THE SALES DIRECTOR OF EURO KHAN MS. TSATSAA TSEDENDAMBA IS
ATTENDING THE BAUER ASIA PACIFIC MARKETING CONFERENCE 2019.
Euro Khan has been the official representative of
BAUER Group since 2012. Euro Khan has been actively engaged in conferences,
workshops and exhibitions organized by BAUER group for the past years. Ms.
Tsatsaa is attending the three-day program in Kuala Lumpur from February 27 to
March 1 beginning with work shop on first day and conference for the remaining
two days. On the second day of the event Ms. Tsatsaa has presented Euro Khan’s
rig sales activities of last year as one of the speakers at the conference.
THE HONORARY AMBASSADOR FROM FEDERAL REPUBLIC OF GERMANY TO
MONGOLIA MR. STEFAN DUPPEL HAS ATTENDED THE BOARD MEETING OF GERMAN MONGOLIAN
BUSINESS ASSOCIATION CHAIRED BY DR. OLIVER SCHNORR.
The German Mongolian Business Association(DMUV) held
monthly board meeting on February 28, 2019. The honorary Ambassador Mr. Stefan
Duppel was present at the monthly meeting and contributed to the discussions on
vital issues within the agenda. The meeting was chaired by CEO of Euro Khan and
Chairman of DMUV Dr. Oliver Schnorr.
Euro Khan’s 50% associated company FMS LLC has successfully
undertaken the Pre-feasibility Study for the Ovoot Early Development Project
(OEDP) of Aspire Mining Limited as the lead PFS consultants.
The Aspire Mining Limited, Mongolian metallurgical
coal and infrastructure company, has announced that the PFS showed outstanding
results for unlocking Ovoot Coking Coal Project on February 28. We are proud
for completing the study with success and take part in very interesting project
in Northern Mongolia. We would like to extend our gratitude to Aspire for the
cooperation.
Please follow the link below for full media release
by Aspire Mining Limited. https://aspiremininglimited.com/akm/wp-content/uploads/2019/03/20190228-AKM-Announcement-PFS-Results-for-OEDP.pdf
JONSHIT TOLGOI FLUORSPAR PROCESSING PLANT CONSTRUCTION WORK
UPDATE.
Euro Khan’s daughter company FMS LLC is planning to
start the construction of Fluorspar Processing Plant in March. Last month, the
project contract draft has been approved by FMS management team and the first
kick of meeting of the management team is planned to take place this week. The
site visit is scheduled next week.
Economy
·
IMF’s EFF financing expected to
pick up this year
·
When China stops sneezing:
easing of international trade war to put Mongolia’s growth back on track
·
74 countries make up 3.5
percent of Mongolia’s exports
·
Tailored anti-smog
recommendations made for Mongolia
·
Construction of China-aided
waste water treatment plant kicks off in Mongolia
·
70 children become victims to
cancer every year in Mongolia
·
Mongolia faces shortage of
rehabilitation therapists
·
Ulaanbaatar-Darkhan road
extension to be funded by EBRD
·
Aero City planned at Mongolia’s
new international airport
·
Reindeer population in Mongolia
reaches 2,396
Business
·
List of import-substitutive
products approved
·
‘Invest in Mongolia’ one-stop
service center launches
·
Turquoise Hill flags potential
further delays at Oyu Tolgoi
·
Representatives of London Stock
Exchange visit Mongolian Stock Exchange
·
Commercial banks to include
their AQR results in financial reports
·
Mongolia Mining 2019 focusing
on Responsible Mining
·
Asiana wins rights to fly to
Mongolia; Jeju, Eastar win routes to Singapore
·
Xanadu Mines reveals new
gold-rich porphyry zone at Mongolian project, shares up
·
Mongolian Italian Textile
Technology Center to be established
·
How a Mongolian toilet paper
manufacturer competes with the big brands
·
Jargal DeFacto: Interview with
Tatsuya Hamada, CEO of MobiCom – Video
·
Impact of neglecting
exploration will be dire – Editorial
·
Mark Gabel: Mongolia is a great
place to do business – Interview
ECONOMY
IMF’S EFF FINANCING EXPECTED TO PICK UP THIS YEAR
Official statistics suggest that the expected cash
inflow following the IMF’s Extended Fund Facility (EFF) Program fell short by USD
400 million in 2018. An average of USD 800 million was expected from the fund
and other donor organizations within the framework of the EFF, annually.
