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Friday, September 2, 2016
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XAM closed -5.26% on Thursday, trading flat Friday at A$0.18
Xanadu Mines Ltd achieves milestone at copper-gold project
September 1 (Proactive Investors) Xanadu Mines Ltd (ASX:XAM) has successfully completed preliminary metallurgy work on samples from its Kharmagtai copper-gold project in Mongolia.
Strong results from the flotation test work saw copper recoveries of up to 95.3%, gold recoveries up to 95.4% and silver recoveries up to 89.9%.
Optimisation of the metallurgical performance will be achieved with additional test work.
Dr Andrew Stewart, CEO, commented: "These positive metallurgical test results provide more confidence with the drilling underway to expand the resource by targeting mineralisation in the tourmaline breccia.
"The new results also complement the previous metallurgical studies undertaken on the shallow copper-gold stockwork zones of the orebody."
Kharmagtai porphyry copper-gold project
The 79.5% owned Kharmagtai project is located in south Gobi, Mongolia.
It is an advanced exploration project with a 66 square kilometre mining licence.
Kharmagtai contains a 203 million tonne JORC compliant resource containing 680,000 tonnes of copper and 2.2 million ounces of gold with significant exploration upside.
It is a large porphyry style deposit with multiple near-surface, gold-rich zones and mineralisation outcropping at surface.
The resource represents only a small portion of a potentially large mineral system.
Exploration is targeting a fourth shallow gold-porphyry centre to support at least a 5 million tonnes per annum operation for 10 years at 0.6% to 1.0% copper equivalent.
A new drilling program is planned to follow-up significant results from the recently completed program.
Metallurgy details
Preliminary metallurgical test work was completed on diamond core from high-grade tourmaline breccia mineralisation at the Altan Tolgoi deposit within the Kharmagtai project.
The metallurgical test work was aimed at producing a float concentrate of copper, gold and silver from the 30 kilogram sample.
Copper recoveries into a rougher concentrate ranged between 93.6% to 95.3%.
Gold recoveries into a rougher concentrate ranged between 93.4% to 95.4%.
Silver recoveries into a rougher concentrate ranged between 86.7% to 89.9%.
Analysis
These early stage flotation test results are exceptional and indicate that a standard crushing, grinding and flotation process is all that will be required to extract all the economic minerals from the tourmaline breccia mineralisation.
Xanadu foresee no significant hurdles to producing a high quality concentrate via standard processing pathways from the tourmaline breccia mineralisation at Altan Tolgoi.
This bodes well for project economics as the company looks to monetise Kharmagtai's shallow deposits containing gold-rich copper resources.
Mineralisation at Kharmagtai outcrops at surface and remains open at depth.
The JORC resource is thought to be only a small portion of a large mineral system providing for significant resource upside potential through exploration.
The share price is up 75% year to date, currently trading at $0.195 per share.
Xanadu maintains support from an Australia-wide broker who has a Speculative Buy recommendation and price target of $0.51 per share.
The company remains leveraged to exploration upside with an active exploration program in progress at its Oyut Ulaan copper-gold project also located in Mongolia.
975 jumped 10.2% Thursday, trading -3.4% Friday at HK$0.115
MMC: Clarification Announcement on Joint Liquidators' Report
September 1 -- References are made to the announcements of Mongolian Mining Corporation (In Provisional Liquidation) (the "Company", together with its subsidiaries, the "Group") dated 26 August 2016 and 31 August 2016 in relation to a report (the "Report") on the conduct of the provisional liquidation of the Company submitted by Mr. Simon Conway of PwC Corporate Finance Recovery (Cayman) Limited and Mr. Christopher So Man Chun of PricewaterhouseCoopers Ltd. as joint provisional liquidators of the Company to the Grand Court of the Cayman Islands on 25 August 2016 (Cayman time).
The purpose of the Report is to provide a background to the Company's current financial and operational situation, provide an assessment of the Company's future viability, highlight key issues impacting and driving any restructuring proposal, and discuss steps taken by the JPLs. In performing this work, the JPLs have primarily relied on (i) their previous restructuring experience and market practice in similar matters, (ii) public market and industry information, and (iii) material historic financial and operating information of the Company which has been publicly announced.
The JPLs have examined the Company's future viability under different scenarios, based on various assumptions with respect to the likelihood of business opportunities for increased scale operational synergy that the Group is pursuing and the related execution risks. In order to develop an illustrative comparator to the debt restructuring, the JPLs have performed liquidation analysis of the Group which includes an estimated recovery for the various creditor groups under an insolvent winding-up scenario, based on various assumptions with respect to enforcement. Please refer to the announcement of the Company dated 26 August 2016 for detailed conclusions reached in the Report.
The Company wishes to clarify that the website link that contains a copy of the Report is made password free.
MMC: Cayman Court Grants Extension of Provisional Liquidation
September 2 -- This announcement is made by Mongolian Mining Corporation (In Provisional Liquidation) (the "Company") pursuant to Rule 13.09(2) of the Rules Governing the Listing of the Securities on The Stock Exchange of Hong Long Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).
References are made to the announcement of the Company dated 21 July 2016 in relation to a winding-up petition filed by the Company as a necessary pre-cursor to facilitate its application for the appointment of joint provisional liquidators (the "Petition") and the announcements of the Company dated 26 August 2016, 31 August 2016 and 1 September 2016 in relation to a report on conduct of provisional liquidation submitted by Mr. Simon Conway of PwC Corporate Finance Recovery (Cayman) Limited and Mr. Christopher So Man Chun of PricewaterhouseCoopers Ltd. as joint provisional liquidators (the "JPLs") of the Company to the Grand Court of the Cayman Islands (the "Grand Court") on 25 August 2016 (Cayman time).
