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Thursday, November 27, 2014
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TRQ closed -3.08% Wednesday to US$3.46
Glencore readies for Rio Tinto round two, possibly offering Oyu Tolgoi to Chinalco
November 26 (Sydney Morning Herald) Glencore chief executive Ivan Glasenberg's second attempt to force a merger with Rio Tinto will involve an attack on Sam Walsh over dwindling hopes of substantial capital returns, as he tries to win the support of Rio's biggest shareholder, Chinese giant Chinalco, by promising to sell key assets Oyu Tolgoi and Simandou.
That's the view of Bernstein's London-based senior analyst Paul Gait, who predicted Glencore would make a move on Rio in September, a month before Rio confirmed the approach.
That $190 billion merger approach was rebuffed, and under British law Glencore must wait until April to make another attempt. Mr Gait expects Mr Glasenberg will waste little time.
"Is he coming back? In my view, yes," Mr Gait said from London.
Mr Gait told The Australian Financial Review Glencore's shock announcement that it would shut down its Australian coal operations for three weeks was a strong indication Mr Glasenberg would try again for Rio.
He said Mr Glasenberg would be able to point to Glencore's willingness to pull tonnes out of an oversupplied market in a direct challenge to Rio over its expansion in iron ore.
"To me this coal announcement is clearly Ivan playing games," Mr Gait said. "It had the language of someone trying to make his credentials on managing the market as a CEO. It's a shot across the bows to Rio."
Mr Glasenberg has lashed out repeatedly at the expansion strategies being used by Rio and its fellow iron ore giants, and their price impact, as part of his attempt to pitch the merger.
Mr Gait believes Mr Glasenberg would retain an Australian listing for the merged entity and preserve its listing in London.
Keeping the Australian listing would help with its pitch to FIRB, while Mr Glasenberg would also make sure Western Australia supported a merger.
The starting point would be all-scrip, zero premium "merger of equals", and Mr Glasenberg wouldn't go higher than a 10 to 20 per cent premium, he said.
That view is supported by reports out of London, where Bloomberg said former JPMorgan Chase dealmaker Ian Hannam, who now runs a boutique advisory firm, brought representatives of more than 20 investors to together to discuss the deal.
"If not today, this deal will happen some time in the near future," Hannam said in his presentation, according to a copy seen by Bloomberg. He wants to position his firm, Hannam & Partners, to get a slice of the potential deal.
Mr Gait believes winning the support of Rio's big shareholders in China and London will be crucial to getting a deal with Rio over the line. Australia's Foreign Investment Review Board also presents a big hurdle.
Chinalco owns 9.8 per cent of Rio. The company and Chinese regulator MOFCOM are seen as key stumbling blocks to a merger, because they would be wary of allowing the merged entity to gain too much power over certain commodities.
But Mr Gait said the state-owned aluminium giant could be open to Glencore's approach.
"Historically, Chinalco borrowed $14 billion to buy this stake in Rio It's halved in value and people have been shot for far, far less than that in China. Politically, this is not a good thing," he said.
"Ivan's opening line to Chinalco I'm sure would be: 'Guys are you happy? Tell me what's upsetting you in the world of commodities'."
He believes Glencore could offer to give Chinalco Rio's stakes in its key Mongolian copper project Oyu Tolgoi and its greenfields iron ore project Simandou, in Guinea. That would help allay concerns about market power and help restore some of the value Chinalco had lost.
"So that's easy for Glasenberg. You give them Oyu Tolgoi and you give them Simandou, assets that from a Glencore perspective have zero value but from a Chinalco perspective have huge value, and you buy the shares for a relatively modest premium."
After wining over Chinalco, Mr Gait said Glencore would then need to focus on Rio's London shareholders, who had expressed some disquiet about Rio's rapid iron ore expansion – which has helped push down prices by almost 50 per cent this year – and the fact long-promised capital returns haven't materialised.
"Rio has little ability to return the big wall of cash that has been promised for the past 10 years. Investors were promised there would be significant buybacks, returns of capital," he said.
Mr Glasenberg would cut through the disquiet with a very clear narrative that the person to blame was Sam Walsh, Mr Gait said.
"A lot of this [merger attempt] is, in a lot of ways, an ad hominem attack on the management of Rio Tinto, designed essentially to transfer the assets.
"In an all-share deal, which is what this is going to be, all you're really discussing is who you want to manage these assets. That's it."
Mr Gait also argues that the colourful Glencore boss is likely trying to shore up political support in WA tapping Premier Colin Barnett's frustration over Rio and BHP's iron ore expansions. "Having the WA government online, or at least politically ambivalent, is crucial. What would be impossible in the FIRB context is if WA started playing the nationalist card."
It is understood Rio believes a merger of equals will be almost impossible to get over the line.
But a deal that offers Rio's key shareholders a premium would get the two parties talking. Which, Mr Gait, said, was exactly what Glencore wanted.
"What Ivan wants is to get people talking, because he knows that once they start talking he invariably gets what he wants. History shows that. Once that happens, the solution will present itself."
MEC trading -1.6% in early trading
Mongolia Energy losses widen amid write-down in iron ore project
By Ray Chan
November 27 (South China Morning Post) Half-yearly losses in coal mine developer Mongolia Energy widened to HK$457.8 million for the six months ending in September, up from HK$331.9 million the same period a year earlier, according to a statement with the Hong Kong stock exchange on Thursday.
The company, which had defaulted on the redemption of certain convertible bonds in November last year, said the losses were partly due to a HK$285.7 million impairment of its mining and exploration rights, while the group generated no revenue for the entire period.
Given the crash in iron ore prices, management believes it would be difficult to identify a potential buyer to acquire the iron ore concession in Western Mongolia by October 2015, it said.
In addition, the company said it has four mining concessions. The cash level in the Hong Kong-listed company dropped to HK$44.3 million in September from HK$48.6 million six months ago, while holding HK$4.5 billion in net debts in September, it said.
Market value of the company's shares dropped more than 80 per cent this year.
Mogul Ventures Corp. (Pending RTO) Presentation - Opportunity Knocks VI
November 24 (InvestmentPitch.com) Presenter, Jamul Jadamba, President and Chief Executive Officer, Mogul Ventures Corp. Mogul is a Canadian Corporation with a majority local (Mongolian) ownership that focuses on exploration, development and production of metals and coal in Mongolia. Mogul is pending a listing on TSX-V in Q4, 2014 via a reverse takeover (RTO) of Knowlton Capital Inc. (TSXV – KCW.H).
Related:
Knowlton Capital Inc. Signs Definitive Agreement with Mogul Ventures Corp. – CNW, August 26
Guildford: Baruun Noyon Uul Mine – Confirmation of Increased Mining Capacity
November 27 -- Guildford Coal Limited (Guildford or the Company) (ASX: GUF) is pleased to announce the Mineral Resources Profession Committee from the Mineral Resource Authority of Mongolia (MRAM), has formally approved an increase in the Company's allowable mining capacity to 1.5Mt in 2015 and 2.0Mt in 2016.
