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Close: Mongolia Related ASX Listed Companies, June 17, 2011 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.042 | 0.000 | 0.042 | 0.043 | 0.044 | 0.044 | 0.039 | 4,439,480 | |
1.400 | 0.040 | 1.355 | 1.400 | 1.370 | 1.400 | 1.330 | 293,062 | |
0.260 | 0.010 | 0.250 | 0.260 | 0.260 | 0.260 | 0.260 | 93,000 | |
0.580 | 0.005 | 0.570 | 0.590 | 0.595 | 0.600 | 0.575 | 278,235 | |
0.009 | -0.001 | 0.009 | 0.010 | 0.009 | 0.010 | 0.009 | 6,151,724 | |
0.005 | 0.000 | 0.004 | 0.005 | 0.005 | 0.005 | 0.005 | 500,000 | |
0.058 | 0.002 | 0.056 | 0.058 | 0.057 | 0.058 | 0.056 | 1,441,526 | |
0.145 | 0.000 | 0.140 | 0.150 | 0.150 | 0.150 | 0.145 | 37,000 | |
1.110 | 0.030 | 1.070 | 1.110 | 1.070 | 1.120 | 1.060 | 440,928 | |
0.235 | 0.000 | 0.235 | 0.240 | 0.235 | 0.240 | 0.235 | 377,716 | |
0.400 | 0.020 | 0.350 | 0.500 | 0.350 | 0.400 | 0.350 | 50,000 | |
0.400 | 0.005 | 0.400 | 0.410 | 0.400 | 0.410 | 0.400 | 411,741 | |
21.000 | 0.100 | 20.990 | 21.000 | 21.100 | 21.370 | 20.940 | 1,973,002 | |
77.820 | -0.580 | 77.810 | 77.820 | 78.600 | 79.040 | 77.440 | 3,475,273 | |
41.950 | -0.050 | 41.940 | 41.950 | 42.120 | 42.450 | 41.800 | 22,395,998 | |
Source: asx.com.au
Japan to join railway projects in Mongolia, Marubeni to Invest in Ulaanbaatar Subway Lines - Nikkei
June 16 (Reuters) - Japan will partner with Keihan Electric Railway Co and others for railway projects in Vietnam, Mongolia and Indonesia, The Nikkei business daily said.
Japan has reached a deal with the three nations to build four railway projects, which are expected to cost 535 billion Yen ($6.60 billion)in total, the newspaper said.
Japan will invest into railcars, signal systems and operations for these projects, the daily said.
Keihan Electric Railway will invest in the entity supervising the largest project, a 35 kilometre railway in Vietnam connecting central Hanoi with a high-tech industrial park, the Nikkei said.
Nomura Research Institute and others will conduct feasibility studies for the project, which is expected to cost 270 billion yen ($3.33 billion), the newspaper said.
In Mongolia, Marubeni Corp plans to invest in two subway lines that will be constructed in central Ulan Bator. JGC Corp and others will participate in feasibility studies. The total cost is expected to reach 180 billion yen ($2.22 billion), the daily said.
In Indonesia, Sojitz Corp and infrastructure design firm Japan Transportation Consultants Inc plan to join a 55 billion yen ($679 million) project to restore a 189km railway in southern Sumatra.
In Jakarta, for a project involving a major train station, Osaka-based Nikken Sekkei Civil Engineering and Tokyu Land Corp plan to participate. The project is worth 30 billion yen ($370 million), The Nikkei said.
The projects will be done in public-private partnerships and the feasibility studies for the railway projects will begin in August, the daily said.
The undertakings are expected to be eligible for funds under Japan's official development assistance program, which provides yen loans to foreign nations, the newspaper said.
The participating Japanese companies will tap loans from JICA and Japan Bank for International Cooperation, The Nikkei said.
Mongolia Planning Debut Dollar Bond Sale, Elbegdorj Says
June 17 (Bloomberg) -- Mongolia plans to sell its debut dollar-denominated bond “in the near future,” to finance expansion of the mining industry and build roads and bridges, President Tsakhia Elbegdorj said.
The government is talking to investment banks in New York about underwriting the planned $500 million debt sale, said Naidansuren Zoljargal, deputy governor at the nation’s central bank, who is visiting the U.S. with the president. The $1 billion of 10-year debt that Sri Lanka, whose bonds carry the same B1 rating from Moody’s Investors Service as Mongolia, sold in September yield 6.252 percent, unchanged from their issue.
“Mongolia is in a good shape in terms of issuing bonds and paying back those things,” Elbegdorj, 48, said in an interview today at Bloomberg’s headquarters in New York. “Our economic growth is good.”
Mongolia’s MSE Top 20 Index rose 108 percent in the past 12 months, the world’s best performer among 91 stock benchmark measures tracked by Bloomberg, and the local currency gained 9 percent against the dollar as the country’s exports of coal and copper surged. Resource-rich Mongolia, where Elbegdorj said the economy is growing at a rate of 7 percent to 8 percent, needs to quadruple the size of its rail network, add power and water plant, and build more roads to boost metal and mineral exports.
Currency Swaps
The government is also negotiating with Russia to secure currency swaps, according to Elbegdorj, who received a degree from Harvard University’s John F. Kennedy School of Government in Cambridge, Massachusetts in 2002. He said he expects trade in local currency with Mongolia’s two neighbors, Russia and China, to increase.
A currency swap agreement signed with China last month paved the way for the planned five-year bond because the “safety belt” will boost investors’ confidence in its debt market, Zoljargal said in a telephone interview in New York.