As scheduled, the Petition was heard by the Grand Court on 1 September 2016 (Cayman time). The Company is pleased to announce that the Honourable Justice McMillan (the "Judge") of the Grand Court has granted an order that (i) the provisional liquidation of the Company be extended by a further eight weeks from this hearing, subject to the Grand Court's schedule and the Judge's own availability, (ii) similarly, the Petition be further adjourned until such date, and (iii) the JPLs be directed to submit a second report on conduct of provisional liquidation seven days prior to the hearing of the adjourned Petition.
The Company will publish further announcements to update the shareholders and potential investors on progress of the debt restructuring as and when necessary.
WINSWAY (01733.HK) Shoots Up 12.x on Soaring Volume; Interim Results Swing to Profit $2.002B
September 1 (AAStocks) WINSWAY (01733.HK)'s share price leaped 1.2 times to $0.53, hitting over-two-month high, on spiking volume of 357 million shares, involving $138 million, which was rarely seen recently.
The company announced that for the interim period as of the end of June, the loss swung into profit of $2.002 billion. EPS equaled $2.384.
TRQ closed +0.32% Thursday to US$3.09, SGQ last traded C$0.22 Wednesday, 1878 trading 0.8% Friday to HK$1.29
Turquoise Hill Further Reduces SouthGobi Stake from 12.06% to 11.91%
MSE Trading Report: Top 20 -1.37%, ALL -1.06%, Turnover ₮17 Million Shares, ₮112.8 Million T-Bills
September 1 (MSE) --
BoM MNT Rates: Thursday, September 11 Close
9/1 | 8/31 | 8/30 | 8/29 | 8/26 | 8/25 | 8/24 | 8/23 | 8/22 | 8/19 | 8/18 | 8/17 | 8/17 | 8/16 | 8/15 | ||
| USD | 2,207.70 | 2,219.65 | 2,231.93 | 2,233.56 | 2,253.24 | 2,250.95 | 2,254.97 | 2,257.87 | 2,260.05 | 2,263.70 | 2,265.28 | 2,251.99 | 2,251.99 | 2,237.32 | 2,187.38 |
| EUR | 2,461.59 | 2,472.02 | 2,494.18 | 2,500.81 | 2,545.71 | 2,535.92 | 2,546.76 | 2,558.96 | 2,550.01 | 2,568.17 | 2,563.39 | 2,535.74 | 2,535.74 | 2,515.20 | 2,442.87 |
| JPY | 21.37 | 21.49 | 21.82 | 21.82 | 22.42 | 22.41 | 22.48 | 22.56 | 22.43 | 22.62 | 22.68 | 22.32 | 22.32 | 22.31 | 21.62 |
| GBP | 2,902.35 | 2,905.30 | 2,917.36 | 2,927.30 | 2,978.33 | 2,973.96 | 2,969.34 | 2,971.92 | 2,949.82 | 2,977.56 | 2,957.78 | 2,933.55 | 2,933.55 | 2,885.47 | 2,829.16 |
| RUB | 33.82 | 34.01 | 34.40 | 34.38 | 34.87 | 34.65 | 34.69 | 34.82 | 35.20 | 35.50 | 35.57 | 35.20 | 35.20 | 34.93 | 33.90 |
| CNY | 330.50 | 332.31 | 334.22 | 334.56 | 338.18 | 338.16 | 338.90 | 339.88 | 339.32 | 340.88 | 341.81 | 339.61 | 339.61 | 337.31 | 329.22 |
| KRW | 1.97 | 1.99 | 1.99 | 1.99 | 2.02 | 2.02 | 2.01 | 2.02 | 2.01 | 2.03 | 2.05 | 2.03 | 2.03 | 2.05 | 1.99 |
| SGD | 1,619.44 | 1,626.59 | 1,638.53 | 1,640.57 | 1,666.54 | 1,663.37 | 1,666.52 | 1,673.92 | 1,671.14 | 1,684.55 | 1,689.56 | 1,675.53 | 1,675.53 | 1,669.64 | 1,627.64 |
| CAD | 1,685.59 | 1,694.65 | 1,712.26 | 1,716.93 | 1,746.97 | 1,743.10 | 1,742.90 | 1,749.00 | 1,748.25 | 1,769.07 | 1,767.68 | 1,749.12 | 1,749.12 | 1,733.68 | 1,689.23 |
| AUD | 1,665.60 | 1,665.07 | 1,686.67 | 1,686.23 | 1,720.24 | 1,716.57 | 1,713.21 | 1,725.58 | 1,716.17 | 1,731.16 | 1,746.53 | 1,727.39 | 1,727.39 | 1,725.31 | 1,678.05 |
| HKD | 284.61 | 286.16 | 287.75 | 287.96 | 290.54 | 290.29 | 290.82 | 291.19 | 291.50 | 291.96 | 292.13 | 290.40 | 290.40 | 288.46 | 282.01 |
| CHF | 2,245.54 | 2,257.12 | 2,279.69 | 2,284.62 | 2,333.75 | 2,328.01 | 2,338.94 | 2,350.60 | 2,345.42 | 2,369.87 | 2,359.91 | 2,337.30 | 2,337.30 | 2,311.40 | 2,243.70 |
Bank USD rates at time of sending: Khan (Buy ₮2,200 Sell ₮2,225), TDB (Buy ₮2,200 Sell ₮2,230), Golomt (Buy ₮2,195 Sell ₮2,225), XacBank (Buy ₮2,198 Sell ₮2,223), State Bank (Buy ₮2,200 Sell ₮2,230)
MNT vs USD (blue), CNY (red) in last 1 year:
BoM sells US$49.8m at ₮2,223, accepts $38.3m MNT, $20.3m USD swap offers
September 1 (Bank of Mongolia) Spot trade: On the Foreign Exchange Auction held on September 1, 2016 the BOM has received ask offers of USD49.8 million in a rate between MNT 2186.00-2223.00 and bid offers of CNY0.5 million in a rate of MNT 323.10 and ask offers CNY8 million at CNY 330.00-331.00 from local commercial banks. The BOM sold USD49.8 million in a rate of MNT2223.00.
Swap and forward trade: The BOM received accepted bid offers of USD 38.3 million of MNT, USD 20.3 million USD swap agreements.
