1 VALE EVACUATES 200 PEOPLE FROM TOWN NEAR ITS MAR AZUL MINE WWW.MINING.COM PUBLISHED:2019/02/17      2 TOOTH PLAQUE SHOWS DRINKING MILK GOES BACK 3,000 YEARS IN MONGOLIA WWW.SCIENCENEWS.ORG  PUBLISHED:2019/02/17      3 INCREASING NUMBER OF CHINA-EUROPE FREIGHT TRAINS SUPPORTS MONGOLIA'S ECONOMY: OFFICIAL WWW.XINHUANET.COM PUBLISHED:2019/02/17      4 TAX REVENUE INCREASES BY 33.7 PERCENT WWW.MONTSAME.MN PUBLISHED:2019/02/17      5 COPPER MINER'S $10B BET COMES TO LIFE IN PANAMA JUNGLE WWW.MINING.COM PUBLISHED:2019/02/15      6 TRADE UNIONS REQUEST PM TO FOCUS ON INTEREST RATE CUT WWW.ZGM.MN PUBLISHED:2019/02/15      7 MONGOLIA’S HOURLY WAGE TO REACH USD 1 WWW.NEWS.MN PUBLISHED:2019/02/15      8 US NARCOTICS BY POST TO MONGOLIA! THREE ARRESTED WWW.NEWS.MN PUBLISHED:2019/02/15      9 WRITER D.URIANKHAI NOMINATED FOR THE NOBEL PRIZE WWW.MONTSAME.MN PUBLISHED:2019/02/15      10 MONGOLIA-CHINA-RUSSIA ECONOMIC CORRIDOR BENEFITS ALL SIDES: OFFICIAL WWW.XINHUANET.COM PUBLISHED:2019/02/15      “ОЮУ ТОЛГОЙ” КОМПАНИ 570 ТОННЫ ДААЦТАЙ CAT БРЭНДИЙН ГИДРАВЛИК ЭСКВАТОРООР ХҮЧЭЭ СЭЛБЭЛЭЭ WWW.GOGO.MN  НИЙТЭЛСЭН:2019/02/15     ӨРХИЙН САРЫН ДУНДАЖ ОРЛОГО 78,000 ТӨГРӨГӨӨР ӨССӨН Ч ЗАРЛАГА ДАВСАН ХЭВЭЭР БАЙНА WWW.IKON.MN НИЙТЭЛСЭН:2019/02/15     АВСТРАЛИЙН ЭЛЧИН САЙД ДЭВИД МЭТЬЮ ВОСЭН ИТГЭМЖЛЭХ ЖУУХ БИЧГЭЭ ӨРГӨН БАРИВ WWW.MONTSAME.MN НИЙТЭЛСЭН:2019/02/15     2018 ОНД МОНГОЛ УЛСЫН ЭДИЙН ЗАСАГ 6.9 ХУВИАР ӨСЛӨӨ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/15     МХБ: II/15-НЫ БАЙДЛААР 8 КОМПАНИ ХЭХ-ЫН ТОВОО ГАРГААД БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/15     2017 ОНД 1.9 ТЭРБУМ ТӨГРӨГИЙН АЛДАГДАЛТАЙ АЖИЛЛАСАН “УЛААНБААТАР БҮК” 2018 ОНД 566 САЯ ТӨГРӨГИЙН АШИГТАЙ АЖИЛЛАВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/15     ОРХОН ТҮҮХИЙ НҮҮРСНЭЭС ТАТГАЛЗСАН АНХНЫ АЙМАГ БОЛНО WWW.UNUUDUR.MN НИЙТЭЛСЭН:2019/02/15     АТГ-ААС НЭР БҮХИЙ 6 ШҮҮГЧИЙГ ШАЛГАЖ ЭХЭЛЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2019/02/15     МОНГОЛ УЛС ДЭЛХИЙН 77 ОРОНД БАРАА ЭКСПОРТОЛСНООС ХЯТАДАД 93%-ИЙГ НЬ НИЙЛҮҮЛЖЭЭ WWW.IKON.MN  НИЙТЭЛСЭН:2019/02/14     АВТО МАШИНЫ ИМПОРТ 2018 ОНД 30% ӨСӨЖ, 86,296-Д ХҮРЧЭЭ WWW.IKON.MN  НИЙТЭЛСЭН:2019/02/14    

Events

Name organizer Where
“Doing business with Mongolia”, “UK Investors show” бизнес хөтөлбөр March 27-April 02. 2019 ЛОНДОН ХОТ, ИХ БРИТАНИ Mongolian Business Database London UK
SYMPOSIUM ON GLOBAL MARKETS Nationalism and Protectionism: The United States in the International Arena June 17-18, 2019 The Center for American and International Law Plano, Texas, USA The Center for American and International Law (CAILAW) Plano Texas June 17-18 2019
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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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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Erdene Provides Exploration Update on Southwest Mongolia Gold Exploration; Continues to Expand Western Gold Zone at Bayan Khundii www.morningstar.com

Erdene Resource Development Corp. (TSX:ERD) (" Erdene " or "Company") is pleased to provide additional assay results from the Company's 2017 drill program at its 100% owned Bayan Khundii Gold Project ("Bayan Khundii") in southwest Mongolia.