The swap, worth 5 billion yuan ($772 million), allows Mongolia to tap the Chinese currency during an economic crisis. About 25 percent of trade between China and Mongolia is settled in the yuan, according to Zoljargal.
Policy makers are also keen to develop five-, 10- and 15- year benchmarks for its local-currency government bond market to secure financing and take advantage of growing interest from foreign investors, Zoljargal said. The Development Bank of Mongolia also plans to sell $700 million of domestic-currency bonds this year, he said.
London Exchange
A partnership agreement with the London Stock Exchange signed in January and aimed at overseeing the development of the Mongolian bourse and its sale to investors, will help spur international participation in the equity markets, where domestic investment is now dominant, Elbegdorj said.
“We are focusing on developing our stock exchange,” he said.
The planned bond sale would open the international capital markets for the government and local companies to raise funds to finance $50 billion of investment projects in the next decade, said Zoljargal. Mongolia’s B1 rating at Moody’s is four levels below investment grade, while S&P ranks it a step higher at BB-.
“We are watching the market carefully,” said Zoljargal. “The government really wants to have this. The benchmark itself is a very important thing for the private company to go to the market.”
‘Quite Keen’
Jeremy Brewin, who manages $3.3 billion of emerging market assets as a fund manager at Aviva Investors in London, said he’s interested in Mongolian dollar debt because of the nation’s debt levels and commodities-driven economy.
“We’re quite keen as it has very little debt outstanding and the resources, the declared resources, suggest that Mongolia is asset rich,” he said. “Until proven otherwise, we like idea of investigating the credit with prospects for participating in the deal.”
A mining boom in the world’s most sparsely populated nation promises the greatest influx of wealth for Mongolia since Genghis Khan conquered much of the known world in the 13th century.
Economic growth may surge to 23 percent in 2013, more than twice the forecast expansion in China, as large mining projects begin production, the International Monetary Fund said in a March report.
Landlocked Country
International companies such as Rio Tinto Group, the world’s No. 2 mining company, are flocking to the landlocked country to tap its natural resources. Rio Tinto is developing the nation’s natural resources Oyu Tolgoi copper and gold deposit, which it expects will account for 30 percent of Mongolia’s gross domestic product when completed.
Mongolia may award its Tavan Tolgoi coal mining project, one of the largest in the world, to a group of companies as soon as this month, Elbegdorj said.
Elbegdorj, a former journalist who led the peaceful revolution that ended more than 65 years of communist rule in Mongolia in 1990, said he’s concerned about how to “manage” the surge of foreign investment and ensure the windfall spreads among the nation’s citizens. More than 33 percent of Mongolians live below the poverty line, and per capita income in the nation of 2.7 million is $2,111, the IMF said in 2010.
“Earlier days, we focused on attracting investment,” Elbegdorj said. “One of the biggest challenges is how to manage the money flowing from the mining to the benefit of our people.”
Sandwiched between Russia’s far east to the north and the 1.3 billion-strong, resource-hungry China to the south, Mongolia is looking for ways to lessen its vulnerability.
China accounts for 80 percent of Mongolia’s imports and buys about 85 percent of its exports, according to Mongolia’s central bank data. The country depends almost 100 percent on Russian oil.
“Our best interest is to balance investments and trade between our two neighbors, Russia and China, and other parts of the world,” Elbegdorj said. “I’m trying to encourage investment from the United States of America.”
Mongolia Sees North Korea’s Ports as Gateway for Mineral Exports
June 18 (Bloomberg) -- Mongolia sees North Korea’s ports as the gateway for shipping its mineral resources, taking advantage of “very good relations” between the two countries, Prime Minister Sukhbaatar Batbold said.
“We will keep the channel warm with North Korea,” Batbold said in an interview with Bloomberg Television in Beijing yesterday. “We could have further cooperation in the access to the sea and sea ports.”
Landlocked Mongolia needs to secure access to the sea as it pursues mining projects, he said. Aside from its main exports of coal and copper, the country also has oil, potash, iron ore and uranium resources, as well as rare earths used in electronics, wind turbines and smart bombs.
North Korea was put under tougher United Nations sanctions banning arms trade and restricting financial transactions after its second nuclear test in May 2009. Six-party talks on the country’s nuclear-weapons program, hosted by China and also involving Japan, South Korea, Russia and the U.S., haven’t convened since December 2008.
“Basically we are trying to engage North Korea, keep them engaged with other countries. We don’t want them to be isolated,” Batbold said yesterday at the end of his visit to China. “We would like peace, stability and security in our region.”
China last year accounted for 83 percent of North Korea’s $4.2 billion of trade as Kim Jong-Il’s regime became increasingly isolated. North Korean dependence on China will grow as long as global sanctions are in place, the Seoul-based Korea Trade-Investment Promotion Agency, or Kotra, said on May 27 in releasing the figures. North Korea doesn’t publish its own data.
China Trip
Mongolia is trying to seek a “balance of interests” in its relations with neighbors such as Russia and China and Western countries, Batbold said.
“This balance has to be kept not by squeezing somebody, but increasing” the opportunities for cooperation, he said.
Kim’s trip last month to China, his main ally and benefactor, was his third in the past year and may have been aimed at extracting more aid and trade to shore up an economy beset by the sanctions aimed at halting the regime’s nuclear- weapons program, crop failures and livestock disease.
Mongolia may also supply North Korea with meat and foodstuff, Batbold said. The two countries could cooperate in agriculture because of Mongolia’s “vast land,” he said.
