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Friday, June 13, 2014

[Aspire acquires Xanadu stake in Noble JV, SGK approves MP Tuvdendorj as new industry minister, and Exclusive bags €3 million apparel deal]

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Friday, June 13, 2014

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Headlines in Italic are ones modified by Cover Mongolia from original

 

Overseas Market

AKM trading flat at A$0.035 in early trading after announcement. XAM saw no trading today, last closed at A$0.045 on Tuesday

Aspire and Noble Group Enter into Mongolian Coking Coal Joint Venture Acquiring Xanadu Stake

      Aspire acquires Xanadu Mines 50% interest in Ekhgoviin Chuluu Joint Venture

      Aspire and the Noble Group agree to jointly explore and develop the Nuurstei Coking Coal Project in northern Mongolia

      Potential synergies with Aspire's 100% owned Ovoot Coking Coal Project  

June 13 -- Aspire Mining Limited (ASX: AKM, the "Company" or "Aspire") is pleased to announce that it has entered into a binding agreement to acquire the Xanadu Mines Limited (ASX:XAM, "Xanadu") 50% interest in the Ekhgoviin Chuluu Joint Venture ("ECJV"), with the Noble Group retaining its 50% ownership. The ECJV currently has a 60% interest in the Nuurstei Coking Coal Project ("Nuurstei Project") in Northern Mongolia with the ability to raise this interest to 90%.  

The transaction fits neatly within Aspire's strategy to explore and develop Mongolian metallurgical coal projects, and the opportunity to do so jointly with the Noble Group serves to enhance the existing Strategic Alliance between the two firms which includes a number of transactions relating to project financing, supply chain logistics, port and rail capacity access.  

Aspire will acquire Xanadu's 50% interest in the ECJV by agreeing to issue 10 million shares in Aspire to Xanadu including upon the ECJV entering into an agreement to undertake feasibility studies in the Nuurstei Project area or upon the Mineral Resource Authority of Mongolia granting a mining license over all or part of the Nuurstei Project area. Aspire has agreed to issue a further 5 million shares in Aspire to Xanadu in the event that 30 million tonnes of JORC compliant resources are identified in the Nuurstei Project area.  

Aspire will assume Xanadu's obligation to pay for an additional interest in the Nuurstei Project and will pay the minority vendors in the Nuurstei Project US$200,000 on the grant of a Mining License over the project area. The ECJV will then hold a 90% interest in the Nuurstei Project. The minority interest of 10% will be free carried through to production.  

The Noble Group will retain their 50% interest in the ECJV, along with marketing rights over all Nuurstei Project production. Noble and Aspire have also agreed to work together to identify additional near term Mongolian coking coal production opportunities with terms to be agreed on a case by case basis.

The Nuurstei Project was acquired by the ECJV in mid-2011 and immediately had drilling success.

Subsequent test work has shown that the Nuurstei Project contains a low volatile bitumous coal with moderate to high ash levels and low sulphur. Washed coal has high indicative coking properties however further testwork is required.  

The Nuurstei Project is located just 10 kms from the Khuvsgul provincial capital of Moron in northern Mongolia and is relatively close to a public sealed road currently being constructed connecting Moron to Erdenet and funded through the Government road building programme. The Nuurstei Project is also within a relatively short trucking distance to the proposed Northern Rail Line being developed by Aspire's subsidiary, Northern Railways LLC, and thus potentially a foundation customer for this proposed rail line. Preliminary indications are that Nuurstei Project coking coal could also be a useful blending partner for Aspire's wholly owned Ovoot Project coking coal, and there would be a number of other operational and marketing synergies between the two operations.  

Aspire's Managing Director, Mr David Paull, said "Aspire is very pleased to become involved in developing the Nuurstei Project in partnership with the Noble Group as we investigate the possibility of a start to production from the Nuurstei Project pre-rail".  

"There are many potential synergies with the Ovoot Coking Coal Project, not the least of which potentially being an important initial customer for Northern Railways LLC".

Link to release

Link to XAM release

 

TRQ closed -0.27% to US$3.67 Thursday

Gants Mod port to extended operating hours to accommodate Oyu Tolgoi export

June 12 (UB Post) Oyu Tolgoi LLC distributes about 70 thousand tons of copper concentrate daily through the Gants Mod port. To increase this amount, regulations of customs need to be adapted.

The Gants Mod port does not allow the transportation of Oyu Tolgoi copper concentrate after 5 p.m., because the border point has one entrance for both mining products and passenger transport vehicles. Customs General Administration reports that the General Administration of Customs of the People's Republic of China and Mongolia's Customs General Administration have agreed to adapt the timetable and extend operating hours for the Gants Mod port.

Link to article

 

Templeton Emerging Markets Income Fund's Mongolia Allocation Increases from 0.8% to 0.9% - UPDATE

(Updated with details on Trade & Development Bank and Development Bank of Mongolia bonds)

June 12 (Cover Mongolia) Templeton Emerging Markets Income Fund, one of three funds managed by Franklin Templeton Investments, had its allocation of Mongolia income assets increase from 0.8% to 0.9% between February 28 and May 31, as total net assets of the fund increased 2% to $696.7 million. Meaning the Fund held around 6.27 million in fixed income USD Mongolia assets as of May 31.

The increase comes as prices of 5 & 10 year Chinggis Bonds, which carry 4.125% & 5.125% interest rates, increased 6.5% & 12.8% to $95.34 & $89.65 respectively in the same period.

The other outstanding USD internationals bonds were issued by the private Trade & Development Bank of Mongolia (TDB) and the Development Bank of Mongolia (DBM). TDB's first international issuance, which is Mongolia's first ever as well, was a US$75 million issued in 2007, which was repaid in 2010. After which they issued $150 million in 2010 & $300 million in 2012.

The 5 & 3 year USD notes maturing both in 2015 were trading flat at $99 for the entire duration. The one other bond is RMB denominated bonds issued earlier this year yielding a 10% coupon, but Templeton does not hold any assets in RMB, according the announcements.

DBM issued $580 million in 2012 with prices picking up 5.5% to $97.84, and JPY 30 billion issued late 2013, now trading +0.43% to $100.83 in USD terms.

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Local Market

MSE News, June 12: Top 20 +0.01% to 14,901.11, Turnover 3.3 Million

Ulaanbaatar, June 12 /MONTSAME/ At the Stock Exchange trades held Thursday, a total of 1,123 shares of nine JSCs were traded costing MNT three million 268 thousand and 693.00.

"Nako tulsh" /590 units/, "Mongolia Telecom" /184 units/, "State Department Store" /149 units/, "Hermes center" /70 units/ and "Gazar suljmel" /116 units/ were the most actively traded in terms of trading volume, in terms of trading value--"Gazar suljmel" (MNT two million and 340 thousand), "Mongolia Telecom" (MNT 266 thousand and 380), "Gobi" (MNT 256 thousand and 700), "Nako tulsh" (MNT 139 thousand and 830) and "Tavantolgoi" (MNT 76 thousand and 526).

The total market capitalization was set at MNT one trillion 520 billion 326 million 576 thousand and 844. The Index of Top-20 JSCs was 14,901.11, increasing by MNT 1.30 or 0.01% against the previous day.

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Economy

BoM MNT Rates: Thursday, June 12 Close

 

6/12

6/11

6/10

6/9

6/6

6/5

USD

1,824.70

1,824.78

1,824.83

1,823.34

1,825.21

1,826.30

EUR

2,469.28

2,470.48

2,480.49

2,488.68

2,491.05

2,485.59

CNY

293.52

292.92

293.22

292.22

291.93

292.16

GBP

3,070.70

3,058.06

3,066.17

3,066.31

3,068.91

3,060.79

RUB

53.11

53.12

53.10

53.11

52.74

52.35

June MNT vs USD, CNY Chart:

 

Link to rates

 

BoM FX auction: CNY26 million sold at 292.95, accepts US$42.2 million MNT bid, $50 million USD swap ask offers

June 12 (Bank of Mongolia) On the Foreign Exchange Auction held on June 12th, 2014 the BOM has received bid offer of CNY and 5.0 million USD from local commercial banks. The BOM has sold 26.0 million CNY as closing rate of MNT 292.95.

On June 12th, 2014, The BOM has received MNT Swap agreement bid offer in equivalent to 42.2 million USD and USD Swap agreement ask offer of 50.0 million USD from local commercial banks and accepted all offer.

See also:

·         FX Auction Statistics

Link to release

 

BoM Annual Report 2013

June 12 (Bank of Mongolia) --

Link to report (Mongolian)

 

Average wage in Mongolia stands at 760,000

June 12 (Mongolian Economy) The National Statistic Office came out with more data, this time discussing the average wage of Mongolian citizens. Average wage is calculated by examining social insurance payment. A social insurance report came out, covering 33,400 entities. In the first quarter, it was determined that the average wage of Mongolian citizens was MNT 763,000 – 700,000 for women and 830,000 for men.

Comparing the sectors of the Mongolian economy to one another, it is seen that the mining industry places among the highest as the average salary given to its employees at MNT 1.7 million. However, for small businesses, it is the opposite. Receiving the lowest amount compared to other sectors, its average wage rests at MNT 340,000. 

If you group the entities into organizations based on company size, differences can be seen. For small businesses of 1 to 9 employees, the average wage is MNT 450,000 per month. Companies of 10 to 49 employees receive an average of MNT 600,000 each month whereas companies with 50 to 99 employees earn around MNT 720,000 each month. For larger companies, who range between 100-199 employees, its workers receive MNT 740,000 per month and for big businesses of over 200 employees, the average salary reaches MNT 900,000 every month.

Link to article

 

Mongolia's rising default risk flagged by falling score trend

Crashing through ECR's global rankings, the sovereign's plight underscores the perils of investing on a risky frontier.

