1 TOP 10 RICHEST PEOPLE IN MONGOLIA 2018 MONGOLIAN BILLIONAIRES WWW.ELITESHARED.COM PUBLISHED:2018/07/22      2 IRKUTSK REGION'S EXPORT OF CHICKEN EGGS TO MONGOLIA ALMOST DOUBLED WWW.RUSEXPORTER.COM PUBLISHED:2018/07/21      3 86 PERCENT OF ACTIVE ENTITIES IN MONGOLIA HAVE UP TO 9 EMPLOYEES WWW.GOGO.MN PUBLISHED:2018/07/20      4 MONGOLIA TAKES STEPS TO BOOST CASHMERE PRODUCTION WWW.NEWS.MN PUBLISHED:2018/07/20      5 HIV INFECTIONS RISES TO 262 IN MONGOLIA WWW.XINHUANET.COM PUBLISHED:2018/07/20      6 FRONTCLEAR FACILITATES A LANDMARK TRANSACTION WITH STATE BANK MONGOLIA, EBRD AND ING BANK WWW.KTVN.COM PUBLISHED:2018/07/20      7 MONGOLIA COULD BE RIO'S COPPER GROWTH KEY WWW.MINING-JOURNAL.COM PUBLISHED:2018/07/20      8 FOREIGN OFFICE MINISTER MARK FIELD VISITS MONGOLIA WWW.GOV.UK PUBLISHED:2018/07/20      9 ZOO-BRED PRZEWALSKI’S HORSES ARE FREED INTO THE PLAINS OF MONGOLIA WHERE THEIR ANCESTORS ROAMED FOR CENTURIES HAVING BATTLED BACK FROM JUST ONE SURVIVING WILD ANIMAL WWW.DAILYMAIL.CO.UK PUBLISHED:2018/07/20      10 MONGOLIAN AND CHINESE JOINT VENTURE ESTABLISHED WWW.MONTSAME.MN PUBLISHED:2018/07/20      ТАВАНТОЛГОЙ-ЗҮҮНБАЯН ЧИГЛЭЛИЙН ТӨМӨР ЗАМЫГ БАРИХ АЖИЛ ЭХЛЭЭД БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/07/22     ШИНЭ УРГАЦ ГАРЧ ЭХЭЛСЭН Ч НОГООНЫ ҮНЭ ӨНДӨР ХЭВЭЭР БАЙНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/07/20     АВТОЗАМД ҮҮССЭН ХОХИРЛЫН ХЭМЖЭЭ 1,3 ТЭРБУМ ТӨГРӨГТ ХҮРЧЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/07/20     BURBERRY БРЭНД 32.6 САЯ АМ.ДОЛЛАРЫН ҮНЭ БҮХИЙ БАРАА БҮТЭЭГДЭХҮҮНЭЭ ШАТААЖЭЭ WWW.GOGO.MN НИЙТЭЛСЭН:2018/07/20     ИРГЭДЭЭС ЦУГЛАСАН ХАНДИВААР ГАЛ УНТРААХ ТОНОГ ТӨХӨӨРӨМЖ АВЧЭЭ WWW.DNN.MN  НИЙТЭЛСЭН:2018/07/20     ГААЛИЙН БАЙГУУЛЛАГЫН ТӨСӨВТ ТӨВЛӨРҮҮЛСЭН ОРЛОГО 1.2 ИХ НАЯД ТӨГРӨГТ ХҮРЧЭЭ WWW.NEWS.MN НИЙТЭЛСЭН:2018/07/20     ИХ БРИТАНИЙН АЗИ НОМХОН ДАЛАЙН БҮС НУТГИЙГ ХАРИУЦСАН САЙД МАРК ФИЙЛД МХБ-Д ЗОЧИЛЛОО WWW.NEWS.MN НИЙТЭЛСЭН:2018/07/20     ЭКО АЛТНЫ УРАМШУУЛЛЫГ МОНГОЛБАНК ОЛГОХГҮЙ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/07/20     ЯМАШИТА МАМОРҮ: МОНГОЛД ДУНДАЖ ЦАЛИНГ ТЭТГЭВРИЙН ХЭМЖЭЭТЭЙ УЯЛДУУЛЖ ТООЦОХ МЭРГЭЖЛИЙН БАГ ХЭРЭГТЭЙ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/07/20     ХЯТАД УЛС БИЗНЕСИЙН ОРЧНОО САЙЖРУУЛНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/07/19    

