1 CONSTRUCTION OF TAVANTOLGOI-GASHUUNSUKHAIT ROAD TO BE INTENSIFIED WWW.MONTSAME.MN PUBLISHED:2019/02/20      2 OVER 30 MEASURES PLANNED FOR REDUCTION OF ENVIRONMENTAL POLLUTION WWW.MONTSAME.MN PUBLISHED:2019/02/20      3 MONGOLIA SAYS IT EARNS OVER 169 MLN USD FROM COAL EXPORTS TO CHINA IN JAN WWW.HELLENICSHIPPINGNEWS.COM  PUBLISHED:2019/02/20      4 RUSSIA’S GAZPROM TO START CHINA GAS PIPELINE BY DECEMBER 1 WWW.RT.COM PUBLISHED:2019/02/20      5 MONGOLIA'S FOREIGN TRADE UP 41.6 PCT IN JAN. WWW.XINHUANET.COM PUBLISHED:2019/02/20      6 EIGHT COMPANIES ANNOUNCE TO DISBURSE DIVIDENDS SO FAR WWW.ZGM.MN PUBLISHED:2019/02/20      7 MONGOLIA'S PROSTITUTION ZONES, WHERE WOMEN TRADE SEX FOR FUEL IN SUB-ZERO TEMPERATURES WWW.TELEGRAPH.CO.UK PUBLISHED:2019/02/20      8 MONGOLIA TO SUSPEND KFC OUTLETS FOR INQUIRY AFTER FOOD POISONING REPORTS WWW.CNBC.COM PUBLISHED:2019/02/20      9 MIAT TO FLY BETWEEN ULAANBAATAR AND GUANGZHOU WWW.NEWS.MN PUBLISHED:2019/02/20      10 NEW BOOK ABOUT MONGOL EMPIRE’S IMPACT ON ISLAM WWW.NEWS.MN PUBLISHED:2019/02/20      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     II/19-НИЙ ДОТОР 24 ХК НОГДОЛ АШИГ ОЛГОХТОЙ ХОЛБООТОЙ ШИЙДВЭРЭЭ ГАРГАЖ , СЗХ-НД ХҮРГҮҮЛСЭН БАЙНА WWWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/20     ӨНГӨРСӨН САРД 23.9 МЯНГАН ЖУУЛЧИН ХҮЛЭЭН АВЧЭЭ WWW.EAGLE.MN  НИЙТЭЛСЭН:2019/02/20     ЭРЧИМ ХҮЧНИЙ ИМПОРТ БУУРЧЭЭ WWW.EAGLE.MN  НИЙТЭЛСЭН:2019/02/20     ТАТВАР ТӨЛДӨГ 191 МЯНГАН ААН-Н 95.9 ХУВЬ НЬ БИЧИЛ БИЗНЕС ЭРХЭЛДЭГ WWW.EAGLE.MN  НИЙТЭЛСЭН:2019/02/20     НИЙТ НУТГИЙН 70 ОРЧИМ ХУВЬ НЬ ЦАСТАЙ БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2019/02/20     ХАНБОГД-ОЮУТОЛГОЙГ ХОЛБОСОН ЗАМЫН НЭЭЛТ БОЛЛОО WWW.GOGO.MN НИЙТЭЛСЭН:2019/02/20     ЗГҮЦ-ЫН АНХДАГЧ ЗАХ ЗЭЭЛИЙН АРИЛЖАА МХБ-ИЙН ҮЙЛ АЖИЛЛАГААНЫ ОРЛОГО БУУРЧЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/19     “TEMASEK HOLDINGS” КОМПАНИ “TRQ” ДЭХ ЭЗЭМШЛИЙН ХУВИА 28 ХУВИАР БУУРУУЛАВ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/19    

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

64x64

Yuhan-Kimberly assists reforestation in Mongolia www.koreaherald.com

Yuhan-Kimberly, a South Korean manufacturer of sanitary products, said it was joining forces with the Mongolian government to restore a forest and open an observatory tower there.

According to the company, the work to restore deforested areas of Mongolia’s Tujin Nars forest began in 2003. The forest had sustained severe damage after two fires before the local government formally asked Yuhan-Kimberly to take part in the project in 2001.