Group Managing Director, Peter Kane said "MRAM's approval to increase our mining capacity is a significant development for Guildford. It allows us to ramp up production at the BNU Mine beyond the recently announced targeted production figures for 2015, if it makes economic sense to do so. This is great news for the Company."
Related:
Baruun Noyon Uul Mine Second Trial Coal Test Results – Guildford Coal, November 27
Guildford: Notice of Despatch of Bidder's Statement from Sino Construction
November 26,
Origo Appoints Its Nominated Advisor Smith & Williamson as Sole Corporate Broker
November 26 – Origo Partners Plc (AIM:OPP) announces that the Company's nominated adviser, Smith & Williamson Corporate Finance Limited, has been appointed as the Company's sole corporate broker with immediate effect.
Mogi: this was one of those fluke ideas to milk the Minegolia bandwagon of the not-so-long-ago era
GoConnect Abandons Plan to List First Mongolian Investment Holdings on ASX
November 13 -- Further to various announcements to the ASX between March and June 2012 regarding the proposed listing and various partnerships involving GoConnect Ltd (ASX:GCN), and GoConnect Australia Pty Ltd, further due diligence by GoConnect Ltd has led to the conclusion that First Mongolian does not and will not have the appropriate assets to support the proposed ASX listing. Accordingly GoConnect Ltd has abandoned the plan for the proposed ASX listing of First Mongolian and no share distribution of First Mongolian will be made to GoConnect Ltd shareholders.
MSE News for November 26: Top 20 +0.17% to 14,936.52, Turnover ₮604.3 Million
Ulaanbaatar, November 26 (MONTSAME) At the Stock Exchange trades on Wednesday, a total of 93 thousand and 910 units of 18 JSCs were traded costing MNT 604 million 250 thousand and 760.00.
"Mon-it buligaar" /88 thousand units/, "Hai Bi Oil" /2,000 units/, "State Department Store" /1,352 units/, "Genco tour bureau" /753 units/ and "Merex" /700 units/ were the most actively traded in terms of trading volume, in terms of trading value were "Mon-it buligaar" (MNT 598 million and 400 thousand), "Material impex" (MNT two million and 108 thousand), "Hai Bi Oil" (MNT one million and 100 thousand), "State Department Store" (MNT 758 thousand and 472) and "Gobi" (MNT 384 thousand and 800).
The total market capitalization was set at MNT one trillion 468 billion 455 million 726 thousand and 284. The Index of Top-20 JSCs was 14,936.52, increasing 25.26 units or 0.17% against the previous day.
Early morning non-cash USD rates: Khan (Buy ₮1,886 Sell ₮1,896), TDB (Buy ₮1,886 Sell ₮1,896), Golomt (Buy ₮1,890 Sell ₮1,896), XacBank (Buy ₮1,885 Sell ₮1,897), State Bank (Buy ₮1,884 Sell ₮1,896)
BoM MNT Rates: Wednesday, November 26 Close
| | 11/26 | 11/25 | 11/24 | 11/21 | 11/20 | 11/19 | 11/18 | 11/17 |
| USD | 1,892.79 | 1,890.43 | 1,887.83 | 1,885.80 | 1,883.13 | 1,881.65 | 1,879.23 | 1,878.36 |
| EUR | 2,360.12 | 2,348.39 | 2,340.44 | 2,365.64 | 2,360.97 | 2,358.74 | 2,347.06 | 2,354.05 |
| CNY | 308.34 | 307.85 | 307.63 | 307.89 | 307.49 | 307.43 | 307.04 | 306.69 |
| GBP | 2,973.95 | 2,962.11 | 2,956.15 | 2,959.29 | 2,946.44 | 2,938.38 | 2,943.44 | 2,945.36 |
| RUB | 40.78 | 42.14 | 42.37 | 41.24 | 40.36 | 39.95 | 40.05 | 39.64 |
November MNT vs USD, CNY Chart:
GoM Treasury Auction: ₮55 Billion 12-Week Bills Sold at Discount, Average Yield 15.957%
November 26 (Bank of Mongolia) Auction for 12 weeks maturity Government Treasury bill was announced at face value of 55.0 billion MNT. Face value of 55.0 billion /out of 60.0 billion bid/ Government Treasury bill was sold at discounted price and with weighted average yield of 15.957%.
BoM issues ₮34 billion 1-week bills, total outstanding -28.2% to ₮239.5 billion
November 26 (Bank of Mongolia) BoM issues 1 week bills worth MNT 34 billion at a weighted interest rate of 12.0 percent per annum /For previous auctions click here/
Newly elected Prime Minister's economic policy
By Bayartogtokh
November 26 (Mongolian Economy) In an official address to Parliament, newly elected Mongolian Prime Minister Ch.Saikhanbileg resolved to take prompt action in mending the recent damage done to Mongolia's economy.
Defining his government's general policy as supportive, quick and solution oriented, he looks to focus on creating a more open and welcoming business environment. Such draft bills as the Law on Special Permits and Licenses and the Law on Economic Transparency are to be immediately reviewed in parliament for approval, to remove the current barriers to mining sector expansion.
Regarding the recent failures of parliament, which has done little but watch the economy spiral into a near crisis, the prime minister announced: "We are the cause of the economic crises." He repeatedly stated parliament must take intense and powerful action to move forward.
The new government aims to restore faith in the economy with policies supporting the private sector and expanding businesses. This includes the creation of a new loan management structure, to be based on a balanced combination of investment and soft loans. Meanwhile Parliament Resolution 34, regarding the restructuring of ministries, ministerial titles and responsibilities, is to receive full implementation.
Additional measures include reforms to the private ownership of state properties, beginning with privatisation in the social sector and the introduction of corporate governance features.
The establishment of an investment fund was announced, as the government looks to support commercial banks in raising foreign investment. The government seeks to actively increase investment flow to Mongolia, and will begin willingly collaborating with the private sector in this direction.
The Prime Minister's development policy covers tourism, information technology, and agriculture—especially the meat and cashmere industries—in addition to the revival of the mining sector. He noted: "Let us create an economy with sufficient capital reserve, correct management, and risk management from now on."
The newly established government will eventually start the realisation of a USD 1 billion soft loan from China, which may lessen the ever-increasing USD exchange rate, currently at MNT 1883.
Ch.Saikhanbileg strictly noticed that the multi-billion dollar Oyu Tolgoi mine's stalled expansion, a problem keeping out many who want to invest in Mongolia, is an issue that must receive the highest attention of parliament. Economic difficulties will remain until the new Prime Minister's words become reality.
Crown Agents: Mongolia trips™ work signed off at official ceremony
November 24 (Crown Agents) November 2014 saw the official sign-off of our work to install our trips™ integrated revenue system software in Mongolia, paving the way for the country to build up efficient and transparent tax system.
We have been working on the project since February 2011, overseeing the design, supply and installation of the trips™ system. It has been an extremely challenging project but one that we have brought to a very successful conclusion. Having also provided 'training for trainers', teams of staff from Mongolia's Ministry of Finance and General Department of Taxation are now rolling out knowledge of the system throughout the country in preparation for it to go live in January 2015.
