1 ‘ASIAN DOOR 2018’ FAIR KICKS OFF WWW.MONTSAME.MN PUBLISHED:2018/11/21      2 BEYOND BITCOIN: THE OTHER CRYPTOCURRENCIES YOU SHOULD KNOW TOO WWW.CNN.COM PUBLISHED:2018/11/21      3 ATTRACTING INVESTMENT FROM FRANCE TO AGRICULTURAL SECTOR WWW.MONTSAME.MN PUBLISHED:2018/11/21      4 MONGOLIA AND RUSSIA TO EXPAND COOPERATION IN TRANSPORT SECTOR WWW.MONTSAME.MN PUBLISHED:2018/11/21      5 NEWLY-OPENED CHINA-MONGOLIA FRIENDSHIP CULTURAL CENTER TO BOOST TIES WWW.CHINA.ORG.CN PUBLISHED:2018/11/21      6 UN APPRECIATES MONGOLIA’S CONTRIBUTIONS FOR NORTHEAST ASIA WWW.NEWS.MN PUBLISHED:2018/11/21      7 BHP OFFICIALLY DROPS 'BILLITON' FROM NAME WWW.MINING.COM PUBLISHED:2018/11/21      8 THE NOTICE: WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/11/21      9 IRKUTSK REGION SUPPLIES USD 31 MILLION PRODUCTS TO MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      10 27 PARLIAMENT MEMBERS SUBMIT PETITION ON CABINET DISSOLUTION WWW.ZGM.MN PUBLISHED:2018/11/20      ОРОН СУУЦНЫ БАРИЛГЫН ӨРТГИЙН ИНДЕКС III УЛИРАЛД ЖИЛИЙН ДҮНГЭЭР 15 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/21     САЙЖРУУЛСАН ТҮЛШНИЙ БОРЛУУЛАЛТ УДААШИРЧЭЭ WWW.ZGM.MN НИЙТЭЛСЭН:2018/11/21     ЗАСГИЙН ГАЗРЫН ТОГТВОРГҮЙ БАЙДЛААС ҮҮДЭЖ “ГЭРЭГЭ” БОНДЫН ХАНШ БУУРЧЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/11/21     ЭДИЙН ЗАСГИЙН ӨСӨЛТ 7.1 ХУВЬД ХҮРНЭ ГЭВ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/21     ТӨРИЙН ҮЙЛЧИЛГЭЭ ЦАХИМД ШИЛЖЛЭЭ WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/21     УЛААН БУУДАЙ, ТӨМСНИЙ ДОТООДЫНХОО ХЭРЭГЦЭЭГ БҮРЭН ХАНГАНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/21     "ГУДАМЖ" ТӨСЛИЙН 14 БАЙРШЛЫН, 50 ТЭРБУМ ТӨГРӨГИЙН БАЙГУУЛАМЖИЙГ НИЙСЛЭЛИЙН ӨМЧИД БҮРТГЭЖ АВЛАА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/21     САНАМЖ: WWW.MONGOLIANBUSINESSDATABASE.COM НИЙТЭЛСЭН:2018/11/21     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    

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

The open budget survey 2017: Mongolia have 46 scores from 100 www.gogo.mn

Amid declining public trust in government and increasing inequality, progress toward global budget transparency has stalled for the first time in a decade.

Many governments around the world are making less information available about how they raise and spend public money, according to the results of the Open Budget Survey 2017.

After 10 years of steady progress by countries, the 2017 survey shows a modest decline in average global budget transparency scores, from 45 in 2015 to 43 in 2017 for the 102 countries that were surveyed in both rounds (scores are out of a possible 100). Mongolia evaluated by 46 scores.

This is in stark contrast to the average increase of roughly two points documented among comparable countries in each round of the survey between 2008 and 2015. The reversal of transparency gains is particularly discouraging given roughly three-quarters of the countries assessed do not publish sufficient budget information (a score of 61 or higher), seriously undermining the ability of citizens worldwide to hold their government accountable for using public funds efficiently and effectively.

