1 FOREIGN RELATIONS OF MONGOLIA’S ROAD TRANSPORT SECTOR BROADENING WWW.MONTSAME.MN PUBLISHED:2019/02/21      2 MONGOLIA EXPRESSES READINESS TO CONTRIBUTE TO STRENGTHENING ASIA-EUROPE COOPERATION WWW.MONTSAME.MN PUBLISHED:2019/02/21      3 OYU TOLGOI FUNDED 35.1 KM ROAD OPENS IN KHANBOGD WWW.GOGO.MN PUBLISHED:2019/02/21      4 POLYMER BITUMEN TO BE DOMESTICALLY PRODUCED WWW.MONTSAME.MN PUBLISHED:2019/02/21      5 KHURELBAATAR CHIMED: 319 ENTITIES DREW LOANS FROM TWO FUNDS WWW.ZGM.MN PUBLISHED:2019/02/21      6 CONSTRUCTION OF TAVANTOLGOI-GASHUUNSUKHAIT ROAD TO BE INTENSIFIED WWW.MONTSAME.MN PUBLISHED:2019/02/20      7 OVER 30 MEASURES PLANNED FOR REDUCTION OF ENVIRONMENTAL POLLUTION WWW.MONTSAME.MN PUBLISHED:2019/02/20      8 MONGOLIA SAYS IT EARNS OVER 169 MLN USD FROM COAL EXPORTS TO CHINA IN JAN WWW.HELLENICSHIPPINGNEWS.COM  PUBLISHED:2019/02/20      9 RUSSIA’S GAZPROM TO START CHINA GAS PIPELINE BY DECEMBER 1 WWW.RT.COM PUBLISHED:2019/02/20      10 MONGOLIA'S FOREIGN TRADE UP 41.6 PCT IN JAN. WWW.XINHUANET.COM PUBLISHED:2019/02/20      УГСАРМАЛ ОРОН СУУЦНЫ ДУЛААЛГАД ЗОРИУЛЖ 12.7 ТЭРБУМ ТӨГРӨГИЙГ УЛСЫН ТӨСВӨӨС ГАРГАХААР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/21     2018ОНД ЦАГААН БУДАА , ЭЛСЭН ЧИХЭР , ТАХИАНЫ МАХНЫ ИМПОРТ 24-32 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ДЦС IV: 2018 ОНД НИЙТ АШИГ 4.7 ДАХИН ӨСӨЖ , 4.48 ТЭРБУМ ТӨГРӨГ БОЛСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ТУСГАЙ САНГУУДААС ГАРГАСАН ЗЭЭЛИЙН 100 ОРЧИМ ТЭРБУМ ТӨГРӨГ ХУГАЦАА ХЭТЭРСЭН ӨР БОЛЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     МОНГОЛ УЛСЫН БОРЛУУЛАЛТЫН МЕНЕЖЕРҮҮДИЙН ИНДЕКС СҮҮЛИЙН 12 САРД АНХ УДАА УНАЛТЫН БҮСЭД ШИЛЖИВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     2018 ОНД ХАМГИЙН ЧИНЭЭЛЭГ БҮЛГИЙН ХЭРЭГЛЭЭ ЯДУУ БҮЛГИЙНХНЭЭС 5.1 ДАХИН ИХ БАЙВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     ХОВД ГОЛД ОСОЛДСОН 6 НАСТАЙ ХҮҮХДИЙН ЭРЛИЙГ ЗОГСООЛОО WWW.MONTSAME.MN НИЙТЭЛСЭН:2019/02/21     ДБНХ-НООС П.ОРХОНЫ БАРИЛДАХ ЭРХИЙГ 4 ЖИЛЭЭР ХАСАВ WWW.MONTSAME.MN  НИЙТЭЛСЭН:2019/02/21     УУХҮЯ: II САРЫН БАЙДЛААР НИЙТ НУТАГ ДЭВСГЭРИЙН 5.6 ХУВЬД АШИГТ МАЛТМАЛЫН ЛИЦЕНЗ ОЛГОСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/20     300 ОРТОЙ ТӨРӨХ ЭМНЭЛГИЙН БАРИЛГЫН АЖИЛ 80%-Д ХҮРЧ ГУРАВДУГААР САРЫН 1-НЭЭС ДУЛААНД ХОЛБОГДОХООР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/20    

Events

Name organizer Where
“Doing business with Mongolia”, “UK Investors show” бизнес хөтөлбөр March 27-April 02. 2019 ЛОНДОН ХОТ, ИХ БРИТАНИ Mongolian Business Database London UK
SYMPOSIUM ON GLOBAL MARKETS Nationalism and Protectionism: The United States in the International Arena June 17-18, 2019 The Center for American and International Law Plano, Texas, USA The Center for American and International Law (CAILAW) Plano Texas June 17-18 2019
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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China-Mongolia meat trade full of potential www.globaltimes.cn

In a joint press release issued by the foreign ministers of China and Mongolia on December 4, the Chinese government expressed its willingness to give positive consideration to Mongolia's desire to expand its exports of mineral and energy products as well as increasing its beef and mutton exports.

