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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Railway wagons assembled in Mongolia www.montsame.mn

Ulaanbaatar /MONTSAME/ The first ever railway wagons that assembled in Mongolia, were transferred into service on 09 June, with joint efforts by the Ministry of Road and Transport Development, ‘Mongolian Railway” joint venture and private sector. Engineers of the Wagon Repair Department in Zuunkharaa, Selenge aimag noted that the five wagons assembled in Mongolia will serve for 30-32 years, while imported wagons from Russia and China have a useful life of 20-25 years. 

Moreover, it costs MNT120 million to assemble one wagon, which means they are much cheaper than the imported wagon from Russia or the Commonwealth countries that costs USD80-100 thousand or from China for USD79.5 thousand. The assembled wagons have a carrying capacity of 88 cubic meters and 72 tons with a speed of 120 km/hour.

We will study possibilities to produce some parts of wagons at home and buy some parts from private companies, putting a goal to manufacture wagon in the country, not only being limited to assembling, said Minister of Road and Transport Development D.Ganbat. “- Erdenet Mining Corporation has full potential to manufacture some parts of wagons and supply to the Ulaanbaatar Railway. We have some Mongolian private companies, which manufacture rubber products. Therefore, I assigned relevant officials to stop rubber product import from Russia. The Government supports job creation and private companies through a policy and the Ministry will back domestic production that replaces import products and gives benefits to the Mongolian people, not only in the transportation sector, but also in any sector related to the ministry”, Minister D.Ganbat emphasized.

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BoM issues 1-week bills www.mongolbank.mn

1 - week CBBs, a main monetary policy instrument of BoM, plays an important role on managing the reserves of the banks. This CBB rate represents BoM’s policy rate guides interbank money market. In July 2007, the CBB with stable rate and unlimited bidding was introduced with auctions to be held on every Wednesday. This really had attracted the banks’ interests providing the possibility for the banks to place their excess reserve in short term asset. There has been a substantial change in the way banks manage their reserves since then. For the favorable adjustment of CBB rate and loan principle along with the well balance of togrog and foreign exchange, 1 - week CBB has been held in a type of competing by rate since May 2005. The auction average rate is the targeted rate variables in +/-2 percent from the policy rate and it frames to make the interbank rate as the operational target in midterm.

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President of Mongolia : Elbegdorj Meets With Putin www.4-traders.com

On June 9, on the sidelines of the Shanghai Cooperation Organization (SCO) Summit of the Council of Heads of State in Astana, the Republic of Kazakhstan, the President of Mongolia Tsakhiagiin Elbegdorj met with the President of the Russian Federation Vladimir Putin.
 
At the meeting, the parties exchanged views on expanding the bilateral relations between Mongolia and the Russian Federation. President Elbegdorj highlighted that the Russia's investment in Mongolia is increasing and this is important for the development of mutual ties. He also noted: 'All relations established with Russia in all spheres are good relations for Mongolia. All investments from Russia are also good. Mongolia and Russia have always enjoyed good friendly relations and we must not have any issues pertaining to our bilateral relationship'.
 
The President of the Russian Federation Vladimir Putin mentioned that he is glad to see the President of Mongolia Tsakhiagiin Elbegdorj and discuss issues related to the mutual relations and cooperation, during the the Shanghai Cooperation Organization Summit of the Council of Heads of State. He stressed that there is quite a lot in terms of quantity and areas of cooperation between the two countries.
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Bayan Khundii, Mongolia: 108m grading 2.8g/t gold from 97.7m depth (BKD-110) www.mining-journal.com

Continued drilling at Erdene Resource Development Corp’s (CN:ERD) 100%-owned Bayan Khundii project in Mongolia has discovered a new mineralisation zone north of Midfield. 

The above-mentioned drill hole, 60m north of the Midfield zone, also included 20m at 7.2g/t gold, and contained visible gold at 144m.

Erdene said this visible gold represented the “most strongly mineralised comb-textured vein observed to date” at the project.

Results are still pending for two step-out holes north of Midfield where visible gold was also observed in the core.

