EURO KHAN HAS MET BRAZILIAN
CONGRESSMAN
EK is meeting with congressman David Soares and
Brazilian business delegation that is visiting Mongolia to participate of the
fintech business summit. EK is looking forward to increasing its network in
Latin America and support business growth of Brazil in Mongolia. Fintech summit
opened on May 10 and will continue on the second day at the conference hall of
Shangri-La hotel. Opening the summit, Foreign Minister D.Tsogtbaatar, FRC Chief
S.Davaasuren and Brazilian Congressman David Soares delivered
remarks.Outstanding global fintech entrepreneurs, leading businesses and policy
makers of Mongolia, accomplished experts and investors shared opinions on
fintech development, best practices and solutions, discussing future
opportunities for cooperation.
EURO KHAN HAS STRENGTHENED ITS MANPOWER WITH
NEWPERSONNEL IN SALES TEAM.
EK has hired Ms. Ankhmanlai Jargalsaikhan (Ankhmaa)
for Sales Assistant/Marketing Officer, who will provide an assistance and
support on a range of the company sales and execute the companywide marketing
targets. Ms. Enkhgerel Dorj for Sales Officer, who will be in charge of
sales support on a range of product and will deal with non-technical sales.
Economy
·
Balance of payments totals USD 219 million in surplus
·
EBRD projects GDP growth will slow to 6.2 pct in 2019
·
Industrial production increases by 17.5 percent
·
Mongolia’s coal exports rise 11.7 pct in first 4 months
·
Mongolia is diversifying its economy to build buffers over rapid growth
·
First of 107 enhanced coal retails open in Ulaanbaatar
·
Mongolia launches fifth Innovation Week
·
BoM purchases 1.1 tons of gold in April
·
Mongolia lifts quarantine after couple dies from eating raw marmot meat
·
Pasture carrying capacity exceeded by 41.2 pct
·
Immigration Officer: Electronic visa permit service now available –
Interview
·
ADB zooms in on climate change and tourism – Editorial
·
IFC mulls financing package of up to USD 70m for Mongolia’s Khan
Bank
·
Oyu Tolgoi statement on receipt of Parliamentary report
·
Construction of Mongolian national film studio commences
·
Over 30 Indian companies to introduce their products and services
·
Pursuing Criminal Charges for Trademark Infringement
·
Kincora raises CAD 6M for Mongolia exploration
·
Mongolia’s Northern Railways signs EPC agreement
·
Coal truckers go on strike, demanding freight rate hike
ECONOMY
BALANCE OF PAYMENTS TOTALS USD
219 MILLION IN SURPLUS
In the first three months of 2019, the balance of
payments (BoP) resulted in a surplus of USD 219 million. The indicator reached
entered the positive zone compared to last year’s USD 42 million losses.
The current account deficit has risen to USD 297.6 million since the beginning
of the year, decreased from the previous year. The surplus of the trading
account, which shows export and import reached USD 407 million. However, the
service account that registered the flow of traffic, tourism, and other
high-paid services accounted for a deficit of USD 553.2 million. This is an
increase in the deficit over the previous year. The BoM said that the balance
of payments will have a surplus of USD 500-600 million this year.
When the balance of payment results in a surplus, a certain amount of funding will
be reflected in the foreign trade profit and financial account, according
to the BoM.
Source:ZGM Daily
EBRD PROJECTS GDP GROWTH WILL
SLOW TO 6.2 PCT IN 2019
Mongolia’s economy is
projected to grow by 6.2% in 2019, down from 6.9% in 2018, and slow further to
5.0% in 2020, the European Bank for Reconstruction and Development (EBRD) said
in its latest economic outlook
published on May 8.
The growth will be aided by further investment in the underground expansion of
the Oyu Tolgoi gold and copper mine in the Gobi Desert, it added. Private
consumption is also projected to support economic growth thanks to rising real
incomes due, in part, to an increase in public workers’ salaries. On the other
hand, Mongolia’s downside risks stem from the possibility of a slowdown in China
and the stalling of reforms due to political uncertainty in the run-up to the
parliamentary elections scheduled for 2020.
