Pages

Friday, July 25, 2014

[BREAKING: DBM raising $200m in loans, backed by GoM guarantee, with $100m greenshoe option]

Please click Display Images or Download Pictures to properly view this newswire

- BREAKING NEWS -

Friday, July 25, 2014

Follow the news on Facebook, Twitter and view archive here

 

Mogi: DBM steps in where TDB couldn’t without a GoM guarantee

Development Bank of Mongolia out with $200m

The Development Bank of Mongolia is raising a $200m loan that features a $100m greenshoe option, made even more appealing with a guarantee from the country's government

By Shruti Chaturvedi

July 24 (GlobalCapital) Credit Suisse is the sole bookrunner for the deal, which is split into three portions: a three year bullet, which pays a margin of 425bp over dollar libor, a five year amortiser offering 437.5bp, and a seven year amortiser paying 450bp over libor.

Lenders are allowed to commit to any or all of the tranches, said a banker.

The deal is open to banks at three levels of participation - mandated lead arrangers coming in with commitments of $50m or over will earn 125bp as fees for the three year, 150bp for the five year and 175bp for the seven year.

Lead arrangers pledging between $25m and $49m earn fees of 110bp, 125bp and 150bp for the three tranches respectively, while co-arrangers committing between $10m and $24m net fees of 85bp, 100bp and 125bp, respectively

The fundraising comes just after the Trade & Development Bank of Mongolia had to pull a dollar bond issue when investors were reluctant to open their portfolios to Mongolian risk.

However, because the DBM loan comes backed by a guarantee from the government of Mongolia, it is unlikely to run into similar headwinds, according to bankers.

Link to article

 

---


Room #5, Coffice Hub, 5th Floor, Time Center
21 Baga Toiruu Street, Sukhbaatar District 8
Ulaanbaatar, Mongolia 15160
Email: info@covermongolia.com
P Please consider the environment before printing this e-mail.

Tuesday, July 22, 2014

Mongolia-Focused Canrim Resources' June Update


July 2014 (Canrim Resources) --
Greetings from Ulaanbaatar Mongolia,
The past month has been one of measurable progress for Canrim Resources Pte Ltd. Ranjeet Sundher, the company's Founder, and Scott Osheroff, Vice President of Corporate Development, spent much of June in Ulaanbaatar meeting with the company's local team, composed of Turbat Demchigsuren, Canrim's Country Manager and Bolderdene Banzaragch, Senior Exploration Manager. We also met with a number of government and private industry representatives. All-the-while, Glenn Griesbach, Vice President of Resource Development, has continued his due diligence on potential mineral properties for acquisition.
On July 1, during the final session of Parliament before the summer recess, Parliament issued a Decree on amendments to the Minerals Law, an event Canrim previously, conservatively budgeted to occur in October-November. One of these amendments involved a lifting of the moratorium on the issuance of exploration licenses, thus assigning responsibility for the issuance (and renewals) to the Minerals Resource Authority of Mongolia (MRAM). We expect MRAM to enact relevant procedures soon after the mid-July Naadam national holiday and will follow developments closely to ensure we remain in the pole position for the acquisition of new exploration licenses. 
Canrim has positioned itself as a first-mover in the acquisition of mineral projects. Canrim's management team has over 50 years combined experience in Mongolia with a track record of several successful exits in the minerals sector. We have the ability to be quick and agile in the execution of our business model (with a full season of due diligence already behind us). Being proactive during the time it will take MRAM to begin reissuing new licenses, Canrim's geological team continues to review existing mineral licenses for potential acquisition. Canrim is interested in the secondary market for licenses, as on July 1 the life of licenses was increased from nine to twelve years, at one stroke improving the attractiveness of scores of licenses. We continue to identify and short-list available projects by way of technical due diligence and commercial discussion. 
Mongolian Economic Update:
Notable transactions and developments during the first half of 2014:
  1. January 8: Altan Rio Minerals Ltd. announced equity facility of up to $10 million with European Bank for Reconstruction and Development (EBRD)
  2. June 13: Aspire Mining Limited bought into a joint venture project with Noble Group through a 50% purchase of the Ekhgoviin Chuluu LLC joint venture
  3. June 20: GDF SUEZ S.A. signed a Concession Agreement with government for construction of a $1.2 billion, 415 megawatt, power plant in Ulaanbaatar
  4. July 1: Amendments made to Minerals Law
  5. July 1: Moratorium on issuance of exploration licenses lifted
  6. July 1: Life of exploration licenses extended from nine to twelve years
  7. July 1: Petroleum Law passed
We look forward to updating you again on our progress and developments in Mongolia. In the meantime, if you wish to learn more about Canrim Resources, I encourage you to email us directly at canrimresources@gmail.com. Our team will be delighted to speak with you and share our vision for the company's future.
Sincerely,
Ranjeet Sundher
Director and CEO
Canrim Resources Pte Ltd.
About Canrim Resources Pte Ltd.
Canrim Resources Pte Ltd. is a Singapore-incorporated holding company, controlling several subsidiaries established for the purpose of developing minerals-related business activities in Mongolia. With over 50 years management experience in Mongolia’s resource sector, as well as offices in Singapore and Ulaanbaatar, Canrim Resources Pte Ltd. has positioned itself as a strong player in the Mongolian minerals sector, seeking to execute on transactions of minerals licenses in both the primary and secondary markets, in addition to select infrastructure projects. Mongolia remains one of the most under-explored geologically attractive regions in the world and is strategically positioned near to the commodity consuming nations of China, Russia, South Korea and Japan. 

[BREAKING: Mongolia & Japan to announce free trade agreement today]

Please click Display Images or Download Pictures to properly view this newswire

- BREAKING NEWS -

Tuesday, July 22, 2014

Follow the news on Facebook, Twitter and view archive here

 

Japan, Mongolia to announce free trade deal Tuesday: president

July 22 (Kyodo) Japan and Mongolia will announce a free trade agreement between the two countries when their leaders meet later on Tuesday, Mongolian President Tsakhiagiin Elbegdorj said.

"We are in the stage of concluding" the trade liberalization deal, Elbegdorj said in a speech at a business forum in Tokyo.

Elbegdorj and Prime Minister Shinzo Abe "will announce (the countries) reached a broad agreement," the president said, expressing his hope that the accord will help accelerate trade and investment between the two Asian economies.

In their negotiations, which began in 2012, Japan has called on Mongolia to eliminate a 5 percent tariff on Japanese car imports, while Ulan Bator has asked Tokyo to remove or significantly reduce its 38.5 percent tariff on Mongolian beef.

