1 IRKUTSK REGION SUPPLIES USD 31 MILLION PRODUCTS TO MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      2 27 PARLIAMENT MEMBERS SUBMIT PETITION ON CABINET DISSOLUTION WWW.ZGM.MN PUBLISHED:2018/11/20      3 AIRBNB IS USING WHAT3WORDS TO LIST STAYS WITH MONGOLIAN NOMADS WWW.TECHCRUNCH.COM PUBLISHED:2018/11/20      4 LOCAL PRECIOUS METAL ASSAY LABORATORY PURIFIES 99 KG OF GOLD WWW.MONTSAME.MN PUBLISHED:2018/11/20      5 LEGISLATOR OF MONGOLIA'S RULING PARTY SUBMITS PROPOSAL ON DISMISSING GOVERNMENT WWW.XINHUANET.COM PUBLISHED:2018/11/20      6 SHOCK DECISION: CHINA CLOSES BORDER TO COAL IMPORTS FROM MONGOLIA WWW.NEWS.MN PUBLISHED:2018/11/20      7 STRATEGY INTRODUCED TO FOSTER PRIVATE SECTOR IN WESTERN MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      8 MONGOLIA TO STRENGTHEN ECONOMIC TIES WITH RUSSIA WWW.XINHUANET.COM PUBLISHED:2018/11/19      9 VOLKSWAGEN TO SPEND $50 BILLION ON ELECTRIC CAR 'OFFENSIVE' WWW.CNN.COM PUBLISHED:2018/11/19      10 HABITABILITY OF MONGOLIA UNDER THREAT FROM CLIMATE CHANGE WWW.ADELAIDENOW.COM.AU PUBLISHED:2018/11/19      ЭРЧИМ ХҮЧНИЙ ИХ АЧААЛАЛ 973 МВТ-Д ХҮРЧЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/20     ЗАСГИЙН ГАЗРЫГ ОГЦРУУЛАХ БИЧИГ ӨРГӨН БАРЬСНЫ ДАРАА "ГЭРЭГЭ" БОНДЫН ХАНШ БУУРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/20     ХАЙНАНЬД ЗУГААЛАХ ГЭСЭН МОНГОЛЧУУД УЛААН-ҮҮДЭЭС НИСЭХ ТАСАЛБАРЫГ ХУУ ХАМЖ БАЙНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/20     ГАШУУНСУХАЙТ БООМТ: ЖОЛООЧ НАРЫН МЭДЭЭЛЛИЙГ УРЬДЧИЛАН ЯВУУЛАХ БАЙДЛААР АСУУДЛЫГ ШИЙДВЭРЛЭХЭЭР БНХАУ-ТАЙ ТОХИРОЛЦЛОО WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/20     ЗАМЫН НӨХӨӨС, 100 ГАРУЙ ТӨРЛИЙН РЕЗИНЭН БҮТЭЭГДЭХҮҮН ДОТООДОД ҮЙЛДВЭРЛЭЖ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/20     АЛТНЫ ОЛБОРЛОЛТ ЭДИЙН ЗАСГИЙГ ДЭМЖИЖ БАЙНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/11/20     МОНГОЛЫН АНХНЫ ХУВИЙН ХӨРӨНГИЙН БИРЖИЙН ХОЁР ДАХЬ БҮТЭЭГДЭХҮҮН: “ПАРК ТАУН” БОНД WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/20     МОНГОЛ, ОХУ-ЫН ТЭЭВРИЙН САЛБАРЫН ХАМТЫН АЖИЛЛАГААГ ӨРГӨЖҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/20     БНХАУ-ЫН ОЛОН УЛСЫН ИМПОРТЫН ҮЗЭСГЭЛЭН БНХАУ-ОХУ-ЫН БИЗНЕСИЙН ХАРИЛЦААГ ӨРГӨЖҮҮЛЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/19     АМЧАМ МОНГОЛ 2018 ОНЫ ЖИЛИЙН ТАЙЛАНГИЙН ХУРЛАА АМЖИЛТТАЙ ЗОХИОН БАЙГУУЛЛАА WWW.IKON.MN НИЙТЭЛСЭН:2018/11/19    

