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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Raised three taxes come into effect today www.montsame.mn

Ulaanbaatar /MONTSAME/ Amendments to the 2017 State Budget laid out to raise seven types of taxes as the Government agreed with the International Monetary Fund in the scope of a three-year Extended Fund Facility. The measure to increase three types of taxes is coming into effect starting today, May 01.

Those include tax on the interest rate of bank savings, customs tax on imported cigarettes and excise tax on passenger cars.
Ten per cent tax will be levied on interest of bank savings newly, bringing the planned effective date of January 1, 2018 closer.
Customs duty on imported cigarettes and tobacco will be 30 per cent, up by 25 per cent.

Excise tax on passenger car will be increased depending on its date of manufacturing and cylindrical capacity. For example, excise tax on car with up to 4500 cm cubic cylindrical capacity is up by 3-15 per cent or MNT25000-275.000 depending on manufactured date. However, the excise tax on hybrid, electric and gasoline vehicles will be eased by 50 per cent, while currently they are fully exempted from the tax.

B.Ooluun

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IMF delays Mongolia`s request on Extended Fund Facility Program www.gogo.mn

The board of International Monetary Fund held a meeting on Apr 28th. However, IMF delayed Mongolia`s request on Extended Fund Facility Program. 
IMF office in Mongolia explained that it was delayed due to the Parliament`s resolution linked to the approval of state budget 2017 which states major companies such as Oyu Tolgoi LLC to transfer their all payments and transactions through banks only operating in Mongolia. 
IMF noted to consider Mongolia`s request after studying the resolution whether it violated the law on investment and harmful to investors. 
Delegations led by the Minister of Finance B.Choijilsuren, the President of Bank of Mongolia N.Bayartsaihan attended IMF`s spring meeting that was held in Washington DC, USA on Apr 18th. 
At the meeting, Mongolian delegations met Managing Director of IMF Ms. Christine Lagarde and World Bank Group President Jim Kim and introduced Mongolia's socio-economic situation as well as expressed Mongolia`s request on Extended Fund Facility Program. Meanwhile, they have given the recommendation to review the resolution approved by the Parliament. 
Delay of the IMF`s Extended Fund Facility Program may draw back the large loans that will be granted from the World Bank, Japanese Government and the Asian Development Bank.

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Mongolia Constraints Analysis Report has been launched www.montsame.mn

Ulaanbaatar /MONTSAME/ Produced by National Secretariat for the Development of the Second Compact Agreement between the Government of Mongolia and the Millennium Challenge Corporation (MCC) of the USA with technical assistance from the MCC, "Mongolia Constraints Analysis Report" was disclosed on April 28.

According to the report, main constraints of economic growth in Mongolia was related to a weak and unstable macroeconomic environment, inconsistent laws and policies, health impacts of air pollution in Ulaanbaatar, limited and costly access to water in productive sectors and poor communities.

Going further into details, Mongolia’s medium term outlook looks promising. However, the weak and unstable macroeconomic environment appears to be the most binding constraint to economic growth in Mongolia in the short-term. And following each election and conflicts of interest among policy makers, wholesale turnover of the civil service left the private sectors concerned, resulting in an unpredictable business environment. Meanwhile, studies have shown that the economic impacts of air pollution range from 18 - 28% of Ulaanbaatar’s GDP and 8 - 13% of Mongolia’s GDP. As for the access to water, costs are significantly higher and consumption significantly lower in ger districts. This imposes financial, time, health and environmental costs on these communities.

Other constraints including education, finance, energy, transport and property rights were not deemed to be binding constraints, but the team recognized significant challenges in each.

Link to the full report: Mongolia Constraints Analysis Report

B.Tugsbilig

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Rio mine named in Mongolian foreign exchange grab www.afr.com

Rio Tinto's Oyu Tolgoi copper project has been named in a Mongolian government plan to force foreign investors to channel more funds through Mongolian banks, in a move that could contravene Rio's 2009 Oyu Tolgoi investment agreement and the $US4.4 billion project finance facility for the mine's expansion.

While not yet law, the plan is designed to boost Mongolia's reserves of foreign currencies. It has sparked concerns among foreign investors like the International Monetary Fund, which decided to delay a $US425 million bail-out of the Mongolian economy on Saturday.

The Mongolian government first flagged the local banking rule on April 12, and the American Chamber of Commerce in Mongolia confirmed in recent days that Oyu Tolgoi has been specifically named in the resolution.

"The initial resolution has 13 action points, and action point number 11 explicitly refers to the Oyu Tolgoi and Tamsag (oil) projects, requiring them to transfer funds via local commercial banks," the American Chamber said in a note to members published on Friday.

"Major investors and diplomatic representatives have conveyed their concerns to the authorities."

