1 US-MONGOLIA 'THIRD NEIGHBOR TRADE ACT' ON THE WAY WWW.THEDIPLOMAT.COM PUBLISHED:2018/11/17      2 CHINA'S FIGHT AGAINST SMOG MAKES PALLADIUM 2018'S BEST METAL WWW.MINING.COM PUBLISHED:2018/11/17      3 MILLENNIUM CHALLENGE CORPORATION PRESENTS GMS LICENSES WWW.MONTSAME.MN PUBLISHED:2018/11/17      4 MONGOLIA CALLS FOR GLOBAL ATTENTION ON CLIMATE CHANGE WWW.NEWS.MN PUBLISHED:2018/11/17      5 ADB OPENS A NEW WASTEWATER TREATMENT PLANT IN ARVAIKHEER, MONGOLIA WWW.AGENPARL.EU PUBLISHED:2018/11/17      6 CHINA TO BOOST COOPERATION WITH INDIA, MONGOLIA: DEFENSE MINISTER WWW.GLOBALTIMES.CN PUBLISHED:2018/11/17      7 DEATH ON MONGOLIA’S ‘COAL ROAD’ WWW.NEWS.MN PUBLISHED:2018/11/17      8 MONGOLIA SHAKEN BY WIDENING LOAN SCANDAL WWW.ASIA.NIKKEI.COM PUBLISHED:2018/11/17      9 MONGOLIA’S UNEMPLOYMENT FALLS BY 2.2 PERCENT WWW.NEWS.MN PUBLISHED:2018/11/16      10 MEETING MEAT DEMAND: MONGOLIA TO TRADE 17.9 PERCENT OF LIVESTOCK WWW.NEWS.MN PUBLISHED:2018/11/16      БНСУ-ЫН АЖ АХУЙН НЭГЖҮҮДИЙН АУТСОРСИНГ ЗАХИАЛГЫГ ГҮЙЦЭТГЭХ ЗАЛУУЧУУДЫГ СОНГОН, ШАЛГАРУУЛНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/17     НҮҮРСНИЙ ЭКСПОРТ 10 ХУВИАР ӨСӨЖ, 31.3 САЯ ТОНН БОЛОВ WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/17     СУДАЛГААГААР ЖДҮ ЭРХЛЭГЧИД ЗЭЭЛИЙН ХҮҮНИЙ ЗАРДАЛ ХАМГИЙН ИХ ХҮНДРЭЛ УЧРУУЛДАГ ГЭЖ ХАРИУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ERDENE RESOURCE DEVELOPMENT: ХАЙГУУЛЫН ЗАРДАЛ III УЛИРАЛД 42 ХУВИАР БУУРСАН WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ГОРХИ, ТЭРЭЛЖИЙН БАЙГАЛИЙН БОХИРДОЛД АНХААРАЛ ХАНДУУЛЖ ЭХЛЭВ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     ИРЭХ БААСАН ГАРАГТ ХОТЫН ДАРГЫГ ОГЦРУУЛАХ ЭСЭХИЙГ ХЭЛЭЛЦЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     “АМГАЛАН” ХОТХОНД БАЙРЛАХ ГЭРТЭЭ КАННАБИС ТАРЬЖ, УРГУУЛЖ БАЙСАН ТУРК ИРГЭНИЙГ БАРИВЧИЛЖЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/11/17     ӨНӨӨДӨР АВТОМАШИНЫ ДУГААРЫН ХЯЗГААРЛАЛТ ҮЙЛЧЛЭХГҮЙ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/17     ГАШУУНСУХАЙТЫН НҮҮРСТЭЙ МАШИНЫ ЦУВАА 120 КМ БОЛЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/16     ТАТВАРЫН ОРЛОГО 32.2 ХУВИАР ӨСӨЖ, ТӨСВИЙН ТЭНЦЭЛ 341.9 ТЭРБУМ ТӨГРӨГИЙН АШИГТАЙ ГАРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/16    

