Friday, February 7, 2014

[Golomt responds to Bloomberg, UB real estate worth ₮2.8T, and Mongolia/Canada investment protection talks to resume]

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

Friday, February 7, 2014

Follow the news on Facebook, Twitter and view archive here

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

Headlines in Italic are ones modified by Cover Mongolia from original


Overseas Market

GUF trading +9.4% at 10.5c in early trading

Guildford Coal edges closer to coal sales from Mongolia mine

February 7 (Proactive Investors) Guildford Coal (ASX: GUF) is close to starting coal sales from its Baruun Noyon Uul mine in Mongolia after it was successfully and formally commissioned for operations and sales by the government.

This enables the company to extract coal in readiness for first sale and it is now waiting on final permitting of the coal transport company that will deliver the coal to the coal distribution hub at Ceke, on the China border.

Guildford had in December completed a key 98 kilometre current haul road connecting the Baruun Noyon Uul mine with the coal distribution hub at Ceke, at the China border.

The project consists of five tenements located in the South Gobi Province (Umnigovi Aimag) of the country, which are located around 1,000 kilometres south-west of the Mongolian capital of Ulaanbaatar.

The licenses are well situated to tap the end user market, due to being just 60 kilometres from the Chinese border station of Ceke, where coal from Mongolia is currently transported through to China.

Baruun Noyon Uul – formerly North Pit – has the potential to ramp up to produce in excess of 3 million tonne per annual from an open-cut coking coal operation.

The project is also strategically located 50 kilometres east of Nariin Sukhait which includes South Gobi Resources' (Mogi: SouthGobi)  Ovoot Tolgoi mine and the MAK mine, which produce and export coking and thermal coal to customers in China.

Link to article

Link to GUF release

Back to top

Local Market

MSE News for February 6: Top 20 +1.01%, Turnover 25.8 Million

Ulaanbaatar, February 6 (MONTSAME) At the Stock Exchange trades held Thursday, a total of 79 thousand and 038 shares of 28 JSCs were traded costing MNT 25 million 790 thousand and 984.00.

"Remikon" /31 thousand and 750 units/, "Khokh gan"  /24 thousand and 642 units/, "Moninjbar"  /12 thousand and 454 units/, "Mongolia development" /3,169 units/ and "Olloo" /2,862 units/ were the most actively traded in terms of trading volume, in terms of trading value--"Remikon" (MNT four million 876 thousand and 700), "Tavantolgoi" (MNT three million 996 thousand and 670), "Moninjbar" (MNT three million 695 thousand and 628), "APU" (MNT three million 070 thousand and 735) and "Khokh gan" (MNT two million 957 thousand and 140).

The total market capitalization was set at MNT one trillion 689 billion 655 million 353 thousand and 428. The Index of Top-20 JSCs was 16,775.80, increasing by MNT 167.31 or 1.01% against the previous day.

Link to article

Back to top


BoM MNT Rates: February 6 Close





































January MNT Chart:


Link to rates


BoM FX Auction: $11 Million Sold at 1,731, Accepts $73 Million MNT Swap Offers

February 6 (Bank of Mongolia) On the Foreign Exchange Auction held on February 6th, 2014 the BOM has received from local commercial banks bid offer of USD and CNY. The BOM has sold 11 million USD as closing rate of MNT 1731.00. 

On February 6th, 2014, The BOM has received MNT Swap and Forward agreement offer in equivalent to 73.0 million USD and USD Swap agreement offer of 10 million USD from local commercial banks and accepted the MNT Swap agreement offer.

See also:

FX Auction Statistics

Link to release


8% Mortgage Program Update: ₮482.4 Billion Refinanced, ₮839.4 Billion Newly Issued for 31,790 Citizens

February 3 (Cover Mongolia) As of February 3, 482.4 billion (₮482.3 billion as of February 3) existing mortgages of 17,105 citizens (17,102 as of February 3) were refinanced at 8% out of 844.3 billion (844.3 billion as of February 3) worth requests.

Also, 839.4 billion (₮836.7 billion as of February 3) new mortgages of 14,685 citizens (14,637 citizens as of February 3) were issued at new rates out of 912.1 billion (₮910 billion as of February 3) worth requests.

