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Tuesday, October 29, 2013
BDSec: Odds on Resolution of Phase 2 at Oyu Tolgoi are going up
By Nick Cousyn, COO
October 28 (BDSec) In our last note, dated September 10th, we were skeptical about the possibility of near term resolution between OT and the GOM. This opinion was based primarily on the belief that the powers to resolve Phase 2 financing by the OT Board of Directors were limited and that Parliament would likely have to give its approval before moving forward. This no longer seems to be the case. The new OT Board members, led by Erdenes Oyu Tolgoi (EOT) CEO Da. Ganbold, appear to have had a profound effect on negotiations, resolving half the outstanding issues in the first formal meeting. It is our belief considerable progress has been made since then, with another round of talks scheduled for this week. There is clearly a sense of urgency which was not present in prior talks, which we find most encouraging.
A Better Understanding of Phase 2 Financing
Given that Phase 2 financing of $4B USD is about 40% of Mongolian GDP, public sentiment on the subject was both hesitant and cautious. Some politicians took advantage of this sentiment, attaching huge (and unrealistic) price tags to the total cost of the project and stated, incorrectly, that going forward would severely indebt Mongolia and dilute its interest in the mine. While the full details associated with the $4B loan facility have not been made public, we're fairly certain that the collateral for the financing specifically excludes Mongolia's ownership in OT and would only encumber the interests of Turquoise Hill (TRQ) and Rio Tinto (RIO) in the project. If Mongolian assets are not pledged as collateral and its citizens are not obliged in any way to pay the debt, this becomes a business decision which will likely be made by the Board of OT, not Parliament.
T-Minus Six Weeks
With the December 12th deadline for Phase 2 financing looming, we are quite encouraged with the pace and tone of negotiations since Da. Ganbold took over as CEO of EOT. Democratic Party Cabinet members, led by Prime Minister Altankhuyag, have also been quite supportive of Da. Ganbold's efforts and have publicly voiced their support for the project. We think this support is part of a broader recognition that as goes OT, so goes the Mongolian economy, given that foreign direct investment (FDI) is down nearly 50% in 2013.
Should Phase 2 financing be approved by December 12th, the upside in shares of TRQ from current levels could be staggering. With shares touching $4 last week for the 1st time since July 31st, we think the market has been pricing in a strong likelihood of a highly dilutive rights offering, which may ultimately not come to pass. With customs issues now resolved with China, TRQ shareholders can now look forward to a profitable year in 2013, with revenues expected to be in the range of $1.7B USD and estimated earnings of $220M USD. With a market cap of ~$4.9B USD, TRQ is trading at a 25% discount to invested capital in the OT project of $6.5B USD, implying negative value creation. Should TRQ's share count stay constant, which seems increasingly likely, TRQ's stock price would have to trade at $6.11/share just to be on par with the capital invested in the project, let alone any premium to the investment made in OT so far.
The mood from the ground in Mongolia is quite positive; in fact, it's the best we've seen in months. The appointment of the new OT Board members, led by Da. Ganbold, was clearly the catalyst for the positive changes we're now seeing. Assuming the same sense of urgency is shared by negotiators from RIO, we think investors should begin to discount a more positive outcome and position themselves accordingly. While it will take some time to restart Phase 2 operations at OT, resolving the longstanding dispute would have a profound impact on investor sentiment towards Mongolia.
Mogi: The shortfall is fully underwritten by lead manager CPS Capital Group, which puts the bill for CPS at slightly over A$2 million out of total A$2.618 million raised
Wolf Petroleum: COMPLETION OF ALLOTMENT OF SHORTFALL OPTIONS
October 28 -- Further to Wolf Petroleum Limited's (Company) ASX announcement dated 27 September 2013, the Company advises that it has now completed the allotment and issue of 133,738,632 shortfall options pursuant to the non-renounceable entitlements issue to shareholders offered under a Prospectus dated 28 August 2013.
As per the Appendix 3B lodged with the ASX on 28 August 2013, the issued capital of the Company following the allotment is as follows.
Ordinary fully paid shares
Options expiring 31 December 2015 exercisable at $0.20
Options expiring 31 July 2018 exercisable at $0.05
Options expiring 31 December 2016 exercisable at $0.25
Options expiring 28 November 2015 exercisable at $0.33
Cash at end of quarter A$1.06 million
Wolf Petroleum: Quarterly Activities Report
Wolf Petroleum has successfully completed its 2013 exploration programme with highly encouraging results.
October 29, Wolf Petroleum Limited (ASX:WOF) --
· Completion of 450km of 2D seismic programme on the Sukhbaatar block.
· Identified light crude oil seeps in the Toson Tolgoi basin on the Sukhbaatar block.
· Completion of a non-renounceable entitlements issue raising $2.6M.
Cash at hand A$6.157 million
Aspire Mining: Quarterly Report
October 28, Aspire Mining Limited (ASX:AKM) --
Highlights for the Quarter
· Upgrade in Ovoot Project Coking Coal Resources and Reserves to maintain its position as one of the largest coking coal projects in Mongolia
o Probable ROM Coal Reserve tonnes increase to 255 Mt ROM at a total moisture of 2%;
o Probable Marketable Coal Reserves increase to 188 Mt over life of mine at a product moisture of 9.5%;
o Measured and Indicated Coal Resources make up 96% of total Coal Resources.
· Viable Development Plan adopted for low capex start up at Ovoot Coking Coal Project
o US$144 million capex to support 5 Mtpa production with potential funding sources identified;
o Requires the completion of the Erdenet – Ovoot Railway.
· Russian port capacity identified enabling Ovoot Project coking coal to access Eastern European coking coal markets including the high growth market of Turkey
o Non-binding MOU's signed totalling up to 2 Mtpa capacity at each the Taman and Nakhodka seaports;
o Accessibility to wider coking coal markets including Eastern Europe, Turkey, and North Africa now possible for Ovoot Project coking coal.
· Further Coke blend tests with Russian coals identified a significant upgrading of blended coal quality and value
· On the ground rail field study investigation report completed by SMEC confirms viability of the Northern Rail Line from both an engineering and operational aspect
o Capital cost savings from southern alignment confirmed;
o Potential areas highlighted to realise further possible capital cost savings.
· Mongolian Parliament approves beneficial changes to the foreign investment laws
Modun Resources: Notice of Annual General Meeting, 28 November
October 28, Modun Resources Limited (ASX:MOU) --
Guildford Coal: Annual Report 2013
October 29, Guildford Coal Limited (ASX:GUF) --
NatSec MSE Trading News, 28 October: Top 20 +0.07%, Turnover ₮32.2 Million
October 28 (National Securities) MSE TOP-20 Index ended 0.07% higher on today. A total of 29,786 shares in 21 companies, valued at 32.2 million MNT. 8 shares went up, 6 shares went down and 7 shares were un-changed.
