MRO TOOLS SHOWROOM COMING SOON…
As you already know Euro Khan starting the Maintenance Repair and Operation (MRO) tools business. At the beginning of June, you can visit our showroom to experience DUROFIX cordless power tools, HANS high-quality hand tools, and WISDOM cordless & corded miner’s cap lamps. We are expecting to receive DUROFIX in mid-April and HANS at the end of May. Moreover, you can give a customized special order from world-renowned brands catalogs. Stay tuned.
EK IS WORKING ON CONTRIBUTING AIR EMISSION REDUCTION
Euro Khan has started a project to improve the electrostatic dust precipitator model with the support of the Gesellschaft für Internationale Zusammenarbeit (GIZ) carrying out together with the consultation of German Mongolian Institute of Technology (GMIT) and our international and national experts since December 2019. The Electrostatic dust Precipitator (ESP) device is designed for gers and small houses to decrease the dust particle emissions out of the chimney. The previous phase of this project development and first prototype of the ESP was carried out by GMIT under support of GIZ. As per result of phase 1 testing, the ESP showed a very promising result that It could remove up to 60% of the suspended particulate matter emissions during a traditional stove operation. Based on this potentiality of the result, Euro Khan commenced the next stage development of the ESP and currently transferred a newly designed prototype to the laboratory test.
COVID 19 UPDATES
In order to prevent the spread of the infection, Mongolia took drastic steps such as canceling the annual Tsagaan Sar celebration, closing roads connecting provinces and cities for five days as well cancelling flights with coronavirus hit countries. Mongolia has canceled its flights to and from Ulaanbaatar and important destinations, namely Tokyo, Bangkok, Seoul, Busan, China, Hong Kong and Taiwan until 28 March. Mongolia decided to suspend flights between the Russian cities of Irkutsk and Ulan-Ude from 2 March until 11 March.
We do not have Covid 19 in MONGOLIA.
ECONOMY
COAL EXPORT THROUGH ZAMYN-UUD CHECKPOINT RESUMED
Beginning from March 4, heavy trucks loading coal started crossing the border through Zamyn-Uud border checkpoint after being fully decontaminated. So far, 1500 tons of coal have been exported. Since March 1, a total of 25 thousand tons of coal has been exported by railway, reported the Mongolian Customs General Administration.
At the meeting of State Emergency Commission held last week, it decided to resume the export of coal and crude oil from March 15, but it was considered unnecessary to delay until March 15 and gave a directive to commence the coal export earlier if the preparations are done well.
In the first two months of this year, 392 thousand tons of coal were exported through Zamyn-Uud checkpoint.
Source: Montsame, GoGo News
MINERAL RESOURCE PRODUCTS TO BE EXPORTED TO CHINA FROM MARCH 15
Parliament decided to resume coal export to China to encourage economic growth policy in order to recover the economy breakdown from Covid-2019. On this subject, coal and crude oil will be exported through the southern border of Mongolia beginning on March 15, 2020, in compliance with ban and hygiene rules. Specifically, freight truck drivers required to have sanitizing conditions, protective garments, and outbound trucks will be scheduled to return on the day of the border crossing.
According to the Minister of Finance, Khurelbaatar Chimed, Oyu Tolgoi (OT) is producing coal concentrate regularly. They are working under the suspension and sterilizing regulations. Additionally, the outbound truck export will continue, following the rules.
If entities could not pay social insurance during the time of emergency, the undue loss will not be added. Budget revenue has been decreased by MNT 210 billion during the quarantine. Also, The Minister of Finance said it is estimated that budget loss will be recovered by later this year so the budget will not be amended.
Source: ZGM Daily
GOLD PURCHASE TOTALS 4.3 TONS IN TWO MONTHS, A TEN-FOLD INCREASE
The Bank of Mongolia (BoM) purchased 4.3 tons of gold in the first two months of 2020. In February, it purchased 952 kg of precious metals. This is an increase of 856 kg from the purchase of 96 kg in the same period of last year. In February 2020, BoM’s branch in Darkhan-Uul province purchased 16 kg of precious metal and the branch in Bayankhongor province 18 kg. The average price of the gold stands at MNT 140,292.94 as of February 2020.
