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From: Tuesday, April 14, 2015
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UB Forum
UB Chamber of Commerce Organizing UB FORUM: Ulaanbaatar Investment Forum on 15 April
April 13 (news.mn) The present conference aimed to maintain economic development of the capital city, develop co-operation between State and private sector and create favorable business and investment environment. Future perspectives determined at the conference are to develop Ulaanbaatar city as a regional business development center. Members of Parliament, Representatives of the Citizen's Representative meeting of the capital city, management of the Administration of the capital city, member of the Ulaanbaatar city's commercial chamber of commerce of Ulaanbaatar city will participate at the present meeting.
At the present conference major investment projects to be implemented at the Ulaanbaatar city will be introduced and detailed information regarding these projects will be given. Moreover participants will exchange views regarding the participation of private sector at the present programs.
Procurement policy to be adhered from the capital city while State and private sector will co-operate will be introduced during the conference and procedure and plans of co-operation will be introduced.
According to the organizers of the present conference the present conference will become an encouragement for the co-operation between state and the private sector.
Detailed information regarding the conference and business entrepreneurs who wish to participate the present conference can take necessary information at the following link www.ubchamber.mn
Related:
Ulaanbaatar Investment 2015 Forum to be held this week – gogo.mn, April 13
MATD closed -10% Monday to 5.625p
Petro Matad Director Acquires 70,000 Shares, Increases Interest to 690,788 Shares
April 13, Petro Matad PLC (AIM:MATD) --
The Company has been notified today that Mr Ridvan Karpuz, non-executive director, purchased 70,000 ordinary shares ("Shares") at a price of 6.2p per share on 10 April 2015. Following this share purchase, Mr Karpuz has a beneficial interest in 690,788 Shares, representing 0.25% of the current issued share capital of the Company.
TRQ closed flat Monday at US$3.79, +16.93% last week, EGI closed +0.06% to US$0.33, +53.49% last week
Short Interest Of Turquoise Hill Resources Ltd. Drops By -1.1%
April 13 (Tricity State) Turquoise Hill Resources Ltd. (NYSE:TRQ) has witnessed a drop of 1.1% or 216,446 shares in its short figure. The short interest diminution took it from 20,379,446 on March 13,2015 to 20,163,000 on March 31, 2015 . In terms of floated shares, the short interest was calculated to be 2.2%. The days to cover are 9 given that the daily volume averaged 2,321,712 shares.
Turquoise Hill Resources Ltd. (NYSE:TRQ) advanced 1.61% or 0.06 points in the market today. The counter first traded at $3.74 and slumped to $3.675 intraday. Investors breathed a sigh of relief when the counter staged an impressive pullback and closed the day at $3.79. Smart recovery from the lower levels is an indication of the inherent strength of the stock. The number of shares traded touched 3,778,309. The company has a 52-week high of $4.11 and the 52-week low of the shares is $2.65. The company has a market cap of $7,627 million and has roughly 2,012,299,000 shares as outstanding.
Shares of the company has shot up 6.16% from its 1 Year high price. On Sep 15, 2014, the shares registered one year high at $4.11 and the one year low was seen on Jan 14, 2015. The 50-Day Moving Average price is $3.15 and the 200 Day Moving Average price is recorded at $3.19.
Shares of Turquoise Hill Resources Ltd. (NYSE:TRQ) rose by 16.98% in the past week and 22.26% for the last 4 weeks. In the past week, the counter has outperformed the S&P 500 by 15.02% and the outperformance increases to 19.43% for the last 4 weeks.
MSE News for April 13: Top 20 -1.06% to 13,147.58, Turnover ₮13.4 Million
Ulaanbaatar, April 13 (MONTSAME) At the Stock Exchange trades on Monday, a total of 6,034 units of 17 JSCs were traded costing MNT 13 million 351 thousand and 846.00.
"APU" /2,347 units/, "State Department Store" /1,841 units/, "Olloo" /1,000 units/, "Mongol shevro" /177 units/ and "Gobi" /144 units/ were the most actively traded in terms of trading volume, in terms of trading value were "APU" (MNT eight million 087 thousand and 856), "Gobi" (MNT one million and 084 thousand), "State Department Store" (MNT 957 thousand and 320), "Darkhan nekhii" (MNT 759 thousand), "Gutal" (MNT735 thousand).
The total market capitalization was set at MNT one trillion 313 billion 047 million 845 thousand and 343. The Index of Top-20 JSCs was 13,147.58, decreasing 1.06% and the all index of MSE was 958.85, decreasing 0.72% against the previous day.
MSE to Introduce Market Makers for Equity and Derivatives
April 13 (MSE) As previously noticed, the Mongolian stock exchange had implemented the market maker structure on 16th February 2015.
At the moment, the market makers are available only for the secondary market for Government bonds and it helped to boost the market liquidity making it possible to trade the instrument on any trading day. In the past period, there had been traded 2090 bonds worth of MNT204.6 million.
We are planning to introduce the market makers for equities and derivatives. Please find more information here.
MSE Weekly Trading Report: MSE ALL -0.34%, Stocks ₮72.9 Million, T-Bills ₮33.7 Billion Worth
April 13 (MSE) Mongolian Stock Exchange organized 5 securities trading sessions and made transaction of MNT33,8 billion between 06 April 2015 and 10 April 2015.
Share trading:
156,461 shares of 37 joint stock companies worth of MNT 72,898,609.00 were traded.
MOST ACTIVILY TRADED SECURITIES
№ | | Securities Name | Value /MNT/ |
1 | APU | APU | 24,464,775 |
2 | ETR | E-TRANS LOGISTICS | 7,987,000 |
3 | TCK | TALKH CHIKHER | 7,393,200 |
4 | HRM | GERMES CENTR | 4,531,490 |
5 | NEH | DARKHAN NEKHII | 3,670,500 |
MOST ACTIVE BROKERAGE COMPANIES IN SHARE TRADING
№ | | Company Name | Value /MNT/ |
1 | BDSEC | BDSec | 31,324,778 |
2 | STIN | Standart investment | 30,614,992 |
3 | GNDX | Gendecs | 17,987,125 |
4 | ARD | Masdag | 10,803,276 |
5 | ECM | Eurasiac Capital mongolia | 8,199,700 |
Government retail bonds trading:
337,511 Government retail bonds worth of MNT 33,751,100,000.00 were traded through one trading session.
