1 COPPER MINER'S $10B BET COMES TO LIFE IN PANAMA JUNGLE WWW.MINING.COM PUBLISHED:2019/02/15      2 TRADE UNIONS REQUEST PM TO FOCUS ON INTEREST RATE CUT WWW.ZGM.MN PUBLISHED:2019/02/15      3 MONGOLIA’S HOURLY WAGE TO REACH USD 1 WWW.NEWS.MN PUBLISHED:2019/02/15      4 US NARCOTICS BY POST TO MONGOLIA! THREE ARRESTED WWW.NEWS.MN PUBLISHED:2019/02/15      5 WRITER D.URIANKHAI NOMINATED FOR THE NOBEL PRIZE WWW.MONTSAME.MN PUBLISHED:2019/02/15      6 MONGOLIA-CHINA-RUSSIA ECONOMIC CORRIDOR BENEFITS ALL SIDES: OFFICIAL WWW.XINHUANET.COM PUBLISHED:2019/02/15      7 SOLAR EMPOWERMENT OF NOMADS IN RURAL MONGOLIA WWW.GREENOPTIMISTIC.COM PUBLISHED:2019/02/15      8 MONGOLIA, CUBA TO BOOST BILATERAL RELATIONS WWW.PLENGLISH.COM PUBLISHED:2019/02/15      9 GOOGLE OUTLINES $13BN US INVESTMENT WWW.BBC.COM PUBLISHED:2019/02/14      10 NATIONAL DEVELOPMENT AGENCY TO COOPERATE WITH JAPAN’S MIZUHO BANK WWW.MONTSAME.MN PUBLISHED:2019/02/14      “ОЮУ ТОЛГОЙ” КОМПАНИ 570 ТОННЫ ДААЦТАЙ CAT БРЭНДИЙН ГИДРАВЛИК ЭСКВАТОРООР ХҮЧЭЭ СЭЛБЭЛЭЭ WWW.GOGO.MN  НИЙТЭЛСЭН:2019/02/15     ӨРХИЙН САРЫН ДУНДАЖ ОРЛОГО 78,000 ТӨГРӨГӨӨР ӨССӨН Ч ЗАРЛАГА ДАВСАН ХЭВЭЭР БАЙНА WWW.IKON.MN НИЙТЭЛСЭН:2019/02/15     АВСТРАЛИЙН ЭЛЧИН САЙД ДЭВИД МЭТЬЮ ВОСЭН ИТГЭМЖЛЭХ ЖУУХ БИЧГЭЭ ӨРГӨН БАРИВ WWW.MONTSAME.MN НИЙТЭЛСЭН:2019/02/15     2018 ОНД МОНГОЛ УЛСЫН ЭДИЙН ЗАСАГ 6.9 ХУВИАР ӨСЛӨӨ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/15     МХБ: II/15-НЫ БАЙДЛААР 8 КОМПАНИ ХЭХ-ЫН ТОВОО ГАРГААД БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/15     2017 ОНД 1.9 ТЭРБУМ ТӨГРӨГИЙН АЛДАГДАЛТАЙ АЖИЛЛАСАН “УЛААНБААТАР БҮК” 2018 ОНД 566 САЯ ТӨГРӨГИЙН АШИГТАЙ АЖИЛЛАВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/15     ОРХОН ТҮҮХИЙ НҮҮРСНЭЭС ТАТГАЛЗСАН АНХНЫ АЙМАГ БОЛНО WWW.UNUUDUR.MN НИЙТЭЛСЭН:2019/02/15     АТГ-ААС НЭР БҮХИЙ 6 ШҮҮГЧИЙГ ШАЛГАЖ ЭХЭЛЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2019/02/15     МОНГОЛ УЛС ДЭЛХИЙН 77 ОРОНД БАРАА ЭКСПОРТОЛСНООС ХЯТАДАД 93%-ИЙГ НЬ НИЙЛҮҮЛЖЭЭ WWW.IKON.MN  НИЙТЭЛСЭН:2019/02/14     АВТО МАШИНЫ ИМПОРТ 2018 ОНД 30% ӨСӨЖ, 86,296-Д ХҮРЧЭЭ WWW.IKON.MN  НИЙТЭЛСЭН:2019/02/14    

Events

Name organizer Where
“Doing business with Mongolia”, “UK Investors show” бизнес хөтөлбөр March 27-April 02. 2019 ЛОНДОН ХОТ, ИХ БРИТАНИ Mongolian Business Database London UK
SYMPOSIUM ON GLOBAL MARKETS Nationalism and Protectionism: The United States in the International Arena June 17-18, 2019 The Center for American and International Law Plano, Texas, USA The Center for American and International Law (CAILAW) Plano Texas June 17-18 2019
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

64x64

Ministry of Mining reports on 2017 income and 2018 licensing www.gogo.mn

The Ministry of Mining and Heavy Industry reports that a total of 41 billion MNT was generated from licensing fees in 2017.

