Saudi Arabia to invest in Russian-Chinese wealth fund www.rt.com

Riyadh is planning to provide major investments into the Russian Direct Investment Fund (RDIF) with the fund expected to be renamed, according to the head of RDIF, Kirill Dmitriev.
“In the near future, we will announce that Saudi Arabia is investing in RCIF and the fund will be renamed as the Russian-Chinese-Saudi Fund,” Dmitriev said at the Future Investment Initiative (FII), Saudi Arabia’s international investment forum.

What sanctions? US, Japan & India join new Russian LNG project www.rt.com

Russia’s energy major Rosneft will build a new liquefied natural gas (LNG) plant in partnership with US ExxonMobil, Japan's SODECO and India's ONGC Videsh, Reuters reports.

China cutting rare earth output, unnerving global manufacturers www.mining.com

The Chinese government is limiting domestic production of rare earth minerals in the second half of the year, a move likely to crimp international exports and send prices for the critical materials soaring, according to data from Adamas Intelligence.

China is by far the world's largest producer and consumer of rare earths, a group of 17 elements used to make electric vehicles and consumer electronics. The move is already forcing manufacturers to scour the globe for alternative supplies.The U.S. military is worried about China's dominance of the rare earths market, calling it a "significant and growing risk," according to a Pentagon study released earlier this month.

For the second half of 2018, China's quota for rare earth separation and smelting has been cut 36 percent, an attempt to better control the market, according to Adamas, a research firm that closely tracks the rare earths industry.

China's decision to limit domestic rare earth production to 45,000 tonnes for the second half of 2018 – the lowest in more than five years – provides only enough supply for China's domestic buyers, according to Adamas.

The semi-annual quota had risen to 70,000 tonnes in the first half of 2018, 40 percent higher than the first half of 2017. But that move was largely seen by analysts and electronics manufacturers as a step to legitimize black market production, with Chinese manufacturing consuming most of that supply.

While China is likely to attend to its own needs before exporting, increased exports would require the country to draw on already-low inventories of neodymium (Nd), prasesodymium (Pr) and dysprosium (Dy), used in electric vehicle motors, said Ryan Castilloux of Adamas.

Prices for one key rare earth mineral, PrNd Oxide, could increase by 10 percent to 50 percent within the next 12 months, and is on track to double in price within next five years as demand outpaces supply, Castilloux said.

Chinese exports typically supply around 80 percent of the globe's rare earth needs, about 156,000 tonnes annually. Still, exports tend to oscillate wildly from month to month.In September, for example, rare earth exports jumped 15 percent from August levels, despite slipping earlier in the year, according to Chinese government data.

The Chinese Ministry of Industry and Information Technology and the Ministry of Natural Resources did not respond to faxed requests for comment.

China's export reticence and market dominance has spooked manufacturers, including Japanese electronics maker Panasonic Corp, which said it is moving to find fresh supply.

"We have been diversifying our procurement channels, building partnerships with our suppliers and working to reduce the use of rare earths," Panasonic said in a statement to Reuters.

Australia's Lynas Corp is the only significant producer of rare earths outside of China through its processing plant in Malaysia. But last month a Malaysian politician said that plant should be closed, denting the company's stock and further unnerving the rare earths market.

Research into rare earth alternatives has come up largely empty, leaving manufacturers beholden to the specialized minerals just as demand for batteries for electric vehicles and other products that use the materials is soaring.

A typical Toyota Prius, for example, uses 25 kilograms (55 pounds) of rare earths, compared to 1 kilogram (2.2 lbs) in a typical combustion-engine vehicle.

(By Barbara Lewis, Ernest Scheyder, Makiko Yamazaki, Tom Daly and Beijing Newsroom; Editing by Bill Berkrot)

Bayan-Ulgii aimag to export livestock by-products to Iran www.montsame.mn

‘Zerger International’ LLC of Bayan-Ulgii aimag is to export livestock by-products including head and five internal organs to the Islamic Republic of Iran from next month.

Precious metal assay laboratories receive first gold www.montsame.mn

Ulaanbaatar /MONTSAME/ As reported by the Bank of Mongolia (BoM), the newly established precious metal assay laboratories of Darkhan-Uul and Bayankhongor aimags have received 15.5 kg and 2.9 kg gold respectively.

Mongolia offers win-win deals for investors www.zgm.mn

During the World Investment Forum, President Battulga Khaltmaa addressed Mongolia’s efforts in improving investment climate and developing win-win investment agreements. President remarked, “We are in the middle of formulating an integrated investment policy in strict conformity with Sustainable Development Goals. The new policy will help enhance the structure of the relevant authorities and their coordination, and increase the effectiveness of investment.” He highlighted that Mongolia has learnt lessons from this bitter experience and given it special attention at all levels of government by taking step-by-step targeted measures at both national and international levels. “To illustrate, Mongolia established an Investor Protection Council and a Public-Private Consultative Committee mandated to improve the legal environment for investment, promptly resolve complaints and grievances related to bureaucracy and illegal actions and take precautions against any risks,” noted President Battulga and added, “We also focused on developing a win-win investment agreement that ensures our country’s interests on an equal footing by formulating a benchmark bilateral investment agreement in accordance with the recommendations made by UNCTAD.”

Mongolia ranked 53rd out of 126 economies in the 2018 Global Innovation Index
Mentioning that the summit should come up with ways to increase the effectiveness and quality of investment and to modify investment protection mechanisms, President pointed out that Mongolia has set to develop renewable energy and tourism along with agriculture. On this regard, President stressed “Mongolia has proposed “Northeast Asian Energy Super Grid” initiative designed to supply electricity to Northeast Asian countries using Mongolia’s potential to produce renewables such as solar and wind energy. We invite you to work together with us in these sectors and make investments that will introduce new eco-friendly technologies.”

