|Frontier's "Invest Mongolia Tokyo 2018"||Frontier Securities||Tokyo Japan|
|"Open to Export" ICC WTO International business award||ICC WTO||London|
The Mongolian-Japanese Business Forum was held in Tokyo with the aim of increasing exports from Mongolia to Japan and intensifying the partnership agreement.
Over 120 entrepreneurs from Japan and Mongolian representatives from 15 entities attended the forum.
Chargé d'Affaires of Mongolia to Japan, head of the Foreign Trade Department of the Japan Chamber of Commerce and Industry and representing the organizers Deputy Director of the SME Development Fund at the Ministry of Food, Agriculture and Light Industry and head of the EICT gave opening remarks.
Deputy Director of the SME Development Fund delivered a presentation and provided the Japanese businessmen with actual information of the sector.
In addition, Mongolian representatives of light industry including cashmere and wool, leather, food, cosmetics, freight forwarding and labor force companies provided detailed information on their activities,presenting their capabilities and unique features.
Moreover, officials led by Chairman of Kawasaki Chamber of Commerce and Industry Osamitsu Yamada received Mongolian delegation and the parties signed a memorandum of cooperation.
Chinese Premier Li Keqiang ordered the government to investigate the nation’s vaccine industry after violations found at a biologics manufacturer heightened consumer concerns about drug safety.
Shares of vaccine makers tumbled in Shanghai after Li said China will crack down on crimes that endanger people’s lives and hold perpetrators responsible. The premier’s order followed an outcry on social media after Changsheng Bio-Technology Co. was fined for having produced and sold low-quality vaccines for infants, as well as found to have fabricated production and inspection data on a rabies vaccine. China’s drug regulator will vet all vaccine makers, China Central Television reported.
Social media users on platforms WeChat and Weibo criticized what many said was lax enforcement by the regulator and government on vaccines. Worried parents also shared articles on how Chinese families can vaccinate their children in Hong Kong, while expressing concern about fake or poor-quality vaccines available in China.
Demand for vaccines in China is on the rise, driven by loosened family planning policies, increasing awareness and an aging population. The country’s 30 billion yuan ($4.4 billion) vaccine market is expected to double by 2021. The rapid growth of the vaccines market has also been tainted with safety issues, with consumers in an uproar in 2016 over expired vaccines being sold nationally.
China’s securities regulator is also investigating Changsheng over disclosure violations, the company said in a statement to the Shenzhen stock exchange on Monday. Changsheng, which has a market capitalization of more than $2 billion, said it will cooperate with the investigation. The stock dropped by the 10 percent daily limit as trading resumed following a suspension during morning trading. The shares fell that amount every day last week after the company disclosed the violations.
The biologics manufacturer said on July 19 it was fined about 3 million yuan ($500,000) for producing and selling poor quality infant vaccines, after China’s drug regulator last year probed violations in its manufacturing of a childhood vaccine that protects against tetanus, whooping cough and diphtheria. The company said it has stopped production of the infant vaccines.
That disclosure came after Changsheng said on July 16 that it halted production and recalled a rabies vaccine under orders from the government. The company, based in the northeastern city of Changchun, issued an apology to vaccine users and investors in a statement Sunday evening.
Li’s call for an industry-wide investigation caused stocks to tumble, with shares of many vaccine companies falling by the daily limit on Monday. Shenzhen Kangtai Biological Products Co., which produces vaccines against hepatitis B and pneumonia, lost 10 percent, as did Chongqing Zhifei Biological Products Co., the marketing partner in China for Merck & Co.’s Gardasil vaccine against the human papilloma virus that can cause cervical cancer. Both have seen their share prices jump more than 57 percent this year on growing demand for vaccines.
In the 2016 vaccines scandal, more than 200 people were detained after an investigation revealed improperly stored or expired vaccines had been illegally sold throughout the country. Product safety is a key issue in the country, where consumers still remember a tainted-milk scandal that poisoned thousands of children a decade ago. At the same time, China has overhauled regulations to bring innovative new drugs to the world’s second-largest pharmaceutical market.