MOST ACTIVE BROKERAGE COMPANIES IN GOVERNMENT SECURITIES TRADING
№ | | Company name | Value /MNT/ |
1 | TNGR | Tenger Capital | 20,917,700,000 |
2 | ARD | Ard Capital group | 10,345,800,000 |
3 | TDB | TDB Capital | 2,430,000,000 |
4 | MIBG | MIBG | 12,400,000 |
5 | TNGR | Gatsuurt trade | 11,400,000 |
As of 10 April 2015, market capitalization was MNT 1,329,745,583,151.00 which indicated increases of 0.05%, and MSE ALL index reached 965.83 units which indicated decrease of 0.34% from the previous week.
Bank rates at time of sending: TDB (Buy ₮1,978 Sell ₮1,988), Khan (Buy ₮1,976 Sell ₮1,988), Golomt (Buy ₮1,979 Sell ₮1,987), XacBank (Buy ₮1,978 Sell ₮1,987.5), State Bank (Buy ₮1,978 Sell ₮1,988)
BoM MNT Rates: Monday, April 13 Close
| | 4/13 | 4/10 | 4/9 | 4/8 | 4/7 | 4/6 | 4/3 | 4/2 | 4/1 | 3/31 |
| USD | 1,984.15 | 1,985.10 | 1,985.95 | 1,986.16 | 1,986.45 | 1,986.04 | 1,985.85 | 1,985.40 | 1,983.05 | 1,984.69 |
| EUR | 2,104.29 | 2,112.84 | 2,140.95 | 2,154.09 | 2,170.00 | 2,178.29 | 2,160.01 | 2,145.82 | 2,135.05 | 2,139.79 |
| CNY | 319.22 | 319.70 | 320.11 | 320.05 | 320.78 | 320.67 | 320.54 | 320.34 | 319.99 | 320.09 |
| GBP | 2,896.16 | 2,917.20 | 2,952.91 | 2,952.72 | 2,958.82 | 2,962.97 | 2,944.22 | 2,948.12 | 2,944.23 | 2,932.97 |
| RUB | 37.54 | 38.44 | 37.41 | 36.33 | 35.79 | 35.13 | 35.26 | 34.71 | 34.11 | 34.27 |
MNT vs USD (blue), CNY (red) in last 1 year:
World Bank Economic Update: 2015 Mongolia GDP Forecast Lowered to 4.4% from 6.2%
World Bank East Asia and Pacific Economic Update, April 2015
April 13 (World Bank) --
…
Mongolia
Mongolia's economic growth is slowing amidst an unfavorable external environment and unsustainable economic imbalances. The external account is becoming vulnerable on account of declining FDI and international reserves. Actions are urgently needed to avert possible economic shocks from the vulnerable external situation. Poverty reduction will likely stagnate in the coming years in the course of economic and fiscal adjustment.
Recent developments
In 2014, a sharp drop in investment dampened economic growth to 7.8% from 11.6% in 2013. Investment dropped 34.5% and final consumption growth also moderated. Non-mining sector growth fell to 3.6% from 9.8% the previous year. Mining production rose 24.2% in 2014 due to a 34% increase in copper concentrates production on account of new Oyu Tolgoi mine.
Current account deficit narrowed to 8.2% of GDP in 2014 from 25.4% the previous year due to strong copper concentrates exports and import compression.
Balance of payments deficit reached $427 million in 2014, reducing gross international reserves to around 3 months' worth of imports. The bilateral currency swap line with China provided buffers to the intensifying balance of payments and declining reserves. The local currency value remained under pressure, depreciating 13% in 2014.
Fiscal policy remained loose in 2014 with the consolidated budget deficit reaching 11% of GDP, including off-budget expenditures of the Development Bank of Mongolia (DBM). Actions were taken to consolidate budget deficit. The Fiscal Stability Law (FSL) was amended to mandate reducing by 2018 the structural deficit to 2% of GDP and the NPV debt to GDP to 40%.
Monetary policy became tighter. The BoM phased out some of its policy lending programs in 2014 and raised its policy rate twice to 13%. BoM's claim on non-bank sectors, however, increased since the last quarter of 2014 reflecting its purchase of mortgage backed securities and liquidity support to companies.
Poverty declined by a smaller margin in 2012–14, compared with the reduction between 2010 and 2012. The large reduction in 2010–12 was largely due to one off transfers from the Human Development Fund to all citizens in 2011–12 and growth in employment and average wages. Untargeted and highly dependent on volatile mining revenues, however, the HDF transfers proved unsustainable and their contribution to poverty reduction lasted only temporarily.
Outlook
Economic growth will likely remain sluggish in the coming years. Mining growth will continue to slow on account of lower production schedule of key commodities. Non-mining growth will likely slow in 2015 and gradually pick up in 2016–17, assuming recovery in FDI for key investment projects.
The current account deficit is expected to widen in 2015 and further increase in 2016–17 amidst weakening mineral exports. The balance of payments is expected to remain in large deficit in 2015 due to weak FDI recovery, which will weigh on international reserves and the exchange rate while the remaining swap line with China may provide buffers.
The Comprehensive Macro Adjustment Plan (CMAP) approved by parliament in February announced measures to overcome economic difficulties. The CMAP called for fiscal consolidation and transferring BoM's outstanding loans under the Price Stabilization Program to the government. It also called for strengthening financial supervision and enhancing the investment climate.
