EURO KHAN ATTENDED THE WORLD’S
LEADING CONSTRUCTION MACHINERY TRADE FAIR BAUMA 2019
Euro Khan Sales Director Narantsatsralt Tsedendamba
(Tsatsaa) has visited the BAUMA 2019, being held from April 8-14 in Munich,
Germany, together with EK’s clients from Mongolia and introduced the largest
construction machinery fair in the world. During her visit, Ms. Tsatsaa had
business meetings with Euro Khan’s valuable partners, who are participating in
the fair, and discussed current businesses and future projects.
·
·
THE CEO OF EURO KHAN
DR. OLIVER SCHNORR WENT TO FAR WESTERN MONGOLIA FOR A HYDROPOWER PLANT SITE
VISIT FROM APRIL 4-6
When it comes to energy security, western part of
Mongolia is one the most insecure regions among whole
Mongolia. The energy demand is high in this region as it has no
sustainable energy source of its own. Almost 70 percent of the energy of
western 5 provinces is imported from Russia at higher price.
As the developers of the biggest wind power plant,
55 MW Sainshand Salkhin Park, Euro Khan is stepping into a new challenge in
renewable energy sector. This time its hydropower plant project, which could
make western region independent from electricity import.
EK CEO Dr. Oliver Schnorr traveled to Bayan-Ulgii
province to work at the project site and had fruitful meetings with local
governors and officials of respective authorities, who were fully supportive
towards the project.
9TH MINING
& OIL EXPO IS BEING HELD IN ULAANBAATAR, MONGOLIA
Mongolia Mining 2019 International Mining & Oil
Expo is taking place for the 9th consecutive year from 10-12 April 2019 at
Buyant Ukhaa Sports Palace, Ulaanbaatar, Mongolia. The 9th edition of the expo
is featuring traditional mining and emerging oil industries of Mongolia with
exhibitors and visitors representing the industry’s major companies and the
largest number of professionals. In addition, the organizing committee has hold
seminars with guest speakers from the Government and its agencies, academic
scholars, business professionals covering topics including the Government
policy on mineral resource and adapted new laws, mining and infrastructure
projects of Mongolia, the trend and forecast of the industry, and more.
THE SPECIAL PARTNER OF EURO
KHAN HUESKER ASIA PACIFIC PTE LTD’S MANAGING DIRECTOR MR. GRAHAM THOMSON WORKED
IN ULAANBAATAR FOR THE WEEK 15, 2019
Mr. Graham Thomson worked in Ulaanbaatar from April
8-11 and met with potential customers in Mongolia. During his visit, Mr.
Thomson has conducted a training for Euro Khan team and awarded Huesker
certificates to everyone attended.
Economy
·
Mongolia’s foreign exchange
reserves reach 3.7 bln USD by end of Q1
·
BoM launches campaign to
increase gold purchase
·
Mongolia’s foreign trade up 17
pct in Q1
·
Vehicle imports increase 56
percent in Q1
·
EBRD provides fund for
Mongolia’s infrastructure development
·
Soldiers to contribute to Tavan
Tolgoi railway construction
·
Towards a mercury-free future
in Mongolia and the Philippines
·
60,000 Mongolians employed in
small-scale gold mining
·
Project on biodiversity and
climate change to be implemented in some soums
Business
·
Bank of Mongolia announces to
dissolve Capital Bank
·
Rio reveals USD 308 mln tax
bill for Mongolia, USD 6.6 bln world-wide
·
USD 40 million to Standard Bank
from EMC “Reserve fund” zeroes debt
·
High coal price to provide
favorable conditions for ETT investors
·
Eyeing a market recovery,
Chinese companies exhibit at Mongolia’s Int’l Mining & Oil Expo
·
Xanadu scopes 20Mt opencut
operation
·
Mongolian ‘deel’ wins over
dedicated followers of fashion
·
Startup to offer no-premium
health insurance
·
New flour mill with annual
capacity of 40,000 tons opens
ECONOMY
MONGOLIA’S FOREIGN EXCHANGE
RESERVES REACH 3.7 BLN USD BY END OF Q1
Mongolia’s foreign exchange reserves rose to 3.7
billion U.S. dollars by the end of March, the country’s central bank said
Tuesday in a statement carried by its website.