Source:bneIntelliNews.com
See also: Economic growth seen
slowing in EBRD regions in 2019
INDUSTRIAL PRODUCTION INCREASES
BY 17.5 PERCENT
As of the first quarter of this year, a total
production of industrial sector reached MNT 3.8 trillion, showing an increase
of 17.5 percent comparing to the same period of last year. This increase was
mainly caused by 21.3 percent growth in total production of mining and
extractive industry compared to the same period of previous year.
Moreover, coal mining and metal ore mining upped by 64.9 percent and 1.4
percent respectively. Extraction of fluoride, petroleum, molybdenum concentrate
and gold are decreased by 4.2-30.1 percent.
In the processing sector, production of main types of products including beer,
vacuum windows, doors, buuz and dumpling, woolen and textile goods, combed
cashmere and wooden doors and windows for building are increased by 2-97.1
percent.
Source:Montsame
COAL EXPORTS RISE 11.7 PCT IN
FIRST 4 MONTHS
Mongolia’s coal exports increased 11.7 percent year
on year in the first four months of 2019, the Mongolian Customs General Administration
(MCGA) said Thursday.
The resource-rich Asian country exported around 11.4 million tons of coal
during the period, which was worth 961 million U.S. dollars, posting a
year-on-year rise to 21.6 percent.
The coal price per ton was an average of 77.8 dollars from January to April in
2018, and it increased to 84.4 dollars on a year-on-year basis in 2019, the
MCGA said in a statement.
Coal is the landlocked country’s main export commodity. The country exported a
total of 36.5 million tons of coal in 2018, reaching an all-time high.
The country has set itself the goal of increasing coal exports to 40 million
tons in the coming years.
Source:Xinhua
MONGOLIA IS DIVERSIFYING ITS
ECONOMY TO BUILD BUFFERS OVER RAPID GROWTH
Rising gold and copper prices have helped fuel
growth in Mongolia, which heavily relies on mining. But how does the country
save for a rainy day when global demand for the metals used in electric car and
renewable energy are rising?
The economic growth of Mongolia last year was 6.9 percent, the highest in four
years. The Asian Development Bank (ADB) expects the country’s growth to be 6.7
percent this year. Khurelbaatar Chimed, Mongolia’s finance minister, cited the
country needs buffers to avoid an increasing government debt.
“Three years ago, government debts accounted for 85 percent of our GDP, now
[the percentage] is down to 58 percent. We need buffers,” said Chimed, noting
that his country has created the stabilization fund and the wealth fund, and
it’s also necessary to be very careful about expenditure decide for the budget.
Source:CGTN.com
FIRST OF 107 ENHANCED COAL
RETAILS OPEN IN ULAANBAATAR
Ulaanbaatar city authorities, headed by the Mayor,
opened the first store of enhanced coal at the 22nd khoroo of Songinokhairkhan
district on Monday.
Tavan Tolgoi Fuel (TTF) LLC has commenced the operation of two factors
previously. As of May, three production lines are in operation. They are
working to expand the lines to seven. The factories have the capacity to
produce more enhanced coal after the expansion. The company was established in
May 2018 at the Parliamentary Resolution related to the ban on the usage of raw
coal consumption.
220,000 households use 1.2 million tons of raw coal per year during the winter
in Ulaanbaatar, according to a survey. TTF has the capability to provide those
households with 600,000-700,000 tons of enhanced coal. The coal will be
available to the public at 107 locations of ger districts in Ulaanbaatar. Also,
the project will involve coal sellers.
Source:ZGM Daily
MONGOLIA LAUNCHES FIFTH
INNOVATION WEEK
Mongolia on Monday here launched its fifth Innovation
Week to promote creativity in the public and private sectors.
The week under the theme of “Joint Innovation” is being co-organized by the
Mongolian Ministry of Education, Culture, Science and Sports, the Mongolian
Academy of Sciences, the Mongolian National Chamber of Commerce and Industry,
several universities and other relevant institutions.