— With assistance by Daniela Wei, Bruce Einhorn, and Jacob Gu...
OPINION: by Baabar
I wrote four articles on Oyu Tolgoi (OT) in the past. The “Oyu Tolgoi”, (Daily Newspaper, September 14, 2008), “Oyu Tolgoi on the way to its real owner” (Daily Newspaper, July 18, 2009), “Baron Robert” (Daily Newspaper, February 1, 2010) and “Oyu Tolgoi agreement is terrible” (Daily Newspaper, May 15, 2011). A global giant BHP conducted exploration around OT deposit and drilled several holes in hopes of finding copper; however, they retracted the license since they did not find anything. After this, a small company named Ivanhoe Mines tried its luck there. It is said that they drilled 150 holes and did not find anything and was about to give up when they got lucky and found copper deposit in depths of 600 meters. This was in 2001. First of all, this deposit containing 72 billion ounce of copper and 30 million ounce gold was the biggest luck for Mongolia. However, this vast wealth, which was not used until today, became the root of the biggest quarrel, argument and fight of this decade. If the deposit was not found, we could not have found it ourselves. Maybe, we would have lived peaceful to that extent?! There is a Mongolian proverb that says “do not tell rumors to a bad man, do not show water to a stubborn cow!” Ivanhoe is a junior that tried its luck. They took a risk in order to discover huge deposits and sell it to big companies that can develop mine in those deposits. That is actually the general principle of mining businesses. In my article “Baron Robert”, I compared him to Baron Ungern. Ungern is a crazy genius. He came to Mongolia to bring back Chinese, Mongolian and Manchurian emperors back to their thrones and stabilize the statehood and chased away the Chinese.
If there was no Ungern, current independence of Mongolia would have been very doubtful. However, Ungern was cursed by Mongolians for several generations for making Mongolia independent. This must be the game of fate. Robert Friedland also cursed by Mongolians for discovering this vast wealth in Mongolia which was never found before. “He obtained exploration license of OT which was abandoned by global giant BHP after conducting explorations that cost billions of dollars and found nothing. This is a fact. If he did not find anything, he would have gone bankrupt; however, he was lucky enough to find the largest copper deposit in the world from the Gobi desert of Mongolia. This is also a fact. Rather than Friedland, Mongolians were the lucky ones. Only a crazy person would take such a crazy step. If he did not find OT and took such an unbelievably brave risk, Mongolia would have remained as an abandoned country that nobody is interested in. This is also a solid truth. Friedland started promoting Mongolia as an unbelievably good country in the world in an attempt to save his huge investment and asset that was on the verge of bankruptcy. He lied through his teeth, saying “there are room for corruption in Mongolia”, “its laws are reliable”, “the judicial system is very solid”, “the Government keeps its promises” and “the Parliament is very good and the lawmakers are honest”, etc. This promotion of Mongolia, which was based on Friedland’s personal interest, attracted western companies and those who do not know much about Mongolia to invest here. This is also another fact. Robert is one of those people who brought the revival of new Mongolia in the 21st century.
Maybe, in some other places, he is called “Toxic Bob”; however, he did not cause any harm for Mongolians. On the contrary, he actually helped us. This is an inevitable truth. Business entrepreneurs like him, who takes risk in order to get profit, brought development of today’s world. This is the true history. However, his name is used as a curse in Mongolia. Cursing him is a big opportunity to demonstrate one’s patriotism. Anybody related to him, talked with him and/or smiled to him are identified as public enemy, and demonstrating one’s patriotism is one of the stages for our generation to get awards,” says the “Baron Robert” article. Since Ivanhoe cannot develop the giant deposit like OT on its own, it promoted it throughout the world and brought in a giant company called Rio Tinto. “Ivanhoe Mines-Mongolia” is a company which holds the license of the deposit established by Ivanhoe. Rio Tinto, which lent huge sum of money to this company, came to convert its loan into company shares. This was perceived as if foreigners were taking over Mongolia’s OT deposit. Hysteria that Mongolians, specifically Mongolian state, should rob 34 percent, or even 50 percent, of a foreign company took ground. Comments such as “why Mongolians have to give 66 percent of our wealth to others as a gift” became a trend. Actually, OT is Mongolia’s and nobody tried to take it away from us and nobody has such right. It was just a matter of arguing about and fighting over the shares of a foreign company established according to Mongolian law and has the mining license.