Mongolia is opening up its resource riches to mining as prices for coal surge on demand from Asian steelmakers. The nation is seeking to develop the Tavan Tolgoi coal basin, which is one of the world’s largest unexploited reserves of coking coal, a key material in making steel.
Rail Network
Peabody Energy Corp., a Shenhua Group Corp.-Mitsui & Co. venture, Vale SA, a Russia-Japan-South Korea group, ArcelorMittal and Xstrata Plc have been shortlisted to develop the basin. Batbold said that three or four bidders may be asked to form a single group to work on the project.
Mongolia aims to quadruple its rail network to send coal, copper and rare earths to nations such as Japan and South Korea under a plan to reduce reliance on the Chinese market and boost economic development.
Construction is scheduled to start this year on a 400- kilometer (250-mile) link from Tavan Tolgoi and the Oyu Tolgoi copper deposit, another of the world’s biggest untapped resources, to an existing rail line running north to Russia and south to China.
Mongolia to Offer Tavan Tolgoi Mine to ‘3 or 4’ Bidders, PM Says
June 17 (Bloomberg) -- Mongolia may share its Tavan Tolgoi coal mining project between a majority of the six bidders shortlisted by the government and ask them to work together, Prime Minister Sukhbaatar Batbold said in an interview today.
“There are going to be about three or four of the major ones to create one consortium,” Batbold told Bloomberg Television in Beijing, concluding his three-day state visit to China. The final decision is “very close.”
Coal production in Mongolia doubled last year to become the nation’s top export earner, spurring the government to push through development of one of the world’s biggest unexploited deposits of the mineral. Peabody Energy Corp., a Shenhua Group Corp.-Mitsui & Co. venture, Vale SA, a Russia-Japan-South Korea group, ArcelorMittal, and Xstrata Plc were all shortlisted.
Mongolia is trying to seek a “balance of interests” in its relations with neighbors like Russia and China and Western countries, he said. “This balance has to be kept not by squeezing somebody, but increasing” the opportunities from cooperation, he said.
“We would like to make this happen as soon as possible because quickly it can generate the revenue and it’s good for the country,” Batbold said.
Talks were underway on the contract for the central and western part of the site, Baterdene Ragchaa, a spokesman for Erdenes MGL LLC, the state-controlled owner of the deposit, said on March 31.
Seeking Expertise
Mongolia will this month announce the winning bid to develop the deposit, Xinhua News Agency said May 19, citing unidentified local media.
The nation is seeking mining expertise and infrastructure development, including railway construction, Erdenepurev Amarkhuu, director-general of fuel policy at the Ministry of Mineral Resources, said in April. Mongolia is also targeting “value-added production” in areas including coal-to-liquid and coal-to-gas projects, he said then.
Tavan Tolgoi spans some 68,000 hectares (168,000 acres), with coking coal used in steelmaking located mainly in the central Tsankhi area, according to Erdenes MGL. Tsankhi has been split into the western bloc, which will be developed by the winners of the tender, and the eastern side, which will be mined by Erdenes TavanTolgoi, a unit of Erdenes MGL.
Batbold and Chinese counterpart Wen Jiabao oversaw the signing of nine agreements in Beijing yesterday, including one for a $500 million loan to Mongolia from China.
The other agreements included economic and technological cooperation, the protection of cultural relics, and education.
“China is a good neighbor and a strategic partner,” Batbold said today. Cooperation will benefit both countries as Mongolia has resources China needs, while China can provide the “markets and potential” for Mongolia’s economic development, he said.
Mongolia doesn’t want to be only a supplier of raw materials, Batbold said. “We would like to direct the financing opportunities to the industries to create more value, more technology and more environmentally friendly approaches.”
Coal leads In Mongolian export
June 17 (UB Post) In the first four months of 2011, Mongolia exported products to the value of 1162.7 million USD. These exports are up 59.4 percent from the same period in 2010, said National Statistics Office of Mongolia. The increase is influenced by mining exports, such as coal, zinc ore, iron ore and fluorspar ore.
Mining production dominated in this country’s export.
In the first quarter of 2011, coal presented 33 percent of total product, with copper 28.5 percent. Also iron ore, concentrate 10.3 percent, crude 5.6 percent. However, gold volume reduced from the same period of last year by 19.8 million USD.
In addition, exported coal volume for 2010 was 16,635,100 tons, in 2009 it was 7,113,200 tons, in 2008 it was 4,169,300 tons, and 2007 only 3,269,000 tons.
Ivanhoe Mines Stock Falls On Unusually High Volume (IVN)
June 16, NEW YORK (TheStreet) -- Ivanhoe Mines (NYSE:IVN) is trading at unusually high volume Thursday with six million shares changing hands. It is currently at 4.1 times its average daily volume and trading down 78 cents (-3.4%) at $22.23 as of 4:01 p.m. ET.
U.S. Senate Passes Resolution in Support of Mongolia
June 15 (The Library of Congress) --
S.RES.208 -- Expressing the sense of the Senate regarding Mongolian President Tsakhiagiin Elbegdorj's visit to Washington, D.C., and its support for the growing partnership between the United States and Mongolia.
IN THE SENATE OF THE UNITED STATES
June 15, 2011
Mr. KERRY (for himself, Mr. MCCAIN, Ms. MURKOWSKI, and Mr. WEBB) submitted the following resolution; which was considered and agreed to
RESOLUTION
Expressing the sense of the Senate regarding Mongolian President Tsakhiagiin Elbegdorj's visit to Washington, D.C., and its support for the growing partnership between the United States and Mongolia.