The size of bilateral trade is relatively small. In 2013, Japan's exports to Mongolia were valued at 29.3 billion yen (about $288 million) and Mongolia's exports to Japan at 1.9 billion yen.

But Abe apparently aims to leverage the closer economic ties to beef up their political relations, as Japan has relied on Mongolian assistance in negotiations with North Korea.

Mongolia has diplomatic ties with North Korea, whose abductions of Japanese in the 1970s and 1980s have prevented Tokyo and Pyongyang from normalizing bilateral relations.

At Tuesday's summit, Abe is also expected to ask Elbegdorj for further cooperation on the abduction issue, with Tokyo and Pyongyang having recently resumed intergovernmental talks on the matter.

Japan's main export items to Mongolia include used passenger vehicles, which account for some 45 percent of the total exports. Tokyo has also called on Ulan Bator to ease restriction on foreign investment to facilitate Japanese firms' businesses in such sectors as energy and infrastructure, according to Japanese government officials.

Link to article

 

---


Room #5, Coffice Hub, 5th Floor, Time Center
21 Baga Toiruu Street, Sukhbaatar District 8
Ulaanbaatar, Mongolia 15160
Email: info@covermongolia.com
P Please consider the environment before printing this e-mail.

Oil & Oil Shale Mongolia 2014 scheduled to be held on 10-11 September 20

Ulaanbaatar, Mongolia, 17 July 2014 (The Organizing Committee) - Oil & Oil Shale Mongolia 2014, International investment conference is back with a new scheduled date on 10 - 11 September, 2014 in Ulaanbaatar, Mongolia. The official decision is made by the hosts of the event - Ministry of Mining and Petroleum Authority and the organizer Minex Mongolia LLC, after State Ikh Khural, the Parliament of Mongolia passed the long waited new Petroleum Law of Mongolia on 1 July 2014.

As the key reason of postponing the original date of the event 9 - 10 April 2014 - delay in adopting the new law and current oil policy of Government of Mongolia - is now removed, the organizers are happy to assure there is no such a delay now.

The hosts, organizers and sponsors of the conference are all pleased about passing of the new petroleum law and looking forward to sharing this important policy document and other regulations, opportunities and potentials in oil and oil shale sector of Mongolia during the upcoming investment conference in September.

Once again the organizers welcome international investors and esteemed speakers of worldwide oil and oil shale industry to explore vast opportunities that exist untapped oil and oil shale resources of Mongolia.

This is the country's first international investment conference on oil, gas, and oil shale. The event will be attended by international investors, oil, gas, and oil shale companies, service providers, consultancies, equipment suppliers, and traders.

The delegates will have a unique opportunity to network with industry's key contacts and to obtain vital information on legislation and policies on oil, gas, and oil shale exploration and production regulations from the officials of the Ministry of Mining and Petroleum Authority of Mongolia.

Moreover, projects on oil refinery, exploration, production, plus oil shale projects will be presented.  

Attending the Oil & Oil Shale Mongolia 2014 International Investment Conference will let you accurately assess how you could reap the rewards of Mongolia’s growth, evermore favorable policies, and emerging market of oil and oil shale. Whether you are seeking new and exciting investment opportunities, or in pursuit of investment for your Mongolian projects, the conference is your ideal chance to meet, hear from and network with senior players in Mongolian business and government.

For more information please refer to enclosed brochure and/or visit our webpage: http://www.oilmongolia.com/

Ways to register:

Online: http://www.oilmongolia.com/online_registration

Call: +(976) 344488, (976) 9910-5877

Email: info@oilmongolia.com

Wednesday, July 2, 2014

[SGK passes Minerals, Petroleum, MAK bills, postpones railway on last day, FX reserves fall 52.6%, Naadam now 5 days, and ADB loans $40m to Khan]

Please click Display Images or Download Pictures to properly view this newswire

Wednesday, July 2, 2014

Follow the news on Facebook, Twitter and view archive here

Jump to: Overseas Market - Local MarketEconomyPoliticsBusinessUlaanbaatarDiplomacy - Social, Environmental and Other

Headlines in Italic are ones modified by Cover Mongolia from original

 

Overseas Market

Mogi: TRQ rallied in 2nd half to close +2.69% Tuesday to US$3.43

 

Guildford Coal Obtains Coal Haulage Permit for Baruun Noyon Uul

July 2 -- Guildford Coal Limited (the Company) (ASX: GUF) is pleased to announce that the Mongolian Ministry of Roads and Transport has granted a haulage permit which allows transport of coal from the Baruun Noyon Uul (BNU) Mine to Shivee Khuren. This is adjacent to the Ceke Border crossing into China.  

This marks an exciting milestone in the development of the BNU Mine in the South Gobi Region of Mongolia.  The mine is now fully commissioned and transport of coal to China can commence.   

The approval is the culmination of many months of effort in meeting the stringent requirements of the Mongolian Ministry of Roads and Transport.  As a result the Company is confident that the transport can be undertaken in a way that is sensitive to the needs of the local communities in the area and protects the environment.   

Granting of the haulage permit allows the next phase of works to proceed.  The company will shortly begin the process of exporting a trial shipment of approximately 10,000 tonnes to processing facilities in northern China. The trial shipment is designed to confirm the down-stream logistics and processing performance.  

Final arrangements for sale will be made following processing at a facility in Ceke, Inner Mongolia with early interest already shown by companies including:

      Shenhua Wuhai

      Taixi Wuhai

      Jiuquan Iron and Steel Group (JISCO) Gansu

      Qunhua Inner Mongolia

      Jinda Wuhai  

Guildford Coal looks forward to being able to capitalise on the mine development work undertaken to date as it establishes the BNU product in the market. 

Link to release

 

NRU closed flat at A$0.003

Newera Resources: Appointment of Director

July 1 -- Newera Resources Limited (ASX: NRU) advises that Mr Christopher Watts has been appointed as a director and company secretary of the Company.

Mr Winton Willesee has retired as company secretary.

Link to release

Back to top

Local Market

MSE News for July 1: Top 20 +0.62% to 15,584.80, Turnover 6.8 Million

Ulaanbaatar, July 1 (MONTSAME) At the Stock Exchange trades held Tuesday, a total of 6,492 shares of 14 JSCs were traded costing MNT six million 821 thousand and 840.00.

"Genco tour bureau" /3,407 units/, "Khokh gan" /1,332 units/, "Merex" /510 units/, "Sharyn gol" /477 units/ and "Moninjbar" /264 units/ were the most actively traded in terms of trading volume, in terms of trading value--"Sharyn gol" (MNT three million 480 thousand and 420), "Material impex" (MNT one million 166 thousand and 460), "Gobi" (MNT one million 042 thousand and 955), "Genco tour bureau" (MNT 296 thousand and 409) and "Baganuur" (MNT 213 thousand and 600).