Since that time, over 10 million trees have been planted.

The company said the project would not only prevent desertification in Mongolia but would also reduce the amount of fine dust blowing toward the Korean Peninsula.

Yuhan-Kimberly is leading environmental conservation efforts in and outside of Korea through its corporate social responsibility program.

Since 1998, the company has planted trees in government-owned forests, also offering opportunities for people to participate in various environmental activities by working closely with domestic and foreign forest-conservation organizations.

The company has been planting trees in Korea’s metropolitan areas since 2005, including Seoul Forest in Seongdong-gu, and has helped create 12 small forests in residential areas across the country.

Last year, the company opened a forest-cultivation center in Hwacheon, Gangwon Province. The center can produce 45 million seedlings per year, which will facilitate reforestation on the Korean Peninsula, Yuhan-Kimberly said.

...


64x64

IMF suggests tighter monetary conditions www.zgm.mn

An International Monetary fund (IMf) staff team led by Geoff Gottlieb has visited Ulaanbaatar to conduct discussions on the sixth review of the three-year extended fund facility (eff) arrangement. The team highlighted the widening current account deficit and suggested the central bank to rein in high credit growth.“As we reach the mid-way point of the IMfsupported program, significant progress has been made by the authorities in overcoming the economic crisis. Growth has revived to over 6 percent, the overall fiscal balance has swung from a large deficit to a small surplus, and government debt has fallen sharply. While the external environment has been supportive with buoyant export demand, the recovery has become broader based with consumption and investment rising sharply.

Inappropriate levels of international reserves and bank capital remain key vulnerabilities
Against this backdrop, the authorities are on track to meet all end-December macroeconomic targets, including the fiscal deficit and net international reserves,” Mr.Gottlieb mentioned at the end of the mission. However, he explained that this recovery brings new challenges as stronger domestic demand conditions are widening the current account deficit, halting reserve accumulation. “In response, the Bank of Mongolia should rein in high credit growth through tighter monetary conditions and the introduction of well-targeted macro-prudential measures,” suggested Mr. Gottlieb In the financial sector, the follow-up to the asset Quality Review that was completed in 2017 is entering its final phase. The team warned that the undercapitalized 
banks have until end-December to raise the necessary new capital and failure to do so will face central Bank intervention or be resolved as per the Banking law. Additionally, Mr. Gottlieb recommended the authorities to commit to strengthening the business and investment climate.

...


64x64

Mongolia: small embassies can have a big impact www.blogs.fco.gov.uk

By:Catherine Arnold Former British Ambassador to Mongolia
Part of BBC Inside the Foreign Office 2018 UK in Mongolia

Mongolia is everything you expect. Mongolia is also everything you don’t expect. At least that’s what I found as the UK’s Ambassador. The world’s least densely populated country, which was once one of the largest empires in world history, it is a land of immense beauty and rich history.

Mongolia is also a vibrant 21st century democracy. Many issues that matter to Mongolia, matter to us – media freedom, climate change, global peacekeeping. And, it’s quite literally sitting on a gold mine. Home to over 6000 deposits of more than 80 different minerals, Mongolia has the potential to be the richest country per capita in the world.

That means the small, motivated embassy of three UK diplomats and our excellent Mongolian team, covers a huge range of work.

The UK and Mongolia have recently celebrated 55 years of diplomatic relations and, as Mongolia’s second largest trading partner, our trading relationship matters for both countries. To celebrate the 55th anniversary, we announced:

the appointment of Julian Knight MP as the Prime Minister’s Trade Envoy to Mongolia;
that UK Export Finance will increase how much it lends to support suppliers and buyers of UK exports to Mongolia.
Having fretted about meeting our export targets the excellent Department of International Trade team exceeded them.

Cambridge Mask Company’s initial consignment of pollution masks sold out within 24 hrs of the fashion show they were launched at, developing into a thriving collaboration with a Mongolian pharmacy chain.

The mask fashion show also means more people have started to wear effective masks – of whatever brand. The embassy has since taken this to the next level, focussing on supporting the poorer parts of Ulaanbaatar, where pollution levels often go off the international air-quality scale.

This is typical of our work in Mongolia – supporting UK trade is of course an essential part of what diplomats do around the world but the relationship between our two countries is about so much more than that.