Events

Name organizer Where
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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SoftBank engineers integration of India's Snapdeal, Flipkart www.asia.nikkei.com

TOKYO -- SoftBank Group has reached a broad agreement to combine Flipkart, India's top e-commerce company, with third-ranked Snapdeal to more effectively take on rapidly encroaching American titan Amazon.com.

The Japanese telecommunications company, Snapdeal's top shareholder, has been holding talks with Flipkart investors Microsoft, eBay and Tencent Holdings. Looking to own 20% of the combined entity, SoftBank plans to put in more money via its massive joint investment fund.

Flipkart and Snapdeal, which entered the Indian e-commerce market in 2007 and 2010, had maintained a duopoly until Amazon stormed into the country in 2013. Snapdeal dropped to third place.

SoftBank sank $627 million into Snapdeal's parent company under a deal announced in 2014 and has since ratcheted up its investment. The Japanese company hopes that integrating Snapdeal with Flipkart will give Amazon stiffer competition.

Cash has been the dominant payment method in India. But last November's demonetization of 500 rupee and 1,000 rupee ($7.76 and $15.52) notes -- more than 80% of the paper money then in circulation in value terms -- helped e-commerce make significant strides.

The nation's online retail market swelled from $3.8 billion in 2009 to $23 billion in 2015, data from the Japan External Trade Organization shows. It is expected to surpass $100 billion in 2020.

SoftBank Chairman and CEO Masayoshi Son told Prime Minister Narendra Modi in 2014 that the company would invest $10 billion in India over the following decade. In addition to Snapdeal, SoftBank has also invested in OYO Rooms, which operates a service for booking budget hotels, and the operator of the Ola ride-hailing app.

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Overseas voter turnout 66.8 percent www.montsame.mn

Ulaanbaatar /MONTSAME/ Voter turnout in the overseas Presidential election was 66.8 percent, reported a Head Commission of the General Election Commission which was in charge of collecting the votes of Mongolian nationals living abroad.

Present at the press conference to brief journalists were D.Davaasuren, Chief of the Head commission, D.Bayanduuren, Deputy Chief and members N.Ankhbayar and L.Bazarsad.

Out of 7209 registered overseas voters for the 2017 Presidential election, 4816 partook in the election, successfully organized by 45 sub-commissions set up in 33 countries on June 10-11. Voter turnout was 44.6 percent at 2PM on Ulaanbaatar time on June 11.

In the 2013 Presidential election, out of 6233 Mongolian nationals that were registered, 4248 people voted.

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Coking coal price slides to 8-month low www.mining.com

The price of coking coal dropped on Monday with the industry benchmark price tracked by the Steel Index down 1.1% to $146.20 a tonne as supply returns to normal levels following tropical storms in Australia in March.

According to preliminary Chinese customs data released last week, the country imported 22.2 million tonnes of coal (both thermal and met coal) in May. Volumes were down 10.5% from April, but still up 16.6% year on year. Total import for the first five months of 2017 jumped 30% compared to the same period last year to 111.7 million tonnes.

The steelmaking raw material is now trading more than $160 a tonne below its mid-April peak when the price of Australia free-on-board premium hard coking coal jumped to highest since the second quarter of 2011.

That price spike was also the result of flooding in Queensland that saw quarterly contract prices negotiated at an all time high of $330.

