|Frontier's "Invest Mongolia Tokyo 2018"||Frontier Securities||Tokyo Japan|
|"Open to Export" ICC WTO International business award||ICC WTO||London|
Ulaanbaatar/MONTSAME/ A regular meeting of the Council of Governor of the Capital City was held on August 9, discussing some matters regarding constructional works and repair works of roads and streets destroyed by last month’s heavy rains in Ulaanbaatar city.
Reviewing the result of road and street damage inspections on 86 sites throughout the city, the council decided to fund approximately MNT 1 billion on repairs.
In addition, some individuals and entities illegally settled down by blocking flood drainage and flood protection dam, which triggered damages of some roads. In regard with this matter, Governor of the Capital City S.Batbold instructed to take urgent measures to repair the roads and relocate these households and entities that illegally settled down.
“Further, districts should set up own active repair groups to restore little damages of roads, residential areas and trenches. Households and entities that settled down in high flood risk areas without a permit have to be relocated. The eligible areas where these households are possible to settle need to be agreed with district Governors,” said Governor S.Batbold.
Moreover, he assigned the authority of the Auto Road Development Department of Ulaanbaatar to make a risk assessment on roads and complete a research on areas where flood protection dams must be built. Then required money will be budgeted in Ulaanbaatar City Budget 2019.
Head of the Reserve Management and Financial Markets Department of the Bank of Mongolia A.Enkhjin was interviewed on the purchase of gold and issues in this regard.
- How much gold the BoM is planning to purchase in 2018?
The amount of gold accumulated to the BoM reached 7.1 tons in the first half of the year, an increase of 400 kg or 6 percent compared with the same period of the previous year. Last year, a total of 20.01 tons of gold were purchased from the individuals and entities under the ‘Mongolian Gold’ campaign and the central bank plans to increase gold purchase by 10-20 percent this year. In order to achieve this goal, the bank launched the ‘National Gold to the Fund of Treasures’ five-month campaign to provide public with information about the bank's purchase of gold and its importance, conducting a wide range of trainings and promotional activities in this regard.
- How about the studies and researches on whether the Bank accumulates all extracted gold with its gold purchase?
The BoM receives monthly reports from the Precious Metals Assay Inspection Department of the Mongolian Agency for Standard and Metrology. The difference between the received assay data and gold purchased by the BOM is low. Therefore, it can be considered that the majority of gold mining companies and individuals sell the mined gold to the Central Bank. Before 2017, the annual average amount of gold sold to the BoM was 15-16 tons. However, the amount reached 20 tons last year, showing that the illegal gold trade was reduced as a result of the bank’s actions.
- In particular, how do you cooperate with law enforcement agencies to reduce illicit gold trade within this campaign? What do you think about the legal environment regarding the illicit gold trade?
Under the ‘Mongolian Gold’ campaign last year we organized a workshop in Zamyn-Uud soum of Dornogobi aimag on enhancing cooperation of public organizations and preventing illegal exports of gold and precious metals. As a continuation of this work, a number of promotion works on improving public education in this regard are being implemented under the ‘National Gold to the Fund of Treasures’ campaign. For instance, the billboards calling to sell the gold to the Treasury Fund are posted along the main roads from Ulaanbaatar to the rural areas, information on the gold purchase of the BoM are regularly broadcasted through the media and numerous works including the upcoming trainings and events in August are planned. The results of the previous campaign showed that in order to reduce illicit gold trade it is important to provide the public with appropriate information. It is important that the citizens recognize the consequences of illegal gold trade, specifically that the illegally exported gold is confiscated.
- Is there any legal reform planned for the accumulation of national gold in the Fund of Treasures within the campaign?
The BoM is developing draft amendments to the Law on Treasury Fund. The amendment regulates the approval of assay of precious metal, precious stones and their articles for sale to the Treasury Fund by the legal entity with assay license or by the BoM, the state administrative body responsible for assay. Thus, it will allow legal entities with license that meets international standards and requirements to assay precious metals, not centralizing assay activities on one organization. As a result, it will save time of gold miners and make the services of public organizations and NGOs more accessible. The 2014 amendments to the Minerals Law reduced the royalty for gold sold to the BoM and authorized banks to 2.5 percent, which played an important role in increasing the volume of gold sold to the Treasury Fund. The BoM has submitted proposals to relevant ministries to extend the term of the provision which terminates on January 1, 2019. In addition, the BoM is planning to undertake measures to support the gold producers' operations and to reduce the cost of financing.
