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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Myanmar reviews $9bn China-backed port project on cost concerns www.asia.nikkei.com

YANGON (Financial Times) -- Myanmar’s government is reviewing a $9bn deepwater port project backed by China over concerns it is too expensive and could ultimately fall under Beijing’s control if Myanmar were to default on its debt.

Two people with direct knowledge of the discussions within Aung San Suu Kyi’s government said that economic officials were looking for ways to negotiate down costs for the planned port at Kyaukpyu in Myanmar’s western Rakhine state.

The port is set to give China’s south-west a direct trading corridor to the Indian Ocean via Myanmar, allowing companies to avoid the Malacca Straits if needed. As such, it is part of Beijing’s $1tn push to shore up transport and energy supply routes across Eurasia under its so-called Belt and Road Initiative. The port at Kyaukpyu will be one of the biggest infrastructure projects in Myanmar’s history.

The project “should be welcomed as a useful addition to the country’s stock of infrastructure,” said Sean Turnell, an Australian academic who advises Myanmar’s government on economic policy, However, he added: “It would seem at first glance also to be a project that comes at excessive financial cost and, with this, poses grave risks for Myanmar it may require the country to take on to participate.”

The current estimated costs of the port, which sits at the terminus of recently built oil and gas pipelines that run to southern China’s Yunnan province, are about $7.5bn, with another $2bn envisaged for an adjoining economic zone.

The project is due to be built by a consortium led by Citic Group, one of China’s largest and most powerful state-backed conglomerates. Citic won a tender in 2015, with the Chinese side taking 70 per cent and Myanmar’s government and local companies taking 30 per cent.

“A port of [that] scale that could be usefully employed by Myanmar, under any plausible scenario, should cost just a fraction of this,” said Mr Turnell, an economics adviser who is on secondment from Australia’s Macquarie University as a close adviser to Myanmar’s government. He noted that his comments were his “personal assessment” but also confirmed that officials were looking at ways to negotiate the project’s cost down.

A second foreign official in Myanmar briefed on the discussions inside the government was blunter, saying the project was giving policymakers “nightmares”, amid fears the port could come under Chinese control if Myanmar failed to service its debt.

“If the project doesn’t do well, there is the risk of defaulting and becoming a Chinese-owned port,” said the official, who asked not to be quoted by name because of the sensitivity of the project.

Similar problems have already arisen elsewhere in Asia. Sri Lanka last year handed control of its port at Hambantota to China on a 99-year lease after failing to pay the project’s debts.

Mr Turnell estimated that the amount of debt Myanmar would need to take on for its share of the project would be about $2bn, or about 3 per cent of GDP, representing what he called “a substantial addition to the country’s debt stock”.

Citic Construction did not respond to an emailed request for comment, and Myanmar’s government did not respond to requests for comment.

Myanmar’s review of the project comes at a delicate time for the country, as it faces condemnation from western countries over its recent military crackdown on Rohingya Muslims, which some analysts believe could push the country into China’s orbit.

The country’s previous government angered China in 2011 by suspending the $1.5bn Myitsone dam project in northern Myanmar, which it shelved because of its environmental and social impact.

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Stock exchange weekly report /May 28- May 31/ www.mse.mn

Ulaanbaatar /MONTSAME/ During the week spanning May 28 to May 31, 2018, MNT8,691,937,112 worth of securities were traded through 4 trading sessions on the MSE. The daily average MNT volume was MNT2.2 billion.
1. STOCK TRADING:
Primary market trading:
16.9 million shares worth MNT6.4 billion of 'Mongol Basalt' JSC were traded.
date Securities Name Symbol Price per share Volume Amount
18.05.28 Mongol Basalt MBW 380.00 16,925,100 6,431,538,000.00
Total 16,925,100 6,431,538,000 A total of 40 companies’ 9,302,662 shares worth MNT2,104,228,160 were traded.
Most actively traded stocks:
№ Symbol Securities Name Volume Amount
1 MBW Mongol Basalt 3,777,486 1,571,389,909
2 LEND LendMN 5,288,936 274,960,296
3 GTL Gutal 3,532 77,703,900
4 SUL Juulchin Duty Free 441 41,670,320
5 APU APU 62,987 39,590,941Most active brokerage firms:
№ Symbol Company Name Volume Amount
1 GAUL Gauli 2,743,374 1,112,212,578
2 BUMB Bumbat-Altai 1,551,619 605,050,386
3 BDSC BDSec 1,090,217 402,606,227
4 BZIN Mirae Asset Securities Mongol 6,625,602 391,705,5872. GOVERNMENT SECURITIES TRADING:
Most active brokerage firms for Government securities secondary market trading:
№ Symbol Company Name Volume Amount
1 BDSC BDSec 2,000 203,600,000.00
3 GAUL Gauli 192 19,200,000.00 
3. CORPORATE BONDS TRADING:
№ Symbol Company Name Volume Amount
As of May 31, 2018, total market capitalization of MSE is MNT2,487,830,865,858 The TOP-20 index increased by 0.44% to stand at 20,024.7 units.

