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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Implementation of Vienna program of action for LLDCS discussed at UNGA session www.montsame.mn

Ulaanbaatar /MONTSAME/ Director of the Multilateral Cooperation Department of the Mongolian Foreign Ministry O.Enkhtsetseg attended a meeting of the 72nd Session of United Nations General Assembly Second Committee, which discussed the facing issues of landlocked developing countries (LLDCs).

The UN members presented an implementation course of the Vienna Program of Action for LLDCs (2014-2024) in their countries and highlighted the necessity of making efforts in improving infrastructure, business environment, strengthening private and public entities, producing VAT included products, financing infrastructure sector and increasing studies on investment and technical assistance.

O.Enktsetseg informed about the Mongolian Government’s policies and actions for implementing in the frameworks of the Vienna Program of Action and presented the national implementation progress and its priorities.
"Mongolia aims to join international and regional agreements to facilitate trade and transport, actively participating in regional economic integrations, and is cooperating with the two neighbors within the frames of ‘Belt and Road’ initiative, said O.Enkhtsetseg. She then informed that the Government decided to establish the Investment and Research Center for the Economic Corridor program and the National Committee on Trade Facilitation to ensure the implementation of WTO Trade Facilitation Agreement.

O.Enkhtsetseg further noted that the Mongolian Government of Mongolia is holding an international forum entitled 'Regional Transport and Logistics Cooperation' on October 19-20 in cooperation with United Nations Economic and Social Commission for Asia and the Pacific.

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World’s First Floating Wind Farm Begins Operating in Scotland www.bloomberg.com

The world’s first floating offshore wind farm started delivering electricity to the grid in the north of Scotland.

The Hywind project, built by Norwegian oil company Statoil ASA and Masdar Abu Dhabi Future Energy Co., has five turbines floating 25 kilometers (16 miles) off the coast of Peterhead, near Aberdeen. The project has a capacity of 30 megawatts and cost about 200 million pounds ($263 million) to construct.

“This marks an exciting development for renewable energy in Scotland,” said First Minister Nicola Sturgeon. “Hywind will provide clean energy to over twenty thousand homes and will help us meet our ambitious climate change targets.”

Wind turbines have been installed on seabeds since the 1990s. Taking them offshore typically increases wind speeds and reduces complaints from neighbors, but it has also been limited to relatively shallow seas. Floating turbines are expected to open the industry up to new markets like Japan, the U.S. west coast and Mediterranean, where seabeds drop off steeply from the coast.

“Hywind can be used for water depths up to 800 meters, thus opening up areas that so far have been inaccessible for offshore wind,” said Irene Rummelhoff, executive vice president of the New Energy Solutions business area at Statoil.

Batteries

Some of the energy generated by the turbines in the sea will be stored in batteries. Statoil has installed one of its Batwind lithium devices, which can store 1 megawatt-hour of power. This will help steady the flow of power generated by the wind farm.

The cost of conventional offshore wind farms has been plummeting in recent years. The U.K.’s latest renewable energy auction saw prices drop to 57.50 pounds per megawatt-hour, less than a third the cost of new nuclear in the U.K. Rummelhoff expects floating offshore wind to follow a similar trajectory.

“Statoil has an ambition to reduce the costs of energy from the Hywind floating wind farm to 40 to 60 euros per megawatt-hour by 2030,” she said in a statement. “Knowing that up to 80 percent of the offshore wind resources are in deep waters where traditional bottom fixed installations are not suitable, floating offshore wind is expected to play a significant role in the growth of offshore wind going forward.”

The Hywind project receives government support in the form of renewable obligation certificates. It gets 3.5 ROCs, which currently adds up to about 140 pounds per megawatt-hour, according to Statoil spokeswoman Elin Isaksen. This is on top of the U.K.’s wholesale power price which has averaged 48.75 pounds per megawatt-hour over the past year.

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National forum to be organized to reduce air pollution www.montsame.mn

Ulaanbaatar/MONTSAME/ At the initiative of the Mongolia’s President, a national forum on reducing air pollution will take place in Ulaanbaatar on October 23.

