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Thursday, January 16, 2014
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TRQ closed +0.85% to US$3.54, up 7.27% YTD
UPDATE 1-Turquoise Hill says inventory building at Mongolia's Oyu Tolgoi
Jan 15 (Reuters) - Inventories at Rio Tinto's Oyu Tolgoi copper and gold mine in Mongolia are expected to rise during the first quarter, Turquoise Hill Resources Ltd said on Wednesday.
Turquoise Hill, which owns a majority interest in Oyu Tolgoi and is controlled by Rio, said the mine was still producing more concentrate than it is shipping.
Two of the smelters it sends material to have been hit by technical problems, and "consistent customer delivery schedules have not yet been embedded."
Some sales have been deferred to the second and third quarters, and inventory levels at the massive mine should return to normal by the end of this year, the company said.
Global miner Rio Tinto owns 50.8 percent of Vancouver-based Turquoise Hill, which in turn holds a 66 percent interest in Oyu Tolgoi. Rio operates the mine.
A customs dispute held up Oyu Tolgoi's shipments to China last year, forcing the mine to stockpile material, but the conflict was resolved in October, and in November Turquoise Hill said inventories should fall "steadily" in 2014, reaching normal levels by the end of the year.
The mine produced 76,700 tonnes of copper and 157,000 ounces of gold in concentrates in 2013.
Related:
Rio Tinto turns up mine output in iron ore, other minerals – Reuters, January 16
Rio Tinto fourth quarter 2013 operations review – Rio Tinto, January 16
XAM closes -1.3c to 5c today
Xanadu Mines wraps up acquisition of copper-gold porphyry project, Mongolia
January 16 (Proactive Investors) Xanadu Mines (ASX: XAM) has completed the acquisition of a 90% interest in Vantage, which holds the Oyut Ulaan porphyry copper-gold project in Mongolia, following shareholder approval.
The project is located in the Dornogovi Province of southern Mongolia, 70 kilometres west of the future industrial center of Sainshand.
Xanadu has paid cash consideration of US$600,000 and will issue 5,000,000 Xanadu shares, and performance share options contingent on the recognition of a JORC resource of up to 900,000 tonnes contained copper equivalent.
The 5,000,000 million shares will be issued to Aberdeen International, an investment company and merchant bank listed on the Toronto Stock Exchange (Mogi: TSX:AAB, Aberdeen is the listed arm of Forbes & Manhattan merchant bank).
Xanadu maintained a 25% interest and operatorship of the project throughout 2013, and will continue systematic exploration at Oyut Ulaan over 2014.
October 2013 drilling defined three near-surface mineralised porphyry centres with results up to 85 metres at 0.75% copper with 0.54 grams per tonne gold, including 36 metres at 1.49% copper and 1.02 grams per tonne gold.
The next phase of exploration will focus on delineating potential shallow high-grade mineralisation by exploring along strike from existing intersections, and testing geophysical and geochemical anomalies which remain within the Oyut Ulaan area district.
Undur Tolgoi Announces Name Change
ULAANBAATAR, MONGOLIA--(Marketwired - Jan. 14, 2014) - Undur Tolgoi Minerals Inc. ("UTM" or the "Company") (CNSX:UTM) is pleased to announce that effective on January 7, 2014, the Company has changed its name to "Khot Infrastructure Holdings, Ltd." to have its name better reflect the Company's new focus on cash generating, non-resource infrastructure projects within Mongolia.
Don Padgett, President and CEO remarked; "Our corporate name change and new trading symbol are further steps in the Company's rapid transition and total commitment to the Mongolian infrastructure sector."
Trading under the new name will commence on the Canadian Securities Exchange at the opening of trading on Wednesday, January 15, 2014 under the new trading symbol "KOT". The Company was required to obtain a new CUSIP number for its common shares in conjunction with the name change. The new CUSIP number for the Company's common shares is G52720 102.
KRI closed flat at C$0.26
Khan Files Fiscal Year End 2013 Financial Results
TORONTO, ONTARIO--(Marketwired - Jan. 15, 2014) - Khan Resources Inc. (CNSX:KRI) (" Khan" or "the Company") announced today that it has filed its financial statements and management discussion and analysis for the year ended September 30, 2013 on Sedar and has posted these documents to its website www.khanresources.com.
Highlights for the year include:
· International arbitration action against the Government of Mongolia - the hearing by the International Arbitration Tribunal on merits and quantum was held and completed between November 11 and November 15, 2013. Arguments were heard by the Tribunal from Khan and from the Government of Mongolia on the merits of the case and the damages incurred by Khan due to the illegal expropriation in 2009 of the mining and exploration licenses for the Dornod uranium project in northeastern Mongolia. The amount of damages sought by Khan currently exceeds $326 million.
· Investments - During the year, the fair value of the Company's investment in Macusani Yellowcake, Inc. (Macusani) common shares decreased by $1,009,000 net of an impairment reversal of $233,000 which was recorded in accumulated other comprehensive income (loss) (2012 - impairment loss of $1,953,000).
· Equity issue - On September 24, 2013, the Company announced the closing of a non-brokered private placement financing resulting in the issuance of 7,237,703 common shares at a price of $0.17 per common share for gross proceeds of $1,230,410. The Company plans to use the proceeds of the offering to advance the international arbitration case against the Government of Mongolia and for general corporate purposes.
· Corporate matters - On August 22, 2013 the Company decided to close its operations in Mongolia. Results of Mongolian operations were a loss of $219,000 (2012 - loss of $ 16,261,000) and the results are rep orted as discontinued operations on the face of the Company's audited consolidated statement of comprehensive loss for the year ended September 30, 2013 with reclassified comparative results for the year ended September 30, 2012.
· Atomredmetzoloto ("ARMZ") litigation - On April 2, 2013 the Court of Appeal for Ontario dismissed Khan's appeal to validate, substitute or dispense with service of Khan's Statement of Claim against ARMZ, its Russian partner in Mongolia. ARMZ had avoided service of the Statement of Claim as the Russian Ministry of Justice had invoked Section 13 of the Hague Convention which allowed Russia to refuse to serve ARMZ as a matter of Russian sovereignty or security. Khan has decided not to appeal this decision to the Supreme Court of Canada.
The following table summarizes financial results of the Company for the fourth quarter and the years ended September 30, 2013 and 2012.
…
MIAT considering Hong Kong IPO, hires investment bank
January 15 (news.mn) Mongolian Airlines, MIAT, is planning to go public and has hired a multinational investment firm to help with the process. After MIAT has had the company evaluated, the board will decide whether to list its 49 percent shares on the stock market to raise funds.
Mongolian Airlines plans to launch IPO in the Hong Kong Stock Exchange. According to a bill of State policy on Air Transport it outlines a plan to privatize MIAT partly. Within the State policy on Air Transport, the campaign to go public with 49 percent of shares has been started.
Mogi: apparently there is an acting CEO appointed from SPC. SPC also looks to have backed away from allowing deputy CEO Saruul to resign on Jan 15 and will have him stay on during the transition.
SPC Takes Interim Management of MSE as CEO Resignation Takes Effect
January 15 /infomongolia.com/ CEO of Mongolian Stock Exchange (MSE) JSC Khangai ALTAI earlier delivered a request letter to State Property Committee and Management Board of the MSE JSC to resign the current post.
