THE BOARD MEETING OF GERMAN
MONGOLIAN BUSINESS ASSOCIATION (DMUV) TOOK PLACE THIS WEEK
The scheduled DMUV board meeting was organized in
Euro Khan LLC office on Thursday, April 25. As usual, the meeting was chaired
by Dr. Oliver Schnorr, the CEO of Euro Khan LLC. The board has reviewed its
activities of the past and discussed future plans. During the meeting, members
also discussed its plan to change statute of the association into chamber.
THE DONATION CEREMONY OF
30 MILLION MNT FOR THE DENTAL TREATMENT OF 120 CHILDREN FROM EURO KHAN LLC
Euro Khan donated 30,000,000 MNT to the Misheel Kids Foundation for the dental treatment of 100 children of the Special Complex for Training and Education of children and youth under the mayor of Ulaanbaatar. The Kids showed their skills in Mongolian traditional singing, dancing and instrument playing. After receiving the donation, Ms. Gabriella Schmidt-Corsitto, founder of Misheel Kids Foundation, awarded Euro Khan a Certificate of Appreciation. The honorary Ambassador from Federal Republic of Germany to Mongolia Mr. Stefan Duppel has also attended the ceremony along with valuable guests invited to the event.
HE JONSHIT TOLGOI FLUORSPAR PROCESSING PLANT SITE VISIT BY EURO KHAN EXECUTIVE TEAM AND FMS
EK executive team along with FMS, 50:50 joint venture of Euro Khan and Fountain Resources, went to Jonshit Tolgoi Fluorspar mine located in Baganuur district to see the progress of the mobilization work started in middle of March. The project agreement was signed in February, 2019. The mobilization work is undergoing successfully according to the plan since its beginning last month.
EURO KHAN MANAGEMENT TEAM
ATTENDED LABOR SEMINAR ON APRIL 19
EK Management Team was given a inhouse training on following
topics:
1. Rights &
obligation of Employer according to Labor safety & hygiene law of Mongolia
2. Labor safety
and hygiene rules, procedures and instructions must be implemented in the
business entities and organizations; (plan/implement/improvement)
3. Insurances :
what kind of health insurance needed from Employer according to labor law of
Mongolia
4. Hiring
foreign Employee
5. Rights and
obligations of Incident investigation commission, required documents for
registering and investigating the incidents, ways to finalizing investigation
conclusion and reporting (The responsibility of the employer for hazardous
acute exposure to accidents)
Economy
·
Liaison offices for customs
clearance established in Tianjin and Mongolia
·
Experts warn of pre-election
year impact on improving economy
·
World Bank recommends healthy
banking system for Mongolian economy
·
Mongolia seeks to diversify
tourism sector to promote growth
·
PM U.Khurelsukh: One percent of
the state budget must be used for disaster risk management
·
National program launched
to improve children’s dental health
·
Teacher development is national
development – Editorial
·
DeFacto Review, April 19 –
Video
Business
·
Oyu Tolgoi crosses USD 9
billion in-country spending
·
Opening bell ceremony conducted
for the IPO of Monos Foods
·
Sailingstone Capital Will Vote
Against Turquoise Hill Resources Independent Directors
·
Golomt Bank named Best
Corporate and Investment bank by Asia Money
·
LehmanLaw: Penalty for
Trademark Infringement
·
Mongol Advocates: Shareholders’
Meetings
·
Russian automaker to start
selling Lada cars in Mongolia by 2020
·
Belarusian Ivatsevichdrev
starts shipping furniture to Poland, Mongolia
·
Autonomous drill rigs, Oyu
Tolgoi recognised in Epiroc awards
ECONOMY
LIAISON OFFICES FOR CUSTOMS
CLEARANCE ESTABLISHED IN TIANJIN AND MONGOLIA
Liaison offices for port customs clearance were
established in northern China’s Tianjin Municipality and Mongolia’s capital
Ulan Bator, according to an ongoing trade fair in Tianjin.
The offices aim to promote economic and trade cooperation between Tianjin and
Mongolia, and were established Thursday.
