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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"Mongolian tax rate is low compared to other developing countries" www.mongolia.gogo.mn

 
On 12 March, Mongolian Business Council held its regular meeting among its members.
At the beginning of the meeting, new members of the council were introduced. Following John Langtry, Australian Ambassador to Mongolia briefly introduced Women`s Leadership Program (WLP), which is a sub component of the Australia Awards Mongolia and is funded by the Department of Foreign Affairs and Trade of Australia. WLP is designed for male and female alumni of the Australia Awards Mongolia who have completed Masters degree programs in Australia and are currently working as mid career professionals in public, private and civil society organizations.
Mongolia has reached Staff-Level Agreement with International Monetary Fund (IMF) on Three-Year Extended Fund Facility. Meeting participants discussed the effects of IMF`s program on economy. Economist D.Jargalsaikhan moderated the discussion and James Anderson, World Bank's Country Manager for Mongolia, Neil Saker, the IMF`s Resident Representative in Mongolia, B.Lkhagvasuren, vice president of Bank of Mongolia answered questions of participants.
B.Lkhagvasuren, vice president of Bank of Mongolia stated that previous authorities spent US$ 8 billion in vain which caused current budget deficit.
Economist D.Jargalsaikhan noted that now the Government officials will hear our voice. They become more obedient during economic difficulties. Thus we should constantly express our voice and demands.
Participants questioned that in scope of IMF`s Extended Fund Facility Program, Mongolia will increase six types of tax rates and social insurance contributions. Will it shrink the economy and cause bankruptcy for private sector?
In response, Neil Saker, the IMF`s Resident Representative in Mongolia: "Mongolian tax rate is low compared to other developing countries. 10 percent of personal income tax rate is at the same level as countries in the Middle East".
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JPMorgan, HSBC, Citigroup Said to Be Hired on Saudi Dollar Sukuk www.bloomberg.com

 
Saudi Arabia hired Citigroup Inc., JPMorgan Chase & Co. and HSBC Holdings Plc as global coordinators on its international Islamic bond sale, according to people with knowledge of the matter.
 
The kingdom also picked Deutsche Bank AG and BNP Paribas SA among others as lead managers for the sale, the people said, asking not to be identified as the talks are private. The sukuk could come as soon as this month, two of the people said.
 
The world’s biggest oil exporter is considering international and domestic debt issues to help finance its budget deficit. The country may post a budget deficit of 198 billion riyals ($53 billion) this year, equal to about 7.7 percent of economic output. It’s also turning to the main banks on its $17.5 billion debut international bond sale in October, a record for an emerging market nation, when it also worked with JPMorgan, Citigroup and HSBC.
 
The banks and Saudi Arabia’s finance ministry declined to comment.
 
The world’s biggest oil exporter plans to raise between $10 billion and $15 billion from international bond markets in 2017 and sell about 70 billion riyals locally, said Mohammad Al Tuwaijri, secretary-general of the Finance Committee at the Royal Court in December.
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Intel buys driverless car technology firm Mobileye www.bbc.com

 
Intel will pay $63.54 a share in cash for the Israeli company, which develops "autonomous driving" systems.
Mobileye and Intel are already working together, along with German carmaker BMW, to put 40 test vehicles on the road in the second half of this year.
Intel expects the driverless market to be worth as much as $70bn by 2030.
Jerusalem-based Mobileye has contracts with 27 car makers. It also controls about two thirds of the market for software that runs automatic emergency braking and semi-autonomous cruise control systems already fitted to cars and trucks.
Technology companies are racing to launch driverless cars.
Earlier this month, Nissan test drove a converted Leaf vehicle and said it hoped to make the cars available by 2020.
Google has also done extensive development of driverless cars.
Announcing the deal, Intel said that as cars "progress from assisted driving to fully autonomous, they are increasingly becoming data centres on wheels".
The chipmaker reckons that by 2020 driverless cars will generate 4,000 GB, or 4 terabytes, of data a day that can be mined for information.
Betsy Van Hees, analyst at Loop Capital Markets, said Intel had very little presence in the automotive market, "so this is a tremendous opportunity for them to get into a market that has significant growth opportunities".
Timothy Carone, a Notre Dame University academic, said: "Major players are finding ways finding ways to position themselves for a change as seminal as the personal computer revolution."
Shares in Intel fell 2.2% to $35.10 in New York.
Mobileye was founded in 1999 to develop "vision-based systems to improve on-road safety and reduce collisions".
The company, along with Intel's automated driving group, will be based in Israel and led by Amnon Shashua, Mobileye's co-founder, chairman and chief technology officer.
In its results for last year, Mobileye said revenue more than tripled to $358m, while pre-tax profit jumped from $79.7m to $125.4m.
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Toshiba delays earnings release again www3.nhk.or.jp

 
Toshiba Corporation is delaying the release of its financial results again.
 
