EK IS SUPPLYING TO DIESEL GENERATORS AND BEARING.
Altain Khuder, with 100% Mongolian investment, has grown rapidly since its establishment in 2006 and now employs more than 1,200 Mongolian engineers and specialists at the Tayan Nuur Concentrator in Tseelsoum, Gobi-Altai aimag. Euro Khan has successfully signed its first contract to supply 3 diesel generators to Altain Khuder Mining. The generators are ready for production and will be handed to the end-users in mid-August.
We are confident that future deliveries will also be soon and successful.
As you know, EK supplies Bearing to EMC. Our current supply Bearing 4 is ready for shipment and will be handed over to the end-user by the end of August.
DUROFIX AND HANSTOOLS ARE AVAILABLE IN HERMES CENTER.
EK represents over 30 worldwide brands and manufacturers in Mongolia, including mining, heavy equipment machinery, all types of buses, special vehicles, and all auxiliary materials and spare parts requisite in the industry.
A great example of this is the fact that we have been supplying Durofix’ power tools and Hanstool’s handtools, which combine American technology and Taiwanese high-quality materials. Durofix and Hanstool tools are now available at the Hermes Center. Easy to get whatever you want in one place without wasting time.
A REPRESENTATIVE OF SCHACHTBAU NORDHAUSEN VISITED MONGOLIA IN JULY 2021.
Schachbau Nordhausen has a history of more than 110 years and has been under the umbrella of the Bauer Group since 1992 and is one of our oldest partners. EK has been successfully pursuing a long-term partnership with Bauer Group since 2011 and with SBN since 2017.
During this short visit, Mr. Khatanbaatar, SBN Representative organized and attended meetings and conferences on a regular schedule, focusing on future projects and programs. SBN is a modern technology company; service and product range is supervised by their own design and engineering teams, innovation-oriented manufacturing in state-of-the-art workshops in Nordhausen, and professional construction and assembly processes with their own technical and management personnel.
SHEEP SHEARING SUMMIT
EK regularly organizes workshops and meetings with experts and industry people on how to prepare professional shearers, simplify the process of shearing animals such as sheep, goats, and camels, and shorten the duration of shearing without damaging the hair and wool.
As a result, herders will be able to easily get their hair and wool, increase their household income, and even work as specialized shearers around the world. We are preparing to establish a non-governmental organization consisting of international professional shearers, project specialists, and the Heiniger AG, the world's №1 leading manufacturer in the field.
THIS MONTH'S BIGGEST HIGHLIGHT: ALCANOLLI
The Alcanolli Project took a big step forward, and it was a great pleasure for us to finalize our contract with Nazare, a Portuguese country with a favorable geographical and climatic location for growing cannabis.
Our project, which is the result of long-term research and the work of many scientists and specialists, is gradually approaching its end users. Also, we are very excited that we signed a cooperation agreement with Technoedif, a leading engineering company in Portugal.
Economy
• Cabinet reviews progress of MNT 10 trillion economic recovery plan
• Foreign travelers visiting Mongolia decrease by 72.7 percent
• 2,261 containers transported through railway
• Mining Mongolia 2021
• Coal transportation checkpoint at Shivee Khuren border in operation
• Decision on resuming operations of school, kindergartens to be made depending on pandemic situation
• Project on improving adaptive capacity to climate change to be implemented in four aimags
• Zamiin-Uud free zone to open for regular operation
Business
• Rio Tinto probed by UK financial watchdog over disclosures
• Ulaanbaatar to have ‘Morning Street’ at three locations
• Tavan Tolgoi JSC: Company earns lowest profits in 5 years in H1 2021
• Erdene Intersects 5.86 g/t Gold Over 27 Metres and 5.63 g/t Gold Over 30 Metres at Dark Horse Prospect
• Golomt Bank signs second multiple loan agreement with World Business Capital, Inc. and U.S. Int’l Development Finance Corp
• EBRD’s Trade Facilitation Programme names Khan Bank as Mongolia’s Most Active Issuing Bank
• KhanLex assists WorldBusiness Capital with its USD 15.0 million loan to Golomt Bank
• Shuttle bus to new airport launched
• Brakes and controls for underground conveying system in Mongolia
ECONOMY
CABINET REVIEWS PROGRESS OF MNT 10 TRILLION ECONOMIC RECOVERY PLAN
At the cabinet’s meeting dated July 28, Minister of Finance B.Javkhlan made a presentation on the implementation of the government’s MNT 10 trillion comprehensive plan for health protection and economic recovery. Within the framework of the plan, employment support loans with total funding of MNT 2 trillion have been granted to 22,994 borrowers totaling MNT 1.7 billion as of now.
