|Frontier's "Invest Mongolia Tokyo 2018"||Frontier Securities||Tokyo Japan|
|"Open to Export" ICC WTO International business award||ICC WTO||London|
On October 31, 2017, 144,688 shares of 26 firms listed as Tier I, II, and III were traded. 14 firms’ shares increased in price, 9 decreased and 3 remained unchanged. Mongol Post JSC /MNP/ was the top performer, increasing 4.73 percent, whereas Moninjbar JSC /MIB/ was the worst performer, decreasing 13.10 percent.
On the secondary market for government bonds, 1,700 bonds with a value of MNT170.0 million were traded.
On the secondary market for corporate bonds, 2,025 bonds with a value of MNT202.5 million were traded.
The MSE ALL Index decreased by 0.51 percent to stand at 1,133.69 points. The MSE market cap stands at MNT 2,181,283,620,998
Ulaanbaatar /MONTSAME/ The 'Mongolia: Enhancing Resource Management through Institutional Transformation (MERIT)' project, funded by Global Affairs Canada, will hand over GPS and drone equipment to the Ministry of Environment and Tourism on November 2, 2017.
This equipment will be used for obtaining high-definition aerial pictures and gathering visual documentation of field conditions at mine sites during regular inspection visits based on Environmental Management Plans developed by mining companies.
As main users of this equipment, officers of the cadastral unit for forests, water and protected areas of the Ministry of Environment and Tourism and members of a working group including the Mineral Resource and Petroleum Authority of Mongolia (MRPAM) officers have received both on-the-job and field training and are now fully equipped to apply their learning in practice. The working group members will carry out joint inspection visits all year round starting in spring when mining operations commence in the field and document performance of the environmental management plans such as land rehabilitation and afforestation activities, etc.
By having this high cost, yet high technology equipment and a well-qualified workforce Mongolia is advancing to the new level of environmental management.
Partnership and Cooperation Agreement between the European Union and Mongolia enters into force www.eeas.europa.eu
On 1 November, the Partnership and Cooperation Agreement (PCA) between the European Union and its Member States and Mongolia will enter into force.
The Agreement, which was signed on 30 April 2013, replaces the 1993 Agreement on trade and economic cooperation between the European Economic Community and Mongolia.
The High Representative of the European Union for Foreign Affairs and Security Policy/Vice-President of the European Commission, Federica Mogherini said: "The European Union and Mongolia are consolidating their strong ties, based on shared values and interests, and a common will to work more closely together. The entry into force of our Partnership and Cooperation Agreement, combined with the establishment of a European Union Delegation in Ulaanbaatar, which will take place in the coming days, consolidates existing areas of cooperation and engagement, and deepens and diversifies relations further in areas of mutual interest, for the sake of our peoples."
The Partnership and Cooperation Agreement strengthens the existing relationship between the European Union and Mongolia and builds on a shared commitment towards good governance, human rights and sustainable development. Moreover, the Agreement will broaden cooperation in a wide range of areas, such as sustainable development, raw materials, climate change, justice and security, human rights, science and technology, good governance, as well as facilitate trade and investment. The Partnership and Cooperation Agreement brings on board the European Union and all of its Member States, therefore providing opportunities to create synergies between EU activities and individual Member States' policies.
The entry into force of the Partnership and Cooperation Agreement coincides with the opening of an EU Delegation in Mongolia, for which implementing the Agreement will be a top priority.
ULAN BATOR, Oct. 31 (Xinhua) -- The Mongolian economy is rapidly recovering, said an International Monetary Fund team after evaluating an economic bail-out program here.
The IMF predicts Mongolian GDP growth to reach 3.3 percent this year and 4.2 percent next year. The country's Extended Fund Facility (EFF) program has achieved its goal, said the IMF.
In the near future, the IMF will focus on supporting the banking sector and improving the implementation of Mongolia's monetary policies.
Geoff Gottlieb, leader of the IMF staff team in Mongolia, said the Mongolian economy is recovering faster than they expected, which was largely due to the growth of coal exports as well as the restoration of services. But next year the coal industry will be at risk.
The quantitative indicators that determine current monetary policies were positive as a result of strict control over the expenditures of the state budget, which has been increased.
Last year, Mongolia's budget deficit reached 17 percent, while it decreased by 7.5 percent in 2017. Net international reserves improved, and the authorities turned over sovereign bonds with maturity in 2017 and 2018 at attractive interest rates, eliminating the key risk to the external position.