The total market capitalization was set at MNT one trillion 588 billion 912 million 519 thousand and 291. The Index of Top-20 JSCs was 15,584.80, increasing by MNT 96.00 or 0.62% against the previous day.

Link to article

 

MSE Seeks Nominations for 3 Independent Directors

July 1 (MSE) --

...

Link to release (in Mongolian)

 

MSE CEO WELCOMES DELEGATIONS OF NOMURA AND DAEWOO SECURITIES

June 30 (MSE) Mr.Angar.D, acting CEO of MSE, has met delegations of Singapore based Japanese "Nomura" Investment Management Company and South Korean "Daewoo Securities" on 30 June 2014 at MSE. 
During the meeting, delegations of investment companies were acquainted with current development of MSE and future outlook of capital market of Mongolia.

Link to release

 

J.Tsedenragchaa: Technical Inconsistencies Hurting Trading on MSE

July 1 (UB Post) The following is an interview with Chairman of the Mongolian Association of Securities Dealers (MASD) J.Tsedenragchaa, highlighting important aspects of the Mongolian stock market.

Security trading at the Mongolian Stock Exchange (MSE) dropped drastically recently. How is this effecting brokers and dealers?

In the last two years, brokers received less work.  There are several reasons for this. The work to improve the MSE's technology began in 2011, when Mongolia established the Master Service Agreement with the London Stock Exchange. The technological upgrade wasn't completed due to faults made during the establishment of the agreement. The legal environment must be able to accommodate technological innovations. Mongolia is now improving its legal environment. The renewed version of the Securities Market Law and Investment Fund Law was adopted. However, the technological and legal reforms are inconsistent.

The market shrank and opportunities for brokers to provide services decreased due to stock planning, incomplete technological bases, and inconsistent technological and legal reforms. Around 1,000 specialists were given the right to work at the MSE. They're all very capable. However, some of them had to leave the stock exchange. All brokerage companies are working at a loss.

The Financial Regulatory Committee authorized licenses to operate as brokers for around 90 companies. How many employees of these companies are members of MASD?

There are 74 brokerage companies at the MSE and 48 of them are members of MASD. Our members are doing strenuous work. Our association is a member of the Asia Securities Forum.

What was insufficient in the MSE's reform that led to the decrease in opportunities for companies?

The Mongolian National ECM LLC developed the previous MSE program, the e-Clearing Program used by the Mongolian Securities Clearing House and Central Depository (MSCHCD), and the internal registry program of brokerage companies. These programs operated consistently with one another. After technologies were reformed, brokerage companies couldn't open accounts. The T+0 billing system was changed to T+3 and stopped functioning with its basic principles. Basically, the technological innovation wasn't completed.

Exchange technology consists of three systems: trade, brokerage, and settlement systems after trade. The settlement system after trade has four functions, namely saving, clearing, billing and risk management. When MSE technology was renovated, only the savings system from the four functions were introduced. Now, the MSCHCD uses the Millennium Depository System for savings. The e-Clearing System is used for clearing and billing. Some operations have to be done manually since the automatic connection of the two systems wasn't made. Nineteen percent of the work for settlement after trade is executed with the Millennium Depository and 81 percent with the e-Clearing System. Also, brokerage systems have a special function for securities trading. Securities' trading starts and ends with the brokerage system. The front office system of the brokerage system registers securities trading orders and does the transaction. Then, the transaction is completed with the back office system, the system for registering and billing. The brokerage system wasn't actually changed. Now, the association is working with ECM LLC.

How much of the premium do brokers receive?

On average, around two percent. Percentages of the MSE, MSCHCD and Financial Regulatory Committee are included in this, meaning that brokers are eligible to get a small portion. The commission for brokers is dropping each year. The MSE had trades worth 93 billion MNT in 2013.  Brokerage companies got approximately two to four million MNT in trade commissions. Trade commissions are the principle income of brokerage companies.

Even with this small income, how do brokers continue operating without going bankrupt?

Broker-dealer companies with licenses and management are restricted from having other income besides their principle work. Most brokerage companies profit from developing projects and giving advice.

Aren't there too many brokerage companies in Mongolia's small financial market?

The Master Service Agreement with the London Stock Exchange gave the impression that Mongolia can operate in both domestic and foreign stock markets. Furthermore, distributing the stocks of Erdenes Tavan Tolgoi to the people and the decision to release an IPO contributed to increasing the number of brokerage companies considerably. Before establishing the Master Service Agreement and announcing that Erdenes Tavan Tolgoi shares would be traded in domestic and foreign stock exchanges, there were around 40 brokerage companies operating in Mongolia. After the announcement, this number increased to 100. Lately, many companies are proposing to terminate their licenses.

The legal reform for stock market is still progressing. After the reforms, what'll change in the market?

The legal reform is a main factor for developing the stock market. It needs to be done correctly and create a legal environment which supports the market's development and opens new opportunities. There are around 20 laws that affect the stock market directly and indirectly. Their inconsistency with each other is rather obvious. For instance, the Securities Market Law and Civil Law have different contents about properties. The Securities Law allows the double listing of securities in foreign and domestic stock exchanges. However, there are many doubts about the Law of Mongolia on State Registration of Legal Entities. It's impossible to work efficiently in a legal environment limited to only Mongolia. The Mongolian law and legislations related to the stock market should become consistent with international legal standards. If this doesn't happen, Mongolia will not be able to enter integrated marketing communications. Excessive governmental regulations should also be reduced. The government should regulate only necessary aspects and leave out things that the market can regulate by itself. It shouldn't be too bent to one side.

Why isn't the stock market in Mongolia developing?

It's connected to weak policies. You can say that there's absolutely no policy. In international markets, stock exchanges are becoming an entertainment organization. We need to compete in marketing products and bring in the best products to stores. Stock exchanges are uniting in order to decrease the cost of services and improve competitiveness. It's evident that the MSE will eventually be dragged into this competition. Mongolia will lose its market and products if marketing, management, human resources, and basic infrastructure are poor. While the world is making these changes, the Mongolian stock market hasn't had a policy for 20 years. Long-term strategies need to be defined and documents with development approaches and policies should be developed and approved at the parliamentary level. After routes are defined, organizations participating in the market should cooperate in developing and implementing plans and programs to develop the market.

Mongolia doesn't have all the infrastructures for the stock market. What sort of work is being done to further this development?