The event aims to create cultural innovation and develop creative thinking and
innovation skills in public and private organizations in order to promote the
development of the country’s society and economy, the Mongolian Ministry of
Education, Culture, Science and Sports said in a statement.
In the week, a series of activities will be held in the Mongolian capital city
of Ulan Bator, including an exhibition of innovative products, discussions
about innovation and a contest to award innovative ideas and projects for
business.
Since 2015, the Innovation Week has been annually organized in Mongolia.
Source:Xinhua
BOM PURCHASES 1.1 TONS OF GOLD
IN APRIL
The Bank of Mongolia (BoM) bought 1.1 tons of gold
in April, 2019, which shows 10 percent growth comparing to the same period of
previous year.
In April, the Darkhan-Uul and Bayankhongor branches of the BoM bought 9 kg and
3 kg of gold respectively. The gold purchase increased since the adoption of
the bill on amendments to the Law on Mineral Resources at the irregular session
of the Parliament. Gold royalty was increased from 2.5 to 5 percent.
Throughout April, average price for a gram of gold stood at MNT 108,757.
Source:Montsame
MONGOLIA LIFTS QUARANTINE AFTER
COUPLE DIES FROM EATING RAW MARMOT MEAT
Mongolia has lifted its
six-day quarantine after a couple that had eaten raw marmot meat died of
suspected bubonic plague, according to a new report.
The Russian couple — a 38-year-old man and his 37-year-old pregnant wife —
reportedly fell ill April 27 after hunting and eating contaminated marmot, a
large species of squirrel, in Mongolia, reports said.
They died three days later, leaving behind four kids.
Their deaths sparked panic aboard a plane and forced authorities to place the
western Bayan Olgii province, bordering both Russia and China, under what they
called an “indefinite quarantine” — leaving tourists stranded.
But by Monday, a number of tourists were finally able to leave the area, the BBC reported.
Marmot meat is considered a folk remedy for good health, Ariuntuya Ochirpurev
of the World Health Organisation in Ulaanbaatar, the country’s capital, told
the BBC.
Source:The New York Post
See also: Bubonic Plague Strikes In
Mongolia: Why Is It Still A Threat?
PASTURE CARRYING CAPACITY
EXCEEDED BY 41.2 PCT
Mongolia’s pasture was overloaded with livestock
animals with 41.2 percent more than its carrying capacity, the country’s parliament
speaker Gombojav Zandanshatar said Tuesday.
Zandanshatar made the remarks during the opening ceremony of a national
conference under the theme of “Creating legal environments for pasture usage
and protection.”
“Now, Mongolia has around 66.5 million of livestock animals which exceeded the
carrying capacity of pastureland in the country by 41.2 percent,” Zandanshatar
said.
As of the end of 2018, agriculture land accounted for 73.8 percent of the
country’s total land area, according to the parliament speaker.
A total of 850 people, including members of the Mongolian parliament and
government as well as officials and herders from all 21 provinces of the
country attended the conference to explore ways to protect pasture,
rehabilitate degraded pastures and adjust the number of animals to the existing
pasture carrying capacity.
Source:Xinhua
IMMIGRATION OFFICER: ELECTRONIC
VISA PERMIT SERVICE NOW AVAILABLE – INTERVIEW
The Mongolia Immigration Agency
has just started issuing an electronic visa permit to the foreign nationals. In
this regard, we have interviewed Mr. Turkhuu, Officer of the Visa and
Citizenship Department of the Mongolia Immigration Agency to highlight the
service.
-How will the customers of the Mongolia
Immigration Agency apply for the e-service? Also, how many days will it take to
receive the response?
-It is possible to get the electronic service by visiting and registering at
the “E-VISA” webpage which locates at the upper right site of Mongolia
Immigration Agency’s official website – immigration.gov.mn. When a registered
user reads the instruction and enters the required application documents to the
system, Mongolia Immigration Agency officers accept the application. If the
electronically sent documents are complete, the visa officers will send the
visa permit via e-mail or message in 3 working days.
