NEW MILESTONE OF CHULUUT FLOURSPAR PROCESSING PLANT PROJECT
Euro Khan’s affiliated company FMS LLC received main processing equipment on-site. This is another great milestone achievement for the Chuluut fluorspar processing plant project.
EURO KHAN’s AFFILIATED DIAG COMPANY ACQUIRED MAJORITY STAKE IN FERROSTAAL AIR TECHNOLOGY
Essen/ Saarwellingen, November 2019 – Ferrostaal Air Technology (FAT), headquartered in Saarwellingen, is now part of the Deutsche Industrieanlagen GmbH (DIAG) Group. With the majority takeover, DIAG also strengthens the basis for the expansion of its own “Green Invest” in the field of sustainable building technology and expands the basis for new projects: both nationally and internationally.
Following the takeover of Ferrostaal Industrieanlagen and Cronimet Mining, DIAG and FAT enter the field of technical building equipment with a focus on energy efficiency and climate protection.
Source: DIAG
ECONOMY
FOREIGN EXCHANGE RESERVE INCREASES, REACHING ITS HIGHEST LEVEL
Mongolia's foreign trade profit has grown up and reached USD 1.5 billion in the first 11 months of 2019. An increase of the foreign trade profit positively affected to accumulation of foreign exchange reserves. As of November, 2019, foreign exchange reserves reached USD 4 billion.
As the donor organizations disbursed funding of USD 200 million to the Government of Mongolia within the Extended Fund Facility Program being carried out by the Government of Mongolia in partnership with the International Monetary Fund, foreign exchange reserves reached its highest level in its history. Specifically, the Asian Development Bank disbursed USD 100 million in December, 2019 while the World Bank USD 100 million on January 3 and 6, 2020.
It is expected that increase of the foreign exchange reserves positively influence to maintain exchange rate of MNT against foreign currencies, successfully repay foreign debts that are scheduled to be paid in the mid-term as well as to raise and keep credit rating of Mongolia stable.
Source: Montsame
CENTRAL BANK PURCHASES 15.2 TONS OF GOLD IN 2019, DOWN 30 PCT
Mongolia's central bank announced on Friday that it has bought a total of 15.2 tons of gold from legal entities and individuals in 2019, down by 30 percent from the previous year.
"A 2.5 percent of discounted royalty on gold mining ended on Jan. 1, 2019 after which 5 to 10 percent royalty taxes on gold mining were imposed on miners. The significant decline was directly related to the expiration of the discounted royalty fee," the Bank of Mongolia said in a statement.
Purchasing gold is said to be one of the key instruments for the Asian country's central bank to increase its official foreign exchange (forex) reserves.
The Bank of Mongolia has been striving to ensure economic stability by consistently increasing its foreign currency reserves.
The country's forex reserves amounted to 4.2 billion U.S. dollars at the end of last year.
Source: Xinhua, Montsame
HEDGE FUND TO BE SET UP TO STABILIZE PRICE OF AI-92 GASOLINE
At its regular meeting held today, January 8, the Cabinet made a decision to set up Hedge Fund in order to keep the price of AI-92 gasoline stable.
Stabilizing price of AI-92 gasoline, which is commonly used by the citizens, has significance to back up economic growth and avoid price increase in other goods. Furthermore, for the first time, Mongolia will introduce a mechanism to stabilize price of imported petroleum in consistent with world market.
In its Action Program for 2016-2020, the Government set a goal to ease price burden as making fuel price coherent with world market price. No additional financing will be required from state budget to make this coordination and changes will not be made in any agreements that were concluded with foreign countries by oil- importing companies.
Source: Montsame
UB DEPUTY GOVERNOR: MNT 3.5 BILLION WORTH OF CARBON MONOXIDE DETECTORS ORDERED
J.Batbayasgalan, Deputy Governor of the Capital City: 80 pieces of carbon monoxide detectors will be received this week and given to households living in ger district area free.
CO detectors will be given free to households using refined coal in ger district areas of six districts according to the government decision. The government has budgeted MNT 6 billion for the detectors and Governor Office of the Capital City agreed to purchase by MNT 3.5 billion with Manufacturer in China to provide 220 thousand households.
At first shift, 80 thousand pieces will be delivered this week and given to households living in ger districts area directly.
Source: GoGo News
See also: CO detectors with instructions begin to be distributed
MONGOLIA TO BUILD NEW FUEL PROCESSING PLANT TO IMPROVE AIR QUALITY
The Mongolian government has decided to build a second fuel processing plant here this year, the government's press office said Tuesday.
The decision is part of the government's efforts to improve air quality in the capital, Ulan Bator, which suffers severe air pollution, by increasing access to processed fuel, it said.
On May 15, a government ban on domestic use of low-grade coal in Ulan Bator came into force, with the aim of reducing air pollution. Since then, households in the city have been supplied with processed fuel, instead of raw coal.
