“RESPONSIBLE AND INNOVATIVE
APPROACH FOR MINING AND ENERGY SECTOR”
EK workshop successfully organized on September 4 at
Blue Sky Hotel.
Our partners including TAKRAF, VEOLIA KOREA, and CFT gave a presentation and
introduce their products and services to more than one hundred honorable guests
of Mongolian Mining, Energy, Environmental sectors and state agencies.
The audiences were highly driven to discuss and
looking for solutions for their critical issues during the panel discussion
session. Based on market compelling need, we will organize this workshop
annually and become a bridge between high-end technology solutions to the
Mongolian Mining and Energy sector.
EK ATTENDED COAL MONGOLIA
Mongolia’s biggest coal trade and investment
conference and exhibition “Coal Mongolia-2019” is being organized for the 9th
year on September 5-6 at Shangri-La Hotel in Ulaanbaatar under the motto “Lead
the market”. Minister of Mining and Heavy Industry of Mongolia D.Sumiyabazar
informed it when he addressed the opening of the ninth Coal Mongolia 2019.
Minister D.Sumiyabazar also pledged to provide policy
support for mining companies who are engaged in environment friendly and
responsible mining activities and job employment growth and to firmly fight any
illegal activities in this regard.
Our partners including TAKRAF Sales Manager Asia Mr.
Lothar Schmeier and CFT Area sales director Michael Kurten representatives
attended forums while introducing their products and services to potential
clients and visitors.
HUESKER REPRESANTATIVE VISITED
EK
As with second visit of HUESKER Asia Pacific Pte Ltd
Managing Director Mr. Graham Thomson this week, EK team organized meetings with
local authority responsibilities and clients who implementing dedicated
projects for local developments and shared HUESKER experiences and specialties
in geosynthetic materials.
The sales team planned next steps on how to involve
in projects such as asphalt road construction project in South Gobi province,
and working on dewatering solutions in urban areas.
EK AND FMS FUNDRAISING
EK fundraised for our daughter
company FMS worker Batkhishig to attend Berlin Marathon who will attend the marathon tournament in Germany in September.
Besides his disability, Batkhisiig has a heart of gold and inspiration to
motivate colleagues in a such young age. We wish all the best and hope he will
successfully complete the marathon.
Economy
·
Government debt falls to 54.5 percent of GDP
·
Tax revenue reaches MNT 6.2 trillion as of first eight months of 2019
·
Amount of outstanding loans to entities decreases by MNT 23 billion
·
Exports of mineral products, textiles and precious metals make up 95.7
percent of total export
·
Mongolia produces 50 percent of enhanced coal consumption
·
Government of Mongolia, ADB Promote Private Sector Opportunities
·
Khovd Province to partner with Korea Tourism Organization
·
Decreases seen in extraction of molybdenum concentrate and gold
·
Responsible mining codex developed
·
Mattia Romani: Mongolia’s been excellent partner for EBRD – Interview
Business
·
Mongolia-China expo seeks possibilities to bolster partnership
·
Mongol Basalt’s trade reaches MNT 886 million at MSE
·
More Than Mining: Forbes Mongolia Editor Upbeat About Business With China
·
FIABCI Mongolia Chapter inaugurated
·
Aspire Mining repositioning to deliver early production through USD 33.5
million investment
·
Petro Matad presents update on the Heron-1 well
·
Well Known Trademarks in Mongolia
·
Is Mongolian Mining Corporation’s CEO Paid At A Competitive Rate?
·
Rio Tinto ‘playing catch-up for decisions of the past’ – Editorial
ECONOMY
GOVERNMENT DEBT FALLS TO 54.5
PERCENT OF GDP
In the first half of 2019, the Government debt
reached 54.5 percent of GDP at the present value. It is a decrease of 4.4
percentage points from late 2018.
The government paid MNT 702 billion to debt in the first half of this year. Of
these, MNT 265 billion were principal payments and MNT 437 billion were
interest payments, according to the Ministry of Finance. As a result, the
volume of government debt in the gross domestic product has decreased.
The Government aimed to reduce the debt to 55.3 percent of GDP when approving
this year’s budget. Also, the Government managed to reduce interest expense by
raising equity management and redeeming higher-rate securities over time. As
estimated, one out of MNT 13 of 2019 budget expenditure will be spent on
interest rate payment. In the upcoming years, high-yield foreign debt is
expected to be a major challenge for the Government and the Bank of Mongolia
(BoM).
