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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‘Moral crisis’: Gates, Buffett & Bezos richer than poorest half of America combined www.rt.com

The three richest people in the United States – Bill Gates, Jeff Bezos, and Warren Buffett – have a total wealth that exceeds the savings of America’s poorest 160 million, a new study shows.

The three billionaires are sitting on a combined $248.5 billion fortune, which outstrips the combined net worth of an estimated 160 million Americans, or 53 million US households. The study entitled Billionaire Bonanza 2017 was compiled by the Institute for Policy Studies.

“So much money concentrating in so few hands while so many people struggle is not just bad economics, it’s a moral crisis,” said Josh Hoxie, the report's co-author.

The 400 richest people in the US have a combined $2.68 trillion wealth, more than the gross domestic product (GDP) of the United Kingdom, France or India.

“Our wealthiest 400 now have more wealth combined than the bottom 64 percent of the US population, an estimated 80 million households or 204 million people. That’s more people than the population of Canada and Mexico combined,” the report says.

Tax cuts, proposed by US President Donald Trump, are likely to widen the gap, according to the findings, as 80 percent of the tax relief would benefit only the wealthiest one percent of households.

“Wealth inequality is on the rise. Now is the time for actions that reduce inequality, not tax cuts for the very wealthy,” said the co-author of the report Chuck Collins.

The study suggests two ways of narrowing the wealth gap.

“First, we must not make inequality worse through new tax cuts for the wealthy. The proposed Trump tax cuts, as currently designed, would grow top one percent fortunes and do little to reduce the ranks of America’s “underwater nation.”

The second way is to implement policies to reduce concentrated wealth, the report suggests.

”Inequality will continue to widen unless we intervene directly to reduce grand concentrations of private wealth. By taxing our wealthiest households, we could raise significant revenues and then invest these funds to expand wealth-building opportunities across the economy.”

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China just announced a key step in opening its markets to foreign investors www.businessinsider.com

China has announced plans to relax foreign ownership restrictions on Chinese banks, effective immediately.

Authorities will also move to lift the ceiling on foreign ownership limits for securities funds and joint ventures to 51% over the course of the next three years.

Currently, global banks are only allowed to have a 49% interest in such ventures, thus removing their ability to control Chinese-based entities.

The announcements were made by Vice Finance Minister Zhu Guangyao in Beijing, who said authorities are in the process of drafting detailed rules which will be released shortly.

According to reports from Reuters, Zhu said the time is right for China to announce major steps for the opening up of its financial sector.

A short time ago, the CSI300 Financials Index was up 0.83%, adding to the gains seen earlier in the session.

The broader CSI300 index tracks movements of the top 300 companies by market capitailisation listed in Shanghai and Shenzhen. So far this year, it’s added over 18%.

The benchmark Shanghai Composite index is broadly unchanged in the wake of the announcement, trading up 0.15%.

Today’s announcement follows statements by Chinese authorities on Thursday that restrictions in the country’s banking and financial sector would soon be eased, as Chinese leader Xi Jinping met with US President Trump as part of Trump’s Asia visit.

Guo Shuqing, Chairman of the China Banking Regulatory Commission, flagged potential changes to foreign ownership laws at last month’s National People’s Congress in Beijing, noting that the market share of foreign banks had been falling which wasn’t good for competition.

It marks another step in the gradual integration of China’s economy into global markets. In June, MSCI said it planned to add 222 China A Large Cap stocks to its Emerging Markets Indexstarting next year, which is likely to drive capital inflows from international institutional investors.

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One of the World's Biggest Miners Is About to Go Coal-Free www.bloomberg.com

Just five years ago it would have been almost unthinkable that one of the world’s biggest mining companies would not dig any coal. It’s now likely to become a reality.

Rio Tinto Group, the world’s second-largest miner, has been steadily backtracking from coal to focus on better assets. It’s now looking for buyers for its remaining coal mines in Australia, and a sale will mark a complete exit from the fuel.

Rio’s potential coal-free future is in stark contrast with many of its rivals. Glencore Plc, the world’s top coal shipper, this year increased its exposure by agreeing to pay $1.1 billion plus royalties for a large stake in Australian assets sold by Rio. The fuel, which generates about 40 percent of the world’s electricity, is one of BHP Billiton Ltd.’s main strategies, while Anglo American Plc has pulled back on plans to sell out of the commodity.

While many miners are bullish on coal, the world’s dirtiest fuel has become a flashpoint for a growing movement of investors calling for miners to cut their exposure. For example, Norway’s sovereign wealth fund doesn’t invest in firms that make 30 percent of their sales from coal, while the Church of England sets the limit at 10 percent.

“People are picking different levels, whether they are divesting for ethical reasons or for business driven reasons,” said Helen Wildsmith, head of climate change at CCLA Investment Management, which manages money for the Church of England. “Having one of the big diversified miners without thermal coal does give investors more options.”

