PUBLIC HOLIDAY NOTIFICATION
Dear valued partners, please be informed that we will have public holiday for Mongolian Lunar New Year 2020 from 24-26th of February, which is next week Monday to Wednesday. We will be back in office on 27th of February. For emergency inquiries please contact below personals:
Sales inquiries: Narantsatsralt Tsedendamba /Sales Director/
Mobile: +976-95050122 email: tsatsaa@euro-khan.com
Operations inquiries: Oyungerel Yadmaa /COO/
Mobile: +976-99076591 email: oyungerel@euro-khan.com
CORPORATE SOCIAL RESPONSIBILITY
As part of its social responsibility from Sainshand Wind Farm LLC, it cooperates with the aimag in many sectors to support the targeted student tuition fees, the amount of MNT 16 million for the purchase of surgical instruments at the provincial integrated hospital.
Today \ 2020.02.21 \ "Sainshand Wind Farm" LLC has provided 4,000 masks with assistance to the border specialized organizations or the areas providing citizens' health and safety and handed over to the aimag Governor's Office.
MONGOLIA TO SHUT SCHOOLS UNTIL MARCH 30 TO CURB VIRUS OUTBREAK
Mongolia will keep all its schools shut until March 30 in order to prevent the coronavirus from spreading in the country, the government said on Wednesday.
The flu-like virus has already killed more than 2,000 people in its southern neighbor, China.
Though Mongolia has yet to report any cases, it has sealed off the border and refused entry to anyone traveling through China. It still has 336 citizens in China seeking to return home, it said on Tuesday.
With the outbreak still not slowing down, Mongolia’s educational institutes, from its kindergartens to its universities, will remain shut until the end of next month, the government said.
Source: Reuters
See also: Movements to some popular destinations during Tsagaan Sar prohibited
Strict anti-coronavirus rules extended till 1 April
ECONOMY
ECONOMIC GROWTH STANDS AT 5.1 PERCENT
According to the National Statistics Office (NSO) economy grew by 5.1 percent in 2019. This is a decrease of 2.1 percentage points compared with the previous year. The increase was mainly driven by the added value of the service and agricultural sectors.
In terms of industry, the service sector accounted for 39 percent of growth, the mining sector over 20 percent and the industrial and construction sectors made up over 10 percent. The World Bank assumed that Mongolia’s economic growth would jump by 5.6 percent in 2019, downgrading its previous projection.
In addition, researchers of Bloomberg TV Mongolia’s economist club expected also the same result. Last year, mining performance was good and coal export rose by 1 percent to 36.4 tons. Erdenes Tavan Tolgoi (ETT) JSC reported that the company has earned USD 1 billion in revenue and paid a tax of over MNT 660 million.
Source: ZGM Daily
FITCH: MONGOLIAN GROWTH REVISED DOWN DUE TO COVID-19 RISKS
• In light of the worsening economic outlook due to the Covid-19 outbreak, we at Fitch Solutions have revised our 2020 real GDP growth forecast to 4.5%, from 5.3% previously.
• Mongolia’s heavy exposure to China’s economic health means that it will likely see a sharp slowdown in line with an exacerbated deceleration in China.
• The revised forecast is still subject to downside risks given that it relies on China weathering the outbreak and still achieving its target of doubling the size of its economy in 2020 relative to 2010.
We at Fitch Solutions have revised down our 2020 real GDP forecast to 4.5%, from 5.3% previously, to reflect the heavy downside risks facing Mongolia’s already slowing economy. These risks are a result of Mongolia’s key vulnerability – its close economic links to China and high exposure to price fluctuations in some of its key exports including coal (38% of total) and copper (26% of total).
Source: Fitch Ratings
INFLATION REACHES 5.6 PERCENT IN JANUARY
In January, inflation stood at 5.6 percent, which is lower than the central bank’s target. Thus, it has been fluctuating around 5 percent for the last three months in a row. The weakening effect of supply factors also triggered inflation to stabilize.
Meat prices, which have been increasing by 30 percent and burdening the CPI, decreased by about 16 percent. On the other hand, this indicates a slowdown in economic growth. At the end of 2019, the Monetary Policy Committee of the Bank of Mongolia (BoM) proposed the central bank to reduce its interest rate and support the economy.
However, the policy rate remained untouched at 11 percent. The inflation is likely to gradually slow down to around six percent under the influence of supply factors in the first three quarters of this year. In the fourth quarter of 2020, the central bank anticipates that the baseline effects will grow slightly and the inflation may stabilize around the target level.
Source: ZGM Daily
COAL EXPORTS TO RESUME FROM MARCH 2
On February 20, State Emergency Commission made a decision to resume the export shipments of coal and oil from March 2. Corresponding officials were charged to continue to ensure effective sterilization practices for drivers of delivery vehicles across the borders and customs officers.
On February 10, the State Emergency Commission decided to suspend coal exports until March 2 through borders with China, to prevent the spread of Covid-19.
