Name organizer Where
Frontier's "Invest Mongolia Tokyo 2018" Frontier Securities Tokyo Japan
"Open to Export" ICC WTO International business award ICC WTO London



Climate financing in Mongolia www.montsame.mn

In May, 2017, Mongolian commercial bank “Xacbank” received 500’000 dollars’ grant from Green Climate Fund. It was the first phase of GCF’s 20 million dollar contribution to reduce carbon emission rates in Mongolia. Mongolia’s capital Ulaanbaatar is one of the world's most polluted cities, mainly because of coal-fired power plants, and coal-fueled stoves and boilers which are used to heat homes in this world's coldest national capital. Even though the pollutants in the air is estimated to be 8 times the world standard, Government of Mongolia is too busy dealing with the financial crisis to take actions against it. GCF’s grant could bring major positive changes as it would kick start the biggest climate program with 60 million USD budget. Only 0.07 percent of the national budget goes to the Ministry of Environment and Green Development. Thus, climate projects are in serious need of financing, and that 500’000 USD might have come in just the right time.

Mongolia is known by its vast, beautiful landscapes, wonderful solitudes, and the rich hospitality of nomads. Sadly, the landscape changed drastically due to the sudden increase of mining business. Almost half of the domestic budget comes from coal exports and it doesn’t seem to change in the near future. The biggest attempt to turn into sustainable energy resources are mostly invested by the private sector. Mongolian economy is solely dependent on their export of mining products and income rates shown below illustrates how much Mongolia is in need of an economic support to overcome the challenge.

Efficient investment with safe monitoring is crucial when it comes to Mongolia. The reason hardly any foreign investor approaches Mongolia is corruption. To make sure the funding is going to places they intended to, international organizations tends to directly connect with private sectors rather than government officials. Recent events such as partnership with Xacbank proves it as well. But the fact that there are very few corporations big enough to run the financial grant also puts this option at risk. Therefore, careful partnership with the Government with strict monitoring, or funding the private sector to support low-carbon energy sector seems to be two most suitable choices.

Tight provincial budgets 
Despite the fact that all protected landscapes are in the hands of local governments, the state always puts major restraints on provincial budgets. Tight budgets put those local governments in position to issue more mining licenses in order to create their own reserves. They have even started granting mineral exploration licenses after banning it for 5 years due to negative environmental impacts. More mining means more CO2 will be released into the atmosphere, thus, to efficiently finance the climate change mitigation; strong local budgets must be constructed firsthand.

Private sector investment
Mongolia’s first wind farm was built and funded by Newcom LLC and Clean energy LLC, both are private companies. They are currently funding another major sustainable energy project, which is to build the first solar energy plant. Hopefully, other private sectors might take more interest in low-carbon energy sector now that the Xacbank is providing low interest loans. Judging from these facts, it seems that private sectors are pioneering the way towards more climate-friendly Mongolia.

Problems we are facing do not end here. In fact, there are even more problems involving the mining boom Mongolia experienced during the last decade. Mining companies execute land rehabilitation poorly, or not at all; because there is a legal way to make small contribution to local government’s fund rather than constructing rehabilitation. Law makers must reconsider such ways that offer big corporations a way out.

Sustainable energy, responsible mining and strong will to bring positive changes are the things we must do to keep our country as stunning as it has been through the history. Mongolians have worshipped nature for as long as they existed and that love can be the source of motivation to do what is right.
By Tushigjargal Bold



"Mongolia wants to augment trade turnover with Turkey" www.montsame.mn

Ulaanbaatar /MONTSAME/ Mongolia-Turkey cooperation, especially in the fields of economy and business are needed to be gone into a new volume, said J.Munkhbat, head of the Cabinet Secretariat for Government, when he met Monday Mr Fatih Ciftci, the Turkey’s Deputy Minister of Customs and Trade. He added Mongolia intends to increase the bilateral trade turnover to USD 250 million.

The parties exchanged views on seeking areas of the Mongolia-Turkey cooperation apart from the above fields.
Mr Munkhbat pointed out the Mongolian government is ready to support organizing business meetings and forums by the countries’ Chambers of Commerce.

“We know Turkey is a leading country for processing leather. Mongolia has big reserve of leather, so we are possible to collaborate in it,” Mr Munkhbat said. He added that the countries are possible to boost cooperation in the areas of agriculture, transportation, tourism, light industry and investment.

In turn, Mr Fatih Ciftci said his country is ready to collaborate with the Mongolian customs and trade organizations and to contribute to their actions. He added that the countries are able to cooperate in the small-and-middle industry.

The above issues are expected to be discussed at a forthcoming meeting of the intergovernmental commission meeting.



