1 IRKUTSK REGION SUPPLIES USD 31 MILLION PRODUCTS TO MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      2 27 PARLIAMENT MEMBERS SUBMIT PETITION ON CABINET DISSOLUTION WWW.ZGM.MN PUBLISHED:2018/11/20      3 AIRBNB IS USING WHAT3WORDS TO LIST STAYS WITH MONGOLIAN NOMADS WWW.TECHCRUNCH.COM PUBLISHED:2018/11/20      4 LOCAL PRECIOUS METAL ASSAY LABORATORY PURIFIES 99 KG OF GOLD WWW.MONTSAME.MN PUBLISHED:2018/11/20      5 LEGISLATOR OF MONGOLIA'S RULING PARTY SUBMITS PROPOSAL ON DISMISSING GOVERNMENT WWW.XINHUANET.COM PUBLISHED:2018/11/20      6 SHOCK DECISION: CHINA CLOSES BORDER TO COAL IMPORTS FROM MONGOLIA WWW.NEWS.MN PUBLISHED:2018/11/20      7 STRATEGY INTRODUCED TO FOSTER PRIVATE SECTOR IN WESTERN MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      8 MONGOLIA TO STRENGTHEN ECONOMIC TIES WITH RUSSIA WWW.XINHUANET.COM PUBLISHED:2018/11/19      9 VOLKSWAGEN TO SPEND $50 BILLION ON ELECTRIC CAR 'OFFENSIVE' WWW.CNN.COM PUBLISHED:2018/11/19      10 HABITABILITY OF MONGOLIA UNDER THREAT FROM CLIMATE CHANGE WWW.ADELAIDENOW.COM.AU PUBLISHED:2018/11/19      ЭРЧИМ ХҮЧНИЙ ИХ АЧААЛАЛ 973 МВТ-Д ХҮРЧЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/20     ЗАСГИЙН ГАЗРЫГ ОГЦРУУЛАХ БИЧИГ ӨРГӨН БАРЬСНЫ ДАРАА "ГЭРЭГЭ" БОНДЫН ХАНШ БУУРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/20     ХАЙНАНЬД ЗУГААЛАХ ГЭСЭН МОНГОЛЧУУД УЛААН-ҮҮДЭЭС НИСЭХ ТАСАЛБАРЫГ ХУУ ХАМЖ БАЙНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/20     ГАШУУНСУХАЙТ БООМТ: ЖОЛООЧ НАРЫН МЭДЭЭЛЛИЙГ УРЬДЧИЛАН ЯВУУЛАХ БАЙДЛААР АСУУДЛЫГ ШИЙДВЭРЛЭХЭЭР БНХАУ-ТАЙ ТОХИРОЛЦЛОО WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/20     ЗАМЫН НӨХӨӨС, 100 ГАРУЙ ТӨРЛИЙН РЕЗИНЭН БҮТЭЭГДЭХҮҮН ДОТООДОД ҮЙЛДВЭРЛЭЖ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/20     АЛТНЫ ОЛБОРЛОЛТ ЭДИЙН ЗАСГИЙГ ДЭМЖИЖ БАЙНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/11/20     МОНГОЛЫН АНХНЫ ХУВИЙН ХӨРӨНГИЙН БИРЖИЙН ХОЁР ДАХЬ БҮТЭЭГДЭХҮҮН: “ПАРК ТАУН” БОНД WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/20     МОНГОЛ, ОХУ-ЫН ТЭЭВРИЙН САЛБАРЫН ХАМТЫН АЖИЛЛАГААГ ӨРГӨЖҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/20     БНХАУ-ЫН ОЛОН УЛСЫН ИМПОРТЫН ҮЗЭСГЭЛЭН БНХАУ-ОХУ-ЫН БИЗНЕСИЙН ХАРИЛЦААГ ӨРГӨЖҮҮЛЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/19     АМЧАМ МОНГОЛ 2018 ОНЫ ЖИЛИЙН ТАЙЛАНГИЙН ХУРЛАА АМЖИЛТТАЙ ЗОХИОН БАЙГУУЛЛАА WWW.IKON.MN НИЙТЭЛСЭН:2018/11/19    

Events

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

NEWS

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Speaker Tadamori Oshima briefs Mongolian press www.montsame.mn

Ulaanbaatar /MONTSAME/ Speaker of the House of Representatives of Japan Tadamori Oshima briefed journalists on the outcome of his visit to Mongolia on July 18, Tuesday.

