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Monday, June 3, 2013

[Leighton increases claim against MEC, Mongolia amends Anti-Money Laundering Act avoiding blacklist, and Canada/Mongolia sign Defence MOU]

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Б.Мөнхдөл: Шинэ хуулиар дотоод мэдээлэл ашиглах талаарх зохицуулалтыг чангатгаж өгсөн

5-р сарын 29 (BloombergTV.mn) Үнэт цаасны зах зээлийн тухай хуулийн ач холбогдлын талаар Хөрөнгийн зах зээлийн шинжээч Б.Мөнхдөлтэй ярилцлаа. 

-Үнэт цаасны зах зээлийн тухай хуулинд гадаадад хувьцаагаа арилжаалдаг компаниуд дотоодод ч мөн арилжаалах дэд бүтцийг нь зохицуулж өгсөн байгаа. Энэ хэр боломжтой вэ? 

-Хууль батлагдах хүртэл үнэт цаасны зах зээлийн орчны дэд бүтцийг нь шинэчилж, төлбөр тооцооны "Т+3" горимыг нэвтрүүлэх зэрэг олон ажлыг Монголын хөрөнгийн бирж болон Санхүүгийн зохицуулах хороо хийж гүйцэтгэсэн. Харин энэ хууль нь шинэчлэлийн явцыг гүйцээхэд үлдээд байсан сүүлийн том алхам байсан юм. Хууль хэрэгжиж эхлэх үе буюу ирэх оны нэгдүгээр сарын 1-н хүртэл хөрөнгийн зах зээлийн оролцогчид, брокерууд шинэ зохицуулалтад өөрсдийгөө бэлтгэх хэрэгтэй байгаа. Удахгүй шинэ кастодиан банкууд ч мэргэжлийн оролцогч болж эхэлнэ. Тиймээс хууль хэрэгжиж эхлэх хүртэл бэлтгэлийн хугацаа олгосон нь зөв алхам байсан гэж бодож байна. 

-Гадаадад гарсан компаниуд Монголын хөрөнгийн бирж дээр хувьцаагаа арилжаалах өөр ямар боломж байгаа вэ? 

-Торонто болон Австралийн Хөрөнгийн бирж дээр бүртгэлтэй компани байлаа гэж бодоход, тухайн бирж дээр байгаа хувьцаагаа кастодиан банкаар дамжуулан Монголын хөрөнгийн бирж дээр үнэт цаас хэлбэрээр арилжаалах боломжтой болж байна. Тэгэхээр заавал хөрөнгийн биржийн бүртгэлийн шаардлага хангах албагүй буюу "Mongolian Depository Receipt" /MDR/ гэсэн шинэ бүтээгдэхүүний төрөл гарч ирнэ гэсэн үг. Жишээлбэл, "Оюутолгой"-н толгой компани болох "Turquoise Hill Resources"-ийн хувьцаа Монголын хөрөнгийн бирж дээр арилжигдаж эхэлснээр дотоодын хөрөнгө оруулагчид болон иргэд, аж ахуйн нэгжүүд "Оюутолгой"-н төсөлд шууд хөрөнгө оруулж, хувь эзэмших боломж нээгдэх юм. 

-Иргэдийн оролцоог хөрөнгийн зах зээлд хэрхэн идэвхжүүлэх вэ. Энэ талаарх заалт хуулинд бий юу? 

-Өмнөх хуулиар аливаа асуудлын хариуцлага нь бирж болон Санхүүгийн зохицуулах хороон дээр буудаг байсан. Үүнээс болж шинэ "IPO" гаргах зөвшөөрөл их хүндрэлтэй, санал болгох үнийг нь тогтооход төрийн зүгээс оролцох тохиодол ч их байдаг. Санал болгож буй хувьцааны үнийг хэт өндөр тогтоосноос болж ханш нь эхний өдрөөсөө шууд унаж, шинэ хувьцаа эзэмшигчид хохирдог. Харин шинэ хуулинд хувьцаа гаргагч компани болоод зуучилж байгаа андеррайтер, брокер зэргийн хариуцлагыг өндөр болгож өгсөн. 

-Хөрөнгийн бирж дээр дотоод мэдээлэл ашиглах тохиолдол их гардаг гэж ярьдаг. Энэ хүрээнд ямар нэгэн зохицуулалт хуулинд тусгасан уу? 

-Хөрөнгийн бирж дээр бүртгэлтэй компани хувьцааны ханшид нөлөөлөхүйц мэдээг олон нийтэд тэгш тараах үүрэг хүлээж байдаг. Энэ мэдээллийг олон нийтэд мэдэгдэхээс өмнө хэн нэгэн ашиглаж арилжаанд оролцохыг дотоод мэдээлэл ашиглах гэдэг. Гэхдээ дотоод мэдээлэл ашиглахыг өмнөх хуулинд ч хориглосон байгаа. Харин шинэ хуулинд дотоод мэдээлэл, түүнийг ашиглах зэргийг илүү нарийвчлан тодорхойлж зохицуулалтыг нь чангатгаж өгсөн байгаа. 

-Хувьцааны ханшийг зориудаар өсгөж, бууруулах явдал олон гардаг. Үүнээс сэргийлэх боломж бий юу? 

