1 VOLKSWAGEN TO SPEND $50 BILLION ON ELECTRIC CAR 'OFFENSIVE' WWW.CNN.COM PUBLISHED:2018/11/19      2 HABITABILITY OF MONGOLIA UNDER THREAT FROM CLIMATE CHANGE WWW.ADELAIDENOW.COM.AU PUBLISHED:2018/11/19      3 THE SURPRISE FUEL FLOWS SPARKED BY A RAGING U.S.-CHINA TRADE WAR WWW.BLOOMBERG.COM PUBLISHED:2018/11/19      4 MONGOLIA’S COAL EXPORTS IN FIRST 10 MONTHS UP 10PC WWW.XINHUANET.COM PUBLISHED:2018/11/19      5 ABOUT 100 THOUSAND PASSENGERS PASSED THROUGH MONGOLIA-XINJIANG BORDER WWW.MONTSAME.MN PUBLISHED:2018/11/19      6 CHINA'S ‘ONE BELT, ONE ROAD’ GLOBAL INVESTMENT PLAN MAPPED OUT WWW.RT.COM PUBLISHED:2018/11/19      7 ASIA SUMMIT ENDS IN HISTORIC FAILURE WWW.CNN.COM PUBLISHED:2018/11/19      8 INAUGURATION OF SHERAB KYETSEL LING INSTITUTE WWW.DALAILAMA.COM PUBLISHED:2018/11/19      9 US-MONGOLIA 'THIRD NEIGHBOR TRADE ACT' ON THE WAY WWW.THEDIPLOMAT.COM PUBLISHED:2018/11/17      10 CHINA'S FIGHT AGAINST SMOG MAKES PALLADIUM 2018'S BEST METAL WWW.MINING.COM PUBLISHED:2018/11/17      БНХАУ-ЫН ОЛОН УЛСЫН ИМПОРТЫН ҮЗЭСГЭЛЭН БНХАУ-ОХУ-ЫН БИЗНЕСИЙН ХАРИЛЦААГ ӨРГӨЖҮҮЛЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/19     АМЧАМ МОНГОЛ 2018 ОНЫ ЖИЛИЙН ТАЙЛАНГИЙН ХУРЛАА АМЖИЛТТАЙ ЗОХИОН БАЙГУУЛЛАА WWW.IKON.MN НИЙТЭЛСЭН:2018/11/19     ЗЭСИЙН ЗАХ ЗЭЭЛД ЦОЙЛУУЛАХ ХАРМАГТАЙ WWW.DNN.MN НИЙТЭЛСЭН:2018/11/19     ГАШУУНСУХАЙТ АВТО ЗАМ ХХК: БЯМБА ГАРАГТ ГАШУУНСУХАЙТ-ГАНЦМОД БООМТООР НҮҮРС ТЭЭВРИЙН 99 АВТОМАШИН НЭВТЭРСЭН WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/19     НЭГ АЖИЛТАНД НОГДОХ ДНБ III УЛИРЛЫН БАЙДЛААР 3.7 САЯ ТӨГРӨГ БОЛЖ ӨСЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/19     ХЯТАДЫН ХЯЗГААРЛАЛТ $300-450 САЯЫГ ГАЦААНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/11/19     АЗЕРБАЙЖАН УЛС МАНАЙД ДАРС НИЙЛҮҮЛЭХЭЭР БОЛЛОО WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/19     ШУУДАН, ХАРИЛЦАА ХОЛБООНЫ САЛБАРЫН ОРЛОГО ОНЫ ЭХНИЙ 9 САРД 21.4 ХУВИАР ӨСӨВ WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/19     БНСУ-ЫН АЖ АХУЙН НЭГЖҮҮДИЙН АУТСОРСИНГ ЗАХИАЛГЫГ ГҮЙЦЭТГЭХ ЗАЛУУЧУУДЫГ СОНГОН, ШАЛГАРУУЛНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/17     НҮҮРСНИЙ ЭКСПОРТ 10 ХУВИАР ӨСӨЖ, 31.3 САЯ ТОНН БОЛОВ WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/17    

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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Tesla extended the battery life of its cars to help Florida residents flee Hurriance Irma www.weforum.org

Unlocking the full capabilities of a Tesla battery can cost thousands of dollars in extra fees—unless you’re trying to outrun Hurricane Irma.

After a customer trying to flee the storm contacted the automaker to ask for more power, the company began issuing free over-the-air upgrades to drivers in the state, Eletrek reports.

Some of Tesla’s Model X and S vehicles that were introduced in 2016 come with 75 kilowatt-hour batteries that are software-limited to only offer 60 or 70 kilowatt hours, capable of 200 to 230 miles per charge.