Once the system is live, Mongolia will be able to reap the multiple benefits of having it in place. They will be able to effectively enforce taxation requirements of much more of the population; they will be able identify and address fraudulent practices; and they will have a structured system in place by which to account for all of the levies raised.
The sign-off ceremony was held in Ulaanbaatar on November 13 and was attended by representatives from the Mongolian Ministry of Finance and General Department of Taxation, the World Bank – which funded the project – and Crown Agents' project management team. The World Bank's Zahid Hasnain, who has been our donor liaison throughout the project, said, "We now want to use it as a benchmark – to share it with other countries and bring people from those countries to Mongolia to see the project team and the work in action. Crown Agents has shown total commitment and dedication and are commended for their efforts to make this a success."
Our work in Mongolia is the latest in a line of projects to install trips™ in countries that are seeking major tax system reforms. We won the British Expertise Outstanding International Collaboration Award 2014 for our implementation of trips™ in Ghana, and have also applied it in countries including the Philippines and Kyrgyzstan.
MP Batchimeg Tasked with Heading Coalition Talks with Parties
November 26 (infomongolia.com) The Speaker of the State Great Khural (Parliament) Z.Enkhbold obliged the newly elected Prime Minister of Mongolia Ch.Saikhanbileg to form his Cabinet within two weeks from the day of accreditation.
Accordingly, the Democratic Party Group at the Parliament sent letters of request to establish a Coalition Government with other political forces having seats in the Parliament. So, in order to stimulate the process having negotiations with other political parties, the DP Group set up a working group chaired by MP M.Batchimeg on November 25, 2014.
From today, the working group is starting to have negotiations with other parties, but the only opposition party (Mongolian People's Party) having 26 seats out of total 76 memberships of the Parliament, responded to give its final answer whether to join the Coalition Government or not following the MPP Baga Khural (Lower Chamber) meeting scheduled on November 28, 2014.
Related:
Negotiation talks to form the new government in progress – news.mn, November 26
Saikhanbileg Hosts First Monthly Online Meeting with Aimag Governors
November 26 (infomongolia.com) The monthly regular on-line meeting with Governors of Aimags has been continued by recently elected Prime Minister Ch.Saikhanbileg on November 26, 2014.
During the meeting it was discussed:
- Mongolia at the preliminary results harvested 491 thousand tons of crops, which shows the highest record in recent years.
- Construction works of power plants in Khuvsgul, Uvs and Khovd Aimags have been accomplished last month and now all these plants operating and distributing heat to local consumers. (Mogi: must be then a thermal plant, not power)
- Overhead power lines and its sub-stations to connect Shinejinst, Bayan-Undur and Bayantsagaan Sums of Bayankhongor Aimag with regional power have been accomplished and soon will be connected.
- The 2012-2016 Government Action Plan includes to connect all centers of Aimags to the Capital City with paved road.
- According to plan, Umnugovi, Sukhbaatar and Khuvsgul Aimags have been linked with paved road to Ulaanbaatar in 2014. The road construction works of Dornod Aimag to UB is delayed due to irresponsibility and officials pledged to accomplish next year.
Achieving Macro-Economic Stability (Part 2)
November 19 (Institute for National Strategy) --
INS Problem statement
Last week Mr. Khashchuluun raised the "macro-economic" issues that need to be understood and reconciled by ordinary Mongolians, policy influencers and policy decision makers alike.
Three years of high economic growth have been experienced but at the same time we now have a situation where we rate poorly in terms of inflation, affordable housing, low interest rates, job growth, and improved government service delivery. At the same time our personal and national debt levels are escalating rapidly and the Mongolian currency is steadily declining in value.
Mongolia now has a significantly higher level of debt, with higher interest and debt repayments to honor and service, and a structural current account deficit to deal with. This situation will not disappear and will only get worse if not addressed immediately.
What can be done?
Authors Opinion – by Cameron McRae, Founding President of INS
The strength of an organization is often measured in how it responds to harsh conditions. Great organizations thrive in the good times and survive well during the hard times. Often these organizations save during the good times to ensure they have resources in place to borrow against for the tough times. Great organisations also take remedial actions quickly when it becomes clear that existing strategies are not working.
Recent global events have conspired against Mongolia – the end of the commodity "super-cycle" has seen huge contractions in new investments, reduced volumes sold and reduced selling prices. All three factors have hit Mongolia hard. But Mongolia has also made its own life more difficult by creating an uncertain investment regime for both international investors and lenders which has led to many projects being stuck on the drawing board.
An immediate improvement in the global mining cycle will provide some relief from the existing operating mines. However it will not alter the structural issues that Mongolia now faces. The ability to ramp up new production and earn extra revenues and taxes – through greenfield projects and brownfield expansions – takes years to occur.
Despite recent improvements to some investment related laws and regulations, international investors remain cautious about Mongolian business opportunites. Certainly resolution of the OT dispute with Rio Tinto will be a good sign but there is more to be done given the number of other sore points that are not yet fixed.
Unfortunately the Mongolian government now has a significantly reduced ability to pursue macro-economic policies that
· pay for future infrastructure with cheap government raised debt,
· pay for investments in strategic industries (such as mining)
· subsidize poorly performing SOE's
· subsidize normal citizens through price controls
· subsidize certain industries through cheap loans
Mongolia has (rightly) increased its focus on leveraging into the growing trade between Russia and China. It is also presenting itself in a less antagonistic manner to China in terms of improving its ability to trade on internationally fair terms. This is smart and building a long term mutually beneficial relationship is imperative work. Achieving internationally benchmarked prices for commodity exports is also a strategic imperative.
But Mongolia knows well that it cannot afford to put all its eggs into a single basket – so working with competent and significant non-Sino trading partners should remain a strategic imperative.
The GoM is also pursuing government to government support for various large projects – and especially from neighbors within the Asian region. Again this is important work, and the government needs to ensure these projects are gained on economically fair terms and do not restrict future flexibility.
So what can be done about the macro-economic situation? Telling the electorate that things will be OK can be politically justified. However fooling yourself into thinking that you can borrow and spend your way out of trouble is not wise.
Examples of this occurred in Europe and other countries in 2009-10 following the GFC – where already heavily indebted governments increased their spending as the private sector shrunk. These countries are effectively bankrupt and are now undergoing radical restructuring to many areas of their economy and society.
Action 1: Publicly benchmark Mongolia against a number of international measures (including the Matrich Treaty).
By acknowledging the severity of the situation that Mongolia faces – through publicly released metrics and future (well thought through) targets – should make it easier for citizens to understand the need for modifications to macro-economic policy. Some key measures are:
Matrich Target | Mongolian performance | |
Inflation | 3% | 3% in 2011, to a high 17% in 2012 and then 14% in 2013 |
Budget deficit (% of GDP) | 3% max | 10% in 2013 when counting off-balance sheet lending |
Currency fluctuation | 2.5% pa | Moved from 1300 in 2011 to a low of 1880 in 2014 – a 44% devaluation in 3 years |
Measuring FDI with and without Oyu Tolgoi is important because we need to understand how the rest of the economy is performing and to ensure that the OT business is running at full steam.