-Шинэ хуулийн дагуу бирж дээр чөлөөтэй арилжаалах компанийн хувийг нь заагаад өгчихсөн байгаа. Цөөхөн хувьцаа бирж дээр чөлөөтэй арилжигдах боломжтой байдаг учраас цөөн хүмүүс хуйвалдаж, үнийг нь зориудаар өөрчлөх нөхцөл гарч ирээд байгаа юм. Тэгэхээр олон нийтийн дунд чөлөөтэй арилжих хувьцааны тоо, ширхэг нь олон байх тусмаа үнийг хуурамчаар өөрчлөх боломж багасна. Жишээ нь бирж дээр даваа гарагт наймхан сая орчим төгрөгийн арилжаа хийгдсэн байсныг харахад, хэдхэн сая төгрөгтэй хүн хувьцааны ханшийг зориудаар өөрчлөх боломжтой байсан гэсэн үг. 

-Манай улсад үйл ажиллагаа явуулдаг олон компани дэлхийн хөрөнгийн зах зээлд хөл тавьчихлаа. Таны бодлоор эдгээр компани олон улсын хөрөнгийн зах зээлд гарах сонирхолтой бусад компаниуддаа үлгэр дууриал болохоор ажиллаж чадаж байгаа болов уу? 

-Гадаадын томоохон хөрөнгийн биржүүд мэдээж олон жилийн туршлагатай, өндөр зохицуулалтай биржүүд байгаа. Энэ жишгийг Монголын хөрөнгийн бирж дээр авчрах хэрэгтэй. Гэхдээ Австрали ч юм уу Торонтод нэг, хоёр сая доллар босгохын оронд Монголын хөрөнгийн бирж дээр нэг, хоёр сая байтугай хөрөнгө чөлөөтэй өсгөх боломжтой. Монголд үйл ажиллагаа явуулж байгаа учраас Монгол хөрөнгө оруулагчдыг хувьцаа эзэмшигчдийн дунд байлгах нь компанид өндөр ач холбогдолтой. Гадныхан Монголд орж ирээд байгалийн баялгийг ухаад явчихлаа гэж хардахын оронд, өөрсдөө хувь эзэмшээд явах боломж улам нээлттэй болж байна. 

-Монгол Улс өөрийн мөнгөн тэмдэгтээр үнэт цаас гаргах тухай Азийн хөгжлийн банкны жилийн уулзалтын үеэр ярилцсан байсан. Хэрэв төгрөгийн бонд гаргавал ямар давуу талтай вэ? 

-Олон улсын зах зээлд төгрөгөөр бонд гаргах боломж хараахан бүрдээгүй байх. Учир нь төгрөг маш их хэлбэлзэлтэй байдаг. Төгрөгийн ханш сүүлийн нэг жилийн дотор нэлээд унаж байгаа. Ийм хэлбэлзэлтэй ханшийн хувьд, бондыг худалдаж авах эх үүсвэр нь төгрөг бус гадаад валют байх учраас олон улсын төгрөгийн бонд худалдан авах нь хэт эрсдэлтэй алхам. Харин дотоодын зах зээлд, олон нийтийн дунд төгрөгийн бонд гаргаж, урт хугацааны хөрөнгө оруулалтад чиглүүлэх нь зүйтэй болов уу. 

Эх сурвалж

 

Overseas Market

WOLF: SUKHBAATAR (SB) BLOCK PROJECT UPDATE

June 3 -- Wolf Petroleum Limited (the Company, ASX:WOF) is pleased to announce SB Block's geophysical programme results. Wolf has completed its first year contract exploration commitments and is now proceeding to second year exploration contract commitments.

Highlights

Ø  Reprocessed and re interpreted the gravity and magnetic data collected earlier in 2013.

Ø  Redefined four sub basins, three of which are more than 4,000 meters deep, with Cretaceous-aged rocks buried.

Ø  The size of the target sub basin is extremely extensive with over 3,000 km2.

Ø  Completed remote sensing programme, which incorporated reprocessed gravity and magnetic data with satellite imagery and digital elevation model (DEM) data.

Ø  Areas of high heat flow identified, which can enhance hydrocarbon cracking and migration.

Ø  Alteration minerals identified in four sub basins suggesting hydrocarbon seepage.

Ø  2D Seismic has been planned and is ready to commence.

Ø  All results have been successfully submitted to and approved by the Petroleum Authority of Mongolia.

Link to release

 

MEC: UPDATE ON THE CONTRACTUAL DISPUTE WITH LEIGHTON

Leighton served another writ of summons on the Company claiming for a sum of MNT7,723,952,999 (approximately HK$41,714,450), allegedly for the contractor's fees incurred from September 2012 up to December 2012.

Reference is made to the announcement of Mongolia Energy Corporation Limited (the "Company," HKEx:276) dated 14 February 2013 (the "Announcement") in relation to MoEnCo LLC's contractual dispute with Leighton LLC. Unless otherwise defined, terms used in this announcement shall have the same meaning as defined in the Announcement.

Subsequent to the writ of summons issued by Leighton claiming for MNT12,162,710,117 (Mongolian Tugrik) (approximately HK$65,686,673) against the Company ("1st Writ"), Leighton applied for the case to be heard by way of Summary Application under Order 14 of the Rules of the High Court. The Company has filed its opposition and a date for the said hearing has been fixed which will be heard on 10 July 2013. The Company has instructed its legal adviser to oppose Leighton's claims in the coming hearing.

Apart from the 1st Writ, Leighton duly served another writ of summons on the Company through the Company's legal adviser on 30 May 2013 claiming for a sum of MNT7,723,952,999 (approximately HK$41,714,450), allegedly for contractor's fees incurred from September 2012 up to December 2012. The Company disputes and will vigorously contest the claims and take all steps as appropriate to defend the proceedings.