While we are quite familiar with Mongolia's mineral and energy products, not so much attention has been paid to the country's meat exports. In fact, Mongolia in recent years has started to export meat products in order to build up foreign exchange earnings. According to Mongolian media reports, the country has already exported large amounts of meat products to countries including China, Russia, Kazakhstan, Japan, Iran, Vietnam and Qatar, with the annual export volume expanding five times compared to the level in 2013. From the perspective of Mongolia's foreign trade in 2017, the Mongolian government obviously intends to promote its economic growth by means of expanding exports of meat products. Such a development trend deserves our attention.

During the 16th session of the Vietnam-Mongolia Inter-Governmental Committee for Economic, Scientific and Technical Cooperation, held in August in Ulan Bator, capital of Mongolia, both countries reached an agreement on meat exports. Mongolia will export 200 tons of goat meat to Vietnam between 2017 and 2018. The two governments believe that the signing of export agreements on livestock products will be a great boost to the goal of achieving bilateral trade of $70 million by 2020.

Also in August, when a Saudi Arabian government delegation visited Mongolia, both parties conducted extensive discussions on the establishment of a joint-venture meat processing plant and a relevant working team.

In November, during a political consultation meeting between Mongolia and Paraguay, Mongolia showed great interest in Paraguay's experience in beef exports and expressed a desire to strengthen bilateral exchanges and cooperation in relevant fields.

In my opinion, there are several reasons behind Mongolia's growing focus on meat product exports and cooperation in its foreign trade. First, Mongolia's meat production is significant. At present, the country's livestock industry can not only fully meet the domestic demand for meat products, but also has the potential for exports. Statistics show that Mongolia's total livestock herd reached 55.97 million at the end of 2015, and the figure reached 61 million at the end of 2016. The country's current consumption of meat is roughly 11 million livestock per year, with 6 to 9 million livestock available for meat exports. 

Second, the government has the need for diversified economic development. For a long time, Mongolia's mineral exports accounted for about 80 percent of its total export value. In comparison, its exports of animal and livestock products was so low that the value was nearly negligible. Mongolia's foreign trade has been heavily dependent on its mining industry, leading to imbalanced development of its industrial structure. Its economic development also appears unstable, and is vulnerable to fluctuations in global market demand for minerals and prices. Thus, in order to promote more diversified economic development, the Mongolian government has started to tap into the potential of meat exports.

Mongolia will continue to vigorously promote its meat exports in the future, but it should be noted that the country's actual meat export volume has always failed to meet the target, with its 2015 exports only reaching 3.8 percent of the planned export volume. 

Due to some bottleneck factors, Mongolia still faces many uncertainties in exporting meat products. First, the quality and safety of its meat products is not guaranteed, which directly affects its export prospects given the relatively low level of prevention and control of livestock diseases in the country. Second, its raw meat processing capacity is limited. Official data shows that there are more than 40 meat processing factories in Mongolia, but only 10 have strong productivity and most of them do not operate year-round. Finally, the structure of its livestock also constrains exports. At present, horse meat is what the international market demands the most from Mongolia, and Russia and China also mainly import beef and horse meat from Mongolia. But sheep and goats account for nearly 90 percent of the country's livestock herd, with horses and cattle accounting for only 10 percent.

Mongolia's intention to enhance exports of its meat products and its lack of relevant capacity provides a large amount of potential for cooperation with China. The two countries can expand their trade in meat products by establishing joint-venture meat processing plants or increasing or expanding cold-chain logistics zones for meat trade and processing in their border areas. Also, both parties can strengthen cooperation on prevention and control of livestock diseases and the development of relevant vaccines. In addition, China should attach great importance to technical aid for Mongolia in the prevention and control of foot-and-mouth disease and other livestock diseases, which would provide a great boost to bilateral ties.

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Mongolia Vows Action to Get Off European Union Tax Haven Blacklist www.nytimes.com

ULAANBAATAR — Mongolia needs to take action at "all levels of government" to get itself removed from a European Union blacklist of tax havens, its foreign minister said, following talks with European counterparts.