FX Reserves Fall 1.64% in July to $1.28 Billion, -25.3% from 2015
September 1 (Bank of Mongolia) --
Date | Gross Reserves | Monthly, % | YTD, % | YOY, % |
2016/07 | 1275.3 | -1.64 | -3.62 | -25.30 |
2016/06 | 1296.6 | -10.08 | -2.00 | -23.08 |
2016/05 | 1441.9 | -6.62 | 8.98 | -9.37 |
2016/04 | 1544.1 | 22.04 | 16.70 | 21.85 |
2016/03 | 1265.3 | 5.68 | -4.37 | -4.43 |
2016/02 | 1197.3 | -9.54 | -9.51 | -12.12 |
2016/01 | 1323.5 | 0.03 | 0.03 | -0.32 |
2015/12 | 1323.1 | -9.29 | -19.81 | -19.81 |
2015/11 | 1458.7 | 3.68 | -11.59 | 7.88 |
2015/10 | 1406.9 | -0.41 | -14.73 | 0.6 |
2015/09 | 1412.7 | -18.28 | -14.38 | -8.42 |
2015/08 | 1728.7 | 1.26 | 4.77 | 27.05 |
2015/07 | 1707.2 | 1.28 | 3.47 | 26.52 |
IMF Stands Ready to Support Mongolia
UPDATE 1-IMF says nearing board vote to release Ukraine bailout funds
September 1 (Reuters) The International Monetary Fund said on Thursday it is "very close" to concluding its latest review of Ukraine's $17.5 billion bailout and expects its board to consider releasing additional funds in the second half of September.
…
MONGOLIA MISSION
Rice, the IMF spokesman, also said in the briefing that the IMF stood ready to provide assistance to Mongolia following a staff mission to Ulaanbaatar in mid-August.
He said the IMF staff discussed a range of issues with officials from Mongolia's newly elected government
"We're carefully monitoring the country's situation. We stand ready to support Mongolia and the government as it works to address the challenges that it faces," Rice said.
He declined to say whether Mongolian officials had requested IMF funding.
Mongolia's economy, which five years ago had the highest growth rate in the world, has been hard hit by the collapse of commodity prices last year and the slowdown in commodities demand from China.
Domestic violence bill to be resubmitted after cancellation
Ulaanbaatar, September 1 (MONTSAME) Initiated by the President, a draft new version of the law on combating family violence and related bills were submitted to parliament on April 15, 2015.
At its meeting held August 30, the cabinet discussed the draft and decided to send back the draft to the initiator. Based on a consensus with the draft initiator, an obligation was given to the Minister of Justice and Internal Affairs to reformulate the draft new version of the law, and to discuss it at next cabinet meeting. It will be submitted to parliament.
Local election budget approved - MNT13.9 billion
September 1 (news.mn) Mongolia successfully held its parliamentary election last June. Now, the country is preparing for the local election, which will be held on 19th of October. A plenary meeting of the non-regular session of Parliament, held on Tuesday (30th August) a budget for the local election was approved at a cost of MNT13.9 billion. This can be broken down as follows:
- Printing identity card for candidates and election workers – MNT 43 million
- Printing ballot-papers – MNT 3.3 billion
- Printing and distributing registration forms- MNT 7.7 million
- Supplying paper bags for stamps, wax and ballot-papers –MNT 72 million
- Repairing and delivering automatic vote counting machines – MNT 2.1billion
- Broadcasting news of voting – MNT 241 million
- Preparing voting stations – MNT 440 million
- Electoral law and other election overheads – MNT 444 million
- Training costs – MNT 462 million
- Election advertising – MNT 366 million
- Monitoring of candidates' expenses – MNT 8 million
- Food for election workers – MNT 4.2 billion
- Documents, postal service, vehicles, mission of electoral districts – MNT 1.7 billion
- Operational cost of election – MNT 110 million
Government will continue 8% mortgage program says minister
September 1 (gogo.mn) Today Minister of Construction and Urban Planning G.Munkhbayar held meeting with representatives of construction companies and non-governmental organizations.
Currently, 7000 companies hold licenses in construction sector. Out of 1400 licenses, issued by Construction Development Center, have not commenced the construction. Therefore, licenses will be issued through online service in further.
Minister G.Munkhbayar noted:
"Construction companies must build school and kindergarten in accordance with their social responsibility. National commission will receive towns with school and kindergarten in further.
8% mortgage program is expected to be continued in Ulaanbaatar city. Also, the mortgage loan interest will be reduced to 5% for local residents. In regards, the Government established working group in cooperation with Bank of Mongolia.
In addition, we are seeking opportunity to expand the apartment size from 80 sq. m to 100 sq. m while we are following a policy to lower monthly payment of mortgage loan".
Related:
8% mortgage to continue – news.mn, September 1
Other cabinet decision in brief
Ulaanbaatar, September 1 (MONTSAME)
- A governmental resolution was approved at the cabinet meeting on Wednesday on re-opening the hospital for special public servants. This hospital will serve for servicemen and authorities of emergency, border protection, law enforcement as well as people from the city's Chingeltei district.
- A composition of the Council of Food Safety was reapproved. This Council is chaired by the Prime Minister.
- The cabinet reapproved a composition of an organizing commission for marking the 100th anniversary of Yu.Tsedenbal, a prominent political and social figure. The commission is led by head of the Cabinet Secretariat for Government.
- The cabinet decided to withdraw from parliament a draft amendment to the law on rule of maintaining the law on debt management and a bill on rule of maintaining some clauses of the law on the Bank of Mongolia.
Deposit Insurance Corp. CEO Appointed Deputy Governor of Central Bank
Ulaanbaatar, September 1 (MONTSAME) On the plenary session of the State Great Khural (Parliament) of Mongolia, held Thursday, the parliament dismissed Batshugar Enkhbayar and appointed Lkhagvasuren Byadran to the position of the Vice Governor of the Bank of Mongolia, the state central bank, on September 1.