Accordingly, the Committee and MSE Board Directors issued its decision to release Kh.Altai, which is effective from January 15, 2014.
Former CEO Mr. Altai has been serving since January 2011.
Officials say the next CEO would be elected following an open announcement organized by the State Property Committee, who carries all responsibilities for MSE daily activities until the new CEO will be promoted.
BDSec Daily Market Update, January 14: Top 20 -1.27%, Turnover ₮34.5 Million
January 14 (BDSec) Mongolia shares experienced third straight loss on Tuesday with benchmark index declining -1.27%. Main dragger was the Tavantolgoi (TTL), which is the second largest index-weighting stock on the MSE. Tavantolgoi after opening its shares at the price of MNT 5,305 , dropped -5.75% to close at MNT 5,000 for the day. Gutal (GTL) shares soared +14.90% but only on a traded volume of 10 shares. Turnover for the day was MNT 34.5 million.
TOP MOVERS
Trading Value Leaders | Close (MNT) | Value (MNT) |
Gobi (GOV) | 5,500 | 10,094,400 |
Tavantolgoi (TTL) | 5,000 | 8,104,950 |
Hermes (HRM) | 160 | 3,642,390 |
| | |
Top Gainers | Close (MNT) | % Change |
Gutal (GTL) | 11,950 | +14.90% |
Telecom Mongolia (MCH) | 1,471 | +6.98% |
Shivee Ovoo (SHV) | 7,200 | +4.27% |
| | |
Top Losers | Close (MNT) | % Change |
Mogoin Gol (BDL) | 14,500 | -13.02% |
Olloo (OLL) | 121.03 | -11.03% |
Tavantolgoi (TTL) | 5,000 | -5.75% |
BDSec Daily Market Update, January 15: Top 20 +0.52%, Turnover ₮74.6 Million
January 15 (BDSec) The market rebounded today after three consecutive days of trading in the red. MSE Top 20 index rose 0.52% on Wednesday to 15,650.13 points. Tavantolgoi (TTL) bounced back from 6-day losing streak. Tavantolgoi settled +4.90% higher at MNT 5,245. The decliners of the day were led by Mongol Savkhi (-14.73%), Makh Impex (-12.80%), and Baganuur (-3.93%). Daily turnover was MNT 74.6 million or ~US$45k.
TOP MOVERS
Trading Value Leaders | Close (MNT) | Value (MNT) |
Khuns Arkhangai (HAH) | 2,300 | 42,499,400 |
APU (APU) | 4,000 | 8,600,010 |
Teever Darkhan (TEE) | 25,000 | 5,000,000 |
| | |
Top Gainers | Close (MNT) | % Change |
Tav (TAV) | 44,200 | +11.06% |
Tavantolgoi (TTL) | 5,245 | +4.90% |
Genco Tour Bureau (JTB) | 86 | +1.18% |
| | |
Top Losers | Close (MNT) | % Change |
Mongol Savkhi (UYN) | 1,100 | -14.73% |
Makh Impex (MMX) | 2,310 | -12.80% |
Baganuur (BAN) | 4,396 | -3.93% |
Mongolia's HBOil Raises $5m for Stake in DPRK Oil Venture
By Michael Kohn
Jan. 14 (Bloomberg) -- HBOil JSC, the company attempting to be the first from Mongolia to gain access to North Korean resources, raised $5m as part of its plan to secure oil infrastructure in the DPRK, according to company's website.
* Co. will convert a short-term convertible loan into common shares, the company said in an e-mailed statement yesterday.
* NOTE: Mongolia Taps North Korea Oil Potential to Ease Russian Grip
(From Bloomberg First Word)
BoM MNT Rates: January 15 Close
| 1/15 | 1/14 | 1/13 | 1/10 | 1/9 |
USD | 1,702.94 | 1,704.70 | 1,712.39 | 1,722.19 | 1,736.61 |
EUR | 2,323.58 | 2,328.79 | 2,341.95 | 2,344.33 | 2,361.96 |
CNY | 281.66 | 282.19 | 283.27 | 284.56 | 286.82 |
GBP | 2,794.27 | 2,794.86 | 2,822.10 | 2,836.71 | 2,861.24 |
RUB | 51.02 | 51.13 | 51.71 | 51.80 | 52.50 |
January MNT Chart:
Total outstanding up 8.2% to ₮1.07 trillion from this issue
BoM issues ₮348.5 billion 1-week bills
January 13 (Bank of Mongolia) BoM issues 1 week bills worth MNT 348.5 billion at a weighted interest rate of 10.5 percent per annum /For previous auctions click here/
Total outstanding down 4.45% to ₮1.02 trillion from this issue
BoM issues ₮336.7 billion 1-week bills
January 15 (Bank of Mongolia) BoM issues 1 week bills worth MNT 336.7 billion at a weighted interest rate of 10.5 percent per annum /For previous auctions click here/
BoM FX auction: $9 million bought, $30 million worth MNT swapped
January 14 (Bank of Mongolia) On the Foreign Exchange Auction held on January 14th, 2014 the BOM has received from local commercial banks ask offer of USD and CNY and bid offer of USD. BOM has bought 9.0 million USD as closing rate of MNT 1710.90.
On January 14th, 2014, The BOM has received MNT Swap agreement offer in equivalent to 30.0 million from local commercial banks and accepted the offer.
See also:
GoM Treasury Bill Auction: ₮30 Billion 28-Week Bills Sold at 9.68% Average Yield
January 15 (Bank of Mongolia) Regular auction for 28 weeks maturity Government Treasury bill was announced at face value of 30.0 billion MNT and each unit was worth 1 million MNT. Face value of 30.0 billion /out of 52.0 billion bid/ Government Treasury bill was sold to the banks at discounted price and with weighted average yield of 9.68%.
January 14 (Oxford Business Group) Lawmakers in Mongolia have approved a budget for 2014 that emphasises investment in the economy and seeks to build the infrastructure needed to sustain a commodities boom and maximise growth. While this likely means higher debt levels in the short run, the expectation is that earnings will improve in the medium-to-long term.
The budget, which was passed on November 15, projects revenues of MNT4.8trn ($2.8bn) and expenditures of MNT5.7trn ($3.35bn), with the government planning to issue bonds to bridge the gap of MNT943bn ($550m).
One core line in the budget is capital expenditure, which is set at MNT1.2trn ($685m) and accounts for more than 25% of total outlays. Much of this spending is marked for infrastructure projects aimed at boosting production, notably in mining.
On November 19, central bank governor N. Zoljargal told the Wall Street Journal the Mongolian economy would expand by around 11% this year, with higher growth expected in 2014. While he did not provide a precise figure, Zoljargal said GDP would increase by at least 11% and perhaps as high as 17% next year. The economy grew by 12.2% in 2012 and 17% in 2011 (Mogi: 12.4% in 2012, 17.5% in 2011).
Critics of the budget point to high spending and borrowing, and too little emphasis on boosting state revenue. In early November, the World Bank published its semi-annual update on the Mongolian economy, in which it urged the government to re-consider its expansionary fiscal and monetary policies.
