EK SIGNED SUPPY CONTRACTS WITH MAJOR MINING COMPANIES
We are glad that Transwest LLC and Baylag Energy Resources LLC chose us for major distributor for handtools and power tools. We are working on supply of screw type diesel engine compressor 12 bar to Baylag Energy Resources LLC end of October.
We aim to reach out to our customers by visiting Mongolia’s major mines to raise brand awareness and introduce the value and quality of Hans and Durofix brands to our customers. If you would like more information, you can visit our showroom and contact our sales manager (+976-94106659). We will visit your location to introduce our products.
HANS TOOL has maintained a position of leadership on 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.
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.
Moreover, you can give a customized special order from world-renowned brands catalogs
BUSINESS LUNCH WITH GERMAN AMBASSADOR
EK attended The DMUV business lunch on September 23, the subject was Government policy to support entrepreneurs in 2020-2024 and foreign cooperation policy. We would like to thank you Mr. Jörn Rosenberg, Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to Mongolia and Mrs. Regina Rutenberg, Deputy Head of Mission for the hospitality.
EK ATTENDED the 60th ANNIVERSARY OF THE MONGOLIAN NATIONAL CHAMBER OF COMMERCE
The 60th anniversary of the Mongolian National Chamber of Commerce and Industry is being marked these days. On September 25, Prime Minister U.Khurelsukh attended its ceremonial meeting and delivered remarks.
The PM said “The private companies have to work hand in hand and enter into world market, expanding scope of their operations. As for the PM, I would render all-round support to create world competitive national companies.”
Furthermore, the PM underlined that the Government is working towards improving policy and coordination on protection of domestic and foreign investment and properties, encouraging private sector by integrating Government funds, making it transparent to public, upgrading discipline and responsibility of civil service, strengthening its capacity, developing e-governance, decreasing budget deficit at stages, ensuring economic growth and reducing unemployment and poverty in a way of advancing processing level of agricultural products, raising export volume of non-mining products and implementing large scale projects as well as reducing Government participation in business and bureaucracy and eliminating corruption.
MEETING WITH MINING MINISTER
On September 28, Eurokhan attended The American Chamber of Commerce (AmCham) in Mongolia Monthly Meeting, Priorities of Mongolia's Mining Sector in 2020-2024. The guest speaker was Minister of Mining and Heavy Industry G. Yondon, accompanied by Deputy Minister of Mining and Heavy Industry O. Batnairamdal.
Minister G. Yondon stated that 33 ministry actions, with nine sub-objectives, are included in the Cabinet's Action Plan from 2020 to 2024, concentrating on providing sustainable economic growth and fair distribution of mining wealth; developing accessible, transparent, and responsible mining; and increasing the level of mineral processing through the implementation of integrated policy planning for the further development of geology, mining, heavy industry, and the petroleum sector.
The most significant action plans include building an oil refinery, copper concentrate processing plant, and iron and steel plant to increase the production of value-added products in the mining sector. The minister stated that the ministry would continue cooperating with foreign and domestic investors in the mining sector, which is crucial for Mongolia's economic development.
ROUNDTABLE 2020 INTERNATIONAL TRADE AND INVESTMENT FORUM
On September 29, Eurokhan attended Roundtable 2020 International Trade and Investment Forum. The forum aims to raise awareness among private and foreign and domestic investors about what needs to be done to improve the trade and investment environment in Mongolia, and what issues, suggestions and criticisms need to be addressed within the legal and executive branches.
The forum was attended by MPs G.Amartuvshin, Kh.Gankhuyag, G.Damdinnyam, D.Unurbolor and Minister of Justice and Home Affairs Kh.Nyambaatar, Deputy Minister of Mining and Heavy Industry O.Batnairamdal, and Director of the Ministry of Foreign Affairs V.S. About 400 people, including B. Solongo, Deputy Chairman of Oyu Tolgoi, and representatives of business, the private sector, and international chambers of commerce participated.