A Florida driver who received the free update to 75 kilowatt-hours on Sep. 10 posted a screenshot of the Tesla app that shows a range of 242 miles, according to The Verge.

According to an email Tesla sent to its customers, the company has sent the update to drivers across Florida, and will allow them to use the increased capacity until September 16.

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Preliminary Balance of Payments for August, 2017 www.mongolbank.mn

Current and capital account balance totaled to USD 328.7 million deficit, which is 44% and USD 260.6 million decrease compared to the same period last year. The change was mainly driven by USD 571.9 million decrease in deficit of goods and services account, resulting a surplus of USD 360.5 million.

Financial account totaled to a surplus of USD 649.2 million. In the first 8 months of last year, Mongolia had a net borrowing of USD 643.2 million from other countries, while this year the amount totaled to USD 649.2 million. Thus, the net external financing is decreased by USD 6.0 million.

As of August 2017, balance of payments aggregated a deficit of USD 215.4 million.

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Iron ore price resumes fall www.mining.com

On Friday, the bounce in the iron ore price at the start of the week proved to be of the proverbial dead cat variety. Worries about Chinese demand going into winter also turned September into the worst trading month for the steelmaking raw material since the rout of May last year.

The Steel Index benchmark price for Northern China 62% Fe ore sank by 1.9% to trade at $61.50 a tonne on Friday, a three-month low. Year-to-date iron ore has lost more than 20% of its value.

Chinese imports constitute around 70% of the seaborne trade and 2017 shipments are in line with record imports of over 1 billion tonnes last year. Higher imports have pushed hundreds of domestic Chinese producers out of business but high-grade supply from major producers in Australia, South Africa and Brazil continues to grow.

That explains why Beijing's announcement that it would revoke about a third or around 1,000 of the country's iron ore mining licences did little to boost the price. Most of that capacity was idle already.

China produces as much steel as the rest of the world combined and mills produced record tonnage for a second month straight in August. But the rapid growth is mainly in anticipation of mandated output cuts during winter months – as much as 50% in top steel producer province Hebei – in an effort to alleviate pollution problems in large cities.

"We think that local governments are likely to carry out the environmental cuts forcefully," Goldman Sachs analysts noted in a report this week. "The market has not fully priced the negative environmental restrictions on iron ore demand. Therefore, we expect iron ore prices to fall further going into Q4."
Stubbornly high port stocks are also clouding the outlook for the iron ore price. According to Umetal's survey of 42 ports in China, total port inventory stood at just under 134m tonnes on Friday up 1.66m tonnes for the week.

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Chinese Cos. Look To Revive Mining Claim Against Mongolia www.law360.com

New York (September 29, 2017, 5:11 PM EDT) -- A trio of Chinese companies asked a New York federal court on Thursday to revive their claim against Mongolia over the revocation of an iron ore mining license, arguing that an international tribunal wrongly interpreted an underlying treaty when it dismissed the arbitration.

The three companies — two of which are state-owned or connected to state-owned entities — told the court that the New York-seated Permanent Court of Arbitration tribunal erred when it dismissed their claim for lack of jurisdiction in June. The tribunal had concluded that it could not decide the question of whether Mongolia had expropriated their investment in a joint venture that held a license to mine the vast Tumurtei iron ore deposit.

In fact, the tribunal found, the relevant treaty between China and Mongolia required that the latter country's national courts had to first declare whether there had actually been an expropriation before an arbitration could be initiated, or the Mongolian government had to admit an expropriation had occurred. But the Chinese companies argued that the question of whether Mongolia expropriated their investment has to be resolved in arbitration and that any other result would be illogical.

"Among the central purposes of [bilateral investment treaties] is to afford to investors the certainty of access to an impartial tribunal other than the national courts of one of the contracting states," according to the petition. "The award deprives petitioners of one of the essential benefits to which they were entitled. For that reason, together with the texts of the relevant treaties, the clear majority of other tribunals have reached the contrary conclusion under similar BITs."

The companies, China Heilongjiang International Economic & Technical Cooperative Corp., Beijing Shougang Mining Investment Co. Ltd. and Qinhuangdaoshi Qinlong International Industrial Co. Ltd., told the court that every other tribunal to address this question under other BITs involving China has rejected the narrow interpretation adopted by the tribunal that dismissed their claim.

They argued Thursday that the court in this instance has the power to determine whether the dispute can be resolved through arbitration because the relevant treaty does not specifically empower the arbitrators to decide on arbitrability. Indeed, the treaty did not mention the question of arbitrability, according to the suit.