Tushig Uul (TUS) and Monnoos (MNS) are the biggest gainers, increasing 14.97% and 14.70% respectively. The top loser was Darkhan Nekhii (NEH), which produces wool coats, dipped -13.91% to 9,470 MNT. It's factory is located in Darkhan province and it's market capitalization is 10.47 billion MNT. The volume leader was HB Oil (HBO), which is oil refinery plant. It's 703,000 shares were traded with worth of 8.5 million MNT. This single stock represented 25% of whole of today' trading value. It's price was closed at 365 MNT, dropping -1.08%.
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BDSec: DARKHAN NEKHII (NEH) CAME DOWN 14% AFTER 60% RISE
October 28 (BDSec) Mongolian stocks edged up 0.07% on Monday to 14,186.44 points. Trading value was light at MNT 32.3 million. Gobi (GOV), the largest cashmere product manufacturer in Mongolia, added 3.65% to MNT 5,390, its highest close since April 2011. Darkhan Nekhii (NEH), which soared 60% over the last month, came down 13.91% to sit at MNT 9,470. In April 2013, Darkhan Nekhii signed MoA with ZARA brand to cooperate and enhance the shoes, leather products.
MSE Top 20 index, 1 month
Trading Value Leaders
Telecom Mongolia (MCH)
Darkhan Nekhii (NEH)
Mongolian Stock Exchange Weekly Review: Top 20 +1.66%, Turnover ₮48.17 Billion
Ulaanbaatar, October 28 /MONTSAME/ Five stock trades were held at Mongolia's Stock Exchange on October 21-25, 2013.
In overall, 15 million 970 thousand and 155 shares were sold of 59 joint-stock companies totaling MNT 48 billion 170 million 408 thousand and 263.18.
"APU" /14 million 717 thousand and 094 units/, "Hermes center" /703 thousand and 010 units/, "E-trans logistics" /291 thousand and 449 units/, "Tavantolgoi" /100 thousand and 773 units/ and "Hai Bi Oil" /75 thousand and 458 units/ were the most actively traded in terms of trading volume, in terms of trading value--"APU" (MNT 47 billion 540 million 350 thousand and 868), "Tavantolgoi" (MNT 337 million 441 thousand and 259), "Hermes center" /MNT 105 million 451 thousand and 510/, "Suu" /MNT 40 million and 400 thousand/ and "E-trans logistics" (MNT 34 million 682 thousand and 382).
APIP MSE Weekly Report: Hasu-Mandal (HSR) surges 30%
October 28 (APIP) Logistics firm Bayankhairkhan (BHR), textile producer Mongol Nekhmel (MNH) and electricity firm Mongoliin Tsakhilgaan (MCH) experienced the biggest share price losses on the MSE this week. On the other side of the market, trade firm Buteelch Uils (BLC), construction materials firm UB-BUK (BUK) and trader Hasu-Mandal (HSR) experienced the biggest price gains.
MSE: PUBLIC HOLIDAY ANNOUNCED FOR 'GREAT EMPEROR CHINGGIS KHAN DAY,' 4 NOVEMBER
October 28 (MSE) During the plenary session meeting of the Parliament of Mongolia held on the 8th of November 2012, 'Great Emperor Chinggis Khan's Day' was announced as public holiday to be celebrated annually on the first day of winter season by Mongolian lunar calendar, which occurs on the 4th of November this year, thus Mongolian stock exchange will close on the 4th of November 2012.
BoM Exchange Rates: October 28 Close
Total outstanding 1-week bills ₮1.58 trillion
BoM issues ₮368 billion 1-week bills
October 28 (Bank of Mongolia) BoM issues 1 week bills worth MNT 368 billion at a weighted interest rate of 10.5 percent per annum /For previous auctions click here/
BoM issues ₮100 billion 4-week bills
October 28 (Bank of Mongolia) BoM issues 4 week bills worth MNT 100 billion at a weighted interest rate of 10.62 percent per annum. /For previous auctions click here/
Mongolia: Inflation remains elevated
October 21 (The Economist Intelligence Unit) --
The consumer price index (CPI) rose by 8.4% year on year in September, according to a report published by Mongolia's central bank, with the rate of increase unchanged from August. In month-on-month terms, the inflation rate cooled to 1.2%, from 2.6% in August.
After inflation moderated to 7% year on year in July, Mongolia's consumer prices have risen more sharply in the past two months. Food prices, which comprise roughly one-third of the CPI basket, rose by 11.5% year on year in September. Although prices for food continue to grow steeply, the current rate of increase is nonetheless considerably softer than the 56.7% year-on-year rise posted in September 2012. Core CPI, which does not include food and other goods with volatile prices, rose by 8.1% from its year-earlier level, a slower pace of increase than the 9.6% rise in August.
The recent uptick in the cost of consumer goods is mostly driven by a plunge in foreign investment—which was down by 47% year on year in the first eight months of 2013—which has weakened the value of the local currency, the togrog. By end-September the togrog was down by 15.4% against the US dollar from its level at the start of 2013, according to data published by the Bank of Mongolia (the central bank). In a country where most finished goods are imported, the effect of weaker currency is quickly felt by consumers. Mongolia's near-term solution to the problem is to offer as much as US$1bn worth of yen-denominated bonds later in the year, which will ease the crunch on foreign currency.
On the upside, a weaker togrog will give a boost to Mongolia's exporting industries and thus increase employment and wages, although this will only further fuel inflation. It is unlikely, however, that Mongolia's consumer price growth will soon reach the excessive levels of previous years (inflation hit 15% year on year in 2012), in part because more prudent government spending will keep inflation at more manageable levels. A new law came into effect early in 2013 that aims to cap the country's structural deficit at 2% and, in addition, the government has cut back on social welfare payments.
MIBG Foreign Trade Update, October
October 28 (MIBG) The National Statistics Office of Mongolia has released updated foreign trade activity as of the 15th of October. In review of the provided data we can see that during the month of September overall foreign trade was higher than that of last year by 1.7%. Considering ytd performance, 2013 has come in below 2012 by 6.46%. This is encouraging compared to the ytd spreads that we monitored... continue reading
APIP: Mongolia's SMI indicates that growth may be slowing
October 28 (Mongolia Monday Memo) The tugrik (MNT), Mongolia's national currency, held its ground this week after depreciating rapidly throughout the first half of the month. Despite the efforts of local authorities, the currency's decline has lead to an increase in local prices of some imported staple goods.
