1 FOREIGN RELATIONS OF MONGOLIA’S ROAD TRANSPORT SECTOR BROADENING WWW.MONTSAME.MN PUBLISHED:2019/02/21      2 MONGOLIA EXPRESSES READINESS TO CONTRIBUTE TO STRENGTHENING ASIA-EUROPE COOPERATION WWW.MONTSAME.MN PUBLISHED:2019/02/21      3 OYU TOLGOI FUNDED 35.1 KM ROAD OPENS IN KHANBOGD WWW.GOGO.MN PUBLISHED:2019/02/21      4 POLYMER BITUMEN TO BE DOMESTICALLY PRODUCED WWW.MONTSAME.MN PUBLISHED:2019/02/21      5 KHURELBAATAR CHIMED: 319 ENTITIES DREW LOANS FROM TWO FUNDS WWW.ZGM.MN PUBLISHED:2019/02/21      6 CONSTRUCTION OF TAVANTOLGOI-GASHUUNSUKHAIT ROAD TO BE INTENSIFIED WWW.MONTSAME.MN PUBLISHED:2019/02/20      7 OVER 30 MEASURES PLANNED FOR REDUCTION OF ENVIRONMENTAL POLLUTION WWW.MONTSAME.MN PUBLISHED:2019/02/20      8 MONGOLIA SAYS IT EARNS OVER 169 MLN USD FROM COAL EXPORTS TO CHINA IN JAN WWW.HELLENICSHIPPINGNEWS.COM  PUBLISHED:2019/02/20      9 RUSSIA’S GAZPROM TO START CHINA GAS PIPELINE BY DECEMBER 1 WWW.RT.COM PUBLISHED:2019/02/20      10 MONGOLIA'S FOREIGN TRADE UP 41.6 PCT IN JAN. WWW.XINHUANET.COM PUBLISHED:2019/02/20      УГСАРМАЛ ОРОН СУУЦНЫ ДУЛААЛГАД ЗОРИУЛЖ 12.7 ТЭРБУМ ТӨГРӨГИЙГ УЛСЫН ТӨСВӨӨС ГАРГАХААР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/21     2018ОНД ЦАГААН БУДАА , ЭЛСЭН ЧИХЭР , ТАХИАНЫ МАХНЫ ИМПОРТ 24-32 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ДЦС IV: 2018 ОНД НИЙТ АШИГ 4.7 ДАХИН ӨСӨЖ , 4.48 ТЭРБУМ ТӨГРӨГ БОЛСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ТУСГАЙ САНГУУДААС ГАРГАСАН ЗЭЭЛИЙН 100 ОРЧИМ ТЭРБУМ ТӨГРӨГ ХУГАЦАА ХЭТЭРСЭН ӨР БОЛЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     МОНГОЛ УЛСЫН БОРЛУУЛАЛТЫН МЕНЕЖЕРҮҮДИЙН ИНДЕКС СҮҮЛИЙН 12 САРД АНХ УДАА УНАЛТЫН БҮСЭД ШИЛЖИВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     2018 ОНД ХАМГИЙН ЧИНЭЭЛЭГ БҮЛГИЙН ХЭРЭГЛЭЭ ЯДУУ БҮЛГИЙНХНЭЭС 5.1 ДАХИН ИХ БАЙВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     ХОВД ГОЛД ОСОЛДСОН 6 НАСТАЙ ХҮҮХДИЙН ЭРЛИЙГ ЗОГСООЛОО WWW.MONTSAME.MN НИЙТЭЛСЭН:2019/02/21     ДБНХ-НООС П.ОРХОНЫ БАРИЛДАХ ЭРХИЙГ 4 ЖИЛЭЭР ХАСАВ WWW.MONTSAME.MN  НИЙТЭЛСЭН:2019/02/21     УУХҮЯ: II САРЫН БАЙДЛААР НИЙТ НУТАГ ДЭВСГЭРИЙН 5.6 ХУВЬД АШИГТ МАЛТМАЛЫН ЛИЦЕНЗ ОЛГОСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/20     300 ОРТОЙ ТӨРӨХ ЭМНЭЛГИЙН БАРИЛГЫН АЖИЛ 80%-Д ХҮРЧ ГУРАВДУГААР САРЫН 1-НЭЭС ДУЛААНД ХОЛБОГДОХООР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/20    

Events

Name organizer Where
“Doing business with Mongolia”, “UK Investors show” бизнес хөтөлбөр March 27-April 02. 2019 ЛОНДОН ХОТ, ИХ БРИТАНИ Mongolian Business Database London UK
SYMPOSIUM ON GLOBAL MARKETS Nationalism and Protectionism: The United States in the International Arena June 17-18, 2019 The Center for American and International Law Plano, Texas, USA The Center for American and International Law (CAILAW) Plano Texas June 17-18 2019
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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Australia’s coal sector hopeful www.mining.com

A new report prepared by Commodity Insights for the Minerals Council of Australia forecasts that the demand for metallurgical coal to 2030 will grow by over 95Mt, from 275Mt in 2017 to 372Mt in 2030; this is a 2.3% growth or around 7.5Mt per annum.