The stock market infrastructures consist of exchange, security payment, billing, saving, and broker and dealer companies. Currently, Mongolia doesn't have an independent clearing organization. Therefore, bonds, derivative financial instruments, and exchange markets aren't developing. Clearing decreases the risks related to trade and payment. In the new Securities Market Law, clearing is defined as, "Center for trading and settling securities." MASD sees that this infrastructure should be made based on the Central Bank. Also, there aren't any custodian banks in the Mongolian stock market. A custodian bank is an organization that keeps securities and funds of investors. It's the fundamental part of investment funds that gives information related to investors' shares and tax calculations. Mongolia started implementing the Investment Fund Law. Yet, there's no news of investment funds being established or coming into Mongolia.

This may be to prevent fund investments in Mongolia's economic conditions. In the law, the MSCHCD and trade banks can get a custodian license. Due to economic situations, commercial bank ratings have dropped and it became difficult to acquire a license. Domestic banks must meet the requirements of global custody. Our organization initiated a project to establish a custodian bank based on the MSCHCD as it is approved by the law. Since the MSCHCD is a governmental organization, investors will trust it. The MSCHCD is a member of the Central Bank which is in the RTGS system.

Mongolia didn't use tax stock dividends and exchange rate difference profits. Mongolia started to tax after the law expired. The Hong Kong Stock Exchange completely exempts taxes of this kind. In Japan, if a citizen makes a large investment for a certain period of time in the securities market, they are exempted from tax. Large stock exchanges give tax rebates to attract investors. Investors will not be attracted to Mongolia because it taxes them. In order to attract them, Parliament should approve a law that exempts tax from securities and stock dividends and exchange rate difference profits.

What should Mongolia do to develop the stock market?

The stock market is a bridge to economic development so it should be fine to compare it to a bridge. The Mongolian stock market is similar to an old wooden bridge that was handmade. It's essential to build a sturdy metal and concrete bridge made after a considerable amount of research and engineering solutions. At the moment, only pedestrians are able to cross the current wooden bridge. In other words, "retail" investors. We need to build a bridge for heavy vehicles and create the conditions where investment funds and banks can enter the Mongolian stock market.

Source: Unuudur http://mongolnews.mn/w/53143

Link to interview

Back to top

Economy

BoM MNT Rates: Tuesday, July 1 Close

 

7/1

6/30

6/27

6/26

6/25

6/24

USD

1,826.41

1,825.74

1,825.84

1,826.56

1,825.67

1,825.13

EUR

2,500.90

2,492.04

2,487.43

2,488.41

2,485.38

2,483.27

CNY

294.42

294.40

293.67

293.23

292.83

292.96

GBP

3,123.98

3,108.32

3,109.04

3,104.15

3,095.88

3,107.56

RUB

53.31

53.87

54.32

54.09

53.81

53.68

June MNT vs USD, CNY Chart:

 

Link to rates

 

FX Reserves Fall 52.6% YoY in May to $1.6 Billion

July 1 (Bank of Mongolia) The Bank of Mongolia has changed its' policy regarding official foreign exchange reserves reporting. The statistics will be published with an one-month lag /previously published with three-months lag/ on the first business day of the following month. Policy is in effect since July, 2014.

/in million USD/

Date

Gross Reserves

Monthly, %

YTD, %

YOY, %

2014.5

1604.5

-11.9

-28.6

-52.6

2014.4

1821.7

-6.2

-18.9

-48.1

2014.3

1943.3

-11.5

-13.5

-48.8

2014.2

2195.3

-10.2

-2.3

-45.3

2014.1

2446.3

8.8

8.8

-40.1

2013.12

2248

-2.7

-45.5

-45.5

2013.11

2309.6

-3.3

-44

-13.7

2013.1

2389.2

-10.8

-42.1

-10.7

2013.9

2679.6

-1.7

-35.1

-7.7

2013.8

2725.5

-9.5

-33.9

-0.9

2013.7

3012.7

-3

-27

7.6

2013.6

3107.5

-8.3

-24.7

6.9

2013.5

3387.7

-3.5

-17.9

17.8

Link to release

 

BoM FX auction: US$8 Million Sold at 1827, CNY 22 Million at 294.51, accepts $56.5 million swap bids

July 1 (Bank of Mongolia) On the Foreign Exchange Auction held on July 1st, 2014 the BOM has received bid offer of USD and CNY from local commercial banks. The BOM has sold 8.0 million USD as closing rate of MNT 1827.0 and 22.0 million CNY as closing rate of MNT 294.51.

On June 1st, 2014, The BOM has received MNT Swap agreement bid offer in equivalent to 56.5 million USD and accepted the offer.

See also:

·         FX Auction Statistics

Link to release

 

Mongolia – Mortgage Loans are now available on CDM platform

CEIC Global Macro Watch: Expansion Highlights - June 30, 2014

·         Mortgage Loans data from commercial banks for Mongolia are now available on CDM.

·         The Bank of Mongolia (central bank) provides monthly consolidated outstanding mortgage loans data denominated in Mongolian Tugriks (MNT) and loans granted after the Housing Mortgage Programme was introduced in June 2013.

·         Besides outstanding amounts of mortgage loans, the new dataset also includes non-performing loans, weighted average lending rates and number of borrowers.

Link to release

Back to top

Politics

Mongolia Passes Changes to Mining Law That May Boost Exploration

By Michael Kohn

July 1 (Bloomberg) Mongolia's parliament approved changes to the nation's 2006 Minerals Law, a development that may spur renewed investment in the flagging economy.

Passage of the amendments was announced on the Great Hural's website. The legislature, which ended its spring session today, also voted to allow the government to invest in the Tsagaan Suvarga copper and molybdenum project. Earlier in the day it passed the Law on Petroleum.

The flurry of activity comes amid Prime Minister Altankhuyag Norov's 100-day push to jump start the economy after more than two years of slowing growth and plunging foreign investment. FDI fell 52 percent last year and dropped 64 percent in the first five months of 2014, due in part to plunging coal prices and disputes with key investors, including Rio Tinto Group.

Drafts of the Minerals Law amendments included the creation of a National Geological Survey and the formation of a Policy Council to oversee legal changes in the mining industry. The final version of the changes hasn't yet been made public.

Mining law amendments will increase the proportion of Mongolia's area available to mining and exploration to 20 percent from about 8 percent, by lifting a 2010 ban on new licenses, according to comments made in May by Mining Vice Minister Erdenebulgan Oyun. The period of exploration will also increase to 12 years from nine years, he said.