The biggest concern for the international financial institution is the current account deficit, which will reach around 30% of GDP in 2013, according to the report. The imbalance is in part due to the decline in exports but has been aggravated by demand for imports, the result of the government's expansionary policy stance.
"Compared with other countries in the East Asia region, Mongolia's economic management has been highly expansionary and resulted in larger current account deficit and higher inflation. The current loose economic policies may not be sustainable going forward," Taehyun Lee, a senior economist at the World Bank, said in a statement accompanying the report.
Build for the future
However, the government sees its outlays as necessary to generating economic growth in the longer term. According to Prime Minister N. Altankhuyag, Mongolia is in an "invest and expand" phase, as the government seeks to lay the foundations for future revenue by stimulating growth and encouraging non-state investment.
"The only thing we need to do is to enlarge our economy," he told OBG in a recent interview. "This government is currently not thinking about raising taxes in order to increase revenues towards the state budget."
Through targeted spending and improving the investment climate now, Altankhuyag said the government will be able to boost earnings down the road.
"Improvements in this area will be our main focus in terms of increasing revenues for Mongolia's state budget," he said.
The new investment law, adopted in November 1st, should help in this regard, and indeed was identified as a positive development by the World Bank in its report.
Limits on spending
In formulating and carrying out its spending plans, the primary constraint on the government will be the Fiscal Stability Law (FSL). Adopted in 2010, the FSL, among other things, places a cap on outstanding debt as a percent of GDP.
On November 15, prior to the passage of the budget, parliament rejected a proposal to amend the FSL. The government had sought to increase its borrowing capacity to 60% of GDP for 2014 – a jump from the 50% limit set for 2013 and the 40% cap set to go into effect next year.
K. Gantsogt, the finance minister (Mogi: not the finance minister. Must be referring to GANTSOGT Khurelbaatar, state secretary at MoF), said that the parliament's refusal to loosen the reins on borrowing could hinder some developments that had been in the pipeline for 2014.
"The plan was to issue more bonds to finance infrastructure development, so yesterday's decision restricts this," Gantsogt told Bloomberg on November 15. "Next year we will probably not do what we had planned."
While the government may not be able to realise all of its planned investment projects, this may well be to the benefit of the country, according to the World Bank, which says authorities should be focused on "spending well". Along with the IMF, the World Bank has encouraged the government to adhere to the current limits of the FSL, going one step further to suggest that off-budget spending (mainly public investment projects financed by the Development Bank of Mongolia) should be included in the budget.
MONGOLIA EMPHASIZES LONG TERM VISION FOR DEVELOPMENT OF ITS MINERALS SECTOR
January 16 (Independent Mongolian Metals & Mining Research) --
EVENT
· Mongolian Mining Minister D.Gankhuyag have stated in his presentation at " Minerals Sector-2025" Discussion (Summary by IMM&MR):
· state policy in minerals sector is in final reading in the Parliament
· draft amendment to Law on Minerals in compliance with the state policy will be submitted to the Parliament
· Parliament is discussing amendment to Law on Minerals in relation to forming transparency in gold trading (re-submitted gold bill)
· private sector exploration amounted to MNT332B(US$195M) in 2012 vs. MNT332B in 2011 and MNT182B in 2010 (no data available on 2013), Mongolia will aim to attract 10% of world's US$6B exploration expenditure or US$600M
· Mongolia has following reserves and resources, with majority in Central and Eastern regions
1. 2.5K tons of gold (in top 10 of the world)
2. 117M tons of copper ( (in top 10 of the world)
3. 173B tons of coal(in top 10 of the world)
4. 93K tons of silver
5. 1M tons of moly
6. 49M tons of zinc ore
7. 1.2M tons of iron ore
8. 3.8M tons of fluospar
· Number of mineral licenses is 3055, including 1763 exploration and 1292 mining licenses
· licensed area comprises 9.7% of territory of the country of which 9.1% is under exploration and 0.6% is under mining licenses
· mining's share in GDP is 17% in 2013 down from 21% in 2012 and 20% in 2011
· mining's share in exports in 81% in 2013, down from 91% in 2012 and 89% in 2011
· mining's share in budget is 23% in 2013, up from 21% in 2012 and 20% in 2011
· mining's share in FDI is 73% in 2013, down from 81% in 2012 and 78% in 2011
CHART OF MINING PRODUCTION AND INVESTMENT
(Legend : blue line- investment in millions of US$, brown columns- production in billions of MNT)
Source: Mining Ministry
· Mongolia is 6th by competitiveness against its key competitors after 1. Australia 2. Canada 3. China 4. Russia 5. Indonesia and before 7. Mozambique and 8. Myanmar, according to the Ministry
· Mongolia's positive indicators in the competition are
1. prices
2. product quality
3. extraction costs
4. wages and salaries costs
5. taxation environment
6. legislative environment
· Mongolia's negative indicators in the competition are
1. Supply stability
2. Payments flexibility
3. transportation costs
4. Financial capacity
5. Financing sources and conditions of those
6. ability to establish business contracts and commercial agreements
7. number of buyers
Goals going forward are
· public recognition that mining is main engine of stable development
· stable, understandable, competitive legislative environment in long term
· Long term vision for development of minerals sector
· social consensus and united understanding among stakeholders
EARLIER
The latest status of the policy is that , according to Mongolian Parliament on January 12,2014, final reading of the draft has been delayed due to this time MPP Caucus taking on last Friday 5 day break on the issue( after JC took one)
Major Mongolian medias reported that MPP Caucus objects to removal of following clauses
· making initial valuation of deposit (by state)
· infrastructure(urban development) following deposits depending on reserves of the deposit
· taking into reserves and storing deposits for future generations
Also, National TV broadcaster MNB reports that the break is necessary for the Caucuses to resolve the issue.
OUR VIEWS
· Although we disagree with the Minister's certain points in Mongolia's global mining competitiveness ( vs. Fraser Institute and other global rankings) in particular on legislative and taxation environment and certain other points, we support his conclusion and goals going forward on public recognition that mining is main engine of stable development, need for stable, understandable, competitive legislative environment in long term, long term vision for development of minerals sector, social consensus and united understanding among stakeholders
· Thus, our impression of the discussion is that of fairly positive and meaningful development
· Having said that, the concrete implementation of this vision would be the final approved by Parliament state policy in minerals sector and subsequent amendment to Law on Minerals
· Therefore, it remains to be seen if the result would be "stable, understandable, competitive legislative environment in long term" in particular, on a key issue of strategic deposits.
Link to the Minister's presentation (in Mongolian): http://mm.gov.mn/mn/news-2/395-2025.html
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DP proposes dissolving political parties without seats in parliament
January 14 (UB Post) The Chairman of the Democratic Party (DP) faction in Parliament, D.Erdenebat, and Deputy Chairman S.Odontuya held a press conference yesterday to report decisions made during the DP faction's meeting. The working group to develop the law on political parties introduced a draft bill at the meeting and heard members' positions.
Several principal changes have been planned for the law on political parties, including a clause to abolish political parties which have no seats in parliament. According to the present law on political parties, 800 signatures are required to establish a political party, but the working group on the draft bill wants change. As of today, there are over 20 political parties in Mongolia. Some of them become politicized when an election approaches but run no form of operations outside of elections. Accordingly, the DP supports the dissolution of such parties.
