EK SPONSORED CHILDREN’S
FOOTBALL CAMP
Intensive football training program organized by
“Mongolian Football Stars” NGO. The 6-day camp was successfully organized
between June 24th to June 29th. A total of 98 children were involved in
the training, 47 of them were registered at the camp and the remaining 51 were
target group children. Every child happily received German Zeus brand football
jersey as a gift. For recognition of success, children had medals. We hope that
the children will be more diligent and willing to learn more about what they
want.
EK BUSINESS TRIP TO ERDENET
MINING CORPORATION
Between July 1st to July 3rd EK team traveled to
Erdenet city for a business trip. The business trip team including Mr.
Khash-Erdene Tsagaanchuluun /Sales Manager/, Ms. Ankhmanlai Jargalsaikhan
/Marketing officer/ and Ms. Enkhgerel Dorj /Sales Officer/ were successfully
met Erdenet mining corporation’s high officials.
During EMC visit, the trip team did a factory visit
and attended business meetings at EMC headquarter. One of the highlights of the
trip was meeting with Mr. Batmunkh Tumen-Ayush who is Erdenet Mining
Corporation Chairman’s First Deputy and discussed the further partnership
SHAREHOLDER’s VISIT
Between June 25th to June 28th, Mr. Klaus Lesker who holds 40 percent of the
shares of EK visited Mongolia. He is also a Managing partner of DIAG. During
his visit, EK management team presented to Dr. Lesker ongoing mega projects of
EK. We had an intense discussion on the possibilities of
cooperation. Dr. Lesker was very proud of what Euro-Khan and EKs team
have achieved so far. He is already looking forward to his next visit.
VEOLIA REPRESENTATIVE VISITED
EK
On July 4th Chief Solutions & Technologies Officer of
Veolia Korea, Mr. Frederic Lucas visited Mongolia. EK employees received
certified Veolia product training from Mr. Frederic Lucas. He met local clients
during his visit to Mongolia.
Economy
·
Mongolia sees a sharp recovery
in economy: IMF official
·
BoM: Inflation to be at 7.8
percent at the end of 2020
·
Mongolia may miss out on 2019
coal export target
·
BoM’s gold purchase falls short
of previous records
·
Massive FX leak: Renewable
energy
·
Petrol price to be reduced by
50-60 tugrug in Mongolia
·
Unexpected summer snow hits W.
Mongolia
Business
·
Mongolia bans exporting live
livestock animals
·
15,000 foreign tourists
expected during Naadam festival
·
New Airport Management Project
to be implemented by Mongolia-Japan joint companies
·
Why Rio Tinto’s Share Price Is
Down 2.83 pct
·
The Brazil-Mongolia Chamber of
Commerce launched
·
Private Equity Firm FGA
Partners Expands Its Physical Commodity Business into Mongolia
ECONOMY
MONGOLIA SEES SHARP RECOVERY IN
ECONOMY: IMF OFFICIAL
Mongolia’s economy witnessed a sharp recovery in
growth thanks to a combination of buoyant external conditions and the
government’s spending restraints, the International Monetary Fund (IMF) was
quoted by the country’s central bank as saying on Sunday.
The Mongolian economy is now much stronger and there has been a significant
improvement in the economy, said Geoff Gottlieb, who led an IMF team to the
Mongolian capital Ulan Bator on June 19-28.
“Mongolia’s growth rate recovered sharply since 2016. The turnaround in real
GDP growth was boosted by strong external demand for Mongolia’s mineral
exports, the resumption of the second phase of the Oyu Tolgoi copper mine and
loosening monetary and credit conditions. In addition, the government’s
improving policy mix strengthened domestic confidence,” Gottlieb said, noting
that these factors have mainly contributed to the sharp economic recovery.
The Asian country’s GDP expanded 8.6 percent year-on-year in the first quarter
of 2019, amounting 3.5 trillion Mongolian tugriks (1.3 billion USD).