Source:GoGo News
ADB ZOOMS IN ON CLIMATE CHANGE
AND TOURISM – EDITORIAL
Over 2,000 delegates from the Asia Pacific region
came together in Nadi, Fiji for the 52nd Annual Meeting of the Asian
Development Bank’s (ADB) Board of Governors, which took place from May 1 to 5.
The 2019 annual meeting marks the first time a Pacific developing member
country will host ADB’s largest annual gathering, providing ADB Governors an
opportunity to discuss important and pressing development issues facing Asia
and the Pacific. The theme for this year’s event is “Prosperity Through Unity.”
This year’s meeting focused on sustainable tourism and its potential to boost
national and regional development efforts, the role of private sector financing
for disaster risk management and climate resilience, and the importance of
actions to improve ocean health. Responses to heightening global economic
uncertainty, the role of digital technologies for financial inclusion, and new
tools for sustainable infrastructure development were also key topics of
discussion.
Source:The UB Post
BUSINESS
IFC MULLS FINANCING PACKAGE OF
UP TO USD 70M FOR MONGOLIA’S KHAN BANK
The International Finance Corporation (IFC), a
member of the World Bank Group, has proposed to extend a five-year financing
package of up to $70 million to Mongolia-based lender Khan Bank, according to a
disclosure.
The financing package entails subscription to a five-year US dollar-denominated
green bond of up to $30 million, and provision of five-year sub-debt of up to
$40 million from IFC’s own account. The green bond will represent the first
issued by a private sector company in the country.
Through the partnership with Khan Bank, IFC aims to strengthen the capital base
of the bank and to promote financing support to micro, small and medium
enterprises (MSMEs).
IFC has been a shareholder in Khan Bank since 2004, providing both financing
and advisory support to the bank.
Source:DealStreetAsia.com
OYU TOLGOI STATEMENT ON RECEIPT
OF PARLIAMENTARY REPORT
Oyu Tolgoi LLC confirms that on 3 May 2019 the
company received a copy of the summary Parliamentary Working Group (PWG) report
from the Economic Standing Committee through a formal unclassified letter.
In order to provide input into the Committee’s discussion even with this short
notice, Oyu Tolgoi provided a written response to the PWG summary report in a
formal way on Monday 6 May 2019. As a company with high integrity and
care for our partnership with the Government of Mongolia, we will continue to
respect and support the Parliamentary process, as we have been doing for the
last year and stand ready to provide further input into the discussion as
requested.
Source: Internal
See also: Turquoise Hill Provides
Update on Parliamentary Working Group Report
“CEO of Turquoise Hill is
in Mongolia actively working on this matter”
CONSTRUCTION OF MONGOLIAN
NATIONAL FILM STUDIO COMMENCES
Within the framework of the Maidar eco-city project,
the groundbreaking ceremony of Chinggis Khaan, Mongolian National Film Studio
takes place in Zuunmod soum, Tuv province. The first studio construction work
will begin in summer.
The project leader estimates that a total of over USD 40 million investment is
planned for the construction of five studio projects. The complex consists of
nine studios, a production facility, an open-film shooting station, and
full-service offices with modern standards.
The government decided to develop the Maidar eco-city project, which will be
built as the second biggest developed city after Ulaanbaatar. The project will create
apartments with a capacity of accommodating 200,000 people. According to a
pre-estimation, USD 3 billion investment will be required for its
infrastructure. The first phase of Maidar construction will finish in 2030.
Source:ZGM Daily
OVER 30 INDIAN COMPANIES TO
INTRODUCE THEIR PRODUCTS AND SERVICES
Mongolian-Indian joint exhibition on oil and natural
gas industry is to be held on May 13-14 in Buyant Ukhaa Sport Palace.
