1 ERDENES TAVAN TOLGOI REVENUE SURGES DUE TO HIGHER COAL PRICES WWW.NEWS.MN PUBLISHED:2018/09/20      2 RUSSIA AND MONGOLIAN BORDER CROSSING NO. 487 WWW.NEWS.MN PUBLISHED:2018/09/20      3 WORLD ECONOMICS REPORTS THAT MONGOLIA’S EMPLOYMENT RATE HITS A FIVE-YEAR HIGH WWW.GOGO.MN PUBLISHED:2018/09/20      4 USD HITS RECORD HIGH IN MONGOLIA DUE TO HIGHER IMPORTS WWW.CHINA.ORG.CN PUBLISHED:2018/09/20      5 READOUT OF VICE PRESIDENT MIKE PENCE’S MEETING WITH PRIME MINISTER UKHNAA KHURELSUKH OF MONGOLIA WWW.WHITEHOUSE.GOV PUBLISHED:2018/09/20      6 MONGOLIA LAUNCHES EU-FUNDED PROJECTS TO PROMOTE GREEN DEVELOPMENT, ENVIRONMENTAL PROTECTION WWW.XINHUANET.COM PUBLISHED:2018/09/20      7 COAL EXPORTS FROM TOP SHIPPER HOBBLED WITH MINERS FACING CONSTRAINTS WWW.MINING.COM PUBLISHED:2018/09/20      8 FRONTIER'S "INVEST MONGOLIA TOKYO 2018" WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/09/19      9 U.S.-CHINA TRADE TUSSLE IS CREATING WINNERS IN SOUTHEAST ASIA WWW.BLOOMBERG.COM PUBLISHED:2018/09/19      10 YUSAKU MAEZAWA: THE JAPANESE BILLIONAIRE WHO WANTS TO FLY TO THE MOON WWW.BBC.COM PUBLISHED:2018/09/19      ШЕНГЕНИЙ БОГИНО ХУГАЦААНЫ ВИЗИЙН МЭДҮҮЛГИЙГ УЛААНБААТАР ХОТОД АВНА WWW.MEDEE.MN НИЙТЭЛСЭН:2018/09/19     2018 ЭХНИЙ 7 САРД МОНГОЛЧУУД ГАДААД РУУ ЭМЧИЛГЭЭНД ЯВАХДАА 19.5 САЯ АМ.ДОЛЛАР ЗАРЦУУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ӨНӨӨДӨР ТӨВ ТАЛБАЙД 4000 АЖЛЫН БАЙРАНД БҮРТГЭНЭ WWW.DNN.MN НИЙТЭЛСЭН:2018/09/19     ЗАЛУУЧУУДЫН ГАРААНЫ БИЗНЕСИЙН ШАЛГАРСАН ТӨСӨЛД 10,0 САЯ ТӨГРӨГИЙН ДЭМЖЛЭГ ҮЗҮҮЛЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/19     WORLD ECONOMICS: МОНГОЛЫН АЖИЛ ЭРХЛЭЛТИЙН ТҮВШИН СҮҮЛИЙН 5 ЖИЛИЙН ДЭЭД ТҮВШИНД ХҮРЛЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ERD: "ХӨНДИЙ" АЛТНЫ ТӨСЛИЙН ТОГТООГДСОН НӨӨЦ 751 МЯНГАН УНЦ АЛТ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ХЯТАДЫН $200 ТЭРБУМЫН ИМПОРТОД ТАРИФ ТОГТООВ WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/19     ШИВЭЭХҮРЭН БООМТООР ХОНОГТ 60-80 МЯНГАН ТОНН НҮҮРС ЭКСПОРТОЛЖ БАЙНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/09/19     БНХАУ-ЫН 200 ТЭРБУМ АМ.ДОЛЛАРЫН ИМПОРТОД 10 ХУВИЙН ТАРИФ НОГДУУЛАХ ШИЙДВЭР ИРЭХ 7 ХОНОГООС ХЭРЭГЖИНЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/18     ӨВӨЛ ЦАХИЛГААН СААТВАЛ ХОТ ДӨРВӨН ЦАГИЙН ДОТОР Л ХӨЛДӨНӨ WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/18    

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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Endeavour to buy Mexican exploration properties from Silver Standard www. mining.com

Canadian Endeavour Silver, a mid-tier precious company with long-standing operations in Mexico, has entered into a definitive agreement with fellow Canadian Silver Standard Resources to acquire a 100% interest in the latter’s Parral properties.
 