The wild swings in the price of coking coal is forcing a rethink of the industry's long-standing quarterly contract pricing system. In its monthly review, The Steel Index says Japanese steel mills are considering using the monthly average of daily coking coal spot prices and are also looking to diversify their coking coal supply sources:

Buyers have looked to other coking coal basins to cover their needs, with Mozambique and the US likely to be the biggest beneficiaries. Mozambique is currently on track to increase its annual coking coal production levels to 8 million tonnes, a 100% increase on 2016.
A survey of economist and investment bank analysts by FocusEconomics show prices are expected to stabilize through to the end of the year.

The median forecast is for met coal to average $152 per tonne in Q4 2017 and $134 during the final quarter next year. Coking coal averaged $121 a tonne in 2016 recovering from a slump to below $80 a tonne in February last year.

Iron ore's decline – down 42% from its February peak – took a breather on Monday. The Northern China import price of 62% Fe content ore added 1% to $54.40 a tonne according to data supplied by The Steel Index.

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World Bank to Support Mongolia’s Efforts to Improve Fiscal and Financial Stability www.worldbank.org

WASHINGTON, June 9, 2017 – The World Bank approved today $12 million in financing to help strengthen fiscal and financial stability in Mongolia at a critical juncture for the country’s economy. 

The Strengthening Fiscal and Financial Stability Project will work across sectors to improve the quality of expenditure management, bolster financial sector stability, increase fiscal discipline, and strengthen the social protection system. Comprehensive support will be provided to strengthen budget preparation in all stages, starting from preparation to execution.

“With its vast natural and human resources, Mongolia’s long-term prospects are promising, but vulnerabilities to external shocks such as commodity market fluctuations pose risks. The World Bank is committed to partnering with Mongolia in deepening and sustaining reforms that can promote sustainable growth,” said World Bank Country Manager for Mongolia James Anderson.

Reform measures will include the application of the latest econometric tools to improve government capacity in macro-economic forecasting, and the upgrading of the financial information system in order to strengthen management, accountability, and transparency.

The project will also support the implementation of a financial sector strategy and the strengthening of the public investment management system, so that growing investment leads to better living standards across the country.

Existing social welfare programs will be strengthened to ensure that social welfare support provided by the government benefit the poorest. Mongolia has a relatively large number of small but fragmented social assistance programs that are cash-based. The project will support the government’s efforts in implementing their pension reform program.

The project will be funded on concessional terms by the World Bank’s International Development Association.

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Railway wagons assembled in Mongolia www.montsame.mn

Ulaanbaatar /MONTSAME/ The first ever railway wagons that assembled in Mongolia, were transferred into service on 09 June, with joint efforts by the Ministry of Road and Transport Development, ‘Mongolian Railway” joint venture and private sector. Engineers of the Wagon Repair Department in Zuunkharaa, Selenge aimag noted that the five wagons assembled in Mongolia will serve for 30-32 years, while imported wagons from Russia and China have a useful life of 20-25 years. 

Moreover, it costs MNT120 million to assemble one wagon, which means they are much cheaper than the imported wagon from Russia or the Commonwealth countries that costs USD80-100 thousand or from China for USD79.5 thousand. The assembled wagons have a carrying capacity of 88 cubic meters and 72 tons with a speed of 120 km/hour.

We will study possibilities to produce some parts of wagons at home and buy some parts from private companies, putting a goal to manufacture wagon in the country, not only being limited to assembling, said Minister of Road and Transport Development D.Ganbat. “- Erdenet Mining Corporation has full potential to manufacture some parts of wagons and supply to the Ulaanbaatar Railway. We have some Mongolian private companies, which manufacture rubber products. Therefore, I assigned relevant officials to stop rubber product import from Russia. The Government supports job creation and private companies through a policy and the Ministry will back domestic production that replaces import products and gives benefits to the Mongolian people, not only in the transportation sector, but also in any sector related to the ministry”, Minister D.Ganbat emphasized.