Whereas the United States Government established diplomatic relations with the Government of Mongolia in January 1987, followed by the opening of a United States Embassy in Ulaanbaatar in June 1988;
Whereas in 1990, the Government of Mongolia declared an end to 1-party Communist rule and initiated lasting democratic and free market reforms;
Whereas the United States Government has a longstanding commitment, based on its interests and values, to encourage economic and political reforms in Mongolia, having made sizeable contributions to that end since 1991;
Whereas in 1991, the United States--
(1) signed a bilateral trade agreement that restored normal trade relations with Mongolia; and
(2) established a Peace Corps program in Mongolia that has had 869 total volunteers since 1991;
Whereas in 1999, the United States granted permanent normal trade relations status to Mongolia;
Whereas the Government of Mongolia has increasingly participated in the International Monetary Fund, the World Bank, the Asian Development Bank, and the European Bank for Reconstruction and Development, among other international organizations;
Whereas in 2007, the House Democracy Partnership began a program to provide parliamentary assistance to the State Great Khural, the Parliament of Mongolia, to promote transparency, legislative independence, access to information and government oversight;
Whereas on May 24, 2009, the people of Mongolia completed the country's fourth free, fair, and peaceful democratic election, which resulted in the election of opposition Democratic Party candidate Tsakhiagiin Elbegdorj;
Whereas in July 2011, Mongolia will assume the 2-year chairmanship of the Community of Democracies;
Whereas in 2013, Mongolia will host the Seventh Ministerial Meeting of the Community of Democracies in Ulaanbaatar;
Whereas the Government of Mongolia continues to work with the United States Government to combat global terrorism;
Whereas Mongolia deployed about 990 soldiers to Iraq between 2003 to 2008 and currently has 190 troops in Afghanistan;
Whereas in 2010, the Government of Mongolia deployed a United Nations Level II hospital in Darfur, Sudan;
Whereas the Government of Mongolia has actively promoted international peacekeeping efforts by sending soldiers--
(1) to protect the Special Court of Sierra Leone;
(2) to support the North Atlantic Treaty Organization mission in Kosovo; and
(3) to support United Nations missions in several African countries;
Whereas the Government of Mongolia has built a successful partnership since 2003 with the Alaska National Guard that includes humanitarian and peacekeeping exercises and efforts;
Whereas the United States Government and the Government of Mongolia share a common interest in promoting peace and stability in Northeast Asia and Central Asia;
Whereas in 1991 and 1992, the Government of Mongolia signed denuclearization agreements committing Mongolia to remain a nuclear weapons-free state;
Whereas in 2010, Mongolia became the Chair of the Board of Governors of the International Atomic Energy Agency;
Whereas in 2010, the United States and Mongolia signed a Memorandum of Understanding to promote cooperation on the peaceful use of civil nuclear energy;
Whereas the National Nuclear Security Administration and the Nuclear Energy Agency of the Government of Mongolia successfully completed training on response mechanisms to potential terrorist attacks;
Whereas between 1991 and 2011, the United States Government granted assistance to Mongolia--
(1) to advance the legal and regulatory environment for business and financial markets, including the mining sector;
(2) to promote the reduction of greenhouse gas emissions; and
(3) to support good governance programming;
Whereas in 2007, the Millennium Challenge Corporation signed an agreement with Mongolia to promote sustainable economic growth and to reduce poverty by focusing on property rights, vocational education, health, transportation, energy, and the environment;
Whereas Mongolia's plan to enhance its rail infrastructure promises to diversify its trading and investment partners, to open up new markets for its mineral exports, and to position Mongolia as a bridge between Asia and Europe;
Whereas the United States has assisted Mongolia's efforts--
(1) to address the effects of the global economic crisis;
(2) to promote sound economic, trade, and energy policy, with particular attention to the banking and mining sectors;
(3) to facilitate commercial law development; and
(4) to further activities with Mongolia's peacekeeping forces and military;
Whereas in January 2010--
(1) the United States Government and the Government of Mongolia agreed to promote greater academic exchange opportunities;
(2) the Mongolian Ministry of Education, Culture and Science pledged to financially support the U.S.-Mongolia Fulbright Program; and
(3) the United States Department of State announced its intention to increase its base allocation for the U.S.-Mongolia Fulbright Program in fiscal year 2010;
Whereas in 2011, Mongolia is celebrating the 100 year anniversary of its independence;
Whereas on June 16, 2011, President Elbegdorj, during a working visit to the United States, is scheduled to meet with President Barack Obama, Congressional leaders, academics, and representatives of the business community;
Whereas in late 2011, Vice President Joseph Biden is scheduled to travel to Mongolia to highlight our shared interests and values;
Now, therefore, be it
Resolved, That it is the sense of the Senate that--
(1) Mongolian President Tsakhiagiin Elbegdorj's historic visit to Washington, D.C. cements the growing friendship between the governments and peoples of the United States and Mongolia;
(2) the continued commitment of the Mongolian people and the Government of Mongolia to advancing democratic reforms, strengthening transparency and the rule of law, and protecting investment deserves acknowledgment and celebration;
(3) the United States Government should--
(A) continue to promote economic cooperation; and
(B) consider next steps in securing increased investment and trade to promote prosperity for both countries;
(4) the United States Government should continue to support the Government of Mongolia as it works with the International Monetary Fund, the World Bank, the Asian Development Bank, and the European Bank for Reconstruction and Development to improve its economic system and accelerate development; and
(5) the United States Government should continue to expand upon existing academic, cultural, and other people-to-people exchanges with Mongolia.