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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Foreign Minister Ts.Munkh-Orgil to visit Vietnam www.gogo.mn


Within the framework of the visit, the Foreign Minister of Mongolia will pay a courtesy call on Prime Minister of Vietnam Nguyen Xuan Phuc, hold official talks with his Vietnamese counterpart Pham Binh Minh and conduct meetings with Ministers of Agriculture and Rural Development and Industry and Trade of Vietnam.
During the visit, Foreign Minister Ts.Munkh-Orgil is going to exchange views on issues concerning bilateral ties between Mongolia and Vietnam, such as strengthening of traditional and friendly relations, increasing the frequency of high level visits, expanding international and regional cooperation in the fields of trade, economy, science, technology and culture.
The partnership between Mongolia and Vietnam has been intensifying in all spheres since the establishment of diplomatic relations of Mongolia and Vietnam in 1954. The two countries' trade turnover reached USD 42.8 million in 2016.
 
 
 
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Samsung Group boss earned $1 million at flagship in first quarter, shows first disclosure www.reuters.com

Samsung Electronics Co Ltd (005930.KS) said on Friday it paid Vice Chairman Jay Y. Lee, the third-generation leader of Samsung Group [SAGR.UL], 1.135 billion won ($1.02 million) in the fourth quarter of 2016, disclosing his compensation for the first time.

Lee is currently on trial for bribery, embezzlement and other charges amid a corruption scandal that led to the ouster and arrest of President Park Geun-hye. He became a board member in October as part of a broader initiative to improve corporate governance for the smartphones-to-biopharmaceuticals business empire, and his salary was published alongside other members.

The compensation disclosure, made via a regulatory filing, only applies for payments Lee received following his appointment to the board, and Samsung declined to comment on how much he was paid prior to the appointment - including whether he made more or less in preceding quarters than what was disclosed for the fourth quarter.

The 48-year-old executive's compensation package includes 476 million won in wages equivalent to three months' pay from October through December. A Samsung spokeswoman told Reuters that Lee chose not to receive any pay from Samsung Electronics following his Feb. 17 arrest.

South Korean companies are required to disclose compensation for executives who sit on the board and are paid at least 500 million won on an annual basis.

Chief Executive Kwon Oh-hyun was the top earner among the executives who sit on the board with a total compensation of 6.698 billion won. That compared with Apple Inc (AAPL.O) counterpart Tim Cook's 2016 compensation of $8.7 million.

Asia stocks down, dollar posts gains on positive U.S. data
U.S. economic growth revised higher, boosted by consumer spending
The compensation disclosed by Samsung is a very small fraction of Lee's net worth. According to Forbes, Lee is South Korea's third-richest person with $6.4 billion in total wealth that is mostly based on his stakes in Samsung affiliates such as Samsung C&T Corp (028260.KS) and Samsung Electronics Co Ltd (005930.KS).

Co-Chief Executive Shin Jong-kyun, who overseas the company's mobile and network businesses, saw his 2016 compensation fall to 3.986 billion won from 4.8 billion won a year earlier. The businesses under his remit oversaw the costly collapse of the fire-prone Galaxy Note 7 smartphones in October.

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55-MW Wind Park in Gobi desert www.news.mn

The European Bank for Reconstruction and Development (EBRD) is considering lending up to USD 30 million (EUR 28m) for the construction of the 55-MW Sainshand wind park in Mongolia’s Gobi desert.

The project is developed by Sainshand Salkhin Park LLC, a special purpose limited liability company owned by French energy major Engie, the IFU, Ferrostaal Industrial Projects and a local partner. The total project cost is estimated at USD 120 million.

