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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Mongolia-EU relations enter new phase www.montsame.mn

Ulaanbaatar /MONTSAME/ EU-Mongolia relations are entering a new phase with the opening of a Delegation of the European Union (the equivalent of an embassy for the EU) in Ulaanbaatar, and the entry into force of the EU-Mongolia Partnership and Cooperation Agreement, said a press release issued by the EU on October 27.

Against this backdrop, the EU Ambassador to Mongolia Hans Dietmar Schweisgut will lead a group of more than twenty ambassadors and senior European diplomats from EU Member States to Mongolia to meet with the country's political leaders as well as representatives of civil society.

"This visit takes place at a timely moment: a new Government is in place, we open an EU Delegation, and the Partnership and Cooperation Agreement enters into force. I am looking forward to discuss with the new leadership of Mongolia how to take our relations to a new level. Now all conditions are in place to step up our political dialogue and cooperation, and to further strengthen our partnership.The EU and Mongolia share many common values: respect for human rights, democracy and the rule of law are the foundation of our relationship," Ambassador Schweisgut said.

The EU Ambassador, together with over 20 ambassadors and senior diplomats from EU Member States come to Ulaanbaatar for their annual meeting with the Mongolian leadership. The objective of these meetings is to take stock of relations between the EU and Mongolia, and to discuss how to strengthen, promote and extend the scope of cooperation between the parties. The visit will also offer an early opportunity to discuss how the EU and its Member States, together with Mongolia, start implementing the Partnership and Cooperation Agreement. We have already made some progress with the first EU-Mongolia Human Rights Dialogue held in March this year. The EU is also looking into possibilities to enhance trade relations, and will discuss Mongolian ideas on how best to assist Mongolia's businesses to better use the EU's GSP+ (Generalised Scheme of Preferences – an EU policy allowing developing countries to pay fewer or no duties on exports to the EU, giving them vital access to the EU market and contributing to their growth). The EU provides development assistance to support Mongolia's authorities in implementing structural economic reforms.

On 1 November 2017, the EU-Mongolia Partnership and Cooperation Agreement (PCA) will enter into force. It provides the EU and its Member States on the one hand and Mongolia on the other with a general framework for expanding their bilateral relations. Its implementation will strengthen political, economic and sectoral cooperation across a wide range of policy fields. It is an expression of our mutual commitment to enhance bilateral cooperation.

The EU Ambassador will also sign the Establishment Agreement that will allow the European Union to open its Delegation in Ulaanbaatar. The Delegation will strengthen the EU's relationship with Mongolia, and is a sign of the EU's long-term commitment to the people of the country.

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Xanadu Mines drills high-grade copper below current resource in Mongolia www.proactiveinvestors.com.au

Xanadu Mines Ltd (ASX:XAM) has successfully drilled extensions of high-grade copper along strike and below the current resource at the Stockwork Hill deposit within the Kharmagtai project in Mongolia.

The Stockwork Hill deposit consists of composite intrusions hosting gold-rich porphyry copper mineralisation circa 800 X 400 metres and extending to a depth of at least 600 metres.

Xanadu has now drilled a significant new zone of high-grade mineralisation outside the current resource (1.5 billion pounds copper and 2+ million ounces gold), returning:

- 294 metres at 0.47% copper and 0.85 g/t gold (1.01% copper equivalent) from 466 metres, including 86 metres at 0.78% copper and 1.91 g/t gold (2.0% copper equivalent) from 558 metres.

Significantly, the presence of bornite (an ore of copper) suggests this new zone of mineralisation is closer to the high-grade core of the system.

Further drilling is underway to expand this new zone by deepening several shallower holes above and along strike of the targets.

Andrew Stewart, managing director, commented: “We are excited that hole KHDDH419 successfully demonstrated a clear extension of high-grade mineralisation along strike and at depth outside the current resource model.