Social transfers and growth in real wages and employment have been the major drivers of poverty reduction. Growth in both factors will likely be sluggish due to tighter fiscal conditions, political difficulties of improving poverty targeting of social transfers, and weak growth prospects.
Challenges
The economic outlook is subject to downside risks from persistent balance of payments pressure and recovery in FDI. The external account will remain vulnerable to shocks amidst large current account deficit and declining reserves. Slower recovery in FDI and further dampening of minerals market would further weigh on the growth outlook and external imbalances. Vulnerable external situations call for reversing previous loose policies and further actions are needed. The consolidated budget deficit will likely reach close to 10% of GDP in 2015 due to over-estimated revenue projections and DBM's off-budget commercial spending. All of the BoM's unconventional lending programs should be phased out and need to be transferred to the budget if needed.
Increasing household vulnerability in the course of economic adjustment will be a major social challenge. Current social protection mechanisms should be adapted to address transitory poverty and provide an adequate social safety net. This requires creating fiscal space for a more poverty focused social safety net by channeling a larger share of social transfers through poverty targeted means.
Link to EAP Economic Update, April 2015 (Mongolia, Page 122)
Link to EAP Economic Update, October 2014 (Mongolia, Page 129)
Mongolia 1Q Copper Exports Rise 45%; Coal Exports Fall 13%: Govt
By Michael Kohn
April 13 (Bloomberg) -- Mongolia exported 309,400 tons of copper concentrate in first quarter of 2015 vs. 214,100 tons yr earlier, National Statistics Office reported on its website today.
* Revenue from copper concentrate exports rose to $512.2m in the first quarter of 2015 from $349.2m yr earlier
* Mongolia exported 3.24m tons of coal in the first quarter vs. 3.74m tons yr earlier, a decrease of 13%; value falls to $141.3m from $206.5m
* Mongolia exported 2.5t of gold in the first quarter compared with 2.2t yr earlier; value rises to $98m from $90m
* Crude oil exports rise to 1.9m barrels from 1.6m barrels yr earlier; value falls to $91.8m from $157.6m
* China purchased $889m worth of Mongolia exports in the first quarter vs. $863m yr earlier
* Mongolia total exports in first quarter amounted to $1.08b vs. $986.7m yr ago
(BFW)
Mongolia Non-Performing Loans Rise 18.3% Y/y: Statistics Office
By Michael Kohn
April 13 (Bloomberg) -- Non-performing loans reached 703b tugrik at the end of Mar., a 5.4% increase m/m, the National Statistical Office says today in statement.
* Loans outstanding were 12.3t tugrik at the end of Mar., up 7.8% y/y
* Non-performing loans were 5.7% of total outstanding loans, according to Bloomberg calculations
* M2 money supply was 9.9t tugrik at the end of Mar., a 3.1% drop m/m and a 0.4% decrease y/y
* Tax revenue increased 7.9% y/y
* 1Q trade data:
* Trade surplus of $376m in 1Q 2015 compares to $9.3m deficit yr earlier
* Exports rose 9.2% q/q to $1.07b in 1Q
* Imports fell 29.5% q/q to $701.7m in 1Q
* March CPI rose 0.8% m/m, 9.3% y/y
* March industrial production index increased 4.6% y/y
(BFW)
Mongolia: Inflation Rises in Ulaanbaatar, Stable Nationwide
April 13 (Bank of Mongolia) --
Ulaanbaatar | National | |||||||
Monthly | YTD | YoY | Monthly | YTD | YoY | |||
2015/03 | 0.8 | 1.5 | 8.8 | 2015/03 | 0.8 | 1.9 | 9.3 | |
2015/02 | 0.2 | 0.7 | 8.5 | 2015/02 | 0.4 | 1.1 | 9.3 | |
2015/01 | 0.5 | 0.5 | 9.3 | 2015/01 | 0.7 | 0.7 | 9.8 | |
2014/12 | 0.6 | 10.7 | 10.7 | 2014/12 | 0.8 | 11 | 11 | |
2014/11 | 0.6 | 10.1 | 11.9 | 2014/11 | 0.7 | 10.1 | 11.5 | |
2014/10 | 0.8 | 9.4 | 12.7 | 2014/10 | 0.8 | 9.3 | 12.1 | |
2014/09 | 1 | 8.5 | 13.6 | 2014/09 | 0.7 | 8.5 | 13 | |
2014/08 | 0.7 | 7.4 | 13.6 | 2014/08 | 0.4 | 7.7 | 13.7 | |
2014/07 | 0.6 | 6.6 | 15.4 | 2014/07 | 0.4 | 7.2 | 14.9 | |
2014/06 | 0.5 | 6 | 15.1 | 2014/06 | 0.5 | 6.7 | 14.6 | |
2014/05 | 1.3 | 5.5 | 13.9 | 2014/05 | 1.5 | 6.2 | 13.7 | |
2014/04 | 1.3 | 5.5 | 13.9 | 2014/04 | 1.5 | 6.2 | 13.7 | |
2014/03 | 0.5 | 3.3 | 11.9 | 2014/03 | 0.8 | 3.5 | 12.4 | |
UB Housing Price Rises in March after 7 Months of Decline, Down 6.7% YoY
April 13 (Bank of Mongolia) --
Percentage Change | ||||
Index | Monthly | YTD | YoY | |
2015/03 | 1.173 | 0.053 | -1.349 | -6.704 |
2015/02 | 1.173 | -0.501 | -1.401 | -5.06 |
2015/01 | 1.179 | -0.905 | -0.905 | -2.236 |
2014/12 | 1.189 | -0.718 | -0.541 | -0.541 |
2014/11 | 1.198 | -1 | 0.179 | 0.475 |
2014/10 | 1.21 | -1.596 | 1.191 | 2.997 |
2014/09 | 1.23 | -1.039 | 2.832 | 9.264 |
2014/08 | 1.243 | -0.669 | 3.911 | 10.82 |
2014/07 | 1.251 | 0.523 | 4.611 | 18.371 |
2014/06 | 1.245 | 0.869 | 4.068 | 19.138 |
2014/05 | 1.234 | -1.396 | 3.171 | 20.785 |
2014/04 | 1.251 | -0.509 | 4.632 | 22.554 |
2014/03 | 1.258 | 1.816 | 5.167 | 23.743 |
2014/02 | 1.235 | 2.458 | 3.292 | 22.667 |
2014/01 | 1.206 | 0.814 | 0.814 | 20.569 |
2013/12 | 1.196 | 0.296 | ||
2013/11 | 1.192 | 1.484 | ||
2013/10 | 1.175 | 4.392 | ||
2013/09 | 1.126 | 0.371 | ||
2013/08 | 1.121 | 6.099 | ||
2013/07 | 1.057 | 1.174 | ||
2013/06 | 1.045 | 2.263 | ||
2013/05 | 1.022 | 0.048 | ||
2013/04 | 1.021 | 0.456 | ||
2013/03 | 1.016 | 0.94 | ||
2013/02 | 1.007 | 0.697 | ||
2013/01 | 1 | |||
Number of Unemployed Falls 1.2% in March, Down 2.8% from 2014
Ulaanbaatar, April 13 (MONTSAME) A number of the unemployed reached 33.3 thousand by end of March 2015. It showed a 1.0 thousand people, or 2.8 percent, decrease against the same period of the previous year and a 0.4 thousand people, or 1.2 percent, against the previous month.
