Five months ago, MP L.Enkhbold was the first to reveal 268.3 tonnes of coal being stolen from the Tavan Tolgoi mine and requested that the case be investigated. After that, the working group led by Ch.Khurelbaatar, was established at the request ofthe Prime Minister to Cabinet. The working group includes officials from over 10 agencies of Mongolian Government such as General Agency for Specialized Investigation, Mongolian Customs Administration and the Mineral Resources Authority of Mongolia. MP.Enkhbold is dissatisfied with work of the Independent Agency for Anti-Corruption.

According to a statement from the General Authority for Border Protection, a total of 849,121 coal trucks entered the Mongolian custom zone between 2013 and 2017. However, this does not tally with a report from the Mongolian Customs Administration which that it was 814 thousand coal trucks. So, there is 35 thousand coal trucks difference. A coal truck transports 80-125 thousand tonnes each time.

"There are no other projects in the world like the BRI which connects (about) 70 countries across Asia, Africa, Europe and Oceania," Dashdorj Bayarkhuu, a professor at the Mongolian Diplomatic Academy, told Xinhua in a recent interview.

According to him, under the BRI framework, international cooperation in areas including infrastructure and the economy could benefit the whole world.

This year marks the fifth year since the BRI was first put forward by Chinese President Xi Jinping in 2013 to expand cooperation and relations between China and other countries.

"Mongolia has supported the BRI from the onset and actively participated in it," Bayarkhuu said.

He added that Mongolia's wish to dovetail its Prairie Road development strategy with the BRI is an example of Ulan Bator's support for the initiative.

Highlighting landlocked Mongolia's geo-strategic location, he said it can gain a lot from the BRI. The construction of the China-Mongolia-Russia economic corridor, for example, will bring benefits to the Mongolian economy and all Mongolian citizens.

Mongolia and China should continue to deepen cooperation in this regard and accelerate the implementation of bilateral agreements as soon as possible, he added.

Chinese State Councilor and Foreign Minister Wang Yi last Friday met with the governors of five western provinces of Mongolia. The officials expressed their readiness to strengthen cooperation, especially with their neighboring Chinese provinces, in areas including agriculture, tourism, border trade, cultural exchanges and infrastructure

He expressed confidence that the project “will become a symbol of Russian-Japanese friendship and a bridge between our countries.”

Japan’s Deputy Minister of State Lands, Infrastructure, Transport and Tourism, Toshihiro Matsumoto, noted that the Trans-Siberian Railway (TSR) has a great development potential for both Russia and Japan.

“We believe that Japanese companies are interested in using this route, and I hope that we will reach a deeper understanding between the carriers of the two countries in the process of implementing this pilot project,” he said.

The shipments will be carried out in containers fitted with temperature, humidity and vibration sensors.

According to Russian Railways (RZD), the first 40-foot container has been dispatched this month from the Japanese port of Kobe to the port of Vostochny in Russia’s Primorsky Krai.

The container is planned to be transported further by rail to Russia’s Kaluga region and after the customs clearance procedure it will be finally delivered by road to the Moscow region. The approximate delivery date is 1 September 2018, which will result in a total travel time of just 14 days.

The next test shipment from Japan to Russia along the Trans-Siberian Railway is scheduled for 31 August 2018, according to RZD.

Current freight transport between Japan and Russia mainly uses sea and air routes. It takes between 53 and 62 days to ship freight from Japan to Moscow using a sea route that crosses the Indian Ocean. The new freight route via the railway will significantly cut transportation time between the two countries and costs could be reduced by up to 40 percent.

The Trans-Siberian Railway connects Moscow with the Russian Far East with a travel time of seven days. It is 9,289 km (5,772 miles) in length and spans a record eight time zones.

The balance of payment (BoP) came out positive in the first half of this year driven by foreign exchange (fx) inflow and foreign direct investment (FDI) reaching USD 879 million. Officials explained that Oyu Tolgoi investment was the key driver in the growth with over USD 700 million, accounting for 80 percent of FDI. The remaining was formed by coal sales, according to the BoM. Furthermore, experts expect the fx inflow to keep the pace and forecast the outflow to be stagnant as there are no major debt repayment due this year. The Government was obliged to repay MNT 3.8 trillion in loans this year and settled MNT 2.7 trillion in the first seven months. On the contrary, USD 836 million will be brought into Mongolia within the International Monetary Fund’s Extended Fund Facility program. Thus, the BoM expects the MNT rate to remain stable in the upcoming months and forecast the BoP to result USD 200-300 million in surplus. As of June, Mongolia’s fx reserves stood at USD 2.9 trillion, which is 2.5 times higher than the same period of last year.

