1 ERDENES TAVAN TOLGOI REVENUE SURGES DUE TO HIGHER COAL PRICES WWW.NEWS.MN PUBLISHED:2018/09/20      2 RUSSIA AND MONGOLIAN BORDER CROSSING NO. 487 WWW.NEWS.MN PUBLISHED:2018/09/20      3 WORLD ECONOMICS REPORTS THAT MONGOLIA’S EMPLOYMENT RATE HITS A FIVE-YEAR HIGH WWW.GOGO.MN PUBLISHED:2018/09/20      4 USD HITS RECORD HIGH IN MONGOLIA DUE TO HIGHER IMPORTS WWW.CHINA.ORG.CN PUBLISHED:2018/09/20      5 READOUT OF VICE PRESIDENT MIKE PENCE’S MEETING WITH PRIME MINISTER UKHNAA KHURELSUKH OF MONGOLIA WWW.WHITEHOUSE.GOV PUBLISHED:2018/09/20      6 MONGOLIA LAUNCHES EU-FUNDED PROJECTS TO PROMOTE GREEN DEVELOPMENT, ENVIRONMENTAL PROTECTION WWW.XINHUANET.COM PUBLISHED:2018/09/20      7 COAL EXPORTS FROM TOP SHIPPER HOBBLED WITH MINERS FACING CONSTRAINTS WWW.MINING.COM PUBLISHED:2018/09/20      8 FRONTIER'S "INVEST MONGOLIA TOKYO 2018" WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/09/19      9 U.S.-CHINA TRADE TUSSLE IS CREATING WINNERS IN SOUTHEAST ASIA WWW.BLOOMBERG.COM PUBLISHED:2018/09/19      10 YUSAKU MAEZAWA: THE JAPANESE BILLIONAIRE WHO WANTS TO FLY TO THE MOON WWW.BBC.COM PUBLISHED:2018/09/19      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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IMF Executive Board Completes Third Review under the Extended Arrangement for Mongolia and Approves US$ 30.55 Million Disbursement www.imf.org

On March 28, 2018, the Executive Board of the International Monetary Fund (IMF) completed the third review of Mongolia’s performance under the program supported by a three-year extended arrangement under the Extended Fund Facility (EFF). Completion of the review enables Mongolia to draw the equivalent of SDR 20.9598 million (about US$ 30.55 million), bringing total disbursements under the arrangement to SDR 104.8278 million (about US$ 152.79 million).

Mongolia’s performance under the program thus far has been strong. The economy is recovering better than expected, with real GDP growth of 5.1 percent in 2017 and a significant improvement in the fiscal balance of 15 percentage points of GDP. The combination of strong policy implementation and a supportive external environment has helped the authorities over-perform on all end-December 2017 quantitative targets. However, the performance on structural reforms has been mixed with some delays on structural benchmarks under the program and reversals of three fiscal measures considered during previous reviews.

Mongolia’s three-year extended arrangement was approved on May 24, 2017, in an amount equivalent to SDR 314.5054 million, or about US$434.3 million at the time of approval of the arrangement (see Press Release No. 17/193 ). The government’s Economic Recovery Program, supported by the IMF, aims to stabilize the economy, reduce the fiscal deficit and debt, rebuild foreign exchange reserves, introduce measures to mitigate the boom-bust cycle and promote sustainable and inclusive growth.

Following the Executive Board’s discussion of the review, Mr. Mitsuhiro Furusawa, Acting Chair and Deputy Managing Director, said:

“Mongolia’s performance under the Fund-supported program has been favorable. The economy is recovering better than anticipated due to good program implementation, buoyant external demand, and a return of confidence. The fiscal deficit fell sharply due to a substantial pick up in revenues and strict expenditure control, yielding a notable improvement in the public debt outlook. External financing costs continue to fall, with external bonds maturing in 2018 rolled over at lower interest rates, and foreign exchange reserves have recovered further.