Long-term structural reforms will continue to contribute to economic growth.
The authorities have moved ahead with their ambitious structural reform agenda, which will help to sustain growth over the medium term, promote diversification and competitiveness and mitigate the boom-bust cycle.
Currently, the banking system is being restored and strengthened: the results of a comprehensive asset quality review are expected in mid-December; important legal reforms are being developed to strengthen the financial system; and improvements of the regulatory and supervisory framework are under way.
The Mongolian authorities and the IMF team have reached staff-level agreements on the completion of the first and second reviews under the EFF arrangement, which is subject to the approval of the IMF Executive Board.
As part of the full implementation of this program, Mongolia will receive 440 million U.S. dollars from the IMF and 5.5 billion U.S. dollars from donor countries, including Japan and the Republic of Korea.
The IMF staff team, led by Gottlieb, were in Mongolia from Oct. 18 to 30 to sum up the results of the first phase of its EFF program and decide whether to continue it.
Glencore Plc and Trafigura Group Pte are often at loggerheads, but one thing they agree on: the nickel market will be transformed by the rise of electric cars.
Nickel sulphate, a key ingredient in lithium-ion batteries, will see demand increase 50 percent to 3 million metric tons by 2030, Saad Rahim, chief economist at Trafigura, said in an interview. While other battery metals like cobalt and lithium have more than doubled since the start of last year, nickel prices have been subdued because of large inventories.
"When you look structurally, we should start to get bullish now,” Rahim said. “Are you going to be able to meet that demand when the time comes, given underinvestment in the supply side?”
His view echoes the outlook from Glencore, which told analysts recently that nickel production would need to increase 1.2 million tons by 2030, equal to more than half of current global output, to keep up with demand from the battery industry. Prices are currently more than double what it costs Glencore to mine the metal.
It’s a surprising mood change for a market with a disastrous reputation. Nickel was long a thorn for Glencore, which was saddled with unprofitable operations following its takeover of Xstrata. It sold an Australian nickel mine, which Xstrata bought in 2007 for $2.4 billion, for just $19 million in 2015.
“The nickel industry’s been a bit of a dog since about 2007,” Oliver Ramsbottom, a partner at McKinsey & Co. in Tokyo, said by phone.
The battery industry could revive the fortunes of miners more than a decade after nickel collapsed from a peak of $51,600 a ton in 2007, when Indonesia and the Philippines started to flood the market with low-grade supply. Nickel currently trades at $11,870, up 18 percent for the year.
Future batteries will likely use more nickel and less cobalt, Rahim said. Cobalt prices have surged and the biggest source of supply is the Democratic Republic of Congo.
Still, some analysts are skeptical that the bullish scenarios will play out. Electric cars are still a niche industry and nickel oversupply remains a threat, with current stockpiles four times bigger than since the start of 2012.
Indonesia has authorized its largest producer to export more nickel ore. The Philippines has also discussed ending a ban on open-pit mining, raising concerns that supply will spike.
“For years, the market has completely dismissed the idea that something positive could happen in nickel,” Ingrid Sternby, senior research analyst at Blenheim Capital Management LLP, said in an interview in London. “With the recent announcements about Indonesia and the Philippines, it’s easy to see why the market is still scary enough for people not to want to be involved.”
About half of global nickel production is in the form of ferronickel or nickel pig iron, which is nickel alloyed with iron, making it suitable for stainless steel. Battery makers, instead, use nickel sulphate, produced by dissolving pure nickel metal in sulphuric acid.
One hope is that the pricing of nickel pig iron and the high-grade nickel sulphate will diverge in the coming years, improving the fortunes of miners that can produce battery-quality material.
The global nickel market is heading for a deficit once above-ground stockpiles of battery-grade metal are consumed, according to Wood Mackenzie. The question for miners is how quickly the premium for top-quality nickel will emerge.
“You can see the tightness ahead in the nickel market, but my concern is that we’re going to see a lot of value destroyed along the way,” said Colin Hamilton, managing director for commodities research at BMO Capital Markets Ltd. “If the miners really believe in the EV growth story, the thing to do would be to keep the nickel in the ground until the deficit arrives.”
Still, politicians and automakers are increasingly counting on a future of electric cars, attracting traders such as Trafigura.
“Will we see a real breakout in next 12 months? That’s hard to see, but beyond that, structurally this looks to be going up,” Rahim said....
