Monday, December 1, 2014

[MNT reacts to unity gov't, SouthGobi sale in standstill, Mongolia redeploys to Afghanistan, and Mongolia to chair IDEA]

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Monday, December 1, 2014

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Overseas Market

Mogi: TRQ closed -5.78% to US$3.26 (Black Friday half-day trading), -3.25% to C$3.72. News of unity government should be a positive on Monday

Rio Says Won't Be Distracted by Glencore From Returns

By David Stringer

November 29 (Bloomberg) Rio Tinto Group (RIO) won't allow the prospect of a new approach from Glencore Plc to deflect it from plans to give more cash back to investors.

"I'm going to be very careful going forward that I don't allow people to be distracted," Chief Executive Officer Sam Walsh said today in a phone interview. "The best thing for this company, the best thing for our shareholders, is to continue to do what we say we are going to do, and I've been very clear -- I'm committed to shareholder returns."

Rio rejected the July approach, though hedge funds including GLG Partners were told this month in London by former JPMorgan Chase & Co. (JPM) dealmaker Ian Hannam a merger is all-but-inevitable, according to people familiar with the meeting.

While Glencore is effectively barred under U.K. takeover rules from a new bid until April, sentiment toward a merger is improving among investors, according to Macquarie Group Ltd.

With commodity prices tumbling, giving more cash to investors is seen as part of Rio's strategy to bolster support from holders. The company today deferred plans to approve a new $1 billion Australian iron ore mine and lowered its 2014 expenditure estimate to less than $8.5 billion, the lowest since 2010 and below its August forecast of $9 billion.

Better Manager

A decision by Glencore (GLEN) to halt production at its Australian coal mines for three weeks in mid-December amid weak prices has demonstrated that it could be a better manager of Rio's iron ore operations, Sanford C. Bernstein & Co. analysts led by London-based Paul Gait wrote in a Nov. 17 note.

Iron ore has tumbled 47 percent and fell below $70 a metric ton on Nov. 25 for the first time since June 2009, as the largest suppliers expand output. The market needs to absorb a surplus of about 110 million tons next year, almost double the 60 million tons in 2014, Goldman Sachs Group Inc. estimates.

Rio, the second largest supplier, will increase iron ore output to 350 million tons by 2017 even without sanctioning the potential Silvergrass mine, the company told investors today at a Sydney seminar.

"Sometimes, people in the audience think they know better," Walsh said in the interview, speaking from Sydney. "Well, it's actually the people on the field -- the coach, or the CEO -- who have the clear vision as to how the game is actually being played."

'Sensible Approach'

Rio's project deferral follows a decision this week by BHP Billiton Ltd. (BHP), the world's biggest miner, to trim capital outlays to $13 billion in fiscal 2016, down more than 40 percent from 2012. Fortescue Metals Group Ltd., the fourth-biggest iron ore producer, said today it would halve capital expenditure to $650 million in fiscal 2015.

"Without capital expenditure cuts they would've been eating into capital to maintain their dividends next year, so it's very important that they've delivered on that," Michael McCarthy, chief strategist at CMC Markets in Sydney, said, referring to Rio. "It's a sensible approach in the current environment."

In August, Rio raised its first-half dividend 15 percent to 96 cents a share. The "quantum and form" of additional returns to be announced in February will be determined by the board, Chief Financial Officer Chris Lynch said today.

Declining prices of everything from iron ore to oil are pressuring the largest commodity producers, meaning spending cuts may be required to meet pledges on returns, according to UBS AG. "We are not wobbly, we are very firm on this and that's what I try to emphasize," Walsh said in the interview.

Mongolia Mine

Rio shares rose 1.8 percent to A$59.10 in Sydney trading, narrowing their decline this year to 13 percent. The S&P/ASX 200 index fell as much as 1.6 percent and BHP declined as much as 4.2 percent. Rio dipped 0.7 percent to close at 2,992.5 pence in London trading.

An underground expansion at Mongolia's Oyu Tolgoi, a project that would make it the world's third-largest copper mine, may not begin production until 2019 at the earliest, Rio said today in a presentation.

The value of the mine was written down by $4.7 billion in March, when Rio said it may need to take a further $800 million impairment on the project if the expansion is delayed beyond March 2015. "Never say never, but there are a whole raft of variables taken into account when looking at the carrying value of our assets," Walsh said today in the interview.

Commitments from lenders for $4.2 billion needed to help fund the development expired after a Sept. 30 deadline to reach an agreement was missed, Rio-controlled unit Turquoise Hill Resources Ltd. said last month in a statement.

Link to article


1878 trading flat at HK$3.85

Deadline for SouthGobi Stake Sale to National United Extended

By Michael Kohn

Dec. 1 (Bloomberg) -- The initial Nov. 30 deadline for National United Resources Holding Ltd. to buy a 29.95% stake in SouthGobi Resources Ltd. passed without agreement.

* National United, SouthGobi extended deadline to 5 p.m. Hong Kong, Dec. 2

* Long Stop Date has passed and "certain agreements" have not been met: statement

* Extension of Long Stop Agreement under discussion: statement

* Completion of sale subject to conditions

* NOTE: National United agreed to buy the stake in SouthGobi from Turquoise Hill Resources in July.


Link to NUR release


YAK closed +1.79% to C$1.14, MNGGF -2.88% to US$1.01 Friday

Mongolia Growth Group Ltd. October 2014 CEO Communiqué to Shareholders

Toronto, Ontario, November 28 (FSCwire) - Mongolia Growth Group Ltd. (Canada TSXV: YAK  and  USA:  MNGGF), a real estate investment and development company benefiting from the dynamic growth of the Mongolian economy via ownership of institutional-quality commercial property assets in the capital city of Ulaanbaatar, Mongolia is pleased to announce the release of its October 2014 Shareholders Letter. 

CEO Communiqué to Shareholders:   

Dear Shareholders,

Since our September update, we have been active on multiple fronts.  In this month's Communique, I would like to focus two key MGG strategic components, which cover the recurring revenue portfolio and value creation development sides of our business. 

a)  The Real Estate Investment Portfolio (assets owned and managed by MGG) 

The re-alignment of our real estate portfolio for commercial property in the downtown area remains our primary objective.   

As such, of our 54 properties currently comprised of retail, office and residential holdings, we are currently selling our 4 remaining residential properties, to achieve our strategic objective of not owning any residential property in the future. 

In addition, as leases expire, we will continue to evaluate whether to renew with existing tenants or seek new tenants more suitable for updated leasing prices going forward. 

All financial proceeds from sales are being recycled into our downtown real estate developments, where management believes it can achieve the highest return-on-capital within our spectrum of available investments. 

b)  Real Estate Developments (assets developed and constructed by MGG for the portfolio) 

Our central focus remains the company's largest and most complex project to date, the redevelopment of the Tuguldur Center in downtown.  

In our previous update, we highlighted the existing land and buildings that MGG purchased in February 2014 and the architectural images of what is being built.   In this update, we will present you with more detail of the construction progress and pictures. 



Our vision for Tuguldur Center is to create a permanent complex for mixed-use development.  However, this permanent long-term development requires years of planning and preparation of a substantial master plan.   Therefore, we are proceeding with a high-yielding Interim Development for the first 5 years, which will be undertaken in measured low-cost stages in order to maximize cash flows to the parent company.     

MGG will provide all funding and lead the development from start to finish. 

The Interim Development 

Stage 1 

This stage consists of the redevelopment facing the Peace Avenue frontage. 

·         Master planning and design are complete. 

·         Stage 1 construction commenced in July 2014 and was completed in mid-November 2014. 

·         Stage 1 occupancy occurred during November, with some early partial handovers for major Tenants, who need to commence interior fit-outs early. 

·         Stage 1 Pre-Leasing has progressed very well and we are now nearly fully leased, which will generate significant new revenue.

Link to full release


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Local Market

MSE News for November 28: Top 20 -0.05% to 14,919.19, Turnover 35.2 Million

Ulaanbaatar, November 28 (MONTSAME) At the Stock Exchange trades on Friday, a total of 36 thousand and 629 units of 21 JSCs were traded costing MNT 35 million 220 thousand and 829.00.

"Khokh gan" /16 thousand and 840 units/, "Genco tour bureau" /10 thousand and 044 units/, "APU" /5,168 units/, "Hai Bi Oil" /2,250 units/ and "State Department Store" /596 units/ were the most actively traded in terms of trading volume, in terms of trading value were "APU" (MNT 18 million 966 million and 450), "Gobi" (MNT three million 428 thousand and 700), "Atar-orgoo" (MNT one million and 904 thousand), "Khokh gan" (MNT one million 852 thousand and 400) and "Bayangol hotel" (MNT one million and 682 thousand).

