1 MONGOLIA-CHINA AGREE TO COLLABORATE IN INCREASING MEAT EXPORT WWW.MONTSAME.MN PUBLISHED:2018/09/21      2 U.S. AND MONGOLIA SEEK TO STRENGTHEN ECONOMIC RELATIONSHIP WWW.STRTRADE.COM PUBLISHED:2018/09/21      3 MONGOLIA, U.S. LEADERS DISCUSS BILATERAL TIES WWW.XINHUANET.COM PUBLISHED:2018/09/21      4 BELT AND ROAD SIGNIFICANT TO MONGOLIA, PEOPLE AROUND WORLD -- ACADEMIC WWW.ENG.YIDAIYILU.GOV.CN PUBLISHED:2018/09/21      5 PETRO MATAD UPDATES MONGOLIA EXPLORATION WWW.OGJ.COM PUBLISHED:2018/09/21      6 RIO TINTO’S EXIT FROM COAL PAYS OFF, TO RETURN $3.2B FROM SALES PROCEEDS TO SHAREHOLDERS WWW.MINING.COM PUBLISHED:2018/09/21      7 OPENING CEREMONY OF SAINSHAND SALKHIN PARK HELD WWW.MONTSAME.MN PUBLISHED:2018/09/21      8 ALIBABA’S MA SAYS TRUMP’S TRADE WAR ‘DESTROYED’ HIS PROMISE TO CREATE JOBS FOR 1MN AMERICANS WWW.RT.COM  PUBLISHED:2018/09/21      9 LEGAL DISPUTE OVER EMC OWNERSHIP COMES TO AN END WWW.ZGM.MN PUBLISHED:2018/09/20      10 ERDENES TAVAN TOLGOI REVENUE SURGES DUE TO HIGHER COAL PRICES WWW.NEWS.MN PUBLISHED:2018/09/20      НУРАХ ДӨХСӨН БАЙРУУДЫГ ШИНЭЧЛЭХ КОМПАНИ ОЛДОХГҮЙ БАЙНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/21     МОНГОЛ УЛС ВАШИНГТОН, ПЁНЬЯНЫ ХЭЛЭЛЦЭЭРТ ЗУУЧЛАХАД БЭЛЭН ГЭДГЭЭ ЗАРЛАЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2018/09/21     УЛСЫН ХЭМЖЭЭНД 85.3 МЯНГАН ТОНН ТӨМС ХУРААН АВААД БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/21     ЗГ: БУЦАЛТГҮЙ ТУСЛАМЖИЙГ УСНЫ НӨӨЦИЙГ САЙЖРУУЛАХ, ХЭРЭГЛЭСЭН УСЫГ БУЦААН АШИГЛАХАД ЗАРЦУУЛНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/21     ҮСХ: УЛААНБААТАРТ АЖИЛЛАГЧДЫН САРЫН ДУНДАЖ ЦАЛИН УЛСЫН ДУНДЖААС 121.7 МЯНГАН ТӨГРӨГӨӨР ИХ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/21     МОНГОЛ УЛСЫН ИХ ХУРАЛ, ЕВРОПЫН ПАРЛАМЕНТ ХООРОНДЫН XII УУЛЗАЛТААР ХАМТАРСАН МЭДЭГДЭЛ ГАРГАЛАА WWW.DNN.MN НИЙТЭЛСЭН:2018/09/21     ТӨРИЙН АЛБАНЫ УДИРДАХ АЖИЛТНЫ УЛСЫН ЗӨВЛӨГӨӨН БОЛЖ БАЙНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/09/21     2019 ОНЫГ МОНГОЛ, АМЕРИКИЙН ЗАЛУУЧУУДЫН ЖИЛ БОЛГОНО WWW.EAGLE.MN НИЙТЭЛСЭН:2018/09/21     УУРХАЙЧДЫН АЖЛЫН БАЙР НЭМЭГДЭЖ, ЦАЛИН ӨСЧ БАЙНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/09/20     “ЭРДЭНЭТ”-ИЙН 49 ХУВИЙН ӨМЧЛӨЛ ТОЙРСОН ХУУЛЬ ЗҮЙН МАРГААН ЭЦЭС БОЛЛОО WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/20    

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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China's Yancoal acquires Australian coal assets of Rio Tinto www.chinadaily.com

JINAN - China's Yancoal Australia will take over Rio Tinto's coal assets in Australia in a deal worth $2.35 billion.

Under the deal, Coal & Allied Industries Ltd, which operates two mines in Australia, will be sold to Yancoal Australia, which is majority controlled by Yanzhou Coal Mining, one of China's largest mining groups by market capitalization.

