COOPERATION AGREEMENT OF EUROCHAMBER, DMUV, BBG, and FMCCI SIGNED
We are very pleased to inform you that EuroChamber reached an agreement with the German Mongolian Business Association (DMUV), the French Mongolian Chamber of Commerce and Industry (FMCCI), and the British Business Group (BBG) to cooperate closely. Our CEO Dr. Oliver Schnorr is a board member of EuroChamber.
With the signing of the cooperation agreement the German, French and British business associations become represented in the EuroChamber Board, allowing for common decision making, leadership, and alignment.
The three European bilateral business associations' member companies have herewith become members of EuroChamber. With this step, EuroChamber Mongolia now provides a united platform to more than 125 British, French, German and other European as well as Mongolian member companies from very diverse sector backgrounds.
“CHULUUT” FLUORSPAR PROCESSING PLANT PROJECT UPDATE
The Chuluut project’s construction has been reached 50 percent of completion.
EK IS WORKING ON CONTRIBUTING TO AIR EMISSION REDUCTION
As continuity of the development of new Electrostatic precipitation, we have implemented the next step testing, in real-life conditions. Due to the restrictions of the quarantine situation, we could not involve the targeted number of households in the field/pilot tests however conducted the test in a few selected households for installing ESP systems on stoves. In the pilot test households, both briquette and raw coals in traditional stoves and improved stoves were used. To assess the potential contribution of the ESP system to reduce PM emissions from stoves, the following measurements were conducted: PM concentrations (flue gas, indoor, outdoor), amounts, and chemical composition of precipitates.
EK SIGNED A CONTRACT WITH POWER PLANT 4
On June 10, EK awarded the supply contract of SIAMS 800 brand fragment analyzer microstructures solid bodies which consist of Olympus Optic microscope brand software Power Plant 4 laboratory department. SIAMS brand panoramic microscopy systems reliable and accurate measuring instruments. Only custom-made for your needs.
We believe that Euro Khan LLC and Power Plant 4 will continue to strengthen the partnership and cooperation well into the future.
WELCOME TO EK SHOWROOM
We are pleased to invite you to visit our showroom to experience DUROFIX cordless power tools, HANS high-quality hand tools, and WISDOM cordless & corded miner’s cap lamps.
DUROFIX is one of the premier portable power tool manufacturers and distributors in the world. The product range covers construction, woodworking, automotive and industrial tools for professionals.
HANS TOOL has maintained a position of leadership in manufacturing quality sockets wrench and tools over 40 years experience in Taiwan. Hans tools are full range items with a complete size of tools but also offer full warranty. Special auto tools, Hand tools, and Master tool kits are available in the showroom.
New Wisdom Investment Limited (WISDOM) is an integrated enterprise, which focuses on brand, R&D, sales, production, and supply chain; specialized in producing LED miner's cap lamps and charging devices. WISDOM is always striving to use the best materials making the safest cap lamps!
Moreover, you can give a customized special order from world-renowned brands catalogs.
PRAKLA RB 50 MULTI-PURPOSE DRILLING RIGS HANDED OVER TO ELGEN DRILLING
ON June 8, EK successfully handed over RB 50 drilling rig to Elgen LLC and the RB 50 will be delivered to the operation site in late July. The multipurpose drilling rig PRAKLA RB 50 is designed for different applications, e.g. drilling of water wells, mineral exploration, geothermal wells, geotechnical investigations, and seismic drilling. Due to its modular design, the equipment of the RB 50 can easily adapt to the specific requirements. This drilling rig will be delivered either on a modern off-road truck or on a semi-trailer. The commissioning of a multipurpose drilling rig will be done at the beginning of August.
ECONOMY
EXPORTS DECREASED BY 38.5 PERCENT
In the first five months of 2020, Mongolia traded with 131 countries, and the country’s total foreign trade turnover reached USD 4.0 billion, of which USD 2.0 billion were exports and USD 2.0 billion were imports.
The total foreign trade turnover went down by USD 1.6 billion (28.3%), of which exports decreased by USD 1.3 billion (38.5%) and imports decreased by USD 322.6 million (13.9%) compared to the same period of the previous year.