The latest assays also identified a previously untested area for exploration, with BKD-118 returning 10m of 12.8g/t gold, 90m east of the Striker zone.

The two rig, 20,000m programme is continuing and Erdene said more detailed drilling would then be done before establishing a resource estimate.

Investor confidence in the company is growing with Erdene’s share price up more than 245% in 12 months.

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Mongolia moots asset management company to tackle bad loans www.ft.com

The Mongolian government is considering the establishment of an asset management company before the end of the year to offload onerous non-performing loans from domestic banks’ balance sheets. 

Mongolia secured an International Monetary Fund financial package last month to slash a bulging debt load. That package included a requirement for an audit of the domestic banking sector as part of its fiscal discipline guidelines. 

The IMF’s three-year, $434m loan unlocked financial support from the Asian Development Bank, the World Bank, Japan and South Korea, while the People’s Bank of China extended existing swap lines with the Bank of Mongolia, the central bank. The total financial package amounts to $5.5bn, helping Mongolia service external debt repayments of about $2bn through to 2022. 

The 16 banks serving Mongolia’s $10bn economy are small, pay extraordinarily high deposit rates and are burdened with bad debt built up during the mining industry’s previous boom-and-bust cycle. The asset management company would help banks offload NPLs and release capital that is now held against bad loans, which many banks prefer to roll over rather than recognise.

“Many loans are restructured and we have no idea how big [the issue is],” said Neil Saker, the IMF’s representative in Mongolia. “We only have anecdotal evidence because banks don't really report restructured loans.”

NPLs expanded rapidly after drops in commodity prices and in Chinese demand and the resulting squeeze on the Mongolian economy. Overborrowing and overspending at the height of the commodities cycle meant mining-dependent Mongolia built up debt of 90 per cent of GDP and a chunky fiscal deficit of 17 per cent of GDP.

The parliament, known as the Great Hural, is expected to debate the proposal in its autumn session. “The design of the asset management company has been drawn up already,” said Ayumi Konishi, director-general for East Asia at the Asian Development Bank. 

Estimating the size of Mongolian NPLs is not easy, because of both borrowers’ and lenders’ preference for extending loans rather than categorising them as non-performing. According to Bank of Mongolia, the banking sector’s NPL ratio sits at 8.6 per cent. But some market participants believe the true ratio might be as high as 20 per cent.

What is more, much NPL collateral is in the form of mining certificates calculated on the basis of commodity prices before the recent, multiyear slump. “I am sceptical that 100 per cent of the collateral will ever be recovered,” said Graeme Knowd, managing director, banking, at Moody’s.

More transparent books could help some banks attract interest in the NPLs from foreign investors, with banking sources floating Middle Eastern sovereign wealth funds as potential buyers. Generating capital from Mongolian banks' declining profits “is just not sufficient”, Mr Knowd said.

Meanwhile, newly proposed rules aim to make Bank of Mongolia more independent of parliament while limiting the power of the governor. Those laws could be passed as early as next year, according to the IMF.

In March, Ulan Bator avoided defaulting on a $580m Development Bank of Mongolia bond thanks to an IMF agreement. The country now expects a recovery in the commodities cycle and will receive $1bn in foreign direct investment annually for the next five years for the gold and copper Oyu Tolgoi mine.

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New met-coal mine opens in Pennsylvania www.mining.com

President Donald Trump didn't waste the opportunity to press his pro-coal agenda by mentioning the opening of a new coal mine in Pennsylvania.

Corsa Coal Corp. (TSXV:CSO) decided almost a year ago to open the Acosta mine, about 60 miles from Pittsburgh, to take advantage of higher metallurgical coal prices. The official opening took place last Thursday, attended by business leaders and about 200 miners whose "mining headgear lay atop red, white, and blue table cloths labeled 'Make Coal Great Again,' according to a description by Associated Press. The mine would create up to 100 new jobs.

