1 US-MONGOLIA 'THIRD NEIGHBOR TRADE ACT' ON THE WAY WWW.THEDIPLOMAT.COM PUBLISHED:2018/11/17      2 CHINA'S FIGHT AGAINST SMOG MAKES PALLADIUM 2018'S BEST METAL WWW.MINING.COM PUBLISHED:2018/11/17      3 MILLENNIUM CHALLENGE CORPORATION PRESENTS GMS LICENSES WWW.MONTSAME.MN PUBLISHED:2018/11/17      4 MONGOLIA CALLS FOR GLOBAL ATTENTION ON CLIMATE CHANGE WWW.NEWS.MN PUBLISHED:2018/11/17      5 ADB OPENS A NEW WASTEWATER TREATMENT PLANT IN ARVAIKHEER, MONGOLIA WWW.AGENPARL.EU PUBLISHED:2018/11/17      6 CHINA TO BOOST COOPERATION WITH INDIA, MONGOLIA: DEFENSE MINISTER WWW.GLOBALTIMES.CN PUBLISHED:2018/11/17      7 DEATH ON MONGOLIA’S ‘COAL ROAD’ WWW.NEWS.MN PUBLISHED:2018/11/17      8 MONGOLIA SHAKEN BY WIDENING LOAN SCANDAL WWW.ASIA.NIKKEI.COM PUBLISHED:2018/11/17      9 MONGOLIA’S UNEMPLOYMENT FALLS BY 2.2 PERCENT WWW.NEWS.MN PUBLISHED:2018/11/16      10 MEETING MEAT DEMAND: MONGOLIA TO TRADE 17.9 PERCENT OF LIVESTOCK WWW.NEWS.MN PUBLISHED:2018/11/16      БНСУ-ЫН АЖ АХУЙН НЭГЖҮҮДИЙН АУТСОРСИНГ ЗАХИАЛГЫГ ГҮЙЦЭТГЭХ ЗАЛУУЧУУДЫГ СОНГОН, ШАЛГАРУУЛНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/17     НҮҮРСНИЙ ЭКСПОРТ 10 ХУВИАР ӨСӨЖ, 31.3 САЯ ТОНН БОЛОВ WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/17     СУДАЛГААГААР ЖДҮ ЭРХЛЭГЧИД ЗЭЭЛИЙН ХҮҮНИЙ ЗАРДАЛ ХАМГИЙН ИХ ХҮНДРЭЛ УЧРУУЛДАГ ГЭЖ ХАРИУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ERDENE RESOURCE DEVELOPMENT: ХАЙГУУЛЫН ЗАРДАЛ III УЛИРАЛД 42 ХУВИАР БУУРСАН WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ГОРХИ, ТЭРЭЛЖИЙН БАЙГАЛИЙН БОХИРДОЛД АНХААРАЛ ХАНДУУЛЖ ЭХЛЭВ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     ИРЭХ БААСАН ГАРАГТ ХОТЫН ДАРГЫГ ОГЦРУУЛАХ ЭСЭХИЙГ ХЭЛЭЛЦЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     “АМГАЛАН” ХОТХОНД БАЙРЛАХ ГЭРТЭЭ КАННАБИС ТАРЬЖ, УРГУУЛЖ БАЙСАН ТУРК ИРГЭНИЙГ БАРИВЧИЛЖЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/11/17     ӨНӨӨДӨР АВТОМАШИНЫ ДУГААРЫН ХЯЗГААРЛАЛТ ҮЙЛЧЛЭХГҮЙ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/17     ГАШУУНСУХАЙТЫН НҮҮРСТЭЙ МАШИНЫ ЦУВАА 120 КМ БОЛЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/16     ТАТВАРЫН ОРЛОГО 32.2 ХУВИАР ӨСӨЖ, ТӨСВИЙН ТЭНЦЭЛ 341.9 ТЭРБУМ ТӨГРӨГИЙН АШИГТАЙ ГАРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/16    

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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Top-20 index decreases by 2.65 percent www.montsame.mn

