News

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

Road and transport minister visits concrete sleeper factory in Khutul www.montsame.mn

Ulaanbaatar /MONTSAME/ A working group headed by D.Ganbat, Minister of Road and Transport Development got acquainted with the activities of Concrete Sleeper Factory of Ulaanbaatar Railway joint stock company’ in Khutul, Selenge aimag.

Founded in 1997, the concrete sleeper factory in Khutul has a capacity to manufacture 180 thousand concrete sleepers a year. The factory employs 150 workers in its 6 main units. Previously, the factory used to ,make “FZ” concrete sleeper with Chinese technology and now they have been manufacturing “APC” reinforced concrete sleeper with more advanced technologies from Russia since 2006. The factory has a plan to produce 150 thousand pieces of concrete sleepers this year and as of today, the factory has produced 50 thousand pieces.

Moreover, the authorities of the factory introduced about the present state of the factory, which manufactures 20 types of concrete structures, such as bridge structures, concrete base and road curb apart from concrete sleepers and provides them to the domestic market.

During his meeting with the authorities and over 150 employees of the Concrete Sleeper Factory, Minister D.Ganbat gave information about government activities and policy. In frames of the meeting, Minister D.Ganbat obliged the relevant authorities to study opportunities of the Concrete Sleeper Factory to manufacture concrete sleeper for narrow-gauge railway.

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Samsung plans $18.6 billion South Korea investment to widen chip lead www.reuters.com

Samsung Electronics Co Ltd (005930.KS) said on Tuesday it will invest at least $18.6 billion in South Korea to extend its lead in memory chips and next-generation smartphone displays, in a plan that promises to create almost half a million jobs.

The investment underscores Samsung's determination to widen its lead in memory chips, which are expected to propel Asia's third most-valuable company to record profit this year. It routinely invests more than $10 billion in chips annually, helping it stay ahead of competitors such as cross-town rival SK Hynix Inc (000660.KS) and Japan's Toshiba Corp (6502.T).

The announcement follows repeated calls from new South Korean President Moon Jae-in for big businesses to invest more domestically as part of a wider job-creation agenda. Samsung said its plan could open up to 440,000 roles by 2021.

The huge investment is also likely to alleviate shareholder fears of major decisions being delayed in the absence of Vice Chairman Jay Y. Lee. The leader of Samsung Group [SAGR.UL] is on trial charged with bribing former president Park Geun-hye for political favors.

"Samsung is being more aggressive in domestic investments because of the current (political) climate," said Park Ju-gun, head of corporate analysis firm CEO Score.

The firm also needs to show initiative domestically after announcing a $380 million plant in the United States, Park said.

SUPPLY SHORTAGE

Memory makers are widely expected to post record profits in 2017 as prices rise in response to demand for more features in smartphones and servers, as well as a persistent supply shortage which analysts and industry sources said is more acute for NAND chips due to increasing adoption of high-end storage products.

Samsung, SK Hynix and Toshiba have committed billions of dollars to boost NAND output in recent years, yet shortages are expected to persist at least through 2017 as new facilities will not make meaningful supply contributions until next year.

Under its latest spending plan, Samsung will put 14.4 trillion won into its new NAND factory in Pyeongtaek by 2021. It will invest 6 trillion won in a new semiconductor production line in Hwaseong, but did not elaborate on timing or product.

Some analysts said additional capacity across the industry could cause slight oversupply in early 2018, but that prices are unlikely to drop because demand is so strong.

"There's no chance of major oversupply issues, and I think Samsung is investing so much because it's convinced that won't happen," said Shinhan Investment analyst Choi Do-yeon.

CHIPS IN CHINA

Samsung also said it will add a production line to its NAND plant in Xi'an, China, though it has not yet set an investment amount or time frame.

Some South Korean companies in China have seen sales decline or have had to reduce operations since Beijing objected to Seoul's deployment of a U.S. anti-missile defense system in March. But components makers have not reported any problems, with Samsung still among China's biggest suppliers of chips and displays.

The firm accounted for 40.4 percent of global memory chip revenue in January-March, showed latest data from researcher TrendForce.