Trump made the revitalization of the U.S. coal industry – which had been targeted by the Obama Administration including tighter restrictions on coal-fired power plants – a central plank of his election campaign. He has made good on deregulating the coal industry through legislation signed in February to end the regulation protecting waterways from coal mining waste. The Surface Mining's Stream Protection Rule enacted by Obama was resisted by coal miners.

President Trump referred to the mine's opening during a speech announcing his intention to withdraw from the Paris climate accord.

"One by one, we're eliminating the regulations that threaten your jobs, and that's one of the big reasons you're opening today: Less regulation," Trump said. "We have withdrawn the United States from the horrendous Paris climate accord, something that would have put our country back decades and decades, we would have never allowed ourselves to be great again."

AP quoted Corsa Coal's chief executive, George Dethlefsen, as saying that Trump has made the mining industry more optimistic.

"The war on coal is over," he said. "Easing the regulatory burden, lowering taxes, stimulating infrastructure spending, balancing out the interest of economic growth versus environmental policy — it's very good for coal." Pennsylvania kicked in a $3 million grant for the project.

The company, currently valued at $165 million, will produce metallurgical coal for steelmaking. It plans to open another mine next year and a third one in 2019. Corsa Coal currently has nearly 400 employees in two divisions: NAPP, which has three deep mines and two active surface mines in Maryland and Pennsylvania; and CAPP, which has two deep mines and two open-pit active surface mines in Tennessee and Kentucky. Projected sales for 2017 are between 1.325 and 1.475 million tons, according to a corporate presentation.

The company says it benefits from its proximity to the largest met-coal market in the U.S., as well as access to East Coast ports, being 170 miles from Baltimore.

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Glencore snatches Rio Tinto-owned mines from Yancoal with $2.55B offer www.mining.com

Miner and commodities trader Glencore (LON:GLEN) has performed a coup d'etat on a deal that was practically sealed between Yancoal Australia (ASX:YAL) and Rio Tinto (ASX, LON:RIO) for Rio's coal assets in Australia's Hunter Valley.

The company said Friday that it has offered $2.55 billion for the mines that are near coal operations already owned by Glencore – outbidding Yancoal which had offered to buy Rio's interest in Coal & Allied Industries Limited (C&A) for $2.45 billion in January.

Details of the transaction, which is pending until Rio accepts the offer, include a US$2.05 billion cash payment upon deal completion, plus $500 million in deferred cash payments, payable as $100 million installments over five years. The deal will expire on June 26 if a binding sales agreement is not reached.

The offer must come as a snub to Yancoal. In April Australia's Foreign Investment Review Board approved its deal with Rio Tinto – the largest acquisition by a Chinese government-controlled firm of Australian assets – which left Rio with just two producing coal mines in the country. The terms of that deal, however, allowed Rio to negotiate with other firms for a better offer.

In a statement, Glencore explained the rationale for the mega-buy, saying that the C&A assets are long-life, low cost mines that in 2016 produced 25.9 million tonnes of quality thermal coal and semi-soft coking coal. It also noted that C&A has substantial landholdings and owns a 36.5% interest in Port Waratah Coal Services, a coal export terminal located at the Port of Newcastle, the world’s largest coal export facility.

"The addition of the C&A assets to our existing portfolio in the Hunter Valley would unlock large scale mining and operating synergies. Glencore’s combined portfolio of mines in the Hunter Valley would have production capacity of 81 million tonnes per annum of high energy coal that feeds increasing Asian demand for high efficiency, low emission coal."

Glencore has also offered to buy minority stakes in the Hunter Valley operations from Mitsubishi for $920 million cash. In an effort to limit its debt, the company would sell $1.5 billion worth of assets, possibly including up to half of its stake in the C&A mines.

In May Glencore (LON:GLEN) announced it had begun a sale process for its Tahmoor coking coal mine ahead of plans to halt operations next year, potentially throwing hundreds of Australian miners out of work.

The firm had announced last year its intention to stop mining at Tahmoor in 2018, but improved coal prices made it reconsider such plans and instead opted to sell the asset.

