Erdenes Tavan Tolgoi JSC gains net profit of MNT373.3 billion www.montsame.mn

Ulaanbaatar/MONTSAME/ On July 30, B.Gankhuyag, CEO of ‘Erdenes-Tavan Tolgoi’ JSC, introduced a 2018 half-year report of the company.

In the beginning of his report, B.Gankhuyag, CEO of Erdenes Tavan Tolgoi JSC remarked, “Since our company established in 2010, we encountered a number of socio-economic and financial complications and coal price downs, which led us to be incapable to pay wages. Sometime, we even stopped mining operations, due to politicians’ decision. Today, we have overcome such difficulties. In other words, we will have financial opportunities and great future. The statistics indicates how the company is fulfilling its duty sufficiently before three million people of Mongolia, the shareholders of the company”.

ETT’s half-year report shows positive indications. According to first half of the year, the company exported 6.9 million tons of coal, earning MNT 953 billion that stands at 78 percent of the total planned revenue in 2018. The company paid MNT216.5 billion to the state budget as duty and fee. By doing so, the company has earned the net profit worth MNT373.3 billion.

As the ETT’s financial condition has improved, it has now been solvent to fund some of its projects with its own money. In addition, the company has created a fundamental economic condition to put 1072 shares of every shareholder into economic circulation, highlighted the company authorities.

The profit of the company is based on the coal price. The company held talks with Chalco Trading Hong Kong Co Limited. As a result, the both sides reached an agreement to raise the coal price to USD61 per ton and set it as the fundamental price. It ensures the company to keep distributing the coal at USD61 per ton, even if the coal price in the world market goes down. In case coal price goes above USD61, the company will raise the price in accordance with the world market price. Moreover, the supply price for coal being excavated at Western Tsankhi and other blocks is set by an open tender. This year, it has been set at USD70 per ton, which means price of coal being supplied except Chalco Trading Hong Kong Co Limited is USD70 and it led to net profit increase of the company.

Alongside the economic indicators, there has been improvement in social issues of employees. For instance, a basic salary of workers was raised by 21 percent, night work pay was increased by five-fold as well as labor safety incentive has been reached 15 percent.

As a preparation to make IPO at world capital market, the company started taking actions to collaborate with stock exchanges and financial and legal consultants and have its auditing done by international accredited organization.

Concluding the report, B.Gankhuyag said, “Our company has a total of 2,511,000 shareholders—Mongolian citizens. However, just 300 thousand people have their registration account opened and about 600 thousand have not authenticated their rights to own the shares. Therefore, we are working to intensify this issue.“

M.Unurzul

President Kh.Battulga supports Third Neighbor Trade Act www.president.mn

Ulaanbaatar /MONTSAME/ President Kh.Battulga expresses full support and gratitude to the sponsors of the bipartisan H.R.6636, the Mongolia Third Neighbor Trade Act, which was introduced for consideration in the U.S. House of Representatives. Rep. Ted Yoho (R-FL-3), Rep. Dina Titus (D-NV-1), Rep. Don Young (R-AK-At Large), Rep. Mark Meadows (R-NC-11), Rep. Brian K. Fitzpatrick (R-PA-8), Rep. Elise M. Stefanik (R-NY-21), Rep. Jared Polis (D-CO-2), Rep. David E. Price (D-NC-4), Rep. William R. Keating (D-MA-9), and Rep. Dwight Evans D-PA-2) represent a broad political spectrum of support for Mongolia. Hopefully, the House and Senate will vote and approve this legislation.

Mongolia has consistently adhered to the principles of equality and mutual respect of interests in its foreign policy. This legislative bill is an important milestone to further strengthen Mongolia-U.S. alliance and demonstrates our bilateral cooperation that strengthens the economic security and democracy of Mongolia.

Last year, Mongolia celebrated 30 years of diplomatic relations with the United States. Our land is bordered by Russia and China, yet Mongolia refers to the United States as its ‘third neighbor’.

