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Tuesday, June 30, 2015
Headlines in Italic are ones modified by Cover Mongolia from original
KRI closed flat Monday at C$0.70
Mongolia to Pay Khan Resources $100 Million Award, Premier Says
By Michael Kohn
June 29 (Bloomberg) -- The Mongolian government will honor a court decision that awarded about $100 million to Khan Resources Inc., a move that could further ease tensions with foreign investors
looking for signs of stability in the country.
"There is a requirement to pay and the government will carry out its obligation," Saikhanbileg Chimed, Mongolia's 46-year-old Prime Minister, said in a June 26 interview in New York. "We're not ignoring, we're respecting. We will comply."
The Khan Resources case is seen as a test for a government trying to rebuild an economy where the growth rate slowed to 7.8 percent last year, after cresting at 17.3 percent in 2011, amid weaker commodity prices and high-profile disputes with foreign investors.
The prime minister's conciliatory tone following failed meetings to resolve the dispute, created when Mongolia stripped Khan of uranium mining licenses in 2009. The Ministry of Justice had said in March it would seek to nullify the award.
Saikhanbileg's promise to pay Khan Resources sent shares of the Toronto-listed company soaring 56 percent to 70 Canadian cents on Friday. Khan hasn't received any direct communication from Mongolia on a resolution, the company said in a statement.
The Khan case is one of four international arbitration cases facing Mongolia, which is "not a big deal" compared with other countries dealing with hundreds of such cases, said Saikhanbileg.
The 46-year-old premier, a George Washington School of Law alumnus, said the Khan case is isolated and in the long run will serve to improve Mongolia's business climate and remedy laws that hinder investment.
"Every investor is looking for stability and predictability," the PM said.
First Concept Logistics, a Subsidiary of NUR, Serves a Notice of Arbitration on SouthGobi Sands. SouthGobi Firmly Rejects the Claims as Groundless and Will Vigorously Defend Itself
HONG KONG, CHINA--(Marketwired - June 29, 2015) - SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) ("SouthGobi" or the "Company") announces that First Concept Logistics Limited ("First Concept"), a subsidiary of National United Resources Holdings Limited ("NUR"), has served a notice of arbitration (the "Notice") on SouthGobi Sands LLC ("SGS") - the Company's wholly-owned subsidiary in Mongolia in respect of a coal supply agreement dated May 19, 2014 as amended on June, 27, 2014 (the "Coal Supply Agreement"). SouthGobi firmly rejects the claims as groundless and will vigorously defend itself.
First Concept is a subsidiary of NUR, a publicly traded company in Hong Kong. The Company and First Concept finalized the Coal Supply Agreement in late June 2014 immediately prior to the announcement by NUR that it had entered into a share purchase agreement (the "NUR SPA") involving the Company's common shares with the Company's largest shareholder at the time, Turquoise Hill Resources Ltd. ("Turquoise Hill").
The Company notes that the closing of the NUR SPA was the subject of several delays and corresponding to these delays, First Concept has repeatedly failed to take delivery of the contracted coal notwithstanding the Company's sufficient capacity and ability to satisfy its obligations (as described in greater detail below). In May 2015, Turquoise Hill announced that the NUR SPA had expired without NUR acquiring the subject Company shares. In the Company's opinion, serious questions arise as to First Concept's motives in filing the Notice at this time, as it was filed shortly after both the expiry of the NUR SPA and the Company's announcement on June 22, 2015 of progress on its funding plan, includinginter alia, a private placement of its common shares for aggregate gross proceeds of US$31.6 million. The Company expressly intends to pursue the issue of bona fides in the forthcoming arbitration proceedings.
Notice of Arbitration and Obligations under the Coal Supply Agreement
According to the Notice, First Concept alleges that SGS has breached the Coal Supply Agreement and seeks, among other items, the repayment of US$11.5 million, representing the prepayment amount advanced by First Concept under such agreement.
The Company firmly rejects the allegations of First Concept in the Notice as lacking any merit for the reasons described above. The Company emphasizes that the failure of First Concept to fulfill its obligations under the Coal Supply Agreement is the cause of the current dispute between the parties. Specifically, the obligation to collect and transport the coal, pursuant to the Coal Supply Agreement, fell squarely on First Concept, while SGS was only obligated to make the coal available at its mine location. SGS has repeatedly advised First Concept of its willingness, ability and readiness to make available the coal for collection at its stockpile. In fact, SGS, at all times during the term of the Coal Supply Agreement, had sufficient capacity and was able to meet its obligations while managing the rest of its commitments for other customers. Notwithstanding this readiness on the part of SGS, First Concept has continually failed to complete the necessary legal requirements for collection and transportation of coal and to provide a pickup schedule in accordance with industry practice.
The Company sees the Notice as an attempt by First Concept to back out from a binding contract by deliberately failing to take any reasonable efforts to comply with its obligations in its capacity as the buyer pursuant to both the Coal Supply Agreement and the applicable law and to claim back its prepayment.
The Company categorically denies First Concept's claim for repayment of the sum of US$11.5 million as wholly misconceived and will vigorously defend itself throughout the arbitration proceedings. In addition, SouthGobi reserves the right to pursue legal action against NUR and its subsidiary for compensation for any damages that result from their actions.
MATD closed -10.53% Monday to 4.25p on the announcement
Petro Matad Loss Narrows, First BG Group Well Pushed Back To 2016
LONDON, June 29 (Alliance News) - Petro Matad Ltd Monday reported a narrower loss in 2014 after a "quiet year" that resulted in the company partnering up with FTSE 100-listed BG Group PLC over two of its blocks in Mongolia, and said the first well will now be drilled in 2016 and not 2015 as originally planned.
The oil and gas company operating in Mongolia reported a USD3.9 million net loss in 2014, narrowing from a USD7.5 million loss in 2013. The company does not currently generate any revenue.
The loss narrowed after it spent USD1.9 million on employee benefits compared to USD3.5 million a year earlier, whilst exploration expenditure dropped to USD266,000 from USD1.6 million and other expenses totalled USD1.5 million from USD2.0 million. Consultancy fees and depreciation and amortisation costs also fell in the period.
Petro Matad said it had been a "quiet year" operationally as it focused on finalising the deal to farm-out part of its licenses to oil major BG Group. That agreement was for BG to earn up to a 78% interest in Blocks IV and V by paying for the first USD28 million of gross expenditure and a cash payment of USD4.6 million, of which half has been received.