The cabinet praised the outcome of an online Mongolia-Canada roundtable meeting organized on May 27, 2021 and gave an order to Minister B.Javkhlan, who chairs the Mongolian side in the roundtable meeting, to approve the plan of measures following the meeting and take control on the implementation.
The Minister of Finance was authorized to sign loan agreements for a project to enhance the capacity of forensic science organizations and environmental study central laboratory…
Source: Montsame
FOREIGN TRAVELERS VISITING MONGOLIA DECREASE BY 72.7 PERCENT
The number of foreign passengers who have crossed the border of Mongolia in the first half of 2021 decreased by 408 thousand or 55.3% compared to the same period of the previous year.
In the first half of 2021, 330.0 thousand passengers (double counting) crossed the border of Mongolia, decreased by 408.0 thousand or 55.3% compared to the previous year.
Due to the global outbreak of coronavirus (COVID-19), Mongolian border crossing began to close from February 1, 2020. In April of this year, 1 987 Mongolian citizens arrived at the airport, 36 citizens arrived through road and railway ports. In May, 2611 Mongolian citizens arrived on special duty flights and 30 citizens arrived through road and railway ports. In June, 3634 Mongolian citizens arrived on special duty flights and 248 citizens arrived through road and railway ports.
Source: Montsame
2,261 CONTAINERS TRANSPORTED THROUGH RAILWAY
In aims of boosting freight transport between Mongolia and China, the two countries are jointly carrying out measures for railway transport.
In its framework, a total of 967,147 tons of freight have been handed over to the side of China, and 148,331 tons of freight have been received between July 1 and 25.
As a result of the talks held between Ulaanbaatar Railway JSC and the railway authority of Hohhot, China, 51 trains have been used to transport the containers bound for Mongolia that were stuck at the Tianjin Port in China.
Source: Montsame
MINING MONGOLIA 2021
Mongolia is an attractive environment for medium and long-term foreign direct investment (FDI) due to its vast natural resources, vast agricultural potential, and geographical proximity to major Asian markets. Mongolia's gross domestic product (GDP) is 9.2 trillion MNT or 3.2 billion USD as of the 1st (first) quarter of 2021. Mongolia's GDP averaged $ 4.44 billion from 1981 until 2018, reached the highest record of $13.01 billion in 2018.
Mongolia is a country with a rich mineral resources, which is a attractive environment for foreign direct investment, and the Government of Mongolia is dedicated to attract more foreign investment and use all of its mineral resources. As shown in the diagram, 70 percent of foreign investment is in the mining sector, and the remaining 30 percent is in trade, food, banking and financial service, and other sectors.
Source: Grata International
COAL TRANSPORTATION CHECKPOINT AT SHIVEE KHUREN BORDER IN OPERATION
Mongolyn Alt LLC /MAK/ made an investment of MNT 560 million to expand the Shivee Khuren border operation to increase exports, increasing its access capacity, opening four border checkpoints, and handed over to the border authorities.
As of today, 180 vehicles have entered the border ports. 14 million tons of coal is exported through the port annually. Adding more border checkpoints will increase the border port capacity, reduce the workload of customs officers, and improve their working conditions.