China is trying to develop its own memory chip producers but it is likely to take several years before they can compete with existing makers, analysts said.

Samsung on Tuesday also said Samsung Display plans to invest around 1 trillion won on a new organic light-emitting diode (OLED) display complex in South Korea.

The unit controls over 90 percent of the market for OLED smartphone screens, and is widely expected to add production lines to cope with demand from phone makers such as Apple Inc (AAPL.O).

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Prime Minister J.Erdenebat says recession has ended for Mongolia www.theubpost.mn

On June 30, Prime Minister J.Erdenebat made an address to Parliament during its regular session, reporting that the economic recession had ended and that the basis for further development has been laid.

The Prime Minister detailed how an economy that once had an annual GDP growth of 17 percent had been derailed, registering a 1.6 percent shrink in GDP in the third quarter of 2016.

“By the end of 2016, GDP growth had reached 1.2 percent and further surged to a surprising 4.2 percent growth in the first quarter of 2017. We were able to revive a failing economy in only three quarters,” said J.Erdenebat.

With the help of the IMF extended fund facility program, the foundation for economic growth has been set according to the Prime Minister J.Erdenebat. Although the statistics of economic growth are accurate, analysts question whether the unexpected growth is really attributed to the IMF program, as opposed to external forces such as coal prices.

Rising value-added production has been credited as the reason for the 4.2 percent GDP growth. Sales revenue from value-added production and service was at 122 billion MNT in the first three months of 2017. In comparison, the first quarter of 2016 saw a GDP growth of 3.2 percent.

The biggest contributors to growth were increases in production in agriculture, services, and construction. On the other hand, growth in the mining and manufacturing sectors had declined.

“Our government was able to stop the depreciation of the MNT and protect the purchasing power of citizens by increasing foreign exchange reserves, improving fiscal discipline, stabilizing the macro economy and restoring investor confidence,” he said.

Mongolia plans to cap the state debt at 60 percent of GDP by 2021 and even lower in the future, the Prime Minister added

Mongol Bank received an initial fund of 38.6 million USD from the IMF under an enhanced financing program as part of its extended fund facility on May 25, 2017.

After the implementation of the program, Mongolia will receive a soft loan of 434.3 million USD from the IMF to help stabilize the country’s economy and support its economic reforms, the government reports.

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Mongolian citizens living abroad vote today www.news.gogo.mn

The second round of polling of presidential election of Mongolia will be held on July 7th nationwide. Thus, the voting of Mongolian citizens living in abroad has started today.

Nearly 140 thousand Mongolians are living in overseas. However, precisely 7209 of them were registered to vote in the presidential election 2017.
The polling is taking place at 45 embassies and consulates operating in 32 countries including Russia, South Korea, China, Australia, United Kingdom, USA, Germany, and Kazakhstan. The votes will be counted on July 7th.

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Introductory event for development road initiative held in Beijing www.montsame.mn

Ulaanbaatar /MONTSAME/ Within the framework of his visit to the People’s Republic of China, PM J.Erdenebat signed a memorandum of understanding on coordinating “Development Road” and “Belt and Road” initiatives between the Governments of Mongolia and China. In order to advance the coordination of development strategies of the two countries, the Embassy of Mongolia to China organized an introductory event for “Development Road” initiative in Beijing, China on June 28.

At the event, Ambassador Extraordinary and Plenipotentiary of Mongolia to China D.Gankhuyag delivered an opening speech and Advisor to the Ministrer of Road and Transport Development D.Gotov, Head of Railway and Maritime Policy Implementation and Coordination Department of the Ministry B.Arthur and a officer of the Mongolian Embassy T.Munkhgerel presented a synopsis of “Development Road” initiative, Infrastructure Policies, short-term proposed works, auto road and railroad corridors.

The introductory event was attended by representatives of China's Ministry of Transport, National Development and Reform Commission, Ministry of Commerce, China Railway General Company and Inner Mongolia, who afterwards exchanged views on issues of bilateral cooperation.

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Clean coal could trump renewables bill in Australia www.mining.com

A high-efficiency, low emissions (HELE) coal-fired station would cost less than the almost A$3 billion (roughly $2.3bn) of subsidies handed out for renewable projects each year, a study published Monday argues.