Currently, there is only one fuel processing plant in Mongolia. The plant, with an annual capacity of processing 600,000 tons of fuel, is barely meeting demand in Ulan Bator.
The construction of the new plant is scheduled from March to August, with the same processing capacity as the existing one, according to the press office.
Source: Xinhua, Montsame
See also: Air pollution reportedly reduced by 49.6 percent
2019 PROFITS OF SOME STATE OWNED COMPANIES SOARED TO RECORD HIGHS
In 2019, profits of some large state-owned enterprises reached an all-time high as follows:
- Erdenet Mining Corporation (EMC) paid MNT 936 billion to state budgets, hitting record high in its history of four decades. The company also saved MNT 54 billion from its tendering and procurement activities. In 2016, EMC paid MNT 184 billion to the state budget. On March 21, 2019, the EMC was transferred to the full ownership of the Mongolian Government.
- Sales revenue of Erdenes Tavan Tolgoi JSC reached USD 1 billion or MNT 2.7 trillion in 2019, making the highest revenue in Mongolia last year. The company has completed repayment of a total of USD 680 million of debts due to Aluminum Corporation of China Limited CHALCO and other companies since 2010.
- National flag carrier Mongolian Airlines MIAT conducted the most number of flights to various international destinations. Total revenue of MIAT reached MNT 484.3 billion and its profits amounted to MNT 30.8 billion.
Source: Montsame
ASSESSMENTS CONDUCTED ON WOOL AND CASHMERE FACTORIES INVOLVED IN GOVERNMENT PROGRAMS
In aims of assessing the implementation, and current state of the programmes ‘Mongolia Sustainable Development Vision 2030’, ‘Cashmere’, and ‘Industrialization 21:100’, and determining future measures, attestations have been conducted at wool and cashmere factories.
Three teams consisting of engineers, chemists, economists, and scholars became acquainted with the operations of over 190 factories, and gave assessments on the factories’ equipment and technology, its capacity, and usage, personnel, finances, and current state of operations. Factories of all levels of wool and cashmere processing were involved.
Source: Montsame
RED CROSS RELEASES FUNDS IN ANTICIPATION OF EXTREME WINTER IN MONGOLIA
Forecasts of an extreme winter in Mongolia have triggered the release of funding to reduce its impact on vulnerable herders. This is the first time this early action funding mechanism developed by the International Federation of Red Cross and Red Crescent Societies (IFRC) has been used anywhere.
On 2 January, Mongolia's National Agency for Meteorology and Environmental Monitoring announced more than 50 per cent of the country was at risk of an extreme (dzud) winter. This unwelcome news has triggered the pre-agreed release of CHF 210,968 (217,000 US dollars) to the Mongolian Red Cross Society for forecast-based action from IFRC's Disaster Relief Emergency Fund (DREF). The funding provides 88 Swiss francs (90.6 US dollars) cash each for 1,000 vulnerable herder families to prevent the starvation, dehydration and cold exposure of their livestock because of poor access to feed, water, veterinary care and shelter. A livestock nutrition kit will support livestock health during winter's lean months.
Source: ReliefWeb.int
MAKING MONGOLIA’S BAD DRIVERS PAY UP
Mongolia has over 871,000 cars; 57.6 percent, or 501,000, of them are in Ulaanbaatar. According to Captain B.Zorigoo, an expert at the Transport Police Department, road traffic accidents in Mongolia resulted in financial losses of MNT 31.8 billion during the first 11 months of 2019.
In order to balance the books, the newly created, Transport Police Department – previously, it was the Traffic Police – is having to pool money from fines. Not all bad drivers pay their fines promptly: Surprisingly, there are 86 drivers who have over 100 fines and three have more than 200 fines to pay! Currently, the Transport Police Department has collected no less than MNT 50 billion from fines from bad drivers.
Source: News.mn
WINTER BREAK OF SCHOOLS IN CAPITAL EXTENDED DUE TO FLU
The Mongolian government on Monday decided to extend winter vacation at all general educational schools in the country's capital by a week due to the prevalence of flu and other respiratory diseases.
"The incidence rate of flu and flu-like illnesses is now up 4 percent in Ulan Bator compared to the same period last year. The Health Ministry concluded the illnesses might persist when school starts," the country's Ministry of Education, Culture, Science and Sports said in a statement.
"That is why the government decided to extend the winter vacation," it said.
Schools in Ulan Bator would now reopen on Jan. 20 instead of Jan. 13, according to the ministry.
The winter vacation of the schools across Mongolia started on Dec. 23.
Source: Xinhua
NATIONWIDE POPULATION AND HOUSING CENSUS TO LAUNCH JANUARY 9
By law, Mongolia conducts a population and housing census once every 10 years for the complete count of the entire population of Mongolia, with the next one is beginning nationwide at 8 AM, January 9 to continue until January 15.