Total Mongolia-U.S. trade in 2012 measured a record USD 707 million, but in 2017 Mongolia exported only USD 9.4 million, while importing just USD 82.2 million in goods from the United States. There is much room for growth for both U.S. imports and Mongolian exports.

Mongolia has supported the U.S. efforts in Iraq and Afghanistan since 2003. This underlines our deep commitment to democracy, rule of law, human rights, and a robust free market economy.

Cashmere, fine wool obtained from cashmere goats, industry is essential to Mongolia’s economy. Over a third of the population of Mongolia works in the animal husbandry sector, and cashmere provides income and employment for the majority of these people. Agricultural products are Mongolia’s second largest export after the mining sector, and cashmere products constitute the biggest share in the agricultural exports.

In 2017, only 1,100 tons out of total of 9,400 tons raw cashmere, which is almost 50 percent of world cashmere, is processed within the country while the rest of 8,300 tons is exported mainly to China in raw without adding value. The United States buys nearly all of its cashmere products from China. Duty free treatment of Mongolian cashmere and other textile garments exports to the United States would facilitate increased trade with the U.S. and reduced Mongolian export dependence on one country and single sector of mining. This would allow Mongolia to diversify its trade and ensure its sustainable economic growth.

The development of Mongolia’s garment industry would also promote women’s employment and empowerment. Women have historically participated in Mongolia’s garment industry at high rates, and the garment industry has historically provided safe and stable employment for women in Mongolia.

Mongolia's Tavan Tolgoi coal mine sees profits surge in H1, raising IPO prospects www.reuters.com

ULAANBAATAR, July 30 (Reuters) - Revenue from Mongolia’s giant Tavan Tolgoi coal mine surged in the first half of the year due to higher commodity prices and a big jump in coal exports, the project’s owner said on Monday, raising prospects for a planned overseas listing.

Lotte Considers Selling China Malls Amid Anti-Korean Sentiment www.bloomberg.com

Lotte Group, reeling from a wave of anti-Korean sentiment in China for more than a year, is considering selling some of its department stores in the country, a move that would accelerate the conglomerate’s withdrawal from the world’s second-largest economy.

'Happy with tariffs': Steel industry emerges as trade war winner www.cnn.com

1. Blockbuster profits: The trade war has cast a shadow over parts of Corporate America, but it is bringing a bit of good fortune to the steel industry.
President Donald Trump's metal tariffs have sent steel prices surging and sparked blockbuster profits for steel manufacturers.

Reliance Steel & Aluminum (RS) hauled in record sales, thanks to an 18% spike in prices. Nucor (NUE) recorded the best second quarter in its history. Its profit more than doubled.

"All in all, we're very happy with tariffs," Nucor CEO John Ferriola told analysts earlier this month.

Those words haven't been uttered by many other corporate bosses, who are grappling with sticker shock.

Tariffs levied by the United States and major trading partners are eating into the profits of Harley-Davidson (HOG), General Motors (GM), General Electric (GE), 3M (MMM) and hundreds of other companies. CEOs are scrambling to raise prices and reshuffle their supply chains.

Unsurprisingly, steel companies are feasting on a price spike from Trump's 25% steel tariff. The benchmark price of US-made steel has zoomed 41% higher since the start of the year to $917 per short ton, according to S&P Global Platts.

Tariffs aren't the only factor. Steel demand is strong in an economy that just clocked its fastest growth since 2014.

Following the booming profits from Nucor and Reliance, US Steel (X) and AK Steel are scheduled to report results this week.

Both steel makers are expected to reveal a jump in revenue, though not by as much as their rivals. That's because US Steel and AK Steel (AKS) are locked into annual contracts that have fixed pricing. Those contracts expire later this year, potentially allowing them to capitalize on the price hikes.

Nucor is seizing on the momentum to plow $1 billion back into its business, a huge increase that will mostly go toward expansion.

"What will happen to our great country if we continue to operate with a massive trade imbalance?" Ferriola asked. "We agree with the administration's efforts to address this issue."

Of course, steel customers are less than thrilled.