The draft bill on political parties will define whether political parties meet membership criteria, including the age of political parties.
The second issue discussed during the DP faction meeting was the draft bill on elections. Within the framework of the draft amendments to the Law on Government, submitted by the President of Mongolia, the law on elections has been touched upon. The draft bill submitted by the President states that a member of government should be elected outside the Parliament. Thus, demand has been created to evaluate many other points in the law on elections, such as consideration of the political and state work experience of a candidate for election as a member of the government.
"Let us reform and resolve-222" discussion gathers investors
Ulaanbaatar, January 15 /MONTSAME/ This weekly discussion was held Tuesday in the Ministry of Foreign Affairs.
Themed "Investments in Mongolia", the action attracted 150 people from Embassies, international organizations and entities with foreign investments.
The Premier N.Altankhuyag underlined that Mongolia is open for business, and that the Department of Investment has been set up in order to help foreign investors. "This department will render one-spot and bureaucracy-free service to investors for carrying out business," he said, adding that the newly passed law on investments provides investors with favourable conditions for investing.
The conditions of running businesses have been improving here. According to studies by an international organization, a Mongolian index related to running business went up to 25th place in 2013 from 36th of 2012, the Premier said.
He also reported that presentations about Mongolia will be made at the regular World Economic Forum (WEF) by end of this month in Davos, Switzerland. Issues of Mongolia's economic development and investment environment will be discussed as well.
A department head of the Ministry of Economic Development S.Bekhbat delivered a report titled "Partnership between state and private sector; concession policy and its implementation".
Premier N.Altankhuyag: Development Needs Thorough Stability
Ulaanbaatar, January 15 /MONTSAME/ The Prime Minister of Mongolia Mr N.Altankhuyag Tuesday gave an interview to A.Baatakhuyag, the head of the MONTSAME news agency.
Q: Last year, the cabinet addressed a parliament left-wing opposition and nationalists and put in all effort to approve the law that has created stable legal and tax environment for foreign investors. Do you feel any benefit of this law?
A: We passed last year the new law on investment. This law has fulfilled its purpose to create a favourable condition for both domestic and foreign investors, therefore, a matter on tax environment has been clearly determined, and a legal environment has become stable. We have provided the investors with good conditions for making investments, in a sustainable environment based on investment sizes.
In addition, the "Invest Mongolia" agency, or the Investment Department, has been set up to help investors through the laws and to ease criteria for investing in the country. The agency also aims to support investors in studying the market and in getting familiarized with the national legal environment. Account managers are working in charge of every sector of investments. Briefly, it aims to abolish any pressure on investors.
Q: Does it mean that anyone can apply to the Invest Mongolia when willing invest in Mongolia?
A: Yes. If the investments are smaller, they can get registered at the State Registration Authority (SRA).
Q: Our tax system is quite simple and comprehensible. Called "Four tens", it has been created by the democratic forces and has been put after Hong Kong in the world. In reality, the investors have worries about a sustainability of the tax environment rather than a size of investment they make. How long will this tax policy last for?
A: It is simple: based on sizes of investments, the periods of the tax stability ranges from seven to 22 years.
Q: What are other measures to attract the investors?
A: The amended law on Stock came into force from January 1 this year, giving investors economic rights to work at the national stock market, to issue shares of Mongolian companies at the world market, whereas the Mongolians can buy stocks of foreign companies. Moreover, investment funds can carry out activities in Mongolia.
Q: Our national companies have proved themselves to make big investments. For example, the "Ukhaa Khudag" mining company wants more favourable terms, equal to those of foreign investors. How does the cabinet assist in it?
A: One of the key features of the newly adopted law on investment is that both Mongolian and foreign investors are supported equally.
Q: Mongolia has gained achievements in becoming more independent from any nation, but, in economic terms, many problems are caused due to a dependence on one big investor, I think. What are the results Mongolia reached so far in a course of the long-lasted talks with investors of the Oyu Tolgoi project? I assume that tendency of many investors is expected to become clearer after tackling this matter.
A: In the last year, our government and the Rio Tinto Group cooperated actively and fruitfully, for example, the sides managed to resolve a huge deal of 30 questions, now we have some 5-6 matters left.
Our biggest achievement in 2013 was to export a first part of gold and copper concentrates extracted from the Oyu Tolgoi. This is a big success. By the plan of 2014, a capability of the Oyu Tolgoi mine will surpass the Erdenet Mining Corporation's. It means that the Oyu Tolgoi intends to extract more than 500 thousand tons of concentrate a year.
Apart from this, our cabinet is discussing with the investors an issue of raising a capital for the underground mine.
Q: Late 2013, the Government insisted on the belt tightening policies. Will it continue this year?
A: Yes, it will. A rapid increase in the Government Budget Expenditure has become greater weight on the shoulder of the Government. In 2011-2012, a system was in force that allowed expenditure growth in accordance with a raise in the budget income thanks to a bump in foreign investments. To abolish this wrong mechanism, tolerable costs have been saved in the Government Budget of 2014, with an aim to keep the budget deficiency under two percent of the GDP. Rapidly increased costs have caused an investment freeze of over 200 billion togrog. The Government, this year, has managed to save not only the budget investment expenses, but also its operational expenditures. Thus, the Government has reduced budget Expenditure. The same policies will continue in 2014.
Q: Parliament has strong position in preventing a swell in foreign debts. However, the Government needs a large amount of money to fund infrastructure development in a country with vast territories like Mongolia. How about major infrastructure projects that have been taken place? What are solutions the Government could find in this regard?
A: Last year, the Government raised a bond capital of USD 1.5 billion in foreign market. The bond capital has not been spent to cover any budget deficiency or welfare program. Instead, the Government financed infrastructure and industrialization with the bond capital. Paying great attention to export increase and import substitution, we are spending the capital of Chinggis Khaan Bond to support industrialization in the nation.
Q: The Government has issued a foreign debt instrument accounted for over billion dollars (the Chinggis Bond) for the first time. What sectors will receive funding from the capital of the Samurai bonds?
A: The bond capital is intended to fund industry sectors. The Government is planning to make the greatest ever investment of one trillion togrog (about 600 billion from Chinggis bonds and over 300 billion from Samurai bonds) to national manufacturing sectors. The Government has decided to support the national industrialization, under a motto of 'Let's Produce in Mongolia'.
Q: Upon hearing the economic growth of Mongolia, the French Foreign Minister joked if the comma in the number was misplaced. Mongolian people seem discontented with a slight drop in the economic growth of the nation. What do You think about it?
A: Mongolia needs a foam-free, stable economic growth. In the first 11 months of the last year, the nation witnessed an economic growth of 11.5 percent. Late 2013, great revivals occurred in sectors of mining and animal husbandry. Final results will come out this February. We are expecting an economic growth of 12 percent at least. Another primary indicator of economic growth is inflation, which had been estimated at 14 percent previous years. However, inflation declined down to 10.5 percent in 2013, showing a decrease of 3-4 percent. The commodity price went down, while the economy grew significantly nationwide in 2013.
Q: There is a conflict between Mongolia's need of efficient minerals exploitation and foreign investors' interests, which has caused political tensions in the last years. However, the Government has been operating in a well-balanced manner. Would a lately discussed draft law on restriction for double office holding in the Government and parliament affect the political stability of the nation? The investors greatly emphasize the political stability, as well as legal and taxation environments.