Source: ZGM Daily, Montsame
BOM MAY CUT INTEREST RATE
The Bank of Mongolia (BoM)’s Monetary Policy Committee is scheduled to meet earlier this month to discuss whether to cut or leave the policy rate untouched at 11 percent as it did consecutively in the last two years. The inflation rate, which plays an important role in the monetary decision, stood at 5.6 percent in Mongolia, nearing around BoM’s target level.
Central banks around the world have been introducing their intention to implement loose monetary policy since the lethal virus COVID-19 outbreak spread. A loose monetary policy occurs to decrease unemployment and spur economic growth when it slows.
In 2016, the central bank of Mongolia increased the policy rate to 15 percent, in an effort of halting the devaluation of tugrik at the time. It has been decreasing the rate since then to the current level.
Source: ZGM Daily
FITCH RATINGS: MONGOLIA EXPOSED TO COVID-19 ECONOMIC FALLOUT
Fitch ratings reported that exposure to economic disruption from the COVID-19 virus outbreak is highest in Hong Kong and Mongolia. Additionally, Mongolia’s commodity-driven economy is immensely dependent on China. If the restriction to exports extends for several months, Mongolia’s external position and macroeconomic stability can still be adversely affected.
Mongolia has improved economic performance in recent years has permitted the country to build a stronger financial cushion. Fitch believes these are sufficient for a short-term shock. Moreover, the Government of Mongolia (GoM) faces no external bond maturities until early 2021.
The chance of a sharp loosening of fiscal policy ahead of parliamentary elections, most likely in June, could also increase if the authorities become more concerned about the economic impact of the virus said, Fitch.
Source: ZGM Daily
INFLATION EXPECTATIONS REMAIN POSITIVE
According to the inflation expectation survey, households expected inflation to be 5.6 percent, business people 4.4 percent and financial experts anticipated it to be 7.8 percent in the first quarter. Over 57 percent of the participants and 50 percent of entrepreneurs believe that inflation is lower than the 8 percent target. The Bank of Mongolia (BoM) conducts the survey among entrepreneurs, financial analysts, and households quarterly based on international experiences. The National Statistics Office (NSO) announced that inflation stands at 5.6 percent in its latest report.
The economic index has been increased comparably from a year earlier. The majority of citizens expect the economic conditions to be better within the next 12 months. In other words, the inflation expectation survey indicated that people have affirmative hope for the economy. Household finance is expected to rise in the upcoming year. However, the Mongolian tugrik rate against the U.S dollar has adversely affected the household’s living expenses.
Source: ZGM Daily
SALES MANAGERS’ INDEX FALLS TO 39-MONTH LOW AS COVID-19 THREATENS GROWTH
Mongolia’s economy has been declining sharply due to COVID -19 outbreaks in China, according to World Economics. Also, global economic growth is projected to slow down since it did in 2009, the Organization for Economic Cooperation and Development (OECD) warned. At this time, there is an increasing need for prompt action by the Government and the Central Bank.
The economy of Mongolia is highly dependent on the Chinese market. In particular, due to the proliferation of new types of coronaviruses, China has stopped business operations in some regions. This is causing an unprecedented stagnation in Mongolia’s market, assessed the World Economics.
Indexes that show market expectations have been highlighted. The Sales Managers’ Indexes (SMI) fell to 35 units as of February 20, the lowest level of 39 months.
It also noted that the business confidence index fell to the 38-month low and the sales growth index 59-month low.
Source: ZGM Daily
THE TELEGRAPH NAMES MONGOLIA AMONG 16 COUNTRIES SUITABLE FOR TRAVELING WITHOUT CORONAVIRUS
‘The Telegraph’ has published a list of 16 beautiful countries that are suitable to travel, with no confirmed cases of the coronavirus infection. The list included the following countries: Bolivia, Namibia, Cuba, Turkey, Mongolia, Madagascar, Peru, the Maldives, Malta, Laos, Botswana, South Africa, Uzbekistan, Columbia, Hungary, and Tanzania.
About Mongolia, the article said, “The country known for its great vast lands is the world’s most sparsely populated country (the population is 20 times less than the UK population). Journalist for Telegraph Travel Terry Richardson wrote, “Big Sky Country would be an inadequate sobriquet for Mongolia. For this enormous landlocked country of green steppe, vast flat plains, intricately braided rivers, electric-blue highland lakes, snow-licked mountains, dense pine forests and shifting desert is presided over by a skyscape of such bold blue immensity it beggars description.”