The total market capitalization was set at MNT one trillion 466 billion 111 million 909 thousand and 231. The Index of Top-20 JSCs was 14,919.19, decreasing 7.34 units or 0.05% against the previous day.

Link to article


MSE Weekly, November 24-28: Top 20 +0.57%, Turnover 2.3B, T-Bills 2.3B

Ulaanbaatar, November 28 (MONTSAME) Five stock trades were held at Mongolia's Stock Exchange November 24-28 of 2014. In overall, two million 132 thousand and 095 shares were sold of 42 joint-stock companies totalling MNT four billion 592 million 712 thousand and 209.80.

"State Department Store" /one million and 840 thousand units/, "Mon-it buligaar" /178 thousand units/, "Khokh gan" /34 thousand and 440 units/, "Hai Bi Oil" /15 thousand and 250 units/ and "Genco tour bureau" /12 thousand and 452 units/ were the most actively traded in terms of trading volume, in terms of trading value--"Mon-it buligaar" (MNT one billion 273 million and 400 thousand), "State Department Store" (MNT 934 million and 720 thousand), "Material impex" /MNT 26 million and 898 thousand/, "APU" /MNT 20 million 459 thousand and 300/ and "Hai Bi Oil" (MNT seven million 987 thousand and 500).

Link to article

Link to MSE Weekly Trading Report


Mongolia: Government Securities Yield Curve








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Early morning non-cash USD rates: Khan (Buy 1,870 Sell 1,876), TDB (Buy 1,865 Sell 1,876), Golomt (Buy 1,870 Sell 1,876), XacBank (Buy 1,868 Sell 1,897), State Bank (Buy 1,863 Sell 1,896)

BoM MNT Rates: Friday, November 28 Close


















































November MNT vs USD, CNY Chart:


Link to rates


BoM issues 66.6 billion 1-week bills, total outstanding -8.3% to ₮219.7 billion

November 28 (Bank of Mongolia) BoM issues 1 week bills worth MNT 66.6 billion at a weighted interest rate of 12.0 percent per annum /For previous auctions click here/

Link to release


Private sector calls for the public to purchase domestic goods

By B. Mendbayar

November 30 (UB Post) Representatives of small and medium-sized enterprises (SMEs) held a press conference on November 27 to inform the public about the impact of the current economic downturn on SMEs, and to encourage citizens to support domestic manufacturers through the purchase of their products.

The press conference was attended mainly by representatives from food and footwear manufacturers. The representatives underlined that the main difficulty faced by manufacturers is the sharp decrease in sales resulting from the ongoing economic downturn, and appealed to all consumers – from the highest officials of government to regular citizens – to buy products made by domestic manufacturers rather than imported goods. They highlighted that the increased purchase of domestic goods by Mongolian consumers would result in higher quality products.

The attendees also emphasized that even though the government has pledged to support domestic manufacturers, government officials are not taking decisive measures, resulting in a lack of policy support.

The manufacturers touched upon one prevailing sentiment among consumers, that the prices of domestically manufactured goods substantially exceed those of import goods, asserting that domestic manufacturers do not set excessively high prices. An owner of a local footwear company commented, "I don't think the prices of domestic goods exceed those of import goods. For instance, imported women's knee-high boots are sold for between 800 to 900 USD under the guise of a brand name. However, citizens can buy knee-high boots as fashionable as those 'brand' ones for much lower prices."

They asserted that a study of retail purchases conducted by manufacturers showed that though entities manufacture import substitution goods, the manufacturing of such goods are driving some companies to the verge of bankruptcy. According to the study, daily sales of SMEs have decreased by around 65 percent, and 60 to 70 percent of SMEs are experiencing declining sales.

Link to article

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Politics & Legal

Mongolia Forms 'Grand Coalition' in Bid to Lift Flagging Economy

By Michael Kohn

December 1 (Bloomberg) Mongolia's opposition agreed to join the ruling Democratic Party in a "grand coalition" government, a move that may ease political tensions and help boost the country's flagging economy.

The Mongolian People's Party agreed at the weekend to accept an offer by new Prime Minister Chimed Saikhanbileg to join a coalition, MPP Secretary Bulgantuya Khurelbaatar said by text message. Saikhanbileg took over last month after his predecessor was ousted in a no-confidence vote.

Resource-rich Mongolia is seeking to get its economy back on track, three years after posting record growth of 17.5 percent. The pace of expansion slowed to about 7 percent this year with foreign investment sinking amid a protracted dispute between the government and Rio Tinto Group over financing for an expansion of the Oyu Tolgoi copper and gold mine.

The DP has 35 lawmakers in the Great Hural, while the MPP has 26. Other parties in the 76-seat parliament have yet to respond to invitations to join the coalition.

Saikhanbileg has vowed to revive the economy and has urged all parties to end political divisions. A consensus between the two largest parties could ease pressure on the new prime minister to finalize talks with Rio Tinto over the mine.

At the center of the dispute is the $4.2 billion project finance package to expand the mine's underground section. Mongolia, which has a 34 percent stake, has raised concerns over issues from tax payments to cost overruns. The open pit, in operation since July 2013, has been used by nationalist backbenchers seeking to core points with voters.

Similar Coalitions

Mongolia has seen similar coalitions before. On several occasions between 2004 and 2012 the MPP and the DP formed unity governments after tight elections left the MPP with narrow majorities in parliament.

"I think it's a major plus because if you look at the recent past the only government to strike a major deal was the grand coalition government back in 2009 when they did the Oyu Tolgoi investment agreement," said Bilguun Ankhbayar, chief executive of Ulaanbaatar-based Mongolia Investment Banking Group LLC.

"It's likely we'll see more milestone deals while this coalition government is in place," Bilguun said.

Foreign investment plunged 82 percent in the first nine months compared to the same period in 2012. The tugrik is trading close to a record low in August, having declined 25 percent against the dollar over the past two years.

Turning the economy around requires a change in investor sentiment which can only be achieved by settling the Oyu Tolgoi dispute, said Bilguun.

"If both parties are together it will give them more confidence to go ahead and finalize the deal," he said.

Link to article


MPP Conference approves entering Saikhanbileg cabinet

Ulaanbaatar, December 1 (GoGo Mongolia) MPP members finally came to a decision on whether to enter new cabinet. DP has reached opposition MPP members several times since Ch.Saikhanbileg's appointment as PM. MPP was holding back on their decision ever since PM handed over proposal letter to collaborate with their group at Great Khural.

MPP Conference decision approves MPP members to collaborate with new government citing to the need to collaborate in order to efficiently address the issues country is facing currently.

Majority of conference participants voted for collaboration with new cabinet.

Link to article


Cabinet Meetings to Be Held Every Monday from December 1

November 28 ( The 28th Prime Minister of Mongolia Ch.Saikhanbileg issued an ordinance to host the Cabinet meeting of the Government on every Mondays effective from December 01, 2014.

According to new regulation, the Cabinet meeting will start on Mondays at 04:00 pm and the meeting resolutions will be released on Tuesdays.

The Cabinet meeting chaired by the 27th Premier N.Altankhuyag used to meet on every Saturdays in August 09, 2012 - November 05, 2014 and the previous Cabinet chaired by the 26th Premier S.Batbold had met on every Wednesdays in October 29, 2009 - August 09, 2012.

Link to article


Saikhanbileg's appointments to law enforcement, tax agencies raises questions

By Ch. Khaliunaa

November 29 (UB Post) On Wednesday, the Cabinet held its regular meeting, during which Prime Minister Ch.Saikhanbileg replaced and appointed new heads of some law enforcement organizations.

Chairman of the General Authority for Implementing Court Decisions S.Buyandalai has been dismissed, and B.Bilegt was appointed the new chairman.

Chairman of the Central Intelligence Agency B.Ariusan was dismissed and replaced by B.Khurts, and Chairman of the Central Police Department S.Baatarjav was dismissed, with R.Chingis becoming the new chairman.

T.Batmagnai was dismissed from the position of chairman of the General Department of Taxation, and B.Ariusan was appointed as his replacement.

The appointments of the new Prime Minister raised some controversy.

Appointing B.Khurts as chairman of the CIA, when he wasn't dismissed by the Parliament from his position with the Independent Authority Against Corruption raised problems for the new Prime Minister.

Critics say that appointing the former Vice Chairman of the Authority Against Corruption (ACC) as the new chairman of the Central Intelligence Agency (CIA) violates the Constitution of Mongolia. According to law, the appointment or dismissal of a chairman or vice chairman of the ACC should be submitted to Parliament for discussion and approval.