A: We are talking the issue of double office holding for 20 years, experimenting every alternative available, and even forming a Government with no parliament member. This matter further refers to many subjects including election structure. I believe a parliament member can work at the Government at the same time. The law will be put into effect before the 2016 parliament elections, in order to prevent any political tensions.
-Thank You for the interview.
Mongolian officials aim to adopt parts of Canadian legal system
VANCOUVER, January 15 (The Canadian Press) Mongolian officials are in British Columbia to learn about the Canadian criminal justice system, parts of which they aim to adopt in their own country.
Erdenebat Ganbat, deputy prosecutor general of Mongolia, said he is among 22 delegates meeting with police, Crown lawyers, judges and public-education officials during a visit to B.C. this week.
"The Canadian legal system is one of the (most) effective criminal justice systems in the world, and that's why our team is interested to research the whole Canadian criminal justice system," he said.
Ganbat said the group has also reviewed legal systems in Korea, Germany and several U.S. states, including Texas, but it will reform Mongolian law based on the adversarial aspects of the Canadian system.
He said he and two Mongolian prosecutors were in Vancouver and Kelowna in 2012 to research the Canadian system, and new laws could be drafted in Mongolia later this year.
Ganbat said while there are long wait times for Canadian trials, he hopes efficiencies in the Canadian system can be adopted to speed up the process for Mongolia's much-smaller population.
The group, which includes Mongolian judges, police, a Canadian embassy official and a politician, will meet in Ottawa next week with federal officials, including Supreme Court of Canada Chief Justice Beverley McLachlin.
Wendy Kavanagh, a Crown lawyer in Kelowna, B.C., said she taught a course on advocacy and the Canadian legal system in Mongolia in February 2012.
"They're looking for knowledge and studying various legal systems to pull out what they can from each of the legal systems and put it into their legal system with a view of moving forward in their country," Kavanagh said.
Compared to Canada's adversarial system, Mongolia has an inquisitorial system, in which judges can question witnesses, she said.
The Mongolian delegates have already visited a court in Surrey, B.C., and met officials at the city's RCMP detachment. They are also expected to tour the B.C. Court of Appeal and B.C. Supreme Court.
Link to BC Ministry of Justice release
Mongolia tastes its first dim sum bond
Given the incentive of the high coupon of 10%, the issue provides an interesting investment alternative for CNH bond investors and further diversifies the offshore renminbi bond market.
January 16 (FinanceAsia) Trade and Development Bank of Mongolia has priced the first renminbi-denominated bonds from the country, raising Rmb700 million ($115 million) at a 10.0% yield, a record high coupon for a dim sum offered by a bank issuer.
The first dim sum bond from Mongolia, a neighbor with a complicated history and relationship with China, provides an interesting investment alternative for CNH bond investors and further diversifies the offshore renminbi bond market.
"High-yield dim sum bonds are usually issued by Chinese property developers. Now a foreign bank joins in the party and we believe that issuers in other types will also consider such financing," said a source familiar with the situation.
The deal should also encourage more non-China issuers to come and tap the CNH bond market. With more foreign companies trading or doing business with China, and with the use of the renminbi increasing, they need the currency much more than before to support their development.
TDBM's bond, priced on Tuesday night, translates to a 10.25% yield at 99.367, making it appear more attractive for investors. There are few comparables in the market and the closest notes are from Russian Standard Bank (RSB), which is also single-B rated (Ba3/B+/B+).
RSB last January priced Rmb500 million at 8% and later another Rmb750 million at 7.274%. The two-year 8% notes were trading at around 7.5% in the secondary market.
The B1 rating by Moody's of TDBM's senior unsecured notes, issued under the bank's existing $700 million middle-term notes (MTN) programme, indicated more risks for investors. The issuer was also rated at B1 and put on a negative outlook.
"The risks of course have been priced in the coupon, and investors can make their own judgments," said the source.
Potential risks include financial policy changes within the country, turbulence in the bilateral relationship between the country and China, and the issuer's operation weakness.
However, investor appetite towards such notes seems healthy, with 48 orders and subscription of more than Rmb1.4 billion in the book, leaving it more than two-times covered.
Hong Kong investors took 52% of the notes, Singapore 42% and Europe 6%. Fund managers bought 66% of the bonds, banks 8% and private banking clients 26%.
Proceeds from the notes issue will be used for general lending and investment purposes. CLSA, part of Citic Securities, and Deutsche Bank were joint global coordinators. The two, along with ING, were joint bookrunners. TDB Capital also helped in the deal as joint lead manager.
Mongolia Eyes First Dim Sum Bond as Trade & Development Offers
January 14 (Bloomberg) Trade & Development Bank of Mongolia is offering what would be the country's first offshore yuan bond just one week after Moody's Investors Service downgraded the ratings outlook of the lender.
The Ulaanbaatar-based bank is marketing the three-year securities to yield about 10.25 percent, a person familiar with the matter said, asking not to be identified because the matter is private. Dollar borrowing costs for Mongolian issuers climbed to a four-month high of 8.97 percent on Jan. 13, according to JPMorgan Chase & Co. indexes. That compares with an average yield of 4.05 percent for Dim Sum notes, a HSBC Holdings Plc index shows.
Moody's on Jan. 8 changed the ratings outlooks for three Mongolian banks to negative from stable, reflecting "intensifying adverse developments in their operating environment." Khan Bank LLC and XacBank LLC were downgraded as well as Trade & Development Bank, which also had its baseline credit assessment lowered to B2 from B1 because of the high credit risks evident in its portfolio.
"The banks remain vulnerable to a deterioration in asset quality and high borrower concentration," Moody's said. "Given the resource-based nature of the economy and a large lending concentration in mining, there's the risk of boom-bust cycles."
Trade & Development Bank has the equivalent of $407 million of bonds and loans outstanding, and a weighted average fixed-coupon of 8.81 percent, according to data compiled by Bloomberg.
It sold $300 million of 8.5 percent 2015 notes in September 2012 which are now yielding 9.81 percent, prices compiled by Bloomberg show.
Offerings of yuan bonds and certificates of deposit outside mainland China will rise to as much as 570 billion yuan in 2014, compared with 350 billion yuan in the first 11 months of 2013, according to HSBC, the top underwriter in the market last year.
Peking University Founder Group sold 1.2 billion yuan of three-year bonds at 5.875 percent last week. It priced a further 800 million yuan of the 2017 bonds yesterday.
Mongolia's Erdenes TT Plans Coal Exports of 11m Tons This Year
By Michael Kohn
Jan. 14 (Bloomberg) -- Mongolia's largest state-owned coal producer Erdenes Tavan Tolgoi plans to export 11 million tons of coal this yr, up from 1.9m tons in 2013, Tsagaan-Uvgun Delgersaikhan, head of mine planning and technical coordination division, said in an interview in Ulaanbaatar.
* Includes 6m tons from the West Tsankhi coal block and 5m tons from East Tsankhi: Tsagaan-Uvgun
* ETT mined 5.3m tons in 2013, with 1.9m tons exported to China and balance stockpiled due to "transportation bottlenecks": Tsagaan-Uvgun.