When Rio became a player on OT, “corruption” became impossible
“Someone literate cited from the internet and talked on TV about how Friedland is exploiting Mongolia to their skin. Friedland, who wanted to boost his company shares, exaggerated in Brazilian stock exchange, saying “it is possible to spend five dollars in OT and earn 100 dollars”. Unless it is a narco business, there is no such business with such high returns in the world. While he was trying to promote his company and sell the shares on the exchange, many people understood it as if he was selling our land for higher prices abroad. Exaggerated talks of Friedland about how OT is massively profitable were perceived by many Mongolians as though he is pocketing 95 percent and about to run away. It is a deposit that is not developed and used until today. Many socially-active people saw that it is possible to get rich by blackmailing. They did not want to understand common business practices and they do no need to. Their goal was different. A certain policy was developed to force Mongolian people to own a minimum of 50 percent of OT. Numerous street demonstrations were organized. It became inevitable that anybody who spoke with a sound logic will be identified as a traitor from the motherland.
The more stupid they acted, the more patriotic they have become. This company, who not only knows, but comply strictly with proper ethic and standards, was ready to cooperate with Mongolians unlike Friedland. They developed the deposit according to established international practices and standards. When they arrived in Ulaanbaatar, they met with some insane people, really. The negotiation was to be conducted not by the Government, but Parliamentary opposition in charge of this issue. They said, when Ivanhoe was about to exploit Mongolia, they were shocked by 68 percent windfall profits tax and this way, they secured rights to get 30 percent stake ownership for the Government. Mongolia obtained 30 percent stake and then talked about having them finance it. Then the 30 percent stake ownership felt too little and they wanted to get 50 percent and said we will not be responsible for the financing. They often reminded the investors to get out of Mongolia.” This is what I wrote in the article “Oyu Tolgoi”. In 2009, Rio Tinto, Ivanhoe Mines and the Government of Mongolia concluded a Preliminary agreement on three partite ownership of the OT. As for Ivanhoe, they sold half of their shares and were interested in selling the remaining shares at a higher price and they actually sold it soon after.
As for the Government of Mongolia, ownership of this company’s shares was a very illogical matter. First, digging earth is not the Government’s work. It would lead to large corruption and bribery cases. Secondly, it was possible to get half of OT’s revenue or more from taxes and royalties only, without lifting a single finger. There was no use of ending up in debt and taking a risk. However, the Parliament demanded and legalized the Government to own a minimum of 34 percent of the Ivanhoe Mines Mongolia company, borrowing from its future profits. Such huge Western investment in Mongolia was a big surprise for Russia and China. During his visit to Mongolia, Russian President Putin inquired his ambassador about this. That ambassador did not know anything about this. So he was removed immediately. Later, when I visited Moscow, I heard that the Ministry of Foreign Affairs and National Security officials complained that Mongolians did not include them in the OT deal. Chinese also did not notice that large global mining company was aiming to make a huge investment in Mongolia. The fact that a large amount of Western investment was decided without the participation of these two giant neighbors means a real danger to the buffer zone.
If the Parliament was to confirm its decision to allow in Rio Tinto, this could have been rejected by the lawmakers’ votes. I have written an article “Oyu Tolgoi on the way to its real owner” to explain that western investment has been stalled under implicit and strong pressure of China, which was the only neighbor who can invest instead of them, and that the real “owner” of OT was China. Chinese were really trying to get the shares of Ivanhoe Mines at a good price. “During the last six years, Ivanhoe Mines Mongolia, sat down behind the negotiation table with the Government three times. A corruption method that stretched to three Parliament was perfected in this long period. There is an unconfirmed report among the public that some influential members of the first Parliament, especially, some Government members received large bribery from the Ivanhoe Mines. Based on this, the next Parliament considered they were discriminated and began to demand their shares in various forms. Over the time, it became clear that some groups of the Parliament lawmakers were organizing almost an armed attack and protest as the number of racketeer-patriots against the foreign companies was growing. It is documented that some demonstrations were led by a Cabinet member who demanded money.