- How is the BoM involved in the Government’s ‘Gold-2’ program?
‘Gold-2’ program is aimed at ensuring short and mid-term development of gold sector, stabilizing legal environment, intensifying prospection, using major gold deposits and deposits of other metals that contain gold, ecological gold mining, increasing production and efficiency by introducing advanced technology, increasing international competitiveness and improving economic benefits. The Cabinet Secretariat, Ministry of Mining and Heavy Industry, Ministry of Finance, Ministry of Environment and Tourism, BoM, local administrations, National Police Agency, professional government and non-government organizations, gold miners and individuals are cooperating within the program. Gold funding has not been solved in the years before the program. In 2017, MNT 31.9 billion loan was given to 10 gold mining companies to start the project. Thematic geological research works on gold started in central and eastern regions of Mongolia.
- Once our country is rich in gold resources, it is imperative that refineries are required in the future. How do you plan to solve this issue?
According to the BoM survey, in case of establishment of gold refinery in Mongolia, the refined gold will cost 3-4 times higher than we pay now. Moreover, it will be difficult to store and sell the refined gold at the international markets since the newly established plant can appear in the Good Delivery List only after 5 years of operation. Therefore, these issues should be considered before making decision on refinery establishment. The BoM has conducted studies on the gold refinery. However, more detailed researches, technical and economic calculations of the refinery need to be done....
While its opponents are investing in wars, Beijing is investing in infrastructure. China seeks to build a tunnel that would connect its mainland with Taiwan.
If realized, shuttle trains would run through a 135km undersea section of the tunnel at up to 250kph by 2030 from China to Taiwan, which Beijing considers a renegade province rather than an independent state.
The gigantic project would be dug under the ocean, at a depth of 200 meters. In order to have enough fresh air in the tunnel, Chinese engineers are planning to heave two artificial islands halfway to pump air into the tubes, the South China Morning Post reports.
According to the plan, the trains will travel from Fuzhou province’s Pingtan county and arrive in Hsinchu city, southwest of Taipei, in 32 minutes. The Chinese were inspired by the Channel Tunnel which links England and France.
The 50.5km project, which was hailed as a masterpiece of engineering, would pale in comparison if Beijing manages to complete the project. The Chinese tunnel would be nearly one-third wider, allowing trains to be sent at higher speeds and with heavier cargo.
The idea of a mainland-Taiwan tunnel had been considered for a century until it was included in the then-new five-year plan in 2016. Reunification with Taiwan has been one of the largest political goals for Beijing. The People’s Republic does not recognize the island as an independent state after it separated from the mainland in 1895.
Only 18 states currently recognize Taiwan. The most prominent is the Vatican, and there are fewer and fewer states that recognize the breakaway republic. Recently, Burkina Faso and the Dominican Republic closed their offices in Taipei and opened embassies in Beijing.
In the first seven months of 2018, the foreign trade turnover amounted to 7.4 billion USD, an increase of 26 percent (1.5 billion USD) compared to the same period in 2017. The balance of trade totaled 851 million USD with exports worth 4.1 billion USD and imports valued at nearly 3.3 billion USD. According to data, a monetary value of the exports went up by 16.9 percent while the imports grew by 39.8 percent compared to July 2017. Mineral products, machinery, equipment, automobiles and parts, food products and base metals compose the majority of Mongolia’s import....
Vancouver, August 13th, 2018 - Kincora Copper Ltd. (the “Company”, “Kincora”) (TSXV:KCC) is pleased to announce that Mr. Cameron McRae has joined as Chairman of the Board of Directors, with Mr. Anthony Jackson standing down from the Board and remaining Chief Financial Officer.
Cameron has been a resident in Mongolia since 2010, when he came on as President and CEO of Oyu Tolgoi (2010-13) and directed the business through construction and into operations. He was also Rio Tinto’s Country director for Mongolia during this period.
Kincora’s recent corporate transition phase has now concluded. An experienced board and senior team, with complementary skill sets, will support the next leg of the Company’s exploration and expansion strategy. The members of the Board and Technical Committee have over 40 years relevant operating experience in Mongolia, and over 150 years specific sector experience, with two board members based in Mongolia. Further details on Mr. McRae, the Board and Technical Committee are included in the Appendix.
