Rio Tinto sells Kitimat wharf to LNG Canada for $576 million www.mining.com

Rio Tinto completed the lease and sale of a wharf and land in Kitimat to LNG Canada for a consideration of $576 million (about CAD$760 million). LNG has also agreed to build a replacement wharf for Rio’s export shipments of aluminum from the B.C. Works smelter.

MPP board approves to oust Mayor of UB Batbold Sundui www.zgm.mn

Mongolian People’s Party (MPP) board held a meeting yesterday and decided to oust Mayor of Ulaanbaatar city and Governor of Capital City Batbold Sundui and approved the appointment of MP Ulaan Chultem as the Minister of Food, Agriculture and Light Industry. At the forum, Prime Minister announced that he will dismiss several key officials related to alleged MNT 60 billion sell-off of public service positions. Several policy makers, including Parliament Speaker Enkhbold Miyegombo, Mayor Batbold Sundui and Head of MPP caucus Khayankhyarvaa Damdin were reportedly related to the case. The case began during the 2016 Parliamentary elections when a voice recording of three high-profile officials of the MPP went viral on social media. In the recordings, more than 8,000 jobs in Mongolia’s government and stateowned enterprises were being offered by the MPP if they won the elections, in return for the money required for their campaign.

Mongolia’s rating upgraded to ‘B’ with stable outlook www.montsame.mn

Ulaanbaatar/MONTSAME/ S&Ps Global Ratings upgraded Mongolia’s rating to ‘B stable’ from ‘B-‘ on November 9.

Why Russia and Mongolia want summits with the North Korean leader www.nknews.org

As the year comes to a close it’s clear that 2018 was a year of paradigm shifts in Korea and beyond. Among its most notable aspects, this was the year Kim Jong Un, who in his role as North Korea’s Supreme Leader has been by and large been a homebody, made several trips abroad.

Kim’s demonstrable willingness to travel outside the confines of the DPRK has subsequently spawned invitations from other states traditionally friendly to the DPRK.

This past October, Mongolia’s President Khaltmaagiin Battulga invited Kim Jong Un to visit Ulaanbaatar. Russia, for its part, has been in a state of hopeful anticipation for a visit from Kim Jong Un for the better part of this year.

South Korean ambassador to Russia, Woo Yoon-keun, recently asserted that Kim Jong Un was likely to visit Russia by the end of November this year. Nevertheless, within days the Kremlin stated that Kim’s prospective visit to Russia would not likely happen until next year.

Hopes throughout the second half of 2018 that Kim Jong Un will pay a visit to various countries naturally raises the question of why there is a sudden interest in playing host to the North Korean leader.

They have all assessed that hosting Kim Jong Un won’t send the wrong message to South Korea

When looking at the relationships China (where Kim visited three times in quick succession), Mongolia, and Russia have with the DPRK, one common thread is the idea of diplomatic equidistance.

All three countries, which in even in relatively recent history maintained exclusive ties with North Korea, have opted to attempt a delicate balance between their ties with Pyongyang and their relations with Seoul.

It seems, however that they have all assessed that hosting Kim Jong Un won’t send the wrong message to South Korea. This is especially important for Mongolia and Russia, which the South Korean government has included in its “New Northern” economic initiative.

Separately analyzing the cases of Kim’s repeated visits to China, as well as Vladimir Putin and President Battulga’s invitations to the DPRK’s leader yields interesting insights into how these countries assess the importance of ties with the DPRK.

If we can gather anything from Kim’s three visits to the PRC, it is that despite thorns in the relationship, ties between Beijing and Pyongyang remain strong. During the last two months of his life, Kim Jong Il, as if he knew that his time was near, scurried to set the stage for relations between Beijing and Pyongyang under his soon-to-be successor.

Yet in spite of the “Dear Leader’s” final efforts, events such as the execution of Jang Song Thaek and four nuclear tests have tested the vitality of China-DPRK ties. Nevertheless, China has not been willing to sacrifice its ally for one main reason.