The amount increased by 200 million dollars from the end of 2018, said
Atarbaatar Enkhjin, head of the Reserve Management and Financial Markets
Department at the Bank of Mongolia.
Enkhjin noted that the increase was a result of several factors, including the
implementation of the three-year Extended Funding Facility (EFF) of the
International Monetary Fund (IMF) in Mongolia and higher commodity prices in
the global market.
The three-year IMF program, approved in May 2017, is aimed at stabilizing the
economy and establish a basis for more sustainable and inclusive growth.
The Asian country’s foreign currency reserves have more than doubled since the
start of the program, according to the Bank of Mongolia.
Source: Xinhua
BOM LAUNCHES CAMPAIGN TO
INCREASE GOLD PURCHASE
Mongolia’s central bank on Monday launched a
campaign to encourage gold miners and individuals to sell gold to banks.
“The Bank of Mongolia’s gold purchase has declined sharply since the beginning
of this year due to instability in the domestic tax environment. So, we decided
to again launch a campaign called ‘National Gold to the Fund of Treasures’ to
increase the central bank’s gold purchase,” Atarbaatar Enkhjin, head of the
Reserve Management and Financial Markets Department at the Bank of Mongolia,
said at the campaign’s launch ceremony.
During the six-month campaign, the Bank of Mongolia is planning to organize
activities directed at encouraging gold miners and individuals to sell gold to
banks, said Enkhjin.
The Mongolian central bank purchased only 12.7 tons of gold in 2014. Thanks to
the low royalty taxes on gold with the 2014 amendments, the central bank’s
annual gold purchase almost doubled to 22 tons in 2018.
MONGOLIA’S FOREIGN TRADE UP 17
PCT IN Q1
Foreign trade turnover in Mongolia rose to 17
percent year on year in the first quarter of this year, the Mongolian Customs
General Administration (MCGA) said Tuesday.
According to the MCGA, the Asian country’s foreign trade totaled 3.57 billion
U.S. dollars in the first three months of this year.
The country demonstrated a surplus in its foreign trade balance as exports
exceeded imports by 458.9 million dollars, the MCGA said in a statement.
In addition, a few types of products, including mineral products, cashmere and
hides accounted for around 93 percent of total exports during the period, the
statement said.
Source: Xinhua
VEHICLE IMPORTS INCREASE 56
PERCENT IN Q1
Mongolia’s vehicle imports increased by around 56
percent year on year in the first quarter of 2019, totaling 242.5 million U.S.
dollars, local media reported on Thursday, citing the Mongolian Customs General
Administration (MCGA).
The Asian country imported a total of 19,705 cars in the first three months of
this year, up 41 percent compared to the same period last year, the MCGA said
in a statement, noting that the increase is partly related to an economic
recovery of the country.
In addition, the resource-rich country imported a total of 4,498 heavy trucks
in the first quarter of 2019, up over 14 percent year on year. The rise in
imports of heavy trucks was mainly attributed to expansion in mining activity
and implementation of several major infrastructure projects, according to the
MCGA.
Source: Xinhua
EBRD PROVIDES FUND FOR
MONGOLIA’S INFRASTRUCTURE DEVELOPMENT
The European Bank for Reconstruction and Development
(EBRD) has signed an agreement worth 300 million U.S. dollars with the
Mongolian government to help the country improve its infrastructure, Mongolia’s
Road and Transport Development Ministry said Wednesday.
The loan agreement was signed by Irina Kravchenko, head of the EBRD Resident
Office in Mongolia, and Mongolian Finance Minister Chimed Khurelbaatar here on
Tuesday.
The money will be spent on projects and programs in road and transport and
other infrastructure in Mongolia, including a first-phase construction project
of a two-lane road between Ulan Bator and Darkhan city, the Mongolian Road and
Transport Development Ministry said in a statement.
The EBRD began its operation in Mongolia in 2006. It has since implemented more
than 100 projects worth 1.7 billion U.S. dollars in the country.
