1 MONGOLIA MARKS CENTENNIAL WITH A NEW COURSE FOR CHANGE WWW.EASTASIAFORUM.ORG PUBLISHED:2024/12/20      2 E-MART OPENS FIFTH STORE IN ULAANBAATAR, MONGOLIA, TARGETING K-FOOD CRAZE WWW.BIZ.CHOSUN.COM PUBLISHED:2024/12/20      3 JAPAN AND MONGOLIA FORGE HISTORIC DEFENSE PACT UNDER THIRD NEIGHBOR STRATEGY WWW.ARMYRECOGNITION.COM  PUBLISHED:2024/12/20      4 CENTRAL BANK LOWERS ECONOMIC GROWTH FORECAST TO 5.2% WWW.UBPOST.MN PUBLISHED:2024/12/20      5 L. OYUN-ERDENE: EVERY CITIZEN WILL RECEIVE 350,000 MNT IN DIVIDENDS WWW.GOGO.MN PUBLISHED:2024/12/20      6 THE BILL TO ELIMINATE THE QUOTA FOR FOREIGN WORKERS IN MONGOLIA HAS BEEN SUBMITTED WWW.GOGO.MN PUBLISHED:2024/12/20      7 THE SECOND NATIONAL ONCOLOGY CENTER TO BE CONSTRUCTED IN ULAANBAATAR WWW.MONTSAME.MN PUBLISHED:2024/12/20      8 GREEN BOND ISSUED FOR WASTE RECYCLING WWW.MONTSAME.MN PUBLISHED:2024/12/19      9 BAGANUUR 50 MW BATTERY STORAGE POWER STATION SUPPLIES ENERGY TO CENTRAL SYSTEM WWW.MONTSAME.MN PUBLISHED:2024/12/19      10 THE PENSION AMOUNT INCREASED BY SIX PERCENT WWW.GOGO.MN PUBLISHED:2024/12/19      КОКС ХИМИЙН ҮЙЛДВЭРИЙН БҮТЭЭН БАЙГУУЛАЛТЫГ ИРЭХ ОНЫ ХОЁРДУГААР УЛИРАЛД ЭХЛҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/20     "ЭРДЭНЭС ТАВАНТОЛГОЙ” ХК-ИЙН ХУВЬЦАА ЭЗЭМШИГЧ ИРГЭН БҮРД 135 МЯНГАН ТӨГРӨГ ӨНӨӨДӨР ОЛГОНО WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/20     ХУРИМТЛАЛЫН САНГИЙН ОРЛОГО 2040 ОНД 38 ИХ НАЯДАД ХҮРЭХ ТӨСӨӨЛӨЛ ГАРСАН WWW.NEWS.MN НИЙТЭЛСЭН:2024/12/20     “ЭРДЭНЭС ОЮУ ТОЛГОЙ” ХХК-ИАС ХЭРЛЭН ТООНО ТӨСЛИЙГ ӨМНӨГОВЬ АЙМАГТ ТАНИЛЦУУЛЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/20     Л.ОЮУН-ЭРДЭНЭ: ХУРИМТЛАЛЫН САНГААС НЭГ ИРГЭНД 135 МЯНГАН ТӨГРӨГИЙН ХАДГАЛАМЖ ҮҮСЛЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/20     “ENTRÉE RESOURCES” 2 ЖИЛ ГАРУЙ ҮРГЭЛЖИЛСЭН АРБИТРЫН МАРГААНД ЯЛАЛТ БАЙГУУЛАВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/20     “ORANO MINING”-ИЙН ГЭРЭЭ БОЛОН ГАШУУНСУХАЙТ-ГАНЦМОД БООМТЫН ТӨСЛИЙН АСУУДЛААР ЗАСГИЙН ГАЗАР ХУРАЛДАЖ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/20     АЖИЛЧДЫН САРЫН ГОЛЧ ЦАЛИН III УЛИРЛЫН БАЙДЛААР ₮2 САЯ ОРЧИМ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/19     PROGRESSIVE EQUITY RESEARCH: 2025 ОН “PETRO MATAD” КОМПАНИД ЭЭЛТЭЙ БАЙХААР БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/19     2026 ОНЫГ ДУУСТАЛ ГАДААД АЖИЛТНЫ ТОО, ХУВЬ ХЭМЖЭЭГ ХЯЗГААРЛАХГҮЙ БАЙХ ХУУЛИЙН ТӨСӨЛ ӨРГӨН МЭДҮҮЛЭВ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/19    

Events

Name organizer Where
MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

NEWS

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Raw coal ban reaps benefits in Ulaanbaatar www.news.mn

Mongolia’s capital Ulaanbaatar recorded a year-on-year decrease in the density of hazardous fine particulate matter PM2.5 in the first two weeks of November, the city’s Air Pollution Reduction Department said. The average concentration of PM2.5 in the air of Ulaanbaatar dropped to around 120 micrograms per cubic meter during the period, down 55 percent from a year earlier. In the meanwhile, the average density of PM10 stood at 170 micrograms per cubic meter, down 38 percent year on year, it said in a statement.