The Government and non- governmental organizations, unions, activists and scientists as well as companies producing eco-products will participate in the event.

The event will concentrate on activating actions to respond air pollutions in urban places, increasing public involvement, determining long, medium and short-term policies and actions that have to be implemented by the Government and on drawing up a proposal of actions in ensuring citizens’ right to live safely.

Prior to the forum, three panel meetings take place in Ulaanbaatar, namely; ‘Air-pollution in ger districts and decisive actions’ on October 18, ‘Motor vehicle emissions and decisive actions’ on October 19, and ‘Decentralization and decisive actions’ on October 20.

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Step ahead in realisation Mongolian Northern Rail Corridor www.railfreight.com

The Australian company Aspire Mining and its Mongolia-registered Northern Railways (NR) subsidiary have signed an agreement with China Gezhouba Group International (CGGC) for carrying out the final stage of a feasibility study into the Erdenet – Ovoot line in northern Mongolia.

The Erdenet-Ovoot line is part of the Northern Rail Corridor, a project connecting the national rail network from Erdenet to Aspire’s Ovoot Coking Coal Project and onto the Mongolian-Russian border town of Arts Suuri. Through the connection with the existing national railway, it also provides a direct route to the Chinese market for Russian freight forwarders. Moreover, the Russian government plans to link the rail from Arts Suuri to the Trans-Siberian Railway at Kyzyl, creating a potentially vital international rail link.

Contract
The first stage of the feasibility study was completed in January this year. In conclusion, the costs of the project were estimated at 1 billion Euros, minus contingencies. The second and last stage of the study is expected to be completed by the end of March 2018. In addition to the line between Erdenet and Ovoot, the study also paves the way for the eventual extension of the line to Arts Suuri.

As part of the contract, NR has committed to considering CGGC for the design, procurement and construction phases and if it does not award these contracts, to compensate the Chinese company. CGGC will in turn assist NR in the search for investors for the Northern Rail Corridor and planning for the extension.

International Economic Corridor
Aspire has said the Northern Railway will open up significant new opportunities for various industries, small business, the community and local economy in northern Mongolia, while in the meantime integrating Russian rail planning, China’s Silk Road and Mongolia’s rail policy to create an international Economic Corridor, facilitating increased levels of trade between the three nations and the wider Asia-European economies. The 1,520 millimeter-gauge line will be open for bulk and intermodal freight trains, but could also be used for passenger services.

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Goldman Sachs prefers gold to bitcoin www.rt.com

Gold is better than cryptocurrencies due to its durability and intrinsic value, explains American banking giant Goldman Sachs.

“Precious metals remain a relevant asset class in modern portfolios, despite their lack of yield,” analysts at Goldman Sachs wrote, as quoted by Bloomberg.

“They are neither a historic accident or a relic,” and are still relevant despite new assets like cryptocurrencies, they said.

As uncertainty in markets grows, the price of gold rises, they explained. In the long term, gold will gain because of the continuing demand in emerging markets, particularly in China.

Goldman analysts used several criteria to compare gold and bitcoin, including durability, portability, intrinsic value and unit of account. In three categories gold is better, losing to bitcoin only in portability.

“While both require expertise for correct long-term storage, gold wins because cryptocurrencies are vulnerable to hacking through online wallets or the user’s computer or smartphone, are subject to regulatory risk, and network and infrastructure risk during a crisis,” they said.

“Transferring bullion can be expensive, given its weight, need for a high level of security and high import taxes in some countries, such as India. In contrast, it’s much faster and cheaper to move bitcoins,” Goldman analysts added.

Gold has a limited amount, while it is difficult to control supply in case of cryptocurrencies; gold is better at keeping its purchasing power, and has much lower daily volatility, they said.

This year, bitcoin has rallied about 600 percent, starting the year at less than $1,000 and jumping to near $6,000. Gold prices have risen 12 percent. Bitcoin’s total values is approaching $100 billion, more than the market cap of corporations like Bayer, Goldman Sachs and Nike.