However, when Rio Tinto, with its good reputation, became a player on OT, “corruption measures” became impossible. With a sudden global economic downturn, commodity prices fell sharply and shares of mining companies plunged. This became a good opportunity for China, which needed commodity and raw materials for its rapid development. They managed to increase their hard currency reserve to USD 2 trillion and began to acquire mining companies as they were cheaper. It was agreed that China would invest nearly USD 18 billion in Rio Tinto; however, it failed and that became almost a national tragedy that went beyond the business circle and turned into a political conflict. Mongolia’s economy, which depends solely on copper export, deteriorated sharply because of the crisis and its budget deficit reached hundreds of millions of dollars. Therefore, Mongolia negotiated with China to get USD 3 billion loan. This deposit were to turn Mongolia into another Kuwait in a short time and the lawmakers knew this very well. However, there was one bad disadvantage. A group which made such important decision will not get any direct benefit. This was demanded during the last six years directly and indirectly and failed”.
That is what I wrote in the article “Oyu Tolgoi on the way to its real owner”. During the OT negotiation, the three parties were always in conflict with each other. Especially, the conflict between Ivanhoe Mines and Rio Tinto was very serious; however, Mongolian side saw them as one party. Generally, the agreement was different than the international practices. Three ministers that represented Mongolian Government had no relevant experience and knowledge. Actually, there was not a single person with such relevant knowledge and experience in Mongolia. According to international practices, not only the government, which owns the wealth, but also private companies need to hire experienced companies to conclude such agreements. It was definitely not a simple matter that ministers and officials could sit behind the negotiation table. For writing these, I made many enemies such as racketeer, corrupt officials, blackmailers etc. I do not want to name them as enemies of Mongolia that betrayed national interest. Actually, they do not have such concepts. That is just how they are. They are born like that and therefore, what can we do? They are just trying to live in the given circumstances. Motherland and the future of the country are too holy and alien to them. I will tell a new story of what happened to Oyu Tolgoi four years after signing the agreement.
China's ambitious bid to boost electric vehicles toward a battery-powered future can dramatically drive up demand for metals like lithium, cobalt, copper and nickel, industry insiders said.
"The rising EV (electric vehicle) market has driven up demand for some metals ... We expect the trend to continue," said Zhu Yi, senior analyst of metals and mining at Bloomberg Intelligence
In 2015, China overtook the United States to become the world's biggest market for electric cars, providing a huge domestic market for batterymakers.
"The market has priced in the booming demand from EVs at a pretty early stage. We expect the real commissioning of EVs (to meet the projected demand) may happen in another 5-10 years, once the mass production of EVs starts," Zhu said.
Many international mining firms like BHP and Vale are looking to redraw their global layout to grab market share.
"China's efforts to reduce pollution will drive the growth of new energy vehicles, the production and sales of which are expected to reach 15 million units in 2030," said Fabio Schvartsman, CEO of Vale SA, a Brazilian mining behemoth.
"This will positively affect our base metal business, since the majority of our nickel products are very well suited to electric vehicles. We also produce cobalt and copper, which are also critical elements for the electric vehicle and battery production process."
Agreed Vicky Binns, vice-president of marketing for minerals with BHP. Copper, she said, is expected to be a big winner from the electrification of the light duty vehicle fleet as the Chinese economy will likely boost demand for the red metal.
"The reason we like EVs is that an EV contains on average of around four times as much copper as a conventional medium-size car, around 80 kg versus around 20 kg," she said.
Among the range of possibilities, BHP's mid-case estimate is the electric vehicle fleet will rise toward 230 million in 2035 and to around three-quarters of a billion in 2050.
With the world's largest number of electric vehicle manufacturers and the largest network of charging points, China has set a goal of selling 2 million new energy cars a year by 2020.
Eurasian Resources Group, the international metals and mining company, also believes in the opportunities presented by China's policy to promote manufacture and use of new energy cars. The company's major products such as ferrochrome, cobalt and copper, can support the emerging industry.