IFC Representative to Present "Gender & Economic Growth" at Economic Club of UB April Meeting
April 13 (gogo.mn) "Economic Club of Ulaanbaatar" led by economist and publicist D.Jargalsaikhan, invites the leading specialists from different fields to give lectures. For their first lecture, they have invited economist from China and introduced the Chinese economic situation.
On April 16th at 12 AM - 02 PM, "Economic Club of Ulaanbaatar" will hold its monthly meeting at Tuushin Best Western Hotel, with key speaker Mr.Tuyen D.Nguyen, Resident Representative International Finance Corporation, World Bank Group. Mr.Tuyen D Nguyen will deliver a powerful speech on "Gender and Economic Growth".
If you want to participate in the lecture, please contact at 89048684 or narankhuu@freemarket.mn.
Progressing TT Without Delay Is of National Interest Says President
April 13 (infomongolia.com) On April 10, 2015, President of Mongolia Tsakhia ELBEGDORJ attended the afternoon Spring Plenary Session of the State Great Khural (Parliament) and presented his work report to the Parliament accomplished since 2009, which is recorded as the first ever statement as the head of state.
President Ts.Elbegdorj gave the report on his execution on the nine different fields including: increasing local powers with civic engagement; national security; military policy and enhancing the rule of law; developing the people of Mongolia; supporting creations and national producers; preserving environment and pursuing environment friendly policy; advertising the history, traditions and culture of Mongolia; implementing the state foreign policy and carrying the name of Mongolia high in the international arena; and implementing the people's proposals and requests.
After introducing his report, President Ts.Elbegdorj answered questions of some Members of Parliament D.Demberel, D.Lundeejantsan, O.Sodbileg, U.Enkhtuvshin, Z.Bayanselenge, L.Erdenechimeg, S.Batbold, A.Bakei, S.Odontuya, D.Arvin, Kh.Bolorchuluun, L.Bold, S.Demberel, G.Uyanga, D.Sarangerel, S.Byambatsogt and Ts.Davaasuren.
And, in the question of MP D.Demberel regarding the ongoing issue on Tavan Tolgoi investment, President Ts.Elbegdorj stressed:
"To respond to Tavan Tolgoi, this is a fact of Mongolia's national interest, which is considered as a development issue of today's situation. First of all, Mongolians should have a common interest to contribute to the national development. Second, we should accomplish any deals without delays, otherwise we have a limited time and other big rivals abroad, besides, if not complete on time, we will be facing more costs. Third, it is not a deal that only relies on State Great Khural's decision, because, Parliament and the Cabinet have their own duties and responsibilities. Consequently, my previous position remains as same as I said. Therefore, we need a compromise and all issues should be resolved at relevant levels under relevant laws and regulations".
Mongolia: Mining Must Go Forward
By B. Uuriintuya
April 13 (Mongolian Economy) There is very little difference between Mongolia's mining products offered to the global market and those of other countries. There's nothing that says the gold excavated in Mongolia is better or worse than African gold. And the same goes for mining technology. The difference is that other deposits around the world have investors, and Mongolia does not. We drove the investors away by ourselves because of our unwillingness to get help from others, our unwillingness to cooperate, and that fact that we didn't learn how to take responsibility in front of others. It wouldn't be an exaggeration to say that now we're begging the investors to come back. As a result, our mindset and development now trails other competitors that began the race with us from the same starting point. National Mining Association president N.Algaa said that we're lacking the necessary approach—we must use our opportunities and turn our weaknesses into advantages.
We must have a competitive tax environment and tax rate; and the level of bureaucratic interference must be low as possible in order to develop businesses, especially in the mining sector that requires heavy foreign investment.
Is Mongolia a mining country?