June 11 (Euromoney) Investors in Mongolian bonds and real assets have reasons to be nervous in light of the sovereign's rising risk trend, signalling potential repayment problems for bonds maturing over the next few years.

The sovereign, falling 15 places in Euromoney Country Risk's global rankings this year to 102nd out of 186 countries surveyed, has just slipped into the lowest of ECR's five tiered categories, synonymous with borrowers either in, or on the brink of, default.

Its fall from grace is harsh for a country with such high-yield potential, but its heightened risk profile became apparent during the second half of 2013, well in advance of Moody's putting its B1 rating on review for a downgrade last month, and on a par with ratings from Fitch and S&P.

Similarly rated sovereigns Kenya, Serbia and Vietnam are comfortably within ECR's tier four, with their modestly improving risks in 2014 contrasting starkly with Mongolia's fading appeal (see chart).  

Looming payments crisis

The government's ability to maintain fiscal control and avoid a damaging payments crisis is questioned by a debt ratio doubling since 2010 to around 65% of GDP, of which the external component has climbed above 50% of GDP.

Mongolia's impressive double-digit growth potential is constrained by contractual wrangling and pricing pressures in the mining sector, alongside wider concerns over the investor environment with the budget deficit mounting.

Asian Development Bank's (ADB) forecasts see improvement over the next two years, but also warn of "significant external imbalances because foreign direct investment (FDI) has declined rapidly and some mineral exports remain weak".

Waning import cover, with foreign-exchange reserves dwindling and a (non-mining related) current-account imbalance climbing precariously into double-digits as a proportion of GDP, highlight the risks.

Meanwhile, rampant private-sector credit growth and currency depreciation keeping inflation high are testing the robustness of Mongolia's financial system, which is looking more vulnerable to liquidity and capital shocks.

Bank stability, one of four of Mongolia's economic indicators downgraded during the past year, scores 4.0 out of 10 in ECR's survey. The government finances score has plummeted to 3.2, with the general government deficit soaring above 13.5% of GDP last year.

While improving scores for corruption and government stability are encouraging in the wake of the smooth legislative and presidential elections process in 2012-13, none of the six political indicators chalks up even half the maximum 10 points available, such is the perceived weakness of Mongolia's institutions and policymaking.

Structural indicators valuing the infrastructure, demographics and labour market fare no better.  

A payments crisis is not a given and the ADB might be proved right if these imbalances correct and the government secures alternative sources of finance to close the financing gap.

However, with vulnerability to negative FDI or commodity price shocks to be wary of, Mongolia's falling score trend is an indication of the potential pitfalls ahead. 

This article was originally published by ECR. To find out more, register for a free trial at Euromoney Country Risk.

Link to article

 

Mogi: People who are whining "it's been over … days and I've seen no effect" have either no understanding of economics or is out to score points with people who don't. These things take time. People should be concerned about whether measures taken now will ensure a stable and favorable environment for growth to return. People should be blaming firstly MPP for the current situation and secondly, blaming DP for the delay in OT

Policy packaging

June 12 (UB Post) It has been over a month since Prime Minister N.Altankhuyag received approval for his "100 Day Plan to Revive the Economy," on May 7, but no visible improvement has been felt or in sight.

Despite criticisms from Mongolian and international economists, the Prime Minister has maintained that it was possible to bring back lost foreign investment, which fell 56 percent last year, and increase mining, resolve mineral exploitation license issues, while boosting manufacturing and domestic production within just 100 days.

The Prime Minister has found himself under increasing public pressure this year, as Mongolia's economy took on a downtrodden pace, with foreign investments taking a sharp plunge, and MNT currency rates falling. The Central Bank sold USD at the rate of 1,824.1 MNT to commercial banks at its weekly currency auction, compared to 1,430 MNT in June 2013. Bad policies by Mongolia and weakening global demand for mining products, such as coal, have also been blamed for the gloomy economic conditions.

Reflecting these imminent outlooks, international rating agencies such as Standard and Poor's, Fitch, and the IMF (Mogi: IMF is a rating agency apparently) have downgraded their outlooks for Mongolia.

Therefore experts and outside observers of Mongolian politics and economics say the Prime Minister's push for the 100 day plan is a desperate attempt to restore his reputation and sooth the public, which is growing frustrated with the current economic situation.

Former Prime Minister and State Honored Economist D.Byambasuren called the 100 day action plan a "cheap trick" to appease the public. (Mogi: a fan of old timey communist Byambasuren)

How the government expects to achieve what they have been trying to do for over two years in just 100 days, is a concern echoed by many, especially after the bold claims made by the Prime Minister himself.

Within the 100 day plan, an Economic Council was formed with the "help of the private sector" to undertake measures such as introducing a new system on debt management, attracting investment to economic free zones, supporting gold mining, boosting coal exports, resolving "controversial" mining license issues, starting an oil refinery, amending the Law on Minerals to repurpose up to 20 percent of Mongolia's land for mining, and supporting banks and financial lenders through tax breaks.

From looking at the measures that will be carried out through the 100 day plan, I cannot help but notice that they are mostly long term objectives of the government (Mogi: solutions for long term are what we need), which have been in process or would have progressed regardless of the "revival program" (Mogi: don't think so. Without pressure, none of these will get done in a swift manner). This also begs the question, weren't they trying to stabilize the economy before the 100 day action plan? And how exactly are they going to, for instance, "attract investment to economic free zones" and "start an oil refinery" when these issues have been talked about for years on end without definite resolution? (Mogi:

If it really is as simple as Prime Minister N.Altankhuyag makes it sound, why were they not accomplished after years and years of debate? The truth is that it's not so simple, and Prime Minister N.Altankhuyag isn't fooling many.

A month has passed since the plan began, but nothing but pretty promises and speeches about building trust with investors remain. Trust in doing business with a country isn't built in 100 days, it is earned by honoring previously established agreements and the law. A country like Mongolia, whose decision makers make policies based on their personal interests at the spur of the moment, and revert back when things go bad, cannot afford any inconsistency.

I am not alone in remaining skeptical of the plan, which was presented as if the government has found a new solution, or at least a patch up method that would temporarily boost the economy somehow. But all we – the public – have is the same old crowd pleasing promises and statements that ultimately result in some indiscernible statement about how things will improve, only packaged neatly so as to boost lost morale. A government shouldn't operate like a marketing agency that promotes its products through packaging and other cheap tricks, it should focus on the product – or rather policies itself, as it concerns the lives and futures of real people.

The 100 day plan should not rush to make decisions for major issues that require extensive research and planning. The Prime Minister is a great speaker, but is not as apt at making decisions. So far he has avoided making any definite decisions about Mongolia's most important project, Oyu Tolgoi, which is expected to produce a third of Mongolia's GDP singlehandedly by 2020. The resolution to the year-long dispute with Rio Tinto and its units, which own 66 percent of the project, has been promised and postponed numerous times, forcing me to question whether the government is capable of handling the matter.

All the nation wants is a stable, peaceful and comfortable living environment, a place where one can earn their living without worrying about whether they can afford a loaf of bread the next day. For this to happen, the county's economy must be stable and healthy, not overburdened by debt and inflation. Mutually beneficial investment and businesses are the backbone of a healthy economy, but they require a fair and transparent government that doesn't overexert its power, interfere and favor one sector over others. Is this too much to ask from one's leaders?

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Politics

Mogi: MPP walked out before the vote in protest over GoM nominating a MP

Mongolia Parliament Appoints New Industry & Agriculture Minister

By Michael Kohn

June 12 (Bloomberg) -- Parliament approves nomination of Tuvdendorj Sharavdorj for the position of Minister for Industry & Agriculture, Batkhand Osormaa, head of press and public relations department of the State Great Hural, says by phone.

* Approval accepted by 34 of 40 members who voted in Parliament session today

* Tuvdendorj, a member of parliament, replaces former minister Battulga Khaltmaa

* Tuvdendorj is the chairman of the Standing Committee on Legal Affairs for the State Great Hural, according to the Parliament website; served as Minister of Defense in 1999-2000.

(Bloomberg First Word)

 

DP delays discussion of MPP's petition to dismiss Economic Development Minister

June 12 (UB Post) At the meeting of the Parliamentary Economic Standing Committee meeting, attendees discussed a parliamentary resolution to adopt directions to develop Mongolia's economy and society in 2015, draft amendments to the resolution, a draft resolution on defining state ownership shares from Tsagaan Suvarga mine, and issues related to the dismissal of Economic Development Minister N.Batbayar.

The meeting attendees decided to bring up the issue of amendments to the draft resolution later, once the Law on Minerals is approved. The Democratic Party (DP) group in the Parliament made a request to postpone the discussion of the dismissal of Minister N.Batbayar. DP Chairman D.Erdenebat pointed out, "The demands to dismiss Economic Development Minister N.Batbayar are rude, slandering the Minister's reputation and distorting the situation. For instance, the demand mentions incorrect numbers in the state debt and budget loss, etc. Therefore, we have delivered official documents to clarify whether the demand has any truthful grounds. Responses have not yet been received. Thus, we are requesting to postpone the issue, as it should be examined and reviewed carefully."

Upon the results of a vote among members, the issue has been postponed for later discussion.

Earlier, Mongolian People's Party members M.Enkhbold and S.Byambatsogt submitted a draft resolution of parliament to Speaker Z.Enkhbold calling for the dismissal of incumbent Minister of Economic Development N.Batbayar.

"He should be dismissed because he breached the law when realizing the general policy on investment, the policy and regulation of foreign investment, and the policy and planning of loans and assistance, which are reflected in the law on economy," they said.

Link to article

 

Former directors of MIAT suspected of more embezzlement

June 12 (UB Post) Former Vice Director of MIAT Mongolian Airlines Ch.Khorolsuren, who is currently serving a sentence of eight years in prison for embezzling and laundering a large sum of money from MIAT by creating a fraudulent "War Risk Insurance" fee, is under interrogation as a suspect in another case of embezzlement.