Link to release (in Mongolian)

Back to top


Mogi: bit odd Xinhua jumped at reporting this. By odd I mean why wouldn't they wanna report our diplomatic spats with the US.

Mongolia rejects request to return detained U.S. businessman

ULAN BATOR, Feb. 6 (Xinhua) -- Mongolian law enforcement agencies have rejected a request by U.S. senators to lift the travel ban on a detained U.S. mining executive considered a potential witness in a government corruption case.

Justin Kapla, from the U.S. state of Minnesota, was president of SouthGobi Sands, a coal mining company operating in South Gobi province when he was blocked from leaving Mongolia in October 2012.

He was considered a witness in a corruption investigation of Dorjpurev Batkhuyag, former chairman of Mongolia's Mineral Resources Authority and adviser to then Prime Minister Batbold Sukhbaatar who was jailed in February 2013.

Mongolian law forbids foreign witnesses or suspects in criminal cases to leave the country.

Repeated requests for the businessman's release by the U.S. Embassy to Mongolia have all been rejected.

The latest request was made by Minnesota senators Amy Klobuchar and Al Franken, who asked for Kapla's return to the United States on humanitarian grounds to spend some time with his ailing stepfather.

Link to article


Mongolia introduces smart postal boxes to deal with confusing addresses

February 6 (UB Post) The Information Technology, Post and Telecommunication Authority (ITPTA) and Mongol Post officially launched a smart postal box service at Dalaikhuu Trade Center in Chinggeltei District's Tavan Buudal. The smart box service is also available at Viva City in Yarmag, Buren Plaza next to traffic circle no.32, Bosa Trade Center in Bayankhoshuu and Central Post Office starting on Thursday.

With the newly launched service, citizens will have more conventional options for sending parcels, mail and other items to domestic recipients, rather than having to rely on unofficial messengers passing through destinations.

Users can simply leave their parcels or mail, properly labeled with the intended receiver's name, home or work address and phone number, at the closest Mongol Post branch in the area and the Mongol Post will deliver their packages to the smart box closest to the recipient's location.

The recipient will receive a text message with a password and location of the smart postal box containing their mail.

The smart postal box service will be available at 18 locations in Ulaanbaatar in the first stage of the program, but all other province capital soums and other densely populated areas will acquire the service soon, according to a state announcement.

Chief of ITPTA Ts.Jadambaa said of the launch, "The main reason for our decision to run a smart postal box service in Mongolia was the lack of coherent addresses. Due to the lack, it was problematic for the state to deliver relevant state service materials to citizens through the postal service. Now the smart postal box service will have no problems, such as mail being sent back because of unclear recipient addresses or get delayed on the way. Each postal box is able to receive parcels of up to 50 kg. In the future, we will not only just receive parcels through the smart postal boxes but also send parcels from the box."

Mongol Post will cooperate with government organizations and send fines, traffic tickets and taxation reports through the service. Starting next week, foreign passports will be sent to province residents by post.

The Prime Minister also attended the launch and said, "The New Government for Changes is paying special attention to eliminating bureaucracy and bringing state services closer to residents in provinces and ger areas in the suburbs of Ulaanbaatar. The State Self-Service Machine was one of the government's successful projects in improving state services. We hope the smart postal box service will also benefit citizens and save their time and money."

Link to article


Mogi: international defense of Munkhbayar continues with GENOCIDE being thrown around now. To repeat my views again, bringing a loaded gun inside the government compound is punishable, but have doubts about planting explosives.



By Keith Harmon Snow

February 5 (Conscious Being Alliance) Packed with distortions and outright lies, Mongolia's privatized former state media called them the 'enemies of Mongolia'.  On 16 September 2013, the leaders of Mongolia's Fire Nation (Gal Undesten in Mongolian), an environment and human rights coalition, organized a mass protest in front of the Mongolian Parliament.  Decades of grassroots organizing to establish environmental protections were at risk: on September 16 the Great State Khural (State Parliament) gathered with intentions to dismantle the so-called 'Law With A Long Name' (LLN).

