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Thursday, April 2, 2015
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Mongolia Economic Forum 2015
"Mongolia Economic Forum 2015: Building Credibility" Agenda
April 1 (infomongolia.com) The 5th Mongolia Economic Forum (MEF) starts tomorrow at the Government House in Ulaanbaatar to take place for two days, April 02-03, 2015, where the MEF invites acclaimed leaders to the Annual Forum Meetings with respect to the social and economic pressing issues and organize discussion on development policy and its implementation.
The Mongolia Economic Forum is an independent, non-governmental, public organization committed to improving and creating common concept to accelerate development of Mongolia by organizing discussions between the business and political leaders, civil society and scholars.
This year's event is being organized under Building Credibility and below is the Program ratified on March 27, 2015.
The 2015 Mongolia Economic Forum Program
Day One, Thursday, April 02, 2015
08:00 - 09:00 Registration
09:00 - 09:30 Opening remarks by Chimed SAIKHANBILEG, Prime Minister of Mongolia
Plenary Session:
09:30 - 11:00 Grand hall: Current Macro-Economic Situation in Mongolia
11:00 - 11:30 Coffee break
Breakout Meetings:
11:30 - 13:00 Grand hall: Institutional Governance and Partnership
А Hall: Climate Change and Economic & Social Developments
B hall: Information Ethics and Responsibilities
13:00 - 14:00 Grand hall: Business Lunch: Speech by Mendsaikhan ENKHSAIKHAN, Minister of Mongolia
14:00 - 15:30 Grand hall: State Audit and its Impact on Economy
А hall: Real Estate Market
B hall: Development in Financial Sector
15:30 - 16:00 Coffee break
16:00 - 17:30 Grand Hall: Investment Environment and Measures to Boost
А hall: Credit Rating of Mongolia
B hall: Creating National Corporations
17:30 - 18:00 Grand Hall: Outcome of the Day One
Day Two, Friday, April 03, 2015
08:00 - 09:00 Registration
09:00 - 09:30 Opening remarks: Tsakhia ELBEGDORJ, President of Mongolia
Plenary Session:
09:30 - 11:00 Grand Hall: Mongolia's Vision
11:00 - 11:30 Coffee break
Breakout Meetings:
11:30 - 13:00 Grand hall: Competitiveness and Local Regional Development
A hall: Dispute Resolution Professional Organs (courts and arbitration) and its Business Relationships
B hall: Health Sector Management
13:00 - 14:00 Grand hall: Business Lunch
14:00 - 15:30 Grand hall: Economic Partnership: To Increase Exports through Economic Collaboration
А hall: Legislative Stability and Clarity & Business
B hall: Commercial and Industrial Development of Mongolia
15:30 - 16:00 Coffee break
16:00 - 17:30 Grand hall: Friendly Ulaanbaatar
А hall: Developing the Tourism Industry of Mongolia
B hall: Where Heads Mongolia's Mining Sector?
Plenary Session: 17:30 - 18:00 Grand Hall: Closing remarks by Zandaakhuu ENKHBOLD, Speaker of the State Great Khural (Parliament)
Related:
Economic Forum 2015 Agenda – gogo.mn, April 1
Minister Enkhsaikhan on MEF Speech: Mongolia is at the Edge of a Cliff
April 1 (gogo.mn) Tomorrow, April 2, Mongolian Economic Forum 2015 will have its opening ceremony and is to continue for two days. The Mongolia Economic Forum is to be held at the Government Building and is committed to improving and creating common concept to accelerate development of Mongolia by organizing discussions between the business and political leaders, civil society and scholars. According to the AGENDA of the Economic Forum Minister of State M.Enkhsaikhan is to deliver speech on the Super Cycle: Rich and Poor during the event. We are delivering short interview.
-Which aspects should be discussed more during the Mongolian Economic Forum this year as it is being organized during the period of economic downturn?
-Study and analyze the policy mistakes of the past and direct to the right path.
-What is your stance for this year's forum?
-I will concentrate on how Mongolia lost its chances for the super cycle and how to be prepared for the next super cycle, which is not on the horizon for the next ten years.
-How would you rate current economic situation of Mongolia? Are we at the edge of the cliff or we have already falling down the cliff?
-We are at the edge of the cliff. We are facing the question whether we can get away from the cliff or think of the ways to land safely.
Mongolia Economic Forum to Take Up Issue of Arbitration
April 1 (gogo.mn) Tomorrow, April 2, Mongolian Economic Forum 2015 will have its opening ceremony and is to continue for two days. We have inquired on the position of the Mongolian National Chamber of Commerce and Industry and which issues to be raised to protect and support the businesses in Mongolia from the President of MNCCI B.Lkhagvajav:
-Economic Forum focuses on raising issues and discussing the solutions. It is our advantage that we get together and are able to discuss the issues we are facing. I have been participating in this event every year. Last year I was participating at the panel meeting on Tax Reforms. The year before that I was expressing my stances on how the state subsidies affecting in negative ways to destroy the market by eliminating the competition and supporting the monopolies. This year I will represent the Chamber. We are to touch on the issues with Arbitrage Court. Businesses should make agreements and contracts and those should be protected by the legal entity, which is the arbitrage court. At Civil Court there are over 10 thousand cases discussed annually, whereas there is question whether the judge is competent enough to solve the business cases. Therefore, we are bringing this issue at this forum.
