EK MET GERMAN STATE SECRETARY
OF ECONOMY AND ENERGY
On Oct 1st Dr Schnorr
met with German state secretary of economy and energy Oliver Wittke in Berlin
to discuss main bilateral projects and issues within the Mongolian renewable
energy and mining sector. The German government supports Euro Khan in its
investments.
EK SIGNED PARTNERSHIP AGREEMENT WITH AKUO ENERGY
EK can proudly announce its new partner: Akuo Energy
Dr. Schnorr traveled to Akuo Group’s head office in
Paris to sign a collaboration agreement for joint the project sector of
renewable energy in Mongolia.
Akuo Energy develops, finances, builds and operates
renewable energy power plants all over the world. Akuo Energy is the first
French green IPP. It develops and operates power plants that go beyond simply producing
renewable power and create additional social benefits for the inhabitants of
the areas in which they live.
EK VISITED OT
Dr. Oliver Schnorr visited the biggest underground
mine of Mongolia Oyu Tolgoi with DMUV representatives and the German Ambassador
Jörn Rosenberg. It was an excursion to introduce the new Ambassador to the
Megaproject OT.
This is a pioneering project, built on the
foundation of an agreement between the Government of Mongolia, Turquoise Hill
Resources and Rio Tinto that is going to be the third-largest copper producer
in the world. The delegation went to 1300 meters below the surface to see Oyu
Tolgoi underground mine development.
EK ATTENDED EXPO MONGOLIA 2019
‘Expo Mongolia 2019’ International Multisector and
Mining Trade Fair and Conference were opened on October 9 at Misheel expo
center under the motto ‘Green Technology and Investment.’
Though the Expo Mongolia highlights mining sector,
mainly presenting mining technologies, equipment, and devices, this time, the
expo touches water management issues regarding climate change, which is in
center of attention of world countries, involving foreign and domestic
companies and entities that operate in this direction to the expo. EK attended
Expo Mongolia 2019 with own boot for three days. EK personnel introduced company
portfolio, products and services to expo visitors.
DMUV CHAIRMAN WELCOME THE NEW
ADVISORY BOARD
The DMUV Advisory Board hold its constituent meeting yesterday. The board members elected MP Terbishdagva as their chairman. The DMUV Advisory Board Chairman, together with the other Advisory Board members MP Lu. Bold, the German Ambassador to Mongolia Mr. Rosenberg and the Chairman of the Mongolian Banker’s Association Mr. Unenbat will support the work of the DMUV Board and office in the future.
SCHACHTBAU NORDAUSEN
REPRESANTATIVES VISITED EK
On October 9th Head of Mining Works International of
Schachtbau Nordhausen GmbH, Mr. Olaf Schmidt and Project Engineer Ana
Oellermann visited Mongolia. They attended EXPO MONGOLIA 2019 and met local
clients during their visit in Mongolia.
EURO KHAN HAS STRENGTHENED ITS
MANPOWER WITH NEW PERSONNEL
On Oct 1st, EK has hired Mr. Zolboo Bold for Sales Manager
who will oversee sourcing special-order sales and assist colleagues with bids
and tenders for new clients from a technical and commercial perspective. Zolboo
has more than 10 years of experience in sales. We are happy to strengthen our
workforce with such personnel. Best of luck to you Zolboo!
OLIVER SCHNORR ATTENDED SSP
BOARD MEETING
With the 120-million-dollar direct foreign
investment, it is one of the biggest Megaprojects and windfarms in Mongolia.
OLIVER SCHNORR MET KHANBOGD
SOUM GOVERNOR
Dr. Oliver Schnorr met the governor of Khanbogd soum to discuss investment opportunities in renewable energy and mineral processing with German Ambassador Jörn Rosenberg.
BRAZIL-MONGOLIA CHAMBER OF
COMMERCE
We are happy to announce that our Chief Operating
Officer Mr. Koji Suzuki takes chairman role in Brazil-Mongolia chamber of commerce
to promote trade and investment activities between Brazil and Mongolia and to
assist in the development of closer ties connecting the two nations’ business
communities.
The Brazil-Mongolia chamber of commerce official public launch event “Churrascaria in Ulaanbaatar” held successfully on October 10 and guests enjoyed Brazilian culture, food, music and dance.
CORRECTION OF PARTNERSHIP
ANNOUNCEMENT
As correction of newswire Sep 27, we would like to
state that agreement with DMT is non-exclusive.