Earlier in the day, he met with President Kh.Battulga, Parliament Speaker M.Enkhbold and Prime Minister J.Erdenebat. The Japanese Speaker is visiting Mongolia at the invitation of Speaker M.Enkhbold.

“Freedom and democratic values bring Japan and Mongolia together”, he told the journalists, stressing that the two countries are close partners. “We agreed to develop the bilateral strategic partnership in a wider scope including in political, economic, foreign relations, cultural and sports spheres”.

Speaker Oshima briefed the Mongolian press on the agenda of his meetings with the President, Parliament Speaker and Prime Minister, informing that he will convey the issues the Mongolian side put forward such as the construction of a carbon chemical complex, management of the new airport in Khushig Valley and construction of a railroad.

He then emphasized that it was his responsibility to develop bilateral parliamentary partnership, and wished the best of success to Mongolian athletes to compete at the 2020 Summer Olympics.

When asked about why he specifically chose Mongolia for a visit, he answered, “I have received invitations several times”. He said that he had decided to visit Mongolia in order to further elevate bilateral relationship. “I am accompanied by three young Members of the House of Representatives, and it demonstrates the priority the House of Representatives gives to Japan-Mongolia ties”. 
Kh.Aminaa

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Mayor of Berlin Micheal Muller meets President Kh.Battulga www.gogo.mn

On July 18, the President of Mongolia Khaltmaagiin Battulga welcomed Michael Muller, the Mayor of Berlin, the Federal Republic of Germany, who paid courtesy call on the President of Mongolia.

Mayor of Berlin Mr. Michael Muller congratulated President Battulga on his election as the President of Mongolia and wished success in his future endeavors.

At the meeting, Mayor of Berlin Mr. Michael Muller shared the experience of East Berlin city administration on reducing its smog and road traffic.

Sabine Kunst, the President of the Humboldt University of Berlin, who is accompanying the Mayor of Berlin, introduced her plan to expand the activities of the Faculty of Mongolian language at the Humboldt University of Berlin and train specialists in tourism and archeology.

Chief of Staff of the President Z.Enkhbold was present at the meeting.

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Mongolia, Japan seek to increase trade www.xinhuanet.com

ULAN BATOR, July 18 (Xinhua) -- Mongolian Parliament Speaker Miyegombyn Enkhbold met with the speaker of Japan's House of Representatives, Tadamori Oshimahere, on Tuesday to discuss a number of issues, including Japanese financial assistance and expanding trade ties.
Enkhbold said that Mongolia was pleased that Japan decided to provide Mongolia with more favorable financial assistance under the International Monetary Fund (IMF)'s Extended Fund Facility Program.
Enkhbold stressed the importance of closer cooperation between the parliaments of the two countries, assuring that the State Great Khural, Mongolia's parliament, will pay special attention to the implementation of a medium-term development program on Mongolia-Japan ties.
However, he noted that Mongolia and Japan should work to implement the Economic Partnership Agreement concluded between the two countries.
Over the past year, trade between Mongolia and Japan has grown significantly, and Mongolia will take necessary measures to eliminate double taxation to expand bilateral business cooperation, Enkhbold said.
Enkhbold also hoped Japan would pay more attention to a coal-chemical complex project in Mongolia.
Oshima said that Japan considered the expansion of bilateral cooperation with Mongolia a priority.
He stressed that, to further the development of trade and economic cooperation, both countries should consider eliminating double taxation, simplifying transportation procedures, and creating a fair, transparent and secure investment environment.

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Mongolia: An unexpected bastion of democracy thanks to its youth www.theconversation.com

By some accounts, democracy is under pressure. Freedom House, the American think tank, entitled its 2017 report, “Populists and Autocrats: The Dual Threat to Global Democracy.”

As the events in the United States, Hungary and Turkey illustrate, populism has played a particularly prominent role in fears about the decline of democracy.

Mongolia, meantime, held two national elections in the past year, one just last month. Both demonstrated that despite the temptations of populism, the country continues to embrace democracy. That embrace requires the engagement of young democrats in Mongolia and around the world.