In May 2020, exports and imports reached USD 632.7 million and USD 406.1 million respectively. Compared to the previous month, exports increased by USD 294.9 million while imports dropped by USD 18.7 million.
The foreign trade balance, which was in surplus of USD 948.3 million in the first five months of 2019, decreased by USD 934.5 million, showing a surplus of USD 13.9 million in the first five months of 2020.
Source: Montsame
WORLD BANK: MONGOLIA’S ECONOMY MAY SHRINK BY 0.5 PERCENT IN 2020
According to the first five months of 2020, Mongolia’s total export has decreased by 40 percent or USD 1.4 billion compared with the same period of the previous year.
Mongolia has exported coal worth USD 513 million or 6.3 million tons, which decreased by 2.4 times compared to the same period of the previous year. The country has exported 671 thousand barrels of oil, showing a decrease of 4 times. Fluorspar export increased slightly by 15 thousand tons, reaching 237 thousand tons.
In the first five months, Mongolia’s total export reached USD 3.37 billion, according to the statistics of the Customs General Administration.
Source: ZGM Daily
BOM TO BOOST FX RESERVES BY FINANCING GOLD SECTOR
The Bank of Mongolia (BoM) is planning to provide concessional financing to gold mining companies. The central bank estimates that the program could increase the gold production by 23 tons and encourage the official foreign exchange reserves to rise by USD 1.2 billion. Gold financing is classified into the long and short term. Up to six months of working capital financing is equivalent to a company’s 30 percent of the amount of gold approved in its mining plan for the year.
In other words, long-term financing with up to 24 months is equal to 30 percent of approved reserves. The central bank said it would be feasible to sign contracts with banks and start disbursing funding within this week after the Ministry of Mining and Heavy Industry announces a list of companies eligible for financing.
Official FX reserves of Mongolia have declined by 11.6 percent since 2020, reaching USD 3.8 billion at the end of April.
Source: ZGM Daily, Montsame
BANKS FINALIZE MNT 500 BILLION WORTH OF MORTGAGE REPAYMENT DEFERRALS
According to the Governor of the Bank of Mongolia (BoM) Lhavgasuren Byadran, the commercial banks have decided to postpone the repayment of mortgage loans worth about MNT 500 billion. The banks have also restructured more than 37,000 loans that have been encountered difficulty to repay due to the new strain of COVID-19 outbreak. The BoM emphasized that commercial banks have the opportunity to finance mortgage loans from their own resources to the extent of financing provided by the central bank. BoM and commercial banks will provide MNT 25 billion each, or a total of MNT 50 billion, for mortgage loans in May. In the remaining months of this year, the central bank will provide MNT 20-25 billion in mortgage loans every month.
Source: ZGM Daily
ECONOMIC CHALLENGES RISE AMID SOARING EXTERNAL DEBT
In terms of debt burden, Mongolia ranked 59th out of 66 developing countries, with the economy shrinking by 10.7 percent in the first quarter of 2020. The total foreign debt reached USD 30.6 billion at the end of 2019, increased by USD 1.9 billion in the last four years. The country’s external debt per capita had also increased from MNT 15 million to MNT 28.3 million.
Total revenue in the trade sector contracted by 5.4 percent, with businesses losing more than MNT 280 billion since the pandemic. Thousands of people who used to work in the sector are now unemployed without income. Moreover, revenue from the catering sector decreased by MNT 2.8 billion in the first quarter. In terms of different industries, most of the travel companies saw a deficit, with hotel revenues down 42.9 percent, or nearly double their operations.
Source: ZGM Daily
"COAL EXPORTED ACROSS GASHUUSUKHAIT BORDER CHECKPOINT SINCE MARCH 23 AT 2.9 MILLION TONS"
At the press briefing of the COVID-19 operative team of the State Emergency Commission held today, June 10, officials from the Specialized Inspection Agency delivered information on the inspection campaign being held to prevent from the COVID-19 infections.
