The company’s sold two million tons of solid coking coal in the reporting period. The volume of washed solid coking coal sales increased by 14 percent from the same period of the previous year, according to MMC’s report.

MMC increased its sales by using the channels of Inner Mongolia, Gansu, Hebei, and Tianjin. The company also sold 300,000 tons of coal to Tavan Tolgoi Tulsh LLC free of charge. With high demand and coking coal prices, the company aims to perform the highest level of production and sales in the second half of the year. MMC’s sales revenue rose 19.6 percent to USD 325.6 million in the first half of the year. The average price of solid coking coal at core sales was slightly above USD 147 per ton. In the meantime, China’s steel production has also accelerated, up by 10 percent.

The amount of Mongolia’s government-backed bonds expected to mature between 2021-2024 is approximately USD 14.5 billion. The Government of Mongolia (GoM) has developed a foreign debt management strategy that will limit debt rise, diminish its debts over the same period without paying a large amount of payments.

Mongolia’s credit rating and interest rates have changed dramatically since the country issued its first bonds on the international market in 2012. At the time, Chinggis bond was issued at 5.175 percent yield, and it increased to 11.7 percent in 2016. During this period, Mongolia’s credit rating downgraded more than three times and the interest rate on drawing loans in the foreign markets increased almost three times.

According to BoM, total external debt has grown rapidly in recent years. Over the past two years, Mongolia has been involved in the Extended Fund Facility Program by the International Monetary Fund (IMF) and is aiming to pay off its pending debts.

“Mongolia depends on the mining sector, which accounts for 90 percent of total exports and over 70 percent of foreign investments. If repayment of the external debt and the downfall of the mining commodity prices occur at the same time, it could put the entire economy at risk,” warn the banking industry experts.

After dropping to USD 1 billion in late 2016, foreign exchange reserves of Mongolia reached USD 4 billion in the second quarter of 2019. Both BoM and the IMF have estimated that Mongolia needs to further increase its foreign exchange reserves by encouraging gold purchases.

Last year, the Bank of Mongolia purchased 22 tons of gold and increased foreign reserves by USD 800 million. With the additional fee in mineral royalty and declines in gold mining, the Central Bank’s gold purchases fell by around 20 percent.

The Red Deer-1 well was drilled to a total depth of 2000 metres, on budget with a total cost under $4m.

'While the results of the Red Deer-1 well are disappointing, it was the first well to be drilled in any of the basins located in the south of Block XX and it therefore carried a lower chance of success than the wells in the north,' chief executive Mike Buck said.

'The company's activities are now focussed on drilling and testing operations in the north of Block XX and we look forward to updating the market further on the spudding of Gazelle-1 and the testing on Heron-1.'

At 2:34pm: (LON:MATD) Petro Matad Ltd share price was -1.5p at 5.25p

Deputy Director for development issues of the Erdenet Mining Corporation P.Enkhbat:

“The Erdenet Mining Corporation, fully achieving its goals planned for the first eight months of 2019, has brought in MNT 688 billion to state and local budgets. In addition, millMAX™ pumps produced in the USA as well as a new line with inert-gas equipment of the WEMCO brand will be put into operation in a short time at the powder enrichment processing factory. As reflected in its general development plan for 2017-2030, the Erdenet Mining Corporation is working to implement five large-scale projects for the duration of 15 years. These include building copper concentrate enrichment and gas metallurgical processing plant, introducing new technologies in the open pit mine and cathode copper plant and re-determine the reserve.

The Erdenet Mining Corporation has been operating as a state-owned enterprise fully owned by Mongolia since the government’s decision dated 21 March 2019 to re-establish the Erdenet Mining Corporation as a state-owned enterprise. Successfully fulfilling its performance plan, the Erdenet Mining Corporation has earned MNT 688 billion to state and local budgets through sales totaling MNT 1 trillion 341 billion, as of August 31 this year.

Approximately 400,000 tons of wheat is planned to be harvested. In this year, 364,800 hectares of cereals, of which 340,100 hectares of wheat, 14,800 hectares of potatoes, 80,000 hectares of vegetables, 82,400 hectares of oil, 42,000 hectares of fodder plants, sowing total 512,000 hectares. In some soums of Bulgan, Khuvsgul, Orkhon, Arkhangai, Uvurkhangai, Uvs and Selenge provinces, crop yields are expected to decrease slightly over the Tuul, Darkhan-Uul, Dornod, Khentii, Sukhbaatar, and Selenge provinces due to overheating and drought. However, it is possible to supply wheat needs domestically.

Additionally, the government plans to increase wheat prices by MNT 50,000 per ton to improve the supply of wheat.