The project envisages erecting 25 wind turbines on government-owned land to the southeast of Sainshand city, in the Gobi region of Mongolia.

The EBRD said that this project will help Mongolia diversify its coal-dependent power sector and cut carbon dioxide (CO2) emissions by up to 5 million tonnes over its lifetime. It will also see a new private entrant in the local power sector, where assets are almost entirely state-owned.

The bank backed the Salkhit and Tsetsii wind projects in Mongolia in 2012 and 2016, respectively.

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Iron ore price under pressure from Chinese mine restarts www.mining.com

The Northern China import price of 62% Fe content ore drifted lower to trade at $81.60 per dry metric tonne on Thursday according to data supplied by The Steel Index, bringing the pullback over the past two weeks to 12%.

Worries about supply and stockpiles at record highs are worrying the market. According to estimates from Rio Tinto, world number two producer, 296m tonnes of additional seaborne supply have entered the market in the last three years.

The Melbourne-based diversified giant forecasts supply growth to slow but a further 100m tonnes from the world's top six producers are expected this year and next.
The potential reboot in Chinese iron ore production is the main source of uncertainty
It's not only low-cost miners from Brazil and Australia that are clouding the outlook, but domestic Chinese supply which have fallen by 140m tonnes from its peak to around 260m per year, but are now making a comeback:

"Additional capacity in Brazil and Australia is already reflected in iron ore prices, so the potential reboot in Chinese iron ore production is the main source of uncertainty and therefore the likely factor that will result in price volatility," Kellie Parker, Rio's managing director for planning integration and assets, told an industry conference on Wednesday.

BHP Billiton, the world's third-biggest iron ore producer, expects to see some idled iron ore capacity in China returning to the market, but could not estimate how much.

"We think if the price maintains the level that is attractive, you will see some (capacity return)," Edgar Basto, president of BHP's Western Australia Iron Ore Asset, told reporters at the same event.
Rio said with the release of its latest financial results that roughly 30m tonnes of Chinese supply had already come back online.

According to Umetal's survey of 42 ports in China, the total iron ore inventory scaled 130 million tonnes for the first time on record this week. But in terms of months of import cover stockpiles represent, the picture looks less dire as China-bound cargo volumes continue to rise.

Total imports for January-February climbed 12.6% to 175.3 million. Chinese imports of iron ore for the full year 2016 topped one billion tonnes for the first time. The 1.024 billion tonnes constitute a 7.5% increase over the annual total in 2015.

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Lloyd's of London to open company in Brussels www.nhk.or.jp

The world's largest insurance market, Lloyd's of London, says it will set up a new company in Brussels to continue providing services after Britain's future exit from the European Union.

Lloyd's issued a press release on Thursday. The City-based market says it will have the new firm ready to write business beginning in January 2019.

Lloyd's Chief Executive Inga Beale said in a statement that it is important to provide the market and customers with an effective solution that means business can carry on without interruption when the UK leaves the EU.

The British government plans to withdraw from the EU single market as part of a project to leave the bloc. Concern is growing that the move may restrict the EU operations of firms based in Britain.

On Wednesday, the British government officially notified the EU of its intention to leave the bloc, triggering the process for both sides to negotiate the terms of departure.

Analysts say the talks will be tough. They also predict that more firms, including financial institutions, may relocate their bases and functions outside of Britain.

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Ex-South Korean president Park Geun-hye arrested in corruption probe www.bbc.com

Ousted South Korean President Park Geun-hye has been arrested and taken into custody over a corruption scandal that led to her dismissal.
The 65-year-old was driven to a detention centre south of Seoul after a court approved her arrest.
She is accused of allowing her close friend Choi Soon-sil to extort money from companies, including Samsung, in return for political favours.
Ms Park, who was removed from office earlier this month, denies the claims.
She is the third former president of South Korea to be arrested over criminal allegations, Yonhap reports.