The properties, which total 3,432 hectares subject to 1% NST production royalties, are located in the southern Chihuahua state, specifically in the silver mining district of Hidalgo de Parral. According to the Mexican Geological Survey, historic production in this area is of approximately 250 million ounces of silver.
 
The Vancouver-based firm said it will pay US$6 million in common shares, being 1,198,083 common shares at US$5.008 per share, representing the 10-day average closing price of Endeavour's shares on the New York Stock Exchange prior to the date of the Agreement.
 
The company has also committed to spending US$2 million on exploration on the San Patricio and La Palmilla properties over the two-year period following the closing of the transaction. Palmilla was famous for supplying silver to the federal mint of Mexico in the late 1800's.
 
Veta Colorada, the third property being acquired, includes a higher-grade footwall vein 1-10 metres thick and a lower grade hanging wall breccia with stock-work up to 30 metres thick. The Industrial Minera Mexico estimated that there are also resources of 32.1 million ounces silver contained in 4.0 million tonnes grading 248.5 grammes per tonne.
 
Upon completing this exploration expenditure, Endeavour will have one year to deliver a National Instrument 43-101 technical report, including a resource estimate, and issue an additional US$200,000 in common shares to Silver Standard for each one million ounces of silver delineated in measured and indicated resources on the San Patricio and La Palmilla properties.
 
Silver Standard will also retain a 1% net smelter returns royalty on production from the San Patricio and La Palmilla properties.
 
"Through this transaction, we retain exposure to the success of the properties and, importantly, we are enabled to redirect capital elsewhere in our portfolio to continue generating value for our shareholders,” Silver Standard’s President and CEO Paul Benson said.
 
On the other hand, Endeavour's Vice President Corporate Development Dale Mah said that his team is looking forward to unfolding the full potential of the Parral properties. "Our exploration team will focus initially on verifying the historic resources, then turn its attention to the many exploration targets on the properties. At the same time, our operations group will evaluate opportunities for near-term production,” he wrote in a statement.
 
The Canadian miner latest move comes after having announced, in January of 2016, that it was cutting back its yearly production by more than 25% and putting its El Cubo mine, located in the central Mexican state of León, in care and maintenance due to low silver prices.
 
But ever since silver and gold have enjoyed a powerful rally, with the grey precious metal even outpacing bullion gains.
 
 
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Aeroflot Privatization Delayed to 2020 www.themoscowtimes.com

Russia's flagship national airline, Aeroflot, will be excluded from the government's privatization plans until at least 2020.

“The company should remain under the state's supervision,” said Oksana Tarasenko, the Economic Development Ministry's director of Corporate Governance, in an interview with Bloomberg published on Wednesday.

The Russian government currently holds a 51.17 percent share in the company.

The Ministry of Transport has repeatedly discouraged plans to sell an additional 25 percent of the state's share in Aeroflot, citing significant risks to the commercial airline industry. Some officials claim that without government support, the company could go the way of Transaero: a large Russian private airline that declared bankruptcy last year.

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President of Mongolia is to pay an official visit to the Republic of Cuba www.gogo.mn

President of Mongolia is to pay an official visit to the Republic of Cuba on September 15-18 and is to attend the 71st session of the United Nations General Assembly in New York on September 19-24.
President Ts.Elbegdorj is to give a speech, expressing Mongolia’s position on the global issues. He will be visiting Philadelphia, USA, on September 23.

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European Commission plans free wi-fi in public spaces www.bbc.com

The European Commission wants free wi-fi to be provided in public spaces across its member states within four years.
The goal was announced by the president of the European Union's executive body, Jean-Claude Juncker, in his annual state of the union address.
He also wants at least one city in each EU country to have deployed a 5G mobile network by 2020.
However, one expert cast doubt over whether the public would benefit.
European officials have struggled to deliver an earlier promise to abolish mobile roaming fees.