The landlocked nation between China and Russia is one of 17 jurisdictions outside the European Union that risk losing access to EU funds, or facing other forms of censure, after the bloc this month deemed them to not be cooperative on tax matters.

"We have to implement a series of coordinated measures at all levels of government," Foreign Minister Damdin Tsogtbaatar said in comments posted on Facebook on Tuesday, without mentioning specifics.

The foreign ministry verified the remarks to Reuters on Wednesday, but declined to provide details.

Tsogtbaatar said he discussed the issue last week with officials of each EU member nation at a ministerial meeting in Vienna of the Organisation for Security and Co-operation in Europe.

It is important that Mongolia comply with international standards for tax, said Dendevsambuu Onchinsuren, the country managing partner for tax accountancy Deloitte Onch in Ulaanbaatar, the capital.

"Mongolia needs to cooperate with the EU," Onchinsuren said. "Also it needs to improve its transparency."

In 2011, Mongolia took the rare step of cancelling a tax treaty with the Netherlands, saying it would cost the country income from the Oyu Tolgoi mine jointly owned by mining giant Rio Tinto and the Mongolian government.

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EBRD lends US$ 8 million to Mongolian pharmaceutical manufacturer www.ebrd.com

The EBRD is lending US$ 8 million to Monos Holding LLC – a holding company of Monos Group, a leading pharmaceutical conglomerate in Mongolia – to help the firm invest in new equipment to expand manufacturing capacity, develop training, and reorganise long-term capital financing to support its wholesale business.

The five-year loan will enable Monos Group to become more competitive, by supporting the certification of manufacturing capacity and improving employee skills through training. By the end of 2019 the firm aims to secure Good Manufacturing Practice (GMP) certification and to have at least 30 new employees who are trained regularly according to GMP standards.

The optimisation of the company’s balance sheet will support Monos Group – which is owned by Mr Luvsan Khurelbaatar, a prominent Mongolian businessman, and his wife and two children – in becoming more resilient.

Anand Khurelbaatar, CEO of Monos Holding, said: “Monos has been working successfully with the EBRD, which has provided substantial support to the development of Mongolia, since the first investment agreements were signed in 2010. We are happy that the first stage of the GMP production facility project, the largest project in the Mongolian pharmaceutical sector and implemented jointly by Monos and the EBRD, has been completed and that we are now proceeding with the signing of the second-phase investment. We would like to express our gratitude to the EBRD, not only for the financial support it has provided to us, but also for being a business advisor, partner and mentor. We hope that our cooperation with the EBRD will continue to expand.”

Irina Kravchenko, EBRD Associate Director, Head of Mongolia, said: “Monos is the Bank’s longstanding client and we are very pleased with the progress the company has made in expanding its activities and introducing best manufacturing practices in Mongolia’s pharmaceutical sector. We are happy to continue supporting the firm’s growth and believe that our support will help to further strengthen its competitiveness as well as contribute to the diversification of the local economy.”

The Bank is a leading institutional investor in Mongolia. To date the EBRD has invested more than €1.42 billion in over 92 projects in the country. Its investments aim to make the local economy more competitive, integrated and resilient. According to the EBRD’s latest regional economic forecast, published in November, the Mongolian economy will grow by 2.6 per cent this year and 3.0 per cent in 2018.

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Credit rating on MMC raised www.montsame.mn

Ulaanbaatar /MONTSAME/ Long-term credit rating on Mongolian Mining Corporation (ММС) or Energy Resources LLC raised to ‘B-’ from ‘D’ and revised to ‘Stable’ by S&P Global Ratings. In other words the company’s operation and financial condition has been evaluated positively.

In review which made by S&P says "We completed our review on MMC’s operation and capital structure. It is appreciated that coking coal price is expected to be stable for next 12 months and the company can meet cash flow from internal resource entirely at current condition and retain liquidity.

Currently credit rating on Mongolia is ‘В-/ В’. Corporate credit rating does not excess credit rating on the country and it associates certainly with each other. For that reason credit rating on MMC assigned to ‘B’, mentioned in the review as well.

Energy Resource LLC has successfully accomplished structural reform on credit in 2016.

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December 13, 2017 trading report www.mse.mn

On December 13, 2017, 854,159 shares of 22 firms listed as Tier I, II, and III were traded. 6 firms’ shares increased in price, 12 decreased and 4 remained unchanged. Khunnu Management /HBZ/ was the top performer, increasing 14.99 percent, whereas E-Trans Logistics JSC /ETR/ was the worst performer, decreasing 14.90 percent.