A former director of MIAT Mongolian Airlines, B.Erdenebileg, is also a suspect in the case.

According to a source of Unuudur, they are suspected of embezzling approximately 300,000 USD for the payment of introducing an electronic ticketing system to MIAT. The airline shifted to this system in May 2008, as the duty of one of the members of the International Air Transport Association.

The fraudulent payment was transferred from a MIAT account to a Hong Kong-based company account in August 2008, which was later deposited to the bank accounts of N.Gantumur and O.Tamir, who were suspects in the "War Risk Insurance" fee case.

Link to article

 

USAID, Asia Foundation, Sant Maral to Present Study on Corruption in Mongolia this Friday

Ulaanbaatar, June 12 (MONTSAME) Results of a study to assess the level of public knowledge and perception about corruption will be openly presented in the State House on Friday.

The event will be opened by a chairwoman of the parliamentary Standing committee on Petitions R.Burmaa MP, a resident representative of the US Agency for International Development Mr Francis A. Donavan, and a country representative of the Asia Foundation Ms Meloney C.Lindberg.

The results will be highlighted by project manager at the Asia Foundation A.Bayanmonkh, while the methodology used will be explained by executive director of the Sant Maral Foundation L.Sumati.

Link to article

 

Mineral, Tax, Customs Authorities to Partner in Sampling Export Coal

June 12 (UB Post) The Mineral Resource Authority (MRA), General Department of Taxation (GDT), and Customs General Administration (CGA) established a partnership contract and memorandum.

D.Uuriintuya, deputy director at MRA, and O.Ganbat, director general of CGA, signed the contract.

The mining experimentation and assay laboratory of the MRA and central laboratory of the CGA will collaborate on supervising and evaluating samples of export coal. More specifically, the central customs laboratory will send samples of export coals to the mining experimentation and assay laboratory, and receive results of the examination every time. Officials pointed out that as result of this collaboration, qualities of export coals will be examined. Moreover, it will promote further cooperation between government organizations and enhance the mutual information exchange process, an initiative by the Ministry of Mining.

Since its establishment as a solid fuel laboratory in 1969, the mining experimentation and assay laboratory of the MRA has been studying and assaying coal, and has become an accredited laboratory that analyzes soil and water pollution around mining areas.

Link to article

 

Mogi: blast from the past. Very interesting read on old timey (well, not so much) politics. Very long article but well worth the read.

THE NOMAD VOTE

Campaigning for the Presidency in the land of Genghis Khan.

June 16, 2001 (The New Yorker) The most astute political pollster in Mongolia is a half-Jewish Mongol named Sumati. He runs a public polling organization called the Sant Maral Foundation, which consists of him, two assistants, two computers, and two telephones, all operating out of one room in the capital city of Ulaanbaatar. From there, Sumati surveys a country more than twice as big as Texas. He has done independent advance polling for the past three Mongolian national elections, two of which involved major changes of political power, and, in each case, his results predicted the winner to within fewer than 2.8 percentage points.

"Sumati's bloody good," one Western diplomat told me recently. "He was dead on with that parliamentary election last year. Nobody listened to him, but he was right." I met Sumati in April, when I arrived in Mongolia to cover the Presidential election, which was held on May 20th. There were three candidates: the incumbent, Bagabandi, representing the Mongolian People's Revolutionary Party (M.P.R.P.); Gonchigdorj, the choice of the Democratic Party; and Dashnyam, of the Civil Will Party. (Most Mongolians use only one name.) During our first meeting, Sumati predicted that the final results would be extremely close to the findings of his initial poll, which had shown fifty-eight per cent of the vote going to Bagabandi. When I asked if Sumati had used random-sampling techniques, he gave me a look that suggested that this wasn't the brightest question he'd ever heard.

"A sample-collection method doesn't work in Mongolia, because half the population are nomads," he explained. "You can't do random sampling with nomads. For random sampling, you need to have a situation where every person in the target population has an equal probability of getting into your sample. But in Mongolia you can't predict where the nomads will be."

Sumati is forty-five years old, and he speaks excellent English, with a Russian accent. His mother was Latvian and his father was Mongolian, and they met while attending university in Moscow. Sumati grew up in Ulaanbaatar, and later he did research in applied mathematics, social sciences, and artificial intelligence in St. Petersburg, Warsaw, and Ann Arbor, Michigan. He is a thin man with high cheekbones, sallow skin, bushy black hair, and gray-green eyes. He looks a lot like what you'd expect a Mongolian Jew to look like. Professionally, his unusual appearance is something of a handicap, because it prevents him from doing his own polling. (His assistants distribute the questionnaires.) "I look like a foreigner," he said. "It creates a bias, I'm afraid." Sumati was always polite with me, but when it came to revealing personal details he had the caginess of an outsider.

Sumati's ambiguities seemed appropriate to his position among the Mongolian élite. Mongolia has a long history of occupation by foreign powers. Before the Qing dynasty fell, in 1911, the country had been a Chinese protectorate for more than two centuries, and in 1921 it became a satellite of the Soviet Union. In 1990, a democratic movement gathered force as the Soviet advisers withdrew. Since then, Mongolia has been in a remarkable period of transition. Political power has peacefully changed hands twice, and the national elections have not been marred by accusations of fraud. Voter turnout is routinely more than eighty per cent, and the country ranks high in the Freedom House index, which measures a country's pluralism and respect for human rights. Meanwhile, Mongolia's neighbors to the west, the other new Central Asian republics, have slipped into authoritarianism. Western observers often describe Mongolia, which shares a northern border with Russia and a southern border with China, as an island of democracy in a decidedly undemocratic part of the world.

Anthropologists have suggested that Mongolia's receptiveness to democracy derives, in part, from its traditional nomadic way of life, which encourages both individualism and an adaptability to outside forces, particularly the weather. Temperatures in the Gobi Desert, which occupies a third of the country, can rise above a hundred degrees Fahrenheit in the summer and drop below minus-forty degrees in the winter. Mongolia's population is almost 2.7 million—approximately four inhabitants to every square mile. Livestock outnumber people by roughly twelve to one. Some Mongolians have three-digit phone numbers.

It was one of those stories, heard often in post-authoritarian countries, that move quickly in the telling. Suddenly, I understood where all those layers of cynicism had come from, and I sensed that Sumati was finally going to express his gratitude for democracy.

"That's why I really enjoy this time," he said. "I do what I like, and I don't care what these stupid assholes say. Some of the people who used to denounce me even became leaders of the democratic movement. I know for certain that at least two of them became leaders of the Democratic Party. I will never become a member of any political party."

He took another drink of his beer, and I glanced at his left index finger. It was clean.

"Did you vote?" I asked.

He put the beer down and then, sounding like the millions of Americans who had decided to stay home on Election Day last November, he said, "At the start, I thought I would vote for Gonchigdorj. But then I thought, I know how this election will end, so why should I vote? It's a waste of my time."

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Business

Mongolian firm Exclusive bags 3mn euro apparel export contract with Rubin

June 12 (fibre2fashion) Mongolian company Exclusive has signed a contract with Poland-Turkey joint venture Rubin to annually supply €3 million worth of apparel, mainly jackets. This was disclosed at a press conference, reports UB Post.

The agreement was signed during the visit of Ilhan Erden, president of Rubin, to Mongolia. As per the deal, the first batch of exports would be made in October this year.

At present, there are about 450 apparel factories operating in Mongolia. Earlier, the garment manufacturing units flourished without any Government support, but soft loans for equipment and facilities were provided under the Chinggis bonds scheme from 2012.

Mongolia is a land-locked nation, situated between China and Russia—two large economies. The Asian Development Bank predicts Mongolian GDP to grow at 9.5 percent in 2014 and 10 percent in 2015. 

Meanwhile, the Mongolia Economic Forum is hosting a Mongolia Business Summit form June 19-21, 2014, focusing on global partnerships to facilitate business growth. 

A huge focus of the summit is to introduce corporations, bankers, investors and entrepreneurs, both local and international, to discover how they can explore the untapped potential of one of the world's fastest growing economies, according to the organizers.

Link to article

 

Plans move forward for Mongolia's first hydroelectric power plant

Source: Unuudur http://www.mongolnews.mn/p/52724

June 12 (UB Post) Mongolia, which is located in a watershed of Asia, is losing its rivers due to global warming and mineral deposit mining. However, we are using fresh water for our toilet bowls, washing our cars in clean river water, and watering lawns with our drinking water. Even though water-saving initiatives, such as collecting and using snow and rain water and reusing grey water have come out, up until now, there has been no implementation of these practices.

The Governor's Office of Orkhon Province has planned to build a 100 megawatt hydro accumulation power plant, cooperating with Marcus Industry of Slovakia. This project is reported to be different from hydroelectric power plants which block waterways.

The hydroelectric power plant will be built on 148.1 hectares issued for building an industry and technology park in Orkhon Province. This plant will generate electricity using grey water from Orkhon Province's sewage treatment plant, not fresh water from a river. The first water basin will be built lower, at the industry and technology park, and the second will be built on top of a nearby mountain. The basins will be connected with underground pipes and four 25 megawatt turbines will be installed.

We asked for some clarification on the issue of Mongolia's first hydroelectric power plant from an advisor of the Orkhon Province governor's office.

Four Slovakian specialists conducted a feasibility survey for establishing a hydroelectric power plant in Orkhon Province. Did they present the results?

