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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Mongolian Vice Minister visits the FCO www.embassyofmongolia.co.uk

Mr. Tsogtgerel Batchuluun, Vice Minister for road and transportation development meets with Mark Garnier, Parliamentary Under Secretary of State at the Department for international Trade at the FCO. Two ministers have exchanged their assessments on bilateral cooperation and reiterated readiness of future collaboration in the field of infrastructure development in Mongolia. Secretary Garnier came to Mongolia last spring with working visit and set up a good basis for the cooperation between two ministries.

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Mongolia to see recovery on investment, higher coal prices - minister www.energy.economictimes.indiatimes.com

Ulaanbaatar: Mongolia's new finance minister said he expects the pace of economic growth to rise, aided by more foreign investment and a recovery in commodity prices after their calamitous slump in 2016.

Last year, when Mongolia turned to the International Monetary Fund (IMF) for aid as it struggled to pay its debts, growth was just 1 percent.

Finance Minister Chimed Khurelbaatar, who was appointed last month, told Reuters in an interview this week that in the third quarter of 2017, Mongolia's growth was 5.6 percent from a year earlier.

He did not give a full-year projection for this year, but said growth in 2018 should be 4.2 percent, shored up by the $5.5 billion IMF-led rescue package agreed in May.

On Thursday, rating agency Moody's Investors Service said growth should reach 4.2 percent this year.

Mongolia's troubled economy has been lifted by improving coal trade activity, sourced mostly from the Gobi desert in southern Mongolia, less than 250 kilometres from the Mongolia-China border.

Global coal prices have been significantly stronger this year, but Mongolia's ability to profit from this has been hampered by a crackdown on smuggling on both sides of the China-Mongolia border. This has created a huge bottleneck at the border.

"We have higher coal prices, but Mongolia cannot benefit from this," Khurelbaatar said.

He said Mongolia would "work very closely" with Beijing to ease the bottleneck.

Mongolia is in the process of refinancing debts with new bonds now that it is able to set lower rates of interest, said Khurelbaatar. The country is reforming its tax system in a bid to boost revenues, and will launch a 10-25 percent progressive income tax in January.

However, Khurelbaatar said there are no plans to raise the rate of tax on the mining sector, which accounted for 20 per cent of GDP last year, though there are plans to alter the bidding process for mining rights to improve transparency.

Moody's on Thursday maintained its sovereign credit rating for Mongolia at "Caa1 stable".

"Given the improved macroeconomic backdrop and commodity prices, the near-term fiscal and growth targets originally set under the country's IMF's programme have been surpassed," it said.

However, it said Mongolia's "narrowly diversified economy" remained "exposed to commodity price shocks that have resulted in volatile growth and government revenues."

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Chile's Codelco plans environmental impact pricing for copper www.mining.com

SHANGHAI, Nov 30 (Reuters) – Chile's Codelco will soon sell its first copper cathodes with pricing that takes into account the environmental footprint of production, its chairman said on Thursday.

The plan would mark a stark change from the traditional pricing model for copper producers where the quality of metal is the price differentiator for what is otherwise a standardized product.

Under the scheme, customers would pay different prices for copper depending on the carbon footprint or impact on a local community of its production. The move echoes steps taken by the palm oil industry to establish a sustainable supply chain to address a tarnished environmental reputation.

State-run Codelco is currently negotiating with a team of customers – a trader, a wire producer and a final copper product producer – to establish a traceable system of certified copper, Oscar Landerretche told the Asia Copper Conference in Shanghai.

The initiative, known in English as Responsible, Sustainable and Traceable Copper, could be dubbed "feng shui copper" in Chinese, Landerretche said, explaining that it was needed because of the "over commercial" nature of today's economy.

"Very soon we will carry out the first decommoditized copper sale in which the customer will recognize, with external certification, the environmental attributes of the production as a principle part of the value offer," he said.

"This is imminent. Actually, it is going to happen during the next couple of months."

Under the new terms, Codelco's copper cathodes will be certified in eight ways: carbon footprint, water footprint, territorial impact, community impact, human rights, equal opportunity and inclusion, occupational safety and health, and transparency, ethics and traceability of funds.