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Political party financing in Mongolia: A road to grand corruption? www.politicsofhope.com

While true that Mongolia’s economy is heavily dependent on fluctuating coal and copper prices, it is also true that the country’s political parties increasingly influence economic outcomes.

According to The Asia Foundation’s annual survey on perceptions of corruption in Mongolia, in 2010, political parties ranked fifth on a list of the 16 most corrupt entities. By 2017, political parties had reached second place, just behind the Land Affairs Authority. The findings point to a worrying trend: as the amount of money needed to win an election increases, political parties are looking to “secret, private” donors, giving rise to questions of transparency and fairness in the electoral process. Economists argue that if this pattern continues, it will negatively affect Mongolia’s investment patterns and economic performance.

On September 21, Mr. Jargalsaikhan, a renowned TV host, economist, and good governance activist, popularly known as “Jargal Defacto,” explored The Asia Foundation’s latest corruption perception survey findings in the country’s first-ever public debate on corruption before a live television audience.

While true that Mongolia’s economy is heavily dependent on fluctuating coal and copper prices, it is also true that the country’s political parties increasingly influence economic outcomes.

According to The Asia Foundation’s annual survey on perceptions of corruption in Mongolia, in 2010, political parties ranked fifth on a list of the 16 most corrupt entities. By 2017, political parties had reached second place, just behind the Land Affairs Authority. The findings point to a worrying trend: as the amount of money needed to win an election increases, political parties are looking to “secret, private” donors, giving rise to questions of transparency and fairness in the electoral process. Economists argue that if this pattern continues, it will negatively affect Mongolia’s investment patterns and economic performance.

On September 21, Mr. Jargalsaikhan, a renowned TV host, economist, and good governance activist, popularly known as “Jargal Defacto,” explored The Asia Foundation’s latest corruption perception survey findings in the country’s first-ever public debate on corruption before a live television audience.

On the other side of this argument was Ms. Erdenedalai, who teaches at the University of Finance and Economics. She argued that financing political parties from the state budget is unfair, and that it is doubtful that doing so enhances oversight. She elaborated by saying that tighter oversight will make the true sources of financing even more hidden. Furthermore, she said that she believes the public lack the platform needed to demand transparency and hold political parties accountable for their actions. She noted that if only parties holding parliamentary seats are publicly financed, then smaller parties would be at a disadvantage and that democratic pluralism would suffer. Another risk, she argued, is that the larger political parties with seats in parliament would become disconnected from society because, at present, they need to listen to people and work with them to build trust when they later need to seek donations from them. Finally, she noted that political parties do receive small amounts of funding from the national budget but that this is not disclosed to the public. While the existing law on Political Parties requires that political parties report on their finances, but no parties publish these reports.

The debate stirred a great deal of interest on one of Mongolia’s most critical issues today, and raised a number of new questions, including how the country can follow international best practices in light of the economic slump. Mongolia’s current economic crisis and growing foreign debt will preclude it from providing full government financing to political parties at this juncture. But there may be ways to open up the system and provide some level of public financing while better regulating and limiting private donations. For example, the public budget could cover some of the costs associated with radio and television coverage of party candidates. Other measures could include allowing political parties to use billboards free of charge and offering reduced taxes to those who make donations. But most importantly, the public needs to truly know who they are voting for and how their campaign is being financed.

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About 1000 teachers in Mongolia intend to go on hunder strike over low salaries www.akipress.com

AKIPRESS.COM - 1000 teachers intend to go on hunger strike claiming the Government has not responded to their demand for a better pay, Mongolian media report Wednesday. 

Representatives of teachers from 21 aimags and 5 teachers from every secondary schools and kindergartens of the capital city intend to join hunger strike, Gogo Mongolia reported.

"A temporary committee to increase teachers' salary has demanded to raise monthly base salaries of teachers by the end of 2017. However, the Government has not responded clearly to this demand for the past two months," the news agency reported.

"If this issue arises in another country, it will be a national security issue. Therefore, we want the government to discuss this issue for 15 days. If the government does not accept our requirements, teachers will go on strike," says BoD member of the temporary committee to increase teachers' salary A.Sanjmyatav.

