|Frontier's "Invest Mongolia Tokyo 2018"||Frontier Securities||Tokyo Japan|
|"Open to Export" ICC WTO International business award||ICC WTO||London|
U.S. shale oil will prevail over OPEC as the two rivals compete in an oversupplied world market, Citigroup Inc.’s head of research said.
The Organization of Petroleum Exporting Countries and its allies may have boosted oil prices by cutting production, but they’re losing revenue in the process and their position “is not sustainable over a long period,” Citigroup’s Ed Morse said in a Bloomberg television interview on Tuesday. On the other hand, U.S. shale drillers have adapted to survive prices as low as $40, he said.
“In the end, the markets are going to win, and it’s going to be shale,” Morse said. “If we’re in a $40 to $45 world, we’ll have enough drilling to add to the surplus in the world as a whole.”
Oil prices have lost 12 percent in London this year, trading near $50 a barrel, as output curbs by OPEC, Russia and other partners fail to drain a global surplus. U.S. shale explorers have boosted drilling and are poised to reach a record output next month, plugging some of the gap left by OPEC’s cutbacks.
The steadiness of crude prices on the forward curve at about $50 a barrel suggests that U.S. oil producers are active in using futures contracts to lock in -- or “hedge” -- their output for this year and next, according to Morse.
Despite some weaker guidance from operators, the oil-rich Permian Basin “is going to grow at a hefty rate this year, and probably the same rate next year,” he said.
SINGAPORE - Singapore stands ready to partner China to jointly build the Belt and Road Initiative, Singapore's Minister for National Development and Second Minister for Finance Lawrence Wong said on Tuesday.
Wong told the Singapore Regional Business Forum that Singapore and China have agreed to carry on cooperation in three areas for the building of the Belt and Road - infrastructure connectivity, financing of Belt and Road projects, and cooperation of companies of the two sides for doing projects in third countries.
He said the infrastructure connectivity is being operationalized through the China-Singapore (Chongqing) Connectivity Initiative (CCI).
Both sides are now working to jointly develop the CCI Southern Transport Corridor that will link western China to Southeast Asia through Chongqing, a municipality in western China and Singapore, and connect the overland Silk Road Economic Belt with the 21st Century Maritime Silk Road.
The corridor is expected to offer a shorter and more direct trade route between western China and Southeast Asia, and will lower logistics costs, enhance cross-border trade flows, and catalyze the economic development of both regions, in particular the provinces along the corridor, said the minister.
He said Chongqing and Singapore can be the two hubs in Asia, linking up the Belt and Road, and enlarging the possibilities for connectivity across western China and Southeast Asia.
Speaking of the financing of Belt and Road projects, Wong said there are large infrastructure gaps in Asia, and Singapore, as a major center for the financing of infrastructure projects in Southeast Asia, can play a role in it.
He said 60 percent of projects in Southeast Asia enjoy project finance and advisory services from Singapore-based banks, and Chinese banks in Singapore are also expanding their presence and doing more to finance Belt and Road projects.
"Beyond financing, we are home to a full suite of high-quality professional services that are necessary to bring infrastructure projects into being, including project advisory, dispute resolution, and legal services," he added.
Wong said Singapore also wants to encourage Singaporean and Chinese companies to forge partnerships and do projects together in third countries, as well as work together on human resource development in countries along the Belt and Road.
He said Singaporean companies are natural partners for Chinese companies in expanding to the region, as Singaporean companies have good market knowledge of Southeast Asia and can do engineering design and master-planning, project management, financing, logistics and servicing.
Shares of Mongolia Growth Group Ltd (MNGGF) are nearing some key technical levels as the Rank Correlation indicator has trending higher over the past few sessions, nearing potential overbought territory. Crossing the 80 mark would suggest that a chance of a reversal is increasing.
The Rank Correlation Index (RCI) is based on an analysis algorithm by Charles Spearman. It uses a combination of price change data and time change data to identify potential changes in market sentiment, thereby exposing turning points. Zero crossings are seen as buy and sell signals, with tops and bottoms yielding overbought and oversold information.
While traders are taking a second look at how shares of Mongolia Growth Group Ltd (MNGGF) have been performing lately, we can examine some additional key indicators. A favorite tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock. Currently, the 200-day MA is sitting at 0.27, and the 50-day is 0.28.
The 14-day ADX for Mongolia Growth Group Ltd (MNGGF) is currently at 31.59. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend. Checking in on some other technical levels, the 14-day RSI is currently at 54.32, the 7-day stands at 59.59, and the 3-day is sitting at 76.63. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings.