* Coal from West Tsankhi stockpile was selling for $40/ton: Tsagaan-Uvgun.
* 800,000 tons of coal from east Tsankhi stockpile delivered last yr to Aluminum Corp. of China Ltd., also known as Chalco: Tsagaan-Uvgun.
* A rail link connecting Tavan Tolgoi basin and the Chinese frontier, stretching more than 200km, expected to be complete in 2016: Tsagaan-Uvgun.
* ETT exports will rise to 35m tons a year once rail and road infrastructure built: Tsagaan-Uvgun.
* Tender to construct $550m coal handling and preparation plant expected to be announced this yr: Tsagaan-Uvgun.
* NOTE: Mongolia coal exports fell to 18.3m tons in 2013, from 20.9m tons a year earlier, National Statistics Office said yesterday:
(From Bloomberg First Word)
A brief insight into IT service provision in Mongolia with Revolution Development Asia
Ulaanbaatar, Mongolia--(RevDev Asia - January 14, 2014)--Mongolia, through its enormous untapped mineral resources, is currently in the midst of an economic boom which has many predicting the country to have the fastest growing economy in the world for the next decade. Although the mining sector is the primary contributor to forecast economic growth, some of the country's supporting service sectors are beginning to emerge. Though historically neglected, one such sector is IT where positive contributions are now being felt from both local and international IT businesses. One of these businesses is software solution provider Revolution Development who opened an office in Ulaanbaatar in early 2013. Through its subsidiary, RevDev Asia (www.revdevasia.com), the business currently provides sophisticated IT solutions to some of Mongolia's top financial service institutions and retail businesses.
RevDev Asia's Managing Director, Dustin Rawlins, initially spent half a year intensively investigating the Mongolian IT market: "Our strategy has always been to understand a new market before entrance. This approach consistently ensures that we only provide relevant solutions. After a significant number of meetings and interactions we have gained a lot of insight into the market - what immediately became clear was that many Mongolian businesses have only recently fully understood what can be achieved with the assistance of IT. History has shown that this revelation is often followed by a phase of exponential growth in the use of IT in businesses. It is imperative however, that the implementation of IT solutions is planned and managed properly or else companies will be faced with solutions that don't adequately meet their needs and which cost significantly more than they had expected."
As with most emerging markets, Mongolia has a reputation for being cost sensitive when it comes to service provision and the IT sector is no different. Enkhtsetseg S., RevDev Asia's Vice President for Business Development, noted "there is a risk that cost sensitivities may lead companies to unsuitable open source or in-house developed solutions. Whilst these solutions often provide cheaper short-term answers they frequently end up costing more due to their inflexibility and a reliance on scarce skills to support them. RevDev Asia focuses on providing tried and tested world-class technologies which are fast to implement and are easily supported. Crucially, we also have a low total cost of ownership."
"A key advantage to Mongolia is that many of the IT challenges it faces have already been dealt with elsewhere. Most of the parties we have met with agreed that there is no reason to reinvent the wheel" explained Dustin. "Some of the solutions we currently provide include Business Intelligence (Big Data), Payment Gateways, MPOS (Mobile Point of Sales), Enterprise Risk Management and Internal Audit. In particular, through our business intelligence solution, we are changing the way large Mongolian businesses access and analyse the massive amounts of data they collect on a daily basis. This empowers innovative decision making and risk management".
It appears to be an exciting time for service providers in Mongolia and the IT sector is one of many set to benefit off the country's emergence.
About RevDev Asia - www.revdevasia.com
Revolution Development Asia (RevDev Asia) provides sophisticated and diverse service delivery options in the enterprise IT solutions (Business Intelligence and Compliance being core focus), professional services, system integration, infrastructure and a variety of other areas. As such we are a complete IT Partner with focus on delivery and long-term client relationships, helping our clients achieve success.
Based in Ulaanbaatar, Mongolia, we are perfectly situated for Mongolian IT Service Provision. In order to deliver a world-class service we have developed strong relationships with many of the world's leading ICT suppliers. We also have a strong understanding of emerging markets with vast experience in the South African market. Working with RevDev Asia means working together to identify the best possible solutions that use the best information, software, and technology. Every solution is similar, but each has their own unique characteristics. Every solution starts and ends with the same questions. Why do we need it? What will it do? How will we do it? RevDev Asia will work with you to answer these questions and implement the best possible solution for your needs.
Online registration for Miner and Supplier Conference begins
January 15 /news.mn/ One of the key events in the Mongolian mining sector, the Miner & Supplier Conference and Exhibition, will be organized by the Ministry of Economic Development and Mongolian Mining Exchange at the Chinggis Khaan Hotel in Ulaanbaatar on March 13th and 14th.
This is the 4th annual conference that involves all members from mining supplier companies.
The number of participants in the Miner & Supplier conference and exhibition grows year on year and the range of event also gets wider. The Miner & Supplier conference and exhibition has become the most looked forward to annual event for decision makers and managers in supplier companies.
This year`s edition of the conference will be organized to focus on the following key agenda to increase the socio-economic role of the conference, extend environment friendly technology and products and to increase business coordination between mining suppliers and mining businessmen.
Organizers of the conference have started online registration for participants and for the exhibition. The deadline for the first early-bird registration is February 6th.
5kg of Gold Caught Being Smuggled Out at Zamyn-Uud
January 14 (news.mn) Police thwarted an attempt to smuggle 4-5 kg of gold through the Zamyn-Uud border point in Dornogovi province last Friday on January 10th.
Police are currently conducting an investigation into the incident. More details about the case will be released soon. Zamyn-Uud border point custom officials and criminal police revealed the illegal trafficking of 18 kg of gold on the Zamyn-Uud-Erlyan train last year. Now the file for the case has been transferred to the General Intelligence Agency of Mongolia (GIA).
Nomin Holding Opening Mongolia's First Bus Manufacturing Plant
Ulaanbaatar, January 15 /MONTSAME/ The first ever in Mongolia bus factory will open on January 16.
A domestic "Nomin holding" company expanded its research work into automobile production and established the "Ecology bus" company in 2013.
The City Mayor E.Bat-Uul visited this company and witnessed the process of its construction in December.
Today, the factory has started to produce J-800T buses, a series model of J-800, with "Euro-4" standard engine, low-floor and portal axle which affords operators a complete flexibility.
Moreover, these buses have new technology and service standards in public transportation and can offer many advantages.
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'Sister city' agreement unites two cultures
HOWELL, NEW JERSEY, January 16 (Tri-Town News) — Representatives of Howell and the Sukhbaatar District of Ulanbaatar in Mongolia signed a memorandum of agreement following a presentation designating them as sister cities on Dec. 10.
The sister city program between Howell and the Sukhbaatar District aims to open up communication between cities in different countries and provide an overall cultural benefit.
Mayor Bill Gotto said, "Several months ago, I was approached by [President and Chairman of the Kalmyk Three Jewels Foundation] Bob Taunov about forming a sister city with the Sukhbaatar District in Mongolia.
"A section of Howell, specifically Freewood Acres, is where a lot of Mongolians and Kalmyks have immigrated to over the years, some fleeing from political persecution. That community has thrived over the decades and found integration within our community, so the sister city [agreement] makes sense," he said.