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UK banks exposed to money laundering in South Africa www.bbc.com

UK banks may have been used to launder money stolen from South Africa, a former cabinet minister has alleged in a letter to Chancellor Philip Hammond.

Lord Peter Hain said a South African whistle-blower had indicated the banks "maybe inadvertently have been conduits for the corrupt proceeds of money".
The Labour peer is due to raise the issue in the House of Lords later.
The Treasury said it had sent his letter to financial regulator the Financial Conduct Authority (FCA).
"We take allegations of financial misconduct very seriously, and have passed Lord Hain's letter on to the Financial Conduct Authority and relevant UK law enforcement agencies, including the National Crime Agency and Serious Fraud Office, to agree the right action," a spokesperson said.
'Corruption and cronyism'
A spokeswoman for the FCA said it was already in contact with the banks named by Lord Hain and would "consider carefully further responses received".
The money laundering accusation rests on alleged ties between the country's President Jacob Zuma and a wealthy business family, the Guptas.
Lord Hain, a leading anti-apartheid campaigner who grew up in South Africa, urged UK authorities "to track that stolen money down and make sure that British financial institutions help return it to South African taxpayers".
The former Northern Ireland secretary alleged the issue was "a result of the corruption and cronyism resided over by President Zuma and close allies the Guptas".
Brothers Ajay, Atul and Rajesh Gupta have interests in computer, mining, media, travel, energy and technology and employ about 10,000 people through their company Sahara Group.
The Guptas have been accused in the past of wielding influence in South African politics under President Jacob Zuma's administration.
Both President Zuma and the Guptas deny wrongdoing, and say they are victims of a "politically motivated witch-hunt".

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Parliament appoints five ministers www.montsame.mn

Ulaanbaatar /MONTSAME/ During its irregular plenary meeting on October 18, the Parliament discussed and approved the appointment of five Ministers of the Prime Minister U.Khurelsukh's Cabinet. 

In particular, U.Enkhtuvshin was appointed as Deputy Prime Minister and G.Zandanshatar as Head of the Cabinet Secretariat during the morning session of the meeting. 

As the meeting resumed in the afternoon, the Parliament appointed N.Tserenbat as Minister of Environment and Tourism, N.Enkhbold as Minister of Defense, and D.Tsogtbaatar as Minister of Foreign Affairs. 

The Parliament is discussing the appointment of Ch.Khurelbaatar as Minister of Finance, and is yet to adopt a decision. 

The Parliament meeting will continue tomorrow.

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Chile's Cochilco boosts copper forecast to near $3 per pound in 2018 www.mining.com

Chile state copper commission Cochilco forecasted on Wednesday an average global copper price of $2.95 per pound in 2018, a sharp upward revision from its mid-year estimate of $2.68, due to greater demand in China, a key market.

For 2017, it predicted an average copper price of $2.77 per pound, markedly higher than its previous estimate of $2.64.

Cochilco also forecasted Chile's copper output to fall 4 percent from 2016, to 5.27 million tonnes, due primarily to a 43-day strike at BHP Billiton Ltd's Escondida mine in Chile, the largest copper mine in the world, earlier this year.

In 2018, however, with Escondida operating at full capacity, the state commission predicted output will rise 7.8 percent, to 5.74 million tonnes.

Cochilco Vice President Sergio Hernandez attributed higher near-term copper prices to a surge in Chinese demand, a result of higher-than-predicted growth of 6.9 percent in the first quarter of 2017, but warned there were signs that growth was unsustainable.

"There is a high degree of consensus that this trajectory of growth is unsustainable in the medium term … which could lead to adjustments in the future," Hernandez said at a news conference.

China is by far the most important market for Chilean copper. Fluctuations in demand there, particularly in copper-intensive areas such as real estate, have a strong impact on the Chilean economy, where copper-related activity can account for up to 15 percent of gross domestic product.

For every one cent increase in the average annual price of copper, Chilean exports grow nearly $125 million and tax revenues increase by $60 million, according to official estimates.

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