“All end-December 2017 quantitative targets under the program have been met. Fiscal and banking sector reforms are proceeding, albeit with some deviations and delays. Fiscal results have been significantly better than expected, with a major reduction in the deficit, supported by expenditure restraint and a strong recovery in mining-related revenues. Official reserves have more than doubled over 2017, reflecting a jump in coal exports, capital inflows, and disbursements under the external financing package from donors and the IMF.

“The authorities are moving ahead with ambitious structural reforms designed to sustain growth over the medium term, promote competitiveness and diversification, and mitigate the boom-bust cycle. In the financial sector, the rehabilitation and strengthening of the banking system is underway, building on the recently completed comprehensive Asset Quality Review and several new laws passed by Parliament. Sustaining the reform momentum in this area will be critical. On the fiscal side, the authorities remain committed to the strengthened path of adjustment, with continuing restraint on spending paired with efforts to sustain the recent strong revenue performance. To this end, building on technical assistance from the IMF, they are particularly focused on improving the quality of tax administration.

“With debt still high and the economy exposed to global commodity developments, it is critical that the authorities maintain their strong commitment to the program. Firm program implementation is needed to sustain the virtuous cycle of recovering growth, improving confidence, rising reserves, falling debt, and strong support from the donor community.”

IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: TING YAN

PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG

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Mongolia launches EU-funded project to promote trade www.xinhuanet.com

ULAN BATOR, March 28 (Xinhua) -- The inauguration ceremony of a project with a funding of 4.8 million euros (5.95 million U.S. dollars) from the European Union (EU) to promote Mongolia's trade was held here Wednesday.

The project aims to support the country's economic growth by increasing the exports of non-mining sectors, according to the Mongolian Ministry of Foreign Affairs.

"Under this project, the Mongolian government will support entrepreneurs by building a sound business environment and facilitating trade and exports," D. Davaasuren, state secretary of the Mongolian Ministry of Foreign Affairs said at the ceremony.

Mongolia's main trade partners are China, accounting for 70 percent of its total trade volume, Russia, representing over 10 percent, and the EU, taking up 11 percent, said Davaasuren.

"Our country is capable of exporting 7,200 types of goods on favorable terms to the EU members, but till now its potential has not been fully tapped. We hope the project will help solve this issue," he said.

He said the products exported from Mongolia to the European countries are at present limited to only a few types of wool, cashmere and handicrafts and that therefore Mongolia is aiming to diversify its exports. Enditem

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Development Bank to resolve funding of incomplete apartment www.montsame.mn

Ulaanbaatar/MONTSAME/ During the regular Cabinet Meeting on March 27, a decision was made to transfer unfinished apartment buildings for a total of 1562 households, which were registered at the State Housing Corporation of Mongolia, into the authorization of Development Bank of Mongolia (DBM).

The Board of Directors of DBM was assigned to resolve the required financing to complete constructions of the apartments this year.

After completing constructions of the apartments, an issue on transferring the apartments into Rental Housing Fund will be reconsidered.

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Asian governments to meet in Mongolia on disaster prevention www.reliefweb.int

BANGKOK/GENEVA, 27 March, 2018 - Governments from the world’s most disaster-prone region will meet in Mongolia in July to discuss acceleration of efforts vital for the sustainable future of the region including how to prevent disasters and tackle climate change while reviewing progress in reducing disaster losses.

The Government of Mongolia and the UN Office for Disaster Risk Reduction (UNISDR) will host the 2018 Asian Ministerial Conference on Disaster Risk Reduction July 3-6 in Ulaanbaatar City under the theme “Preventing Disaster Risk: Protecting Sustainable Development.”

It is estimated that the region lost US$ 1.3 trillion in assets between 1970 and 2016 as a result of disasters. In 2017, 6,543 people lost their lives in over 200 major disasters affecting 66.7 million people.

Disaster risk across the region is exacerbated by high levels of poverty, climate change, rapid urbanisation and exposure to the entire spectrum of natural hazards including drought, floods, cyclones, earthquakes and heatwaves.