During the forum, G.Zandanshatar, Speaker of the Parliament, said, “The Parliament has focused on supporting foreign trade, attracting foreign investment and improving its efficiency, defining the state policy in this regard, and improving the legal environment, but the results have been memorable. The government needs to address the issue of creating a structure that provides unified management and coordination of foreign investment. "
He also said that it is necessary to establish a tradition of holding regular meetings and forums on foreign investment before the regular spring and autumn sessions of the State Great Hural.
ECONOMY
MONGOLIA LIKELY TO EXPERIENCE FIRST RECESSION SINCE 2009: WORLD BANK
Mongolia is likely to experience its first recession since 2009, according to a new report released by the World Bank on Tuesday.
The Mongolian economy is projected to contract by 2.4 percent in 2020 as weak external demand and COVID-19 containment measures hit the mining and services sectors especially hard, the World Bank said in the report titled "From Containment to Recovery: Economic Update for East Asia and the Pacific, October 2020."
However, Mongolia's economic growth is expected to accelerate to over 5 percent in 2021 and 2022, supported by private consumption and a stronger impetus on investment in the mining and manufacturing sectors, according to the bank.
The Asian country's mining-dependent economy decreased by 9.7 percent year on year in the first half of 2020 due to restrictive measures to contain the spread of COVID-19.
Source: Xinhua
See also: East Asia and Pacific: Pandemic “Triple Shock” Hitting Economies Across Region
From Containment to Recovery: Economic Update for East Asia and the Pacific, October 2020
Mongolia’s economic growth to accelerate to over 5 percent in 2021-22, World Bank report finds
World Bank’s new report warns about weak external demand and COVID-19 impact on mining
Mongolia’s economy expected to contract by 2.4 percent
MONGOLIA ISSUES "NOMAD" BOND IN INT'L MARKET
The Mongolian government has issued a bond worth 600 million U.S. dollars in the international market, the country's Finance Minister Khurelbaatar Chimed announced here Tuesday.
The annual interest rate of the "Nomad" bond is 5.125 percent and will mature in 5.5 years, Khurelbaatar told a news conference.
Four international investment banks, namely J.P. Morgan, Morgan Stanley, HSBC and Nomura, have worked with the Mongolian Finance Ministry and the Bank of Mongolia to issue the new bond over the past three weeks, said Khurelbaatar.
"The new bond was not issued to bring more money to Mongolia. The purpose of the 'Nomad' bond is to repay 500 million U.S. dollars of a five-year 'Mazaalai' bond which will be matured in April 2021," Khurelbaatar said.
"In other words, the government has made a debt restructuring on part of the current outstanding sovereign debts by exchanging 10.8-percent 'Mazaalai' bond debts with the low-interest rate 'Nomad' bond," said the minister.
Source: China.org.cn, Montsame
See also: Government raises USD 600 million Nomad bond from international stock market
REGIONALLY DIVERSIFIED TOURISM TO BE DEVELOPED
On the occasion of the World Tourism Day, commemorated each year on September 27, a consultation of professional organizations on reviving tourism industry in Mongolia was held.
The Ministry of Environment and Tourism will pursue a policy to develop regionally diversified tourism based on features of rural areas in the coming four years. It is planned, for example, to develop Khuvsgul aimag as main nature tourism region and Khentii aimag as historical tourism center. "Furthermore, feasibility studies are under development to make western aimags adventure or nature-based tourism region and a stronghold for intangible cultural tourism as well as to develop cognitive tourism based on paleontological finds in Gobi region,” said S.Bayasgalan, Head of Tourism Policy and Coordination Department of the Ministry.
Establishment of Tourism Services Bureau in 1954, is considered the start of tourism development in Mongolia. Khuvsgul, Kharkhorin, Terelj and Gobi areas were the main travel destinations of Mongolia in the time of socialism.
Source: Montsame
See also: Mongolian Government forgets its tourism sector amid pandemic recession
INCENTIVES TO BE PROVIDED FOR SUPPLY OF QUALITY MILK
At its regular meeting on September 30, the Cabinet approved temporary regulations to provide monetary incentives to herders and intensive farmers for supply of raw materials that meet the requirements of milk and dairy factories.
The milk incentives will be provided through Ebarimt system from November to December this year and the reward program will continue until June 1, 2025. The incentive scheme is expected to boost supply of raw milk in winter, stabilize raw material supply, increase production of import-substituting products, and make it possible to sustainably and inclusively meet domestic milk and dairy needs.