Mr Juncker said digital technologies were "permeating every aspect of life", so everyone should be able to get online.
"Everyone benefiting from connectivity means that it should not matter where you live or how much you earn," he said.
"So, we propose today to equip every European village and every city with free wireless internet access around the main centres of public life by 2020."
A factsheet for his Wifi4EU plan states that it applies to parks, squares, libraries and public buildings.
However, it makes clear that the commission plans to spend a maximum of €120m (£102m) to install the necessary equipment, and that local bodies will have to cover subscription costs, maintenance and other expenses.
Mark Newman, chief analyst at the telecoms consultancy ConnectivityX, said: "€120m doesn't sound like a huge amount of investment.
"In many towns and cities, people can already find free wi-fi on the High Street.
"I would question whether frugal councils will really see it as a priority to deliver free wi-fi in all their buildings and squares."
Mr Newman said the 5G pledge was also less impressive than it sounded.
"The 5G standard itself won't be ready until 2018," he said.
"And I can't see any spectrum licences being allocated until the next year or the one after that.
"So, the only deployment in 2020 would be in highly targeted areas - something like a shopping precinct or Trafalgar Square.

Additional goals set for 2025 included:
minimum download speed of 100Mbps for all European households
minimum download and upload speeds of 1GBps for all hospitals, administrations and other public services reliant on digital technologies
uninterrupted 5G access for all major roads and railways
The EU's digital economy commissioner backed his president, suggesting the targets would help focus minds.
"Europe has the ambition to lead on the deployment of 5G," said Gunther Oettinger.
"It is time to move to a gigabit society and make sure all Europeans, whether in the countryside or the cities, can get access to a quality internet connection."
Roaming row
The European Commission has faced criticism of its handling of a promise to stop its citizens being charged roaming fees when using their handsets in a different European country to their own.
The executive first proposed the idea in 2013.

Its intention was to prevent people living in one country buying a plan from another to cover their day-to-day use.
But the move caused a backlash, and last week Mr Juncker called for the scheme to be rethought.
"The draft was not technically wrong," Mr Juncker said in his state of the union address.
"But it missed the point of what was promised.
"And you will see a new, better draft as of next week.
"When you roam, it should be like at home."

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Global upstream oil and gas spending to fall 24% in 2016 -- IEA www.asia.nikkei.com

LONDON (Reuters) -- Global upstream oil and gas investments are expected to plummet 24 percent this year, with little signs of improvement for 2017, the International Energy Agency (IEA) said on Wednesday.
 
This year's dip will come on top of a 25 percent drop in spending in the sector recorded in 2015 with its total of $583 billion, the IEA said in a report.
 
"The total fall exceeds $300 billion over the two years - an unprecedented occurrence," the report said, adding two consecutive years of reduced upstream oil and gas investment had not been seen for 40 years.
 
"Furthermore, there are no signs that companies plan to increase their upstream capital spending in 2017," it said.
 
A total of $900 billion was invested in oil, gas and coal in 2015, down 18 percent on 2014.
 
Total global investment in all forms of energy fell 8 percent to $1.8 trillion last year, the report said.
 
The largest drop in investment came in the North American upstream oil and gas sector, which also helped China to take top spot for total energy investment after three previous years of dominance by the United States.
 
Oil prices have halved over the past two years due to a glut of production while global gas prices have made a similar retreat.
 
The IEA said shrinking investment could help the markets to rebalance.
 
"At its current level, investment may be insufficient to maintain oil and gas production, indicating tighter markets ahead  Oil markets are likely to rebalance before gas markets, with low-carbon investment putting a lid on gas demand," the report said.
 
Investment in low-carbon renewable energy reached $315 billion in 2015, making up 17 percent of the total.
 
Over 90 percent of the renewable investment went to power generation technologies, with the rest going to solar, thermal heating installations and biofuels for transport, the report said.
 
Last year, more than 190 countries agreed at climate talks in Paris to curb greenhouse gas emissions to help limit increases in global temperatures to well below 2 degrees.
 
Despite the rise in renewable investment the report said the current pace of decarbonisation of power generation remains insufficient to meet the Paris goal.
 
Investment in energy efficiency projects, such as insulation in buildings, rose to around $220 billion, up 6 percent on 2014 and making up 12 percent of the total energy investments.
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Russia prepares for gas divorce from Europe www.rt.com

Political tension with Europe and the increasing role of liquefied natural gas (LNG) has the world’s biggest supplier looking to increase exports to the Asia-Pacific region, according to Russia’s Federal Subsoil Resources Management Agency.
 