“Estimated 25-300 tons of non-food products carried by 20-30 cargo trains and 1.300 freight trucks are imported daily through Mongolia’s border crossing points for auto vehicles and rail trains. The corresponding staff are constantly conducting inspection on the imported goods, proper disinfection and monitoring the health conditions of the drivers.” reports the Agency.
The inspection agency is also inspecting mineral and food products entering the country and disinfecting and sanitizing the vehicles carrying them.
On March 23, the temporarily-suspended Gashuunsukhait checkpoint in Umnugobi aimag bordering with China reopened, resuming mineral exports. Since then, around 2.9 million tons of coal on 26,965 vehicles, and 291,817 tons of copper concentrates on 8,250 vehicles have been exported abroad.
Source: Montsame
TRANSIT RAIL FREIGHT INCREASES 23.7 PCT Y/Y
A total of 810 China-Europe freight trains passed through the border crossing of Erenhot in north China’s Inner Mongolia Autonomous Region between 1 January and 9 June of this year, an increase of 23.7 percent year-on-year, according to the local railway operator.
Among them, the number of outbound trains during the period was 340, up 16 percent year-on-year, while 470 inbound trains were recorded, up 29.8 percent, according to the China Railway Hohhot Group.
The trains carried a total of 83,412 TEUs (20 foot containers) of cargo, up 41.4 percent year-on-year, the group said.
The Erenhot Crossing is the largest land crossing on the border between China and Mongolia. So far, there are 36 routes of China-Europe freight trains via the land crossing.
Source: News.mn
See also: China – Europe rail freight up 48% in May
Revenue from railway transport increased by 6.4 percent
PRICES OF MONGOLIA’S MAIN EXPORT PRODUCTS SURGE
As a developing nation, rich in natural resources, Mongolia’s economy is dependent on its southern neighbour, China, which buys practically all its copper and iron ore and coking coal. With the onset of the coronavirus pandemic, Mongolia had to take the tough decision to close its borders to the outside world – as a result, exports were completely halted. Although people still cannot travel, natural resource exports can and the signs are good.
As China’s economy begins recovering from the coronavirus pandemic, Mongolia’s copper prices have surged to USD 5400 per tonne – an increase of 17 percent over the last two months. In addition, the prices of iron ore rose sharply to USD 91 following the end of the suspension of deliveries.
Mongolia suffered from a fall in copper prices due to pandemic. As of 23 March, copper price had fallen to USD 4609. However, as China’s production and demands resumed, Mongolian copper prices have taken off.
Source: News.mn
TIME DEPOSIT IN FOREIGN CURRENCY GREW BY 35.7 PERCENT FROM LAST YEAR
The national currency in circulation reached MNT 974.1 billion at the end of May 2020, showing an increase of MNT 115.6 billion (13.5%) from the previous month and an increase of MNT 34.4 billion (3.7%) from the same period of the previous year.
At the end of May 2020, the time deposit in domestic currency amounted to MNT 10.6 trillion, with an increase of MNT 5.5 billion (0.1%) from the previous month, but it was decreased by MNT 678.5 billion (6.0%) compared to the same period of the previous year.
The composition of the total time deposit in domestic currency shows that 90.0 percent (MNT 9.5 trillion) were individuals’ deposits and 10.0 percent (MNT 1.1 trillion) were entities’ deposits.
The time deposits in foreign currency amounted to MNT 4.0 trillion, increased by MNT 226.1 billion (6.0%) from the previous month and by MNT 1.0 trillion (35.7%) from the same period of the previous year.
Source: Montsame
SECURITIES TRADED AT NATIONAL STOCK MARKET DECREASED BY 72 PERCENT IN MAY
As of the first five months of 2020, securities worth of MNT 16.3 billion were traded at the national stock market, showing a decrease of MNT 70.2 billion (81.1%) compared to the same period of the previous year.
In May 2020, 48.4 million pieces of securities worth of MNT 4.5 billion were traded at the national stock market, with a decrease of MNT 11.5 billion (72.0%), and the total amount of traded securities was declined by 95.2 million (66.3%) pieces compared to the same period of the previous year.