Events

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

NEWS

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2017 budget amendment approved www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ Yesterday, April 14, Parliament approved amendments to the law on 2017 State Budget and Law on Social Insurance Fund, proposed by the Cabinet on March 24. The amendments sets the 2017 state revenue projection at MNT6.035.7 billion or 23.3 per cent of GDP and expenditure at MNT8.750.2 billion, 33.6 per cent of GDP, with a deficit amounting to MNT2.714.4 billion, 10.4 per cent of GDP. That means the Parliament increased the revenue by MNT20 billion and lowered the total expenditure and pure loan amount by MNT39.6 billion, including operational cost by MNT 26 billion, and making budget deficit down by MNT59.7 billion than the Government proposal.
 
Total subsidies to local budget from the state budget will be MNT132.183.7 million, while revenue to the state budget from local budgets will be MNT206.308.3 million.
 
Regarding the 2017 Social Insurance fund, its revenue will be MNT1.999.863.5 million and its expenditure will be MNT1.891.751.5 million.
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Prominent bankers emphasize the importance of transparency and international standard www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ The American Chamber of Commerce (AmCham) in Mongolia hosted its April Monthly Meeting with prominent international and domestic bankers, as well as representatives from the Bank of Mongolia on April 12, 2017, at Shangri-La Ulaanbaatar Hotel.
 
The panelists included Chief Economist of Bank of Mongolia J. Ganbaatar, CEO of Xac Bank M. Bold, CEO of Khan Bank John Bell, Executive Vice Chairman of Trade & Development Bank Randolph Koppa, Deputy CEO of Golomt Bank Tomas Bravenec, and AmCham Mongolia Board Member and Country Representative for ING Bank Erik Versavel.
 
The meeting was attended by over 90 participants, including AmCham members in the financial industry and representatives from Mongolia’s leading businesses. The panelists took part in a discussion entitled “Mongolian Banking System – Challenges, Opportunities and Ways Forward” and discussed key topics of interest, including the upcoming Asset Quality Review (AQR) for the International Monetary Fund’s (IMF) extended fund facility program, the proposed tax on deposits and savings, the entry of the international banks in to the Mongolian market, and a bill on investment banking.
 
Mr. M. Bold, CEO of Xac Bank, opened the discussion and said, “When the banks are growing, weaknesses are hidden, and when the banks are experiencing difficulties, their weaknesses are shown. The banking system audit with the IMF program will help us build a stronger and healthier banking system, and help us to identify if there are some potential weaknesses that should be addressed.”
 
Mr. J. Ganbaatar, Chief Economist at the Bank of Mongolia, also commented on the upcoming AQR and noted, “Bank of Mongolia recently issued a tender for an international auditing firm to conduct the AQR.” He complimented the growing competence and standards of local commercial banks, saying, “The banks are acquiring an increasing number of more professional independent directors, which is helping them to raise their governance standards and transparency.”
 
Mr. Randolph Koppa, Executive Vice Chairman of Trade & Development Bank, commented on the entry of international banks in to Mongolia and said, “Due to the current Mongolian banking system, compliance issues, and political uncertainties, there isn’t strong interest from international banks to enter the Mongolian market and to be operational.”
 
“We are facing a number of challenges in the banking industry today. However, usually, the challenges can become opportunities if we come together and find the right way to tackle the issues and move forward. AmCham will work with our members, our newly launched Financial Services Committee, and all stakeholders to bring about real policy change and international standards to the financial sector through our collaborative efforts,” Mr. Erik Versavel, AmCham Mongolia Board Member and Country Representative for ING Bank, said during his closing remarks.
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Mongolia serves as the shortest route to connect Asia and Europe www.mongolia.gogo.mn