Furthermore, the ministry plans to reserve 51,000 tons of wheat seed for the next year’s harvest, as well as supplying 330,000 tons of food-purpose wheat to manufacturers for the flour demand of the population. In addition, the ministry is now working to establish crop zones and implement the Government’s decision of May on setting up security fences along forests. Preparations of Erdenes Tavan Tolgoi IPO complete Another key topic at the Cabinet’s meeting was the IPO of Erdenes Tavan Tolgoi JSC (ETT). The working group responsible for the initial public offering announced that the preparatory works of offering the 30 percent stake of ETT at domestic and foreign stock exchanges have been finished. In accordance to the decision on IPO, the working group informed that the company’s rules must now be amended; thus, an irregular meeting of shareholders has been scheduled next month. The team also announced that their assignments, such as international auditing, legal and financial advisory services, and renewal of deposit reserves, have been completed.

Particularly, exports rose by 2651.5 tons compared to June this year, increasing income by MNT 14.3 billion, which indicates an average export of 3281.5 tons of meat per month.

In comparison with 2017, exports of horse meat grew by 1.4-fold, mutton and goat meat by 4.3-fold, heat-treated meat by 2.6-fold on average. The increase in meat export indicates the outcome of Government’s policy on creating an opportunity to export value-added products by improving the competitiveness of grocery production and becoming a food exporter country by developing processing plants in line with international standards, as well as the successful implementation of the first campaign of meat and milk, officials said.

M.Anudari

Cabinet allotted 59.6 billion MNT for 860 mortgage loans, while the Bank of Mongolia has financed 1,187 mortgage loans with 96.2 billion MNT.

It is expected that a total of 300 billion MNT will be allocated for mortgage loan financing in 2018 for an estimated number of 5,000 borrowers.

As of July, the total number of mortgage loan borrowers exceeded 93,000, with outstanding mortgage loans valued at 4.2 trillion MNT.

CEO of Gashuunsukhait Road Company Ts. Bold said that the line's length is currently at 85 km.

He explained that the Chinese side has slowed down the process of purchases, rsulting in the lengthy logjam. Bayan Zam Union has stated that Cabinet Resolution No.185 on the readjustment of coal transportation routes is the main cause of the current logjam.

A joint working group, appointed by the Ministry of Mining and Heavy Industry and the ETT, has completed the preparations to trade up to 30 percent of the company’s total shares on foreign and domestic stock exchanges.

In accordance with the resolution to trade up to 30 percent of the company’s total shares, it is necessary to amend the company's rule. Therefore, the cabinet decided to call a irregular meeting of the shareholders next month.

In connection with the activity of trading shares, the working group completed duties to receive advisory services on international audit, legislation and finance and re-estimate the deposit's reserve.

M.Anudari

At the meeting, Russian delegation including M.V.Vasiliev, Trade Representative of Russia to Mongolia, Deputy Head of Department of Investment Policy of the Chamber, Director of Ochakovo Company and representatives of Tyumenistalimost and Slada companies introduced their products.

In particular, Ms. Belousova Lola, manager of Slada Company, which produces over 40 thousand tons confectionaries per year and exports its products to China, Belarus, Uzbekistan, Ukraine and Mongolia, said "The survey shows that Mongolian consumers enjoy Slada's products; thus, we are willing to increase our sales in Mongolia."

During the business visit, B2B meeting took place, at which business people of the two countries exchanged views and sought cooperation opportunities.

The Mongolian side expressed its interest to collaborate with Ochakovo and Slada companies and develop cooperation in agricultural field, requesting to connect with companies of this field through the Chamber of Commerce and Industry of Tyumen region.

M.V.Vasiliev, Trade Representative of Russia to Mongolia said that it has been over a year since the Russian Trade Representation Office was opened in Mongolia. During this period, business relations between the two countries have improved and bilateral trade turnover has been increased by 40 percent.

B.Batchimeg