Economy
·
East Asia and Pacific: Growth Slows as Trade Tensions and Global
Uncertainties Intensify
·
Foreign trade surplus reaches USD 1.3 billion
·
Mortgage financing reaches MNT 313 billion as of September, up 54 pct y/y
·
Top economists discuss major economic concerns of Mongolia
·
Enhanced responsibility boosts customer trust in banks, says new survey
·
Save Children Japan, World Bank launch to support rural youth in Mongolia
·
Crime rate up 7.8 pct in 9 months
·
National committee of “Management of Social Transformation” programme
established
Business
·
Assistant US Trade Representative hosts GSP outreach seminar in Mongolia
·
Baganuur mine continues to face 3,500 MNT loss per ton of coal
·
E-export project starts to export products on online platforms
·
Reviving the hemp market in the Central Asian steppes
·
MSM Group vacancy announcement: Project Manager – OT
·
Aspire Mining advances DFS for early development of world-class Ovoot
project
·
Expo Mongolia 2019 highlights eco-friendly technologies
·
TDB launches instant card issuance in Mongolia
·
Director of Coal Association: Government’s decision threatens investment
– Interview
ECONOMY
EAST ASIA AND PACIFIC: GROWTH
SLOWS AS TRADE TENSIONS AND GLOBAL UNCERTAINTIES INTENSIFY
Growth in developing
East Asian and Pacific economies is expected to slow from 6.3 percent in 2018
to 5.8 percent in 2019 and to 5.7 and 5.6 percent in 2020 and 2021,
respectively, reflecting a broad-based decline in export growth and
manufacturing activity.
Weakening global demand, including from China, and heightened uncertainty
around ongoing US-China trade tensions has led to a decline in exports and
investment growth, testing the resilience of the region, according to Weathering Growing Risks, the October 2019 edition of the World Bank’s East
Asia and Pacific Economic Update, released today.
In Mongolia, growth momentum has continued in the first half of 2019, as GDP
rose to 7.3 percent from 6.8 percent in 2018. This robust performance has
largely been supported by a strong coal sector and increased private
investment. In addition, improved market confidence following the continuous
support from multilateral banks as part of a $5.5 billion multi-donor support
package, skillful management of the macroeconomy, especially on the fiscal
side, and steady progress on structural reforms contributed to the strong
performance.
Source: World Bank
See also: Near-to-medium-term
outlook for Mongolian economy remains positive: WB
FOREIGN TRADE SURPLUS REACHES
USD 1.3 BILLION
As for the first nine months, Mongolian foreign
trade had surplus of USD 1 billion 347.2 million according to Mongolian Customs
General Administration (MCGA).
Mongolia has engaged in trade worth USD 10.5 billion with 146 countries which
increased by USD 911 million (9.5 percent from same period of the last year),
of which export reached to USD 5.9 billion (12.6 percent increase) due to the
increases of USD 421.1 million in mineral products, USD 199.9 million in pearl,
precious and semi-precious stones, precious metals and jewelry, USD 28.2
million in textiles and textile articles.
Import reached to USD 4.5 billion, increased by USD 247.7 million compared to
the imports of same period of previous year. Import growth was mainly affected
by import increase of minerals by USD 40.9 million, of plastic and synthetic
products by USD 33.7 million, transport vehicles, their spare parts by
USD 179.7 million and of industrial products by USD 22.2 million respectively.
Source: Montsame
MORTGAGE FINANCING REACHES MNT
313 BILLION AS OF SEPTEMBER, UP 54 PCT Y/Y
September, a total of 313 billion MNT has been
injected into mortgage loans for 4,447 loan applicants within the scope of the
eight percent interest rate mortgage program, according to the central bank.
This is 109.8 billion MNT higher than the 203.8 billion MNT financing issued to
2,963 applicants over the first nine months of 2018. The financing budget for
the first nine months also exceeds the total mortgage financing buddle issued
last year. In particular, the mortgage program received a total of 309 billion
MNT in financing in 2018, allowing 4,676 individuals to get mortgages with
eight percent interest rate.
In September alone, Mongol Bank provided 16 billion MNT to 243 individuals,
government provided eight billion MNT to 130 individuals and commercial banks
issued eight billion MNT to 111 individuals through the housing program.
Compared to the same period of last year, the central bank’s mortgage financing
has remained the same but four more individuals received financing.