Material costs have risen by as much as 50% at FJM Ferro, a Brooklyn company that fabricates steel used in Manhattan skyscrapers.

Steel companies may have record profits, but it does hurt the mom-and-pop shops," said Joe Casucci, FJM Ferro's founder and CEO.

Even large companies are getting squeezed. GM slashed its profit outlook last week, warning of a $300 million jump in commodity costs linked to higher steel and aluminum costs.

"You have to be careful with tariffs because there's always a cost," said Philip Gibbs, a steel analyst at KeyBanc Capital Markets.

He pointed out that spiking US steel prices threaten to make American businesses less competitive. Some companies may eventually try to find other ways to get steel into the country.

"It feels good in the short run as prices go up," Gibbs said. "But then all the customers complain."

2. Jobs report: Economists are expecting another solid month of gains when the Labor Department reports Friday on job growth for July.

The US economy has cranked into high gear, growing at the fastest pace in almost four years, and unemployment is 4%, near the lowest in a half-century.

Economists surveyed by Thomson Reuters expect 195,000 jobs were created in July, roughly in line with the average for this year.

3. Fed watch: The Federal Reserve is not expected to raise interest rates when it meets on Tuesday and Wednesday. But investors will be watching the Fed's statement closely for its read on the economy and clues about interest rates.

The Fed has signaled that it plans two more rate hikes this year and three in 2019.

4. Critical moment: This may be the most closely watched earnings report in Tesla's history.

The electric car maker reports results on Wednesday. Tesla just hit an important target for production of the Model 3, its most accessibly priced car. But Tesla is trying to stop mounting losses, and Elon Musk keeps making headlines with bizarre tweets.

5. Apple earnings: Apple will release is quarterly results on Tuesday, and a strong report could push the most valuable company in America to a milestone — a $1 trillion market cap.

Analysts may question Apple executives on whether the trade war its hurting the bottom line. And Apple fans will be hunting for hints about the next iPhone.

6. Coming this week:

Monday — Caterpillar (CAT) earnings

Tuesday — Eurozone second-quarter GDP; Pfizer (PFE), Procter & Gamble (PG), Apple (AAPL) earnings

Wednesday — Fed statement; Humana (HUM), Sprint (S), Tesla (TSLA) earnings

Thursday — Bank of England meets; Berkshire Hathaway (BRKA), Yum Brands (YUM), Aetna (AET) earnings

Friday — US jobs report; Kraft Heinz (KHC), Toyota (TM) earnings

CNNMoney (New York)
First published July 29, 2018: 7:18 AM ET

Civil servant salaries to be raised in Q4'18 www.gogo.mn

An International Monetary Fund (IMF) delegation is working in Mongolia to conduct a 5th review of Mongolia’s extended fund facility (EFF) program. Cabinet and the IMF staff reached an initial agreement to raise salaries for civil servants in the fourth quarter of 2018. On July 26, Minister of Labor and Social Welfare S.Chinzorig reported that negotiations will continue on salary increases.

More than 20,000 households to take part in the Refined Fuel Project www.gogo.mn

Cabinet issued a decree to completely ban the use of raw coal in Ulaanbaatar, starting in May 2019. State authorities, including the Ministry of Nature, Environment and Tourism and the Ministry of Energy, have been conducting research regarding future demand for refined fuel and supply levels, along with price stabilization. This September, the state plans to conduct a test run of the Refined Fuel Project with participation from more than 20,000 households residing in highly-polluted areas.

Mongolia to implement digital training project with USD 2 million www.montsame.mn

Ulaanbaatar /MONTSAME/ The Ministry of Education, Culture, Science and Sports and Allin Technologies Pte Ltd of Singapore signed an agreement on implementing a project ‘Digital training’ on July 26.

LendMN to have access to Viber resources www.montsame.mn

Ulaanbaatar /MONTSAME/ The first Mongolian fintech financial services company LendMN was selected to join the Rakuten Accelerator program powered by Techstarts, kicked off on July 16 in Singapore. The program is considered as one of the best startup incubator and accelerators.