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BoM issues 1-week bills www.mongolbank.mn

1 - week CBBs, a main monetary policy instrument of BoM, plays an important role on managing the reserves of the banks. This CBB rate represents BoM’s policy rate guides interbank money market. In July 2007, the CBB with stable rate and unlimited bidding was introduced with auctions to be held on every Wednesday. This really had attracted the banks’ interests providing the possibility for the banks to place their excess reserve in short term asset. There has been a substantial change in the way banks manage their reserves since then. For the favorable adjustment of CBB rate and loan principle along with the well balance of togrog and foreign exchange, 1 - week CBB has been held in a type of competing by rate since May 2005. The auction average rate is the targeted rate variables in +/-2 percent from the policy rate and it frames to make the interbank rate as the operational target in midterm.

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President of Mongolia : Elbegdorj Meets With Putin www.4-traders.com

On June 9, on the sidelines of the Shanghai Cooperation Organization (SCO) Summit of the Council of Heads of State in Astana, the Republic of Kazakhstan, the President of Mongolia Tsakhiagiin Elbegdorj met with the President of the Russian Federation Vladimir Putin.
 
At the meeting, the parties exchanged views on expanding the bilateral relations between Mongolia and the Russian Federation. President Elbegdorj highlighted that the Russia's investment in Mongolia is increasing and this is important for the development of mutual ties. He also noted: 'All relations established with Russia in all spheres are good relations for Mongolia. All investments from Russia are also good. Mongolia and Russia have always enjoyed good friendly relations and we must not have any issues pertaining to our bilateral relationship'.
 
The President of the Russian Federation Vladimir Putin mentioned that he is glad to see the President of Mongolia Tsakhiagiin Elbegdorj and discuss issues related to the mutual relations and cooperation, during the the Shanghai Cooperation Organization Summit of the Council of Heads of State. He stressed that there is quite a lot in terms of quantity and areas of cooperation between the two countries.
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Bayan Khundii, Mongolia: 108m grading 2.8g/t gold from 97.7m depth (BKD-110) www.mining-journal.com

Continued drilling at Erdene Resource Development Corp’s (CN:ERD) 100%-owned Bayan Khundii project in Mongolia has discovered a new mineralisation zone north of Midfield. 

The above-mentioned drill hole, 60m north of the Midfield zone, also included 20m at 7.2g/t gold, and contained visible gold at 144m.

Erdene said this visible gold represented the “most strongly mineralised comb-textured vein observed to date” at the project.

Results are still pending for two step-out holes north of Midfield where visible gold was also observed in the core.

The latest assays also identified a previously untested area for exploration, with BKD-118 returning 10m of 12.8g/t gold, 90m east of the Striker zone.

The two rig, 20,000m programme is continuing and Erdene said more detailed drilling would then be done before establishing a resource estimate.

Investor confidence in the company is growing with Erdene’s share price up more than 245% in 12 months.

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Mongolia moots asset management company to tackle bad loans www.ft.com

The Mongolian government is considering the establishment of an asset management company before the end of the year to offload onerous non-performing loans from domestic banks’ balance sheets. 

Mongolia secured an International Monetary Fund financial package last month to slash a bulging debt load. That package included a requirement for an audit of the domestic banking sector as part of its fiscal discipline guidelines. 

The IMF’s three-year, $434m loan unlocked financial support from the Asian Development Bank, the World Bank, Japan and South Korea, while the People’s Bank of China extended existing swap lines with the Bank of Mongolia, the central bank. The total financial package amounts to $5.5bn, helping Mongolia service external debt repayments of about $2bn through to 2022. 

The 16 banks serving Mongolia’s $10bn economy are small, pay extraordinarily high deposit rates and are burdened with bad debt built up during the mining industry’s previous boom-and-bust cycle. The asset management company would help banks offload NPLs and release capital that is now held against bad loans, which many banks prefer to roll over rather than recognise.

“Many loans are restructured and we have no idea how big [the issue is],” said Neil Saker, the IMF’s representative in Mongolia. “We only have anecdotal evidence because banks don't really report restructured loans.”