Statistics show that 98 percent of Mongolia's coal exports is accounted for China.
Source: Montsame
MOODY'S ANNOUNCES COMPLETION OF A PERIODIC REVIEW OF RATINGS OF MONGOLIA
Moody's has now completed the periodic review of a group of issuers that includes Mongolia and may include related ratings.
The credit profile of Mongolia (issuer rating B3) incorporates its "ba3" economic strength, supported by strong growth potential balanced by a small and narrowly diversified economy; its "b2" institutions and governance strength, which balances weak executive institutions and policy effectiveness against ongoing structural reforms; "b3" fiscal strength, reflecting a high, albeit improving, debt burden, weak debt affordability, and a reliance on foreign currency denominated debt; and a "b" susceptibility to event risk, driven by external vulnerability risk and banking system risk. A fractious political environment is a common feature, with a high rate of change among ruling parties. This has some repercussions for policy decisions.
Source: Moody's
OIL REFINERY CONSTRUCTION TO BEGIN THIS SPRING
Indian companies that have breadth of experience in civil engineering and infrastructure development, including JMC Projects, KEC International, and Afcons Infrastructure, are tendering for the first engineering, procurement, and construction (EPC-1) contract of the oil refinery project being carried out by Mongol Refinery state-owned company.
The credit line agreement for financing the project ruled that the project’s general contractors must be a company registered in India.
The tender evaluation will be conducted in Mongolia and India and Mongol Refinery company will enter into a contract with the chosen bidder to commence the oil refinery construction works around April and May.
Source: Montsame
170 SUSPICIOUS CASES HAD BEEN ISOLATED AND TESTED, NO CASE OF COVID-19 IS REGISTERED IN MONGOLIA
Ministry of Health organized a press conference today and provided with information:
Head of the surveillance department of NCCD A.Ambaselmaa reported “As of today, 170 suspicious cases had been isolated and tested, no case of COVID-19 is registered. Currently, 103 people are under observation in Zamiin-Uud province and 1 person is isolated, and 12 people are isolated in Gashuunsukhait.
On February 19, 2020, 1 person is isolated in Zavkhan province. Also, 1 student who studies in Tianjin city, China is isolated in National center for communicable diseases. 103 people in Zamiin-Uud are in hotel and under observation. Suspicious people will be isolated for 14 days.”
According to assessment made by 20 professional organizations, the spread rate will be high if the virus case is registered in Mongolia. WHO warned to be careful however Wuhan city situation is being stabilized.
Source: GoGo News
83.2 PERCENT OF THE SALES OF MINING AND QUARRYING PRODUCTION EXPORTED
By the preliminary results of January 2020, the gross industrial output reached MNT 1.1 trillion, showing a decrease of MNT 191.4 billion (14.5%) from the same period of the previous year. This decrease was mainly due to mining and quarrying gross output by MNT 219.0 billion (23.0%).
Out of the gross industrial output, 65.1% were produced in the mining and quarrying sector, 22.7% -- the manufacturing sector and 12.2% -- electricity, thermal energy and water supply sectors.
By preliminary results of January 2020, the mining and quarrying gross output reached MNT 732.2 billion, showing a decrease of MNT 219.0 billion (23.0%) from the same period of the previous year.
This decrease was mainly due to decreases in mining of coal and lignite by MNT 183.1 billion (43.9%), extraction of crude petroleum by MNT 18.1 billion (23.0%), mining of metal ores by MNT 17.4 billion (3.9%) and other mining and quarrying by MNT 452.0 million (5.4%).
Source: Montsame
JANUARY SEES TRADE BALANCE DEFICIT OF USD 14.3 MILLION, TURNOVER DOWN 16 PCT Y/Y
In January 2020, Mongolia traded with 116 countries from all over the world and total trade turnover reached USD 932.3 million, of which USD 459.0 million were exports and USD 473.3 million were imports. Total foreign trade turnover decreased by USD 178.9 million (16.1%), of which exports decreased by USD 148.2 million (24.4%) and imports decreased by USD 30.7 million (6.1%) compared to the same period of the previous year.
The surplus of foreign trade balance reached USD 103.3 million in January 2019, while the deficit of balance reached USD 14.3 million in January 2020 and decreased by USD 117.5 million from the same period of 2019.
Coal accounted for 44.2% and copper concentrates for 26.1% of total exports to China, while coal accounted for 92.4% and 87.3% of goods exported to the United Kingdom and Singapore respectively, and fluoride accounted for 90.7% of total export goods to Russian Federation.
Source: Montsame
NON-PERFORMING LOANS IN BANKING SYSTEM INCREASED BY 2.7 PCT Y/Y
At the end of January 2020, the total amount of outstanding loans to entities, enterprises and citizens amounted to MNT 18.1 trillion, increased by MNT 871.7 billion (5.1%) from the same period of the previous year. From the total outstanding loans, MNT 9.4 trillion (52.2%) was loaned to individuals, MNT 8.6 trillion (47.8%) was loaned to enterprises.
