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

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New global gold standard in kilobar may soon be coming www.rt.com

The World Gold Council (WGC) is considering a global standard for 1 kilogram gold bars so they could be used as collateral in futures markets and potentially encourage demand.
People close to the matter told Reuters the aim is to include companies from the world of gold refining, banks and brokers that trade the precious metal in the futures and physical markets, and the London Bullion Market Association (LBMA).

“The plan is to create a standard for kilobars that can be adopted around the world, delivered anywhere, possibly using blockchain to identify the bars, their origins,” a physical gold trading source said. “Rigid standards and blockchain would bring in people who are worried they could be getting conflict metal.”

The kilobar measure dominates Asian trade as gold contracts on the Shanghai Gold Exchange, Shanghai Futures Exchange, and Hong Kong Exchanges and Clearing are all in kilobars.

However, lack of transparency about their origin and the absence of a global standard thwart their use on exchanges elsewhere. They cannot be accepted at London Metal Exchange clearing arm LME Clear because they differ from its standard bars which are typically around 400 ounces.

According to sources’ estimates, top consumer China imports about 95 percent of gold in kilobars, while second-largest consumer India imports 80 percent in kilobars. The WGC estimated China’s 2017 gold demand at up to 1,000 tons and India’s at 650 tons.

“The Asian consumer market is in kilobars, it dominates gold trade,” a gold industry source said. “If you want to trade on the LME and you want to lodge your collateral in kilobars in another location, why shouldn’t you be able to? There are vaults all over the world.”

“You can add a lot of information with blockchain, where the gold was mined, where it was refined, serial numbers, who owned it previously. It could bring new demand to the market,” a physical market source said.

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Chinese investors bid for Khuut-Bichigt project www.gogo.mn

Investors are offering their bids to invest in Khuut-Bichigt route railroad, which will be the main freight line in the eastern region of the country. For instance, Baxin Railway LLC of People's Republic of China (PRC) expressed its interest to invest in the railroad, as well as to establish an project park in Khuut station. Presently, the initial feasibility study of the railroad has been prepared. Once the Ministry of Road and Transport Development approve the feasibility study, the information on investment will be made public, informed the working group responsible for Khuut-Bichigt railroad.

Furthermore, environmental and social impact assessments, as well as field research and engineering geology analysis have been completed. The industry experts prioritize research and estimation of a railway project. Therefore, the working group is preparing a detailed study of the project. “Establishment of a complex infrastructure in the east will have a significant impact in the regional development and will provide transit transportation for the two neighbors, remarked Tsengel Bold, CEO of Mongolian Railways state-owned company.

A deposit with around 200-300 million tons of mineral resource is located in the Khuut-Bichigt route. The infrastructure will intensify mineral turnover and will allow Mongolian mining products to be traded in the international markets. Also, the early estimation show that some percentage of freight transports of Russian and PRC in the Trans-Manchuria railways could be transited through Khuut-Bichigt. The Government’s 2016-2020 Action Plan stated to establish Tavantolgoi-Gashuusukhait and Khuut-Bichigt route railroads. The 239 km long Khuut-Bichigt railroad will also provide around 800 workplaces. Although the investment amount is still unknown, the related officials informed that the initial cost will be around USD 1 billion.

Mongolia, Russia and PRC have agreed to establish a trilateral economic corridor within the frames of “Belt and Road” initiative of PRC and “Development Road” initiative of Mongolia. Accordingly, 33 projects will be implemented for the corridor, which will consist of central, western and eastern regional development. Additionally, the related officials and investors of Khuut-Bichigt project have gathered to convene at the Corporate hotel on January 22-23.

Tugsbilig.B

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With Mongolia at risk of third consecutive dzud disaster, UK-supported forecast-based financing rolled out to complement expanded Red Cross operation www.reliefweb.int

The IFRC said today that with well over half of Mongolia now facing at least a ‘high risk’ of a third consecutive winter dzud, it’s augmenting its operation for the 2016–17 disaster to support preparedness and capacity building with the Mongolian Red Cross Society (MRCS); this follows “close consultation with the affected population and relevant authorities”.

As part of the international response to the last dzud, the MRCS has distributed humanitarian cash totalling nearly a quarter of a million tugriks, or the equivalent of US$ 100 each to 2,740 households, and distributed first aid and veterinary kits to 1,740 households in 11 severely affected provinces.

The IFRC’s February 2017 emergency appeal was increased last October to more than US$ 850,000 from US$ 655,000, to extend the operation for a further three months.

Risk map

Now the new operational update quotes Mongolian scientists as saying that after an unusually hot and dry summer, there’s a risk of a countrywide ‘black dzud’ – a local term for a very cold winter with little precipitation, water or pasture.

“The lack of precipitation withered pasture land throughout the country,” the update says, “and many herder households were unable to prepare an adequate amount of hay and about 60 per cent of livestock were not able to gain enough fat.”