Authorities expect the remaining funding to be released following IMF’s BOD
meeting in the first quarter of this year.
During the three year period of the program, international organisations,
including the IMF have pledged a total of at least USD 5 billion, including USD
900 million from ADB, USD 600 million from the World Bank, USD 700 million and
USD 850 million from South Korean and Japanese governments respectively with
IMF funding of USD 425 million.
Funding from IMF and donor organizations are expected to help keep the fx rate
stable.
Source: ZGM Daily
WHEN CHINA STOPS SNEEZING: EASING OF INTERNATIONAL TRADE WAR TO
PUT MONGOLIA’S GROWTH BACK ON TRACK
As indications grow that an easing of tensions in
the year-long trade war between the US and China is imminent, export-dependent
Mongolia can expect to avoid a projected dampening of GDP growth that would
have followed a worsening of the trade war.
Mongolia would be among the worst hit economies in developing Asia should the
trade war between China and the US deepen. A new study by the Asian Development Bank (ADB) finds that
in the worst case scenario of an all-out global trade war, the landlocked
Central Asian nation would suffer an impact in lost growth and increased
unemployment second only to that expected to fall on China.
The trade war started over a year ago when the US imposed 20% tariffs on
imports of large residential washing machines and 30% on solar panels,
following this up with tariff hikes for steel and aluminium. Other major
economies followed with their own protectionist measures, but in the second and
third quarters of 2018 the conflict became increasingly bilateral in nature,
according to the ADB.
Source: bne IntelliNews
74 COUNTRIES MAKE UP 3.5 PERCENT OF MONGOLIA’S EXPORTS
Mongolia exports to one out of three diplomatically
related countries; however, the country imports from two out of three,
resulting in a foreign exchange (FX) loss. Although the export amount is high,
it still falls short compared to import deficit. By importing from 159
countries and exporting to 77, the export rate remains at only half of total
imports.
According to the Mongolian Customs General Administration (MCGA), only three
countries, namely the People’s Republic of China, the United Kingdom, and the
Russian Federation, made up 96.5 percent of total exports in 2018. China, being
the first on the list, accounts for 92.8 percent of Mongolia’s total exports.
The remaining 3.5 percent is formed by 74 countries.
The MCGA report shows that Mongolia exported USD 303,000 worth goods to Africa
as of the end of 2018, of which USD 235,000 were exported to Egypt. The export
items mainly consisted of rugs, wool, and animal intestines.
Source: ZGM Daily
TAILORED ANTI-SMOG RECOMMENDATIONS MADE FOR MONGOLIA
Ulaanbaatar residents continue to suffer from the
alarmingly high level of air pollution. The impact goes beyond harmful and
insidious health effects and has become a significant development
challenge.
In 2013, welfare costs from exposure to air pollution in Mongolia were
equivalent to 6.9 percent of the country’s annual gross domestic product.
To make anti-smog actions more effective, the Asian Development Bank (ADB)
published its first edition of Observations and Suggestions series on the topic
“Winning the Fight Against Air Pollution in Ulaanbaatar” last December. By
reviewing key factors causing air pollution in Ulaanbaatar and some successful
experiences of other countries that can be adopted, the policy note presents
recommendations that can crystallize the existing policy momentum into a
long-term, institutionalized framework for sustainable solutions to reduce air
pollution in the capital.
Source: The UB Post
CONSTRUCTION OF CHINA-AIDED WASTE WATER TREATMENT PLANT KICKS OFF
IN MONGOLIA
A groundbreaking ceremony was held here on Thursday
to build a China-aided waste water treatment plant.
Mongolian Prime Minister Ukhnaa Khurelsukh, Mongolian Minister of Construction
and Urban Development Khavdislam Badyelkhan and Chinese Ambassador to Mongolia
Xing Haiming attended the groundbreaking ceremony of the plant in the Songino
Khairkhan district of Ulan Bator.