Gotto said he hopes the partnership accomplishes the goal of "promoting common prosperity within the township and abroad; organization of mutual benefits; goodwill; cultural exchange; a potential electronic penpal program; and the sharing of art, culture, education and any other beneficial exchange."
Taunov expressed his gratitude to Howell officials for making the partnership a reality. He said the Kalmyk Three Jewels Foundation is an organization that seeks to promote traditions and culture of the Mongolian and Kalmyk people.
"Now we can bring the Kalmyk and Mongolian communities together around the world, with Howell being in cooperation," Taunov said. "I brought this idea to the council about six months ago, and here we are."
The final individual to speak during the presentation was Baljinnyam Gan-erdene, a representative of the Citizens Representatives Council of the Sukhbaatar District. Gan-erdene came to the United States — and more specifically to Howell — to see how the process of democracy worked in practice.
Gan-erdene spoke with the assistance of a translator.
"[I am] honored to speak here on behalf of Sukhbaatar District residents and ancient Mongolians," Gan-erdene said. "We are grateful for the warm welcome and the great hospitality of the town. I really hope this unforgettable visit opens the door between ... our cultures and our cultural exchange."
Gotto presented Gan-erdene with a flag representing Howell's government to "symbolize Howell's heritage," a blanket with "some of our symbols that make us a strong community and show our history," and a book about the history of Howell.
Gan-erdene presented Howell officials with a copper plate that was crafted by Mongolian artists and featured Mongolian equine symbols, a plate with the Mongolian capital and Mongolian symbols "to represent the capital," and small souvenirs to represent the "regular things used in Mongolian life."
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Diplomacy
Malaysia police tipped off by Mongolia on death of student
PETALING JAYA, Jan 16 (The Malay Mail Online) BUKIT Aman Interpol confirmed yesterday they had received information from the National Central Bureau (NCB) in Ulan Bator on the death of a Mongolian woman here last year.
Enkhtuya Bayar Magnai (Mogi: Bayarmagnai I'm sure), 26, was found hanged near a wet market in Behrang on November 12.
An Interpol source, who confirmed The Malay Mail's front page exclusive report on Tuesday, said the bureau requested Bukit Aman to investigate if Enkhtuya was a victim of a sex trafficking ring.
"We can confirm we received the information and it was passed to the department concerned to investigate the human trafficking element," he said.
Mongolian police had earlier revealed that Enkhtuya, who enrolled for a short English language course at President College in Kuala Lumpur, sent her brother a Facebook message on Nov 5 claiming two other female Mongolian students had tricked her into believing they could obtain documents for her to stay in Malaysia.
Days before she died, she sent her brother a text message that read: "I am dead ... I am at Sentral Pudu, someone (is) trying to sell me."
According to the National Central Bureau, the family believes Enkhtuya was a victim of human trafficking.
The autopsy report said Enkhtuya died as a result of compression of the neck due to being hanged. It also said there were several injuries on her body, believed to have been self-inflicted.
Police were unsure when she had entered the country.
A college spokesman said Enkhtuya had enrolled for the August intake but did not turn up for classes.
Tanjung Malim police chief Supt Othman Nayan denied police imposed restrictions on Enkhtuya's family from taking her remains back to Mongolia for cremation.
He said it took more than a month for the authorities to contact the family as her passport was "still missing".
The family arrived in Malaysia on December 18 and the funeral was carried out in Seremban on December 21.
Foreign Minister to Conduct Official Visits to Latvia, Lithuania and Poland after China
January 14 /infomongolia.com/ The Ministry of Foreign Affairs reports that Minister L.Bold is to conduct an official visit to the People's Republic of China upon the invitation of his counterpart Wang Yi on January 16-21, 2014.
Following the visit to China, Foreign Minister L.Bold and accompanying his delegation are to continue their official visits to Latvia, Lithuania and Poland on January 27-29, 2014.
During the latter visits, Mongolian delegates will attend the "Made in Mongolia 2014"Exhibition to take place in Latvia and Lithuania organized by Mongolian National Chamber of Commerce and Industry and meet business representatives of above countries in order to promote and introduce Mongolian business environment.
No doubt the issue of two ex-SouthGobi Filipinos banned from leaving Mongolia was raised
Our Ambassador Visits Philippines
Ulaanbaatar, January 14 /MONTSAME/ The Ambassador Extraordinary and Plenipotentiary of Mongolia to the Republic of Singapore B.Delgermaa paid her first working visit to the Republic of Philippines where she serves as a non-resident ambassador, on Friday.
Upon an invitation from the President of Philippines Mr Benigno Aquino, Ms Delgermaa took part in the State Ceremony of the country.
Our Ambassador also held a meeting with the Secretary of the Department of Foreign Affairs Mr Albert F.del Rosario. They underlined a high importance of expansion of bilateral friendly relations, development of mutual fruitful ties, strengthening of mutual understanding and cooperation in international and regional sectors.
After this the sides shared views on several issues of the bilateral collaboration. Mr A.F.del Rosario expressed an interest in paying a visit to Mongolia, and then said he will give support to the matters related to two Mongolians.
Ms Delgermaa also met with the Secretary of the Department of Agriculture Mr Proceso Jaraza Alcala to exchange with him opinions on the bilateral relations and ties in the agriculture sphere. The sides highlighted a significance of fostering mutually-supported and fruitful cooperation and discovering new opportunities of collaboration.
INTERNATIONAL THINK TANK FOR LANDLOCKED DEVELOPING COUNTRIES COMMENCES ACTIVITIES IN ULAANBAATAR
January 15 (InfoMongolia) Ministry of Foreign Affairs reports that on January 15, 2014, Minister L.Bold and UNDP Permanent Representative to Mongolia Sezin Sinanoglu signed a project document for commencing activity of the International Think Tank for Landlocked Developing Countries (LLDCs) to be carried out by the Ministry of Foreign Affairs of Mongolia in association with UN Development Program.
The overall goal of the International Think Tank is to use top-quality research and advocacy to improve the ability of landlocked developing countries to build capacity with a view to benefiting from the international trade including WTO negotiations, with the ultimate aim of raising human development and reducing poverty. It is the first international intergovernmental institution to set up in Mongolia and has a great political importance for Mongolia's position on the international fora.
The idea of establishing a think tank for LLDCs originates in the International Ministerial Conference of Landlocked and Transit Developing Countries and Donor Countries and International Financial and Development Institutions on Transit Transport Cooperation, held in Almaty, Kazakhstan in 2003.
The idea of having a think tank for LLDCs became an initiative when the President of Mongolia addressed a meeting of LLDC heads of state in Havana in 2006, stating that: "if we want to maximize the efficiency of our coordinated efforts we should have an excellent analytical capacity. This we believe could be reached through establishing an international think-tank in one of our capitals. At Global Event of Landlocked Developing Countries and Transit Countries on Trade and Trade Facilitation, held in Ulaanbaatar in 2007, LLDCs agreed to "consider setting up an international think-tank which could be located in Ulaanbaatar. For this purpose, LLDC urge international organizations and donor counties to assist them in achieving this endeavor".