"We are very pleased to welcome Cameron as our new Chairman. For the majority of the period post being President of Oyu Tolgoi, Cameron been a Board Advisor to Kincora assisting with stakeholder relations, strategic direction and operations. He has a strong track record of adding value for Kincora shareholders, and other stakeholders in businesses he has previously lead,” said Kincora’s President & CEO, Sam Spring. “Re-joining in this expanded capacity will only further strengthen our business with a senior, experienced and hands on chairman”.
“Cameron’s appointment is the last major step in the recent shareholder and board transition process. Kincora is now in the strongest position to accelerate exploration activities in the Southern Gobi copper-gold belt where we hold the dominant license portfolio, as well as pursue further countercyclical expansion opportunities.
We look forward to shortly providing updates on our exploration progress and plans”.
Cameron McRae commented: “I am very pleased to join the Kincora board and continuing to work with the strong team in place. We enjoy significant support from our investors and we will remain focused on genuinely adding value from both an exploration perspective and sensible positioning of the company.”
Turkey's currency nosedived again Monday as fears deepened about the country's ability to deal with a crisis that has rattled markets around the world.
The Turkish lira dropped as much as 11% against the dollar in morning trading in Asia. It had already plummeted more than 20% last week as a political clash with the United States intensified and investors fretted about the Turkish government's lack of action to tackle the problems plaguing its economy.
The lira's tailspin has unsettled global markets, with shares of European banks coming under particular pressure because of concerns over the lenders' exposure to Turkey. On Monday, benchmark stock indexes in Tokyo, Hong Kong and Shanghai were all down more than 1.5% in late morning trading.
Turkish President Recep Tayyip Erdogan has dismissed calls for the country to raise interest rates to try to ease the crisis -- and has lashed out at the United States.
"We will not give in," Erdogan said in a speech Sunday. "If you come at us with your dollars then we will find other ways to do business."
Economists are warning that if confidence isn't restored quickly, Turkey could lurch into a recession and debt crisis requiring a bailout from the International Monetary Fund.
"Investors are clearly concerned that Turkey's government won't act (or allow the central bank to act) to shore up the currency, and fears are mounting that this could result in a crisis in Turkey's banking sector," William Jackson, chief emerging markets economist at research firm Capital Economics, wrote in a note to clients Friday.
The lira is now down around 45% against the dollar since the start of the year, making it far harder for Turkish companies to pay back loans they have taken out in the US currency.
Meanwhile, the US government is using the lira crisis to ramp up pressure on Turkey over its detention of an American pastor.
"I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!" President Donald Trump tweeted Friday. "Our relations with Turkey are not good at this time!"
Finance Minister Berat Albayrak said in an interview with Turkish newspaper Hurriyet on Sunday that the government has drafted an economic action plan that it will start implementing on Monday morning.
Albayrak, who is Erdogan's son-in-law, didn't specify what the plan would involve. He said the country's banks and banking regulator "will take the necessary measures quickly."
But his comments did little to help the Turkish currency. One dollar now buys about seven lira, compared with less than four at the start of the year.
Investors are waiting for "a convincing response from the central bank and government," Rob Carnell, an economist at investment bank ING, said in a note to clients Monday.
Mongolia’s economic performance has improved dramatically with GDP growth increasing from 1.2% in 2016 to 5.1%in 2017 and 6.1% in the first quarter of 2018. Check out the infographic for quick facts and main recommendations from Mongolia Economic Update, the latest World Bank report on Mongolian economy.
Please review the details in graphics at http://www.worldbank.org/…/infographic-mongolia-economic-up…
ULAN BATOR, Aug. 9 (Xinhua) -- Pedestrians will be not allowed to wear headphones and use cellphones while crossing the road in Mongolia, the government's press office announced on Thursday.
The government approved new traffic rules during its regular meeting on Wednesday in order to ensure pedestrian safety and reduce road accidents.
The new rules, which will come into effect on Nov.1, will also forbid leaving a child under 10-year-old alone in a vehicle, and require children older than 10 to wear a seatbelt or be properly restrained.
In addition, the speed limitation in the country's crowded urban areas will be reduced to 20 km per hour.