President clarifies patent acquisition of low-emission stoves

On the sidelines, President Battulga met with Francis Gurry, Director General of the World Intellectual Property Organization (WIPO) and Umberto de Pretto Secretary-General of the International Road Transport Union (IRU). Highlighting the distribution of low-emission stoves in Mongolia in recent years and the current discussion on distributing smoke-filtering stovepipes, President expressed his wish to know whether if patent rights had been already granted to similar products during his meeting with WIPO and inquired information related to Mongolia. Mr. Francis Gurry informed that Mongolia was ranked 53rd in the 2018 Global Innovation Index. As for meeting with the IRU, the President disclosed the nearing completion of construction works to connect Mongolia’s capital city Ulaanbaatar with capitals of all 21 provinces which has yielded a number of positive outcomes, including shortened transport duration and promotion of tourism sector. He then discussed opportunities for cooperation, including a plan to construct a highway connecting Altanbulag, Selenge Aimag, with Zamiin-Uud, Dornogobi Aimag, while mentioning that the project is open to investment from third countries.

Meeting with Umberto De Pretto, Secretary-General of International Road Transport Union www.president.mn

President of Mongolia Khaltmaagiin Battulga visited the headquarters of the International Road Transport Union (IRU) in Geneva, Switzerland, and met its Secretary-General Umberto de Pretto on October 23rd.

Meeting with Francis Gurry, Director General of World Intellectual Property Organization www.president.mn

President of Mongolia Khaltmaagiin Battulga met Francis Gurry, Director General of the World Intellectual Property Organization (WIPO), on October 23rd in Geneva, Switzerland.

When it comes to North Korean diplomacy, keep an eye on Mongolia www.tribunecontentagency.com

When US president Donald Trump and North Korean leader Kim Jong Un held a summit in June, Singapore was chosen as the venue over other ideas that were floated, including Mongolia. Now the landlocked central Asian country could have another shot.

As anticipation for a second Trump-Kim summit later this year mounts, Mongolian president Khaltmaagiin Battulga this week seized the opportunity of the 70th anniversary of the establishment of diplomatic ties between the two nations to invite Kim to visit the country. In an interview with Russian media outlet Sputnik, Mongolia’s foreign minister also said that his country was ready to host Trump and Kim if they decide to go ahead with a second summit.

It appears that Mongolia has been working behind the scenes to smooth tensions on the Korean peninsula. Japanese news agency Kyodo reported today (Oct. 19) that a top Japanese intelligence official close to prime minister Shinzo Abe held meetings with senior North Korean officials in Mongolian capital Ulaanbaatar earlier this month. According to an unnamed official to Kyodo, the two sides discussed the issue of Pyongyang’s abductions of Japanese citizens in the 1970s and 1980s. The issue is a major sticking point for the Abe government, and its insistence on resolving the issue has at times left it sidelined (paywall) in the recent rounds of North Korean diplomacy.

The meeting between Japan and North Korea in Mongolia took place shortly after Abe met with Mongolia’s leader in September in Russia, where the two sides agreed to work together to resolve the abductions issue, according to a report of the meeting by Japan’s foreign ministry. Mongolia has hosted talks on other occasions between Japan and North Korea.

Mongolia is one of the few nations in the world that has maintained consistently friendly relations with Pyongyang, and was the second country to recognize North Korea after the Soviet Union. Kim Il Sung, Kim Jong Un’s grandfather, visited Mongolia twice (the country was ruled by a communist regime at the time). More recently, Mongolia’s former president Tsakhiagiin Elbegdorj visited Pyongyang in 2013, with the goal of positioning Mongolia (paywall) as a mediator between North Korea and the rest of the world, while presenting itself as a model of economic development for Mongolia to learn from. Elbegdorj also touted the country’s neutrality earlier this year as a reason for why a Trump-Kim summit should be held in Mongolia:

Korean Peninsula: A long waited breakthrough! Here is an offer: US President Trump and NK leader Kim meet in UB. Mongolia is the most suitable, neutral territory. We facilitated important meetings, including between Japan and NK. Mongolia’s continuing legacy – UB dialogue on NEA

– ????????? ????????? (@elbegdorj) March 9, 2018

Mongolia’s foreign minister, meanwhile visited North Korea in February.

“Mongolia’s unique relationship with and access to the DPRK’s leadership has primarily proven to be a most valuable asset in boosting Mongolia’s profile in the region and the world at large,” wrote Tjalling Halbertsma, a scholar and former diplomat in Mongolia, in a study on Mongolia-North Korea relations published in 2014.

As nation of just 3 million people sandwiched between major superpowers in a neighborhood fraught with geopolitical difficulties, Mongolia has long sought to cultivate ties with countries beyond its borders as a way to counterbalance Russia and China’s influence, also known as the “third neighbor” policy. And while it’s maintained friendly relations with North Korea, Ulaanbaatar has complied with United Nations sanctions, kicking out over a thousand North Korean workers late last year (a recent visit by this reporter to the site of a former North Korea restaurant in the Mongolian capital found that the restaurant had changed its name and no longer housed any visible evidence of being a North Korean establishment).

Mongolia’s diplomatic strategy mirrors to some extent Singapore’s playbook, which has allowed the city-state to play host to various major international events over the years, including a historic meeting between the leaders of Taiwan and China in 2015. It could be Mongolia’s chance to bask in the spotlight next.

This article was originally published in Quartz.

Cold weather to linger www.montsame.mn

Ulaanbaatar /MONTSAME/ The National Agency of Meteorology and Environment Monitoring (NAMEM) has issued warning for herders, citizens and farmers.