Yet Rio’s decision is more to do with its coal mines not being able to compete with its other assets, rather than pressure from climate-change or divestment campaigns. Chief Executive Officer Jean-Sebastien Jacques has argued that even a mining firm as big as his only has so much managerial talent and money, and must focus those on more productive assets. It has also been able to sell coal mines for what it sees as good prices, allowing more cash to be returned to shareholders.

Even so, mining companies are increasingly having to consider how global proposals to curb greenhouse gases will impact the future of commodities they mine, said Wildsmith, who’s part of a team of investors that talks to firms like BHP and Rio about climate change.

“The big diversified miners are all trying to work out which commodities are going to be most disadvantaged in the future, and the low-carbon transition is one of the big uncertainties that they and other companies are facing,” she said. “We’re seeing more companies integrating their thinking on climate change scenarios into the macro-economic and cyclical scenarios that they work with.”

It looks like Rio won’t have to worry about coal for too much longer. It sent out preliminary information on the Hail Creek and Kestrel coal mines to potential buyers last month and asked for indicative bids by early December, people familiar with the matter said in October.

The London-based miner has been shedding its Australian coal assets since dismantling its energy division in 2015. Earlier this year, it agreed to sell its Coal & Allied Industries Ltd. to China’s Yanzhou Coal Mining Co., before Glencore then bought a stake in the project. Rio has also sold other projects from Australia to Mozambique.

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30 special permits for exploration granted in 2017 www.mongolia.gogo.mn

Fourteen special permit bids for 90 designated exploration areas were announced and 30 special permits for exploration were granted in 2017.

The Mineral Resources and Petroleum Authority (MRPA) stated that 14.2 billion MNT in state revenue was generated from the special permits granted. The remaining exploration areas, which investors passed over during the license auction, have been made eligible for licensing through an application process.
The MRPA said that the granting of special permits was based on a company’s bid and their technical capacity. The MRPA has proposed that special permits be eligible for return to the government if the company that receives the license doesn’t invest in the field within an agreed upon timeframe.

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The Electric Car Revolution Will Need a Lot of Copper www.bloomberg.com

Demand for copper globally is set to jump 22 percent in as soon as five years on increasing usage of the metal in electric vehicles, solar and wind power sectors, according to Indian billionaire Kumar Mangalam Birla’s Hindalco Industries Ltd.

Consumption is seen rising to 28 million metric tons in the next five to seven years from about 23 million tons now, J.C. Laddha, head of the Indian company’s copper unit, said in New Delhi at an industry conference. Electric vehicles alone will boost global copper demand by 1.2 million tons, he said.

India is also expected to benefit from the electric-vehicle push as Prime Minister Narendra Modi seeks to turn all passenger car sales electric by 2030, Laddha said. “But even without the demand from electric vehicles, demand should rise to 1.8 million tons to 2 million tons,” he said.

Copper has rallied more than 20 percent this year along with other industrial metals on prediction of tighter supplies and increasing global economic growth amid new sources of demand. Top producer Codelco forecasts that prices could test record highs above $10,000 a metric ton as the supply-demand balance shifts to substantial deficits from 2018.

India’s consumption is expected to grow by as much as 10 percent from 700,000 tons a year now, Laddha said. India has the potential to boost consumption of everything from copper to iron ore as its economy expands over the next two decades and more people flock to its cities, according to projections from the Australian government that examine whether the country will emulate China.

The South Asian nation will auction more copper mines to meet demand as the reliance mostly on foreign supplies makes the local industry “vulnerable,” Mines Secretary Arun Kumar said at the same industry event.

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Prime Minister talks oil exploration with the Indian Ambassador www.mongolia.gogo.mn

Prime Minister U. Khurelsukh received Ambassador of India, H.E. Dr. T. Suresh Babu on November 8.

The Prime Minister expressed his gratitude for relations between Mongolia and India developing into strategic partnership. He stated that his cabinet will work effectively with the one billion USD soft loan being granted by the Government of India.
As outlined in the soft loan agreement between the two countries, a technical and economic feasibility study has begun for establishing an oil field and pipeline. The two sides also discussed establishing an information technology outsourcing data center.
The Indian Ambassador said that training sessions will be organized for the two projects teams. The Ambassador also noted that a tender offer for establishing the oil field may be announced in the first quarter of 2018.

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Mongolia's Deputy Foreign minister visiting Paraguay www.mfa.gov.mn

Mrs. B.Battsetseg, Deputy Minister for Foreign Affairs of Mongolia, is on a working visit to the Republic of Paraguay on November 8-10, 2017.

On the 8th of November, she met Mr. Mario León, Deputy Minister for Agriculture and Mr. Oscar Stark, Deputy Minister for Commerce, and expressed Mongolia’s interest in learning from the achievements and experiences that Paraguay have accumulated in agricultural development and promoting cooperation in this field. The Paraguayan side has accepted our proposal and expressed their willingness for further collaboration. Along with other South American countries, Paraguay has advanced its agricultural development, and is now ranked as one of the biggest exporters of beef and organic agricultural products in the world.