Dismissal of E.Batshugar was backed with 81.2 percent approval, and the appointment of B.Lkhagvasuren was approved by 83.7 percent.
The latter was born in 1965 in Ulaanbaatar, graduated the National University of Mongolia (NUM) majoring in economic planning in 1989, and defended master's degree at the University of Columbia of the USA on international economic relations.
He worked as a researcher at the State Planning Commission and the Institute of Economics of the Academy of Sciences between 1989 and 1994, economist at the Bank of Mongolia in 1994-1998 and as the head of Monitoring Department, assistant of the Governor, head of the Department of Registry and IT, director of the Bank's training center in 2000-2013, consultant at the Northeast Asia and the Pacific Division of the World Bank between 1999-2000, and executive director of the Savings Insurance Corporation from 2013 to the present.
New heads of border, customs, aviation authorities appointed
Ulaanbaatar, September 1 (MONTSAME) On Wednesday's regular meeting of the cabinet, new chairpersons were appointed for some agencies.
Upon the voluntary retirement of the previous chairman Sh.Lkhachinjav of the Border Protection Authority, Ts.Sergelen was appointed the chairman. B.Batkhishig was appointed the chairman of General Customs Authority, and L.Byambasuren - the chairman of the Civil Aviation Authority upon the dismissal of the acting chairman G.Nyamdavaa.
Kh.Gantsogt was dismissed from the position of the State Secretary of the Ministry of Finance, in regard of his assignment to other position.
₮41.4 billion required to build of Tosontsengel-Uliastai road
Ulaanbaatar, September 1 (MONTSAME) On the regular meeting of the cabinet on Wednesday, the affiliated ministers were given obligations to hold negotiations with the Chinese authorities on dedicating the economized financial source from the soft loan of USD 500 million, allowed from the Government of China to the Government of Mongolia, for the building of 67 km paved road connecting Tosontsengel and Uliastai of Zavkhan province.
Economized balance of the soft loan totaled to USD 24.9 million.
PM attends opening of new academic year at Buyan Ukhaa Complex school
Ulaanbaatar, September 1 (MONTSAME) On September 1, Prime Minister J.Erdenebat attended the opening of the new academic year of 2016-2017 at the "Buyant Ukhaa Complex" school, which has some 2,400 children, studying in 62 classes. The school also received 303 first-graders this academic year.
The PM congratulated the gathered pupils, teachers and educators, and parents on the new academic year, mentioned that he had studied in the very school when it was called the Seventh School of Workers' District and expressed his happiness with his participation in the celebration of his old school.
In the academic year of 2016-2017, more than 560 thousand children will be educated in the general education schools, and 1,300, in the kindergartens, throughout the country, mentioned Mr Erdenebat and added that the access to schools and kindergartens is especially deficient in Mongolia. Therefore, he said, the government is planning to take actions for improving educational sector.
For instance, the Buyan Ukhaa Complex school has to take three shifts each day to meet the study schedule. It is the Government's goal to alleviate this load, until it would be enough for each school to take two shifts and observe the intended study plan. The government will put efforts in realizing this goal, promised the Prime Minister.
Speaker M.Enkhbold presents laptops to alma mater School #1
Ulaanbaatar, September 1 (MONTSAME) Chairman of the State Great Khural M.Enkhbold attended Thursday opening of the academic years of the city's laboratory #1 secondary school in Sukhbaatar district.
In his remarks, the Speaker said he graduated from this school in 1982, his parents and children also graduated from the #1 school. He greeted his teacher Dulmaa who taught him Russian language, and wished academic success to all the pupils.
He granted 20 laptops to the school's director, and these devices will be used for lessons at the Class of Informatics.
Founded in 1923, the #1 school is one of the oldest secondary schools in Mongolia.
President Ts.Elbegdorj gives annual TV lesson
Ulaanbaatar, September 1 (MONTSAME) President Ts.Elbegdorj gave Thursday a lesson entitled "Resounding Mongolia throughout the World" on TV dedicated to opening of the academic years 2016-2017.
Taught by Ts.Elbegdorj on the eighth year, the lesson was directly aired throughout the country by TV channels. He started the first part of the lesson, talking about summaries of the previous seven lessons. In the second part, he held conversation with pupils on the topic "Resounding Mongolia throughout the World".
From 2009 and to 2015, the President's lessons had topics "Global warming-Mongolia", "Mongolian pride", "Across the beautiful country of Mongolia", "The child is father of the man", "Creative education--creative person, education for every child" and "Good will--good fortune".
Sharp to build solar power plant in Mongolia
September 1 (gogo.mn) is to build solar power plant in Mongolia. The Japanese electronics company Sharp announced the construction of a solar power plant in Mongolia with an installed capacity of 10 megawatts. The project is the first of its kind and features the collaboration of the Japanese trading company Shigemitsu Shoji and its Mongolian partner Solar Power International.
The agreement was signed in Ulaanbaatar and it is the first large scale solar power plant business in Mongolia. The construction phase began in late July in the northern city of Darkhan and the commercial operation date is scheduled in upcoming December. Once completed, greenhouse gas emission will be reduced in Mongolia.
Source: www.vom.mn
Related:
Japan's Sharp to build solar power plant in Mongolia – news.mn, September 1
ING in focus with changes to Mongolia, Korea teams
ING Bank has made changes to its businesses in Mongolia and South Korea, appointing a new chief representative for the former and bolstering its presence in the latter.
September 1 (GlobalCapital) Erik Versavel becomes the new chief representative for Mongolia from September 15. He replaces Howard Lambert, who has been named head of corporate clients, Middle East. Lambert's appointment was effective August 1 and he is now based in Dubai.
Versavel has been in the industry for 30 years ...
…
Link to article (needs subscription)
300 to Attend First Silk Road Tourism Conference in Ulaanbaatar
Ulaanbaatar, September 1 (MONTSAME) The first international conference on Silk Road tourism will take place on October 13-15, 2016 in Ulaanbaatar.