Tracking the balance of payments and absolute levels of imports and exports highlights the importance of the performance of the export focused sectors of the economy. A high level of exports allows imports to be purchased without negative impacts on currency reserves, exchange rates and interest rates.
Action 2: Create a clear view of Mongolia's total debt and put back discipline
This is critical. Yes, borrowing and debt repayment is a fact of life – organizations needs to borrow money to pay for capital goods. This is true whether one is a family, a business, or a government. However 2 critical rules are
Do not borrow to meet current expenditure needs
Only borrow to levels that are sensible and that you can service and repay on schedule.
Action 3: Address the critical realities that will not self-correct and ensure that government policy takes these factors into account. The critical realities are
1. Mongolia's economy runs on several tracks
· Existing mining businesses and projects under development
· Future natural resource mega-projects that require huge capital investment and international technology and finance to get them started
· Future infrastructure projects to support mining, energy and agricultural projects as well as modernizing Mongolia's transportation and energy transmission
· Real estate development and the rest of the economy
2. The GoM now has very high levels of debt and does not have its own money to invest in mining ventures, large infrastructure ventures and energy projects
3. Mongolia does not have a successful record of bringing on a steady stream of privately funded large projects in mining, energy and infrastructure.
4. Mongolia may gain revenues from new mining projects in the next 10 years, if it creates an attractive and safe investment environment today. However significant "new" construction starts are unlikely in the next year and significant operational revenues will not flow for 5+ years.
5. The GoM is heavily subsiding Mongolian companies and individuals through different subsidy schemes. This continues to increase government debt, with no repayment of the subsidies ever likely to occur. Worse still it does not increase productivity or international competitiveness.
Action 4: Focus government policy measures under two banners – growth and service delivery
Banner 1 is about growing a bigger economic pie and giving the job to those organisations who are best suited to delivering it – cost effectively and with their own sources of capital.
Banner 2 is about supporting Banner 1 and then public service delivery – focusing on government budget deficits, inflation, interest rates, housing affordability and improving government services.
Key macro-economic measures to be acted on include:
· Stop wasting scarce GoM revenues on subsidies to SOE's, consumers and private companies
o Phasing out subsidies should be done quickly with investment incentives being linked to productivity improvements in agriculture and new fields of endeavor.
o Get all users to pay fair prices for fuel, electricity, etc… YES, it will have a once of hit to inflation but then it will not be reflected going forward.
· Privatize and then sell SOE's that are loss making – this will provide immediate relief to the budget
· Open up the banking sector for fresh injections of capital (which should lower interest rates to commercial borrowers)
· Create incentives for people to save – and create saving pools to be borrowed against for accommodation mortgages
· Ensure that future government borrowing is only undertaken where it
o Replaces higher cost debt with lower cost debt
o Is invested in sectors whereby economic activity is sustainably increased
o Is invested in projects that have been transparently tendered and where net economic benefits are obvious and near term
Action 5: Radically alter the approach to attracting foreign investment and finance.
The government is already addressing the investment climate through regulation and publicity events. It now recognizes the absolute importance of investor confidence in a country's leadership and each country's ability to honor existing agreements and provide a reliable legal system to arbitrate over legal disputes. Tax stabilization agreements are now being offered but other measures also need to be considered to win international finance for Mongolian based investments.
· Provide tax incentives that entice new activity to occur (ie.. incentives that do not exist)
· Ensure that cabinet and government agencies are set-up to genuinely facilitate the establishment of successful proposals (requiring international finance), and that they absolutely fast-track development once (all) approvals to commence are given.
INS Commentary
Mr. Khaschuluun and Mr. McRae have now written separately on measures needed to rectify the economic situation in Mongolia. Growing the economy and Mongolian standards of living is a highly complex task. Doing it with regard to the needs of our neighbors, trading partners and international investors and banks will yield positive results for Mongolia and its citizens.
Mr. McRae has highlighted that the GoM needs to more clearly explain the macro-economic situation and options to its citizens and take the hard decisions that are now required.
The political parties should NOW clearly lay out their policy positions on macro-economic management – so that voters in the 2016 election can clearly judge who is most competent in this regard.
And finally it is recommended that an independent macro-economic scoreboard be developed for Mongolia so that its citizenship are clearly informed.
Greater Governance, Stronger Rankings: Mongolia Revisits the Resource Governance Index
By Dorjdari Namkhaijantsan and Fidan Bagirova
November 23 (National Resource Governance Institute) In 2013 the Natural Resource Governance Institute (NRGI) published its Resource Governance Index, a ranking of countries where extractive resources play a considerable role in economic and sustainable development.
Of 58 countries, Mongolia ranked 26th, with a "partial" score of 51 out of 100. The country's institutional and legal setting earned high marks, while its reporting practices scored poorly.
Despite its middle-of-the-road composite score, Mongolia's state-owned enterprise (SOE) earned a sub-score of 20 out of 100, worse than all but seven of the ranking's 45 countries with SOEs.
Mongolia's state-owned enterprise scored 20 out of 100. The country looks to improve its ranking.
Above all, a lack of transparency brought the sub-score down, the RGI's authors wrote. "Almost no information is available on the functioning of the company. It publishes no financial reports, despite a legal obligation to do so," the report said.
Since early this year, NRGI has worked closely with Mongolia's government to help it improve its RGI ranking and better manage its resource revenues in a volatile commodities market. In February the Mining Ministry met with NRGI's Marie Lintzer, Patrick Heller and Dorjdari Namkhaijantsan to review relevant studies on SOEs around the world.
Endowed with vast mineral deposits, Mongolia has several medium to large SOEs in its mining sector. Some are remnants of Soviet times, while others are more recent establishments. With 15 so-called strategic deposits to date, the state can participate as an equity holder, but its level of participation depends on whether deposits were discovered using state or private funds, according to the country's 2006 Minerals Law.
A state holding company, Erdenes Mongol, oversees the government's role in projects that develop and mine these deposits. These include five mines—Erdenet (copper molydenium), Oyu Tolgoi (copper and gold), Baganuur (coal), Shivee Ovoo (coal), and Tavan Tolgoi (coking coal)—and their subsidiaries.
(NRGI's Dorjdari Namkhaijantsan, in rear between two blue flags, meets with Erdenes Mongol board members in October in Mongolia's capital.)
More recently, Erdenes Mongol representatives expressed interest in working closely with NRGI to improve company governance. Discussions at Oyu Tolgoi, which published the EITI subnational report in its monthly information bulletin, focused on whether the government could hold equity positions in mining companies, oftentimes against tax and other concessions, or sell state equity down the road.
In response, NRGI submitted recommendations [available here in Mongolian] to Erdenes Mongol and the country's EITI stakeholders. Annual financial reports, audit reports, financial disclosures and information about company management must be made available to the public on a regular basis, for starters.