The ministry says that licensing fee revenue will decrease this year, as fewer licenses will be issued in 2018.

New license selection will begin this month, led by the ministry's newly formed selection committee. Proposals for mining projects in the provinces were submitted for 8.5 million hectares which were approved by Cabinet for potential exploration.

Currently, it is unclear how many licenses will be issued in 2018. Last year, 26 special permits for 11.5 hectares were granted, and 1,715 exploration permits and 1,330 production permits were granted nationwide.

...


64x64

State-owned companies saw 859 billion MNT in 2017 net profit www.gogo.mn

Based on 2017 financial reports from 86 fully and partially state-owned entities, including data on revenue, expenditure, profit, loss and liabilities, state-owned companies saw 859 billion MNT in net profit.

In 2016, 45 percent of state-owned companies made profits, but 72 percent made profits in 2017. The dividend distribution of these companies totalled 4.3 billion MNT in 2016 and 12.6 billion MNT in 2017. Aggregate receivables in 2016 were 428 billion MNT, and saw a decrease of 12.5 billion MNT in 2017.

Total liabilities decreased by 16.4 percent in 2017, reaching 3.9 billion MNT. Data from eight entities, including Development Bank of Mongolia and State Bank, were not included in the aggregate report.

...


64x64

Russia & China to merge satellite tracking systems into one global navigation giant www.rt.com

Moscow and Beijing will team up to create an integrated navigation system based on Russia’s Global Navigation Satellite System (GLONASS) and the Chinese BeiDou. The system will cover most of Eurasia.
The countries will reportedly negotiate the merger in May at the International Conference on Advanced Technologies in Manufacturing and Materials Engineering in the Chinese city of Harbin, Izvestia daily reports.

The initiative to merge the two separate systems is the result of a proposal made by the Chinese authorities to the Russian Federal Space Agency, Roscosmos. It is intended to create a joint global navigation satellite system, covering the countries of the Shanghai Cooperation Organization, which include China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan, India and Pakistan.

The new system will allow the partners to share data on the positions of navigation satellite groups, improve working efficiency in a real-time environment, and to exchange corrections, where necessary. At the same time, Russian GLONASS may significantly broaden its user base.

“If the project is implemented, it will allow for an improvement in accuracy for both systems,” said a Roscosmos spokesperson, as quoted by the media.

If successful, the project will divide the entire world into two zones of influence by two united systems GLONASS-BeiDou and GPS-Galileo, operated by the US and the European Union, according to Andrey Ionin, a member of the Russian Academy of Cosmonautics.

Global Positioning System (GPS), the world’s oldest Global Navigation Satellite System, began operations in 1978 to provide location information and navigation to missile submarines and surface ships. The system was also used for hydrographic and geodetic surveying by the US army. The system was opened to civilian and commercial use in 1994. GPS currently operates 31 satellite constellations.

Russia’s GLONASS became operational in 1993. The navigation system has 27 satellites in orbit and all are operational. It is run by the Russian Aerospace Defense Forces and is currently the second alternative navigational system in operation.

Galileo is the European global navigation system, which is available for civilian and commercial use. It is a joint project by the European Space Agency and the European GNSS Agency. At present, there are 22 operational satellites out of a projected 30. Galileo started working in 2016 and is expected to reach full operational capability by 2020.

Chinese BeiDou was put into operation 2000 with limited coverage and navigation services offered mainly to users in China and neighboring regions. The system currently has a total of 22 operational satellites in orbit and the full constellation is projected to reach 35 satellites.

Japan and India are also developing their own regional navigation satellite systems. The Japanese Quasi-Zenith Satellite System (QZSS) is currently under construction. This is expected to become fully operational by the end of the current year. It will have seven satellites and four have already been sent into orbit.

The Indian Regional Navigation Satellite System (IRNSS) covers India and nearby regions, extending up to 1,500km. Its seven satellites are currently in orbit, but the first one has been out of operation after all rubidium atomic clocks on board failed in 2017.

...


64x64

Mongolian Economic Forum embellishes 3-Pillared Development Strategy www.theubpost.mn

The public and private sector convened on March 28 at the “Uniting Power” pre-session for the Mongolian Economic Forum.