For China, interests in the DPRK can largely be summed up with the word stability. North Korea factors into China’s desire for stability not only in terms of stemming conflict on China’s periphery, but also in maintaining strategic stability with the United States.

There are, in a manner of speaking, prestige points to be had for hosting the North Korean leader

From China’s vantage point, therefore, even as Beijing has grown demonstrably irritated with North Korea’s behavior over the past several years, China continues to see importance in maintaining its ties with Pyongyang.

THE PRESTIGE

The incentive for countries like Mongolia and Russia to invite North Korea’s Supreme Leader for a state visit, however are rather different. Indeed, whereas Moscow and Ulaanbaatar have publicly offered their official hospitality to Kim, the North Korean leader’s meetings with Xi Jinping were not made public until after the fact. Beijing had nothing to gain from advertising beforehand the fact that it had allowed Kim to sojourn in China.

For countries like Mongolia and Russia, however there are, in a manner of speaking, prestige points to be had for hosting the North Korean leader.

Mongolia-North Korea relations have a long, though not always friendly, history.

Ties between Pyongyang and Ulaanbaatar have remained stable in recent years, despite what could be considered to be then-President Tsakhiagiin Elbegdorj’s veiled swipe at North Korea’s political system while speaking at Kim Il Sung University in 2015.

Mongolia is, from a regional standpoint, geographically distant enough from the Korean peninsula so that it is not immediately affected by Korean security crisis. For Ulanbataar, however, having a voice in the Korean security crisis is crucial for one of the key aspects of contemporary Mongolian foreign policy.

A small country sandwiched between two giants, Mongolia relies on its status as a harmless, non-aligned state to play a diplomatic role in regional issues larger than Mongolia’s actual power and prestige.

A positive Mongolian role in the Korean security crisis, therefore would provide perhaps the best opportunity for Ulanbataar to prove its diplomatic mettle in small country diplomacy.

GO THEIR OWN WAY

For Russia, the key goal is restoring Russian leverage on the Korean peninsula. This must surely have been at the forefront of the Kremlin’s thinking when Russian foreign minister Sergei Lavrov extended an invitation from Vladimir Putin to Kim Jong Un in May of this year.

Since that time, speculation has included the idea that Vladivostok could serve as a venue for the Trump-Kim summit, as well as the potential that Kim could visit the Eastern Economic Forum.

Last year, noting the downturn in Sino-North Korean ties and the corresponding uptick in Moscow-Pyongyang relations, analysts raised the possibility that the Kremlin may be stepping in to replace China as the DPRK’s main international partner. Russian efforts at expanding influence, while consistent and diligent, have yet to yield any major breakthroughs.

Russia’s aim is to increase its own influence

The Kremlin, for its part, shares in Beijing’s concerns over potential instability. Yet the simple fact is that instability in North Korea will affect China much more severely than it will Russia.

Russia’s aim is to increase its own influence. Indeed, as far back as the 1990’s, Russian policymakers came to regret letting Moscow’s post-Cold War leverage with Pyongyang wane.

Thus for Russia, influence factors in more than stability. For the Kremlin to secure a state visit from Kim would signal to the world that Russia is, at the very least an independent actor in the Korean peninsula, rather than merely an associate of China.

Whether or not the events of this year mean that Kim will travel abroad more regularly is anybody’s guess. Nevertheless, where Kim has gone, and where his presence has been welcomed, offers hints at the state of how other states view their relations with the DPRK.

Whatever way Kim reacts to the invitations he has received throughout the coming year will likely offer some insights into how Kim Jong Un assesses the DPRK’s relations with his potential hosts.

By:Anthony V. Rinna
Edited by Oliver Hotham

Mongolian ambassador discusses foreign relations, democracy www.gwhatchet.com

The ambassador of Mongolia to the United States spoke Monday at the Elliott School of International Affairs about Mongolia’s global presence and its position between two superpowers.