Mongolia certainly is a country that must rely on mining to develop, if we consider the mining sector's contribution to the economy. During the sector's "golden age" 2011-2012), mining-related products were in worldwide demand, and mining accounted for 39 percent of Mongolia's state budget and 90 percent of total exports. Despite the global price decline, the mining sector is expected to account for 16 percent of the state budget in 2015. Even in harsh times, the mining sector remains our main source of income. But it's confusing when you consider the mining sector's ongoing policy, legal environment and scope. For example, a controversial 106 exploration licenses was suspended in 2013 when the global mining industry was acting as if there were no other resources other than Mongolian coal and Oyu Tolgoi copper and gold; the coal price exceeded USD 100 per tonne during that time. The reigning government in parliament then regarded their mineral law is too liberal, and thought it needed more state participation. The first version of the Mongolian Minerals Law in 1997 stated that exploration licenses would be granted for 44 percent of the total territory of Mongolia; later the government declared this to be an act that ostensibly sold off the its own country, and reduced the exploration license area to only 7 percent of total territory. If think of the Minerals Law as a car, it first began with four normal wheels. By now the law has been altered so many (four) times that its circular wheels have been replaced with squares and triangle. Industry representatives were all in agreement at a September 2014 Mongolian National Mining Association debate entitled 'Mineral exports and competitiveness: benchmark price'. How far can a square wheeled car travel, they asked? The policies of Mongolia's parliament have voluntarily frozen foreign investment, at a time when investors wanted to support our main sector of growth. Today, the economy that once had a yearly growth of 17 percent has declined to 7 percent per year, and foreign direct investment is in such decline that it's hard to tell if there's really investment or we're already facing market volatility.
We know that commodity's boom and bust cycle is unpredictable, but Mongolia doesn't even have an ability or policy that can prevent the county from bankruptcy. Strictly speaking—we brought this misfortune on ourselves.
Don't cry over spilled milk
Mining sector issues are not Mongolia's only problems. National Mining Association president N.Algaa remarked that the country talks about the mining sector more only because its development once was a little ahead of other sectors. For example, crop farmers know that they produce a high quality crop; however, domestic manufacturers prefer to import crops from outside. Because of this, a group of crop farmers demonstrated at the central square, pouring wheat on the ground in protest of government policy that doesn't protect domestic agriculture. The key to every issue is that Mongolia doesn't have a policy to regulate any of its sectors.
We have no way out but to endure this already begun decline. According to Minister of State M.Enkhsaikhan, the downward cycle of the mining industry is expected to trend lower and lower for many years. How do we overcome this dark period? Commodity prices are falling on the global markets and other mining countries are clinging to their share. Even our neighbor China, which is known as the world's second largest economy, is using a more flexible policy and tax environment to support its local companies.
Our country has been supplying spar, copper and gold to the global market for a long time. Traditional export products like spar have barely kept their trade value by resorting to bartering. The number of coal buyers has declined and coal is no longer considered black gold, now that it's a meager USD 25 per tonne. The copper price has also dropped. The economy is closing in on a recession as the price of its main export products decline. Our educated politicians, who once seemed to us so bright, and who didn't even calculate the possibility of losing investors, have been defeated not by knowledge but by their self-interest and greed. Short-sighted populist and nationalist policies as well played their part in leading parliament astray.
According to N.Algaa, the bumbling government has a desire to support its wealth creators and reduce inappropriate legislation and regulation. The problem is they still don't know what measures to take. For example, their biggest mistake is that they regard the revenue earning sector only as a source to be taxed. The biggest example is mining's benchmark price. Mining sector experts explained that the government compensates their dwindling taxation revenue—as the quantity and price of exports declines—with a high benchmark price, which sets a commodity's price at an unrealistically high level. The government then uses that high price to base its percentage of taxed revenue for exports. The problem is compounded with the increasing frequency of property infringement and devaluation attempts in Mongolia. These are becoming a hindrance to all sectors growth. And the 106 suspended exploration licenses? The suspensions only further damaged the mining sector—because a suspension of 106 exploration licenses is the same as canceling 106 investments. Of course investors wouldn't want to work in an uncertain environment that might—in an instant—make worthless many years of hard work. The government blames investors who have withdrawn their money from Mongolia. But in reality, it's their own fault—those in the Mongolian government somehow managed to stab themselves in the back.
The time to find for Mongolia to go forward with sustainable development has arrived.
Goals and a gateway
Economists, company executives and researchers are in agreement when they warn that Mongolia lacks an ultimate goal. Is Mongolia to focus on becoming a mining country? Is it to continue focusing on its livestock industry? Or will it look to develop its tourism sector? No one can tell about. Ard Daatgal director Ch.Gankhuyag commented: "Everything is uncertain. What, when, where, how are we going to develop, and what and to whom are we going to sell?" Financial Market Association director U.Ganzorig said: "The most important factor measuring the economy is productivity. To that end, countries set their development goal." Our country lacks productivity, and we must set an ultimate goal. But we also lack qualified personnel. N.Algaa remarked: "There is a dearth of qualified professionals in government. We lack of a standard system approved by the public. Having issues is not a bad thing, but we need our people to solve them in the best and fastest way possible. There's a lack of good specialists, which means we don't have smooth progress. We don't know how to learn from mistakes. So every level of organisation must develop the same purpose and mind."
If we continue to have unstable laws and regulations, mining will not develop to the extent Mongolia needs it to. We will continue arguing and remain in the exact same place where we are right now if the political instability and unsuitable taxation policies continue. It should be noted that journalists and the media have had their role in expanding a resource curse and populism within Mongolia. N.Algaa emphasized that today's media and press focuses more on reporting about rumors and sensations, rather than informing and providing the public with balanced, true information.
Populism is at its lowest when people mistake their misinformation for knowledge. This is the source of the problem that led to our country's situation today. The gateway to real knowledge will open when we start realising the truth, and become educated about reality. To do so, the government and private sector, the media and everyone living under the banner of Mongolia, must undergo a major mindset change. If citizens don't act like responsible citizens, how can we expect a government to be a responsible government?
Mongol Post Employees Threaten Demonstration Over Fired CEO
April 13 (UB Post) Over 1,000 employees of Mongol Post held a press conference on April 10, announcing that a nationwide strike would be called if Mongol Post's Executive Director Ts.Batsaikhan is not returned to his position.
Ts.Batsaikhan was recently removed from his position with what his supporters say was procedure against state protocol and charges lacking justification and evidence. Speaker of Parliament Z.Enkhbold said he stood against the reportedly political nature of his firing, but T.Dulamsuren, who has worked for the National Emergency Management Agency, was appointed to replace Ts.Batsaikhan.