Ulaanbaatar is one of the most air-polluted cities of the world as half of the country’s population immigrated to the city. Smoke from shantytown ger districts where over 220,000 families live, is the main culprit of Ulaanbaatar’s air-pollution. This year, the government put a ban on burning coal in the Mongolian capital where the winter temperature falls to as low as -40 Celsius.

In March, the Mongolian government decided to totally ban the use of raw coal. Household offenders are being fined 300,000 tugriks (USD 113), while large businesses – 3 million tugriks (USD 1,134). As of today, a total of 36 violations of burning raw coal have been reported in Ulaanbaatar. In addition, the city stepped up efforts to check the use of the raw coal fuel, with 7 tons of raw coal seized since October.

In the light of the ban, the government is putting an alternative product on the market made from semi-coke, a by-product of coal. While more expensive, these fuel-efficient briquettes are said to burn twice as long and emit far less fumes. However, eight people have died of carbon monoxide poisoning in the ger districts of Ulaanbaatar and 350 have been hospitalized – 220 of them children, following the introduction of “safe” smokeless briquettes as the official alternative to coal. The incorrect use of the briquettes or inappropriate stoves have been blamed for the loss of human life. Currently, over 350 employees from Tavan Tolgoi Fuel Company are still working in the ger districts to teach people how to burn the briquettes and fix their stoves.

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South Korea replaces ambassador to Mongolia after power abuse claim www.news.mn

Lee Yo Hoon, the new Korean ambassador to Ulaanbaatar presented his credentials to Mongolian President Kh.Battulga. At the meeting, Kh.Battulga presented the Korean ambassador with some business projects for forming business councils on agriculture and tourism based on Korean know-how. In addition, the two sides exchanged views on celebrating the 30th anniversary of the establishment of diplomatic relations and on supporting young businessmen.

In May, South Korea’s Ministry of Foreign Affairs has launched a probe into allegations that the country’s top diplomat in Mongolia developed collusive ties with a visa broker and abused his authority by harassing subordinates. Following investigation, Ambassador Chung Jae-nam been recalled from Mongolia.

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Opportunities to cooperate with France in animal husbandry sector discussed www.montsame.mn

Ulaanbaatar /MONTSAME/ Representatives of the French Livestock Institute and French livestock farming companies such as ‘Interlim’, ‘Coopex Montbeliarde’ and ‘Fenvia’ have arrived in Mongolia.

The French delegates today held a meeting with Mongolian entities and farmers who are introducing high-yielding cattle and sheep imported from France, exchanging views on the results of the breeding.

During the meeting and seminar, which was held by the Embassy of France in Mongolia, Counsel for Agriculture in the French Embassy in China Mr. Francois Blanc noted that Mongolian farmers want to import livestock from France again. "This is an indication of our cooperation's results. Most of the cattle imported to Mongolia were pregnant heifers. A few number of steer have been imported. Today we met with delegates of entities that imported livestock, hearing their requests, experience and barriers. This is a good thing that Mongolian herders and farmers who are receiving the livestock are getting involved in necessary training and can build animal breeding house and prepare fodder.

Mr. Francois Blanc also stressed that quality livestock has pivotal role in current intensive animal husbandry sector. “Quality products come from quality livestock. We are aiming to improve quality of livestock in Mongolia, not naturalizing European standard in Mongolia. Because, countries have different conditions and their own adaptive conditions as well”.

Moreover, the French animal husbandry specialists and experts attended the meeting and introduced about methodology of milk and fodder manufacturing and French cooperative system while giving counsel to herders.

Ambassador of France to Mongolia Philippe Merlin, French delegates of animal husbandry as well as delegation of Mongolia’s Ministry of Food, Agriculture and Light Industry, Animal Breeding Service and companies such as ‘Gatsuurt’, ‘Nuudelchin Agro Farm’, ‘Mongol genetic service’ and ‘Mill House’ took part in the meeting and seminar themed ‘Opportunities to partner with France in animal husbandry sector’.

Additionally, 4-5 entities and farmers including ‘Khishigten Nuudel’ and ‘Taishir Urguu’ are importing cattle and sheep from France to introduce them in Mongolia.

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Deputy PM: Vietnam considers Mongolia important partner www.en.vietnamplus.vn

Hanoi (VNA) – Permanent Deputy Prime Minister Truong Hoa Binh has said Vietnam considers Mongolia an important partner in the region and wants the bilateral traditional friendship to keep growing in the near future.