 
Mongolia, Russia and China joint forum, “Transit Mongolia – 2017” was successfully held on the 7th of April 2017 in Beijing.
The forum was organized by the Road and Transport Development Ministry in collaboration with the Mongolian Russian Joint Stock Company “Ulaanbaatar Railway” aiming to introduce Mongolia`s potential and resources as well as discuss future development policy, railway transit freight, border crossing, and the cooperation between the freight forwarders, railway ports and sea ports for the development of transit freight.
Transit Mongolia – 2017 forum was attended by government organizations, carriers, consignors, consignees, border, and customs administrations of the three countries.
The forum highlighted the opportunity to ship freights from Europe to Asia and Asia to Europe through Mongolian territory in the shortest time under safe and favorable conditions.
At the meeting between Chinese side, two new freight routes set to be opened and the train will run once in a week and four times in a month, reports the Minister of Road and Transport B.Tsogtgerel.
Located between two great empires, Mongolia will not only be connecting its two neighbors, but also will be serving as the shortest route to connect Asia and Europe. The Trans-Mongolian railway connects Moscow and Beijing through its 1110 km long railway which considered as shorter than Kazakhstan`s corridor by 513 km as well as Manchurian corridor by 748 km.
However, 167 freight train run through Mongolian corridor in 2016 while ten times more or 1700 freight train run through Kazakhstan and 1200 freight train went through Manchurian.
Also, Mongolia shortened freight terms from 31 hours to 28 hours for routes from Russia to China and for 36 hours to 31 hours in routes from China to Russia. The freight distance per night was cut to 850 - 950 km.
Mongolia railway uses broad gauge so that there is a need to transfer freight. Thus the country offered discount on freight cost as well as decreased the transfer freight term to 240 minutes from 420 minutes. Therefore, Mongolia aims to increase its transit freight by three times (400 containers) in 2017.
An initiative to build railway connecting Russia and China through Mongolian territory, roads, oil and gas pipelines and five power lines and other infrastructure is called Steppe Road, which was approved by the meeting of heads of three countries in accordance with Chinese Road and Belt initiative and Eurasian Economic Union by Russia. It is considered as the first major program of establishing economic corridor.
Trade turnover between China and Russia expects to reach US$ 200 billion by 2020 after the establishment of Steppe road railway corridor.
China has divided its transit zone into three section including West, East and Center. Mongolia is included China`s central transit route. Therefore, the relevant authorities reminded a special need for increased economic efficiency by running China`s central transit route through the territory of Mongolia.
In the recent years, the volume of trade and investment between the three countries, Mongolia, Russia, and China, have been consistently increasing. In 2015 the trade turnover of Mongolia and China reached 7.3 billion USD and the trade turnover of China and Russia reached 64.2 billion USD.
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Copper production jumped by a million tonnes last year www.mining.com

 
The latest report by the International Copper Study Group which includes full year 2016 estimates shows world mine copper production jumped by 5.3%, or 1 million tonnes last year to 20.16 million tonnes.
 
According to the report the increase was mainly due to a 38% (650,000 tonnes copper) rise in Peruvian concentrate output that benefitted from new and expanded capacity brought on stream in the last two years; a recovery in production levels in Canada, Indonesia and the US, and expanded capacity in Mexico, and low frequency of supply disruptions due to strikes, accidents or adverse weather conditions.
 
However overall growth was partially offset by a 3.8% (220,000 tonnes) decline in production in Chile, the world’s biggest copper mine producer, and a 4.5% decline in the Democratic republic of the Congo where output is being constrained by temporary production cuts.
 
On a regional basis, production rose by 6% in the Americas and 11.5% in Asia but declined by 3.5% in Africa while remaining essentially unchanged in Europe and Oceania.
 
ICSG estimates world refined production increased by about 2.5% (530,000 tonnes) in 2016 with primary production (electrolytic and electrowinning) increasing by 3% and secondary production (from scrap) declining by 2%.
 
World refined copper balance for 2016 indicates a deficit of around 50,000 tonnes, mainly because of a 2.5% increase in Chinese apparent demand. The refined copper market balance for the month of December 2016 showed a small surplus of around 20,000 tonnes.
 
Preliminary production by the top 10 copper mining companies totalled nearly 9.5m tonnes last year, a 4% increase compared to 2015, and some 45% of global production.
 