There are media reports that the issue will be reviewed by the Constitutional Court.

Speaker Z.Enkhbold decided to hold a meeting of the Standing Committee on Justice to discuss the dismissal of B.Khurts from the position of vice chairman of the AAC, and submit the results of the committee's discussion to Parliament.

On Thursday, Advisor to the Prime Minister Ts.Munkhtur made a statement to journalists, saying that appointing B.Khurts as chairman of the CIA did not violate the constitution.

"According to the law, the issue of appointing and dismissing a chairman or vice-chairman of the AAC should be submitted and discussed by Parliament, but we spoke with the vice chairman of the AAC on his appointment as chairman of the CIA. If the person requests a dismissal, it doesn't violate the law. The Prime Minister has the right to make appointments without waiting for the structure of the new government. State work has to continue," said Ts.Munkhtur.

Link to article


Primary diagnosis from the new Prime Minister

By Jargalsaikhan "De Facto" Dambadarjaa

November 30 (UB Post) Having been appointed as Prime Minister, Ch.Saikhanbileg said, "The new government shall have three areas of focus: economy, economy, and economy," and stressed the need to, "diagnose our economy as a whole system." There is an apparent need to diagnose our economic system, find out why there is a decline, and what treatment can be applied.

An economic system concerns the location of factors of production, the allocation of value that has been created, and the use of goods and services that have been produced. The history of mankind shows that an economic system is most optimal when it is based on free choice and a free market. A free market is truly achieved only in countries that protect private property. Only in a free market can people take part in labor relations that allow them to freely choose and own what work they do.

There is no such thing as free exchange, selling and buying land, or a capital market in a socialist society because the factors of production, land, and capital belong to the government. There is also no stock exchange. For these reasons, for half a century we have abandoned the socialist path we once followed.

A free market can only be achieved in a country that has a political system based on the choices of the majority of citizens and an election system that provides an opportunity for evaluation and improvement in a certain amount of time. A society that has such a political and economic system is described as democratic and capitalist. Twenty years ago, Mongolians chose to build such a society and started giving the ruling power to a single political party by holding a democratic, free election.

However, the privatization process that started strong in the beginning of the transition period gradually stopped. Moreover, many new state-owned companies have been established since 2010. We have deviated from our chosen path, and sometimes even tend to step back. Increasing government involvement rather than supporting private property relations has become favorable for the ruling political parties.

The increased number of state-owned companies have led to the private sector slowly losing its competitiveness, which was only starting to be built. It allows the ruling political parties to fulfill their self-interests by using the power they have. Public scrutiny, which is the soul of a democratic system, has been missing in Mongolia. As a consequence, there has been no scrutiny and supervision of state property. It created a system where profit can be made from public tenders, where political parties have already set their boundaries. People have been kept silent through social welfare.

Politicians are keeping the secret that the political parties that have obtained the ruling power, one after another, get the enormous sums of money they use for political party and campaign financing. Public service has been turned into currency by those who collect the biggest donations, promise seats and positions, win elections, and make payments afterwards. Consequently, the walls of Mongolian government are now covered by the moss of corruption.

The economic difficulties that have been built up for years, which were mentioned by Prime Minister Saikhanbileg, trace back to the secret financing of political parties. We politicized the Oyu Tolgoi project, promised free cash during election, and shocked investors by passing the strategic sector investment law and the "long-named" law just before the 2012 parliamentary elections. Also, the investment that came from mining exploration stopped. A total of 106 licenses were withdrawn, which led to many consequences, while the unhealthy politicization of Oyu Tolgoi kept going. The development at the Tavan Tolgoi deposit was also suspended. Politicians continued holding press conferences that sounded like pure populism and there was a lot of mistreatment and abuse of foreign and domestic investors.

The main cause of Mongolia's economic decline is corruption in governance. It can be argued that the source of corruption is the financing of political parties. This is the result of an accurate diagnosis.

It is true that Mongolians are reaching into their pockets to pay for the consequences of this disease. Hence, our economy is gradually declining. As a result, the Mongolian tugrug declined by 30 percent within one year and the inflation rate reached 13 percent. The next economic crisis is imminent.

In order to cure this disease, the parliament has to pass certain laws around political party financing. Until then, a significant step that the Prime Minister can take is to refuse appointing a member of parliament as a minister in his cabinet.

It looks like the Prime Minister will not waste any time to reduce state ownership and provide a mechanism for scrutiny. It is a wise decision to make it clear who owns what state properties and turn state-owned companies into shareholding companies with public ownership. It is also good that he plans to start economic diversification, supporting revenue from tourism, information technology, and agriculture. However, the important thing is promoting competition in the private sector and creating an environment that supports equality within these industries.

Prime Minister Saikhanbileg might acquire a huge, long-term, soft loan from China to cover the upcoming loan payments. The loans could last 30 to 40 years and will finance infrastructure projects including railroads. It means that Mongolia will be trading with our two neighbors using their money.

The government is about to start providing support when a commercial bank attempts to raise capital from abroad. There have also been promises to support the private sector, improve the business environment, pass laws for special permits and licenses, and ease tax and customs difficulties. They will be significant initiatives to overcome economic decline, even if the government only manages to start them. However, will the political party negotiations – not knowing how and when they will end – provide an opportunity to work in such an unrestrained manner? If living standards improve and people are living nicer lives, the economic system is functioning correctly.

Trans. by B.AMAR

Link to article


Mongolia's shortage of leaders

November 29 (UB Post) Mongolia has been functioning as a democracy, which is said to be the most correct form of governance, for the last 25 years. Candidates for leadership positions are elected by the public, in consideration of their skills, social influence, status, and reputation. Yet, Mongolia's development and politics are failing because of a lack of leaders capable of making good decisions.

The nominations of R.Amarjargal, Ch.Saikhanbileg and D.Ganbat for the next Prime Minister raised a commotion, but this controversy was raised long before these candidates were selected. In the last presidential election, when wrestling champion B.Bat-Erdene was nominated by the MPP, other parties were reluctant, as if asking, "Isn't there anyone else?" When he lost, even his party members were content with some 40 percent of the votes, as if they knew they would lose. From one perspective, this is an acknowledgement that Mongolia is facing a shortage of leaders, and it was a futile choice aimed at playing with the minds of voters by nominating a non-traditional candidate for political office.

The newly appointed Prime Minister, Ch.Saikhanbileg, noted that Mongolia isn't short on leaders but short on decision-making capacity, and announced that he would form a government consisting of capable members.

Even before this government has been created, Mongolia has accepted his announcement as a solution. It isn't definite that long-delayed issues will be solved as soon as the new Prime Minister begins governing. The reason for this is because the devices he says he will employ to resolve political dead ends, including putting strategic mineral deposits into circulation, resolving investment issues and the economic crisis, and changing laws linked to delays, aren't new ideas. So far, no one has expressed reasonable, strong, or unique positions on these topics of concern and national debate. No one has gained supporters by standing strong and being committed to their ideals. MP G.Uyanga is the only one who has been consistent with her initial position, particularly about necessary changes to the Constitution.

Ch.Saikhanbileg repeated generic ideas for overcoming Mongolia's economic crisis with mutual understanding, resolution, and effort. Mongolia's economy made up of only ten billion USD would easily be revived if projects based on the Oyu Tolgoi and Tavan Tolgoi deposits were mobilized. Political parties have said that they aren't able to achieve results on these projects because the people making decisions lack mutual understanding. It may be better for Mongolians to not expect much from Ch.Saikhanbileg's new government.

Demand for the position of MPP party leader was still high even after former Prime Minister and Chairman of the MPP S.Bayar resigned from his post for health reasons, and U.Khurelsukh rejected the appointment for valid reasons. The party faced difficulty in selecting their party chairman from potential candidates. It wasn't the agony of having to choose from many good candidates, but from many bad candidates.

A leader's individual characteristics do influence change and the development of a society for the better or the worse. Former President of the U.S.A. Ronald Reagan was an actor who helped redefine the purpose of government, pressured the Soviet Union to end the Cold War, and solidified the conservative agenda for decades after his presidency. A leader's individual characteristics are important in impacting the public, being acknowledged, receiving support for policy and decisions, and reaching solutions. One theory about individual leadership traits states that all the best leaders possess common characteristics. According to the theory, the qualities that political leaders must have are: having a sharp mind, being consistent in their opinions, proper behavior and management, working hard to achieve their objectives, being likeable, being responsible, and possessing strong presentation skills. Even the tone of their voice is said to be important.