As of the third quarter of last year, it adds, more than 600,000 animals had died from hunger or disease.

In November the National Agency for Meteorology and Environment Monitoring issued a dzud-risk map for this winter showing 12 provinces or some 40 per cent of the country at ‘extreme risk’ of a dzud and about 20 per cent at ‘high risk’.

The MRCS last month distributed 20 bundles of hay to each of 624 vulnerable households in soums (townships) in parts of Tuv and Uvurkhangai provinces assessed from the government map to be at extreme risk of dzud; among other recent interventions, 55 herder households in nine provinces also got help repairing their winter shelters.

Animal kits

Complementing this effort, with support from the UK government through the British Red Cross, the MRCS has now begun implementing a bilateral forecast-based financing operation developed by the Climate Centre to reduce the dzud risk – the first ever in Mongolia.

Two-thousand households in 40 soums at extreme risk are getting unconditional cash grants (photo) and shortly animal-care kits to help them through the worst of the winter.

The MRCS “is now developing an integrated dzud preparedness and contingency plan in close consultation with the National Emergency Management Agency and herder communities,” the IFRC update says.

The Mongolian government has not formally declared a new dzud this winter or requested international assistance.

In the 2016–17 dzud, all but four of the country’s 21 provinces and some 37,000 herder households dependent on livestock in sparsely populated areas were badly affected, with temperatures dropping as low as minus 50°C.

As many as 1.1 million livestock were lost in the winter of 2015–16, and the dzud of 2009–2010, one of the most severe in history, saw nearly 10 million animals die.

Mongolian Red Cross personnel facilitating a humanitarian cash distribution earlier this month in Tuv province as part of the UK-supported forecast-based financing programme there.

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Cabinet meeting in brief www.montsame.mn

Ulaanbaatar /MONTSAME/ During its regular meeting on January 24, the Cabinet made following decisions.

� The Cabinet decided to submit to the Parliament a draft bill on General Program on Funding established between the Government of Mongolia and the Asian Development Bank. Financing of USD 468 million will be spent for diversifying economy, improving business environment, ensuring stability of social protection sector and creating jobs.

� The Cabinet resolved to submit to the Parliament a draft law on Mongolia-Korea intergovernmental general agreement on Issuance of Soft Loan from Economic Development Cooperation Fund in 2017-2019. The soft loan equal to USD 700 million has an annual interest of 0.2 percent and 30 years of repayment term and is to be spent for elimination of air pollution of Ulaanbaatar city.

� The Cabinet decided to set amount of undue tax loss at 0.050 percent a day in cases a tax payer does not pay his/her taxes in scheduled time or tax department and inspectors impose and collect unreasonable or excessive taxes.

� The Cabinet adopted methodology to compute index of provincial development, information required and list of organizations to give information. The index should be computed within the first quarter of the year and announced to public.

� The Cabinet decided to deliver information to National Security Council about condition of crime and law violations related to illegal circulation of narcotic drugs, and psychotropic.

� The Cabinet adopted Requirements and registration rule for citizen and legal body who render consulting service. The rule will set requirements for citizens and legal bodies in construction sector to give professional consulting service and regulate other relations.

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Zinc price will vault $4,000 within months – report www.mining.com

Zinc pulled back on Wednesday to below $3,400 a tonne, but stayed within shouting distance of the best levels since August 2007 as worries about global stocks of the metal, mainly used in galvanizing steel, continue to support prices.

In a research report consultants Wood Mackenzie said the combination of scheduled mine closures, top producer Glencore's strategic cuts and the impact of environmental inspections in China has depleted global stocks of concentrate.

According to the report global zinc stockpiles fell by a third in 2017 to 1.8 million tons, equivalent to 47 days of global usage. Exchange stocks halved from 500kt to 250kt (equivalent to just 6 days of global consumption) over the same period.

By the end of the second quarter, there will be less than 40 days’ of stock available for consumers; "a critically low level" according to the authors which should propel prices to $4,000 a tonne in the third quarter of this year.

"As the rapid escalation of the price thus far in 2018 has demonstrated, there is a strong possibility that investor
enthusiasm will pre-empt the tightness in the refined market and the cyclical peak in the price could be higher and sooner than
our base case assumption of a Q1 2019 average of $4,100/t."

Zinc has more than doubled since hitting multi-year lows in January 2016 when top producer Glencore curtailed production to shore up prices.

In December, Glencore said it would restart its Lady Loretta mine in the first half of this year, but added that it still expects zinc output to decrease slightly in 2018 to a shade under 1.1 million tonnes. In 2019, Glencore sees its zinc output creeping back up to 1.16 million tonnes.

Overall global zinc supply is to increase with additional capacity coming online in Australia (MMG's Dugald River project) and South Africa (Vedanta's Gamsberg mine).

