1 FOREIGN RELATIONS OF MONGOLIA’S ROAD TRANSPORT SECTOR BROADENING WWW.MONTSAME.MN PUBLISHED:2019/02/21      2 MONGOLIA EXPRESSES READINESS TO CONTRIBUTE TO STRENGTHENING ASIA-EUROPE COOPERATION WWW.MONTSAME.MN PUBLISHED:2019/02/21      3 OYU TOLGOI FUNDED 35.1 KM ROAD OPENS IN KHANBOGD WWW.GOGO.MN PUBLISHED:2019/02/21      4 POLYMER BITUMEN TO BE DOMESTICALLY PRODUCED WWW.MONTSAME.MN PUBLISHED:2019/02/21      5 KHURELBAATAR CHIMED: 319 ENTITIES DREW LOANS FROM TWO FUNDS WWW.ZGM.MN PUBLISHED:2019/02/21      6 CONSTRUCTION OF TAVANTOLGOI-GASHUUNSUKHAIT ROAD TO BE INTENSIFIED WWW.MONTSAME.MN PUBLISHED:2019/02/20      7 OVER 30 MEASURES PLANNED FOR REDUCTION OF ENVIRONMENTAL POLLUTION WWW.MONTSAME.MN PUBLISHED:2019/02/20      8 MONGOLIA SAYS IT EARNS OVER 169 MLN USD FROM COAL EXPORTS TO CHINA IN JAN WWW.HELLENICSHIPPINGNEWS.COM  PUBLISHED:2019/02/20      9 RUSSIA’S GAZPROM TO START CHINA GAS PIPELINE BY DECEMBER 1 WWW.RT.COM PUBLISHED:2019/02/20      10 MONGOLIA'S FOREIGN TRADE UP 41.6 PCT IN JAN. WWW.XINHUANET.COM PUBLISHED:2019/02/20      УГСАРМАЛ ОРОН СУУЦНЫ ДУЛААЛГАД ЗОРИУЛЖ 12.7 ТЭРБУМ ТӨГРӨГИЙГ УЛСЫН ТӨСВӨӨС ГАРГАХААР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/21     2018ОНД ЦАГААН БУДАА , ЭЛСЭН ЧИХЭР , ТАХИАНЫ МАХНЫ ИМПОРТ 24-32 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ДЦС IV: 2018 ОНД НИЙТ АШИГ 4.7 ДАХИН ӨСӨЖ , 4.48 ТЭРБУМ ТӨГРӨГ БОЛСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ТУСГАЙ САНГУУДААС ГАРГАСАН ЗЭЭЛИЙН 100 ОРЧИМ ТЭРБУМ ТӨГРӨГ ХУГАЦАА ХЭТЭРСЭН ӨР БОЛЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     МОНГОЛ УЛСЫН БОРЛУУЛАЛТЫН МЕНЕЖЕРҮҮДИЙН ИНДЕКС СҮҮЛИЙН 12 САРД АНХ УДАА УНАЛТЫН БҮСЭД ШИЛЖИВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     2018 ОНД ХАМГИЙН ЧИНЭЭЛЭГ БҮЛГИЙН ХЭРЭГЛЭЭ ЯДУУ БҮЛГИЙНХНЭЭС 5.1 ДАХИН ИХ БАЙВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     ХОВД ГОЛД ОСОЛДСОН 6 НАСТАЙ ХҮҮХДИЙН ЭРЛИЙГ ЗОГСООЛОО WWW.MONTSAME.MN НИЙТЭЛСЭН:2019/02/21     ДБНХ-НООС П.ОРХОНЫ БАРИЛДАХ ЭРХИЙГ 4 ЖИЛЭЭР ХАСАВ WWW.MONTSAME.MN  НИЙТЭЛСЭН:2019/02/21     УУХҮЯ: II САРЫН БАЙДЛААР НИЙТ НУТАГ ДЭВСГЭРИЙН 5.6 ХУВЬД АШИГТ МАЛТМАЛЫН ЛИЦЕНЗ ОЛГОСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/20     300 ОРТОЙ ТӨРӨХ ЭМНЭЛГИЙН БАРИЛГЫН АЖИЛ 80%-Д ХҮРЧ ГУРАВДУГААР САРЫН 1-НЭЭС ДУЛААНД ХОЛБОГДОХООР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/20    

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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Turquoise Hill revenue surprise lifts shares 6% www.mining.com

 
Shares in Turquoise Hill (TSE:TRQ) rose sharply on Tuesday after the company announced better than expected revenues amid declining production at its massive Oyu Tolgoi copper and gold mine in Mongolia.
 