"We dream of a decommoditized copper market that has differentiated prices for products with different certifications. We will do our part, but so must customers, consumers and partner companies," Landerretche said.

While Codelco's plan would mark a first for the copper industry, producers of aluminium started charging premiums for low carbon products and metal made from renewable energy earlier this year.

Industry sources said there was growing interest among copper consumers in lowering their overall carbon footprint.

"There is definitely a push from the smelting side in general to lessen the impact on the environment, especially in China. From that side of things you can't ignore the potential (for differentiated pricing)," said commodities analyst Dan Hynes of ANZ in Sydney.

Landerretche said the pilot program involved one or two company divisions, but he hoped it would become standard for the market.

He also called for Chile to come up with a new governance model for lithium production that defines the relationship between miners and local communities, amid a boom in Chinese demand for use in rechargeable batteries.

Codelco officials are meeting with research institutes while in China to learn more about the process of lithium extraction, Codelco CEO Nelson Pizarro told Reuters on Wednesday.

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The “Green arrow” capital markets reality show will be broadcasted soon www.mse.mn

For the purposes of increasing the public’s capital markets knowledge and demonstrate to the public how to participate in stocks and bond trading, "Mongolian Stock Exchange" JSC is organizing "Green arrow" reality show in cooperation with the "Mongolian National Radio and Television" LLC. The reality show will be broadcasted nationwide from December 11, 2017.

The participants to the reality show are 5 representatives from the public who have never had any exposure to the capital markets before, and they will participate by purchasing securities at the “Mongolian Stock Exchange” based on the advice of professional investment advisors. The show is composed of 7 episodes, each of which lasts 40 minutes and the winner will be the participant who has increased the value of his/her portfolio the most during the show time.

The value of the securities fluctuates in line with the overall market situation as well as the individual operations of joint stock companies and therefore, the investment portfolio of the participants are equally likely to increase or decrease. The purpose of this reality show is to illustrate this reality of the stock market, highlighting not only the upside potential of the market but also its inherent risks. 

“Green Arrow” reality show will be broadcasted on MNB channel every Monday from December 11th, 2017.

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November 30, 2017 trading report www.mse.mn

On November 30, 2017, 411,324 shares of 27 firms listed as Tier I, II, and III were traded. 11 firms’ shares increased in price, 13 decreased and 3 remained unchanged. Erdenet Auto Zam JSC /EAZ/ was the top performer, increasing 15.00 percent, whereas Mongol Shevro JSC /MVO/ was the worst performer, decreasing 14.40 percent.

On the secondary market for government bonds, 659 bonds with a value of MNT64.8 million were traded.

On the secondary market for government bonds block trading, 1,000 bonds with a value of MNT105.5 million were traded.

On the secondary market for corporate bonds, 951 bonds with a value of MNT95.1 million were traded.

The MSE ALL Index decreased by 1.37 percent to stand at 1,244.57 points. The MSE market cap stands at MNT2,381,559,057,577,022

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Oil edges up in timid trading ahead of OPEC meeting in Vienna www.reuters.com

SINGAPORE (Reuters) - Oil prices edged up amid low trading volume on Thursday, ahead of an OPEC meeting in Vienna at which producers are expected to extend a supply-cut deal that came into effect in January with the goal of tightening supplies and propping up prices.

The Organization of the Petroleum Exporting Countries (OPEC) will be meeting at its headquarters in the Austrian capital, along with ministers from other oil producing countries, most importantly Russia.

OPEC is scheduled to hold an open session, including media, at 10 a.m. (0900 GMT) in Vienna on Thursday, before going into a closed session at noon, according to a tentative program on OPEC’s website. Non-OPEC ministers are set to join at 3 p.m., followed by a joint press conference after the meeting.

Traders said trading volumes were low ahead of the meeting.

Brent crude oil futures for February, the international benchmark for oil prices, were at $62.84 a barrel at 0704 GMT, up 31 cents, or 0.5 percent, from their last close. The front-month January contract expires today.

U.S. West Texas Intermediate (WTI) crude futures were at $57.50 a barrel, up 20 cents, or 0.4 percent.

While there has not been an official statement, OPEC and Russia seem ready to prolong their oil supply cuts until the end of 2018. The cuts were put in place last January and are set to expire next March.