"The crisis in relations between Russia and the West has already led to a reduction in Russian gas exports to the EU and Ukraine...Lower demand for pipeline gas deliveries from Russia's Western partners is not a local problem, but a long-term trend that will have a direct impact on Russia’s raw material and trade policies in the coming decades," said the agency in its outlook for the country’s mineral reserves development until 2030.
 
One of the key problems for Russia is LNG getting a bigger share on the European market.
 
"The significant reduction in the cost of liquefaction of natural gas destroys the monopoly of pipeline systems in transporting gas to consumers. As a result, instead of several regional markets with specific conditions and prices there is now a single global market for natural gas,” the document says.
 
According to the outlook, the problem should be solved by an 800-900 percent increase of gas exports to the Asia-Pacific region. To do this, Russia should increase annual natural gas production to at least 800 billion cubic meters per year.
 
Some analysts have warned that Asia-Pacific nations have long-term gas delivery contracts, forcing most of the LNG glut to head to Europe.
 
Gazprom is more optimistic about pipeline gas supplies in the future, saying that European gas demand could grow by 150 billion cubic meters per year by 2035.
 
Company CEO Aleksey Miller said European facilities for LNG gas reconstitution are running at about quarter capacity, while the Nord Stream pipeline delivering Russian gas through the Baltic Sea to the region saw a load increase despite limitations from regulators.
 
In August, China’s CNPC said Beijing may increase imports of gas from the current 53 billion cubic meters per year to 190-270 billion by 2030. Russia intends to deliver 38 billion cubic meters of gas to China annually through the Power of Siberia pipeline, and is in talks with Beijing to build the Power of Siberia-2 for an additional 30 billion cubic meters of gas.
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Renesas to buy Intersil for $3.2 bil. www3.nhk.or.jp

A leading Japanese chipmaker, Renesas Electronics, says it will take over smaller US semiconductor maker Intersil for 3.2 billion dollars.
 
Renesas announced the deal with the California-based manufacturer on Tuesday, saying it expects to complete the purchase by next June.
 
Intersil produces chips that process inputs such as temperature and sound data into digital signals. It also makes semiconductors used to manage motors and electricity.
 
These products are expected to play key roles in self-driving vehicles, an area in which Renesas hopes to boost its business.
 
Company officials also say they hope to increase sales in China using Intersil's sales network.
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Bank of England to buy Apple bonds www.bbc.com

The Bank of England has included Apple on a list of companies that qualify for its new economic stimulus bond-buying scheme.

This means the central bank views the company as making a "material contribution" to the British economy.
The decision will anger the Silicon Valley giant's critics, who accuse it of avoiding tax on UK sales by routing them via Ireland.
The European Commission has attacked Ireland's tax arrangements with Apple.
It said they allowed the iPhone maker to pay almost no tax on international sales, which amounted to illegal state aid.
Bond programme
On Monday, Apple was put on a list of 100 companies that will qualify for the Bank of England's new corporate debt purchase initiative.
Introduced as a stimulus measure after the Brexit vote, the scheme will see the Bank enter the market for company bonds - tradeable IOUs - for the first time. The Bank says it will buy the bonds in an attempt to drive down borrowing costs and encourage businesses to invest more.
The test for inclusion was whether companies make a "material" contribution to the economy. Relevant factors include if headquarters are located in Britain, or whether a company has a significant volume of sales.
Apple does not have its headquarters here and a proportion of its sales in the UK are legally recorded in Ireland.
The Bank of England declined to comment on individual companies on the list, but a source at the Bank said the bond-buying programme was designed to influence market prices and that including the Apple bond increased its chances.
There are other companies on the list that might raise eyebrows - including the two British tobacco giants British American Tobacco and Imperial Brands - and the US fast food giant McDonald's, whose tax affairs are also under investigation in Brussels.

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Three ships chartered to troubled Hanjin Shipping sold www.reuters.com

Three ships chartered to Hanjin Shipping Co Ltd (117930.KS) have been sold, the first of dozens of vessels expected to be hawked following the failure of the world's seventh largest container shipper.

Around $14 billion of cargo has been tied up globally as ports, tugboat operators and cargo handling firms worried about not being paid refuse to work for Hanjin, which filed for receivership in a Seoul court on Aug 31.