Given that the litigation process is at an early stage, the Company considers that it is not practical to assess its potential impact on the Group at this moment. The Company will keep the shareholders of the Company and public investors informed of any further material developments in connection with the above actions as and when appropriate.

Shareholders of the Company and public investors are reminded to exercise caution when dealing in the securities of the Company.

Link to release

 

Undur Tolgoi to Acquire Interest in Ochiriin Gold Prospect

ULAANBAATAR, MONGOLIA--(Marketwired - May 31, 2013) - Undur Tolgoi Minerals Inc. ("UTM" or the "Company") (CNSX:UTM) is pleased to announce it has reached a definitive agreement to subscribe for 75,950 common shares representing 5.05% of Anya-2 Sarl ("Anya"), a private Luxembourg company for a total consideration of US$125,000. Under this agreement, UTM shall be entitled to subscribe for additional shares of Anya, so that its aggregate shareholding in Anya may reach 30.25%. Anya is a wholly owned subsidiary of Hulaan Coal Corporation ("Hulaan"), a private Canadian company. Anya in turn, owns 66% of Western Minex LLC ("WM"), a private Mongolian company, which in turn owns the Ochiriin Bulag Gold Prospect (the "Project" or the "Bulag").

Mr. Donald Padgett, President and CEO of UTM, has been elected as a manager of Anya. A manager is similar to a director for a Luxembourg company.

The Project property is 232.7 square kilometers and is located 10 kilometers from the Chinese Bataag border crossing and close to the sub provincial centre of Burenkhaan (AKA Bulgan).

The property was originally geologically mapped by the Russians in the 1980s. An Ikonas Aerial program and interpretation was completed in 2011. In 2012, three closely spaced soil programs were undertaken which produced Au values of up to 657 ppb. Based on analysis of this historical exploratory activity, UTM management and their technical advisors have identified a significant gold anomalism and believe the Bulag Project has the potential to host a large gold discovery. The Bulag Project is on-trend with the geological gold belt that hosts the largest gold deposits in central Asia.

Accordingly both, James Passin and Don Padgett, Company Chairman and CEO respectively concurred that in their opinion the planned 2013 work program which includes a closely spaced vector induced polarization (VIP) program plus a 2000 metre drill program could be transformational by identifying optimal drill-hole orientation for a future resource defining exploration program.

Mr. Passin commented, "This unique opportunity was a direct result of long standing professional relationships in Mongolia. This seasons work program should provide the Company and its shareholders with a compelling 2013. We are excited about our participation in what could be an emerging new gold province immediately adjacent to a border crossing with China."

Link to release

 

Kincora Grants Incentive Stock Options

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 31, 2013) - Kincora Copper Limited (the "Company", "Kincora") (TSX VENTURE:KCC) announces that, in accordance with the Company's stock option plan, it has granted to certain directors, officers and consultants incentive stock options to purchase up to an aggregate of 9,100,000 common shares exercisable on or before May 31, 2017 at prices per share of $0.105 (as to 2,275,000 options), $0.135 (as to 2,275,000 options), $0.165 (as to 2,275,000) options and $0.195 (as to 2,275,000 options).

Commenting on today's announcement, Sam Spring, President and CEO of Kincora, said:

"The grant of these stock options follows the recent adoption of a new remuneration policy for directors such that there is a commitment for the on-market acquisition of shares and is a further step to align directors, officers and key consultants interests with that of shareholders. The option package has been staggered to better reflect a performance based structure to create shareholder value with the minimum exercise price being set at the issuance price of the last capital raising."

Link to release

 

Prophecy Provides Update on Closing of $1.14 Million Final Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 31, 2013) - Prophecy Coal Corp. ("Prophecy" or the "Company") (TSX:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) provides the following update on the private placement which was the subject of its February 7 and April 16, 2013 news releases (the "Placement").

Prophecy expects shortly to close a second and final tranche of the Placement, which will involve the issuance of 8,142,857 units (each a "Unit") of the Company for aggregate consideration of $1,140,000. Each Unit consists of one common share (a "Share") and 0.75 common share purchase warrant (a "Warrant"), at a purchase price of $0.14 per Unit. Each whole Warrant is exercisable for one common share of Prophecy at a price of $0.18, expiring two years from the date of issue. It is anticipated that the final tranche closing will happen during the week of June 2-June 8, 2013.

The Company amended the Placement to include an additional warrant ("Adjustment Warrant") in each Unit sold in the final tranche. Each Adjustment Warrant may be exercised for no additional consideration for a period of 12 months following the closing of the final tranche of the private placement, for a fraction of a common share of Prophecy. The fraction will be calculated by first dividing the Unit subscription price of $0.14 by the market price (subject to a floor market price of $0.105) at the time of exercise, then subtracting one (1) from that resulting number to determine the fraction. Market price is defined as the 20 day moving average price for the Company's common shares. The Adjustment Warrants must be exercised in their entirety and may not be exercised in part, and the holder of Adjustment Warrants may not sell any securities of the Company within 20 days prior to exercise. Adjustment Warrants may also only be exercised to the extent that the holder continues to hold the shares and warrants comprising the Units of which the Adjustment Warrants formed part.

On April 16, 2013, the Company announced that it had completed the closing of a first tranche of the Placement, raising $613,560 through the issuance of 4,382,571 Units. The Company has applied to the TSX for approval to issue Adjustment Warrants to subscribers who purchased units in the first tranche closing of the Placement. If approved by the TSX, the issuance of these Adjustment Warrants will be subject to disinterested shareholder approval, which will be sought at the Company's next shareholders' meeting.