At the time of writing, Mongolia Growth Group Ltd (MNGGF) has a 14-day Commodity Channel Index (CCI) of 17.59. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. CCI generally measures the current price relative to the average price level over a specific time period. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average. Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Mongolia Growth Group Ltd (MNGGF)’s Williams %R presently stands at -20.00. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation....
Russia hopes to further strengthen military and military-technical cooperation with Mongolia, said the Russian defense Minister Sergei Shoigu at the meeting with Mongolian counterpart Padmanabhapuram bat-Erdene.
“Mongolia regularly participates in the Military games, and it certainly contributes to further strengthening of friendly and good-neighborly relations between our military. And it can not but rejoice,” — said Shoigu.
The Minister recalled the adoption of a programme of long-term cooperation between the two countries in military and military-technical spheres, as well as the continued implementation of previous plans.
“This programme of preparation and training of Mongolian specialists in our schools. This program of joint exercises and, of course, programs of military— tehnicheskogo cooperation,” Shoigu listed. He noted that the intensity of interaction between Moscow and Ulan Bator is the fact that the heads of departments meet for the second time in two months.
The Mongolian Minister expressed gratitude for the invitation of the military of the Asian country at the international Military games. “Our government attaches great importance to the relations with Russia, and pursuing a consistent development policy established with Russia strategic partnership” , — said bat-Erdene.
International military games that started on July 29, ends August 12. In total in competitions on the territory of the five countries involved teams from 28 States.
Ulaanbaatar /MONTSAME/ A signing ceremony of the Canada Fund for Local Initiatives (CFLI) project took place at Embassy of Canada located on the 6th floor of Central Tower yesterday on August 15. The project was officially commenced as Canadian Ambassador Ed Jager along with the implementing NGOs and civil society organizations signed it.
The Canada Fund has been operating since 1997 in Mongolia, contributing significantly to the development of Mongolia’s economy, culture and society for the past 20 years. During this time, the Canada Fund has provided grants in over 240 soums of 21 aimags through over 400 projects worth CAD 6 million.
From over 750 project proposals sent to the Canada Fund for Local Initiatives for 2017-2018, 13 projects in Ulaanbaatar, Bulgan and Uvurkhangai has been selected to be granted CAD 175 thousand. The selected projects include projects, such as installment of medical equipments in the HIV/AIDS/STI diagnostic center of National Center for Communicable Diseases, “Opportunities of Hiring Intellectually Disabled People for Personal Assistance” project implementing by “Tugeemel Hugjil” /Universal Development/.
The CFLI program has been implemented in over a hundred developing countries to empower gender equality; to promote human development, specifically in the areas of health, nutrition and education; to champion human rights, inclusive and accountable governance, democracy, peaceful pluralism, and respect for diversity; to support inclusive and green economic growth; to promote action on the environment, including water and climate change; to promote peace and security.
ULAANBAATAR, Aug 15 (Reuters) - Mongolia's economic growth accelerated sharply in the first half of 2017, the government said, helped by a revived coal market and a bailout package led by the International Monetary Fund.
The country's gross domestic product (GDP) expanded 5.3 percent from a year earlier, to 12.8 trillion tugrik ($5.26 billion), the National Statistics Office said on Tuesday.
In the first quarter, Mongolia reported 4.2 percent annual growth. For all of 2016, the economy expanded only 1 percent, the slowest pace in seven years.
The northeast Asian country's economy has improved since an agreement in May for a $5.5 billion economic rescue package from the IMF and partners helped prevent defaults on sovereign loans and bolstered the flagging currency.
The coal industry in Mongolia has also seen a boon from a Chinese ban on coal from North Korea and curbs on deliveries into smaller ports.
Coal exports grew more than four times from January through July compared with the same period last year, to $1.4 billion. Mongolia sold 97 percent of its coal to China, with the remainder going to Russia and the United Kingdom.
Copper exports in the first seven months this year fell by 14.3 percent to $888.75 million, the statistics office reported.
Mongolian President Khaltmaa Battulga, who was sworn in July, on Monday met with a council of business leaders to discuss how he plans to run the country alongside a parliament and cabinet run by an opposing political party.
"The business environment should be expanded, and I will work in collaboration with the government on this," said Battulga, according to a summary of the event from the Business Council of Mongolia (BCM) on Tuesday.
$1 = 2,433 tugrik Reporting by Terrence Edwards; Editing by John Ruwitch and Richard Borsuk
US regulatory filings show George Soros is still investing in options that will profit him only if the stock market they are linked to declines in value.