Six out of 10 companies increased their copper output while four of them declined. All companies in the Top 10 that disclose production costs reported significant reduction in copper unit costs.
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Coking coal price jumps to six-year high www.mining.com

 
The price of coking coal gapped higher again on Thursday with the industry benchmark price tracked by the Steel Index surging 4.6% to $314.00 a tonne due to continued supply outages following tropical storms in Australia.
 
It's the highest price for Australia free-on-board premium hard coking coal since the second quarter of 2011. That price spike was also the result of flooding in Queensland that saw quarterly contract prices negotiated at an all time high of $330. There was little in the way of a spot market and quarterly contract benchmarks negotiated by Australian miners and Japanese steelmakers was the industry standard.
 
Coking coal has more than doubled in two weeks on the back of disruption to Australia’s coal exports associated with Cyclone Debbie which caused serious damage to key rail lines serving mines in the state of Queensland.
 
Three lines are set to re-open by the end of this week according to operator Aurizon but large sections of the Goonyella railroad in the centre of the network could be out for a further four weeks.
 
Roughly 12–13 million tonnes of Australian met coal cargoes destined for China, India and Japan could be delayed.
 
Customs data released yesterday show Chinese imports of coal – both thermal and metallurgical coal – in March rose 12.2% from a year ago and 25% from February to 22.1 million tonnes.
 
The global met coal market is around 300 million tonnes per year with premium hard coking coal or PHCC constituting more than a third of the total market. More than half of PHCC seaborne coal come from Australian producers according to TSI data.
 
A reduction in allowable work days at China's coal mines last year sparked a massive rally in coal prices, lifting met coal prices to multi-year high of $308.80 per tonne by November from $75 a tonne earlier in 2016. But the speculative rally fizzled soon fizzled out with the commodity hitting a 2017 low of $150.10 a tonne last month.
 
 
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Apple may invest in Toshiba's chip business www3.nhk.or.jp

 
NHK has learned that IT giant Apple is moving to buy struggling Japanese conglomerate Toshiba's chip business.
 
The US firm is willing to spend billions of dollars to obtain a substantial stake. Its aim is to secure a stable supply of memory chips for its iPhones.
 
Toshiba officials are now in the process of narrowing down the bidders for their profitable semiconductor business, which they have spun off this month.
 
But Japanese government officials have expressed concerns about Toshiba selling critical technologies to overseas buyers.
 
Sources say that in response, Apple would have Toshiba keep some shares so the Japanese and US firms combined, will have a majority stake.
 
Apple executives are also considering teaming up with Hon Hai Precision Industry, also known as Foxconn. The Taiwanese maker is trying to acquire about 30 percent of the stake, and call on Japanese firms to join them.
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Money in offshore bank accounts obliged to be withdrawn in three months www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ At its plenary meeting held on April 13, the Parliament approved amendments to Law on Managing and Preventing from conflict of interests in the public service. The law bans state and government officials to hold offshore bank accounts and if the officials already have offshore bank accounts and have deposited money, they are obliged to withdraw money from the account within three months since the law approval and to report about it within 30 days after the action.
 
Restrictions and limitations of the law will be applicable to over 30 thousand government officials, who are obliged to submit annual income statements to the Anti-Corruption Agency. Income statement forms will be renewed, in compliance with the law.
 
Member of Parliament Kh.Nyambaatar said ‘ - Names of some politicians of Mongolia are included in the Panama Paper list, therefore this ban on offshore bank account was raised. There has been a report on press that some USD17 billion is deposited into offshore bank accounts. We have an economy of USD10 billion and money transfer of more than USD10 billion should be under control. Therefore it should be investigated and discovered how and how much money had flown abroad over the last 17 years. If officials breach the law, they will be dismissed from his/her position or charged with even legal responsibility”.
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SYMPOSIUM ON GLOBAL MARKETS Compliance, Cyber-Security, Competition Law and the Impact of the Trump Administration www.mongolianbusinessdatabase.com

June 12-13, 2017

The Center for American and International Law
Plano, Texas, USA

OVERVIEW
Join lawyers from more than 20 countries for a practical look at legal issues that impact international business.