The Seoul Central District Court earlier issued a warrant to detain Ms Park while she is investigated on charges of bribery, abuse of authority, coercion and leaking government secrets.
It followed a nearly nine-hour court hearing on Thursday that Ms Park attended.
"It is justifiable and necessary to arrest [Ms Park] as key charges were justified and there is risk of evidence being destroyed," the court said in a statement.
Live television footage showed a black sedan carrying her to the detention facility from the prosecutor's office where she had been waiting.
Despite the early hour, some 50 supporters, waving national flags and demanding her release, were at the gate to greet her, the AFP news agency reports.
Ms Park can be held for up to 20 days before being formally charged.
If convicted she could face more than 10 years in prison.

Ms Park lost her presidential immunity and was dismissed from her post when the constitutional court upheld a decision by parliament in December to impeach her.
Ms Choi is accused of using her presidential connections to pressure companies to give millions of dollars in donations to non-profit foundations she controlled.
Ms Park is alleged to have been personally involved in this, and to have given Ms Choi unacceptable levels of access to official documents.
Judges had said the former president had broken the law by allowing Ms Choi to meddle in state affairs, and had breached guidelines on official secrets by leaking numerous documents.
Ms Choi and Samsung's acting head Lee Jae-yong, also involved in the scandal, are being held in the same detention centre to where Ms Park has been sent. They are also being tried separately.
Hwang Kyo-ahn, who is loyal to Ms Park, is now the acting president and an election is to be held by 9 May.

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Japan to grant a US$ 850 million soft loan to Mongolia www.gogo.mn

The official visit of Mongolian parliamentarians headed by Speaker of the Parliament M.Enkhbold has commenced on March 27, 2017. 
On this day, Japanese Prime Minister Shinzo Abe received Chairman M.Enkbold. Meanwhile, he announced to grant a US$ 850 million soft loan to Mongolia, in scope of IMF`s Extended Fund Facility program. 
This loan is almost equal to the total loan amount provided by the Japanese government since Mongolia`s transition to democracy and a market economy.
Japan has provided a total of US$ 3 billion loan to Mongolia, of which approximately US$ 1 billion was soft loan. 
During the meeting, Speaker M.Enkhbold mentioned some of the major projects that can be implemented by two countries. He stated "Mongolia is extremely rich in solar and wind energy resources. We have an opportunity to produce clean energy using these resources and supply it to regional countries of Northeast Asia Grid Interconnection. We would like to implement this project in cooperation with your country". Moreover, he asked Japanese Prime Minister to take into account the issue of copper, iron ore and fluorite export to the Japanese market. 
Japanese Prime Minister Shinzo Abe said "We are able to send a professional team to conduct research and conclusion when feasibility study of the coal-chemical complex project is completed. Other issues related to the export and energy should be submitted through the Japanese embassy in Mongolia".

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Mongolia launches seven new air routes www.gogo.mn

On Mar 30th at 8 a.m, Mongolian civil aviation sector launched seven new air routes. 
According to the "Government policy on civil aviation until 2020", Mongolian civil aviation sector set to implement Performance-based navigation (PBN) procedures with three phases. The launch of seven new air routes was the second phase of the implementation of PBN procedure. 
PBN offers a number of advantages over the sensor-specific method of developing airspace and obstacle clearance criteria:
reduces the need to maintain sensor-specific routes and procedures, and their costs. 
avoids the need for developing sensor-specific operations with each new evolution of navigation systems, which would be cost-prohibitive. 
allows for more efficient use of airspace (route placement, fuel efficiency and noise mitigation);
clarifies how RNAV systems are used;
facilitates the operational approval process for civil aviation authorities by providing a limited set of navigation specifications intended for global use.
Previously, Mongolia was using three PBN routes and today it has increased to 10. As estimated, the new PBN routes to reduce carbon dioxide emitting by transit air crafts by 5220 tons, shorten 230 thousand kilometers route and save 1,600 tons of fuel.