It is expected that some 300 delegates of foreign countries will attend the conference. The cabinet meeting held Wednesday decided to allot money of MNT 168 million and 775 thousand from the governmental reserve.
Mongolia receives new livestock vaccine delivery vehicles
September 1 (news.mn) Mongolia has received five Kia Bongo (K2700) vehicles for vaccine delivery through World Bank funding. The specially-equipped Kia Bongo cars are suitable for Mongolian roads and climate. It is planned that they will deliver animal vaccines to herders in the Zavkhan, Bayankhongor, Gobi-Altai, Khuvsgul and Arkhangai provinces.
7th Mongolia Investment Summit Hong Kong to be held on November 1-2
September 1 (Mongolian Economy) The 7th Annual Mongolia Investment Summit Hong Kong, is the premier gathering of governmental officials, leading Mongolian business executives, foreign investors and expert analysts. The event serves to connect investors from around the world with Mongolian projects and companies looking for capital injections. This is your chance to learn about the investment climate, identify business opportunities, and to network with Asia's leading professionals in an intimate environment.
Topics include:
Reviewing the impact of economic reforms started in 2014
Confronting economic underperformance and the gradual restoring of investor confidence in Mongolia
The Commodities Sector: The spark plug of growth for progress in industry and investment
Mongolian Economy readers are entitled to receive a 10% discount on conference tickets. Use promo code BH965ME10 upon registration. Register online or contact a Customer Service Representative on +852 2219 0111 or email info@beaconevents.com.
Website: hongkong.mongoliainvestmentsummit.com
Entering Mongolia – 10 Key Takeaways
September 1 (gogo.mn) WPP, the world's largest communication services group in cooperation with Y&R Mongolia, the world's leading full service advertising agencies have released "Spotlight on Mongolia", business environmental analysis report on Aug 31.
David Roth, CEO, The Store WPP, EMEA and Asia noted:
"There is a ready pool of people in Ulaanbaatar right now who are already wealthy, and now is the time to serve them. Almost 39% of adults in the country are sitting on wealth of between US$10,000 and $100,000, and there are about 32,000 dollar-millionaires. While their numbers are small, they are all in one place, in a cosmopolitan city with good infrastructure and reliable and affordable communications, and they are open to new ideas".
The report includes 10 key take aways for entering Mongolian market.
1. THIS IS A TALE OF ONE CITY
Mongolia has two distinct parts – the peaceful, rural landscape of nomadic herders, who tend not to be materialistic and who are generally content with their simple lives. The other part is Ulaanbaatar, known as UB, where there's wealth, sophistication, a desire for progress and affluence, and a certain edginess that tends to go with fast-expanding frontier mining towns. A thread of cultural pride runs through the country and unites its people, from the capital to remote pastures, but for many international brands seeking to explore the Mongolian market, their business will start – and stop – in the capital.
2. THERE IS A PRIDE IN THE MONGOLIAN IDENTITY
Mongolia has a population of 3 million people, but it is also the 'motherland', the cultural capital of the Mongol ethnic group. Mongol people live across the Central Asian plains and number at least double the number of people living in Mongolia. What's dubbed 'pan-Mongolism' has taken Mongolian culture and products as far north as Russia and south to Inner Mongolia in recent years, driving demand for everything from milk to pop music.
3. NEW IS EXCITING
There is a curiosity about Mongolian consumers that is a huge boon for businesses looking to launch in this market. People are open to giving new brands and new products a try. In fact, this willingness to consider something new can make it difficult for brands to build loyalty, and businesses here must keep products feeling fresh and exciting through innovation and change, with regular updates, variants and new packaging. A long nomadic tradition is possibly behind this readiness to move on and could help explain why local service businesses often start off strong and then drift after a few months. Local brands often emphasize making a big entrance, without having a long-term strategy in place.
4. EXPECT TO FIND CONTRADICTIONS
Mongolian consumers have traditionally looked to Europe for the latest trends and for lifestyles to aspire to. There is a sense of individualism here that is more recognizable in the West than in the rest of Asia, where the collective usually dominates. But while older people feel a degree of nostalgia for the order that Soviet rule brought, there is immense pride in Mongolian independence and culture, and growing interest in quality, and locally made goods such as organic soaps and toiletries. There is Eastern influence, too; Lunar New Year is a huge family celebration, and Korean dramas are among the most popular shows on TV.
5. THE COUNTRY IS YOUNG, BUT CONSUMERS ARE NOT AVERAGE
Almost a third of the Mongolian population is aged under 15, but the disparity in wealth and living conditions among the population here mean averages must be treated with caution. The future of the country is in the hands of its young people, but much of the spending power in the country right now resides with more mature consumers. For now, the majority of affluent consumers are aged 30-plus, even for what might be considered quite youthful brands in other markets.
6. CHEAP ISN`T NECESSARILY APPEALING
Mongolian people have a keen eye for value, but they are more concerned with the quality of what they're buying than the price. In fact, after a decade of being on the receiving end of cheap imports that quickly fall apart, consumers are suspicious of cheap prices, which now connote poor quality and will be overlooked by shoppers who want to buy things that last and who can afford to insist on better.
7. AFFLUENT CONSUMERS ARE ONLINE AND SOCIAL
Television remains, as in much of the region, a hugely effective tool for achieving mass reach in a short time, and news, current affairs, dramas and comedy are highly popular. Free time is increasingly being spent online, however, often on several devices at once, and among consumers who have access to the internet, most are connecting using a smart phone, and almost all are using social media. Social media remains a largely untapped opportunity for brand marketers, with most brands simply transferring their offline activity to a new screen rather than creating fun, interactive experiences that match the medium.