Soros Fund Management held put options on PowerShares QQQ Trust, SPDR S&P 500 ETF, iShares Russell 2000 ETF as of June 30. Each is an exchange-traded fund that tracks a broad US stock market index. The bet is worth $1.8 billion. Soros stands to profit only if the stock market falls.
Michael Vachon, a spokesman for Soros Fund Management, said the company would not comment on the filing.
In January, Soros said "it's impossible to predict" US President Donald Trump's actions, but he was nonetheless sure the market would plunge.
Soon after the election, Soros lost over $1 billion by taking a short position on the market. While Soros called Trump a "would-be dictator," and predicted uncertainty and a sell-off after his win, the markets have rallied significantly.
The US S&P500 index is up over 10 percent this year, the Nasdaq is up 18 percent, and Dow Jones is up over 11 percent.
Soros is best known for making a fortune on his short play against the British pound. On 16 September 1992, Soros' $10 billion short position on the pound forced the Bank of England to withdraw Sterling from the European Exchange Rate Mechanism (ERM) after it was unable to keep the currency above its agreed lower limit in the ERM.
Copper has been one of the best-performing commodities of the last few months. With the red metal up over 15 percent since late May, to a current $2.88 per pound.
And that price action is spurring some important project activity. Including a little-noticed, but critical move this week from the world’s largest copper mining company.
That’s Chile state mining firm Codelco. Which said it is preparing an entry into a new and far-afield jurisdiction, in pursuit of new copper reserves.
In an interview Friday with Reuters, CEO Nelson Pizarro said that Codelco is “preparing” to invest in Mongolia copper projects. With Pizarro noting the country holds significant untapped potential for new developments.
Pizarro further suggested that Codelco will be looking for development-stage projects. Which he described as “medium-term” investments — likely meaning Codelco will take a role in proving up and developing new mineral resources here ahead of putting them into production.
That approach makes sense, given that Mongolia currently has only a few advanced copper mining projects. Led by the massive Oyu Tolgoi deposit being mined by Rio Tinto through the former Ivanhoe Mines vehicle, Turquoise Hill.
But mines like that demonstrate Mongolia’s big potential. With Oyu Tolgoi currently containing an appraised 23.5 million tonnes of contained copper metal, along with 36 million ounces of gold.
Here’s the most critical part: this move would be an incredible step-out for Codelco. Up until now, the copper major has been exclusively focused on mining in Chile and exploring in nearby Latin America — with projects in Brazil and Ecuador.
The fact that management is willing to leap from South America to Mongolia shows they see something big in the geology here — a major endorsement for the country, which has struggled lately to attract mining investment.
Mongolia’s government is trying to change that. Just last week, regulators kicked off a new bid round for mineral projects — which may be where Codelco is planning to pick up new licenses.
Watch for confirmation of Codelco’s entry into this high-potential nation. If the move does materialize, it could signal a new wave of project activity coming here.
Here’s to taking a leap.
By Dave Forest
Recap of the BCM Special Monthly Meeting in August with President Battulga Khaltmaa www.bcmongolia.org
Business Council of Mongolia organizes President Battulga Khaltmaa's first meeting with investors
BCM's special monthly meeting was held on Monday, 14 August 2017 at the Blue Sky Hotel, with over 300 international investors, business leaders, as well as Ambassadors, diplomats, and dignitaries. International attendees included a significant number of Chinese and Russian investors and business representatives.
Upon the invitation of the Business Council of Mongolia, the guest of honor President of Mongolia Battulga Khaltmaa attended the meeting and held a candid discussion during his first meeting with a large number of international and local investors and business leaders since his inauguration a little over a month ago.
Introduction of President Battulga Khaltmaa by CEO of Erdenes Mongol Ts.Tumentsogt
Battulga was born in 1963 in Ulaanbaatar
1978: graduated high school from State School No. 34
1982: Graduated from School of Fine Arts
1982-86: Worked as an artist at the Union of Mongolian artists
1983-89: Participated in a variety of different international sports competitions, earning Mongolia 2 gold, 2 silver and 2 bronze medals in the discipline of sambo as well as judo.
1992-97: Director of Genco LLC
1997-98: Director of Bayangol Hotel
2000-04: CEO of Makh Impex
Prior to establishing Genco, Battulga imported electronics and equipment from Singapore to sell in Mongolia.