The professional research institute New Era Center organized a survey of the top ten politicians, for social, economic and political research, in the first quarter of this year. The best politician only received a 12.3 percent approval rating, while the politician with the least votes got 2.3 percent. This indicates that Mongolia has too many weak leaders. Only two politicians were able to receive more than ten percent approval, which is quite unfortunate for leaders who impact the public. Our leaders should receive at least close to fifty percent support in polls like this. Leaders with such weak support are making unclear decisions and turning solutions into dead-ends.

Some Mongolians who hang on to authority and privileges, while giving and taking bribes after somehow acquiring an official position, believe that they're leaders. Others mistake themselves for leaders after participating in a political event, or being labeled celebrities. Leadership is based on principles of dominance and subordination as well as values, beliefs, ethics, character, knowledge and skill.

When and how will Mongolia find its true leaders? A crisis doesn't necessarily bring out someone's true leadership qualities. During the process of learning about democracy, many failures and challenges have arisen, including the current economic crisis, mineral exploitation, corruption, and an inadequate constitution and election procedures. Isn't it now time to resolve these issues with the help from competent leaders?


Link to article


Ts.Nyamdorj: I will not join a fat group of 73 MPs

November 30 (UB Post) The following is an interview with MP Ts.Nyamdorj, a member of the Mongolian People's Party (MPP), about timely issues.

Rumors about MPP entering the government have become a hot topic. What's your position on this?

I'm strongly against it. I've expressed my disapproval at the party and board meetings, as well as at the Privy Council.

Firstly, the government wouldn't have any opposition force. Secondly, a fat group of 73 members, apart from the three independent candidates, would be formed, meaning Parliament will no longer have ethics. Uniting everyone and shutting them up under the name of a coalition shows hidden motives to make several perilous decisions.

For example, firstly to raise the debt ceiling. For two years, the government has been saying that taking loans is wrong and we should utilize domestic opportunities. Now, we're still increasing the debt ceiling.

Secondly, Tavan Tolgoi Company was protected under management agreement and is about to get approved for privatization. Resolution No.268 was issued, something about addressing tenders about preparation work. Three companies were mentioned: MAK, Energy Resources LLC, and Tavan Tolgoi Joint Stock Company of D.Bat-Erdene. It seems that one of these three companies will be given Tavan Tolgoi Company. Works shouldn't be so vulgar.

Thirdly, eliminating the opposition force will make the public's choices pointless.

I'm opposed to MPP entering the government because many issues that involve conspiracy and should never be mixed with the principle of statehood are being discussed.

Fourth, MPP and the Democratic Party (DP) have co-ruled the government for many years. DP always backs off before elections and Mongolia switches back to the previous government. N.Altankhuyag stayed in the former government for two and a half years. Yet, six months after becoming Prime Minister he said he was cleaning the mess of the previous government. There's no proof this government will not do the same.

Privy Council met about this issue last Wednesday. What's the council members' opinion on this?

Members had different opinions. The majority thought that forming a coalition is inappropriate. Ordinary party members were strongly against a coalition. Last Friday, I received messages saying that members were ready to quit the party if a coalition is formed.

I've never encountered something so strange in my 20 years working in politics. A party chairman phoned me saying that he met with his 146 members and would quit the party if the government forms a coalition.

I reminded the party administration to listen to party members. Even the public is against it. A political decision can't be made without considering the public opinion.

When ordinary party members are disapproving, higher 300 members shouldn't decide political issues through a conspiracy for some five or six minister's seats in a government limited for one and a half years.

If party members truly support the idea, they should go and work with the public in local regions, win the majority of seats, and establish its government by promoting members into ministers.

Baga Khural (party meeting) mainly consisted of city factions. Is there a consistent number of local representatives? Is this also part of the conspiracy you mentioned?

It could be. I still believe that members of the Baga Khural would listen to opinions of ordinary members and make correct decisions after evaluating political conditions.

Things can completely turn around. We could support correct policies of the DP's government. For example, work on the Elections Law.

The government could work this way. It isn't our ultimate goal to get into the government, appoint some people as ministers, and serve their wills. If DP and MPP cooperate, they should accept our good ideas and turn it into work.

If a fat group of 73 members is going to be formed with hidden motives, I will not join that group.

At the 2005 presidential election, everybody voted for N.Enkhbayar and ignored DP's candidate because of a fat 62-member group, established at the time. This is the disgusting conspiracy of politics. That's why DP couldn't make a move.

I'm strongly opposed to DP entering the government because the same act is being conspired. I will see the end of this even if I become a loner or despised.

The government shouldn't form a 73-member conspiracy group and stain the history of Mongolian Parliament by executing works to fulfill an oligarchy's desires.

Isn't DP being cautious that MPP would cause problems again if it isn't included in the government and continue functioning in the old way?

Whenever a violation against the law is submitted, it should be opposed. S.Bayartsogt passed the debt ceiling at 40 percent during MANAN (a coalition of MPP and DP).

Instead of cutting costs domestically, the DP is only talking about getting loans and plunging into debt. MPP determined that it's wrong that they've been putting more debt for two whole years.

Now, they want us to increase the debt ceiling because they offered some ministers' seats. Aren't they ashamed? Instead of being two-faced, they should just scram from politics.

The public has observed us for two years. It's true that Mongolia's under debt pressure, the loans were wasted, and almost nothing is left. Are we supposed to say that there's no other choice than plunge into debt because they offered some ministers' seats? They shouldn't be so thick-skinned.

If a coalition with DP is formed, will you leave your party?

If something so vulgar is formed, I will have no place to stay in this party. This does mean going against party members and supporters. I can never get along with an administration that makes that decision.

How are you determining that certain number of ministers' seats will be given to MPP if the coalition is formed?

I don't see this issue from a legal perspective. All parties were proposed to have multiple wives. For instance, will an agreement between DP and MPP be established or among DP, MPP, Civil Will Green Party and Justice Coalition? Nobody could reply when I inquire about the form of the agreement. When they rushed into announcing a Baga Khural, I told them at least a draft agreement with mutual understanding should be developed and presented at the Baga Khural before deciding. However, a conference has already been announced. Things shouldn't be taken so lightly.

Why aren't the MPP leaders expressing their position on this issue?

At the end, there will not be anyone to take responsibility. They'll just sit back saying a Baga Khural is already scheduled. This is a method for escaping responsibility by saying it was decided by the majority of votes.

Chairman of MPP faction in Parliament S.Byambatsogt stated that this workload should be carried by DP itself and demanded them to take responsibility in 2016 before the public.

Secretary General of MPP J.Munkhbat conveyed that we exited the starting point without DP so we should arrive at the finish line without DP.

We have to be a man to our words and take responsibility for what we say.

How does the MPP Chairman feel about this?

The chairman only said it was inappropriate. Party chairmen are supposed to have a clear standing on these sorts of issues. They should properly express their thoughts, ask members to support his idea, and initiate on taking responsibility.

He shouldn't be so ambiguous. He should be shouldering responsibility, especially during this politically risky time with high possibility of mistakes. Now, we'll see if he can shoulder the workload. If he can't, we'll have to raise issues about it. Taking an oath of allegiance with the state means risking your life in times of need.

Leading a party means risking your life for the party and taking responsibility. A party can't survive by being indecisive, making wrong decisions by following the majority or by plots. Previously, we also had an ambiguous leader. Now, it's enough.

Why are party chairman selections off the mark?

That's because meetings are little plays that have been organized beforehand.


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Golomt Bank Named Bank of the Year 2014 – Mongolia by The Banker

November 28 (The Banker) Sound asset liability management allowed Golomt Bank to achieve sky-high net profit increases in 2013, despite a stuttering global economy.

"Sluggish growth globally and in China, which has a direct impact on the Mongolian economy, as well as delays in major mining projects and plunging foreign direct investment were tough on the [Mongolian] banking system as a whole," says Ganbold Galsan, CEO of Golomt Bank.

However, Golomt Bank managed to increase net profits by 117% in 2013 on 2012's figures. The financial institution's overall deposits also grew considerably and reached $1.31bn in 2013 – the largest deposit share (22.6%) in Mongolia's banking system.

Golomt Bank strongly supports local small and medium-sized enterprises via collaborations with the Ministry of Industry and Agriculture. Golomt is the only Mongolian commercial bank funding SMEs in the wool, cashmere, greenhouse, dairy farming and garment industries via the Chinggis bond (Mongolia's sovereign bond) proceeds.

The bank has also been active with regards to credit cards. It introduced a debut MasterCard enabling tughrik payments worldwide and the American Express Gold Card. "Honouring our reputation of being the most innovative bank in Mongolia, we have made a number of advances such as issuing the first American Express card," says Mr Galsan.