Source: Montsame
DESPITE NO CASES, MONGOLIANS PREP FOR BATTLE AGAINST COVID-19
Mongolians have donated cash and supplies to support their government's efforts to prevent the spread of the coronavirus despite no cases of the disease having emerged in the country.
Public figures in Mongolia including singers, bands and wrestlers have donated money and much-needed prevention supplies to the country's Health Ministry, hospitals and other organizations.
Former sumo grand champion Dolgorsuren Dagvadorj recently provided 400 pieces of medical protective gear to the ministry.
A Mongolian herder from the southwestern province of Bayankhongor on Monday donated 10 sheep to the National Center for Communicable Disease of Mongolia to support the organization's anti-virus efforts.
"Every citizen's participation is important to prevent the spread of COVID-19. I am glad that the Mongolian people are not only consciously implementing, but also supporting the government's anti-coronavirus efforts," Sambuu Lambaa, former Mongolian health minister, told local media.
Source: Xinhua
See also: Mongolian Health Ministry receives recyclable face masks
Emergency Management Agency receives MNT 227 million in donations for coronavirus prevention
USAID to help Mongolia address the threat of COVID-19
INDIA-MONGOLIA BUSINESS AND TRADE TIES ON THE UPSWING
Business and industry representatives from Mongolia called for a Conference and Photo Exhibition on Indo- Mongolia Relations at PHD Chamber of Commerce and Industry, to enable greater economic cooperation between the two countries that would result in an expansion of business ties between the countries.
H.E. Mr. Gonchig GANBOLD, Ambassador Extraordinary and Plenipotentiary of Mongolia said that India shares the oldest ties in Asia with Mongolia. The India-Mongolia economic cooperation is the shining example of our lasting friendship, he added.
Mongolia and India have shared a spiritual heritage in glorious past, said Mr GANBOLD.
Mr Gonchig cited an example of the similarities between the trade culture, tradition, way of life of Indo-Mongoloids in Himalayan Valley and North east of India, he stressed upon the promising strategic partnership and increasing bilateral relations and cooperation at the visit of Indian Prime Minister Mr. Narendra Modi in 2015.
Source: PHD Chamber of Commerce and Industry
WHO TO SUPPLY THE LATEST MEDICINE, VACCINE AND DIAGNOSTICS TO MONGOLIA
Head of the State Emergency Commission and Deputy Prime Minister U.Enkhtuvshin hold meeting with United Nations Resident Coordinator Tapan Mishra and WHO Representative in Mongolia Sergey Diorditsa, and exchanged information.
United Nations Resident Coordinator Tapan Mishra said “The Government of Mongolia is making proper decisions in relevant with this risky situation and preventing citizens from Coronavirus infections which shows good example to the world. Mongolian citizens are very responsible and try their best. UN is cooperating with WHO in every part and providing relevant information”.
WHO Representative in Mongolia Sergey Diorditsa said “WHO will supply medicine, vaccine and diagnostics, developed by the latest technology, to Mongolia during this period of Coronavirus spread”.
Source: GoGo News
CRIME RATE DOWN BY 9.3 PCT IN FIRST 2 MONTHS
Mongolia has seen a 9.3-percent drop in the number of crimes recorded in the first two months of this year, the country's National Police Agency (NPA) said Wednesday.
A total of 6,745 criminal cases were recorded across the country in the January-February period, the NPA said in a statement, adding that 65.3 percent of the total crimes occurred in the country's capital Ulan Bator, home to half of the country's population of over 3.2 million.
Two types of crimes -- theft and crimes against human life or health -- accounted for around 50 percent of the total, according to the police agency.
A total of 291 people were killed in crimes in the above-mentioned period, it said, adding that the number was a year-on-year decrease of 16.4 percent.
Source: Xinhua
DOMESTIC TRAINS PUT BACK INTO OPERATION IN ALL ROUTES
Domestic trains in all routes have begun to be operated from March 3. According to the decision made by the State Emergency Commission on February 26, traffic movement of public transport such as buses, trains, and planes had been suspended as a precautionary measure. Per the decision made at the State Emergency Commission meeting on March 1, the movement has been opened from March 3.