Engineers of Erdenet Power Plant looked into building this kind of low-capacity plant years ago. We got the idea from them and we sent a request to the Minister of Economic Development and specialists and authorities in the Renewable Energy and Policy Department reviewed and discussed it. Based on our estimates of increased electricity consumption, we agreed on a plan to establish a hydroelectric power plant in cooperation with the National Renewable Energy Center of Mongolia, under the Ministry of Energy and based on hydro accumulation power plants of the Czech Republic and Slovakia. Currently, a team from the Czech Republic and Slovakia is cooperating with the National Renewable Energy Center of Mongolia and has arranged to make a draft and prepare for building the plant.

How will investment be solved? Will Marcus Industry establish a concession agreement?

A huge amount of capital will definitely be needed in order to implement such a big project. So we will solve the funding issues through foreign investment. The joint team said they will transfer the plant to the Ministry of Energy as soon as they build it. Investment will be financed by Ex-Im Bank of the Slovak Republic.

The lower basin is going to be placed not so far from the Zun River. Will there be any changes to the river?

Our province's sewage treatment plant has the capacity to purify 20 thousand cubic meters of wastewater a day. Next year, new sewage systems equipped with French technology and facilitation will come to Mongolia.  Thus, the capacity of sewage systems will increase, and 40 thousand cubic meters of wastewater will be purified and supply the hydroelectric power plant. We have a goal of supplying our electricity consumption with it.

The hydroelectric power plant won't be established in the Zun River. The basin will be built far from the river. There won't be any changes to the waterline. There won't be any negative impact on the environment since the pipes will be installed underground. We have become acquainted with the technology of producing electricity using grey water in the Czech and Slovak republics. They are producing electricity using eco-friendly, secondary raw material, "grey water", in a cheap way.

For instance, the Czech Republic built a basin 1,520 meters above sea level and established a hydro accumulation power plant which generates 650 megawatts of power. Also, Slovakia built a plant with four times that capacity using the flow of the Dunai River. From this experience, we are taking the first step towards establishing a hydro accumulation power plant.  The wall of the basin will be made of ferro concrete and membrane, or bead board. It is so reliable to use membrane and bead boards, since they are stainless.

It is impossible to use a water powered plant in winter. What will you do?

This is a really important question. There is a way to keep the basin from freezing. The foreigners have already found it. Even if the water in the basin doesn't freeze if it is moving, the surface of the water will definitely freeze. So, the surface of the water will be covered with 20 cm thick bead board, since the board keeps a constant heat of ten degrees. This is one way to decelerate freezing.

Who will use the electricity produced at this plant?

Besides supplying province consumption, it is planned to be distributed to Erdenet Power Plant. The Erdenet plant buys 180 megawatts of electricity per day from the hydroelectric power station of Gallut Lake in the Russian Federation. This plant will play an important role in saving money spent on buying electricity. Our plant used to produce 25 megawatts of electricity besides heat. The Ministry of Energy is paying more attention to increasing the electricity supply.

As a result, our plant will be expanded and a project to produce 50-80 megawatts of electricity per day will be implemented. If we can build a hydro accumulation power plant, we don't have to buy electricity from Russia.

We will also have funds to improve our province if we can sell electricity to the Erdenet plant and not buy electricity abroad. Other provinces have the chance to produce electricity and earn money. The advantage of the hydro accumulation power plant is after it covers its expenses, it will produce almost free electricity.

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NGOs demonstrate against Areva, uranium extraction in Mongolia

June 12 (UB Post) Several NGOs expressed their opposition to uranium extraction in Mongolia, informed the public of the fatal effects of uranium extraction in Ulaanbadrakh soum, and prompted decision makers to visit the soum in Dornogovi Province to witness conditions during a peaceful demonstration at Central Square on Monday.

Residents of Ulaanbadrakh soum contacted the NGOs for support against the uranium operations of Gogegobi LLC and Areva Mongol LLC, a fully owned subsidiary of French uranium-giant Areva, at the soum, which has reportedly seen 200 livestock die and many more with birth defects due to uranium contamination in the region.

One of the ten herders that demonstrated at Central Square, D.Gantur highlighted, "The very critical environmental condition in our soum was followed by the delivery of mutated livestock. After snow or rain, livestock and people are experiencing fur and hair loss, as well as rashes. Some former residents of Ulaanbadrakh soum told us that these problems went away after moving."

"We are no longer consuming the internal organs of our livestock. A three-legged colt was born to our neighboring herder family, while an eight-legged goat and two-headed sheep have been delivered by another family whose livestock are watered from the same well as our neighbor.

"As for me, there's a young goat with two short front legs and three colts that are unable to walk in my herd," added D.Gantur.

The herders said that Ulaanbadrakh soum Governor P.Gankhuyag turned them down when approached about this issue and told them, "No one has proven that uranium is toxic. We can't suspend uranium operations that will benefit the nation because of the interests of few residents."

Golomt Anti-Nuclear Movement, Gal Undesten, Green Peace and Bosoo Khukh Mongol NGOs held the demonstration.

Head of Bosoo Khukh Mongol NGO E.Tumurkhuyag commented, "The first research done in a veterinary laboratory has proven that [mutation] is indeed derived from uranium contamination. However, the 100 million MNT government study denied the previous result last year. We will send a demand to the President of Mongolia to visit Ulaanbadrakh soum."

"Uranium is extracted by digging and sulfuric acid is sprayed deep into the ground. Sulfur is very toxic, so those consuming meat and dairy products of livestock that grazed on contaminated pastures run a high risk of cancer. Though we have met Gogegobi administrators and handed them our demands, their press report depicted us as burglars and as if we were paid to make trouble."

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Turkish Entrepreneurs Establish Mongolian Business Association in Istanbul

June 12 (infomongolia.com) At the initiation of Turkish business entrepreneurs, Mongolian Industry & Business Association (MIBA) is established in Istanbul that aims to support and strengthen bilateral ties in economy and trade between Mongolia and the Republic of Turkey. 

The MIBA is comprised of 70 members and also opened its office in Mongolia. The MIBA delegates headed by President Ismail Duru have visited the Embassy of Mongolia in Ankara on June 11, 2014 seeking further collaboration issues and tasks to carry out near future.

In the scope of meeting the MIBA representatives, Ambassador Extraordinary and Plenipotentiary of Mongolia to the Republic of Turkey, Mr. Badamdorj BATKHISHIG congratulated the delegates on launching the Association and by introducing Mongolia's current trade and investment opportunities offered to cooperate in building construction, housing and road & bridges, besides to expand leather & skin, end products and tourism infrastructure businesses in Mongolia, moreover, to open Mongolian wool & cashmere store in big cities of Turkey.

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7 meat factories closed from 239 inspected nationwide by GASI

June 12 (UB Post) The State Specialized Inspection Agency reported the results of its inspections at butcheries and meat product factories this week. The inspection was conducted from January to May, involving 239 meat businesses nationwide, in 18 provinces and in Ulaanbaatar.

The inspection results of 118 businesses were reported and the inspectors found 835 violations in total.

The inspectors said that 26 percent of the violations discovered during inspection were fixed.

Seven factories were closed due to poor hygiene and low quality products, which were recalled from the market and eliminated.

The workplace standards of the butcheries and meat product factories have reportedly improved by as much as 28 percent this year, compared to last year. Factories in densely populated regions, including Ulaanbaatar, Darkhan-Uul, Orkhon, Dornod and Khuvsgul provinces, have updated their premises.

The results will be delivered to the Deputy Prime Minister, Ministry of Industry and Agriculture, Ministry of Health, Mongolian Agency for Standardization and Metrology, offices of governors, and the Mongolian National Chamber of Commerce and Industry for better enforcement of food standards.

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Mongolia Courts Foreign Investors

Mongolia is looking to draw foreign investment while simultaneously heading towards fossil fuel self-sufficiency.

By Ankit Panda

, June 12 (The Diplomat) Northeast Asia is a tough neighborhood for a country to stand out in these days. With China, Japan and South Korea as its major economic powerhouses and North Korea as its perennial basket case, Mongolia often manages to fly under the radar despite its huge ambitions on the world stage and activist foreign policy under the leadership of President Tsakhiagiin Elbegdorj. Economically, Mongolia sees its fortunes on the rise as well. According to officials in the Mongolian government, the nation is looking to make over a fifth of the huge country available for mining and could end its dependence on foreign oil by the end of the decade.

According to Bloomberg, Mongolia's ambitious plan to ease restrictions on mining could bring in excess of $1 billion in investment this year. While Mongolia's economy remains dependent on minerals, with little economic diversification, the massive boon from this regulatory step would continue its massive economic growth well through the end of the decade. In 2011, Mongolia had the world's fastest growing economy, growing at an astonishing rate of 17.5 percent. This slumped to 11.7 percent last year — a still more-than-impressive growth rate for a country that is looking to break out onto the world stage.

Elbegdorj has also continued his prolific diplomatic overtures as well. He most recently met with Chinese  President Xi Jinping on May 19 in Shanghai, on the sidelines of the Conference on Interaction and Confidence-Building Measures in Asia (CICA). Following the meeting, the Chinese Foreign Ministry released a statement supporting Mongolia on economic matters and raising its profile in international affairs:

China is willing, by the principle of "Three-in-One Overall Promotion" for mineral resources exploitation, infrastructure construction and financial cooperation, giving priority to the construction of connectivity, taking the opportunity of building the Silk Road Economic Belt, to expand bilateral cooperation and encourage competent Chinese enterprises to invest and develop in Mongolia. China supports Mongolia to actively participate in international and regional affairs, and is willing to strengthen cooperation with Mongolia within the frameworks of the United Nations, the Shanghai Cooperation Organization and others.

Last October, China Petroleum (Sinopec) signed an agreement to enter Mongolia in the area of developing coal gasification plants. With the easing of mining restrictions, it is likely that other Chinese state-owned enterprises (SOEs) will look to enter Mongolia.