Upon closing of the final tranche, in total the Company will have raised $1,753,560 through the issuance of 12,525,428 Units in the Placement (exclusive of the Adjustment Warrants). The Placement was reduced from the originally announced 60 million Units due to the prolonged Chinese regulatory approval process required by NewMargin Prophecy Coal Limited, which is at arm's length to the Company, to invest in Canada, and adverse market conditions, resulting in an amendment to NewMargin Prophecy Coal Limited's original subscription of 40 million Units. Insiders purchased 1 million Units of the placement.

Finder's fees of 6% were paid in connection with a portion of the first tranche of the Placement. All securities issued in connection to the Placement are subject to a 4 months and one day hold period from the date of security issuance.

Link to release

 

Guildford Coal Appoints Chief Financial Officer

May 31 -- Guildford Coal Limited (ASX:GUF) is pleased to announce the appointment of Mr Michael Wotherspoon to the position of Chief Financial Officer. Mr Wotherspoon is a Chartered Accountant and a member of the Institute of Chartered Accountants of Australia and a member of the Australian Institute of Company Directors. Mr Wotherspoon holds a Bachelor of Commerce (Accounting and Marketing) from the University of New South Wales.

Mr Wotherspoon will report to the Managing Director, Mr Peter Westerhuis and will have carriage of the financial, commercial, treasury and strategic management functions at Guildford Coal.

Mr Wotherspoon comes to Guildford with extensive finance and executive leadership experience. Mr Wotherspoon was Chief Financial Officer of Actis, a leading emerging markets private equity firm, and most recently Chief Financial Officer of Tinkler Group Holdings, a diverse group with significant focus on the resources sector. Earlier in his career Mr Wotherspoon worked for approx. 10 years with Ernst & Young as a professional advisor to the firm's clients in Australia, UK, USA and India.

Mr Wotherspoon will start on 11th June 2013, relocating from Sydney to permanently reside with his family in Brisbane.

Link to release

 

Draig Resources Investor Update, June 2013

May 31, Draig Resources Limited (ASX:DRG) --

Link to preso

 

Moody's downgrades Winsway from B2 to B3; outlook negative

[ET Net News Agency, 30 May 2013] Moody's Investors Service has downgraded Winsway Coking Coal Holdings Ltd's (01733) corporate family rating to B3 from B2 and its senior unsecured debt ratings to Caa1 from B3

The ratings outlook is negative. This concludes the review for downgrade initiated on April 3, 2013 

The downgrade reflects our expectation that Winsway's profitability will continue to be under pressure and its EDITDA in the next 12 months will not improve from 2012. Thus, debt leverage -- measured by Debt/EBITDA -- is expected to be weak at 12x -- 15x, which positions the company in the lower B level," said Alan Gao, a Moody's Vice President and Senior Analyst.

Link to article

 

Bestway hires contractor for Mongolian tungsten mines development

[ET Net News Agency, 24 May 2013] Bestway International (00718) said its two indirectly wholly owned subsidiaries entered into a memorandum of understanding with China Metallurgical Geology Bureau of Shandong to engage the latter to conduct mining activities, including development and exploitation, of four Mongolian tungsten mines of the Group.

The proposed service period is 20 years and the contractor undertakes to commence exploitation of the mines by no later than the end of December 2013.

A wholly owned subsidiary of Bestway was questioned by a Mongolian Province Governor for not doing business in relation to its mining licenses in Mongolia. The subsidiary was required to submit the time of commencing mining operations and the Mongolian Province Governor indicated that he may inform the relevant authorities to revoke the mining licences. While Bestway is still waiting for the advice and legal opinion from its Mongolian legal advisers in respect of the status of the mines as well as the legal environment, it has expedited its overall operating strategies over the mines and entered into the MOU.

Link to article

Link to 718 release

 

Centerra Gold's Kumtor Mine Resumes Operations

TORONTO, ONTARIO--(Marketwired - June 2, 2013) - Centerra Gold Inc. (TSX:CG) today reported that on Saturday, June 1, 2013 road access to the mine was re-established and national grid power to the mine site was restored. The mine and mill have resumed operations as truck convoys are now able to bring supplies and consumables to site and personnel can be moved to and from the mine. While most mining operations were suspended between May 30 and June 1, the mine continued to operate sufficient equipment to continue to remove ice and waste from the high movement area of the pit. The Company understands that the state of emergency declared by the Kyrgyz Government continues.

Although still under evaluation, the Company does not believe that the suspension of operations will have a significant impact on 2013 forecasted gold production.

Link to release

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Local Market

NatSec Daily MSE Update: Top 20 +0.11%, Turnover 59.2 Million

May 30 (National Securities) Today the MSE TOP20 index went up just 0.11% to 13,750.54 points. 246,731 shares of 20 companies were traded with a value of 59.2 m MNT (U$41K).  

State Department Store JSC (UID) was the largest gainer +12.22% to 420 MNT followed by Niislel Urgoo JSC (NUR) which was up 7.79% to 6,500 MNT. Suu JSC (SUU) and Bayangol Hotel JSC  (BNG) were +3.56% to 80,080 MNT and +2% to 49,000 MNT respectively. Remicon JSC (RMC), the one of the strongest emerging companies on MSE and manufacturer of 5 types of concrete, was the volume leader today, having 226,000 shares traded worth 38.5 million MNT(U$33.7K).   The company's market price was down from 172 MNT to 170 MNT or 1.16%. 

