1 ERDENES TAVAN TOLGOI REVENUE SURGES DUE TO HIGHER COAL PRICES WWW.NEWS.MN PUBLISHED:2018/09/20      2 RUSSIA AND MONGOLIAN BORDER CROSSING NO. 487 WWW.NEWS.MN PUBLISHED:2018/09/20      3 WORLD ECONOMICS REPORTS THAT MONGOLIA’S EMPLOYMENT RATE HITS A FIVE-YEAR HIGH WWW.GOGO.MN PUBLISHED:2018/09/20      4 USD HITS RECORD HIGH IN MONGOLIA DUE TO HIGHER IMPORTS WWW.CHINA.ORG.CN PUBLISHED:2018/09/20      5 READOUT OF VICE PRESIDENT MIKE PENCE’S MEETING WITH PRIME MINISTER UKHNAA KHURELSUKH OF MONGOLIA WWW.WHITEHOUSE.GOV PUBLISHED:2018/09/20      6 MONGOLIA LAUNCHES EU-FUNDED PROJECTS TO PROMOTE GREEN DEVELOPMENT, ENVIRONMENTAL PROTECTION WWW.XINHUANET.COM PUBLISHED:2018/09/20      7 COAL EXPORTS FROM TOP SHIPPER HOBBLED WITH MINERS FACING CONSTRAINTS WWW.MINING.COM PUBLISHED:2018/09/20      8 FRONTIER'S "INVEST MONGOLIA TOKYO 2018" WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/09/19      9 U.S.-CHINA TRADE TUSSLE IS CREATING WINNERS IN SOUTHEAST ASIA WWW.BLOOMBERG.COM PUBLISHED:2018/09/19      10 YUSAKU MAEZAWA: THE JAPANESE BILLIONAIRE WHO WANTS TO FLY TO THE MOON WWW.BBC.COM PUBLISHED:2018/09/19      ШЕНГЕНИЙ БОГИНО ХУГАЦААНЫ ВИЗИЙН МЭДҮҮЛГИЙГ УЛААНБААТАР ХОТОД АВНА WWW.MEDEE.MN НИЙТЭЛСЭН:2018/09/19     2018 ЭХНИЙ 7 САРД МОНГОЛЧУУД ГАДААД РУУ ЭМЧИЛГЭЭНД ЯВАХДАА 19.5 САЯ АМ.ДОЛЛАР ЗАРЦУУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ӨНӨӨДӨР ТӨВ ТАЛБАЙД 4000 АЖЛЫН БАЙРАНД БҮРТГЭНЭ WWW.DNN.MN НИЙТЭЛСЭН:2018/09/19     ЗАЛУУЧУУДЫН ГАРААНЫ БИЗНЕСИЙН ШАЛГАРСАН ТӨСӨЛД 10,0 САЯ ТӨГРӨГИЙН ДЭМЖЛЭГ ҮЗҮҮЛЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/19     WORLD ECONOMICS: МОНГОЛЫН АЖИЛ ЭРХЛЭЛТИЙН ТҮВШИН СҮҮЛИЙН 5 ЖИЛИЙН ДЭЭД ТҮВШИНД ХҮРЛЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ERD: "ХӨНДИЙ" АЛТНЫ ТӨСЛИЙН ТОГТООГДСОН НӨӨЦ 751 МЯНГАН УНЦ АЛТ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ХЯТАДЫН $200 ТЭРБУМЫН ИМПОРТОД ТАРИФ ТОГТООВ WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/19     ШИВЭЭХҮРЭН БООМТООР ХОНОГТ 60-80 МЯНГАН ТОНН НҮҮРС ЭКСПОРТОЛЖ БАЙНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/09/19     БНХАУ-ЫН 200 ТЭРБУМ АМ.ДОЛЛАРЫН ИМПОРТОД 10 ХУВИЙН ТАРИФ НОГДУУЛАХ ШИЙДВЭР ИРЭХ 7 ХОНОГООС ХЭРЭГЖИНЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/18     ӨВӨЛ ЦАХИЛГААН СААТВАЛ ХОТ ДӨРВӨН ЦАГИЙН ДОТОР Л ХӨЛДӨНӨ WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/18    

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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Canada’s Trevali among world’s top zinc producers with Glencore mines buy www.mining.com

Canadian miner Trevali (TSX:TV) reached a milestone Thursday, as it finished the acquisition of majority stakes in Glencore’s (LON:GLEN) Rosh Pinah mine in Namibia and the Perkoa mine in Burkina Faso.