Mongolia has been a major importer of gas and diesel from Russia, but expects to become self-sufficient in fossil fuels by 2020 as the government is planning to build a refinery in the country's southeast. Nevertheless, Rosneft, Russia's state-owned oil corporation, recently signed contracts to supply $2.3 billion in oil products over the next 5 years to the Mongolian market. Following Russia's major $400 billion natural gas deal with China, Mongolia's move towards self-sufficiency may not immediately figure on the Kremlin's radar as a significant development. Mongolia's turn to self-sufficiency also comes at a time when the government, with the assistance of a U.S. firm, is exploring the feasibility of exploiting the state's shale reserves, which are estimated at in excess of 800 billion tons.

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Putting Ulaanbaatar's traffic problem in context

June 12 (UB Post) By JAMES WATKINS

When gazing at an endless mass of fellow stationary motorists, your destination within sight but still potentially an hour away, or when standing, cramped and sweaty, in an aging bus as traffic fumes pour in through the cracked open window, it is easy to get wrapped up in the immediacy of the problem and to focus simply on tomorrow, the next journey, the next turn to take to escape the stand-still. But urban transport and traffic management is a long-term, macro-level science, and taking this broader perspective is essential to gain a new level of understanding about the problem.

The global context

Most big cities across the globe—almost all in countries across Asia and South America with rapidly urbanizing populations—have a chronic transport problem. Ulaanbaatar is not unique in this respect. The World Bank refers to the state of urban transport in post-Soviet states in Asia and Eastern Europe as "a veritable region-wide crisis."

The issue is as important as it is endemic: congestion can reduce a city's GDP by up to five percent according to the Asian Development Bank, and the World Bank estimates that traffic accidents cost an additional one to two percent of GDP, and that the full economic cost of air pollution can be up to 10 percent. Issues of public health, environmental sustainability, economic efficiency, and social welfare all stem from a problem with urban transport.

According to the Eastern Asia Society for Transport Societies, there were 350,000 vehicles on Ulaanbaatar's roads in 2011—almost 1,000 vehicles per kilometer of available roadway. Dhaka, the capital of Bangladesh and one of the world's most congested cities, has 1,500 vehicles per km; Berlin, rated as amongst the world's best cities for commuter satisfaction by IBM, has 222.

It is estimated that the population of Ulaanbaatar will increase by 50 percent between 2010 and 2030, rising to over 1.75 million, and, according to the Japan International Cooperation Agency (JICA), this will increase strain on the transport system threefold. If no steps are taken, they estimate that by 2030, the average volume-to-capacity ratio of the capital's road network will rise to 1.4—in other words, there will be 40 percent more vehicles using the roads than maximum capacity.

Looking abroad: policies that work

Ulaanbaatar's approach to tackle the problem so far has been piecemeal. The aging fleet of buses is being replaced with more modern and efficient vehicles, the road network is slowly being improved, and license plate restriction measures were introduced last year. According to a recent World Bank report, the only solution to the global pandemic of urban traffic problems is a public transport system that is not only comprehensive, but also efficient, cheap, and pleasant enough to lure drivers out of their cars. With less than 10 percent of journeys in Ulaanbaatar being taken by bus, this is currently not happening.

A more comprehensive and long-term strategy is required, such as one detailed by the Asian Development Bank's "integrated urban transport plans". Two relatively cheap approaches that are central to this program for transport development are realistic in Ulaanbaatar: promoting non-motorized transport and creating a "Bus Rapid Transit" (BRT) network.

Firstly, promoting non-motorized transport involves measure such as creating segregated cycle paths and walkways on existing sidewalk areas to encourage alternatives to cars without further reducing the capacity of the road network. European cities such as Amsterdam have led the way in this respect, proving that providing designated areas, including over- and under-passes at intersections, for cyclists and pedestrians will get huge numbers of people out of their cars. Sheltered walkways could also reduce the seasonality of these alternatives.

In addition, BRT schemes have been successfully deployed in 55 different South American cities such as Bogota, Columbia, to take a combined 17 million passengers out of their cars. This aims to combine the flexibility and cheapness of a bus network with the higher capacity and speed of metro systems. Specifically, this involves giving buses fully dedicated right-of-way routes and priority at intersections, and building bus stations on roadsides which encourage bus travel during the winter by reducing outdoor waiting time, and reduce curbside delays by providing step-free boarding and the pre-purchasing of tickets.

Could a UB Metro be the solution?

Plans also exist for the construction of an Ulaanbaatar Metro, designed by JICA and approved by the Capital City Citizens Representatives Khural. JICA estimate that the metro's estimated 500,000 daily passengers could reduce the volume-to-capacity ratio of the road network to 0.8—usage 20 percent below maximum capacity.

Similar rail-based metro systems have been extremely successful in being the core of transport solutions in other Asian cities such as Singapore, where around 50 percent of daily journeys are now taken by metro. However, cities with less than three million inhabitants rarely build metro systems, and favor the aforementioned BRT system, which could be delivered at a greatly reduced cost in a shorter time frame (JICA's planned metro wouldn't open until 2020 at the earliest). BRT actually offers greater flexibility and more comprehensive coverage, as geographically smaller cities are only able to support a low density of metro stations, limiting the potential popularity of the metro.

Perhaps the UB metro is not, therefore, the golden ticket that many have suggested it is, especially given a price tag that should terrify the already fiscally challenged government. JICA's plans involve 1.3 billion USD of liability for the Mongolian government: 600 million USD in credit from the government of Japan, and 700 million USD to be paid upfront. With the Mongolian government yet to sign off on this substantial cost, the vision is still far from a reality.

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300 businesses sent warnings over excessive air pollution

June 12 (news.mn) The National Committee for Reducing Air Pollution has sent specific requirements, issued by the committee, to organisations that are sources of air pollution along with guidelines of the regulations that are to be followed to increase air quality.

The Committee sent requirements to 300 entities and companies that utilize steamboilers over 100 kw, and over 2000 entities that own steamboilers up to a 100 kw capacity.

These entities are obliged to be responsible for not creating high emissions above the limited level.

Of the entities who received the requirement, those who fail to meet the requirements by September 15th will be imposed with fines of two million MNT each.

Research on eco-taxes that specify that the polluter pays are being underpinned.

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Mongolians to save 2 million USD on entrance fees to Erenhot

June 12 (UB Post) Mongolian citizens started travelling to Erenhot, China free of entrance fees on Tuesday as the fee has been eliminated through a mutual agreement between Zamyn-Uud soum and Erenhot administrators at their latest official meeting.

The entrance fee was five CNY and Mongolians travelling to Erenhot were obligated to pay.

The total annual sum paid by Mongolians for entrance fees was an average of 12 million CNY, approximately two million USD.

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Bulgaria to Open Trade Missions in 20 Countries by end-2014, including Mongolia

June 12 (Sofia News Agency) Bulgaria will open trade missions in 20 countries by end-2014, according to a media statement of the government.

The new trade representations are to be opened in the United Arab Emirates, Oman, Saudi Arabia, Qatar, Iran, northern Iraq (Erbil), Algiers, Tunisia, Ghana, Indonesia, Thailand, Malaysia, Pakistan, Armenia, Turkmenistan, Mongolia, US (Chicago), Hungary and Cyprus.

The measure was approved by the government on Wednesday and the Ministry of Economy and Energy was allocated BGN 2 M for the maintenance of the new offices.

Five existing trade missions will be closed, while five of the new ones are to be financed through public-private partnership with business organizations.

Bulgaria currently has trade missions in 44 countries with a total staff of 61.

Bulgaria has concentrated efforts on attracting investments and tourists and increasing exports to Asia due to the fast pace of growth of Asian economies, according to the media statement of the government.

Bulgaria's leading trade partners in Asia include China, Singapore, the Republic of Korea, India and Japan.

Apart from the fast pace economic growth and the growth in investments, Asian countries are an attractive market due to the huge consumption and growing purchasing power of the population.

These countries are major importers of raw materials, agricultural and food production and they generate substantial tourist flows.

Bulgaria's interest in cooperation with the Middle East and Africa is driven by the same reasons, taking into account an evaluation of the government describing the countries as promising and financially stable markets with great potential for Bulgarian exports.

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Mogi: I'm sure the topic of Centerra came up in conversations

Kyrgyzstan Delegation Visits Civil Hall of Mongolia

Ulaanbaatar, June 12 (MONTSAME) A chief of the Presidential Office P.Tsagaan met Thursday with a First Vice Prime Minister of Kyrgyzstan Mr Tayirbek Sarpashev.

Mr Tsagaan thanked the high guest for visiting Mongolia, expressed a confidence in a successful implementation of talks that had run during this visit and wished him a success.

The two sides highlighted open chances to boost cooperation between the countries in economy, agriculture, tourism and trade. They also touched upon current state, economy, relationship and collaboration between Mongolia and Kyrgyzstan.

After the meeting, Mr Sarpashev and accompanying him delegation were shown the Civil Hall, established at initiative of the President of Mongolia Ts.Elbegdorj.

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Deputy FM on official visit to Brazil

June 12 (UB Post) The official visit of Deputy Foreign Affairs Minister D.Gankhuyag to Brazil began on June 9, with a meeting with Minister of External Relations of Brazil Luiz Alberto Figueiredo.

Conveying the greetings of Minister of Foreign Affairs L.Bold, D.Gankhuyag confirmed that Mongolia attaches great significance to Mongolia-Brazil relations, and shared views on possibilities for the further development of bilateral cooperation.

Minister Figueiredo noted the wide range of opportunities for fostering bilateral ties and stated that the opening of a Mongolian embassy in Brazil is an important milestone in the history of bilateral relations.

A consultative meeting hosted between the Foreign Ministries since 2007 came to be an effective dialogue mechanism. The sides concluded and agreed on seeking possibilities for holding political talks at high levels.