Launched in 2006, the Open Budget Survey (OBS) is the world’s only independent, comparative assessment of the three pillars of public budget accountability: transparency, oversight and public participation. The sixth round of this biennial assessment, the 2017 survey evaluated 115 countries across six continents, adding 13 new countries to the survey since the last round in 2015.

...


64x64

Issuance of licenses to be resolved by open auctions www.montsame.mn

Ulaanbaatar/MONTSAME/ On January 30, Environment and Tourism Minister N.Tserenbat met Governors of aimags to hear pressing issues of aimags, exchange views on cooperation and introduce the Ministry’s actions and further plans.

At the meeting, the Minister pointed out the importance of participation of aimag governors in law enforcement and appealed them to spend financial sources of local budgets accumulated from royalties on conservation activities.

He cautioned the governors that it is too inadequate of using just 30 percent for conservation, even though about MNT60 billion is accumulated annually to local budgets from royalties. Therefore, the Minister expressed his hope to cooperate with the Governors in proper spending of the money.

“The Ministry will support technological modernization by means of disbursing long-term low-interest loans to entities that are recycling and consuming recycled water, and introduce insurance system to develop accountable mining. Issuance of licenses will be solved by open auctions,” Minister N.Tserenbat said.

Although the Ministry performs well its duties to formulate policies to protect nature and develop tourism and have laws adopted, it encounters a problem in implementing and monitoring the policies and laws; therefore the Minister seeks cooperation with Governors on this matter.

.

M. Unurzul

...


64x64

Belt, Road nations offered organ donation guidance www.chinadaily.com.cn

China, which has made great strides in the field, vows to assist others

China will cooperate with nations involved with the Belt and Road Initiative to help them establish organ donation systems, a former vice-minister of health said on Tuesday.

"We hope our successful experience can provide a reference to countries with similar cultural backgrounds and social development levels," Huang Jiefu, chairman of the China National Organ Donation and Transplantation Committee, told China Daily.

"It has been a puzzle to promote organ donation after death for many Asian and African countries, but China has made great changes in this area in a short period of time," he said.

Many Belt and Road countries, including Pakistan and Mongolia, have proposed cooperation with China in establishing their systems, Huang said. Details are under discussion, he said.

Organ donation made new breakthroughs in China last year, with postmortem donations from more than 5,100 people and nearly 2,400 people donating organs while alive to relatives, Huang said.

"This means the rate of organ donors in China reached 5.38 per 1 million population, which makes China an advanced country in organ donations in Asia," Huang said.

The number of people whose organs were donated after death in China in 2016 was 4,080, according to National Health and Family Planning Commission.

Organ donations have seen a rapid increase since the start of 2015, when China banned organ transplants from executed prisoners, health officials said. The number of postmortem donors last year was three times the number in 2014, according to data from China Organ Transplantation Development Foundation.

With nearly 16,000 transplant surgeries last year, China has become No 2 among countries, after the United States, in the number of organ donors and organs donated, said Guo Yanhong, deputy chief for medical administration and supervision at the National Health and Family Planning Commission.

China has established a national organ donation and transplant system that follows guiding principles of the World Health Organization and ethical rules, and suits China's cultural traditions and economic social development, Huang said.

Along with wide support, the establishment of a fair and transparent organ distribution system also played a crucial role in encouraging donations, he said.

Wang Lu, an organ donation coordinator at Beijing You'an Hospital, who tries to persuade families of patients who have no chance of recovery to make the decision to donate, said her work has become easier as more people have accepted the idea.

"I am frequently moved by the families of the patients, seeing they are willing to donate ... (organs) of their family member," she said.

Normally a donor can help between three to six people survive with the organs donated, she said.

More than 373,000 people in China had registered to become donors by Dec 24, according to the China Organ Donation Administrative Center.

Despite the increasing number in organ donations in recent years, China, like many other countries, still has a shortage of organs for transplant. About 300,000 people in China with terminal diseases need organ transplants every year, Huang has said.