Mongolia, US join hands on democracy, energy
June 16 (AFP) WASHINGTON — Mongolia promised to give US companies a role in its booming energy sector as President Barack Obama reached out to the young democracy that is also being courted by neighboring China.
Mongolian President Tsakhia Elbegdorj on Thursday capped a trip to Washington with a White House meeting with Obama, the very day that the country's Prime Minister Sukhbaatar Batbold held talks in Beijing and received loan guarantees.
In a joint statement released by the White House, the United States and Mongolia "emphasized their two countries' common interest in protecting and promoting freedom, democracy and human rights worldwide."
The two nations also promised to expand economic ties. During Elbegdorj's trip, MIAT Mongolian Airlines said it would buy three aircraft from the Chicago-based Boeing Co. at a value of $245 million.
"Mongolia noted the important role that US companies," the statement said, "will play in the development of the country's coal, other mineral resource, infrastructure, agriculture, energy and tourism industries."
Mongolia is opening up its mining industry to foreign investors, hoping to stimulate growth and alleviate poverty. US-based Peabody Energy is among bidders to develop part of the Tavan Tolgoi mine, one of the world's largest coal fields.
Sandwiched between China and Russia, Mongolia has traditionally pursued a careful foreign policy that does not alienate its giant neighbors. But it has also sought closer ties with the United States and sent troops to both Iraq and Afghanistan.
"We regard the United of States America as our first 'third neighbor' and we would like to improve that relation," Elbegdorj said at the Brookings Institution think-tank shortly before his summit with Obama.
"We have a peaceful foreign policy," he said. "Some call it a tough neighborhood. But we exist next to each other for centuries and we know how to get along with the People's Republic of China and the Russian Federation."
Elbegdorj also visited Russia for talks with President Dmitry Medvedev and Prime Minister Vladimir Putin earlier this month.
Elbegdorj, 48, was a key leader of the peaceful 1990 revolution that ended 70 years of Soviet-backed communist rule in Mongolia. He was elected in 2009 on promises to end graft and reverse the rich-poor gap in the vast nation of fewer than three million people.
Mongolia next month takes the helm of the Community of Democracies, an international initiative. He voiced hope Mongolia would serve as a "regional beacon" but stopped short of commenting directly about the state of democracy in China.
In sometimes colorful language, Elbegdorj saluted protesters who toppled authoritarian regimes in the Middle East but warned them that democracy takes time.
"Today I see joyful demonstrations on the streets of the Middle East. I think they will go through very hard times for years -- maybe 20 years -- to achieve today's level of Mongolia," he said.
"The beauty of freedom is that there is always space to correct our mistakes," he said. "When there is criticism from the public, we are forced to change and to make better decisions."
"Democracy is not a one-day, one-week, one-year, 20-year issue. I think you have to care for that every morning, like changing the diapers of a baby," he said.
Related:
U.S., Mongolia pledge to build comprehensive partnership – Xinhua, June 17
U.S.-Mongolia Joint Statement – The White House, June 16
FAA and Mongolia sign commerce and aeronautics agreement
June 17, WASHINGTON, D.C. (BNO NEWS) -- The U.S. Federal Aviation Administration (FAA) on Thursday announced that it has agreed to a commerce and aeronautics cooperation with the Civil Aviation Authority of Mongolia.
A Memorandum of Agreement (MOA) was signed on Thursday between the FAA and Mongolia's Civil Aviation Authority, establishing their intention to develop civil aeronautics and air commerce safety through technical assistance and training.
The MOA is the first of its kind between the two countries and marks an opportunity to enhance safety and improve system capacity in Mongolia.
With the formal bilateral relationship, the FAA may provide technical and managerial expertise to assist Mongolia in developing, modernizing, operating and maintaining its civil aviation infrastructure, standards, procedures, policies, training and equipment, as well as provide training to personnel from Mongolia.
Mongolia airline buys 3 Boeing planes for $245 mln
June 16 (AP) WASHINGTON - The U.S. Commerce Department says Mongolia's national carrier is buying three Boeing jets for $245 million.
The purchase agreement was announced during a visit by Mongolia's President Tsakhia Elbegdorj.
Elbegdorj is meeting Thursday with President Barack Obama to discuss steps to expand diplomatic, economic and defenceco-operation.
The Commerce Department said Mongolian Airlines will acquire one 767-300ER and two 737-800 aircraft, and will get U.S. funding for training airline executives.
The two governments also signed trade and economic co-operation pacts.
Mongolia is an Asian country bordered by China and Russia. One-third of its 2.7 million people live in poverty.
U.S. exports to Mongolia rose 184 per cent in 2010, totalling $115 million.
China, Mongolia upgrade ties to strategic partnership
BEIJING, June 17 (Xinhua) -- China and Mongolia have decided to upgrade their bilateral ties from a good-neighbor partnership of mutual trust to a strategic partnership, according to a joint statement from the two nations.
"To further advance the good-neighbor friendship and mutually-beneficial cooperation between China and Mongolia, the two sides have decided to upgrade to a strategic partnership," according to a joint statement signed on Thursday and released on Friday.
The statement was signed by Chinese Premier Wen Jiabao and his Mongolian counterpart Sukhbaatar Batbold. At the invitation of Wen, Batbold is making his first official visit to China since taking office in 2009 from Wednesday to Friday.
In 2003, President Hu Jintao paid a visit to Mongolia and both sides decided to establish the good-neighbor partnership of mutual trust.
The two sides are satisfied with the development of the bilateral ties over the past years, the statement said.
"As China and Mongolia are friendly neighbors sharing a long border, to consolidate and deepen continuously the friendly relations conforms with the common interests of the two states and their people, as well as helps to promote peace, stability and development in the region," it said.