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Erdenes Tavan Tolgoi announces complete repayment of debt to CHALCO www.montsame.mn

Ulaanbaatar /MONTSAME/ The USD 350 million debt of Erdenes Tavan Tolgoi JSC owing to Aluminum Corporation of China Limited (CHALCO) was repaid completely. This enables the Mongolian government to reap the benefits of coal exploitation at the East Tsankhi of Tavan Tolgoi mine as the coal mining revenues will be added to the government budget 100 percent, said D.Ariunbold, CEO of Erdenes Tavan Tolgoi JSC, on Thursday, March 30.

“The Mongolian government had paid USD 240 million to CHALCO as of last October, and remained liable for USD 110 million more. Remnant of the debt was repaid within seven months. Thanks to wise management and government directions toward commencing exploitation in the West Tsankhi and open auction on coal, this became possible. Price for a ton of coal stood at USD 26.0 by September 2016. 
At the open auction, Tavan Tolgoi’s coal was sold at USD 72.5 per ton. A Mongolian project, jointly proposed by Mongol Uurkhaichin Negdel (Mongolian Miners Cooperative), also known as Khishig Arvin Company, and Olborlolt Mera LLC won the bid for operating the mine. This indicates that national companies have technological and educational capabilities of independently operating such a large-scale coal mine. With Mongolians operating the mine, around 200 billion Tugrugs of investment is staying in the Mongolian economy”, he said.

Erdenes TT expects to mine 11.5 million tons of coal and make revenue of USD 550 million. The company extracted 2.8 million tons and exported 2.2 million tons of coal so far in 2017. The Prime Minister has given an obligation to repay debts and distribute payables to the citizens for respective 1,072 shares of Erdenes TT. In case the coal price will be stable for a longer period, the distribution is deemed possible to be launched within this year. Also, Erdenes TT leaders intend to adopt adequate quality management to raise investment from international sources.

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Oyu Tolgoi announces 2016 Performance Update www.ot.mn

Oyu Tolgoi today announced an update on its performance for the fourth quarter and full year 2016.

Full year highlights:

Oyu Tolgoi achieved an industry-leading safety performance with an All Injury Frequency Rate of 0.22 per 200,000 hours worked for the year ended December 31, 2016
Oyu Tolgoi cumulative in-country spend, in the form of salaries, payments to Mongolian suppliers, taxes, royalties and other payments to the Government of Mongolia, crossed $6.1 billion the end of 2016
Operations update:
Revenue of $1.2 billion in 2016 on record concentrate sales of 828,600 tonnes
Operated at record levels for material mined and ore treated; concentrator throughput exceeded nameplate capacity by year end
Copper production of 201,300 tonnes and gold production of 300,000 ounces exceeded guidance
Underground update:
Progress was made on the sinking of Shafts 2 and 5 with final depth for both shafts expected to be reached in 2017
At the end of 2016, underground lateral development was ahead of schedule with 1.6 equivalent kilometres completed
Bulk excavation component of the convey-to-surface system completed in 2016, followed by the commencement of the decline tunnel work in January 2017
Fourth quarter 2016:

Revenue of $224.6 million in Q4’16 was slightly lower than Q3’16 reflecting lower concentrate sales
In Q4’16, concentrator throughput increased 7.4 per cent over Q3’16 resulting in an average daily rate of 106,700 tonnes for the quarter, which was a quarterly high to date.
Outlook for 2017:

Oyu Tolgoi is expected to produce 130,000 to 160,000 tonnes of copper and 100,000 to 140,000 ounces of gold in concentrates for 2017
Sales contracts have been agreed for a significant majority of Oyu Tolgoi’s expected 2017 concentrate production
Oyu Tolgoi Managing Director Armando Torres said, “Our industry leading safety performance over 2016 demonstrates once again that safety always comes first at Oyu Tolgoi – and this is a result we are extremely proud of. This is a foundation for everything we do – from delivering a strong operating performance, to progressing underground development – and made possible by our talented workforce, which is over 90 per cent Mongolian.”