Adopted by parliament in 2009, after more than a decade of grassroots organizing and public pressure, the 'Law to Prohibit Mineral Exploration and Mining Operations at the Headwaters of Rivers, Protected Zones of Water Reservoirs and Forested Areas' is the only significant Mongolian law protecting nomadic herders' traditional lands and watersheds from further radioactive and chemical contamination, diversions of rivers and land-grabbing.  With mining companies ignoring the law, destroying pastureland and watersheds, and no government enforcement, the livelihoods and culture of indigenous Mongolian herders are rapidly disappearing.  These are the same mining corporations responsible for genocide and crimes against humanity in Africa and Latin America and everywhere we find them.

Symbolically armed with hunting rifles and antiquated weapons, the most courageous leaders of the grassroots Fire Nation sought to draw attention to corruption and collusion between government and foreign mining corporations.  They are fighting to save their culture and people and their very way of life.

In a statement read on the steps of Parliament prior to the arrests, Ts. Munkhbayar called for urgent and serious action to protect the Law with a Long Name (LLN).  The People began with cooperative meetings, he said, engaging government officials and agencies, and the People won the passage of the Law with a Long Name, but there was no enforcement, and corporations were getting away with egregious wrongs.  So then the People came with petitions.  When petitions didn't work they threw rocks at Parliament.  Then they fired their rifles on machines that were ripping up their precious pasturelands.  They symbolically shot arrows at Parliament from their herder's bows.  Nothing moved the government to protect the People and the land.  Now they had come with weapons.  They never intended to hurt anyone, and they never hurt anyone.

These are herders who employ a wide range of methods and tactics, including environmental education, public theater, monitoring of pollution, restoration of ecosystems, alliances with government, campaigns in the legislature.  They have also fired on foreign mining equipment and occupied illegal mining sites.  Many of their actions have been symbolic, born out of integrity and the spirit of civil disobedience.

"On the morning of September 16, delegates representing 11 non-government organizations protested outside the Government Palace against proposed amendments to the [LLN]," wrote M. Zoljargal for Rivers Without Boundaries, a coalition of NGOs working to protect Eurasian watersheds.  "The reason for the protest was to prevent the approval of the amendment, as the 2009 law hasn't been implemented or enforced in its current form.  Many protected lands have been mined despite the law meant to preserve the integrity of Mongolia's environment.  The protestors were there to stop the amendment, fearing that once the law is amended, permit termination and state protection might become impossible."  [1]

Mongolian civil society leaders declare that state agents framed Munkhbayar and the other protestors.  Four of the ten protestors arrested on 16 September 2013 were released; six were detained on the charge "group attempt to severely threaten well-being of society".  Defense lawyers argued that there was no victim in the case but they were prohibited from mounting a substantial defense.  Many key facts were ignored and evidence was suppressed and sidelined.  There is substantial evidence that Mongolian government agents used 'dirty tricks' typical of thugs, terrorist organizations and state security agents (e.g. C.I.A., Stasi, MI-6, SAVAK, F.B.I., etc.), dirty tricks and thuggery which bears the signature of the Mongolian state security apparatus.

On 21 January 2014, the six civil society leaders were sentenced to prison.  Defendants J. Ganbold, G. Boldbaatar, D. Tumurbaatar, S. Dashtseren and Ts. Munkhbayar received 21 years and six months (reduced from 22 years and six months for time served since 16 September 2013).  The sixth man, M. Munkhbold was sentenced to two years for supplying weapons.  When the verdict and sentences were delivered in court, the wife of J. Ganbold (suffering from ovarian cancer) fainted; others shouted and cried. 

The six men, all 50-60 years of age, were interrogated under harsh conditions in state detention cells.  One of the six, J. Ganbold, is reportedly in danger of losing his hand after police removed a cast and refused him medical treatment.  When Mr. Ganbold's wife pled with the court for her husband to receive treatment, the chief investigator derided her, declaring that her husband and the others deserved to suffer, implying they are traitors of the state.

Most of these leaders have previously been arrested in the long struggle to defend Mongolia from the hydra of Western industries of exploitation: mining, 'development', 'nature conservation', and foreign 'aid' and 'charity'. 