A.Ariunzaya, Chairwoman of the National Statistical Office of Mongolia, which is carrying out the population and housing census, combining register-based and traditional methods said that starting in the morning of January 9, randomly-chosen households will be asked to complete census questionnaire with all sorts of personal questions, to gather population and housing as well as economic, social and other data from 10 percent of the whole population of Mongolia, which is currently estimated at around 3.3 million.
Apart from the population and housing statistics, the census also seeks to provide a comprehensive database, including household lifestyle, size and composition, living conditions, state of household education and employment, access to electricity, water and other basic services, and religion, etc.
Source: Montsame
BUSINESS
ETT’S SALES REVENUE HITS RECORD HIGH SINCE 2016
Sales revenue of Erdenes Tavan Tolgoi (ETT) JSC totaled USD one billion or MNT 2.7 trillion in 2019, which is a record high performance in the last four years. The company exported 16.1 million tons of coal during the reporting period and earned a net profit of MNT one trillion. ETT contributed MNT 660 billion to the state budget.
When the company made sales worth MNT 1.9 trillion and earned a profit of MNT 807 billion last year, it overachieved its sales plan by 240 percent, permanently increasing coal price. The company's state budget contribution was set at MNT 510 billion, net profit of the company was projected to be around MNT 335 billion in 2018 but reached MNT 720 billion, exceeding the plan by 2.1 times.
Even though the company informed to distribute dividends of 1072 shares, it resolved to invest its profit in railway projects, considering long term development.
Source: ZGM Daily, Montsame
EXPLORATION LICENSES COVER 3.8 PERCENT OF TERRITORY OF MONGOLIA
The Implementing Agency of Mongolian Government Mineral Resources and Petroleum Authority released the latest report on the activities of special license for mining as of November 2019.
The report says the number of license that was revoked or expired in last November reached 19, and 16 of which were exploration licenses. Three mining licenses were issued on three mining fields, including two licenses for ‘Gobicoal and Energy’ company in Bayankhongor aimag and one license for ‘Shine Mongol License’ in Umnugobi aimag.
Bloomberg Mongolia reports that there are currently active exploration permits issued on around 3.8 percent of territory of Mongolia. And 25.33 percent of them are owned by Chinese company, 22 percent and 16 percent by Singaporean and Canadian companies respectively, followed by companies from Hong Kong and the Netherlands.
Exploration licenses had been issued on through tendering process, however in December 2019 the government of Mongolia made a decision to not issue any exploration license for one year.
Source: Montsame
MONGOLIAN MINE WORKERS DEMAND LONGER PAID HOLIDAYS
Delegates from the Workers’ Union of Energy, Geology and Mining held a press conference on Wednesday (8 January) for demanding longer paid holidays. The delegates said that mining workers must have 14 days of paid holidays after working 14 days in a month. They are opposing the 20 work days and 10 days of vacation enacted by the amendment to the Law on Labour.
Currently, over 45,000 mining workers work up to 40 days and get only seven days of vacation; this is resulting to increased depression and mental strain, divorce and even suicide.
The mining sector is vitally important in the Mongolian economy accounting for 24 percent of GDP and 75 percent of foreign direct investment to Mongolia as well as a staggering 87 percent of exports.
Source: News.mn
INVESCORE GROUP TO PARTNER WITH CHINA’S ALIBABA GROUP
On January 8, InvesCore Financial Group of Mongolia and China’s Alibaba Group signed a cooperation agreement on establishment of Business Center in Mongolia. A launching of the Business Center is scheduled to take place in March, 2020 and it will function in broader range including educating e-commerce traders, providing business consulting and connecting business owners with Chinese market.
The Center plans to conduct training on Global e-Commerce Talent Program that runs by Alibaba Business School at first and train professional personnel who will work in directions of e-commerce.
Within its mid-term global strategy, Alibaba Group is working to help 10 million small and medium businesses, to have 2 billion customers and to train one million e-commerce specialists until 2023 through its Alibaba Business School.
InvesCore Group of Mongolia operates in finance, fintech, AI development and business consulting and it is intending to broaden its operation further and enter into international market.
Source: Montsame
AIRFARES FOR FOUR ROUTES BY MIAT LOWERED
It has been recently reported that Mongolian national flag carrier MIAT Mongolian airlines lowered its ticket prices by 15-37 percent. The MIAT Company emphasized that four routes carried out by the airline are subject to price reduction, including:
• Airfares between Ulaanbaatar and Seoul dropped by 32-37 percent compared to 2018, and the lowest price for round-trip flights in this destination is currently around MNT 864 thousand 900.
• Airfares between Ulaanbaatar and Busan fell by 35 percent compared to 2018, and the cheapest price for round-trip flights in this destination is around MNT 773 thousand 800.