At the end of January 2020, the non-performing loans in the banking system amounted to MNT 1.8 trillion, increased by MNT 10.3 billion (0.6%) from the previous month, and increased by MNT 47.5 billion (2.7%) from the previous year. The non-performing loans in the banking system make up to 10.2% of total loans, showing a decrease of 0.2 points from the same period of the previous year.
Source: Montsame
INDIVIDUALS’ SAVINGS MAKE UP 85.6 PERCENT OF TOTAL TERM DEPOSITS
The money supply (broad money or M2) reached MNT 20.5 trillion at the end of January 2020, increased by MNT 0.9 trillion (4.6%) compared with the end of the previous year. The main reason for this increase has resulted from MNT 667.8 billion increase of time deposit in domestic currency and MNT 611.5 billion increase of time deposits in foreign currency.
At the end of January 2020, the national currency in circulation reached MNT 837.8 billion, decreased by MNT 201.4 billion (19.4%) from the same period of the previous year. The Current account increased by MNT 105.2 billion increase but currency outside depository corporations decreased by MNT 127.9 billion from the same period of the previous year.
At the end of January 2020, the time deposit in domestic currency amounted to MNT 10.8 trillion, decreased by MNT 271.6 billion (2.4%) from the previous month while increased by MNT 667.8 billion (6.6%) from the same previous year.
Source: Montsame
RAIL TRANSPORT REVENUE INCREASES 15.2 PCT Y/Y
In January 2020, 2.5 million tonnes of freight were carried by railway transport. Compared to the same period of the previous year, the carried freight increased by 172.5 thousand tonnes (7.4%). This increase was mainly due to 257.1 thousand tonnes (32.9%) increase in export freight, 40.0 thousand tonnes (15.8%) increase in import freight, 17.9 thousand tonnes (6.2%) increase in transit freight, respectively.
In January 2020, 247.3 thousand passengers (double counting) carried by railway transport. The number of carried passengers increased by 40.1 thousand (19.4%) compared to the same period of the previous year.
In January 2020, revenue from railway transport reached MNT 62.7 billion, increased by MNT 8.3 billion or 15.2% compared to the same period of the previous year. This increase was mainly due to the transit and mining products, especially iron ore and zinc ore revenues. The revenue from railway increased by MNT 681.5 million (1.1%) compared to the previous month.
Source: Montsame
GENERAL BUDGET REVENUE AMOUNTS TO MNT 67.2 BILLION IN JANUARY
In January, state budget revenue reached MNT 67.2 billion which had a deficit in 2019. Budget revenue increased however, its surplus declined compared to the previous year. Government expenditure turned MNT 40 billion eliminating budgets of local, social insurance and human development. The total of grants and income amounted to MNT 767.7 billion while expenditure and net lending reached MNT 641.3 billion. The tax revenue went upward mainly affected by budget exceed expenses. Tax revenue reached MNT 656.4 billion, increased by 4.8 percent compared to the same period of the previous year.
This growth was mainly driven by a rise of 63.9 percent in value-added taxes, and 4.1 times increase in the property tax year on year. It is estimated that the budget deficit is MNT 2 trillion to 5.1 percent of GDP in 2020. After that new risk has followed up. According to the government’s decision, coal export completely suspended through ports of Gashuunsukhait, Shiveekhuren, Bichigt, and Bulgan until March 2, 2020.
Source: ZGM Daily
See also: Tax revenue reaches MNT 656.4 billion in January
WORLD BANK: MONGOLIA NEEDS TO CONTINUE STRENGTHENING FISCAL POLICY
The World Bank announced Mongolia’s Economic Review Report on Friday. The country’s economic growth has moderated slightly in recent years, but the medium-term outlook remains positive, the report said.
Considering the current situation of Mongolia’s economy, which is highly dependent on China, the impact of the new coronavirus may adversely affect the Mongolian economy, highlighted Andrei Mikhnov, World Bank Country Representative in Mongolia. He said, “The economic outlook is positive the medium-term, however, continuing to strengthen fiscal policy and maximizing foreign exchange reserves by keeping the FX interventions at a decent level remains the two most important policy goals for policymakers. Government’s economic reform in 2020 will play a significant role in market outlook and foreign direct investment of Mongolia.”
Previously in April, it anticipated Mongolia’s economy to grow 6.9 percent in 2019 and 6.3 percent in 2020. The report cautions of the risks, namely the political uncertainty, commodity price fluctuations, cross-border bottlenecks, implementation delay mega projects, and slower implementation of banking sector reforms.