After the meeting with Figueiredo, Deputy Minister D.Gankhuyag, along with his Brazilian counterpart Jose Alfredo Grasa Lima, co-chaired the consultative meeting of the Foreign Ministries. The meeting reviewed the present state of bilateral relations and cooperation, and focused on issues concerning bilateral cooperation in the fields of sports and education, and on the importance of a visa waiver agreement for promoting people-to-people contact.

The visit of the Deputy Foreign Minister to Brazil is ongoing, reported the Ministry of Foreign Affairs of Mongolia.

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Latvia, Mongolia sign agreement on international road transport

June 12 (President.mn) In the scope of the visit, Mongolia and Latvia exchanged and signed 3 documents, where President Elbegdorj and President of Latvia Mr. Andris Bērziņš were present at the signing ceremony.

In particular, an Agreement between Governments of Mongolia and Latvia on International Transport by Road was signed by the Minister of Road and Transportation A.Gansukh and Foreign Minister of Latvia Edgars Rinkevic. 

An Agreement on Exemption of Visa Requirements for Holders of Diplomatic and Official Passports was signed by the Minister for Foreign Affairs L.Bold and Foreign Minister of Latvia Edgars Rinkevic. 

A Memorandum of Understanding on Cooperation between the Ministries of Foreign Affairs of two countries as a permanent mechanism in our relations was signed by the Minister for Foreign Affairs L.Bold and Foreign Minister of Latvia Edgars Rinkevic.

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Related:

STATE VISIT OF PRESIDENT OF LATVIA TO MONGOLIA BEGINS

MONGOLIA AND LATVIA HELD OFFICIAL TALKS

PRESS COMMUNIQUE OF THE PRESIDENT OF MONGOLIA ON THE VISIT OF THE PRESIDENT OF LATVIA TO MONGOLIA

 

Latvia Offers Mongolia its Seaports for Export to Europe

June 12 (infomongolia.com) On June 12, Prime Minister of Mongolia Mr. Norov ALTANKHUYAG paid a courtesy call on the President of the Republic of Latvia Mr. Andris Berzins, who is conducting an official visit to Mongolia on June 11-13, 2014. 

During the meeting, Premier N.Altankhuyag mentioned that the bilateral relations between Mongolia and the Republic of Latvia have been continuously growing and noted this visit would bring impetus significant to the development and partnership of the two countries.

President Andris Berzins expressed his satisfaction on current enhancing bilateral relations and cooperation and emphasized that there is a broad opportunities of collaboration in economic sphere, in particular, in the sector of transportation logistics.

The Republic of Latvia relied on its seaports is giving a priority to the development of transit transportation and in this regard, Mongolia is enabled to export its products by broad gauge railways to Europe utilizing Latvia's seaports, states the President Andris Berzins.

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Mongolia PM holds talks with ILO Director-General in Geneva

Ulaanbaatar, June 12 (MONTSAME) The Prime Minister N.Altankhuyag Thursday returned home after the 103rd session of the International Labour Conference (ILC), which ran May 28-June 12 in Geneva of Switzerland under a topic "Progress with jobs-Employment-2014".

Within the session, the Premier attended introduction meetings of the Sustaining competitive and responsible enterprise (SCORE) and the Skills for Trade and Economic Diversification (STED) programmes, being implemented by the International Labour Organization (ILO), and exchanged views with many on involving Mongolia in these programmes.

While meeting with Mr Guy Rider, the ILO Director-General, our PM noted that the ILO's support in  the implementation of Mongolia's social and economic reforms policy significantly contributed to updating and refining the legal basis of labour relations and to making reforms in salary and social welfare systems. He also highly spoke projects and programmes realized with the ILO support for forwarding a transmitting to the official economy from unofficial and for strengthening a monitoring over the labour sector. The Premier said Mongolia needs to empower its workforce in order to specialize the economy through promoting of trilateral social relations, attracting investments, focusing on the mining growth's impact on the country's development. The government is paying special attention to a support of small- and medium-sized productions, the Premier said and stressed an importance of the cooperation with the ILO in this matter. 

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Mongolia to Host First International Forum on "Ulaanbaatar Dialogue on Northeast Asian Security"

June 12 (infomongolia.com) Exemplified on "Helsinki Process on Globalization and Democracy", the President of Mongolia Ts.Elbegdorj forwarded an initiative to organize an "Ulaanbaatar Dialogue on Northeast Asian Security" during the VII Ministerial Conference of the Community of Democracies held in Ulaanbaatar in April 2013.

The Ulaanbaatar Dialogue searches for novel and empowering solutions to the dilemmas on the security issue in the Northeast Asian Region and aims to offer a forum for open and inclusive dialogue between representatives of the region as Mongolia maintains the friendly status quo with all countries of the Northeast Asian region.

In the scope of the initiative, Mongolia for the first time hosted successfully the Northeast Asian Women Parliamentarians' Forum in Ulaanbaatar in November 2013. Also this year intends to host a Forum for Mayors of Northeast Asian Cities. In this regard, the Ulaanbaatar Dialogue is not a one-time action, but a mechanism to create a bilateral and trilateral or even multilateral dialogue depending on the agenda to discuss.

The main principle of Ulaanbaatar Dialogue is not to outline an interest of a country or a party, instead it would give opportunities to clarify parties' positions and in order to facilitate understandings between the parties, the 1.5 channel and 2 channel dialogues are enabled to conduct that contribute to seeking ways for tackling any complicated matters of the region. 

Therefore, Mongolia is to host the First International Scientific Forum in Ulaanbaatar in June 2014.

The upcoming event welcoming the Ulaanbaatar Dialogue is to be convened and anticipates over 100 scholars and researchers from six Northeast Asian countries (Mongolia, Democratic People's Republic of Korea, Republic of Korea, People's Republic of China, Russian Federation and Japan) as well as the United States of America and the EU Countries.

The Conference is aiming at promoting the Ulaanbaatar Dialogue initiatives, besides engaging parties in discussion, highlighting certain information and focused to listening to the recommendations by outside researchers.

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Interview with UN Chemical Weapons Expert D.Erdenetsogt, Member of Nobel Prize-Winning Team

June 12 (UB Post) UN chemical weapons expert, member of a Nobel Prize-winning team, Colonel D.Erdenetsogt gave an interview about his career working for the UN and other important issues regarding chemical weapons.

What is your profession?

I'm a chemical weapons expert. I'm a native of Urgamal soum, Zavkhan Province. After I finished school in the 1980s, I went to study at a military school in Russia. Later, I returned to Mongolia and served in the army. I've been in the army for around 25 years. I was qualified to a UN examination in June 2005, and I have been working for the UN for nine years.

Many readers may be surprised that they didn't hear about the Mongolian won a Nobel Prize. When did you receive the Nobel Prize?

It wasn't for just me. It was an institutional prize. In October 2013, political issues of Syria became very serious. Russia and western countries focused on preventing war in Syria because the USA and other western countries reported that Syria had chemical weapons and were about to attack. The US stopped its invasion of Syria when our institute took control of Syria's chemical weapons. Chemical weapons experts destroyed Syria's chemical weapons. Right at that moment, people started to talk about the Nobel Prize. Out of over 250 institutions and individuals, one institution and one individual received the Nobel Prize. The individual's prize was given to the Russian President V. Putin and the UN got the institutional prize.

The main objective of our institute is the absolute abolishment of all chemical weapons. So far, we've abolished around 80 percent of the total world chemical weapons. People agreed that it was definite that our institutions should get a Nobel Peace Prize. Although it's an institutional prize, team members who abolished Syria's chemical weapons got certificates and medals.

Have other Mongolians worked in this field before you?

Ever since the established of the UN Institution for Chemical Research in 1997, Mongolian experts have been constantly working there. In 1997, General Khurlee worked for the institute. The UN establishes a seven-year contract with us. When General Khurlee's contract expired, Colonel Narmandakh started working and later, I was employed. This is my tenth year working. Mongolians have been working as UN chemical weapons experts ever since the establishment without losing their positions. I'm very happy that I was able to maintain this position, become a member of a Nobel Prize winning team and bring this honor to Mongolia.

Since Mongolia is a peaceful country without any wars, not many are aware of chemical weapons. We only see it from films. What are chemical weapons?

The general and traditional definition of a chemical weapon is a toxic chemical contained in a delivery system, such as rockets, artillery, tanks and aircraft bombs. When the chemical evaporates, it contaminates the area. A person who inhales the chemical will die either within a minute or after excruciating pain. It's a weapon for mass destruction. It's defined as a toxic substance together with the chemical's delivery system.

Have you worked in war zones?

I guess I have since there was a civil war in Syria. Exact locations where experts worked and their missions are confidential; therefore, I can't reveal it through the media. I primarily work in Russia, the USA, Syria and Libya. During the 1940s, when there was the Japanese cavalry army, they established a weapon against Mongolia but weren't able to utilize it. Our experts' team discovered that chemical weapons were hidden in sandy regions such as Manchuria and Harbin and destroyed them. Generally, we work in many places but only the abovementioned four countries have actual chemical weapons. We go to other countries for practical training. The foremost objective is to destroy chemical weapons manually. Our work is considered completed with the absolute destruction of all chemical weapons.

How are chemical weapons destroyed?

There are several devices designed for destroying chemical weapons. The latest technology involves destroying by neutralizing which is to aspirate the toxic substance and mix it with nontoxic chemicals to make it nontoxic. The remaining substance is burnt at 1,000 degree Celsius stoves. Obviously, it'll not completely burn and disappear but chemicals stuck to the sides of the metal will evaporate and disappear. Metal wastes are divided and disposed. After this, the work is completed. As disposal is conducted similar to assembly, once it begins, it continues for 24 hours until it's completed. We don't have working hours or day offs. After I got this job, I worked for days and nights far away from my home for six years. Being a chemical weapons expert requires high endurance both physically and mentally. I got to understand that working in this field in this position shows Mongolians' durability, persistence and ability. I don't mean to promote myself but Mongolians who've worked and are working here.