The October Mongolia Sales Manager Index, compiled by World Economics, indicates that Mongolia's pace of economic growth may be slowing. For the first time since the index's conception, confidence regarding future sales and performance declined among the sales managers polled. Market growth and sales indicators continued to expand but at a slower rate than previous months. In the meantime, prices have risen rapidly in response to the currency's depreciation, as producers and retailers pass rising import costs on to the consumer.
Fitch Ratings issued a note this week suggesting that the Mongolian government's easy credit policies, particularly in the housing sector are placing pressure on the local banking system. The low, subsidized interest rates promoted by the government to mortgage lenders and other strategic sectors of the economy, though popular, may not be sufficient to cover risks.
On a positive note for the Mongolian mineral industry, Chinese coal imports recovered substantially in September, with Mongolia and Australia supplying the vast majority of product. Positive Mongolian NSO figures for the same month indicate that the Mongolian coal industry may be recovering.
APIP: Mongolia's fiscal deficit at above 5% of GDP
October 28 (Mongolia Monday Memo) In testimony given before the parliamentary standing committee on economics, representatives from the Ministry of Finance affirmed that Mongolia's on budget fiscal deficit is already over 5% of GDP, in violation of the nation's recently adopted fiscal stability law, which stipulates that annual deficits not exceed 3% of GDP (Mogi: it actually shouldn't exceed 2%). The deficit is due primarily to an unforeseen shortfall in export royalty income as a result of falling mineral sales. Testimony was given during a meeting called to discuss the need for a budget amendment, an adjustment that now appears inevitable. The 5% deficit figure is not inclusive of additional off budget spending financed by the Chingis Bond.
In a sequel to the Savings Bank failure fiasco from a few months back, South Africa's Standard Bank indicated that it will invoice the government of Mongolia for a failed loan secured by Just Group LLC, the parent company of Savings Bank. Just Group's senior management reportedly acquired signatures guaranteeing the $140 million USD loan from several high officials in local state owned enterprises. The Mongolian government is currently investigating how said signatures were obtained and whether there was any foul play involved. (Mogi: the reported guarantees from Erdenet and UB Railways looks to have been issued based on the fact that Just Group was a petroleum supplier to them and thus had them guarantee the loan, with which Just Oil bought the petroleum from Russia.)
Mongolia's main opposition party, the Mongolian People's Party (MPP), is currently holding a conference to elect a new Chairman and General Secretary. The results will likely be made public later this evening.
President Elbegdorj announced that he will visit North Korea next week to meet with Kim Jong Un. Elbegdorj will be the first head of state in the world to hold talks with Kim since he took up the post of first secretary last year
PM's statement on Chinggis Bond spending, national debt and payment, to be delivered on November 1 to the parliament
МОНГОЛ УЛСЫН ЕРӨНХИЙ САЙДЫН МЭДЭЭЛЭЛ: ЧИНГИС БОНДЫН ЗАРЦУУЛАЛТ, МОНГОЛ УЛСЫН ӨР, ТӨЛБӨРИЙН ТАЛААР
10-р сарын 28 (parliament.mn) --
MPP to name new leader and Secretary General
October 28 /www.news.mn/ The oldest political party of Mongolia, the Mongolian People's Party, formerly the Mongolian People's Revolutionary Party, held its Party Assembly on the second day in a closed door on Monday October 28th.
At 8:00 pm today, the new party leader and secretary general, who will head the party for the next four years, will be named in an election.
According to the schedule the Party Assembly will continue till midnight tonight. Deputy speaker M.Enkhbold, the head of the MPP caucus N.Enkhbold and MPP member T.Ayursaikhan have announced their intent to run in the election to be the next leader of the party.
There is also speculation that candidates for the party leadership will include former Secretary General of MPP and former Prime Minister of Mongolia S.Bayar as well as MP B.Bat-Erdene, who lost to incumbent Ts.Elbegdorj in the Presidential Election.
During the Party Assembly it was announced that the Committee for Reform movement in MPP has official been closed. MPs N.Nomtoibayar, O.Sodbileg and Secretary General of the party J.Munkhbat created the Committee for Reform movement in order to ensure the calling of the Party Assembly. As the Party Assembly is being held, the Committee members believe the movement is no longer necessary.
PM Gives Interview to International News Agencies
Ulaanbaatar, October 28 /MONTSAME/ The Prime Minister of Mongolia N.Altanhuyag gave interviews to the international news agencies during his official visit to China which ran October 22-26.
Questions by Bloomberg, Wall Street, and Chinese CCTV to Mr N.Altanhuyag mainly focused on China-Mongolia relations, cooperation and outcomes of his visit.
Interviewers also asked the PM about ongoing operations in major mining deposits of Mongolia and his government's policies and position on the foreign investments to the mining sector. The key subjects on the matter were the negotiation between Oyutolgoi investors and the government's efforts to make the mining cooperation more efficient.
The Mongolian government is guided by transparent and open principles when negotiating with the foreign investors on the worldwide well known mining deposits, the Premier said. He also underlined that on the exploration matter in the Oyutolgoi mining, there is no delay caused by his government.
Mongolia to Join Maritime Labour Convention
October 28 /www.infomongolia.com/ At the regular Cabinet meeting held on October 26, 2013, it was discussed Mongolia to join the Maritime Labour Convention (MLC), which is a part of the International Labour Organization convention established in 2006, and agreed to submit for Parliament discussion.
Mongolia is one the 48 landlocked countries in the world, a maritime flag state, currently rents its National Flag to 350 registered ships and sail them on the sea allowing to partake in international transportation. In 2003-2012, a total of 2,156 ships of about 30 states were registered under Mongolian Flag, and during the period 2.8 billion MNT was budgeted from the ship registry.
By joining the Maritime Labour Convention, Mongolia as a flag state enables to be responsible for ensuring implementation of the rules on the ships that fly Mongolia's flag.
Moreover, the issue of joining the International Convention on Salvage (London 1989) was also discussed and agreed to submit for Parliament discussion.
ETT, MMC, TT jointly sign 20-year 1Bt coal supply deal with Chenhua
October 28 /www.news.mn/ During the official visit of Prime Minister N.Altankhuyag to China, officials of Mongolia and China signed three memorandums of understanding (MoU), based on official negotiation and the program for the medium and long-term development of China-Mongolia strategic relations in the mining and oil sector.
The Ministry of Mining for Mongolia, "SINOPEC" China Petroleum & Chemical Corporation signed an MoU to build a gas industry based on the rich Mongolian thermal coal resource, to provide domestic needs with its production and to further supply it to the Chinese market.