"The farmout is a key milestone as for the first time in its history the company will be undertaking operations with a partner. That the partner is a world class oil and gas producer and explorer enhances the impact of the transaction," said Petro Matad.
The company and BG are now undertaking seismic work and geological studies over the two blocks and two exploration wells will be drilled in 2016. No exploration wells have been drilled previously on the blocks.
"The announcement of April 7, 2015, anticipated that all work programme activities, except one of the exploration wells, would be completed in 2015. The company now anticipates that both exploration wells will be drilled in 2016, with the remaining work programme activities still being undertaken in 2015," Petro Matad said Monday.
By the time that well is drilled in 2016, the USD47 billion mega-merger between Royal Dutch Shell PLC and BG Group should be completed.
Talks about farming-out Block XX are continuing and there is "minimal exploration" planned on the block in 2015, Petro Matad said.
Petro Matad shares were untraded on Monday, last trading at 4.75 pence per share.
Origo Partners: Posting of Annual Report and Notice of AGM
June 29 -- Origo Partners Plc ("Origo" or the "Company") has posted its 2014 Annual Report and Accounts to shareholders together with a Notice of Annual General Meeting. The Annual General Meeting of the Company will be held at 33-37 Athol Street, Douglas, Isle of Man, IM1 1LB at 1:00 p.m. on 20 July 2015.
Copies of the Annual Report and Accounts and the Notice of Annual General Meeting are available on the Company's website at: www.origoplc.com
MSE Weekly Report: MSE ALL -0.68% to 1,033.78, Turnover ₮301.5 Million Stocks, ₮10 Billion T-Bills
June 29 (MSE) Mongolian Stock Exchange organized 5 securities trading sessions and made transaction of MNT10,301,475,636.00 between 22 June 2015 and 26 June 2015.
598,809.00 shares of 42 joint stock companies worth of MNT301,475,636.00 were traded.
MOST ACTIVILY TRADED SECURITIES
MOST ACTIVE BROKERAGE COMPANIES IN SHARE TRADING
Government retail bonds trading:
100,000 Government retail bonds worth of MNT10,000,000,000.00 were traded through one bonds trading session.
MOST ACTIVE BROKERAGE COMPANIES IN GOVERNMENT SECURITIES TRADING
Ard Capital Group
Deu securities mongolia
As of June 2015, market capitalization was MNT1,412,181,777,532.00 which indicated decreased of 1.83%, and MSE ALL index reached 1,033.78 units which indicated decreased of 0.68% from the previous week.
MSE News for June 29: Top 20 -1.54% to 14,981.82, Stock Turnover ₮130 Million
Ulaanbaatar, June 29 (MONTSAME) At the Stock Exchange trades on Monday, a total of 185 thousand and 855 units of 20 JSCs were traded costing MNT 130 million 020 thousand and 035.00.
"E-trans logistics" /156 thousand and 970 units/, "APU" /20 thousand and 576 units/, "Tavantolgoi" /5,000 units/, "Mogoin gol" /1,500 units/ and "State Department Store" /599 units/ were the most actively traded in terms of trading volume, in terms of trading value were "APU" (MNT 76 million 350 thousand and 310), "Tavantolgoi" (MNT 19 million and 425 thousand), "E-trans logistics" (MNT 17 million 109 thousand and 730), "Mogoin gol" (MNT 11 million and 925 thousand), and "Darkhan hotel" (MNT one million and 518 thousand).
The total market capitalization was set at MNT one trillion 404 billion 420 million 627 thousand and 743. The Index of Top-20 JSCs was 14,981.82, decreasing 1.54% and the all index of MSE was 1023.34, decreasing 1.01% against the previous day.
Standard Properties Group JSC Announces Share Buyback at ₮100
June 29 (MSE) According to the No.: 53.1 and 53.2 of the Company Law of Mongolia, shareholders of JSC have right to demand that the company redeem its shares. In order to implement this right, "Standard Properties Group" JSC is buying its own shares at MNT100.00 from the shareholders who want to sell their shares.
By the way, the legal name of "Bayanbogd" JSC changed to the "Standard Properties Group" JSC accordance with the resolution No.:162 of Financial Regulatory Commission of 2015.
Joint Interest Parties Launch Tender Offer for Khorin Khoyordugaar Baaz JSC
June 29 (MSE) According to the Article No.:57.1 of "Company Law of Mongolia", Article No.:22 of "Mongolian Securities Law", the clause No.:3.1 of "Regulation of making offer to buy shares of Joint Stock Company", joint interest party is offering the tender offer to purchase 762,990 shares of "Khorynkhoyordugaar Baaz" JSC at MNT205.00. The tender offering will be effective for 30 days until 17 Jule 2015.
BoM MNT Rates: Monday, June 29 Close
MNT vs USD (blue), CNY (red) in last 1 year:
BoM issues ₮176 billion 1-week bills at 13%, total outstanding -0.54% to ₮1.1 trillion
June 29 (Bank of Mongolia) BoM issues 1 week bills worth MNT 176 billion at a weighted interest rate of 13.0 percent per annum /For previous auctions click here/
Beatrice di Mauro: Mongolia Has to Scale Back Debt Levels
June 29 (Mongolian Economy) Beatrice Weder di Mauro has been the Chair of International MacroEconomics at the Johannes Gutenberg University of Mainz since 2001. She served as a member of the German Council of Economic Experts from 2004 to 2012, was on the Swiss Council of Economic Advisors from 2002 to 2004 and was an advisor to the Austrian Vice Chancellor 2009 to 2011. From 1994 to 1996 she worked as an economist at the International Monetary Fund and has been a regular visiting scholar at the research department of the IMF.
Mongolian Economy magazine interviewed her during her brief visit to Mongolia for the UB Impulse: Expert Talks on Quality Growth public lectures and discussions held in April 2015.
What is your impression of Mongolia?
I was here 20 years ago. Ulaanbaatar is totally changed. I wouldn't recognise anything. At that time, I had the impression that it was a little village with a big temple. No traffic. That was my impression back then. Now, it has become a city. A lot has has changed – a lot of development.
Good or bad developments?
It is always impressive when you see a country change so rapidly in a short time. It is obvious from all the construction around that this city is booming. Of course, you always have to be careful when there is such a boom. There can be too much investment, which might turn out to be not so valuable.