Please click here to the detailed news

Link to report

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Economy

Mongolia: Selected Macroeconomic Indicators, June 2013

June 1 (IMF) --

Link to report

 

Mogi: wanted to include BoM auction and bond news but their site is not function well. Will cover tomorrow.

 

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Politics

Mongolian parliament passes amendment to anti-money laundering, anti-terrorist act

ULAN BATOR, May 31 (Xinhua) -- The Mongolian parliament on Friday passed an amendment to an act aimed at countering money laundering and terrorism financing in the country.

The act ensures legal conditions to prevent illegal funds from being laundered in Mongolia for terrorist activities.

Under the newly revised law, authorities have the right to review any suspicious funds amounting to more than 20 million Tugrug (about 14,285 U.S. dollars) imported or transferred by banks. The review period is three days but can be extended in line with the court's decision.

The Financial Action Task Force (FATF), a global body that sets standards for anti-money laundering and terrorism finance laws, has warned that if Mongolia's existing laws are not modified, it might become a country with a high rate of money laundering.

The FATF urged Mongolia to pass an amendment to the law before June 1, otherwise the country would be included in a blacklist due to its failure to take adequate steps against money laundering and terrorist financing.

Link to article

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Business

PetroChina workers reach deal with employer on wage issue

May 31 (news.mn) Mongolian workers of Petro China Daqing Tamsag LLC that runs oil operations in Tamsag area in Dornod aimag have reached a deal with the Directors of the company on payment issues after prolonged salary increase requests.

The Chinese directors promised to increase the Mongolian workers` salary up to 50-120 US dollars during a three-party negotiation included the workers Trade Union, the employer and the Government on the evening of Thursday May 30th.

Over 50 Mongolian workers delivered a request to increase salary and improve working condition to Petro China Daqing Tamsag  in April 2012.

But the Chinese employer kept delaying negotiations on the issue and failed to answer the request.

150 out of 750 Mongolian workers who are employed in Petro China Daqing Tamsag are support personnel whereas over 1500 Chinese workers are hired with more attractive salary than Mongolian workers.

Mongolian workers earn 300,000-400,000 MNT for 40 continuous working days. This is why the Mongolian workers insisted on a salary increase.

The Petro China Daqing Tamsag increased the salary for Mongolian workers to 100,000 MNT but the company put on more taxes instead so the employees could not benefit from  the salary increase.

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Mongolia's first KFC opens in UB

June 2 (UB Post) Yum! Brands, a global company based in Kentucky, USA, partnered with Tavan Bogd Food Co., Ltd to open the first KFC restaurant in Mongolia—located in Ulaanbaatar near the central square—Wednesday afternoon.

Secretary-General (Mogi: probably means State Secretary) of the Ministry of Industry and Agriculture H.Zoljargal, Executive Director of TavanBogd Food Co., Ltd D.Khulan, American Ambassador to Mongolia, Piper Anne Wind Campbell, and CEO of Yum! Brands International, Mickey Pant (Mogi: Micky Pant) attended the opening ceremony and cut the ceremonial ribbon to officially open KFC's newest branch. The store was opened to the public later that day and drew large crowds of customers into the night.

"All of us at Yum! are absolutely delighted to be able to bring this secret recipe to Mongolia," said Pant during a speech. According to D.Khulan, the company began planning the restaurant just a little more than one year ago, making it one of the fastest openings into a new country Yum! Brands has ever accomplished.

Forbes ranked KFC second only to McDonald's as the world's most widespread restaurant chain. Its website claims that there are over 18,000 KFC outlets in 120 countries, Mongolia being the latest. With KFC enjoying tremendous success in China (a study claims that a new store opens every day there) and with Mongolia's economy on the rise, the company plans to open as a many as three more locations in the country by next year – fifteen by 2018.

"This is the first of many, many stores," said Pant.

"The opening of this first store was, comparatively, very fast," said D.Khulan. "That is why we are only hoping to open three more this year." She mentioned that the next planned branch will be located at Smart Department Store, in Ulaanbaatar's 3rd district.

According to Ambassador Campbell, this KFC location represents the first time a "major" American franchise has moved into Mongolia. "How appropriate that the home of the secret history is now the home of the secret recipe," she said. Campbell predicts that she, along with many of the United States embassy staff, will frequent the restaurant, enjoying her two favorite dishes – the coleslaw and chicken sandwich.
But beyond bringing its secret combination of eleven herbs and spices to Ulaanbaatar, the store carries significance in the development of economic relations between the rapidly evolving Mongolian economy and American industries.

"I think that (Mongolian-American) relations are very strong and cover so many areas, but we are really now focusing on increasing economic ties," said Campbell. "So having a major franchise like Yum! come to Mongolia is clearly an additional step and a different type of business engagement."

Chicken in a land of mutton

Although the iconic Colonel Sanders's face sits above the doors, the Mongolian KFC restaurant is far from the one the Colonel established in his time. It spans 600 square meters across two levels (one underground), and features a gaming area for children with a light display on the floor, multiple flat-screen televisions, a phone charging station, 107 seats and free Wi-Fi. The interior design features are modern, including a small pebble garden with light-up orbs and a state-of-the-art restroom.

"I'm very impressed. I did not expect this level of artwork," said Pant while taking a final tour of the space before the ceremony.

In fact, the designers, from a Singapore construction company that builds many of KFC's Asian branches, also attempted to include features directed at traditional Mongolian culture. Cross-hatching surrounds some of the booths, which are supposed to represent the inside of a Mongolian ger.