However, the trains to the cities of Erlian, Hohhot, and Beijing in China continue to be suspended.
Source: Montsame
See also: Passenger trains to go under decontamination every two hours
MONGOLIA’S SOCIAL NETWORK USAGE RISES 11 PERCENT
As of January 2020, the number of internet users in Mongolia totaled 2.2 million, according to a recent report by We Are Social and Hoot-suite research organizations. This is a slight change from the previous year. Internet penetration is 68 percent nationwide. The average mobile Internet speed is 19.7 megabits, which is equal to 31.7 megabytes of the fixed internet.
Meanwhile, the number of social network users increased by 219,000, or 11 percent, from April 2019 to January 2020. Cellular users grew 4.7 percent to 4.42 million. Facebook is projected to have an average of 2.1 million ads delivered, up to five percent from the previous quarter.
The General Election Commission has announced that it will partner with Facebook during the parliamentary elections this year. According to the report, 98.9 percent of all consumers regularly access Facebook on mobile phones and the remaining 1.1 percent on laptops or computers.
Source: ZGM Daily
NEW MNT 20,000 BANKNOTES PUT INTO CIRCULATION
According to the decree of Governor of the Bank of Mongolia (BoM) banknotes for MNT 20,000 which had produced in 2006 will be removed from circulation beginning on March 1, 2020. The 2006 banknotes tended to counterfeit illegally due to lack of public security element and it has been suspended for settlement from March 1, 2020. The old banknotes which had issued in 2006 have no window and bow as well as the number of 2006 is printed on lower-back, left corner of the money. Citizens who have the expired banknotes hold a right to exchange with newly produced notes before it starts to get circulated.
Source: ZGM Daily, GoGo News
FORMER FRC CHAIRMAN: THE LABOR MARKET IS SLOWLY RECOVERING AND NEEDS PROTECTION - INTERVIEW
ZGM Daily sat down with Davaasuren Sodnomdarjaa, Former Chairman of the Financial Regulatory Commission (FRC), to discuss Mongolia’s priority measures during the time, in which coronavirus outbreak impact on the economy is growing rapidly.
-The world economy is fluctuating due to the coronavirus infection and countries are facing challenges. How do you see the coronavirus impact on the economy as an economist?
-The very first outbreak of the flu pandemic appeared in 1968 in Hong Kong. Since then respiratory diseases have been stabilized for 30 years. However, the bird flu had recorded in 1997. Since then sorts of virus diseases have spread for 20 years and it adversely affected the global economy. Thus, countries are issuing national strategies for the prevention of infectious diseases.
-What are the most vulnerable sectors during respiratory disease?
-The labor market is the most vulnerable. Entities are likely to lay off and shrink job positions when the economy starts to fall.
Source: ZGM Daily
CASHMERE AND CLIMATE CHANGE THREATEN NOMADIC LIFE - EDITORIAL
Mongolia's vast grasslands cover about three-quarters of the country, where nomadic herdsmen have maintained traditions stretching back centuries. But this world is changing - fast.
About 70% of this once verdant land has now been damaged, mostly due to overgrazing. The main culprit is the country's estimated 27 million cashmere goats, which are farmed for their highly-prized wool.
Unlike the country's 31 million sheep, the goats dig out and eat the roots of the grass, making re-growth much harder.
Add climate change on top, and the United Nations warns that a quarter of Mongolia's grasslands have now turned to desert. The nation is, in fact, particularly vulnerable to rising temperatures, with a 2C increase over the past 70 years, higher than the world average.
"When I was child, I vividly remember the grasses would grow taller, and we would receive more rain," says Batmunkh, a herder in the Dornod province.
Source: BBC
BUSINESS
OT BOARD CHAIRMAN: NEW LANDMARK RISES ON SOUTHERN GOBI
Towards the end of last year, an important event took place in the history of modern mining in Mongolia. It was the completion of a production shaft, one of the key infrastructure facilities of the Oyu Tolgoi Underground Project, with its headframe tower rising to the sky.