The gas industry is already planned to have the capacity of outputs of 15 billion cubic meters of gas at first. This amount of gas production would need almost 50 million tons of thermal coal a year. The thermal coal worth one billion US dollars at the current market price is expected to be used for the production of 15 billion cubic meters of gas in one year.
Such an industry and the related entities will provide over 20,000 people with employment.
The Ministry of Mining's Petroleum Authority and Chinese PetroChina International Corporation Limited signed an MoU to increase the crude oil supply to China extracted in Mongolia due to its constant increasing demand. Mongolia and China have deals to buy up to 10 thousand tons of petroleum from China every month in order to provide domestic needs.
Erdenes Tavantolgoi LLC, a subsidiary of state owned Erdenes MGL, Energy Resource LLC, Tavan Tolgoi company representing Mongolian companies signed an MoU with Chinese Xinhua Energy on a billion ton coal supply cooperation in 20 years from Mongolia to China due to coal extraction and production capacities.
The parties agreed to study the possibilities to sell Mongolian coal to the international market.
Mongolia pushing for rail, pipeline links with China, Russia, official says
By David Stanway
Oct 28 (Reuters) - Mongolia has agreed to establish a working group with China to oversee the construction of new road, rail and pipeline infrastructure connecting the two countries with Russia, a member of a Mongolian government delegation to Beijing said.
The official, speaking to Reuters on condition of anonymity, said landlocked Mongolia aimed to become a "transit corridor" to facilitate trade between its two giant neighbours and reduce the costs of delivering Russian commodities like oil and natural gas to energy-hungry Chinese markets.
The topic was high on the agenda during talks between Mongolian Prime Minister Norov Altanhayag and his Chinese counterpart, Li Keqiang, last week, according to the official, who is a senior adviser to Mongolia's economics ministry.
Speaking by phone from the Mongolian capital, Ulan Bator, he said the working group would probably be set up soon and that Mongolia was open to allowing Chinese firms to invest and build the infrastructure.
"Given the capacity that both countries can bring to the table, China is expected to be heavily involved in terms of financial resources and technology," he said.
Soaring Chinese demand for commodities like coal has underwritten Mongolia's rapid growth, with more than 90 percent of its exports sold to China.
But Beijing's growing economic hegemony has caused disquiet among Mongolian lawmakers, with a decline in foreign investment last year caused in part by a hastily drafted law to limit foreign ownership in "strategic" sectors.
The law was designed to block efforts by China's state-owned Chalco Group to acquire a majority stake in Mongolian-based coal miner South Gobi Resources.
But the official said such fears had now abated.
"The atmosphere is more mature now, and that implies that there should be a pragmatic approach to economic relations with our two neighbours, and we hope that the investment community will also recognise this subtle shift," he said.
"There was such a (negative) current of thought in 2010 and 2011 -- Mongolia has never experienced such rapid industrialisation based on mining, and so of course we had to look at the security implications. Now the people are more comfortable working with our two neighbours."
Mongolia had ambitions to become China's top coking coal supplier, largely through the development of one of the world's biggest untapped mines at Tavan Tolgoi, near the Chinese border.
But Mongolia has complained that it has not received fair value for the coal, arguing that the lack of alternative buyers allows Chinese firms to drive down prices. A dispute with Chalco, which signed a supply deal with Tavan Tolgoi in 2011, has contributed to a decline in coal shipments this year.
Mongolia hopes improved infrastructure will allow it to generate more revenue from its coal sector. A rail link to the Russian far east is under construction and half of a direct rail line into China has been completed, with the project scheduled to be finished by 2015.
The official said that Mongolia's state-owned railway operator signed a memorandum of understanding with Chalco last week on building cross-border railways to help deliver coal. Chalco would not immediately comment on the matter.
Alcatel-Lucent, G-Mobile to deploy small cell base stations in Mongolia
October 28 (Voice&Data) Alcatel-Lucent and G-Mobile will deploy small cell base stations to improve 3G mobile broadband coverage in densely populated areas such as shopping malls and stadiums in the capital city of Ulaanbaatar.
G-Mobile's initial small cell deployment will provide better coverage and boost capacity for its wireless 3G network in densely populated locations such as malls and stadiums where quality coverage is often limited.
Alcatel-Lucent will provide its lightRadio small cells portfolio including the 9362 Enterprise Small Cells and 9764 Metro Cells Outdoor solutions, together with integration and technical support for high quality and rapid deployment.
"Small cells improve the quality of mobile coverage--both for voice and high speed data access--by making more effective use of available wireless spectrum. Small cells are a key element in The Shift Plan, Alcatel-Lucent's industrial strategy to reposition the company as a specialist vendor of IP Networking and Ultra-Broadband Access," the company said in its statement.
The city, which is home to approximately 45% of the country's population, will be the location of an initial deployment to be followed by an expansion in 2014 covering the greater Ulaanbaatar area and other major Mongolian cities in 2014.
Small and compact, Alcatel-Lucent's small cells can be placed inconspicuously in internal and external environments, offering a lower cost-per-bit solution for adding 3G mobile broadband coverage and capacity compared to traditional macro cells, repeaters, or distributed antenna systems (DAS).
"Small cells will enable us to sell many more smart devices and increase our market share among both households and enterprises," said BasBish.D, CEO of G-Mobile.
"This small cell solution is the very first of its kind in the Mongolian telecom sector. By adding capacity and coverage exactly where it is needed Alcatel-Lucent's lightRadio small cell technology has opened up the possibilities for expanding our business relationship with G-Mobile., said Daniel Rosie, country senior officer of Mongolia for Alcatel-Lucent,.
Mongolia's new investment law attracts foreign buyer interest from across the globe
October 22 (Property Frontiers) Our investors know that here at Property Frontiers we seek out the best investments from around the world. Mongolia first came to our attention back in 2007, when our pioneering residential developments in the capital city of Ulaanbaatar earned our investors an average return of 24% and 300% capital growth over four years.
Since then, we've watched as the 'Asian Wolf' that is Mongolia has captured international attention with its economic progress. By 2011, this largely nomadic nation had reached the position of the world's fastest growing economy, achieving a growth rate of 17.5%.
At Property Frontiers our research team monitors a range of complex economic indicators to ensure that our investors can benefit from the world's most dynamic international opportunities. For Mongolia, everything is moving in the right direction. The country is predicted to achieve economic growth of 14% this year, according to the International Monetary Fund, and Citygroup analysts have dubbed it a Global Growth Generator, which indicates that between now and 2050, Mongolia is one of the most promising growth prospects on the planet.