The Prime Minister of Mongolia, Mr. Khurelsukh Ukhnaa, said: “It is three years since UN Member States adopted the Sendai Framework for Disaster Risk Reduction, the global plan to reduce disaster losses. In Asia we have a regional plan for implementation and this Conference will be an opportunity for governments and partners to review progress in areas such as reducing the numbers of people affected by disasters and reining in economic losses.”

Mr. Khurelsukh who was designated a UNISDR Champion at the Global Platform for Disaster Risk Reduction in 2017, added: “The Conference will also be a major boost to regional and cross-border cooperation on reducing disaster risk and taking action on climate change. Progress in Asia is vital to success in achieving the Sustainable Development Goals and the overall 2030 Agenda for Sustainable Development.”

The UN Special Representative for Disaster Risk Reduction, Ms. Mami Mizutori, said: “The Asian Ministerial Conference will develop an action plan for the next two years. This will include a renewed focus on Target (e) of the Sendai Framework that aims for a substantial increase in the number of countries with national and local disaster risk reduction strategies by 2020. Asia’s lead in this important area is vital as we step up efforts to monitor progress on achieving the targets on reducing disaster losses in the Sendai Framework.”

Ms Loretta Hieber Girardet, Chief of UNISDR’s Regional Office for Asia and the Pacific, said: “The worst disasters that could happen have not happened yet. Reducing the risk of their occurrence is more important in Asia given the high levels of exposure to disaster risk. The Asian Ministerial Conference comes at an opportune time with the launch in March of the Sendai Framework Monitor. This is the online tool hosted by UNISDR which allows countries to report their progress on reducing disaster losses against the Sendai Framework targets.”

Over 3,000 delegates are expected to participate in the event, where the governments will adopt the ‘Ulaanbaatar Declaration’ and the stakeholder groups will issue voluntary commitments.

A key feature of the conference will be an Asia Video Contest on Disaster Risk Reduction that will showcase success stories in building resilience at national, local and community levels. Launching the Contest in Ulaanbaatar City on 24 January 2018, Mr. Enkhtuvshin Ulziisaikhan, Deputy Prime Minister of Mongolia and chairperson of the 2018 Asian Ministerial Conference on Disaster Risk Reduction, called on the international community to share learning and innovation through good practices and lessons learned in disaster risk management to mutually support the implementation of the Sendai Framework.

The conference will be supported by several partner organisations and will feature a ministerial segment, technical and thematic sessions, featured events and public forum.

For more information, see: http://www.unisdr.org/amcdrr2018

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Broaden Opportunities for Women Workers in Mongolia: New World Bank Report www.worldbank.org

ULAANBAATAR, 27 March, 2018 – Mongolia ranks 53rd out of 159 countries in gender inequality globally, but many Mongolian women face challenges in accessing jobs and career opportunities, says a new World Bank study. Gender gaps in the country’s labor market include different rates of labor force participation, unequal pay, and the higher tendency of women to work in unsecure informal work.

The study, Perceptions of Precariousness: A Qualitative Study of Constraints Underlying Gender Disparities in Mongolia’s Labor Market, was launched today in Ulaanbaatar during a workshop co-organized with the Mongolian Ministry of Labor and Social Protection. Around 70 participants from government, civil society organizations, and private sector joined in the event.

“The study - the first in-depth qualitative research on gender disparities in the labor market - relies on interviews and focus group discussions with members of various strata of society as well as local labor and social welfare offices. It also provides critical recommendations to address these disparities,” – said Achim Daniel Schmillen, World Bank Senior Economist and co-author of the study.

On average, Mongolian women are better educated than their male peers, yet they are less likely to make use of this education, the study highlights. Instead, the gender gap in labor force participation rates has more than doubled in the last twenty years, exceeding 12.6 percent today. More women, particularly in rural areas, take on unsecure informal work and unpaid family work, and far few women participate in entrepreneurial endeavors compared to men.

“The divergence of labor force participation between Mongolian men and women highlights stark differences,” – said James Anderson, World Bank Country Manager for Mongolia. “Addressing these gaps in the labor market will ultimately help Mongolia make the most of its most valuable resource: its people.”