Source: ZGM Daily
See also: Mongolia’s foreign debt
reaches 220 percent of GDP
TAX REVENUE REACHES MNT 6.2
TRILLION AS OF FIRST EIGHT MONTHS OF 2019
In the first 8 months of 2019, total equilibrated
revenue and grants of the General government budget amounted to MNT 6.9
trillion and total expenditure and net lending amounted to MNT 6.3 trillion, resulting
a surplus of MNT 549.7 billion in the equilibrated balance.
In August 2019, equilibrated revenue and grants of the General government
budget reached MNT 841.2 billion, decreased by MNT 293.4 billion or 25.9% from
the previous month whereas, total expenditure and net lending reached MNT 826.8
billion, increased by MNT 35.3 billion or 4.5% from the previous month.
In the first 8 months of 2019, tax revenue reached MNT 6.2 trillion, increased
by MNT 1104.8 billion or 21.5% compared with the same period of previous year.
General Government budget revenue was comprised of 81.3% of tax revenue, 8.2%
of non-tax revenue, 10.0% of the future heritage fund and 0.5% of the
stabilization fund.
Source: Montsame
AMOUNT OF OUTSTANDING LOANS TO
ENTITIES DECREASES BY MNT 23 BILLION
At the end of August 2019, the principals in arrears
amounted MNT 982.4 billion, showing an increase by MNT 103.8 billion (11.8%)
from the previous month, while it shows a decrease by MNT 36.1 billion (3.5%)
from the same period of previous year. The principals in arrears makes up to
5.4% of total loans, showing an increase of 0.6 points from the previous month,
while it shows a decrease of 1.0 points from the same period of previous year.
At the end of July, the outstanding loans to individual in arrears amounted MNT
12.1 trillion, decreased by MNT 8.0 billion (0.1%) from the previous month, but
increased by MNT 1.8 trillion (17.7%) from the same period of previous year.
From the total loans to individuals 37.2 percent was mortgage loans, 27.4
percent was salary loans, 13.1 percent was small and medium enterprises loans,
10.1 percent was consumer loans, 6.7 percent was pensions and 5.5 percent was
other loans.
Source: Montsame
EXPORTS OF MINERAL PRODUCTS,
TEXTILES AND PRECIOUS METALS MAKE UP 95.7 PERCENT OF TOTAL EXPORT
In the first 8 months of 2019, Mongolia traded with
143 countries from all over the world and total trade turnover reached USD 9.5
billion, of which USD 5.4 billion were exports and USD 4.1 billion were
imports. In August 2019, exports and imports reached to USD 815.6 million and
USD 584.0 million, respectively. Compared to the previous month, exports
increased by USD 183.1 million and imports decreased by USD 29.4 million.
In the same period of 2019, total foreign trade turnover increased by USD 1.0
(11.9%) billion, of which exports increased by USD 715.8 million (15.3%) and
imports increased by USD 289.2 million (7.6%) compared to the same period of
previous year.
In the first 8 months of 2019, foreign trade surplus reached USD 1.3 billion,
which increased by USD 426.6 million from USD 869.2 million in the same period
of 2018. In August 2019, foreign trade surplus reached to USD 231.6 million.
Source: Montsame
MONGOLIA PRODUCES 50 PERCENT OF
ENHANCED COAL CONSUMPTION
Tavan Tolgoi Tulsh (TTT) LLC has produced 50 percent
of the total demand for enhanced fuel this year, according to the Executive
Director of TTT.
The use of this type of fuel is expected to decrease air pollution by 40-50
percent in Ulaanbaatar in 2019-2020. The Government of Mongolia has prohibited
raw coal from Ulaanbaatar in May.
“Households will use enhanced fuels to substitute coal. Production of the fuel
is in line with the plan, and quality check is being carried out regularly,”
said spokesman for the Air Pollution Reduction Department of Mongolia.
Users will use a smart card called “Good” to buy enhanced coal. Each card will
have the possibility to purchase three tons of fuel, and citizens will be able
to purchase the fuel using the retailer’s application and the basic limit of
the card diminishes. If the limit runs out, TTT will be able to re-validate its
claims.
Source: ZGM Daily
See also: 180 sales points of refined
coal contracted
GOVERNMENT OF MONGOLIA, ADB
PROMOTE PRIVATE SECTOR OPPORTUNITIES
The Asian Development Bank (ADB) and the Ministry of
Finance of Mongolia co-hosted a private sector opportunities workshop today in
Ulaanbaatar, which was attended by over 150 local and foreign private sector
companies operating in the country.
Representatives from ADB’s private sector teams on infrastructure,
agribusiness, health and education, and early stage ventures presented on
relevant case studies, eligibility criteria, typical financing modalities and
terms, and application processes for ADB’s financing. ADB Ventures helps
early-stage companies scale technology in Asia and the Pacific for sustainable
development impact. ADB discussed potential future collaboration with selected
companies during in-depth one-on-one sessions.