...


64x64

Mongolia to launch the second satellite www.news.mn

Named 'Mazaalai' after Mongolia’s endangered Gobi bear, Mongolia’s first satellite was launched into space in 2017. Using the “SpaceX Falcon 9” two-stage rocket, 'Mazaalai' was put into orbit from the Kennedy Space Center in Florida through a project supported by UNESCO and Japan. 'Mazaalai' is a new-generation micro or nano satellite: at a cost of around USD 100,000, the price is also surprisingly low. The project is aimed at establishing specialist resources and learning how to launch and operate satellites.

Specialists from the nano satellite development laboratory at the National University of Mongolia (NUM) is planning to launch a second satellite in cooperation with Japan’s Hokkaido and Tohoku universities. The second satellite will also be used for scientific research.

...


64x64

Severe weather kills 5900 livestock in Uvs province www.news.mn

Mongolian National State Emergency Committee (NSEC) led by Deputy Prime Minister U.Enkhtuvshin convened an urgent meeting on the current winter situation in Uvs province on 30 January.

Temperatures in Uvs have gone as low as minus 52 degrees Celsius, while snow measuring up to 31 cm is blanketing 18 soums of the province, threatening the livelihoods of herders who depend entirely on livestock for food, transportation and income. This is considered as an extreme 'zud' situatiion.

Uvs province has 17173 herders and 12909 livestock. Currently, severe winter has been killed 5900 livestock, namely: seven camels, 187 horses, 312 cows, 2122 sheep and 3209 goats.

...


64x64

Balance of payments totals 811.9 million USD in 2017 www.gogo.mn

Mongolia's balance of payments (BoP) totaled 811.9 million USD in 2017, after experiencing a deficit for the past four years.

In 2016, the BoP deficit was 18.2 million USD. The nation's financial account balance had a 2.4 billion surplus, but the capital account balance had a 907.1 million USD deficit in 2017.

As stated in the Bank of Mongolia's Financial Stability Report, the current account deficit was financed with foreign loans and foreign currency reserves from 2013 to 2016, but it was financed with foreign direct investment in 2017.

As of the third quarter of 2017, foreign direct investment totaled 702 million USD, the majority of which came from Canada (285 million USD). Luxembourg invested 155 million USD in 2017, a record investment compared to previous years.

Seventy-nine percent of 2017's investment was made in mining.

...


64x64

Mongolia slaps $155M tax bill on Turquoise Hill's mine; NGO claims company owes more www.business.financialpost.com

 

Turquoise Hill Resources Ltd. and parent Rio Tinto Group’s ambition to build one of the world’s largest copper and gold mines, called Oyu Tolgoi, in Mongolia’s Gobi Desert, has hit a number of stumbling blocks in recent weeks.

Last week, Jean-Sebastien Jacques, the chief executive of Rio Tinto, flew to Mongolia’s capital city to meet with prime minister Ukhnaagiin Khurelsuk about how to build “win-win” partnerships.

One looming dispute is the Mongolian government’s claim that Oyu Tolgoi owes an additional US$155 million in taxes — the mine’s second tax dispute since 2014.

In another setback, earlier this month, Turquoise Hill also declared a ‘force majeure’ after a convoy of trucks hauling concentrate from Oyu Tolgoi to China, where it is smelted, was disrupted by protests at the two countries’ border.

Jacques did not announce solutions to either problems, but his visit may not have been fruitless. He announced a working group with the Mongolian government to address issues such as the high funding costs of Oyu Tolgoi, power solutions and how to enable more money to flow to the town next to the mine. The company also announced opening a new office in the country.

By Tuesday, the border protests, which were unrelated to Oyu Tolgoi, had reportedly cooled off.

But if the past is any indication, Mongolia is unlikely to collect $155 million in taxes.

“Oyu Tolgoi LLC has paid all taxes and charges required,” Turquoise Hill Resources stated in a press release.