The qualitative research outlines the constraints underlying the gaps, which include traditional norms and values in the workplace, eldercare and childcare facilities that are inadequate in quality and quantity. This finding complements other World Bank research on pre-primary education in Mongolia which drew attention to the lack of preschool education access for the most disadvantaged and vulnerable children despite the overall increase in enrolment rates. The cost of such exclusion accrues not only to the child, but to caregivers who are kept out of the labor market, and to society.

The gaps could be remedied through improvements in the legal and regulatory environment tackling gender-specific constraints. One important step is to enforce antidiscrimination policies and monitor gender indicators. Expanding and upgrading eldercare and childcare services will encourage more women to stay in jobs, as would broader access to early-childhood education services, particularly in the most underserved rural areas.

Increasing access to finance and training can help women entrepreneurs realize the full potential of their businesses. Lastly, long-term measures to influence gender norms and attitudes among employers, human-resource managers, and the wider population should be part of the strategy.

 
 
 
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Foreign workforce to be cut by 30 percent in 2018 www.gogo.mn

The Ministry of Labor and Social Welfare and the General Authority on Labor and Social Welfare organized a meeting with over 80 entities that have a foreign workforce.

State authorities granted

38,553 preliminary work permits to foreign workers in 2015,
27,526 in 2016, and
19,715 in 2017.
It is estimated that there were 4,703 foreign experts and workers in Mongolia at the end of 2017.

Minister of Labor and Social Welfare S. Chinzorig stated, “The number of foreign workers would be reduced by up to 30 percent in 2018, and by 25 percent in 2019.” Income from employment fees for foreign employees is deposited to the state's Employment Support Fund, and used to strengthen the domestic labor market, increase the number of employment opportunities, and to organize vocational trainings.

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Seoul requests Mongolia to allow more South Korean airlines www.news.mn

On Monday, South Korea and Mongolia discussed ways to step up cooperation in a range of sectors, including the economy, development and exchange between the peoples of the two countries, the foreign ministry in Ulaanbaatar said.

The third South Korea-Mongolia joint committee meeting was held in the Mongolian capital, on the 28th anniversary of the establishment of diplomatic relations between the two countries.

South Korea's Deputy Foreign Minister Cho Hyun and Minister of Environment and Tourism N.Tserenbat led the discussions.

As part of efforts to enhance bilateral cooperation, South Korea requested that Mongolia allow more South Korean airlines to join the Korea-Mongolia air route, which is currently limited to only one Korean air carrier. Mongolia responded that a legal revision is under way to address the issue, the ministry said.

The Mongolian side called for an increase in scholarships for its students who are studying in South Korea and for the expansion of Korean visa issuance for its nationals.

The two sides also agreed to work together in fighting air pollution, with Seoul pledging to review measures to help reduce microdust in Mongolia.

Minister Cho also paid a courtesy visit to Prime Minister U. Khurelsukh and ensured that the two countries will work together to further increase exchanges between their peoples.

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USD 200 million wasted on Mongolian rail project? www.news.mn

It has emerged that the Mongolian Government spent a total of 200 USD million on a new railway project which cancelled in 2016. J.Bat-Erdene, Minister of Road and Transport Development has been drawing attention to the railway that was never built.

In 2012 he was responsible for leading the working group for implementing the project. The agreement for constructing railway connecting Mongolia's strategically important Tavan Tolgoi, which contains an estimated 6.4 billion tonnes of coking coal and the Gashuun Sukhait border crossing with China, was signed by Energy Resources LLC. The rail project was seen as essential for speeding up coal transport and was expected to have been completed by 2016. However, the company’s investment to the project was stopped by the Mongolian Government at the time.

It will be recalled that last autumn gigantic queues of coal trucks taking Tavan Tolgoi coal to China formed on the road to the Gashuun Sukhait border crossing. At times the queues exceeded 100 km! Clearly, an alternative mode of delivery has to be found.

