Mongolian export increase by 38 percent www.news.mn

Mongolia traded with 145 countries during the first seven months of 2017. Cumulative trade turnover reached USD 5.9 billion; export accounting for USD 3.5 billion and imports for USD 2.3 billion. During the reporting period, the total trade amount increased by USD 1.5 billion or 33.9 percent, exports by USD 979.2 million or 38.5 percent and imports by USD 504.1million or 27.5 percent on the previous year.

L.Purevsuren: Mutually beneficial and friendly cooperation will be exercised in ties with China and Russia www.gogo.mn

The following is an interview with Mr. L.Purevsuren, the Foreign Policy Advisor to the President of Mongolia.

-Have the dates for foreign visits of the new President been set? From what we have heard, the President is starting his visits abroad from the two neighboring countries. 
-President Battulga will attend the Eastern Economic Forum, expected to take place between the 5th and 7th of next month in Vladivostok of Russia, at the invitation of the Russian president. He is not only attending this forum, but also plans to pay a working visit. It is expected that our President will exchange views on Mongolia-Russia relations with Vladimir Putin, the President of the Russian Federation.

-It has been reported that the President is also heading to Budapest at the end of this month for the World Judo Championships. 
-Although the President had been elected the head of state, he is still leading the Judo Association of Mongolia. The World Judo Championships will be held in Budapest, later this month, as well as the election for IJF President. It is expected of him to participate in this event as a leader of national judo association of the country. However, of course, the Hungarian side will welcome the President as the head of state of another country. It is a private visit for the President and all costs will be covered by the President himself.

-What outcomes are expected from the Eastern Economic Forum for Mongolia?
-It will be the first time for Mongolia to take part in an important regional economic gathering in Northeast Asia on the level of head of state. The President will also be accompanied by representatives of businesses, related officials and several ministers. Russia, China, Japan and South Korea and other regional countries are sending high-ranking representatives of politics and business. EEF will also incorporate a Mongolia-Russia Business Forum, during which we plan to present major projects intended to be run by the Government.

-What issues can be resolved during President’s visit to Russia?
-Our two countries have active and friendly ties in politics. However, it is not the case when it comes to economic cooperation. We need to renovate the joint railroads and widen the corridors. There are also the unresolved problems of energy cooperation and infrastructure. The foremost priority of the President will be export-targeted production of Mongolia. The number of livestock in Mongolia is already exceeding 80 million. The Siberian market used to be a platform for Mongolia. Unfortunately, as of today, we are being unable to export meat, wool and leather on this market. This matter will be considered very seriously during the meeting of two presidents. The President has set a goal to bring the Mongolia-Russia ties to new heights. The dialogue, in my opinion, will become an important step to determine the future perspective of relations between Mongolia and the Russian Federation.

-What are the priority areas of foreign policy, as defined by our new president?
-In foreign policy, continuance is the most crucial. The concepts of National Security and Foreign Policy of Mongolia both provide that maintaining balanced and equal ties with the two neighbors is a priority in the country’s foreign policy. Therefore, President Battulga attaches great importance to ties with the neighbors. Until 1990, Mongolia’s southern border was closed and we had relations only northward. Nevertheless, economic ties with our northern neighbor have almost disappeared within the last 27 years. The economy has inclined towards the south. The President means to fix this. Nonetheless, it will not mean that Mongolia will be paying all its attention to the relations with Russia and limiting the cooperation China, in the sake of what is reflected in the Concept of National Security. Relations with China will be expanded in the future, as well. The President wishes to upgrade Mongolia’s relations with Russia to the level of that between Mongolia and China in a very short period. Because our new president comes from business sector, he follows a principle that any deal must be mutually beneficial, so that it can survive in a long-term. 
He also takes a stance to maintain the development of “third neighbor” policy. In that order, he will also hold meetings during the Vladivostok forum with the Prime Minister of Japan and the President of the Republic of Korea. High technologies are the key to industrial development. However, it needs major financing, which requires the involvement of third neighbors. Another focus will be this.

-Mongolia has an observer’s status in the Shanghai Cooperation Organization (SCO). Can this status be changed?
-Mongolia is the first observer in the Shanghai Cooperation Organization, and 12 years have passed since the status was granted. Situations in SCO have been changing, as well. At first, it was the “Shanghai 5”, and now it has become “Shanghai 6”. During the last SCO Summit in Astana, India and Pakistan joined SCO afresh. With these entries, SCO has now turned into a major organization, broadening its horizons throughout the region. Mongolia is watching very closely where this alliance heads. We need to carefully observe whether it is going to be an economic platform or a military-political union. Mongolia should keep up with other countries if SCO is going to be an economic alliance. This means the issue of Mongolia’s entry to SCO also depends on the organization’s own motives.