“The growth of Mongolia’s private sector is very much aligned with ADB’s new
long-term corporate strategy, Strategy 2030, where ADB aims to increase its
private sector operations to reach one-third of its operations by 2024,” said
Advisor at ADB’s Private Sector Operations Department Ms. Hisaka Kimura.
Source: ADB
KHOVD PROVINCE TO PARTNER WITH
KOREA TOURISM ORGANIZATION
The Korea Tourism Organization of the Republic of
Korea (KTO) is to implement a non-refundable development assistance project in
Khovd aimag.
With aims to develop sustainable, environmentally friendly tourism based on the
way of living of the aimag citizens, a sub programme is currently being
implemented. In the framework of the programme, festivals and events, such as
‘Tea Road’ heritage festival, are regularly organized in summer and winter in
order to comprehensively promote national festivals, heritage, customs and way
of life of ethnic groups to domestic and foreign tourists, which resulted in an
increasing number of tourists to Khovd aimag with 7,100 foreign tourists and 39
thousand domestic tourists visiting in 2018.
Governor B.Dugerjav received the Director of KTO Mongolia Office Park
Jung-woong to discuss further development of partnership during his working
visit in the aimag. During the meeting, the sides came to the decision to
implement a non-refundable development project through the Korea International
Cooperation Agency in Khovd aimag from 2020.
Source: Montsame
DECREASES SEEN IN EXTRACTION OF
MOLYBDENUM CONCENTRATE AND GOLD
In the first 8 months of 2019, the gross industrial
output reached MNT 11.4 trillion, showing an increase of MNT 1.5 trillion
(15.5%) from the same period of previous year. This increase was mainly due to
an increase of mining and quarrying gross output by MNT 1.2 trillion (17.2%),
of which mining of coal increased by MNT 1.2 trillion (49.2%) and mining of
metal ores increased by MNT 60.0 billion (1.5%).
In August 2019, the gross industrial output reached MNT 1.6 trillion and
increased by MNT 135.5 billion (9.3%) compared to the previous month.
In August 2019, the seasonally adjusted industrial production index was 176.2
(2010=100), increased by 11.5% from the same period of previous year, whereas,
it is decreased by 1.6% from the end of previous year and by 0.5% from the
previous month.
Source: Montsame
RESPONSIBLE MINING CODEX
DEVELOPED
A responsible mining codex was developed aimed at
supporting and development of good examples of responsible mining and ensure
sustainable development of the mining industry, and currently some 8 business
entities have signed it voluntarily including Erdenet Mining Corporation and
Oyu Tolgoi LLC.
Minister of Mining and Heavy Industry of Mongolia D.Sumiyabazar informed it
when he addressed the opening of the ninth Coal Mongolia 2019 coal trade and
investment forum held in Ulaanbaatar on September 5 and 6. Minister
D.Sumiyabazar also pledged to provide policy support for mining companies who
are engaged in environment friendly and responsible mining activities and job
employment growth and to firmly fight any illegal activities in this regard.
He introduced that the mining industry, playing a vital role in the economic
development of Mongolia and constitutes 24 percent of the country’s GDP, 72
percent of the total industrial production, 87 percent of export products and
75 percent foreign direct investment.
Source: Montsame
MATTIA ROMANI: MONGOLIA’S BEEN
EXCELLENT PARTNER FOR EBRD – INTERVIEW
The Official Gazette sat down
with Mr. Mattia Romani, Managing Director of Economy, Policy, and Governance at
the European Bank for Reconstruction and Development (EBRD). He talked about
EBRD’s projects in Mongolia and possibilities to change the policy in a
particular sector.
-The European Bank for Reconstruction and
Development is one of the major investors of Mongolia. What further projects
EBRD is planning to implement in the country?
-I am happy to say that we have projects across all sectors in Mongolia. We
started working with SME’s but now expanded to infrastructure, especially
renewable energy sector. And of course, we invest quite a lot in financial
institutions as well. Across the board, we have now quite a balanced project
activities in the country.
Source: ZGM Daily
BUSINESS
MONGOLIA-CHINA EXPO SEEKS
POSSIBILITIES TO BOLSTER PARTNERSHIP
The 3rd Mongolia-China Expo, a large-scale
international exposition jointly launched by the governments of Mongolia and
China, took place on September 6-10, 2019 at Hohhot City and Ulanqab City of
Inner Mongolia Autonomous Region, allowing entrepreneurs to start and maintain
their partnership. The theme of the expo was “Construct the China-Mongolia-Russia
Economic Corridor, Promote Northeast Asia Regional Cooperation”.