Currently, there are two options for the implementing the rail project: either the coal transportation companies unite to cover the costs or China, which buys the Tavan Tolgoi coal invests.

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Rio Tinto fully out of coal sector with $2.25bn Kestrel mine sale www.mining.com

Mining giant Rio Tinto (ASX, LON:RIO) has agreed to sell its Kestrel coal mine in Australia to private equity manager EMR Capital and Indonesian coal company Adaro Energy, in a deal worth $2.25 billion.

The transaction makes of Rio Tinto the first major miner to exit the coal industry, and comes only a week after it announced the $1.7 billion-sale of its Hail Creek Mine, also in Australia, to Glencore, as well as an undeveloped project in Queensland to Whitehaven Coal for $200 million.

The sale of its 80% stake in Kestrel brings the total amount Rio Tinto has collected with the latest three coal sales to $4.15 billion, which it said would be used for “general corporate purposes.”

The sale of its 80% stake in Kestrel brings the total amount Rio Tinto has collected with the latest three coal sales to $4.15bn.
“I would like to thank the many people at Rio Tinto and the communities where we operate, whose hard work and commitment has contributed to the success of the coal business over many years,” chief executive Jean-Sébastien Jacques said in the statement.

Since announcing the company's decision to exit the coal sector last year, the executive has repeatedly said that Rio was not turning its back to coal because of environmental concerns, but because it had better investment opportunities in iron ore, copper, aluminum and bauxite.

Under his direction, the company has focused on cutting costs, generating cash and returning as much of it as possible to investors through dividends and share buybacks.

The strategy helped Jacques announce last month a record dividend as 2017 profit hit a three-year high. It was his first annual report as Rio’s CEO, as he only took over from former boss Sam Walsh in July 2016.

Cloud on the horizon
Despite the financial success, the miner is facing hard times as is still battling reputational damage brought by a series of incidents, including a probe into a questionable payment made to an external consultant over the Simandou iron ore project in Guinea.

It is also facing fraud charges from the US Securities and Exchange Commission (SEC), the country’s top securities regulator, related to the miner's and two former executive’s alleged covered-up of multi-billion-dollar losses on a coal investment in Mozambique, allegations which the two men and the company deny.

Rio has also been recently accused of dodging $700 million in taxes at its massive Oyu Tolgoi copper and gold mine in Mongolia.

The company said Kestrel deal was subject to regulatory approvals and was expected to be completed in the second half of 2018.

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Petro-yuan helps Russia & China dump US dollar in oil trade www.rt.com

China is the world's biggest crude consumer and buys most of its oil from Russia. However, most settlements are still in US dollars. The launch of the petro-yuan now allows Moscow and Beijing to use national currencies instead.

China and Russia are actively reducing dependence on the dollar in bilateral trade. In October 2017, Beijing launched a payment system for transactions in yuan and Russian rubles. This means that settlements for Russian oil deliveries to China, which have reached 60 million tons per year, can be done without using the dollar.

After Monday's launch of the yuan-backed oil futures in Shanghai, there have been negotiation between Russia and China on mutual promotion of oil futures in national currencies, RIA Novosti reported. In 2016, the St. Petersburg exchange in Russia launched Urals oil futures in the Russian ruble, and support from China could prop up Russian crude futures.

China's new oil benchmark had a hugely successful debut. On the first day of trading in Shanghai, 62,500 contracts with more than 62 million barrels of crude traded for a notional value of nearly 27 billion yuan ($4 billion), Zerohedge reported. Glencore, Trafigura, Freepoint Commodities and other huge oil-trading corporations took part.

Russia held its position as China's largest crude oil supplier in February. Russia supplied 5.052 million tons, or 1.32 million barrels per day (bpd) last month, up 17.8 percent from a year earlier, according to Reuters, quoting the Chinese General Administration of Customs.

The increase in volume happened as a result of a second Sino-Russian oil pipeline, which began operations on January 1. It doubled China’s capacity to pump oil from the East Siberia-Pacific Ocean (ESPO) system. ESPO connects Russia and China with a direct

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