I get the impression that there are a quite a number of areas in which the developments are critical. The growth has slowed, and prospects don't look as bright as they used to.
What is the current state of the EU debt crisis?
Well, certainly Greece is in a completely different dilemma than all the others. Not only does it have the highest debt as a percentage of GDP, but it is also in a situation where it has acute problems in trying to roll over essentially. The government itself said it was on a road to a very difficult, if not impossible, negotiation. Greece is really in a risky situation. I think everybody accepts that there is not much time left for Greece to agree with the partners, especially with the EU partners, on a deal that would allow it avoid defaulting. Ultimately, it would avoid the orderly exit from the euro zone. The past few weeks have been not very encouraging. Let's set Greece aside for a moment and talk about the rest. For the rest of the euro zone, the situation is quite different. There are some countries that still have quite a high level of public debt: Italy, for example. Of course, with low growth, low inflation or even deflation, repaying debt becomes more difficult.
At the present interest rates, the debt is unsustainable. The problem is more that when you have very high debt, it is possible to have a debt overhang situation, which means that growth and investment are hampered by that debt overhang. This is the real danger for the euro zone. Because of the high debt, you get low investment and low growth for a rather long time.
How about Argentina?
Argentina is a bit more in the category of slightly crazy states. In that sense, the comparison between Greece and Argentina is closer. Argentina has a history of defaults. Argentina, again, is in a very different category, because it is a so-called a serial defaulter. Also, it has experimented with many different types of currency regimes, and it has been negotiating with the creditors for almost 10 years now. Essentially, some of the creditors do not accept the restructuring of the debt. They are the so-called hold outs. This is an on-going legal battle that Argentina is fighting with the creditors. It is also in a very bad state in part because the country did not pay attention to debt overhang early enough.
These countries are considered as the trouble children in the world economic crisis and public debt. Mongolia has been compared to these two countries, in terms of debt. Do you think Mongolia could become such a trouble child?
Certainly. It is worrying that Mongolia has not succeeded in bringing down the debt, but rather it kept increasing it. Although the level of debt, if you considered it in comparison to Greece, may not seem high, it is also true that Mongolia is not a part of the euro zone. It doesn't have the huge backing of the euro zone or the European Central Bank. Greece could never have accumulated as much debt as it did if hadn't had the euro zone behind it. So, for countries that are "alone," so to say, or on their own as Mongolia is, the level of debt that can become unsustainable, where you can actually run into troubles because the creditors are no longer rolling over and interest rates go up very sharply, is much lower. So yes, Mongolia has to certainly focus on scaling back debt levels. In principal, there are already laws, rules and institutions in place. They just have to be implemented.
As you said earlier, debt should be kept as low as possible. How do you think the government of Mongolia should handle its debt issues?
If you need to reduce debt, there are only a few ways to do so. The best way is, if you have real growth and inflation that is not so high, you basically grow out of debt. The second way is to you restructure, which many countries probably do not consider doing, because creditors do not like it. The third way is what everybody in the euro zone is doing so far: running a primary surplus. It is basically a tightening of the fiscal policy and running a primary surplus to reduce debt. A recent IMF projection I saw suggests that with strong policies it is absolutely feasible over time to reduce debt bit by bit.
The issuance of Chinggis bonds by the government of Mongolia has been successful. However, how the influx was spent was heavily criticised by many. And in fact, the government might try to issue bonds again to pull the country out of economic recession. Do you think it is a wise way to pay off its debts?
That does not seem like a prudent thing to do. The policy has been starting to tighten, and then it became loose in the preceding years, 2012 and 2013. If you have increasing debt and inflation, you cannot finance that. You need to basically start to tighten the fiscal policy. These are the things that can happen to resource-rich countries. They have the wealth in the ground. And they think they can bank and borrow on that beforehand. The danger is that you consume a large part of that wealth already rather than saving that wealth and investing it in the future.
Repaying debt with another debt is not a wise thing to do. And this is what happened to Greece. When you are entering zones where debt starts becoming a problem, then you have to reduce it. You cannot keep borrowing and accumulate more to repay the previous ones.
In terms of sovereign debt, for the payment it is quite imminent to find a solution immediately. Crises, especially sovereign debt crises, currency crises and others of that nature strike very quickly. For that reason, a country has to be very conscious and careful when it is at risk of any of those crises. So in that sense, I am more concerned, because Mongolia's statistics on the financial sector, for example, are actually quite scary. Indications are already not so good. Before a crisis, the indicators look too good. However, afterwards you discover that the reality underneath is worse. This is always the case.
Are people blinded by these too-good-to-be-true numbers?
This is typical. For example, the capitalisation of banks in Europe before the crisis, they looked okay. It just turns out that those numbers were wrong, both in terms of capitalisation and in terms of the risks. Afterwards, it is always easy to tell that was wrong. But beforehand, people were feeling quite relaxed, or too relaxed.
Do you think Mongolia will go on to become a victim of Dutch disease and debt?
What I see is that there was this temptation to bridge the gap through borrowing and to loosen the monetary policy. At the same time, there is the Financial Stability Law that was put in place, but was not followed. There were all these loop holes that made it both on the deficit and on the debt indicators. So as long as there is intention but no implementation, you don't get out of debt. In that sense, such a thing also happened in Greece. They had a lot of good intentions, but on the implementation it was very difficult. This is when you get into negative debt dynamics. So I think Mongolia has to be very careful about the sustainability of its debt. It cannot just rely on possible future income.
Then what should a country like Mongolia do to reduce its debt?
It has always been very simple. It has to save more. It means the country should increase public savings, reduce the deficit and start growing out of the debt.
At what point do you think the government should make a U-turn?
I think it is high time, because already one can see that the reserves are declining. It is harder to repay debts. The exchange rate is depreciating. It is getting harder to repay currency debt. In addition, repayment dates are coming. The fiscal and monetary policies have to be tightened. You have to start phasing out the things that are no longer affordable. And one may have to start thinking about whether one can get assistance. What a typical IMF program does is a bit of both financing and adjusting. Balancing the adjustments and financing. It is not unique.
The standby program by the IMF is often considered to be a means of losing economic independence. Is it so?
That is the perception. That is what many countries fear. And that is why many of them go to the IMF too late. Countries try to avoid going and then they only go when the disaster is imminent. The problem is that when you go too late you have to make a much bigger adjustment. And the program therefore is harder than if you had went early.