Golomt Bank seeks to capitalise on further domestic development. "In the long run, we are confident that aside from the mining sector development, there will be strong growth in Mongolian infrastructure, agriculture and manufacturing," says Mr Galsan.

Internationalisation is also on the agenda. Golomt has signed a memorandum of understanding with China Minsheng Bank to reinforce business links with the mainland. It has also signed a co-operation agreement with South Korea's Daewoo Securities for the joint funding of large-scale projects and has become a founding member bank of UnionPay International to contribute in expanding global settlement services.

"Our bank will be putting great effort into entering international markets to attract investment. We aim to become a strong local bank with a sound global presence. The governance of the bank is reaching international standards, which will increase our competency globally," says Mr Galsan.

Link to release

Link to Golomt release


Mogi: a little harsh for a mistake, this is the problem with our criminal system, instead Monos should be charged with taking care of the children

Monos pharmacist gets two-year sentence for wrong dosage

November 28 ( Monos Pharmacy staff who distributed high dosages of Luminal (phenobarbital) for infants, which resulted in the poisoning and hospitalization of sixteen infants between the ages of four days and three months, were sentenced on Thursday at Criminal District Primary Court II.

A pharmacist from the Ekh Nyalkhas branch of Monos Pharmacy, B.Erdenechimeg was charged with distributing excessive dosages of Luminal to infants and failing to meet her professional responsibility. The court delayed her two-year sentence for two years as she is now pregnant.

A medical staff member of Monos-Ulaanbaatar was charged with giving inaccurate instructions over the phone on how to take the pill, resulting in the poisoning of two infants poisoned. D.Javkhlantugs received a one-year suspended sentence.

The hearing was attended by the parents of infants who were hospitalized.

Parents of the poisoned infants told reporters, "Since the incident, our kids get sick and need to see doctor more than usual. We are afraid of what the side-effects of the poisoning will be in the future."

Link to article



By Michael Gorman, Managing Director, Independent LLC, Mongolia

November 27 -- Independent LLC, the only 100% owned 'down-under' trading company in Mongolia, is proud to introduce the Australian national decadent treasure – the great Aussie meat pie.

Using only the finest carefully selected aged Mongolian fat-free beef combined with a deliciously rich gravy, this irresistible flavorsome parcel is contained inside our signature "Pride" pastry base topped off with a heavenly light puff pastry lid.

Carrying on our "Pride" tradition of fine 'Made in Mongolia' quality sausages, sausage rolls, short and flaky pastries etc, our Aussie meat pies will be available in UB supermarkets from this weekend. As with all our products, we differentiate our pies by the quality of our ingredients. All our pastries are made under supervision by a French Maitre Patissier.

We believe these pies are perfect for the Mongolian lifestyle as they are hand held and will appeal to Mongols as they do 'Down-under' to both Aussies and Kiwis. Essential food for a football match either outside or on TV. Even better with beer.

"I think that I could never spy
A poem as lovely as a pie
A banquet in a single course
Blushing with red tomato sauce
A pie whose crust is oven kissed
Whose gravy scalds the eater's wrist"

Barry Humphries

Available at: Nomin supermakerts, Orgil supermarkets, Sky department store, Home Plaza -2, Good Price supermarkets, Holiday – 1, UB Mart, Sarnaikh supermarkets

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Nomadic Culture and Tourism in Mongolia: Revitalization of Community through Sustainable Tourism

The UNWTO Regional Support Office for Asia and the Pacific (RSOAP) is hosting the seminar, Nomadic Culture and Tourism in Mongolia: Revitalization of Community through Sustainable Tourism on December 16, 2014 in Nara, Japan.

In response to Mongolia's increased focus on tourism, diverse stakeholders gather together to discuss the challenges, benefits, and strategies of developing and promoting sustainable tourism in Mongolia. The seminar will further existing efforts and explore new international partnership opportunities.

Time:            Seminar Session: 10:00 – 12:00
                     Networking Session: 12:00 – 13:00

Location:      Nara Prefecture New Public Hall,
                     101 Kasugano-cho, Nara, Japan 630-8212

Languages:   English, Mongolian, Japanese (simultaneous interpretation)

To register please visit:

The seminar is co-organized by: University of Shiga Prefecture
                                                   Nara Women's University
                                                   Shizuoka University

Under the auspices of: Mongolia Ministry of Culture, Sport, and Tourism (MCST)
                                    Japan Tourism Agency (JTA)
                                    Japan Association of Travel Agents (JATA)
                                    Nara City

(Subject to minor changes)

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Buryatia Requests to Restore Direct Flights between Ulaanbaatar and Ulan-Ude

November 28 ( On November 27, 2014, the Chairman of Ulaanbaatar City Citizens' Representatives Khural (City Council) D.Battulga received the visiting delegation from the Republic of Buryatia headed by the People's Khural Chairman Matvei Gershevich to discuss bilateral partnership and concerning issues between the two countries.

At the beginning of meeting, City Council Chairman D.Battulga introduced the Council structural and organizational frames as well as its implementing works and further plans. Moreover, he proposed to organize a Mongolia-Buryatia Forum between the tourist companies in Ulaanbaatar.

In respond, the Chairman M.Gershevich noted, "Following the latter meeting between the heads of state of Mongolia and Russia, the bilateral cooperation reached in a new stage that caused to boosting frozen trade turnover and economical partnerships. In this regard, we are ready to collaborate with Mongolia at all potential spheres".

Furthermore, Buryatian side expressed its wiliness to restore direct flights between Ulaanbaatar and Ulan-Ude and broaden cooperation in railway sector as well as jointly develop projects on auto road logistics, gasification of natural gas and to supply meat from Mongolia.

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Foreign Ministries of Mongolia, India hold first consultative meeting in New Delhi

Ulaanbaatar, November 28 (MONTSAME) The Ministry of Foreign Affairs and Economic Cooperation of Mongolia and the Ministry of External Affairs of India ran a consultative meeting on November 27 in New Delhi, India.

The first meeting of the Ministries was chaired by the Head of the Department for Asia and the Pacific of the Mongolian Ministry Ch.Bayarmonkh and by a director of the Department for East Asia of the Indian Ministry Pradeep Kumar Rawat.

The sides exchanged information about the political and economic states of their countries and foreign policy priorities. They also touched upon ways of intensifying a comprehensive partnership between Mongolia and India, particularly the relations in defense, trade, economy, education, culture, agriculture and renewable energy.

The sides emphasized an importance of increasing a number of high level interactions, and agreed to organize high level visits in frames of the 25th anniversary of democratic transitions of Mongolia and the 60th anniversary of the establishment of diplomatic ties between. The democratic India has always been rooting for Mongolia's democracy, and will continue to act so, noted the Indian side.

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"Discover Mongolia" Business Meeting Takes Place in Jakarta

November 28 ( The Embassy of Mongolia in Jakarta, the Republic of Indonesia in association with the Pacific Asia Travel Association (PATA) has organized the "Discover Mongolia" Business Meeting with purposes to scale tourism and stimulate local economic opportunity themed "Mongolia - Nomadic by Nature" on November 27, 2014.

The Business Meeting brought leading Indonesian companies majored in tourism and hotel sectors, where Ambassador Extraordinary and Plenipotentiary of Mongolia to Indonesia Mrs. Shagdar BATTSETSEG and PATA President for Indonesia Chapter Mr. Setyono Djuandi Darmono have opened the event delivering remarks on current Mongolia's tourism sector, investment environment and other opportunities.

At the "Discover Mongolia" event about 100 representatives from Indonesian entities, companies and representatives of other sectors were present and following the meeting they were interested in cooperation with Mongolia's tourism sector, in particular, launching winter tourism and requested to organize a series of such events.

Link to article


Mongolia propagandized in IndonesiaMontsame, November 28


NATO Delegates Get Acquainted with Science for Peace and Security Programme Being Implemented in Mongolia

November 28 ( The Government of Mongolia had established an Individual Partnership and Cooperation Program with the North Atlantic Treaty Organization (NATO) in 2012 and under the collaboration, Mongolian Academy of Sciences is co-implementing the Science for Peace and Security Programme.

In the frameworks of the Programme, three projects are being carried out, namely, "Security in Information Communications Technology", "Establishing a Geo-Database for the Restoration of Former Military Sites" and "Perception of NATO in Asia and the Pacific".

Under the Programme, representatives of the NATO are paying a working visit to Mongolia to get acquainted with the projects implementations on November 25-29, 2014.

On November 27, Mongolian Academy of Sciences (MAS) staff hosted an open day for public to introduce the Science for Peace and Security Programme, which took place at the Corporate Hotel in UB with participation of visiting guests, NATO member countries Ambassadors to Mongolia, as well as representatives from Mongolian Ministry of Foreign Affairs and Economic Cooperation, Ministry of Defense, Ministry of Environment and Green Development, Institutes affiliated the MAS and other personnel including the press.