In the statement, China and Mongolia pledged to increase their political communication and boost mutual trust between the two countries in order to build a more solid political foundation for the strategic partnership.
"The two sides believe that high-level interaction is of special significance for the development of bilateral ties," the statement said, adding that the two countries will keep the momentum of exchanges between their leaders to "boost strategic communication" as well as step up cooperation between their parliaments, governments and political parties.
The two neighbors also vowed to work together to fight against terrorism, drug trafficking and other cross-border organized crime, as well as cooperation on dealing with natural disasters and infectious diseases.
The statement says China and Mongolia will expand their economic cooperation with a view to common prosperity, which will provide a long-lasting driving force for the development of the strategic partnership.
The two sides reiterated that priority will be given to natural resources and infrastructure in their economic cooperation.
China and Mongolia are also committed to people-to-people exchanges between the two countries, which act as essential grassroots support for the bilateral strategic partnership, according to the statement.
In the statement, the two countries also pledged to coordinate their stances and support each other in regional and international affairs to safeguard their common interests as well as enrich the strategic partnership.
"The two sides hold that they improve mutual trust and coordination in international and regional affairs, resolve disputes through dialogue and consultation, and make joint efforts to forge a more just, democratic and rational international political and economic order," the statement said.
Related: Mongolian pact called 'milestone' – China Daily, June 17
Mongolia Expels Hundreds of Chinese Truck Drivers
Jun. 17 (2point6billion.com) – 2point6billion.com has unconfirmed reports from Mongolia’s South Gobi region, home to much of the nation’s mining industry, that hundreds of Chinese truck drivers have been turned back to the China border.
There has been no official commentary on the issue, however we understand that it is linked to three main aspects concerning cross border transport and China-Mongolia relations. At the heart of the matter is the current status of both nations concerning their recognition of cross border transport protocols as determined by the international organization Transports Internationaux Routiers (TIR).
In brief, Transports Internationaux Routiers (International Road Transport) is an international customs transit system and is the only universal transit system that allows goods to transit from a country of origin to a country of destination in sealed load compartments with customs control recognition along the supply chain. This minimizes administrative and financial burdens and customs duties, and taxes that may become due are covered by an international guarantee.
The crux of the matter relates to the key fact that Mongolia is a member and China is not. One aspect of the treaty relates to haulage operators and the drivers of such trucks. Mongolia permits the access to Mongolia’s road system by licensed foreign drivers, while China does not. To date, goods vehicles from China have been using Mongolian facilities with local Chinese drivers, while Mongolian vehicles and drivers are denied direct access to China past a certain point.
The situation has also flared up we have learned due to the perception that allowing Chinese drivers to transport haulage across Mongolia is damaging to Mongolia’s unemployment issues, and is affecting the ability for Mongolian drivers to find work. That is fast becoming a political issue as Mongolia has national elections next year.
Also impacting on the issue is the “general attitude” of Chinese drivers in Mongolia, many of whom apparently seem to regard the nation as a vassal state to China and have been known to treat the Mongolians poorly. This is a side effect of the Chinese education system which has often claimed Mongolia as Chinese territory. Additionally, the incident in China’s Inner Mongolia Autonomous Region last month, in which a Chinese truck driver ran over a killed a Mongolian herder, has again impacted on the way in which Chinese drivers are seen to behave towards ethnic Mongolians.
While there is no doubt that the current status, if correct, of Chinese truck drivers being expelled from Mongolia is undeniably politically motivated, it does call into question the failure of China to join organizations such as the TIR that seek to better manage and monitor cross-border trade. China’s refusal to cooperate with such entities may now start to come under pressure from other nations that in the past have turned a blind eye to Chinese drivers operating overseas. The spirit of reciprocity has yet to extend to permitting foreign drivers to operate in Chinese territory, and that stance may now come under pressure.
Prosecutor General explains action on Paushok
June 16 (news.mn) Prosecutor General D.Dorligjav yesterday sent a note to Speaker D.Demberel explaining why he had decided against pursuing charges of tax evasion against Altan Dornod Mongol Director S.V.Paushok.
It says that the Ulaanbaatar Prosecutors Office decided on May 17, 2010 to withdraw from investigating the charges against Paushok as the Criminal Law would not have been of help in prosecuting him.
Draft law on election goes for final reading
June 17 (news.mn) Parliament yesterday discussed the draft law on election before sending it back to the Standing Committee on State Structure for a final reading.
Speaker D.Demberel noted that this was one of the most significant drafts discussed in the present session, and hoped the few unresolved issues would be decided at final reading in the committee.
Law on right to information passed after five-year wait
June 17 (news.mn) Parliament yesterday passed, after discussion spread over five long years, the draft law on transparency and right to information that had been submitted in 2007. The head of the working group that worked on the draft, Su.Batbold, and DP leader E.Bat-Uul later spoke to the media about the significance of the event.
They said the passage of the law means Government organizations and also those run with money from the state budget would now be legally obligated to open their activity to citizens and legal bodies who will also have the right to seek information. The law covers the work of such organizations; the human resources policy; the budget, financial accounts, and purchase of goods and services with money from Government and provincial budgets; and selection of tenders. The state organizations covered would also have to post details of their work on their Websites.
E.Bat-Uul said that the law has come at the right time as the Government is spending a lot more money than before and people must know that this is being done in a proper way.
The law provides for a fine equal to five times the minimum wages for any official who prevents a subordinate to reveal information under the law. A repeat offense would lead to dismissal.