Passage of the amendments may also lead to a resolution to last year's cancellation of 106 mining licenses, according to Otgochuluu Chuluuntseren, director general of the Ministry of Mining's department of strategic policy and planning.

Uncertainty Resolved

"Uncertainty that has been hanging over the mining and exploration sector for quite some time has been finally resolved with minimal amendments," Dale Choi, head of the consultant Independent Mongolian Metals & Mining Research, said by e-mail today. Investors should "be content that major parties can agree at the last minute on some major issues."

In May, the Ministry of Mining said the government intended to buy a 34 percent stake in Tsagaan Suvarga, a project owned by Ulaanbaatar-based Mongolyn Alt LLC. The ministry's Erdenebulgan said Mongolia will sell bonds to pay for its purchase the mine stake.

In May, Erdenebulgan said passage of the laws may lead to $1 billion in new investments.

Replacing Mongolia's 1991 Petroleum Law may expand investment opportunities to include different types of contracts between parties and regulate new energy sources including Mongolia's nascent oil shale industry, Erdenebulgan said in May.

Link to article

 

MONGOLIAN PARLIAMENT APPROVED AMENDED LAW ON MINERALS, POSTPONES RAILWAY BILL

July 1 (IMM&MR) According to official Mongolian Parliament website, united session of the country's legislature has approved today amendments to Law on Minerals

·         resolution on state stake in Tsagaansuvarga deposit ( MAK's TS project)

·         2013 budget implementation

·         main directions for socio-economic development in 2015

·         5-day Naadam Holiday bill

·         Fall Session agenda

·         new Law on Petroleum

·         transparent budget accounting law

·         and postponed narrow gauge railroad bill to Fall session

Link to Parliament official information: http://open.parliament.mn/content/4510.htm

Link to post

 

Citizens demand public voting on amendment to Land Law

July 1 (UB Post) Three ordinary Mongolian citizens, L.Bayarsaikhan, Ch.Munkhbayar and O.Lkhagvadorj, organized a peaceful demonstration at Central Square on Friday, opposing the amendment to the Land Law concerning usage and ownership approval for foreign nationals for 60 years. The demonstrators set forward a demand to hold a public vote on the amendment to the law.

Extensive coverage on this topic can be found at http://ubpost.mongolnews.mn/.

Link to article

 

Parliament Approves Budget Performance of 2013

Ulaanbaatar, July 1 (MONTSAME) A plenary meeting of the parliamentary session on Tuesday ran the second discussion of the parliamentary resolution on approving the 2013 budget performance of Mongolia, and then adopted it with 72.9% votes.

The presentation of the budget performance by the Sub-committee on budgetary expenditure monitoring was made by J.Erdenebat MP, the conclusion was presented by Ch.Khurelbaatar MP. Thus, the parliamentary session approved a draft resolution of parliament on taking some measures in a scope of adoption of the 2013 budget performance.

The same day, the plenary meeting passed a draft resolution of parliament on altering a composition of one Standing committee, and ran a first discussion of a draft resolution of parliament on approving the Basic Guidelines of Social-Economic Development of Mongolia in 2015. 

Link to article

 

Government works with private sector to provide cheaper food to the public

July 1 (UB Post) Tenger Plaza opened its new trade complex at the cost of an 8.7 billion MNT loan from the budget of the Program on Stabilizing Main Commodity Prices, a joint program of the government, Central Bank of Mongolia and the Ministry of Industry and Agriculture.

Government officials and Tenger Plaza administrators highlighted that the main purpose of the complex is to provide the public with meat, meat products and baked goods at lower than average market prices by purchasing meat and flour directly from the original vendors without having to pass through the hands of several vendors who increase prices along the way. The plaza is located near the Amgalan traffic circle in Bayanzurkh District.

Prime Minister N.Altankhuyag reported that the government is working to establish similar trade complexes with high capacity storage facilities in every district so that residents will have easy access to reasonably priced food throughout the year.

Deputy Minister of Industry and Agriculture Ts.Tuvaan also reported, "Four to five storage markets like Tenger Plaza will be established in Ulaanbaatar in the near future in order to keep basic commodity prices affordable."

He also added, "A total of 50 percent of the total 8.7 billion MNT loan is on soft-loan terms, as the government plans to support storage expansions nationwide."

The plaza was constructed with the cooperation of the government and over 70 private sector businesses, small and medium enterprises, and individuals. It covers 11,460 square meters with a two-story building and a parking lot for over 300 cars. Around 10,000 customers can purchase 25,000 types of goods at the complex.

The new complex has a meat processing factory with the capacity to prepare and pack 20 to 30 tons of meat per day, while its vegetable processing factory can receive, clean and pack up to ten tons of vegetables per day. A meat product factory and a bakery are also located in the complex.

The government launched the Program on Stabilizing Main Commodity Prices last year and received 116 storage construction proposals. Thirty-three businesses were approved and qualified to apply for loans. Of these 33, 23 received 74.9 billion MNT in loans, and as a result, the food storage capacity of Ulaanbaatar has increased by 40,000 tons.

Link to article

 

11 ministers exceed travel expenses

July 1 (UB Post) During last week's Parliament session, the General Audit Authority reported that 11 ministers exceeded their foreign visit spending last year by hundreds of millions of MNT.

The ministers were criticized for spending taxpayer money on "leisure and travel" by local news outlets and on social media.

In response to the allegation, Foreign Affairs Minister L.Bold, who was reported to have exceeded his travel expense budget by 558 million MNT last year, said in a press announcement that the allegations were untrue and that his ministry saved more than 650 million MNT last year.

"In the 2013 combined budget of the Ministry of Foreign Affairs, 653.4 million MNT was saved. Costs saved from construction and equipment made up most of this. But operations expenditures were overshot by two percent. This includes the official travel overspending of 558 million USD, which was explained as if it was 'the Minister of Foreign Affairs' travel and leisure' which doesn't match the reality, since 96 percent of this expense includes the cost of the commissioning and travel costs for the return of 39 diplomatic representative organization workers."

Last year, Prime Minister N.Altankhuyag promised that the government would not waste taxpayers' money on travel, and that a quota for only two trips has been made for ministers. He said that if ministers and government officials exceed this limit, they will be held accountable.

So far, no reprimand has been made, but news outlets and people on social media are demanding that officials pay their excessive spending from their own pockets.

Link to article

 

Naadam Holiday Extended to Five Days from Three, July 11-15

Ulaanbaatar, July 1 (MONTSAME) Holiday for the National Great Festival--Naadam will have five days, from July 11 to 15.