By the close in New York Turquoise Hill stock was changing hands at $2.81, up 6.2% on the day, bringing its year-to-date gains to more than 21%.
 
The Vancouver-based company said in a statement copper production at Oyu Tolgoi fell 16.3% during the first quarter compared to the final quarter 2016 while gold production declined 49%. Turquoise Hill said the drop was expected due to lower grade and recoveries at the lower end of the grade recovery curve.
 
Sales went in the other direction and the company recorded revenue of $237.5 million in Q1 which was 5.7% higher than Q4 last year reflecting a higher average selling price for copper and higher volumes of copper in concentrates sold. The Oyu Tolgoi concentrator amassed record average daily throughput for the quarter of 112,100 tonnes, up 5.1% compared to the December quarter.
 
Turquoise Hill is forecasting lower output at the open pit compared to last year of 130,000 – 160,000 tonnes of copper in concentrates during 2017. Gold in concentrate output of 100,000 ounces – 140,000 ounces is forecast for the full year.
 
$136.4 million was spent on the Oyu Tolgoi underground expansion during the quarter and the company awarded several large contracts during the quarter, with the largest for the decline material handling system.
 
More than $363 million has been spent on construction of the new mine so far and capital commitments for the year is an additional $872 million. Total capital outlay is around $5.3 billion with first production from the underground operation expected mid-2020.
 
Oyu Tolgoi is expected to be world's third-largest copper mine at peak production in 2025 with output of over 550,000 tonnes per year.
 
Turquoise Hill owns a 66% interest in Oyu Tolgoi in the Gobi Desert close to Mongolia's border with China with the government of the Asian nation holding the rest. Turquoise Hill is controlled by Anglo-Australian giant Rio Tinto (LON:RIO).
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Export surge as coal price increases www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ Some positive changes occurred in Mongolian economy in connection with the 100-120 percent increase in coal price on the global market against the same period of last year, reports the Bank of Mongolia.
 
Following the soaring coal price, Mongolia’s exports grew by 41 percent, said the Director of the Research and Statistics Department of the central bank, Mr D.Gan-Ochir. “Regarding this growth, as the foreign exchange flow has been increasing, the GDP rose by 4.2 percent compared to the same period of 2016. All of these have been resulting in alleviation of foreign debt burden, and stabilization of MNT rate against foreign exchange. Also, companies and individuals have been transferring their USD savings into MNT accounts”, he added.
 
The amount of non-performing loans has been decreasing as MNT rate stabilizes. Non-performing loans constituted 7.9 percent of total outstanding loans. The banks, which had been granting only consumption loan, started to allocate loans for mining and construction.
 
“All of the positive changes are thanks to the coal price increase and Mongolia’s cooperation with IMF”, said Mr Gan-Ochir.
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Mongolia says it grows 4.2 pct y/y in Q1, lifted by higher coal prices www.reuters.com

 
May 16 Mongolia's economy, which grew only 1 percent in 2016, expanded 4.2 percent in the first quarter from a year earlier, buoyed by the coal sector's turnaround, government data showed on Tuesday.
 
The National Statistics Office data may signal a recovery for the resource-dependent nation, mired in an economic crisis caused by heavy foreign debt, a collapse in its currency and slowing growth in China, its biggest trading partner.
 
"The frontier economy of Mongolia has started to grow and is showing the green shoots of recovery after three years of plummeting growth and recession in the private economy," World Economics, a London-based research group, wrote on Tuesday.
 
First quarter growth clearly was helped by stronger prices for coal, the main revenue source.
 
The average coal price from Mongolia in March was $62.37 per tonne, compared with $28.60 one year earlier, according to data from China's customs authority.
 
Bold Ulziibayar, chief executive of Ulaanbaatar-based ARD Capital, said the increased price "is definitely the main driving factor of the growth."
 
"Although, we saw some decrease in production of some mining products such as oil and copper, coal production has increased twofold and iron ore threefold," she said.
 
STRONGER CURRENCY
 
In the first four months of 2017, coal exports jumped nearly fivefold from a year earlier to $769.8 million, contributing to a 40 percent increase in total export income, the statistics office said.
 
Mongolia's tugrik currency, which tumbled nearly 25 percent in 2016, strengthened 3 percent against the dollar in the first quarter.
 
However, economic pressures continue to hurt Mongolia ahead of June presidential elections. At the end of March, annual inflation was 3.4 percent, compared with 1.1 percent at the end of 2016. Unemployment reached 9.1 percent, from 8.6 percent at the end of last year.
 