During the expo, 15 projects of the Mongolian Government, 50 projects of
private entities were presented to investors. The total cost of these projects
is estimated at CNY 41 billion, according to the National Development Agency of
Mongolia. Projects of food, agriculture, and light industry accounted for
almost 50 percent of all projects.
The expo which takes place every two years aimed to leverage the geographical
advantages and special industrial resources in Northeast Asia, promote business
exchanges and cooperation, and to contribute to the Belt and Road Initiative.
Source: ZGM Daily
See also: Mongolia’s major projects
introduced at Mongolia-China Expo
Mongolian-Chinese
scientific institutes signed 13 memorandums
MONGOL BASALT’S TRADE REACHES
MNT 886 MILLION AT MSE
MSE tier-II listed Mongol Basalt JSC’s shares worth
MNT 886 million were traded at the secondary market. As of August, foreign
investors account for 80 percent of the Mongol Basalt’s trade. There has been a
sharp rise in foreign investors’ activeness over the last four months. Also, it
has the largest number of foreign investors among the companies that launched
an IPO in 2017.
According to analysts, the investor’s structure changes and long-term investors
will be the key to further the stock price increase. They estimate that the
share of the company is expected to reach MNT 376.8 by the end of December.
Currently, the company’s stock price has risen 17.4 percent, to MNT 309.99 from
the beginning of 2019.
In the first half of 2019, sales revenue increased by 74 percent compared to
the same period of the previous year, triggering the earnings per share to
reach MNT 2.19.
Source: ZGM Daily
MORE THAN MINING: FORBES
MONGOLIA EDITOR UPBEAT ABOUT BUSINESS WITH CHINA
At a time of uncertainty about the business outlook
between the world’s two largest economies – the U.S. and China, optimism
endures about the Asia-Pacific region as a whole. The Asian Development Bank
said in a new report on Tuesday, for instance, the Asia-Pacific’s share of
global gross domestic product surpassed one third in 2018. “The Asia and
Pacific region is increasing its strong contribution to the global economy,”
said ADB Chief Economist Yasuyuki Sawada in a statement.
Mongolia, with a population of about three million – approximately one eighth
that of the city of Shanghai alone, doesn’t often get the same attention as
larger Asian economies such as Japan or China, but its economy is also doing
well. GDP in the landlocked nation is likely to grow by more than 6% this
year, Forbes Mongolia Editor-in-Chief Tsetsegsuren B. said during a visit to
Forbes China in Shanghai on Tuesday.
Source: Forbes
FIABCI MONGOLIA CHAPTER
INAUGURATED
The International Real Estate Federation (FIABCI)
Mongolia Chapter commences in Ulaanbaatar, Mongolia for the first time,
becoming a part of Global family.
FIABCI Mongolia Chapter will work for bringing sustainable changes in the real
estate industry in Mongolia by expanding its global professional network,
having our privilege to enhance our professional skills and building
businesses, said Batbaatar Narantuya, Chapter President.
Moreover, FIABCI Mongolia Chapter is planning to focus on protecting the
interest of real estate professionals, organizing various educational courses,
granting a professional license to agents, introduce real estate related law to
the public, and in terms of building the strong foundation of the real estate
related legal environment in Mongolia by working with government and
ministries.
Founded in 1951 in Paris, FIABCI is a worldwide business networking
organization for all professionals associated with the real estate industry. It
has provided access and opportunities for real estate professionals interested
in gaining knowledge, sharing information and conducting international business
with each other.
Source: ZGM Daily
ASPIRE MINING REPOSITIONING TO
DELIVER EARLY PRODUCTION THROUGH USD 33.5 MILLION INVESTMENT
Aspire Mining Ltd is confident of delivering early
development of the Ovoot Coking Coal Project in Mongolia after entering an
agreement with a prominent Mongolian entrepreneur which includes a $33.5
million investment.
A Share Subscription Deed with major substantial shareholder, Tserenpuntsag
Tserendamba, will result in a strategic repositioning for the Mongolian
metallurgical coal and infrastructure company.
If approved by shareholders, Mr Tserenpuntsag’s proposed $33.5 million
investment will provide Aspire with a significantly strengthened financial
position as project financing discussions continue.
This would see Mr Tserenpuntsag will increase his investment in Aspire from
27.5% to emerge as a 51% shareholder.
Aspire’s executive chairman David Paull said: “This funding not only provides
important equity capital but also significant in-country support and assistance
with future project financing.
“It is an important recognition by Mr Tserenpuntsag of the value inherent in
the Ovoot Early Development Plan (OEDP).”