A welcoming environment
One of the most significant things to happen in Mongolia in recent years has been the passing of the new investment law this month. The law overturns two previous pieces of legislation and makes the financial environment within Mongolia much more attractive to foreign investors.
In a nutshell, the new law means that the playing field has been levelled for domestic and foreign investors. The change is tipped to boost investor confidence worldwide. One of the most attractive features of the new investment law is that it sets stable tax periods based on the investment amount and the location within the country, with rates set for between 5 and 22.5 years. The rules are applied based on the day a contract is signed and are not subject to the changing legal environment during the lifetime of the deal.
What it means
The change in legislation means that we are thrilled to be offering our clients our latest investment opportunity in Mongolia. The Village @ Nukht is a luxury shopping and leisure centre with construction due for completion by the end of Q4 2013. Freehold retail units with expected rental returns of 14.8% NET, and with an assured yield of 12% for 24 months, provide our clients with the chance to be part of this progressive economy. Investment is from just USD 254,000, with anticipated capital appreciation of up to 20% per annum.
Unusually for an Asian country, the purchase process is simple and straight forward, making investment easy. All investors receive the officially registered floating freehold title to their units, which is another rarity for Asian investment. With Mongolia taking such an enlightened stance to foreign investment, I'm excited to know that The Village @ Nukht is part of Property Frontiers' leading international portfolio.
If you would like more information on developments in Mongolia, feel free to contact Property Frontiers today on +44 1865 202 700 or visit www.propertyfrontiers.com.
Frontier Securities: 10 FAQs of Japanese investors on Mongolia, Oct 2013
October 2013 (Frontier Securities) After series of meetings in Japan in the last few months, I have encountered similar questions on Mongolia. Below are "10 Frequently Asked Questions" from various investors, service providers and companies based in Japan.
· Strong political ties exist between Mongolia and Japan. But what are the background of the relation and how sustainable the relation?
· Abenomics effect and emergence of investments by Japanese to Frontier markets will help Japanese investors to look for opportunities in Mongolia as well. Lots of high growth investment opportunities which Japanese investors have never encountered exist in Mongolia as well. However, risks remain. So, what are the key for success for investments in Mongolia?
· Favorable bilateral relation makes it easier for Japanese investors to find their partners. Nevertheless, why many Japanese investors have failed in Mongolia in the past? And, what will be important to avoid those mistakes?
· Progress of the project finance of Oyu Tolgoi and its impact to the Mongolian Economy.
· Slowdown of Global Commodities Market and its implications to Resource Nationalism in Mongolia and other Resource Rich Countries.
· Opportunities and Challenges of Financing Green Growth in Mongolia for Japanese Investors.
· Will Issuance of Samurai Bond be successful?
· Potentialities of Erdenes Tavan Tolgoi and other Mongolian companies' listing at Tokyo Stock Exchange.
· Foreign Direct Investment and Legal Environment of Mongolia.
· Commitment by the Government of Mongolia to Japanese Investors.
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APIP: Crime statistics are up in 2013
October 28 (APIP) The Metropolitan Police Department of Ulaanbaatar reported an alarming increase of crime figures in September. Since the first quarter of 2013, 11,338 crimes have been reported to the department - 22.5% higher than the comparable figure for the same period of last year.
Mongolian president visits Pyongyang
SEOUL, October 29 (Yomiuri)—Mongolian President Tsakhia Elbegdorj arrived in Pyongyang on Monday for a four-day official visit to North Korea, Radiopress has reported.
The Tokyo-based news agency said the visit is at the invitation of Kim Yong Nam, chairman of the Presidium of the Supreme People's Assembly of North Korea.
Elbegdorj will stay in North Korea through Thursday, according to the Mongolian Foreign Ministry.
The administration of Prime Minister Shinzo Abe has been seeking Mongolia's cooperation to help resolve the issue of Japanese nationals abducted by Pyongyang in the 1970s and 1980s.
Much attention is being paid from various quarters over whether the Mongolian president will have talks with North Korean leader Kim Jong Un and if Elbegdorj will bring up the abduction issue in the summit talks.
The Mongolian president's trip to North Korea has also drawn attention in connection with the recent successful bid by a Mongolian company in an auction for the Tokyo headquarters of the pro-Pyongyang General Association of Korean Residents in Japan (Chongryon) in Chiyoda Ward.
The Tokyo District Court announced on Oct. 17 the Mongolian firm, named Avar Limited Liability Co., which is little known in Japan or abroad, won the auction to acquire the Chongryon headquarters for ¥5.01 billion.
A focus of interest is whether the Mongolian company will lease the Chongryon head office to North Korea's de facto diplomatic mission in Japan or to somebody else, diplomatic sources in Seoul said.
Mongolia Leader on Four-Day Visit to North Korea
Some See Example for Pyongyang in Mongolia's Transformation
SEOUL, October 28 (WSJ) Mongolia's president arrived in Pyongyang on Monday with the goal of nudging North Korean leader Kim Jong Un toward peace and denuclearization, but observers say Pyongyang is unlikely to embrace Mongolia's model of transformation.
During his four-day visit, President Tsakhiagiin Elbegdorj will present his country's history as an example of how to achieve sovereignty and economic development without relying on the use of force, according to an official in the Mongolian president's office.
The official said Mr. Elbegdorj could play the role of neutral mediator for North Korea and the outside world.
The Mongolian capital of Ulanbataar (Mogi: Ulaanbaatar please) has kept close relations with Pyongyang even after Mongolia transitioned into a market economy and a democracy after the fall of the Soviet Union in 1989. Mongolia was the second country to recognize North Korea as a sovereign nation in 1948 when it declared statehood.
Mr. Elbegdorj is expected to be the first head of state to meet Kim Jong Un since the North Korea dictator came to power at the end of 2011.
Some experts argue that Mongolia's rapid, mining-propelled economic growth could serve as a model for North Korea, which has abundant metals and rare-earth minerals.
Emulating Mongolia's development "is the only option North Korea has for digging itself out of poverty," said Park Syung-je, a North Korea analyst at the Asia Strategy Institute in Seoul. "Otherwise, North Korea will look the same as it is today in 20 years."
Mongolia's fledgling resource industry is by far its largest driver of growth, accounting for 85% of investments into Mongolia and 40% of state revenue. Foreign direct investment in this sector propelled Mongolia in 2011 to become the world's fastest-growing economy, according to World Bank data.
But Andrei Lankov, a longtime North Korea watcher and professor at Kookmin University in Seoul, says the Mongolian example would be "completely unattractive" to Pyongyang's leadership, as the landlocked country's transformation in the 1990s included a democratic revolution and the ousting of the communist regime.