“If OPEC extends without any caveats, then price may slowly edge higher,” said Oystein Berentsen, managing director for crude trading at Strong Petroleum in Singapore.

However, an extension may include a review in June should healthy demand amid ongoing supply restraint overheat the market.

“The current consensus is that members will agree on an extension to the production cuts but the duration of the extension is uncertain,” said William O‘Loughlin, investment analyst at Rivkin Securities.

ANZ bank said “anything less than a nine-month extension to the current production agreement could see the recent sell-off accelerate.”

SOARING U.S. PRODUCTION

One of OPEC’s biggest concerns is rising output in the United States, largely due to shale drillers who are fast gaining global market share and are undermining the producer club’s efforts to tighten the market.

U.S. oil production hit a new record of 9.68 million barrels per day (bpd) last week, according to government data released on Wednesday. [EIA/S]

Rystad Energy, a consultancy, said it expects U.S. oil production to reach 9.9 million bpd in December.

That would bring U.S. output close to levels of top producers Russia and Saudi Arabia.

Despite this, U.S. crude inventories are down by 15 percent from their March record, to 453.7 million barrels.

That is below levels at this time in 2015 and 2016, although above five-year averages.

U.S. crude stockpiles fell by 3.4 million last week, the Energy Information Administration said on Wednesday. Gasoline and distillate stockpiles both rose more than anticipated.

Traders said the fall in inventories was largely down to a two-week interruption of the Keystone pipeline bringing Canadian crude to the United States, which has now been resolved, and as American companies increasingly export excess crude.

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Mongolia and Slovakia business forum held www.montsame.mn

Ulaanbaatar /MONTSAME/ Mongolia and the Slovak Republic business forum was co-organized by Ministry of Foreign Affairs and Mongolian National Chamber of Commerce and Industry (MNCCI), on November 29. 

During the forum presentations on current state of bilateral economic relations, trade and investment and further opportunities of cooperation and increasing trade and investement were made by National Development Agency of Mongolia, MNCCI and Slovak Investment and Trade Development Agency (SARIO). 

In scope of the business forum tete-a-tete meetings were held between businessmen of the two countries and over 40 representatives participated from Mongolian entities including ‘Centerra Gold Mongolia’, ‘Unitel’, ‘Beren’ ‘Hasu Megawatt’, ‘Mongol Em Impex’, ‘Bank of Mongolia’ and ‘Khaan bank’. 

From Slovakian side 27 entities attended from engineering industry, food, agriculture, information technology, telegraph, bank and financial sectors such as “Novas Machinery”, “DB Biotech”, “Solar Slovakia”, “Scout Aviation”, “International Investment Bank”. They expressed interest to cooperate with Mongolian companies.

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Gold production will grow in coming years: BMI www.mining.com

A report by BMI Research states that global gold mine output growth will pick up in the next few years, supported by higher gold prices and solid projects in key countries.

“We forecast global gold production to increase from 105moz in 2018 to 125moz by 2026, averaging 2.3% annual growth. While a steady pace of growth, this represents a slight deceleration in growth rate compared with the previous eight-year average of 3.1%,” the firm says.

For short-term prices, BMI predicts that they will continue to head higher, averaging $1,300/oz in 2018.

As with many metals, Chinese deals lead gold’s performance when it comes to production and price. According to the business intelligence company, major firms hailing from the Asian giant will ramp up investment in foreign gold mines, as the country’s gold demand growth far outpaces that of production which, BMI says, will stagnate over the coming years at around 16.5moz.

“In 2016, the Asia Pacific region accounted for 44.7% of global gold mining merger and acquisition activity,” BMI estimates, while highlighting that some of the major transactions were carried out by Chinese conglomerate Fosun International, who invested $890 million for an initial 10% stake in Russian gold producer Polyus Gold, as well as Shandong Gold, who purchased a 50% stake in the Veladero mine in Argentina from Barrick Gold for $960 million while committing to advance exploration activities in the area.

Back in 2016, state-owned China National Gold Group paid $300 million for the purchase of the Jinfeng gold mine from Eldorado Gold, while Indonesian firm PT Amman Mineral International paid $1.3 billion purchase of Newmont Mining's Indonesian assets, including the country's second largest copper-gold mine, Batu Hijau.