Source: Xinhua
See also: General Financing Agreement
signed with EBRD
SOLDIERS TO CONTRIBUTE TO TAVAN
TOLGOI RAILWAY CONSTRUCTION
At its regular meeting today, the Cabinet discussed
a State Policy on railway and issued a resolution. The resolution states that
constructions of a 414 km Tavantolgoi – Zuunbayan railroad and a 267km
Tavantolgoi – Gashuunsukhait railroad will be funded with internal source.
This year, Erdenes Tavan Tolgoi JSC earned profit of over MNT800 billion, of
which MNT750 billion will be spent on purchasing bonds of Ulaanbaatar Railway
JVC to finance Tavantolgoi-Zuunbayan railway project. Moreover, soldiers will
be mobilized for the construction, informed B.Enkh-Amgalan, Minister of Road
and Transport Development.
Tavantolgoi Railway is in charge of the implementation of the 267km Tavantolgoi
– Gashuunsukhait railroad, which is expected to be commissioned in the first
quarter of 2021.
Source: Montsame, The UB Post
TOWARDS A MERCURY-FREE FUTURE
IN MONGOLIA AND THE PHILIPPINES
With twenty per cent of the world’s gold supply
produced by artisanal and small-scale miners, urgent action is needed to reduce
the environmental impact of the sector, as well as to protect the health and
wellbeing of the millions of men, women and children working in the industry,
according to the backers of a new project to reform the artisanal and
small-scale mining (ASGM) sector in Mongolia and the Philippines.
Launching in Ulaanbaatar this week, the $60-million Contribution Toward the
Elimination of Mercury in the Artisanal and Small Scale Gold Mining Sector:
From Miners To Refiners project will work to formalize the sector in the two
countries, supporting miners to access markets for responsible gold, as well as
to move to mercury-free mining and processing. The ASGM sector is the single
largest source of man-made mercury emissions, responsible for the release of as
much as 1,000 tonnes of the element to the atmosphere every year and exposing
millions of miners and processors to potential mercury poisoning.
Source: UN Environment
See also: Elimination of Mercury in
Artisanal and Small-Scale Gold Mining project launches
60,000 MONGOLIANS EMPLOYED IN
SMALL-SCALE GOLD MINING
As many as 60,000 people are employed in artisanal
and small-scale gold mining in Mongolia – one third of the rural workforce –
indirectly supporting another 180,000 people and producing 46 per cent of the
country’s gold output.
UN Environment Chemicals and Health Branch Head Jacob Duer said the GEF GOLD
Mongolia-Philippines project would deliver both global and local benefits,
reducing mercury emissions by 40 metric tons over five years, while tackling
threats to miners’ health, mercury pollution of water sources, and damage to
ecosystems.
Source: News.mn
PROJECT ON BIODIVERSITY AND
CLIMATE CHANGE TO BE IMPLEMENTED IN SOME SOUMS
The Mongolia- Germany joint project titled
‘Biodiversity and Adaptation to Climate Change’ will be carried out in Altai,
Erdene, Tsogt, Bugat and Tonkhil soums of Gobi-Altai aimag, Bayan-Undur and
Shinejinst soums of Bayankhongor aimag, and Altain, Bulgan and Uyench soums of
Khovd aimag through KfW Development Bank of Germany.
Some 70 representatives of the abovementioned soums convened in Altai soum of
Gobi-Altai aimag on April 1-3 to set up a project implementation council. The
meeting devised a project management plan and established the council
consisting of 23 people, and appointed Head of the Environment and Tourism
Department of Gobi-Altai aimag D.Batmagnai as the council’s chair.
Source: Montsame
BUSINESS
BANK OF MONGOLIA ANNOUNCES TO
DISSOLVE CAPITAL BANK
The Bank of Mongolia (BoM) issued an ordinance to
close down Capital Bank of Mongolia and appointed the holding company.
Mr. Batsaikhan, director of the Supervision Department of BoM estimates that
the non-performing loans of Capital Bank have amounted to MNT 208 billion,
which is equivalent to 80 percent of the total loan portfolio.