In October, Erdenes Mongol's committed at an NRGI-led workshop for its board of directors to work to improve its overall RGI score on SOE governance. Notable participants included Mr. Ch. Otgochuluu of Oyu Tolgoi and the Ministry of Mining, Mr. G. Temuulen of Oyu Tolgoi, Mr. S. Behbat of the Ministry of Economic Development, and Mr. O. Sainbuyan and Mr. S. Tselmeg, both of Erdenes Mongol.
The company managers, who plan to hold NRGI training workshops on a regular basis, have expressed a willingness to raise their governance standards to the level of the best performing SOEs in the world.
If they are to improve their resource governance score before next year's new rankings are released, they must continue to push for urgent and significant reform.
Dorjdari Namkhaijantsan is NRGI's Mongolia country coordinator. Fidan Bagirova is NRGI's Eurasia senior regional associate.
Mogi: fascinating read
WikiLeaks: List of Communiques from US Embassy in Ulaanbaatar to State Department, 1990-2010
Reference ID | Subject | Created | Classification | Origin |
ANNUAL TERRORISM REPORT | ||||
MONGOLIA: 1991 ANNUAL TERRORISM REPORT | ||||
ANNUAL TERRORISM REPORT FOR MONGOLIA | ||||
MONGOLIA: 1993 ANNUAL TERRORISM REPORT | ||||
MONGOLIA: 1994 ANNUAL TERRORISM REPORT | ||||
MONGOLIAN: 1995 ANNUAL TERRORISM REPORT | ||||
MONGOLIA: 2000 ANNUAL TERRORISM REPORT | ||||
AFGHANISTAN'S FUTURE - NEXT STEPS | ||||
MONGOLIA: 2001 ANNUAL TERRORISM REPORT | ||||
MONGOLIA: 2002 ANNUAL TERRORISM REPORT |
…
MP TEMUUJIN DISCUSSES LEGAL REFORM IN MONGOLIA | ||||
Mongolian Parliament Passes Long Awaited, Absolutely | ||||
MONGOLIA'S TOP MEDIA OUTLETS AND THEIR AFFILIATIONS | ||||
AMBASSADORSHIPS AND POLITICS IN MONGOLIA | ||||
AMBASSADOR DISCUSSES BILATERAL AGENDA WITH | ||||
MONGOLIAN PRESIDENT TALKS EDUCATION, URANIUM, AND | ||||
FRAUD SUMMARY - ULAANBAATAR | ||||
PRIME MINISTER BAYAR STEPS DOWN, CITING HEALTH | ||||
UNGA Demarche Delivered to Mongolian Government | ||||
Key Mongolian Mining Deal Still On Track | ||||
Mongolia INCSR Draft Submission | ||||
MONGOLIA RESPONSE TO GOLDSTONE REPORT DEMARCHE | ||||
DEMOCRACY, TRANSPARENCY AND MONEY LAUNDERING | ||||
SELECTION OF NEW MONGOLIAN FOREIGN MINISTER | ||||
MONGOLIA ON UNGA COUNTRY-SPECIFIC HUMAN RIGHTS | ||||
MONGOLIA PROPOSES SUPPLEMENTAL AFGHAN DEPLOYMENT | ||||
DOMESTIC AND DIPLOMATIC CLIMATE CHANGE INITIATIVES | ||||
GOM: INNER MONGOLIAN "VOLUNTARILY" RETURNED TO | ||||
MONGOLIA-DPRK ECONOMIC DISCUSSIONS CONTINUE; GOM | ||||
Visa Referral Validation Study Finds Low Overstay Rate | ||||
2010 Mongolia Investment Climate Statement | ||||
2010 Mongolia Investment Climate Statement | ||||
2010 Mongolia Investment Climate Statement | ||||
2010 Mongolia Investment Climate Statement, Part 1 of 3 | ||||
2010 Mongolia Investment Climate Statement, Part 2 of 3 | ||||
2010 Mongolia Investment Climate Statement, Part 3 of 3 | ||||
Consular Outreach Initiative in Mongolia Pays Off, | ||||
Mongolia's Failed Uranium Mining Policy | ||||
PRESIDENT ELBEGDORJ DISCUSSES PRIORITIES FOR HIS | ||||
ISAF CONTRIBUTIONS FOR ANSF TRAINERS | ||||
PARTISAN FUNDRAISING NETWORKS | ||||
AERO MONGOLIA: UNION BUSTING, STATE COMPLICITY | ||||
IRGC DEMARCHE DELIVERED | ||||
Competition for MPRP Chairmanship Intensifies; Coalition at |
PART 2 - Accessing Mongolia's growth story
November 2014 (HUBBIS) In the second part of this two-part documentary, expert commentators on Mongolia discuss specific areas of opportunity for investing in Mongolia, and what the future holds for tapping the country's potential.
INTERVIEW QUESTIONS (click on any question to jump directly to that answer)
1. Capturing capital market potential (15:35)
2. Accessing Mongolian property (3.47)
3. Understanding Mongolia's politics (2:25)
4. A growth story (8:50)
Understanding the Mongolian investment opportunity
August 2014 (HUBBIS) Ochirbat Chuluunbat of Mongolia's Ministry of Economic Development discusses the prospects and some of the specific opportunities for investing in Mongolia.
INTERVIEW QUESTIONS (click on any question to jump directly to that answer)
1. Why does investing in Mongolia represent an interesting opportunity? (0:47)
2. What are the current pressures Mongolia is facing? (2:37)
3. In terms of natural resources, what are these resources and where are they? (2:17)
4. Is investing in Mongolia solely focused on natural resources? Or are there other opportunities? (1:34)
5. How have the regulations surrounding investment in Mongolia changed? (1:16)
6. What types of investors do you want to attract to Mongolia? (0:22)
An inside look at Mongolia's wealth journey
August 2014 (HUBBIS) Ochirbat Chuluunbat of Mongolia's Ministry of Economic Development explains the growth in wealth in Mongolia, and shares his outlook for the country.
INTERVIEW QUESTIONS (click on any question to jump directly to that answer)
1. How would you describe Mongolian people? (0:18)
2. There has obviously been an increase in wealth in Mongolia. How do you think Mongolians will spend and invest that wealth? (1:09)
3. Some observers have compared the journey Mongolia has taken with what has happened in Qatar and other Middle Eastern countries. Do you agree? (0:54)
4. The capital market in Mongolia is still currently quite small. Are there any plans in place for the government to broaden this market? (0:50)
5. Is the government looking at the idea of privatisation? (0:52)
6. What are some of the developments you expect to see in Mongolia in 20 years' time? (0:54)
BLP: Mongolia Investor Update
by Marius Toime
November 20 (Berwin Leighton Paisner) What's the deel? 5 of the latest developments in natural resources and infrastructure
The proposed rule on the "double deel " – where an individual holds two or more political positions leading to a potential conflict of interest – has led to vigorous debate in Mongolia. In April 2014, the "double deel" bill threatened to throw the Mongolian Parliament ("Parliament") into disarray with 14 ministers – including the Prime Minister – holding dual positions. While the bill failed to pass into law, the Prime Minister Mr. Norov Altankhuyag was in any event removed from his post on 5 November 2014 by a Parliamentary vote of no confidence.