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Mongolia to earn USD 1.4 billion from copper export in 2017 www.mongolia.gogo.mn

Chili and China are playing key roles in global copper industry. Chili leads the world for copper reserve and production and supplied 23 percent of global copper demand in 2016. Meanwhile, China tops the world for copper import. 
International experts are projected that the copper price will be decreased while prices for per tons of copper will reach USD 5,500 in 2017 due to the rapid growth of copper reserve and China`s economic slowdown. Moreover, the amount of copper supply is expected to be more 160 thousand tons than supply in 2017. 
Mongolia ranks 12th in the world for copper reserve, 17th for copper production and 5th for copper ore exports. 
In 2016, Mongolia`s copper industry exported a total of 1.6 million tons of copper ore which accounted 36 percent of the total export of the country and earned revenue of USD 1.7 billion. Of which 62 percent of copper export was supplied by Oyu Tolgoi while Erdenet mining corporation supplied 30 percent of copper export respectively. 
Due to falling copper prices, Mongolia`s export of copper concentrate is projected to reach 1.3 million and export revenue to amount USD 1.4 billion in 2017.

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MAK inaugurates cement factory in Dornogobi www.montsame.mn

Ulaanbaatar /MONTSAME/ On June 9, Friday, Prime Minister J.Erdenebat attended an inauguration ceremony of Mongolyn Alt Corporation’s ‘MAK – Euro cement’ factory, and remarked on its potential to minimize cement import.

Located in Dalanjargalan soum of Dornogobi aimag, the ‘MAK – Euro cement’ factory will manufacture a world standard product to replace imported cement. The cement factory will manufacture not only multi-purpose cement but also acid and water resistant cement. Mongolia’s annual cement demand is estimated to be more than 2 million tons.

The Prime Minister said, “The Cabinet will always stand by companies and individuals that are making a concrete contribution to prosperity of Mongolia”.

The newly inaugurated factory is estimated to create about 900 jobs, garner annual MNT 35 billion for tax and replace import worth USD 70-75 million.

In the frameworks of the factory construction, 1.9 km railroad was built from Olon-Ovoot rail port, and 65 km long power transmission line was set up from Choir city of Gobisumber aimag alongside a substation.

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Toshiba to pay $3.68bn for 2 nuclear plants after US subsidiary files for bankruptcy www.rt.com

 
Embattled Japanese conglomerate Toshiba has agreed to pick up the $3.7 billion tab for its faltering nuclear engineering division, Westinghouse, which has been forced to file for Chapter 11 bankruptcy protection.
Toshiba signed on for the construction of two nuclear reactors at the Vogtle nuclear plant in Georgia in 2008 but the project has been plagued by cost overruns and delays for years.
“We are pleased with today’s positive developments with Toshiba and Westinghouse that allow momentum to continue at the site while we transition project management from Westinghouse to Southern Nuclear and Georgia Power,” said Georgia Power CEO Paul Bowers, the utility which is working with Westinghouse on the Vogtle nuclear plant expansion project, as cited by the AP.
The Japanese company will cap its liability for the construction of two of Westinghouse’s AP1000 reactors at the Vogtle nuclear plant in Georgia but the future of the development remains uncertain.
Government intervention may be required, however, as suggested by Tom Fanning, CEO of the Southern Company which is in talks to take over management of the project from Westinghouse.
“This is a national security issue,” he said on a recent a call to analysts, as cited by the Financial Times. “If the United States wants nuclear in its portfolio for the future, we’ve got to figure out a way to be successful here.”
In a statement Saturday, Toshiba confirmed the payments will be made from October 2017 through to January 2021. The company reported $8.6 billion loss for fiscal year ended March 2017.
Toshiba has factored the payment into its earnings reports. Auditors though, have refused to endorse the reports and are viewing the figures as projections and not true financial reports.
Toshiba is struggling to stay afloat financially and has been forced into selling its lucrative and highly prized computer chip and semiconductor business.
Toshiba President, Satoshi Tsunakawa, has acknowledged the flaws in the company's strategy regarding Westinghouse, reports the AP, but nuclear power will remain part of Toshiba's near-term business strategy which includes the decommissioning of the Fukushima Dai-ichi nuclear plant.
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