Earlier today, Orkhon Deputy Provincial Governor S.Batjargal held a meeting with Irina Kravchenko, Head of the EBRD representative office in Mongolia. During the meeting, S.Batjargal proposed cooperating with the EBRD in upgrading the 42 year-old power cable network of Erdenet.

The EBRD has been operating in Mongolia since 2006 and has invested a total of USD 1.5 billion in the country.

The statement emphasized that delays and reversals of some structural reforms mandated by the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) program pose a risk to the continuity of donor assistance. “Reforms subject to delays and reversals were those primarily designed to prevent a return to pro-cyclical fiscal policies and to strengthen and empower institutions to support adherence to fiscal rules,” highlighted Moody’s.

Earlier this week, the IMF staff team disclosed the report for the third review under the EFF. The team foresaw that growth is expected to remain strong in 2018; however, the report addressed several several risks including changes in global commodity demand and bottlenecks at the border. According to Moody’s, an asset quality review of Mongolian banks, stipulated by the program and conducted by an independent consultant, also points to a much smaller capital adequacy shortfall than the IMF previously forecast, resulting in lower potential recapitalization costs to the Government. In addition, Moody’s view that Mongolia’s growth outlook rests critically on the continuation of the Oyu Tolgoi copper mine and the expansion of the Tavan Tolgoi coal project over the next five years.

In January, Moody's upgraded the Government of Mongolia's long-term issuer ratings and the senior unsecured ratings to B3 from Caa1, and the senior unsecured medium-term note (MNT) program rating to B3 from Caa1. The short-term issuer ratings are affirmed at Not Prime and the outlook stable

Shares were down 11% Thursday at 11.05 pence each.

Petro Matad has been interpreting 3D seismic volumes from Tugrug through March and April, with the frequency content of the data "excellent", and it said the fault plane reflections are "remarkably" well-defined which is significantly helping mapping the complex Falcon prospect.

The company said based on these results the fault block originally targeted for drilling in the centre of Falcon is smaller than thought. However, the data does confirm a large and well-defined fault to the east which Petro Matad said is much larger than in original mapping.

More detailed work is needed, it said, to progress these prospects to drillable status.

Petro Matad also said Thursday it is to focus drilling on the Snow Leopard prospect in to the second quarter, deferring drilling on block V. Snow Leopard is less complex, it said, and it is part of a confirmed source and reservoir outcrop.

Snow Leopard has all permits required save for a land use permits which is now being renewed, which it said is "a routine matter". Plans are on track for site construction to start in May, with drilling to cost around USD7.0 million lasting around 70 days.

Following this Petro Matad will drill the Wild Horse prospect in block IV, with permitting going well, it said. The most time consuming part, the detailed environmental impact assessment, has been submitted, and approval is expected imminently.

The tender for a drilling rig on block XX is nearly finished, and it expects to secure "a good quality contractor" for drilling as early as the second half of 2018, if possible.

Chief Executive Mike Buck said: "The company's decision to shoot 3D seismic over the structurally complex Tugrug Basin was a good one. The new mapping on the 3D indicates that we have some excellent targets but we do not wish to delay our exploration efforts in 2018 whilst they are matured to drillable status.

"Snow Leopard and Wild Horse are two large, well defined and exciting prospects with huge follow up potential. As the firm two well programme for blocks IV and V in 2018, they will tell us a lot more about the potential of the area and we are moving ahead rapidly with preparations to start drilling during this quarter. Planning, procurement, and permitting for drilling in block XX are also advancing well."

By George Collard; georgecollard@alliancenews.com

The "Transit Mongolia-2018" forum, co-organized by Mongolia's Ministry of Road and Transport Development and Ulan Bator Railway Association, will be part of the 23rd exhibition of Trans-Russia/Trans-Logistica.

Major Eurasian freight transportation companies will take part in the expo to discuss regional transport sales, cooperation, as well as railway investment and cooperation, Mongolian News Agency reported Thursday.

This is the first time that Mongolia will participate in the expo, which will be held from April 17 to 19.

Ongoing test work shows that gold should report to a copper concentrate as free gold inclusion.

The new results build on Xanadu’s previous metallurgical studies which showed very high gold recovery to the rougher concentrate.