Before his career in government, Mr. Elbegdorj was one of the key leaders in Mongolia's pro-democracy movement and staged nonviolent demonstrations against the communist leadership.
North Korean newspaper Rodong Sinmun said Monday Pyongyang is "satisfied with the positive developments in the long-standing and traditional friendly ties between North Korea and Mongolia in recent years across several areas."
Mr. Elbegdorj will also ask for more North Korean laborers to be sent to Mongolia, according to an official in Ulanbataar's economy ministry. Experts estimate about 1,700 North Korean migrant workers are inside Mongolia, with most of them working at construction sites. A standing agreement between the two countries allows 5,000 North Korean workers in total.
The Mongolian president may also raise the issue of Japanese abductees believed to be in North Korea, an issue Ulanbataar has tried to mediate before. Pyongyang has admitted to abducting 13 Japanese and has returned five, saying the others died. Tokyo has been asking for more information.
This week's visit coincides with the 65th anniversary of the diplomatic ties between Mongolia and North Korea.
Their relations were chilled after the newly democratized Mongolia moved closer to South Korea, where a large population of migrant workers and students reside. But their ties have warmed up since the beginning of the millennium.
Mongolia's relations with South Korea have become stronger. More than 26,000 Mongolian citizens live in South Korea, the equivalent to nearly 1% of Mongolia's 2.9 million population, according to South Korea's immigration office.
South Korea's foreign ministry declined to comment.
Mongolian president visits N. Korea to boost ties: report
SEOUL, Oct. 28 (Yonhap) -- The Mongolian president arrived in North Korea Monday to strengthen economic, social and cultural ties, the communist country's media said.
The Korean Central Television said President Tsakhia Elbegdorj's plane landed at Pyongyang's Sunan International Airport at 11:55 a.m. and was greeted by Kim Yong-nam, the president of the Supreme People's Assembly (SPA) Presidium and the North's ceremonial head of state.
It said the chief executive (Mogi: not the head of government, if that's what this means) reviewed honor guards with Kim at the welcoming ceremony.
The arrival of the Mongolian president marks the first ever visit by a foreign head of state after Kim Jong-un took power upon the death of his father Kim Jong-il in late 2011.
If the incumbent leader holds a summit meeting with Elbegdorj, it will mark Kim's debut into the world of international diplomacy.
The paper, meanwhile, claimed that with the stature of the North rising within the international community, the visit will allow the two sides to advance common goals and ideals, it added.
The paper said Elbegdorj comes on the 25th anniversary of North Korean founder Kim Il-sung's second trip to the land-locked Asian country.
North Korea and Mongolia first normalized diplomatic relations in 1948. The North's founder then visited the country twice, in 1956 and 1988, while the secretary general of Mongolia's socialist party traveled to the country in 1958 and 1986.
Relations soured in 1999 after Ulaanbaatar supported South Korea's so-called Sunshine Policy, although relations improved after 2002.
President leaves for state visit to North Korea
October 28 (news.mn) The President of Mongolia Ts.Elbegdorj left this morning to make a state visit to the Democratic People"s Republic of Korea, on Monday October 28th, 2013.
During the visit to DPRK, the President will have individual meetings with the North Korean leader and high ranking officials for official talks on mutual relations between Mongolia and DPRK as well as regional and international issues.
During the state visit, President Ts.Elbegdorj will be accompanied by the Minister of Foreign Affairs of Mongolia, L.Bold, the Minister of Industry and Agriculture, the head of the Intergovernmental Consultative Committee between Mongolia and North Korea, Kh.Battulga and other government officials.
The state visit by President Ts.Elbegdorj purposely comes at a time when Mongolia and North Korea are celebrating the 65th anniversary of the establishment of diplomatic relations, according to a news release from the Ministry of Foreign Affairs of Mongolia.
History of Mongolia-North Korea Relations
October 28 /www.infomongolia.com/ In the scope of the 65th anniversary of the establishment of diplomatic relations between Mongolia and North Korea, InfoMongolia.com presents the following articlewhich was shared by the 1st grade student of the School of Mongolian Language and Culture, National University of Mongolia, Ms. An Hui Gyong.
Currently, five students are studying at the School of Mongolian Language and Culture, National University of Mongolia.
News: President of Mongolia is conducting a state-visit to DPRK History of Mongolia-North Korea Relations
The year of 2013 marks the 65th anniversary of the establishment of diplomatic relations between Mongolia and the Democratic People's Republic of Korea.
The Democratic People's Republic of Korea was founded on September 09, 1948, a month later, Mongolia and North Korea reciprocally agreed its statuses in the legal frames and following the official talks, the parties co-signed the Act of Diplomatic Relations on October 15, 1948. Then-time Mongolian People's Republic (1924-1992) recognized the North Korea after the Union of Soviet Socialist Republics and in the history of Mongolia-North Korea relations, Mongolia is recorded as the second nation establishes diplomatic ties with the country.
During the Korean War in 1950-1953, Mongolia and North Korea mutually opened its Embassies in Ulaanbaatar and Pyongyang in 1951, which was a start of good friendly relations and cooperation. Although some states were closing its Embassies at the beginning of the Korean War, Mongolia instead was operating its Diplomatic Office and continued to encourage North Korea by the means of ideological supports.
The first Ambassador Extraordinary and Plenipotentiary of Mongolia to the DPRK from 1950 to 1952 was Chairman of the Presidium of the People's Great Khural (Assembly), Jamsran SAMBUU (1895-1972).
During his mission, Ambassador J.Sambuu, who contributed greatly to the mutual relationships, was in a very close and friendly communications with legendary leader of the country Kim Il-sung.
It is still remembered, one day, Ambassador was playing chess with the Supreme Leader in his residence but suddenly an alarm sounded and shortly after it was started to bomb, when all were moving toward an air-raid shelter Ambassador J.Sambuu was carrying the chess set over his head trying to maintain the positions. This memorable event was often reminisced by the Supreme Leader during his official receptions of Mongolian delegations, and as proof of his friendship, "Eternal" President Kim Il-sung inquired J.Sambuu's children when he was visiting Mongolia in 1988 and every year since then the first Ambassador's children were invited to have summer vacations in North Korea's camps and grandchildren were receiving scholarships for higher institutions from the Government of Korea.
Following the wartime, people of Korea suffered huge damage and casualties, thousands were killed, more were wounded, missed and abducted, moreover thousands of children were left orphaned.