The MSE ALL Index decreased by 1.78 percent to stand at 1,200.94 points. The MSE market cap stands at MNT2,557,178,728,873

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Aspire Mining attracts $16.5 million to advance coking coal project in Mongolia www.proactiveinvestors.com.au

The company aims to take the Nuurstei Coking Coal Project into production within 18 months.

Aspire is starting a drilling and exploration program
Aspire Mining Ltd (ASX:AKM) has successfully completed its fully underwritten $16.5 million pro-rata renounceable entitlement offer at an issue price of $0.012 per share.

The funds will be used to expedite development of Aspire’s 90% owned Nuurstei Coking Coal Project in Mongolia.

Aspire aims to take the project into production within 18 months.

The company is now planning to undertake a drilling and exploration program at the Nuurstei project.

Rights issue details

Eligible shareholders had the opportunity to subscribe for six new shares for every five shares held at an issue price of $0.012 each.

The rights issue was fully underwritten by Patersons Securities Limited and sub-underwritten by the company’s major shareholder Noble Group (SGX:CGP).

Noble subscribed for the full amount of its entitlement (circa $2.97 million) and took up a further amount of $0.59 million on a priority sub-underwriting basis.

This takes Noble’s voting power in the company to 19.9% on an undiluted basis.

Drilling and exploration program commencing

Aspire has planned a $2 million drilling and exploration program at the Nuurstei Coking Coal Project.

The program aims to increase current resources and establish an ore reserve, which will then lead to a new resource model planned to be completed in the first quarter of 2018.

Capital costs for the development of Nuurstei have been further refined, with the current estimate of US$13 to US$14 million to be confirmed in the feasibility study process.

The end objective of these studies is to confirm an economically viable mining operation commencing within an estimated 18 month period.

David Paull, managing director, said: “Further to our announcement on Tuesday 5 December, we are pleased to have successfully raised the full amount of $16.5 million from the fully underwritten rights issue.

“The underwriting was supported by a strong panel of institutional sub-underwriters seeking to position themselves as shareholders and we welcome them in that capacity.

“Our focus is now squarely on confirming the feasibility and commencing the development of the Nuurstei Coking Coal Project.”

Debt reduction on track

Aspire intends to pay $0.19 million of the funds raised under the rights issue to Noble which, when combined with Noble’s participation in the rights issue, will result in a total reduction of $3.75 million in the amount owing to Noble.

This completes the first of a further series of transactions designed to reduce the existing US$6.65 million debt owing under the Noble Facility to US$1.8 million.

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Audit of Oyu Tolgoi and Erdenes TT planned www.news.mn

The Parliamentary Budgetary Standing Committee held a meeting on Tuesday (12 December) to discuss the draft 2018 audit bill.

According to the Mongolian National Audit Office, the institution is planning to audit to country’s biggest mining companies such as Oyu Tolgoi, Erdenes TT as well as the Governmental Vehicle Fleet, the Civil Aviation Authority, the Mineral Resources and Petroleum Authority, Presidential Election Spending, reports on implementing ASEM 2016-2017, the State Housing Corporation, and Ministry of Defence investment spending.

The projected cost of the audit as set out in the bill is over MNT 700 million.

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Mongolia and the US agree to intensify labor cooperation www.montsame.mn

Ulaanbaatar /MONTSAME/ Minister of Labor and Social Protection S.Chinzorig discussed Mongolia-US labor cooperation with Manual P.Micaller, Charge d’Affaires of the US Embassy in Mongolia on December 12.

The Minister talked about how the Mongolian Government considers eradication of poverty and unemployment a priority, and the International Monetary Fund’s Extended Fund Facility program is proving effective, citing the projected 5.5 percent economic growth in the country. “Although budget discipline has seen improvement, there are provisions that take a step back as far as social protection is concerned and rule out policy to protect low-income citizens,” he noted.

Minister S.Chinzorig also emphasized the need to take Mongolia-US cooperation in labor and social protection to a new level, requesting assistance from the Embassy. “Closer cooperation in labor and social protection will help protect the rights of Mongolians living and working in the US, ensure social guarantee and create an integrated database,” he said.

For his part, Mr. Micaller expressed the US’ interest to work closely with the Labor Ministry, informing that he was holding talks with the members of the new Cabinet regarding ways to strengthen Mongolia-US comprehensive partnership. “Improvement of population livelihood through diversification of the economy and increased employment is an important area of focus in bilateral cooperation. The US is ready to assist Mongolia in all areas in order for it to successfully implement the IMF program and revive its economy,” he said.

