‘Climatic investment partnership’ was organized on December 19 in Ulaanbaatar city to hold contacts between investors and businessmen who finance projects and programs to mitigate greenhouse gas (GHG) emissions of Ulaanbaatar city.

During the event, participants from Mongolian and Chinese business sectors discussed opportunities to implement climate green projects jointly in Ulaanbaatar.
In accordance with Paris Agreement, Mongolia is obliged to mitigate GHG emissions by 14 percent by 2030. As Ulaanbaatar is the largest GHG producer of the country, the city needs to have independent policy and plan of actions. Ulaanbaatar city's contribution to mitigate climate changes was defined to be 7 percent or the half of Mongolia’s contribution.

At the forum hosted by the Governor Office of Ulaanbaatar and Environment Department of Ulaanbaatar city and others, Mongolian side made a presentation on projects of Ulaanbaatar city’s contribution to mitigate climate changes, law on energy saving, relevant national program, Ulaanbaatar city’s plan of climate investment, construction of green schools and kindergarten as well as reduction of heat loss of residential apartments. Chinese association of energy service provided a report on energy saving and energy service business development. Business organizations of two countries also held bilateral meetings.

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Visa-free travel to Argentina for Mongolian citizens www.news.mn

Mongolian passport holders have been granted visa-free entry to Argentina for stays of up to 90 days. The Cabinet backed the visa free agreement between Mongolia and Argentina on 20 December. Mongolia established diplomatic relations with Argentina on 7 December 1971.

Mongolian has diplomatic relation with 186 countries. Currently, the country's passport holders can enter nearly 30 countries for 21-90 days without a visa.

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Mongolia, Macao sign agreement on transfer of sentenced persons www.akipress.com

AKIPRESS.COM - Mongolia and the Macao Special Administrative Region (MSAR) of the People Republic of China signed an agreement on the transfer of sentenced persons on December 15.

The deal was signed by S.Erdene, Mongolia’s Consul General to Macao, and Chan Hoi Fan, Secretary for Administration and Justice of the MSAR, Montsame reports Thursday.

The signing ceremony was attended by Ambassador of Mongolia to China D.Gankhuyag, Yuan Hong, Deputy Representative of Ministry of Foreign Affairs of the People's Republic of China in the MSAR and other officials of the two sides.

The agreement allows Mongolian citizen who sentenced in Macao to be transfered and imprisoned at home country. Also it will give stimulus to boost cooperation between the Ministries of Law Affairs of Mongolia and Macao and other fields.

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Mongolia's foreign exchange reserves reach new high in December www.xinhuanet.com

ULAN BATOR, Dec. 21 (Xinhua) -- Mongolia's foreign exchange reserves reached 2.5 billion U.S. dollars in December, a new high since December 2016, the Bank of Mongolia, the country's central bank, said Thursday.

Mongolia's official gold reserves had increased to 18.4 tons, it added.

The growth was attributed to the implementation of the first and second phases of the IMF's Extended Fund Facility program in Mongolia, a significant increase in gold purchases by the Bank of Mongolia, the renewal of a currency swap agreement with China's central bank, it said.

The restoration of investors' confidence in Mongolia and the Mongolian government's policy such as the implementation of the Economic Recovery Program 2016-2020 and the reduction of budget expenditures also led to the increase in foreign exchange and gold reserves, according to the bank.

Experts with the Mongolian central bank predict that by the end of 2019Mongolia's foreign exchange reserves will reach 3.8 billion dollars, and by 2020, 4 billion dollars.

On Dec. 15, the IMF Executive Board completed the first and second reviews of Mongolia's performance under the Extended Fund Facility program and decided to allocate 79.1 million dollars from a 5.5 billion bailout fund to relieve Mongolia's debt burden and stabilize the local currency.

In May, the IMF approved a three-year extended arrangement under Extended Fund Facility for Mongolia in a total amount of about 434.3 million dollars to support the country's economic reform program.

The IMF has raised its 2017 growth projection for Mongolia to 3.3 percent from 2 percent.

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December 21, 2017 trading report www.mse.mn

On December 21, 2017, 434,267 shares of 28 firms listed as Tier I, II, and III were traded. 12 firms’ shares increased in price, 11 decreased and 2 firms' share unchanged. Khunnu Management /HBZ/ were the top performers, increasing 15.00 percent each, whereas Mongol Securities JSC /MSC/ was the worst performer, decreasing 14.46 percent.

The MSE ALL Index decreased by 0.2 percent to stand at 1,182.41 points. The MSE market cap stands at MNT2,494,025,907,347.

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Coal's resilience today will prove its ultimate downfall: Gadfly www.mining.com

Newcastle, the Australian port that's the biggest export harbor for thermal coal, is planning a shift away from the commodity that generates the overwhelming majority of its trade volumes BHP Billiton Ltd., one of the world's largest coal miners, is considering quitting the industry's global trade body and perhaps the U.S. Chamber of Commerce because it can't reconcile its policies on climate change and energy policy with their more coal-friendly stances National Australia Bank Ltd. promised not to lend to new thermal coal projects and ING Groep NV pledged to reduce its exposure to coal generators to close to zero by 2025 China Merchants Bank Co. joined the lengthening line of lenders disavowing advances for Adani Enterprises Ltd.'s Carmichael project, one of the largest such developments worldwide but one that's highly unlikely to go ahead South Korea, one of the world's biggest coal importers, announced plans to phase out coal by 2079 and sharply cut its use by 2030 The International Energy Agency said that coal demand would remain essentially flat until 2022 — particularly striking given that in recent years it has tended to overestimate coal's prospectsYou'd think from this newsflow that the main benchmark for globally traded coal would be wilting. In fact, it's been on a tear.

Next-month Newcastle thermal coal futures bust through $100 a metric ton last week for the first time in more than a year, after rallying 39 percent since the start of June. For all the doom and gloom about the future of the black stuff — including from this Gadfly — the past two years have been a boom time for coal prices that's only exceeded by their 2010 to 2012 peak.

That's good news in the short term for coal miners like Peabody Energy Corp. and Glencore Plc, which have enjoyed rising profits from digging up soot. In the long term, though, it's another nail in coal's coffin.

Solar module costs since 2011

-80%

When businesses whose costs are rising go into competition with ones whose costs are falling, only a fool would bet on the former group. Yet while Newcastle coal prices are 25 percent below their level at the start of 2011, solar module costs have slumped 80 percent.

In Lazard's latest annual analysis of levelized energy costs — essentially, the prices at which new projects will be able to generate electricity — the highest-cost solar and wind projects are now coming in below or equal to the lowest-cost coal generators.

This is unsurprising. Solar modules and wind turbines are manufactured objects, which over time tend to show marked price declines as refinements to repetitive factory processes and supply chains squeeze expenses out of the system. Productivity gains in the mining and engineering industries that are responsible for digging up coal and building generating plants tend to be much slower. Fossil fuels are in a race they can't win.

That helps explain why banks are becoming increasingly vocal about their unwillingness to lend to coal miners and generators. It's not just altruism. Their bigger concern is that by backing coal technology, they'll be making bad investments, much like their forebears who lent money to the pony-and-trap industry, just as the motor car was taking over. Peter Grauer, the chairman of Bloomberg LP, is a senior independent non-executive director at Glencore.

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

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