Some provisions of the law will come into effect only from December 1, 2011.
Japan to give MNT75 billion to support SMEs
June 17 (news.mn) The SME Office is planning to use in two phases MNT75 billion in Japanese aid to develop SMEs. Of the total amount, MNT3 billion will be spent on employees’ training and putting in place the right procedural framework. MNT10 billion will be lent to organizations working for nature and environmental protection, each getting between MNT600 million and MNT1 billion.
The remaining amount will be spent on expanding local organizations’ activity and on loans to organizations making products to replace imports.
MPRP destiny is in the hands of Supreme Court
June 16 (news.mn) The Constitutional Court has ruled that Article #15 of the Law on Political Parties does not violate the Constitution. It says that in the event a party changes its name, members who do not agree to the change will not have the right to use the previous name. This is a blow to the claim of the political grouping under ex-President N.Enkhbayar that it should be known as MPRP, after a majority in the old party decided on MPP as its new name.
However, the Constitutional Court made no remarks about the merits of that claim, leaving it to the Supreme Court, where the new group has applied for registration as MPRP, to decide on it.
The court meeting on Wednesday deliberated on the issue for three hours and a half.
Our reporter asked “MPRP” leaders for their reaction to the court decision. Ts. Shinebayar said their claim before the Supreme Court had several other aspects and hence the Constitutional Court conclusion did not mean that their case is lost.
N.Udval said the Court “decision was taken under orders from elsewhere”. She found it significant that MPP representatives were present at the court proceedings but there was nobody from the Democratic Party, which means Parliament was not adequately represented. “We are ready for a struggle before grabbing state power under our party’s name,” she said.
MPs favor idea of database of bank borrowers
June 16 (news.mn) The Standing Committee on the Economy yesterday discussed a draft law on creating a loan database and decided to submit it to Parliament for further discussion. The draft seeks inclusion of all individuals and organizations who have borrowed from banks in a database so that banks can check the background of any loan applicant.
A working group to review the draft amended some original provisions. One of them calls for loan details to be deleted after six years to protect borrowers’ interests. After deletion, such details will be in the archives of the Central Bank, which would also hold the active database.
Mongolia’s Mining Two-Step With U.S., China
June 17 (WSJ) On opposite sides of the world this week, Mongolian leaders were illustrating the diplomatic balancing act their country faces as it divvies up a trove of mineral wealth – and the contracts to get it out of the ground.
Mongolia’s president, Elbegdorj Tsakhia, was in Washington on Thursday pumping the flesh with Barack Obama after a multi-stop visit to the U.S. Hours earlier the prime minister, Sukhbaatar Batbold, was completing a swing through Asia with a call on China’s premier, Wen Jiabao.
For decades, Mongolia’s vast expanse has served as a buffer – sometimes contested – between Russia and China. In bargaining, Mongolian leaders had little to offer than fine cashmere.
Mongolia’s land today is no less strategically valuable, including for the U.S., which seeks a foothold in the fast-developing region. But these days, Ulan Bator’s diplomatic pouch is bursting with commodities that boast a bit more geopolitical heft than goat hair: copper, coal and rare earth minerals.
Known for its nomadic herders, Mongolia now has money to buy Boeing airliners, as it did this week. But it isn’t rich enough to turn down $500 million in aid from Beijing.
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“This is very delicate work,” Jargalsaikhan D, an Ulan Bator banker and noted commentator, said by telephone Friday.
He said he thinks the timing of the diplomatic visits to Beijing and Washington is mostly coincidence, adding that he’s more immediately worried about the price of fuel imported from Russia than the U.S.-China diplomatic dance.
Nevertheless, Mongolia’s challenge is huge: “Dealing with China and Russia is hard work, and we are dealing with them at the same time,” he said. Mr. Jargalsaikhan said democratic ideals make Mongolia more flexible than in the past, and better suited to satisfy its own interests through diplomacy. “We are not under one ideology,” he said.
Neither official statement released in Beijing nor Washington referred very directly to the upcoming contractual decisions about mineral development.
Nor was mining ignored.
“Mongolia noted the important role that U.S. companies, with their internationally leading management, technical, safety, environmental, and sustainable mining practices, will play in the development of the country’s coal, other mineral resource, infrastructure, agriculture, energy and tourism industries,” the joint U.S.-Mongolian statement said.
The Xinhua news agency summarized the Chinese meetings by noting that the two sides “reiterated that priority will be given to natural resources and infrastructure in their economic cooperation.”
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Mongolia’s head appears to be with China, since its populous next-door neighbor is the natural market for its resources and the primary reason expectations are growing about the country’s impending windfall. But Mongolia’s heart may be closer to the U.S., the nation that inspired its democratic system, which President Elbegdorj refers to as the freest “in this part of the world.”
The shuttle diplomacy by Mongolian officials, meanwhile, is a reminder of how rarely Ulan Bataar has had a chance to host presidents of the country’s suitors. George W. Bush became the first and only U.S. president to visit Mongolia when he traveled to the capital in 2005, Chinese President Hu Jintao made his only stop in 2003, an overnight trip during his first overseas travel as president.
Software aids Mongolia’s bid to ensure reliable water supply
June 17 (Creamer Media) Clean water is a rare commodity in many countries of the world, and governments often face problems ensuring its reliable supply. In Mongolia, an interdisciplinary research team is demonstrating how this vital resource can be efficiently managed and used. Specially developed software helps to detect weak points in the supply system.