The deal, announced in March, places the Vancouver-based company among the world’s top ten zinc producers and helps it extend its footprint to Africa.

The acquisition of an 80% interest in Rosh Pinah and a 90% stake in Perkoa, will allow Trevali double its annual output to approximately 410 million pounds of zinc. It also makes it the first pure zinc company with operations in North and South America as well as Africa.

Rosh Pinah opened in 1969 and is expected to have a further 14 years of operating life, while Perkoa is set to produce for another six years.

The two African mines complement Trevali’s existing operations at the Caribou zinc-lead mine in Canada’s New Brunswick and Santander copper-zinc mine in Peru.

“We are very pleased to finalize our acquisition of the Rosh Pinah and Perkoa zinc mines, which marks a truly transformational event for Trevali shareholders,” President and CEO Mark Cruise said in the statement. “Additionally, we welcome Glencore as a key strategic shareholder in Trevali, expanding on the strong, proven business relationship we’ve enjoyed since 2010 at our Santander operation.”

Glencore now owns about 25.6% of Trevali’s issued and outstanding shares, representing about a 21% increase in ownership previous to the transaction.

Zinc was one of the best performing commodities last year, climbing up 60% as a few top mines, such as Lisheen in Ireland and Century in Australia, closed down. At the same time, top miners of the metal, including Glencore and Nyrstar, suspended some production.

Trading of Trevali shares was halted previous to the announcement and they were trading slightly up (0.70%) at 12:39PM ET.

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Vestas Providing Turbines For Mongolia’s Developing Wind Market www.nawindpower.com

ENGIE, Ferrostaal, the Danish Climate Investment Fund and Mongolian entrepreneur Radnaabazar Davaanyam have reached financial close to build and operate the 55 MW, Vestas-powered Sainshand wind park in Mongolia.

The project, located at Sainshand Soum in the Dornogobi Province, is set be Mongolia’s third and largest wind park, as well as the second featuring Vestas turbines. Specifically, Sainshand will feature 25 V110-2.0 MW turbines in 2.2 MW power-optimized mode. Long-term financing is being provided by the European Investment Bank and the European Bank for Reconstruction and Development.

“Mongolia has begun the journey away from an energy mix dominated by thermal power, and with its strong wind resources, the market is growing fast and becoming very competitive,” states Clive Turton, president of Vestas Asia Pacific.

The order also includes supply and supervision of turbine installation, a 15-year Active Output Management 4000 service contract and VestasOnline Business SCADA. Turbine delivery, as well as commissioning, is expected for the first half of 2018.

”Mongolia is facing an energy challenge due to increasing demand from industrialization and urbanization,” adds Benoit Ribesse, CEO of ENGIE Mongolia. “As our first renewable energy project in Mongolia, ENGIE’s investment in the Sainshand wind farm is consistent with our vision of leading the global energy transition, and the drive for decarbonization will significantly contribute to powering the country’s energy needs. We look forward to partnering with Vestas to support the Mongolian community – environmentally, socially and economically.”

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Kincora drilling underway at brownfield open pit target www.kincoracopper.com

Kincora Copper Ltd. (the “Company”, “Kincora”) (TSXV:KCC) is pleased to announce drilling is underway at its wholly owned East TS copper porphyry target in the Southern Gobi, Mongolia. The maiden reverse circulation and diamond drill program at the East TS target is comprised of approximately 2,870 metres to less than 265 metres depth for approximately 12 holes. It is proposed that during a second phase Kincora will undertake infill geophysics and a follow on 5000 metre drill program.