The deal is expected to be completed before October, according to Yanzhou Coal Chairman Li Xiyong.

After completion, Yancoal Australia will be Australia's largest pure-play coal producer.

The two coal mines have an annual output of 35 million metric tons, which is mainly exported to Japan and South Korea.

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Samsung Electronics leaves major business lobby www.nhk.or.jp

Samsung Electronics has left a major South Korean business lobby group that was criticized as a hotbed of cozy relationship between political and business worlds.

The flagship company of Samsung Group filed its intention to withdraw with the Federation of Korean Industries, or FKI, on Monday. The lobby consists of about 600 companies.

The federation came under fire over allegations that its senior officials lobbied Samsung to pay money to 2 foundations linked to President Park Geun-hye's close friend Choi Soon-sil.

After Samsung's announcement, FKI officials said they have nothing to say about any decision by a member company.

Firms of the conglomerate LG Group have already withdrawn from the federation.

South Korean media say Samsung Group alone accounted for one-fourth of the total membership fees.

Observers say the chance that the federation will survive is slim, as other affiliates of Samsung Group are expected to follow suit.

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Russia produced $4bn worth of food since banning Western imports www.rt.com

The introduction of a limited Western food embargo three years ago has increased domestic production, said the deputy head of the Russian Agriculture Ministry Yevgeny Gromyko.

According to him, "almost $4 billion worth of Russian products have been produced as part of the so-called import substitution.”

That means, previously imported cheese, sausages, and other products have been replaced by domestic ones, Gromyko told reporters on Monday.

Moscow banned imports of agricultural produce, food and raw materials from some Western countries in 2014. The move was in response to EU and US sanctions against Russia over its alleged role in the Ukrainian crisis.

The sides have repeatedly broadened and extended the restrictive measures since then despite warnings to Western governments that their economies are suffering. Some policymakers and businesses say the measures have proven to be politically ineffective and economically harmful for both Russia and Europe.

Russian President Vladimir Putin recently said the country's reciprocal action in the form of an embargo on certain Western food products were good for Russia’s economy and should last "as long as possible."

He explained the ban was also in the consumers’ interest, with high-quality domestic products at lower prices becoming more available.

Prime Minister Dmitry Medvedev said it is necessary to develop agriculture and industry so that it will be competitive with the West.

According to Medvedev, the measures were introduced to stimulate domestic production, and many Russian companies have been asking the government to keep them.

"We have imposed the embargo not to annoy our Western partners but mainly to develop our economy. Russian businesses asked us not to cancel it because of the opportunities they have,” said Medvedev.

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'If trade stops, war starts,' warns Alibaba founder Jack Ma www.rt.com

Retreat from globalization will only result in trouble, warned China's second richest man Jack Ma during a visit to Australia.

“Everybody is concerned about trade wars. If trade stops, war starts,” he said in Melbourne, where the e-commerce giant Alibaba opened its Australia and New Zealand headquarters.

“But worry doesn't solve the problem. The only thing you can do is get involved and actively prove that trade helps people to communicate,” said Alibaba’s CEO, as quoted by Business Insider Australia.

The globalized economy is more than just transactions of money and goods, according to Ma.

“We have to actively prove that trade helps people to communicate. And we should have fair trade, transparent trade, inclusive trade,” he said.

“Trade is about a trade of values. Trade of culture,” said the billionaire, stressing that he felt a personal responsibility to fly more than a hundred thousand kilometers in the past month to promote global commerce.

Jack Ma spoke with Australian Prime Minister Malcolm Turnbull on Friday about creating ‘a regional e-hub’ a trade zone allowing freer online business with less border bureaucracy to deal with.

“If Australia, New Zealand and other countries can create a free trade zone in the form of an e-hub for small businesses, they can work like the big companies – with 24 hours clearance, better tariffs, and quicker inspections. That could help a lot of small businesses,” he said.

While meeting US President Donald Trump last month, Ma announced Alibaba would help to create a million jobs in the US.

Trump has taken a protectionist stance, sharply criticizing all the attempts to involve his country in new trade agreements.

The US President’s first executive order withdrew the US from the Trans-Pacific Partnership (TPP), a deal among eleven Pacific Rim countries, which include Australia and New Zealand.

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Mongolia imports 21 percent of its energy consumption www.montsame.mn

Ulaanbaatar /MONTSAME/ In accordance with the power purchase agreement with Russia, Mongolia imports 1 kW power for MNT 33.548 from Russia, reported the Energy Minister P.Gankhuu during the Parliamentary plenary session.