The two sides also signed projects totaling 80 million yuan (11.93 million U.S.
dollars) at China Tianjin International Fair for Investment and Trade,
according to China’s Ministry of Commerce (MOC).
The offices will help expand bilateral trade between Tianjin and Mongolia and
promote the development of China-Mongolia-Russia Economic Corridor, said T.
Duuren, CEO of Mongolian National Chamber of Commerce and Industry.
Chu Bin, president of Tianjin Port (Group) Co. Ltd., said that about 90 percent
of goods from Mongolia by rail are transported via Tianjin port, and rail
transport between Tianjin and Mongolia has been growing rapidly in recent
years.
Source: Xinhua
EXPERTS WARN OF PRE-ELECTION
YEAR IMPACT ON IMPROVING ECONOMY
Public investment expenses almost tripled compared
to the previous years to MNT 1.2 trillion. As a reminder, the economic growth
slowed down during the three previous parliamentary elections and the MNT rate
declined sharply. Thereby, analysts are being cautious towards the election
that could potentially change the economic and business environment and the
fiscal discipline that is currently improving.
Since 2012, the volume of the economy has expanded and the budget revenue
outreached the trillion mark. As a result of mega projects in the mining
industry, such as Oyu Tolgoi, Mongolia’s economy has developed its basic
structure. Also, public expenditures, revenues, and investments have improved
from the 1990s. The amount of capital that is being allocated from the budget
to rural administrations is reaching billions of MNT. As a result, companies’
investment in the public sector such as schools, kindergartens, hospitals, and
road bidding are becoming more competitive.
Source: ZGM Daily
WORLD BANK RECOMMENDS HEALTHY
BANKING SYSTEM FOR MONGOLIAN ECONOMY
The latest edition of the semiannual ‘East Asia and
Pacific Economic Update, Managing Headwinds’ was presented at World Bank
Country Office in Ulaanbaatar on April 24.
Present at the press conference, there were World Bank’s Country Manager Mr.
Andrei Mikhnev, Senior Economist for Mongolia Mr. Jean-Pascal N.Nganou, and
economists Sh.Altantsetseg and B.Davaadalai.
During the conference, WB’s Country Manager Mr. Andrei Mikhnev and Senior
Economist Mr. Jean-Pascal N.Nganou pointed out, “Having healthy banking system
is the most important to country’s economy. Sustainability of financial sector
is vital to constant economic growth.” “During this favorable period with the
positive economic index, banking sector should not weight down the country’s
economy; thus banks are required to be sufficiently capitalized to make the
sector healthy. It will be a main leverage for further constant economic growth
of Mongolia,” they said.
Mongolia’s economy is projected to have a 7.2 percent growth in 2019.
Source: Montsame
MONGOLIA SEEKS TO DIVERSIFY
TOURISM SECTOR TO PROMOTE GROWTH
Mongolian Prime Minister Ukhnaa Khurelsukh said
Monday that his country is seeking to diversify its tourism sector to promote
the growth of its mining-dependent economy.
“Tourism can be a key driver of growth and economic diversification for the
country. So, the government is working to develop heritage tourism and other
types of tourism,” Khurelsukh said at the opening ceremony of a national
conference themed “Heritage Tourism-Investment.”
The Mongolian government has declared Khentii Province in the east as a
heritage tourism destination, Khuvsgul Province in the northwest as a tourist
attraction that focuses on nature and the capital city of Ulan Bator as a
cultural tourism destination, the prime minister said.
Within the framework of its efforts to develop heritage tourism, the government
has recently decided to establish an independent institute for Genghis Khan
research in Khentii Province.
Mongolia has set itself the goal of welcoming one million foreign tourists and
earning one billion U.S. dollars from tourism in 2020.
Source: Xinhua
NATIONAL PROGRAM LAUNCHED TO
IMPROVE CHILDREN’S DENTAL HEALTH
Mongolia on Monday launched a national program to
provide children with dental check-ups and treatment free of charge.
“Tooth decay is the most prevalent chronic disease among Mongolian children,”
said Mongolian Health Minister Davaajantsan Sarangerel at the launching
ceremony of the program.