Turkish School Leader Abducted, and Released, in Mongolia www.nytimes.com

A Turkish educator in Mongolia was briefly abducted on Friday, in what appeared to be the latest episode of a global campaign by Turkey’s president to capture suspected allies of the exiled cleric accused of plotting a 2016 coup attempt.

The educator, Veysel Akcay, runs a network of international schools that has been associated with the exiled Turkish preacher Fethullah Gulen. President Recep Tayyip Erdogan, who blames Mr. Gulen for the failed coup, has purged tens of thousands of suspected Gulen supporters from government and military posts, and seized dozens of people from abroad.

Turkey has maintained that it extradites suspected Gulenists only with the permission of the foreign governments concerned. But the case of Mr. Akcay, who has lived in Mongolia for nearly 25 years, appears to cast doubt on that claim.

Mr. Akcay was near his apartment building in the capital, Ulan Bator, on Friday morning when he was bundled into a Toyota minivan, according to a colleague, Ganbat Batbuyan, who was in communication with the Mongolian police. That account was corroborated by two other people, including another colleague and a senior Mongolian official, who spoke on condition of anonymity because they were not authorized to discuss the case.

Mr. Ganbat, the Mongolian general director of the Empathy foundation, which runs the Mongolia-Turkish schools, said the Mongolian police told him that the vehicle had a fake license plate and that three masked people were inside.

Several hours later, what the Mongolian Ministry of Foreign Affairs described as a Turkish-chartered aircraft landed at Ulan Bator’s airport. It was a Bombardier jet with a call sign matching that of a plane operated by the Turkish Air Force, according to an online flight-tracking service, Flightradar24.

As word leaked out about the aircraft on Friday afternoon, Mr. Akcay’s friends and family congregated at the airport.

Later that afternoon, the Ministry of Foreign Affairs issued a statement saying that the Mongolian government had ordered the flight grounded. Any seizure of Mr. Akcay, it added, would constitute an “unacceptable act of violation of Mongolia’s sovereignty and independence and Mongolia will strongly object.”

The jet left before 9:15 p.m., without Mr. Akcay on board. He was released several hours later, officials said.

In April, Bekir Bozdag, Turkey’s deputy prime minister, said in a television interview that Turkish intelligence operatives in 18 countries, including Kosovo and Malaysia, had seized dozens of Turks suspected of having links to Mr. Gulen and taken them back to Turkey.

Mr. Erdogan’s government has pressured foreign countries to shutter schools that it says are allied with the spiritual movement of Mr. Gulen, who now lives in Pennsylvania and has denied involvement in the attempted coup.

In 2016, for instance, the Turkish ambassador to Cambodia urged the closure of schools he said were linked to Mr. Gulen, whom he accused of running a “terrorist organization.”

The same year, Turkish diplomats attempted to do the same with the educational network now run by Mr. Akcay, according to his colleagues.

The Turkish government accused six Turkish citizens who were deported from Kosovo on March 29, of having connections to Mr. Gulen, whose Islamic movement has garnered support in the Balkans, among other places.

Kosovo’s prime minister, Ramush Haradinaj, said that he had not authorized the deportations, and fired his interior minister and secret service chief on the grounds that they had known about the operation and failed to inform him in advance.

This month, Mr. Erdogan’s son visited Mongolia and met with high-level officials, according to a post on the Turkish Embassy’s Facebook page.

Turkey’s Foreign Ministry did not immediately respond to requests for comment.

But in its statement, the Mongolian Foreign Ministry said that a Turkish diplomat in Mongolia had “reaffirmed that the Republic of Turkey respects the independence and sovereignty of Mongolia, and any illegal activities, including the abduction of persons, have not been conducted on the territory of Mongolia.”

For their part, Mr. Akcay’s friends and family said that the fast response of Mongolian authorities underscored the relative openness of the country’s political system.

“I would like to thank the Mongolian police and government for acting so quickly,” Mr. Ganbat said. “We are a democracy with human rights, and this is not the kind of place where these things normally happen.”