Kh Battulga, leader of the Mongolian Democratic Party, goes to cast his vote at polling station Ulaanbaatar, Mongolia on June 26. The former artist and world champion in the martial art of sambo won the election. (AP Photo/Chadraabal Baramsai)
Some political transformations travel through geographic proximity or ‘contagion,’ even in an age of global communication. That holds true for democracy just as it does for the decline of democracy.

Proximity to the European Union reinforced democratic revolutions across eastern Europe in the 1990s. Pro-democracy revolutions in the Arab world spread from neighbour to neighbour. Setbacks to democracy in Thailand and recently, the Philippines, look like a regional pattern.

Exception to ‘contagion’ rule
Mongolia is an exception to such patterns since its democratic revolution in 1990. It has continued to build a democracy in a hostile region where its only neighbours are China and Russia, with North Korea and Kazakhstan just beyond those nations.

As populists, some with decidedly authoritarian tendencies, swept across the world’s democracies, there was a reasonable fear that Mongolia might fall victim to the temptation of anti-establishment rhetoric offering simple solutions to complex problems — the hallmarks of political populism.

In the aftermath of world-leading growth in 2011 on the back of investments in mining projects, Mongolia’s economic fortunes declined precipitously, requiring an IMF-led bailout earlier this spring. Mongolia’s dominant political parties have not developed ideological profiles, and are largely built around patronage.

Given the primacy of economic concerns in many elections and on Mongolians’ minds, it seemed an electorate ripe for the picking for populists.

In the 2016 parliamentary election, however, virtually all members of parliament who had built up a populist profile were defeated, even though the majoritarian election system should have given them an advantage.

Mongolians cast blank ballots in protest
In both the 2016 parliamentary election and the 2017 presidential election — the fifth election in Mongolia for which I served as an international monitor — voters shrugged off attempts by the respective ruling parties to buy their support.

In 2016, it was the surprise announcement by the Democratic Party (DP) that 49 per cent of the otherwise state-owned Erdenet Mine was sold by its Russian owners to Mongolian investors. In 2017, it was the equally surprising decision by the Mongolian People’s Party (MPP)-dominated parliament to reinstate child payments and distribute shares in Erdenet Mine.

No candidate received more than 50 per cent of the vote in the first round of the presidential election on June 26, amid reports of widespread vote-buying. In the run-off that became necessary for the first time ever, voters revolted against two-party dominance by casting a “none-of-the-above” blank ballot.

The blank ballot option had only been created with revisions to the election law in 2015. More than eight per cent of the electorate submitted blank ballots — an apparent testament to their frustration with the candidates nominated by large parties.

But isn’t new President Battulga a populist?
Yes, of course, the DP’s candidate — Khaltmaa Battulga, who won the run-off with 50.6 per cent of the vote — is clearly a populist by the characteristics outlined above.

He’s not known for careful consideration of policy options, but instead for shoot-from-the-hip pronouncements. He parlays his sometimes odd projects — like the giant mounted statue of Chinggis Khaan just outside of the capital, Ulaanbaatar — into claims of business expertise. He certainly flirts with encouraging sinophobia. Battulga and his opponent also embraced patriotic symbolism in their campaign.

But these were not the reasons why he managed to win the election. Instead, many voters — beyond party stalwarts — elected Battulga to provide a counterweight to MPP dominance in parliament. This was a strategic choice to force a Mongolian version of cohabitation on the MPP-led government.

Building democracy from Mongolia
This overall rejection of populism speaks to the fact that while Mongolia may not have a long democratic history, it’s an evolving democracy that has popular support. More than a young democracy, it is a democracy that is carried by the young, as more than half of the population were born after the democratic revolution.

The biggest question for the fate of democracy, likely not just in Mongolia, is the engagement of a new generation of voters and democrats.

Will younger party members in Mongolia be able to force their parties to abandon a view of political office as an earning opportunity? Can they initiate discussions about an ideological positioning of their party, in part to give Mongolians a real voice in the future development of their country?

Some civil society activists will try to build on the success of the blank ballot movement as a basis for a new party aimed at redirecting political culture away from patronage to substantive debates. Along with any mobilization against corruption, that new party could transform democracy in Mongolia.