Such a growth would be the equivalent of a large export mine being added to the market every year to 2030, the report states, and it represents approximately 56% of current Australian met coal exports.

The rise would be led by China and India, particularly because of the latter's solid-to-strong economic growth, along with ongoing industrialisation and urbanisation, both of which drive demand for steel. China’s continued solid steel production will also push up the demand for coal, as well as the inability of its domestic production to keep pace with demand, something that will also happen in India.

“Even based on the conservative assumptions used in the Commodity Insights report, this demand growth represents a major opportunity for our world-class coal producers and the Australian economy,” Minerals Council of Australia CEO, Tania Constable, said in a media statement.

The Oceanian country is the world’s fifth largest producer of black coal, sitting behind China, India, the USA and Indonesia. Most of the production from Down Under is exported on the seaborne market, with 147Mt of metallurgical coal sold abroad in 2017. Despite being producers themselves, China and India are Australia’s largest markets for metallurgical coal, accounting for over 50% of volumes and followed by Japan, South Korea and Taiwan.

According to Commodity Insights, the reasons why the Australian black mineral is sought after are its quality, particularly when extracted from the Queensland’s Bowen Basin; the end-user mine equity; proximity to key Asian markets; and the key off-take market stability.

“The underlying demand stability from the key importers of Australian metallurgical coals (Japan, Korea and Taiwan), driven largely by significant steel production in these regions, provides substantial underlying support for production security. The significance of their dependency on Australian coals is further evidenced by their mine equity participation and/or ownership,” the research document reads.

For Tania Constable, this information should be seen as good news for all Australians who benefit from the royalties and company taxes paid by the country’s met coal producers.

But to be able to really reap the benefits of future developments in the global coal market, Australia has some homework to do. According to the report, the country needs to address issues such as the lengthy and costly approval processes of coal projects and the sheer volume of red and green tape that miners have to deal with. It also needs to add or expand mines and infrastructure – particularly rail – in a timely fashion.

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Foreign Minister D.Tsogtbaatar meets MP, UK Trade Envoy to Mongolia Julian Knight www.montsame.mn

Ulaanbaatar /MONTSAME/ Minister for Foreign Affairs of Mongolia D.Tsogtbaatar is visiting United Kingdom on October 10-12 to participate in the “Illegal Wildlife Trade” international conference organized by the British government. During his visit in the UK, Minister D.Tsogtbaatar met with Mr. Julian Knight MP, the UK Prime Minister’s Trade Envoy to Mongolia.

At the meeting, both sides have expressed opinions on the current state of trade and economic cooperation and exchanged their ideas on how to further improve bilateral relations of Mongolia-UK on future actions in both international and regional affairs.

Minister D.Tsogtbaatar underlined that Mongolia has intentions to expand and develop friendly ties with the UK in all sectors including trade, economy and investment and he has expressed an interest to retain the current European Union’s Generalised System of Preferences Plus (GSP+) trade arrangement and facilitations for Mongolian exporting products to the UK market after Brexit.

Source: The Ministry of Foreign Affairs of Mongolia

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Mongolia exports 27 mln tons of coal so far this year www.xinhuanet.com

ULAN BATOR, Oct. 10 (Xinhua) -- Mongolia exported a total of 27 million tons of coal worth 2.1 billion U.S. dollars in the first three quarters of this year, official data showed Wednesday.

The figure is an increase of 1.5 million tons from the same period last year, the Mongolian Customs General Administration (MCGA) said.

Coal is Mongolia's main export. The landlocked Asian country exported 33.3 million tons of coal in 2017, official data from the Mongolian Ministry of Mining and Heavy Industry showed.

The country aims to increase coal exports to 40 million tons in the coming years.

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Mongolia's foreign trade up 24.9 pct in first 3 quarters www.xinhuanet.com

ULAN BATOR, Oct. 10 (Xinhua) -- Mongolia's foreign trade volume rose 24.9 percent year on year to 9.6 billion U.S. dollars in the first three quarters of this year, official data showed Wednesday.

Mongolia's exports increased 15.3 percent to reach over 5.2 billion U.S. dollars while imports surged 39 percent to more than 4.3 billion U.S. dollars in the January-September period, resulting in a trade surplus of 931.7 million U.S. dollars, the Mongolian Customs General Administration (MCGA) said.