Today, 204 milk and dairy factories operate nationwide with 1,680 workers. Even though the factories have an annual combined capacity of over 470 thousand tons, they are currently operating at only 35 percent of their capacity due to the absence of an established supply chain and seasonal production of raw materials.
Source: Montsame
ONE MILLION TREES TO BE PLANTED IN ULAANBAATAR THROUGH NURSERY
Ecological Education Center-Nursery that will be providing seedlings of trees that can reduce dust pollution and land degradation in Ulaanbaatar and Museum of Rangers have recently opened. The nursery project being implemented by the Capital City Air Pollution Reduction Department and Environment Department aims to reduce soil pollution and greenhouse gas emissions by planting more trees through providing its seedlings to alumni gardens and ger district residents.
Ulaanbaatar Deputy Governor in charge of air pollution issues D.Munkhjargal said at the opening of the center, “The nursery aims to produce 40,000-50,000 seedlings and cuttings of plants that reduce dust and soil pollution for citizens and give people gardening skills.”
The Museum of Rangers aims to let students explore biological diversity and conservation and promote the duties of rangers. There are plans to plant 1 million trees in the capital city by annually producing 40,000 seedlings and young plants at the nursery.
Source: Montsame
SWISS GREEN GOLD PROJECT HAS RESTORED 5 MILLION HECTARES OF RANGELAND IN 8 YEARS - INTERVIEW
An interview with Ts. Enkh-Amgalan, Coordinator of the Green Gold Animal Health Project of the Swiss Agency for Development and Cooperation.
Could you please elaborate on this recovery of five million hectares of rangeland from degradation?
Within Green Gold Project, research trials were conducted on a range of modern technologies in order to identify how rangelands could recover from a degraded state. Those trials revealed that the rehabilitation of degraded rangelands was both difficult and costly, and that the best method is a return to traditional rotational grazing practices and resting to let them recover naturally. Mongolia's rangeland degradation is often manifested in the form of changes in plant composition and the replacement of indigenous plants with non-nutritious species. A very encouraging result was that basically all rangelands with various levels of degradation, from heavy to moderate, were showing clear signs of recovery. Native plant species were emerging and soil was healing.
Source: The UB Post
NEGLECTED CHALLENGES OF AGING POSE GREATER RISKS - EDITORIAL
Our life is bound to change as we grow older, become physically weaker and our health deteriorate. In developed countries, people tend to look forward to their “golden years” and prepare for it in advance, but that’s not the case in Mongolia. With International Day of Older Persons upon us, it is the perfect opportunity to highlight the opportunities and challenges of aging in today’s society.
The aging population is increasingly being recognized as a major concern for Mongolians as the population is aging faster and living much longer. In particular, one in five families has an older person, or a woman above the age of 55 or a man above the age of 60. While the older people presently constitute 13 percent of Mongolia’s population, it may surge to 20 percent, or around 950,000 people, by 2045, according to the National Statistics Office.
Source: The UB Post
BUSINESS
RIO TINTO SETTLES WITH OYU TOLGOI WHISTLEBLOWER
Rio Tinto has struck a settlement with the former employee who said the miner knew about multibillion-dollar cost and schedule blowouts at Mongolia's Oyu Tolgoi mine long before they were disclosed to the market.
Richard Bowley was a general manager between 2017-2019 on the expansion of Oyu Tolgoi, and he launched an unfair dismissal claim against Rio after his tenure was cut short in 2019.
A tribunal hearing into the unfair dismissal case was scheduled to begin on Monday in London, but was aborted when the parties struck an agreement to settle their dispute.
Public hearings at the tribunal had loomed as a reputational risk for Rio, after The Australian Financial Review revealed in 2019 that Mr Bowley's claim included suggestions the company was too slow to disclose problems affecting the $US6.8 billion ($9.6 billion) Oyu Tolgoi expansion.
Monday's settlement technically relates to Mr Bowley's employment and was not a settlement over whether the company failed its disclosure obligations with regard to Oyu Tolgoi.