The plan shapes as the latest flaring of sovereign risk in the developing nation, which has repeatedly threatened to overhaul agreements it made with foreign investors over natural resources projects in the country.

In the South Gobi desert, Oyu Tolgoi is Mongolia's largest and highest-profile foreign investment project.

Production from the mine started in 2013 and work is under way to build a $US5.3 billion underground expansion that will allow Rio and its partners to extract the most valuable part of the ore body.

Rio effectively owns 34 per cent of Oyu Tolgoi, given it owns 50.79 per cent of Canadian company Turquoise Hill Resources, which in turn owns 66 per cent of Oyu Tolgoi.

The Mongolian government, which has sought several times to get a bigger share of the mine's wealth, owns 34 per cent of Oyu Tolgoi.

The American chamber hinted that efforts were under way to convince top members of the Mongolian government to back down from the move.

"Based on the needs of its members, AmCham Mongolia has engaged with Parliament and the government to monitor developments concerning the resolution," the chamber said.

"AmCham has been informed that cabinet is taking action to amend this resolution, removing the controversial action point, and is due to submit changes to the resolution to Parliament."

But such amendments are yet to be confirmed, and foreign investors are taking a cautious approach in the meantime, with the IMF telling Bloomberg on Saturday that its $US425 million bail-out facility had been delayed to give the IMF time to assess the banking proposal.

"We need a bit more time to understand the nature and the specifics of the measure, and whether the macro-economic framework of the program remains valid," an IMF spokesman told Bloomberg.

Rio would be loath to encounter disruptions in Mongolia, given the clouded future of one of its other large copper assets; Indonesia's Grasberg mine.

The miner declined to comment.

The Australian government's Export Finance and Insurance Corporation (EFIC) and several Australian banks were part of the syndicate that lent $US4.4 billion to Rio and its partners for the Oyu Tolgoi expansion.

EFIC is understood to have lent $US150 million, while ANZ, NAB and the World Bank's International Finance Corporation were also involved.

Export credit agencies in the US and Canada were also lenders to the expansion.

Rio Tinto directors and executives will be in Australia this week ahead of the company's annual meeting of shareholders in Sydney on Thursday.

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Iron ore price rebounds www.mining.com

The Northern China import price of 62% Fe content ore enjoyed another day of solid gains on Friday to trade up 2.1% at $68.00 per dry metric tonne according to data supplied by The Steel Index. Higher grade iron ore with 65% iron ore content topped $80 a tonne for the first time in two weeks.

Iron ore price reboundsIron ore has recovered 10.6% in value since hitting five-month lows earlier this month and the steelmaking raw material is still trading in positive territory compared to this time last year. The recovery comes on the back of higher steel prices in China which consumes nearly three-quarters of the world's seaborne ore.

Iron ore's fightback comes despite dire predictions for the price outlook.

In a report released this week BMI Research forecasts prices are entering a multi-year slump, averaging lower each year through to 2021. The forecasters expect the commodity to average $70 a tonne this year (year-to-date the average price is just under $82), $55 in 2018, and decline to $46 by 2021, on rising supplies from Australia and Brazil.

On the demand side stockpiles in China has been a major factor behind iron ore's slide from near triple digits in February. According to this week's Umetal's survey of the 42 largest ports in China, total iron ore inventories have stayed near record highs at more than 132 million tonnes.

Elevated stocks have not dampened importer enthusiasm however with total imports for the first quarter climbing 12% to 271 million tonnes after the second highest cargo volumes recorded in March of 95.6m tonnes.

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First China-Britain freight train arrives back in China www.chinadaily.com

BEIJING -- The first freight train traveling from Britain back to China reached its destination in eastern China's Yiwu city on Saturday after a 19 day journey, according to the China Railway Corporation (CRC).

The trans-continental freight train, loaded with 32 containers, mainly carrying maternity products and soft drinks, departed from London on April 10.

Having traveled more than 12,000 kilometers, it passed through seven countries before reaching the Chinese manufacturing and trade hub where small goods such as homeware, garments and souvenirs are made.

London is the 15th city in Europe added to China-Europe freight train services. The first Chinese freight train arrived in London in January.

The China-Britain freight service paves a safe and efficient trade route by land, strengthening bilateral trade ties and better serving the China-proposed Belt and Road Initiative, according to the CRC.

China now has express freight services to 28 European cities. Since March 2011, more than 3,500 trips have been made. The figure should rise to 5,000 by 2020.

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World Bank approves USD 25 million credit to Mongolia to promote employment www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ The World Bank’s Executive Board of Directors today approved USD 25 million in financing to help job seekers and micro-entrepreneurs in Mongolia access labor market opportunities.
 
“Improving access to labor market opportunities is one of the key steps to help people get good jobs and improve their livelihoods. Through this project, the World Bank is helping the government of Mongolia to address major constraints facing Mongolia’s labor market through supporting micro-entrepreneurs, upgrading public employment services, better aligning employment training programs with labor demand, and improving the quality and availability of labor market information,” said James Anderson, World Bank Country Manager for Mongolia.
 