The mining industry accounted for 85.9 percent of total exports, according to the MCGA.

The MCGA said that Mongolia has traded with a total of 151 countries in the first three quarters and exported its goods and services to 71 countries among them.

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Digital signature introduced in banking sector www.montsame.mn

Ulaanbaatar /MONTSAME/ On October 10, Deputy Governor of the Bank of Mongolia (BoM) B.Lkhagvasuren received the first e-token for the digital signature system from Tridum e-Security LLC, which carried out a project on digitizing financial services in Mongolia and introduced digital signature system under the launch of Digital Payment campaign, running between October 10 and December 10.

Mr. B.Lkhagvasuren said “BoM, in accordance with its legal obligation to coordinate payment system in Mongolia has been providing card settlement so far. Technological development in the banking sector allows to fulfill the objective of delivering simpler, faster and more secure financial services to the customers. Thus, in order to promote this type of fintech service, we are launching this campaign. Now, Mongolia’s banking system is being digitized through the introduction of digital currency and smart payment card even though we started using payment cards just recently.”

Financial sector’s quick adaptation to the technological revolution is creating an opportunity to make banking service simpler, faster and more accessible to the citizens, added the Deputy Governor.

E.Anar, Director General, Payment Systems Department at BoM emphasized that introduction of the digital signature system enables fast and secure information exchange between BoM and the commercial banks and he showed the system’s way of working with his own signature as an example.

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Mongolian mortgage lending decreasing www.news.mn

The issuing of mortgage loans has been decreasing. According to a statement by the Central Bank of Mongolia, banks issued a total of MNT 203.2 billion in mortgage loans to 2724 new borrowers in the first nine months of 2018. A total of MNT 115 billion for financing of mortgage loans in the 2019 State Budget will be available for a narrow group of 1150 borrowers.

When the Democratic Party was in power, over 90,000 people received mortgage loans in 2013-2014 under the Price Stabilising Programme implemented by the Bank of Mongolia.

Currently, a total of 270 thousand households live in Ulaanbaatar’s ger districts; 60 percent of them can afford participate in the mortgage programme: at the same time there are 34 thousand apartments which are standing empty and cannot be sold.

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‘Fuel importer’ father and son arrested www.news.mn

Mongolian police arrested R.Ganzorig, executive director of ‘Magnai Trade’, also known as the MT fuel importing company, along with his son on 8 October. They were released by decision of the First Court yesterday (9 October) after their lawyer made a complaint.

According to a police source, they are being investigated for money laundering and fraud.

Their arrest came after fuel prices increased by MNT 50-250 in Mongolia; ‘Magnai Trade’ is one of the country’s biggest fuel importers.

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Flour producers to be granted discounted loan on wheat purchase www.zgm.mn

Chief of Cabinet Secretariat Zandanshatar Gombojav presented the results of Prime Minister Khurelsukh Ukhnaa’s visit to Tuv, Selenge and Darkhan-Uul aimags during the Cabinet meeting yesterday and ordered to study the opportunities to grant interest rate discount to flour producers on wheat purchase. In case a situation emerges to set quota on wheat and flour imports, the Cabinet decided to favor domestic flour production. Related ministers were also ordered to involve greenhouse farmers to the nighttime electricity tariff discount, enable rail transport to grain and increase the number of harvest trucks. Furthermore, the Cabinet resolved to repair the harvest route road of Selenge aimag from the Government’s reserve fund and mobilize military units for harvesting. Minister of Health Sarangerel Davaajantsan will be responsible for funding the current and fixed costs steered from the increased workplaces following the completion of Health Care Center expansion of Bayangol soum, Selenge aimag.

ADVANCE PASSENGER PROCESSING TO BE INSTALLED AT NEW AIRPORT

Later on, the Cabinet decided to install the Advance Passenger Processing (APP) system at the new airport in Khushig Valley. Officials viewed that APP will improve border inspections, information exchange of public bodies and national capacity to fight against terrorism. The APP confirms the passenger’s information from the Wanted Persons List of Interpol, No Fly List and other databases, such as visa, and send the information to local law enforcers within three seconds once the passenger purchases the flight ticket. The system is used in over 70 countries around the globe.

COMPLETION OF GOVERNMENT ACTION PROGRAM STANDS AT 47 PERCENT

As of the first half of this year, the completion of the Government’s Action Plan for 2016-2020 stood at 47.2 percent.

Particularly: Policy on Overcoming Economic Difficulties-55 percent;

Policy on Sustainable Economic Growth-39.8 percent;

Social Policy-46.5 percent;

Environmental and Green Development Policy-44.1 percent;

Governance Policy - 49.7 percent

All government bodies were ordered to intensify the sluggish actions and complete the target level by the end of this year. Additionally, actions that are slowing due to lack of investment will be financed from the state budget, foreign loan aids, as well as private sector investment.