The conglomerate last month delayed the February 14th release of its earnings results for the April to December period. It said it needed to examine alleged inappropriate pressure on its US nuclear unit, Westinghouse, which is the main cause of the huge losses Toshiba suffered.
 
Toshiba has decided to undertake another delay after its auditing firm pointed out that it should examine when it found out about the risk of the losses.
 
According to people familiar with the matter, the auditing firm says the investigation may take around one month. If the Kanto Local Finance Bureau approves another delay, a new deadline will be set.
 
Toshiba President, Satoshi Tsunakawa plans to hold a news conference on Tuesday to explain the delay.
 
Attention is also focused on what he might say about a review of the company's nuclear business.
 
Toshiba has been studying the possibility of filing for Chapter 11 and withdrawing from its nuclear business in the United States as one of the options.
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New standard stoves to be retailed from April 1 www.montsame.mn

Ulaanbaatar /MONTSAME/ During a recent press conference, Air Pollution Reduction Department of the Ulaanbaatar Administration informed that an order regarding the sales of a new standard stove has been delivered to main markets like ‘Narantuul and Kharkhorin.

The press conference was co-held by Air Pollution Reduction, Environment, Health and Land Departments of the Ulaanbaatar Administration last Friday, and addressed the implementation of Ulaanbaatar Mayor’s ordinance issued in January and commonly asked questions by citizens.

M.Delgerekh, Head of the Air Pollution Reduction Department said, “National Security Council’s meeting on January 10 concluded that air pollution in the capital city had reached a hazardous level. In scope of the statement, Citizens’ Representative Khural of the capital city and aimags were ordered to draft a set of measures to be taken”.

“Our department has taken several measures, including the implementation of City without Smoke 2030 project and 2016-2020 action plan of Ulaanbaatar Mayor, authorizing specialized inspectors to inspect air pollution in four zones and inspections at steam boilers in Ulaanbaatar. We’ve also installed 200 air filter equipments in 50 kindergartens in the most polluted zones”, he said.

According to him, main markets will begin new standard stove sales from April 1 onwards and furthermore, stove producers will be under inspection. The new stove is estimated to reduce air pollution in the capital by up to 35 percent.

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Alibaba's next avatar: A tech powerhouse www.chinadaily.com.cn

 
Alibaba Group Holding Ltd said on Monday it is setting up a dedicated research task force to spearhead innovative and potentially revolutionary new paths to growth, with the goal of transforming the e-commerce trading platform into a well-rounded and technology-driven powerhouse.
 
The group said that through a new and independent research and development department dubbed NASA, the internet juggernaut is setting its sights on developing core technologies that would serve 2 billion people in 20 years.
 
Founder and Chairman Jack Ma said the R&D initiative accords with a broader plan to turn Alibaba into what he called "the world's fifth largest economy", creating 100 million jobs and enabling 10 million enterprises to become profitable in two decades.
 
"Just like how the National Aeronautics and Space Administration fueled fundamental progress of science and technology and facilitated people's lives, new economies must be built upon new technology-enabled infrastructure," said Ma, who was speaking at the company's first internal technology conference held in its headquarters in Hangzhou last week.
 
Ma, whose comments were released in a statement by the company on Monday, added that Alibaba is ready to shoulder the responsibility of major technological breakthroughs.
 
Areas of focus would include, but not be confined to, machine learning, chips, the internet of things, operating systems and biometric identification, Ma said.
 
Alibaba's Chief Technology Officer Zhang Jianfeng said: "Today we've reached a tipping point when technology makes a real difference."
 
The new R&D agency intends to move away from the old business model, under which technology focused on supporting business operations.
 
Instead, Alibaba said it wanted to establish a pure holistic R&D mechanism that furnished the group with cutting-edge technological solutions that would be in the pipeline for the coming one or two decades.
 
The company currently employs more than 20,000 engineers, more than 500 of whom have PhDs. Nine of its 36 partners on the management board are experienced engineers.
 
Alibaba has been pushing hard on the technology front, from using facial recognition technologies in digital payments, adopting artificial intelligence to help mitigate traffic congestion around Hangzhou, to leveraging big data in anti-piracy campaigns.
 