Mongolia's volatile political environment is likely to keep many investors on the sidelines for the time being, in spite of enormous resources potential. Foreign direct investment (FDI) inflows to Mongolia, which have enjoyed phenomenal growth over the last 15 years, dropped 64% in the period from January to May 2014 (year-on-year).
In an attempt to arrest declining FDI, Parliament has accelerated reform in 5 areas that are relevant to investors, as we have outlined in this issue of BLP's Mongolia Investor Update. However, it remains to be seen whether the new Prime Minister, once appointed, can move quickly to restore stability and build momentum from the foundation of these recent legislative changes.
1. New petroleum law
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2. Amendments to 2006 Minerals Law and repeal of law prohibiting new exploration licences
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3. Updated list of concession projects
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4. Rail infrastructure – latest developments
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5. Proposed new law on pledges
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Fighting illegal gambling with legal casinos
November 25 (UB Post) Prohibiting gambling in Mongolia has driven Mongolian big shots to become regular guests of U.S. and South Korean casinos. It may even be challenging to find a Mongolian politician who's never been to a casino. People say Mongolians become gamblers when they cross the border. However, the main thing the police should monitor is whose money these high rollers are gambling with.
Last Friday, the Criminal Police Department caught high stakes gamblers red-handed while they were running games at Voyage Hotel, near Ulaanbaatar Railway Station. President of Max Group D.Ganbaatar, Department Head of the Ministry of Mining Ch.Tsogtbaatar, and Former MP D.Zagdjav were playing poker when the police arrived. Many would say that a big commotion is unnecessary, as it doesn't matter what rich people do with their wealth.
The law prohibits gambling but even young people working in markets play card games with stakes. Not to mention middle school children who play poker. Do Mongolian law enforcement agencies have the time to pursue everyone playing card games? Mongolians have been gambling with small and big bets for a long time and it's clear they will continue playing card games in the future. The idiom "The blind leading the blind" would perfectly define people who are now looking down at gamblers.
It's appropriate to not only arrest but also convict those who have gambled with the nation's money in foreign countries. For example, MPs T.Badamjunai, G.Zandanshatar and U.Khurelsukh, and deputy accountant of Mongol Bank Ch.Chimedtseren were implicated in a large sum of cash going missing from the Savings Bank of Mongolia.
Whether it's better to confine and monitor gambling is also something to consider. Arresting and imprisoning gamblers forces them to become more secretive and hidden, rather than deterring them from gambling. There probably isn't anyone who can state the exact number of places to gamble in the city. It's clear that as long as there's a desire for gambling, games will be operated in hiding somewhere. Besides escaping taxation, these places will keep law enforcement officials ignorant of what happens inside. It's said that the more something is hidden, the more danger it brings.
Most Mongolians put gambling in the same category as drugs, crime, and money laundering. Many countries across the world are earning massive amounts of money from casinos. Drug addicts, prostitutes and alcoholics aren't thought of as going to resort casinos, but elites with millions of USD in their pockets do visit for fun. A casino isn't a brothel, drug den, or a place for sheltering criminals, as many Mongolians may believe, and this fact should be very well known to most Mongolian politicians, who are almost regular guests of U.S. and South Korean casinos.
Gamblers "gift" six billion USD to Singapore every year and South Korea makes two billion USD a year from their casinos. Las Vegas is said to generate revenue of 200 billion USD annually. These statistics may not be surprising but it would be a huge mistake to believe that there isn't a single gambling venue in Mongolia.
There's a saying that sophisticated legislation will lead to more sophisticated theft.
Five years ago, Former MP D.Zagdjav and his followers initiated a law to open limited liability casinos, but it was unsuccessful. Now, issues about establishing casinos are being raised again in free economic zones. Mongolians may have reasons to fear casinos, but if they are set up with proper regulations, a legal environment, and controlled communication from the start, it could positively affect our economy directly dependent on foreign investment. If a Mongolian casino is opened, tourism and employment will increase and make it possible to shift the flow of millions of USD heading to foreign casinos back into Mongolia.
Mongolia has quite a few maniacs who play and gamble as much as big time foreign players. Even if we can't bring foreign players, at least we shouldn't lose domestic high rollers to foreign casinos and receive tax from their recreation. Providing them with an appropriate legal environment will expose illegal gambling operations, which the police haven't found. They will start to pay taxes accordingly to the law, and it would become possible to monitor whose money people are gambling with. The police will also have no reason to go through the trouble of inspecting every room in a hotel just because they received a report that someone's gambling.
Most importantly, specific legal guidelines should be initially set up and supervision should be provided so that casinos don't become a den for some sort of criminal organization, mafia, money laundering, or gamblers who play with state money.
At least the fellows caught playing at Voyage Hotel would be able to play without shame or embarrassment, while paying taxes to play and have fun with their money.
If Mongolia wants to attract funds to free economic zones, then build casinos there. The more time police spend conducting arrests and investigations, the higher the chances of free economic zones turning into dens for criminals and drug addicts becomes. Why shouldn't Mongolia create its own Las Vegas?
Source: www.news.mn/content/196398.shtml
Dutch firm VenturesOne becomes minority shareholder in Ard Holdings
November 10 -- Ard Financial Group (Ard Holdings) is pleased to announce an agreement to acquire 22.3 percent of shares of Ard Insurance from VenturesOne, a pan-Eurasian diversified investment holding company, in a share swap deal. As a result of this transaction Ard Holdings will raise its ownership in Ard Insurance to 55.5 percent and VenturesOne will become a minority shareholder in Ard Holdings.
"We are very happy with the support from our shareholders for this deal, which comes at a very difficult time for Mongolia. It is a stamp of approval on the strategic direction Ard has undertaken and we are very confident that Ard Insurance will reinforce its leadership position in the market as a member of Ard Holdings and add significant value to the Group", said Mr. Ganhuyag Ch. Hutagt, CEO of Ard Holdings. "We are excited to work with VenturesOne, our new partner, to unleash the full potential of this strategic collaboration", he added.
Mr. Anthony Hobrow, non-executive director of VenturesOne said, "We recently celebrated Ard Insurance's 20th anniversary and ten years since we invested in the Company and Mongolia. We are strong supporters of development of the financial services industry in Mongolia and believe Ard Financial Group can and will achieve a leadership position in the near future. We are very pleased to be part of this enterprise".
VenturesOne builds successful and enduring companies with the focus on long term value creation. VenturesOne companies have strong operational independence, are entrepreneurial and have quality management teams. VenturesOne looks for differential advantages over competition, unique selling points and a strategy that will beat the market. For more information see venturesone.com.