Attorneys for the plaintiffs did not immediately respond to a request for comment on Friday. Representatives for Mongolia could not immediately be reached for comment.

The three plaintiff companies had held a 70 percent interest in a Mongolian joint venture called Tumturei Ltd., which held a license to exploit certain iron ore deposits in Mongolia. Production began in 2006, at which time exports to China commenced.

But a new government came to power in Mongolia that same year. As the price of iron ore began to climb, the new Mongolian government began trying to find a way to take back this now much more valuable concession, according to the complaint.

Ultimately, the license was revoked after the Mongolian government concluded that the license properly belonged to a state-owned enterprise called the Darkhan Metallurgical Plant, the Chinese companies claim.

The Chinese companies initiated arbitration in 2010, and the tribunal issued its award on June 30, concluding that it could only have jurisdiction if Mongolia admitted that it had expropriated the investment. Only then could the tribunal have jurisdiction over the claim, and only to decide how much the Chinese companies were owed for the expropriation, according to Thursday's complaint.

That tribunal was led by former International Court of Justice President Peter Tomka along with the claimant's appointee, Shearman & Sterling LLP partner Yas Banifatemi, and Mongolia's appointee, Foley Hoag partner Mark Clodfelter.

The plaintiffs are represented by Michael A. Granne, S. Christopher Provenzano and J.J Gass of Miller & Wrubel PC.

Counsel information for Mongolia wasn't available on Friday, but the country was represented in the arbitration by Gungaa Bayasgalan, state secretary of the country's Ministry of Justice, and by Michael D. Nolan, Elitza Popova-Talty and Kamel Aitelaj of Milbank Tweed Hadley & McCloy LLP.

The case is Beijing Shougang Mining Investment Company, Ltd. et al v. Mongolia, case number 1:17-cv-07436 in the U.S. District Court for the Southern District of New York.

--Editing by Kelly Duncan.

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China hopes for progress in ties with Mongolia www.xinhuanet.com

BEIJING, Sept. 29 (Xinhua) -- China said Friday that it will advance bilateral ties and synergize development strategies with Mongolia.
The upbeat tone echoed Mongolian President Khaltmaa Battulga's congratulations to his counterpart Xi Jinping on the 68th anniversary of the People's Republic of China, which falls on Sunday.
"We have received congratulations from many world leaders, including President Battulga, and we thank them for that," Foreign Ministry spokesperson Lu Kang said at a regular news briefing.
"China and Mongolia are friendly neighbors, and China has always attached importance to bilateral relations," Lu said.
China will work with Mongolia to increase mutual trust while respecting each other's core interests and major concerns, synergizing development strategies, and pushing forward practical cooperation and people-to-people exchanges, Lu said.
President Battulga said he looks forward to the continuous development of bilateral relations, expressing appreciation for China's assistance in Mongolia's development, according to Lu.

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September 28, 2017 trading report www.mse.mn

On September 28, 2017, 72,958 shares worth MNT 84,710,790 of 23 firms listed as Tier I, II, and III were traded. 6 firms’ shares increased, 14 decreased in price and 2 remained unchanged. Arig gal JSC was the top performer, increasing 13.03 percent, whereas Moninjbar JSC was the worst performer, decreasing 14.45 percent.

On the secondary market for government securities, 1,018 bonds worth MNT 100,967,460 were traded.

The MSE ALL Index rose 0.5 percent to stand at 1059.32. The MSE market cap stands at MNT 2,076,491,897,158 .

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Europe's Biggest Fund Manager Expects Higher Interest Rates to Spread www.bloomberg.com

Regardless of central bankers’ assurances, higher interest rates are set to spread in Europe, according to its biggest fund manager.

Sergei Strigo, the London-based head of emerging-market debt at Amundi Asset Management, is betting that central-bank rates in east Europe’s biggest economies are more likely to follow the Czech National Bank than the European Central Bank on the path toward tighter policy.

Strigo, whose firm oversees 1.3 trillion euros ($1.5 trillion), has been paring positions in the region’s government debt since 2016 based on his view that central bankers will move to raise rates before the European Central Bank eventually does. He’s betting rate setters in Poland and Hungary will have to abandon pledges to keep borrowing costs at record-low levels until as late as 2019 as their economies heat up.

“Going into next year we see these central banks thinking about interest rate hikes as inflationary pressures build up and growth surprises on the upside,” said Strigo. His Global Emerging Local Currency fund has outperformed 92 percent of peers this year with gains of 15 percent.