State officials presented speeches on the government’s actions, policies, strategies and future targets at the forum, promoting stronger public-private partnership.

One of the highlights of the forum was Head of the Cabinet Secretariat G.Zandanshatar’s presentation on Mongolia’s Three-Pillared Development Strategy, enacted in 2015 with the intention to develop the nation through 27 criteria of nine chapters and three fundamental goals to be achieved by 2050.

The strategy is aimed to establish a just, disciplined, responsible and stable government system, enhance economic competitiveness through a general national development policy, and improve public livelihood. For sustainable economic development, projects will be targeted at food exportation, agriculture, tourism, industry and infrastructure. For governance reform, the government plans to revise the Constitution and reform the legal governance and public services. For public livelihood improvement, a package law to support wealth creators, Development Program for Mongolians, and Policy to Reduce Unemployment and Poverty will be executed.

The government has decided to launch Smog-Free Ulaanbaatar 2020, Shine Khuduu (New Countryside) and Tavan Tolgoi projects along with projects for Industrial and Technical Park for Agriculture, Oil Refinery, Central Wastewater Treatment Plant, Recycling Factory, and New Ulaanbaatar International Airport. Although the government is set on financing these projects through the state budget, private investments, foreign loans, and grants, it has not provided an estimate for their total cost or budget.

Participants were intrigued to find out that the Three-Pillared Development Strategy is expected to open 263,000 new jobs, especially since Mongolia’s unemployment rate fluctuates between 100,000 and 150,000 people.

“One in every three people in Mongolia live in poverty. The biggest cause of poverty is unemployment. Creating new jobs will reduce unemployment,” stated S.Mungunchimeg, the deputy minister of labor and social protection.

TAX REFORM

Another keynote speech was focused on the package tax law reform. Minister of Finance Ch.Khurelbaatar relayed that through the reform, the government hopes to relieve financial burden on entities, raise tax collection base, and mold a legal environment with longer reporting time.

He reported that enterprises, public and private organizations and individuals proposed 1,082 amendments to laws related to tax and that 19 percent of proposals are ready for submission to Parliament. The government rejected 26 percent of all submitted proposals because they requested either excessive discount or exemption.

“A sustainable economy is starting with the tax law package reform,” Ch.Khurelbaatar claimed. He believes that revising tax laws will lessen burden on small and medium-sized enterprises.

According to the Ministry of Finance, 398,000 out of over 100,000 registered companies account for 85 percent of the total tax revenue of Mongolia. Minister Ch.Khurelbaatar reassured that tax revenue will not diminish if the tax rate is lowered.

During the discussion, President of the Mongolian National Chamber of Commerce and Industry B.Lkhagvajav explained, “Lowering tax rate will uncover the underground economy and increase tax revenue.”

Ch.Khurelbaatar declared that the package tax law reform will be approved before the end of July and related procedures and regulations will be passed in November after public discussion sessions. If these laws are enacted, they will take effect starting next year.

The main event of the Mongolian Business Forum will kick off on May 21 and 22 in Ulaanbaatar.

...


64x64

2018 development projects determined www.theubpost.mn

The Ulaanbaatar mayor’s council went over road construction projects, strategies for tackling traffic, and development projects for the education sector planned for this year last week.

City to focus on reducing traffic
Deputy Mayor in charge of Infrastructure and Ger Area Development P.Bayarkhuu introduced that the construction of an overpass at the intersection of the Traffic Police Department will be completed in 1.6 years, starting next month. To reduce traffic expected during the construction work, eight sub-roads will be newly built or expanded with 1.3 billion MNT. For example, 393 million MNT is required to build a 0.4-kilometer road connecting Mahatma Gandhi Street to Sun Road, 198.2 million MNT to build 0.3-kilometer road connecting Niislel Khuree Avenue to the National Academy of Governance, and 31.6 million MNT to build permanent traffic barriers along the 0.3-kilometer road between Khunnu Street, Saruul Town and Soyolj. Other plans include the construction of a 0.14-kilometer bridge between Road Workers’ Street and 13th microdistrict.

Traffic is one of the most pressing challenges in Ulaanbaatar. Around 80 percent of all vehicles in Mongolia are driven in the capital, with some 40,000 imported each year. However, research shows that not a single car has been sent to the wreckage yard in recent years, reported Ulaanbaatar Mayor S.Batbold.

“Two large overpass projects will be launched in Ulaanbaatar, meaning that traffic will increase tremendously. We will pay special attention to this matter. We hope that the public will understand this and be patient as road constructions commence. With public support, spring development projects will be completed within a short period of time at highest efficiency and quality,” he said.