Link to full article (Mogi: had to cut it off as it was a pretty long piece)

Back to top


Golomt Bank denies accusations on Bloomberg, has paid off Credit Suisse, and faces no problem paying off Abu Dhabi

February 6 ( First Vice Director of the Golomt Bank, Bolormaa Luvsandorj has been interviewed on the National Broadcaster regarding the news that has been reported on Bloomberg. The Director stated that Credit Suisse loan of USD10 million has been completely paid off in 2012. Abu Dhabi Fund invested USD25 million and confirmed their interest of early withdrawal. However, the Vice Director emphasized that it is about 1% of the bank's entire asset, therefore it would not be a problem to pay it off. Golomt Bank had won a best bank from both local and international awards for many years. It provided 30% of the Mortgage Policy implemented by the Government which issues 8% Annual mortgage. She added that Itochu and Altan Dornod issue has been resolved last year.  The confirmed that there isn't any problem in operations and it hadn't defaulted in any of its' debts. Also, she added that it is unclear that how Bloomberg came up with the number USD90 million.

Link to article



February 5 (MIAT) In accordance with "Action Plan of the Government of Mongolia for 2012-2016", "State Policy to be Adhered in Civil Aviation Sector Until 2020", and related resolutions issued by the Cabinet in 2013, MIAT Mongolian Airlines (MIAT) successfully finalized long-term financing of its newly purchased Boeing 767-300ER aircraft from the Boeing Company of the United States on 24 December 2013, which was delivered in May of 2013.

The Netherland's ING Bank N.V., together with its wholly-owned subsidiary ING Capital LLC, solely arranged the USD 121.4 million refinancing of the aircraft, guaranteed by the Ministry of Finance of Mongolia. The three-tranche financing package consists of a 10-year senior loan guaranteed by the Export-Import Bank of the United States (Ex-Im Bank), a 7-year junior loan, and a 5-year commercial note. From the proceeds, MIAT refinanced its outstanding bridge loans which were obtained from domestic banks.

The deal marks one of the country's largest ECA-guaranteed transactions and Ex-Im Bank's first significant transaction in Mongolia, as well as MIAT's first direct aircraft purchase from the manufacturer.

It is important to note that the borrower needs to meet the requirements set by the Ex-Im Bank in order to obtain the Export-Import Bank Guaranteed financing for the aircraft. Thus, the lender may provide long-term financing at low interest rate to the borrower. MIAT is pleased to become the first airline company to receive such guarantee and funding of this type in Mongolia. Moreover, MIAT is proud to have played a critical task in opening the gate for attractive financing opportunities in Mongolia's strategically significant sectors.

ING Bank was the first international bank to invest in Mongolia's growth by establishing a representative office in 2008. The Bank provides domestic and international clients with access to a range of products and services in project finance, trade and commodity finance, structured export finance, debt capital markets and corporate finance. ING Bank has also been involved in several syndicated loan transactions and Mongolian international bond issuances.

Link to release


Agricultural Commodities Exchange contributes 400 billion to state budget

Ulaanbaatar, February 6 (MONTSAME) The Agricultural Commodity Exchange traded cashmere, sheep and camel wool and vegetable oil last year.

During that period, the exchange had collected 400 billion togrog to the government budget. Since beginning of 2014, the exchange has traded cashmere of 650 kg, camel wool of 123 ton, fiber mill wool of 275 thousand ton, and vegetable oil of 7.566 ton, reaching a total trade turnover of 8.2 billion togrog.

The establishment of the Agricultural Commodity Exchange greatly contributes to keeping of the purchasing price of cashmere high in the country, say officials, citing that last year the price had not gone under 60 thousand togrog per kg. 

Link to article

Back to top



Property census puts Ulaanbaatar's real estate value at 2.8 trillion MNT

February 6 (UB Post) A recent 180 million MNT census on real estate in the capital reported that Ulaanbaatar has real estate valued at 2.8 trillion MNT.

During the census, the state of Mongolia allocated 2.4 billion MNT to creating 1,644 jobs and registered 2,900 new real estate taxpayers. The census to enroll new taxpayers was initiated in September and completed within a month.

The census was conducted by the Capital City Mayor and General Tax Authority. Data from the census will serve as a central database of real estate taxpayers. By forming a central database of taxpayers, the state believes that it will eradicate underground trading. Officials stated that processes for issuing taxes and receiving payment will be improved and will form stable tax income for the state from provincial areas.

While Mongolia's total population remains relatively small at 2.9 million, according to the National Statistical Office, 55 percent of the nation's people reside in cities, creating a larger than expected housing market. Most of the cities, particularly Ulaanbaatar, have grown phenomenally over the last decade.