Among the latest effort is a pilot program rolled out last week by the company's cloud-computing arm Alibaba Cloud in partnership with Intel Corp, under which the two agreed to build a cloud-based acceleration service that enables cloud-service customers to have virtual access to a larger set of computer resources more effectively.
 
Zhang Mengmeng, a senior researcher at Counterpoint Technology Market Research, said that as Alibaba grows its core businesses into a collaborative ecosystem, it will need technology as the firepower to enhance its complementary capabilities.
 
"It's a visionary move. Alibaba is no longer content with being recognized as an online trading platform," she said.
 
"It needs new technologies to fulfill and balance its multiple roles as a virtual shopping mall, a cloud computing provider, a payment tool, and a logistics network."
 
China's internet triumvirate known as BAT (for Baidu Inc, Alibaba and Tencent Holdings Ltd) are all sparing no efforts in their push for technological breakthroughs. Search engine Baidu is delving into artificial intelligence research, by championing a national lab for deep learning.
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Hyundai Engineering In $3.2B Petrochemical Project In Iran www.oilprice.com

 
South Korea’s Hyundai Engineering Co said on Monday that it had signed a deal worth US$3.2 billion with Iran’s Ahdaf Investment Company for the construction of the second phase of a petrochemical complex in Iran.
 
“The project allowed us to spearhead into the Iranian construction market as a lead manager. We plan to do everything in our capacity to clinch additional projects in the future,” a spokesperson for Hyundai told The Korea Herald, which noted that the deal is the largest so far signed by a South Korean company in Iran.
 
Hyundai Engineering will act as lead manager of the Kangan Petro Refining Complex in southwestern Iran. The petrochemical complex is planned to have an annual production of around 1 million tons of ethylene, 500,000 tons of monoethylene glycol, and 350,000 tons of heavy and light polyethylene, The Korea Herald reported.
 
The financing of the deal – which was signed as an Engineering, Procurement, Construction and Finance (EPCF) contract -- will be finalized within nine months by Korean banks, the Iranian oil ministry’s news service Shana said on Sunday. Construction will take 48 months, according to the Iranian news service.
 
The nine-month period to obtain financing could be a potential obstacle to the South Korean company due to the reluctance of banks to do business that has ties to Iran, AFP comments.
 
A total of 85 percent of the funding is expected to come from Korean banks, including Export-Import Bank of Korea and the Korea Trade Insurance Corporation, a spokesman for Hyundai Engineering told AFP.
 
Although Iran is trying to lure international investors back to its vast oil and gas fields and published in January a list of 29 foreign companies that had qualified for bidding in its oil and gas tenders, firms are still cautious in dealings with Iran. France’s Total SA -- the first major that returned to signing deals with the Islamic Republic -- has said that it is waiting for an extension of the waiver on U.S. sanctions against Iran before it makes the final decision on a US$2.2-billion investment in a gas project.
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Copper supply disruptions push prices up www.mining.com

Copper prices climbed Monday, helped mainly by ongoing supply disruptions at two massive mines in Chile and Indonesia, intensified by an indefinite strike that broke Friday at Freeport-McMoRan's (NYSE:FCX) Cerro Verde mine in Peru the country's largest.

Three-month copper was last 1.1% on the London Metal Exchange to $5,794 a tonne, after it had lost 3.1% last week, the most since December, due partially to a stronger dollar. Earlier, the most-traded copper on the Shanghai Futures Exchange climbed 2.2% to close at 47,560 yuan ($6,887) a tonne.

Disputes at BHP Billiton’s Escondida mine in Chile, the world's biggest copper mine, and Freeport’s Grasberg mine in Indonesia, are having a significant effect on global supplies of concentrate, Jiangxi Copper chairman Li Baomin told the Financial Times over the weekend. “It’s the first time in 15 years that copper concentrate is not overproduced,” he noted.

So far, prices have not reflected the full strength of the supply troubles. The metal, in fact, is up only 4% this year, but copper bulls insist that factors for a push higher are slowly falling into place.

BMI Research, for one, recently raised its 2017 copper price forecast to $5,500 from $5,150 on solid Chinese demand growth and supply interruptions.

Even so, new copper projects at such prices are not appealing at the moment. Based on predictions by Citigroup, the metal needs to rise to about $6,700 a tonne before mining companies commit to new greenfield projects. That means the industry will not likely boost capital spending until 2019.

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IEA: Huge Oil Price Spike Inevitable www.rt.com

 
Three years of drastic cuts to upstream spending because of the meltdown in oil prices could result in a shortage of oil supply in a few years, according to a new report from the International Energy Agency.
 