"Mongolian traditional ger walls were built (around the seating), so that you could imagine yourself sitting in a ger while eating this worldwide brand's tasty chicken," said D. Khulan.

But, like the combination of modern and traditional design elements, the combination of a chicken restaurant in Mongolian's food market (chicken inside a ger) could seem contradictory. A study done by an independent research company prior to the store's opening found that the vast majority of Mongolians only ate beef and mutton when eating out. Chicken was very rare. However, the study also revealed that Mongolians did not avoid chicken, but rather could not eat it because there were not many quality options available.

"The fact that mutton and beef were widely consumed could have been considered as a risk," said D.Khulan. "But when we found out (the results of the survey), the risk converted into a possibility."

In order to effectively introduce its products into the market, KFC plans to implement a similar strategy to the one it used in China, changing the menu to fit local tastes and hiring managers among the local population.

"We have a lot of products that are sold in neighboring markets such as China and Russia that we will test here," said Pant. "And we will also use local feedback to create completely local foods. We will do that in Mongolia in the next year."

International standards in the local market

Another strategy the company plans to take in introducing its food is promoting its high-quality food technology and treatment. The kitchen equipment was imported from countries like the United States and Germany and, according to Pant, are as state-of-the-art as the kitchen supplies anywhere else. In addition, the food will be kept fresh by the company's strict standards.

"We are not just bringing in the brand name KFC, but we are bringing into Mongolia international standards," said D.Khulan.

But many wonder, beyond KFC's potential for success in Mongolia, how its presence will affect the rest of Mongolia's restaurant industry. While others remain skeptical, Pant said the new brand will encourage the growth and proliferation of Mongolian food companies, rather than simply out-compete them.

"I think (the Mongolian food industry) will grow extremely rapidly," he said. "We have seen that when international companies (like ours) start their operations, it always improves the quality of local competition. So a lot of local companies will…start seeing a beautiful store like this and open more restaurants."

Because of the new food and technology, the store has drawn many Mongolian university students and graduates to work for it as employees – most of the managers are college graduates, and most of the workers are current students.

Zolbayar, a 23-year-old food and technology student in Ulaanbaatar, is a hall worker for the KFC branch. After a long interview process, he earned the job and now considers it a launching point for a long-term career with KFC.

"There is no place I'd rather be," he said. "It is very nice to have a KFC established in Mongolia and to be able to serve incredible food to customers."

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Diplomacy

Canadian Defence Minister MacKay Signs MOU with Mongolian Minister of Defence

SINGAPORE, SINGAPORE--(Marketwired - May 31, 2013) - Today, the Honourable Peter MacKay, Minister of National Defence met with his Mongolian counterpart, Minister of Defence Dashdemberel Bat-Erdene, and signed a Memorandum of Understanding that solidifies plans for continued defence cooperation and exchanges between the two nations.

"Canada and Mongolia share values of democracy as well as a mutual interest in expanding trade," said Minister MacKay. "The Government of Canada is committed to broadening our defence relationship with Mongolia."

The Memorandum of Understanding sets out further opportunities for defence cooperation between Canada and Mongolia through activities such as information exchanges, visits by civilian and military personnel, military education and training, and international peacekeeping activities including humanitarian assistance.

Canada and Mongolia have a history of cooperation on defence and security issues. Mongolia has been a member of the Military Training and Cooperation Program since 2005. Canada has also been a participant in the joint Mongolia - U.S. hosted annual multi-national peacekeeping exercise, KHAAN QUEST.

Minister MacKay and Minister Bat-Erdene met in Singapore during the 12th annual International Institute for Strategic Studies' Asia Security Summit.

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ANNUAL "SELENGE 2013" RUSSIAN-MONGOLIAN JOINT MILITARY EXERCISES TO BE HELD IN MONGOLIA IN SEPTEMBER

May 31 (InfoMongolia) On May 30, 2013, the Eastern Military District of the Russian Armed Forces reported that the "Selenge 2013" Russian-Mongolian joint military field exercises will be held in the territory of Mongolia at the site namely "Doityn Shar Nuur" in September 2013.

About 300 soldiers of the Eastern Military District stationed in the Republic of Buryatia and about 300 troops from Mongolia will take part in the Russian-Mongolian antiterrorism exercise "Selenge 2013", which has been held annually since 2008.

Russian and Mongolian soldiers will work out joint actions with firing to block and neutralize terror's unit.

It is noted that the representatives of the District Command and the Armed Forces of Mongolia approved the plan and the future stages of the exercise, the location of the field camp, station loading and unloading of military equipment and the final negotiations will be conducted in Ulaanbaatar in August of this year.

Last year the field exercises codenamed "Selenge 2012" was organized at the site "Burduny" in Buryatia, where 300 Russian, 250 Mongolian soldiers and about 100 units of combat and special equipment on both sides were involved and the previous exercise "Selenge 2011" took place at the "Tavan Tolgoi" training center in Mongolia.

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FOREIGN MINISTER BOLD MEETS ADRIANA POVEDA, CANDIDATE FOR HONORARY CONSUL IN MADRID

Ulaanbaatar, May 31 /MONTSAME/ The Minister for Foreign Affairs L.Bold ran a meeting with Adriana Poveda, a  candidate for the post of the Honorary consul of Mongolia in Madrid.

Ms Poveda said that she will organize many activities to advertize Mongolia with a participation of Mongolia's delegation such as Ministry of Industry and agriculture and Mongolian National Chamber of Commerce and Industry.   