The Mongolian government has said it expects economic growth of 1.5-2.5 percent this year, while the Asian Development Bank has forecast 2.5 percent. The World Bank and International Monetary Fund have both predicted a 0.2 percent contraction.
 
The IMF board is expected to decide this month on a proposed $5.5 billion bailout for Mongolia. A decision was delayed from April because of legislation, since annulled, that forced some companies to make transactions through Mongolian banks.
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Duterte says he'd sponsor Turkey & Mongolia for ASEAN, defying geography www.rt.com

 
The Philippines’ outspoken President Rodrigo Duterte says he would push for the entry of Turkey and Mongolia into the Association of Southeast Asian Nations (ASEAN). That’s despite neither of the countries actually being in Southeast Asia.
 
Duterte said that he met Turkish President Recep Tayyip Erdogan and Mongolian Prime Minister Jargaltulga Erdenebat on the sidelines of the ‘One Belt, One Road’ summit in the Chinese capital, Beijing, that took place May 14-15.
 
Erdogan and Erdenebat told the Philippines leader about their desire to join ASEAN, Duterte said. The Philippines is will be chairman of ASEAN 2017.
 
“They want to join ASEAN and since I am now the chair, the Philippines is, they wanted me to sponsor their entry and I said, ‘Yes, why not,’” he told reporters in the Philippines, as cited by AFP.
 
Neither Turkey nor Mongolia is actually in Southeast Asia, though. Turkey lies between western Asia and Eastern Europe, while Mongolia, sandwiched between Russia and China, is in East Asia.
 
Aung San Suu Kyi, a State Counsellor and de facto head of government of Myanmar (also an ASEAN member) asked Duterte at the summit if he had taken geography into account. The Philippines leader was firm – these countries belong in ASEAN.
 
“They are. I would say that they are…Turkey seems to be ambivalent on whether to be a bridge of Europe and Asia or being an Asian ... Sometimes they say they are part of Asia. Sometimes they say they are a bridge of Asia to Europe,” he said.
 
ASEAN, which was established in 1967, includes 10 states: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. East Timor and Papua New Guinea have repeatedly sought membership, but they only hold observer status in the organization.
 
The Philippines leader, nicknamed ‘The Punisher’, was voted the most influential person of 2017 by readers of Time magazine in an online poll. Duterte has become notorious for his controversial statements about world leaders and the Church, among others.
 
The hardline Duterte has repeatedly come under fire for his infamous ‘War on Drugs’, which has reportedly resulted in more than 7,000 killings. He was elected partially on a promise to extend countrywide the brutal tactics he had used against drug crime while serving as mayor of Davao for 22 years.
 
In March this year, when the European Parliament passed a resolution concerning his plans to revive the death penalty for drug convicts, Duterte questioned why Brussels “has to f**k with” his country.
 
Also in March, he made clear his distaste for former US President Barack Obama, calling him and his entire administration “idiots.” He is obviously not ‘amused’ by the United Nations either – in December 2016 he simply threatened to burn down its headquarters in New York.
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TS.Munkh-Orgil: Many pressing issues of bikateral ties resolved during PM's visit to China www.en.montsame.mn

 
Beijing /MONTSAME/ Minister of Foreign Affairs Ts.Munkh-Orgil gave an interview to the media about Prime Minister J.Erdenebat’s visit to the People’s Republic of China. The Minister said “- The two countries agreed that the countries have full potential to develop bilateral relations as we have no political argument and no conflict on border issues, which share borderline of 4700 km".
 
"In the beginning of the talks, Chinese President Xi Jinping noted that China has always respected independence and integrity of Mongolia and will respect them in the future. Mongolia and the Mongolian people also have respected Chinese independence and territorial wholeness. Therefore, the parties agreed on mutual understanding to develop bilateral relations on a favorable political basis" the FM said.
 
"Main agenda of the talks were, of course, investment, trade and economic cooperation. Our part put forward a request to support to push forward large-scale projects, which give impulse to economic development. For instance, we focused on projects, such as Tavan Tolgoi project, energy export project to China from energy production based in Shivee-Ovoo deposit, Kherlen River and Gobi projects. Foreign trade is crucial for Mongolia. We face difficulties in cross-border and border region trade and in exports to the third country , passing through Russian and China, as a landlocked country. Issues on environmental protection, Ulaanbaatar air pollution and re-planning of Ger districts were touched upon and the Chinese part expressed its readiness to cooperate to resolve all issues positively".
 