8. THE PACE OF PROGRESS IS DIFFERENT
In some ways, Mongolia is skipping entire stages of what in other markets have been small periods of development taking place over many years. Think a step ahead. Many people's first phone is a mobile, and first internet access is via a smart phone rather than a laptop or desktop. Internet banking is being rolled out fast, and online or phone-based bill paying is commonplace. At the same time, however, it's important not to make assumptions about consumers' knowledge of brands and categories. What might be considered obvious in other markets might not be so here. The fact Burger King only sold burgers, for instance, came as a surprise to many of its first Mongolian customers.
9. INFORM AND INSPIRE
This may be a new market for many global brands, but people here have been exposed to brands for decades now and are open to quite sophisticated messaging in advertising. While information is important, consumers are looking for an emotional connection with brands, and creating aspiration is vital if brands are to stand out. The 'family around the table' motif is frequently deployed in television advertising, but is so widely used that brands tend to blur into one another. Similarly, the legacy of Chinggis Khaan is to be overlooked at your peril; his name adorns everything from the airport and the capital's central square to bars, bottles of vodka and the country's main airport. His name has become a shorthand expression of quality - but is ubiquitous to the point of saturation.
10. DEMAND CAN BE VOLATILE
People in Mongolia tend to spend more money when they have it, and pull back sharply when times are leaner. Given the dependency of much of the economy on natural resources, retailing enjoys boom times when commodity prices are high and the converse is true as well. Brands and retailers here need to plan for fluctuating demand. They should also be aware that end-of-season sales are a fairly new phenomenon, and customers aren't always delighted to discover items they paid full price for a month or two earlier being sold off at a deep discount.
Pollution Like Snow: A Mongolian Winter
Mongolia's true wintertime foe isn't the cold or the snow. It's the horrendous air pollution in Ulaanbaatar.
August 31 (The Diplomat) Summer is quickly drawing to a close in Mongolia's capital, Ulaanbaatar, which means one thing: winter is coming—nearly six months of it. "UB," as the city is commonly known, is the coldest capital city in the world with winter temperatures below -35 degrees Celsius. But the cold isn't the only worry for the city. Winter also means the stubborn return of stifling air pollution largely absent during the warm summer months. Each winter UB's nearly 1.5 million residents, roughly half Mongolia's population, endure truly terrifying levels of ambient particulate matter.
"Air pollution now sounds like a part of the season to us, like snow," Bat-Erdene Purevnyamjid, a resident who lives in central UB, told The Diplomat.
"In the mornings and evenings, in some parts of the city, it's even hard to see what's 20 or 30 meters away," he said.
Read the full story here, in The Diplomat magazine
Ambassador of Belarus meets Director of Europe Department at Foreign Ministry of Mongolia
September 1 (MFA Belarus) On September 1, 2016 the Ambassador Extraordinary and Plenipotentiary of the Republic of Belarus to Mongolia, Stanislav Chepurnoy, met with the Director of Europe Department of the Ministry of Foreign Affairs of Mongolia, Mijiddorj Tsengeg.
The sides discussed actual issues of the bilateral agenda, including the bilateral visits, holding of the next session of the Joint Belarus-Mongolian Commission on trade and economic cooperation, consultations between the Ministry of Foreign Affairs of the Republic of Belarus and the Ministry of Foreign Affairs of Mongolia, as well as widening of the legal base.
Turkish Embassy holds reception for Victory Day
Ulaanbaatar, September 1 (MONTSAME) On occasion of the 94th anniversary of the Victory Day of Turkey, the Ambassador Extraordinary and Plenipotentiary of Turkey to Mongolia Murat Karagoz held a reception of honor in the Embassy building on August 30.
The reception was attended by B.Bat-Erdene, the Minister of Defense; parliamentarians; Ambassadors to Mongolia; and military attaches of Embassies in Mongolia.
In his speech, the Turkish Ambassador highlighted that the victory of Turkish people gained 94 years ago was a heroic event.
"Under leadership of our great Marshal Mustafa Kemal Ataturk, we got victory at the final battle in Dumlupınar, building up a base of founding the Republic of Turkey. He is the symbol of the Turkish independence, triumph of freedom and courage of the Army.
On August 15, a coup d'etat was attempted in Turkey. This incidence which opposed Turkey's sovereignty, unity and democratic state was fiercely protested by Turkish people," the Ambassador said.
"As our President said, we are striving to foster our Republic government and to bring the national economy and politics into the highest volume of civilization. We will continue the fight against such actions of traitors and dissidents, ignoring threats of terrorist organizations which always attempt to destroy our peace and happiness," he stressed.
Victory of the battle in Dumlupınar resulted a proclamation of the Turkish independence on October 30, 1922, and Mustafa Kemal Ataturk was elected as the first President of the Republic of Turkey. He maintained a principle called "secularism" which separates politics and religion. He also carried out a number of reforms, for instance, the Arabic alphabet was replaced by Latin alphabet, and women were provided with rights to vote parliamentary elections and to be elected as parliamentarians.
Turkish Ambassador celebrates first day of academic year at Ataturk School #45
Ulaanbaatar, September 1 (MONTSAME) Ambassador Extraordinary and Plenipotentiary of the Republic of Turkey to Mongolia, Mr Murat Karagoz attended on September 1 the opening ceremony of the new academic year of 2016-2017 at the Fifth School of Ulaanbaatar named after Ataturk.
Present were also, the Minister of Education, Culture, Sciences and Sports, Mr J.Batsuuri, director of the Fifth School, Mr N.Gendensuren and some representatives of the Municipal Department of Education.
In his speech, Ambassador Karagoz highlighted the fact that the Fifth School has been named after Ataturk, the founding father of the Republic of Turkey and a renowned political figure of the 20th century. He also let the gathered know that the school yard has been decorated and landscaped in the scope of project by the Turkish International Cooperation and Development Agency (TIKA), which cost USD 640 thousand.
Minister of Education J.Batsuuri extended thanks to the Government of Turkey for making investment to not only the Fifth School, but also the entire educational sector of Mongolia.
Russia, Mongolia Hold Joint Military Exercise
The Selenga 2016 military drill kicked off on August 30 and will last until September 7.