ERD closed +4% Wednesday to C$0.13
Erdene Provides Year-End Financial Results and Project Review
HALIFAX, NOVA SCOTIA--(Marketwired - April 1, 2015) - Erdene Resource Development Corp. (TSX:ERD) ("Erdene" or "Company"), is pleased to provide a review of 2014 and Q1 2015 activities on the Company's principal projects in Mongolia in conjunction with its December 31, 2014 year-end financial results.
Project and Financial Highlights
Altan Nar Gold-Polymetallic Project (100% Erdene) - Initial Mineral Resource Estimate:
· Indicated Resource of 147,000 ounces ("oz") gold equivalent ("AuEq") averaging 2.5 g/t AuEq and Inferred Resource of 102,000 oz AuEq averaging 2.1 g/t AuEq, at a 1.0 g/t AuEq cut-off, within 1.8 million tonnes ("Mt") Indicated and 1.5 Mt Inferred, respectively
· 90% of Mineral Resource within 150 m of surface; open along strike and down dip
· Initial Mineral Resource completed for two targets (Discovery Zone and Union North) with 16 undrilled and scout-drilled target areas along the 5.6 km mineralized trend that have good potential for hosting additional resources
· Expansion drilling and preliminary scoping study planned for 2015 to consider development options including evaluating the concept of producing a high value gold, silver, lead and zinc concentrate(s) sold into neighboring China
Altan Nar Gold-Polymetallic Project - Drilling Highlights:
· Definition drilling at Discovery Zone returned widest and highest grade zone to date with 30 m of 5.1 g/t AuEq including 8 m of 13.6 g/t AuEq
· Drilling at the northern extent of Discovery Zone returned broad zones of low grade mineralization including 96 m of 1.0 g/t AuEq that remains open along strike and at depth
· Drilling at Union North, 1.3 km northwest of Discovery Zone, returned 22 m of 2.9 g/t AuEq and below that 12 m of 5.4 g/t AuEq, within 35 m of surface
Agreement with Tian Poh Resources Ltd ("Tian Poh"):
· Tian Poh was granted a period of exclusivity to exercise an option to acquire an interest in Erdene's Zuun Mod molybdenum-copper project ("Zuun Mod")
· Tian Poh can acquire and retain a 51% interest in Zuun Mod for US$4.8 million in cash and equity in Tian Poh, and by meeting certain work commitments
Teck Resources Limited ("Teck") Alliance:
· Erdene continued to evaluate opportunities through its alliance with Teck, focused on regional exploration for base and precious metal targets in southwest Mongolia
· Erdene initiated an acquisition program under the alliance
Mongolian Government Update:
· Mongolia has made, and continues to focus on, significant legislative improvements for the mining and financing sectors; reduced the gold royalty from 10% to 2.5%; extended the maximum term of an exploration license from 9 to 12 years; and re-opened the mineral license staking system after a 5-year hiatus
Financials:
· General and administrative costs decreased 22% compared to 2013 and a total of 57% compared to 2012
· Erdene secured $2.03 million in funding in 2014 during challenging market conditions
…
TRQ closed +2.56% Wednesday to US$3.20, +2.28% to C$4.04
BBC Asia Business Report - Oyu Tolgoi, Rio Tinto, Sam Walsh & The Mongolian Government
April 1 -- Khan Investment Management Founder & Chairman Travis Hamilton discusses progress at Oyu Tolgoi, Mongolia, with Ali Moore on the BBC's Asia Business Report, Monday 30 March 2015. Agreement to commence the USD 5.4 Billion Oyu Tolgoi Phase II Development (reputed to hold 80% of the mine's value) will provide the fastest path to resurrecting Foreign Direct Investment and concurrently provide clear passage for Rio Tinto to reduce dependence on a collapsing iron ore market.
MSE Trading Report, April 1: Top 20 -0.14% to 13,077.06, Turnover ₮12.75 Million, T-Bills ₮0.96 Million
April 1 (MSE) --
MSE Primary Offer: ₮50.5 Billion 12-Week T-Bills at 3.4% Discount, Yield 15.185%, Closing 4/7
April 1 (MSE) --
1. The issuer's name: Mongolian Ministry of Finance
2. The purpose of the issuance of bond: Fund management of State treasure
3. Offering scope of securities: Offering to the public
4. Type of securities: Government securities
5. Face value: MNT 100,000
6. Discounted price: 96,623.00
7. Total amounts issued: 511,868 Units
8. Securities performance:
Government Securities name | Amount /units/ | Value /billion MNT/ | Maturity /week/ | Form of Interest payment | Interest rate (percent) | Starting date of the order | Closing date of the trading |
ЗГЭБ-Б-12-297 | 505,998 | 50.5 | 12 | Discounted | 15.185% | 2015.04.01 | 2015.04.07 |
9. Rate of interest: interest rate of the Government Securities, which will be issued weekly, will be based on auction results of Central Bank basis State Government Securities weighted average interest rate. If the Central Bank's weekly trading cancelled, the interest rate will be set based on the previous trading of Government Securities weighted average interest rate.