"The Chinese part notified that it adheres to two principles in resolution of trade, economic and investment issues. First, trade and investment should be mutually beneficial. However, Xi Jinpin re-affirmed his statement during his visit to Mongolia in 2014, which noted that the abovementioned cooperation should be more significant and more beneficial to Mongolia. He made it clear that the relationship will develop based on a principle that the interest of Mongolia would be preferred.
 
Moreover, the two countries agreed on principles on technical and economic cooperation development. Three documents were signed regarding education, science and exchange of young scholars. Also, the two sides agreed to make investment for eight companies. Generally, it can be concluded that the visit was very successful.
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Director of UNESCO cluster office in Jakarta attends Mongolian Innovation week www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ Dr. Shahbaz Khan, Director of the UNESCO Cluster Office in Jakarta and Regional Bureau for Science in Asia and the Pacific, attended the Mongolian Innovation Week - 2017 events during his visit to Mongolia between May 9 and 12.
 
Within the framework of the annual Mongolian Innovation Week - 2017 organized by the Mongolian University of Science and Technology (MUST), the National Innovation Forum was held on May 10 and Dr. Shahbaz Khan gave a keynote speech on “Science, Engineering, Technology and Innovation for Sustainable development”. Also, he delivered a presentation on “Role of Science, Technology and Innovation to deliver UN 2030 Agenda for Sustainable Development” at an International conference on Innovation and Entrepreneurship Development on May 11.
 
During his visit, Minister of Education, Culture, Science and Sports J.Batsuuri, Secretary-General of Mongolian National Commission for UNESCO S.Uyanga, Rector of the MUST B.Ochirbat and officials from Mongolian Academy of Sciences and Ministry of Environment and Tourism received Mr. Shahbaz Khan on May 10.
 
The sides exchanged views on further cooperation opportunities in science, technology and innovation sectors and talked about future cooperation. On behalf of UNESCO, Dr. Khan expressed UNESCO’s intention to provide policy support in creating a knowledge-based economy in Mongolia.
 
Prof. Khan was the Chief of Section on Sustainable Water Resources Development and Management at UNESCO, Paris from 2008 to 2012 and the Deputy Director and Senior Program Specialist at the UNESCO Office in Jakarta from 2012 to 2015. Since 2015, he was appointed as the Director of the UNESCO Cluster Office in Jakarta and Regional Bureau for Science in Asia and the Pacific.
 
Previously, the Ministry of Education, Culture, Science and Sports in collaboration with the UNESCO Cluster Office in Beijing and Jakarta, and the Science and Technology Policy Asian Network developed the Science and Technology Master Plan of Mongolia for 2007-2020. In the framework of implementation of the Master plan, UNESCO organized several trainings and events in collaboration with the Ministry of Education, Culture, Science and Sports of Mongolia.
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Russia’s Putin, India’s Modi to attend ‘most intensive’ St. Petersburg International Economic Forum www.rt.com

 
The upcoming 21st International Economic Forum in St. Petersburg, featuring Russian President Vladimir Putin, Indian PM Narendra Modi and Austrian Chancellor Christian Kern, will provide the most intensive program in the event’s history, the organizers said.
The St. Petersburg International Economic Forum (SPIEF) is scheduled to take place June 1-3 in Russia’s second-largest city, often also regarded as the country’s cultural capital.
 
“A plenary session with the participation of Russian President Vladimir Putin, Prime Minister of India Narendra Modi and Federal Chancellor of Austria Christian Kern, set to take place on June 2, will be the central event [of the forum],” said Anton Kobyakov, Russian presidential advisor and executive secretary of the SPIEF organizing committee.
 
Some 39 ministers from 26 countries have confirmed their participation in the forum, with a total estimated number of participants, including businessmen and representatives of various international organizations, exceeding 5,000, he added.
 
International Atomic Energy Agency (IAEA) director general Yukiya Amano, Saudi Energy Minister Khalid Fatih, the heads of 250 foreign companies, including BP, Total and Boeing, are among those expected to arrive in St. Petersburg.
 
More than 70 Russian regional heads and over 700 of the country’s companies have also signed up to discuss key global economic and financial issues with international partners. SPIEF is known to be a major deal-making event, with $17 billion worth of deals not subject to commercial secrecy made in 2016.
 
According to Kobyakov, this year’s SPIEF promises the most intensive program in the forum’s history, with a total of 108 business events planned.
 
“The program for the 2017 Forum reflects current economic trends in Russia and the challenges facing the global economy today. The discussion will focus on the current status of the international economic system and the prospects for its sustainable development, the search for the best paths toward solving pressing problems, and how to make use of emerging opportunities,” he said.
 