September 2 (The Diplomat) The Armed Forces of the Russian Federation and Mongolia are holding a joint military exercise, dubbed Selenga 2016, at the Ulun Burduny training complex in the Republic of Buryatia, located in the south-central region of Siberia, Russia, according to local media reports.
The joint military drill, which began on August 30 and will last until September 7, involves around 1,000 military personnel and 200 vehicles and aircraft on both sides. The objective of the exercise is to enhance interoperability and cooperation between the Russian and Mongolian militaries in combatting insurgents and terrorist groups.
In detail, on the Russian side a tank battalion, a motorized infantry company, a mortar battalion, howitzer self-propelled artillery and rocket batteries, air defense, reconnaissance, and NBC (nuclear, biological, and chemical) protection units, are participating in the exercise. The Mongolian military is present with a number of motorized infantry companies, armored personnel carriers, a tank platoon, and a mortar and a rocket battery.
The military exercise is running according to plan so far. "During the joint training, units of the Eastern Military District and the Mongolian armed forces practiced tactical groups' movement on approach routes and the organization of communication between the units. The Joint Staff of the exercise command agreed [on] the command and liaison signals common for both sides," a spokesman for the Russian Eastern Military District told TASS news agency on August 31.
Last year's exercise was smaller and involved 90 vehicles and aircraft on the Russian side, and 54 on the Mongolian side. Russian aircraft included Su-25 attack aircraft, Mi-8 helicopters and Mi-24 helicopter gunships. Mongolia sent 72 main battle tanks and a battery of BM-21 multiple rocket launchers. In total, around 900 military personnel participated on both sides. This year will also see a number of Russian Su-24M2 tactical bombers participating in a simulated attack against enemy armor formation.
The Selenga military exercise has been held annually since 2008. Up until 2011, the drill was first and foremost a live fire exercise, but it gradually expanded to include more complex tactical scenarios including amphibious assaults and tactical landings during river crossings. The number of troops from sides participating in the drills has varied over the years. In 2011, 700 Mongolian soldiers participated, whereas in 2012 that number went down to 300.
Mongolia is pursuing a foreign policy of neutrality between Russia and the West and has also increased cooperation with NATO countries over the last few years. Mongolia has been host to the Khaan Quest multinational military exercise, co-sponsored by the U.S. Pacific Command, with participating militaries practicing peace support operations at the Mongolian Armed Forces Five Hills Training Area and in the city of Ulaanbaatar.
Russia and Mongolia have two separate military-technical assistance agreements signed in 2004 and 2014 respectively. Recent military hardware deliveries included around 100 T-72A main battle tanks as well as 400 BTR-70M and 20 BTR-80 armored personnel carriers, among other items. From 1991-2015, Russia exported military equipment to Mongolia estimated to be worth around $107 million. During that period, Mongolia received Mi-17E transport helicopters, V-600 surface-to-air missiles, and S-125M "Pechora-2M" air defense systems, next to the armored vehicles mentioned above.
First day of school in Ulaanbaatar: 31 thousand new schoolchildren
September 1 (news.mn) There are a total of 224 schools in Ulaanbaatar, of which 135 are state-owned and 89 private. The new academic year in Mongolia begins today (1st September). This year, 230 thousand pupils will attend school and 31 thousand Mongolian children will start school for the first time. In total 101650 children attend the 597 kindergartens in Ulaanbaatar.
Kindergarten opens at MFA
Ulaanbaatar, September 1 (MONTSAME) Ceremony took place on Thursday to open a new kindergarten at the Ministry of Foreign Affairs, which was established by a cabinet decision on August 17, 2016.
Commissioned by the General Authority for Specialized Inspection (GASI) and the Education Division of Ulaanbaatar city, the kindergarten has three classes with 75 pupils and employs two teachers.
In times of current economic difficulties, the kindergarten has been built with donation money from all servants and employees of the Ministry of Foreign Affairs. Majority of the MFA servants are young experts, so this kindergarten resolves social matters of them. It helps to maximize working productivity of employees, the MFA authorities said.
Mongolians Overseas to Assemble in Ulaanbaatar
Ulaanbaatar, September 1 (MONTSAME) Since the time of the beginning of free travels of Mongolians to foreign countries, Mongolians abroad have been assembling under unity of associations and centers of Mongolian language and culture. The Second Conference of the Overseas Mongolians, NGOs and organizations is taking place in Ulaanbaatar on September 8-10.
Succeeding the first-ever conference of 2014, this year's event is attracting more than 200 representatives from over 120 NGOs and associations.
The Government of Mongolia has a long-standing goal to ensure proper methodologies and materialistic assistances to the Mongolian kindergartens and schools, established in foreign countries, to promote activities of Mongolian unions, and to support Mongolian nationals, who obtained education overseas, through efficient workplaces and offering sustainability in their home country.
Fake tugrik and yuan banknotes seized
September 1 (news.mn) The Mongolian authorities have warned the public about counterfeit 20 thousand tugrik and 100 yuan bank notes which are in circulation. Concern emerged after counterfeit notes were discovered in two banks in Ulaanbaatar. The fake 20000 tugrik note discovered in a branch of the Golomt Bank and the fake 100 yuan in the State Bank yesterday (31th August).
The police authority for the Khan-Uul and Bayangol districts of the capital has launched an investigation to track the source of the fake notes.
UAE citizens caught illegally hunting falcons
September 1 (news.mn) Hunters from the United Arab Emirates (UAE) have been detained by locals while illegally catching falcons in the Khuvsgul Province. They are now waiting for permission to catch 13 falcons from the Ministry of Environment and Tourism of Mongolia.
Mongolian falcon trappers require a Government-issued permit to catch and export the birds and there is an annual quota which in recent years has been reduced from 300 to 240 birds. The price for one falcon is US 11,760.