CALGARY, Alberta (Reuters) - Canadian oil and gas drilling activity will climb 5 percent in 2018 as a gradual uptick in crude prices gives rise to cautious optimism among producers, an industry body forecast on Tuesday.
The Petroleum Services Association of Canada (PSAC) expects energy firms to drill 7,900 wells next year, up from 7,550 in 2017. The biggest increase in activity will be in Canada’s main crude oil and gas-producing province of Alberta.
Based on PSAC’s forecast, next year will be the busiest for drilling since 2014, when oil prices crashed because of global oversupply.
The 2018 estimate is still 30 percent below 2014 well totals, highlighting the slow speed of recovery. U.S. crude prices are hovering just under $55 a barrel CLc1, well below early 2014 prices of above $100.
“For 2018, confidence that oil will stay in the low-to-mid $50 range as markets tighten and inventories reduce, along with growing interest in Canada’s vast liquids rich natural gas, should support a 4 to 5 percent increase in activity levels,” PSAC president Mark Salkeld said in a statement.
He also called for more export pipelines to ship Canadian oil and gas to market, warning that TransCanada Corp’s (TRP.TO) recent decision to cancel its Energy East project was a blow to investor confidence.
Russia's state atomic energy corporation Rosatom announced on Tuesday construction of the Bushehr 2 nuclear power plant (NPP) in Iran has started. The project was agreed between Moscow and Tehran three years ago.
"I am sure this major Russia-Iran investment project will strengthen cooperation and ties between our countries,” said Rosatom’s Director General Aleksey Likhachev at the ground breaking ceremony.
The Bushehr 2 NPP will have two VVER-1000 power units built with Generation III+ technology, including the latest safety features. They will have a combined capacity of 2100 MW.
The project’s cost is estimated at $10 billion and will take up to ten years to complete. The deal, which was signed by Russia and Iran in November 2014, also included the option of building six more reactors in the future.
Likhachev and the head of Iran’s Atomic Energy Organization Ali Akbar Salehi visited the site of the Russian-built Bushehr 1 NPP which was connected to the national grid in 2011. It was started in 1975 but was halted four years later after the Islamic Revolution because German manufacturers withdrew. Russia’s nuclear construction company Atomstroyexport took over the project in the 1990s.
The mainland's largest oil and gas producer China National Petroleum Corp, or PetroChina, reported a 290 percent rise in third-quarter net profit as the company reaped the rewards of a strong rebound in crude prices and deleveraging.
With the other two mainland oil majors－CNOOC and Sinopec－also reporting higher third-quarter numbers, industry analysts expected the strong rebound to continue in the fourth quarter of the year also.
PetroChina's net profit rose 290 percent from a year ago to 4.69 billion yuan ($707 million) as the company cut debt and interest expenses.
Revenue for the period rose 17 percent from a year ago to 481.8 billion yuan, the Beijing-headquartered company said in a filing to the Hong Kong stock exchange.
With the winter heating season approaching in the northern parts of China, analysts believe PetroChina's earnings could continue rising in the fourth quarter with wholesale natural gas demand set to go up from mid-November.
Li Li, research director for the energy sector at ICIS China, a consultancy focused on the energy industry, said Chinese oil giants have benefited massively from the rebound in international oil prices during the first nine months of this year.
The profit rebound, based on last year's low base, which was also the company's worst first-half profit since its listing in 2000, will continue and the oil and gas industry will also gradually improve with better risk resistance capacity, she said.
"PetroChina's revenue and profitability are expected to continue improving in the fourth quarter, thanks to higher crude prices and generally better cost controls in the oil and gas sector," said Li.
Crude production fell to 660 million barrels in the January to September period this year, down 5 percent year-on-year.
China Petroleum & Chemical Corp, the world's biggest refiner, also known as Sinopec, also disclosed its third-quarter report late Monday, saying its profit advanced by 13 percent as earnings from refining operations offset upstream and impairment losses during the period, while its net income increased to 11.5 billion yuan.
Third-quarter revenue of CNOOC Ltd, the listed arm of China National Offshore Oil Co, also rose because of higher oil and natural gas prices, with revenue from oil and gas sales in the third quarter rising 16.9 percent to about 35.94 billion yuan, the company said.
PetroChina and Sinopec also vowed to complete important internal corporate reforms by November, as part of the plan to help clear the institutional barriers for further reform of State-owned enterprises and improve operational efficiency.
According to the State Council, all central SOEs, except financial and cultural ones, will be registered as limited liability companies or joint-equity corporations in accordance with the Company Law by the end of 2017. It is also an attempt to accelerate the establishment of an effective and balanced corporate governance structure, based on the legal person status, as well as a flexible and efficient marketized management mechanism....