“We are particularly excited with the new results from this hole which has discovered a new zone of gold-rich copper porphyry mineralisation, representing the downthrown block of the main Stockwork Hill deposit.

“The high-grade extensions we have identified provide the opportunity to assess Stockwork Hill as a potential underground resource that has the potential to deliver significant additional value to the Project”.

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How Asia's Oil Hub Is Going Green www.bloomberg.com

Singapore plans to develop solar power and energy-storage technologies as the oil-trading hub of Asia pushes to generate more of its power from renewable sources.

The city-state is testing floating power projects in its reservoirs, a technology that could help solar meet as much as a quarter of electricity demand by 2025, Deputy Prime Minister Teo Chee Hean said Monday in a speech opening Singapore International Energy Week. The government also reached agreements for energy storage and micro-grid projects, Sim Ann, senior minister of state for trade and ministry, said at the event.

To reduce its reliance on fossil fuels, Singapore is trying to overcome natural limitations on hydropower and wind and a lack of available land for solar panels. While the city-state is a small emitter of carbon, it will be one of the first to feel the effects of climate change, Teo warned.

“We are one of the small island states, the average height above sea level is not a great deal,” Teo said. “If the sea levels rise, we have to take it very seriously, or all of us will have to take swimming very seriously.”

Singapore, which has long been one of the world’s largest oil refining and trading hubs, has shifted its electricity mix over the past century from coal to oil to natural gas, which now generates about 95 percent of Singapore’s 8 gigawatts of power. Solar capacity has grown to a peak of 140 megawatts from about 0.4 megawatt in 2008, Sim said.

Floating Panels

The island nation can produce a peak of 2 gigawatts from solar by 2025, Teo said, citing a study by the Sustainable Energy Association of Singapore. Floating solar can help by creating extra surface space for photo-voltaic panels, Teo said. Tests done at Tengeh Reservoir have shown floating panels to be more efficient than rooftop, he said, adding that the country will also explore vertical solar panels on the sides of skyscrapers.

Singapore is pushing forward with plans to store intermittent solar energy, awarding deals to groups led by Red Dot Power and CW Group to install 4.4 megawatt-hours of storage solutions in two substation locations connected to the grid, Sim said. Singapore’s Energy Market Authority will also make it easier for consumers to generate solar power for themselves and to sell excess energy back to the grid, she said.

Singapore’s SP Group signed a memorandum of understanding with the Singapore Institute of Technology to develop the country’s first urban micro-grid at the institute’s future campus in Punggol.

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Aspire Mining to lift cash to advance Mongolian assets www.proactiveinvestors.com.au

The halt will remain in place until Wednesday 1st November 2017. 

Aspire Mining Ltd (ASX:AKM) remains focused on its coal assets in Mongolia, and advancing key infrastructure including railway.

Aspire has this morning been granted a trading halt by the ASX, pending details of a capital raising.

The halt will remain in place until the opening of trade on Wednesday 1st November 2017, or earlier if an announcement is made to the market.

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Everyone's a Metals Bull as the Global Economic Engine Fires Up www.bloomberg.com

Global growth is on a tear, and that can only be positive for metals prices.

That’s the message coming from the industry ahead of LME Week. For the first time in years, optimism is widespread among traders, smelters, miners and brokers gathering in London, buoyed by a combination of strong growth across the world’s key demand centers, supply curbs in China and a return of investor interest.

"The global economy looks much better than it has done probably since the crisis, maybe before that," said Saad Rahim, chief economist at Trafigura Group Pte, the second-largest metals trader. "I’m pretty bullish."

The upbeat mood shows how much has changed in two years, when the commodities collapse brought the titans of mining to their knees. In September 2015, Glencore Plc was forced to raise money when its stock was cratering, an effort to sooth investors frightened by a staggering debt load. Now, the mining giant has regained its swagger, reaping profits and inking deals worth billions for natural resource assets around the world.