Source: The UB Post
TOP ECONOMISTS DISCUSS MAJOR
ECONOMIC CONCERNS OF MONGOLIA
Economists have discussed major industrial
challenges of the world and its effect on Mongolia at the Business Environment
forum of Bloomberg TV Mongolia’s Economists Club. The forum held a panel
discussion on the trade war and economic risk, the legal environment of foreign
investment, and business opportunities in Mongolia.
Legislation in the mining sector is inadequate, Executive Director of the Coal
Association of Mongolia Zoljargal Jargalsaikhan highlighted during the
discussion. According to the Ministry of Mining and Heavy Industry, 100
licenses have been issued and 300 licenses have been revoked in the last three
years. Most economists assume that it will reduce foreign investors to collaborate
in the industry.
“One of the main burdens to Mongolia’s economy is external debts and budget
deficit. We need to improve our fiscal policy and prepare to pay the external
debt. In 2018, Mongolia’s budget revenue reached MNT 12 trillion while budget
expenditure totaled MNT 14 trillion,” said one of the participants of the panel
discussion.
Source: ZGM Daily
ENHANCED RESPONSIBILITY BOOSTS
CUSTOMER TRUST IN BANKS, SAYS NEW SURVEY
“Responsible Customer – Responsible Bank” campaign conducted
a sample survey among bank customers in September to determine the level of
satisfaction with banking services.
The campaign, led by Mongol Bank, announced results of the survey last Friday,
highlighting that by becoming more reliable and financially stable, banks were
able to gain more trust from customers.
Overall, the survey found that people are satisfied with their current bank.
When asked how satisfied they find their current bank, the majority of people
gave an average score of seven out of 10. The survey also indicated that older
customers were more satisfied with their current banks than younger customers.
Another interesting finding was that people primarily choose banks based on
their reputation, quality and accessibility of their services, and their
familiarity with the bank rather than paying attention to the types of products
and services the bank offers, their savings and credit interest rates, and loan
related requirements.
Source: The UB Post
WHEN WASTE WORKS FOR WOMEN
“Women can’t be truck
drivers because it is dirty work. How would she cook for her family in the
evening with dirty hands?”
Such is the sentiment of one official at Ulaanbaatar TUK, a public company that
collects waste in Mongolia’s capital. It’s an opinion by no means limited to
one official, nor unique to one country. An employee of Greener Way, a private
waste management company in Bhutan, claims that “there are only men in
collection because women cannot handle emptying the heavy dustbins.”
Of course, these gender-biased attitudes clash harshly with reality. Women have
traditionally been more involved in the waste management sector – usually are working
for free.
And despite bias against them, their role continues to be outsized and critical
to the sector, according to new research conducted by the UN Environment
Programme and published in a new report released today, the Gender and Waste Nexus:
Experiences from Bhutan, Mongolia and Nepal.
Source: UN Environment
SAVE CHILDREN JAPAN, WORLD BANK
LAUNCH TO SUPPORT RURAL YOUTH IN MONGOLIA
Save the Children Japan (SCJ) and the World Bank
today announced the launch of a US$2.75 million grant for a project to support vulnerable
youth in rural Mongolia. The project—funded by the Government of Japan under
the Japan Social Development Fund and managed by the World Bank—will help youth
in disadvantaged rural communities gain the skills and competencies needed for
success in school and in the labor market.
Despite increased educational attainment in Mongolia, vulnerable youth in rural
areas who are at risk of or have already dropped out of school continues to
face challenges entering the labor market. This happens both due to limited job
opportunities, as well as their lack of the technical and socioemotional skills
needed for successful careers and self-employment. Socioemotional skills
include self-management, goal orientation, personal responsibility, and
decision-making.
Source: DevDiscourse.com
CRIME RATE UP 7.8 PCT IN 9
MONTHS
The crime rate in Mongolia has risen by 7.8 percent
in the first nine months of this year, the country’s National Police Agency
(NPA) said Friday.
A total of 26,314 criminal cases were recorded across the country in the
January-September period, up 7.8 percent compared to the same period last year,
the NPA said in a statement.
Two types of crimes — theft and crimes against human life or health — accounted
for 84.6 percent of the total number, according to the police agency.
A total of 823 people were killed in crimes in the above-mentioned period, it
said, adding that the number increased by 13 percent year-on-year.
Around 67 percent of the total recorded crimes across the country in the first
nine months were committed in the capital city of Ulan Bator, home to more than
half of the country’s 3.2 million population.