"We believe that the cobalt market still has a fantastic potential. We expect to see a strong primary uptrend in the next few years," said Benedikt Sobotka, chief executive officer of ERG.
Besides expanding its sales footprint in China, ERG is forging partnerships with Chinese companies. ERG's affiliate Metalkol SA has recently signed a contract with China Nonferrous Metal Industry's Foreign Engineering and Construction Co Ltd for capacity expansion of ERG's mine project in the Democratic Republic of the Congo.
At full capacity, the project will be able to supply up to 20,000 metric tons of cobalt annually to the global market. "This is enough to build 2.6 million electric vehicles," said Sobotka....
Ulaanbaatar/MONTSAME/ On July 20, Mongolia’s Minister of Mining and Heavy Industry D. Sumiyabazar met the UK delegates led by Rt. Honorable Mark Field, MP and Minister of State for Asia and the Pacific of the Foreign Affairs and Commonwealth Office.
At the meeting, D. Sumiyabazar emphasized, “This year marks 55th anniversary of the establishment of diplomatic relations between Mongolia and the UK. We are satisfied with expanding bilateral ties and cooperation in education, investment and trade spheres.” The Minister also spoke that works of putting Mongolia’s major mining projects into economic circulation and attracting financial sources from internal and external capital markets are in the action.
During its spring session, Mongolia’s Parliament made a decision to trade a certain part of the shares of Tavantolgoi Project at domestic and foreign stock exchanges, added Minister D.Sumiyabazar.
Mr. Mark Field thanked for audience and invited the Minister to take part in MINEX Eurasia Conference and Mines and Money to be organized in London in November this year.
Mongolian mountaineer B.Gangaamaa successfully climbed to the summit of K2, second highest peak in the world after Mount Qomolangma, becoming the first person from the country for the feat.
Situated on the China-Pakistan border, the 8,611-meter high K2 is the highest point in the Karakoram range. Known as the Savage Mountain, K2 is considered to be one of the most difficult peaks to scale as about one person dies on the mountain for every four who're trying to reach the summit.
Currently, only 300 climbers have overcame the summit, while 77 have died in the attempt.
Here Are the Top 10 Richest People in Mongolia and their Net worth not forgetting their source of wealth. The richest people in Mongolia: How they became Mongolian Billionaires and millionaires. The following Forbes list of Mongolian billionaires is based on an annual assessment of wealth and assets compiled and published by Forbes magazine in 2018. The FORBES List is based on an estimated wealth taking company shares, real estates, art objects or luxury goods such as yachts into consideration.
1. Odjargal Jambaljamts
Richest man in Mongolia Odjargal Jambaljamts estimated net worth is US $ 2.6 billion and he is ranked at No. 1 in the list of top 10 richest man in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018. Mr. Odjargal Jambaljamts serves as the Executive Chairman of Mongolian Mining Corporation and has been its Executive Director since May 18, 2010.
From 1989 to 1991, Mr. Jambaljamts was an automation engineer at the Energy Authority of Ulaanbaatar, Mongolia. Mr. Jambaljamts has over 14 years of experience in exploration and/or extraction activities
Chinbat Lhagva estimated net worth is US $ 1.9 billion and he is ranked 2nd in the list of top 10 richest people in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018. He does not have any political affiliations.
Chinbat L is the General Director Mongolian television and General Director of the Gatsuurt Group. Also, he is a member of the board of Directors of “Mongolian agronomy entrepreneurs association”. He founded the Gurvan Gol JSC, a geological mining company, with his colleagues in 1998, and was a shareholder in the company.
Battulga Khaltmaa estimated net worth is US $ 1.5 billion and he is ranked at No. 3 in the list of top 10 richest people in Mongolia as given the impression in financial magazines such as Forbes and Bloomberg 2018. Khaltmaagiin Battulga is a Mongolian politician and President of Mongolia.
Battulga Khaltmaa served as Member of the State Great Khural from 2004 to 2016 and Minister of Roads, Transportation, Construction and Urban Development from 2008 to 2012.