"We are now at the mid-point of the initial 2017 drill campaign in the Bayan Khundii region and thus far have defined several new areas that will require definition drilling, particularly west and east of Striker, the Northeast Zone, and importantly north and west of Midfield. It is very encouraging to continue to intersect broad zones of gold mineralization along the margins of the established 1.3 kilometre by 500 metre mineralized trend," said Peter Akerley, Erdene's President and CEO. "As we continue to expand outward from that area in Q3 we will be testing six new target areas up to 1 kilometre from the original discovery at Striker Zone. In addition, as drilling progresses through Q3, we will move into the untested 3.5 kilometre long gold-in-soil anomaly that continues north to Altan Arrow, and ultimately return to drilling at our Altan Nar project, 16 kilometres to the northwest."

Highlights

Success from step-out drilling and geophysical surveys leads to an expanded target area at Bayan Khundii
Drilling west of the Striker and Midfield zones returns multiple, high-grade, 1-metre intervals between 10 g/t and 22 g/t gold
Drilling up to 150 metres west of the Striker Zone returns multiple gold mineralized intersections over a 250-metre by 200-metre area, including 28 metres of 1.4 g/t gold (BKD-172)
Drilling west of Midfield Zone returns 36 metres of 1.1 g/t gold (BKD-166)
Upcoming Q3 drilling of five untested targets and continued definition of new targets north and east of the Midfield and Striker zones with closer-spaced drilling
Regional structural analysis and detailed structural analysis of Bayan Khundii and Altan Nar projects will be undertaken during Q3
Drill results to continue throughout Q3

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Wildfires under control, says NEMA www.montsame.mn

Ulaanbaatar /MONTSAME/ Backfires have been lit successfully against 7 wildfires, reported National Emergency Management Agency.

As of Monday, 21 wildfires are burning nationwide - 8 in Selenge aimag, 10 in Tuv aimag, 2 in Bulgan aimag and 1 in Uvs aimag, in response to which 1342 persons and 109 vehicles have been deployed.

During a press conference on July 17, G.Ariunbuyan, Deputy Chief of the National Emergency Management Agency informed that the agency had all the wildfires burning in these aimags under control. He also expressed gratitude for donations of individuals and organizations during the wildfire suppression efforts.

The agency’s authority also disclosed the amount of donations gathered as of 12 pm, July 17. The agency’s designated bank account for donation has garnered a total amount of MNT 229.8 million, MNT 32.5 million from 84 citizens and MNT 197.3 million from 34 public and private organizations. Goods and food supply are continually arriving, they said.

The agency also informed that the Russian Ministry of Emergency Situations had consented to render aid of helicopters. According to Col. S.Zaluukhuu, Head of Fire Department of the National Emergency Management Agency, the helicopter aid has been postponed due to weather forecast of rain in the near future.
Kh.Aminaa

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GDP data show continued expansion www.chinadaily.com

China's economy expanded at a faster-than-expected 6.9 percent year-on-year in the second quarter and economists said the trend of stable growth is set to continue into the second half of 2017, paving the way for the country to strengthen reforms.

The economy, as measured by the gross domestic product, was unchanged from the first quarter and has remained in the 6.7 to 6.9 percent range for eight consecutive months, according to data released on Monday by the National Bureau of Statistics. GDP growth accelerated to 1.7 percent in the second quarter, up from 1.3 percent in the first quarter.
Key indicators, such as industrial output, retail sales and fixed-asset investment, all were at high levels in the second quarter, the NBS said. Real estate investment, a key driving force of growth, increased by 8.5 percent in the first half of this year, slightly down from the first quarter. "Real estate investment, together with infrastructure investment, remained brisk and contributed to the strong growth in the second quarter," said Yu Yongding, an economist with the Chinese Academy of Social Sciences.

The economic structure also has improved, according to NBS data. For example, investment in high-tech manufacturing industries grew by 21.5 percent year-on-year in the first half of this year, 12.9 percentage points higher than overall investment growth.

The crucial job market, meanwhile, remained stable, with 7.35 million jobs created in urban areas in the first half of this year, 180,000 more than a year earlier, according to the NBS.

Looking ahead, China’s economic growth may ease moderately, mainly due to slowing growth expected in real estate investment thanks to the country's tightening of price control policies, but it faces much less pressure to grow, analysts said.

"The economy may continue to fluctuate a little bit, but there would not be sharp declines, and China does not face any risk of a hard landing," said Yu of CASS, who also is former member of the monetary policy committee of the People’s Bank of China, the central bank.

China's whole-year growth this year may reach 6.7 percent, meaning it will meet its target of "around 6.5 percent", according to forecasts by some institutions, such as the China Center for International Economic Exchanges and investment bank ICBC International.

"China's pressure from growth stabilization has eased greatly and it will pay way for its macroeconomic maneuvers to upgrade its economic structure and contain risks," said Cheng Shi, chief economist at ICBC International.

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