Source: Xinhua
See also: IMF Staff Completes 2019 Article IV Mission to Mongolia
BOM: INFLATION TO BE AT 7.8
PERCENT AT THE END OF 2020
Inflation is projected to be 7.2 percent at the end
of 2019 and 7.8 percent at the end of 2020. In May, inflation stood at 7.9
percent nationwide at 8.8 percent in Ulaanbaatar.
The increased price of meat and fuel affected Ulaanbaatar inflation, accounting
for 45 percent of inflation or four units of three kinds of products. As
mentioned in the new inflation status report in June, several factors have hit
the reduction of vision. For example, consumer loan lending has slowed down and
the decrease in loan balance from the beginning of the year reduces the
depreciation burden and increases the impact of wage growth-inflation.
Also, public investment expenditures have been delayed and the appreciation of
the MNT has risen against the CNY. The increase in budget expenditures and its
implications will further increase inflation in 2020. However, the effects of
supply factors will slow and overall inflation is expected to be around the
target level over the anticipated period.
Source: ZGM Daily
MONGOLIA MAY MISS OUT ON 2019
COAL EXPORT TARGET
China’s coal import, which accounts for most of
Mongolia’s coal exports and a substantial proportion of world coal consumption,
increased 30 percent, reaching 29.6 million tons in the last five months,
according to China’s General Administration of Customs. However, the country’s
coking coal import has declined 2.4 percent to 5.92 million tons in May
compared to the same period of the previous year.
As a result, Mongolia’s coal export to China dropped 8.9 percent to 3.68
million tons. Mongolia exported a total of 15 million tons of coal earning USD
1.2 billion in the first five months of 2019, which is only equal to 35 percent
of 2019 export target of 42 million tons.
According to the Ministry of Mining and Heavy Industry (MMHI), the export of
Gashuunsukhait port is in the range of previous years and coal export from
Shiveekhuren port reached 50 percent of the estimated amount. As a result,
Mongolia’s coal export remained 20-30 percent behind plan.
Source: ZGM Daily
BOM’S GOLD PURCHASE FALLS SHORT
OF PREVIOUS RECORDS
The BoM purchased 6 tons of precious metals in the
first of 2019, down 846 kg or 12 percent from the same period last year. The
decline was mainly due to the expiration of the productive period of low royalty
taxes on gold with the 2014 amendments to the Minerals Law, according to the
officials. The average price of 1 gram gold at the BoM was MNT 658.22 as
of June 28.
The 2.5 percent of discounted royalty on gold mining expired on Jan 1. From
then on, 5 to 10 percent royalty taxes on gold mining have been imposed on
miners, driving in the central bank’s gold purchase down 71.6 percent
year-on-year from January to March.
Mongolia‘s parliament has set the gold royalty at a 5 percent rate to recover
the BoM’s gold purchases.
Source: ZGM Daily
See also: Gold purchase by Mongolia’s central bank down 12 pct in H1
MASSIVE FX LEAK: RENEWABLE
ENERGY
Mongolia, which has a vast source of renewable
energy, has not been able to export the electricity harvested from clean
sources and instead, pay more to foreign investors. Key players in the
industry, consisting mainly of foreign investors, sell their expensive power to
Mongolia under the name “clean energy.”
The renewable energy law was passed over 10 years ago and has become obsolete.
It was in a way, an easy means to profit off of Mongolia. Accordingly, the
Mongolian Government has recently revised its policy. In the past few years,
there was no renewal of licenses for wind and solar power plants.
Currently, there are eight solar and wind farms in Mongolia. However, as the
number of new plants and clean energy increases, the people who charge the
price are increasing as well. Mongolians paid MNT 110 billion for the use of
green energy price differentials to new sources. Nevertheless, this money is
mainly paid to foreign investors.