Ulaanbaatar/MONTSAME/ During the week spanning July 23 to July 27, 2018, MNT1,036,318,735.12 worth of securities were traded through 5 trading sessions on the MSE. The daily average MNT volume was MNT207.2 million.
Last week, a total of 40 companies’ 6,513,364 shares worth MNT 794,069,135.12 were traded.
In Government securities secondary market trading, 2,320 Government securities worth MNT 242,249,600 were traded.
As of July 27, 2018, total market capitalization of MSE is MNT 2,361,516,976,987.77. The TOP-20 index decreased by 2.65 percent to stand at 19345.19 units.

source: Mongolian Stock Exchange

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Erdenes Tavan Tolgoi JSC gains net profit of MNT373.3 billion www.montsame.mn

Ulaanbaatar/MONTSAME/ On July 30, B.Gankhuyag, CEO of ‘Erdenes-Tavan Tolgoi’ JSC, introduced a 2018 half-year report of the company.

In the beginning of his report, B.Gankhuyag, CEO of Erdenes Tavan Tolgoi JSC remarked, “Since our company established in 2010, we encountered a number of socio-economic and financial complications and coal price downs, which led us to be incapable to pay wages. Sometime, we even stopped mining operations, due to politicians’ decision. Today, we have overcome such difficulties. In other words, we will have financial opportunities and great future. The statistics indicates how the company is fulfilling its duty sufficiently before three million people of Mongolia, the shareholders of the company”.

ETT’s half-year report shows positive indications. According to first half of the year, the company exported 6.9 million tons of coal, earning MNT 953 billion that stands at 78 percent of the total planned revenue in 2018. The company paid MNT216.5 billion to the state budget as duty and fee. By doing so, the company has earned the net profit worth MNT373.3 billion.

As the ETT’s financial condition has improved, it has now been solvent to fund some of its projects with its own money. In addition, the company has created a fundamental economic condition to put 1072 shares of every shareholder into economic circulation, highlighted the company authorities.

The profit of the company is based on the coal price. The company held talks with Chalco Trading Hong Kong Co Limited. As a result, the both sides reached an agreement to raise the coal price to USD61 per ton and set it as the fundamental price. It ensures the company to keep distributing the coal at USD61 per ton, even if the coal price in the world market goes down. In case coal price goes above USD61, the company will raise the price in accordance with the world market price. Moreover, the supply price for coal being excavated at Western Tsankhi and other blocks is set by an open tender. This year, it has been set at USD70 per ton, which means price of coal being supplied except Chalco Trading Hong Kong Co Limited is USD70 and it led to net profit increase of the company.

Alongside the economic indicators, there has been improvement in social issues of employees. For instance, a basic salary of workers was raised by 21 percent, night work pay was increased by five-fold as well as labor safety incentive has been reached 15 percent.

As a preparation to make IPO at world capital market, the company started taking actions to collaborate with stock exchanges and financial and legal consultants and have its auditing done by international accredited organization.

Concluding the report, B.Gankhuyag said, “Our company has a total of 2,511,000 shareholders—Mongolian citizens. However, just 300 thousand people have their registration account opened and about 600 thousand have not authenticated their rights to own the shares. Therefore, we are working to intensify this issue.“

M.Unurzul

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President Kh.Battulga supports Third Neighbor Trade Act www.president.mn

Ulaanbaatar /MONTSAME/ President Kh.Battulga expresses full support and gratitude to the sponsors of the bipartisan H.R.6636, the Mongolia Third Neighbor Trade Act, which was introduced for consideration in the U.S. House of Representatives. Rep. Ted Yoho (R-FL-3), Rep. Dina Titus (D-NV-1), Rep. Don Young (R-AK-At Large), Rep. Mark Meadows (R-NC-11), Rep. Brian K. Fitzpatrick (R-PA-8), Rep. Elise M. Stefanik (R-NY-21), Rep. Jared Polis (D-CO-2), Rep. David E. Price (D-NC-4), Rep. William R. Keating (D-MA-9), and Rep. Dwight Evans D-PA-2) represent a broad political spectrum of support for Mongolia. Hopefully, the House and Senate will vote and approve this legislation.

Mongolia has consistently adhered to the principles of equality and mutual respect of interests in its foreign policy. This legislative bill is an important milestone to further strengthen Mongolia-U.S. alliance and demonstrates our bilateral cooperation that strengthens the economic security and democracy of Mongolia.