During a reception in Hanoi on November 28 for Mongolian Defence Minister Nyamaa Enkhbold, Deputy PM Binh said the visit is vivid evidence of the development of the traditional friendship and all-around cooperation between the two countries, especially on the occasion of the 65th anniversary of bilateral diplomatic ties this year.

He spoke highly of the outcomes of talks between the two defence ministers and growing cooperation between the two armies, especially in the fields of military medical training, defence industry, sharing of experience in participating in United Nations peacekeeping activities, culture and arts, and military sports.

The Vietnamese government always creates favourable conditions for the two defence ministries to work effectively together, thus contributing to deepening Vietnam – Mongolia traditional friendship, he said, adding that Vietnam also stays ready to serve as a bridge for ties between Mongolia and ASEAN.

Enkhbold, for his part, informed his host on the outcomes of talks between he and his Vietnamese counterpart, which focused on the implementation of the memorandum of understanding on cooperation signed between the two defence ministries in 2013.

He believed that defence relationship will lay a trustworthy foundation for the two countries’ ties.

Mongolia wants to lift ties with Vietnam to a greater height, he said, adding that Vietnam is an important and trustworthy partner of Mongolia in the ASEAN.

He also affirmed Mongolia’s external policy of continuing to intensify ties with Vietnam./.

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Turquoise Hill: New Problems In Mongolia Won't Move The Stock For Now (opinion) www.seekingalpha.com

Summary
Finally, the Mongolian parliamentary working group shares the results of its work.

As per Reuters report, Mongolia wants to replace its interest in the project with a special royalty and receive dividends earlier than previously expected.

The final outcome of this story is still unknown. The market appears to be tired of problems at Oyu Tolgoi and is simply waiting for the final resolution.

In a number of my articles on Turquoise Hill (TRQ), including the most recent one, I noted the issue with the Mongolian parliamentary working group, which was supposed to review the implementation of the investment agreement between the company and the country. In the most recent earnings call, the company’s management did not provide any clarity on this issue. However, a week after the earnings call was held, Reuters published a report stating that Rio Tinto (RIO) (and, therefore, Turquoise Hill) was facing renegotiation of the investment agreement regarding the Oyu Tolgoi mine. While Turquoise Hill shareholders cannot call the project a success since the company’s stock has been under huge pressure for years and has lost about 70% of value year-to-date, the Mongolian side is unhappy with returns and is seeking more money. This is an unfortunate move since the project is facing additional spending and delays, but this negative catalyst cannot be avoided.

As per the Reuters report, the parliamentary working group’s recommendations included replacing the country’s 34% interest in the project with a special royalty and pushing the date when the country starts receiving dividends to the left. Both Rio Tinto and Turquoise Hill did not provide any update on this issue for investors. The latest press release on Rio Tinto’s website is dated November 4, 2019, and titled “Rio Tinto achieves significant milestone at Oyu Tolgoi.” Turquoise Hill noted the proceedings themselves but had nothing to say about their outcome. Meanwhile, the country’s mining minister stated that the project will not be stopped but the government will work on improving the investment agreement.

Of course, without any finalized resolution from the Mongolian side or the official commentary from Rio Tinto or Turquoise Hill, investors are in the dark. As I watched the stock price action in Turquoise Hill stock which failed to make a meaningful move in either side following the release of such an important catalyst, I kept thinking that it could be that the market is so tired of Oyu Tolgoi problems that it chose to ignore the issue with the potential new investment agreement until it is actually carved in stone.

That said, I think that the goals of the Mongolian politicians are crystal clear. By replacing the ownership with royalty, they will provide themselves with “money now.” To monetize a stake, you should receive dividends (none at this point) or sell it (hardly an option given what happened to Turquoise Hill shares and the valuation of the project). At the same time, a royalty is paid periodically (for example, each year), so the money will stop flowing into the budget right after a new investment agreement is done.

There’s one thing that I found truly strange in the Reuters report. Apparently, the Mongolian side wants to have a special royalty but also to receive dividends sometime in the future (sooner rather than later, I guess). At the same time, the report states that the royalty should replace the 34% stake in the project. Dividends are for shareholders – how can you get dividends if you stop being a shareholder, or how can you stay a shareholder if you replace your stake with a special royalty? There are clearly more questions than answers on this issue.

From a practical point of view, I believe that the market will be unable to make up its stance on this development in the near term. I’d also note that the year will soon end, and this means that those who have been unfortunate enough to hold Turquoise Hill shares for the whole year may consider selling them for tax purposes, putting additional pressure on the stock or at least preventing it from developing upside (unless major upside catalysts emerge – at this point, nothing points to their emergence before the end of this year). I believe that the most likely pattern for Turquoise Hill shares until the end of this year is a $0.40-0.50 trading range.

by Vladimir Zernov

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Mandal Insurance JSC will split its stock www.ikon.mn

“Mandal Insurance” JSC listed on Tier-I on MSE issued a decision to split stock at the annual general meeting of shareholders on April 30, 2019 as well as they submitted their request to split stock to Financial Regulatory Commission on May 14. Stock split of “Mandal Insurance” JSC will be 100-for-1. As a result, number of shares of the company will be 624,301,600 shares.