Sessions dedicated to the Shanghai Cooperation Organisation (SCO), BRICS, the B20 International Trade and Investment Forum as well as sessions of the Valdai Club are also on the agenda.
 
The SPIEF Investment & Business Expo will showcase Russian and international investment projects during the forum in St. Petersburg.
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Japan to support export of coal, gas power technologies www.asia.nikkei.com

 
TOKYO -- Japan's industry ministry is set to support domestic industry's efforts to export low-emission gas and coal thermal power generation systems to developing countries.
 
The program includes support for Japanese power companies' feasibility studies and technology transfers in Vietnam, Thailand and Indonesia.
 
The aim is to boost exports of Japan's infrastructure technologies by working with private-sector players to find emerging opportunities at an early stage and capture the growing demand in these countries ahead of international rivals.
 
The initiative is in line with the program drawn up in May last year that aims to promote export of infrastructure systems, including highly efficient thermal power systems.
 
It also relates to the Ministry of Economy, Trade and Industry's efforts to draft a policy proposal addressing global warming through support to developing countries.
 
Specifically, the program will support projects involving state-of-the-art gas thermal systems, and gasified-coal equipment using integrated gasification combined cycle or ultra-supercritical technologies.
 
Mitsubishi Heavy Industries, IHI and Hitachi own these technologies.
 
Construction of new power stations, renewal of such facilities, and remodeling of turbines in use, for example, will fall under the scope of the program.
 
The program will invite staff from the three countries' governments and power utilities to undergo training on how to operate and maintain the systems, and dispatch Japanese engineers to provide on-site support.
 
For the year ending March 2019, the ministry plans to budget about 2 billion yen ($17.6 million) for studies of seven or eight projects.
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PM: Mongolia is an important corridor in Belt and Road initiative www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ “Mongolia prioritizes bolstering its friendly relationship and cooperation with China and Russia”, remarked Prime Minister J.Erdenebat during his speech at the Leaders’ Roundtable Summit at the Belt and Road Summit for International Cooperation which took place on May 14-15 in Chinese capital Beijing, gathering leaders of 28 nations.
 
In his speech themed ‘Policy Coordination for Close Partnership’, the Prime Minister touched upon Mongolia’s initiative to forge a trilateral mechanism with its neighbors which is working successfully, and expressed his delight at Mongolia being an important participant in the Belt and Road initiative.
 
He continued to talk about the signing of Mongolia-China-Russia Economic Corridor Program in 2016 saying, “We are working actively towards solving the funds for and realizing the 32 projects reflected in the program”.
 
“I would like to emphasize on the role of leading nations around the world in establishing the economic corridor between Mongolia, China and Russia which will contribute greatly to regional and global development”, he said.
 
 
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Inflation rate stands at 3.4 percent www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ The National Statistics Office presented yesterday, May 15, Mongolia’s social and economic indicators as of the end of the fourth month of 2017. The economic highlights were the 1.3 increase in inflation, MNT 285.5 billion of budget deficit, MNT 747 billion of non-performing loans.
 
Inflation went up by 4.8 percent in the first four months of this year, in specific, by 1.3 percent in April compared to the previous month and 3.4 percent against the same period of last year.
 
The 1.3 percent increase was mainly formed by 7.6 percent increase in meat and meat products’ prices, 3.0 percent increase in prices of beverages, mineral water and other food products, 2.9 percent increase in transports.
 
The annual 3.4 percent increase was mostly contributed by 7.7 percent increase in prices of transports, 2.7 percent increase in foods and beverages, especially, the 12.8 percent increase in prices of dairy products and eggs, as well as 2.3 percent increase in clothing and shoes.
 
The gross domestic products reached MNT 3,063.9 billion in the first quarter, indicating increase of MNT 122.7 billion or 4.2 percent compared to the same period of last year.
 
The government budget’s equilibrated balance saw deficit of MNT 285.5 billion. This shows decrease of MNT 378.1 billion in the budget deficit compared to that of the same period of the previous year.
 
In the first four months of 2017, equilibrated revenue and amount of financial assistance reached MNT 2,094.4 billion, and expenditure and outstanding loan reached MNT 2,379.8 billion.
 
Whereas exports increased by USD 552.3 million or 41.0 percent, imports increased by MNT 254.9 million or 29.6 percent against the same period of 2016.
 
Amount of non-performing loans in the banking system reached MNT 1,087.3 billion as of the end of April, 2017. This represents increase of MNT 13.4 billion against the same period of 2016, and of MNT 51.8 billion compared to the previous year.
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