“The Mongolian government’s action plan (2016-2020) reflects a goal to renovate
waste water treatment plants in Ulan Bator and other cities, and build new
ones,” Khurelsukh said at the ceremony.
“I am happy that within the framework of the goal, a waste water treatment
plant will be built in the capital city with soft loans from the Chinese
government,” Khurelsukh said, while expressing confidence that the plant will
help improve the city’s environment.
The existing waste water processing plant in Ulan Bator does not have a system
of processing silt and waste silt, and heavy metals are dried up outside
causing air pollution.
Source: Xinhua
70 CHILDREN BECOME VICTIMS TO CANCER EVERY YEAR IN MONGOLIA
An 18-months old baby was delivered to his second
surgery table just recently. Diagnosed with a rare type of cancer that the
country is unable to treat, the infant was sent abroad in hopes that better
medical care and equipment would save this brave little heart.
Witnessing the cruelty of the world since birth, this tiny sprout cannot even
express the amount of agony he is in. Unfortunately, hundreds of children are
suffering from the same illness, struggling to get the better of the
excruciating pain. For them, the Pediatric Cancer Hospital of the National
Center for Maternal and Child Health (NCMCH) is the only home they know. Some
are receiving radiation therapy and some are on surgery beds. It is
heart-wrenching to even imagine how much pain they are in.
Up until now, we understood that cancer was an illness for only the elders. But
the situation is different now. We can see that cancer is a threat to everyone
including infants.
Source: ZGM Daily
MONGOLIA FACES SHORTAGE OF REHABILITATION THERAPISTS
Mongolia has made significant strides in developing
its healthcare services but there are many areas that can be improved further.
One of these areas is rehabilitation therapy services, which is crucial for
restoring patients to their highest level of functioning.
There is a high demand for physical therapists (PT) and occupational therapists
(OT) who can help the growing number of patients suffering from strokes and traffic
accidents in Mongolia, according to research by Japan International Cooperation
Agency (JICA). People who are suffering due to accidents, diseases such as
arthritis, and those recovering from surgeries, stroke, or paralysis can
experience limitations in self-care, impaired mobility, balance and
coordination, limitations in joint strength or motion, speech and communication
problems, as well as changes in memory, thought processing, reasoning and
rational thinking. Therapists can help these people regain their abilities and
independence.
Source: The UB Post
ULAANBAATAR-DARKHAN ROAD EXTENSION TO BE FUNDED BY EBRD
Minister of Road and Transport Development
B.Enkh-Amgalan received Bruno Balvanera, Managing Director for Central Asia at
the European Bank for Reconstruction and Development (EBRD).
Minister B.Enkh-Amgalan expressed gratitude to EBRD for support, cooperation
and contribution to the development of Mongolia’s economic and social sectors.
He also thanked the bank for cooperation on reconstruction and extension
project of 204 km road between Ulaanbaatar and Darkhan.
Within the road extension project, reconstruction of the existing two lanes
will be financed by the Asian Development Bank (ADB) and construction of
additional two new lanes will be funded by EBRD.
As a result of discussion at the Cabinet, the Mongolian side offered to begin
the construction of two lanes to be financed by EBRD with the funds from
Development Bank of Mongolia and repay it later when the General Credit
Agreement is signed with EBRD.
Source: Montsame
See also: EU funded project creates over
500 jobs
AERO CITY PLANNED AT MONGOLIA’S NEW INTERNATIONAL AIRPORT
As Ulaanbaatar’s brand new international airport
nears completion, planning is underway to establish a satellite town with
a population of some 51.5 thousand people and a highway link to Ulaanbaatar.
According to the general plan for Aero City, 9479 households will reside in the
city. The plan was approved by Government Resolution No. 29 of last month. The
satellite city will be established alongside the new international airport in
Khushig Valley.
An economic zone and high technology industry will be established in the
satellite city. Moreover, during the planning period it was estimated that
seven schools with capacities of 960 children, 12 kindergartens with capacities
of 280 children, one vocational training centre with a capacity of 640
students, and 330-bed central hospital need to be built in Aero City.
The general plan will be implemented in four stages over a period of 20 years.