Was elected as an MP three times
2004-2008: Was the Chairman of the Human Rights Subcommittee
2008-2012: Was also the Ministry of Roads, Transportation, Construction and Urban Development
2012-2016: MP, as well as Minister of Agriculture and Industry from 2012-2014
2006: President of the National Judo Association and also Representative of Asia at the Policy Committee of the International Judo Federation
From 2009, Head of the Mongolian Democratic Union
Current member of the Democratic Party’s National Policy Committee
President of the Mongolian Union of Herders
President of the Mongolian Bodybuilding and Fitness Association
Battulga has been awarded various athletic honors, such as the “State Honored Athlete” medal of Mongolia and the Golden Star award by the International Judo Federation.
During his tenure as President of the Mongolian Judo Federation, Mongolia’s very first Olympic Gold Medal was earned by judoka N.Tuvshinbayar in 2008
Battulga has initiated and was involved in various economic and social development projects, such as the Genghis Khan Equestrian Statue Complex, Sunny Bridge (Нарны гүүр), Mt. Bogd Road, Coal liquification plant, Sainshand Industrial Park, Altanbulag port, connecting all provincial capitals with the capital via paved roads, etc.
Main points from the speech by the President
I would like to thank the Business Council of Mongolia for hosting this event, my first with the international community of investors and business leaders.
BCM and other non-profit organizations have a big role to play in voicing their interests to the state.
It has been 34 days since my inauguration as president and this is the first event with the business community.
I believe you all have your own ideas for improving the legal and investment environment
The recent election highlighted the wishes of the business community for greater stability and opportunities
On foreign policy
In terms of foreign policy, there are many ideas being talked about, but it is important to ensure a unified foreign policy.
I want to underline that there is a single, unified foreign policy – not contradictory policies of one ministry, the president, or other political entities.
As the President, I will maintain the same foreign policy as the government.
The business environment should be expanded, and I will work in collaboration with the government on this
Since the democratic revolution, I have worked as a sole proprietor up to major industrial companies – I am of one mindset with entrepreneurs
I was an MP three times, and worked in the Cabinet in two of those terms
Minister of Road and Transportation for four years from 2008-2012, during which the blueprints for roads connecting 21 provincial centers was developed with support from the ADB.
There is currently blueprint for a 1,100 km road connecting Zamiin-Uud and Altanbulag, which can be a major transit transport corridor to connect China and Russia. This will facilitate trade. I mention this because it is important for businessmen to know that such projects are ready to be implemented.
Another major project concerns railways. As a landlocked country between two big neighbors, in order to ensure the development of the economy, in 2010 we got approval for a railway project. It reflects 460 km in the first stage, 1,800 km in the second stage, and the third and final comprises 5,000 km of railway along three longitudinal corridors connecting Russia and China. The blueprint for 1,800 km of this has been developed by the company McKinsey.
In terms of aviation development, the policies have been instituted, so we will now leave it to business.
On other infrastructure
We have started work on re-development of provincial centers
As for housing, a 100,000-apartment complex and the Maidar City project are ready for investment. The Maidar City project’s blueprints have been designed by a German company; the city is planned to be developed close to Ulaanbaatar, capable of hosting 400,000 people.
The agricultural sector has become a forgotten industry
We boast 60 million heads of livestock, but we cannot effectively sell and export meat, hides, wool, cashmere, etc.
I intend to, together with the government, to elevate and pay greater attention to this sector.
Every year, we export up to 10 million pieces of skin and hide as unprocessed goods, with no value added.
The same applies to cashmere; even though the country is a major cashmere industry (30% of global raw cashmere production), there has been little policy support. As such, we have another project ready to go. Feasibilities studies for a factory which processes hides and skins and exports to Europe have been conducted by a Spanish company. This project is worth USD 300-400 million and can export up to 10 million hides to Europe per year.
I want to reiterate my commitment to working with the government to creating a stabile business environment. The business community today is restricted by oligarchs.
Question and Answer segment
Byambasaikhan, Chairman of BCM: Today we invited not only BCM members, but also major Chinese and Russian companies and officials. Taxes are a sticking point for any business. Mongolia’s tax system does not follow international standards. This inconsistency hinders investment, so what is your stance on this issue?
Poverty and unemployment has reached disastrous levels in Mongolia. This contributes to the weakness in FDI. There is also insufficient support for domestic investors as well. In order to support foreign and domestic investment, the tax regime must be stable and clear. We have spoken about improving investment for many years, and this is due to the inconsistencies. Hence, we must work together with the business community to fix these inconsistencies.
There are many MPs and officials who are former business people. They would understand the issues, and can raise the issues.