Last year, Mongolia celebrated 30 years of diplomatic relations with the United States. Our land is bordered by Russia and China, yet Mongolia refers to the United States as its ‘third neighbor’.

Total Mongolia-U.S. trade in 2012 measured a record USD 707 million, but in 2017 Mongolia exported only USD 9.4 million, while importing just USD 82.2 million in goods from the United States. There is much room for growth for both U.S. imports and Mongolian exports.

Mongolia has supported the U.S. efforts in Iraq and Afghanistan since 2003. This underlines our deep commitment to democracy, rule of law, human rights, and a robust free market economy.

Cashmere, fine wool obtained from cashmere goats, industry is essential to Mongolia’s economy. Over a third of the population of Mongolia works in the animal husbandry sector, and cashmere provides income and employment for the majority of these people. Agricultural products are Mongolia’s second largest export after the mining sector, and cashmere products constitute the biggest share in the agricultural exports.

In 2017, only 1,100 tons out of total of 9,400 tons raw cashmere, which is almost 50 percent of world cashmere, is processed within the country while the rest of 8,300 tons is exported mainly to China in raw without adding value. The United States buys nearly all of its cashmere products from China. Duty free treatment of Mongolian cashmere and other textile garments exports to the United States would facilitate increased trade with the U.S. and reduced Mongolian export dependence on one country and single sector of mining. This would allow Mongolia to diversify its trade and ensure its sustainable economic growth.

The development of Mongolia’s garment industry would also promote women’s employment and empowerment. Women have historically participated in Mongolia’s garment industry at high rates, and the garment industry has historically provided safe and stable employment for women in Mongolia.

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Mongolia's Tavan Tolgoi coal mine sees profits surge in H1, raising IPO prospects www.reuters.com

ULAANBAATAR, July 30 (Reuters) - Revenue from Mongolia’s giant Tavan Tolgoi coal mine surged in the first half of the year due to higher commodity prices and a big jump in coal exports, the project’s owner said on Monday, raising prospects for a planned overseas listing.

Tavan Tolgoi, located in the Gobi desert about 250 kilometres (155 miles) from the Chinese border, is one of the world’s largest coking coal mines, but it has not yet fulfilled its massive potential.

Development has been held back by financing and infrastructure challenges, as well as political disputes over the role played by foreign investors in Mongolia’s economy.

Gankhuyag Battulga, chief executive of the state-owned Erdenes Tavan Tolgoi JSC in charge of the project, told a press briefing that rising revenues and production could finally kickstart the mine’s expansion.

The project exported 6.9 million tonnes of coal in the first six months of the year, up 28 percent compared to the same period in 2017, while net profits increased 31 percent from the same period a year ago to reach 373.3 billion tugrik ($151.75 million).

“The increase in revenues allow us to finance some parts of the project,” said Gankhuyag, adding that the company has also restarted exploration after a long suspension, a move that could raise estimated reserves and overall market value.

The improvement in Tavan Tolgoi’s fortunes follows a resolution that Mongolia’s parliament passed to raise funds for the further development of the project on overseas stock exchanges.

Analysts said Tavan Tolgoi still needs to overcome the severe infrastructure problems in the remote south Gobi region, including the construction of a rail link to China, Mongolia’s main export market.

“Being profitable is only the first step. The railway issue is obviously the main hurdle to a successful IPO,” said Munkhdul Badral Bontoi, chief executive of Mongolia-based market intelligence group Cover Mongolia. ($1 = 2,460 tugrik) (Reporting by Munkhchimeg Davaasharav; Editing by David Stanway and Christian Schmollinger)

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Lotte Considers Selling China Malls Amid Anti-Korean Sentiment www.bloomberg.com

Lotte Group, reeling from a wave of anti-Korean sentiment in China for more than a year, is considering selling some of its department stores in the country, a move that would accelerate the conglomerate’s withdrawal from the world’s second-largest economy.

The sale of some of Lotte Shopping Co.’s five malls is among options being reviewed in the country, a Lotte Group spokesman said, in response to an earlier Chosun Ilbo report. Lotte Confectionery Co., which has three factories in China, is also reviewing its business there, the representative said.

Despite some signs of thawing, Lotte’s ongoing struggles illustrates how South Korean companies continue to face hardships in China about a year and a half after Seoul angered Beijing by deploying a U.S. anti-missile system. Hyundai Motor Co. has also seen its sales fall in the country in the wake of the geopolitical dispute.