According to the report released by the Minerals Council of Australia and COAL21 Fund — a nest egg owned by local coal producers —, the sum required to build a 1000MW ultra-supercritical (USC) coal-power plant is A$2.2bn.

The figure, based on data compiled by power and energy sector specialists GHD and Solstice Development Services, not only is lower than the total subsidies for renewables, but it would generate the cheapest electricity on the market, the study says.

Clean coal could trump renewables bill in Australia

Source: BAE Economics for Minerals Council of Australia.

A HELE coal plant would produce electricity at $40-$78 per megawatt hour, compared with gas at $69-$115/MWh and solar at $90-$171. That means, according to the study, that clean-coal plants could drive down energy­ prices in Australia.

That outcome would be more than welcome by consumers, which are bracing for a 20% increase in electricity costs between 2017 and 2018.

On top of that, an increase in electricity demand paired with a drop in supply since 2014 have strained the Australian grid, causing outages amid heat waves and storms. The worst — an eight-hour blackout in South Australia last year — crippled industry for up to two weeks and triggered public outrage.

Getting new-generation coal plants across the line wouldn’t be an easy task. Not only the federal government would likely face fierce opposition from environmental groups, but also it would have to solve what David Byrne, researcher and lecturer in economics at the University of Melbourne calls “the energy trilemma”:

In the face of rapid technological change in the energy sector, policy needs to evolve to achieve three objectives:

meet Australia’s Climate Change commitments under the Paris Agreement;

ensure stable supply of energy so the ‘lights don’t go out’ (again);

mitigate rising electricity costs, particularly for vulnerable and elderly households.

Addressing this challenge is akin covering a floor with a rug where the rug is just a bit too small.

coal-fired power plants have provided stable, low-cost energy supply to Australians for years, yet they are very heavy polluters;

wind and solar energy is clean with zero production cost once windmills or solar panels are in place, but they only generate power when the wind blows and sun shines, thereby creating energy supply instability;

natural gas is significantly cleaner than coal and can readily provide stable energy supply, but its cost is rapidly rising on the international market.

In short, each of these three primary sources of power solves two of three problems. No matter how you position the rug, one of the corners of the room is uncovered.

In addition, authorities would have to deal with the fact that none of the country's major generators — AGL Energy, Engie, Origin or EnergyAustralia — wants to build new coal -fired plants, as their customers and shareholders push for cleaner energy.

Coal -fired power has fallen to around 63% of Australia's total generation as of 2015, official data show, down from around 80% in 2000.

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John Wood : From London to Mongolia www.4-traders.com

For two Wood Group engineers based in London, the company's more unified structure has seen their careers take a path they probably never expected. Seconded to STS's clean energy business at the start of 2017, Evangelos Alexakis and Charlie O'Toole have travelled across the globe to support the Tsetsii Wind Farm development in Mongolia.

Located in the southern Gobi Desert, 500km south of the Mongolian capital Ulaanbaatar, the 50MW wind farm site comprises approximately 72km of remote, open desert and an isolated mountain location. The Mongolian weather is so extreme that the site closes over the winter months when temperatures drop to -25°C, while in the summer the site bakes in up to 40°C.

Our clean energy business has been involved in wind farm developments in Mongolia since 2010; when they supported the development and construction of Mongolia's very first, and so far only, wind farm. We have supported the Tsetsii Wind Farm project as owner's engineer through the feasibility and pre-construction phases, and now in the construction phase are providing project management support, site monitoring, and technical reviews. It was not until this project that Group engineers from out with clean energy have provided support. Employees from the US, Germany, China and Hong Kong have also been involved.

Before travelling to Mongolia, Evangelos and Charlie were embedded into the clean energy team in Glasgow, gaining as much renewables exposure as possible and increasing their knowledge by working on different sites in the UK. Clean energy colleagues worked alongside them, providing general guidance and accompanying them to key stage visits such as pouring the concrete for wind turbine generator foundations.

Evangelos, a structural engineer, says: 'I am able to apply my knowledge and skills in a wide variety of renewable energy technologies, some already established and some cutting edge, which gives me the opportunity to develop individually and as part of a team.