Otgonbayar Yondon, who was nominated as Mongolia’s ambassador to the United States in May 2017, discussed the 2,000-year history of the central Asian country’s domestic politics and international relations with Russia and China, its neighbors and nuclear powers. Yondon, who has a doctorate in international relations, said he visited the Elliott School to speak “not as an ambassador, but as a scholar.”

Yondon said knowledge of the history of Mongolia’s foreign relations with China and Russia, from Mongol Emperor Genghis Khan’s 13th-century regime to the fall of the Soviet Union in 1991, is essential to understand modern-day relations with the two countries.

“Many trends today we observe have their beginnings in those times,” Yondon said.

Yondon said that when Mongolia declared its independence in 1911 from the newly minted Republic of China, Russian support was instrumental in Mongolia’s success. He added that even though the United Nations recognized Mongolia’s sovereignty, the border between China and Mongolia remained contentious for years – China maintained claims on Mongolian territory until 2002.

“There were times when these borders were not peaceful,” Yondon said.

He said tension over Mongolia’s independence has historically put pressure on Mongolian-Chinese relations for many years. He said that despite the precedent, the current diplomatic thaw between the two nations is mutually beneficial to promote trade and economic cooperation.

Yondon, who characterized his country as “a very important source of energy for China,” also discussed a recent agreement between Mongolia and its northern and southern neighbors facilitating the construction of an oil pipeline through the three countries. He said the development could bolster Mongolia’s economy but voiced concern about the cost of the initiative.

“These projects are so big that if Mongolia is expected to bear the burden of this project, we simply cannot do it,” he said. “Our economy is simply too small to sustain this kind of project.”

Looking ahead, Yondon addressed the future of Mongolia both as an independent nation and as the neighbor of two global superpowers.

Mongolia shifted from a unitary socialist regime to a democratic system in 1990 after a revolution influenced by the fall of the Soviet Union, he said. When asked about the success of democracy in Mongolia almost three decades later, Yondon was positive.

“As far as democratic institutions are concerned, I would say we have been able to make this transfer,” Yondon said. “We have been able to hold general elections nine times and presidential elections five times, and every time, the power has been transferred peacefully.”

But Yondon also said the Mongolian government could take additional steps to help its citizens. He said the introduction of free-market economics in Mongolia has made it more difficult for working-class citizens to succeed – a contrast to his own upbringing during Mongolia’s period of socialist rule.

“Because I did well in my secondary school, they picked me out for the University of Moscow,” Yondon said, referring to the socialist government. “I cannot imagine this situation taking place now.”

Rare Przewalski Foal Born, To Be Reintroduced To Mongolia www.paulickreport.com

A rare breed, the Przewalski's horse was once completely extinct in the wild. Breeding in captivity has kept the breed alive and a female was recently born in a wild animal park in Ashford, UK, at the Port Lympne Hotel & Reserve.

Russia’s grain exports surge more than 54% this year www.rt.com

Exports of Russia’s wheat and meslin flour expanded by 54.3 percent from January through September of 2018 against the same period a year ago, according to the latest statistics from the Federal Customs Service.
In terms of money, the grain exports reportedly amounted to $6 billion, marking a 62 percent growth. In September alone, the value of grain exports increased by 1.4 percent compared to the same period a year ago and totaled $898.1 million.

Invest Mongolia Tokyo on November 19 www.mongolianbusinessdatabase.com

It is only about 7 days until Invest Mongolia Tokyo will be held on November 19.
Already more than 200 people are registered to the event. 
The conference will be from 9am to 6pm on November 19.

An “Alternate Economy” Run by Chieftains www.blogs.ubc.ca

The term “informal economy” or “shadow economy” applies to a segment of the economy that is not registered, regulated, monitored, nor taxed, and yet manufactures, offers trade and services, and earns and spends income. It may also refer to the underground economy of robbery, corruption, illegal trades, and organized crime.

