1 FRONTIER'S "INVEST MONGOLIA TOKYO 2018" WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/09/19      2 U.S.-CHINA TRADE TUSSLE IS CREATING WINNERS IN SOUTHEAST ASIA WWW.BLOOMBERG.COM PUBLISHED:2018/09/19      3 YUSAKU MAEZAWA: THE JAPANESE BILLIONAIRE WHO WANTS TO FLY TO THE MOON WWW.BBC.COM PUBLISHED:2018/09/19      4 MONGOLIAN FOREIGN MINISTER RECEIVES CARDANO BLOCKCHAIN FOUNDER WWW.NEWS.MN PUBLISHED:2018/09/19      5 ERDENE ANNOUNCES RESOURCE ESTIMATE FOR THE HIGH-GRADE KHUNDII GOLD PROJECT WWW.GLOBENEWSWIRE.COM PUBLISHED:2018/09/19      6 RUSSIAN GIANT COPPER PROJECT IN TALKS TO RAISE $1.25B WWW.REUTERS.COM PUBLISHED:2018/09/19      7 MONGOLIA GRADUALLY WITNESSING PROGRESS IN TOURISM WWW.TRAVELANDTOURWORLD.COM PUBLISHED:2018/09/19      8 CHINA, MONGOLIA, RUSSIA PUSH FOR ‘ECONOMIC CORRIDOR’ WWW.RUSSIABUSINESSTODAY.COM PUBLISHED:2018/09/19      9 EXPERTS FROM CHINA, MONGOLIA, RUSSIA TALK ON CONSTRUCTION OF ECONOMIC CORRIDOR WWW.XINHUANET.COM PUBLISHED:2018/09/19      10 PM U.KHURELSUKH PAYING AN OFFICIAL VISIT TO THE UNITED STATES WWW.MONTSAME.MN PUBLISHED:2018/09/18      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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Mongolia mining corruption probe snares former PM www.ft.com

A Mongolian investigation into allegations of corrupt mining payments has ensnared a former prime minister who has been asked to return from the US to answer prosecutors’ questions.

Saikhanbileg Chimed, prime minister for two years until 2016, is the highest-ranking official to have been implicated in the probe, which dates from revelations in the leaked Panama Papers of transfers to a Swiss bank account in the name of Bayartsogt Sangajav, the former Mongolian finance minister. Swiss authorities froze the account in January.

Over the weekend, Mongolian authorities arrested Mr Bayartsogt and two other former officials with ties to Erdenes Mongol, the state-owned holding company set up to contain Mongolia’s shares in mining projects including the Oyu Tolgoi copper mine and the Tavan Tolgoi coking coal deposit. They also requested Mr Saikhanbileg return from the US. Mr Saikhanbileg could not be contacted for comment.

Turquoise Hill, the Canada-listed subsidiary of Rio Tinto which is developing a $5bn underground stage of the Oyu Tolgoi mine, has previously said it received a request for more information by the Mongolian anti-corruption authorities.

The request for information concerned the “possible abuse of power by authorised officials” during the negotiation of the 2009 Oyu Tolgoi investment agreement, shortly after Rio took over negotiation of the Oyu Tolgoi project from Ivanhoe Mines, the original developer.

Mr Saikhanbileg signed the agreement to develop the second, underground phase of the mine, which economists said was necessary for the Mongolian government to meet its budgetary commitments. Negotiations over the first phase of the giant mine were also fraught, with rancour on both sides and repeated changes to Mongolia’s mining investment regime, once the most liberal in the world.

Swiss prosecutors have said the investigation was not directed against Rio or its employees. Rio Tinto declined to comment on Tuesday.

“The Mongolian government and public is slowly beginning to build up capacity to analyse its relationship with Oyu Tolgoi and with Rio Tinto as an investor and to ask questions about that relationship in the process,” said Julian Dierkes, an expert on Mongolian civil society at the University of British Columbia.

Mr Saikhanbileg’s departure from office in 2016 was marred by the contentious $400m purchase of nearly half of the giant Erdenet copper mine in Mongolia’s north from Russian holding company Rostec, which returned the entire mine to Mongolian ownership.

Erdenet long had symbolic value as the Soviet Union’s most important investment in Mongolia but has been plagued by allegations of mismanagement and corruption. The previously unknown private company that bought the stake, Mongolian Copper Corp, is fighting the Mongolian government’s decision in February 2017 to nationalise the stake bought from Rostec.

Bayanjargal Byambasaikhan, former chief executive of Erdenes Mongol, told the Financial Times in 2016 that the holding company would have trouble establishing control over the state’s share in Erdenet due to the complexity of the politics surrounding that mine. Mr Byambasaikhan was one of the people arrested this weekend.

In a statement on Tuesday, the Business Council of Mongolia, an organisation chaired by Mr Byambasaikhan, noted that he had returned to Mongolia from a posting at the Asian Development Bank in 2010, after the 2009 investment accord for the Oyu Tolgoi mine. “The BCM Executive Committee has full confidence in Byambasaikhan’s integrity,” it said.