The “Healthy Teeth and Healthy Children” program is aimed at developing good
oral hygiene and health habits, as well as helping avoid tooth decay and
periodontal disease by providing regular dental check-ups and treatment, said
Sarangerel.
In the first phase of the five-year program, more than 200 selected dental
clinics across the country will provide children aged 2-6 with dental check-ups
and treatment free of charge, the health minister said.
The government will allocate money to implement the program, which will cover a
total of 725,000 children aged between 2-12 across the country, she added.
Government data show 80-90 percent of children aged 2-12 suffer from dental
decay, which has compelled the government to start the program.
Source: Xinhua
PM U.KHURELSUKH: ONE PERCENT OF
THE STATE BUDGET MUST BE USED FOR DISASTER RISK MANAGEMENT
Opening of the first comprehensive disaster
protection training, being organized by the Governor’s Office of the Capital
City and National Emergency Management Agency (NEMA) in the capital city, took
place at the Sukhbaatar square today on April 24.
PM U.Khurelsukh, Ministry of Construction and Urban Development Kh.Badelkhan,
Governor of the Capital City and Mayor of Ulaanbaatar City S.Amarsaikhan, Chief
of NEMA, Major General T.Badral, Deputy Minister of Defense T.Dulamdorj and
other corresponding officials, representatives of government and non-government
organizations, and citizens attended the event.
In his opening remarks, Prime Minister U.Khurelsukh said, “The comprehensive
disaster protection training is being organized for the first time after 29 years.
The training aims to enhance disaster preparedness of organizations and
entities, improve citizens involvement and their abilities. There are number of
buildings in the seismic active region of Ulaanbaatar city that have been
deemed unsafe. The issue should be re-studied during the course of the training
and appropriate step-by-step measures must be taken.
DEFACTO REVIEW, APRIL 19 –
VIDEO
Highlights of the week:
1. A look at partial freedom of
Mongolia’s Press
2. How safe are Ulaanbaatar’s
construction sites?
3. What would it take to lower
interest rates in Mongolia?
Source: Jargal DeFacto
TEACHER DEVELOPMENT IS NATIONAL
DEVELOPMENT – EDITORIAL
After a 23-year pause, the Mongolian Teachers
Conference is being organized. Over this period of time, which is a whole
generation from a demographic point of view, Mongolia’s education sector has evolved
significantly in its framework, legal environment, structure, and training
curricula. Simultaneously, Mongolia’s population has grown to 3.2 million. If
we look back, we have changed our law on education 24 times in the last 16
years, which brings the total number of rewritten clauses to 300. It shows how
unstable our education policy has been over the years, and prompts us to take a
moment to reflect on the past and plan for the future.
As of the 2018/2019 academic year, Mongolia has a total of 803 secondary
schools, 80 per cent of which are public and the remaining 20 per cent of which
are private. High schools comprise 70 per cent of the public secondary schools
and 80 per cent of private ones.
Source: Jargal DeFacto
BUSINESS
OYU TOLGOI CROSSES USD 9
BILLION IN-COUNTRY SPENDING
Oyu Tolgoi released the latest edition of its
scorecard on April 23rd, providing its performance for Q1’2019.
In March, as a best industry practice not only in the country but also
internationally, Office of the Compliance Advisor Ombudsman (CAO) of the World
Bank Group formally closed its dispute resolution process related to the
complaints by the herders residing and raising livestock near the Oyu Tolgoi
mine site. Parties successfully reached agreement, news celebrated and shared
across local and mining community. Experience of the process was shared with
Khanbogd soum Tripartite Council and CAO on March 25th.
Oyu Tolgoi paid US$2.4 billion in taxes, fees and other payments to the
Government of Mongolia between 2010 and 2019, including, US$57.7 million in
taxes and US$28 million in VAT* in the first quarter of 2019.