Mr. Micaller also touched upon the Millennium Challenge Corporation’s Second Compact Agreement with Mongolia, which is being drafted and will definitely boost the social and economic development of Mongolia.

The Charge d’Affaires also conveyed Washington’s appreciation of Mongolia’s contribution to peaceful resolution of the tensions in the Korean Peninsula and inquired into an issue regarding the workers from the Democratic People’s Republic of Korea (DPRK) in Mongolia, which has surfaced in western media.

Minister S.Chinzorig answered that the Government had taken a decision to not extend the labor agreements of over 1,100 workers from the DPRK in the country, enforcing a UN Security Council's resolution. Labor agreements will not be newly established either. “However, there is no discussion of returning all workers at once. The current workforce will have left the country by June, 2018,” the Minister said. During a press conference held on December 5, Minister of Foreign Affairs D.Tsogtbaatar said that the DPRK Ambassador in Mongolia had been informed of the matter.

The sides also touched upon Mongolia’s request for inclusion in the US H-2 visa category, which is yet to be resolved by Washington.

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Altai Krai continues to supply agricultural produce and products in Mongolia www.chelorg.com

Altai Krai in the 11 months of this year was sent to Mongolia 419 consignments with a total weight of almost 8.2 thousand tons, mostly agricultural products and food, said on Tuesday the Ministry of agriculture of the region.

According to the Ministry, collaboration between the Altai Krai and Mongolia is conducted on an ongoing basis. In 2017, this country, Altai Krai exported feed crops, whey, cereals and cereals cereal, flour, vegetable oil, eggs, ice cream and other kinds of agricultural products and food products.

«For 11 months in Mongolia sent 419 consignments with a total weight of almost 8242 tons. In great demand among foreign partners are feed the Altai production — bran, ration, feed. In the total sales volume they occupy a major share», — stated in the message.

The Agency notes that the agreement on the supply of feed to the affected this year by drought khovdsky aimag was reached in August of this year during a working meeting head of the region Alexander Karlin, Governor chodskeho aimag of Mongolia Damdin by Alcanzando.

In addition to the feed, food, Altai Krai exports crops. This year in the Mongolia ship food oats and millet, flax, canola, soy. In December, along with the designated products sold in the region Mongolia beef cattle productivity. Sale made two breeding farms of the region — «Industrial» Biysk district and Kolos Loktevsky district.

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Deputy Prime Minister discusses cooperation issues with Chinese delegation www.theubpost.mn

Deputy Prime Minister U.Enkhtuvshin participated in the fourth World Internet Conference, which was held in Beijing last week.

As a part of the conference, Minister U.Enkhtuvshin met with First Secretary of the Central Secretariat of the China’s Communist Party Wang Huning to discuss some aspects of mutual cooperation and current challenging issues of cooperation between the two countries.

U.Enktuvshin pointed out that the government of Mongolia is ready to closely cooperate with Chinese authorities to make next year’s meeting of the council of mineral resources, energy and infrastructure cooperation between the two countries mutually beneficial and to implement projects that will have significant impact on the two nations’ economic development.

The Deputy Prime Minister asked Huning to focus on accelerating projects that will be implemented with Chinese non-refundable aid and soft loans, as well as on arranging a meeting on the non-refundable aid of two billion CNY that China’s President Xi Jinping offered during his visit to Mongolia in 2014. The Mongolian side is keen to start negotiating about making amendments to an intergovernmental agreement on border checkpoints and their procedures signed by the two governments in 2004, and addressing the border issues regarding the slow passage of trucks carrying coal from Mongolia to China.

Huning stated that as China has outlined to carry out open relations and cooperation with the world’s countries, especially with neighbor countries under the country’s strategic plan created by China’s Communist Party during its 19th national congress, held from October 18 to 24, there will be new collaboration opportunities between the two countries.

The Chinese official stated that he hopes that the two nations will develop mutually beneficial economic cooperation, as well as humanitarian cooperation. He added that the two governments should work together to increase the current trade turnover of 4.6 billion USD between the two countries to 10 billion USD by 2020, but noted that it will depend on the global market.

He stressed, “When implementing projects and programs between the two countries, China abides by the statement by Xi Jinping that China will respect Mongolia’s stance and interests, but the two countries face challenges of cooperation due to some misunderstandings between our two nations.”

Huning said that state authorities in charge of border, customs, mining, export and import will work to address challenging issues between the two countries, and this matter will be discussed during the next meeting of China-Mongolia intergovernmental commission.

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