Industrial metals have rallied sharply since the middle of the year. Copper is approaching $7,000 a metric ton, zinc topped a decade high and aluminum has jumped almost 30 percent this year. With that backdrop, macro hedge funds -- once major players on the London Metal Exchange -- are beginning to look again at metals markets, according to brokers.

Metals Demand

“Investor appetite has been increasing for metals since late summer," said Sid Tipples, co-head of metals at JPMorgan Chase & Co.

Volumes on the LME have picked up, hitting the highest level since 2015 in September. Matthew Chamberlain, chief executive of the exchange, suggested there’s further room for growth.

"Before the funds are actually in the markets, they’re working out the best entry strategy and getting ready, and that certainly seems to be the mood music in the market," he said in an interview.

For the first time in years, the outlook for global metals demand doesn’t hinge solely on China. Manufacturing in the euro-area is growing at its fastest pace since at least 2014. This month, the International Monetary Fund upgraded its growth outlook for the U.S., the euro area, Japan and China and said the global economy’s performing at its best pace in the last 10 years.

Metals demand in Europe is picking up on the back of rising demand from the construction and automotive sectors. Codelco, the world’s largest copper producer, raised the premium it charges to deliver metal to European customers for the first time in four years. Forecasters including Bank of China International see further gains for base metals in a period of synchronized global growth.

“The economic outlook is stronger than it has been for a while across the major economies with more consistent growth in Europe, the U.S. and China,” said Tipples at JPMorgan.

While strong global demand is underpinning the optimism, supply issues are also creating pockets of tightness. Glencore’s output cuts helped fuel the zinc rally and Chinese capacity cutbacks have spurred higher aluminum prices.

The supply issues are being felt in corners of the physical metals industry that are largely inaccessible to financial speculators.

For example, the price of alumina, used to make aluminum, has jumped 56 percent since August, according to data from consultancy CRU Group, amid Chinese production cuts that fueled a wave of buying by aluminum smelters.

Lead ore treatment charges, which miners pay smelters to convert the ore to metal, are moving negative. Cargoes of lead concentrates have changed hands at treatment charges of minus $40 a metric ton, traders said, an unusual situation that implies traders are paying more for lead ore than the value of the metal.

On the LME, overall inventories are being drawn down. Stocks of metal in the exchange’s warehousing system have dropped to the lowest since 2008.

"We’ve seen inventory draws across the board on the LME, and the underlying demand picture would suggest those draws are real," said Ingrid Sternby, senior research analyst at Blenheim Capital Management LLP, a commodities hedge fund in London. "The market now is at a point where fundamentals are playing a more important role."

Still, global growth can’t continue at a fast pace forever, said Mark Hansen, chief executive of mid-sized metals trader Concord Resources Ltd.

"I’m concerned we have got into this zone where people think everything is just going to get better and better," he said. "China has just done its Party Congress. We’ve probably reached peak credit creation for this cycle in China."

He warned that miners could respond to the recent rally by adding new production, especially in zinc where prices are trading far above the cost of production.

"Two years ago, things were pretty dreadful for the mining industry. Things are pretty good now. The supply discipline that kicked this rally off can dissipate in the next six to 12 months," he said.

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Oil markets firm on expected extension of output cuts www.reuters.com

SINGAPORE (Reuters) - Oil markets were firm on Monday, with Brent crude opening above $60 per barrel on expectations an OPEC-led production cut due to expire next March would be extended.

Brent crude oil futures LCOc1, the international benchmark for oil prices, were at $60.53 per barrel at 0054 GMT, up 9 cents or 0.15 percent from their last settlement.

That’s still close to their highest level since July 2015 and up more than 36 percent since their 2017 lows last June.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were up by 13 cents, or 0.24 percent, at $54.03 a barrel.

“With strong compliance to OPEC’s production curbs already supporting prices, comments from the Saudi Arabian Crown Prince that suggested the production cut agreement should be extended added to gains,” ANZ bank said on Monday.