Some traffic restrictions will be placed from April 15 to October 1 to prevent traffic, according to P.Byarkhuu. Officials are debating two traffic restriction proposals. The first is to launch a driving restriction based on the last digit of license plates only in Baga Toiruu. In specific, vehicles with license plates ending with an odd number can drive along this road on Mondays and Wednesdays, while those ending with an even number drive on Tuesdays and Thursdays. On Fridays, large markets such as Narantuul and Bumbugur will be closed. Officials believe this will enable smoother passage on other roads.

The second option is to allow cars with license plate ending with an odd number to drive from Sapporo intersection to Officers’ Palace on Mondays and Wednesdays, whereas those ending with an even number on Tuesdays and Thursdays and all cars on Fridays. Offiicials decided to conduct a public pollto determine which option to take.

Schedule for infrastructure projects released
City officials outlined a general schedule for infrastructure projects at the meeting. It includes 241 projects for 10 directions, according to B.Oyuntuya, the head of the Engineering Infrastructure Planning Division of the General Ulaanbaatar Urban Development Office.

“Investment for infrastructure projects to be carried out is expected to increase this year. Project targeted at developing ger areas will intensify in summer with loans from international financial organizations. They will be implemented according to a general schedule. Associated organizations must follow the new schedule, avoid causing hindrance to local residents, and deliver precautionary announcements and notices on time,” stated Ulaanbaatar Mayor S.Batbold.

He reminded that hot water outages must not prolong for a month like in previous years and should last a week at most. “We’re striving to do repair and maintenance work for pipes without cutting off hot water if possible,” the mayor said.

18 new schools to be built
This year, the city administration plans to build 18 new schools and expand 27 schools, according to Deputy Mayor Sh.Ankhmaa.

The construction of nine new schools and expansion of 25 schools will be executed with state funds. Seven new schools will be built with a grant from the Chinese government and the rest of the projects with a grant from the Japanese government. Construction work has been scheduled for 56 kindergartens — 42 kindergartens will be newly constructed and 10 kindergartens expanded with state funds, two kindergartens with a discounted loan from the Asian Development Bank, and another two kindergartens with a discounted loan from UNICEF.

Moreover, the government has projected financing for three elementary school and kindergarten complexes and five sport halls in the state budget.

Sh.Ankhmaa reported that Beijing Construction Engineering Group has started assembling framework for five of the seven schools to be built with the Chinese grant.

“Our plan is to reduce general education school shifts to two and increase availability of kindergartens to up to 85 percent by 2020. Many educational projects have been planned for 2018. Right now, land issues for 17 schools and kindergartens need to be resolved. These matters will soon be introduced to the government,” said Mayor S.Batbold.

...


64x64

Mongolia agrees with Kazakhstan to establish gold refining plant www.montsame.mn

Ulaanbaatar /MONTSAME/ A resolution of the 7th meeting of the Mongolia-Kazakhstan Intergovernmental Commission has reflected the issue of establishing gold refining plant in Mongolia.

Minister of Mining and Heavy Industry D.Sumiyabazar who is attending the Intergovernmental commission meeting reported about it. "Kazakhstan’s example on gold refining plant and other related information will be presented to the Cabinet meeting and decisions on investment, funding and location of the gold refining plant will be resolved. Moreover the Bank of Mongolia will resolve issues related to getting rights to sell the refined gold on global market. The two parties of the commission agreed that corresponding entities of Kazakhstan get permissions in August, 2018 and to run operations according to international standards, " said Minister D.Sumiyabazar . He also noted that Kazakhstan has introduced high technology of gold refining and reserves all its gold in the central bank and Mongolia shoud introduce this practice.

Minister D.Sumiyabazar met Vice Minister of Investment and Development of Kazakhstan Arystan Kabikenov on March 30. At the meeting they established a memorandum of cooperation in fields of geology, mining and civil aviation. In the frame of the memorandum, the sides will collaborate in exchanging information, good practices and technology in mining sector and in training specialists.


B.Batchimeg

...


64x64

Coal miners' export price varies significantly www.gogo.mn

Erdenes Tavan Tolgoi JSC (ETT), which plans to export 10 million tons of coal in 2018, has failed to reach a deal with Chalco. As of March, the company is selling coal at USD 68.1 per ton at the mine, informed Ariunbold Dorj, CEO of ETT. Presently, Mongolyn Alt LLC, SouthGobi Sands and Usukh Zoos are mining in Nariinsukhait residual deposits.