While Mongolians did not contract democracy from their neighbours, their political choices serve as an example to the other emerging democracies of Asia, like Myanmar and the Kyrgyz Republic. Mongolian voters turning away from populism could be a part of a global resurgence of democracy.

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Rio’s revised iron ore guidance pushes price to three-month high www.mining.com

Prices for iron ore skyrocketed Tuesday as Rio Tinto (ASX:LON:RIO), the world’s second largest exporter, warned Tuesday that shipments from Australia were expected at about 330 million tonnes in 2017. That’s down from its April forecast of 330 million-to-340 million tonnes.

Ore with 62% content in Qingdao added $2.03 a tonne overnight, to close at $68.84 a tonne Tuesday, the highest level since mid-April according to the Metal Bulletin.

From the recent low of $53.36 a tonne hit on June 13, the benchmark price has now added more than 27% — an impressive return in a little over a month.

The surge also follows the release of strong Chinese Q2 GDP figures on Monday, including the news that crude steel output from the world’s largest producer climbed to the highest level on record in June.

Additionally, China's imports of the steelmaking raw material this year are on course to exceed 1 billion tonnes, breaking last year's record.

From the recent low of $53.36 a tonne hit on June 13, iron ore prices have now surged more than 27%.
The fresh rally has not made main forecasters change their negative outlook for the iron ore prices. Morgan Stanley recently cut its estimated third quarter price and the investment bank now sees iron ore averaging $50 a tonne over the period, climbing to $55 in the final three months.

For the year as a whole Morgan Stanley expects the commodity to average $63 compared to a year-to-date average of $74. It also said it expected iron ore to continue to soften averaging $58 next year and $54 in 2019.

The latest forecast from the Morgan Stanley is more optimistic than predictions in a research note Citigroup released last month. The bank lowered its price outlook by a fifth saying iron ore will average $48 a tonne in Q4 2017, down from $60 in its previous prediction.

Both analysis blame growing global supply – particularly from Vale's S11D mine and Roy Hill in Australia hitting full production – for the weak outlook. According to Citigroup, 2017 will see a surplus of 118m tonnes following a more than 60m tonnes glut last year. Morgan Stanley predicts nearly 40m tonnes of oversupply this year, growing steadily to top 120m tonnes in 2019 and 185m excess tonnes in 2021.

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UK 'now less appealing' to rich Chinese www.bbc.com

The UK has slipped down the list of preferred destinations for Chinese millionaires considering moving overseas, a report suggests.
While the US remains the favourite place to settle, Canada now ranks second pushing Britain into third spot.
The survey found around half of those millionaires quizzed were mulling a move abroad.
Pollution, education and the falling value of the Chinese yuan depleting savings were all reasons given.
The study by Huran Report and Visa Consulting Group surveyed 304 Chinese individuals with a net worth between $1.5m and $30m. About half were based in Beijing, Shanghai, Guangzhou or Shenzhen.
"Education and pollution are driving China's rich to emigrate," said Huran Report chief researcher Rupert Hoogewerf.
"If China can solve these issues, then the primary incentive to emigrate will have been taken away."

Currency concerns
The report had no details on why the UK had slipped behind Canada.
Los Angeles was the favourite destination for wealthy Chinese followed by Seattle, San Francisco and New York. London ranked 14th.
The strength of China's currency, which fell to an eight-month low last November, is clearly playing on the minds of many of China's rich.
Of those surveyed, 84% said worries about devaluation was a key factor driving them overseas.

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Japanese Speaker of House of Representatives visiting Mongolia www.montsame.mn

Ulaanbaatar /MONTSAME/ At the invitation of Parliament Speeker M.Enkhbold, Speaker of the House of Representatives of Japan Tadamori Oshima is visiting Mongolia on July 17-19.

Within the framework of his visit, Mr. Tadamori Oshima will pay a courtesy call on President Kh.Battulga and meet with Parliament Speaker M.Enkhbold and Prime Minister J.Erdenebat to discuss close cooperation of the Parliaments on developing bilateral, multilateral and regional Strategic Partnership.

Furthermore, Mr. Tadamori Oshima is planning to visit the new international airport in Khushig Valley, which was built within the framework of the Official Development Assistance of Japan.

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Copper price jumps on gangbusters China growth www.mining.com

Copper futures trading on the Comex market in New York jumped on Monday on renewed optimism about economic strength in top commodity consumer China.