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Cabinet zeroes excise tax on some fuel types www.montsame.mn

Ulaanbaatar /MONTSAME/ The Cabinet decided to zero excise tax imposed on AI-92 and A80 fuels on January 24.

“The decision has been taken in response to the increase of oil price,” explained Minister of Finance Ch.Khurelbaatar, while adding that oil price was around USD 40 when agreement was reached on the International Monetary Fund’s Extended Fund Facility Program. Oil price remains above USD 60 at the global market now. 
Kh.Aminaa

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Construction of oil refinery expected to commence this spring www.montsame.mn

Ulaanbaatar /MONTSAME/ The construction of Mongolia’s first oil refinery will begin in Altanshiree soum of Dornogobi aimag within the second quarter.

“Within the first quarter of 2018, the feasibility study on the oil refinery project will conclude, paving the way for the construction works to commence in the second quarter,” said Head of Cabinet Secretariat G.Zandanshatar, reporting on the Cabinet meeting on January 24.

In accordance with the decision, 150 ha area will be designated for special government use.

Moreover, state-owned enterprises and organizations will work on the construction of about 20-km-long railway and road connecting the oil refinery with Sainshand and energy transmission line.

A working group consisted of officials from the General Intelligence Agency, National Police Agency, Independent Authority Against Corruption and the General Authority for Specialized Inspection will be responsible for checking on each stage of the project.

The Oil Refinery Project will be co-implemented with the Republic of India.
Kh.Aminaa

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Northeast Asian EXIM Banks meet in Ulaanbaatar www.montsame.mn

Ulaanbaatar /MONTSAME/ Under the Greater Tumen Initiative (GTI), the 8th working-level meeting of the Northeast Asian EXIM Banks Association (NEA EBA) was held in Ulaanbaatar on January 23.

Officials from the EXIM Banks of China and South Korea, Development Bank of Mongolia and Russian Vnesheconombank attended the meeting. The Development Bank of Mongolia chaired NEA EBA in 2017, therefore presided the 8th working-level meeting of the Association.

The GTI is an intergovernmental cooperation mechanism among Mongolia, China, the Republic of Korea and the Russian Federation, established in 1995 and supported by the United Nations Development Programme. The initiative focuses on the priority areas of transport, trade, investment, tourism, agriculture, energy and environment. Three Mongolian aimags – Khentii, Dornod and Sukhbaatar are involved in the initiative.

At the 8th working-level meeting, the sides exchanged views on funding of the 2nd stage of the Specialized Grain Terminal project in the Russian Zarubino port and potential projects and programs for stepping up cooperation.

The NEA EMA was established in 2012 to operate as a financial and economic cooperative mechanism of the GTI. Members of the association - Development Bank of Mongolia, Russian Vnesheconombank and the EXIM Banks of China and South Korea - work towards expanding the scope of cooperation with the Governments of the member states.
M.Anudari

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Mongolian delegates arrive in Davos www.news.mn

A Mongolian delegation led by Foreign Affairs Minister D.Tsogtbaatar is attending the 48th World Economic Forum in Davos, Switzerland. The event is being held from 23 to 26 January. The delegates include Mining and Heavy Industry Minister D.Sumiyabazar and other senior officials.

Foreign Affairs Minister D.Tsogtbaatar will make a speech at the ‘The Belt and Road Impact’ session and participate in ‘Creating a shared future in a fractured world’ and ‘Peace and stability in Korean peninsula’. This year the theme of the WEF is ‘Committed to improving the state of the world’. In addition, the Minister will hold bilateral meetings with government representatives from other countries.

Mining and Heavy Industry Minister D.Sumiyabazar will attend the following sessions: ‘Policy meeting of leaders of mining and metallurgy sector’ and ‘Creating a sustainable economic system’.

Over 3000 participants in total, including heads of states and government of 70 countries, more than 350 government members and representatives of international organisations, business, culture and mass media have gathered at the 48th WEF to discuss pressing issues and challenges in the world and ways and initiatives of solutions during over 400 sessions.

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1st oil refinery to be built in SE Mongolia www.xinhuanet.com

ULAN BATOR, Jan. 24 (Xinhua) -- Mongolia on Wednesday approved a plan to build the first oil refinery in its southeastern Dornogovi Province.

The construction of the refinery is scheduled to begin in the second quarter this year, the Mongolian government press office said in a press statement Wednesday.

The project was financed by a loan from India, which was announced during Indian Prime Minister Narendra Modi's visit to the country in 2015.

The refinery will have a processing capacity of 1.5 million metric tons of oil per year and will annually produce 560,000 tons of gasoline and 670,000 tons of diesel fuel, as well as 107,000 tons of liquefied gas. The refinery would boost Mongolia's gross domestic product by 10 percent.

Mongolia currently exports crude oil to China while importing petroleum products from Russia.

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