This year, Mongolyn Alt LLC has exported 1.5 million tons of coal. Vice President of the Company Tsogt Galsan notified that the company is selling coal at CNY 500, or USD79.4, at the mine. Around one third of coal in Nariinsukhait consists of coking coal, while the remaining are considered thermal coal.

As for SouthGobi Sands LLC, the average price of coal was CNY 280 or USD 44.5 per ton. The company plans to export 5.5 million tons of coal this year, as well as producing 800 thousand tons of processed coal. The company estimates the processing coal price to reach CNY 500-600.

Aspire Mining LLC, who purchased the special permission to mine in Nuurstei Coking Coal deposit, informed that it expects coking coal price to remain stable throughout the year.

Tugsbilig.B

...


64x64

IAAC arrests three suspects for law-breaking www.montsame.mn

Ulaanbaatar /MONTSAME/ The Independent Authority Against Corruption (IAAC) has arrested three suspects in the course of its investigation of the Oyu Tolgoi Investment Agreement.

Namely, former Minister of Finance S.Bayartsogt, former Director of the Mongolian Tax Administration B.Ariunsan and former CEO of Erdenes Tavan Tolgoi LLC B.Byambasaikhan have been suspected of breaking the law during the establishment of the 2009 Investment Agreement and the 2015 Agreement signed in Dubai.

The individuals are currently being held at the 461st detention center of the General Executive Agency of Court Decision, the IAAC said.

The IAAC is expected to provide an update on the issue soon.
Kh.Aminaa

...


64x64

Russia & Saudi-led OPEC working on deal to corner oil market for decades www.rt.com

Moscow and Riyadh, backed by OPEC, are negotiating a deal that would allow them long-term control of oil prices. If successful, Russia and Saudi Arabia would manage oil markets for the next two decades.
At the moment, Russia and OPEC are signing agreements on oil production cuts on a yearly basis. However, the next deal could be much longer.

“We are looking for a very long-term cooperation between OPEC and non-OPEC producing countries,” OPEC Secretary General Mohammad Barkindo said on Wednesday.

Saudi Crown Prince Mohammed bin Salman announced the plan in an interview with Reuters on Monday. “We are working to shift from a year-to-year agreement to a 10-20 year agreement,” he told the news agency. “We have agreement on the big picture, but not yet on the detail.”

If such a deal is signed, it would be unprecedented. Russia and Saudi Arabia have worked together in previous oil crises, but such long agreements have never been reached.

“I think it’s certainly something that OPEC would like very much… And I think the agreement that they struck – that is with OPEC and non-OPEC members – actually took them quite a large step towards that,” Colin Smith, oil analyst at Panmure Gordon, told CNBC.

“I think getting to a fully-fledged agreement in which Russia becomes a de facto member is a bit of a push at the moment,” he added.

In December 2016, OPEC, Russia, and other major producers agreed to curb production by 1.8 million barrels per day (bpd) for six months. The agreement has been extended twice. In this period, oil prices have grown from $54 to above $70 per barrel and analysts have reported the supply overhang has almost been eliminated.

...


64x64

Going down: Bitcoin & crypto market dropping into danger territory www.rt.com

Bitcoin fell below $7,000 on Friday, moving closer to the lows the world's number one virtual currency reached in February.
The value of all cryptocurrencies has now dipped to $250 billion – having lost an astonishing $580 billion in value from record highs late last year. This is fueling fears among some investors that the crypto-bubble is about to burst.

The price of bitcoin dropped to $6,753 at 5:00am GMT on Friday, losing nearly two-thirds of its value since peaking above $19,000 in December. Sell volumes have reportedly increased across all the major cryptocurrency exchanges, with the entire market likely affected by a sharp increase in trading volumes in bitcoin futures at the Chicago Board Options Exchange (Cboe) and CME Group.

As more and more spooked investors are pressing the panic button, bitcoin charts show the cryptocurrency is on its way toward the so-called death cross – a point in a stock’s lifetime where the 50-day moving average (MA) crosses below the 200-day MA. This means that the price has fallen in 50 days as much as it would usually fall during the last 200 days.

The cryptocurrency market has followed bitcoin's plunge, wiping out most of the gains seen at the end of 2017 and the beginning of 2018. The crypto market cap has dropped to $250 billion, compared to $829 billion in early January, right before the price crash.

“This run-up was fueled by speculation rather than technological advances and so many people entered the space drawn by the price headlines only,” said Edward Cooper, head of mobile at digital banking firm Revolut, as quoted by Inverse Innovation. “We are now seeing a return to more normal trading where the price consolidates and any increases are driven by technological advances and increased adoption rather than the news cycle.”

...