10. Order deadline: The Mongolian Stock Exchange will take orders 6 days and the trading will close on the 6th day at 14.00 PM and information on total orders will be delivered to the securities issuer.
11. Trading period: Total registered orders distribution of MSE trading system will be determined based on the Ministry of Finance votes.
Bank rates at time of sending: TDB (Buy ₮1,975 Sell ₮1,986), Khan (Buy ₮1,978 Sell ₮1,986), Golomt (Buy ₮1,977 Sell ₮1,986), XacBank (Buy ₮1,977 Sell ₮1,987), State Bank (Buy ₮1,978 Sell ₮1,987)
BoM MNT Rates: Wednesday, April 1 Close
| | 4/1 | 3/31 | 3/30 | 3/27 | 3/26 | 3/25 | 3/24 | 3/23 | 3/20 | 3/19 |
| USD | 1,983.05 | 1,984.69 | 1,982.09 | 1,985.14 | 1,989.51 | 1,993.92 | 1,992.63 | 1,986.55 | 1,989.71 | 1,989.92 |
| EUR | 2,135.05 | 2,139.79 | 2,153.54 | 2,145.74 | 2,191.15 | 2,183.84 | 2,182.83 | 2,143.88 | 2,123.02 | 2,129.61 |
| CNY | 319.99 | 320.09 | 319.42 | 319.51 | 320.21 | 320.84 | 321.06 | 319.87 | 321.05 | 321.15 |
| GBP | 2,944.23 | 2,932.97 | 2,935.67 | 2,940.39 | 2,970.04 | 2,970.14 | 2,978.18 | 2,955.59 | 2,932.04 | 2,951.45 |
| RUB | 34.11 | 34.27 | 33.99 | 34.36 | 35.26 | 34.86 | 33.89 | 33.43 | 33.11 | 33.08 |
MNT vs USD, CNY in last 1 year:
FX Reserves Rise 2.6% in February to US$1.36 Billion, Down 37.9% from 2014
April 1 (Bank of Mongolia) The Bank of Mongolia has changed its' policy regarding official foreign exchange reserves reporting. The statistics will be published with an one-month lag /previously published with three-months lag/ on the first business day of the following month. Policy is in effect since July, 2014.
Date | Gross Reserves | Monthly, % | YTD, % | YOY, % |
2015.2 | 1362.5 | 2.61 | -17.42 | -37.94 |
2015.1 | 1327.8 | -19.53 | -19.53 | -45.72 |
2014.12 | 1649.9 | 22.03 | -26.6 | -26.6 |
2014.11 | 1352.1 | -3.29 | -39.85 | -41.46 |
2014.10 | 1398.1 | -9.37 | -37.81 | -41.48 |
2014.9 | 1542.7 | 13.38 | -31.37 | -42.43 |
2014.8 | 1360.7 | 0.8 | -39.5 | -50.1 |
2014.7 | 1349.3 | 2.4 | -40 | -55.2 |
2014.6 | 1317.5 | -17.9 | -41.4 | -57.6 |
2014.5 | 1604.5 | -11.9 | -28.6 | -52.6 |
2014.4 | 1821.7 | -6.2 | -18.9 | -48.1 |
2014.3 | 1943.3 | -11.5 | -13.5 | -48.8 |
2014.2 | 2195.3 | -10.2 | -2.3 | -45.3 |
BoM issues ₮69.4 billion 1-week bills at 13%, total outstanding +5% to ₮370.6 billion
April 1 (Bank of Mongolia) BoM issues 1 week bills worth MNT 69.4 billion at a weighted interest rate of 13.0 percent per annum /For previous auctions click here/
GoM Treasury Auction: ₮20 Billion 12-Week Bills Sold at Discount, Average Yield 15.185%
April 1 (Bank of Mongolia) Auction for 12 weeks maturity Government Treasury bill was announced at face value of 20.0 billion MNT. Face value of 20.0 billion /out of 41.0 billion bid/ Government Treasury bill was sold at discounted price and with weighted average yield of 15.185%.
Mogi: this one didn't make it to the site either
Mongolia Considering Casinos to Diversify Economy From Mining
By Michael Kohn
April 1 (Bloomberg) -- Mongolia's parliament is considering allowing casinos in the country to attract more tourists and reduce the economy's dependence on mining revenue.
Mongolia, which has a population of 3 million in an area about the size of France that's landlocked between China and Russia, had $5.8 billion in exports last year and 83 percent of that was copper, coal and other minerals. The economy is expected to slow this year as disputes over mining projects have reduced foreign investment.
The casino law will be submitted to parliament for review in the spring session scheduled to begin April 6, Margad Banzragch, tourism department head at the Ministry of Environment, Green Development and Tourism, said in an interview Tuesday in the capital, Ulaanbaatar.
"What is most important is how the casinos can help boost the economy," she said. No more than two casinos will be allowed under the law, said Margad, and to prevent gambling from becoming a social problem, Mongolians won't be permitted.