In the spirit of mutual benefit and reciprocity, NATO's partnership with Mongolia aims to promote common understanding through consultation and cooperation. It is based on a shared commitment to peace, democracy, human rights, rule of law and international security.

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NATO officials visiting here Montsame, November 28


Mongolia to Deploy 120 Servicemen in Second Stage of "Resolute Support" Mission in Afghanistan

November 28 ( The First Shift of Mongolian Armed Forces with its 120 military servicemen to participate in the second stage of "Resolute Support" mission in Afghanistan has paid tribute to the Flag of the Defense Ministry of Mongolia on November 27, 2014.

At the farewell ceremony, Chairman of Strategy Policy Planning Department at the Ministry, Colonel G.Saikhanbayar, Brigadier General at General Staff of Mongolian Armed Forces (GSMAF) J.Badambazar as well as other officials from the Ministry of Defense and GSMAF have respectfully attended in this event.

The NATO's first stage of the "Resolute Support" mission by International Security Assistance Force's (ISAF) takes over on January 01, 2015, and in the period of 2003-2014, Mongolia has deployed 10 shifts with over 3,000 servicemen.

The First Shift of 120 Mongolian militants will participate in the second stage of "Resolute Support" mission in Afghanistan, where a total of 12,000 military servicemen from NATO-member and partner nations will be participating, which will be a true test of the international community's commitment to the long-term stability of Afghanistan.

The second stage of "Resolute Support" is a non-combat mission that aims to provide further support for the continued development and sustainment of the Afghan security forces and institutions post-2014.

Link to article


Mongolia Elected to Chair International IDEA in 2016

November 28 ( Mongolian delegates led by Deputy Director of the Policy Planning and Research Department of the Ministry of Foreign Affairs and Economic Cooperation, G.Amartuvshin attended the 23rd session of the International IDEA Council of Member States held in Gaborone, Botswana on November 25-26, 2014.

At the session, the International IDEA Council member states discussed the annual report and mid-term strategic partnership program. Furthermore, participants elected new Council Board members.

Moreover, Member States unanimously agreed to elect Mongolia to Chair the International IDEA Council in 2016, but according to regulations, Mongolia will administer as Deputy Chair of the Organization in 2015 until it assumes the chairmanship for 2016.

Mongolia joined the International IDEA in 2011. In 2013, Mongolia was elected a member of its Council at the previous 22nd session.

Today, the International IDEA has full member states of 29 countries and one Observer - Japan.

Link to article


Mongolia Becomes Chair of IDEA for 2016Montsame, November 28



By Mendee Jargalsaikhan – mendee [at]

November 28 (Asia Pacific Memo) Last autumn, Presidents Xi Jinping and Vladimir Putin made separate visits to Mongolia, met for a tri-lateral (Russia-China-Mongolia) summit in the Tajikistan capital of Dushanbe during the leadership summit of the Shanghai Cooperation Organization (SCO), and dispatched their vice-foreign ministers for a working-level meeting in preparation for next year's summit in Ufa, Russia. With only a very brief amicable period between these three neighbors during the 1950s, China's and Russia's recent constructive behavior is new, even anomalous. What might it mean?

China and Russia have competed over Mongolia for centuries. As a result, greater Mongolia was shattered into two major geopolitical entities—Inner Mongolia, which is now part of the PRC, and Outer Mongolia, an independent nation-state. Both Mongolias served as geo-strategic buffer zones during Sino-Soviet split in the 1960s. Even in the post-Cold War period, China and Russia avoided any joint collaboration over Mongolia. As a result, major infrastructure projects like railroad and power plants became hostages of the geopolitical and economic competition of Mongolia's two larger neighbours. A ten-year debate over the railroad extension in Mongolia—about whether to use Chinese or Russian standard gauges—was just one salient example. Earlier, Mongolia's neutrality was supported by Russia, but no longer.

The joint move of China and Russia indicates a new dynamic in Inner Asia. Russia's complicated geopolitical competition in Europe is compelling Russia into a more junior partner position in Sino-Russian interactions. Unable to resist Chinese political and economic expansions in Inner Asia, Russia has acquiesced to cooperation with China on infrastructure development projects in Mongolia, and even presented no objections to using Chinese standard rail gauges for railroad expansion in Mongolia. And Russia now supports strengthening the SCO by the inclusion of Mongolia, whose presence is vital to fill the awkward hole in the SCO's map for regional legitimacy. These changes are transforming Mongolia from a buffer zone to a zone of Sino-Russian convergence.

Mendee Jargalsaikhan is a PhD student in the Department of Political Science at the University of British Columbia, and an Institute of Asian Research Fellow for 2013-2014. You can visit his personal blog on Mongolia at


·         Sergey Radchenko, "Sino-Russian Competition in Mongolia," The Asan Forum (Sep-Oct 2014)

·         Alan Wachman, "Mongolia: Growth, Democracy, and Two Wary Neighbours," Policy Q & A (National Bureau of Asian Research) (May 2012)

·         Jeffrey Reeves, "Mongolia's Evolving Security Strategy: Omni-enmeshment and Balance of Influence," The Pacific Review 25:5 (2012)

·         "Russia, China & Mongolia Begin Trilateral Talks," The Diplomat (October 2014)

·         "Why Russia, China, & Mongolia Are Boosting Trilateral Ties," The Diplomat (September 2014)

·         Alicia Campi, "Transforming Mongolia-Russia-China Relations: The Dushanbe Trilateral Summit," The Asia-Pacific Journal 12:44, No. 1 (November 10, 2014)

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Social, Environmental & Other

NEMA Launches Earthquake Early Warning System

By M. Zoljargal

November 29 (UB Post) Earthquake Early Warning System project launched at the National Emergency Management Agency (NEMA) on Tuesday as part of the second stage to complete the set up of the system in Mongolia.

The NEMA has recently established the Emergency Communications Center with 20 officials, which will be financed by the government.

The first stage of the project launched in 2011 when the government issued Decree No.195 to introduce the system to improve preparedness of the city in case of natural disasters, following mass casualties and destruction of properties caused by an earthquake in Japan.

A total of 48 three-meter and 12 eight-meter siren towers have been set up throughout nine districts of Ulaanbaatar so far.

Three television stations including Mongolian National Broadcaster (MNB), UBS and Mongol HD, as well as nine radio stations such as FM 102.5, Auto Radio 96.3, Family Radio 104.5, Lavain Egshig 97.5, Mongolian National Radio 106, Shine Dolgion Radio 107.5, Best Radio 98.5, Khamag Mongol Radio 95.1 and Tengerleg Radio 103.6 have installed an emergency broadcast system.

The broadcast system is linked to 6,986 meter long LAN-network of the Research Center for Astronomy and Geophysics of the Mongolian Academy of Sciences, National Agency for Meteorology, Hydrology and Environmental Monitoring, and Orbitnet LLC's Data Center.

Alarm transmitters were set up at MNB's main building, Chinggeltei Mountain, Melz Mountain in Baganuur District, and Tamgiin Undur Mountain in Nalaikh District.

A mobile emergency communications center was installed at a five-ton capacity truck in order to keep the emergency alarms activated in case of faults at the center in the NEMA building.

Earthquake sensors have been set up at 12 earthquake-prone locations in Bulgan, Dundgovi, Tuv and Selenge Provinces.

Link to article


Mongolia launches website aimed at cyber security of children

November 28 ( The Communications Regulatory Commission of Mongolia launched the website to provide parents, children, teenagers and educators with information about cyber security, online gaming, and proper use of the internet.

As a member organization of the Telecommunications Development Sector, the Communications Regulatory Commission of Mongolia supports the global directive on protecting children online, as adopted by other member countries.

Practical information, data, and statistics offered at is expected to be helpful to parents, children and educators to learn about child-related cybercrime and its prevention.

The website will also be open to feedback and comments from parents and educators, and hear complaints about the protection of children from cybercrimes.

Link to article


10th Forum of Mongolian Surgeons Held

November 28 ( The 10th Forum of Mongolian Surgeons began in Ulaanbaatar today on the occasion of the 20th anniversary of founding the microsurgery in Mongolia.

This year's forum was international, as foreign researchers and medical specialists arrived to give presentations and attend the forum debates.

The 10th Forum of Mongolian Surgeons began with a ceremony, where Ministry of Health N.Udval, academic and President of the Mongolian Surgeon's Association N.Baasanjav, and other medical specialists and surgeons were present.