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NORTH KOREAN DELEGATION TO ATTEND WORLD ENVIRONMENT DAY IN ULAANBAATAR, MONGOLIA

May 31 (InfoMongolia) The regular Consultative Meeting between the Ministry of Foreign Affairs of Mongolia (MFA) and the Foreign Ministry of the Democratic People's Republic of Korea was held in Ulaanbaatar, reported Mongolian Foreign Ministry on May 30, 2013.

Mongolian delegation was chaired by Director of Department of Asia and the Pacific, MFA Ch.Bayarmunkh and North Korean side by Director of Asia Department Kim Myoung-gil, where parties summarized the current mutual collaboration and exchanged views on further plan of partnership, determined its future tendency and directory, moreover shared views in regional and international spheres.

During the bilateral talks, Mongolian President's initiation to organize multilateral talks on security of North-East Asia countries in Ulaanbaatar was also discussed, where North Korean side was invited to support the idea.

In addition, North Korean delegation will attend some events of the World Environment Day to be hosted by Mongolia in its capital city of Ulaanbaatar on June 01-05, 2013.

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OSCE RAPPORTEUR GROUP ARRIVES TO NEGOTIATE FUTURE JOINT PROJECTS

Ulaanbaatar, May 31 /MONTSAME/ The Rapporteur Group of the Organization for Security and Co-operation in Europe (OSCE) has arrived in Ulaanbaatar.

 It was reported Friday by Mr Volodymyr Yelchenko, the Special Representative of the OSECE Secretary-General and Ambassador of Ukraine to Russia, and by Mr G.Batjargal, Mongolia's Permanent Representative to the OSCE.

The Group will stay here until June 1 here, led by Mr Yelchenko and comprising Mr Eoin O'Leary, a Chairman, OSCE Permanent Council, Permanent Representative of Ireland to the OSCE; Ms Andrea Rauber Saxer, a Deputy Head of the Swiss Delegation to the OSCE; and other officials from OSCE divisions.

The main purpose of the Group's work is to negotiate with Mongolia an implementation of measures which will be taken together with Ministries and agencies in 2-3 years to come, so the Group intends to hold talks with authorities of the Ministries of Justice; Defense; Mining; Education and Science; Economic Development; Environment and Green Development; also with Authority of Border Protection, the General Election Commission (GEC), and National Commission for Human Rights.  

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Belarus, Mongolia discuss economic and political relations

MINSK, 30 May (BelTA) – Belarus-Mongolia ministerial consultations have been held in Minsk on 30 May, BelTA learnt from the press service of the Belarusian Foreign Ministry. 

The Belarusian delegation was led by Deputy Foreign Minister of Belarus Valentin Rybakov; the Mongolian delegation was chaired by Deputy Foreign Minister of Mongolia Damba Gankhuyag

The parties discussed a wide range of matters related to the bilateral agenda, including political cooperation, arrangement of high-level and highest-level visits, cooperation within the framework of international organizations, formation of the legal framework of the bilateral relations. 

A special emphasis was made on trade and economic cooperation that has been gaining momentum in recent years. In 2012 the bilateral trade amounted to $112 million, up by 45% compared to 2011. 

Damba Gankhuyag is to meet with Deputy Industry Minister of Belarus, co-chair of the Belarus-Mongolia commission for trade and economic cooperation Alexander Ogorodnikov. 

On 30 May the head of the Mongolian delegation had talks with Prime Minister of Belarus Mikhail Myasnikovich.

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China Education Exhibition opens in Mongolia, to be organized every year

ULAN BATOR, May 31 (Xinhua) -- The China Education Exhibition opened here Friday to attract more Mongolian students to China.

Teachers from Zhejiang University, Heilongjiang University and 10 other Chinese universities briefed Mongolian parents face-to-face on their respective core disciplines.

The two-day event was organized by the China Education Center, which is in partnership with more than 80 universities and colleges in China.

"In recent years, more and more Mongolian students have voiced their willingness to study in China," said Cheng Long, director of the China Education Center.

"The exhibition is to be held here every year in the hope that a bridge will be built between Mongolian students and Chinese universities and colleges," he said.

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Social, Environmental and Other

Mongolia moves to curb smoking with heavier penalties

ULAN BATOR, May 31 (Xinhua) -- Mongolia is marking "World No Tobacco Day" on Friday by tightening measures to curb smoking, including heavier penalties.

To restrain the rising smoking population, the government clearly defined responsibilities and obligations at all levels of government and law enforcement, tobacco operators as well as ordinary citizens in a modified Tobacco Control Act.

Under the new law, which began to take effect on March 1, tobacco sales through the Internet are banned, sales outlets of tobacco companies less than 500 meters away from schools are forbidden, and selling cigarettes to citizens under the age of 21 is prohibited.

Tobacco companies and shareholders owning more than 20 percent of shares should unveil to the public their names, addresses, businesses and other information related to tobacco production on the Internet. All forms of cigarette advertising are prohibited.

Smoking in offices, public places, such as restaurants, bars and schools, railway stations, airports, is strictly prohibited. Ordinary violators will be fined for 50,000 tugrik (35 U.S. dollars), civil servants will be fined 10 to 25 times their monthly minimum wages, while law enforcement officers will be fined 25 to 50 times their monthly minimum wages.

Mongolia adopted and implemented the Tobacco Control Act in July 1993 and amended and supplemented certain terms of it in 2005, defining tobacco demand, supply, use, reduce toxicity and other aspects.