The UN General Assembly in 2007 adopted the Ulaanbaatar declaration and in 2008 passed a resolution welcoming "the proposal to set up an international think tank in Ulaanbaatar to enhance the analytical capability of landlocked developing countries needed to maximize the efficiency of our coordinated efforts for the effective implementations of the international agreed provisions, particularly the Almaty Program of Action and the Millennium Development Goals".
In April 2009 UNESCAP adopted a resolution entitled "Support for the establishment of an international think tank of landlocked developing countries". The resolution invited governments, donor countries, UN and other agencies to support the development of the think tank in Ulaanbaatar; requested technical support from the Executive Secretary; and designated a focal point to provide support for the proposal.
In July 2009 'The International Think Tank for LLDC' was officially launched in Ulaanbaatar by United Nations Secretary-General Ban Ki-moon during his visit to Mongolia.
Mongolia Establishes Diplomatic Relations with Republic of Haiti
January 15 /infomongolia.com/ Within its aim to establish diplomatic relations with all United Nations member states, Mongolia has established diplomatic relations with the Republic of Haiti in New York City on January 14, 2014.
Setting mutual aspirations to develop and strengthen friendly relations and cooperation as a guideline, the two countries agreed to adhere to the Vienna Convention on Diplomatic Relations, the UN Charter and international legal principles and standards.
The Permanent Representative of Mongolia to the United Nations, Ambassador Mr.Od OCH and the Permanent Representative of Haiti to the United Nations, Ambassador Mr. Denis Regis signed the joint statement to establish diplomatic relations. The joint statement to establish diplomatic relations has been registered at the UN and the permanent representatives of Mongolia and Haiti have sent the statement to the UN Secretary-General, Mr. Ban Ki-moon in order to inform the UN member countries.
The establishment of diplomatic relations with the Republic of Haiti provides better opportunities for both countries to support each other in bilateral and international organizations.
Related:
Mongolia Establishes Diplomatic Relations with Haiti – Montsame, January 15
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Social, Environmental and Other
Parliament to Cooperate with UNFPA in Social Matters, Signs MOU
Ulaanbaatar, January 14 /MONTSAME/ The secretariat of the Parliament Speaker will collaborate with the United Nations Population Fund (UNFPA) in implementing a one-year plan of works for the 2012-2016 programme on Mongolia's development.
A memorandum of mutual understanding on the matter was inked Monday by Z.Enkhbold, the Speaker of the State Great Khural (parliament), and by Ms Naomi Kitahara, the UNFPA's Permanent Representative to Mongolia.
Three parliamentary Standing committees and an unofficial group of women MPs will cooperate with the UNFPA.
The State Great Khural has been cooperating with the UNFPA since 2002, realizing a third programme of supporting nations. This programme consists of four main parts--population and development, gender equality, reproductive health and youths' development.
During the signing ceremony, Mr Enkhbold noted that the Mongolia's Millennium Development Goals (MMDGs) adopted by parliament in 2005 reflects issues of reducing poverty rate, supporting the public primary education, ensuring gender equality, increasing women's participation in the decision-making level, improving health of mothers and infants, and combating HIV/AIDS.
Emphasizing that understanding of MPs about the population matters improved thanks to the UNFPA's support, the Speaker hoped that the bilateral cooperation will deepen.
Present at the ceremony were D.Battsogt, a head of the Standing committee on social policy, education, culture and science; Sh.Tuvdendorj, a head of the Standing committee on justice, and others.
Bill on Joint Pension Fund Submitted
Ulaanbaatar, January 14 /MONTSAME/ Several MPs On Monday submitted to the Speaker a draft law on fund of joint pension.
As S.Odontuya, D.Gankhuyag, S.Erdene and L.Erdenechimeg MPs suppose, this law will help increase a number of strong and sustainable families, full of love and children.
Main idea in general is that one will be able to get a part of the pension his/her deceased spouse used to receive. Nevertheless, this will not cover those who was not married, was much older that the deceased, who was not working and/or paying social insurance commission.
The draft authors note that this bill greatly differs from the law on the survivor's benefit, because the latter clearly points to people who must receive that benefit.
Mongolia Setting Up Its First Weather e-Database with Korean Assistance
Ulaanbaatar, January 14 /MONTSAME/ All news and information about climate and weather in Mongolia will be stored in a data archive of the Meteorology Institute.
Under the second stage of a Mongolia-S.Korea joint project, this information will be transferred into electronic form, creating a climate database. Implementing the project, officials from S.Korean Pukyong National university, Solutek System Inc, together with Mongolian CityNet are expected to scan some 400 thousand sheets of weather information in one-year time, under a funding of 800 million togrog.
The first stage of the project was implemented in 2008-2009, under joint efforts of the Meteorology Institute of Mongolia and KOICA of South Korea.
Orkhon Aimag Ger Areas Wells Connected to Central Grid with ADB Assistance
Ulaanbaatar, January 14 /MONTSAME/ A total of 24 wells in Orkhon province have been connected to the central system.
The Asian Development Bank /ADB/ issued 5.7 billion togrog, and the domestic "NAB" company and "ODKHON" holding executed the work in frames of the "MON 2301" projects being carried out by the ADB and the Government.
Several works have been done, for example, four wells have been bored, water pipes have been installed in three-four meters in depth of underground, and three reservoirs with capacity of 1,000 cub meters and 100 cub meters have been set up in Bayan-Ondor mountain.
This is a part of works to be done in Darkhan-Uul, Ovorkhangai, Bayankhongor, Gobi-Altai and Bulgan aimags and in the UB city with aims to improve water supply of ger /national dwelling/ areas.
Health Ministry to Cooperate with Tony Blair Faith Foundation
Ulaanbaatar, January 15 /MONTSAME/ On Monday, the Health Minister N.Udval received Lambros Karavis, a government adviser of Tony Blair Faith Foundation.
Ms Udval highly spoke the actions being run in frames of a project of the foundation. Then the sides touched upon urgent issues of health assistance and services and of further cooperation in their solution.
Mr Lambros said they will focus more on three directions such as organization of family health centers' operations, a decrease in workload and delays in second and third phase hospitals, and an improvement of health structure governance by increasing number of nurses and supply.
After this, the sides talked about works of the last and the present years.
This foundation cooperates with our government by ways of giving professional advice in five directions--education, health, employment, housing finance and investments.
Oyu Tolgoi Supplies Reflective Collars for Camels to Prevent Accidents on OT-GS Road
Umnugobi, Mongolia, January 14 (Oyu Tolgoi LLC) - Herders living near the Oyu Tolgoi-Gashuun Sukhait paved road now use reflective collars for their camels to prevent traffic accidents. Officers of Oyu Tolgoi LLC's Regional Development and Social Performance department arranged the supply of these collars and, by beginning of January, camels from the herd of Khanbogd soum herder D.Munkhbayar started wearing the reflective collars. Light from the headlights of vehicles travelling at night are now reflected from afar, allowing drivers to adjust their speed and prevent accidents.
The idea was first proposed by herders themselves before Oyu Tolgoi became involved. D.Munkhbayar says that he is very pleased with the level of cooperation between Oyu Tolgoi and local herders.
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Munkhdul Badral Bontoi
Founder & CEO
Email: mogi@covermongolia.mn
Mobile: +976 9999 6779
Skype: mogibb
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