· FRC gave approval to split stock to “Mandal Insurance” JSC and issued a decision within the relevant law and procedure at the meeting of Today. The company highlighted, “If per share price of the company would be decreased, its stock trading activity on MSE and market capitalization would be increased. As a result, shareholders’ equity will be risen.”

· According to the decision of FRC, stock trading of the company will be temporarily halted and executed the operation to split its stock.

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National program to develop amenity services adopted www.montsame.mn

Ulaanbaatar /MONTSAME/. On November 28, the cabinet approved a national program on development of amenity services industry. The required funding for the program implementation will be reflected in government’s annual general direction and state and local budgets, to be financed by assistance and loans from international organizations and foreign countries.

The program, covering 2020-2024, will increase the number of public shower facilities and other amenity services and their working capacity. For instance, there were 9019 public shower facilities and amenity service points in 2018, the number will grow 10 thousand by 2024. The number of employees of this industry, which was estimated at 22 thousand, will reach 32 thousand in 2024.

As of 2018, around 25.2 percent of the people working in the amenity service industry was engaged in hairdressing and beauty services, 20.2 percent of them in tailoring and dress making, 11.6 percent in carpentry and others in public showers, photo prints, dry cleaning, shoe repair and others.

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Mongolia to provide 45,000 USD in humanitarian aid to Australia www.xinhuanet.com

The Mongolian government on Thursday decided to provide 45,000 U.S. dollars in humanitarian aid to Australia, after parts of the country were devastated by widespread bushfires.

"Several people have (died) and hundreds of properties were lost in bushfires in the Australian states of New South Wales and Queensland. Therefore, the government made the decision during its regular meeting," the government's press office said in a statement.

Around 7,000 Mongolian citizens are studying and working in Australia, mostly in New South Wales, the press office added.

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Russia & China mull dozens of joint investment projects worth $112 billion www.rt.com

A joint Russia-China investment body is considering 70 projects totaling $112 billion, Russia’s sovereign wealth fund has announced after an intergovernmental commission meeting in Beijing.
On Tuesday, delegations from the Russian Direct Investment Fund (RDIF) and a private equity fund established by the RDIF and China Investment Corporation (CIC) called Russia-China Investment Fund (RCIF) joined the 6th meeting of the Intergovernmental Russian-Chinese Commission for Investment. Apart from the multi-billion dollar cross-border projects, the two sides discussed investment, trade and economic cooperation.

“The Committee has already helped implement cross-border projects worth more than $10 billion. The RDIF and CIC have also invested through the RCIF in a number of projects independently,” the Russian wealth fund said in a statement after the talks.

At the same time Russia’s sovereign wealth fund together with the RCIF and the investment fund for Guangdong province, Guangdong Utrust Investment Holdings, agreed on key terms to set up $1 billion fund. The body, dubbed the Russian-Chinese Greater Bay Area Fund, is aimed at strengthening mutual trade and economic ties between companies from the two states. It will also promote Russian business in Guangdong, the Chinese province that accounts for the biggest share of the country’s GDP, and encouraging local companies to enter the Russian market.

“This fund creates great opportunities for Russian companies,” Kirill Dmitriev, the head of Russia’s sovereign wealth fund, said. “Cooperation between RDIF, RCIF and Guangdong Utrust is developing steadily, and I am confident that we are moving in the right direction towards large-scale joint projects that will serve to further strengthen the partnership between Russia and China.”

China is Russia’s largest trade partner, with the volume of trade exceeding $100 billion in 2018 and expected to double in five years. In recent months, Beijing and Moscow have also been working to boost mutual trade in their national currencies, the ruble and the yuan, as they move to lessen dependence on the US dollar.

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ADB to work closely with Mongolia after "grey list" addition www.xinhuanet.com

The Asian Development Bank (ADB) will cooperate closely with Mongolia to remove the country from the Financial Action Task Force's (FATF ) "grey list", Pavit Ramachandranthe, the ADB's new country director for Mongolia, said Monday.

Ramachandran made the remarks during his meeting with Mongolian Parliament Chairman Gombojav Zandanshatar, according to the parliament's press office.

"The ADB has been one of Mongolia's closest partners. The Mongolian economy has been recovering thanks to the implementation of the International Monetary Fund's Extended Fund Facility," Zandanshatar said.

"However, getting out of the FATF's 'grey list' is now a major issue for Mongolia," he added.

Mongolia was added to the list by the FATF, an anti-money-laundering organization, in October after the country failed to pass requirements to combat money laundering and the financing of terrorism.

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