'Engineering in the renewable sector is very enjoyable and rewarding - the multidisciplinary nature of the industry, the wide application of engineering and management practices throughout the project, the exposure to the latest technologies, strategies and best-practices, and needless to say the satisfaction of helping to reduce carbon emissions. It has been an exciting upwards career journey.'

Civil engineer, Charlie, says: 'In terms of skills, transitioning to the renewable sector has been comparatively straightforward. There are a lot of similarities between traditional energy and power projects, and renewable projects and technology. Many of the technical and managerial needs of the renewable sector are similar to those in traditional energy and power industries. Personally, I have been very proud to work with my clean energy colleagues, my knowledge has increased and the opportunity to work within another great team of problem solvers has been an excellent experience.'

Brian Macdonald, clean energy implementation team leader adds: 'It's extremely useful to have these colleagues on board, not just for the Tsetsii Wind Farm project, but in a number of other projects. Being able to access resource from across the Group has been a big advantage and any lack of specific renewable energy experience is outweighed by their general capability, willingness to learn and positive attitude. We would like Charles and Evangelos to stay with us in clean energy to use the knowledge and experience they have gained in Mongolia on other similar projects. There are opportunities for them all over the world.'

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Mongolia: Death penalty confined to history as new criminal code comes into effect www.montsame.mn

Ulaanbaatar /MONTSAME/ Amnesty International welcomes the coming into force of the new Criminal Code and Code of Criminal Procedure in Mongolia as an historic milestone in the country’s journey towards full enjoyment and protection of human rights. The new Criminal Code, which abolishes the death penalty for all crimes, became effective on 1 July 2017 after it was adopted by the Mongolian Parliament on 3 December 2015.

Today’s development brings to completion a seven year process towards abolition which formally began in January 2010, when the country’s President, Tsakhiagiin Elbegdorj, commuted all death sentences and announced an official moratorium on executions. The move was followed two years later by the ratification of an international treaty committing the country to the abolition of the death penalty. Amnesty International Mongolia has relentlessly campaigned for abolition since the national human rights group was first established in 1994.

The new legal text also contains advances on other human rights issues. For example, it includes for the first time a definition of torture that broadly reflects the ones outlined in the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment. Regrettably however, Mongolia has failed to take the opportunity of the new legislation to put in place and implement protective mechanisms to prevent and punish torture, such as establishing an independent and effective mechanism to investigate torture allegations.

Mongolia and the death penalty

The last execution in Mongolia was carried out in 2008 and death sentences imposed since the moratorium was established in 2010 have been routinely commuted. However, figures on the use of the death penalty in the country remained classified as a state secret.

Today Mongolia becomes the 105th country to have freed itself from the ultimate cruel, inhuman and degrading punishment. It is the eighth country to have done so in the past five years, alongside Benin, Congo (Republic of), Fiji, Latvia, Madagascar, Nauru and Suriname. During the same period, Guinea also abolished the death penalty for ordinary crimes only.

As other countries in the Asia Pacific region continue to execute or even contemplate reinstating the death penalty, in clear violation of their international law obligations, Mongolia’s journey over the past decade is not only illustrative of the overwhelming global trend in favour of the abolition of the death penalty, but also of the critical importance that political leadership plays in driving human rights change.

Amnesty International opposes the death penalty in all cases without exception, regardless of the nature or circumstances of the crime; guilt, innocence or other characteristics of the individual; or the method used by the state to carry out the execution. The organization renews its call on the authorities of countries that still retain this punishment to follow Mongolia’s example and immediately abolish the death penalty once and for all.

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GCF completes USD 20 million transfer to drive clean Mongolian energy sector www.greenclimate.fund

The Green Climate Fund is helping Mongolian enterprises kick start a national, low-carbon energy sector with its completion of a USD 20 million funds transfer to a Mongolian bank.

The bulk of GCF’s contribution, USD 19.5 million, will allow Mongolia’s XacBank extend loans to micro, small and medium-sized enterprises to break down financial barriers to low-carbon investment.