The Embassy of India in Mongolia, the Ministry of Mining and Heavy Industry of
Mongolia, the Mongolian Oil Refinery state-owned company and Engineers India
Limited Company will co-organize the exhibition in connection with the
construction of the first ever oil refinery in Mongolia being built with over
USD 1 billion soft loan from the Indian Government.
More than 30 Indian companies in oil and natural gas industry will partake in
the exhibition, introducing their products and services. These products and
services will be used in progress of construction of the oil refinery and oil
pipelines.
Source:Montsame
PURSUING CRIMINAL CHARGES FOR
TRADEMARK INFRINGEMENT
In our previous blogs (here and here), we stated that the question whether the
infringement of the trademark owner’s rights constitutes an infringement or
criminal case will be determined by virtue of the damage amount arisen out of
such action, and also that there are different sanctions to each scenario.
In order to determine whether this action is the crime of ‘Violation of the
rights of trademark owner and geographical indication” stated in Article 18.16,
the damage incurred out of the action of confusing consumers through
production, storing, transportation, sales and crossing of the state frontier
by using trademark or geographical indication shall be more than 300,000 MNT
(115 USD)and above.
If it is proven that the damage amount equals or exceeds the amount stated in
the Criminal procedure law of Mongolia, the following measures with regard to
criminal case filing may be taken.
Source:LehmanLaw Mongolia
See also: Summary Of Civil
Procedure Of The First Instance Court: Preliminary Stage
KINCORA RAISES CAD 6M FOR
MONGOLIA EXPLORATION
The private placement includes 60 million 10c units,
each comprising one share and one warrant entitling a holder to acquire a
further share at 25c each for a two-year term.
The company’s largest shareholder, LIM Asia Special Situations Master Fund, has
said it will subscribe for its pro rata share of the offering, which is about
28%, after an independent technical review of Kincora’s targets and proposed
work programmes.
Kincora also said it had received strong indicative support from insiders,
including existing and new shareholders.
Chairman Cameron McRae said he was glad Kincora had attracted a strong
cornerstone position from its largest shareholder and interest from other experienced
institutional resource sector specialist and high net-worth investors.
Source:Mining-Journal.com
MONGOLIA’S NORTHERN RAILWAYS
SIGNS EPC AGREEMENT
The Northern Railways subsidiary of coking coal mine
project developer Aspire Mining Ltd has signed an engineering, procurement and
construction agreement for the proposed 547 km Erdenet – Ovoot railway with a
joint venture of China Gezhouba International Engineering Co and China Railway
20 Group Corp.
The agreement was signed on April 25 during the Second Belt & Road Forum in
Beijing.
The lump-sum turnkey contract has a maximum price of US$1•58bn, including
‘conservative’ risk assessments for ground conditions as well as all
contingencies, inflation and a completion guarantee fee.
The go-ahead is conditional on a funding package for the project being agreed,
permits being granted and the conditions of Aspire’s rail concession agreement being
met by Febraury 20 2020. A guarantee of capacity on the existing rail network
is also required.
Source:RailwayGazette.com
COAL TRUCKERS GO ON STRIKE,
DEMANDING FREIGHT RATE HIKE
Mongolian truck companies that mainly engage in coal
transport from Tavan Tolgoi coalfield to Gashuunsukhait border crossing went on
strike on 6 May 2019, demanding an increase in transport services prices, local
newspaper Zasgiin Gazriin Medee reported.
There are more than 170 companies engaged in coal transport on the route.
Presently, the transport service price has slumped to 65 yuen/t from previous
115 yuen/t, reducing many of them into the red, according to the Coal Transport
Industry Protection Association, which announced the strike.
Among the 170 coal transport companies, 80% are controlled by Chinese investors
and only 20% are Mongolian-funded firms. The association urged an expansion in
Mongolian-owned market share and a public discussion on coal transport and
purchase issues by 13 May 2019.
Currently, the strike had a limited impact on coal transport through
Gashuunsukhait border crossing, which connects with Ganqimaodu border crossing
on the side of China.
Source:WorldCoal.com