REINDEER POPULATION IN MONGOLIA REACHES 2,396
The reindeer population in Mongolia reached 2,396 at
the end of 2018, increasing by 167 heads compared to the previous year, the
country’s National Statistics Office (NSO) said Sunday.
There were more than 2,000 reindeer in Mongolia during the 1970s. However, the
number dropped to 926 at the end of 2007, since reindeer herders had to butcher
and sell their reindeer due to the lack of sustainable income sources, bringing
the animal to the brink of extinction.
According to the NSO, the government of Mongolia has taken measures to improve
the herders’ living standards by promoting tourism, bringing the number of
reindeer back to 2,000 in 2016, since which the reindeer population has been
growing continuously.
Source: Xinhua
NO WILL TO WORK – EDITORIAL
Ever since we were children, we were told to study
well in school and find a good-paying job when we’re older so that we can lead
a decent life. With a job, we’re supposed to be able to do everything – pay the
bills, fulfill our desires, lead a successful career, and occasionally go on
vacations – but it seems that fewer and fewer people are willing to work
nowadays.
The Mongolian population has exceeded 3.2 million and 25,000 of them are
registered as unemployed, according to the latest labor market data published
earlier this year. There are over 2.1 million people old enough to work, or
between the ages of 15 and 60, and approximately 1.3 million of them are
healthy and capable of being economically active. Despite this, eight percent
of the economically active population remains unemployed, according to the
National Statistics Office.
Source: The UB Post
BUSINESS
LIST OF IMPORT-SUBSTITUTIVE PRODUCTS APPROVED
At its regular meeting on February 27, the Cabinet
approved a list of goods to be purchased from domestic enterprises, that meet
the quality and standard requirements.
The list includes 155 types of goods of 14 categories being produced by
domestic businesses. As compared with previous list, a number of good types
have been increased by three-fold. It is an evidence of domestic enterprises’
development and being capable of producing many types of goods, emphasized the
Minister of Food, Agriculture and Light Industry Ch.Ulaan.
He said, “The Government announced 2019 as ‘Year of promoting patriotic
purchase’. In this scope, it lists certified products with verification of
conformity and a policy will be implemented to purchase these goods and
products as basic terms of tenders.”
Source: Montsame
SAINSHAND SPINS IN MONGOLIA
The 55MW Sainshand wind farm in Mongolia’s Gobi
Desert has entered commercial operation.
The country’s largest online wind farm, located in Dornogobi province 450km
south-east of Ulaanbaatar, will be capable of generating around 200 gigawatt
hours of electricity annually. Vestas supplied 25 of its V110 2.0MW turbines,
optimised to 2.2MW.
The company is also servicing the wind farm for 15 years, which is operated by
French utility Engie. Sainshand will help reduce the country’s carbon
emissions, while meeting increased power demand, and will also support
government efforts to ensure renewables account for 20% of Mongolia’s energy
mix by 2020.
European Investment Bank and the European Bank for Reconstruction and
Development provided long-term financing. Mott MacDonald is lenders’ technical,
environmental and social advisor to the EIB, the EBRD and EKF, Denmark’s Export
Credit Agency.
The UK engineering consultancy performed technical, environmental and social
due diligence during the project’s financing stage to help the scheme achieve
financial close, followed by construction monitoring services.
Source: ReNews.biz
‘INVEST IN MONGOLIA’ ONE-STOP SERVICE CENTER LAUNCHES
‘Invest in Mongolia’ one-stop service center (OSSC)
has officially opened on February 25. The center aims to promote foreign
investors favorable conditions, set forth for them in legal investment
framework, streamline public services, minimize the resolution of some services
and eliminate the difficulties that investors are facing.
Foreign Minister D.Tsogtbaatar delivered an opening speech and Ambassador of
Germany to Mongolia Mr. Stefan Duppel made a welcoming remark at the ceremony.
Chairman of the National Development Agency (NDA) B.Bayarsaikhan delivered
presentation on ‘Investment policy and regulation’ for honored guests and
investors.
The OSSC will provide all public services of State Registration, Social
Insurance, taxation, immigration organizations and other relevant ministries
and public institutions which are related to foreign invested entities in
Mongolia through a single window system.