When the war was over, a campaign to assist with material aid and moral support for the people of Korea was organized broadly among Socialist regime countries, and as part of encouragements many North Korean children were adopted by these nations including Mongolia, because large numbers of children were filling up the country's orphanages.
On September 15, 1952, Mongolia adopted over 200 children aged between 3 and 6, accompanied with few instructors from DPRK.
These kids were raised in a two-storey home, was located east of Zaisan Memorial, and from Mongolian side 27 educators were appointed, who devoted all their time and love to raise these children as their own, sooner kids acclimatized quickly to new environment and used to call their teachers and kitcheners as "Oma", which means "Mama" in Korean.
Among those nurses, instructor J.Tsevelmaa and chef O.Tsermaa were familiar, besides met with North Korea's Leader Kim Ilsung several times during his visit to Mongolia, and later the two Mamas were specially invited to visit North Korea, moreover their grandchildren also obtained high education at the Kim Il-sung University.
In 1955, the Government of Mongolia erected for these children a summer home at the place namely Sharga Morit camp about10 km from Ulaanbaatar and they used to winter at the home near the Zaisan Memorial. After 8 years in June 1959, the Government of DPRK called all those orphan children back home.
In Korea there is a saying, "The behavior of filial piety is more than mothering care". On behalf of these kids, who are now greyheaded grandparents, I wish to personally thank those Mongolian Mamas for loving care, kindness and empathy shown toward each orphan, and express my sincere gratitude for all Mongolians you have done.
In Mongolian saying, "A friend in need is a friend indeed". Mongolia and North Korea have been reciprocally helping each other in difficult times in many fields.
The Mongolia-DPRK friendly relations have been persistently developed to date and the two countries' current leaderships have also been following and implementing their nations' interests.
Mongolia - S.Korea Foreign Ministries Hold Consultation Meeting
Ulaanbaatar, October 28 /MONTSAME/ The Foreign Ministries of Mongolia and the Republic of Korea held October 24 the 7th consular consultation meeting in Ulaanbaatar.
The meeting was attended by a Director of the Consular Department of the Ministry of Foreign Affairs of Mongolia Mr Sh.Sukhbaatar and by Director-General for Overseas Koreans and Consular Affairs of the Foreign Ministry of the S.Korea Mr Ahn Young-jip.
The meeting focused on the protection of legal rights and interests of Mongolians residing in South Korea, the facilitation of travel conditions for citizens of both countries, the extradition of accused or sentenced Mongolians in S.Korea to their home country, and the identification of missing persons of Mongolia in S.Korea.
The parties also reviewed the implementation of bilateral consular agreement and conventions.
Present at the meeting were also officials from the Ministries of Foreign Affairs, of Justice, of Immigration Agency, National Police of Mongolia, and Mongolian Embassy in South Korea.
Mongolia and France to Cooperate in Agriculture
Ulaanbaatar, October 28 /MONTSAME/ Mongolia and France have established a mutual understanding memorandum.
At the event, which took place October 26 in frames of the French Foreign Minister Mr Fabius's visit to Mongolia, the Minister of industry and agriculture Kh.Battulga and France's Ambassador Extraordinary and Plenipotentiary to Mongolia Mr Yves Delune inked the document.
The sides will cooperate in naturalizing in Mongolia the French pidegree cattle which is expected to improve our cattle's milk and meat supply system. In this, the French side will give technical support and will run trainings.
Moreover, the two parts are supposed to establish a long-term, strategical and mutually beneficial business partnership by supporting activities between professional organizations of Mongolia and France such as technologies, trade and finance partnership, related officials say.
Diplomatic Passport Holders to Visit France without Visa
Ulaanbaatar, October 28 /MONTSAME/ Diplomatic passport holders of Mongolia and France will visit each other countries without visas.
An intergovernmental agreement on exempting these passport holders from the visa requirements was inked last Saturday in Ulaanbaatar city by L.Bold, Mongolia's Minister of Foreign Affairs, and by his French counterpart Mr Laurent Fabius.
In accordance with the agreement, the holders of this type of passport can stay in the country up to six months, if official or personal cases are involved.
The agreement will go into after 30 days when the sides send statements through diplomatic lines about having completed all related legal procedures.
40th Anniversary of Mongolia-Germany Diplomatic Relations to be Marked on January 31
Ulaanbaatar, October 27 /MONTSAME/ The 40th anniversary of the diplomatic relations between Mongolia and the Federal Republic of Germany (FRG) will be celebrated on January 31 next year.
After having decided as such, the cabinet Saturday approved a composition of the event organizing committee and appointed the FM L.Bold its head.
Since the establishment of the diplomatic relations, the Mongolia-Germany relations have reached a comprehensive partnership level, expanding in all social spheres.
Although these ties were established 40 years ago, the Mongolians used to be educated in Germany from the beginning of the 20th century and the bilateral collaboration launched late 1920s. For the time being, some 30 thousand Mongolians have been educated in this country.
In addition, Mongolia established with Germany a joint declaration on the basis of relations in 1995, thus Germany became the very first state among western nations to determine principles and cooperation directions with Mongolia.
Canadian Citizens to Travel Mongolia Visa-Free Up to 30 Days
October 28 /www.infomongolia.com/ At the invitation of the President of Mongolia, the Governor General, His Excellency the Right Honourable David Lloyd Johnston has conducted a state visit to Mongolia on October 24-26, 2013.
In the frames of the visit, Mongolia and Canada exchanged and signed on several documents, where the President Ts.Elbegdorj and His Excellency David Johnston were present at the document signing ceremony.
In particular, a note regarding the decision of the Government of Mongolia to allow citizens of Canada to travel to Mongolia under the visa-free term up to 30 days was exchanged between Minister for Foreign Affairs of Mongolia L.Bold and the Ambassador Extraordinary and Plenipotentiary of Canada to Mongolia Gregory Goldhawk.
A Memorandum of Understanding between the Canadian Commercial Corporation and the Ministry of Industry and Agriculture of Mongolia, to develop cooperation to improve living standards of rural herders was signed by Minister for Industry and Agriculture of Mongolia Kh.Battulga and the Ambassador Extraordinary and Plenipotentiary of Canada to Mongolia G.Goldhawk.
A Memorandum of Understanding between the Mongolian State University of Agriculture and the University of Saskatchewan of Canada on the framework of cooperation was signed between the President of the Mongolian State University of Agriculture T.Kheruuga and the Dean and Professor of the College of Agriculture and Bio-resources at the University of Saskatchewan Mary Buhr.
Norwegian-Mongolian Chamber of Commerce Established
Ulaanbaatar, October 28 /MONTSAME/ A newly established Norwegian-Mongolian Chamber of Commerce (NMCC) held its first meeting in Oslo October 23.