Source: GoGo News
DECISION ON RESUMING OPERATIONS OF SCHOOL, KINDERGARTENS TO BE MADE DEPENDING ON PANDEMIC SITUATION
Under the Law the academic year begins from September 1 in Mongolia.
The Prime Minister of Mongolia ordered to relevant officials to implement the corresponding law and resume operations of schools and kindergartens in aforementioned period.
However, due to the pandemic situation, the official date of starting the 2021-2022 academic year is not clear yet.
The 2021 general entrance exams will be organized for high school graduates on August 19-22. The nationwide general entrance exams to colleges and universities will be organized with low risk because they will be conducted among vaccinated teachers and students. However, it is not clear when the children aged 6-11, who have not been vaccinated, will attend classes at school. Therefore, the decision about opening schools and kindergartens will be made after taking the current situation into consideration.
Source: Montsame
PROJECT ON IMPROVING ADAPTIVE CAPACITY TO CLIMATE CHANGE TO BE IMPLEMENTED IN FOUR AIMAGS
The ‘Improving Adaptive Capacity and Risk Management of Rural Communities in Mongolia’ project has been launched. With a grant of USD 23.1 million by the Green Climate Fund (GCF), the project will be jointly implemented by the Ministry of Environment and Tourism, Ministry of Food, Agriculture, and Light Industry, and the United Nations Development Programme in the aimags of Dornod, Sukhbaatar, Zavkhan, and Khovd.
At the first project meeting, Minister of Environment of Tourism N.Urtnasan said, “Our country is currently considered as one of the 10 countries that are the most sensitive to climate change. In the last 80 years, the average temperature has increased by 2.25°C, with annual precipitation decreasing by about 8 percent which has become a factor for 76.9 percent of the country’s total territory to succumb to desertification and soil degradation.”
Source: Montsame
ZAMIIN-UUD FREE ZONE TO OPEN FOR REGULAR OPERATION
At its meeting held today, July 28, the cabinet ordered corresponding officials to open the Zamiin-Uud free zone for regular hours of operations for movement of passengers and freight transportation vehicles starting from August 15.
Relevant government ministers were charged to ensure preparations for professional agencies to provide services at the free zone, such as border, customs, professional inspection and immigrations offices.
Deputy Prime Minister, Foreign Minister and Justice Minister were ordered to take measures to settle on cross border facilities at the economic cooperation region with the Chinese side, establish border control units and provide with required facilities and equipment at the free zone.
The continuous operation of the Zamiin—Uud free zone will help improve the confidence of investing individuals and entities, enable development works during warmer seasons, enhance infrastructures and create more jobs in the region.
Source: Montsame
BUSINESS
RIO TINTO PROBED BY UK FINANCIAL WATCHDOG OVER DISCLOSURES
The UK’s financial watchdog is conducting a probe into Rio Tinto and its late-running $6.75bn underground copper project in Mongolia’s Gobi Desert.
The Financial Conduct Authority is investigating whether the Anglo-Australian company breached listing rules in disclosures about the value of Oyu Tolgoi in 2018 and 2019, according to people familiar with the situation.
Rio announced in July 2019 that the underground expansion of Oyu Tolgoi would require an additional $1.2bn-$1.9bn in capital and be 16 to 30 months late. It said difficult ground conditions meant it would have to rethink the project’s design and development schedule.
However, some investors and a former employee have claimed Rio knew the expansion of the copper mine was in trouble months before the problems were disclosed to investors.
At the time the delays were announced Rio’s chief executive was Jean-Sébastien Jacques, who stepped down last year following an investor backlash over the destruction of two ancient aboriginal rock shelters in Australia.