-Mongolia is left out of the Belt and Road Initiative of China. Mongolia is supposed to be one of its closest neighbors. However, the route to London and gas pipes from Russia are not passing through Mongolia. Will the President implement policies in order to get involved in the Belt and Road?
-It may seem very obvious that our country is left out, because previously the Trans-Siberian railway, the only railway that used connect Asia with Europe passed through Manjuur and Mongolia, but today, the situation has changed and there are more corridors and passages. We have obviously been trying to be an active player in this. This is the reason why the initiative of Economic Corridor between Mongolia, Russia, and China has come up in the first place three years ago. The agreement was signed a year ago by the three sides. A total of 32 projects have been designated, being considered the most viable. Most of these projects include works that have to pass through Mongolia to connect Russia and China. This is high time we decided which project to start with.

-Is it true, during your attendance at the inauguration ceremony of the Iranian president, you have told a local media that Mongolia is against the US sanction on North Korea?
-It is false information. An inauguration ceremony was held on August 5 for President of Iran Hassan Rouhani after him being re-elected to the office. As the Foreign Policy Advisor and special envoy of the President of Mongolia, I attended this ceremony, which attracted delegates from 105 countries and 25 international organizations. Heads of state of 20 countries and many other high-ranking officials were invited. I was welcomed at the airport by a head of Standing Committee of the Parliament of Iran on August 4. We talked for a while and headed to the hotel. During our meeting, an Iranian TV Channel was recording us. I have not made any statement at that time. I would like to responsibly note that no statement have been made about Mongolia being against the US sanctions. As a member of the United Nations, Mongolia is obliged to follow the decisions made by the UN toward the Democratic People’s Republic of Korea, especially the sanctions on that matter.

Markets rattled by North Korean missile launch www.cnn.com

Russian power generators to sell excess capacity to bitcoin miners www.rt.com

Companies operating power plants in Russia have started leasing generators with excess capacity to cryptocurrency miners, Vedomosti daily reports.
According to the newspaper, the offer is a boost for crypto miners, as electricity bills consume a significant portion of their profits.

Glencore to offload second coal mine in Australia in less than three months www.mining.com

Miner and commodities trader Glencore (LON:GLEN) said Monday it has begun the sale process for a second Australian coal mine as it readies to pay up to $300 million for shares in Yancoal Australia, as part of a deal that allowed the firm to put its hands on Rio Tinto’s (ASX, LON:RIO) former coal assets in the Hunter Valley.

Mining for Sustainable Development: Mineral Licensing Corruption Risk Assessment Mongolia www.transparency.mn

Transparency International Mongolia is one of 20 national chapters participating in Transparency International’s global Mining for Sustainable Development (M4SD) Programme. The Programme is coordinated by TI Australia. The M4SD Programme complements existing efforts to improve transparency and accountability in the extractive industries by focussing specifically on the start of the mining decision chain: the point at which governments grant and award mineral licenses.

The first phase of the Programme (2016-2017) focused on understanding the problem. A corruption risk assessment was undertaken which identified a total of 14 risks, stemming from 52 systemic, regulatory and institutional vulnerabilities to corruption in awarding mineral licenses. With an understanding of the nature and causes of corruption risks, national chapters will develop and implement solutions to tackle priority corruption risks in Phase 2 (2018-2020). The chapters will work with key stakeholders from government, the mining industry, civil society and affected communities to improve transparency, accountability and integrity in the decision-making related to the approval of mining projects.

The participation of Transparency International Mongolia in the Programme is supported by the Australian Department of Foreign Affairs and Trade (ADFAT). Globally, the M4SD Programme is also funded by the BHP Billiton Foundation.

The report

The main focus of the study was the analysis of the three License Allocation Mechanisms utilized in Mongolia. The key principle, no license applicant should be discriminated against or favoured, is neglected in several points in the design of the main modes of license allocation in Mongolia, First-Come-First-Served for exploration licenses (suspended since the end of 2015) and the license tender (in practice since 2014). As a result, weak spots in these systems can be exploited in corrupt schemes and - arguably more severely – lead to uncertainties which deter quality investment. No corruption risks were identified regarding the right-of-first refusal mechanism by which exploration licence holders have a priority right to convert an exploration license into a mining license.

The report further elaborates on the three most important licence applicants’ obligations. The Detailed Environmental Impact Assessment is the key document to specify all environmental obligations and the Final Exploration Report is the main source for the development of the geological information system. To ensure accuracy, Mongolia relies on a system of third-party assessor companies compiling information and specialized councils evaluating them, but conflict of interest and limited accountability result in opportunities for corruption in return for approvals. No enforcement for inclusion of affected communities and non-disclosure of agreements significantly increase the risk of collusion and jeopardize potentialyields for affected communities from the negotiation of Community Development Agreements.