During the ceremony, NDA and International Finance Corporation of World Bank
have signed Amendment and Addendum to the Cooperation Agreement. Moreover, NDA
and Integrated Mineral Resource Initiative of German Corporation for
International Cooperation (GIZ) signed a Memorandum of Cooperation.
Source: Montsame
TURQUOISE HILL FLAGS POTENTIAL FURTHER DELAYS AT OYU TOLGOI
Turquoise Hill Resources has flagged potential
further delays in the development schedule of the Oyu Tolgoi underground mine
project, saying that the completion of ‘technically complex’ installations at
Shaft 2 could take longer than previously thought.
The company last year said that sustainable production at the $5.3-billion
underground mining project would only be achieved in the third quarter of 2021
rather than the previously guided start of 2021.
However, Turquoise Hill on Wednesday reported that it was increasingly likely
that sustainable first production would be delayed beyond the third quarter of
2021.
The miner explained that the completion of Shaft 2 continued to experience challenges
during the last quarter of 2018, with structural, mechanical, piping and
electrical installation productivity below expectations.
The company explained that, while total lateral development or equivalent
development metres remained on budget, these challenging ground conditions have
had a direct impact on the project’s critical path.
Source: Mining Weekly
See also: Turquoise Hill announces 2019
financial guidance and provides underground development update
REPRESENTATIVES OF LONDON STOCK EXCHANGE VISIT MONGOLIAN STOCK
EXCHANGE
On February 22, CEO of the London Stock Exchange Plc
Nikhil Rathi, Head of Europe, Primary Markets at London Stock Exchange Plc
Ayuna Nechaeva, and Ambassador Extraordinary and Plenipotentiary of the United
Kingdom of Great Britain and Northern Ireland to Mongolia Philip Malone visited
the Mongolian Stock Exchange and met with authorities of the Stock Exchange.
At the meeting, both sides expressed their aspiration to further cooperate in
various areas such as creating new products through dual-listing, enhancing
market liquidity, promoting Mongolia’s stock market to the investors in London,
and empowering the domestic professionals. They also highlighted the London
Stock Exchange has an important role in bringing new products to the market,
promoting the domestic market to foreign investors, carrying out privatization,
assisting domestic companies in raising funds, and strengthening market
capacity.
Source: Montsame
COMMERCIAL BANKS TO INCLUDE THEIR AQR RESULTS IN FINANCIAL REPORTS
Parliamentary Standing Committee on Economy and the
Bank of Mongolia (BoM) held a public discussion “Think Bank-2019: Financial
Environment” last Friday, during which the Governor of BoM announced to address
the asset quality review (AQR) of commercial banks.
Opening the discussion, Parliament Speaker Zandanshatar Gombojav remarked,
“Legal reform of the banking sector was rather successful in the last two
years. As for this year, we are planning on increasing the risk-bearing ability
of commercial banks and introducing a re-capitalization system. The key
objective of this discussion is to create proper public expectations by
regulating false news, the effects of politicization, and improper assumption
driven by subjectivism, as well as discussing the opportunities to stabilize
and reduce dollarization and improve public trust on MNT.”
He added, “We do not want the Parliament to be a stage for populism or dispute.
Therefore, the Law on the Parliamentary Procedures has to be amended to fit the
common practices of other countries.”
Source: ZGM Daily
MONGOLIA MINING 2019 FOCUSING ON RESPONSIBLE MINING
The 2019 Mongolia Mining international mining &
oil expo will be held on April 10-12 in Ulaanbaatar, focusing on Responsible
Mining.
More than 150 exhibitors from countries such as United States of America,
United Kingdom, China, Russia, the Czech Republic, Australia, Kazakhstan,
Sweden, Japan, Germany, South Korea, Italy, Belarus, France and Canada will
introduce the latest technology and equipment in the mining and heavy industry.
Moreover, the investors, suppliers and guests attending the international
exhibition will be introduced to the mineral industry of Mongolia. In specific,
there will be a seminar on government policy in mining sector in addition to
presentations delivered by the exhibitors.
While highlighting Responsible mining, the event will be attended by not only
representatives of the mining sector, but also of road and construction sector,
thus offering good networking opportunities to the exhibitors.