Link to article

Back to top



President Ts.Elbegdorj to attend Sochi Olympics opening ceremony

February 6 ( President of Mongolia, Ts.Elbegdorj will head for Sochi Russia to attend Winter Olympics 2014 opening ceremony where leaders from over 60 countries to be present today February 6th. 

Mongolian athletes Ch.Otgontsetseg, B.Byambadorj will compete for cross-country skiing at the 2014 Winter Olympics that will be held at the Laura Biathlon & Ski Complex near Krasnaya Polyana, Russia. Mongolian athletes will run on their event on February 14-15th. Minister for Culture, Sport and Tourism, Ts.Oyungerel will also be present at the Sochi Olympics opening ceremony. 

Mongolia-Russia "Ulaanbaatar Railway" JSC has awarded its 70 employees with tickets to see the Sochi Winter Olympics. So, today those employees are heading to Russia. 

Mongolia has experienced taking part of Winter Olympics in biathlon, skate, short track and cross-country skiing. 

Link to article


Mongolia, Canada to Continue Talks on Bilateral Investment Protection Agreement

February 6 ( On February 05, 2014, the Speaker of the State Great Khural (Parliament) Zandaakhuu ENKHBOLD received the Ambassador Extraordinary and Plenipotentiary of Canada to Mongolia, Gregory Goldhawk.

Speaker greeted the Ambassador with Mongolia's Lunar New Year and sides mentioned about the 40th anniversary of the establishment of diplomatic relations celebrated last year. Also, parties discussed the state visit conducted by Governor General of Canada, His Excellency the Right Honourable David Lloyd Johnston and underlined the visit was fruitful, moreover agreed to continue and arrange the next Mongolia-Canada intergovernmental negotiation on Foreign Investment Promotion and Protection Agreement (FIPA), where the first round of negotiations took place in Ulaanbaatar in January 2009.

Although Canada recognized Mongolia in 1964, the diplomatic relations were established on November 30, 1973 and the General Consulate of Mongolia was opened in Toronto in 1998 and by expanding its status, the Office was enlarged as the Embassy of Mongolia to Canada in 2001.

On the other part, the Honorary Consul of Canada to Mongolia was appointed in 1997, and the Canadian Office of the Trade Commissioner Service was opened in Ulaanbaatar in 2008 to promote Canada's trade and economic interests in Mongolia.

Link to article


Mongolia, Germany Celebrate 40th Anniversary of Diplomatic Relations

Ulaanbaatar, February 6 (MONTSAME) This ceremony took place on Wednesday in the Ministry of Foreign Affairs to launch the celebration of the 40th anniversary of the diplomatic ties relations between Mongolia and the Federal Republic of Germany.

The Minister of Foreign Affairs L.Bold and the Charge d'affaires of Germany's Embassy in Mongolia Mr Burkhard Ducoffre made the opening remarks, expressing a satisfaction with expanding of the bilateral relations and cooperation in all spheres and reaching a volume of comprehensive partnership.

The same day, a photo exhibition named "World Heritage Sites in Germany" opened. Co-organized by our Foreign Ministry, the Mongolian and German National Commissions of UNESCO and Germany's Embassy in Mongolia, this exhibition will last for two months. It will be mounted in the German Embassy, Mongolia's State University (MSU), Mongolia's University of Sciences and Technology (MUST) and other places.

Our countries established the diplomatic relations on January 31 of 1974.

Link to article


Mongolia Signs Educational Exchange Deal with Singapore Institute of Management

Ulaanbaatar, February 6 (MONTSAME) The Ministry of Education and Sciences together with the Singapore Institute of Management /SIM/ established a mutual understanding memorandum in Singapore Monday. 

This document was inked by L.Gantomor MP and Education and Sciences Minister, and by Mr Lee Kwok Cheong, a professor of the SIM.

The sides intend to make sample program of English, run vocational trainings, assist in organizing trainings in professional and management, exchange specialists and students, take part in programs between Mongolian universities and the SIM, and collaborate in inter-sectors of education and sciences.

Mr Cheong thanked the Minister for the visit and underlined an importance of such events in a further cooperation.