A total of 163 people, including 37 pedestrians, were killed in road accidents in the first half of this year, according to official statistics.
Mongolia’s main export border checkpoint Tavantolgoi-Gashuunsukhait route auto road opened yesterday. Although transportation delay caused by road closure affected coal export volume; revenue resulted higher than the previous year’s mean time according to statistics. The Gashuunsukhait route auto road was in high risk of flood, creating crocodile cracking on the road due to heavy rain in July. Thus, coal transport was halted on August 2. Authorities informed that immediate actions have been taken to repair the road, successfully preventing further delays to coal transports. Regardless of delay created by the road fix, coal exporters minimized loss by transporting coal reserved at Tsagaan khad port. As of the first seven months of this year, Mongolia exported 20.5 million tons of raw coal worth USD 1.6 billion, which is USD 206.6 million higher than the same period of last year; however, the volume fell by 304,700 tons. In addition, commodity market is showing a sign of weakening.
Mongolia’s main export items, namely coal and iron ore, have maintained their growth, but copper and gold have plummeted due to the trade war between the U.S and People’s Republic of China. For instance, copper price sank USD 1000-1500 per metric ton and Gold fell by USD 100-150 per ounce since June. On the other hand, coal price grew by around 10 percent yearover-year (yoy), to USD 78.4 per ton and iron ore by nine percent. Several Chinese provinces have prepared a plan to reduce the capacity of steel and coal production, boosting the prices of iron ore and coal according to experts. In the first seven months of 2018, Mongolia exported 3.9 tons of iron ore, 20 percent growth yoy, worth USD 181 million. The fates of Mongolia’s coking coal and iron ore depend on Chinese steel market, which is directly connected to its construction and infrastructure. Chinese construction demand is visible from its new housing prices. According to Chinese statistics, housing price surged in 70 cities across the country, showing an average growth of five percent yoy.
LONDON, Aug 9 (Reuters) – Rio Tinto, the world's second largest listed mining company, is exploring a public listing of its Iron Ore Company of Canada business, banking and industry sources said, as it focuses on boosting revenue from its flagship Australian assets.
Iron ore, which accounts for most of Rio's profit and is used in making steel, has provided healthy margins for years but the outlook is uncertain as major buyer China is expected increasingly to rely on recycling rather than importing raw material.
Following a commodity price crash in 2015, Rio put a string of assets on the block, mostly in coal, to decrease its debt load. In iron ore, its push to refocus has meant concentrating on Australia's Pilbara region, where it has lower costs and higher grades.Rio Tinto's revenues are more dependent on iron ore than its rivals, in 2017, iron ore making up more than 60 percent of Rio's earnings.
IOC, 59 percent owned by the Anglo-Australian miner, 26 percent by Japan's Mitsubishi Corporation and 15 percent by Labrador Iron Ore Royalty Company, is one of Canada's largest producers of iron ore. It had revenues of $1.9 billion in 2017.
Rio had tried to sell its stake in IOC in 2012 as it already deemed it a non-core asset but it withdrew the process, saying the sale was not essential.
One banking source said that offers from private equity funds and rival miners had not met Rio's target of between $3.5 billion and $4 billion back then.
Rio was now considering an IPO of its stake on the Toronto Stock Exchange (TSX) as part of its ongoing work to hold only its best assets, but the process was at an early stage and it had not yet hired a financial adviser, the banking source added.
Rio Tinto and Mitsubishi declined to comment. Labrador Iron Ore Royalty Company was not immediately available to comment.
The Pilbara region of Western Australia produces high quality iron ore that sells at a premium and Rio invested heavily in the region's assets, installing driverless trains and maximising productivity.
It is also poised to expand there, having approved $146 million of funding to undertake initial work at the Koodaideri iron ore project, ahead of a final investment decision expected by the end of the year.
IOC produces iron ore pellets and concentrate from operations in Newfoundland and Labrador, and runs port facilities in Sept-Iles, Quebec, as well as a 418-kilometre railway that links the mine to the port.
A labour dispute earlier this year that resulted in a two-month suspension of operations was part of the reason for Rio reducing its underlying core profit by $137 million compared with the 2017 first half, Rio Tinto said when it reported half-year results last week.
(By Clara Denina, Barbara Lewis and Yuka Obayashi; Editing by Jane Merriman)