With growth gathering pace and consumption on the rise, a growing chorus of investors are seeing a surge in wages feeding through to inflation in the region battered by a labor shortage. Strigo says he’s keeping bond duration lower than the benchmark and using interest-rate swaps to hedge against the possible increases.

The Czech National Bank, which delivered Europe’s first rate hike in August, is debating the timing for its next move to tighten as faster-than-expected economic growth and a shortage of workers drive up salaries and prices. Policy makers voted four to three to keep the benchmark rate at 0.25 percent on Wednesday.

Bernhard Matthes, a fund manager at Bank fuer Kirche und Caritas eG in Paderborn, Germany, said he anticipates another Czech rate increase before the end of the year. Poland may follow next year and Hungary later, he said.

“It’s really running hot in the Czech economy, so it’s perfectly appropriate to tighten monetary policy,” he said. Inflation doesn’t pose a similar threat to Poland or Hungary, he said.

Currency markets are painting a similar picture: in the past six months, the Czech koruna has topped all emerging-market peers against the dollar and it’s the only currency to have outperformed the euro. Hungary’s forint and the Polish zloty rank third and fourth.

While the euro zone is poised for the fastest economic expansion in a decade and unemployment is falling, inflation continues to fall short of the ECB’s goal of just under 2 percent. ECB President Mario Draghi is expected to start tapering his asset-purchase program in January and is unlikely to begin increasing rates before the fourth quarter of 2018, trading in the futures market shows.

Eastern Europe’s central banks will probably move earlier than their euro-zone counterpart, Matthes said.

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Mongolian President and ADB Country Director discuss partnership www.akipress.com

The Asian Development Bank’s (ADB) Country Director in Mongolia, Yolanda Fernandez Lommen, last week paid a courtesy call to the President of Mongolia, Battulga Khaltmaa, to discuss ADB’s partnership with the country and planned operations, ADB said on Thursday. 

Ms. Fernandez Lommen extended her congratulations to the President on his appointment and presented him with a copy of the recently published ADB 50th anniversary history book, Banking on the Future of Asia and the Pacific: 50 Years of the Asian Development Bank.

She introduced ADB’s new Country Partnership Strategy, 2017-2020, for Mongolia that will guide ADB’s future investments, policy reform support, capacity building, and knowledge sharing in the country. Support will focus on three core pillars of activity. The first pillar is economic and social stability, a major part of which is to support macroeconomic stability while maintaining progress on social development. The second pillar is infrastructure for economic diversification, and the third pillar is strengthening environmental sustainability.

“Our jointly planned operations will foster economic diversification, job creation, and increase the efficiency and delivery of social services,” Ms. Fernandez Lommen said. “To that end, support will be provided to projects that support small- and medium-sized enterprises, in particular, agribusiness; infrastructure that promotes connectivity to facilitate access of Mongolia’s exports to external markets; urban development; and the construction of new schools and modern hospitals, among others. ADB and the Government of Mongolia will also pioneer a project to provide persons with disabilities with skills to integrate themselves in the labor market.”

Recalling his cooperation with ADB as a former Minister of Road and Transport, President Battulga emphasized the improvement of access to remote provinces from the capital city achieved with the assistance of ADB support to road sector projects. Noting that ADB’s continuous assistance is helping Mongolia sustain inclusive growth in a period of economic difficulty, the President expressed his appreciation for ADB’s 26-year engagement in the country.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2016, ADB assistance totaled $31.7 billion, including $14 billion in cofinancing.

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Chinese carmaker to take $28 million stake in Australian lithium company www.mining.com

Great Wall will be involved in what seems to be the first direct investment in a lithium supplier by an automaker.

The Chinese company announced that it will take a $28 million stake in Pilbara Minerals. The move is part of an off-take tie-up aimed at supporting the proposed expansion of the lithium and tantalum project the Australian miner owns at Pilgangoora, 120km east of Port Hedland.

Under this agreement, Great Wall will take between 75,000 tonnes and 150,000 tonnes of spodumene concentrate from Pilbara, subject to the $100 million-plus stage 2 development of the project getting the go-ahead.

Great Wall's investment replaces a $17.75 million deal with General Lithium that, according to Pilbara, could not be sealed due to “regulatory constraints” in China.

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Funds flow in for Xanadu www.miningnews.net

It is claimed the company was only seeking about $10 million, but upped the number to $15 million on account of the strong interest out of North America.

The funding comes after Xanadu managing director Andrew Stewart spent last week at a gold conference at Beaver Creek.

The raising was priced at 20c per share, reflecting the strong interest.

Xanadu has been having ongoing success with large scale epithermal and porphyry prospects in Mongolia.

Shares were up 5% to 21c in midday trade, capitalising the company at $107 million.

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