The faculty and audience will include both in-house counsel and private practitioners.

Among the topics:

Compliance Trends – and Future Trends?
Com[liance – Shifting Sands and the New Dynamics of Voluntary Disclosure, “Cooperation”, and Multi-Jurisdictional Enforcement
The U.S. and Mexico – Walls and Bridges
Cuba – New Beginnings?
Cyber Security – Understanding the Threat
Cyber Security – Disclosure Requirements and Risk Management
Competition Law Update
This year’s program will include the presentation of the Robert G. Storey International Award for Leadership to Mohamed Ameermia Shafie, a 2001 participant in the Academy of American and International Law and a member of South Africa’s Human Rights Commission

For more information and registration, please click on the following link

http://www.cailaw.org/Southwestern-Instit…/…/symposium.html…

 
 
 
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Saudi Arabia's first Islamic bond sale raises $9bn www.rt.com

 
In its first international issuance of sukuk, or an Islamic bond, Saudi Arabia has raised $9 billion, people familiar with the matter told the Wall Street Journal. The bond sale comes as the kingdom looks to reshape its oil-dependent economy.
Investors placed orders in excess of $33 billion, the country’s Ministry of Finance said, adding bonds will be split equally between five and ten-year tranches.
 
Riyadh was able to issue more than the $8 billion it had planned to sell, and yields were lower than initial guidance. The five-year notes were sold at 2.93 percent, and the 10-year notes were sold at 3.65 percent.
 
Saudi Arabia issued bonds worth $17.5 billion in 2016, tapping international and domestic markets to help finance a budget deficit that is expected to reach $53 billion this year. The deficit ballooned to a record $98 billion in 2015 but narrowed last year to about $79 billion as the government introduced austerity measures, cutting spending and subsidies.
 
“The sukuk should cover about one-fifth of the expected fiscal deficit,” investors told the WSJ.
 
By raising money from sukuk, the Saudi government aims to support the kingdom’s finances as income from oil sales decline.
 
“They’re kicking the oil barrel down the road; they’re buying time on the fiscal deficit,” said Patrick Drum, a portfolio manager at Saturna Capital, which runs a sukuk-bond fund.
 
A sukuk is structured to generate returns to investors without infringing Islamic law that prohibits interest. Issuers are able to tap a wider pool of investors than with more conventional bonds.
 
Saudi Arabia is also preparing what may become the world’s largest initial public offering (IPO) of state oil company Saudi Aramco. The IPO is also expected to help manage the budget shortfall.
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Russia–China trade up almost 30% this year www.rt.com

Trade between China and Russia grew by nearly a third in the first quarter of the year, according to Chinese Customs data, cited by RIA Novosti.

In the first three months of 2017, bilateral trade amounted to $18.1 billion. Chinese exports to Russia increased by 22.4 percent compared to the same period last year to $8.43 billion. Russian exports to China grew by 36.1 percent to $9.66 billion.

In 2016, trade between Russia and China grew by 2.2 percent to $69.5 billion, as Chinese exports to Russia rose by 7.3 percent to $37.3 billion, while imports from Russia fell by 3.1 percent to $32.3 billion.

In an interview with the Sputnik news agency last month, Zhang Xiao, the deputy to the Chinese ambassador to Russia, said Beijing expects a breakthrough in trade between the countries this year.

"After a downturn in 2015 due to external factors, Russia-China trade returned to growth in 2016. Over the course of 2016, turnover between Russia and China reached $69.5 billion, a 2.2 percent increase against the previous year," Zhang Xiao said.

While a 2.2 percent growth is not significant, it is very important considering the unfavorable conditions in the global economy and a decrease in Chinese foreign trade volumes, he said.

Besides trade, Russia and China also have a number of investment projects. The countries are jointly building the Power of Siberia gas pipeline and a liquefied natural gas (LNG) facility on the Yamal Peninsula in the Russian Arctic. The countries are also working on a wide-body passenger jet to rival Airbus and Boeing and several other projects.

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