Source: ZGM Daily
See also: Mongolia Economic Update: Macroeconomic Stability and Credit Growth
Mongolia: Medium Term Economic Outlook Remains Positive Amid Heightened Uncertainties
ASIAN PRODUCTIVITY ORGANIZATION (APO) RELEASES REPORT ON STRENGTHENING THE MONGOLIAN PRODUCTIVITY ORGANIZATION AND INCREASING PRODUCTIVITY WITHIN MONGOLIA
In a newly released report, the Asian Productivity Organization (APO) recommends how the Mongolian Productivity Organization (MPO) could expand its ability to undertake productivity promotion and improve its visibility as the country’s leading productivity organization. The report outlines a major transformation program requiring substantial resources and national initiatives. The key recommendation concerns the small staff size of the MPO and its available resources. The MPO needs to win major long-term client contracts from the public or private sector or significantly increase its membership to generate sufficient funds for improved programs and services.
The ideal option in the immediate future is for the MPO to obtain a substantial contract from the government for the development of a national strategy on productivity enhancement. The MPO should encourage and support the Mongolian government in relaunching the National Productivity Award, including assistance in introducing a Business Excellence (BE) initiative.
Source: Business Insider Singapore
TT-ZUUNBAYAN RAILWAY CONSTRUCTION POSTPONED ONE MONTH DUE TO CORONAVIRUS FEARS
Minister of Mining and Heavy Industry D.Sumiyabazar reports that development work of railroad in route Tavantolgoi-Zuunbayan has been delayed by a month period.
Construction work, which was planned to commence in March, has been put off until April in aims of preventing novel coronavirus outbreak that originated in China. 414.6 km railway development work has been concurrently running in Mandakh and Zuunbayan soums of Dornogobi aimag under State Policy on Railroad.
According to the Mongolian Railway state-owned shareholding company, railway development work performance is at 40 percent so far.
Source: Montsame
MONGOLIA SEEKS TO PRE-QUALIFY BIDS IN SOLAR-PLUS-STORAGE TENDER
Mongolia has launched an invitation call for project developers willing to take part in the pre-qualification round of a solar-plus-storage tender.
The invitation for bids was published last Friday by the Asian Development Bank (ADB), which is providing financial support for the initiative as part of its Upscaling Renewable Energy Sector Project. The competition concerns the engineering, procurement and construction (EPC) of the 5-MW Uliastai solar photovoltaic (PV) park and an accompanying battery storage facility. According to the ADB, the required investment for the project is estimated at around USD 7.95 million (EUR 7.9m).
Interested parties will be able to submit bids by March 27.
Under its green development policy, approved in 2014, Mongolia aims to make renewables account for 20% of its installed power capacity by 2020 and 30% by 2030. Data by the International Renewable Energy Agency (IRENA) shows that at end-2018, the country had around 63 MW of installed solar PV capacity.
Source: Renewables Now
See also: Mongolia kicks off solar-plus-storage tender
IFAD CALLS FOR INCREASING INVESTMENT IN RURAL DEVELOPMENT
A session of the International Fund for Agricultural Development (IFAD) Governing Council took place in Rome, the capital of Italy, from February 11 to 12. This event brought a number of delegates all around the world together at FAO headquarters in Rome to discuss a lot of challenges facing the agricultural development and other issues.
The IFAD is an international financial institution and a specialised agency of the United Nations that works to address poverty and hunger in rural areas of developing countries. The Governing Council is IFAD’s main decision-making body, which consists of all of IFAD’s 177 Member States and meets annually.
Mongolian Minister of Food, Agriculture and Light Industry Ch.Ulaan participated in the session.
On February 12, against the backdrop of escalating global instability, government and development leaders made an urgent call for greater investment in rural development to address hunger and poverty caused by conflict and climate change.
Source: The UB Post
WORKING HOURS OF MOTHERS REDUCED TO 6 HOURS A DAY IN UVS PROVINCE
To prevent the coronavirus disease, the local emergency commission of Uvs aimag convened a meeting on February 17.
At the meeting, it was decided to tighten control at traffic checkpoints and set up more checkpoints if necessary; promptly provide citizens with information on preventive measures; call for companies to shift to special work arrangements; limit the working hours of pregnant women and women who have children aged under 10 to a maximum of 6 hours a day; and put restrictions on vehicular movements to and from the aimag’s center, Ulaangom, from February 21 to 26;
Source: Montsame
See also: Uvs Province at risk of dzud disaster
THE CASUALTIES OF MONGOLIA’S DOOMED LOVE AFFAIR WITH COAL - EDITORIAL
All the spaces in the three-storey Songinokhairkhan healthcare facility in western Ulaanbaatar, Mongolia’s capital city, are full They are mainly inhabited by kids being dealt with for breathing issues, according to the busy nurses here.
The cause is heavy contamination, generally from the nation’s decades-long over-reliance on coal.
Children’s health centers in the location are overloaded and paediatricians can just deal with the signs of illness triggered by air contamination, they are not able to get rid of the cause.
A young mom, Ganchimeg, awaits the fever to let up in her one-year-old child’s shivering body They have actually been here all the time. “She’s been coughing a lot,” states the worn out mom. “When we came here they told me it’s probably pneumonia.” Her child smiles, and after that coughs.