His supporters pointed out that over the last two years, while Ts.Batsaikhan was executive director, he increased the income and profit of the organization for the first time in 20 years. He has been praised for his effective management and increasing the wages of Mongol Post employees.
The Director of the Postage Stamp Office, D.Ganbat stated, "Over 1,000 employees of Mongol Post are against the decision and ready to organize a strike. Because of Director Ts.Batsaikhan, employees have decent working conditions. Last year, our organization paid two billion MNT in taxes to the state overall and worked at a profit of 800 million MNT."
Mongol Post has recently received many international awards and was selected for honors among 200 countries for utilizing new technology for services such as the delivery of passports and national ID cards, logistic services, and online sales of postage stamps.
The employees in support of Ts.Batsaikhan pointed out at the press conference that Mongol Post increased its profits by 1.5 billion MNT last year and is one of few state-owned companies working profitably. They expressed concern over who will replace him as executive director. The employees are sending a petition to the Speaker of the Great State Khural, calling for officials to reconsider their statement against Ts.Batsaikhan and his dismissal, or they will organize a strike across the country.
Mining Ministry Proposes Coal Gasification/Liquefaction as Coal Mongolia 2016 Theme
Ulaanbaatar, April 13 (MONTSAME) Annual international forum for investors "Coal Mongolia 2015" completed on April 10. The prevailed topics were about the ways to improve Mongolia's coal sector competitiveness, and to settle the transport and logistics issues.
A total of six issues were discussed at the two-day action, leaving a space for solutions. The participants of the forum unanimously said that the coal mining expenses must be cut and the extraction be enhanced as this will serve as a depletion in cost per unit.
Our Ministry of Mining proposed that the theme of the next year's forum can be ways of coal gasification and production of liquid fuel.
Coal River Pipeline and Dry Jigging Technologies Presented at Coal Mongolia 2015
April 13 (gogo.mn) We are delivering the second day of Coal Mongolia 2015 conference, which was held under Opportunities for Mongolia in Energy and Gas Market.
J.Myadagmaa: Dry Jigging manufactures soon to be developed
/AllMineral LLC Mongolia General Director/
AllMineral participated in Coal Mongolia 2015 Conference introducing the Dry Jigging of Coal-Jig Technology. Participants of the conference were interested in this presentation and Ms J.Myadagmaa gave the detailed answers to the questions:
- What is the capacity of the dry jigging ALLAIR technology?
-One equipment can process 5-100 tons of coal per hour. Manufacture with the most capacity is working in Spain and it processes the 600 tons of coal per hour.
- About the price?
-Several samples from Mongolian mines have been tested in Germany with impressive results. The prices are differing as the coal samples from the different mines are not the same and the equipment for the dry jigging is also differing.
- Have any negotiations done to build the dry jigging plants in Mongolia?
- Several mines and companies are conducting the tests at their sites. Plant projects usually require investments and funding. Therefore, our company is conducting studies to attract the investments with public and private sources, involving the inter-governmental deals as well. Very soon one of the mines might start the dry jigging plant in Mongolia.
- What is the difference in using the washing plant?
- We have conducted evaluations based on the Baganuur mine. Cost to process one ton of coal was at USD 0.80, while the cost at Energy Resource LLC with their washing plant is at USD 8 per one ton of coal.
M.Bazarragchaa: Methane processing gets subsidies of USD 1 from the International Environment Organization.
Presentation on the coal bed/mine methane project.
-What is the tax for the methane and greenhouse effect?
-There are no fees. There are subsidies of USD1 for methane and reduced CO2 from the International Environment Organization.
-What is the legal environment for the methane extraction?
-Methane gas extraction is considered as non-conventional oil. The new oil law regulates the extraction and use of methane gas. But with one issue. Coal mining is regulated by the Mineral Resources law. Methane gas extraction is more related to the open-pit mining of the coal. If the methane gas is to be used to generate the energy and supplied to the grid then the issues will be regulated by the Energy Law and proper licensing should be obtained.
-Are there any projects on methane being implemented?
-This can be implemented at any coal mine operating in Mongolia. Baganuur, Tavantolgoi, Nariinsukhait mines can do testing extractions.
Z.Enkhbold: One ton coal can be transported with the cost of one cent.
Coal River Pipeline was introduced by the E-Trans LLC.
-What is the cost of transporting one ton of coal for the distance of 100 km?
-One ton coal can be transported with the cost of one cent.
-At the coal pipelines in the downward direction the floating parts may cause the interruption in the flow and clog the pipeline. What explanations can be done?
-There is no backwards flow of the water at the downward direction. Pumps are used to pump the water and there is no such backwards flow.
-Is there need to dry the coal?
-The initial assessments were done in regards with the requirements from the clients. We have developed separate requirements for the bituminous and lignite coal. If there is need to dry it can be done with the additional costs.
-What is the estimate of the financing of the project to be implemented at the existing coal mines?
-Approximately USD 45-46 million is required to transport the 5 million tons of coal for the distance of 100km. For the capacity of 30 million tons the investments will be at USD 160 million. These are estimates for the even area with no up and downs.
-Does the liquefaction of the coal affect the quality of the coal?
-No changes at the quality of coal.
-Is it possible to use this technology to transport the coal from Tsankhi to China?
-In China Pipelines are already in use for the commodities like oil, gas and iron ore, so there should be no difference. Gas pipelines are already in talks between Russia and China. As it covers three countries it has been approved by international legal authorities.
Annual HoReCa Hospitality Trade Show Organized at Misheel Expo, April 11-13
Ulaanbaatar, April 13 (MONTSAME) The HORECA 2015--an international trade show for hospitality and food services--has been organized at Misheel Expo exhibit hall April 11-13.
At this action, dedicated to the "Friendly Ulaanbaatar" program, a total of 30 people will be awarded later as the best receptionist, room attendant, cook, waiter/waitress, laundry worker and others. The exhibition of hotels and restaurants has been participated by 80 entities.