Source: Australian Financial Review
BEST ENTITIES AND PRODUCTS OF ULAANBAATAR PARTNERSHIP-2020 SELECTED
“Ulaanbaatar Partnership-2020”, autumn fair wrapped up on September 27, selecting its best participants.
More than 110 business entities attended the 45th fair, which aims to promote national production, services, brand products to the public, export international standard goods, enter them into new markets and create conditions to build up partnership. Out of them, “Ochir Daginas” Company has been selected as the best business entity of the fair, receiving Grand Prix and the certificate.
Furthermore, “Domch bor” and “Gem draft”, five types of product series by Gem International LLC have been selected as world competitive Mongolian brand, Vitafit probiotic drink by Vitafit Milk LLC and child’s toothpaste of “Maalai mooloi” brand by Mon Cream JSC as highlighting new products, product series of “Nixoderm” and “Starbalm” brands by Global Trading Development LLC and “Molly’s irish cream” and “Sandara” brand by Sirm LLC as the best import products…
Source: Montsame
See also: Export-oriented products on display at Ulaanbaatar Partnership 2020
KHOVD ECO CEMENT PLANT TO SATISFY WESTERN REGION'S DEMAND
The construction of Khovd Eco Cement Plant with a planned annual capacity of 300 thousand tons is currently 60 percent complete. A group led by Speaker of the State Great Khural G.Zandanshatar recently visited the construction site in the aimag's Buyant soum.
Ten local companies with 450 workers are building 32 separate structures of the large project. The plant can supply low-priced cement to the five western aimags which buy cement double the price in Ulaanbaatar for their yearly use of around 220 thousand tons of cement in total.
The plant is also expected to reduce apartment prices by 30-40 percent, create 2,000 new jobs, improve citizens’ living environment, and open up opportunities for major development projects. More specifically, with the opening of the plant, the average price for apartment in the western region will decrease from MNT 1.1 million per square meter to MNT 850-870 thousand.
Source: Montsame
STEPPE GOLD RECEIVES FUNDING FOR PHASE 2 EXPANSION
Mining company, Steppe Gold (STGO) has secured the first tranche of financing for its ATO Gold Mine expansion project.
The initial financing amount came to MNT (Mongolian tögrög/tugrik) 30 billion, or approximately C$14 million. This loan provided an injection of funds that increased Steppe Gold’s available cash amount to roughly US$34.5 million, or approximately C$46.1 million.
The proceeds of this financing will go towards the development of the ATO Gold Mine expansion. The company intends to increase gold production at the mine to 150,000 ounces equivalent per year.
Steppe Gold will be ordering longer lead time items for this objective in the coming months.
The financing was provided by the Trade and Development Bank of Mongolia, and facilitated through the Central Bank of Mongolia.
It was the result of the Mongolian Government’s Gold-2 program, which seeks to support the sustainable development of the nation’s gold sector.
Source: Stockhouse.com
View the Steppe Gold release
CHINA-MONGOLIA COMMODITY TRADE FAIR KICKS OFF IN EJINE
The 2020 Ejine China-Mongolia International Commodity Trade Fair was launched on Sept 27 at Juyan Culture City in Ejine Banner, Alshaa League, in North China’s Inner Mongolia autonomous region.
Organizers stated that the trade fair would last two weeks until Oct 10.
The Ejine China-Mongolia International Commodity Fair has been held for four consecutive years. This year’s event is one of the nine major exhibition activities in Inner Mongolia.
The two-week-long trade fair features a 7,000-square-meter indoor exhibition area and a 10,000-sq-m outdoor exhibition area. Approximately 10,000 commodities are displayed at 400 exhibition booths.
The commodity fair has attracted 190 exhibitors from China, Mongolia, South Korea, Pakistan and Afghanistan.
In addition to exhibitions, a series of other activities will be held, including a culture forum, a nameplate unveiling ceremony for the Juyan Culture Study Center and a food festival.
Source: China Daily
KT&G TOPS MONGOLIAN TOBACCO MARKET
KT&G raised its Mongolian tobacco market share to 34.2 percent in the first half of this year to beat JTI and take the top spot for the first time.