UNICEF stated Mongolia’s air contamination problem a “child health crisis” in a 2018 report which mentioned: “In the last 10 years, occurrences of breathing illness in Ulaanbaatar amazingly increased consisting of a 2.7-fold boost in breathing infections per 10,000 population.
Source: Al Jazeera
UN CLIMATE CHANGE NATIONAL COORDINATOR: CLIMATE CHANGE IS CAUSING TRADITIONAL AGRICULTURE TO DETERIORATE - INTERVIEW
National coordinator for the United Nations Framework Convention on Climate Change Z.Batjargal held a meeting with journalists in aims of informing the public about sustainable development. Organized by ‘Association of Mongolian Journalists for Sustainable Development’ NGO, the meeting is a part of a series of meetings to be organized for journalists in aims of giving information on sustainable development.
- Mongolia has joined up with countries of the world to reduce climate change, and developed a document on Sustainable Development Agenda. However, our citizens do not seem to fully understand that the participation of all citizens is important. What are your thoughts on this matter?
- The main concept of sustainable development is to pass on the environment and its resources without pollution and using up to its full capacity to our next generations. Sustainable development is to be achieved through three core “pillars”: environment, economy, and society. This is all due to the necessity of another Earth if we do not keep track of how we use our resources and protect the environment.
Source: Montsame
BUSINESS
OT SUBMITS FEASIBILITY STUDY FOR TAVAN TOLGOI POWER PLANT
OT has made significant progress to develop a cost-competitive and optimal solution for TTPP with a fully negotiated EPC contract that is now ready for signature.
Turquoise Hill Resources (TRQ) Ltd. on Tuesday announced the submission of the Feasibility Study for the Tavan Tolgoi Power Plant (TTPP) Project to the Government of Mongolia by Oyu Tolgoi (OT) LLC. OT is obliged under the 2009 Oyu Tolgoi Investment Agreement to secure a long-term domestic source of power for the Oyu Tolgoi mine. The Power Source Framework Agreement (PSFA) entered into between OT and the Government of Mongolia on December 31, 2018, provides a binding framework and pathway for the construction of a Tavan Tolgoi-based power solution for the Oyu Tolgoi mine by June 30, 2023.
The power plant would be majority-owned by Oyu Tolgoi LLC and situated close to the Tavan Tolgoi coal-mining district located approximately 93.2 miles from the Oyu Tolgoi mine.
Source: ZGM Daily
See also: Rio running late on Mongolia coal power
Turquoise Hill: Power Plant Is Expected One Year Later Than Originally Planned
ETT IS TO DISTRIBUTE DIVIDEND OF UP TO MNT 96 THOUSAND
Board of ETT made a decision to distribute MNT 90 per stock, and 1072 stocks are equal to MNT 96480. Related to this, ETT JSC launched new application and citizens are able to check the stock amount, get other information and participate in stock market.
Citizens are able to get information from ETT website, Facebook page, 1072 FB Page and 1800-1072.
B.Gankhuyag, CEO of ETT, reported that “ETT JSC sold 15 million ton coal in 2019 and earned sales income of USD 1 billion and 30 million. Net profit is MNT 1 trillion and MNT 670 million was centralized to State Budget. Since 2016, the company have paid large amount of foreign and local debt, and this is the first time distributing dividend. But 580 thousand citizens haven’t made their registration, most of them are children and Mongolians who live abroad. Dividends will be distributed within 2020, and started from May 1.”
Source: GoGo News, Montsame
BANKING COMPETITION REVIEW Q3, 2019
Banking competition review 3Q19 has just been released in English.
The review content:
• News around the banking sector
• Banking sector key indicators
• Featured: Bank lending across provinces
• Assets, Loans, Savings and profitability of all commercial banks
Download: Bank-report-2019Q3_eng.pdf
Source: Economic Policy and Competitiveness Research Center
RIO TINTO SUBSIDIARY SEEKS ARBITRATION TO SETTLE TAX DISPUTE WITH MONGOLIA
Mining giant Rio Tinto Thursday said its Mongolian subsidiary Oyu Tolgoi LLC has initiated a formal international arbitration process to settle a dispute with the Mongolian Tax Authority related to taxes paid by Oyu Tolgoi between 2013 and 2015.
The dispute resolution provisions set out in the 2009 Investment Agreement (IA) and the 2015 Underground Mine Development and Financing Plan with the Government of Mongolia call for arbitration under the United Nations Commission on International Trade Law (UNCITRAL) arbitration rules, to be heard in London before a panel of three arbitrators.
On 16 January, 2018, Oyu Tolgoi received a tax assessment for about $155 million from the MTA relating to an audit on taxes imposed and paid by Oyu Tolgoi between 2013 and 2015. In January 2018, Oyu Tolgoi paid an amount of $4.8 million to settle unpaid taxes, fines and penalties for accepted items.