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N.Natsagnyam: Intellectual virus is hindering Mongolia's science development

November 29 (UB Post) Many countries were able to develop by advancing their science sector. Where exactly is Mongolia at in this global advancement?

Globally, Mongolia is ranked considerably high with its total number of doctors, professors and academics but are we able to completely utilize the intellectual capacity of its researchers and scientists? Why are neither scientific organizations nor the nation flourishing? Are scientists and researchers of the Mongolian Academy of Science (MAS) supported? Like so, there are many questionable matters in Mongolia's science sector.

Below is an interview with State prize winning engineer N.Natsagnyam about this intriguing topic.

First of all, what do you think about the MAS?

An academy is an institute that the socialist society has, not in capitalist society. Russia closed down its academy and turned it into an NGO. I would say that Mongolia's MAS is distortion of socialism and a waste of both time and money.

You seem to be rather skeptical towards the MAS?

I accept the MAS in two different ways. Firstly, sectors such as philosophy, sociology and its institutes are social needs, and they have to be national institutes as it's impossible to finance itself. This is an advantage of socialism. On the other hand, if engineering and technology sector and its institutes become private, it will develop in a more original form.

The food industry expanded well during socialism. Now it should be privatized. If it's granted to the chief engineer free of charge with Minister Damdin's agreement, the industry could be successfully privatized similar to how England and Germany did it. Minister Damdin's agreement has the exact same principles. Germany was able to achieve prosperity two times better than England in 1990 by successfully privatizing material and technical bases of socialism. Through the Exchange Rate Mechanism, Germany completely absorbed England's foreign exchange reserves. Eastern Europe and Mongolia were deceived by America's false theory of free competition of doctors and professors and became insolvent.

Technological developments in the world aren't created by professors but by people without diplomas like Steve Jobs. The UK's General Electric Company (GEC), where I used to work, established most of the world's nuclear power plants. The inventor of GEC's analog stimulation automata is a graduate of the mathematics class at Coventry College who previously quit school at the age of 16. He didn't attend any other school because he didn't want to learn from liars. We can learn that doctors and professors don't create affluences from world examples.

Theory and practice are actually one thing. Western professors and doctors are mostly people who misinterpret theories because they only talk about theories without practice. That's why they haven't created affluences.

Is it true the MAS isn't keen on hiring scientists that graduated abroad? How do countries around the world support young scientists?

In capitalist society, knowledge is a property of private companies so it's confidential from universities. Mongolia could import intellectual capital by employing graduates from western universities as engineers. However, engineers who've returned after studying abroad usually refuse to be employed by the MAS because they would lose all of their intellectual property if they are fired after two years. State-owned companies can't accumulate knowledge like this.

It's possible for private companies to protect and develop intellectual property. Unfortunately, Mongolia doesn't have a single private institute. Companies that have introduced their intellectual capital into practice are internationally acknowledged as an institute. Yet, places that smuggle and import technologies claim themselves as institutes. This is improper.

Mongolians often strike towards the system when something is said to be wrong. You seem to imply the same. How should the system be changed?

The Mongolian Ministry of Education has been functioning through communist system for the last 25 years. The ministry gives away its entire budget to doctors and professors in the hope that they would give something in return. The state financed over a thousand projects and got around 300 patents. Yet the outcome is zero. This is distortion of Mongolia's system and our mentality.

Mongolia is becoming insolvent because the state is doing work which should be done by private institutes of a healthy society, with communist system. If socialism hadn't hit Mongolia but went around it, we would be thinking with healthier minds now. At the moment, we're thinking with distorted views of Karl Marx, the most zealous intellectual advocate of communism. Especially, in the last 18 years.

Mongolia's current government finances technological projects and revokes patents. This is communist aggression, the same as forcefully taking away a baby from a mother who carried it in her womb for nine months. This is why advanced technology projects aren't being carried out.

When will Mongolia break away from communist aggression? This will be directly influenced by our factions. This issue will be concluded if factions of the new government provide opportunities to work freely. Former Prime Minister N.Altankhuyag once said he could never trust academics again and cooperated with them and he started working with productive engineers. It was a good resolution but it wasn't completed because he was caught up with pressure from factions.

In fact, Mongolia will flourish without any hindrance if we eliminate factions from the state system. Not only Mongolia but every country with democratic governance is under oppression of factions. This is blasting us into collapse and insolvency. For instance, the UK's Prime Minister attempted to vie for the title of Lord, and Taiwan and Turkey administrated into one-man governance. Quite a few other countries are also being forced into this path.

Taiwanese students fly from the U.S.A. to participate in elections. They vote for establishing a new government instead of populism. Mongolia's system that supports populism by voting for two big parties is too outdated. An international development requirement for Mongolia is to add opportunities for voting for a new Constitutional Law in the Election Law Mongolia.

We have to understand that only private companies are able to create wealth in today's society. The government doesn't need to engage in this. The government should only give proposals. Operations of institutes will become illegal trades and smuggles if the government intervene.

How will private companies that create wealth be chosen?

National industries will gradually develop if companies that have successfully put their advanced technology product into practice for twenty months are selected and financed. The company where I worked, GES, invented and supplied all of UK's tanks, airplanes, trains and energy sector as the sole producer.

China is financing private institutes as if they're state-owned company. This is a deja vu of England 60 years ago. Mongolia slipped because it tried to imitate current practices of England. When the foundation isn't laid, how are we going to build a house? When results of initial work haven't come out, we shouldn't rush into the next work.

According to international standard, government provides some funds to private IT companies and receives several billions of USD in return. The government never robs off patents from companies. According to international standard, advanced digital devices are produced within one to three years. However, in Mongolia, digital devices are demanded to be completed in three months to make sure it stays within the year's budget. Despite the good will, the method is wrong.

As you've said, the government is too involved. How can we stop government intervention?

Mongolia needs to go back to how it was a hundred years ago. We had a wrong way of thinking for 70 years and in the last 24 years, Mongolia developed this format even further, turning it into a money laundering device. If Mongolia hadn't gone through socialism, we would be thinking the same as developed countries. On top of that, we wouldn't have been affected by intellectual viruses – the lie about free competition. We would actually be deceiving other small and poor countries with ideas about free competition and be snatching markets by turning those countries into our consumers.

Yet, Mongolia is spending a billion MNT for importing something that can be produced with a million MNT. This work only requires intellectual property valuation. I produced Nanyam device, which can replace imports worth 800 million MNT, with material cost of a million MNT. Material cost can almost be considered as zero for digital devices [as it gives more benefits later].

After seeing that the three dominant companies of the UK are still the sole producers after nine years, I found out how stupid I was for believing in free competition. Because of two types of intellectual viruses, Mongolia's legal environment is blocking Mongolia's technological advancement. Highly developed companies in the world started off with very simple work procedures. For example, firstly, choose a private company that's successfully trialed their product for twenty months and finance their operations for three months. Later,  they protect their intellectual property by providing 30 years of monopoly subscriptions.

Engineers who've worked at a company and learned their technology secret will be forbidden from doing the same business for 30 years. After 30 years, companies protect their market with brand names. Intellectual property is protected in this fashion throughout the whole world. Mongolia should now get rid of its old communist device that's been carried out for 24 years.

Source: Zuunii Medee

Link to interview


Mongolia Concludes Six-Month-Long Census of Forest Areas

November 30 (UB Post) A six-month long forestry research project and census has recently concluded, but the final results of the census will be ready next December. The Head of the Forest Resource Research Office of the Forest Research and Development Center State Owned Enterprise Kh.Michid spoke to Unuudur about the forest census and its results.

Mongolia first counted its forests in 1965. What was unique about this census?

When and how Mongolia has counted its forests is a very interesting question. We studied our forests in 1956 and from 1974 to 1975. This is the third time we've counted them, while Finland has counted its forests 11 times.

During the census taken 58 years ago in Mongolia, it was estimated that forests occupied over 10 percent, or 15 million hectares of land. Essential documents, including the general scheme for claiming and making use of forest resources through industrialized methods and measures to fight forests pests and insects, were processed at that time.

Consequently, the first official statistical data and forest map were published.

How are the forests counted?

The main point of this forest census is to define a forest's median resources and biomass per hectare, throughout the nation and three forest regions.  In order to define whether a sample area is located within the nation's borders, Landsat eight satellite imaging is used.  Research involving biological species counting, forest structure and endangered plants in the Red Book are carried out in six meters radius circles.

When will the final results of the census be presented?

Over 12,633 sample areas were set in 4,211 locations where coniferous and foliage forests are located. Currently, we are receiving original materials from the counting and rest of the work is being transferred to a digital format for analysis. The amount of absorbed greenhouse gases in Mongolia will be determined according to international standards.