Source: ZGM Daily
PETROL PRICE TO BE REDUCED BY
50-60 TUGRUG IN MONGOLIA
Petroleum price is likely to drop by MNT 50-60 per
litre before National Naadam Festival, reported Deputy Head of Mineral
Resources and Petroleum Authority Ts.Erdenebayar at the ‘Transparent and
accountable mining’ monthly press conference organized by the Ministry of
Mining and Heavy Industry on June 26, Montsame.
At the beginning of the press conference, Minister of Mining and Heavy Industry
D.Sumiyabazar introduced the statistics for the first five months of this year,
noting that mining sector accumulated MNT 1.2 trillion to the state budget.
Budget revenue from the sector increased by 37.4 percent or MNT 318.2 billion,
compared with the same period of the previous year.
On the Erdenes Tavan Tolgoi stock trading, Mining
Minister D.Sumiyabazar noted that preparation process is going well.
Preparations for stock trading on the London Stock Exchange will take up to 2.5
years. We are planning to issue IPO through a subsidiary, he said.
Source: AKIpress
See also: Petrol price drop by up to 100 MNT in western region
UNEXPECTED SUMMER SNOW HITS W.
MONGOLIA
An “abnormal” summer snowfall has hit a western
Mongolian province, a local meteorological department said Friday.
“An unexpected summer snow hit the southwestern mountainous parts of our
province on Tuesday and Wednesday, with an average precipitation of 2-3 mm,”
said Jagsalag Khulibek, expert of Bayan-Ulgii Province’s meteorological bureau,
calling the snowfall an unusual weather condition.
The meteorologist explained that the unseasonal snow was brought by a strong
cyclone from the Siberia.
Bayan-Ulgii Province is located in the west of Mongolia and shares borders with
both China and Russia.
Source: Xinhua
BUSINESS
MONGOLIA BANS EXPORTING LIVE
LIVESTOCK ANIMALS
The Mongolian government on Wednesday banned
exporting live livestock animals and pushed forward plans to improve its meat
processing capacity, according to the government’s press office.
“Previous governments’ decisions on exporting live livestock animals have been
overturned,” the government’s press office said in a statement. “Instead of it,
Prime Minister Ukhnaa Khurelsukh has ordered relevant officials to pay special
attention to increasing the capacity of existing meat processing plants and
building new ones in order to raise meat exports.”
Animal husbandry is the backbone of the landlocked country’s economy as nearly
40 percent of the country’s nomad population depends on animal husbandry for
their livelihood.
As one of the last nomadic countries in the world, the Asian country has more
than 66.46 million livestock animals as of the end of 2018, according to the
country’s National Statistics Office.
Source: Xinhua
15,000 FOREIGN TOURISTS
EXPECTED DURING NAADAM FESTIVAL
Mongolia is expected to receive at least 15,000
foreign tourists during its national holiday of Naadam this month, Environment
and Tourism Minister Namsrai Tserenbat said Wednesday.
The Naadam Festival, which is on UNESCO’s list of intangible cultural heritage,
is an official holiday celebrated every year from July 11 to 15 across the
nomadic country and features horse racing, archery and wrestling.
“The Naadam is one of the main tourism events in Mongolia. At least 15,000
foreign tourists are expected to visit our country during the celebration of
this year’s Naadam,” Tserenbat told a press conference.
The minister noted that his ministry has been working to improve services to
cater to foreign tourists.
Mongolia attracted around 529,370 foreign tourists in 2018, about 12,000 of
them visiting the Naadam festival, according to the tourism ministry.
Source: Xinhua
NEW AIRPORT MANAGEMENT PROJECT
TO BE IMPLEMENTED BY MONGOLIA-JAPAN JOINT COMPANIES
At its regular meeting on June 28, the Cabinet
allowed to establish a concession agreement with Mongolia-Japan joint company
under ‘invest-operate-transfer’ condition for Ulaanbaatar International New
Airport Management Project.
The project will be carried out by ‘Airport at Khushgyn Valley’ state-owned
profit oriented enterprise from Mongolian side and ‘Consortium SPV’ or ‘Japan
Airport Management’ LLC from Japanese side.