We work with Mongolia in the UN Human Rights Council, Mongolian troops joined coalitions with ours in Kosovo, Iraq and Afghanistan, and Mongolian peacekeepers are currently working across Africa. UK expertise is supporting education reform and a UK funded mobile app and training for border guards is helping to counter the illegal wildlife trade (IWT) here.

The last had swift, positive results, including a 25-fold increase in detection of smuggled, endangered wolf-parts. The Mongolian Foreign Minister spoke powerfully about this at the recent major international conference on IWT, in London.

It’s true that supporting UK trade is important work for diplomats around the world and small embassies can have a big impact. The British Embassy Ulaanbaatar has helped UK companies in Mongolia to secure exports worth many times the total running and staff costs of our embassy.

But diplomacy works best when trade is one of many links between the UK and the countries we work in. A key task for diplomats is to fit together the people and pieces to make the UK’s presence overseas much more than the sum of its separate parts.

...


64x64

Mongolia's economy to maintain positive growth next year www.xinhuanet.com

ULAN BATOR, Nov. 22 (Xinhua) -- Mongolia's economic growth has been recovering rapidly thanks to the recovery of commodity prices in the global market and the International Monetary Fund (IMF)'s economic bail-out program for the country, a Mongolian economic researcher said.

"Mongolia's main economic performance has been improving thanks to the combination of recovery of commodity prices in global market and the three-year Extended Fund Facility of the IMF approved in 2017," Jamsrandorj Delgersaikhan, associate professor with the University of Finance and Economics of Mongolia, told Xinhua in a recent interview.

"A recent report released by the National Statistics Office showed that Mongolia's GDP expanded 6.4 percent year on year in the third quarter of this year to 12.8 trillion Mongolian tugriks (about 5 billion U.S. dollars). This is a clear proof of the rapid economic growth," Delgersaikhan said, while expressing his optimism about the country's economic development next year.

"Commodity prices in the global market are expected to remain higher next year. This will give a further boost to Mongolia's economic growth," Delgersaikhan said.

The landlocked country's economy is heavily dependent on commodity exports.

However, domestic political conflict may cause risks to the economic growth, the researcher added.

"For any country, political stability is the basis of socio-economic development. Thus, our authorities should firstly create a stable political environment in order to promote economic growth, diversify the mining-dependent economy and reduce external risks to the economy," Delgersaikhan said.

...


64x64

Russian Foundation for Basic Research to partner in research field www.montsame.mn

Ulaanbaatar /MONTSAME/. In the frameworks of her official visit to the Russian Federation, Minister of Education, Culture, Science and Culture Ts.Tsogzolmaa held a meeting with the President of the Russian Foundation for Basic Research V.Ya.Panchenko.

During the 11 years that the foundation has worked in partnership with the Ministry and the Mongolian Academy of Sciences (MAS), 18 basic research works, 26 recommendations, 20 new and renewed research, 1,073 research articles and 679 presentations were done in scientific conferences.

The two sides came to the agreement to further develop joint research projects from 2019. With this, for instance, the funding for one project would be increased to RUB 1 million, alongside the duration of research being extended to 3 years, which will improve research results.

Large scale events are also to be organized in the coming year in partnership with the Ministry and MAS, which includes: a jointly seminar for Mongolian scholars and researchers on how a joint research project can be done by acquiring funds from the Russian Foundation for Basic Research as well as an international conference on the research on Lake Baikal and Lake Khuvsgul.

...


64x64

Three financial instruments to launch in capital market www.zgm.mn

Minj Property LLC, which is organizing its roadshow for a bond offering today, is planning on becoming a publicly traded firm. Along with the company, Ard Credit and Tumen Shuvuut have announced potential IPOs in upcoming months. Minj Property LLC is a construction firm that has implemented Park Town-1 project for 620 households in Darkhan-Uul aimag. A study that involved 600 households in need of accommodation in Darkhan city shows that 22 percent of surveyee are planning on purchasing new housing in the short-term. Because of the fact that 91 percent of accommodation in the city were constructed in 1990s, the demand for new housing stands high in Darkhan city. The province has over 100,000 population, of which working-age population account for 64 percent.