Alternatively, in Mongolia, a different type of economy led by parasite chieftains has formed, suppressing economic growth and social development. An “economy” so self-sustainable and circular, to the point that it extracts finances from the state budget and in turn has the political rights to spend the state budget. They approve laws and develop programs with the best possible humanitarian names, such as developing SMEs, supporting agriculture, innovation, for herders, locals, protecting animal husbandry, and promoting disabled people, which sound as if they’ll indisputably serve the citizens. Billions are allocated for these laws and programs in the state budget. Not only state funds, but tenders, concessional loans, bond loans, and whatever other ways to extract money from the state budget is an option for financing. This is not an underground economy; these processes are being registered, and their loans, budgets, taxes, and reports all seem like they’re running smoothly, legally, all according to the policy and regulations. Unfortunately, those funds will be distributed as loans, tenders, and grants in all stages only benefitting a few number of chieftains, ministers and political groups, without a penny going to the real owners or citizens. The allocation is done by chieftains of political groups unofficially. While the Mongolian economy belongs to 3.2 million people, this economy revolves around 10,000 (?) people, eliminating any opportunities for others to run their own business and innovate, devouring the majority of the country’s net profit and revenue.

These parasite members of the economy gain advantages by borrowing billions in interest free loans through backdoor deals, and then build their “SMEs” easily, or even just put it in their bank savings account, establish a non-banking financial institution and launder money with high interest rates, and/or earn unrealistically high profit within a short amount. Meanwhile, real business owners will borrow those high interest loans for their business to barely survive.

As for the “tax” and dividends, the “business owner” has no choice but to compensate these to the group which enabled the owner to get the multi-billion interest free loan. This is the real reason behind the instant expansion of some businesses, sudden construction of extravagant buildings, money laundering through real estate rents, immediate gain of wealth, and the reason land prices goes through the roof. The profit is then used to finance politics, donate to their own political party, buy off media and followers, and create an army of commenters brainwashing for their side. Whoever has the most followers, collects the most bag-holders (workers), pays them, and feeds them, are political businessmen, corporate owners, and has the most power. Gradually, one fraction of the political party or the whole party will be privatized and a private party will be formed. This is the reason why whoever can carelessly spend money in elections, why people own private television channels, and put a stop to media using a non-disclosure agreement. This is also the reason why the “political party”, despite its name, has turned into a political corporation.

Certain units such as party branch committee who work with low salaries to do the dirty work exist to fraud voters, press on their soft spot and oppress them, and distribute cash. During the election, part-time job seekers of the “we can do it” club, who allegedly distribute money and influence certain voting within certain groups, also surround the candidates. This is how political part-time jobs make up quite a bit of the labor market and income share within the Mongolian economy, and how political businessmen and corporation owners have become bosses and benefactors.

These workers do not in their conscious minds realize that they’re supporting this political network, distributing money, brainwashing the public, oppressing them, and going so low as to back-scratch these politicians, at the expense of their children’s future and their chance for a better life, all just for a small amount of money. Even ordinary citizens in both the city and rural areas have polarized political views, dividing and arguing with their brothers and friends on behalf of the parasite chieftains that they’ve declared superior. They do so in hopes that after the election, they’ll get their fair share, a crumb of the giant cake, that is the money to be extracted from the state budget. Many young people, in the name of doing politics, are “hired” in this political corporation. They show their loyalty to their master, become a cell, a tissue in the well-being of this parasite economy while unaware that they’re destroying their own future. Political corporation owners’ income and playing ground expands as individuals and businesses become poorer, their lives and businesses more challenging and burdensome. Hence, it’s in the chieftains’ best interest to evoke political instability, counteract new force and healthy thoughts, instigating the public against foreign and domestic investment, local, fair businessmen and wealth creators, and creating confusion and disorientation. Foreign interests interfere as well.