Concession term is 15 years and owners of the concession plan to commence works
ensuring their preparations with their funds within 10 months since the
agreement has entered into force.
Source: Montsame
WHY RIO TINTO’S SHARE PRICE IS
DOWN 2.83 PCT
Rio’s share price has managed to reverse the gains
made yesterday after the announcement that non-executive director Moya Greene
would be stepping down immediately. Greene cites that her commitment to the
board was more time intensive than she had imagined.
Though the market responded positively to the departure of Moya Greene
yesterday, it is another high-profile individual causing grief for the company
today.
A senior Mongolian law maker was reported today suggesting the developing
nation would not honour a 2015 agreement that underpins a US$5.3 billion
expansion of the Oyu Tolgoi copper mine.
Minister for Mining and Heavy Industry Sumiyabazar Dolgorsuren, was quoted in
local media claiming the government would no longer accept the 2015 legal
agreement that laid out the terms for the mine’s expansion.
Given the Mongolian government’s history of making hollow threats, it’s
difficult to determine whether or not this is all just political grand
standing.
Source: MoneyMorning.com.au
THE BRAZIL-MONGOLIA CHAMBER OF
COMMERCE LAUNCHED
The Brazil-Mongolia Chamber of Commerce (BMCC) was
officially registered on June 27 to start operating in the country. With
a team of six members plus advisors, the BMCC’s mission is to promote trade and
investment activities between Brazil and Mongolia, and to assist on the
development of closer ties connecting the two nations’ business communities.
According to Higor Uchoa, CEO of the BMCC, the first
ideas to foment business projects between the two countries
date back to 2014, when along with the
Chamber’s current Directors Koji Suzuki and Unurjargal Tsegmid, an
association was designed to promote cultural exchange among Brazilians and
Mongolians. “Unfortunately, some of us had to leave Mongolia by 2015 and the
project didn’t come through. But now we have a unique opportunity in our hands,
since the Mongolian Embassy in Brazil closed its doors in the past year”, says
Uchoa.
Source: Monstame
PRIVATE EQUITY FIRM FGA
PARTNERS EXPANDS ITS PHYSICAL COMMODITY BUSINESS INTO MONGOLIA
It was announced today that private equity firm FGA
Partners “FGA” has made strategic partnerships that will allow the firm to
expand its physical commodity business and certain business opportunities into
the country of Mongolia. This will put FGA in the position of increasing
its reach into Russia, Kazakhstan, India and China for physical commodities as
well as for growth opportunities for its subsidiaries Megahoot and Spartan
Modular Technologies.
This development will give Megahoot and Spartan Modular Technologies a path in
the near future to develop business ventures with private non-government
enterprises, real estate developers, government entities for public/private
partnerships for affordable housing and infrastructure and secure a foothold in
these regions for talent acquisition.
FGA’s inroads into Mongolia would allow the firm to potentially spark continued
growth in exports for the country as well as growth in technology.
Source: DigitalJournal.com
EXCISE TAX ON BEER REDUCED
Mongolian Customs General
Administration centralized MNT 1.45 trillion to State Budget.
As of 2019 first half, MCGA has centralized MNT 1.45 trillion to State Budget
out of planning MNT 1.43 trillion, over fulfilled by 1.7% or MNT 23.77 billion.
Total income increased by MNT 241 billion from last year. Followings show up
and down of income by its kind:
• Custom tax MNT 54.23 billion,
• Value added tax MNT 117.16 billion,
• Excise tax on alcohol MNT 0.70 billion,
• Excise tax on cigarette MNT 10.79 billion,
• Excise tax on sedan MNT 34.93 billion,
• Excise tax on petroleum and diesel fuel MNT 22.57 billion
• And tax on petroleum and diesel fuel increased by MNT 1.86 billion.
Excise tax to beer decreased by MNT 0.44 billion, self-income 0.01 billion and
fee decreased by MNT 0.73 billion.
Source: GoGo News