If a country needs to make an adjustment, meaning tightening the belt fiscally and monetarily, and do some structural reforms, those are the things that you would want to do independently from the IMF. IMF gives you money for that.
Should Mongolia take the program?
It sounds like it. If the BoP (balance of payments) pressure continues and it is not possible to do the U-turn by yourselves, you may need some help.
So you are saying yes?
Well, it is something that should be considered very seriously. The question is what alternatives you have if you want to borrow at high interest rates or short maturities. That would be a very bad alternative, because that would aggregate the problem. And only borrowing without a program or a program without borrowing can also be bad alternatives.
The program gives you a framework for borrowing without default and with adjustment. That is the advantage of such a program. In addition, the conditions are okay.
If we were to invest in a sector, in order to get returns to use as savings, what could be in option for Mongolia, in your opinion?
This is a very good question. There is the possible problem of Dutch disease where all the recourses go into the booming sector. And since these may not always be there, there would be depletion in that sector. It is better to have made investments in the other sectors as well.
There are ways regarding how to deal with such issues. One is, not only investing, but saving. You can save in the form of sovereign wealth funds, or have financial investments, in order to make the transfer into the future generation. Certainly, education is one of the investments into the future generations, which is one of the most productive investments.
The case of Dubai is really interesting, in this sense. The country has run out of oil. At the right time, they made other investments into other industries that now turn out to be very supportive in building up a strong economy.
The government of Mongolia has increased its debt ceiling to 58 percent of GDP. What is your perspective on this matter?
The debt sustainability analysis that the World Bank and IMF did together on Mongolia last year suggests that there is a moderate but increasing risk of having a non-sustainable debt path. The debt sustainability analysis takes into account the institutional strength of the country. So it has different values of the debt, and what is considered sustainable debt depending on whether the country has strong institutions, taxation systems, bureaucracies, etc.
Mongolia does not have very strong institutions. They are medium strength. It has to keep its debt well under control in order not to run the danger of getting into a zone where it's no longer sustainable. Therefore, there can also be crisis.
Considering the current debt issues, do you think Mongolia can keep its debt climb under control? Or is the country facing a fate similar to Argentina and Greece and defaulting?
That is probably not going to happen imminently. But the problem always exists if you don't make correction early enough. Once you get into negative dynamics it is very hard to set it right. And usually, governments have the tendency to wait too long. And when markets are already in panic mode and losing confidence, then correction is very painful. You want to avoid that kind of situation. This is why it makes sense to have a degree of risk. And that degree of risk is not low in Mongolia. It is moderate and increasing. So it is something that needs to be tackled.
Certainly, Mongolia does not want to be talking about default and steering a risky path that might lead to default. So the way to gain investors' trust is to have credibility of rules and to basically announce something for the medium term and do it. It is not enough to have a law. You have to implement it. That is the only way to gain credibility. As for the macro picture, the only way to gain the trust of the investors' is by building credibility step by step. Reputation is something that you have to earn by hard work. But it is easy to lose.
There is this checklist you made. If you have checked the list mostly with "Yes," it means a crisis is nearing. So a doctor is needed. But who is the doctor?
It can be the IMF. But it can also be the government. If a person realises he or she accumulated too much weight and needs to go on a diet, maybe that person can do it by himself. Maybe that person doesn't the need help of an external person. But sometimes it is easier if somebody helps you to make a good diet.
Then what could be the ER for Mongolia in this analogy?
The point is not who can you borrow from or how can you mortgage your future. The point is you have to adjust. The future doesn't look like the past. So the adjustment path is the one that I am emphasising.
"Who can we borrow from?" is not the main question. The question is "how can we adjust, and is someone going to help us to make this adjustment to make it credible?" I was asked whether Mongolia's debt ceiling is enough. That very much depends on whether the law is actually followed or not. It is whether you can really, credibly commit to the adjustment path. This is something that Europeans also face.
If you can commit to an adjustment path, you can phase out your debt overhang problem overtime. You don't have to do all that so quickly. But you also have to explain to the citizens that grow rates will be low or lower for a certain amount of time. Promising is a bad thing to do, because it is not something that you can easily fulfil.
Let's say Greece is not a part of the EU. In such a case, is Mongolia the next Greece?
Greece has benefited from being a part of the euro zone. But that is also why Greece has such high debt. If Greece was not a part of the euro zone, it would have had these crises at much lower levels of debt. And it would also have a currency crisis on top. Mongolia has many of the typical fragilities surrounding a crisis. The currency fragility, possible financial sector fragility, certainly from the real estate boom, and then on top of that Mongolia has also very specific aspects, such as being a resource economy. This can lead to excess exuberance.
I would not say that Mongolia is the next Greece, but I would say that Mongolia has much vulnerability. The dangers of such linked vulnerabilities are that any of those can trigger the other, because they all hang together usually.
Sometimes one is looking one way, thinking this is the most dangerous thing. And then it hits you from the other side. Then it is the bank or the currency or it is the sovereign debt. But if one of those becomes unsustainable and starts to go into crisis mode, then the others will also be triggered. I hesitate to say Mongolia is the next Greece.
But I would certainly say look at Greece and look at Argentina, if it doesn't want to end up like them
Parliament Session Agenda for June 29: Caucus, Working Group Meetings
June 29 (gogo.mn) Party Groups and Coalitions seated at State Great Khural have sessions today.
ONE. PARTY GROUPS AND COALITIONS AT STATE GREAT KHURAL SESSIONS:
DP Group Session at Hall A;
MPP Group Session at Hall B;
Justice Coalition Session at Hall C.