While the law doesn't specify where the casinos would be built, likely locations include Ulaanbaatar and near the new international airport, said Margad. The airport is being built 54 kilometers (34 miles) south of the capital. Other possibilities are Altanbulag on the Russian border or Zamyn-Uud on the Chinese border, she said.
Income Inequality
"The key issue here is what happens to the revenue that the government earns from this casino," Jargalsaikhan Dambadarjaa, a political and economic commentator, said by phone from Ulaanbaatar. "It needs to be used to decrease inequality in the country, for education or social infrastructure."
A one-time license fee of 35 billion tugrik ($17.6 million) would be required of any investor planning to build a casino, said Margad, in addition to taxes that will be determined at a later date.
Another provision would require that the casino make up 15 percent of the complex. Hotel and commercial space will make up the remaining 85 percent, she said. The casinos could create more than 2,000 jobs a supply chain of new business opportunities, said Margad.
Mongolia also plans to adopt a horserace betting law, which is now in draft form, said Margad.
"We'll use the advantage of our location between countries, and our new airport to attract visitors," she said.
(BN)
MTA signs cooperation agreement with Nat'l Data Center
Ulaanbaatar, April 1 (MONTSAME) The General Taxation Office (GTO) will collaborate with the National Data Center (NDC).
A cooperation contract on it was signed Wednesday by B.Ariunsan, head of the GTO; and Z.Enkhbold, director of the NDC. Present at the signing ceremony were A.Enkhbold, a deputy head of the Central Intelligence Agency (CIA); Kh.Bekhbayar, head of the Center of Information Technology; and other officials.
In accordance with the document, sides will cooperate in installing various tax systems in the NDC for taxpayers such as an incentive system of VAT, E-tax payment system and E-mail service.
Joint Inspection Finds UB-Darkhan Highway Falls Below Standard
April 1 (gogo.mn) Joint monitoring at the Ulaanbaatar-Darkhan highway was conducted in order to ensure if A-0401 paved road is meets the regulations, standards of Mongolia.
The monitoring was held during March 23-24 jointly by Ministry of Road and Transportation, Special Inspection Authority, General Police Authority, Ulaanbaatar city Traffic Police, National Center for Road and Transportation.
During the monitoring it was revealed that new road construction does not meet the standards and lacks proper road signs. Moreover the drivers were violating traffic rules by exceeding the speed limit, not using seat belts and using unauthorized enhancements on the vehicles.
The working group is to deliver the results of the monitoring and guidelines to eliminate the violations to respective authorities to ensure the safety standards on the roads.
New bill to let local authorities decide alcohol restrictions
April 1 (gogo.mn) Cabinet discussed the amendments draft to the Law against alcoholism and approved the submission of the draft to the State Great Khural spring session.
The draft states that the selling and servicing with the alcoholic beverage should be under the regulation of the local authorities based on the local specifics, social and economic environment and opinion of the residents.
Current law allows entities to serve alcoholic beverages until 00.00. This in turn increases the possibilities of the illegal activities such as secret selling of the alcoholic beverages by individuals, private networks and acts as the ground for increased drinking and therefore driving the crime rates up that occur on the streets, hotels and at homes.
The draft to be submitted at the spring plenary session provisions the local governors to decide on the working hours of the entities serving alcohol based on the local socio-economic environment and entity credibility.
The draft was initiated by the Ministry of Finance.
ITS Korea to Assist in Introducing Smart Transportation System in Mongolia
April 1 (infomongolia.com) Upon an initiation of "Roads and Transportation Institute" NGO, the "Intelligent transportation system in Mongolia and introducing environmentally friendly transportation" Forum was organized by ITS Korea, Ulaanbaatar Smart Card LLC and JCI Mongolia NGO in Ulaanbaatar on March 31, 2015.
During the Forum recommendations were issued on attention to the further development of smart transportation system in Mongolia, after which, the State Secretary at the Ministry of Roads and Transportation of Mongolia, J.Bat-Erdene and President of ITS Korea Kwon Ki-chil have signed a Memorandum of Understanding on further cooperation development in the sector.
Under the document, parties agreed to organize many events such as introducing new techniques and technology in demand as well as IT system and exchange experiences in the field, training professional and technical staff, hosting seminar and workshop meetings, and organizing exhibitions and fair trade by promoting mutually agreed collaboration.
ITS Korea (Intelligent Transport Society of Korea) was established in 1999 to leverage Korea's advanced ITS technologies to drive new global trend of ITS products and services. As the bridge for private and public sectors and academia, ITS Korea is open to digest the industrial opinion, to propose the policy to promote ITS business, propose R&D and many other activities to boost up the industry.
Concession Agreement Signed for 700MW Baganuur Power Plant with China Nuclear
April 1 (gogo.mn) Baganuur Power Plant Concession Agreement is signed to meet the increasing energy demand in the Central region and ensure the sustainable and reliable unified energy system.
The power plant is to be supplied with coal from the Choir-Nyalga deposit and has the capacity of 700 MW and is set to decrease the imported energy.