Australia is another big player in this game. Gold production Down Under is expected to grow, as higher gold prices increase miners’ profit margins and a weaker Australian dollar fosters mine expansions and increased exploration activities by both top and junior miners.

The research firm hints to the performance of Newmont Mining Corp (NYSE:NEM), as the key driver of Australia’s positive outlook. The world’s 2nd largest gold miner expects 2017 production at Australian operations to be 1.5-1.7moz, with total spending between $205-240 million.

“We forecast Australia’s gold output to increase from 10.5moz in 2018 to 13.2moz by 2026, averaging 3.1% annual growth and remaining the second largest global gold producer by a significant margin,” BMI states.

The firm sees modest production growth for Russia’s gold industry, while the U.S. gold sector will see steady production growth supported by rising prices and the fact that federal deregulation under the Trump administration will prompt project development and relax environmental requirements.

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Cabinet takes action to reduce jam in Gashuunsukhait www.montsame.mn

Ulaanbaatar /MONTSAME/ During its regular meeting on November 29, the Cabinet decided to take some regulatory measures to solve the border jam issue in coal transportation.

Until the passing capacity at the Gashuunsukhait (Mongolia) - Gants Mod (China) border crossing increases, coal will be temporarily transported from Tavan Tolgoi mine to Tsagaan Khad customs inspection area in Khanbogd soum, Umnugobi and from the Tsagaan Khad area to Gashuunsukhait border crossing.

Governor of Umnugobi aimag was assigned to take actions to reduce the environmental impact of the coal transportation between Tsagaan Khad and Gashuunsukhait using local dirt road and coal loading and unloading at the customs inspection area.

Fund for intensification of the operations of the Tsagaan Khad customs inspection area and purchase of modern technology and inspection equipment at the Gashuunsukhait border crossing will be allocated from the Government reserve fund and generated from additional sources.

The Cabinet instructed corresponding agencies and provincial Governors to inspect and monitor the activities of businesses and entities engaging in coal transport and at the customs inspection area, and their compliance with environmental laws and regulations.

The number of coal trucks passing the border on daily basis was 1,200-1,500 until July, 2017, since when it was reduced to 500-600. Caused by this, the 239 km road connecting Tavan Tolgoi mine with Gashuunsukhait border crossing has been overloaded, creating a 140-km-long queue of coal trucks.

The Cabinet’s decision comes after a working visit to Gashuunsukhait border crossing by Minister of Mining and Heavy Industry and Minister of Road and Transport Development, who then drafted a proposal of the temporary solution.

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OSCE trains Mongolian border officers on detecting forged travel documents www.osce.org

A one-week advanced train-the-trainer course on profiling, interviewing techniques and skills to detect forged documents for 15 Mongolian law enforcement officers, organized by the Border Security and Management Unit of the OSCE’s Transnational Threats Department (TNTD/BSMU), took place from 20 to 24 November 2017 in Ulaanbaatar.

The growing volume of new passports and the increasing diversity of travel document security features have made the identification of forgeries during passport checks at border controls more difficult. Consequently, ensuring that border officers are up to date on the latest trends in document fraud is essential to counter the illegal movement of terrorists, criminals and traffickers of all kind.

Participants in the course shared and discussed their experiences on the latest forgery methods and ways to detect forged and false documents. They are now expected to act as national trainers and further disseminate among their peers the skills and knowledge they received during the course.

This course was the second in a series of courses on forged documents that will take place every autumn in Mongolia between 2016 and 2020. It had a strong interactive component, as it included practical work on original, forged and false documents, as well as the use of forensic equipment to identify document forgery.

In order to improve the technical capacity of the Mongolian law enforcement personnel, 15 high-quality hand-held magnifiers and 5 USB microscopes that were used during the course were handed over after the training.

The OSCE has organized similar courses on multiple occasions in more than 25 countries throughout the OSCE region since 2007, in co-operation with document experts from the Austrian Ministry of Interior. The Austrian training material is accepted by the European Agency for the Management of Operational Co-operation at the External Borders (FRONTEX) as a best practice.

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