The Organization of the Petroleum Exporting Countries (OPEC) plus Russia and nine other producers have agreed to hold back about 1.8 million barrels per day (bpd) to get rid of a supply glut. The pact runs to March 2018, but Saudi Arabia and Russia, who are leading the effort, have both voiced their support to extend the agreement.

OPEC is scheduled to meet officially at its headquarters in Vienna, Austria, on Nov. 30.

While OPEC and its partners are withholding supply, U.S. production C-OUT-T-EIA has risen almost 13 percent since mid-2016. As a result WTI is trading at a steep discount of around $6.50 per barrel against Brent CL-LCO1=R, which has made U.S. crude exports to the world attractive.

Confidence in the oil market is evident in the way financial traders have positioned themselves.

Hedge funds and other money managers raised their bullish wagers on U.S. crude futures and options in the week to October 24, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

The speculator group raised its combined futures and options position in New York and London by 15,041 contracts to 280,634 during the period.

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China imported record iron ore in September as steel output curbs start to bite www.mining.com

The amount of iron ore shipped to China surpassed 100 million tonnes for the first time in September.

According to Hellenic Shipping News, both Australia and South Africa exported record amounts – 65.1MT and 5.09MT – while Brazil shipped its third highest level at 21.7MT.

Australia is China's largest iron ore importer followed by Brazil and South Africa. The three combined for 91.98MT in September, close to 13MT higher than August, reads a table of Chinese customs data, below. In total Chinese imports of Fe were 102.8MT, which is a 16% increase from August. The last record of 98.3MT was set in December 2015, reports Hellenic Shipping News.

Earlier this month Chinese iron ore futures jumped more than 5%, due to a rally in steel prices, as China's steel mills ramp up production in expectation of a major output cut. Chinese steel output in September rose 5.3% from the year before to 71.8m tonnes; not far off the record 73.2m tonnes produced in August.

But mills in northern Chinese cities including top steel-producing Tangshan have been ordered to slash production due to a government mandate to fight pollution caused by industrial plants. As much as 30 million tonnes could be reduced between October and March.

According to London-based consultants CRU, China is on track to cut 240m tonnes of annual capacity by 2020 from its peak in 2015,

The reality of the cuts (mills have begun reducing rates) are beginning to be reflected in the iron ore price. On Friday the spot price fell for the third straight session, in parallel with reductions in the price of Chinese futures. Via Business Insider Australia, Metal Bulletin reports the steelmaking ingredient (benchmark 62% fines) slid to a new two-week low of $60.08 a tonne Friday, extending its price decline from mid-August to 25%.

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State budget amendment approved www.montsame.mn

Ulaanbaatar /MONTSAME/ At a plenary meeting of the Parliamentary Session on October 26, parliamentarians approved an amendment to the Law on State Budget 2017.

During the consideration, MP G.Temuulen said, “A certain amount of money was budgeted to add to the loan sources of fund to develop small and medium-sized enterprises. But it was taken out from the amendment. Instead, single-benefit grant worth MNT 300,000 to state servants each was decided to give. If the money for SMEs fund was remained, it would have been better. To ensure country’s interest, disbursement of state budget’s money must target on projects that are capable to gain. Resolving social issues of government workers by this way is absolutely wrong. The country will not prosper without any supports for SMEs.”

In response, Finance Minister Ch. Khurelbaatar explained, “In line of the financial arrangement with IMF, it was agreed to not raise wage over next years. That’s why the one-time grant is to be issued. Wages of the government workers have not been increased since 2014, but inflation is on the rise.”

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Mongolia and Cuba to Increase Cooperation in Research Areas www.plenglish.com

Ulan Bator, Oct 26 (Prensa Latina) Mongolia and Cuba are seeking today to increase cooperation in research areas and the pharmaceutical industry, coupled with the application of Cuban medical treatments to patients in this Asian country.