Link to article

Back to top


Social, Environmental and Other

Quarantine in Sukhbaatar continues

February 6 ( Due to spread of foot and mouth disease in Sukhbaatar aimag approximately 100 cattle have been destroyed. The first evidence of the disease among cattle was found on January 27th. Since over 90 cattle of eight cattle farmer in Ongon, Naran and Dariganga sums in Sukhbaatar aimag were affected with the foot and mouth disease and destroyed. Those cattlemen are settled at the same area neighboring each other was the reason for the spread of disease as foot and mouth is spread rapidly among animals in short period. Foot-and-mouth disease is contagious that is affected among cloven-footed animals but also spread to person. So now Sukhbaatar aimag administrative department and National Emergency Management Agency has set quarantine in Ongon, Naran and Dariganga sums in Sukhbaatar aimag due to the spread of foot-and-mouth disease taking several urgent actions. 

The Governor of Sukhbaatar aimag, J.Batsuuri spoke about the deadline of quarantine, and current situation in the territory "Spread of the disease eases down. Situation is relatively relaxed. But quarantine continues so far. There is a scheduled period for it according to law. Therefore the law will be followed." 

According to law, quarantine should be loosed two weeks after the latest occurrence of foot-and-mouth disease. 

There is higher risk of spreading foot-and-mouth disease through pastureland from Mongolian antelope to cattle. Thus, it is banned to allow cattle, animal products and raw materials and fodder out of the epidemic center.

Link to article


An innovative approach to development for Mongolia's future

by Burak C. Inanç, acting resident country director, Mongolia

February 5 (Poverty Reduction Blog, Millennium Challenge Corporation) One project of the Mongolia Compact sought to address the high and growing incidence of non-communicable diseases and injuries.

MCC's five-year, $285 million compact with Mongolia came to an end in September—but our cutting-edge approach to development will live on.

The Government of Mongolia recently announced an initiative that validates MCC's model: It will integrate management and business practices from MCA-Mongolia into its National Reformation Committee (NRC) to help sustain compact projects, as well as develop and oversee the implementation of future development projects.

The Government of Mongolia recently decided to invest $1.5 billion to further develop such sectors as transportation, agriculture, land, natural resources, health, vocational education, energy, technology, and green development to spur economic growth. These national programs require forward-thinking design and implementation, and the Mongolian government recognized that our model is a good example of smart development programming. MCC emphasizes pro-investment policies, solution-led approaches and innovation.

Building upon MCC and MCA-Mongolia's example, the government plans to base new development projects on sound economic logic, using the economic rates of return analysis championed by MCC, as well as implement transparent and competitive procurement processes. Mongolia is also adopting MCC guidelines for gender integration, environmental and social assessment and rigorous monitoring and evaluation of projects.

Moreover, Batbaatar Bayangerel, the MCA-Mongolia Acting Chief Executive Officer, accepted a leadership role within NRC and will help oversee its new approach to development.

This kind of influence often doesn't receive as much attention as other facets of our relationship with partner countries, but it is just as important. By adopting MCC's approach, countries position themselves to make their future development more beneficial to their citizens and to sustain the impact. And for MCC, it means one of our core principles—helping countries be the drivers of their own development—will continue to have an impact long after we leave.

Link to post


Asia Foundation Announces Inaugural 2014 Asia Foundation Development Fellows

San Francisco, February 5, 2014 — The Asia Foundation, the premier international development nonprofit in Asia, today announced the inaugural 2014 participants of theAsia Foundation Development Fellows: Emerging Leadership for Asia's Future program. The five men and five women – an accomplished group of inspirational young professionals working in government, nonprofit organizations, social enterprises, and media representing nine Asian countries – will take part in this new initiative designed to support emerging development leaders in Asia. Increasingly, across the region, a new generation of reform-minded individuals are creating lasting solutions to Asia's most critical development issues.

The 2014 Asia Foundation Development Fellows are:

·         Badruun Gardi (Mongolia) – Mr. Badruun Gardi, 26, is Executive Director of the Zorig Foundation, addressing issues of good governance, youth and education, and community development in Mongolia.

Link to release

Back to top


Munkhdul Badral Bontoi

Founder & CEO


Mobile: +976 9999 6779

Skype: mogibb

P Please consider the environment before printing this e-mail.


No comments:

Post a Comment