“The strength of our performance is seen in our contribution to our community – with US$210.6 million in taxes, fees and other payments to the Government of Mongolia, US$279 million in national and South Gobi supplier spends, and continued investment into sustainable development initiatives – as we together build a world class business that contributes to the prosperity of Mongolia”

Oyu Tolgoi operated at record levels in 2016. Productivity improvements in the concentrator implemented throughout the year led to throughput exceeding nameplate capacity by year end. Copper production of 201,300 tonnes for 2016 exceeded the Company’s guidance of 175,000 to 195,000 tonnes and annual gold production of 300,000 ounces exceeded 2016 guidance of 255,000 to 285,000 ounces. Compared to 2015 results, mined production for 2016 increased 5.6 per cent, concentrator throughput increased 10.5 per cent, copper production was similar and, as expected, gold production decreased 54.1 per cent. Decreased gold production for 2016 reflects the impact of declining grade from the completion of Phase 2 mining in the second half of the year.

Oyu Tolgoi performed well during Q4’16 as open-pit operations focused mainly on Phases 4 and 6. Q4’16 concentrator throughput increased 7.4 per cent over Q3’16 resulting in an average daily rate of 106,700 tonnes for the quarter, which was a quarterly high. Copper production in Q4’16 was broadly consistent with Q3’16 while gold production increased 32.4 per cent over Q3’16 due to the final processing of Phase 2 ore. Copper grades in Q4’16 were as expected as operations focused mainly on Phase 6 of the open pit.

Oyu Tolgoi continues to deliver a strong environmental performance, achieving high water use efficiency – utilizing less than half the water per-tonne of ore compared to similar operations, and achieving recycling rates of 85 per cent. Oyu Tolgoi completed biological rehabilitation at 367.3 hectares land in 2016, and continued progress on a range of environmental programmes.

Oyu Tolgoi also delivered strong progress in community initiatives, with two kindergartens and a school in Dalanzadgad, sport halls in Manlai operationalized, and 13 new sustainable development projects and programmes approved and implemented in 2016. A new bulk water treatment facility in Khanbogd was also completed and is scheduled to be handed over to the local community in April, 2017. The facility gives a significant boost to the community, with the capacity to provide services to 13,000 residents.

Revenues in 2016 decreased 26.4 per cent to $1.2 billion against 2015 mainly reflecting lower copper prices and reduced gold sales, partially offset by higher gold prices. Concentrate sold in 2016 of 828,600 tonnes increased 1.1 per cent over 2015 reaching an annual high. Capital expenditure, on a cash basis, for 2016 was $326.3 million compared to $116.2 million in 2015, comprising amounts attributed to the underground project and open-pit activities of $226.8 million and $99.5 million, respectively. Open-pit capital expenditure includes deferred stripping of $30.9 million and tailings storage facility spending of $22.0 million.

Operational outlook

Oyu Tolgoi is expected to produce 130,000 to 160,000 tonnes of copper and 100,000 to 140,000 ounces of gold in concentrates for 2017. Open-pit operations are expected to mine in Phases 4 and 6 during the year. In addition, stockpiled ore will be processed during the year. The lower production when compared to 2016 is primarily the result of approximately one-quarter less copper head grade and approximately one-half less gold head grade.

Capital expenditures for 2017 on a cash-basis are expected to be approximately $100 million for open-pit operations and $825 million to $925 million for underground development.

Underground development capital includes both expansion capital and VAT. In an effort to encourage bidding by Mongolian suppliers, Oyu Tolgoi has incorporated longer tendering periods resulting in a slightly longer capital deployment process. The Company continues to expect production from the first underground draw bell in mid-2020 and first sustainable production beginning in early 2021.

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