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Over 500 non-banking financial institutions active in Mongolia www.news.mn

As of the first quarter of 2018, over 500 non-banking financial institutions (NBFI) and their 177 branches are reported to be active in Mongolia across the 21 provinces. According to the Mongolian Financial Regulatory Commission, over 2500 people are working in such institutions.

In total, 461 NBFI and 124 branches are located in Ulaanbaatar with 76 institutions and 53 branches in the provinces.

Statistics show that, 49 percent of consumers are women and 50.9 percent are men.

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MBD business delegates are heading to London www.mongolianbusinessdatabase.com

MBD business delegates on mining, education, transportation, foreign trade and tourism are heading to London UK tomorrow for Frontier's "Invest Mongolia London Forum" and "International Festival for Business 2018" in Liverpool.

During the business program, the delegation will have an opportunity to meet and attend Mr.John Grogan MP and Chairman of Mongolian British Chamber of Commerce's reception at the Parliament house , Mr.Julian Knight (MP) The Prime Minister's Trade Envoy to Mongolia and pleased to have a special meeting Mr.Joe Anderson, the Mayor of Liverpool.

As of today, there's 150 participants registered for "Invest Mongolia London Forum" and appx 50.000 attendees usually join the bi-annual "International Festival for Business" forum.

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Mongolia launches hotline for foreign tourists www.xinhuanet.com

ULAN BATOR, June 3 (Xinhua) -- Mongolia launched a hotline service Sunday for foreign visitors to the country that will provide tourist information and help in emergencies.

According to the country's tourism department, the new hotline with the number of (+976) 70108687 will provide information on popular destinations and ongoing events across the country.

Moreover, tourists can call the number to ask for help and instructions when dealing with security issues or to complain about tourism services.

This service is part of efforts to develop Mongolia's tourism in a bid to diversify its mining-dependent economy.

The landlocked East Asian country has declared 2018 as a tourism year.

In the first quarter of 2018, the country saw 705,000 foreign tourists, up 11 percent from the same period last year, according to the National Statistical Office of Mongolia.

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S. Korea, China agree to double-track key Incheon-Mongolia air corridor www.english.yonhapnews.co.kr

SEOUL, June 3 (Yonhap) -- South Korea and China agreed to double-track a key air corridor between Incheon and Mongolia with the aim of greatly reducing flight delays in order to benefit travelers, the government said Sunday.

The Ministry of Land, Infrastructure and Transport said the agreement was reached at a working level meeting in Seoul, with the change to be implemented by the end of the year.

The double-tracking will cover the 1,700 kilometers of the airway that is used by planes flying mostly to Mongolia, the Middle East, Russia and Europe from East Asia.

The ministry said one-way traffic will be observed to improve the flow of planes and flight safety.

In 2016 some 150,000 planes used the route, up from 128,000 in 2014.

Aviation experts said that due to the large number of planes on the route and the need to maintain safe distance between each jet, delays in flights from Incheon International Airport are very common. There were 1,344 flights that were delayed for more than an hour in 2016 due to congestion on the airway.

The ministry said that the decision to double-track the route can help 144,000 flights per year, with some 37 percent of the flights being South Korean flag carriers.

Seoul has been engaged in talks with Beijing on the issues since 2010 with the latest decision coming on the heels of a pact to double-track air routes to Southeast Asia.

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Mongolia listing boosts investors confidence in Erdene Resource www.mining.com

Shares in Canada’s Erdene Resource (TSX:ERD), one of the very few companies that has successfully navigated Mongolia’s ever-changing policies on foreign mining investment, were off to the races on Thursday after the miner announced it had received approval for a secondary listing on the Mongolian Stock Exchange (MSE).