Ard Insurance is Mongolia's leading general insurance company. It became the country's first private insurance company in 1994. For more information see: arddaatgal.mn
Ard Financial Group is a financial holding company with an objective of maximizing the value and return on investment for its shareholders, while offering a unique opportunity to take part in the Mongolian financial services industry and stock markets. The investment portfolio of Ard Holdings includes the country's leading companies such as Ard Insurance, Ard Credit, Monet Capital, Ard Assets, TenGer Financial Group, and XacBank. The Company is also invested in the Institute of Engineering and Technology, TenGer Systems, and Wild Digital Agency through its investment fund. Ard's major shareholders include prominent businesses and entrepreneurs. For more information visit ardholdings.com
Ard Holdings appoints Tselmuun Nyamtaishir as director
Ulaanbaatar, Mongolia, 5 November, 2014 -- Ard Financial Group (Ard)'s Board of Directors resolved to appoint Ms. Tselmuun Nyamtaishir to the Board of Directors, at the request of Mongolyn Alt MAK Corporation (MAK), a minority shareholder of Ard, at its regular meeting held on 31st of October, 2014. Ard is pleased with the fact that MAK, one of the largest Mongolian businesses, will take an active participation in the Company's governance and strategic direction setting.
Ms. Tselmuun majored in finance and started her career at Trade and Development Bank of Mongolia. Currently, she serves as Vice President of MAK. Ms. Tselmuun accumulated rich and unique experience in mining and financial services sectors.
Ard's Board and management are confident that this decision will further strengthen corporate governance of the Company, and Ms. Tselmuun will help accelerate development of Ard Holdings with her strategic involvement in the Board.
On another note, Ms. Uranbileg Enkhtuvshin, investment analyst at Ard's subsidiary, Monet Capital, was appointed as secretary of the Board of Directors of Ard Holdngs. Ms. Uranbileg recently graduated from Drake University, Iowa, USA with bachelor's degree in actuarial sciences and finance.
Mongolian insurance sector set to consolidate with higher capital requirements
November 26 (Oxford Business Group) The insurance sector in Mongolia is heading for consolidation with higher capital requirements likely to squeeze out smaller operators in a crowded market. However larger firms can look forward to solid growth prospects as penetration rates remain low and product awareness is on the rise.
The expected narrowing of the number of insurers − most likely through a series of mergers or buyouts − is set to benefit the remaining firms. At the same time, for well-capitalised local insurers there may be opportunities to partner with multinational operators.
Expansion from a low base
Insurance is slated as one of the key segments for growth in Mongolia's financial services industry. Insurers are being lured by the scope for expansion, given the country's rapid transformation in the past 20 years and the economic spin-offs from a growing mining industry; as well as the fact it is an open market – a rarity in Asia.
According to the World Bank, the Mongolian insurance industry registered a CAGR of 26.7% during the review period (2008−2012). At the same time, the introduction of compulsory motor insurance two years ago will result in a 30% expansion in the size of the motor insurance category, according to a report by business consultancy Timetric.
Despite the positive outlook, penetration rates remain extremely low – at around 0.54% –while growth in many non-compulsory segments has been slow. The sector is small in terms of its contribution to the economy, and is a relatively modest component of the broader financial industry, representing 5% of GDP, with the insurance sector's input being 1% of the sector as a whole, B. Nyambaa, head of the debt management department at the Ministry of Finance, said in April.
Life and health packages are starting to gain some market acceptance, though for the latter, the tradition of the state providing for citizens' medical needs has meant expansion is coming from a very low base. As the number of privately operated health facilities grows, however, so may the opportunities for health insurance offerings.
Groundwork needs to be laid to raise awareness and shape policies to appeal to local clients according to National Life's G. Mongolkhuu, CEO of the only life insurance company operating in Mongolia. "Pensions and investment/savings products are a real area of opportunity for the Mongolian insurance sector," G. Mongolkhuu told OBG. "However, companies need to develop products that are specifically designed with the local market in mind; simply copying and pasting from more developed markets will not work."
The industry also has to tackle other issues such as shortage of skills and lack of data on insurance policies or the uptake of products. "The insurance sector needs to focus on improving its risk management techniques and the actuarial skills of its human resources," Tenger Insurance CEO A. Batzorig told OBG. Other sector players have called for a dedicated institute, which would analyse statistics and supply information to the insurance sector.
Policy of growth
The fledgling market boasts 17 insurance firms – compared to just 13 banks – a situation that has kept profit margins tight. Of the 17 firms, all but one offer a range of policy options across the product spectrum.
According to the sector's governing agency, the Financial Regulatory Committee (FRC), Mongolia's insurers posted combined profits of MNT2bn-3bn ($1.07m-$1.6m) in 2013, while paying out MNT6bn ($3.2m) to policy holders. The sector had gross revenues of MNT93bn ($49.7m) last year, a figure that should increase as product acceptance grows.
However, the constricted nature of the sector is limiting new players from entering the market, according to D. Bolormaa, the CEO of Bodi Daatgal – the second largest insurer in terms of premiums – with many of the smaller companies already struggling to keep afloat. This is leading to price-cutting, which is weakening the sector as a whole, she told OBG.
"The insurance sector is too crowded, and smaller players are, as a result, charging irresponsibly low rates in an effort to compete," said D. Bolormaa. "This is dangerous for the system as whole, as they do not understand the risks involved and may not be able to meet all of their commitments."
This may, however, drive a period of consolidation next year, led by the FRC, Bolormaa said, referring to the watchdog's move to increase the minimum capital requirements for companies.
Tightening market conditions brought on by a slowdown in the economy could also trigger a consolidation. Though the sector is forecast to expand this year and into 2015, a cooling of the domestic economy may be a drag on demand for insurance products. While GDP growth stood at 10% this summer, it remains well behind the government's forecast of 14.7% for the year, and continuing weakness in commodity prices and reduced prospects for China, one of Mongolia's main markets, could see the growth rate easing.
International doors opening
Despite the overcrowded environment, international insurers are looking to get a foothold in the nascent market, which does not have any restrictions on foreign investment.
The French multinational insurer, AXA, announced in September a partnership deal with Bodi that will see it provide reinsurance services to the Mongolian firm while also providing corporate solutions assistance and research and development support.
If local insurers team up with larger overseas players, it will enable them to provide coverage for the mining and construction sectors, the driving forces of the economy.
The relatively small domestic insurance sector is not yet well enough capitalised to provide adequate coverage for Mongolia's flagship industries. As a result, many of the foreign firms in these industries have policies carried by international companies, with their premiums paid offshore.
Powdered milk supplying national consumption
November 25 (UB Post) The journalists of Unuudur visited a subsidiary company of the TESO Corporation, Milko, which has topped domestic powdered milk production since last September.
The factory's specialists stress that it is important to examine samples of milk, because powdered milk technology calls for very high quality standards. It was interesting to see the entire production process.
"There are many small, invisible particles of dirt in cow's milk," explained the chief of the factory, M.Erdenesukh. UHT technology, which purifies milk at 90 degrees Celsius, is used in the factory, ensuring that the purified milk does not go bad after 48 or 72 hours.
The first step in preparing dried milk is to regulate the level of oil in milk by applying 20 MPa of pressure. Afterwards, the milk is poured into a cooling tank and condensed. The drying processes are executed in the tank.