An average of indices of the top 20 financial markets was 16288.4 units in May, dropped by 342.8 units from the previous month, and by 3887.1 units from the same period of 2019.
In May 2020, the total value of joint-stock companies operating at stock markets reached MNT 2.4 trillion, decreased by MNT 12.2 billion (0.5%) from the previous month, while it increased by MNT 33.0 billion (1.4%) from the same period of the previous year.
Source: Montsame
ZUUNBAYAN-TAVANTOLGOI RAILROAD CONSTRUCTION IN FULL SWING
Launched in May 2019, the construction project for 414.6-km railway connecting Zuunbayan with Tavantolgoi is in full swing. Earthworks of the railway construction are ongoing with 82 percent completion, pipeline construction with 67 percent and other types of civil works, including dams are completed 84 percent.
Moreover, in accordance with the upper track structure construction plan schedule, the construction of 43.5-km railway starting from Zuunbayan railway station in Dornogobi aimag has been finished.
More than 5,000 workers are on-duty at the construction site and 2,500 equipment and machinery are being utilized for the project.
Once completed, the Tavantolgoi-Zuunbayan railway will enable putting 37 mineral deposits in the regions along the railway into economic circulation, such as Tsagaan Suvarga copper mine, Kharmagtai copper-gold mine and Manlai coal mine.
The Ministry of Road and Transport Development previously reported that the total reserves of mineral deposits in the region mentioned amounts to 6.02 billion tons.
Source: Montsame
OPTIMIZING ASSESSMENT FOR ALL: DEVELOPING 21ST CENTURY SKILLS-EMBEDDED CURRICULUM TASKS
This report is intended to help educators adapt and develop new ways of assessing 21CS in their classrooms. It provides information about the process followed in the Optimizing Assessment for All (OAA) project at Brookings and includes examples of assessment strategies for capturing 21CS skills, specifically problem-solving, collaboration, and critical thinking. The report includes assessment tasks developed by the three focus countries in Asia (Cambodia, Mongolia, and Nepal) and the three in Africa (the Democratic Republic of Congo, The Gambia, and Zambia), providing a step-by-step guide to the development and adaptation of 21CS assessment tasks.
As nations worldwide look to integrate a breadth of skills perspective into their curricula—and into teaching and learning—the need to specify learning outcomes and performance standards for these skills has become apparent. Assessment is key not only to these specifications but also to the teaching of the skills.
Source: The Brookings Institution
ENKHJIN: DEFICIT OF BOP MAY REACH USD 700-800 MILLION THIS YEAR - INTERVIEW
Director-¬General at Reserve Mana¬gement Financial Markets Depart¬ment of the Bank of Mongolia (BoM), Enkhjin Atarbaatar talked about the current situation in the gold sector of Mongolia and the FX market. He highlighted the importance of the central bank’s plan to increase the FX reserves via financing the gold mining companies.
-Mongolia received USD 99 million from the IMF and USD 100 million from the ADB. How much foreign currency has come from international organizations and other donor countries since the beginning of this year?¬
-The IMF meeting was held on April 3 and decided to implement an emergency financial assistance program in Mongolia. The funds were transferred to the account of the Ministry of Finance on July 4. However, funding from the Asian Development Bank came earlier. Since the beginning of the year, the amount of funding that came to Mongolia has reached about USD 200 million. There is also additional funding for other projects and programs.
Source: ZGM Daily
BUSINESS
SETTING AGENDA FOR A REGULAR SHAREHOLDER MEETING
A shareholder who has voting rights and holding the company’s common shares with 5 or more percent has entitled to submit the following 4 issues to be included on the agenda of the regular shareholders meeting to the Board of Directors or the executive body within 60 days after the end of the previous financial year. This includes:
1. Matters falling within the authority of the shareholders meeting
2. Proposal for nomination of candidate to the member of the Board of Directors;
3. Proposal on the person to be nominated as a member of the Tabulation Commission
(Please note that if company charter provides number ii) and iii) matters to be discussed by the shareholders meeting)
1. Proposal on candidate for executive management
Certain requirements and criteria must be met when submitting proposals on matters within framework of authority of shareholders meeting.