Nyamtaishir B has been also listed as one of the wealthiest man in Mongolia as at 2018 due to his massive net worth. Multi Billionaire Nyamtaishir B estimated net worth is US $ 1.4 billion and he is ranked at No. 4 in the list of top 10 richest man in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018.
Multi Billionaire Batbold Sukhbaatar estimated net worth is US $ 1 billion and he is ranked at No. 5 in the list of top 10 richest man in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018.
Sükhbaataryn Batbold is a Mongolian politician who was Prime Minister of Mongolia from 2009 to 2012, as well as General Secretary of the Mongolian People’s Party.
Bold Luvsandanzan estimated net worth is US $ 800 million and he is ranked at No. 6 in the list of top 10 richest people in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018.
Bold Luvsandanzan is the chairman of the Inter-Parliamentary friendship group of Mongolia-Switzerland and Vice-Chairman of the Inter-Parliamentary friendship group of Mongolia-Japan. Since 2014 Chairman of the Inter-Parliamentary friendship group of Mongolia-Germany.
Baatarsaikhan Tsagaach estimated net worth is US $ 800 million and he is ranked at No. 7 in the list of top 10 richest people of Mongolia as given the impression in financial magazines such as Forbes and Bloomberg 2018.
Mr. Ts. Baatarsaikhan serves as the President of the Tavan Bogd Group. Mr. Baatarsaikhan is the Founder of Tavan Bogd Trade Co., Ltd. He has been a Director of Khan Bank LLC since March 2009.
Boldbaatar Tserenpuntsag estimated net worth is US $ 800 million and he is ranked at No. 8 in the list of top 10 richest men in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018. Mr. Tserenpuntsag earned a master’s degree in Engineering from the Elecrotechnical Institute of Telecommunications in Leningrad, Russia.
Mr. Boldbaatar Tserenpuntsag is the Chairman and Co-Founder at Newcom Group. Prior to founding the firm, Mr. Tserenpuntsag was the First Deputy Director at the Mongolian Telecommunications Authority and a Member of the first Mongolian Parliament which was elected after the 1990 revolution. He also served as the General Director of the Mongolian Telecommunications Company.
Batkhuu Gavaa estimated net worth is US $ 700 million and he is ranked at No. 9 in the list of top 10 richest people in Mongolia as given the impression in financial magazines such as Forbes and Bloomberg 2018. Batkhuu.G, a former Member of Parliament for the Democratic Party (DP) and his brother Batsaikhan.P own the Media Group LLC with 50:50 shares.
Batkhuu Gavaa holds a Major in engineering and economics. He is a former Member of Parliament, Vice-Speaker of the Parliament, and former Minister of Road, Transport, and Tourism of Mongolia. He is a member of the Democratic Party (DP).
Erdenebileg Doljin estimated net worth is US $ 700 million and he is ranked at No. 10 in the list of top 10 richest man in Mongolia as appeared in financial magazines such as Forbes and Bloomberg 2018. Mr. Doljin Erdenebileg has been the Chairman and Director of Trade and Development Bank of Mongolia LLC since December 28, 2006.
Mr. Erdenebileg serves as a Member of the Representative Governing Board of Ulaanbaatar City Bank. He holds a Bachelor’s in Law from the Institute of Law in Mongolia and a Master’s in Business Administration from the Academy of Management in Mongolia.
For the first five months of 2018 Irkutsk Region has exported to Mongolia chicken eggs valued at $1.8 mln., it is a 57% increase compared to the same period of the last year.
From January to May, 2018 Russia’s export of chicken eggs has amounted to $10.4 mln.
Irkutsk Region has accounted for 17% of national chicken eggs export and ranked 2nd among Russian regions exported this production. The leader of chicken eggs export is Leningrad region (39%)
According to the National Statistical Office’s Social and Economic Situation report, a total of 163,000 entities were registered in the Statistical Business Register as of February 2018.
Currently, 50.9 percent (83,100) of all registered entities are operational, thus classified as active enterprises. Out of these active entities, 85.9 percent employ up to nine people, while three percent have more than 50 employees.