The Mongolian Government debts have risen from over USD 4 billion to USD 7 billion. The country issued its first ever bond in 2012. However, Mongolia’s credit ratings and interests on debts have changed gradually over the 2012-2016 period. Mongolia issued the famous Chinggis Bond with 5.175 percent interest in 2012; increased to 11.7 percent in 2016. During the period, Mongolia’s credit ratings have been downgraded 3-4 times and interest on foreign debts have risen by 2.6 times.

As for August, 2019, inflation stood at 8.9 percent; an increase of 1.2 percent from July; this was due to the increase in the price of flour and meat combined with the annual burden of university and other educational fees.

The construction of the 1,100-meter overpass, which started in April last year, was built by China Railway 20 Bureau Group Co., Ltd.

Witnesses at the opening ceremony include senior officials from China and Mongolia: the Chinese Ambassador to Mongolia Xing Haiming, Mongolian Prime Minister Ukhnaa Khurelsukh, Mongolian Minister of Road and Transport Development Byambasuren Enkh-Amgalan and Mayor of Mongolia's capital Ulan Bator Sainbuyan Amarsaikhan.

The Chinese ambassador expressed hope that the overpass can effectively reduce the interference of railways on municipal roads, reduce traffic congestion, facilitate travel for citizens, and play an important role in accelerating the modernization of Ulan Bator's road traffic.

For his part, the Mongolian prime minister expressed his sincere thanks to the Chinese side for the strong support and assistance to Mongolia's development.

"Ulan Bator was originally built with a plan to have 500,000 residents. Today, the city has become a big city home to around half of the country's population of 3.2 million," Khurelsukh said at the ceremony.

"As the city expands, the country has been suffering urban diseases, especially traffic jam. I am fully confident that the China-funded overpass can contribute significantly to reduce traffic congestion in the capital city," said Khurelsukh.

At the occasion, Xing said that the 2019 year marks the 70th anniversary of the establishment of China-Mongolia diplomatic relations, the 25th anniversary of the revision of the Treaty on Friendship and Cooperation between China and Mongolia, and the 5th anniversary of the establishment of a comprehensive strategic partnership.

This year, the pragmatic bilateral cooperation ushered in a bumper harvest, with a number of major cooperation projects completed, said Xing.

Since the beginning of this year, with Chinese non-refundable aid and soft loans, several such high-standard and modern facilities as a development center for disabled children, highways, overpasses and agricultural machinery have been handed over to the Mongolian side, reflecting the high level of pragmatic cooperation between the two countries, according to the ambassador.

During her two-day visit, Stoiljkovic will meet senior government officials, representatives from financial institutions, and business leaders and visit projects supported by IFC, the largest global development organization working with the private sector in emerging markets.

“Mongolia is a unique country, with unique opportunities and challenges,” Stoiljkovic said. “IFC has been working in Mongolia since 1997 to help support the country meet its development challenges. I am keen to hear first-hand how IFC can do more to help Mongolia further diversify its economy and spur jobs for people, particularly Mongolia’s youth.”

IFC has been operating in Mongolia since 1997 and providing finance across many sectors, including banking, healthcare, hospitality, mining and services. Our most recent investment was a $65 million loan package to XacBank to support access to finance for more than 44,000 micro, small and medium sized enterprises in Mongolia. Support of MSMEs will continue to be one of our main focus areas.

“We know too many enterprises have been struggling to gain access to the finance they need to expand their businesses and create jobs,” Stoiljkovic said. “This financing will clearly help and IFC is also keen to explore other opportunities for investments to help the country build a more competitive, sustainable and diversified economy.”

IFC and its sister organization, the World Bank, both members of the World Bank Group, have been providing policy advice and technical support to Mongolia to enhance investment policy, restore investor confidence, diversify exports, and build institutional capacities.

Over the past 22 years, IFC has invested $2.6 billion — $849 million from its own account and $1.77 billion in syndication — in 35 private-sector projects across Mongolia’s key industries.

Source: IFC

2. The official programme of President Battulga includes a ceremonial reception at Rashtrapati Bhavan, visit to Rajghat, meetings with President, Vice-President and Prime Minister. A Banquet will be hosted by President Kovind in honour of the visiting President. President Battulga will also participate in an India-Mongolia Business Forum in New Delhi.

3. During the visit the two sides will hold in-depth discussions on a range of bilateral, regional and global issues and will also review ongoing cooperation in fields of infrastructure, energy, disaster management, defence, security, culture and capacity building.

4. India and Mongolia had established a Strategic Partnership in 2015 during the visit of Prime Minister Modi to Mongolia. A number of high-level exchanges have taken place since then. The partnership has seen considerable progress during the last few years. India-Mongolia Strategic Partnership is based on the ideals of freedom and democracy and on a strong foundation of our shared Buddhist heritage. India is executing an Oil Refinery Project under its Line of Credit of US$ 1 billion announced during the vist of Prime Minister Modi in 2015.

5. The State visit of H.E. Battulga will help in further deepening and broadening the Strategic Partnership between India and Mongolia.

New Delhi
September 16, 2019