It was decided such after the plenary session of the parliamentary session on Tuesday had ran a first discussion of a draft amendment to the law on public celebration and remarkable days. The amendment was passed by 63.8% voted of MPs.

In conjunction with prolonging the Naadam holidays, a draft amendment to the law on labour was adopted as well.

The alteration of the law on public holiday came into force from the adoption day.

Link to article

 

World Bank Project: Improving Mongolia's mining regulatory environment

Project Update:

On June 12 we submitted final reports and deliverables to the Ministry of Mining.

We are coming to the end of our 3 month contract. Final responsibilities included the development of executive summary findings to date and a workshop for the stakeholder organisations. On June 12 we submitted final reports and deliverables to the Ministry of Mining. Click here for more information.

Project:

Crown Agents was recently engaged for a contract with the Mongolia Ministry of Mining (MoM). In an effort to streamline the export process for the mining industry, the MoM asked us to review how data is shared between the various Ministries involved in export regulations and look at ways to improve data sharing and exchange. 

We are currently developing the IT blueprints for a simplified data sharing environment that streamlines and minimises transactional requirements between the various government agencies and departments. The new data sharing environment will provide the MoM with access to data collected by other Mongolian export regulatory ministries. This new data environment will also provide a single online site for mining industry stakeholders to access real time information and submit data thereby facilitating improved strategic decision making and reporting. 

The enhanced capabilities and reduced regulatory hurdles will help increase the efficiency, effectiveness, and transparency of the mining industry in turn increasing Mongolia's overall economic competitiveness in this sector.

We recognise the need for governments to oversee and manage the activities of extractives industries while minimising regulatory burdens. Our advisory services related to technology are focused on striking a balance between often diverging aims to ensure the long term economic competitiveness of developing countries extractives industries while protecting the environment and enhancing tax revenues.

Link to project page

 

World Bank Procurement Notice: International Technical Consultant for Internal Auditing of Mongolian Government-Owned Mining Companies

DEADLINE: 31 July 2014

POSTED: 1 July 2014

PROJECT: Mining Sector Institutional Strengthening Technical Assistance Project

TITLE: International Technical Consultant for Internal Auditing of the Government-Owned Mining Companies

NOTICE: Project ID: P108768Borrower/Bid No: MSISTAP#1.1./81 Mining Sector Institutional Strengthening Technical Assistance Project, Mongolia   Project ID No: P108768 Assignment Title: International Technical Consultant for Internal Auditing of the Government-Owned Mining Companies Reference No. :...

Link to notice

 

2,800 citizens receive tax refunds on mortgage, tuition

July 1 (UB Post) People who bought apartments or paid university tuition fees for the first time are eligible to receive tax returns on those expenses. Last year's taxes included in the first phase of tax returns were refunded in April. The third phase of the tax returns were implemented this month.

Currently, the tax returns from the State Budget Fund for 2,800 taxpayers included in the third phase have not been issued yet.

Through the 11-11 center, the General Department of Taxation reported that some of the 2,800 tax returns were issued in June and other tax returns will be issued after budget clarification.

Link to article

Back to top

Banner

Business

ADB lends US$40 mln to Khan Bank to Boost SME Loans

MANILA, July 1 (Xinhua) -- The Asian Development Bank (ADB) said Tuesday that it had approved a loan of 40 million U.S. dollars to help Mongolia's small businesses get better access to financing from one of its biggest banks.

ADB said in a statement that the loan will be used to expand the micro, small- and medium-sized enterprises (MSME) portfolio of Khan Bank to 35 percent of its total loans by 2020, from 26 percent last year.

"Access to credit remains one of the most critical obstacles to the development of MSME sector in Mongolia. ADB will help address this gap by making available at Khan Bank more loans and longer repayment terms," said ADB Investment Specialist Monisha Hermans.

The Manila-based lender said MSMEs comprise 98 percent of all enterprises in Mongolia, with three quarters of them considered as microenterprises.

ADB said only 10 percent of Mongolia's small businesses regularly access financing through banks, as many banks are focusing their operations on top-tier and larger companies which are perceived to be less risky.

Khan Bank is the second Mongolian bank to receive a loan for MSME relending from ADB. In December 2013, ADB extended a loan of 30 million U.S. dollars to XacBank for relending to small businesses.

Link to article

Link to ADB release

 

Airstrip paving technology to create longer lasting roads

July 1 (UB Post) A new technology for Mongolia could increase the longevity of roads. The Wirtgen Group's asphalt milling machine, invented in Germany, was used for the first time in Mongolia on Thursday, June 26, in the construction of an airstrip for the International Airport in Hushigt Valley, set to open in October 2016.

The Wirtgen machine, which has been used in many European, American, Asian and African countries, can plane paved roads with 15 cm height and 50 cm width.

"This technology is being used for the first time in our country. For Mongolia specifically, an iron framework must be used before paving with concrete, because of Mongolia's climatic conditions. We used to have to repair the airstrip every 40 years. Thanks to this technology, the road will be serviceable for 50," said Aerodrome Manager of the International Airport construction project D.Tsognyam.

The concrete airstrip of the International Airport in Hushigt Valley will be 3,600 meters long and 45 meters wide, with a 7.5 meter asphalt and concrete border.

The airstrip will be ready in three months, completed by a Japanese and Korean engineering team.

Link to article

Back to top

Banner

Ulaanbaatar

Bayankhoshuu and Selbe Areas to Be Developed as Subcenters of Ulaanbaatar under ADB Soft Loan

July 1 (infomongolia.com) At the Cabinet meeting held last Saturday, June 28, Minister of Economic Development N.Batbayar was entrusted to sign the first phase of Loan Agreement on "Ger Areas Development and Investment Support Program" between the Government of Mongolia and the Asia Development Bank (ADB).

So on June 30, 2014, Minister N.Batbayar and ADB Country Director Robert Schoellhammer have signed a 104.5 million USD Loan Agreement, the Tranche 1 of the "Ger Areas Development and Investment Support Program", whereas the ADB and the European Investment Bank to provide soft loans, including commercial loans and grants estimated total of 82.08 million USD, and Ulaanbaatar Administration to finance the rest of 22.42 million USD.

At the signing ceremony, Deputy Governor of the Capital City responsible for Construction, Urbanization and Investment Issues S.Ochirbat was also present to co-sign the document.

The 3-year project objective is to restructure the Ger Districts in Ulaanbaatar with participation of residents by expanding water supply, sewerage and heating service systems, improving socio-economic infrastructure and in the frameworks of the Capital City General Plan, considered development strategic territories of Bayankhoshuu and Selbe areas will be developed as subcenters of the Ulaanbaatar. 