• Airfares between Ulaanbaatar and Hong Kong fell by 44 percent compared to 2018, and the lowest price for round-trip flights in this destination is around MNT 1 million 35 thousand 800.
• Airfares between Ulaanbaatar and Berlin dropped by 44 percent compared to 2018, and the lowest round-trip price in this destination is around MNT 1 million 35 thousand 800.
Source: Montsame
‘MONGOLIAN OIL REFINERY’ SOE TO HAVE SUBSIDIARY IN CHARGE OF SUPPLY AND RETAIL ACTIVITIES
The Cabinet, at its session today, January 6, made following decisions.
- ‘Mongolian oil refinery’ state-owned company to be extended with a subsidiary company, aimed at having an independent financial resources and achieving freedom from debt burden. The subsidiary will be in charge of oil supply and retail activities. On behalf of the Mongolian government, ‘Mongolian oil refinery’ state-owned company is responsible for the implementation oil refinery project underway in Dornogobi aimag in cooperation with the Indian government.
- Based on a conclusion by the Specialized Inspection Agency and Ministry of Food, Agriculture and Light Industry, the Cabinet revoked tobacco manufacturer license of ‘Michidtrust’ and ‘Ekh Jargalan Trade’ companies on a series of breaches in their operations.
Source: Montsame
MONGOLIA REVOKES 14 ALCOHOL-PRODUCING COMPANIES' LICENSES
The Mongolian government has revoked a total of 14 companies' special licenses for producing alcoholic beverages due to their violation of relevant laws and rules, the government's press office said Tuesday.
"The decision was made after a recent joint inspection by the Ministry of Food, Agriculture and Light Industry and the State Professional Inspection Agency on 32 companies which hold licenses for alcoholic beverage production," it said in a statement.
The decision is part of the government's efforts to tighten regulatory controls on alcohol producers and reduce alcohol intake in the country.
With a population of 3.2 million, Mongolia is said to be one of the countries with the highest consumption of alcoholic beverages.
According to latest statistics, a Mongolian adult consumes an average of 53 liters of alcoholic beverages per year, including around 13 liters of vodka, Ayush Ariunzaya, the head of the Asian country's National Statistics Office, told Xinhua.
Source: Xinhua
MONGOLIAN BUSINESSMEN TO VISIT SHIZUOKA PREFECTURE
A meeting between Mongolian businessmen and authorities of Shizuoka prefecture of Japan will be held on January 15-19 in Shizuoka prefecture and Tokyo, Japan. During the event, ‘Fujino kuni 2020’ exhibition of food products and business travel are expected to be held, reported by ‘Export international trade center’ NGO.
Mongolian businessmen will be provided with information about operations of small and medium-sized enterprises of Shizuoka prefecture, business partnership and collaboration alongside business advice to be given by JETRO and SIBA.
They will also get acquainted with activities of ‘Shizutetzu retailing’ and ‘Shizuoka concierge’ companies.
Source: Montsame
FMO ARRANGES USD 100 MILLION SYNDICATED LOAN TO XACBANK MONGOLIA
FMO has arranged a USD 100 million syndicated loan to XacBank, one of Mongolia’s leading universal banks. The five-year tenor of the loan will strengthen XacBank’s long-term funding base and allow the bank to further grow and expand in its focus areas in retail, micro and small and medium enterprises (“MSME’s). XacBank is actively engaging with the MSME sector with a focus on the ‘underbanked’ segment, which matches well with FMO’s strategy to support economic and diversified growth in the country.
Established in 2001, XacBank is Mongolia’s fourth largest bank measured by total assets with a market share of 10%. XacBank has an extensive network of branches throughout Mongolia. The bank originally focused on providing microfinance loans in both rural and urban Mongolia, but over the past decade the bank has moved upmarket and now mainly focuses on MSMEs, Green Finance and retail lending.
Source: FMO.nl
ION ENERGY CEO ALI HAJI: EXPLORATION AT BAAVHAI-UUL PROJECT TO BEGIN IN 2020 - INTERVIEW
ION Energy’s familiarity with the region made Mongolia an easy choice for the home of the company’s next project. ION Energy has secured an 81,000 hectare license in the southern Gobi region of Mongolia and is expected to commence an exploration program on the project in 2020, focusing on two main targets. Based on previous exploration work, the company believes the main aquifer on the property is relatively shallow at around 20 meters below the surface.
Please provide our investor audience with an overview of ION Energy and its operations.
ION Energy CEO Ali Haji: ION Energy was founded in 2017 with the sole purpose of obtaining a lithium exploration license in Mongolia. We wanted to be first-movers in the region and were issued an 81,000 hectare license, the largest license ever to be granted to a private company. The licensed land is in the southern Gobi region of Mongolia, about 30 kilometers from the Chinese border.
Source: InvestingNews.com