Mongolia is a country of contrasts – in sum- mer, it becomes boiling hot, and in winter freez- ing cold; the north is damp, while the south is bone dry. One-million of its three-million citizens live tightly packed together in the capital, Ulaanbaatar, while the rest of the huge country is largely populated by nomads and their cattle.
Providing a clean supply of drinking water across the entire country is a difficult challenge. For starters, it is necessary to lay freezeproof water pipes over an area of 1.5-million square kilometres. The people in the countryside, therefore, use water from rivers or from wells they dig themselves. But these traditional ways of obtaining water are reaching the limits of their capacity. In recent decades, periods of rain during the summer months, which replenish the reserves of groundwater, have become infrequent. They have been replaced by heavy storms unleashing torrents of rain that runs off rapidly without soaking into the ground. At the same time, demand for water has risen with the rapid growth in the country’s population.
“Providing a supply of drinking water is becoming more and more difficult. To create a reliable supply in the long term, you have to take many different factors into account and find out how they influence each other,” explains Dr Buren Scharaw, of the Fraunhofer Application Centre for System Technology, in Ilmenau.
Born in Mongolia, he has been working for many years on a project known as Integrated Water Resources Management for Central Asia: Model Region Mongolia, known also as MOMO. Project partners include the universities of Heidelberg and Kassel, Bauhaus University Weimar, the Helmholz Centre for Environmental Research, the Leibniz Insitutute for Freshwater Ecology and Inland Fisheries and various private-sector enterprises.
The model region under study by the research scientists is the catchment area for the Kharaa river and Darkhan, a city of 100 000 inhabi- tants.
Since the start of the project in 2006, Scharaw has travelled back to his homeland several times. He has examined the quality of the water from public and private wells, along with the distribution network, measured the energy consumption of pumps, and investigated the effectiveness of the sewerage system. All the data he has collected has been fed into the computer models developed at Franhofer Application Centre for System Technology.
“Our HydroDyn water management solution makes it possible for the first time to visualise the quality and the quantity of water resources and to model their future development,” Scharaw explains. However, there is plenty of scope for improvement: the water pumps consume lots of energy, the water pipes are in need of repair and nearly half the drinking water is lost on its way to the consumer through leaks. Many yurts have their own wells, but the water is often contaminated with bacteria from latrines.
“Having collected data and produced models, we are now preparing proposals that make sense in economical and ecological terms,” says Scharaw.
His team has developed a software program which can determine how the water supply can be sustainably secured using less energy. A measuring system for locating leaks has also been developed. Small sensors detect any drop in pressure in the pipes, making it possible for leaks to be localised with relatively high precision. Once a leak has been found, that section of the pipe can be repaired. To reduce contamination of the water supply and to increase the efficiency of the sewerage system, the scientists are now building a test sewage plant which contains microorganisms in high concentration.
“We expect this test facility to also deliver good results during the cold season, when the microorganisms are less active. The findings can then be transferred to a future full-scale plant.” In three years, when the project has been completed, the experts intend to present the administration in Darkhan with a catalogue of measures which will show how the water supply and sewerage system can be efficiently and cost-effectively secured.
U.S. Department of State Public Diplomacy Programs for Mongolia
June 17 (U.S. State Department) The U.S. Department of State is committed to supporting a wide variety of people-to-people exchanges and programs that enhance mutual understanding between the United States and Mongolia. Through partnerships between the U.S. Department of State’s Bureau of Educational and Cultural Affairs, the United States and Mongolia have strengthened their diplomatic relationship through educational, cultural, citizen, alumni, and cultural preservation exchanges.
Noteworthy ECA programs in Mongolia include EducationUSA, which provides students comprehensive, unbiased information on educational opportunities in the United States. The centers also provide the public with free access to educational information and Mongolia-relevant scholarship programs. According to the annual Open Doors Report, there were 1,258 Mongolian students in the United States in 2009-2010 (1,522 in 2008-2009); 72 U.S. students studied in Mongolia in 2008-2009 (85 in 2007-2008).
The Fulbright Program in Mongolia began in 1993, and is supporting the exchange of 20 U.S. and Mongolian students and scholars this year. In January 2010, the Minister of Education, Culture & Science Otgonbayar Yondon and Under Secretary of State Judith A. McHale signed a Joint Statement announcing a new financial commitment by the Government of Mongolia to the Fulbright program, as well as increased funding from the United States. In December 2010, the Mongolia made its first contribution, which will support Mongolian graduate students beginning their U.S. degree programs in the fall of 2011.
Partnering with USA Wrestling, the Bureau of Educational and Cultural Affairs’ SportsUnited Office will host 25 members of the men’s and women’s Mongolian freestyle wrestling team November 6 – 20, 2011. The two-week program includes 10 days of training with American male and female wrestlers at the Olympic Training facility in Colorado Springs, Colorado. The program will conclude with the Mongolian and U.S. wrestlers traveling to New York City to compete in the New York Athletic tournament on Nov 19 – 20, 2011.
The Kate McGarry Quartet, a jazz ensemble, will travel to Mongolia as part of the Bureau’s Rhythm Road initiative in December 2011 to conduct performances, workshops, master classes, jam sessions, and media outreach with youth and local artists.
9 disaster survivors invited to run in marathon in Mongolia
June 17, TOKYO (Kyodo) -- Nine residents of three Japanese prefectures hardest hit by the March earthquake and tsunami will be invited to take part in an international marathon in Mongolia on July 24, the organizing group said Wednesday.
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<Mogi & Friends Fund A/C>
Total +10%, Qtd -37.4%
Mogi & Friends Fund is a tiny fund of A$23K I created in late September with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.
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Mogi
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"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
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CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
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