Even if it snows in mountainous areas, our forests are doing their job very well.

What difficulties did you face in conducting the census?

Working in a forest is nice, but it is hard labor.  The safety of individuals or teams is the most important thing, and our workers are injected with vaccinations from tick-borne diseases. Our supervisor prevented us from operating GPS and surveying equipment when electrical storms happened. One worker was injured while he was working during an electrical storm.

The German Society for Technical Cooperation invested 5.7 billion MNT and the state budget funded one billion MNT for the forest census. Did you really need this much money?

This census involved the study of biomass, biological species, and what is in forest aside from trees, using new methodology.  The new methodology was prepared for one year, starting from December 2012. Moreover, we needed a laboratory to process and summarize reports after the census was conducted successfully.

Mongolia invested one billion MNT and 886 million was spent on salaries for 22 teams who conducted the survey, and 114 million will be spent on salaries for laboratory workers and operational expenses.

By carrying out this forest census, investments of more than one billion MNT were required.

How come?

There are carbon credits traded between countries, in which one country receives money from another country that produces greenhouse gases.  After this census, the amount of greenhouse gases being absorbed by the coniferous forests in Mongolia will be estimated. Maybe developed countries can choose Mongolia as their preferred country for planting trees and reducing the amount of greenhouse gases worldwide.

What is vital for decreasing greenhouse gases besides planting trees?

Plants, oceans and soil absorb greenhouse gases. Destroying plants and forests increases greenhouse gases. There are two ways to reduce them: using updated technology and increasing green mass. One international organization estimated that forests and plants absorb 450 to 650 billion tons of greenhouse gas per year and forests absorb 80 percent of emissions.

Forest resources are becoming scarce due to illegal logging and forest fires. What protection policies are being pursued by the Ministry of Nature, Environment and Green Development?

As more of our country develops, these negative effects are decreasing year by year.  Citizens have started understanding the value of protecting and planting forests. It is true that forest resources are in decline, but if we can study forests scientifically and define their resources, or use them correctly, our forest resources are capable of supplying Mongolians with wood and lumber for national consumption.

Starting next year, we are going to conduct studies and experiments with fertile soil in barrels. We will start manufacturing fertile soil in Mongolia.

Source: Unuudur

Link to interview


Miss World Mongolia T.Battsetseg Advances to Miss World Top 20

By B. Tungalag

November 30 (UB Post) Mongolian beauty pageant T.Battsetseg, who is representing Mongolia at Miss World 2014, has advanced to the Top 20. The top 20 pageants will compete for the Miss World title.

The girls put on cocktail dresses for the Top Model segment and were judged on their walk, their poise, their attitude, and their presence. After seeing over 120 women, the panel selected the top 20.

The top 20 contestants are from Hungary, India, Mongolia, Haiti, Zimbabwe, Australia, the Czech Republic, Bosnia and Herzegovina, Dominican Republic, South Sudan, France, Namibia, Scotland, Turkey, Russia, Mexico, Puerto Rico, Croatia, South Africa and China.

T.Battsetseg was born and raised in Darkhan-Uul Province of Mongolia. She currently works as a fashion model, as well as a trainer of models for Shilmel Zagvar LLC.

T.Battsetseg says that sport is the true fabric of who she is, playing a variety of sports throughout her life. Her basketball team placed second twice at the National Junior Championships. She is also a keen dancer with belly dance being latest interest. Other dance styles she is skilled at include Latin, classical and jazz. When it comes to food, T.Battsetseg prefers to eat healthily, and she loves traditional Mongolian dairy products.

"Mongolia is known throughout the world for our greatest king Chinggis Khan, our hospitality and as the last true nomads. We have quite a unique tradition and heritage passed down from our ancestors. My hometown is Mongolia's second largest city," she says.

Miss World 2014 started on November 20 and will conclude December 14.

Link to article


N.Tsogtsaikhan: I am the first Asian stuntman in Hungary

November 29 (UB Post) We have reached N.Tsogtsaikhan, who lives in Hungary, through Facebook to talk about his career as a stuntman in Hungary.

N.Tsogtsaikhan was filmed in blockbuster movies such as "Hell Boy", "Monte Carlo", "Dracula", "47 Ronin", "Iris" and "Eragon", alongside Hollywood big names such as Bruce Willis, Jai Courtney and Cole Hauser.

Can you please tell us about yourself?

My name is Narantsogt Tsogtsaikhan. I have been living in Budapest for ten years and I have been working as a stuntman since 2007. I am a senior student at an academy that trains stuntman in Hungary. Graduating from the academy is not enough for me because even people who have been in the movie business for 40 years can make mistakes. An academy provides the fundamental knowledge. An undergraduate stuntman plays in many different scenarios such as fight scenes or riding motorcycles. Therefore we have to qualify in specific fields of acting after graduating.

What was the first movie you played in?

In 2007, I played in a comedy as a bodyguard of a Chinese mafia. I wasn't a title role. I was kind of an extra. It means that I had a fight scene behind the main character. Asian actors are very rare in Hungary and they are mostly invited from Asia.

Tell us about the movies you have taken part in?

I had a role in "Hell Boy", "Monte Carlo", "Eragon", "Dracula" of England, "Iris" of South Korea and a movie with four parts. I also took part in movies that will be released in 2015 and 2016, "Spy", "Fallen" and "American Girl". I played a samurai in "47 Ronin", and played a North Korean soldier in an English television series called "Strike Back".

Do Asian actors mostly play opposing roles in European movies?

Yes, we do. I mostly play a Korean, Japanese, Chinese and Kazak's roles. There haven't been any Mongolian movies made yet here. At the moment I don't have any enemies here so I have a great chance.

Have you had a role with a dialogue?

I played a member of a Russian mafia in "A Good Day to Die Hard". I could have said to my boss character something like, "Someone might be helping them", but I missed that chance. In a television series about Hungarian policemen I played an Asian drug dealer. There is a part in the movie where I am arguing with the policeman.

I am going to play a Chinese cosmonaut in a new movie directed by Ridil Scott that will be released soon. I hope that there is a dialogue for me in the movie.

Could you please tell us about your experience working with celebrities?

Many of the Hollywood stars are very ordinary people. I was with the legendary Bruce Willis in "A Good Day to Die Hard". It took a lot of days to shoot the scene where I was shot by Bruce Willis. During the shooting, I asked Bruce Willis for his autograph, but he didn't respond to me. A few days later, his bodyguard asked my phone number and told me that Bruce Willis wanted to meet me. I was very happy. I have been learning a lot from celebrity actors.

What is your future goal?

I used to dream about becoming an actor since I was a kid. As I am interested in sports, I became interested in becoming a stuntman. Jackie Chan was a stuntman when he started his career. I think that the finish line is more important that the start in life. As I am not a professional I don't have many roles. For example, it is really hard to make someone smile. I love to play in action movies.

When we were shooting "A Good Day to Die Hard", I was very nervous. Director John Mur told me, "Hey Choogoo don't act but feel your role. Just think of it as your daily activity and turn into a bad guy. Now go to the restroom and find the bad guy in you." Actually, what he said was really helpful. Sometimes in Hollywood, actors set into their role too deeply that they can't go back to their real selves. So self control is very important.

You said that a good stuntman has to be qualified in a specific field of acting. What will you choose?

At the moment I am playing in action movies. In the future, I would like to qualify for motorbike and car stunts.

Could you please tell us about your instructors?

My mentors are amazing. The head of my school, Guyash Kish Zultan, has been working as a stuntman for over 40 years. He was featured in the Guinness Book of World Records because he did dangerous stunts.

What do you study in class?

I am learning wrestling, fighting, fencing, jumping, riding motorbikes, drifting cars and many other activities. But the lessons are conducted not as a professional sports technique but how to make it look good for the camera. So if I use the technique that I learned in class, I would be beaten in real life.

Sometimes what we do is risky, for example jumping scenes from rooftops. We have to flip in the air while we are jumping and we repeat that a lot of times at the shooting.

What is the best thing about being a stuntman and what is the most challenging thing?

I think that all jobs aren't easy. To be a stuntman instills patience in a person. Recently I was a double for a Japanese actor in a scene where I was shot and fell into water. It wasn't easy to repeat all those actions many times. But at the end, when the movies are ready, it feels good to watch and analyze myself.

When you are planning to come back to Mongolia?

I visit Mongolia every summer to spend my vacation. Since I have been living in Hungary for many years, I am much more adapt here. But after graduation, when the time comes, I will go be back to Mongolia. Someday I wish to direct reality shows and movies in Mongolia.

Source: Unuudur

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