The Mongolian National Chamber of Commerce should play this role, and the Chamber must be non-partisan.
Anton Prosekin, Head of the Investment and Development Agency of Irkutsk Oblast (Russia): Mr. President you stated last week in an interview on Mongolian National Broadcaster that one of the key issues of trade relations with neighboring countries is customs tariffs. We agree with you on this. There are two ways of addressing this issue: by taking slow steps or by solving the very core of the problem. In relation to this, there are free trade initiatives underway in the Eurasian region. Mongolia itself has the “Steppe Road” initiative, which can be harmonized with China’s One Belt, One Road project. What are your thoughts on this?
President: We neighbor two major economic powers. As a businessman, I see that we are unable to export value-added products to our neighbors. One reason has to do with customs tariffs.
In my interview I referred to issues in reducing barriers to trade, perhaps not by removing tariffs completely, but by having a favorable (low) tariff system.
In terms of Mongolia joining a Eurasian customs union, Mongolia’s stance is being studied at various levels. An update will be issues on this matter after consultation with the Ministry of Foreign Affairs and other related agencies.
Yan Xiao Chi, Head of the Zhun-hua Association, an association for Chinese investors in Mongolia: What are your thoughts on Mongolia’s macro-economic situation? Has a recovery started? If not, when do you expect it to start?
I have to say that at the moment, we lack a major economic theme or agenda. The business environment is still restricted. Our economy has not worsened and it has not recovered. The business environment, in my opinion, has been in stagnation for the past 20 years. They say Mongolia’s economy is improving when the price of coal rises, and they say the economy is declining when the price of coal falls.
So my answer to you is that there is a lack of a macroeconomic theme. Hence, the economy hasn’t improved or degraded; it just linked to the price of coal.
I think the message of the election was to restore the economy, and for this reason I am here with you.
Representative from Mongol Group: I would like to inquire about your itinerary for your first foreign trip?
The itinerary is still in discussion, but will begin with our two neighbors.
September 4-8, the heads of state from Asia-Pacific countries will attend a forum in Vladivostok, accompanied by members of the business community. Registration is still open with the President’s Office.
Mergen, Executive Director of BCM: What are your thoughts on China’s One Belt, One Road initiative?
I have only very general information on this major initiative that will link Asia and Europe.
I don’t recall the exact figures, but we have a small stake in the Asian Infrastructure Investment Bank, through which financing for the OBOR is being provided.
Implementation of infrastructure development determines many things for a country. Infrastructure projects create jobs.
As for Mongolia’s involvement in the initiative, we must study the opportunities.
However, I believe it would be more immediately beneficial to businesses if we were to improve connection to the East Asian markets of South Korea, China, and Japan. These account for 30% of the local economy.
I have many thoughts on this particular issue, but perhaps it is not the time for such detailed discussion. Perhaps if we had a map.
Question from Masa Igata, Director of Frontier Securities: You mentioned that Mongolia will have a unified foreign policy. Recently, you appointed Asashoryu to improve relations with Japan? Does that overlap with the duties of the Ambassador?
Second question: Regarding the topic of constitutional amendments, in which areas do you think constitution could be amended? What are your thoughts on the powers of the President?
Foreign policy is directly related to foreign investment. Asashoryu is the first Mongolian grand champion of sumo and has a very special standing. My appointment of him to Japan will not overlap with the Ambassador. Presidents have personal advisors and counselors. I myself was a counselor.
As for the constitution, 25 years has passed since the current constitution was ratified. Today we met with the official heading the work on constitutional amendment. The answer to your question can actually be found on president.mn. This is a matter of principle, will the majority party push amendments for powers and positions, or will it be for real empowerment of the citizens.
Batlkham, representing MonOros company: How much information do you have on the Asian Super Grid project? Talks are underway for exporting renewable energy to Japan, how aware of you about these topics?
Energy is a crucial topic. Mongolia is a sunny country, which has a high number of sunny days per year. Wind energy is also being talked about it. We had a very interesting discussion with a US-Spanish joint venture. Renewable energy is a topic we must support.
Export aspirations depend on where we are talking about. China and Russia want to export energy. Japan of course is dependent on nuclear and thermal energy. Thermal accounts for about 30 percent of energy generation there.
Exports are a more intricate issue, which we can have a more detailed discussion later on.
There are regions of Mongolia where it is sunny for 280 or 290 days per year.
Burmaa, from a real estate company: There is a great inconsistency and overlap in the tax environment. We are willing to pay taxes, but in a fair way. Furthermore, there are unclear tax penalties that are slapped on companies by tax inspectors, who seem to pull numbers out of thin air. What should be done about this?