NPLs expanded rapidly after drops in commodity prices and in Chinese demand and the resulting squeeze on the Mongolian economy. Overborrowing and overspending at the height of the commodities cycle meant mining-dependent Mongolia built up debt of 90 per cent of GDP and a chunky fiscal deficit of 17 per cent of GDP.

The parliament, known as the Great Hural, is expected to debate the proposal in its autumn session. “The design of the asset management company has been drawn up already,” said Ayumi Konishi, director-general for East Asia at the Asian Development Bank. 

Estimating the size of Mongolian NPLs is not easy, because of both borrowers’ and lenders’ preference for extending loans rather than categorising them as non-performing. According to Bank of Mongolia, the banking sector’s NPL ratio sits at 8.6 per cent. But some market participants believe the true ratio might be as high as 20 per cent.

What is more, much NPL collateral is in the form of mining certificates calculated on the basis of commodity prices before the recent, multiyear slump. “I am sceptical that 100 per cent of the collateral will ever be recovered,” said Graeme Knowd, managing director, banking, at Moody’s.

More transparent books could help some banks attract interest in the NPLs from foreign investors, with banking sources floating Middle Eastern sovereign wealth funds as potential buyers. Generating capital from Mongolian banks' declining profits “is just not sufficient”, Mr Knowd said.

Meanwhile, newly proposed rules aim to make Bank of Mongolia more independent of parliament while limiting the power of the governor. Those laws could be passed as early as next year, according to the IMF.

In March, Ulan Bator avoided defaulting on a $580m Development Bank of Mongolia bond thanks to an IMF agreement. The country now expects a recovery in the commodities cycle and will receive $1bn in foreign direct investment annually for the next five years for the gold and copper Oyu Tolgoi mine.

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New met-coal mine opens in Pennsylvania www.mining.com

President Donald Trump didn't waste the opportunity to press his pro-coal agenda by mentioning the opening of a new coal mine in Pennsylvania.

Corsa Coal Corp. (TSXV:CSO) decided almost a year ago to open the Acosta mine, about 60 miles from Pittsburgh, to take advantage of higher metallurgical coal prices. The official opening took place last Thursday, attended by business leaders and about 200 miners whose "mining headgear lay atop red, white, and blue table cloths labeled 'Make Coal Great Again,' according to a description by Associated Press. The mine would create up to 100 new jobs.

Trump made the revitalization of the U.S. coal industry – which had been targeted by the Obama Administration including tighter restrictions on coal-fired power plants – a central plank of his election campaign. He has made good on deregulating the coal industry through legislation signed in February to end the regulation protecting waterways from coal mining waste. The Surface Mining's Stream Protection Rule enacted by Obama was resisted by coal miners.

President Trump referred to the mine's opening during a speech announcing his intention to withdraw from the Paris climate accord.

"One by one, we're eliminating the regulations that threaten your jobs, and that's one of the big reasons you're opening today: Less regulation," Trump said. "We have withdrawn the United States from the horrendous Paris climate accord, something that would have put our country back decades and decades, we would have never allowed ourselves to be great again."

AP quoted Corsa Coal's chief executive, George Dethlefsen, as saying that Trump has made the mining industry more optimistic.

"The war on coal is over," he said. "Easing the regulatory burden, lowering taxes, stimulating infrastructure spending, balancing out the interest of economic growth versus environmental policy — it's very good for coal." Pennsylvania kicked in a $3 million grant for the project.

The company, currently valued at $165 million, will produce metallurgical coal for steelmaking. It plans to open another mine next year and a third one in 2019. Corsa Coal currently has nearly 400 employees in two divisions: NAPP, which has three deep mines and two active surface mines in Maryland and Pennsylvania; and CAPP, which has two deep mines and two open-pit active surface mines in Tennessee and Kentucky. Projected sales for 2017 are between 1.325 and 1.475 million tons, according to a corporate presentation.

The company says it benefits from its proximity to the largest met-coal market in the U.S., as well as access to East Coast ports, being 170 miles from Baltimore.

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