Xanadu’s chief executive officer Dr Andrew Stewart said: “These above average results, as expected, show that gold occurs as coarse grains in association with principle copper sulphides.

“While further testing is required as the project advances, we see no significant hurdles to producing a high-quality concentrate via standard processing pathways from the Kharmagtai project.”

The objective was to determine the location of gold across all three zones of the Kharmagtai deposit - Copper Hill, White Hill and Stockwork Hill.

Petrological and scanning electron microprobe work showed most gold as separate grains within the copper-bearing sulphides and pyrite rather than as a solid solution.

The grains range up to 100 microns in size and include native gold and with silver as electrum.

Some minor grains also occur in silicate minerals and magnetite.

The copper sulphides analysed showed no trace metal within them as solid solution, indicating sulphides from the samples should produce concentrates free of significant deleterious elements.

“The test results allow us to focus on the drilling underway,” Stewart said.

“This is expanding the resource and targeting near-surface porphyry copper-gold deposits within this largely under-explored porphyry copper-gold district.”

“The Russian agribusiness sector is our pride. In 2017, agricultural production increased more than 20 percent for all types of farms when compared to 2012,” Medvedev told the State Duma on Wednesday.

Medvedev explained that “such rapid growth is the result of an unprecedented state support for the agro-industrial complex,” because “over six years, more than 1.2 trillion rubles ($18.62 billion) has been allocated from the federal budget.”

The prime minister noted the flexible tariff policy, another measure of state support.

“We harvested a significant grain crop, which was difficult to transport by railroad, so we’ve introduced a preferential tariff for that. We are also building new terminals in ports, creating a network of wholesale distribution centers,” said Medvedev.

Last month, President Vladimir Putin said Russian exports of agricultural products and foodstuffs had grown 16-fold since 2000. Two years ago, Russia became the world leader in wheat exports.

Since the early 2000s, the country’s share of the world wheat market has quadrupled, from four to 16 percent.

The president said Russia will soon sell more produce abroad than it imports. To achieve the goal, authorities plan to develop infrastructure, broaden the railway network, and increase the capacity of seaports, elevators, and storage terminals.

Putin said that Russia should be aiming at exports of environmentally friendly and quality products. GMO has been banned in Russia since 2016. The Russian leader previously said he wants to make the country the world’s largest seller of GMO-free food.

There are currently 2 main statuses for non-Japanese workers. One is for people employed in 18 professional categories, including professors, doctors and lawyers.

The other is for people who take part in a technical intern program.

The newly proposed status would allow foreigners with certain skills to work in the country for up to 5 years. Those who have completed internships would be eligible on the condition they do not bring their families to Japan.

The government would require companies employing these workers to draw up support plans that help them settle in and arrange accommodation. Businesses would be asked to submit reports to the Justice Ministry.

The government adds it is also considering allowing those status-holders to stay in the country indefinitely if they pass stipulated exams during their 5-year stay.

The government plans to include the proposal in this year's basic policy in economic and fiscal management and reform.

The Prime Minister congratulated the Chinese President on his re-election and conveyed President Kh.Battulga’s greetings.

The sides expressed mutual commitment to reinforce political trust based on respect of each other’s core interests and to maintain the frequency of high-level visits. The sides agreed to mark the 70th anniversary of establishment of diplomatic relations with a grand celebration next year.

While acknowledging wide opportunities to boost bilateral trade and economic cooperation, the sides agreed on several actions to be taken to reach the goal to increase bilateral trade turnover to USD 10 billion by 2020 – intensify cooperation mechanisms, effectively utilize the channel of exchange through the Mongolia-China Expo, reduce non-tariff barriers in trade and accelerate the progress of China-funded projects.

The sides exchanged views on other matters such as regional and trilateral cooperation with Russia. They appreciated positive outlook of the Korean Peninsula and the activation of high-level dialogue between nations in the region, expressing willingness to put efforts into the denuclearization of the Korean Peninsula.

According to the company’s managers, the 55 Mwh wind park will provide electricity for 100,000 households and offset carbon dioxide emissions for 200,000 tons of coal.

Officials from the Ministry of Energy visited the wind park and concluded that construction is being carried out as planned, without any delays.

Mongolia's renewable energy capacity is expected to be increased by 95 Mwh in 2018