Concession agreement was signed today by S.Javkhlanbaatar, Head of the Invest Mongolia Agency and Wang Shouhe, CEO of 22nd Construction of the China Nuclear Energy company. The agreement signing ceremony was attended by D.Erdenebat, Minister of Industry, D.Zorigt, Minister of Energy and representatives from the Embassy of PRC in Mongolia.
Baganuur Power Plant Project held the bids for the concession in 2014 and the 22nd Construction of the China Nuclear Energy company was selected as the executor of the project.
Therefore, Government of Mongolia approved the Investment Agency to sign the agreement with the Baganuur Power LLC registered company in Mongolia. The agreement duration is 25 years.
Concession agreement holder is liable for energy sales and purchases, financing and conducting the contracting of other agreements, conducting environmental studies and construction of the project.
Energy resource for ensuring uninterrupted supply to Dornogovi, Dundgovi and Khentii aimags will be solved by constructing the Baganuur Power Plant. Moreover, the resources will support each other for safe, stable, reliable and sustainable energy supply.
According to the Ministry of the Industry the total investment of the project is estimated at USD 8.9-9.9 million (Mogi: huh? Tripled checked this, but seems a bit low no?).
Mogi: more propaganda or, at best, ignorance of reality
Erdenet Still Largest Taxpayer Despite Processing Less Ore Than OT
Ulaanbaatar, April 1 (MONTSAME) Mongolia produced 254 thousand tons of copper in 2014, it accounted for 25.8%of total copper production in Asia and 1.36% worldwide.
The copper productions in Mongolia are being provided by the "Erdenet" Mining Corporation and the Oyu Tolgoi LLC. Regarding a social-economic importance of the both companies, the OT LLC processed 33.9 million tons of ore, the "Erdenet" MC--26 million tons. Furthermore, the OT LLC processed 692.3 thousand tons of copper concentrate, whereas the "Erdenet" MC- -516.8 thousand tons. The copper content of ore extracted from OT was 25.3%, from "Erdenet" MC--23%.
According to the 2014 report, the OT LLC processed 175.6 thousand tons of copper, while the "Erdenet" MC-- 137.5 thousand tons. In terms of revenue for the state budget, the OT LLC placed MNT 462.4 billion, the "Erdenet" MC--about MNT 450 billion.
Despite these figures, "Erdenet" MC has been the national tax payment leader for 12 consecutive years, the OT LLC has been listed in first five top enterprises since 2010. It means that, although OT LLC processed last year larger amount of gold, silver, molybdenum and copper ore than "Erdenet" MC did, the latter is still the biggest taxpayer in Mongolia.
Some facts show that the OT mineral deposit is seven-time larger than the "Erdenet" MC's deposit, and 45-time bigger than the "Boroo" deposit, but these deposits are not giving benefits to the Mongolia's economy as the "Erdenet" MC.
Some 51% of the authorized capital of the "Erdenet" MC is owned by the government of Mongolia, the rest--by Russia's full state-run "Rostekhnologii" Corporation.
Ferrostaal breaks ground at $115m 52MW Sainshand Wind Park
April 1 (news.mn) A groundbreaking ceremony for the Sainshand Wind Park project will be held today.
The wind park will consist of 27 fans with a combined capacity of 52 megawatts.
The construction work is expected to be complete by 2016 and a total of 115 million USD is required to complete it.
Sainshand has been selected as the location for the wind farm for its available infrastructure and the ease of connecting the facility to the central electricity grid. The wind park is expected to supply enough renewable energy equal to provide electricity to 100,000 households and reduce carbon gas emissions by replacing the use of 50,000 tons of coal to generate power.
US developer touts new take-off in Mongolia, sets up S'pore office
By Leu Siew Ying
March 31 (The Edge Singapore) If American developer Lee Cashell has been absent from the Singapore scene after launching his Olympic Residence project, it is because he has been too busy making money in Ulaanbaatar, the Mongolian capital. Recently, the fast-talking affable former fund manager has resurfaced with new properties to launch and plans to take his company to market.
Seared in a café by the Singapore River, Cashell, CEO of Asia Pacific Investment Partners (APIP), says he "kind of forgot" about Singapore during a commodities-fuelled boom in Mongolia that kicked off about the time he launched Olympic Residence in 2010 until last year, when it went bust. "Mongolia boomed so much I didn't need to sell real estate outside. I was just sitting in my office," the balding 40-something says. "No need to worry [Where I have gone]. I am still there for sure." During that period of heady activities, which propelled Mongolia's economic growth rate in 2011 to 17.5%, the highest in the world, the only overseas markets that he was looking at were London and Hong Kong. "And I say, oh God, Singapore is down there. It is such a good market and the overseas property market is booming and I don't have anyone here and I keep saying we must set up and office in Singapore. And now we have.
Mongolia has just emerged from what Cashell calls a "one-time bad year" in 2014, when the commodities slump, coupled with politics that froze plans to develop the massive Oyu Tolgoi copper mine, drove the economic growth rate down to 7%. Norovyn Altankhuyag was ousted as prime minister in November and replaced by Saikhanbileg Chimed, who has moved fast to resolve the dispute with Rio Tinto Group, the 50.1% – owner of the mine and the country's largest foreign investor. "I feel we are at the beginning of another take-off," says Cashell, who first went to Mongolia 13 years ago when he was working for his then employer, Nomura Holdings' private equity arm JAFCO. " I have to start building again. It takes us one year to build to complete a project with 30 units," he says.