Tesla set to raise $1.8bn in bond offering www.bbc.com

Tesla expects to raise nearly $1.8bn (£1.4bn) by selling "junk" bonds to private investors - even more than the electric car-maker aimed for when it announced the offering this month.
The firm said the money will keep its balance sheet steady as it ramps up manufacturing of its newest car.
Tesla aims to make 5,000 of its mass market Model 3 a week by the end of this year.
It has estimated it is already spending about $100m a week to hit that target.
On 4 August Tesla said was looking to raise $1.5bn by selling bonds, but said on Friday it now expected to raise $1.77bn from the sale.
The fundraising is limited to major institutions and not private investors.

Analysts said Tesla's ability to raise more than $1.5bn indicated an appetite for risk among investors, as low interest rates have limited returns in many other types of investments. High stock market valuations have also made it harder to make a profit.
"Without the proceeds from the note offering, Tesla's liquidity position would be stressed," analysts at Moody's said, warning of risks to potential investors.
Tesla had about $3bn in cash at the end of June, but it spent more than $2bn in the most recent quarter.
The company founded by Elon Musk has frequently turned to investors to overcome persistent operating losses.
Tesla plans to eventually make more than 500,000 of the new Model 3 cars a year at its Fremont factory - or about 10,000 per week.
Moody's said the target was ambitious given the relatively small size of the US electric car market.



Japanese Government to fund USD 58 thousand for First Maternity Hospital's renovation project www.montsame.mn

Ulaanbaatar /MONTSAME/ Within the frames of the Government of Japan’s “Grant Assistance for Grassroots and Human Security Projects” (GGP), the signing ceremony of First Maternity Hospital’s renovation project was held on August 11.

Opening the ceremony, the Head of First Maternity Hospital D.Narantsatsralt said “USD 58 thousand funding is coming from the Government of Japan. This full be used on renovating the roof of A, B, C and D sections of First Maternity Hospital. Our hospital prepared a project to get involved in the GGP and I’m fully grateful that the project was selected”.

Presently, the hospital’s roof is inadequate as it leaks in rain. Therefore, the hospital is in dire need for immediate renovation. The renovation is expected to start on August 20 to continue for a month.
Source: ikon.mn



Facebook finds a way into China www.cnn.com

Facebook has been banned from China for years, but a new app that has shown up in the country might be its way into the market.
It's dubbed the Colorful Balloons app, and, according to the Chinese app store's description, it works similarly to Facebook's (FB, Tech30) Moments app.
"Colorful Balloons can group users' phone pictures and videos based on time, locations and characters. It can help you create albums and share them with friends and family," the description reads.
The story was first reported by The New York Times, and person familiar with the matter confirmed to CNNMoney that it is a Facebook app. But the Facebook name is nowhere to be seen.
Instead, a company called "Youge LLC" is credited as the creator. And Colorful Balloon is the only app listed under the developer.

The app has a few distinct features that cater to the Chinese market. And in order to sign up, users must register with a Chinese cell number.
Facebook and other major tech firms have been shunned from China for many years thanks to the country's strict censorship laws, often referred to as the Great Firewall.
In addition to Facebook, apps including Snapchat (SNAP), Pinterest, Twitter (TWTR, Tech30) and Facebook-owned Instagram are banned from the country.

In their place, Chinese developers have created similar platforms. Sina Weibo, for example, takes the place of Twitter as the country's primary microblogging site.
But that hasn't stopped American tech giants from eying a piece of China's massive market.
"We have long said that we are interested in China, and are spending time understanding and learning more about the country in different ways. Our focus right now is on helping Chinese businesses and developers expand to new markets outside China by using our ad platform," Facebook said in a statement Saturday.



'Let it be': Mongolians protest as bulldozers threaten Beatles monument www.gogo.mn