On the vast plains of Khanbogd, two distinct landmarks now catch our eye. First is Mt. Khanbogd, proud to be blessed by the sun. This sacred mountain, created by God, contains the best of minerals, and is also a storehouse of history and legends, a slice of human culture. God only knows how and when it was created and what it has seen since then. The second landmark, not far away from the sacred mountain, is the Oyu Tolgoi tower – built only recently by human intelligence and hard work. It looks mesmerizing, especially at dawn and dusk. I ask for your forgiveness for daring to compare these two “creations”, but, as it is said, there is always some connection between things.
Source: Mongolian Mining Journal
See also: Oyu Tolgoi donates MNT 310 million for measures against COVID-19 infection
MONGOLIA IMPORTED 541.5 THOUSAND TONS OF GASOLINE IN 2019
Mongolia imported 541.5 tons of gasoline in 2019, according to the statistics of Mongolian Customs General Authority.
The figure represents the increase of 105.9 thousand tons as compared with 2018. In 2018, the average import price of gasoline per ton was USD 708.8 and the price fell by 14.7 percent, reaching USD 604.6 in 2019.
As for the diesel fuel, 1080.4 thousand tons were imported in 2019 which increased by 236.1 thousand tons compared with 2018. The average import price of diesel fuel per ton was USD 679.5 and it decreased by USD 59.9 or 8.8 percent in 2019.
Source: Montsame
APU JSC'S NET INCOME REACHES MNT 74.4 BILLION IN 2019
MSE-listed APU JSC reported a net income of MNT 468 billion in 2019. This is an increase of 8 percent compared with the same period of the previous year. During the reporting period, the company has benefited MNT 74.4 billion, the rise of 54.3 percent from a year earlier. The chief board of directors of APU stated that the company decided to distribute dividends worth MNT 75.4 billion or MNT 71 per share. The company leads by a number of dividends to distribute in 2019 among other MSE listed entities. APU JSC had been allocated MNT 48.9 billion or 84 percent dividends from its net profit in 2018. According to the MSE, the name list will be revealed after the shareholders meeting. Dividends will be deposited in shareholders’ accounts through the Central Securities Depository within August 31, 2020.
Source: ZGM Daily
NEW U.S.-MONGOLIA PARTNERSHIP TO EXPAND ACCESS OF LOCAL BUSINESSES TO FINANCIAL SERVICES
The U.S. government, through the United States Agency for International Development (USAID), today formally launched a five-year, MNT 41.3 billion ($15 million) Business Excellence for Sustainability and Transparency (BEST) project to help grow and diversify Mongolia’s economy by increasing lending to small and medium enterprises (SMEs) and improving economic governance and accountability.
This program is conducted with the assistance of the Government of Mongolia through the Ministry of Finance.
U.S. Ambassador to Mongolia Michael S. Klecheski and the Government of Mongolia Minister of Finance Ch. Khurelbaatar gave remarks at the launch of the new initiative, which will be implemented in partnership with Development Solutions in Ulaanbaatar and 12 aimags across the country.
“The U.S. government recognizes small and medium enterprises as important drivers of social opportunities and economic development,” said Ambassador Klecheski.
Source: Montsame
HEALTH INSURANCE FOR FOREIGN CITIZENS LIVING IN MONGOLIA
Foreign citizens working for economic entities of all types of ownership, non-governmental organizations, religious and other organizations and citizens by labour contract or work contract, remuneration contract specified in a Civil Law on Mongolia and if not stated otherwise in international treaties of Mongolia or by foreign economic entities operating on the territory of Mongolia, foreign citizens project or program unit implemented by foreign aid and loans, diplomatic missions of foreign countries and international organizations shall pay monthly social insurance by compulsory.
Contribution rates for the Social health insurance are 4 percent of monthly salary and similar income. Therefore, for foreign nations with no specific employment can pay the Social health insurance by voluntary.
Every person enrolled to Social health insurance can get health insurance benefit packages from provincial and district hospitals and clinics as well as from regional and diagnostic centers without any regional restriction.
Source: Mongol Advocates
FIRST UNDERGROUND MINE MUSEUM PLANNED IN BERKH MINE
The colorful stones, herder Sanjaa found from Jonshit Tolgoi in Khentii aimag and showed to the geologists of Khar Yamaat mine in early September of 1954, turned out to be fluorspar. In the same month, a team of nine from SovMongolmetal Society laid the foundation stone of the Berkh mine and started mining activities. The estimated reserves of the deposit were used up in 1994.