Attracted to Mongolia
Cashell, who was based in Hong Kong for JAFCO, was responsible for China, which he found a difficult market to operate in. He liked what he saw in Mongolia and, with US$30,000 in his back pocket, left for its open spaces and started building housing for expatriates. He was 10 years ahead of the crowd that swarmed into Mongolia after 2008 global financial crisis, and proud of it. He was drawn by the resource-rich and cash-starved country's investor-friendly environment. Mongolia, a democracy, has low tax rates, no capital gains tax and no currency control. "But nobody knew about Mongolia. It was kind of obscure. The one bad thing about Mongolia is that it does not know how to promote itself," Cashell says.
He started small but made money for the people he sold his properties to. Among them is a Dutch couple who later became a business partner of sorts. "My first piece of land," he says, bursting out in laughs as he recalls how he started. "Let's say the first big development we did, the land was bought for us by a Dutch family, who had made a lot of money from us, and I asked them to buy land for us."
Cashell says he gave the couple six apartments in his project to pay for the land. He also did not have money to hire professionals but convinced a South Korean architect to accept an apartment in payment for his service. "They received 300% returns from their apartments," he says.
Over time, Cashell made enough profits to amass a land bank that will last him the next 15 years. Since 2010 when he launched Olympic Residence in Singapore, he has grown much bigger and better at what he does, he says. He is now considering tapping the equity market to avail of opportunities that Mongolia presents, including expanding his cement factory and growing his credit business. As Mongolia's fledgling banking industry does not have the capacity to lend him more than US$8 million ($10.9 million) for his projects, he finds himself resorting to pre-sales.
"When I do pre-sales at an early stage, I am missing potential profits. Yet, I am still in that phase where I have to pre-sale a large proportion of my building because banks in Mongolia can't give me big loans. That is the difficulty of being a property developer in a frontier market with no access to capital markets," he says. It is also impossible to borrow offshore. "Let's say I have been having hopeful discussions with banks over the past 13 years and the answer 100% of the time is 'no'," he says.
Looking to Singapore
Now, the company's shareholders are considering floating the business and they are looking at Singapore because they have sold properties here and are familiar with the market. Cashell's link with Singapore dates back to his private-equity days when he had to regularly report at JAFCO's office in the office tower above the riverside café, where he is sitting drinking his latte. He says, "There is a growing relationship between Mongolia and Singapore. There are number of frontier developers listed here. This is a place that understands properties very well. Singapore is surrounded by frontier markets and emerging markets. It is very familiar with growth patterns in such markets and the way things evolve. It's one of the places we are looking at."
If he had his wish, he would want to put $40 million into the cement factory to expand its capacity to 500,000 or one million tonnes a year. "I would put around $100 million in debt and equity into my lending company, $100 million into property and buy $100 million worth of distressed properties that is already yielding 14% to 15%," he says. He thinks $150 million would be a good start, however, if he brought the company to market. Going by his track record, he is confident there will be a following for his stock.
Back in 2009, when Mongolia was just starting to become cool, Cashell dropped into town and invited a group of Australian and British hedge fund managers to dinner. He asked them to allow him to make them a presentation on Mongolia, and soon walked away from the table with US$3.8 million from 10 investors. Those investors later introduced him to other investors.
"Mongolia takes a lot of convincing. You have to find the right people. It's not easy to sell Mongolia but it can be done," he says. The way to do it is to find the people who would know about Mongolia, and there are typically hedge fund managers who can be found in London, Singapore and Hong Kong. In the end, Cashell did not get any money from hedge funds, just from the managers. He says he tells them the story of Perth's and San Francisco's mining boom but does not get to finish his tale because his audience already knows that the millionaires spawned in those cities made their money from real estate. "They say, 'Stop, I am going to give you my money," says Cashell.
Then, there is the experience of Yoma Strategic Holdings, a property developer in Myanmar that is remarking itself as a conglomerate with interests in auto distribution, agriculture and tourism. "Some of the very smart hedge fund managers and stockbrokers that invested in Yoma before it went public are also shareholders of my company," says Cashell. Now, with a presence in Singapore, he is going after more of that smart money.
Mogi: the kid was young and was put on the spot by his boss, but looks to have did his best, and actually in end did well to Here's an article about it, posted in Wednesday's newswire.
AIC 2015 Keynote: When will frontier markets prove rewarding to investors?
March 25 (Credit Suisse) Representing four of Asia's key frontier markets, Bangladesh, Cambodia, Mongolia and Myanmar, our panelists assess the economic growth prospects of their markets, the most attractive areas for investment, and the potential pitfalls of doing business there. Sharing their unique insights into the business climate and investment trends in these emerging economies, they aim to bring us one step closer to understanding how soon the new frontier markets in Asia will reach their full potential, and how compelling they will be.
Speaker meets with a local tech developer
April 1 (news.mn) Yesterday, Speaker of Parliament Z.Enkhbold received representatives of Mongolia's technology development sector.