Deposit and saving accounts of Capital Bank totaled MNT 20 million and have
been insured and guaranteed. Therefore, 99.5 percent of current account holders
and depositors are fully protected from loss. The Savings Insurance Corporation
has decided to issue a compensation payment of the Capital Bank by Khaan Bank based
on the bank deposit insurance law.
Furthermore, the insured and deposit accounts of Capital Bank will be
transferred to Khaan Bank LLC and customers will be able to receive the bank’s
service. For the people who drew loans, payment of the loan and interest will
continue as before.
Source: ZGM Daily
See also: MNT 340 billion was placed in
Capital bank
RIO REVEALS USD 308 MLN TAX
BILL FOR MONGOLIA, USD 6.6 BLN WORLD-WIDE
Mining major Rio Tinto on Tuesday revealed that it
has paid some $6.6-billion in taxes and royalties during 2018, up from the
$5.1-billion paid the year before.
The miner paid some $4.8-billion in royalties and taxes in Australia during
2018, of which $3.17-billion was corporate income tax and $1.45-billion was
royalties.
Australia accounts for nearly half of Rio’s global assets, with the miner
employing more than 19 000 staff in that country alone.
In Canada, Rio paid a further $386-million in royalties and taxes during the
year, along with $332-million in Chile, $331-million in the US, $308-million in
Mongolia, and $146-million and $132-million in Europe and Africa respectively.
“Our overall contribution is far broader than the taxes and royalties we pay,
including direct investment in communities, job creation and significant
investments with suppliers.
“In 2018 alone, Rio Tinto’s direct economic contribution globally was
$42.8-billion, including payments to 37 000 suppliers in over 120 locations,”
said CFO Jakob Stausholm.
Source: MiningWeekly.com
USD 40 MILLION TO STANDARD BANK
FROM EMC “RESERVE FUND” ZEROES DEBT
Today, Deputy Prime Minister U.Enkhtuvshin and
General Director of EMC Kh.Badamsuren made report to the press about Standard
Bank issue. They informed that USD 40 million has been transferred to Standard
bank and debt is zero now. USD 40 million equals to MNT 105 billion and 240
million as of today’s currency exchange rate of Bank of Mongolia.
Deputy Prime Minister U.Enkhtuvshin and General Director of Erdenet Mining
Corporation Kh.Badamsuren made report to the press about Standard Bank issue.
Deputy Prime Minister U.Enkhtuvshin said “Standard Bank claimed USD 51 million
from EMC. And working group made decision to make transfer considering its
risk”.
USD 40 million has been transferred urgently from EMC “Reserve fund”, and
payment has been confirmed by written response. Therefore, accused person shall
be charged and repaid the damage.
By making the payment, conflict between EMC and Standard bank is over.
HIGH COAL PRICE TO PROVIDE
FAVORABLE CONDITIONS FOR ETT INVESTORS
Coal firms are still in demand. The performance of
the new Mongolian Mining Corporation (MMC)’s USD 440 million bond shows it. The
bond has a 9.25 percent interest rate and received a total of USD 740 million
bids for subscriptions. From the same example and with the current high price
of coal, investors are showing interest in purchasing Erdenes Tavan Tolgoi
(ETT)’s shares.
Erdenes Tavan Tolgoi JSC, which has 2.5 million shareholders, plans to hold its
shareholders’ meeting on April 30. The Board’s conclusions on the 2018 annual
report and the annual financial statements will be discussed at the meeting.
The company is also planning to launch IPOs in the global market to raise USD 3
billion.
There are currently 305 companies listed in the Financial Regulatory
Commission, out of which 26 have agreed to disburse dividends of MNT 62.1
billion. ETT has settled to distribute MNT 26,800 per share in dividends to
Mongolian citizens each holding 1072 shares.
Source: ZGM Daily
EYEING A MARKET RECOVERY,
CHINESE COMPANIES EXHIBIT AT MONGOLIA’S INT’L MINING & OIL EXPO
Twenty-six Chinese companies are participating in
the Mongolia Mining 2019 International Mining & Oil Expo, which kicked off
at the Buyant Ukhaa sports complex in the Mongolian capital of Ulan Bator on
Wednesday.