Source: Oyu Tolgoi
OPENING BELL CEREMONY CONDUCTED
FOR THE IPO OF MONOS FOODS
To honor the occasion of the primary market opening
of ‘Monos Foods’ JSC’s IPO, Ms.Davaasuren, Chairwoman of FRC,
Mr.Munkhbaysgalan, Head of Regulatory Department of Mongolian Stock Exchange,
Mr.Khurelbaatar, President of ‘Monos Group’ LLC, Mr.Anand, CEO of ‘Monos Group’
LLC, Ms.Otgondari, CEO of ‘Monos Foods’ JSC, and Mr.Munkhjargal, CEO of ‘Golomt
CapitaI’ LLC, visited Mongolian stock exchange and rang the bell to start the
5,956th securities trading of MSE.
Monos Foods JSC, represents the first health industry company to list on the
MSE. The company is offering its 30 percent or 122.6 million shares of
its total outstanding shares for MNT 70.0 per share and aiming to raise MNT 8.6
billion for expanding business operations. The subscription will be received
through MSE’s all member brokerage companies during the period between April
22, 2019 and May 03, 2019.
Source: Mongolian Stock Exchange
SAILINGSTONE CAPITAL WILL VOTE
AGAINST TURQUOISE HILL RESOURCES INDEPENDENT DIRECTORS
SailingStone Capital
Parters announces that it has written an open letter to Turquoise Hill
Resources shareholders informing them that SailingStone intends to vote AGAINST
the independent directors of TRQ at the May 14, 2019 Annual Meeting.
A copy of the letter can be found at www.sailingstonecapital.com/resources.html
MacKenzie Davis, Managing Partner at SailingStone, said, “We have long been
troubled by corporate governance practices at TRQ, and have worked diligently
with the Board to attempt to address these issues. Unfortunately, the Board has
refused to engage in productive dialogue, and we are left with no choice but to
vote AGAINST the independent directors. This is not a decision which we have
entered into lightly, given our significant investment and our long-term
commitment to the Company. But, the fact remains that this is a world class
asset that deserves world class corporate governance practices so that all
stakeholders – Rio Tinto, the minority shareholders and the people and
government of Mongolia – are aligned to achieve success at both the project and
the corporate level.”
Source: SailingStone Capital
GOLOMT BANK NAMED BEST
CORPORATE AND INVESTMENT BANK BY ASIA MONEY
The ‘Asia Money’ magazine has selected Golomt Bank
as the ‘Best Corporate and Investor Bank’ in 2018 for its status as leading
corporate bank serving more than 80 percent of Mongolia’s largest companies,
many of which are all-purpose conglomerates with interests ranging from
telecoms and food production to construction and mining.
Golomt bank executed the payments and settlements of 75 percent of iron ore and
ore concentrate exported nationally, 45 percent of fluorspar, 45 percent of
coal exports and 68 percent of all gold exported in year 2018.
Founded in 1995, Golomt has consistently maintained its status as a stable
lender supporter of systemic value industries in Mongolia. Over the years the
banks has financed important mining, construction, production and service
projects and as a result, the development of the Oyu Tolgoi Project and the New
Ulaanbaatar International airport projects are being implemented with
international standards, advanced technology and better health and safety
solutions.
Source: Montsame
LEHMANLAW: PENALTY FOR
TRADEMARK INFRINGEMENT
This article aims to give an overview concerning the
trademark infringement in Mongolia and the difference between the infringement
and the crime. Pursuant to Article 12.3 of the Law on Trademarks and
Geographical Indications of Mongolia, a trademark owner is entitled to
exclusive ownership, usage rights, and legal right to demand cessation of
unauthorized use, along with monetary damages in compensation for infringing
use.
In Mongolia, the violation of trademark ownership rights is addressed in both
the Law of Infringement and the Criminal Code of Mongolia, meaning trademark
infringement may carry both civil and criminal penalties. As described below,
the sanctions set out in these laws differ and the infringement of the
trademark owner rights is relatively low compared to the crime:
According to the Law on Infringement, violation of a trademark owners legal
rights may result in seizure of property and profits related to the
infringement, closure of the infringing operations, and compensation of damages
to the trademark owner.