Second question: What is your vision regarding the knowledge economy? For example, the skins and hides having a low value right now. It seems entirely possible to create value-added products.
The real estate market is still in stagnation and I suspect that you face many challenges. You refer to tax inspectors subjectively imposing penalties; however, they have a duty to perform. If fiscal issues are resolved, I hope such problems can be corrected by that. But I agree with you that taxes must be fair for companies. We must expand our tax base so that not only a few companies take on a greater tax burden.
As for agriculture, the cost of a piece of raw hide is only MNT 600. A bowl of instant noodles cost MNT 1,500 – almost three times more than that valuable raw material.
Regarding one of the projects in preparation I mentioned earlier with the Spanish tannery, we have completed a feasibility study where one piece of raw hide can be processed to have USD 300 of added value. You can imagine the economic benefit and value that can be retained if 10 million hides can be processed and USD 300 of added value.
Steve from the Canadian Embassy: As an athlete, how does the sports sector fit into your plans? How about infrastructure for sports?
Mongolia is a country with a long history of nomadic culture. The nomadic heritage helps Mongolians to be adaptive in any environment.
Of course, sports is very close to my heart. Sports and culture can bring people closer than perhaps diplomacy can.
I met with representatives from the Canadian Embassy, and a discussion took place. Perhaps Mongolia can support Canada in wrestling, and Canada can support Mongolia in hockey. Considering Mongolia’s climate, I think we can make strides in ice hockey. We are familiar with harsh winters, but our winter sports sector has much room for development.
We must also support sports development in the provinces and rural areas. The support of the diplomatic corps is certainly welcome in this area.
That leads me to Asashoryu, who was the very first non-Japanese yokozuna (grand champion). This shows that sports can be a great bridge between cultures.
As for sports infrastructure, I am committed to this issue and I would like your support.
Erdenebaatar, International Mining Consulting: You did not talk so much about one key sector, which is mining. You made good on other sectors, but we cannot forgot the mining sector. What is your policy stance on attracting foreign investment into mining, especially since we scared away investors and made them afraid of investing in Mongolia?
I will support mining and investment into mining. One thing I must emphasize is that the investment needs to be based on global standard technology and global standard contracts. The mining sector is the subject of great concerns and reservations, given the amount of money involved. Due to the power of the mining industry, the luring of politicians or bribing of politicians is something we have to be very careful of.
Again, it is important that the best international standards are utilized in this sector.
Investment will be supported, and the reflection of this is the investment forums supported by the government.
Closing words by Ts.Tumentsogt, CEO of Erdenes Mongol
Let me give a brief introduction on the Business Council of Mongolia, which was established in 2007 to support a transparent, vibrant business community.
We feature eight Working Groups ranging from tax, to customs, to law, to education, etc. These Working Groups comprise over 400 experts and business leaders, working to form policy recommendations and deliver other vital business interests to the government and regulatory bodies.
Our members receive a weekly News Wire on business and economic developments.
We maintain a close engagement with various state organizations, such as the President's Office, Prime Minister's Office, Parliament, the Government, acting as a voice for the various sectors and our members who number up to 250.
Thank you Mr. President for holding this candid discussion today.
Shares in Azerbaijan's top gold producer Anglo Asian Mining (LON:AAZ) soared Monday after the company boosted resource estimates at its Ugur gold deposit and said the project, located by its flagship Gedabeck mine, was on track to begin production next month.
The London-listed firm said Ugur is now known to contain 199,000 ounces of gold and 1,049,000 ounces of silver, while the proven and probable reserves stand at 147,000 ounces of gold and 808,000 ounces of silver.
The miner also said that mining and haulage of ore to the processing facility stockpile at the project would begin before the end of the month, with production to start in September.
Anglo Asian’s stock skyrocketed on the news, trading 9.7% higher at 25.50p shortly after 2:00PM GMT.
The company, which also produces copper and silver, started a significant exploration program at the end of last year after making a new gold discovery at Ugur, located just km (1.8 miles) from Gedabek’s processing facilities.
Gold is produced at Gedabek and other Azeri mines under a joint venture between Anglo Asian and the country's government, which has as 49% stake.
Anglo Asian began production at Gedabek, 350 km west of the capital Baku, in July 2009 with plans to extract 22 tonnes of gold. Overall, Anglo Asian plans to exploit seven mines in western Azerbaijan with estimated gold reserves of 430 tonnes.