TWO. WORKING GROUP SESSIONS:
· Justice Standing Committee sub-working group meeting on renewed draft law on Criminal Code, Conflict Law and affiliated other drafts
· Application Standing Committee working group meeting on application from citizens and entities on implementation of product sharing agreement and oil legislation
· State structure standing committee meeting on draft law on public hearing and affiliated other drafts
· Economic Standing Committee meeting on approval of draft resolution of State Great Khural on the state property privatization in 2015-2016
· Environment, Food and Agriculture Standing Committee Working Group meeting on amendments to draft law on forest and affiliated other drafts
· Working Group meeting of Economic Standing Committee on analyzing activities of civil aviation sector
· Budget and Economic Standing Committee meeting on trading of securities issued by the Government
· Economic Standing Committee meeting on approval of draft resolution of State Great Khural on action plan of dealing with economic downturn
· Working Group meeting on amendments to draft law on taxes
· State Structure Standing Committee meeting on law on control
· Economic Standing Committee meeting on draft law on support the production
· Official arrangement between the Republic of the Union of Myanmar and Mongolia
Chinggis Sculpture Will Not Be Placed at Chinggis Square Says Bayartsogt
June 29 (gogo.mn) Chinggis Khan sculpture created by the Russian artist Dashi Namdakov was built in London during the 2012 Olympic Games. MP D.Bat-Erdene purchased this sculpture worth of EUR 3 million with his own funds and transferred it into state property.
Question of the location of this sculpture was in the focus of many as rumors have spread it will replace statue of Sukhbaatar on Chinggis Square. We inquired on the location of the sculpture from S.Bayartsogt, Head of the Government Secretariat to which he replied: "I have clearly state before that this sculpture will not be installed on Chinggis Square. It is not suitable to place two statues of Chinggis Khaan at one place. We are in talks to locate the sculpture at the National Park. No discussions were ever held of installing it at Chinggis Square."
Works of D.Namdakov are valued high at international level and officials have also announced that the sculpture was bought preceding attempts of Chinese interest to purchase it.
Prime Minister Gives Interview to Bloomberg, Visits New York Stock Exchange
June 29 (news.mn) During his visit to the USA, Prime Minister Ch.Saikhanbileg paid a visit to Bloomberg, where he gave an interview about the current state of politics and economics in Mongolia. The Bloomberg journalists asked about Mongolian economic growth, legal conditions and how to attract US investments to Mongolia.
After this, the Prime Minister visited one of the top international finance centers, the "New York Stock Exchange" in order to see exchange activities first hand.
Premier Works in New York City – Montsame, June 29
Prime Minister attends Mongolia investor seminar hosted by Credit Suisse
June 29 (news.mn) Prime Minister Ch.Saikhabileg has met representatives of the investment organizations in Mongolia. The meeting took place in the "Credit Suisse Bank" and was an important part of his visit to the United States. Those present at the meeting included the main investors in developing countries and bank representatives. At the beginning of the meeting, Mr. Saikhanbileg gave information and answered questions about the Mongolian economy.
Mr B.Byambasaikhan, the director of "Erdenes Mongolia LLC" introduced the activities, current status, and business forecasts for the company.
During the meeting, the participants confirmed that - following the decision regarding Oyu-Tolgoi (Phase 2) we are more interested in investing in Mongolia.
Ch.Saikhanbileg PM Meets with US Investing Companies and Banks – Montsame, June 29
Mongolia's Ministry of Industry Signs MOUs with Japan's Trade Ministry and JETRO
June 29 (gogo.mn) Today, the 7th Japan-Mongolia Joint Consultation with the Government and Private Sector on Trade and Investment has started in Tokyo city, Japan.
During the consultation, Mongolian Ministry of Industry and Japanese Ministry of Economy, Trade and Industry signed Memorandum of Cooperation.
Moreover, Ministry of Industry signed Memorandum of Cooperation with Japan External Trade Organization (JETRO). By signing memorandum, opportunities to be mutually beneficial for economic cooperation and promote the participation of the private sector into trade and investment of two countries were created.
Minister of Industry D.Erdenebat and State Secretary D.Nyamkhuu are working in Japan, reported by the Ministry of Industry.
Harvard Guests visit Mongolian Business Database
June 29 (news.mn) The "Asian Leadership Forum" is currently being held in Ulaanbaatar. The "Global Managers Institute" and 33 guest students who are graduating from the various Harvard-affiliated schools including: the Harvard Business School, the John F. Kennedy School of Government at Harvard University and the Harvard Graduate School of Education are organizing this year's forum. These student leaders come from 16 countries and also have experience of working in politics, defense, government, health, education, investment, real estate, and art.
The guests have visited the "Mongolian Business Database" (www.mongolianbusinessdatabase.com) at the "Executive Excellence International Business Center". During the forum, Dr.Saha D.Meyanathan, the ex-country representative of the World Bank, Jim Dwyer, Executive Director of the Business Council of Mongolia , and Mr I.Ser-Od Director of the Mongolian Business Database provided information about the current situation of the economy, business, and investment in Mongolia.
The team leader of the Harvard guests, Samuel Hungsoo Kim, said- The graduating students of Harvard travel every year to Asian countries, and study their leadership experiences and ideology. We are visiting Mongolia for the first time. Also, we exchange our experiences studying at Harvard with the countries we visit. We would like to thank the "Mongolian Business Database" and the "Executive Excellence International Business Center for their kindness".
Naadam Tickets on Sale from July 6
June 29 (gogo.mn) Naadam Festival is fast approaching and many are in full preparation for the big summer festivities and planning their vacations and some are curious of the Naadam tickets.
For this year tickets will be available starting July 6th through the ticketing offices of Wrestler's Palace and Central Cultural Palace.
In the meantime we are delivering the interesting infographic on the Naadam Festival tickets for the past few years and for the year 2015.
Naadam Festival Agenda
June 29 (news.mn) Program from 1st-10th July
"Mongolian Great Country" painting exhibition
Mongolian Art Gallery
On archery square
On archery square
On archery square
"Khyazaalan" (4> year old) horse race
Khui Doloo Khudag
Knuckle bone throwing
Knuckle throwing tent
First round of target-archery
On archery square
Ceremony for National Flag Day
On Chinggis Square
Ceremony for showing respect to Chinggis Statue and placing of flowers on Sukhbaatar statue
On Chinggis Square
"Shudlen" (3> year old) horse race
Khui Doloo Khudag
Middle round of target-archery
On archery square
Official Concert for Naadam
On Chinggis Square
"Mongolian Deel" festival
On Chinggis Square
State Horse Hair Banner Ceremony
Government House and Chinggis Square
"Uchirtai Gurvan Tolgoi " opera
On Chinggis Square
Program of 11th July, Saturday
Mustang race (6> years old)
Khui doloon Khudag
Semi Finale of Knuckle throwing
Knuckle throwing tent
Journey of the Mongolian State Banners Transportation from Government House to National Stadium
Placing Ceremony of Mongolian State Banners in National Stadium
President will address opening speech and respect to Mongolian State Banners
Opening ceremony of Naadam (Special program)
Opening ceremony of Knuckle throwing
Knuckle throwing tent
First round of Mongolian wrestling
Semi-finale of Knuckle throwing
Knuckle throwing tent
On archery square
First round of children wrestling
Opening ceremony of Khui Doloon Khudag Naadam
Khui doloon Khudag
"Ikh Nas" (7>years old) horse race
Khui doloon Khudag
Last round of target-archery
On archery square
Second round of National wrestling
Second round of Children wrestling
First round of Khasaa-Archery
On archery square
UB night "Let's Sing about Mongolia Together" show
On Chinggis square
On Chinggis Square, Bayankhoshuu, Maakhuur.