Source: Financial Times
See also: Rio Tinto faces FCA probe into $6.75 billion Mongolian mine - FT
Oyu Tolgoi announces 2021 second quarter performance results
ULAANBAATAR TO HAVE ‘MORNING STREET’ AT THREE LOCATIONS
Ulaanbaatar city-owned Ulaanbaatar Investment and Management company has previously reported that the ‘Morning Ulaanbaatar’ project will launch within July 2021.
Within the framework of the project, morning streets will be built at three different locations of Ulaanbaatar city and will remain open to public in certain schedules. The open-air public streets will have a public service facility, and will be dedicated to economic, cultural and social activities, leisure strolling, shopping and eating, etc. The streets’ neighborhood will also offer free Wi-Fi to the public to use for gain access to public services.
The streets will be established at the Juulchin Street, Jamiyan-Gun Street and Prime Minister A.Amar’s Street in the capital city. As of today, the Juulchin Street or publicly known as ‘Gutliin - 22’ went under landscaping and a car-free morning street at the location has opened.
Source: Montsame
TAVAN TOLGOI JSC: COMPANY EARNS LOWEST PROFITS IN 5 YEARS IN H1 2021
Tavantolgoi JSC presented its financial results for the first half of 2021. This year sales revenue and net profit were at the lowest performance in five years.
In particular, the company's sales revenue reached MNT 69 billion, a decrease of 22.9 percent from the same period of the previous year, and net profit of MNT 1.9 billion or MNT 36.2 per share, decreased by 51 percent from the first half of 2020.
The company has recently reported increasing unit costs due to rising coal mining costs. Tavantolgoi JSC's financial performance was also affected by the disruption at the Mongolian-Chinese border due to Covid-19. In particular, the Mongolian General Customs Administration reported that in June 2021, 648.7 thousand tons of coal was exported to China, a decrease of 71.16 percent compared to the same period of the previous year.
Source: BDSec
ERDENE INTERSECTS 5.86 G/T GOLD OVER 27 METRES AND 5.63 G/T GOLD OVER 30 METRES AT DARK HORSE PROSPECT
Erdene Resource Development Corporation is pleased to announce assay results from Q2 2021 drilling at the recently discovered Dark Horse prospect within its 100%-owned Khundii Mining License.
Highlights
• Multiple holes intersected high-grade mineralization (≥1 g/t gold) along strike and down dip in the southern portion of Dark Horse Mane, 3.5 kilometres north of the Bayan Khundii Gold deposit:
• This high-grade zone in the southern portion of Dark Horse Mane has a strike length of approximately 180 metres, along a 50 metre wide trend, that remains open at depth
“These exceptional results of high-grade, near-surface oxide gold just 3.5 kilometres north of the Bayan Khundii gold deposit lend support for our mine development and demonstrate the prospectivity of the Khundii Gold District,” said Peter Akerley, Erdene’s President and CEO. “The southern portion of the Dark Horse Mane is associated with a much larger structural trend related to the most significant mineralization in the Bayan Khundii area.”
Source: Erdene Resource Development Corp.
GOLOMT BANK SIGNS SECOND MULTIPLE LOAN AGREEMENT WITH WORLD BUSINESS CAPITAL, INC. AND U.S. INT’L DEVELOPMENT FINANCE CORP
On September 14, 2017, Golomt Bank signed an eight-year credit agreement with World Business Capital Inc. (WBC) under guarantee from the U.S. International Development Finance Corporation (DFC) as part of its commitment to developing SME businesses in Mongolia.
After successfully fulfilling WBC’s requirements, Golomt Bank completed a second loan agreement with WBC for a four-year term on June 30, 2021.
With this long-term facility, Golomt bank is supporting its SME clients and growing corporates that fall into the international definition of SMEs. The loan facility is primarily oriented toward promoting SMEs operating in the agribusiness sector and environmentally friendly projects.
This agreement is a milestone for Golomt Bank expanding its U.S. partnerships and aligning its goal with the mandate of international institutions like DFC and WBC to support business growth, job creation, and overall development of the emerging market through long-term financing solutions.