This was confirmed during an exchange between the Cuban ambassador in that nation, Raul Delgado, and Foreign Minister D. Tsogtbaatar, when they evaluated the current state of diplomatic relations.

Cuba cooperates with Mongolia in supplying medicines and pharmaceutical preparations to treat hepatitis and diabetes, produced by the Center for Genetic Engineering and Biotechnology.

On the other hand, Ulan Bator offered the use of biopreparates to eliminate field mice.

The Mongolian Foreign Minister expressed his satisfaction to extend the friendly relations between both countries.

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Capital Bank & Soyombo Insurance Announce a Milost Financing market.businessinsider.com

ULAANBAATAR, Mongolia, Oct. 26, 2017 (GLOBE NEWSWIRE) -- Capital Bank of Mongolia Ltd and Soyombo Insurance Ltd, their sister company, are pleased to announce that they have executed a $255 million financing term sheet with Milost Global Inc (the "Investor"). The financing is expected to be comprised of $55 million in equity capital and $200 million in debt. Milost Global Inc (the “investor”). Through this transaction, Capital Bank, Soyombo Insurance, Capital Brokerage and Capital Asset Management have agreed that they will be controlled by Milost Bank Corporation, whereas Milost Bank Corporation will acquire a controlling interest in all four companies. Milost Bank Corporation, through its African subsidiary Milost Bank Africa Limited is also conducting a due diligence of a Nigeria bank that has over 250 branch operations, with a purpose of acquiring full control.

The Chairman of Capital Bank of Mongolia and Soyombo Insurance Ltd, A. Ariunbold, stated, “We are delighted that Milost Global Inc has agreed to finance Capital Bank and Soyombo Insurance Ltd, strengthening and growing our position as a nationwide bank and insurance company in Mongolia. We see this as an exciting opportunity for both companies, our shareholders, and our respective teams of bankers.” 

The deputy CEO of Capital bank Mr. B.Ganbat, stated, "This transaction increases the funding diversification and strengthens the liquidity profile of Capital Bank. We are excited about the opportunities that will be created from this financing and look forward to the combined success going forward.”

The Senior Partner & President of Milost Global Asia, Dr. Chin Yew Seah, stated, “It is my great pleasure to have a chance to be able to invest and work with the management team of the Bank. The Capital Bank is part of the Bishrelt Group which itself is a major conglomerate in Mongolia but with the strengthening of banking regulations in Mongolia, there is a need to expand the capital base to enable the Bank grow. The Chairman and I share the same vision, which is to enable the bank to seek its own direction to capitalise on the opportunities that exist in Mongolia today. This comes at a time when Mongolia itself is recovering from a recession and has achieved positive GDP growth in 2016 and more robust growth in 2017. Capital Bank has been the first commercial bank in Mongolia and one of the few banks that have adapted the early use of technology in its banking system and is poised to take advantage of its unique position by partnering with Milost in order to achieve rapid growth.”

Mandla J. Gwadiso, Chairman of Milost Bank Corporation, also stated, “For Milost Bank Corporation, this is a first step towards building a good base in Mongolia. Milost Bank Corporation continues to look for well-managed banks and leading financial services companies of the calibre of Capital Bank and Somboyo Insurance. We look forward to a fruitful and yet bilateral relationship with A. Ariunbold and his teams.”

Bernard B. Yaw, Senior Partner and COO of Milost Global Inc, also had this to say, “In response to the deficiencies in financial regulation with the after-effect of the financial crisis of 2007–08, Basel III was introduced globally to attempt to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage. A lot of banks especially in the emerging countries are struggling to meet the Basel III requirements. Those that can find ways to recapitalize and strengthen their Tier I capital requirement will be winners and will leapfrog over those who are lagging. This gap is definitely opening investment opportunities to Milost Bank Corporation to acquire and partner with these well run but undercapitalized banks in many emerging countries.”

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