This is the ninth time this measure is run in Ulaanbaatar by the Municipal Department of Tourism, with a purpose to boost hospitality services and products that satisfy international standards. Officials of the sector are confident that the products, services and new technologies being displayed at the three-day trade show can bring new achievements in the country's hospitality services and tourism.
2015 Hunnu Music Festival Announced on July 14, Chinggis Khaan Statue Complex
April 13 (gogo.mn) "Hunnu Music Festival" which aims to promote Mongolian historic value by modern music, will take place at Chinggis Statue in July 14th.
This music festival will provide an opportunity to electronic music lovers to enjoy their free time at fresh air during the summer in an environmentally friendly way. Moreover, it is going to be organized under slogan "Mongolia with no garbage" and "Friendly Ulaanbaatar".
"Genco Tour Bureau" LLC is organizing this festival for its second year.
Organizers noted the importance of "Hunnu Music Festival" in attracting tourists of neighboring countries through Mongolian tourism program with modern music event.
Related:
Hunnu Music Festival announced – Montsame, April 13
UB Mayor Orders Restaurants Can Operate 24/7 from May
April 13 (infomongolia.com) Mayor of Ulaanbaatar E.Bat-Uul issued a Decree No. A/250 to change a timetable of public food service providers across the city.
The decision is relevant to an approaching a summer tourist season and as an amendment to the Decree No. A/548 issued in 2013 that cites all fast food chains and restaurants that meet safety regulations and standards are allowed to be operational from 7 o'clock in the morning until 03:00 am night.
According to new amendments, these places from now on will be operational a 24/7 service, which is effective from May 01, 2015.
Also, the City Governing Administration as well as City Police, Special Inspection and District Governors are obliged to monitor the implementation of the Decree.
Russia-Mongolia-China Deputy Transport Ministers' 2nd Meeting Concludes in Ulaanbaatar
April 13 (news.mn) The 2nd consultative meeting of the deputy ministers of railway and transportation of Mongolia, China, and Russia was carried out from April 9 to 10, in Ulaanbaatar.
The meeting was organized under the auspices of the President of Mongolia and also served in preparation for the upcoming visit of President Ts.Elbegdorj to Russia.
Discussions were held from the Mongolian side by Deputy Minister of Roads and Transportation Kh.Erjan, from the Russian side Deputy Minister of Transportation of the Russian Federation, Alexei Tsydenov, and from the Chinese side by Deputy Chairman of the State Railways General Authority Fu Shuani.
The first symposium dedicated to the development of trilateral cooperation between the transportation sectors of Mongolia, China, and Russia was held in December 2013, in Ulaanbaatar. The first meeting focused on developing transcontinental railway transportation to increase transit through Mongolia. The meeting was initiated by the Government of Mongolia and the Ministry of Transportation.
Exclusive interview Bulgantuya Kh. MPP Secretary: Asia's economic integration will benefit all
April 4 (CCTV) CCTV interviewed secretary Bulgantuya Khurelbaatar of Mongolian People's Party, who serves in one of the largest ruling parties in the country's coalition government. Secretary Khurelbaatar said the country welcomes the Asian Infrastructure Investment Bank, and that it will bring "much needed" investment to developing countries. Watch the interview for more.
Turkish FM in Mongolia seeks to boost trade volume to $250m
Mevlut Cavusoglu says Turkey-Mongolia trade volume 'does not reflect our political relations and friendship'
ULAN BATOR, Mongolia, April 13 (Anadolu Agency) Turkey and Mongolia agreed to improve relations during the Turkish foreign minister's official visit to the country.
Addressing a joint press conference with his Mongolian counterpart Lundeg Purevsuren in the capital Ulan Bator on Monday, Mevlut Cavusoglu said: "Our current economic relations and bilateral trade volume actually do not reflect our political relations and friendship, and we think they lag behind our friendship."
Trade volume between the two countries has reached $40 million, according to Turkish foreign ministry website.
Cavusoglu said Turkey is "determined" to raise the trade volume to $250 million, and in this regard, he wanted Turkish businesspeople to invest more in Mongolia.
The minister welcomed the direct flights of Turkish Airlines to Ulan Bator but added the number of flights are insufficient and should be increased.
The Mongolian minister Purevsuren said they see Turkey as their "third neighbor," and that has a positive effect on bilateral relations.
The Orkhon inscriptions, which the Turkish minister visited, are the first examples of written Turkish in history, located in Orkhon valley in Mongolia.
Purevsuren added they want to benefit from Turkey's experiences in areas like tourism, construction, textile and leather.
The ministers signed a Memorandum of Understanding for cooperation between diplomacy academies.
Cavusoglu also separately met the Mongolian President Tsakhia Elbegdorj and Prime Minister Chimed Saikhanbileg.
According to diplomatic sources, they exchanged views on bilateral relations, as well as on regional and international developments.
Cavusoglu is the first Turkish foreign minister to have visited Mongolia since the establishment of diplomatic relations between the countries in 1969.
Related:
President receives FM of Turkey – Montsame, April 13
Mongolian and Turkish FMs hold press briefing
Ulaanbaatar, April 13 (MONTSAME) On April 13, the Minister of Foreign Affairs L.Purevsuren inked a Memorandum of Understanding on Cooperation in diplomatic trainings, documents and data exchanging with his Turkish counterpart Mr Mevlut Cavusoglu, whose official visit here is ending April 13.
After signing the document, the dignitaries called a press briefing. "So far, 16 Mongolian young diplomats are studying in the Diplomatic Academy of the Republic of Turkey, and the document signed will increase this number," they said.