D.Gan-Od, Director of Duinkhen Terguun, an information technology company, has carried out research to open an electronic motherboard factory and he spoke about the successful trials the company has carried out so far.
In 2012, the company worked on systems controlling security cameras. Eighty percent of Duinkhen Terguun's employees are engineers and technology specialists.
In order to expand the company he has carried out research for the last two years in order to produce copper motherboards in Mongolia, utilizing raw materials of domestic origin, and to introduce domestically produced high tech electrical products to Mongolia.
In order to open his factory, he is cooperating with Japanese companies.
The Speaker of Parliament received answers to his questions regarding the production process and discussed the development of high tech production and the possibility of its further development in Mongolia.
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Speaker meets Businesspeople – Montsame, April 1
Speaker receives local developers of wireless phone chargers
Ulaanbaatar, April 1 (MONTSAME) The Chairman of the State Great Khural Z.Enkhbold received on March 31 the managing engineers of a Mongolian "Ametros technology" company, engaged in technological design and innovation.
A director of the company D.Tulgabaatar talked about their activities. "We started operations in 2013, and has successfully released our first product–wireless charger for cellphone. Our purpose is to apply designing, development and production of the high tech our own country," he said and presented designs of the two new products.
After this the Speaker discussed with them a competitiveness of the Mongolian engineers and the company's innovative products.
Gobi herder making candy from camel milk
April 1 (news.mn) A herder from Tuhum bag in Nomgon soum of Umnugobi aimag, T.Altantuya, has begun to produce candy from camel milk.
T.Altantuya uses milk from goats and camels to produce different kinds of dairy products. She says she is always looking for new ideas and experimenting to improve the quality, form, and taste of her products. She started making milk candy year.
She says she can produce 1 kg of candy from 2 liters of milk. Her candy produced using pure camel milk, without any chemical additives, was selected as the best product of the Gobi Festival in Umnugobi aimag.
T.Altantuya is planning to expand production to make a variety of candies.
Chinese vice president meets Mongolian foreign minister
BEIJING, April 1 (Xinhua) -- Chinese Vice President Li Yuanchao met with Mongolian Foreign Minister Lundeg Purevsuren on Wednesday at the Great Hall of the People in Beijing.
Li said the Chinese government attaches great importance to ties with Mongolia and regards the China-Mongolia relationship as an important part of China's neighborhood diplomacy.
He expressed hope that the two sides will work together to implement the consensus reached between Chinese President Xi Jinping and Mongolian President Tsakhiagiin Elbegdorj, maintain high-level interactions, enhance trust, and boost reciprocal cooperation to advance their partnership in a sustained way.
Purevsuren said that developing ties with China is foremost in Mongolia's foreign policy priorities and that Mongolia will link its own policy with the Silk Road Economic Belt and the 21st-Century Maritime Silk Road Initiatives proposed by the Chinese side.
Purevsuren is paying an official visit to China from Tuesday to Friday at the invitation of his Chinese counterpart Wang Yi.
Turkish Foreign Minister Paying Official Visit to Mongolia April 11-13
April 1 (infomongolia.com) At the invitation of the Minister for Foreign Affairs of Mongolia, L.Purevsuren, the Minister for Foreign Affairs of the Republic of Turkey, Mr. Mevlut Cavusoglu is paying an official visit to Mongolia on April 11-13, 2015.
This is the first-ever visit to be conducted at Turkish Foreign Minister-level and due to upcoming visit, the Embassy of Turkey in Ulaanbaatar will be hosting a press conference in its venue on April 07, 2015.
Diplomatic relations between the Republic of Turkey and Mongolia were established on June 24, 1969. The Embassy of Turkey in Ulaanbaatar and the Embassy of Mongolia in Ankara were opened respectively in 1996 and 1997, and currently headed by Ambassador of Turkey to Mongolia Mr. Murat Karagoz and Ambassador of Mongolia to Turkey, Mr. Badamdorj BATKHISHIG.
Minister Meets French Ambassador on Health, Sports Ties
Ulaanbaatar, April 1 (MONTSAME) The Minister of Health and Sports G.Shiilegdamba received Tuesday the Ambassador of the French Republic to Mongolia Mr Yves Delaunay, to discuss with him the two countries' cooperation in health and sports. The Ambassador told the Minister that Mongolia's standardized medical department, the emergency department at the National Center for Traumatology and Physical Therapy, which has been redecorated on the financing of easy-term loan provided by the French government with value of five million EUR, will be commissioned in June.
He also sought the Ministry's cooperation on the organization of the forum for medical professionals of Mongolia and France to be held on June 5 in Ulaanbaatar, in frames of the 50th anniversary of the diplomatic relations between the two countries. The Ambassador noted that France is well-known for its highly-developed conventional medicine. In that regard, trainings including the two countries' physicians can be held in the major clinics of Mongolia, he suggested. Mr Delaunay informed that the Embassy is collaborating with the Mongolian Judo Association to organize a friendly match between the national teams in next July, in a scope of the diplomatic relations' anniversary. He noted that promoting sports is one of the important parts of France's foreign policy, and that the country have always been making efforts to alleviate the visa issuing conditions for athletes.