ULAANBAATAR (Reuters) - A statue of the Beatles in the Mongolian capital of Ulaanbaatar could be at risk amid an alleged land grab, protesters say, as rapid development turns a city once famed for wide open spaces into a cluttered metropolis.
Residents are protesting against plans to build commercial properties in an area known as Beatles Square, where a bronze bas-relief monument to the "Fab Four" commemorates the former Soviet satellite's transition to democracy in 1990.
"For a long time there were stories about construction on the land, but nobody wanted to believe it," said Tsoggerel Uyanga, a community organizer and senior partner at research group MAD Investment Solutions.
The monument, erected in 2008 with donations from politicians, businessmen and artists, marks the site where Mongolians gathered to talk about banned Western pop music and soon became a quirky tourist attraction.
The music of the Beatles, Abba, and other Western pop groups helped launch the "Rock and Roll Communist Revolution" that inspired a generation to fight for Mongolian democracy thirty years ago.
The protests began after an August 2 announcement that construction work would start, with residents calling the project a "land grab" and expressing fears the Beatles statue could be moved or even demolished.
Authorities have defended the development as part of a "car-free street" project to build an underground shopping complex complete with street gardens.
A lawyer for Mongolia's National Construction Association said there were no plans to remove the Beatles statue, however.
"By implementing the project, there are a great deal of advantages, such as increasing jobs and reducing traffic congestion," said D. Uuganbayar, the lawyer.
The national association, the city government and a private contractor called "Buti" are leading the project.
Congestion and pollution have grown in the capital as its population has doubled over the last two decades, with thousands of impoverished herders flocking to settle in makeshift residential areas.
The strain on Ulaanbaatar's infrastructure has forced the city to rethink its planning of urban spaces, and drawn criticism for the sale of public land to wealthy buyers.
Investors have failed in the past to deliver on promises to protect public spaces affected by development, Uyanga said, pointing to the Bogd Khan conservation area where the World Bank had raised concerns about overdevelopment.
"It became a black market for land authorities during the early democratic years," said Uyanga.
Editing by David Stanway and Clarence Fernandez



European Investment bank to support gobi wind farm www.news.mn

The European Investment Bank (EIB) has signed a financing agreement to back the construction of a 54-MW Sainshand wind park in Mongolia’s Gobi desert.

According to the lender’s website, the amount of the approved financing is EUR 45 million (USD 53.1m), while the total cost of the scheme is estimated at EUR 95 million. The company behind the project is Sainshand Salkhin Park LLC, a special purpose limited liability entity owned by French energy major Engie (EPA:ENGI), the IFU, Germany-based Ferrostaal GmbH and a local partner.

The project envisages erecting 25 wind turbines on government-owned land to the southeast of Sainshand city, in Dornogobi Province. The developers have already secured a power purchase agreement (PPA) and obtained all needed licences, Ferrostaal says. Once operational, the wind farm is expected to generate about 190,000 MWh of electricity per year.

Under its national power policy Mongolia aims for a renewables share of 20% by 2020 and of 30% by 2030.



BoM issues 1-week bills www.montsame.mn

The Bank of Mongolia traded 438.4 billion MNT worth 1-week maturity central bank bill (“CBB”), with weighted average yield of 12.0 percent per annum. /For previous auctions click here/.

1 - week CBBs
1-week CBB plays an important role in managing the reserves of banks and is the core monetary policy instrument of the Bank of Mongolia. The interest rate on CBB will be the policy rate of the BOM and will serve as a guide interest rate on the interbank market. It was first introduced in July 2007, with fixed rate and unlimited bidding, and traded on a regular basis every Wednesday at the interbank market. This had attracted the banks’ interests providing the possibility for the banks to place their excess reserve in short term asset. Since the introduction of this instrument, there has been a substantial change in the way banks manage their reserves. For the favorable adjustment of CBB rate and loan principle along with the well balance of togrog and foreign exchange, 1 - week CBB auction has been held in the form of competitive interest rate since May 2010. In doing so, the upper and lower limits of the bank bids are to set +/- 2 per cent of the policy rate.



Global nuclear power capacity could double by 2050 www.rt.com

The world’s installed nuclear power capacity could increase by 123 percent in 2050 compared to 2016 levels, the International Atomic Energy Agency (IAEA) said in a report this week.

These projections, however, are the so-called high in 2050. In the low case, the IAEA estimates are for a decline in capacity in the near future, followed by a rebound to current levels nearer 2050. In the high case, nuclear capacity is expected to rise from 2016 levels by 42 percent in 2030, 83 percent in 2040, and by 123 percent by mid-century.

The main factors that are and will be influencing the future of nuclear energy are public acceptance, financing, and electricity markets.

“If nuclear power’s potential as a low-carbon energy source grows in recognition and advanced reactor designs further improve both safety and radioactive waste management, the use of nuclear power could grow significantly,” the IAEA says.

At the end of 2016, installed nuclear capacity reached 392 gigawatts (electrical) (GW(e)), which was the highest level ever, according to the IAEA.

However, funding and safety will be crucial to the development of nuclear energy.

“The safety performance of nuclear installations is crucial to the future of nuclear power, as a strong safety record is essential for its public acceptance,” the IAEA commented, noting that “The financing of nuclear projects is challenging, given the highly capital-intensive nature of such projects, their resulting sensitivity to interest rates and construction durations, and the nature of the uncertainties.”

North America and Europe will see declines in nuclear capacity, while China’s nuclear energy plans will be the main driver of growth, the IAEA reckons.