Copper for delivery in September jumped to a high of 2.7375 a pound (just over $6,000 a tonne) in lunchtime trade, up 1.7% on the day to the highest level since end-March. LME copper's 2017 year to date gains in percentage terms are now within shouting distance of 10%.

The economy of China, responsible for nearly half the world's consumption of copper, expanded at an annual rate of 6.9% in the second quarter against expectations of a slight decline and at a quicker pace than Beijing's own target of 6.5% growth for 2017.

In seasonally-adjusted quarter on quarter terms, growth was even more significant, picking up from 1.3% to 1.7%. If the trend continues, this year would be the first time since 2010 that the Chinese economy grew faster than the year before.

Industrial production data for June released today also pointed to a significant improvement. Growth in industrial output picked up from 6.5% year on year to 7.6% led by greater electricity and steel production. Bloomberg consensus forecasts pointed to no acceleration for Chinese industrial output.

Despite Beijing's tightening of lending and other measures to cool the property market, construction starts surged by more than 14% in June, providing further support for commodity-intensive sectors which continue to expand at a faster rate than the broader measure of industrial production.

The copper price is seen as a bellwether for metals markets and industry as a whole thanks to its widespread use in construction, the power sector, manufacturing and transportation.

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Property and income of President, Prime Minister and Deputy Speaker of Parliament www.gogo.mn

According to the Law on Anti-Corruption, high level of state officials must submit their declarations of their property and income to the Anti-Corruption Agency within 30 days of appointment. 
This year a total of 242 state servants have measured to fill the property and income declaration of 2016. As of Jul 18th, Anit-Corruption Agency posted declarations of 239 state officials on their website. 
The newly elected president of Mongolia Kh.Battulga`s property and income totaled USD 467,380 (1 billion 124 million tugrik) in 2016. Note that it does not include the cost of the president's Lexus 570.
Details were as follows:
Annual income - USD 54,097 (130 million tugrik)
Annual income of his family members - USD 12,898 (31 million tugrik) 
Housing and apartment - USD 379,452 (912 million tugrik)
Livestock - 1 herd of horses worth USD 4,992 (12 million tugrik)
Savings - USD 1,663 (4 million tugrik)
Snuff bottle - USD 14,557 (35 million tugrik)
Moreover, President Kh.Battulga is a shareholder of more than 20 companies including Genco Tour Bureau, Makh Impex, Talkh Chiher and Bayangol Hotel.

Meanwhile, property and income of Prime Minister J.Erdenebat and his family were USD 675,655 (1 billion 622 million) in 2016. 
Details were as follows:
Annual income - USD 80,709 (194 million tugrik)
Annual income of his family members - USD 78,628 (189 million tugrik) 
Housing and apartment - USD 58,641 (141 million tugrik)
Transportation - USD 128,512 (309 million tugrik)
Livestock - USD 67,375 (162 million tugrik)
Savings - USD 30,768 (74 million tugrik)
Jewelry - USD 29,521 (71 million tugrik)
Prime Minister J.Erdenebat took a loan worth USD 33,256 (80 million tugrik) from non-bank financial institutions. 
In addition, he is a shareholder of five companies and his total stock value is USD 233,629 (562 million tugrik).

In 2016, a total income and property of Deputy Head of State Great Khural or the Deputy Speaker of Parliament Ts.Nyamdorj was USD 151,407 (364 million tugrik). 
Details were as follows:
Annual income - USD 71,108 (171 million tugrik)
Annual income of his family members - USD 2,661 (6.4 million tugrik) 
Housing and apartment - USD 62,375 (150 million tugrik)
Transportation - USD 10,393 (25 million tugrik)
Savings - USD 1,912 (4.6 million tugrik)
Jewelry - USD 2,910 (7 million tugrik)
Ts.Nyamdaorj has 214 owns 214 stocks of Erdenes Tavan Tolgoi JSC and he reported that he has no debt.

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The Investment Outlook of Mongolia in 2H 2017 www.frontier.mn

As we have pointed out last week, we are more optimistic about the future in a long run. However, investors are cautioned that the roads ahead are still bumpy. Below are the several check lists that investor should be aware of in the next few months.

Please review the full version at www.frontier.mn

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