The parliament modified the Act this year once more as tobacco control was not effective enough.

In recent years, the number of smokers in Mongolia rises, in particular young and female smokers. Some of them even started smoking before the age of 10.

It is reported that up to 80 percent college and university students in Mongolia are smokers (Mogi: 80%? Can't be true, can it?). Two major causes of death for Mongolian people, cardiovascular disease and cancer, are closely linked with high smoking rates.

Medical research shows that smoking can lead to cardiovascular disease, cancer, chronic obstructive pulmonary disease and others, and has become the world's second killer after high blood pressure.

The World Health Organization also warns that about half of adult smokers will eventually die from diseases caused by smoking. It initiated the No Tobacco Day in 1987.

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TreeHugger in Mongolia: How a Warming Climate is Changing Business in Mongolia

May 31 (TreeHugger) When I told people I would be going to Mongolia for work, the response was always a mix of excitement and confusion. "That's great! But what are they doing that is green?" my friends would ask. It is the answers to that question that make Mongolia such an interesting host for the 2013 World Environment Day.

Located between Russia and China, Mongolia is understandably not the first country one would think of when it comes to environmentalism, sustainable business or clean energy, but as I hope to witness in the coming days this land most known for the Gobi Dessert and its nomadic people is not only seeing its country change due to a warming climate, but they are adapting to meet the challenges of a changing business environment, as well.

Last year, during the World Environment Day festivities in Rio de Janeiro, Tsakhia Elbegdorj, the President of Mongolia, was among six individuals given the honor of being named 2012 Champions of the Earth Award laureates.

President Elbegdorj was honored for his role in making sustainability a key focus of environmental policies.

Here's a video on his work that was played at the awards gala last year. 

President Tsakhia Elbegdorj (Mongolia) is awarded for delivering on promises to put the environment at the forefront of policies.

More on President Elbegdorj

As its neighbor China has seen business growth booming in recent years, Mongolia has been along for the ride, becoming the world's fastest growing economy, according to NPR. But with this relationship to China, also come risks, as The Atlantic's Max Fisher highlighted last year.

Mongolia has vast natural resources -- copper, gold, uranium, and perhaps most importantly coal -- and few citizens among whom to divide the spoils. Though it's over three and a half times the size of California, it has a population of only 2.7 million people, fewer than live in just the urban center of Fuzhou, China's 30th largest city.

With China's increasingly insatiable appetite for exactly the minerals that its norther neighbor boasts in abundance, Mongolia is joining a small class of once-impoverished Asian nations that are getting rich by selling to Beijing.

As Fisher goes on to note, if China's economy fails, this growth in Mongolia could halt, as well. That is why it is so important to see the sustainable investments Mongolia is making.

As part of the World Environment Day festivities, I plan to visit the country's first wind farm, attend a conference on sustainable mining and renewable energy and learn how else Mongolia is planning for a sustainable future. You can learn more about the World Environment Day program here.

Sustainable development isn't just important for economic reasons alone. Climate change is hitting the country hard.

In 2009, as part of the Ride Planet Earth Campaign, Kim Nguyen spent 32 days of a 16 month bicycle journey in documenting the ways climate change is affecting Mongolia.

Thankfully, Mongolia appears to be forward thinking when it comes to adapting to climate change. With its dry climate and sunny weather, solar has big potential. Geothermal is promising, as well. There's much more to come on all of this, as well as the WED theme of reducing food waste, so follow @UNEP and #WED2013 on Twitter for more.

Chris Tackett is currently in Mongolia for World Environment Day. Follow him on Twitter: @ChrisTackett for the latest and view the World Environment Day page for all of TreeHugger's coverage.

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Mongolia holds International Marathon to meet the World Environment Day

ULAN BATOR, June 2 (Xinhua) -- Mongolia held International Marathon in Ulaanbaatar Sunday to meet World Environment Day Conference, which was held in Mongolia.

More than 500 men and women contestants took part in the competition, including more than 110 foreigners from 14 countries and regions.

Kenya's world marathon champion Patrick Squash attended the opening ceremony, but he didn't take part in the competition.

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Live From UB Exclusive

May 30 (Lauren Knapp) Well, I'm in the throngs of editing "Live From UB". The sad truth about editing nearly a hundred hours of footage down to less than 2 is that a lot of material just won't make the cut.

With that in mind, I'll be posting clips that may or may not be in the final piece throughout the editing process.

Here are two from a day I spent at Amarbayasgalant Monastery with the band Mohanik as they recorded their album.

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Live From UB: How Rock Music Shaped the New Mongolia: Lauren Knapp

May 21 (TEDxYouth) The history of rock music in Ulan Bator is traced and shows how as the country developed the rock music showed its independence as well.

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Denver Zoo celebrates birth of endangered Przewalski's horse foal

DENVER, June 2 (The Republic)  — The Denver Zoo is celebrating the birth of an endangered Przewalski's (sheh-VAL-skee's) horse foal — the first birth of its species at the facility since 1991.

Zoo officials say the unnamed foal was born Friday and can be seen from the zoo's main pathway.

The zoo says Przewalski's horses, also called Mongolian wild horses or Asiatic wild horses, are only found on reserves in Mongolia and China and in zoos around the world. The species was extinct in the wild for almost 30 years before reintroduction projects began in the early 1990s.

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Mogi Munkhdul Badral Bontoi

Founder & CEO

Email: mogi@covermongolia.mn

Mobile: +976 9999 6779

Skype: mogibb

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

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