An aversion to the risks of opening new markets means Mongolian entrepreneurs currently lack the necessary commercial finance to carve out new businesses in energy efficiency and renewable energy.

This five-year project is being implemented by XacBank, one of Mongolia’s major lenders which became the country’s first and only bank specializing in eco-banking in 2009. At the end of last year, GCF designated XacBank as a direct access Accredited Entity, which propose and implement GCF-financed climate initiatives.

“This disbursement marks an important milestone in the continued development of sustainable financing business of XacBank and our cooperation with the Green Climate Fund,” said Amartuvshin Hanibal, President of XacBank.

While many Mongolian people currently burn low-quality coal in their homes for heating and cooking, the government is striving to leap frog their landlocked nation into adopting a low-carbon energy sector.

In accordance with GCF’s gender focus, at least half of GCF’s loan support in this project will go towards women-led enterprises.

“This project will empower women and reduce emissions,” said Ayaan Adam, Director of GCF’s Private Sector Facility. “It will show women-led enterprises can make a strong impact in Mongolia’s private sector. Mongolian micro, small and medium-sized enterprises can demonstrate that low-carbon investment is the business of the future.”

Ms Adam added the growth of a low-carbon energy sector fits well with the Mongolian Government’s move to raise the percentage of renewables to 20 percent of national energy generation by 2020, according to the country’s Nationally Determined Contribution under the Paris Agreement.

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EBRD supports Mongolian logistics company Terra Express www.ebrd.com

The EBRD is supporting the integration of Mongolia into the global economy with the provision of a US$ 7.6 million financial package to Terra Express, a leading local logistics company.

“Integrated” is one the six transition qualities that the EBRD has identified as elements of a successful and sustainable economy. The other qualities are resilient, green, competitive, well-governed and inclusive.

The loan to Terra Express is the first project in the transport sector financed by the EBRD in Mongolia. It will consist of two tranches and support the expansion of the company by restructuring its balance sheet.

Terra Express, established in 2011, is a mining logistics service provider. With the expansion of the multi-billion-dollar Oyu Tolgoi mining project the market demand for the services of Terra Express is expected to increase significantly. In turn, Terra Express plays an important role in the value chain of key exports. The company is preparing itself for this increase with an ambitious investment programme that includes the acquisition of 35 new vehicles.

Ekaterina Miroshnik, EBRD Director for Infrastructure, Russia, Central Asia and Mongolia, said: “We are very pleased to support Terra Express with our financing, which will bolster the company’s investment programme. Improved and intensified logistics will play an important role in the integration of Mongolia into the global economy.”

Irina Kravchenko, EBRD Head of Mongolia, commented: “Mongolia has big potential, and young and innovative private small businesses such as Terra Express are key to realising this promise. This project supports the recently approved EBRD strategy for Mongolia with a focus on infrastructure and private sector development.”

Altanbagana Shiituu, CEO of Terra Express, added: ‘’I look forward to a long and mutually beneficial partnership with the EBRD, helping to expand our capacity and improve our operational safety and environmental standards. This financing will allow Terra Express to target new and exciting market opportunities within the Mongolian logistics sector. We appreciate the EBRD’s commitment to private entrepreneurship in Mongolia and the future development of our company.”

Since the start of its operations in Mongolia in 2006, the EBRD has invested over €1.4 billion in more than 80 projects in various sectors of the country's economy.

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Category

Events

Events

NEWS

Road and transport minister visits concrete sleeper factory in Khutul www.montsame.mn

Samsung plans $18.6 billion South Korea investment to widen chip lead www.reuters.com

Prime Minister J.Erdenebat says recession has ended for Mongolia www.theubpost.mn

Mongolian citizens living abroad vote today www.news.gogo.mn

Introductory event for development road initiative held in Beijing www.montsame.mn

Clean coal could trump renewables bill in Australia www.mining.com

John Wood : From London to Mongolia www.4-traders.com

Mongolia: Death penalty confined to history as new criminal code comes into effect www.montsame.mn

GCF completes USD 20 million transfer to drive clean Mongolian energy sector www.greenclimate.fund

EBRD supports Mongolian logistics company Terra Express www.ebrd.com

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