How many chemical weapons have you destroyed?

Its recorded in amount not in units. Perhaps, several tens of thousands of tons. Sometimes, we destroy 10 bombs in a day, sometimes even 1,000 bombs. It depends on the circumstances of the day.

How long will you stay in Mongolia or will you stay here for good?

The institute gives a seven to eight day holiday. I'm very happy to have come to Mongolia on my holiday. Homeland is a very valuable thing. Unfortunately, we don't have more day offs.

You do a very difficult work which not many are capable of doing. There must have been many challenges during your ten year career. When was it the most difficult?

There haven't been unreasonably difficulties during my ten years working for the UN. However, it seems to be very difficult for Europeans. All chemical weapons are placed away from people. For instance, we serve our duties in wild jungles of India and forests of Siberia for several months.  Working in both minus and plus 50 degrees Celsius temperatures is not easy. At that time, I noticed that the people of developed countries, who were raised in good conditions and a lot of freedom, are having a difficult time. It occurred to me that Mongolians have exceptional adaptive skills as well as implementation capacity because Mongolians stay overtime while other experts from different countries go home to rest. As long as I'm needed, I don't think I'll experience my worst hardship.

Where does your family live?

When I left Mongolia, I went with my family. My family's well. My wife is looking after our children and my children are now working after graduating.

It must be difficult for a woman to manage a household while her husband is away for a long time. Does your wife complain?

My wife never complained. Sometimes when my wife goes back to Mongolia, it's difficult to be alone. It's more difficult to stay at home alone than on missions. At work, it's alright since I can get distracted with work and chat with colleagues but staying at home alone is very difficult.

You've worked in many places. How many languages can you speak?

From the languages recognized by the UN, I can speak five languages, which are Arabic, English, French, Russian, and Spanish. I can understand Chinese a little.

How much time do you spend on independent study?

I learnt languages independently. I don't like wasting time so I try to use every minute productively. While doing push-ups, I memorize and repeat vocabularies of the language I'm learning. It doesn't require heaps of time, we just need to be able to use the time we have efficiently. I don't only learn the language of a country I'm about to go to but also for research purposes. I go there after researching for weeks. It's best to know their culture. For instance, I don't eat pork when I'm in Arabia because the people there, who are Islamic interpret it as an affront. When I go to India, I don't eat beef because I'll be insulting Indians by eating the meat of a holy animal they worship. We should learn from our surroundings and respect everyone around us.

How long will you be working for the UN?

My contract was for seven years. My contract extension is connected to the achievement in Syria. It probably will not be extended again. When it expires, I'll return to Mongolia and probably work for the army.

Do you have any messages to young people in Mongolia?

In my opinion, young people of Mongolia are the most ambitious people of the world. There are 200 world-recognized schools in Mongolia.

Mongolian young people are very talented and capable. Although China is said to be developing rapidly, Mongolia is developing even faster. To all Mongolian young people, I'd like to advise them to have ambition, work at your highest ability and develop yourselves until you reach your limits.

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Chinese specialists to help restore ancient site in Mongolia

ULAN BATOR, June 12 (Xinhua) -- Mongolian and Chinese authorities have signed a cooperation agreement to restore and repair the ruins of an ancient urban settlement in Mongolia.

Altangerel Purev, state secretary of the Mongolian Culture, Sports and Tourism Ministry, and Yang Qingdong, political counsellor at the Chinese Embassy in Mongolia signed the agreement Tuesday.

Under the deal, Chinese cultural heritage restoration specialists will help restore Kherlen Bars, an ancient urban settlement in eastern Mongolia that dates back to the 10th century.

Under the agreement, Chinese specialists will restore the unique site and train Mongolian specialists.

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Social, Environmental and Other

Dusty Life at Tsogttsetsii

June 12 (Mongolian Economy) --

A Thirsty Town

Environmental concerns are often forgotten when there is the possibility for mining wealth. Tsogttsetsii residents face many problems ranging from pasture degradation to water scarcity. For example, there were 50 springs near the town just a few years ago. Today you can count the number of springs on one hand.

Mineral concentration in the water at Tsogttsetsii is high. Having enough drinking water is critical, according to local authorities. Water costs MNT 2 a litre at the water pumps, which filter the water for drinking. Some people complained the water from privately owned wells outside the centre of town was brackish.

Around 12 to 13 wells have run dry, the Umnugobi Citizens' Council restricted water usage from Balgasiin Ulaan Lake, beginning January 1, 2016, but later recanted the order after miners complained—they being the largest driver of growth for the region.

"Everything is turning for the worse because of the current system's failure," said Tsogttsetsii Governor N. Amgalan "Counties should be developed along with mining development. But everything is challenged here and locals are no longer interested in having the minerals used by companies."

The people living in the Gobi know now more than ever that water is scarce. Water is taken by TavanTolgoi from Balgasiin Ulaan Lake. Water experts say that more research is needed for the water resources but nothing has been done. Tsogttsetsii has 65,000 livestock – relatively few for communities in Umnugobi. Tavan Tolgoi JSC, which is partially owned by the local government, has been mining for 50 years, providing coal for three neighbouring provinces.

The dust in the air as a result of the operations prevents livestock from grazing nearby. Mining activities there expanded in 2005, and Tsogttsetsii has become all the dustier for it. Herders are left with little other choice than to pack up and leave.

The construction of the railway that will link Erdenes Resource's Ukhaa Khudag mine and the Gashuun Sukhait customs zone is adding fuel to the fire. The railway will restrict livestock grazing even more, locals complained. Herders said the railway should be constructed so that it circumvents traditional routes they use for their pastureland.

Soot in the Lungs

Health conditions are deteriorating all over town. One out of three people suffers from respiratory ailments and one out of two residents is allergic to dust, according to the local hospital officials.

Symptoms are worst among children younger than five years old. Those children represent 60 percent of all who suffer from respiratory ailments. The effects are heightened during winter and spring.
In 2012, the local hospital was expanded to a trans-county hospital, but the actual size of the one-story building remains the same It has only eight beds for patients. Ten doctors are on staff in the hospital, and the hospital only just recently received its first lab technician. The hospital lab can now provide nine types of examinations.

"The Minerals Law needs to be amended so that mining licences are not given if the mining activity is to be run at a settled area," said one angry local. "Locals will lose, but those who get the licence will not."

The growing population at Tsogttsetsii is also making the schools crowded. The school today has 800 students compared with the 440 it is able to hold. Groups of students arrive throughout the course of three different shifts each day. Energy Resource invested in the construction of a new school and kindergarten in January last year. The Muruudul School has 600 students enrolled and another

140 at its kindergarten. It also has a dormitory housing 100 children.

If the current situation continues the same as today, Tsogttsetsii's citizens will be deprived of their right to live in a healthy and safe environment. Looking out through the dusty air, the future for the residents here is hard to decipher. 

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Driving school awards driver's licenses to 18 people with disability

Ulaanbaatar, June 12 (MONTSAME) A "Tsag Urgelj" (roughly translated as "Always") driver licensing school has recently awarded driver's licenses to 18 people with disability.

The school has been running a commercial driver's license training for the disabled since its establishment this March, under a support from Ministries for Social Security, for Labor and for Justice.

A lack of designed for the disabled roads and accesses to facilities in the city hinders a development and education chances for these people, noted the graduates. "With the licenses, it will be easier to travel in the city on our own," they said. 

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'2 Moms, 10 Kids' breaks new ground in Mongolian television

By Michelle Borok

June 12 (UB Post) Melanie Kocke is the American co-host of Eagle TV's Eagle Live's newest talk and lifestyle program, "2 Moms 10 Kids", with Migaa Amraa.  The concept for the talk show came about when Batkhatan, executive producer at Among Mongolia, approached Melanie about making a TV talk show specifically for mothers.  Amid the many TV shows directed at women they saw a real need for something uplifting and encouraging, but beyond that, something that would be geared and tailored specifically to the needs of mothers.

The show's goal is to encourage and support mothers in their role.  Melanie, Migaa and the show's producers believe, "As goes the family so goes the nation. Mothers are a powerful force and vital to the future of this country and it is our honor to help them in any way we can."

Melanie is mom to four kids, ages twelve, ten, eight, and four.  She and her husband, Hetee have been married 13 years.  Melanie has lived in Mongolia since 1999, teaching English to young learners throughout that time and becoming fluent in Mongolian.  She has experience with counseling young mothers regarding health and child rearing. Melanie wants to see moms take on their roles with confidence and to generate a shift in the way society envisions the "stay-at-home" mom.

Migaa is mother of six, three boys and three girls. She and her husband, Borhuu have been married eight years. Migaa has professional experience in directing television shows.  Meeting and getting to know other mothers is something that drives her.  Her goal is to encourage other moms and help them to rise to the challenge that is motherhood.

The opening sequence for the show is a beautifully shot, modern, clever narrative of how these two women gracefully make the transition from incredibly busy moms to television talk show hosts. Their set is a spacious, contemporary living room and the show is shot as if you're a part of the conversation, curled up on their long, white couch and getting settled in to meet someone whose story you won't soon forget. 

We spoke with Melanie about the show, its reception, and motherhood.

How did "2 Moms, 10 Kids" come together on Eagle TV?

Our executive producer, who is a close friend of mine, came to me with the idea of creating the show last September.  As we began to move forward, forming a team to discuss ideas and address the needs of mothers in Mongolia, the show really just came together.

How has your reception been as a foreign co-host on a very locally themed program? Any noteworthy reactions to your proficiency and immersion in Mongolian language and culture?