“Our company is participating in the largest mining expo of Mongolia for the
second time. We participated in the event in 2011 for the first time,” Wells Wen,
deputy director of sales department of a Chinese company, H.H. Drill-Tech
Drilling Machinery Co., Ltd, told Xinhua.
“We came back to the expo this year because the Mongolian economy and market
have been recovering,” he added.
This year’s expo, the 9th consecutive year of the exhibit, will feature
traditional mining and emerging oil industries of Mongolia with exhibitors and
visitors representing the industry’s major companies and the largest number of
professionals.
Source: Xinhua
See also: Mongolia Mining 2019 features
traditional mining
XANADU SCOPES 20MT OPENCUT
OPERATION
A scoping study into the Kharmagtai openpit
copper/gold project, in Mongolia, has confirmed the project economics and the
project’s potential to become a robust, high margin, rapid payback and
long-life operation, dual listed Xanadu Mines said.
The scoping study estimated that the 20-million-tonne-a-year project would
require a capital investment of some $683-million, recovering some 86.6% copper
and 70.9% gold.
“The openpit scoping study clearly demonstrates that the Kharmagtai copper/gold
project is one of the leading development assets globally today,” said Xanadu
MD and CEO Andrew Stewart.
“The scoping study indicates the potential to develop a low-strip-ratio openpit
mining operation in an accelerated time frame with rapid payback of the
life-of-mine infrastructure for future openpit and underground mining
operations. Whatever lens you look through, whether it is value, strip ratio,
cost, mine life, production profile or scalability, we believe Kharmagtai has
the potential to be an outstanding project.”
Source: MiningWeekly.com
MONGOLIAN ‘DEEL’ WINS OVER
DEDICATED FOLLOWERS OF FASHION
Mongolia’s national costume, once largely discarded
as a relic of the country’s rustic past, is making a comeback among fashion
lovers who see it as a symbol of national pride, prosperity and urban chic.
The Mongolian deel (pronounced “dale”) is a long tunic made from thick cotton
material with narrow sleeves, a wide belt and a high stiff collar. Its design
reflects the nomadic way of life on the harsh Mongolian steppes, where the need
to keep warm has to be balanced against the practicality required for riding
horses, herding animals and milking cows.
Traditionally, the garment was made with a deep belted pocket on the left to
hold newborn goats and sheep in spring. In recent years, however, the deel has
evolved into a fashion item as Mongolian designers have reworked it in a style
known as nomadic chic.
Source: Nikkei Asian Review
STARTUP TO OFFER NO-PREMIUM
HEALTH INSURANCE
National startup ‘Insur’ offers a new health insurance
system without premium. The system allows to collect health points from daily
purchases and get insurance through the mobile phone.
There are three main ways to collect points. First, it is possible to transfer
the existing loyalty points such as Candy or RedPoint, second, collect points
from daily purchase such as food or gas at the companies that are connected to
the Insur system. Third, increase loyalty points by transferring money.
Insur is not just loyalty points, but the shared loyalty system. Thus, the
companies that don’t offer loyalty programs can give their customers health
points through the system.
It’s remarkable that the company’s valuation reached USD 1 million recently. It
plans to hold the preliminary opening in the second quarter of 2019 and
official launch in the third quarter.
Source: Montsame
NEW FLOUR MILL WITH ANNUAL
CAPACITY OF 40,000 TONS OPENS
‘Usug’ flour mill, which has capacity to grind 120
tons of wheat a day and 40.000 tons of wheat a year with up to date milling
facilities of Alapala factory of Turkey, was opened on April 6.
All types of wheat flour will be manufactured in the flour plant and Ensada
company intends to produce good quality flour, supplying domestic need of
flour. Also, the company have created 80 jobs anew.
Officials led by Minister of Food, Agriculture and Light Industry Ch.Ulaan,
Senior Advisor to Prime Minister B.Enkh-Amgalan and Head of the Mongolian
National Crop Farmers Association, MP J.Enkhbayar attended the opening ceremony
of the flour plant.
Thanks to adopting and implementing ‘Industrialization 21:100’, ‘Healthy
Food-Healthy Mongolian’ national programs, tangible results have being made.
Source: Montsame