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IMF's Lagarde warns trade, currency wars could be detrimental for growth www.reuters.com

NUSA DUA, Indonesia (Reuters) - International Monetary Fund Managing Director Christine Lagarde on Thursday warned countries of the perils of a trade or a currency war, saying they could be detrimental to global growth and hurt “innocent bystanders.”

Lagarde urged countries to “de-escalate” trade frictions and fix global trading rules, rather than abandon them.

“We certainly hope we don’t move in either direction of a trade war or a currency war. It will be detrimental on both accounts for all participants, Lagarde told a news conference during the annual meetings of the IMF and World Bank in Indonesian resort island of Bali.

“And there would also be lots of innocent bystanders.”

China and the United States have slapped tit-for-tat tariffs over the past few months, rattling financial markets as investors worried the escalating trade war could knock global trade and investment.

On recent yuan declines, Lagarde said they were mainly driven by the strength of the dollar, noting that it has not depreciated as much against a basket of currencies.

“We’re seeing more and more countries, China included, let their currencies fluctuate,” Lagarde said.

The yuan currency CNY=CFXS has faced strong selling pressure this year, losing over 8 percent between March and August at the height of market worries, though it has since pared losses as authorities stepped up support.

A U.S. Treasury official on Monday repeated that the Trump administration was concerned about the yuan’s recent weakening as the department prepares a semi-annual report on currency manipulation due out next week.

US President Donald Trump has accused China of deliberately manipulating its currency to gain a trade advantage, claims Beijing consistently rejected.

“We have supported the move of China toward (currency) flexibility,” she said, adding that the IMF has encouraged Chinese authorities to “go down that path.”

Lagarde urged China to follow through on the IMF’s recommendation to continue moving toward a system that allows the yuan to move flexibly.

She declined to comment on the recent market rout, but said U.S. equities and overall stock prices “in general have been extremely high.”

Additional reporting by Yawen Chen; Editing by Shri Navaratnam

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IndustriALL and Rio Tinto conduct joint mission at Oyu Tolgoi mine in Mongolia www.industriall-union.org

Global social dialogue between IndustriALL Global Union and Rio Tinto took a significant step forward when both parties undertook a joint mission to Rio Tinto’s massive Oyu Tolgoi copper and gold operations and underground expansion in the remote South Gobi desert of Mongolia.

The joint mission took place from the 17th - 22nd September 2018. Michael Gavin, Rio Tinto’s group head of employee relations, and Glen Mpufane, IndustriALL’s mining director, led their respective delegations. The IndustriALL delegation included regional staff, representatives of local unions, and journalists from Dagens Arbete, the magazine of Swedish affiliate IF Metal.

A major objective of the mission was to evaluate Rio Tinto’s environmental, social and governance strategies. The operation has not been without controversy. During the mission, consultation was held with the herder community and their elders, the local community, the governor of Khanbogd sum, permanent and contractor employees, and NGOs critical of the operation.

Mongolia is richly endowed in natural resources and is heavily dependent on mining for its economic prospects. Oyu Tolgoi is the jewel in Rio Tinto’s crown, providing the company with an opportunity to demonstrate its commitment to responsible mining. Rio Tinto took the opportunity provided by the results of the Responsible Mining Index (RMI) to invite IndustriALL to Oyu Tolgoi.

IndustriALL participates in the RMI, which defines responsible mining as “…mining that demonstrably respects the interests of people and the environment, and contributes discernibly and fairly to broad economic development of the producing country.” Rio Tinto achieved one of the ten strongest results in four different areas: economic development, business conduct, working conditions and environmental responsibility.

IndustriALL held a workshop with Mongolian affiliate, the Federation of Energy, Geology and Mining Workers' Unions, for the leadership and over 40 representative shop stewards.

There are 16,117 workers at Oyu Tolgoi, split between a permanent Mongolian workforce of about 3,000 and a largely Mongolian and expatriate contractor workforce, involved in the underground expansion project. A major skills transfer from expatriates to Mongolians is a defining feature of skills development and training.

A large percentage of the Mongolian contracted workforce is set to be made permanent when the underground production comes on line. Evidence of the skills transfer is the large percentage of women operating massive hauling trucks at the open pit mine, and Mongolians holding critical senior management positions.

Glen Mpufane observed:

“The social license to operate is not a given, but must be earned, through transparency and trust in dialogue. Responsible mining is the pathway to obtaining that license”.

The conversation with Rio Tinto over its sustainability performance continues to include other global operations, for example QMM in Madagascar, RBM in South Africa, and the Rössing Uranium mine in Namibia.

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