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Romania expresses willingness to cooperate in energy sector www.news.mn

Ulaanbaatar /MONTSAME/ On April 2, Deputy Minister of Energy T.Gantulga met Non-resident Ambassador of Romania to Mongolia Basil Constantinescu.

Ambassador Basil Constantinescu expressed Romanian willingness to bring bilateral ties at higher level and revive cooperation between nuclear energy agencies of the two countries which ended 10 years ago and to conduct big research works.

Deputy Minister T.Gantulga put cooperation proposals including training young specialists working in energy sector to European countries, conducting survey on power transmission line nationwide, formulating feasibility study or master plan, building a hydro-electric station and introducing up-to-date European technologies.

At the end of the meeting, the parties agreed to bring bilateral friendly ties at higher level and to seek possibilities to collaborate in energy sector.

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Mongolian PM to visit China www.news.mn

U.Khurelsukh, Prime Minister of Mongolia will visit Beijing on 8-12 April at the invitation of Li Keqiang, Premier of the State Council of the People’s Republic of China.

In Beijing, the Prime Minister will hold official talks with Premier Li Keqiang and make a courtesy calls on Xi Jinping, President of China and Li Zhanshu, Chairman of the Standing Committee of the National People’s Congress. Prime Minister U.Khurelsukh will also attend the Boao Forum for Asia which will be held under the title: ‘An Open and Innovative Asia for a World of Greater Prosperity’.

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Former Prime Minister summoned for questioning www.montsame.mn

Ulaanbaatar /MONTSAME/ Former Prime Minister Ch.Saikhanbileg has been summoned for questioning regarding the 2015 Oyu Tolgoi Underground Mine Development and Financing Plan, signed in Dubai, the United Arab Emirates, said the Independent Authority Against Corruption (IAAC) on April 2.

Ch.Saikhanbileg, who is currently abroad, will be interrogated when he returns, said IAAC spokesperson T.Munkhtungalag.

On Monday the IAAC clarified that former Minister of Finance S.Bayartsogt, former Director of the Mongolian Tax Administration B.Ariunsan and former CEO of Erdenes Tavan Tolgoi LLC B.Byambasaikhan had been arrested after being accused of possible abuse of power during the establishment of the 2009 Oyu Tolgoi Investment Agreement.

“The Investigation Division has sent its request to prosecute S.Bayartsogt to the Ulaanbaatar city Prosecutor’s Office. The court decision will resolve if he will be taken into custody,” said the spokesperson.

Moreover, the spokesperson addressed the recent controversy surrounding Erdenet Mining Corporation and a loan obtained by Just Group from Standard Bank of South Africa and confirmed that G.Amarbat, the then Chief of Commerce Department of the Erdenet Mining Corporation, has been arrested.
Kh.Aminaa

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Mongolia wants to reintroduce capital punishment www.akipress.com

AKIPRESS.COM - President of Mongolia Khaltmaa Battulga intends to initiate draft amendments to the Criminal Code of Mongolia reinstating the capital punishment, Montsame state news agency reported.

The President seeks to introduce death sentence for crimes against children and submit the bill to the Parliament during its spring session, which convenes this week.

“298 cases of child sexual abuse were registered last year alone. The victims' age is between 2-7. Appalling child molestation cases have shocked the society, which is now demanding more action from the Government,” G.Uyanga, Civil Society and Human Rights Advisor to the President, said at a press conference.

Last November, President Battulga sent an official letter to the Ministry of Justice and Home Affairs proposing to reinstate capital punishment. According to the Advisor, the Ministry hasn’t formally responded to the letter. “However, it was reported last week that a conclusion had been made by a working group in charge, led by Deputy Minister of Justice and Home Affairs B.Enkhbayar, that it wasn’t possible to restore capital punishment,” she said.

Mongolia put moratorium on capital punishment in 2012. The Parliament of Mongolia adopted a revision to the Criminal Code in 2015, which came to effect on July 1, 2017. Capital punishment was formally removed in the revised Criminal Code.

The Law of Mongolia on Legislation states that the public can add their suggestions to a draft bill for the time period of one month. “The public survey begins today. I am sure many people will take active part in the process,” said G.Uyanga.

R.Bulgamaa, Non-staff Advisor of Legal Policy to the President, emphasized that the President’s proposal doesn’t imply full restoration of capital punishment in Mongolia, and that only child abusers would be subject to death penalty. Before 2010, death penalty was given for six offenses in Mongolia.

Advisor G.Uyanga reminded of a fact that Mongolia abolished death penalty in 1953, but had to restore it after 10 months in response to increased incidence of crimes.

Thousands of Mongolians protested in front of parliament in Ulaanbaatar on Saturday to demand more action to prevent child abuse, after the widely-reported rape of a male infant shocked the country, Reuters reported.