Sam Spring, President & CEO, commented: “It is pleasing to be drilling at the East TS target within a week of final approvals for our $4.52 million equity offering. Kincora has commenced the first Tier 1 drilling program in recent years and the first modern district scale reconnaissance exploration program in what is a world-class but underexplored porphyry belt.
In the upcoming months we will undertake drilling at two targets, initially at East TS, and then Bayan Tal. These first phase programs will provide improved geological knowledge, with funds in place for follow up geophysics and second phase drilling for a total of approximately 16,000 metres.
Our exploration programs will utilise number of advancements in global exploration techniques since the last the last wave of exploration in this belt by the likes of Ivanhoe, the BHP JV and IBEX, and will test our conceptual models of the first new Devonian porphyry systems in the Southern Gobi belt since Oyu Tolgoi, the latter being the largest expansion project globally in the industry”.
East Tsagaan Suvarga target
East TS sits within the interpreted eastern margin in the Tsagaan Suvarga Intrusive Complex (“TSIC”) which hosts the Severn Sukhait open pit, various oxide resources and exploration targets on northern structural corridor within western margin of the intrusive at the privately owned Tsagaan Suvarga project. The Seven Sukhait sulphide open pit has a 307Mt @ 0.54% Cu resource and is a billion dollar plus development project with the orebody pre-stripped and existing associated regional infrastructure, including grid power and neighbouring saline water aquifers.
Surface geology at East TS provides an analogue to the Serven Sukhait open pit alteration and associated higher-grade copper mineralization. Analysis of age dating, whole rock geochemistry and magma fertility highlights a common suite between quartz monzodiorite within the Serven Sukhait open pit, the high-grade underground deposits at OT and East TS. Interpreted geophysics supports a potential similar northern structural corridor on the eastern margin under shallow younger cover to that outcropping on the western margin. Field season activities in 2016 and earlier in 2017 have included ground magnetics, detailed mapping, petrography, whole rock geochemistry with fertility analysis, and age dating to complement historic Induced Polarization (“IP”) geophysics and soil geochemistry. The objective of ongoing field activities at East TS is to confirm the open pit and exploration analogue to Tsagaan Suvarga.
The TSIC is situated within the second large-scale and Devonian age porphyry system in the Southern Gobi belt to date with an economic discovery. The East TS target is situated within 13km of the Severn Sukhait open pit and until last years’ exploration efforts had previously unidentified outcrop, providing an excellent example of the highly mineralized but vastly underexplored potential of the Southern Gobi Devonian copper belt for further Tier 1 porphyry discoveries. Kincora holds the dominant land position in the region with a portfolio across 1437km2.

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FESCO increases the number of its services on land route China-Mongolia-Russia and launches block train from Xiamen to Moscow www.container-news.com

FESCO Transportation Group expands the network of its regular rail services from China and together with SWIFT, a Chinese transportation company launches FESCO Mongolian Shuttle – a container train destined from Xiamen to Moscow.

The first train carrying 82 TEU was dispatched from province Fujian to station Kupavna of the Moscow Railway on August 25th. Time in transit shall be 14 days. The route of this service runs via border stations Erlian/Zamyn-Uud/Naushki. With increase of the rhythm of traffic it is expected to use FESCO Mongolian Shuttle to make two regular dispatches per month, in the future – on a weekly basis.

The cargo base for the service is formed by export goods from province Fujian and by products that are produced in and are arriving from other regions to Shanghai, Ningbo, Guangzhou. These are primarily consumer goods, products of the textile industry, shoes.

FESCO launched its first continental service from China to Russia in late 2016 on route Tianjin-Moscow, a transit service from China to Germany passing through the territory of Mongolia as well started to operate in early August 2017.

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Energy-rich Russian Arctic region boasts $100bn in investment www.rt.com

The Yamal region in the Russian Arctic expects $100 billion in investments in the next eight years, according to the regional governor. Yamal has vast reserves of oil and natural gas.
"Yamal gives heat and light not only to Russians but also ensures the supply of natural gas to dozens of countries. Our investment projects are among the most promising in the world. The volume of investment through 2025 exceeds $100 billion," said the Governor of the Yamalo-Nenets Autonomous Region Dmitry Kobylkin on Wednesday, as quoted by the TASS news agency.

According to the governor, there are more than 60 energy companies working in Yamal, including Gazprom, Rosneft, Lukoil, NOVATEK, Gazprom Neft, Transneft, France’s Total, China’s CNPC and others.

There are 236 oil and gas fields in Yamal, and the region boasts proven hydrocarbon reserves of 44.5 trillion cubic meters of gas and almost 5 billion tons of oil.

Russia expects to open the first phase of the Yamal liquified natural gas (LNG) project in December. The plant will produce 16.5 million tons of LNG per year. The project is a joint-venture between Russia’s NOVATEK (50.1 percent), Total (20 percent), CNPC (20 percent) and the Silk Road Fund (9.9 percent). 96 percent of the plant’s future capacity has already been contracted, Kobylkin noted.

When Yamal LNG and Arctic LNG 2 on the Gydan Peninsula are fully operational, LNG production in the region will be 80 million tons per year, the governor said.