The NMCC was founded this June at initiative of Honorary Consul of Mongolia to Norway K.Krane and "FoodEon" Co CEO K.Horn. The chamber's missions are to develop the Mongolia-Norway trade and economic relations and to attract the Norwegian investments to Mongolia.
The meeting was attended by the State Secretary of Norwegian Foreign Ministry, Mr. P.Davidsen and some thirty representatives of Norwegian governmental and nongovernmental organizations and private sector, showing a great significance attached by the Norwegian part to the cooperation.
The diplomatic staff of the non-resident Embassy of Mongolia to Norway gave comprehensive information on the investment law and legal environment to the participants. Afterwards, they held a meeting with Mr Davidsen to discuss issues of the development of bilateral trade and economic cooperation, where he expressed a future support on the directions suggested.
Speaker Meets Parliamentary Delegation of Kazakhstan
Ulaanbaatar, October 28 /MONTSAME/ The Chairman of the State Great Khural (parliament) Z.Enkhbold Monday received a delegation led by Sh.A.Utemisov MP, a head of the Kazakhstan-Mongolia inter-parliamentary friendship group.
Underlining a coincidence of the delegation's visit with the 20th anniversary of the establishment of the Treaty on friendly relations and cooperation between Mongolia and Kazakhstan, the Speaker said this treaty is the key document that determines basic principles and directions of the bilateral relations.
The inter-parliamentary ties are vital in forwarding the bilateral relations, "so I consider as necessity to hold an annual inter-parliamentary meeting so that mutually beneficial initiatives and proposals are realized with a participation of rural authorities," Mr Enkhbold said.
The Speaker noted that the countries, having similarities in terms of natural resources, can cooperate in the economics, mining and infrastructure sectors, and in regional development. Mongolia wants to participate in infrastructure and economic projects implemented by Kazakhstan as a member of the Shanghai Cooperation Organization (SCO), he said.
In turn, Mr Utemisov noted that the Kazakhstan-Mongolia friendship group at the Mazhilis (Lower house of Kazakhstan's parliament) has 11 members, and emphasized that the bilateral relations have ancient history and many similarities in traditions and custom, adding Kazakhstan is always thankful to Mongolia for being one of the first countries to recognize its independence.
Mr Utemisov underlined that one of the expressions of Mongolian achievements in democracy is hosting the Ministerial Conference of the Community of Democracies (CoD). He appreciated proposals of the Mongolian side on expanding the relations and cooperation in many spheres, and hoped that this meeting will contribute to activating of the bilateral relations and cooperation, especially the cultural and humanitarian ties.
Mr Utemisov also hoped that the countries will give their impetus to ensuring of the regional security and will reach an agreement on joining the international transportation infrastructure in order to solve developmental problems as being landlocked countries.
DEPUTY PRESIDENT OF SOUTH AFRICA TO VISIT MONGOLIA
October 28 (MFA of Mongolia) Deputy President of South Africa H.E. Mr. Kgalema Motlanthe will pay an official visit to Mongolia from October 30 to November 1 at the invitation of the Prime Minister of Mongolia, H.E. Mr. N.Altankhuyag.
Mongolia and South Africa established diplomatic ties in 1994 and the upcoming visit is the first ever top visit of South Africa to Mongolia. During the visit, Mr. Kgalema Motlanthe will hold official talks with Mr. N.Altankhuyag and pay courtesy calls to the President of Mongolia, H.E. Mr. Ts.Elbegdorj and the Parliament Speaker, H.E. Mr. Z.Enkhbold.
The deputy president's visit will open a new page in the Mongolia-South Africa relations and moreover, will lift relations and cooperation Mongolia develops with other African states to a new stage and strengthen cooperation with African states on the international fora.
UNESCAP: APTA welcomes Mongolia as its seventh member
October 28 (UNESCAP) Mongolia successfully concluded negotiations with all participating States for its accession to the Asia-Pacific Trade Agreement (APTA) at the close of last week.
The Standing Committee of APTA at its forty-second session reached a consensus officially welcoming Mongolia as the seventh member of the Agreement. Current members include Bangladesh, China, India, Lao PDR, Republic of Korea and Sri Lanka.
The APTA is the oldest preferential trade agreement (PTA) among developing countries of the Asia-Pacific region and the only operational regional trade agreement linking China and India - the two locomotive sources of economic growth in the region, with a combined consumer base of some 2.6 billion people and dynamic trading nation - and a major market, such as the Republic of Korea.
"The Asia-Pacific Trade Agreement brings inclusive and sustainable development through the powerful engine of trade," said Dr. Noeleen Heyzer, United Nations Under-Secretary-General and Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). "I hope that the APTA as a regional trading arrangement will benefit Mongolia."
Dr. Ravi Ratnayake, Director of ESCAP's Trade and Investment Division, noted: "This marks Mongolia's inaugural accession to a preferential trade agreement" and stressed that "Mongolia's decision to be part of the APTA is particularly significant in that Mongolia is the only WTO member never to be party to any PTA to date."
"Business opportunities arising from preferential trade and investment cooperation under APTA could generate higher incomes from exports and create employment in export-led industries for Mongolian people," Dr. Ratnayake added.
Between 2001 and 2006, the APTA intra-regional trade share increased by almost 50 per cent. The Fourth Round of negotiation launched in October 2007, led to tariff concessions over 10,000 items, compared to 4,270 items under the Third Round. The current Round widens the coverage of preferences of total tariff lines for each Member State and deepens the tariff concessions by at least 20-25 per cent of the total intra-regional trade under the APTA.
Furthermore, aiming at comprehensively deepening trade cooperation and integration, the Fourth Round of negotiations extended into areas beyond the traditional tariff concessions, including non-tariff measures, trade facilitation, trade in services and investment for the first time in the history of the Agreement.
The APTA is a unique PTA whose membership is open to all developing Member States of ESCAP currently spanning East and South-East and South Asia, with potential to expand to other sub-regions of ESCAP, including Central Asia and the Pacific.
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Surenkhorloo awarded IOC trophy for 40 years of service
ULAAN BAATAR, October 28, 2013 (AIPS) - D. Surenkhorloo was awarded an IOC trophy at the Olympic House in Ulaanbaatar by Mongolia NOC president Dr. D. Zagdsuren for his 40 years of outstanding service to sport and Olympism.
Surenkhorloo, a former cross country skier, has worked in the sports field for more than forty years as an athlete, coach, Ski Federation secretary general, NOC member, director of Zamchin railway sports club; and as senior staff and sports director at various government sports institutions.
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