After the reported rape earlier this month in Dornogobi province in Mongolia’s southeast, a group of concerned mothers created a Facebook group announcing the Saturday protest last week, and it quickly reached more than 400,000 members.

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UB night -time electricity discount ends www.news.mn

As a step towards cutting air pollution, which is extremely serious in the capital, Ulaanbaatar, the Mongolian government has approved regulation to cut electricity night tariff for ger district households, where most of the harmful smoke is produced, to zero.

The nightly incentive lasts from 9pm to 6am. The discount came into effect from 1 November and continued until 1 April. During this period, the inhabitants of Ulaanbaatar always face the worst air pollution caused by burning poor quality coal in the stoves of the ger districts, which surround the capital and are home to around half its population.

More than 160 thousand residents living in ger district benefitted from the electricity tariff discount by 50-100 percent. The discount cost MNT 9 billion.

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Mongolia to globalise cashmere trade via China's Bohai exchange www.xinhuanet.com

Mongolia, supplier of about 40 percent of the world's raw cashmere, hopes to boost profit trading in the wool used in some of the world's priciest luxury fashions by opening up a new online platform for global buying via China's Bohai Commodity Exchange (BOCE) .

The Mongolian Commodity Exchange (MCE) said the platform should begin trading in mid-April. Until now, traders or their representatives have had to be physically present to buy cashmere from the MCE, Mongolia's only permitted cashmere trader.

The exchange said trading in agricultural products and also coal and copper could follow at a later date. But cashmere currently accounts for around 90 percent of the exchange's total trade: In 2017, a total of 7,000 tonnes of washed cashmere were sold on the MCE with a total value of 521 billion tugrik (USD 217.99 million).

'Cooperation with the Bohai Commodity Exchange is opening up a market for Mongolian commodities not only in China but to other countries as well,' Chuluunbaatar Bayar, general manager of the MCE, told Reuters.

The cashmere launch follows the signing of a strategic cooperation agreement with the Bohai Commodity Exchange in January. BOCE already trades a variety of textile products including cotton, cashmere, goose feathers and eiderdown.

The Mongolian government launched a four-year programme to boost the industry in February, with the aim of boosting exports more than fivefold, providing financial support to help domestic firms improve technology and boosting the country's processing capacity.

The Development Bank of Mongolia and the Ministry of Food, Agriculture and Light Industry have also established an 500 billion tugrik 'Cashmere Development Fund'.

Mongolia has an estimated total of 27 million goats, and an annual cashmere production capacity of 9,400 tonnes. (Source: Xinhua)

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Bank of Mongolia statement www.mongolbank.mn

This statement is issued in relation to recent headlines of some media outlets.

Under the “Extended Funds Facility” program, the Bank of Mongolia takes monetary policy actions upon mutual agreement with the IMF. Decisions regarding monetary policy measures take careful consideration of the expected inflation, balance of payments outlook and macroeconomic stability in the medium term. As the annual inflation rate is expected to stabilize around the target level and the pressure on balance of payments is not expected to be heightened, the Bank of Mongolia decided to reduce the policy rate by 1 percentage point to 10 percent, in order to support economic activities and reduce the cost of refinancing, considering the debt burden of the private sector.

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Mongolbank purchases 734 kg gold in March www.montsame.mn

Ulaanbaatar /MONTSAME/ The Bank of Mongolia purchased 734 kg gold in March, it reported on April 2.

As such, the bank has purchased 2.3 tons of gold in the first three months of 2018, which shows 2.1 percent increase against the same period of last year.

As of the third month of 2018, the central bank’s average gold purchase rate was MNT 101,822.3 per gramm.

According to officials, the comparatively less amount of gold sold to the central bank in the first season of this year is linked to the fact that placer deposits have not yet started their operations and only hard rock deposits are running.

Gold mining reaches its peak of activity in August, September and October.
Kh.Aminaa

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Parliamentary working group to look into OT Agreement www.montsame.mn

Ulaanbaatar /MONTSAME/ Pursuant to an ordinance of the Speaker of Parliament, a working group has been formed to review the implementation of the 2009 Oyu Tolgoi Investment Agreement between the Government and UK-based Rio Tinto Group.

Following the issuance of the ordinance by Speaker M.Enkhbold on March 28, the working group, led by D.Damba-Ochir, Head of the Parliamentary Standing Committee on Economy, met on April 2 to discuss its action plan and adopt a working guideline.

The working group members include MPs D.Terbishdagva, deputy head, N.Amarzaya, O.Baasankhuu, B.Bat-Erdene, B.Javkhlan, Z.Narantuya, Ya.Sodbaatar and A.Undraa.

The working group members exchanged views on the establishment of sub-working groups designated to render professional assistance. As such, it was decided that five sub-groups, headed by a member of the working group, will be established.

The working group is expected to report to the Parliament on the implementation of the Investment Agreement within two months.
Kh.Aminaa

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