Three bulk carriers, used for carrying commodities such as iron ore, coal and grain, have been sold for a total of almost $39 million, according to data from ship valuation firm VesselsValue.

The largest, the 180,000 deadweight tonne (DWT) capesize Hanjin Matsuyama, was bought by Singapore-based Winning Shipping for $22.75 million, according to the data.

A man who identified himself as the head of the purchasing department in the Qingdao branch of Winning Shipping but declined to give his name said the deal had been agreed but not yet completed.

"We began talking about the deal before the news about Hanjin began emerging, we were already in the process of buying it."

The five-year old ship was sold charter-free, meaning it is no longer chartered by Hanjin Shipping, a sale and purchase broker told Reuters.

The two smaller 37,000 DWT handyside vessels have been sold to Greek buyers.

"After news of (Hanjin's) collapse they were redelivered early to financiers and sold charter free," the broker added.

With ship prices already depressed by over-capacity, the values achieved were in line with recent similar sales and estimates from shipping services firm Clarkson.

Shipbrokers expect more Hanjin ships to be put on the market although uncertainty about the company's future could delay progress.

OVER-CAPACITY TO REMAIN

While uncertainty around Hanjin Shipping has caused a spike in freight prices, few expect it to last.

Cargo ships of around 257.8 million DWT, equal to about 14.6 percent of the global fleet, are due for delivery from now to around 2019 and global seaborne trade growth is just 2.4 percent, Clarkson data shows.

That points to little short-term improvement in the shipping markets with no real return to profitability until 2019-2020, at least, analysts say.

"The industry needs to break the trend of halting demolition activity as soon as the Baltic Dry Index (a basket of freight rates) improves marginally," said Peter Sand, chief shipping analyst at shipping lobby group BIMCO.

The fleet of 63 ships Hanjin owns is worth around $1.76 billion, VesselsValue estimates, well short of the $5.5 billion in debt the company reported as at the end of June, 2016. It charters a further 78 vessels.

Around two-thirds of the total are not operating properly, including vessels seized, barred entry to ports or terminals, denied services or moving slowly, according to Hanjin Shipping data on Monday.

The chairman and former chairwoman of parent company Hanjin Group on Tuesday transferred around $45 million to help unload cargo stranded on the troubled shipper's vessels.

However, Hanjin estimates at least $100 million more is needed to clear the cargo and regulators have warned securing further funds from Hanjin Shipping shareholders could take "considerable time."

South Korea has said no government or central bank money would be directly injected into the firms restructuring in the ailing shipping and shipbuilding industries, though it is helping small-to-medium sized businesses hit by the restructuring.

(Editing by Lincoln Feast)

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Bayer 'closes in' on $66bn deal to take over Monsanto www.bbc.com

A deal by German drugs and chemicals giant Bayer to take over US seeds company Monsanto is imminent, media reports suggest.
The takeover would follow several months of talks and is thought to value Monsanto at more than $66bn (£50bn).
According to German media, Bayer has increased its offer to $129 per share while the Reuters news agency says the deal will be announced Wednesday.
The takeover would create the world's biggest seeds and pesticides company.
Combining Bayer and Monsanto would make it the market leader in the US, Europe and Asia.
Bayer's farm business produces seeds as well as chemicals to combat weeds and insects, but it is better known for its healthcare products such as Aspirin and Alka-Seltzer.
Monsanto is primarily known for its genetically modified seeds for crops including corn, soybeans, cotton, wheat and sugar cane. Such seeds have attracted criticism from some environmental activists.

Largest cash deal ever
On 5 September, Bayer made its latest increased offer of $127.50 per share. Monsanto rejected this, but said it was engaged in "constructive negotiations" with Bayer.
The latest $66bn offer - which would be the largest cash acquisition on record - comes amid a wave of mergers in the agriculture sector.
Rivals including Dow Chemical, DuPont and Syngenta have all announced tie-ups recently, although some have yet to be cleared by regulators.
The drop in commodity prices has put pressure on companies such as Monsanto, with farmers' cutting orders for supplies.
A Bayer takeover of Monsanto is likely to draw close scrutiny from anti-trust regulators because of the sheer size of the combined company and the control it would have over the global seeds and sprays markets.
Farming groups have raised concerns that such mergers could lead to fewer choices and higher prices while opponents of genetically modified food in Europe worry about Monsanto's influence on the continent.

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