Source: NASDAQ
VARIOUS MSE-LISTED COMPANIES ANNOUNCE DIVIDENDS
To view companies' dividend payouts:
• Mongol Post
• APU
• Khurd
• BDSec
• Mongol Basalt
• UB-Buk
• Ard Insurance
• Ulaanbaatar Khivs
• Takhico
• Talkh Chikher
• Ard Financial Group
• Bayangol Hotel
• Mandal Insurance
• Makh Impex
• Ard Credit NBFI
• Genco Tour Bureau
• Technic Import
• Darkhan Selengiin Dulaan Tugeekh Suljee
• Monos Khuns
• Telecom Mongolia
• Khuvsgul Geology
• Gutal
• Arig Gal
• Tumen Shuvuut
Source: MSE
ASPIRE MINING MAKES STEADY PROGRESS WITH PLAN FOR EARLY DEVELOPMENT OF OVOOT COKING COAL PROJECT
Aspire Mining Ltd continues to make progress with its plan for early production of coking coal from the Ovoot project in northern Mongolia.
The company is advancing plans for a 560-kilometre special-purpose road to transport coal from the Ovoot Early Development Project (OEDP) to the nearest railhead at Erdenet.
A Definitive Environmental Impact Assessment (DEIA) is also being advanced for the OEDP in accordance with World Bank’s International Finance Corporation’s (IFC) ‘Equator Principles’.
Pending approval for the DEIA and the annual mine plan, mine site activities can begin prior to completing the OEDP definitive feasibility study (DFS).
The OEDP will include an open pit development of the Ovoot Coking Coal Project and trucking up to 4 million tonnes annually of washed coking coal along the special-purpose road to Erdenet.
A major recent development with the road has been its inclusion in the 2030 Road Development Plan for the Khuvsgul aimag (province).
Source: Proactive Investors
Click here to view the Aspire Mining release
MONGOLIA CANCELS ALL TOURISM EVENTS IN MARCH
The Minister of Environment and Tourism decided today (18 February) to cancel all tourism event scheduled in March.
The Mongolian National Emergency Commission has declared advanced emergency readiness and preparation in order to prevent the spread of coronavirus.
Mongolia organizes several winter events for attracting tourists. The events which are being cancelled are:
-The ‘Blue Pearl’ ice festival in Khuvsgul province on 2-4 March.
-The Eagle Festival on 4-5 March.
-The camel festival in Umnugobi province on 6-8 March.
-‘Mungulug shagshuurga’ ice festival in Khovd province.
-Nauryz Festival on 21-23 March
Source: News.mn
MSE MARKET CAP REACHES MNT 2.7 TRILLION, UP 9 PCT Y/Y
In January 2020, 14.7 million pieces of securities worth of MNT 4.2 billion were traded at the national stock market, which is decreased by MNT 17.8 billion (80.8%) and 4.2 million pieces of securities (22.0%) compared to the same period of the previous year, and decreased by MNT 502.3 billion (10.6%) and 13.1 million pieces (47.0%) from the previous month.
In January 2020, an average of indexes of the top 20 financial markets was 19132.9 units, increased by 178.0 units from the previous month, while it has decreased by 2451.5 units from the same period of 2019.
In January 2020, the total value of joint-stock companies operating at stock markets reached MNT 2.7 trillion, decreased by MNT 25.1 billion (0.9%) from the previous month, but increased by MNT 220.8 billion (9.0%) from the previous year.
Source: Montsame
ATAR URGUU ENDS 2019 WITH MNT 10.4 BILLION SALES REVENUE, PROFIT UP 17 PCT
Companies listed on the Mongolian Stock Exchange (MSE) had started presenting their 2019 financial reports. Atar Urguu JSC, the first bread and baked food manufacturing company established in Mongolia, reported revenue of MNT 10.4 billion in 2019. This is a 26 percent decrease from the previous year. During the reporting period, the net profit of the company increased by 17 percent to MNT 280 million compared to the same period of the previous year. This was driven by lower prices and reduction of costs, the company said. Atar Urguu supplies roughly 1,600 bakeries to more than 30 percent of the consumers in the capital city.
In the meantime, Talkh Chikher reported revenue of MNT 54.8 billion for the fiscal year 2019. This is an increase of 17.7 percent over the previous year. In the same period, the net profit of the company increased by 24.2 percent year-on-year, reaching MNT 2.4 billion.
Source: ZGM Daily
AVIATION INDUSTRY REVENUE DROPS 5 PERCENT
In January, revenue from the aviation industry amounted to MNT 31.1 billion, a decrease of five percent from the same period of the previous year. This was mainly due to the restriction made under the prevention of coronavirus outbreak in Mongolia. However, rail revenue reached MNT 62.7 billion, up 15.2 percent from January 2019. This was mainly due to freight earnings and mining products, in particular, iron ore and zinc concentrates. During the same period, the number of passengers by air increased by 3.4 percent and the number of passengers by rail increased by 19.4 percent respectively.