When oil prices collapsed in 2014, oil producers quickly took an ax to their spending. Global oil and gas investment dropped by a quarter in 2015 and by an additional 26 percent last year, the IEA estimates. A long list of projects, particularly very large ones, were put on ice.
 
Because many of these projects take years to develop, the sharp slowdown between 2014 and 2016 could result in very few sources of new supply hitting the market towards the end of the decade.
 
To be sure, supply is already coming back. The US has added more than 500,000 bpd since last summer, and shale drillers are ramping up activity. The IEA says that the shale industry achieved cost reductions of about 30 percent in 2015 and 22 percent in 2016, making the average shale well more profitable today than it was before the downturn. That is already leading to a rebound.
 
But even the nascent recovery in drilling this year will be a far cry from the investment prior to the 2014 oil bust.
 
Moreover, the IEA thinks that even the revival of U.S. shale at lower prices won’t be enough to head off a supply shortage by 2020. The pipeline of new projects is too small.
 
Meanwhile, demand will continue to grow, eventually overtaking supply. The IEA projects global demand to reach 104 million barrels per day (mbd) by 2020, with the “call on OPEC” reaching 35.8 mbd, up from 32.2 mbd last year.
 
The market may ask for much higher supply from OPEC, but that would force the group to burn through its spare capacity, which could shrink to well below 2 mb/d. Spare capacity – the ability to ramp up or down supply on short notice – has been one of the key cushions to the oil market for decades. Knowing that Saudi Arabia could plug any supply gap in a pinch helped reduce oil market volatility, and also reduced the risk premium that would hit the market when unforeseen geopolitical flashpoints inevitably cropped up.
 
The IEA warns that unless a wave of new upstream projects are given the greenlight by exploration companies, OPEC’s spare capacity will fall to low levels and oil prices will rise sharply.
 
One of the more eye-opening predictions from the IEA is that oil demand will continue to rise without interruption. The agency noted that global oil demand grew by a whopping 2 mb/d in 2015 because of low prices, then by another strong 1.6 mb/d in 2016. Moving forward, demand rises steadily, year after year, by an average of 1.2 mb/d through 2022. India takes over as the largest source of demand growth, a mantle long-held by China.
 
The IEA, unlike a growing chorus of analysts, thinks that electric vehicles might only have a marginal impact on demand, slowing consumption growth but ultimately not reversing it. On top of that, oil demand will grow in various sectors not related to passenger vehicles, including freight, marine transit, and aviation. “For all these reasons, the much-discussed peak for oil demand remains some years into the future,” the IEA wrote.
 
So we have rising demand and a shortage of new supply. But, surely U.S. shale, with its falling breakeven prices and resurgence at $50 per barrel can meet the supply gap? The IEA does think that shale will see significant growth, rising by 1.4 mb/d through 2022, assuming oil prices at $60 per barrel. If prices rise to, say, $80 per barrel, then U.S. shale could see growth of 3 mb/d. But the IEA’s working assumption is that all non-OPEC countries together contribute an extra 3.3 mb/d of supply over the next five years.
 
The problem with that figure is that demand is expected to rise by 7.2 mb/d over that same timeframe. The end result will be a strain on OPEC supplies. In light of these numbers, the IEA issued a warning. “[W]e are emphasising an important message: more investment is needed in oil production capacity to avoid the risk of a sharp increase in oil prices” by the early 2020s.
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Census on degraded land due to mining to be conducted in 2017-2018 www.montsame.mn

Ulaanbaatar /MONTSAME/ A census on degraded land, which was conducted in 2012 covering 20 aimags revealed 42556 ha of land in 699 units are degraded and abandoned. 60 per cent of the destroyed land had been caused by companies and entities, while 40 per cent by artisanal gold miners. Since 2012, such kind of integrated census has not been conducted and utilization of the data of the last census has been insufficient.

A workshop themed “Census of degraded land due to mining” “Regulation on mining closure” started today with participation of over 70 specialists of 21 aimags in charge of nature protection and rehabilitation in mining and officials from the Ministry of Environment and Tourism, Mining Ministry and General Authority of Special Inspection.

“ - The results of this workshop are significant to the implementation of the Government action plan, conducting census on degraded land due to mining in 2017-2018, developing a regulation on mine closure and starting to adhere the regulation” said Deputy Minister of Environment and Tourism Ts.Batbayar.

Closing of mine and rehabilitation works are not being done in compliance with the law on Mineral Resources, because regulation on mine closure has not been approved yet.

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