Source: Proactive Investors, ZGM Daily
PETRO MATAD PRESENTS UPDATE ON
THE HERON-1 WELL
Heron-1 well in Block XX, eastern Mongolia, had
presented encouraging results and would be subject to a testing program,
according to the update of Petro Matad Ltd, Mongolian oil explorer
The well been drilled to a total depth of 2960 meters with the top Lower
Tsagaantsav reservoir, the primary target for the well, encountered at 2803
meters, 5 meters shallower than the pre-drill prognosis. Oil and gas shows were
recorded over this interval and on the basis of the drilling data, the gross
reservoir interval in Heron-1 appears to be very similar to the productive
reservoirs found in oil wells immediately to the north in Block XIX.
Wireline logs have been acquired and analysis of these data supports the
interpretation of a 77-meter gross interval of a potential oil reservoir.
Source: ZGM Daily
WELL KNOWN TRADEMARKS IN
MONGOLIA
In case of a dispute in connection to the unfair
competition and conflict of interests of your trademark, the trademark owner is
entitled to apply a request for declaration of your mark as well-known in
Mongolia him/herself or through representation of an authorized intellectual
property agent to the Dispute Settlement Committee of the Intellectual Property
Office of Mongolia.
For this purpose, the trademark owner shall file an application only in
relation to one trademark and such request shall include, aside from providing
basic personal and business information on the applicant and/or the authorized
intellectual property agent, following information:
·
Description
of the trademark for the declaration as well-known mark;
·
The
name list of the well-known trademark product and services;
·
The
date of the trademark declaration as well-known;
·
The
status of the intellectual property rights of that particular trademark in
Mongolia;
·
The
justification/reasons for declaration of trademark as well-known mark along
with their proofs and evidences.
Source: LehmanLaw Mongolia
IS MONGOLIAN MINING
CORPORATION’S CEO PAID AT A COMPETITIVE RATE?
In 2008 Battsengel Gotov was appointed CEO of
Mongolian Mining Corporation. This report will, first, examine the CEO
compensation levels in comparison to CEO compensation at companies of similar
size. Then we’ll look at a snap shot of the business growth. And finally we
will reflect on how common stockholders have fared in the last few years, as a
secondary measure of performance. This process should give us an idea about how
appropriately the CEO is paid.
According to our data, Mongolian Mining Corporation has a market capitalization
of HK$967m, and paid its CEO total annual compensation worth US$956k over the year
to December 2018. We think total compensation is more important but we note
that the CEO salary is lower, at US$616k. We looked at a group of companies
with market capitalizations under US$200m, and the median CEO total compensation
was US$241k.
Source: SimplyWall.st
GOBI CHIEF SALES OFFICER: GOBI
OFFERS LUXURIOUS CASHMERE PRODUCTS TO THE EUROPEAN MARKET AT AFFORDABLE PRICES
– INTERVIEW
Gobi Cashmere is to launch
their store at the Mall of Berlin, the biggest shopping center in Berlin, on
October 1. Accordingly, we interviewed Zolboo Tsegmed, chief sales officer of
the European market at Gobi .
That means there is a huge competition in the
European market. How do we distinguish Mongolian cashmere from major global
brands there? Why should they choose to buy Mongolian cashmere?
Competition is very high in the cashmere world for sure. High quality would be
the very first factor that distinguishes Gobi cashmere from other brands.
Secondly, we are not interested in competing with the high end, expensive
brands, neither with the other brands that set their bar at a lower position.
We are confidently positioning ourselves in the middle — for those who are
interested in the luxury of the finest quality cashmere at a very reasonable
and affordable price.
Source: The UB Post
RIO TINTO ‘PLAYING CATCH-UP FOR
DECISIONS OF THE PAST’ – EDITORIAL
It’s been a rocky road (pun intended) for Rio Tinto
investors since the company’s July 16 quarterly update which, as you may
recall, was an absolute stinker. The mining giant has contrived for itself dual
maelstroms: material time and cost overruns bringing the Oyu Tolgoi copper mine
(the pet project of chief executive Jean-Sebastien Jacques) online in Mongolia
and sudden production problems – hitting grade, volumes and unit costs – at its
iron ore (AKA bread and butter) division in Western Australia.
Rio’s Australian shares had started that month at $104.75; by August 26 they
were closing at $82.78 (but only on Thursday climbed back past $90).
With his outlook developing a distinctly bleak motif (think The Complete Works
of Edgar Allan Poe adapted for the screen by Tim Burton), Jacques did what an
archetypal Frenchman would: sent a cast of his underlings out to face the
music.
Source: Australian Financial
Review