The now non-operational mine is planned to be turned into the first ever underground mine museum in Mongolia. The Steering committee members of the museum project have introduced the plan to Chief of the Cabinet Secretariat of Government L.Oyun-Erdene.
The mine museum will feature a training and research center for students majoring in mining and minerals engineering, showing the underground mining process. The project is of great significance in developing a tourist attraction in Berkh city in line with the ‘Chinggis Khaan historical tourism region’ project.
Source: Montsame
“EXCLUSIVE” COMPANY DONATES PROTECTIVE WEAR TO HEALTH MINISTRY
Within its social responsibility action, ‘Exclusive’ brand has handed over domestically produced protective wears for professionals working in risky areas to the relevant organizations.
About the standard and design of the protective wears, Director General of ‘Exclusive’ Company G.Maitsetseg said “We made two types of protective wears. One is protective suit that is used for spraying disinfectants. We manufactured 40 pieces of disinfecting protective wears and handed over them to the Ministry of Health. Another one, we handed over to the Deputy Prime Minister yesterday, was protective clothing that creates vacuum environment.
Since Mongolia have no protective clothing standard, we produced these protective wears under Polish standard. There are also sewing-technology and standard. If we have raw materials, we can domestically manufacture it. Furthermore, there is necessity to have protective wear standard and base for raw material that meet the standard.
Source: Montsame
STATE BANK SIGNS MOU TO COOPERATE WITH DEVELOPMENT SOLUTIONS NGO
The colorful stones, herder Sanjaa found from Jonshit Tolgoi in Khentii aimag and showed to the geologists of Khar Yamaat mine in early September of 1954, turned out to be fluorspar. In the same month, a team of nine from SovMongolmetal Society laid the foundation stone of the Berkh mine and started mining activities. The estimated reserves of the deposit were used up in 1994.
The now non-operational mine is planned to be turned into the first ever underground mine museum in Mongolia. The Steering committee members of the museum project have introduced the plan to Chief of the Cabinet Secretariat of Government L.Oyun-Erdene.
The mine museum will feature a training and research center for students majoring in mining and minerals engineering, showing the underground mining process. The project is of great significance in developing a tourist attraction in Berkh city in line with the ‘Chinggis Khaan historical tourism region’ project.
Source: Montsame
GREEN APARTMENT COMPLEX TO BE BUILT ON LAND FREED UP BY GER AREA RESIDENTS
The Capital City Housing Corporation launched a project last November to offer ger area residents ready-to-occupy apartments in exchange for their land lot with the purpose of reducing air, soil, and other environmental pollution in Ulaanbaatar. On March 3, Capital city's First Deputy Governor in charge of development policy J.Batbayasgalan and authorities of the housing corporation handed over apartment keys to the citizens who accepted the offer.
The first 310 citizens involved in the project received their apartment keys in exchange for their land lot located in the 9th subdistrict of Songinokhairkhan district on February 20. Around 140 citizens have obtained their apartment keys today. They had agreed to give away their land lot in the 10th subdistrict of Songinokhairkhan district, which has been one of the target areas of the ger-area redevelopment project since 2013.
Source: Montsame
MONGOLIAN GOVERNMENT AGENCY CHOOSES STEALTHMAIL TO PROTECT ITS EMAIL COMMUNICATION
StealthMail, an email security and telecommunications company has won the tender to protect the email communication of the Mongolian government – one of the most demanding clients in the Eastern Asia region.
Although email is still the main communication channel for government and business correspondence, this method of data transferring is extremely vulnerable and unsafe in terms of preserving confidential information. Email's situation pushes the majority of businesses and national agencies to take action to protect their most invaluable resource against the threats of BEC/EAC scams, man-in-the-middle attacks, phishing.
StealthMail uses advanced encryption algorithms, patented methods of data scrambling, splitting and mixing. The solution directs obfuscated data packets through random nodes of the cloud server deployed in the company. Thanks to this technology, data stays encrypted both at rest and in transit, becoming available only to verified and authenticated users, who have complete control over their email content.
Source: PrZen.com