Thus, Mongolian Securities Exchange informs that these will act as guarantees for Park Town-2 project. The next financial instrument in the capital market is expected to be Ard Credit non-banking financial institution (NBFI). The company announced that they plan on raising MNT 5 billion from the stock market and have submitted necessary documents to the Financial Regulatory Commission (FRC) for approval. Simultaneously with Ard Credit, Tumen Shuvuut LLC notified the FRC for an IPO. The company, which runs a poultry farm, intends to raise MNT 10 billion within this year. This agribusiness with over 300,000 chickens annually supplies 60 million eggs to the domestic market and helps reduce import eggs to 40 percent, accounting for 30 percent of egg production and 20 percent of total egg market in Mongolia. Funding its operation from own assets and bank loans since the beginning, the company grew by 12 times since establishment.

Potential IPOs of Minj Property, Ard Credit and Tumen Shuvuut expected
Overall, five companies have offered 230 million units of shares and raised MNT 26.73 billion from IPOs this year. According to the FRC, a total of 304 publicly traded companies are operating nationwide. Analysts expect growing trend of entities going public, giving more options for investors in the domestic capital market. As for securities market, market capitalization grew 12.8 percent to MNT 2.35 trillion, which is 8.4 percent of 2017 year-end GDP as of the third quarter of this year.

...


64x64

IMF Reaches Staff-Level Agreement on the Sixth Review of Mongolia's Extended Fund Facility www.imf.org

Growth remains strong, led initially by buoyant external conditions and increasingly by a recovery in domestic demand. The fiscal deficit is improving much faster than expected, allowing government debt to fall sharply. The authorities are on track to meet all macroeconomic targets for end-year.
Two important vulnerabilities are that international reserves and bank capital are still not at appropriate levels. Macro-economic policies should be used to dampen high credit growth and help build external buffers. Meanwhile, it is crucial that banks complete the recapitalization efforts started in 2017.
For 2019, program goals are to continue reducing public debt, resume international reserve accumulation, and ensure the banking system is well-capitalized. In addition, it is critical that the authorities strengthen the investment climate to attract the foreign capital necessary for Mongolia’s long-term growth.
An International Monetary Fund (IMF) staff team led by Mr. Geoff Gottlieb visited Ulaanbaatar from November 7-17, 2018 to conduct discussions on the sixth review of the three-year Extended Fund Facility (EFF) arrangement approved on May 24, 2017, in an amount equivalent to SDR314.5054 million, or about US$434.3 million (see Press Release No. 17/193 ).

At the conclusion of the visit, Mr. Gottlieb made the following statement:

“As we reach the mid-way point of the IMF supported program, significant progress has been made by the authorities in overcoming the economic crisis. Growth has revived to over 6 percent, the overall fiscal balance has swung from a large deficit to a small surplus, and government debt has fallen sharply. While the external environment has been supportive with buoyant export demand, the recovery has become broader based with consumption and investment rising sharply. Against this backdrop, the authorities are on track to meet all end-December macroeconomic targets, including the fiscal deficit and net international reserves.

“While welcome, this recovery brings new challenges. Stronger domestic demand conditions are widening the current account deficit, halting reserve accumulation. In response, the Bank of Mongolia should rein in high credit growth through tighter monetary conditions and the introduction of well-targeted macro-prudential measures.

“In the financial sector, the follow-up to the Asset Quality Review that was completed in 2017 is entering its final phase. Those banks that were found to be undercapitalized have until end-December to raise the necessary new capital. Banks that fail to do so will face Central Bank intervention or be resolved as per the Banking Law.

“The authorities are also moving ahead with reforms that will allow for more rapid resolution of non-performing loans, strengthen their Anti Money Laundering framework, and improve the selection and appraisal of public investment projects. Given the importance of attracting more foreign capital, the authorities should also commit to strengthening the business and investment climate.

“The authorities and the IMF team have reached staff-level agreement on the economic policies for completion of the sixth review under the EFF arrangement, which is subject to the approval of the IMF Executive Board. The authorities have committed to several actions, mainly in the financial sector, that will be completed before the Executive Board meeting.”

The team thanks the authorities for their cooperation, constructive dialogue, and hospitality during its stay in Mongolia.

IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: TING YAN

PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG

...


64x64

Kincora Copper says geophysical surveys in Mongolia support multiple drill targets www.proactiveinvestors.co.uk

Mongolia-focused miner Kincora Copper Ltd (CVE:KCC, OTCMKTS:BZDLF) said Wednesday that geophysical surveys at the East Tsagaan Suvarga and Bronze Fox projects in Mongolia were completed on time and under budget.

The results supported multiple drill targets, Vancouver-based Kincora said in a press release, adding that a preferred drill contractor has been selected. Final modeling is expected in upcoming weeks.

The surveys were carried out by SJ Geophysics Ltd, based in Delta, British Columbia.

"Significant progress has been made at Bronze Fox,” Peter Leaman, senior vice president of exploration, said in a statement. "Preliminary results of the SJ geophysical survey at East Tsagaan Suvarga have provided significant encouragement.”

In the past 12 months, Kincora has reviewed more than 300 projects, according to the company.

Shares of Kincora slipped C$0.02 to C$0.14 in Canadian trading on Wednesday.

...


64x64

Meetings with Chiefs of INTERPOL National Central Bureaus for Russia and China www.montsame.mn

Ulaanbaatar /MONTSAME/ The 87th International Criminal Police Organisation (Interpol) General Assembly ran for the third day yesterday, November 21, discussing about enrollment of new member countries.

On the sidelines of the assembly, Mongolian delegation led by Commissioner-General of the National Police Agency S,Baatarjav held meetings with Interpol’s Vice Chair for Europe and Chief of Russian Interior Ministry’s National Central Bureau of Interpol Alexander Prokopchuk and Head of the INTERPOL National Central Bureau for China and Vice Minister of the International Police Cooperation Department of China's Ministry of Public Security Duan Dachi.

During the meeting, they exchanged opinions on widening cooperation between the National Central Bureaus, promptly exchanging information on crime, educating and specializing officers in human trafficking and drug related crimes as well as receiving technical support within the cooperation between the national police agencies of the two countries and a project by INTERPOL.

...


64x64

Experts warn of potential obstruction in next year’s coal export plan www.zgm.mn

According to Bayan Zam Transporters Association, over 7000 trucks are stuck in line at the main coal export route Gashuunsukhait-Gantsmod border checkpoint. Therefore, a working group from the Ministry of Road and Transport Development and National Center for Auto Transit has been deployed at Gashuunsukhait in Umnugobi aimag to resolve the issue. The working group has reportedly sent unloaded vehicles to Oyu Tolgoi route. Specifically, they are sending the trucks heading to Tsagaan Khad customs inspection zone in two lanes by temporarily halting movement of the opposite direction. Officials highlighted that this will prevent long queues and potential accidents in the long queue of trucks driving in wrong-lane. Although 77 trucks entered the border on Monday, which doubles the amount of previous day, the association highlighted that the entry capacity needs to be increased to 1000 trucks per day, which was the average capacity in October; however, the number drastically dropped to 400 in November and on November 16, only 30 trucks were able to enter the border. Economist Naranbaatar Lundeg remarked, “Chinese side decided to cease all types of coal import. China explained that this year’s import plan has been fulfilled around 40 days prior to the end of year as this year’s amount was set lower than 2017. So this unpredictable situation might continue until February of next year. Sarah Liu, Vice President of Fenwei Energy Information Services, mentioned about this situation during an international conference of coal in Beijing. Also researchers from different countries warned about this near the end of the year at Coal Mongolia 2018 conference, yet our Government ignored it.

Working group temporarily suspends coal loading at Tavantolgoi residual deposits
Now the problem is upon us. Coal mines will have to cut mining and transportation now. If we load 12 thousand trucks, the truck drivers might have to stay on road until the next Lunar New Year. In the first 10 months of this year, coal export accounted for 41 percent of total export. A total of 31.3 million tons of coal exported worth USD 2.4 billion were exported during this period, of which Erdenes Tavan Tolgoi JSC made up one third of this amount. The Government plans to export 42 million tons of coal next year; however, experts are warning that the amount may be unachievable due to China’s limit on coal imports. Additionally, the working group reported that they have temporarily suspended coal loading at Tavantolgoi residual deposits.

...