Source: Mongolian Mining Journal
ASIANA WINS RIGHTS TO FLY TO MONGOLIA; JEJU, EASTAR WIN ROUTES TO
SINGAPORE
Asiana Airline Inc. secured the right to fly
additional routes on the highly sought after South Korea-Mongolia route, while
Jeju Air Co. and Eastar Jet Co. were allocated flights to Singapore, the
government said Monday.
The Ministry of Land, Infrastructure and Transport said the decision was made
by its airline traffic review committee, which distributed slots secured by
Seoul in the past year to local carriers.
The Mongolian route was contested by all carriers, with Asiana, the country’s
No. 2 full-service carrier, saying the allocation will enhance customer choice
and better meet the national interest. “Asiana will make all necessary
preparations to get ready to offer flight services,” an executive said for the
company said.
The route was previously dominated by Korean Air Lines Co., the country’s
largest flag carrier.
The additional passenger services from Incheon International Airport to Ulan
Bator comprise three weekly flights, with one flight from the port city of
Busan to the Mongolian capital going to Air Busan Co.
Source: The Korea Herald
See also: Asiana receives right to fly to
Mongolian capital
XANADU MINES REVEALS NEW GOLD-RICH PORPHYRY ZONE AT MONGOLIAN
PROJECT, SHARES UP
Xanadu Mines Ltd is confident that the discovery of
a zone of bornite gold-rich porphyry mineralisation at the Kharmagtai
Copper-Gold Project in Mongolia will result in a resource increase.
Investors share the company’s confidence with stock rising almost 15% in early
trade to 13.2 cents.
The new high-grade zone revealed in results from a diamond drill hole occurs
outside the open pit resource.
Xanadu’s managing director and CEO Dr Andrew Stewart said: “After two and a
half years of intensive exploration, it is remarkable that our drilling has
intersected a significant new zone of bornite-rich porphyry which has produced
one of the best intersections of copper and gold mineralisation encountered on
the property.”
Source: Proactive Investors
MONGOLIAN-ITALIAN TEXTILE TECHNOLOGY CENTER TO BE ESTABLISHED
The Mongolian Ministry of Food, Agriculture and
Light Industry and the Ministry of Economic Development of Italy have created a
Letter of Intent on Cooperation in Textile Industry. On February 26, the Letter
of Intent was signed by Minister of Food, Agriculture and Light Industry
Ch.Ulaan from the Mongolian side and Ambassador of Italy to Mongolia His
Excellency Mr. Andre De Felipe from the Italian side.
During the signing ceremony, Minister Ch.Ulaan expressed his gratitude to His
Excellency Andre De Felipe for making efforts to strengthening bilateral
cooperation in the areas of food, agriculture and light industry. The Letter of
Intent provides legal background for establishing Mongolian Italian Textile
Technology Center in Mongolia, noted the Minister. By establishing the center
Italian side will provide high technology textile equipment, train personnel,
introduce knowhow of textile industry and new technologies as well as improve
management.
Source: Montsame
HOW A MONGOLIAN TOILET PAPER MANUFACTURER COMPETES WITH THE BIG
BRANDS
Toilet roll and paper napkins are everyday items
which are much in demand and offer great business opportunities for local
firms. Yet well-known international chains often dominate the market for them.
In Mongolia, Khugjil Trade took on the big brands and won.
“We make about 40 types of products in our plant here in Ulaanbaatar,” said Ms
Urgamal Baatar, the company’s CEO. “We’ve been active since the early 1990s,
but over time I noticed that we lagged behind in terms of productivity. So we
needed to learn more about how to make our organisation and processes more
efficient.”
This is when she turned to the EBRD for help. Its advisory programme, funded by
the European Union in Mongolia, matches businesses like Khugjil Trade with
experienced experts to help them grow.
Source: EBRD
JARGAL DEFACTO: INTERVIEW WITH TATSUYA HAMADA, CEO OF MOBICOM –
VIDEO
Topics covered include:
1. What new changes has MobiCom’s
management implemented?
2. When will 5G services be
introduced?
3. MobiCom’s involvement in the
Mongolian economy
4. When is hindering the porting-over