The total energy consumption of Mongolia was 6.9 billion kW/hour as of 2015, 21 percent of which is imported from China and Russia at a high price.

Electricity tariff is legislated to be 15-18 cents from solar energy and 9.5 cents from wind power in Mongolia. Mongolia has made agreement with countries such as Chile and United Arab Emirates to buy 1 kW/hour solar energy-based electricity for less than 3 cents, which is equal to half the cost of energy production from coal.

Currently, there are three renewable energy sources-based plants operational in the Mongolian energy system, including ‘Salkhit’ wind plant , ‘Dorgon’ and ‘Taishir’ hydropower plants. These plants produce approximately 210 million kW/hour electricity and supply to the energy network and their supply price should be lowered, say corresponding officials.

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JPMorgan gets China corporate bond underwriting license www.reuters.com

JPMorgan Chase & Co < JPM.N> said on Monday it had received approval and license to underwrite corporate bonds in China's interbank bond market, making it the first U.S.-headquartered bank to do so.

The license enables JPMorgan to underwrite debt financing instruments issued by non-financial entities, including commercial papers, medium-term notes and other instruments approved by regulators, it said.

The license was granted by the National Association of Financial Market Institutional Investors (NAFMII), which oversees the Chinese interbank bond market, said a statement issued by JPMorgan.

China is the third largest bond market in the world with 43.7 trillion yuan ($6.37 trillion) outstanding at the end of 2016 with the interbank bond market accounting for over 90 percent, according to China Central Depository & Clearing Co.

In September last year, JPMorgan was granted a business license to operate a fully owned fund management business in China, allowing it to set up an office in Shanghai free-trade zone.

(Reporting by Sumeet Chatterjee; Editing by Vyas Mohan)

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World Bank to implement Second Energy Sector Project www.montsame.mn

Ulaanbaatar /MONTSAME/ According to the Ministry of Energy, World Bank plans to implement project in energy sector of Mongolia with USD 55.4 million. 

The project is aiming to distribute constant reliable electricity service of higher quality in the rural area to meet the increasing demand of electricity. The preparatory work is being made to support sustainable energy by reducing system losses and improving economic efficiency of power supply companies, such as “Baganuur-Southeastern Region Electricity Distribution Network” SOE, “National Power Transimission Grid” SOE and the “Western Energy System” SOE JSCs.

The following actions are planned within the project:

Upgrading and expansion of “Baganuur-Southeastern Region Electricity Distribution Network” SOE.
Upgrading and expansion of “Erdenet-Bulgan Electricity Distribution Network” SOE.
Expansion of “National Power Transmission Grid” SOE’s distribution facilities in Baganuur and Khangai.
Establishment of 10 MW solar photovoltaic power plant for “Western Energy System” SOE.

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Toyota and Suzuki agree to begin formal talks on partnership www.reuters.com

 
Toyota Motor Corp (7203.T) and Suzuki Motor Corp (7269.T) on Monday said they have agreed to begin formal talks aimed at forging a partnership between the two Japanese car makers in shared procurement, green vehicles, IT and safety technologies.
Toyota and Suzuki said in October they were exploring a partnership, citing technological challenges facing automakers and the need to keep up with consolidation in the global auto industry.
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Mazda, Subaru brace for Trump's trade policies www.asia.nikkei.com

 
TOKYO -- With U.S. President Donald Trump demanding that even Japanese automakers put "America first," Mazda Motor and Subaru maker Fuji Heavy Industries are growing concerned over the potential impact of tariffs and other trade protections that could limit access to the world's largest car market.
 
"We don't know what direction things will go," Mazda President and CEO Masamichi Kogai told reporters Sunday when asked about Trump's pledge to renegotiate the North American Free Trade Agreement. "What's important for us is to develop more attractive products and boost sales."
 
Ford Motor CEO Mark Fields, one of the loudest critics of the Japanese auto market, had once served as president and CEO of Mazda as part of the companies' past partnership. "I have no particular comments" regarding Fields, Kogai said.
 
Mazda expects to sell 1.55 million cars worldwide for the fiscal year ending in March, with the U.S. accounting for 15%, or about 230,000 units. But roughly 80% of the vehicles it sells in the country are shipped from Japan and the rest from Mexico. Exchange rates have a huge impact on sales.
 
Trump is calling for a 35% tariff on cars made in Mexico, which would make it a significant burden to build vehicles in the country. For an automaker of Mazda's size, building a new plant in the U.S. will be a challenge. It could face a tough decision depending on what Trump's policies shape up to be.
 