Economic cooperation between Russia and China has been actively developing according to Russian Deputy Prime Minister Sergei Prikhodko. He says the sides are working to prolong the bilateral currency swap agreement.
"At present, financial regulators of the two countries are working on extending the bilateral currency swap agreement for the next three years,” he said as Russian Prime Minister Dmitry Medvedev heads off on an official visit to China.
Prikhodko added that settlements in national currencies are gradually increasing. “In 2016, the share of national currencies in payments for exports of Russian goods and services amounted to 13 percent, imports, 16 percent. In the first quarter of 2017, these figures rose to 16 percent and 18 percent, respectively," he said.
China has developed a system of cross-border payments in yuan, the China International Payments System (CIPS), to expand the use of its national currency in international payments, according to Prikhodko. He said some Russian banks have already joined CIPS.
The Russian National Card Payment System (NSPK) and China's UnionPay have agreed to process domestic Russian transactions using UnionPay cards in NSPK. This year the two countries plan a pilot project of UnionPay and Rosselkhozbank for issuing co-badging cards with Russia's Mir payment system.
In 2014, Russian and Chinese central banks signed a three-year ruble-yuan currency swap deal worth up to $25 billion, with the aim of boosting trade using national currencies and lessen dependence on the dollar and euro. Russia’s largest lender, Sberbank became the first bank in the country to start issuing credit guarantees denominated in Chinese yuan.
Trade between Moscow and Beijing grew 2.2 percent last year to $69.52 billion. The countries have set a goal to boost trade to $80 billion by 2018 and $200 billion by 2020.
Since 2013, GGGI has been supporting the Government of Mongolia in the implementation of the National Green Development Policy and NDCs to the Paris Agreement. These include specific targets on improving the energy efficiency of heat and power generation, transmission and of the built environment which are reflected in Mongolia’s Energy Conservation Law. In March 2017, GGGI and the Energy Regulatory Commission of Mongolia (ERC) signed a Memorandum of Understanding which identifies four major areas of support to be brought by GGGI:
· Formulation of the National Energy Efficiency Action Programme 2018-2022 (NEEAP);
· Development of incentives for renewable energy, energy conservation, and energy efficiency;
· Preparation of bankable green energy projects, beginning with industrial energy efficiency; and
· Sharing and dissemination of institutional knowledge and experience.
On October 25 2017, GGGI and the ERC presented the final outcomes of the energy audits of a selected sample of 15 “Designated Entities”, Mongolian private and publicly owned organizations from various sectors, whom have in common a consumption of heat and, or electricity exceeding the threshold set by the government for conservation potential. PricewaterhouseCoopers (PwC), was missioned by GGGI and the ERC to carry out the following technical advisory services:
· Estimate the market per sector;
· Perform a gap analysis of Mongolia’s policy, regulatory, and financial framework;
· Develop a pipeline of pilot energy efficiency projects (15 projects in different sub-sectors); and
· Capacity development activities of local energy auditors.
The consolidated results of the assignment show that the recommended energy conservation measures will require a total of $58 million of capital investment with an expected project payback period up to 3 years. The energy efficiency improvements alone can help achieve an estimated reduction of 620 thousand tons of CO2 emissions.
Since Mongolia became a GGGI member country, GGGI provided technical assistance to the Government of Mongolia in the areas of energy systems analysis, public green building, green cities and national green development planning. Building upon this work, GGGI and the Government of Mongolia initiated the Transition to Green Development Project (Phase 1: 2015-2016, Phase 2: 2017-2018), supporting the implementation of the country’s green development priorities and contribution to climate action – particularly in the fields of renewable energy, energy efficiency, public building design, and climate finance.
Dr. Tleykhan, Director General of the ERC, highlighted that “The results of this project demonstrate that improved energy efficiency has huge potential of benefits not only in terms of economy, but also socially and environmentally. It will serve as a platform to delivering bankable projects in the energy sector – a next step we are looking forward to”. The development of a pipeline of bankable projects complements GGGI’s ongoing work on the establishment, capitalization, and operationalization of the Mongolian Green Credit Fund (MGCF) – a national financing vehicle dedicated to the channeling of climate/development finance to green projects. Key projects in the MGCF’s project pipeline, being developed by GGGI, include the implementation of energy efficiency improvements measures for these 15 “Designated Entities”....