Mr Purevsuren noted that the two countries have strong roots of history. "As known, there are many objects of historic heritage such as Kurgan stelae left from the era of Turkic empire once inhabited our lands resembling their kings Bilge, Kultegin, and Tonyukuk. Mongolia declared in 2011 the Republic of Turkey as its 'Third neighbor' in the Concept of Foreign Policy, and is therefore interested in intensifying the friendly relations and effective cooperation with Turkey", he said.
They had touched upon matters on developing the cooperation in tourism, leather processing, buildings, trade and economy, h went on. A total of 30 million US dollars of aid has been provided for Mongolia since 1994 through the Turkish Cooperation and Coordination Agency (TIKA). The aid contributed to such works as a running of 46km road connecting Kharkhorin to Khoshoo Tsaidam, to projects on restoration of Turkic historic monuments, and to establishing a World heritage Museum in Orkhon valley, said the Mongolian FM. Their discussion mainly focused on promoting the cooperation in export-targeted leather goods, and they had agreed to collaborate in improving health of Mongolian livestock, he said.
"We also considered the issues of developing online state services for citizens and online issuance of visas," he added.
The Turkish Foreign Minister Mevlut Cavusoglu said that, despite a 8000km distance, Mongolia and Turkey has a historic connection that started 1,300 years ago. "I appreciate that Mongolia made Turkey one of its 'Third neighbors," he said.
"Turkey is willing to enhance relations in all sectors and intensify high visits. Today's meeting set a goal for the two countries to reach a trade volume equal to 200 million USD. Our meeting also addressed the ways of cooperating in mining, agriculture, tourism and in other spheres," he added.
Mr Cavusoglu also expressed a satisfaction with Orkhon valley's entrance to the list of intangible cultural heritage, mentioning that he visited Sunday the city of Kharkhorin. He said they had also discussed the ways of improving the city's infrastructure.
The Turkish FM hoped that there will be some achievement in improving a capacity of direct flights between Turkey and Mongolia. He noted that Turkish side is ready to cooperate with Mongolian national air carrier in air transport.
President of Hungary to Pay Official Visit to Mongolia April 14-16
April 10 (MFA of Mongolia) President of Hungary H.E. Mr. Janos Ader and spouse H.E. Mrs. Anita Herczegh will pay an official visit to Mongolia on April 14-16, 2015 at the invitation of President of Mongolia H.E. Mr. Tsakhiagiin Elbegdorj.
During the visit, President Janos Ader will have official talks with President Ts.Elbegdorj and will meet Chairman of the State Great Hural (Parliament) of Mongolia Z.Enkhbold and Prime Minister Ch.Saikhanbileg.
The visit is coinciding with the 65th anniversary of the establishment of diplomatic relations between Mongolia and Hungary and it will give significant impetus towards deepening the traditional, friendly relations between the two countries and strengthening the bilateral cooperation in areas of economics, trade, investment, education and agriculture as well as enhancing cooperation in the multilateral fora.
Mongolia and South Korea to Boost Cooperation in Agriculture
Ulaanbaatar, April 13 (MONTSAME) Sixth meeting of the joint committee of the Ministries of Food and Agriculture of Mongolia and the Republic of Korea ran March 31-April 3 in Sejong city of South Korea, reports the official website of the Mongolian Ministry on April 13.
Mongolia was represented by officials from the Department of Veterinary Medicine and Breeding Management of the Ministry of Food and Agriculture and "Khalkhin Gol" project.
The two sides discussed a number of important issues, for example, the two countries' policies in the food and agriculture spheres, an implementation of joint programs in 2012-2014, and areas of future interests.
The committee agreed to include Mongolian professionals in a series of trainings in animal husbandry and food security in South Korea, to consider possibilities of creating an agricultural free zone in the area of the Khalkh river, of implementing projects on production of fruits and vegetables, on improving supplies, and on establishing a cooperation mechanism in veterinary medicine, and other issues.
The joint committee also discussed a project on "Development of Agricultural Spheres based on Public and Private Partnership" and agreed to implement some of its frameworks within the next two years.
Mongolia Establishes Diplomatic Relations with 184th Country, Republic of Cameroon
April 13 (infomongolia.com) On April 02, 2015, the Joint Communique on the establishment of diplomatic relations between Mongolia and the Republic of Cameroon was signed in New York by Ambassador and Permanent Representative of Mongolia to the United Nations, Mr. Od OCH and Ambassador and Permanent Representative of the Republic of Cameroon to the United Nations, Mr. Michel Tommo Monthe.
The Joint Communique to establish the diplomatic relations with the Republic of Cameroon will provide better opportunities for both countries to develop friendly, peaceful and cooperative relations in the diplomatic, political, economic, humanitarian and other fields as well as to support each other within bilateral and international organizations.
Mongolia aims to establish diplomatic relations with all United Nations member states (193) and the latter state (183rd) has established the diplomatic relations was Saint Lucia inked in New York City on September 27, 2014.
As of September 28, 2014, Mongolia has established diplomatic relations with 183 states of the world and the EU.
Related:
Mongolia establishes diplomatic relations with Cameroon – Montsame, April 13
Talk with Me with Allyson Seaborn: Anar Nyamdorj, Executive Director, LGBT Centre of Mongolia
April 12 (Star TV) --
Mongolia Finishes Sixth at 2015 Men's Freestyle Wrestling World Cup
April 13 (infomongolia.com) The 2015 Men's Freestyle Wrestling World Cup among top 8 winners of the 2014 World Championships took place in Los Angeles, California on April 11-12, 2015.
This is the 43rd edition and the eight teams have competed in two groups, where the Group A was comprised of Teams from Russia, Cuba, USA, Mongolia and the Group B - Iran, Azerbaijan, Belarus and Turkey.
Mongolia's first leg match was against Russia but lost by 3:5; in the second round, Mongolian Team won over Cuba by 5:3 and the third place match was against the host country team, but unfortunately was defeated to USA by 0:8 and the only chance was a match for a fifth place.
The fifth place competition was against the Team of Belarus, where Mongolia could not beat their opponent by losing with a score of 3:5.
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