Source: LehmanLaw Mongolia
INTRODUCING MONCHOICEGLOBAL, A MONGOLIAN, GLOBAL E-COMMERCE MARKETPLACE FOR UNIQUE, NATURAL PRODUCTS.
MonChoiceGlobal is a Mongolian, global e-commerce marketplace for unique, quality handmade natural products.
The store sources its products from Mongolia as well as other marketplaces to bring to its customers, quality and creative products they need at affordable prices. Some of the unique products from the store's vendors have ingredients extracted from the rich natural deposits in Mongolia such as 100% Wool, Cashmere, All Natural Seabuckhorn, Sheep Tail Fat Oil, Rosehip, Mare's Milk, Organic Nettle, Horse Oil, High-Quality Jewelry and Real Leather and so on.
The store offers an ever-changing selection of merchandise at amazing values with an assortment of goods including ladies, men's and kid's apparel and footwear, home, accessories and fashion jewelry. Also available is variety of gourmet food, dietary supplements, skincare products, among others. Shoppers will also discover interactive features that provide fresh ways to shop MonChoiceGlobal, including:
Source: DigitalJournal.com
TWO NEW TRAINING CENTRES TO BOOST MONGOLIA’S LIGHT INDUSTRY
Two training centres that will help build competitive leather and textile industries in Mongolia have been officially opened. The Industry of the Future blended learning centre is located at the Experiment, Manufacturing and Business Corporation of Light Industry (ARMONO), and the Textile Finishing Incubator Centre is at the Research and Development Institute of Light Industry (RDILI).
The centres have been established as part of the United Nations Industrial Development Organization (UNIDO) project, Support to Employment Creation in Mongolia (SECIM C2), funded by the European Union and implemented in cooperation with the Ministry of Food and Agriculture of Light Industry (MoFALI).
The opening of the Industry of the Future blended learning centre coincides with the 50th anniversary of the ARMONO corporation. During the inauguration ceremony, 11 e-learning course materials, developed by the project experts, were formalized with the signing of an agreement between…
Source: ModernDiplomacy.eu
ERD FINALIZES ESIA FOR KHUNDII GOLD PROJECT
Erdene Resource Development Corp. (ERD) announced the completion of an independent Environmental and Social Impact Assessment (ESIA) for high grade, open-pit Khundii Gold Project in southwest Mongolia.
The ESIA was prepared in accordance with the Performance Requirements of the European Bank for Reconstruction and Development (EBRD) by Sustainability East Asia LLC (SEA), in consortium with Ramboll Australia Pty Ltd and Eco Trade LLC. “The independent ESIA details Erdene’s commitment to responsible mine development and transparency for all stakeholders. This assessment is a decisive point for the evolution of the Khundii Gold Project, which will contribute to the vitality and economic diversification of Bayankhongor province and the development of Mongolia’s hard rock gold mining industry,” said Peter Akerley, Erdene’s President, and CEO.
One of its main purposes was to aid the completion of an ESIA in order to put the Khundii Gold project into operation by 2021.
Source: ZGM Daily
See also: Erdene provides Khundii gold district technical program update and details 2020 exploration plans
FIRE AT STATE DEPARTMENT STORE COMPLETELY EXTINGUISHED
A fire at the State Department Store of Mongolia on Sunday afternoon has been extinguished, local media reported.
Eight brigades consisting of more than 100 firefighters extinguished the fire more than two hours after it broke out, the National Emergency Management Agency said.
At least two people have been taken to a hospital because of smoke inhalation, according to sources.
The damage from the fire was still under assessment and the cause of the fire being investigated, national police said.
Source: China.org.cn
See also: Goods to be destroyed after blaze at Mongolia’s top store
FOUR COMPANIES TO COLLABORATE TO ESTABLISH METAL ALLOY PRODUCTION PLANT
With the aims of naturalizing eco-friendly recycling technology in Mongolia, putting waste coal into economic circulation, producing value-added product and exporting it to the international market, a four-sided memorandum has been established today, June 10 among “Erdenes Mongol” LLC, “National Center on Complex Processing of Mineral Raw Material of the Republic of Kazakhstan”, “ICMD International Corporation of Metal Alloy Development Holding of Germany” and “Coeus Consulting” Company.