Its ESSE, the most popular product in the global super-slim cigarette market, accounted for 30 percent of the Mongolian market in the first half. KT&G explained that the product was especially popular with young consumers.
The price of the product is almost twice those of local products. Nevertheless, it is taking the lion’s share in the market and increasing its popularity as local smokers’ favorite premium cigarette product.
KT&G is planning to launch Bohem Pipe Scottie, a regular cigarette, in Mongolia next month to further raise its market share.
Source: BusinessKorea.co.kr
RIO TINTO AND OYU TOLGOI INVESTS USD 602,000 FOR COVID-19 READINESS AND RECOVERY IN MONGOLIA
In order to support the efforts to fight COVID-19 and its social and economic impacts, Rio Tinto and Oyu Tolgoi are investing a further US$602,000 - or ~MNT1.7 billion - in a project across Mongolia with focus on increasing the resilience and response capability of the country.
Rio Tinto and Oyu Tolgoi are partnering with United Nations Population Fund and its local and national stakeholders to support essential preventative measures during this challenging time.
Amarjargal Khenchbish, deputy country director for Rio Tinto Mongolia, said, “At Rio Tinto, our focus is on the health and safety of our employees and the communities where we operate and on keeping our operations running safely during the times of pandemic, so we can continue to contribute to local and national economies and serve our customers.
Source: Oyu Tolgoi, Montsame
BUSINESS INCUBATOR OPENS AT SELBE SUBCENTER
A business incubator of Selbe Subcenter opened on September 28. The subcenter not only brings public services closer to the citizens, but also provides them an opportunity to expand their micro businesses, receive capacity development training, or start their business.
The Ulaanbaatar City General Plan includes the establishment of six subcenters for inclusive urban development. The basic infrastructure of the subcenters is being developed as part of the Ulaanbaatar Urban Services and Ger Areas Development Investment Program Project in three phases in nine years. As part of the infrastructure development, 240-children kindergarten, and business incubator-training center have been built, while open space area, development center, and sport complex are under development.
Project coordinator D.Avirmed said, “A socio-economic survey conducted under the project found that the citizens are interested in receiving training in sewing, hairstyling, and makeup. The Selbe Subcenter business incubator offers training to 15,000 residents of the 7th subdistrict of Chingeltei district.
Source: Montsame
See also: Construction of Tolgoit sub center kicks off
GMIT TO COLLABORATE ON ARTIFICIAL INTELLIGENCE RESEARCH WITH CHIMEGE SYSTEMS OF BOLORSOFT LLC
On September 25, the German-Mongolian Institute for Resources and Technology (GMIT) signed a Memorandum of Understanding with Bolorsoft LLC during the official grand opening for ‘Chimege’ system launch.
Chimege Systems is a startup company, founded to develop artificial intelligence (AI) solutions in the Mongolian language. Their goal is to develop and implement AI applications to support human-to-computer interactions.
S.Badral, a founder of Chimege Systems, highlighted that the ‘Text to Speech/Speech to Text’ solutions have already reached an outstanding accuracy of 96%. To improve the recognition rate even further and develop new solutions for the Mongolian and international markets, Chimege Systems will establish a professional AI research center in Ulaanbaatar.
The agreement is the first Memorandum of Understanding between the AI company and a Mongolian state university. To the core, the GMIT emphasizes applied and interdisciplinary research activities in the field of engineering and technology:
Source: Montsame
VOSSLOH SUPPLIES FASTENING SYSTEMS FOR NEW HEAVY-HAUL LINE IN MONGOLIA
• Equipment of the heavy-haul line between Tavan Tolgoi and Gashuun Sukhait for transporting raw materials to China
• Rail fastening system perfectly geared to the requirements in Mongolia
• Deliveries started in summer 2020
Vossloh won a first contract for the supply of rail fastening systems for a heavy-haul line in Mongolia. The about 270 km long line will connect the Tavan Tolgoi with Gashuun Sukhait port at the Chinese border. After its completion, about 30 million tonnes of goods, primarily raw materials for steel production, will be transported on the new rail link each year – with significant environmental advantages compared with the current road haulage. The deliveries of the fastening systems started some time ago, and an approximately 70 km long section has already been completed. Under the current plans, construction work will be completed by the end of 2021.