Capacity constraints to govern approximately 3,700 exploration and mining licenses emphasize the importance of a robust Governance Framework in the form of due diligence, data management, the license cadastre. While impact of corruption is moderate in these systems, shortcomings may jeopardize the efficiency of the overall governance framework, with very severe and long-lasting implications for the sector.

Finally, the report elaborates on the Prevention of Speculation. Speculation, the application for exploration licenses with the intention of selling them later, and, without investing in exploration impedes the development of the mining sector and increases the risk of corruption. Existing measures for Prevention of License Stockpiling remain largely inefficient and certain license holder rights regarding license transfers facilitate speculation. The disclosure of beneficial owners is another important mechanism which could constrain speculation and many other forms of corruption and financial crimes, but is not enforced in Mongolia.

Transparency International Mongolia will be launching the report on Tuesday 29 August amongst key stakeholders. If you would like further information about the report or Mining for Sustainability Programme, please contact Transparency International Mongolia.

Please review the full report on the link http://resource3.sodonvision.com/transparency/file/2017/8/5d1luucd6wb73n00nfpsg9col/report%20final%202017.08.24.pdf 

Meeting with President of Mongolia Khaltmaagiin Battulga www.kremlin.ru

As part of his visit to Hungary, Vladimir Putin met with President of Mongolia Khaltmaagiin Battulga.

50.8 percent of young people work in service www.montsame.mn

Ulaanbaatar /MONTSAME/ The National Statistical Office presented some interesting figures about Mongolia’s younger generation on August 25 which is observed as Youth Day in Mongolia.

Transit flights increase by 11 percent www.montsame.mn

Ulaanbaatar /MONTSAME/ Ministry of Road and Transport Development informs, transit flights increased by 11 percent, showing positive impact on the economy.

QVARTZ drives ambulance from Denmark to Mongolia for charity www.consultancy.uk

Scandinavian consultancy QVARTZ has donated £1,000 and an ambulance to the people of Mongolia, following a successful journey as part of the Mongolia Charity Rally. The Rally, in support of NGO Go Help, seeks to help provide improved healthcare and education to people living in the large, isolated Asian country.

The Mongolia Charity Rally sees teams of drivers from companies all over Europe travelling to the remote Asian nation in order to boost health and education infrastructure in the region. This year, professional services providers QVARTZ participated, launching the QVARTZbulance – an ambulance decorated in company colours – with a dedicated two-man crew consisting of Christian Østerbye and Rolf Andersen from Denmark. The Nordic top-tier management consulting firm has offices in Copenhagen, Hamburg, New York City, Oslo and Stockholm, and has been expanding operations in Scandinavia in recent years as the consulting sector continues to grow in the region.

The Rally officially launched on July 1st, in Brussels, though teams could set out from anywhere, and Team QVARTZ were waved off by the occupants of their Copenhagen office as they set out on July 7th. Teams for the event could be made up of up to four members, with either multiple drivers in one vehicle or two riders on two motorcycles. Completing their 15,000-kilometre trip after a full month on the road, the QVARTZbulance reached its final destination in mid-August, and as participants, Østerbye and Andersen had driven over mountains, across deserts, through rivers and around pot-holes in the process, in order to reach the rugged expanses of the ancient Mongol empire.

Upon arrival, the first £1,000 raised by the Herculean efforts of Quartz’ two man team was donated to Go Help, a UK registered charity which functions as a Non-Governmental Organisation (NGO) in Mongolia, with any extra donations going to charities of the firm’s choice. Go Help focuses largely on healthcare and education, hence QVARTZ’ unconventional choice of cross-country vehicle, which they will also donate upon arrival. The organisation was founded around an effort to launch and operate ambulance services in third world countries, but their cause has since expanded to include a children’s activity centre or ‘Book House’, a university scholarship programme and a mobile library, which works to reach out to isolated communities in Mongolia.

Commenting on the achievement of the two drivers in the name of such a worthy cause, Hans Henrik Beck, a Managing Director at QVARTZ, said, “QVARTZ is a civilisation of privileged people, and being privileged comes with an obligation to do good for people who need a helping hand. Donating the QVARTZbulance is a small but important part of this equation. Also, in QVARTZ, we cherish and collect iconic moments. Following this intriguing journey has been iconic for me, and it will undoubtedly also be at the top of both Rolf Andersen's and Christian Østerbye's mental iconicity wall for a very long time.”

Going the extra mile
QVARTZ are not the only consulting firm to have spent the summer going the extra mile for charity meanwhile. In June, Big Four consultancy PwC employees took part in a bicycle relay tour of the British Isles, while in celebration of their 50th birthday, Capgemini challenged employees to each walk, run, cycle or swim for a sponsored kilometre worth €1, with the aim of raising a total of €100,000 for three selected charities. Mazars also got in on the act, participating in a Strictly Come Dancing-style event that saw businesses bring in a total of £4,500 for charities.