The Halifax, Nova Scotia-based miner also said it had launched an offering of common shares to Mongolian residents, as well as a concurrent non-brokered private placement, which in combination are expected to raise up to $4.4 million.

The Canadian miner has also launched an offering of common shares to Mongolian residents, as well as a concurrent non-brokered private placement, which in combination are expected to raise up to $4.4 million.
The company’s stock was up 4.7% to 34 Canadian cents by 10:25 a.m. ET, , still a long way off from the Cdn$1.35 they closed at in May last year.

“Today’s news is the result of close and productive collaboration with the Mongolian Stock Exchange, the Financial Regulatory Commission of Mongolia, and the Government of Mongolia through active support from the Ministry of Mining and Heavy Industry,” Peter Akerley, President and CEO of Erdene, said in the statement. “Our cross listing on both a foreign exchange and the MSE, the first of its kind in Mongolia, is a demonstration of our commitment to creating lasting benefits in [the country].”

He added the company believed the MSE listing would increase opportunities for Mongolians to benefit from the development of their nation’s mineral endowment.

Erdene plans to sell 4,000,000 common shares at a price of 34 Canadian cents per share for gross proceeds of Cdn$1.36 million.

The underwriters of the offering will receive a cash commission equal to 7% of the gross proceeds raised, Erdene said. In addition, Erdene will sell up to 8,000,000 units at a price of 38 Canadian cents each for gross proceeds of up to $3.04 million.

The transactions are expected to close on or before June 14, 2018, and are subject to certain conditions, including the receipt of all necessary approvals.

Mongolia’s mineral wealth has drawn several firms in the past two decades as it opened up to investment. The country’s main appeal has always been its riches — vast deposits of copper, coal and iron ore— as well as its proximity to China, the world’s biggest buyer of the minerals.

The enthusiasm peaked in 2011, when the land-locked nation’s economy grew 17% — the fastest pace on the planet. It went downhill since, with a slight recovery in the past two years as the country stepped up efforts to attract international investors, who can provide foreign direct investment to help Mongolia to meet the terms of its IMF bailout deal.

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Mongolia bans civil servants from using social network sites at work www.xinhuanet.com

A Mongolian ban targeting civil servants on the use of social network sites including Facebook, Twitter and Youtube while at work has come into force, according to the government on Wednesday.

The government’s decision was made on May 23 and took effect Tuesday.

It is intended to prevent cyber attacks and to ensure the safety of government information networks, according to a statement released by the Communications and Information Technology Authority.

Mongolia’s General Intelligence Agency will help monitor the ban’s implementation.

NAN reports that on March 9, 2016, government workers in Tanzania were banned from using social media and chat apps during work hours.

Transport and communication ministry officials have been warned that “gossiping” on social media will lead to dismissal.

It is not clear how the ban will be enforced amidst increasing social media popularity.

The minister told the BBC’s Halima Nyanza that social media use was interfering with Tanzania’s development.

Cheap phone data bundles are enabling wider use of platforms like WhatsApp, Facebook and Twitter in Tanzania.

(Xinhua/NAN)

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Vegetable storage complex to be constructed in Ulaanbaatar www.news.mn

The Mongolian Cabinet has decided to continue the ‘Cultivation Campaign III’ programme in its 2016-2020 action plan. As a part of the campaign, the Ministry of Food, Agriculture and Light Industries is working to construct a vegetable storage complex which is much needed in the city, where summer temperatures can rise to above 30deg C and keeping produce fresh is difficult.

The 30,000 thousand tonne capacity facility will be constructed in Songinokhairkhan District of Ulaanbaatar. It is expected to open by 2020 and will create 200 new jobs as well as having positive value chain economic benefits for wholesalers and retailers alike.

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Mongolian Parliament holds secret session on SCO status www.news.mn

The Mongolian Parliament has held an irregular meeting regarding the nation's status in the Shanghai Cooperation Organisation (SCO). The meeting took place behind closed doors on Wednesday 30 May. President Kh.Battulga and Prime Minister U.Khurelsukh both participated in the session.

At the meeting, the MPs discussed Mongolian Foreign Policy and the need to join the Eurasian Economic Union.

To date, Mongolia has not shown much interest in becoming a full member of the SCO, although it has been an observer since 2004.

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