Source: Vossloh, RailJournal.com
JMC PROJECTS OF INDIA TO WORK ON FIRST PHASE CONSTRUCTION OF OIL REFINERY
JMC Projects company of India has been selected as the general contractor in charge of the first phase construction of the oil refinery plant in Dornogobi aimag, specifically development of the refinery’s non-technological facilities and construction site infrastructure. The company will construct administration building, warehouse, repair facility, fire safety and first aid units, laboratory, and water supply system of the refinery.
On September 24, oil refinery project contractor, Mongolian Oil Refinery state owned company, project management consulting company, Engineers India Limited, and JMC Projects company held the project inception meeting virtually, finalizing the detailed plan for project implementation, coordination, and management.
Established in 1982, JMC Projects works in the areas of infrastructure, energy, industry and construction. The company with around 5,000 employees has successfully implemented over 50 development projects in India and other countries.
Source: Montsame
ADB, TAVAN BOGD GROUP COMPANIES SIGN LOAN TO SUPPORT WHEAT SUPPLY CHAIN IN MONGOLIA DURING PANDEMIC
The Asian Development Bank (ADB), Ulaanbaatar Flour Limited Liability Company (UBF), and Tavan Bogd Foods Limited Liability Company (TBF) today signed a $15 million loan (in togrog equivalent) to support the wheat supply chain in Mongolia during the coronavirus disease (COVID-19) pandemic.
The amount—comprised of a $10 million assistance to UBF and $5 million for TBF—will deliver liquidity support for the companies’ operations, which will help sustain the livelihoods of thousands of Mongolian wheat farmers and farm workers, in addition to the employees of UBF and TBF.
Wheat is milled to produce the country’s main staple, wheat flour. Food price hikes due to trade disruptions from containment measures would cause hardship for extremely poor households unable to afford meat and milk products. More than 25% of Mongolians are moderately or severely food insecure.
Source: ADB
MSE WARNS LISTED COMPANIES THAT ARE NOT FULLY COMPLIANT WITH REGULATIONS
"Mongolian Stock Exchange" JSC has been implementing coherent measures to protect investors' rights and improve market liquidity by ensuring compliance with duties to shareholders and authorized bodies by listed companies.
To ensure compliance, MSE hereby notifies the listed companies, not meeting continuing requirements set forth in the Listing rules, to comply with fiduciary duties and remedy violations. MSE will impose a penalty of delisting to the following companies unless respective violations are rectified within the prescribed period.
Source: Mongolian Stock Exchange
See also: 5 joint stock companies delisted from MSE
ION ENERGY VIRTUALLY OPENS THE MARKET
li Haji, CEO, ION Energy joins his team and key investors and Robert Peterman, Vice President, Global Business Development, TMX Group to celebrate the company's new listing on TSX Venture Exchange and open the market.
ION Energy Ltd. is an emerging leader in the exploration and development of Mongolia's lithium salars. ION's strong in-country team is ready for the world's third wave of the clean energy revolution, and the increased demand in lithium. ION Energy has one of the largest exploration, and first lithium brine, licences ever granted in Mongolia. For more information visit: https://www.ionenergy.ca/
Source: NewsWire.ca
WHY PROPER MINERAL VALUATION IS A MUST TO ATTRACT INVESTMENT - INTERVIEW
Saranchimeg Purevgerel followed up her degree in geology with an MBA in Mining, before doing an MSc in Mineral Economics at the Western Australian School of Mines. She specialises in Mineral Project Evaluation and has worked on various projects in mineral exploration, resource development and investment. Currently a director of MSA Global, she talks to Iderkhangai about the importance of following international norms in valuation of mineral resources.
Does Mongolia have a mineral project evaluation procedure that is internationally accepted?
Not yet, but not because we lack the manpower or the skills. The reason these are not properly utilized is that our legal environment for undertaking such work for investment purposes is not adequately developed. Once this changes, our mining professionals will certainly be able to do all that is done in developed countries to support investment decisions and to be acceptable at the time of initial public offerings (IPOs).
Source: Mongolian Mining Journal