A company spokesman said it has 30 days to appeal the Mongolian tax audit assessment.

In 2014, appealing proved a successful route for the company. That June, Turquoise Hill announced a Mongolian tax audit had found US$127 million in “unpaid taxes, penalties and disallowed entitlements” for three years, 2010 to 2013, associated with the initial development of the Oyu Tolgoi mine.

By September, an appeal to the Tax Dispute Resolution Council of the Mongolian General Taxation Department slashed the amount owed by more than 75 per cent to US$30 million.

Now, the tax feud centers on withholding taxes: Oyu Tolgoi LLC did not pay taxes from 2013 to 2015 on the management fee taken by Rio Tinto and Turquoise Hill, and the Mongolian government believes it is obligated to do so, among other issues, according to an analyst report released earlier this month by Canaccord Genuity’s Dalton Bareto.

“We believe this situation will likely play out in a similar manner (to 2014),” Bareto wrote, noting he spoke to management.

By one calculation, however, Turquoise Hill owes much more in taxes and not just to the Mongolian government. The Netherlands-based Centre for Research on Multinational Corporations, also known as SOMO, will issue a report on Wednesday finding that Turquoise Hill lobbied the Mongolian government for concessions that have saved the company hundreds of millions of dollars in taxes and other payments, according to a source.

In addition, the report will also say that the company structured its financing in a way that allowed it to avoid paying hundreds of millions of dollars in taxes in Canada, where the company is based and is traded, the source said.

In a statement Tuesday, the company challenged the report as “inaccurate or unsubstantiated”, but declined to comment on details.

“Turquoise Hill and Oyu Tolgoi are committed to tax transparency. Turquoise Hill believes that our tax practices are not only compliant with local laws, international standards and voluntary commitments … Oyu Tolgoi’s operation is making substantial contributions to Mongolia’s economy and long-term development,” the company said in a statement.

In 2016, the Oyu Tolgoi mine paid approximately US$189 million in taxes, according to the website for Oyu Tolgoi LLC. Meanwhile, Turquoise Hill reported $1.2 billion in revenue and $210 million in net income, according to the company’s 2016 annual report.

The vast mining operation in the middle of the Gobi Desert, about 80 kilometres north of the Chinese border, is currently operating as an open pit.

Turquoise Hill is engaged in a years-long process of developing an underground portion that will bring development costs to $12 billion. The financing has come from a number of sources including a massive $4.4 billion deal inked in 2016 that includes Export Development Canada, the European Bank for Reconstruction and Development, the International Finance Corporation, the Export-Import Bank of the United States, the Export Finance and Insurance Corporation of Australia.

That underground portion contains 80 per cent of the mine’s value, and is not expected to begin production for several years and will not reach peak copper production until 2025, according to disclosures to investors by Turquoise Hill.

...


64x64

Toyota falls to No.3 www.nhk.or.jp

Executives at Toyota Motor have released the company's annual global unit sales for 2017. It shows that Toyota and its group have fallen to 3rd place, trailing behind Volkswagen at number 1, and the Renault group at number 2.

Company officials say the Toyota group including Daihatsu Motor and Hino Motors sold over 10.3 million vehicles last year. That's a 2.1 percent increase from 2016.

Germany's Volkswagen and its group topped the list for the second-straight year. It sold 10.7 million units for a gain of over 4 percent from 2016.

The Renault-Nissan-Mitsubishi group sold 10.6 million vehicles. All three automakers sold a record number of vehicles in 2017.

Analysts say Toyota's position sank as it failed to boost sales in China compared to its rivals. The carmaker lost the top slot in 2016 for the first time in 5 years.

...


64x64

Some Russian businessmen made the US blacklist just for being successful www.rt.com

The US Treasury published the ‘Kremlin list’ on Tuesday. It includes officials and tycoons with political and business ties to the Russian government. But some were blacklisted just for being billionaires.