Sales at Lotte’s China department business fell 22 percent to 76 billion won ($68 million) in 2017, resulting in 70 billion won in operating losses.

Lotte, the Korean retail giant, has agreed to sell most of its supermarkets in China as losses kept piling up. Lotte has also suffered at home as the influx of Chinese consumers visiting its hotels and duty free shops dried up, according to the Lotte spokesman. The group also has theme-park projects and a chemicals business in the country.

Lotte has been at the center of what has been perceived as retaliation against Korean businesses because the group offered one of its golf courses to house the controversial missile-defense system in 2017.

Last week, South Korean Finance Minister Kim Dong-yeon asked Chinese counterpart Liu Kun for China’s cooperation to resolve Korean companies’ difficulties in China.

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'Happy with tariffs': Steel industry emerges as trade war winner www.cnn.com

1. Blockbuster profits: The trade war has cast a shadow over parts of Corporate America, but it is bringing a bit of good fortune to the steel industry.
President Donald Trump's metal tariffs have sent steel prices surging and sparked blockbuster profits for steel manufacturers.

Reliance Steel & Aluminum (RS) hauled in record sales, thanks to an 18% spike in prices. Nucor (NUE) recorded the best second quarter in its history. Its profit more than doubled.

"All in all, we're very happy with tariffs," Nucor CEO John Ferriola told analysts earlier this month.

Those words haven't been uttered by many other corporate bosses, who are grappling with sticker shock.

Tariffs levied by the United States and major trading partners are eating into the profits of Harley-Davidson (HOG), General Motors (GM), General Electric (GE), 3M (MMM) and hundreds of other companies. CEOs are scrambling to raise prices and reshuffle their supply chains.

Unsurprisingly, steel companies are feasting on a price spike from Trump's 25% steel tariff. The benchmark price of US-made steel has zoomed 41% higher since the start of the year to $917 per short ton, according to S&P Global Platts.

Tariffs aren't the only factor. Steel demand is strong in an economy that just clocked its fastest growth since 2014.

Following the booming profits from Nucor and Reliance, US Steel (X) and AK Steel are scheduled to report results this week.

Both steel makers are expected to reveal a jump in revenue, though not by as much as their rivals. That's because US Steel and AK Steel (AKS) are locked into annual contracts that have fixed pricing. Those contracts expire later this year, potentially allowing them to capitalize on the price hikes.

Nucor is seizing on the momentum to plow $1 billion back into its business, a huge increase that will mostly go toward expansion.

"What will happen to our great country if we continue to operate with a massive trade imbalance?" Ferriola asked. "We agree with the administration's efforts to address this issue."

Of course, steel customers are less than thrilled.

Material costs have risen by as much as 50% at FJM Ferro, a Brooklyn company that fabricates steel used in Manhattan skyscrapers.

Steel companies may have record profits, but it does hurt the mom-and-pop shops," said Joe Casucci, FJM Ferro's founder and CEO.

Even large companies are getting squeezed. GM slashed its profit outlook last week, warning of a $300 million jump in commodity costs linked to higher steel and aluminum costs.

"You have to be careful with tariffs because there's always a cost," said Philip Gibbs, a steel analyst at KeyBanc Capital Markets.

He pointed out that spiking US steel prices threaten to make American businesses less competitive. Some companies may eventually try to find other ways to get steel into the country.

"It feels good in the short run as prices go up," Gibbs said. "But then all the customers complain."

2. Jobs report: Economists are expecting another solid month of gains when the Labor Department reports Friday on job growth for July.

The US economy has cranked into high gear, growing at the fastest pace in almost four years, and unemployment is 4%, near the lowest in a half-century.

Economists surveyed by Thomson Reuters expect 195,000 jobs were created in July, roughly in line with the average for this year.

3. Fed watch: The Federal Reserve is not expected to raise interest rates when it meets on Tuesday and Wednesday. But investors will be watching the Fed's statement closely for its read on the economy and clues about interest rates.

The Fed has signaled that it plans two more rate hikes this year and three in 2019.