Thus, a country has formed inside a country, an alternative parasite economy within an economy. This economy benefits no ordinary citizen or business, rather revolves around the “chieftains”, their followers, and the election team which will distribute money for them. In other words, an economy for chieftains. Because this economy sucks the most from newly created wealth and state budget, no money is then available to increase teachers’ and doctors’ salaries, to build kindergartens and elementary schools, or to lend the real business owners. This is the reason jobs are not available, loan interests do not decrease, currency is unstable, businesses grow only too little no matter how hard one tries, and life does not improve.

Mongolia, and every Mongolian is being robbed of their opportunity to build, make, work, and create their future because they are seized by this parasite system and unknowingly serve it. Real change will happen not only by dethroning a few ministers and parliament members, but by eradicating this political financing structure which feeds on the state budget and ridding the state of relevant politicians. This will only be easily achievable when Mongolian people stop opposing each other politically and rather, oppose these insatiable chieftains.

About Naidalaa
Naidalaa was born in Ulaanbaatar, Mongolia (1975). He holds a BA in Business Economics from the University of Finance and Economics of Mongolia and a MSc in Economics from the University of Kobe, Japan. Naidalaa mainly worked in banking and business industries, and lead the non-governmental institutions: Mongolian Bankers Association (MBA) and Mongolia Economic Forum (MEF). In his early career, he also lectured economics at the University of Finance and Economics (UFE) of Mongolia. Areas of his interests include national development strategy, nation building, economics, sustainable development, green finance and investment.

He is also a party leader and one of founding members of the National Labor Party of Mongolia.

British Columbia revises law that regulates the environmental assessment of major resource projects www.mining.com

The British Columbia government announced this week that, after one year of consultations with Indigenous peoples, industry, communities, environmental organizations and the public, it introduced legislation to modernize the environmental assessment of major resource projects.

In a media statement, the provincial administration said that the idea behind the changes is to provide "a clear and timely path for the approval of responsible resource projects, pursue reconciliation with B.C.’s Indigenous peoples, increase public engagement and transparency and deliver stronger environmental protections."

The new legislation is also part of the Confidence and Supply Agreement signed between the National Democratic Party and the Green Party when the former was pushing to form a minority government in last year's regional election.

“Revitalizing the environmental assessment process is a key shared commitment because we both recognize the need to strengthen public trust in government decision-making,” said Sonia Furstenau, MLA for Cowichan Valley, in the media brief. “It is vital to modernize the EA process so that important considerations like climate change, cumulative impacts and new scientific standards are properly incorporated. I look forward to discussing the legislation further, so we can ensure that the wealth of our natural resources and the well-being of our ecological systems can be enjoyed by British Columbians for generations to come.”

"As a significant private sector employer of Indigenous peoples and a major partner with Indigenous businesses in British Columbia, B.C.’s mining sector is a leader in advancing reconciliation," Bryan Cox.
The legislation is expected to provide increased clarity and certainty to project proponents through an early engagement phase that will identify the focus areas for the project assessment prior to proceeding through an environmental assessment.

Additionally, the law is expected to enhance public engagement by including additional comment periods and earlier collaboration between the Environmental Assessment Office and local communities. It is also aimed at improving the ability to more fully assess positive and adverse environmental, economic, social, cultural and health effects, including greenhouse gas emissions, and require their consideration in decisions. Finally, the plan is that it also strengthens compliance and enforcement for approved projects, along with audits, to make sure conditions included in EA certificates are mitigating identified adverse effects as intended.

"B.C.’s mining industry is committed to ensuring that responsible, community-supporting natural resource projects have a clear, fair and timely path to approval under the modernized Environmental Assessment legislation," said Bryan Cox, President and CEO of the Mining Association of BC, in the media brief. "B.C.’s mining sector also plays an essential role in our transition to a low carbon economy through the commodities we mine. MABC will continue to work with government, Indigenous peoples and other important stakeholders to provide critical input to ensure the smooth transition and practical implementation of British Columbia’s new Environmental Assessment Act," Cox added.