The memorandum was signed by CEO of “Erdenes Mongol” LLC P.Gankhuu and Representative of “ICMD International Corporation of Metal Alloy Development Holding of Germany” in Mongolia N.Tsend-Ayush. Establishment of the memorandum enables the parties to carry out an environmentally friendly and brand new innovation project in mining sector of Mongolia.
A large amount of low-heat-value coal that does not satisfy requirement of power stations and individual customers is generated during operation of coal mines.
Source: Montsame
MONGOLIA ENERGY SAYS CO RESUMED COAL EXPORT FROM MONGOLIA TO CHINA AT END OF MAY
Mongolia Energy Corp Ltd:
* Resumed coal export from Mongolia to china at end of may
* Performance & financial position in last quarter of FY ended 31 March & Q1 of new FY adversely impacted
* On Takeshiken border, currently stringent border-crossing process still under trial & Co’s truck flow at this initial stage is slow
* Daily trucks of raw coal crossing borders are less than two tenths of pre-COVID-19 level
Source: Reuters
BATCH OF BELARUSIAN FIREFIGHTING VEHICLES SHIPPED TO MONGOLIA
The Belarusian automobile engineering company MAZ and the Borisov-based firefighting equipment manufacturer Pozhsnab have shipped the first batch of firefighting, rescue, and emergency response vehicles to the National Emergency Management Agency (NEMA) of Mongolia, the MAZ press service told BelTA.
The contract provides for the delivery of over 70 special vehicles – firefighting tank trucks, ladder trucks, vehicles for foam firefighting. A number of other vehicles such as a command vehicle and a mobile hospital with a decontamination station, are part of the shipment. Apart from that, the Mongolian side will receive MAZ crew buses for delivering personnel to their work areas. The vehicles have been adjusted taking into account climatic and geographic peculiarities of the region.
All the special-purpose vehicles are based on MAZ chassis. The Belarusian company has extensive experience of creating adapted or special-design chassis for emergencies.
Source: BelTA
TS.SELENGE: THE VALUE OF MONGOLIAN HANDICRAFTS IS BEING TRAMPLED ON BY FOREIGN GOODS - INTERVIEW
We were greeted by a clean and tidy environment with a smell of fresh paint and a national style. The walls of the Mongolian ger, the wool, the patterns and the rugs are visible to the naked eye. The textile artwork on the walls retain their deep meaning and feature a rainbow of colours.
“Please sit down and have a cup of tea”, said Ts. Selenge, head of the Mongolian Quilting Center at the Shine Zamnal NGO. In the small back room, four girls were busy crafting.
Our conversation began with an interesting story about a girl named Ts. Selenge who became interested in handicrafts, including textiles.
After graduating from the National University of Mongolia with a degree in law, she studied in Japan and the United States. It was while studying in the United States that she visited the home of an American friend and was first introduced to quilts.
Source: GoGo News
UNLOCKING MONGOLIA’S RICH RENEWABLE ENERGY POTENTIAL - EDITORIAL
Mongolia is in the midst of a demographic change as the rapidly growing population increasingly gravitates toward the cities, creating a need for energy that cannot keep pace with demands.
On the periphery of urban areas, the informal ger areas lack public services such as district heating. Residents instead burn solid fuel, mainly raw coal and waste, for heat and cooking.
The country’s energy system is the most heavily dependent on coal among the developing member countries (DMCs) of the Asian Development Bank (ADB). In 2018, coal-fired combined heat and power (CHP) plants constituted 93% of total power generation in the country’s Central Energy System (CES), which accommodate more than 80% of the domestic demand.
This has created severe air pollution in the country, with all the accompanying health problems. According to the World Health Organization (WHO), annual mean particulate matter of less than 2.5 micrometers in diameter (PM2.5) in Ulaanbaatar is 6–10 times higher…
Source: Montsame, GoGo News