Source: Montsame
EBRD’S TRADE FACILITATION PROGRAMME NAMES KHAN BANK AS MONGOLIA’S MOST ACTIVE ISSUING BANK
The European Bank for Reconstruction and Development’s (EBRD) Trade Facilitation Programme (TFP) recognizes its most successful partner banks every year. For the year 2020, Khan Bank was awarded the Most Active Issuing Bank in Mongolia 2020 for the 11th consecutive year.
Since 2007, Khan Bank has cooperated with the EBRD to provide Khan Bank customers with a comprehensive range of high-quality trade finance products and services that comply with international standards and regulations. Khan Bank provides a comprehensive range of trade finance products, such as documentary credit, guarantees, and stand-by letters of credit while providing trade loans with flexible terms through its long-standing cooperation with its global partner banks.
As Mongolia's leading bank, Khan Bank collaborates with over 20 international banks to raise trade funds bilaterally, as well as over 800 international banks and financial institutions through the Trade Facilitation Program.
Source: Montsame
KHANLEX ASSISTS WORLDBUSINESS CAPITAL WITH ITS USD 15.0 MILLION LOAN TO GOLOMT BANK
KhanLex assisted US-based WorldBusiness Capital, Inc. (WBC) with the final disbursement of its USD15.0 million loan to Golomt Bank, one of Mongolia’s largest commercial banks. The disbursement will provide a funding source for Golomt to support its lending to SMEs throughout Mongolia, primarily businesses in the agribusiness sector.
WBC’s loan is supported by the U.S. International Development Finance Corporation, the U.S. Government agency that helps American businesses invest in emerging markets (formerly, Overseas Private Investment Corporation).
“We are glad to have assisted WBC to successfully complete disbursement of its commercial loan to Golomt Bank.” said Enkhbat Batsukh, Partner, who led the KhanLex team on this deal. “We are also pleased that we have supported Golomt’s initiatives to expand access to capital for underbanked SMEs in Mongolia.” Enkhbat Batsukh was assisted by his colleague, Khulan Bayarsaikhan.
Source: KhanLex
SHUTTLE BUS TO NEW AIRPORT LAUNCHED
A shuttle bus is one of the safest and most reliable means of transportation from the airport to the city and from the city to the airport in the world. In Mongolia, a shuttle bus to the airport was tested in 2013. Due to the new international airport “Chinggis Khaan” at the Khushigt Valley is in operation, new shuttle bus service is required.
"Ulaanbaatar City Development Corporation" JSC and "Mongolian National Development Coalition" LLC established "Ulaanbaatar Airport Shuttle" LLC or "UBUS" LLC for the above project. Within the framework of public-private partnership, the “Airport Shuttle Bus” service has been introduced in the capital city, and a professional team is ready to serve passengers.
The ticket office is located at the first floor of the Chinggis Khaan International Airport in the TRANSPORTATION SERVICE section, and pre-orders are available online at www.ubus.mn.
Source: GoGo News
BRAKES AND CONTROLS FOR UNDERGROUND CONVEYING SYSTEM IN MONGOLIA
SUR Engineering relies on German manufacturer Dellner Bubenzer to service the mining industry with brake systems and monitoring technology.
Dellner Bubenzer recently supplied brakes for three 7100 tonnes per hour conveying systems, each with an installed power of two 5500 kW gearless drives, for a copper mine in Mongolia.
The scope of supply was including floating calliper brakes SFR50, brake discs, hydraulic power units, UPS, BCC3000 closed loop control systems as well as the complete encoder technology.
The main parameters of the brake like pad wear, stroke (air gap) and brake pad temperature are continuously monitored.
The brakes stop the conveyor within 10 seconds in loaded or unloaded condition. Depending on the parameter, like load, speed etc., the HPU and control unit provide different braking levels and scenarios.
Source: AustralianMining.com.au