Experts say that fresh milk has 11 to 12 percent solids and the condensing equipment is used to evaporate the liquids. When this procedure is repeated three times, the milk is condensed to 48 percent solids.
One factory worker joked, "This condensed milk will be like Russian moloko."
The density of normal milk is typically 1.030 kg per cubic meter and condensed milk has a density of 1.100 kg per cubic meter.
According to the manufacturing process, the condensed milk has to be purified again, a total of three times during dried milk production. Compared to other milks, condensed milk seems very healthy and safe. One of the advantages of the dried milk is that it can be kept for up to two years.
M.Erdenesukh also noted that Milko purifies milk by adding vapor to the milk at the atomic and molecular level, while other milk spray drying factories purify milk in an external process using tubes.
The Milko factory uses spray drying technology to produce powdered milk from liquids popular in Australia, New Zealand and other leading countries in this sector. The chief of the factory said that the quality of their milk is the same as Fonterra milk from New Zealand.
Only 15 people work in the factory and the factory has the capacity to meet the needs of the nation's milk consumption. From start to finish, the production process takes 30 to 40 minutes and over 500 kg of powdered milk is manufactured every hour. Consequently, they have the potential to produce 100 tons of milk and 10 to 11 tons of powdered milk per day.
Erdensukh showed Unuudur journalists that the factory uses pure cow's milk instead of using chemical substances and any mixtures.
Unfortunately, the factory cannot operate year-round because they do not have raw materials in winter, since the supply of cow's milk dries up when cold weather comes.
To increase raw materials, Milko built six cooling tanks in rural areas last year. But the factory has planned and prepared for producing coffee creamer in order to run operations in winter.
Source: Unuudur, www.mongolnews.mn/1du8
Mongolia to introduce performance-based air navigation with ICAO
Ulaanbaatar, November 26 (MONTSAME) The Civil Aviation Authority of Mongolia (CAA) will cooperate with the International Civil Aviation Organization (ICAO) in introducing the performance-based navigation (PBN) in Mongolia and in regulation of air navigation.
A memorandum on the technical assistance cooperation was signed Wednesday by authority of the ICAO; and T.Lhagvasuren, an acting head of the CAA, who is participating in the 51st Conference of Directors General of Civil Aviation continuing in Hong Kong, China.
In accordance with the document, the CAA and ICAO will collaborate in receiving professional advice, training navigation experts, holding training for flight administrators, flight rule makers and air navigation services. They also will cooperate in approving PBN flight rules.
Mogi: conference was attended by DPRK delegates
Int'l conference held in Mongolia on freeing NE Asia from nuclear threat
Ulaanbaatar, November 26 (MONTSAME) An international conference entitled "Freeing Northeast Asia from nuclear threat" was held Wednesday in Ulaanbaatar under auspices of the Mongolia's Ministry of External Relations and Economic Cooperation.
It was co-organized by the regulatory center for Northeast Asian region of the Global Partnership for the Prevention of Armed Conflict (GPPAC) and the "Tsenkher suld" NGO--the Ulaanbaatar-based regulatory center of the organization with participation of representatives of the GPPAC's centers in Ulaanbaatar, Tokyo, Beijing, Kyoto, Pyongyang, Seoul, Vladivostok, Hong Kong and Taipei cities; scholars, experts and peace activists. It also brought together some members of parliament and the government; state and social figures, foreign diplomats and delegates of international organizations.
The conference's main purpose is to exchange views and discuss issues of challenges to the nuclear security field, a present situation and prospects of countries' ties and cooperation in nuclear security, needs and chances to establish a nuclear weapon-free area in Northeast Asia, a role of Mongolia in this matter, and on enhancing the international cooperation in ensuring the security of nuclear energy.
The issue of prevention of nuclear weapons is the key priority of the GPPAC's function, and it considers an importance of learning experience of the Mongolia's nuclear weapon-free status for Northeast region. In addition, considering the Mongolia's experience will give an opportunity to obtain other methods for preventing armed conflicts.
Mongolia celebrates Independence Day
November 26 (news.mn) Mongolia marks the 90th anniversary of the day that Mongolia declared itself an independent country with the adoption of its first constitution.
On the occasion of this historic event, Speaker of the State Great Khural Z.Enkhbold delivered greetings to all Mongolians. The Speaker will pay respect to the Great Chinggis Khaan monument at 11:40 a.m. today.
The Mongolian People's Party (MPP) - the oldest political party in Mongolia, and the MPP caucus in parliament will also pay respect to the statue of Sukhbaatar and lay a wreath on the occasion of the historic 90th anniversary of Independence Day and the adoption of the first constitution. The MPP traditionally celebrates this day annually.
Following the event, the MPP will hold a celebration meeting at Independence Palace today.
Ebola readiness training to be conducted in Chinggis Khaan Airport
November 26 (news.mn) A task force led by Health Minister N.Udval has been assembled, following a decision made at a meeting on Wednesday, to organize training on how to prevent an Ebola outbreak in Mongolia at Buyant-Ukhaa border point on December 3rd.
The meeting was attended by officials of the National Emergency Management Agency (NEMA), Ministry of Health, the General Staff of the Mongolian Armed Forces, General Police Department, Specialized Inspection General Authority, the General Authority for Border Protection, the Customs General Authority of Mongolia, National Research Center for Infectious Diseases, the National Center of Zoonotic Diseases, Defense and Law Enforcement Staff Hospital, the Citizenship and Migration General Authority, Buyant-Ukhaa Customs, the Border Protection Agency, and Border Specialized Inspection Department to discuss implementation of Ebola readiness planning.
UCL Postdoctorate Wins Australian Anthropology Article Prize for Study on Mongolian Musical Sociality
November 19 (University College London) UCL Postdoctorate Dr Rebekah Plueckhahn has won the 2014 Article Prize given by the Australian Anthropology Society (AAS).
Each year, nominations are called for the prize, awarded for the best scholarly article published in an Australian journal. The call is sent out to the editors of the five eligible journals, who are responsible for nominating candidates. The criteria by which the articles are assessed are theoretical sophistication, ethnographic depth, lucid writing and originality.
Rebekah's article entitled 'Fortune, Emotion and Poetics: The Intersubjective Experience of Mongolian Musical Sociality' was published in The Asia Pacific Journal of Anthropology. It explores the social and esoteric imperatives of social singing during the life-cycle event of an Altai Urianghai wedding in western Mongolia. A link to the article can be found at: www.tandfonline.com/doi/abs/10.1080/14442213.2014.887140#preview
Rebekah has joined UCL Anthropology as a team member of the ERC project Emerging Subjects of the New Economy: Tracing Economic Growth in Mongolia.
Scottish Football Assoc. to visit Mongolia in January
November 24 (Adventure Kicks) We are delighted to announce the Scottish Football Association will join us on a trip to Mongolia in January 2015. The visit will feature high level meetings with the Mongolian Football Federation and Mongolian Premier League, as well as attendance at our futsal tournament in the National Stadium. They will also visit some coaching initiatives in Ulan Bator before heading home. We hope this will be the start of a productive and long-lasting relationship between both countries.
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