The Minister thanked Mr Delaunay for expressing his perspectives on the health and sports cooperation, and highlighted that the friendly bilateral relations has put some understanding in the cooperation in history, culture, arts, sports and health spheres. He expressed his interest to set up a working group from the Ministry for the organization of the Doctors' Forum, and to hold the opening ceremony of the new emergency department.
The Ambassador Yves Delaunay received in Paris last September the French physicians and officials in medical field who have experience in cooperating Mongolia health spheres, to discuss with them about how to improve the cooperation, the obstacles and their solutions.
Children's Hospital Los Angeles and Mongolia's Flagship Pediatric Medical Facility Celebrate 20 Years of Collaboration
CHLA and National Center for Maternal and Child Health to expand clinical care consultation, research and physician education programs via telemedicine
LOS ANGELES--(BUSINESS WIRE)--Leaders from Children's Hospital Los Angeles (CHLA) and the National Center for Maternal and Child Health (NCMCH), Mongolia's flagship pediatric medical facility, marked 20 years of institutional collaboration Tuesday with a special "telemedicine" program and celebration honoring past accomplishments and outlining future efforts to better the health care of Mongolian children.
The physicians gathered at their respective institutions in Los Angeles and Ulaanbaatar, Mongolia's capital, and communicated via telemedicine conference. Tuesday's event began at 4:30 pm PDT and at 8:30 am Mongolia time. "This partnership has helped raise the standard of care for children in Mongolia," says Richard MacKenzie, MD, medical director of the Center for Global Health at Children's Hospital Los Angeles, and deputy director of the hospital's Division of Adolescent Medicine. "This event commemorates two decades of working together to achieve this goal and establishes a new collaborative agreement to build on efforts in education, telemedicine, research and physician exchange programs."
"CHLA faculty and residents have provided important assistance to NCMCH and its affiliated medical school in the development of their pediatric clinical programs and training, as well as consulting on many patients over the past 20 years," says Stuart E. Siegel, MD, director of the Center for Global Health at CHLA. "It has been a dream of ours to provide this service from CHLA and now the NCMCH has the tele health technology capacity that will allow us to contribute and pass on our program development and care more efficiently."
Since the collaboration began in 1995, instigated by academician Arnold Springer, PhD, a retired Cal State Long Beach professor and an authority on Russia, the health care of Mongolian children has benefited from the care and training by CHLA physicians traveling to NCMCH at their own expense to treat cases in children's cancer, cardiology, infectious diseases, intensive care, pulmonology, gastroenterology, pediatric general and orthopedic surgery, endocrinology, adolescent medicine and rheumatology.
Enkhtur Shonkhuuz, MD, MPM, PhD, clinical professor of Pediatrics and Director-General of the NCMCH, says that since the first visit by the CHLA team, Мongolia has made dramatic progress in improving child health. He reported that the under-age-five mortality rate per 1,000 live births was 62.4 in 1995 and declined to 18.4 in 2014. Infant mortality rate per 1,000 live births was 44.6 in 1995 and declined to 15.3 in 2014. "Of course, this progress is not only due to the collaboration, but we can say there has been a big contribution by the CHLA team in capacity building of NCMCH, which is a key player in reducing child mortality in the country," he says.
The relationship also has nurtured a research component. In 2014, scientists from Los Angeles and Ulaanbaatar published a study that reported that burning coal for domestic heating may contribute to early fetal death. "CHLA and colleagues in government and academia in Mongolia are expending concerted efforts to improve stove efficiency and to educate the public about correct and more efficient lighting and heating methods," says study leader David Warburton, OBE, DSc, MD, MMM, FRCP, FRCS, FRCPCH, professor of Pediatrics and Surgery at The Saban Research Institute of Children's Hospital Los Angeles. "Mongolians are wonderful, smart, warm people," says Warburton. "They listen to and appreciate our advice and are acting on it as gross domestic product has risen and resources become increasingly available in their country. We have seen impressive changes over the past decades and now look forward to further collaboration."
Recently, the relationship between the institutions has been reinvigorated by Mongolia's successful infrastructure additions and infection control protocols at the NCMCH. This now allows CHLA physicians to work with colleagues to treat more complex cases. "Over the past 20 years, we have helped to guide the NCMCH into providing improved pediatric care through development of knowledge, skills and hospital facilities," MacKenzie says. "We now stand prepared to further assist as they develop the expertise and technology to provide advanced pediatric and surgical care practiced in the 21st century."
Inspired by Zaya: B.Tsogtbayar, Grand Maitreya Project Leader
April 1 (gogo.mn) "Future of Mongolia is not just mining. Instead I believe our future is dependent on educated, intelligent and multifaceted youth". I want to proudly introduce those talented and educated young professionals to others.
Editor E.Ariunzaya
We are delivering the next episode of the Inspired by Zaya talk show hosted entirely in English language, encouraging and inspiring the future of Mongolia to commit to learning English language and enhance possibilities in life. This episode features B.Tsogtbayar, Leader of the project to introduce Mongolia to the world, Grand Maitreya Project. While talking with him I was thinking on how lucky we are to be able to be a part of such a great making of history. For the full episode please click here.
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