Arkady Volozh
Worth $1.1 billion, Volozh is the founder and CEO of the Russia’s largest IT company, Yandex. The company is Google’s main rival on the Russian market, offering various services like a search engine, smartphone apps, its own in-house maps and navigation systems, music streaming service, and taxi service. Yandex is a private and publicly-traded company, and has no state participation.
Russian President Vladimir Putin made a public visit to the Yandex Moscow office in September for the company’s 20th anniversary. Does that count as ‘Kremlin meddling’ in company affairs? That seems to have been the logic in Washington.

Sergey Galitsky
Sergey Galitsky is the founder and CEO of Magnit – Russia’s biggest supermarket chain and cosmetics retailer with more than 14,000 stores. His net worth is $4.4 billion, according to Forbes estimates.
Magnit is also a publicly-traded company without Russian state participation, with an IPO in 2006. Galitsky is a huge soccer fan, and owns the soccer team FC Krasnodar and a soccer academy. He has invested about $460 million in Krasnodar’s new stadium.
The new stadium was visited by Putin, where Galitsky shook hands with the president. That must have been enough to make the US Treasury’s blacklist.

Oleg Tinkov
Oleg Tinkov is the founder and owner of Tinkoff Bank, which has issued 6.4 million credit cards and has an almost 10-percent market share in Russia. Working online mostly, Tinkoff claims to be the largest internet bank in the world. Oleg Tinkov is worth $2.4 billion, according to Forbes.
Tinkov is famous in Russia for his flamboyant behavior, but has repeatedly said he is apolitical. He claims he saw Putin only once in his life in 2000. Some mainstream media outlets have even branded Tinkov as opposition to the Kremlin.

Yuri Milner
Russia’s most influential tech investor, Yuri Milner was an early investor in Facebook and Twitter. He is worth $3.5 billion, and has interests in Chinese tech companies, including online retailers Alibaba and JD.com, and smartphone producer Xiaomi.

Yuri Milner, founder of DST Global © Sputnik
“While growing up in the Soviet Union, my father’s advice was ‘stay away from politics.’ My father was a wise man, and ‘staying away from politics’ was one of the reasons I became a scientist early on. I have been following this principle ever since,” Milner said in a Forbes interview last September.
Following his father's advice didn't help the entrepreneur stay out of the crosshairs of the US government.

Evgeny Kaspersky
Kaspersky Lab is one of the largest antivirus producers in the world. Founder Evgeny Kaspersky’s net worth is $1.3 billion.
Kaspersky Lab has long been targeted by Washington. The company’s software has faced bans over alleged meddling in the 2016 US presidential election.
The company has fiercely denied it conducts espionage on behalf of the Russian government. Kaspersky has said he would move the company out of Russia if he was asked to spy for the Kremlin.
“They are just hitting at everything Russian. Since we are working there, we got hit, too” he said in response to US government action against his company.

...


64x64

Mining Minister addresses Davos 2018 and other issues www.gogo.mn

Following Cabinet's report on its first 100 days, on January 29, Minister of Mining and Heavy Industry D. Sumiyabazar briefed journalists on Mongolia's representation at the 2018 World Economic Forum in Davos, Switzerland, and the current state of gasoline prices.

Minister D. Sumiyabazar said, “Davos 2018 determined directions for 2018, including the mining sector. I met with representatives from 40 nations that are mostly mining producers. It is predicted that commodity reserves will increase by one million tons, because 40 million electric cars are going to be produced by 2030.

The Government of Mongolia and the Mining Ministry stated that Mongolia needs a strategic partner to discover reserves of rare earth minerals.”

He spoke about gasoline prices and said, “The cabinet and the Mining Ministry will work on preventing retail price pressures for consumers. I spoke with Russian Deputy Minister for Industry and Energy Arkady Dvorkovich about keeping gasoline prices stable.”

He also answered questions regarding the Tavan Tolgoi project. He noted that the ministry will submit proposals to Cabinet and Parliament with careful consideration and research.

He said, "We will focus on enhancing the mine’s efficacy and benefits for the public."

...