Source: ZGM Daily
SPEAKER AND BOM GOVERNOR MEET WITH BUSINESS LEADERS OVER BORDER CLOSURE RAMIFICATIONS
On February 18, Parliament Speaker G.Zandanshatar and Governor of the Bank of Mongolia B.Lkhagvasuren met with representatives of some domestic business companies to discuss about challenges arising due to suspension of schools and public activities and restrictions in border movement amid coronavirus outbreak in the world.
The businesspeople present at the meeting were expressing their requests to apply import tariff exemptions or delays on raw materials for face masks, and essential food items, and facilitate customs clearance for quicker transportation. Also, they were asking if there are any possibilities to postpone the loan interest payments and increase currency reserves.
Some representatives of the country's largest food companies, including ‘Ogooj’ LLC CEO Ts.Tumengerel and Ulaanbaatar Guril LLC CEO O.Dorjkhand were saying that the companies hold emergency stockpiles enough for one to three months. However, the current regime of border closure is raising the possibility of supply shortages, and certain exemptions from customs tariffs and duties will allow keep the prices stable, the CEOs said.
Source: Montsame
ERDENET MINING CORPORATION TO COMMENCE MAJOR PROJECTS THIS YEAR
Within its main directions of development, Erdenet Mining Corporation plans to carry out technical and technological modernization and commence capacity building projects with a purpose to increase the ore reserve, reduce costs and improve competitiveness.
In producing value-added products, the Corporation will implement projects to expand repair shops, produce cathode copper, and establish a plant to smelt copper concentrate and process. Of them, the project on establishing a plant to smelt copper concentrate and process will be implemented in 2020-2022.
Erdenet Mining Corporation intends to produce not only cathode copper but also all kinds of copper wire and the parts of cables. "If we find a solution for sulfur gas which emits from the copper smelting, the project will be implemented in 2020-2023," said Kh.Badamsuren, General Director of ‘Erdenet Mining Corporation’ state-owned enterprise.
Source: Montsame
MONGOLIA'S UNITEL PICKS CSG TO DRIVE DIGITAL TRANSFORMATION
CSG was selected by Mongolia’s Unitel to provide a technology platform that will help drive its digital transformation programme and support its rapid growth. As part of this new engagement, CSG will deploy Singleview, a charging, billing, customer, and revenue management platform to help Unitel boost process agility, enhance customer experience, and reduce costs while providing precision and insights across all operations.
The platform will also leverage CSG’s Interconnect product for managing wholesale, settlement, cost/revenue allocation; Total Service Mediation for real-time usage management and CDR collections; and CSG Activation for provisioning and activation. The CSG platform, backed by partners including Seamless Distribution Systems, will enable Unitel to deliver a wide range of services including prepaid and postpaid mobile, VoIp, IPTV, WTTx broadband access, enterprise services, and DTH and OTT TV.
Source: TelecomPaper.com
ASA CIRCUS HAS TO USE ITS ORIGINAL PURPOSE
The 80th anniversary of the establishment of a circus school in Mongolia will be celebrated this year, and the former State Circus building will reach 79 years of age. Talented, hardworking, gifted artists and coaches who carry the mantle of the circus art in Mongolia today are not able to unite and create performances regularly as they don’t have a place to call their own.
The former State Circus has been privatized and is now known as ASA Circus. Sumo champion Asashoryu D.Dagvadorj bought the circus promising to develop the circus art but the building now houses are restraint and pub.
Circus performers who have no place of their own to train regularly in Mongolia prepare for performances only when they receive offers from abroad. A circus company called Angel held a joint performance with a traditional music and dance troupe in Paris from November last year to January this year.
Source: The UB Post
MINING AND MINERALS FIRMS DONATION CAMPAIGN FOR THE FIGHT AGAINST THE COVID-19
Mining and minerals firms have announced a donation campaign for the combat against the COVID-10 pandemic that has spread across multiple countries. The campaign will last for a month and the raised fund will be donated to China for the fight against the virus and material support, as well as to help Mongolia in mitigating the risk of spread.
Initiated by the “Mongolian National Mining Association”, the campaign has received the support of mining and minerals associations, such as “Geological Society of Mongolia”, “Mongolian Industrial Geologists Association”, “Mongolian National Industrial Council, “Mongolian Oil and Gas Association”, “Mongolian Coal Association”, and “Association of Women and Minerals”. Members of these associations announced to donate a one-day salary.
The representatives of this sector met with the Minister of Mining and Heavy Industry D.Sumiyabazar to inform him of the campaign. Minister D.Sumiyabazar expressed his support for the campaign and agreed to donate a one-day salary.