Program of 12th July, Sunday
"Soyolon" (5>years old) horse race
Khui Doloon Khudag
Finale of Knuckle throwing
Knuckle throwing tent
Middle round of Khasaa-archery
On archery square
Third round of National wrestling
Third round of Children wrestling
"Daaga" (2>years old) horse race
Khui Doloon Khudag
Fourth round of Children wrestling
Last round of Khasaa-archery
On archery square
Prize ceremony for Knuckle throwing
Knuckle throwing tent
Final archery of best 8 archers
On archery square
Fifth round of National Wrestling
President will hand the grades and prizes to winner archers and Knuckle throwing
Sixth round of National wrestling
Fifth round of Children wrestling
Declaration of first 5 horses. President will hand prizes to horse-race children jockeys
Sixth round of Children wrestling
Seventh round of National wrestling
President will prize the wrestlers who fulfilled who met requirements of State Nachin and Khartsaga
Eighth round of National wrestling
Seventh round of Children wrestling
President will prize the wrestlers who fulfilled who met requirements of State Zaan
Ninth round of National wrestling
President will prize the finalist-wrestlers
President will address closing speech
Closing Ceremony of Naadam
Transportation ceremony of State Horse Hair Banners to Government House.
Mongol Naadam Festival Program – gogo.mn, June 29
Elbegdorj: Mongolia, Myanmar Will Implement "M2" Relation Model
Ulaanbaatar, June 29 (MONTSAME) President of Mongolia Ts.Elbegdorj highlighted that Mongolia and Myanmar recognized cooperation opportunities in mining and energy sectors, at the press conference called by the heads of state of the two countries at State House on June 29.
"We agreed to exchange business delegates in these sectors. Also, an opportunity of great cooperation awaits in the tourism sectors of two countries", he said and mentioned that Mongolia and Myanmar can, as well, cooperate in air transportation.
As the two countries follow Buddhism, added the President, we have cultural and historic closeness. The President expressed support for his Myanma counterpart's proposal for business cooperation.
"As we know, Myanmar is making transitions to democracy and market economy, and is expecting a parliamentary election in 2015", remarked the President and said Mongolia will send delegates to share experiences and provide training prior to the parliamentary election.
"Mongolia plus Myanmar creates 'M2', a type of unique relations and cooperation that has been discussed by two sides for several years. We agreed to implement the model of relations and to cooperate in the ASEM Chairman's Support Group", noted Mr Ts.Elbegdorj and once again wished a warm welcome to Mongolia.
Mongolia and Myanmar Sign Cooperation Documents on Tourism, Urban Development, Trade
Ulaanbaatar, June 29 (MONTSAME) Documents of cooperation in tourism, urban development and trade were signed Monday at the Nine White Banners Hall of State House. President of Mongolia Tsakhiagiin Elbegdorj and President of the Republic of the Union of Myanmar U Thein Sein attended the signing ceremony.
An Intergovernmental Agreement on Cooperation in Tourism Sector was signed by Member of Parliament, Minister of Environment Green Development and Tourism of Mongolia D.Oyunkhorol and Minister of Hotels and Tourism of Myanmar Htay Aung.
A Memorandum of Understanding on Cooperation between the Ulaanbaatar City Citizen's Representative Khural and Citizens' Representative Council of Naypyidaw city of Myanmar was signed by a Representative of the Citizen's Representative Khural, Deputy Mayor of Ulaanbaatar in charge of road, transportation and Infrastructure issues N.Gantumur and Representative of the Citizen's Representative Council of Naypyidaw city Kan Chun.
A Memorandum of Understanding on Cooperation between the Mongolian National Chamber of Commerce and Industry and the Union of Myanmar Federation of Chambers of Commerce and Industry was signed by President of the Mongolian National Chamber of Commerce and Industry B.Lkhagvajav and President of the Union of Myanmar Federation of Chambers of Commerce and Industry Win Aung.
U Thein Sein: Mongolia and Myanmar Will Cooperate in Mining, Agriculture and Tourism
Ulaanbaatar, June 29 (MONTSAME) After the individual meeting and expanded talks on June 29, the presidents of Mongolia and Myanmar made a press briefing. The Myanma president expressed satisfaction with his visit, as invited by the President of Mongolia Ts.Elbegdorj, which has become the first-ever visit to Mongolia from Myanmar on a level of head of state.
He thanked Mongolians for the heart-warming hospitality. "I am confident that visit will be an impetus to the relations and cooperation between Mongolia and the Republic of Union of Myanmar. I am pleased to inform you that official talks have concluded some quite efficient and mutually-beneficial deals" said the president of Myanmar.
Mongolia and Myanmar will expand and promote cooperation in many sectors such as mining, agriculture and tourism. He expressed gratitude for the signing of important documents: Agreement on Cooperation in Tourism between the Governments of Mongolia and Myanmar, a MoU between Chambers of Trade and Industry, and a MoU on sisterhood between Ulaanbaatar and Nay Pyi Taw.
As Myanmar is rich with mineral resources, cooperation between the two countries can prosper in extracting sector, he added.
He remarked that the sides agreed to solemnly celebrate the 60th anniversary of the diplomatic ties between the two countries in 2016. Mongolia and Myanmar established diplomatic relations on September 26, 1956.
President U Thein Sein thanked the Mongolian Government for understanding and supporting the democratic renovation in Myanmar, and expressed sincere gratitude for the hospitality of the Government and the people of Mongolia.
PM Saikhanbileg to Pay Working Visit to UK This Week
June 29 (gogo.mn) Prime Minister Ch.Saikhanbileg arrived in Mongolia on June 28 after paying a working visit to USA.