Six Japanese companies -- Toyota Motor, Nissan Motor, Honda Motor, Mitsubishi Motors, Fuji Heavy and Mazda -- currently sell autos in the U.S. market. Toyota had previously promised to invest $10 billion in the country, and made another announcement Jan. 24 on its roughly $600 million investment in a plant in Indiana. President Akio Toyoda has also met with Japanese Prime Minister Shinzo Abe.
 
Fuji Heavy's only overseas factory is located in Indiana. The automaker just doubled annual output capacity there in December to around 400,000 vehicles, hiring an additional 1,500 or so workers and bringing the total to about 5,500. It plans to ramp up capacity to 440,000 units by fiscal 2018.
 
Fuji Heavy has doubled annual sales in the U.S. to about 615,000 units in the five years through 2016, accounting for 60% of global sales. Its exports from Japan were hit hard by the strong yen earlier this fiscal year, but the recent softness in the currency is expected to mitigate the expected drop in profits. The company is hoping to sell up to 670,000 vehicles in the U.S. in 2017. But it is looking to produce just around 60% of the vehicles locally -- less than Toyota and other big automakers. It will be affected significantly by any tariffs or movements in the exchange rate.
 
Japanese autoparts makers face uncertainties as well. The Japan Auto Parts Industries Association says that the number of Mexican production bases operated by its members had doubled in five years to 109 as of March 2016.
 
Yorozu, which supplies suspensions and other parts to Nissan, is expanding two plants in Mexico and plans to have the added production up and running by the end of the year. "We will consider a response if the U.S. takes further steps toward protectionism," said Chairman and CEO Akihiko Shido.
 
Smaller automakers more exposed due to limited US production
 
U-Shin, which makes parts for Mazda and other companies, has moved production from the U.S. to a Mexican plant set up in 2012. "We will consider reassigning some production back to the U.S.," a company representative said.
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Areva deal signals chilled French-Chinese nuclear partnership www.asia.nikkei.com

PARIS -- Troubled French reactor builder Areva has agreed to accept equity stakes from Mitsubishi Heavy Industries and Japan Nuclear Fuel. But missing from the list is a Chinese backer, signaling cooling Sino-Franco relations in the nuclear sector.
Reforms, including the injection of fresh capital, are essential for growth of Areva, CEO Philippe Knoche told a shareholders meeting Friday. Shareholders are expected to approve a capital increase of some 5 billion euros ($5.39 billion).
The French government will provide 4.5 billion euros of that. Mitsubishi Heavy and Japan Nuclear Fuel will pick up the rest in exchange for separate 5% stakes in nuclear fuel reprocessing unit NewCo.
After cost overruns while constructing a reactor in Finland, the French group had posted its fifth straight annual net loss through the year ended December 2015. The cumulative losses for the five years reach well north of $8 billion, prompting the company to seek capital relief.
The group courted China National Nuclear Corp. to invest in NewCo, but talks apparently fell through in late January. According to a person close to the matter, the Chinese side wanted to acquire a larger stake than the Japanese contingent as well as install a director -- terms Areva was not willing to swallow.
Many within Areva and state-owned utility Electricite de France, which is acquiring reactor-building unit Areva NP, have argued that the Chinese market should be a priority. The world's No. 2 economy will account for most new nuclear plants through 2040, meaning growth would be impossible without Chinese orders. But both Washington and Tokyo have raised security concerns, forcing Areva to give up accepting an investment, according to French media.
Now the French are worried about frosty business relations with China. The two sides have been building new plants in the mainland and sharing nuclear fuel reprocessing technology. But now new orders from China may be hard to come by. Fissures may also appear in the Franco-Sino partnership in the U.K. EDF and a Chinese company have purchased stakes in the Hinkley Point C nuclear station in southwestern Britain. In the southeast, EDF is providing support for the Bradwell plant being developed by the Chinese.
China is one of the few partners French companies rely on when it comes to finances. The French have not yet closed the door on an eventual sale of an equity stake in NewCo.
The French nuclear industry is home to between 300,000 to 400,000 workers. Facing high unemployment rates, the government has led the rescue efforts at Areva, highlighting the urgency of overhauling the nuclear sector. Areva is spinning off its nuclear fuel business into NewCo. Areva NP will severe the Finland reactor project and go under the umbrella of EDF. The French government is looking for international investors in Areva NP. Mitsubishi Heavy has shown interest, but the failure at NewCo may cloud discussions with potential Chinese suitors.
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