The region also has natural gas pipelines, crucial for Nord Stream, the pipeline that delivers Russian gas to Germany and Europe.

Yamal will also become a major hub for the Russian Northern Sea Route, which allows passage from the Atlantic to the Pacific Ocean via the shortest route along the Russian part of the Arctic Circle. It reduces the transport time from China to Europe by at least 12 days compared to the traditional Suez Canal route.

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Joint Statement: U.S.-Japan-Mongolia Trilateral Meeting www.mn.usembassy.gov

The United States, Japan and Mongolia held a trilateral meeting in Ulaanbaatar on August 30, 2017. The participants underscored the importance of the U.S.-Japan-Mongolia trilateral meeting, launched in 2015, as a foundational mechanism allowing Mongolia and two of its “third neighbors” – Japan and the United States – to exchange views on regional and multilateral cooperation and economic integration.

The 2017 trilateral meeting addressed issues of shared concern. The three countries expressed their grave concern over the regional and global threat posed by North Korea’s continued development of nuclear and ballistic missile technology, especially in light of the August 29 ballistic missile launch over Japan. Noting the threat that such provocations pose to regional stability, they called on Pyongyang to immediately cease its destabilizing actions and to fully comply with its international obligations and commitments under all relevant United Nations Security Council Resolutions (UNSCRs) and its commitment under the 2005 Joint Statement of the Six-Party Talks in order to achieve a peaceful resolution to rising international tensions and the shared goal of a denuclearized Korean Peninsula. The three countries called on all UN member states to fully implement all UNSCRs, especially the newer provisions of UNSCR 2371. The three countries emphasized the importance of an immediate resolution of abductions.

The three countries also reinforced the importance of international law and standards as the foundation of peaceful, productive relations between countries. Moreover, they pledged to promote increased trilateral cooperation at the United Nations and other international organizations. The participants also affirmed their shared intent to promote trilateral and multilateral security and defense cooperation. Japan and the United States expressed their great appreciation for Mongolia’s contributions to UN peacekeeping operations and continued stability operations in conflict zones worldwide.

Mutually beneficial economic development remains a key theme in the trilateral relationship. The three countries discussed opportunities to increase trade and make Mongolia’s business and investment climate increasingly attractive to Japanese and U.S. firms, particularly through improved transparency and predictability. In order to enhance foreign investors’ trust and reinvigorate the Mongolian economy, Japan and the United States expressed their hope Mongolia would fully implement its arrangement with the IMF. Japan and the United States noted Mongolia’s natural competitive advantage in the agricultural sector and welcomed exploring opportunities to work with Mongolia to achieve its renewable energy goals.

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Mongolia-U.S-Japan joint statement released www.montsame.mn

Ulaanbaatar /MONTSAME/ Mongolia, the United States and Japan released a joint statement after holding a trilateral meeting in Ulaanbaatar on August 30, the Mongolian Ministry of Foreign Affairs reported Thursday.

The participants underscored the importance of the Mongolia-U.S.-Japan trilateral meeting, launched in 2015, as a foundational mechanism allowing Mongolia and two of its “third neighbors”--Japan and the United States--to exchange views on regional and multilateral cooperation and economic integration.

The 2017 trilateral meeting addressed issues of shared concern. The three countries expressed their grave concern over the regional and global threat posed by North Korea’s continued development of nuclear and ballistic missile technology, especially in light of the August 29 ballistic missile launch over Japan. Noting the threat that such provocations pose to regional stability, they called on Pyongyang to immediately cease its destabilizing actions and to fully comply with its international obligations and commitments under all relevant United Nations Security Council Resolutions (UNSCRs) and its commitment under the 2005 Joint Statement of the Six-Party Talks in order to achieve a peaceful resolution to rising international tensions and the shared goal of a denuclearized Korean Peninsula. The three countries called on all UN member states to fully implement all UNSCRs, especially the newer provisions of UNSCR 2371. The three countries emphasized the importance of an immediate resolution of abductions.

The three countries also reinforced the importance of international law and standards as the foundation of peaceful, productive relations between countries. Moreover, they pledged to promote increased trilateral cooperation at the United Nations and other international organizations. The participants also affirmed their shared intent to promote trilateral and multilateral security and defense cooperation. Japan and the United States expressed their great appreciation for Mongolia’s contributions to UN peacekeeping operations and continued stability operations in conflict zones worldwide.