Link to article

Related:

Project to be implemented to redevelop ger areas with ADB loanMontsame, July 1

Urban Services and Ger Areas Development program signedMongolian Economy, July 1

Back to top

Banner

Diplomacy

Xi Jinping to Visit Mongolia in August  

July 1 (Mongolian Economy) The current President of the People's Republic of China, Xi Jinping, will pay Mongolia an official visit next month in August. Jinping also holds the position of the General Secretary of the Communist Party of China and the Chairman of the Central Military Commission. As China's paramount leader, Jinping aims to further relations with Mongolia in addition to renewing campaigns in his home country against corruption, hoping to continue economic reforms and open governance. 

He has also pledged to broaden economical cooperation and partnership with Mongolia by providing ample support. Jinping consistently meets with Mongolian President, Ts. Elbegdorj, to discuss pressing issues between Mongolia and China in order to continue their collaboration in a variety of sectors ranging from infrastructure to mining. 

Jinping's last official visit to Mongolia was in 2008, when he was the Vice President of the People's Republic of China. His appointment this year highlights the 65th year since both nations established diplomatic ties as well as the 20th anniversary since the renewal of their cooperative agreement known as "Mongolia-China Friendly Exchanges." The former paramount leader, Hu Jintao, paid an official visit to Mongolia 11 years ago, signifying China's consistent support of Mongolia. The People's Republic of China also holds the position as Mongolia's largest trading and investment partner.

Link to article

 

Czech Parliament Secretary General Petr Kynstetr on Mongolia Visit

July 1 (infomongolia.com) Delegates from the Czech Parliament headed by Secretary General of the Chamber of Deputies of the Czech Republic, Petr Kynstetr are conducting an official visit to Mongolia on June 29-July 02, 2014.

On July 01, 2014, Secretary General of the Secretariat at the State Great Khural (Parliament) B.Boldbaatar welcomed the guests at the Government House introducing the Parliament Session Hall, Standing Committees' activity as well as organizational structure of the Secretariat.

During the meeting with his counterpart, Secretary General Petr Kynstetr expressed his interest to broaden collaboration between the two Secretariats and exchange experiences in the relevant legislative organs and noted within the scope of this visit they aim to boost partnership being established in the past, moreover, Mr. Petr Kynstetr invited a delegation from the Secretariat of the State Great Khural to visit the Czech Parliament in the upcoming September. At the end of meeting, the two counterparts signed a Memorandum of Cooperation between the two Parliaments.

On the same day, Secretary General Petr Kynstetr was received by Deputy Speaker of the Mongolian Parliament L.Tsog, who served as the Secretary General of the Secretariat at the State Great Khural in 1996-1999 and incumbent Secretary General of the Chamber of Deputies of the Czech Parliament, Petr Kynstetr has been serving for 23 years. During the meeting, parties mentioned their first meeting memories held 10 years ago and were satisfied with recovering relationships between the two Parliaments.

Also, the Czech legislators will be received by the Speaker of State Great Khural, Z.Enkhbold and planned to be familiarized with Gobi Cashmere Factory, Gandantegchinlen Monastery, National Museum of Mongolia and Skoda auto salon in Ulaanbaatar.

Link to article

 

Honorary Consulate opens in Belgrade

Ulaanbaatar, July 1 (MONTSAME) A Mongolian Honorary consulate launched its operations in Belgrade, Serbia on June 27.

The Consulate will be operational under a leadership of the recently appointed Honorary Consul Prof Dr Marco Bumbasirevic, a Prof. of Orthopedic Surgery and Traumatology and Chair of Orthopedic Surgery Department in Belgrade.

At the opening ceremony speeches were given by Ambassador of Mongolia to Serbia T.Gandi, the Serbian Deputy FM Dragan Momcilovic, and Honorary Consul Marco Bumbasirevic.

Mr Bumbasirevic, the first ever Honorary consul of Mongolia to Serbia, promised efforts to protect legal rights of Mongolians residing in Serbia, to develop the Mongolia-Serbia relationship and cooperation in all fields, as well as to promote knowledge about Mongolia in Serbia. He also noted a readiness of the Serbian authorities to support his efforts.

Before the ceremony, Ms Gandi had met with the consul to ask him to give a priority in increasing number of Mongolian students seeing high education under scholarships of the Serbian side, and in granting the scholarships for two in academic years of 2014-2015.

Ms Gandi also gave Mr Bumbasirevic recommendations her Embassy wants to get reflected in the 2014 action plans of the Honorary Consulate, and signed with him a memorandum of understanding.

Link to article

 

Japan Self Defense Forces Pledges to Construct Road to Tavan Tolgoi Military Training Center by 2016

July 1 (infomongolia.com) The Japanese Army officials led by Chief of Staff of the Japan Ground Self Defense Forces, General Kiyofumi Iwata have conducted a working visit to Mongolia on June 25-28, 2014.

Last Friday, June 27, the Japan Ground Self Defense Forces' engineering training team has exchanged experiences on constructing a paved road, including road planning and road measurement with militants of the Unit No.014 of Mongolian Armed Forces and teachers of Mongolian University of Defense.

The joint training was held in the territory of Argalant Sum of Tuv Aimag, where Mongolia-Japan military engineers are pledged to accomplish a 15 km of paved road by 2016, which is to stretch the Military Training Center known as Tavan Tolgoi or Five Hills, where the annual "Khaan Quest 2014" multinational peacekeeping exercise has been finished today on July 01, 2014.

In the scope of training 14 days period, the first 100 m of paved road is started with a ground breaking ceremony.

Link to article

 

The N.S.A. Can Spy on These 193 Foreign Governments (Including Mongolia)

July 1 (The New York Times) The Washington Post has published a 2010 government document indicating that the National Security Agency was authorized, by the Foreign Intelligence Surveillance Court, to intercept information "concerning" 193 foreign governments. According to The Post, the N.S.A. can "intercept through U.S. companies not just the communications of its overseas targets but any communications about its targets as well."

That's every single country except Britain, Canada, Australia and New Zealand. They're listed below.

Link to article

 

N. Korea, Japan agree on visit to Japan by Megumi Yokota's daughter after meeting in Mongolia: paper

July 1 (Kyodo) North Korea and Japan have agreed that the daughter of Japanese abductee Megumi Yokota will visit Japan in November, a Seoul daily reported Tuesday.

The South Korean daily Dong-A Ilbo said the agreement was reached sometime before Yokota's parents were allowed to meet secretly with their granddaughter for the first time in March in Mongolia, citing Choi Song Ryong, head of a group called South Korean Families of Abducted and Detained in North Korea.