Both sides agreed to extend the validity of the MOU on the cooperation between the Mongolian Ministry of Agriculture, Food, and Light Industry and the Paraguayan Ministry of Agriculture and Livestock signed in 2016. Within the framework of the MoU, there are opportunities presented to identify the prospects of cooperation in the areas of agriculture and food production, exchange of experience in advanced technology, developing opportunities for research, cooperative and private sector relations and cooperation.

During the visit to the Agriculture Technology Institute of Paraguay, Deputy Minister met Mr. Santiago Bertoni, President of the Institute and exchanged views on the possibilities to start joint projects and programs, as well as exchange experts. 

Mongolia and Paraguay established diplomatic relations on June 13, 2003 and as the two landlocked developing nations share the similarities, such as small and scattered population and agriculture sector plays a key role in the economy; both sides see that Mongolia and Paraguay have opportunities to develop wide-range of cooperation.

As she continues her visit, Deputy Minister B.Battsetseg will meet with her counterpart, Deputy Minister for Foreign Affairs of Paraguay, Ambassador Federico González, and hold bilateral political consultations between the Ministries of Foreign Affairs of both countries.

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Itools IPO oversubscribed by 1.84 www.mse.mn

ITools, the most recent company to be listed on the Mongolian Stock Exchange, is offering 13.4 million shares, or 38.6%, of its shares outstanding for its IPO. While total subscription for the stock had reached 115% on November 8th, 2017, it has reached 184.4%, or a combined 24.6 million shares ordered by 627 individuals and entities, today.

Due to the oversubscription of the stock, the shares will be allotted as follows:

Orders for up to MNT 50 million will be fully filled, while orders over MNT 50 million will be allotted on a pro-rata basis.
In the case where orders worth MNT 50 million exceed the total offered amount of ITools shares, orders up to MNT 1 million will take priority and orders over MNT 1 million will be allotted on a pro-rata basis.
Orders of investors who split their orders among two or more brokers will be summed and counted as one order.
Orders for ITools stock will conclude on November, 10th, 2017.

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Gold price: Global demand falls to 8-year low www.mining.com

The latest report by The World Gold Council on global trends showed a sharp drop overall demand for the metal during the third quarter as investor purchases of gold-backed exchange traded funds cooled and jewellery demand softened.

Research from WGC, an industry body, indicate global demand fell 9% to 915 tonnes during the September quarter. Year to date demand is down 12%.

According to the report global jewellery demand was down 3% year-on-year for the three-month period, hurt by a new sales tax and tighter anti-money laundering regulations governing retail jewellery transactions in India, the world's number one consumer of the metal. Jewellery demand on the subcontinent was down 25% to just shy of 115 tonnes. In contrast US jewellery demand so far in 2017 is at a seven-year high.

Investors continued to pour money into ETFs, but it was more of a trickle – down 87% compared to the 144 tonnes of net inflows into the sector in Q3 2016. Total assets under management grew to 2,343 tonnes valued at $96.7 billion by end-September. Last year saw more than 660 tonnes of inflows into ETFs, the best annual performance since 2009.

Bar and coin investment strengthened by 17% to 222 tonnes, albeit from a low base according to the report.

The WGC said central bank demand stayed robust thanks to continued buying from Russia and Turkey. Net purchases by the official sector jumped 25% year-on-year to 111 tonnes.

Although not a significant source of demand, volumes of gold used in technology increased for the fourth consecutive quarter on the back of strong demand for LEDs and continued growth in the use of 3D sensors in new smartphones which boosted demand by 2% to 84 tonnes.

2016 full year gold demand gained 2% to reach a three-year high of 4,308.7 tonnes.

Record gold production
While gold production at mine level declined by 1% year-on-year in Q3 to 841 tonnes, output so far this year of 2,420 tonnes is the highest on record according to WGC data.

Top producer China, which overtook South Africa a decade ago in terms of gold output – registered its fifth consecutive year on year decline during the quarter. Recently imposed regulations, which target the discharge of cyanide in tailings, continue to bite and may impact production over several more quarters according to the WGC.

The dispute between Acacia Mining and Tanzania’s government again significantly disrupted production in that country, leading to a fall in total Q3 production of 15% year on year, while Burkina Faso also recorded sharply lower production.

In Canada, output rose 10% compared to last year thanks to increases at Brucejack and Hope Bay, both of which started commercial production earlier in the year. Rainy River, NewGold's mine in northern Ontario, is expected to hit commercial production this month.

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November 09, 2017 trading report www.mse.mn

On November 09, 2017, 74,522 shares of 20 firms listed as Tier I, II, and III were traded. 11 firms’ shares increased in price, 7 decreased and 2 remained unchanged. State Department Store JSC /UID/ was the top performer, increasing 12.43 percent, whereas Mik Holding JSC /MIK/ was the worst performer, decreasing 6.99 percent.

On the secondary market for government bonds, 116,922 bonds with a value of MNT11.5 billion were traded.

The MSE ALL Index decreased by 0.22 percent to stand at 1,157.07 points. The MSE market cap stands at MNT 2,276,235,680,859.

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