Rare Footage of Pallas's Cat Cubs in Mongolia's Zoolon Mountains
September 1 (National Geographic) The Pallas's cat is a small, little known wild cat species living in the steppes and mountains of Central Asia. Through a new research initiative "PICA" (Pallas's Cat International Conservation Alliance) launched earlier this year, conservationists are hoping to better understand this feline. The project is still in its early stages, but it has already produced some outstanding, rare footage of Pallas's cats, including video of wild cubs.
The footage (featured at the top of this post) was taken by a set of remote-sensor research cameras stationed in the Zoolon Mountains, in Mongolia's Gobi Gurvan Saikhan National Park. One sequence, shot during the night, shows three Pallas' cat cubs curiously examining the camera, while another snippet features an adult cat in broad daylight looking for signs of other animals.
First Footage of Pallas's Cat Cubs in This Part of Mongolia?
"This is the first footage of Pallas's cat cubs taken in this part of Mongolia as far as we know and is a valuable discovery from our project partners Snow Leopard Trust", says David Barclay, Cat Conservation Officer at the Royal Zoological Society of Scotland (RZSS).
The cameras are part of the new international Pallas's cat conservation project, PICA, founded by the RZSS, Nordens Ark, a Swedish breeding center and zoo Nordens Ark, and U.S.-based conservation organization Snow Leopard Trust that aims to gather more information on the Pallas's cat, one of the world's least-studied felines.
"If we're hoping to conserve this mysterious cat, we need to first understand it, and we're hoping this study will bring valuable new insights." — Emma Nygren, Nordens Ark
"We still don't know much about the Pallas's cat's behavior, or even it's true range," says Emma Nygren, a conservation biologist at Nordens Ark who coordinates the research project. "If we're hoping to conserve this mysterious cat, we need to first understand it, and we're hoping this study will bring valuable new insights."
The Snow Leopard Trust, which has been working in this part of Mongolia for more than a decade, is a technical and logistical partner in the project. "We're surveying these mountains for snow leopards anyway. The Pallas's cat shares the same habitat and is equally elusive, so it's a logical extension of our work to also look at them," says Gustaf Samelius, Assistant Director of Science at the Snow Leopard Trust.
The study, which was made possible by the generous support of Fondation Segré, will continue for at least three years.
Matthias Fiechter is the Communications Manager for the Snow Leopard Trust, a Seattle, Washington-based charity with a mission to conserve the snow leopard and its mountain ecosystem through a balanced approach that considers the needs of local people and the environment.
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How 'The Eagle Huntress' Took to the Air With Drone Photography
Cinematographer Simon Niblett shot the doc in remote parts of Mongolia.
September 1 (The Hollywood Reporter) How do you tell the story of a young girl on the ground and her eagle in the air, set in remote parts of Mongolia, sometimes in sub-zero temperatures?
That was the question for Simon Niblett, director of photography of documentary The Eagle Huntress, which premiered at the Sundance Film Festival and is planned to unspool during the Telluride and Toronto International film festivals before an Oct. 28 release by Sony Pictures Classics.
The Otto Bell-directed documentary narrated by Daisy Ridley of Star Wars: The Force Awakens -- who was an exec producer with others including Morgan Spurlock -- uses ambitious, stimulating cinematography to tell the story of Aisholpan, a 13-year-old girl, as she trains to become the first female in twelve generations of her Kazakh family to become an eagle hunter. Bell, Aisholpan and her parents are scheduled to attend both upcoming festival -- and Aisholpan's eagle will also make an appearance in Telluride.
While there are many Kazakh eagle hunters who reject the idea of any female taking part in their tradition, Aisholpan's father and mentor Nurgaiv believes that a girl can do anything a boy can, as long as she's determined. With this dynamic, the film is both empowering and awe-inspiring as the 13-year-old becomes the first female to compete in the Golden Eagle Festival, facing off against 70 of Mongolia's top Kazakh eagle hunters.
"We wanted to capture as much of the magic and beauty as we could," Niblett says. "But access to that part of Mongolia was limited and we were limited in terms of [budget and] what we could bring. We took the basics but were keen not to leave anything out that would compromise the cinematography."
The film was shot in 2014 and 2015, primarily with a 5K-capable Red Epic digital camera. And Niblett, who additionally operated the camera during filming, also brought a lightweight Blackmagic Pocket Cinema Camera mounted to a DJI drone. "A drone can get you in the air with little effort, time and money; we used it a lot. It was just too good not to use it. It was windy and cold, so we did have some problems, but I don't think we could have made film without it."
The Kazakh hunt with golden eagles, one of the fastest moving animals on earth, capable of reaching speeds of up to 190 miles per hour. These eagles weigh up to 15 pounds and average about 3 feet tall, with wings that can span more than six feet.
Niblett says his documentary background has taught him that in many cases, animals are not bothered by cameras, but admitted "it was a gamble the first tine the drone flew close to the eagle, but the eagle didn't seem bothered by it."
The cinematographer also harnessed a GoPro camera to an eagle, to obtain unique point-of-view shots. And Niblett, who has a knack for building camera gear, also modified a lightweight crane to get his camera an additional 3 meters in the air.
The harsh cold proved the greatest difficulty, both in filming and maintaining the gear. "It's difficult to work work wearing gloves, and you take them off and your hands are frozen in minutes. We also had to keep the batteries warm," Niblett says. "I modified some tire warmers, but it was a catch-22 because you use twice as many batteries. In the van, we used the engine to warm them up. If you left the Blackmagic camera running, the processor would stay warm."
The Eagle Huntress was produced by Stacey Reiss, Sharon Chang and Bell.
Last spring, 20th Century Fox Animation grabbed the rights to remake an animated version of The Eagle Huntress.
Akdong Musician to narrate 'Laws of the Jungle in Mongolia'
September 1 (allkpop) The upcoming season of 'Laws of the Jungle' will be narrated by Akdong Musician!
According to SBS on August 31, Akdong Musician willingly accepted the offer to narrate the season filmed in Mongolia, which is also known as their second hometown.
The first episode of 'Laws of the Jungle in Mongolia' narrated by Suhyun and Chanhyuk airs September 2!
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