"North Korea has demanded that Kim Eun Gyong be allowed to freely visit Japan or North Korea while Japan wants her to return to Japan permanently," Choi was quoted as saying.

Choi claimed he confirmed the information through a source inside the Japanese government and a source in North Korea, the daily said.

Keiji Furuya, Japanese state minister in charge of North Korea's abductions of Japanese nationals, immediately denied the report, saying "Japan has not decided on such a matter."

Japanese Chief Cabinet Secretary Yoshihide Suga also said he "had not been informed (of such an agreement) at all."

Shigeru Yokota, the 81-year-old father of Megumi, said that while he would welcome such a move, he has not been informed of any such plan and that the report is questionable.

The secret meeting in the Mongolian capital, Ulan Bator, between Yokota's parents and Kim Eun Gyong, now 26, was widely seen as a good-will gesture by North Korea toward Japan.

Megumi Yokota went missing on her way home from school in 1977 when she was 13. In 2002, Pyongyang admitted to having abducted Japanese to North Korea, including Yokota, who it says committed suicide in 1994 after giving birth to a daughter.

Link to article

Back to top

Banner

Social, Environmental and Other

Three Przewalski horses sent from Prague zoo to Mongolia

Prague, July 1 (Czech News Agency) - Three Przewalski horse mares from the Prague zoo were sent to Mongolia, their country of origin, aboard a CASA military transport planes today.

Originally, four Przewalski horses were to be transported there, but the fourth one was excluded from the transport over complications.

This has been the fourth transport of Przewalski horses to Mongolia, organised by the Prague zoo in cooperation with the Czech military.

Since 2011, 12 Przewalski horses have been sent to the Gobi B National Park in Mongolia. All of them could stand the trip quite well and they got used to the new habitat.

This year, three other mares will join them - Ulla, Gretel and Bayan.

At the very last moment, the fourth selected mare had to be replaced but no suitable candidate was found, and this is why only three flew to Mongolia to eliminate risks, Prague zoo director Miroslav Bobek told reporters.

The flight lasts 17.5 hours with an na intermediate landing in Kazan and Novosibirsk. The plane will finally land in Bulgan, not directly in the Gobi Desert as originally planned since the local authorities did not allow that.

From Bulgan the mares will be driven for seven hours to special fences for acclimatisation. They will stay there until next spring when they are to be released among other Przewalski horses in the national park.

The Prague zoo is one of the main organisers of the transfers of the Przewalski horse, the last of which was shot dead in the wild 40 years ago, back to its original homeland.

The transfers from Western Europe started in the 1990s and over a hundred horses have returned to Mongolia since.

At present, about 1900 Przewalski horses live all over the world, including some 300 heads in two national parks in Mongolia.

The Prague zoo started breeding the Przewalski horse in 1932. It has kept the international pedigree book of this species since 1959.

Link to article

 

Cinematographer D.Angarag to work on Hollywood movie

July 1 (UB Post) Mongolian cinematographer D.Angarag will produced a movie in Hollywood, reported news.mn.

D.Angarag has previously worked on famous Mongolia movies such as "Minii Khursh Chutgur" (My Neighbor is a Devil), "Bodliin Khulgaich" (Thief of the Mind), "Dev" and "Anu Khatan" (Queen Anu).

He took part in the 86th Academy Awards (The Oscars 2014), which took place in Hollywood, Los Angeles in March. The cinematographer was also involved in a professional cinematographer's training by invitation of the American Society of Cinematographers in October 2013.

He is expected to work on movie called "Precious" in the USA soon.

Link to article

Related:

Mongolian cinematographer to work in HollywoodMontsame, July 1

 

Mongolian film takes Grand Prix at Austrian International Film Festival

July 1 (UB Post) Mongolian short film "Amirlangui" (Serenity), created by Shtork Film Company, competed at the International Film Festival in Austria.

Some 240 short films took part in the festival. "Amirlangui" won the Grand Prix award at the festival.

The film is about the life of an orphan girl Anir, who grew up on the streets. American film director Hugo Anthony said Mongolian film art remarked during the festival that Mongolian cinematography is nearly on par with the world.

Link to article

 

Tickets for Naadam will be sold from July 6

July 1 (news.mn) Naadam on the occasion of the 2223rd anniversary of Mongolian Statehood, and the 93rd anniversary of Mongolian People`s Revolution will start with Uriankhai Style Archery on July 7th.

The Opening ceremony for Naadam will start under the theme of "High destiny of Mongolia" displaying nomadic people`s history, philosophy and wonders at the Central Stadium at 11.00 pm on July 11th.

State Honored, State Merit Artist D.Sosorbaram is working as the organizer of the Naadam preparation.

The tickets for Naadam will be available at the cash offices of the Central Cultural Palace and the Wrestling Palace from July 6th. Ticket for Naadam costs 16,000 MNT, 20,000 MNT and 24,000 MNT depending on location and seats.

Link to article

 

Police detain teen over 'racist' Barcelona metro attack on Mongolian man

July 1 (AAP) Spanish police on Monday arrested a teenager suspected of beating up a Mongolian man inside a Barcelona metro train in an alleged racist attack after a video of the incident posted online went viral.

The 56-second video shows a blonde youth, dressed in a black T-shirt and jeans and whose face is pixellated, repeatedly punching the seated man before other passengers intervened late on Saturday.

It was reportedly first posted on Sunday to a Twitter account that contained Nazi symbols and the slogan: "Always a patriot, white Europe".

The owner of the account, who appeared in his profile picture with a shaved head and his mouth covered by a bandana, tweeted that he had filmed his friend carrying out the attack on his mobile phone.  

The victim, a 25-year-old Mongolian man who lives in Spain, filed a complaint with police on Sunday.

Police said in a statement they had detained a young man who is suspected of carrying out the beating and charged two others, including another minor, who acted as accomplices.

Police did not give the nationality of the suspect who was arrested, but Spanish media reported that he was Russian. 

The video, which was repeatedly played on Spanish television stations and had over half a million views on YouTube, sparked angry reactions from anti-racism campaigners and government officials.

"We want to make it clear that attitudes like this are not acceptable in our city," Barcelona city hall said in a statement.

In 2007 a Spanish man was videotaped repeatedly punching and kicking a 16-year-old Ecuadorian girl.

He was jailed in March for eight months.

Link to article

Back to top

---


Room #5, Coffice Hub, 5th Floor, Time Center
21 Baga Toiruu Street, Sukhbaatar District 8
Ulaanbaatar, Mongolia 15160
Email: info@covermongolia.com
P Please consider the environment before printing this e-mail.