Oil supermajors BP and ExxonMobil also project that China’s installed nuclear capacity growth will be the key driver of this type of power generation.

In the US, nuclear power currently accounts for around 20 percent of electricity generation. According to the EIA, more nuclear capacity in the US will be retired than built, as other fuels such as natural gas and renewables gain market share. In EIA’s reference case estimates, the share of nuclear in the US electricity generation mix will drop from 20 percent last year to 11 percent in 2050, while natural gas will grow the most, followed by renewables.

According to the IAEA, reduced competitiveness is the main reason for planned premature shutdowns “low natural gas prices, particularly in the USA, caused by a rapid expansion of shale gas production, have fundamentally transformed the energy economy.”

In Europe, Germany ordered the immediate shutdown of eight of its 17 reactors in the wake of the Fukushima disaster in Japan, and plans to phase out nuclear plants by 2022. Earlier this year, Switzerland—which has five ageing nuclear power plants generating one-third of its energy demand—voted to phase out nuclear power in favor of renewables.

The IAEA’s low-case projection is that the share of nuclear in global electricity generation could drop from the current 11 percent to 6 percent in 2050, while the high-case sees that share rising to 13.7 percent in 2050.

BP and Exxon, in their respective 2017 energy outlooks, see nuclear playing a part in the transition of the global fuel mix.

BP’s most recent annual energy outlook sees renewables, together with nuclear and hydroelectric power, accounting for half of the growth in energy supplies over the next 20 years. While nuclear capacity in Europe will decline by 2035 due to decommissioning of ageing plants and little investment in new capacity, Japan could restart some reactors but would not return to pre-Fukushima levels. China’s ambitious nuclear energy plan will account for almost three-quarters of the global increase in nuclear generation. As a result, BP sees the share of coal in China’s energy demand down from around two-thirds in 2015 to less than 45 percent by 2035. Much of the lower share of coal will be replaced by renewables, nuclear, and hydroelectric power, which will supply more than half of China’s increasing energy demands until 2035, BP says.

Exxon’s current outlook through 2040 sees nuclear growing, with more than 50 percent of the growth coming from China.

“Society’s push for lower-emission energy sources will drive substantial increases for nuclear power as well as renewables such as wind and solar. By 2040 nuclear and all renewables will be approaching 25 percent of global energy supplies,” Exxon reckons.

Public acceptance, safety records, the price of natural gas, and climate policies will be crucial to the future of nuclear energy.

This article was originally published on Oilprice.com



Chile's Codelco preparing investment in Mongolian copper www.reuters.com

SANTIAGO (Reuters) - Chilean state miner Codelco [COBRE.UL], the world's second largest producer of copper, is preparing to invest in far afield Mongolia as the copper market improves, the company's chief executive told Reuters on Friday.

In an interview as part of the Reuters Latin American Investment Summit in Codelco's copper-coated offices in downtown Santiago, Nelson Pizarro said the company was aiming for medium-term investments in the isolated Asian nation, which appears to have significant untapped copper potential.

"We have a lot of interest. We're learning to milk camels," he said. "We're working to get the first documents that will allow us to advance in that area, and we hope to bring it about in the medium-term if the technicians confirm our initial perspective."

In Chile itself, Pizarro said Codelco was preparing to launch a broad sustainability program called "green copper," which will include broad use of wind and solar power in its operations and the use of water from the ocean rather than Chile's parched Atacama Desert.

As part of that, the company has recently settled on a short-list of bidders interested in constructing a $1.2 billion desalination plant, and hopes to award the contract toward the end of 2017, he said. In northern Chile, miners have increasingly looked to the ocean in recent years to supply the water-intensive process of copper mining without coming into conflict with local communities.

Codelco is also considering new port infrastructure, as its copper exports are being increasingly interrupted by waves hitting Chile's desert coasts, forcing the ports to close, said Pizarro.

"There are months with 10 days in which we can't send out ships ... That's something we've never seen before," he said. "It would seem to be a consequence of climate change. It concretely impacted us last year, and it's strongly impacting us this year."

Still, Pizarro said, Codelco was in line to meet its 2017 copper production target of around 1.7 million tonnes. That number would likely decrease about 3 percent or 4 percent in 2018, he added.

In terms of the global copper market, Pizarro said a number of factors, such as the needs of the burgeoning electric car industry, could mean average 2017 copper prices of above $2.60 per pound, significantly higher than recent years. That trend should consolidate in 2018, he added.

"The copper price, unless there's a great global crisis should be - I don't know if $2.90 - but yes in the $2.60 to $2.70 range next year."

Reporting by Gram Slattery; Editing by Tom Brown