Source: Asia Mining Magazine, Montsame
See also: Mongolia launches campaign to help China fight coronavirus
MONYPOLYMET CEO S. ENKHTUYA ON JOINING THE VOLUNTARY CODE OF RESPONSIBLE MINING
That eight of the largest mining companies have come together to join the Voluntary Code of Responsible Mining has great importance in that this will enthuse other companies to join them in strengthening the case for responsible mining. It will also create pride among citizens working in mining as opening the way for raising the sector’s reputation in the public mind.
We expect many positive results from our decision. Other companies will now get opportunities to learn from our experience and come to know better the good practices followed by responsible entities. They can then adopt these practices and standards in their own work. To me the most important thing is that the eight of us can be a strong voice of encouragement to so many others to come join us. Together we shall resolve many urgent problems in the sector by submitting proposals for the review of laws, rules, resolutions and decisions.
Source: Mongolian Mining Journal
MIAT SELECTS SABRE TO DRIVE AMBITIOUS GROWTH PLANS FOR 2020 AND BEYOND
Sabre Corporation, the technology and software company powering the global travel industry, today announced a new alliance with national carrier MIAT Mongolian Airlines. The long-term agreement to implement Sabre’s market intelligence global demand data solution will provide robust market insights as the airline moves forward with highly ambitious growth plans.
“We are thrilled to announce our new relationship with Sabre at such a key time for our airline. Our plans to grow our fleet and routes, our passenger numbers and our revenue are directly in line with the exponential growth that the country’s tourism industry is currently witnessing,” said Battur Davaakhuu, president and CEO of MIAT Mongolian Airlines.
“To realise our exciting objectives, we must leverage the most innovative technology platforms, and that’s why we have selected Sabre Global Demand Data. The solution will ensure that we have strong data right at our fingertips, providing accurate and complete market information to make well-informed decisions,” he added.
Source: TravelDailyMedia.com
See also: MIAT cancels flights to Bangkok and Tokyo
COULD THE MONGOLIA ENERGY CORPORATION LIMITED OWNERSHIP STRUCTURE TELL US SOMETHING USEFUL?
A look at the shareholders of Mongolia Energy Corporation Limited can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.
Mongolia Energy is a smaller company with a market capitalization of HK$145m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutional investors have not yet purchased shares. We can zoom in on the different ownership groups, to learn more about Mongolia Energy.
Source: SimplyWall.st
INTERVIEW WITH NANCY JOHNSTON, FOUNDER OF LUXURY YAK FIBRE BRAND TENGRI
The house of Tengri creates exclusive, understated products such as sweaters, accessories, coats and jackets and throws and blankets from natural materials sourced from remote corners of the world. All of the company’s products are designed and made with the highest level of craftsmanship, produced for “discerning and conscientious global citizens”.
Tengri founder Nancy Johnston is a Hollywood born Asian-American living in London with a penchant for travel and adventure. The idea behind Tengri was conceived when she was travelling with friends and staying with herder families in Mongolia. “It was fascinating to see the delicate and interwoven relationship between people, animals and the land, and I developed a deeper understanding and respect for the bond between the herder families' livelihoods, their yaks, and the Mongolian landscape,” Nancy explains.
“I also discovered how the Khangai yak – an indigenous wild species found in the Khangai mountains of western Mongolia – could help preserve this nomadic way of life.
Source: KnittingIndustry.com
MONGOLIANS EMBRACE 21ST CENTURY TOURISM BOOM - EDITORIAL
When the New Ulaanbaatar International Airport opens in May 2020 it will be able to handle as many as 3 million passengers a year, more than three times the capacity of the current airport, with the potential to expand to cope with 12 million.
International tourism is growing fast here – from 529,000 visitor arrivals in 2018 to 549,756 in the first 11 months of 2019. The government has given tax breaks to companies building hotels, and tourism businesses no longer need licenses. There are now more than 300 hotels, 400 travel companies and 600 resort and tourist camps in the country.
But, once visitors leave the city, the great wilderness of Mongolia is still there in all its glory. The first step for many is the relatively short journey to a massive statue of the leader on horseback, standing just east of Ulaanbaatar, often referred to as “UB.”
Source: News.mn
BIG MOGUL FUND CHAIRMAN: WE NEED TO CREATE A RESERVE WITHOUT HALTING COAL MINING - INTERVIEW
Domestic coal export companies have faced great challenges these days. One of the representatives of those companies, Batmunkh Batkhuu, Chairman of Big Mogul Fund, emphasized that as a mining dependent nation, the government of Mongolia should pursue trade policies and implement a program to support private sectors. Additionally, he noted that companies need to stock up coal during the quarantine.
-Big Mogul Fund exports coal through the border crossing in Zamiin-Uud. How did China's procurement affect the import of Mongolia?
-Currently, the ports of Erlian and Zamiin Uud have not been suspended for export and import transportations. However, restricting the movement of citizens tend to affect export. We were planning to export nearly 300,000 tons of coal concentrate this year however, the situation is unpredictable as China’s economy continues to shrink.
Source: ZGM Daily