4. Critical moment: This may be the most closely watched earnings report in Tesla's history.

The electric car maker reports results on Wednesday. Tesla just hit an important target for production of the Model 3, its most accessibly priced car. But Tesla is trying to stop mounting losses, and Elon Musk keeps making headlines with bizarre tweets.

5. Apple earnings: Apple will release is quarterly results on Tuesday, and a strong report could push the most valuable company in America to a milestone — a $1 trillion market cap.

Analysts may question Apple executives on whether the trade war its hurting the bottom line. And Apple fans will be hunting for hints about the next iPhone.

6. Coming this week:

Monday — Caterpillar (CAT) earnings

Tuesday — Eurozone second-quarter GDP; Pfizer (PFE), Procter & Gamble (PG), Apple (AAPL) earnings

Wednesday — Fed statement; Humana (HUM), Sprint (S), Tesla (TSLA) earnings

Thursday — Bank of England meets; Berkshire Hathaway (BRKA), Yum Brands (YUM), Aetna (AET) earnings

Friday — US jobs report; Kraft Heinz (KHC), Toyota (TM) earnings

CNNMoney (New York)
First published July 29, 2018: 7:18 AM ET

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Civil servant salaries to be raised in Q4'18 www.gogo.mn

An International Monetary Fund (IMF) delegation is working in Mongolia to conduct a 5th review of Mongolia’s extended fund facility (EFF) program. Cabinet and the IMF staff reached an initial agreement to raise salaries for civil servants in the fourth quarter of 2018. On July 26, Minister of Labor and Social Welfare S.Chinzorig reported that negotiations will continue on salary increases.

The ministry hopes to keep salary increases in line with inflation as well as workloads and required skills for a specific type of jobs. Minister S.Chinzorig also stated, “The National Tripartite Committee on Labor and Social Consensus might soon decide on raising the minimum wage. The ministry presented a proposal to raise the minimum wage to 300,000 MNT in January 2019.”

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More than 20,000 households to take part in the Refined Fuel Project www.gogo.mn

Cabinet issued a decree to completely ban the use of raw coal in Ulaanbaatar, starting in May 2019. State authorities, including the Ministry of Nature, Environment and Tourism and the Ministry of Energy, have been conducting research regarding future demand for refined fuel and supply levels, along with price stabilization. This September, the state plans to conduct a test run of the Refined Fuel Project with participation from more than 20,000 households residing in highly-polluted areas.

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Mongolia to implement digital training project with USD 2 million www.montsame.mn

Ulaanbaatar /MONTSAME/ The Ministry of Education, Culture, Science and Sports and Allin Technologies Pte Ltd of Singapore signed an agreement on implementing a project ‘Digital training’ on July 26.

In the first phase, the project will be realized in general education schools and kindergartens of Ulaanbaatar city and 21 aimags with the financing of USD 2 million. It is expected that the project will involve 300 schools and kindergartens and 5000 teachers and 100 thousand children will receive benefits of the project.

The project financing will be used for involving teachers in re-training program, establishing digital classrooms, enriching curriculum with the best practices that formulated by world top educational organizations such as Harvard and changing current teaching tools and handbooks with up-to-date ones.

Researchers and scientists group led by Professor of Harvard Graduate School of Education Catherine Snow will assess the result of the project.
E.Altanzul

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LendMN to have access to Viber resources www.montsame.mn

Ulaanbaatar /MONTSAME/ The first Mongolian fintech financial services company LendMN was selected to join the Rakuten Accelerator program powered by Techstarts, kicked off on July 16 in Singapore. The program is considered as one of the best startup incubator and accelerators.

LendMN, a project by ‘And Global’ company, became one of the nine companies selected from 200 startups. 
The accelerator program co-organized by Rakuten and Techstarts will run for three months. As a result, in October the selected companies will introduce their startups to over 300 top Asian investors and have the opportunity to attract investments.

As part of the program, LendMN will have access to resources from across Rakuten’s global ecosystem of more than 70 services, including Rakuten Viber messaging and voice platform. Therefore, the company services will be available on Viber.

LendMN is an AI based intellectual work of Mongolian youth and the first fintech company to issue IPO at the Mongolian Stock Exchange (MSE). The company offered 25 percent of its shares to raise MNT 5 billion. However, it received orders worth of MNT 43.98 billion from the public, setting number of records on the MSE.

B.Misheel

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