In Mongolia, generally poor labor market outcomes are a major concern with relatively high unemployment and growing numbers of discouraged workers that have given up looking for a job. Meanwhile, jobs and poverty are closely linked as poverty incidence is the highest among those without productive and well-paying jobs.
 
The Mongolia Employment Support Project aims to provide new opportunities for people to start and grow sustainable microenterprises. The comprehensive support will include a range of non-financial support services, including business skills and development training, mentoring, peer-to-peer and alumni networks, and market linkages. It will also include financial support such as microloans for new and existing microenterprises, supplemented by interest rate relief for the most vulnerable beneficiaries.
 
The project will strengthen client-centric public employment services to help them become more effective in achieving quality job placements and attract more employers and listings for higher-skilled jobs. In addition, it will support employment trainings better matched with labor demand, while local labor and social welfare offices will be given the opportunity to develop and implement their own labor market proposals appropriate for the local context. To improve labor market transparency, the scope and quality of information on the labor market and jobs will be upgraded to better connect individual job seekers to employers, and enhance labor market monitoring and evaluation.
 
The recent slowdown in Mongolia’s growth due to lower commodities prices and slower growth in China has brought a significant decline in jobs and a rapid rise in unemployment. Even during the economic boom between 2010 and 2014, the unemployment rate stayed relatively elevated and rarely dropped below 7 percent. Informal employment – often through low-level self-employment –also continues to be widespread. Informal jobs and unemployment are particularly common for a number of specific vulnerable groups, and the project puts a particular emphasis on supporting such groups, including citizens having difficulty finding employment, young people of ages 18 to 34 and poor households.
 
The project will be implemented by the Ministry of Labor and Social Protection of Mongolia. It is funded with a USD 25 million credit from the World Bank’s International Development Association.
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Shareholders' meeting of Erdenes Tavantolgoi takes place www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ Today, April 28, a regular meeting of shareholders of Erdenes Tavantolgoi Company was held at the Finance Center. Out of 2.5 million Mongolian citizens, who own 1072 shares of the company each, 65 shareholders attended the meeting.
 
A conclusion of the Erdenes Tavantolgoi BoD regarding a 2016 report of the activities of the companies was discussed and approved. As a result of proper management policy, the company raised its revenue by restoring mining operations in West Tsankhi block, kept stable operation of East Tsankhi and lowered the debt amount to pay to Chalco Trading Hong Kong Company. Also, it has run operations without accidents, adhering to environmental and labor safety procedures. Therefore, the company’s 2016 activities were considered satisfactory and the meeting appreciated the debt paid out by March 31.
 
The shareholders and the BoD assigned the company authorities to improve company governance and to make the company’s shares valuable by working with profit. Moreover, the attendees criticized independent members of BoD P.Ulziinaran, E.Ganbaatar and Kh.Bolor-Erdene that they were not working actively for protecting the shareholders' rights and interests.
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Democratic party appoints secretary for political policy www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ Democratic Party has appointed S.Erdenebold, one of the young members of its National Policy Committee as the party’s Secretary for Political Policy.
 
The newly appointed secretary earned degrees from National University of Mongolia, Indiana University and the John F.Kennedy School of Government at Harvard University.
 
Having joined the Democratic Party in 2006, S.Erdenebold has previously worked in the National Public Radio and Television, National Legal Institute and Presidential Office. He currently works as a member of Citizens’ Representative Khural of Sukhbaatar district.
 
He has also published over 10 books addressing history, culture and personal development.
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Mongolian aviation revenue increases www.news.mn

 
The revenue of the Mongolian aviation industry reached 56.75 billion MNT, a nine percent increase compared to the previous year, and the industry’s number of customers served rose to 152,200 in the first quarter of 2017, reported the National Statistics Office (NSO).
 
The increase in revenue is linked to a 53.4 percent increase in the number of domestic travellers. In the first quarter of 2017, a total of 64,600 passengers flew on domestic flights. International travel only increased by 2.2 percent, totalling 87,500 passengers.
 
As highlighted by the NSO, passenger baggage has been steadily declining, as evidenced by an annual amount of 635.8 tons of cargo transported. The volume of air shipments has been increasing, with an 18.2 percent increase to 70.3 tons compared to last year. NSO officials said that the volume of air shipments has risen each year.
 
Analysts have pointed to the increase in air cargo as a positive sign of development in the Mongolian aviation industry. As air travel becomes cheaper and the economy improves, the trajectory of growth appears to be sustainable. The largest aviation company in the nation, MIAT, has been working to increase their routes, with new direct flights to Busan in South Korea, and Bangkok in Thailand, being offered in June 2017.
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