This week, PM has planned to pay working visit to United Kingdom.
During his visit, he is scheduled to hold meetings with entities and organizations which will be invested to energy sector.
Photo Report: PM's Working Visit to USA
June 29 (gogo.mn) Prime Minister Ch.Saikhanbileg paid working visit to USA during June 23-27. Here we are delivering you the photo report of PM`s working visit.
Vice President of the United States Mr. Joe Biden received PM Ch.Saikhanbileg.
PM Ch.Saikhanbileg`s offering to develop the business relations of not only major companies, but also small and medium companies were supported by the US side and Vice President of the United States Mr. Joe Biden stated that he will focus on making progress in trade, economic and business sectors of the two countries.
PM Ch.Saikhanbileg participated and addressed at the U.S.-Mongolia Business Forum. During his address, he emphasized that Mongolia will be long-term reliable business partner.
He met with the Executive Vice President and CEO at the International Finance Corporation (IFC) Jin-Yong Cai and Executive Vice President and Chief Executive Officer of the Multilateral Investment Guarantee Agency (MIGA) Keiko Honda.
IFC has opened its representatve office in Ulaanbaatar city in 1997 and is running its activity to support finance sector, develop infrastructure and stable mining, support small business and economic diversification, consulting and supplying financial products. IFC invested USD 470 million to Mongolia.
PM Ch.Saikhanbileg met with the senior U.S. Senator from Arizona John Sidney McCain. Mongolia to celebrate its 25th anniversary of conducting the first free and democratic election in July, 2015. In this regard, U.S. Senator John Sidney McCain offered to approve U.S. Congress decree to support the Mongolia's democracy.
Prime Minister Ch.Saikhanbileg met with the Member of the U.S. House of Representatives Peter James Roskam. Mr. Peter James Roskam expressed his gratitude to PM Ch.Saikhanbileg on his visit and noted that this visit and talks will be important contribution to cooperation and relation of two countries.
PM Ch.Saikhanbileg met with Member of the U.S. House of Representatives Joseph Pitts and Jim McDermott. They are Co-chairs of the Congressional Mongolia Caucus.
PM Ch.Saikhanbileg met with the Managing Director at the World Bank Sri Mulyani Indrawati. The World Bank announced to invest USD 100 million to Mongolia.
Prime Minister Ch.Saikhanbileg met with Mr. Daniel Silicon, Director of Governmental Cooperation Affairs at JP Morgan Bank, which is one of the first major commercial banks in U.S. They discussed on establishing joint investment fund worth USD 450 million and they agreed to invest USD 200 million from each parties.
PM Ch.Saikhanbileg paid visit at Microsoft Corporation's Innovation and Policy Center. During his meeting with the authorities of Microsoft Corporation's Innovation and Policy Center, PM Ch.Saikhanbileg said that project to deliver 180 state services electronically to the public is ready to be implemented.
On the first day of his visit PM met with representatives of Stanford University Medical School led by Prof. Jeffrey Glen. Sides have exchanged their views on establishing bio technology and bio supplement factories in Mongolia and on possibilities of conducting joint research in this field.
Prime Minister meets UN leaders in NY
June 29 (news.mn) During his official visit to the United States, Mongolian Prime Minister Ch.Saikhanbileg met some senior representatives of the United Nations. Mr. Saikhanbileg in a meeting with Deputy Secretary-General of UN, Mr. Jan Eliasson, noted that he is very glad that the relationship between Mongolia and the UN is deepening. They shared their opinions.
Mr. Eliasson also expressed his gratitude for the Mongolian contribution in providing troops for participating in UN the peacekeeping operations.
After this meeting, the Prime Minister also met UN Assistant Secretary-General for Human Rights, Ivan Simonovic, who expressed his thanks to Mongolia for being a democratic-role model country in Asia, and that UN is ready to co-operate to continue supporting human rights. In addition, the UN supports the initiatives of the President of Mongolia, in particular abolishing the death-penalty, and hopes that the necessary legal steps will be taken to bring this about.
Prime Minister Meets UN Leaders – Montsame, June 29
EU Pledges Support to Mongolia in Hosting ASEM Summit
Ulaanbaatar, June 29 (MONTSAME) In conjunction with organizing of the 11th ASEM Summit in Ulaanbaatar, the Minister of Foreign Affairs of Mongolia Mr L.Purevsuren Monday received a delegation of the European Union (EU) headed by Mr Michael Metissen with a working visit here.
The Foreign Minister said that hosting the ASEM Summit is a great honor, and added Mongolia is thankful to the EU and its members for expressing their willingness to cooperating with Mongolia in hosting the 2016 ASEM Summit. In addition, Mr Purevsuren hoped that the EU will share its experiences in order to organize the forthcoming ASEM Summit and running events for the 20th anniversary of the ASEM to be celebrated in Mongolia.
A chief consultant to the EU External Relations Office on ASEM affairs Mr Metissen pointed out that the EU will help Mongolia to host the ASEM Summit.
Following the meeting, the EU delegation will get acquainted with preparation works of the ASEM Summit and will determine directions of collaborating with Mongolia and rendering assistance apart from sharing experiences.
Indian Mongolist Awarded Friendship Medal by Mongolia President
Ulaanbaatar, June 29 (MONTSAME) Upon the Decree of President of Mongolia, a Mongolist from India, Mr. Sharad Kumar Soni was awarded the Friendship Medal of Mongolia on June 26.
The Presidential Decree says: "On the occasion of the 60th anniversary of the establishment of diplomatic relations between Mongolia and the Republic of India, a Mongolist from the Jawaharlal Nehru University, Mr. Sharad Kumar Soni to be awarded the Friendship Medal of Mongolia for his contribution to friendship and cooperation between the two countries and Mongolian studies".
Dr Soni mainly studies the Mongolia-Russia and Mongolia-China relations. His articles and researches about economics, politics and geopolitics are published in Indian and international journals.
Mongolia FM Meets German Mongolists in Bonn
Ulaanbaatar, June 29 (MONTSAME) On June 26, the Minister of Foreign Affairs of Mongolia L.Purevsuren met with German scholars of Mongolian studies in Bonn, Germany. The sides discussed about current status of Mongolian studies in Germany and ways to improve development of this field.