So far, the feedback has been mostly positive.  Whenever possible, I try to draw parallels between Mongolian and American mothers, because I believe that moms are basically the same the world over.  The joys and struggles we face as moms are universal and it helps to know you're not alone.   I myself am in the thick of motherhood and I learn so much from each of our guests.  I never want to come across as someone who knows everything.  Just like our viewers, I am learning as I go!  I think the fact that I speak Mongolian helps to put our viewers at ease.  Speaking their language conveys a real concern for them and their families.  I make many mistakes but the Mongolian public has been most forgiving.

Have you had a chance to address the issues of cross-cultural families on the program?

We are currently working on an episode that deals with this issue.  It is an important one because it is becoming more and more common in Mongolia.  And it is a topic I know a little bit about.

The show's Facebook page has more than 11,000 likes and counting. What conclusions have you drawn from the fantastic reception?

We feel extremely pleased and humbled at the same time.  Our goal was moms encouraging moms and we feel like that is beginning to happen.  We hope it continues!

Any plans to provide subtitles in English to branch out to foreign viewers?

You know, we English speakers are very fortunate in that there is a never-ending supply of resources for mothers in English.  Mongolian women don't have this.  Having said that, it would be nice!

Who have been your most memorable guests so far?

It's so hard to say! But if I had to pick one, it would be Ariuntuya.  She is a 35 year-old mom to three busy boys.  She suffered an electrocution at the age of 19 and lost both hands as a result.  She definitely left an impression on me.

If you could invite anyone from the past or present to appear on your show, who would it be?

My grandmothers.

As the co-host of a show that often focuses on the challenges of parenting, what are your own biggest challenges as a working mother of four?

My greatest challenge is not having enough time.  I love spending time with my husband and kids.

What kind of guests can your audience look forward to on upcoming episodes?

More amazing moms!  Also, we will be bringing in experts to talk about issues such as teaching children about money, how and when to talk to kids about sex, how technology (iPads and other touchscreens) affect children, and many more relevant topics.

What does the future hold for the show?

It's hard to say for sure, but we're just enjoying it and taking it day by day. We do hope to see the network of mothers become stronger as more and more women identify with and help one another.

"2 Moms, 2 Kids" airs Tuesday through Sunday at 6:00 p.m. on Eagle Live. Episodes are also available on their YouTube channel. You can also join their online community on Facebook, https://www.facebook.com/2moms10kids

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Invest in your future by standing up for children's rights

By B.KHASH-ERDENE

June 12 (UB Post) We Mongolians pride ourselves on being a particularly child loving culture, one that encourages familial bonds above all else. But child labor under difficult and dangerous situations, human trafficking, and even sexual abuse and slavery still exist and are a major concern in Mongolian society.

World Day Against Child Labor was marked on June 12, which drew attention to the role of social protection in keeping children out of child labor and removing them from it.

Mongolian NGOs and organizations for protecting children's rights held a press conference and called for a stop to all child labor, highlighting that child labor has increased in the past four years, despite the claims made by officials in the field.

"On this day, when the football World Cup is launching, let us raise a red card, the highest penalty in football, to all child labor… We all know what happens to a team or a player that receives a red card. We want the same for all organizations and individuals that utilize child labor. Therefore, we call upon all residents, businesses, and media outlets to join us in putting a stop to child labor," said Kh.Baavgai, head of the Child and Family Department of the Ministry of Population Development.

Although the Head of the Capital City Family Development Authority, Ya.Baigalmaa, said that child labor has decreased in Ulaanbaatar, NGOs claim that child labor has increased 1.8 percent according to their studies.

"The National Statistical Office conducts a child labor survey every four years. The last one was conducted last year, in 2013. The survey revealed that, unfortunately, child labor rates have indeed increased in Mongolia. It stated that more than 98,000 children aged between five and 15 have been involved in child labor and employed in the nation's economic activities in some form. This is an increase of 1.8 percent since 2009," said a spokesperson for the NGOs at the press conference.

According to the latest studies on child labor, roughly 10 percent of children under the age of 14 are actively being employed, most of whom are working in the agricultural and animal husbandry sector in rural areas.

The 2010 Findings on the Worst Forms of Child Labor Report, published by the US Department of Labor, said that children in Mongolia are engaged in the worst forms of child labor, most commonly in herding and animal husbandry. Herding exposes children to extreme cold and frostbite, exhaustion, animal attacks, assault or beatings, nonpayment of wages and accidents such as falling off horses or being cut by sharp knives while slaughtering livestock.

The report also highlighted that many children mine gold, coal and fluorspar, both on the surface and underground, in artisanal mines. "In mining, children handle mercury and explosives, transport heavy materials, stand in water for prolonged periods, work in extreme climate conditions, risk falling into open pits and enter tunnels up to 10 meters deep at risk of collapse."

"The worst forms of child labor, such as child prostitution and child trafficking, also exist in Mongolia. Child prostitution, including child sex tourism, is a continuing problem. Girls are trafficked internally and forced into prostitution in saunas and massage parlors. Girls are also trafficked to China, Macau, Malaysia and South Korea for sexual exploitation and forced labor," the report emphasized.

Numerous domestic children's rights organizations have voiced their concerns regarding child jockeys in Mongolia, who work in extremely dangerous circumstances. It's not uncommon for child jockeys to acquire serious injuries or even die during a race, especially during winter races, which can be dozens and sometimes hundreds of kilometers long. Around 50 horse races take place in Mongolia every year and more than 2,000 child jockeys are employed in total.

From personal experience, it's not uncommon for me to be approached by children who sell chewing gum and other menial goods in cafes and restaurants around Ulaanbaatar, and when driving, I recently noticed more and more children knocking on cars lined up in traffic to sell drinks and car air fresheners.

As someone who occasionally volunteers at an orphanage, I've found that children there more often have parents, or a single parent, but they are unable to support them, or they have been abandoned or abused to the point that they had to run away. It's always sad to see children, who are the future of this country, being neglected and abused, but I would rather see them at the orphanage, where they are have food, shelter and someone to attend to their basic needs, than on the streets or with abusive guardians.

In recent years, this issue has taken a back seat, with other immediate economic challenges taking precedence. The government has announced several programs to protect children's rights, such as the National Program for the Elimination of the Worst Forms of Child Labor 2011-16, National Program for Preventing and Protecting Children and Women, and others that attempt to prevent child labor, but none of these have been implemented or have shown any results, according to the Findings on the Worst Forms of Child Labor Report.

Children often hear the phrase, "You are the future of this country," but reports show that around one in ten are forced to work and are exploited, rather than educated and taken care for. Mongolia, as a nation, needs to reflect on the message we give to our "future."

I find working with children very chaotic and challenging, but also extremely rewarding. I do not see it as charity or altruism. My time spent with the children of Amgalan orphanage has taught me many valuable lessons that have spilled over in to my personal life, as well as my career. Therefore, I will encourage everyone who is able, to invest their time and energy for children, just a little, by standing for their rights and leading them by example. And if/when you do this, I want you to realize that the protection and support of children is more of a long term investment in your future rather than charity.

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Reality Show: Wonderful Mongolia Tour 2014

We invite you to participate in the fun and adventurous eco-reality show.

By participating in our tour show:

1. Tour through 4500 km of land in Mongolia and visit scenic lands of Altai, Khangai, Gobi, dessert and historical places.
2. Participate in an adventurous tour and challenge yourself.
3. The reality show mixes fun, free relaxation with adventurous competitions.
4. Your memorable trip will be taken on film.
5. A chance to become a TV or internet star.
6. A winning team for each competition receives $500
7. Grand Prix price of $30 000 for one winning team

The adventures and features in our tour:

- Participate in the two-humped camel race which are found only in Mongolia and Central Asia

- Ride the Mongolian horses that conquered the world
- Rock climbing
- Fitness competition /pull a car, lift rocks by the team/
- Climb sandy mountains
- Yak polo
- Race to Mountain top
- Mongolian traditional mechanical toys
- Participate in the Three Manly Competitions

A professional team will organize the reality show. Advantages:

- International journalists will be working
- Each team will have 1 SUV and a designated driver
- Mongolian traditional chefs
- Luxurious hotels
- Spend the nights in tour camps with gers
- Spend some of the nights in a tent under the stars
- A complete crew with a TV studio and professional filming
- Safety will be guaranteed by a special security

Requirements

One team from one country
Each team has 3 members
The tax for each person to be participating in the reality show is $3000
Each team's wager is 3000

"WONDERFUL MONGOLIA TOUR 2014"

Requirements and rules to participants of international reality show

1. Registration: All of the foreign applicants willing to participate in "Amazing journey to Mongolian Legend" must bring following documents,
• Passport, Visa expiry date
• Temporary address in Mongolia, contact number
• Certificate of health
• Whether vegetarian or not

2. All of the foreign participants must crew their team consists of 3 people from their country. And the team must prepare following things,
• Each member of the team must prepare their private items (cups, spoons, forks, a sleeping bag, a tent, warm clothes, a towel, soaps etc)
• The team must prepare a presentation about its own country (present their country to audiences)
• 2 flags of its own country (75X150, one is for the vehicle and another one is for the camp)
• Project charge 9000$ per person ( stake 3000$): Trade and Development Bank of Mongolia: 499 196 560

3. All of the participants have to meet and follow following requirements and rules 
• To have some knowledge about Mongolia
• Should be age of 18-45 and healthy
• To have at least 1 female member in a team 
• To be punctual, organized and willing to carry responsibility
• To be cultural and a good team player
• Not to smoke and drink
• To obey team leaders' claims and orders 
• To obey orders of the camera director and the camera team workers during filming
• Not to deviate from the travel itinerary without permission 
• To express your opinion about the project to the organizers/team leaders/producer/director and get your answer
• To complete tasks honestly and with sincerity 
• To communicate others openly, amiably, respectfully and harmoniously 
• To be respectful of flags, cultures, languages and heritages of own and other countries
• It is forbidden to show ludicrous, immoral or harsh acts during travel

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