Mutually beneficial economic development remains a key theme in the trilateral relationship. The three countries discussed opportunities to increase trade and make Mongolia’s business and investment climate increasingly attractive to Japanese and U.S. firms, particularly through improved transparency and predictability. In order to enhance foreign investors’ trust and reinvigorate the Mongolian economy, Japan and the United States expressed their hope Mongolia would fully implement its arrangement with the IMF. Japan and the United States noted Mongolia’s natural competitive advantage in the agricultural sector and welcomed exploring opportunities to work with Mongolia to achieve its renewable energy goals.

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BOM issues 1-week bills (August 30) www.montsame.mn

Ulaanbaatar /MONTSAME/ The Bank of Mongolia traded 647 billion MNT worth 1-week maturity central bank bill (“CBB”), with weighted average yield of 12.0 percent per annum. 

1 - week CBBs
1-week CBB plays an important role in managing the reserves of banks and is the core monetary policy instrument of the Bank of Mongolia. The interest rate on CBB will be the policy rate of the BOM and will serve as a guide interest rate on the interbank market. It was first introduced in July 2007, with fixed rate and unlimited bidding, and traded on a regular basis every Wednesday at the interbank market. This had attracted the banks’ interests providing the possibility for the banks to place their excess reserve in short term asset. Since the introduction of this instrument, there has been a substantial change in the way banks manage their reserves. For the favorable adjustment of CBB rate and loan principle along with the well balance of togrog and foreign exchange, 1 - week CBB auction has been held in the form of competitive interest rate since May 2010. In doing so, the upper and lower limits of the bank bids are to set +/- 2 per cent of the policy rate.

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Facebook is planning to build its own town www.weforum.org

Billions of people spend a lot of time living their lives on Facebook's social network. Now Facebook wants to try its hand at creating a community in the real world.

The internet giant wants to build housing, retail stores, a hotel and more at its corporate headquarters — in short, Facebook wants to build its own town.

Facebook unveiled plans on Thursday for the massive new construction project at its Menlo Park, California corporate campus, which is part of Facebook's plans to expand its home base. The 56-acre site, which Facebook bought in 2015 for about $400 million, is located directly across the street from Facebook's headquarters. It will offer 1.6 million square feet of housing, or 1,500 units.

In a blog post announcing the plans, Facebook described the future development as a "mixed-use village" that will provide residents, many of which will be Facebook employees, with housing, transportation services and other amenities.

"We plan to build 125,000 square feet of new retail space, including a grocery store, pharmacy and additional community-facing retail," Facebook said.

The new development will also include a hotel, according to the Silicon Valley Business Journal.

It will take roughly a decade to build, according to a person familiar with the plans. The initial phase of the project, which will include the housing and grocery store, will be wrapped up in the first half of 2021. The subsequent phases will be completed every two years, according to a blog post on Facebook's website.

While most of the housing will likely go to Facebook employees, Facebook is opening up the housing to the community at large. The housing will be a mix of market rate and affordable housing units, with 225 units, or 15%, priced below market rate.

"Part of our vision is to create a neighborhood center that provides long-needed community services," Facebook wrote.

One benefit of having employees live so close to campus is a reduction in the amount of traffic in the area, according to the blog post.

While Facebook has presented the plans to the City of Menlo Park, they have not yet been approved. The company expects the approval process to take about two years.

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Trade Development Bank cooperate on border trade loan with China Construction Bank www.tdbm.mn

Trade and Development Bank of Mongolia and China Construction Bank have signed “Border Trade Loan Agreement”.

China Construction Bank (CCB) is the largest investment bank in China's construction sector, operating since 1954. CCB has been named the 2nd largest bank in the world by market capitalization and 6th largest company in the world in 2015. Trade and Development Bank, Mongolia’s leading trade finance service provider and CCB have held a close cooperation since 2007 in terms of MNT and RMB transactions, co-financing and trade financing services.
Trade and Development Bank of Mongolia has further extended its cooperation with China Construction Bank by signing a Memorandum of Understanding on “Border Trade Loan Agreement” on August 21st, 2017. This agreement validates extensive trade financing opportunitites to business entities handling import and export of equipment and goods between Mongolia and China, moreover, enables delivery of loans with more favorable conditions, promoted bilateral trade development and strategic partnerships. Furthermore, the two parties are currently working on co-financing of large-scale construction and infrastructure projects in Mongolia.

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