Professors at the University of Bonn noted that Mongolian President Ts.Elbegdorj's initiative and support contributed greatly in reviving the operations of the Department of Mongolian Studies, as well as in intensifying the researches and encouraging the Mongolists. The department have been actively operating since the signing of Agreement of Cooperation between the University of Bonn and the Mongolian Ministry of Education Culture and Sciences in 2014, said Prof I.Stolpe, the head of Mongolian studies department at the University of Bonn.
During his visit to Germany in 2012, the President promised to give financial support for promoting Mongolian studies in Germany. In regard to this, the Ministry of Education Culture and Sciences of Mongolia and the University of Bonn has inked a Cooperation Agreement for 2014-2024. According to the document, half of all financial support for Mongolian studies in Germany will be provided by Mongolia.
PLA art delegation holds first show in Mongolia
ULAANBAATAR, June 29 (ChinaMil) -- The art delegation of the People's Liberation Army (PLA) held its first show at the Ulaanbaatar Central Palace of Culture during a visit to Mongolia on June 28, 2015.
Battur, deputy minister of the Ministry of Defense of Mongolia, Yang Qingdong, chargé d'affaires of the Chinese Embassy to Mongolia, and representatives from overseas Chinese, shared this feast of art with local audience.
The PLA art delegation of 106 people flew to Mongolia on June 26 for a 10-day trip to visit and perform. The delegation consists of people from the Song and Dance Troupe of the PLA General Political Department, the PLA Academy of Arts and the Acrobatic Troupe of the PLA Guangzhou Military Area Command (MAC).
Zhang Qianyi, head of the Song and Dance Troupe of the PLA General Political Department, said that this delegation brings together outstanding military artists from the PLA. The carefully-prepared programs embody the characteristics of the Chinese military and also demonstrate the spirit of the Chinese people. He hopes to enhance mutual trust and friendship between the two militaries through their visit and performance in Mongolia.
The PLA art delegation will have three performances in Ulaanbaatar and Darhan, including a special show for the Mongolian troops. During their visit, the delegation will also carry out artistic exchanges with the song and dance troupe of the Mongolian military.
Press Institute, UNDP Join to Hand Awards for Best Environmental Journalism
Ulaanbaatar, June 29 (MONTSAME) In view of the World Environment Day, the 2015 competition on the best environmental media products was organized by "Green World" Environmental Journalism Club of the Press Institute of Mongolia in cooperation with UNDP Mongolia. UNDP supported the competition through its two projects implemented jointly with the Ministry of Environment, Green Development and Tourism: "Ecosystem Based Adaptation Approach to Maintaining Water Security in Critical Water Catchments in Mongolia" and "Mongolia's Network of Managed Resources Protected Areas".
The competition was organized to draw attention to the most pressing environmental issues Mongolia is facing currently. It aims at promoting and inspiring the coverage of environmental journalism in Mongolia, bringing environmental concerns to the attention of decision makers, raising awareness and fostering debate on those issues.
A total of 17 media products were received for the period of March-June. Awardees of Topic 1 - Climate change and water resource saving are: 1st place: 'Let everyone plant 24 trees' (article), G.Batzorig, National Times News Journal; 2nd place: 'Water engineers now became 30' (article), R.Batzorig, National Times News Journal; and 3rd place: 'Let's hand over Green certificate to every child' (article), D.Ulziisaikhan, MONTSAME agency.
Awards of Topic 2 – "Special protected area" went to: 1st place: 'Citizen's Representative Khural of Ulaanbaatar city destroyed what they created' (article), Ch.Dashdeleg, freelance journalist; 2nd place: 'Tsagaan deglii cave should be protected' (article), B.Solongo, Zuunii Medee Newspaper; and 3rd place: "A Growing Tree" (radio program), D.Tsengenjav, Mongolian National Radio.
The awarded media products will be used in the future training events for environmental education of Mongolian journalists, reported the UNDP in Mongolia on June 15.
Inspectors find no substance to fake rice rumor
June 29 (gogo.mn) Latest trend on the social media were the post related to the so-called 'fake' rice, where the poster complaining about rice bought in store to be fake and not good for consumption. Therefore Plants and Quarantine Inspectors of Special Inspection Authority conducted investigations at the markets and stores.
Result of the investigation did not reveal any rice that could be labelled as fake. Capital City Special Inspection Authority tried contacting the first poster of the 'fake' rice post into Facebook, but never succeeded to getting any reply back.
Moreover, officials at the Special Inspection Authority requested residents to approach them first and get the lab tests done before doing any conclusions. Residents are able to contact Capital City Special Inspection Authority at 70128012 and get tested their rice if any suspicions of being fake are present.
State Opera House to Mark 40th Anniversary of First Swan Lake Performance
June 29 (news.mn) The State Opera and Dance Theatre is to celebrate the 40th Anniversary of the first performance of "Swan Lake" in Mongolia; Tchaikovsky's famous ballet will be performed on 27th-28th June. The first performance on a Mongolian stage took place on 28th June 1975 with the choreography of B.Jamiyandagva. In main roles, Yu.Oyun was chosen for Odette and Odile, E.Oyunbat for Siegfried, N.Baatar for Rothbart, and Kh.Ganbaatar for the clown.
This year, "Swan Lake" will be played for the 140th and 141st times in Mongolia. The tickets are being sold in State Opera and Dance Theatre ticket office and via the website www.monda.mn.
Chinggis Khaan Judo Grand Prix starts Friday
June 29 (news.mn) The "Chinggis Khaan Grand Prix" judo competition will take a place on 3th-5th July 2015 in the "Buyant Ukhaa Sport Complex" under the auspices of the Presidential Administration. According to the rules of the International Judo Federation (IJF), the gold medal winner should take 300 points, silver 180 points, and bronze 120. The best judo wrestlers of 50 countries have applied to participate in this competition, which operates in accordance with Olympic rules. A special television crew from the IJF will broadcast the competition live to 180 countries online. As the organizing and host country, Mongolia will have ultimate rights as to which of the 56 wrestlers (judokas) will be allowed to participate in the competition. The total budget of competition is approximately MNT 1 billion. Also, the IJF has appointed 15 judges and Mongolia has appointed G.Nyamtsog an International A-class judge in the "Chinggis Khaan Grand Prix". The price of tickets is MNT 20,000.
6th Floor, NTN Tower
Baga Toiruu, Chingeltei District 1
Ulaanbaatar 15170, Mongolia
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