Source: LehmanLaw Mongolia
MONGOL ADVOCATES: SHAREHOLDERS’
MEETINGS
A shareholders’ meeting is the highest governing
authority of a company in Mongolia. A shareholders’ meeting may be either
regular or special. The shareholders’ meeting shall be convened after no less
than forty (40) days after the decision has been adopted.
The regular shareholders’ meeting shall be called by the Board of Directors (in
its absence the executive body) and held within four (4) months following the
end of each fiscal year of a company. If a regular shareholder meeting is not
called and held within the period specified in law on Company, the authority of
the Board of directors (in its absence, the executive body) provided by this
law and the company charter except for the authority to call the shareholders’
meetings shall terminate. And any agreements or transactions entered into after
the termination of the authority of the Board of Directors (in its absence, the
executive body) shall be invalid.
Source: Mongol Advocates
RUSSIAN AUTOMAKER TO START
SELLING LADA CARS IN MONGOLIA BY 2020
The Russian automobile producer AutoVAZ will start
selling Lada Xray Cross, Largus, Lada 4×4 and Granta models on the primary
market in Mongolia, press service of the Russian embassy in Ulaanbaatar told
TASS on Friday, citing a source in the company.
Sales will be implemented in accordance with the agreement made by the company
with Mongolia’s Russo Motors, which will deal with promotion of the Russian car
brand in Mongolia.
AutoVAZ is going to capture 15% of the Mongolian primary car market in a short
term, the company said in a press release. The Russian automaker expects to be
successful because its cars “are prepared for extreme weather conditions and
challenging roads in Mongolia,” AutoVAZ noted.
The Russian company will also provide repair services and support delivers of
all required auto parts to the country.
AutoVAZ is the largest carmaker in Russia, which produced over 560,000
automobiles in 2018.
Source: TASS
BELARUSIAN IVATSEVICHDREV
STARTS SHIPPING FURNITURE TO POLAND, MONGOLIA
The Belarusian company OAO Ivatsevichdrev opened two
new markets in January-March 2019, the company’s Director General Aleksandr
Ilnitsky told BelTA.
According to the source, the company started cooperating with a major furniture
retail chain in Poland. The first batch of merchandise was shipped. The company
also exported the first container full of furniture to Ulaanbaatar, Mongolia.
“We’ve selected modular sets of furniture from our collections in order to
assess consumer demand. Shipments to Mongolia became possible thanks to
participation in the IMM Cologne 2019 fair,” Aleksandr Ilnitsky said.
According to the company CEO, furniture manufacturing is a promising area for
export. In January-March 2019 furniture export rose by 110% in comparison with
the same period of last year. Ivatsevichdrev furniture is regularly shipped to
Russia, Latvia, Kazakhstan, and the USA. The company works hard to penetrate
new target markets. In particular, the company has signed a contract to deliver
furniture to Spain and intends to ship the first batch to the customers sometime
in June.
Source: BelTA.by
See also: Export loan to help Mongolia
buy Belarusian machines, vehicles, equipment
AUTONOMOUS DRILL RIGS, OYU
TOLGOI RECOGNISED IN EPIROC AWARDS
Epiroc’s first annual awards have recognised close
customer collaboration in Mongolia and innovative autonomous drill rigs in
Australia.
Its “United in Performance Award” honours exceptional customer collaboration,
the company said. This inaugural award is presented to Anders Berglund, Bayar
Torguud, Batzorig Jamsranjav and Alf Lawrence at Epiroc’s Customer Center in
Mongolia, as well as to mining company Oyu Tolgoi LLC.
“Their far-reaching collaboration is boosting productivity and safety at Oyu
Tolgoi’s major copper mine,” Epiroc said. “With the mine located remotely in
the South Gobi desert, Epiroc has developed strong local service capabilities,
yielding customer benefits such as on-time spare parts delivery. The companies
are emphasising safety and diversity and they have successfully worked together
to recruit more women as equipment operators and service technicians.”
The Inspired by Innovation Award, meanwhile, recognises Epiroc’s most
innovative technical development that has had a proven commercial success.
Source: im-mining.com