Source: Xinhua
NATIONAL COMMITTEE OF “MANAGEMENT
OF SOCIAL TRANSFORMATION” PROGRAMME ESTABLISHED
A National committee of “Management of Social Transformation”
programme has been co-established by Mongolian Academy of Sciences (MAS) and
Office of the Parliament.
At the initiation of Speaker of the Parliament G.Zandanshatar, a seminar
entitled “Reducing Social inequalities: from Knowledge to Policy” was organized
in July, 2019 within the framework of UNESCO’s “Management of Social
Transformation” programme. Participants of the seminar suggested that Mongolia
should implement UNESCO’s “Management of Social Transformation” programme to
strengthen the cooperation between scientific organizations and decision-makers
for reducing social inequality. Therefore the national committee was
established and Adviser of Social Policy to Speaker of the Parliament D.Badarch
,Ph.D., was appointed as a chairman of the committee.
The implementation of the UNESCO’s “Management of Social Transformation”
programme will enable scientific institutions increase their participation in
providing the Parliament.with scientific research, references and information.
Source: Montsame
BUSINESS
ASSISTANT US TRADE
REPRESENTATIVE HOSTS GSP OUTREACH SEMINAR IN MONGOLIA
The Assistant United States Trade Representative
Edward Gresser hosted a seminar in Mongolia on how to increase exports to the
United States on October 4.
The Embassy of the United States in Mongolia, with the Office of the United
States Trade Representative, the Mongolian National Chamber of Commerce and Industry,
and the American Chamber of Commerce in Mongolia, organized a seminar on how
Mongolian exporters can use the U.S. Generalized System of Preferences to
obtain tariff reductions on exports to the United States. The visit of
the Assistant U.S. Trade Representative, the most senior trade official to
visit Mongolia in years, is a sign of the deepening U.S. – Mongolia trade and
investment relationship as strategic partners.
The U.S. Generalized System of Preferences (GSP) provides opportunities for 120
designated beneficiary countries and territories, including Mongolia, to
eliminate or reduce duties on thousands of products. However, many
exporters eligible for the GSP may not be familiar with the many benefits of
the program.
Source: Montsame
Click here to view the presentation (PDF)
BAGANUUR MINE CONTINUES TO FACE
3,500 MNT LOSS PER TON OF COAL
Together with Shivee Ovoo, Baganuur mine supplies
more than 90 percent of coal consumed in the central region despite facing a
loss of 3,500 MNT per ton of coal sold, reported Erdenes Mongol LLC in a
statement on Monday.
In particular, Baganuur mine produces a ton of coal
for 37,000 MNT but sells it to thermal power plants for 33,500 MNT.
On the other hand, Shivee Ovoo mine produces a ton of coal for 31,500 MNT and
sells it for 29,600 MNT, facing a loss of 1,900 MNT per ton of coal sold.
Erdenes Mongol reported that prices of Shivee Ovoo and Baganuur are regulated
to alleviate burdens of the public. However, their deficit continues to grow.
As repeatedly mentioned by mining officials, this accumulated debt as well as
underpayment of thermal power plants are causing financial burden for the
country. Thermal power plants reportedly owe three billion MNT to Baganuur mine
and 4.1 billion MNT to Shivee Ovoo mine.
Source: The UB Post
E-EXPORT PROJECT STARTS TO
EXPORT PRODUCTS ON ONLINE PLATFORMS
Aimed at exporting Mongolian products to China and
Southeast Asian countries at online trading platforms, ‘Cross-border online
trade E-export’ project started from October 4.
The Mongolian National Chamber of Commerce and Industry (MNCCI) and
Representative Office of Bayannuur city of Inner Mongolia Autonomous Region of
China are jointly realizing the project to facilitate works of national
producers, who have willingness to deliver their products to millions of
consumers using Chinese trading platforms such as Alibaba.com, Taobao.com and
WeChat.
“Our entities will supply their goods to E-export project unit and pay the fee.
The MNCCI will be responsible for all other issues including customs clearance,
transport, storing and payment. Mongolian wool and cashmere products, felt
products, handicrafts and some food products are highly demanded at Chinese
market. President of China Xi Jinping expressed to support export of Mongolian
goods to China during his meeting with Mongolian President Kh.Battulga in
April,” CEO of the MNCCI T.Duuren said.
Source: Montsame
REVIVING THE HEMP MARKET IN THE
CENTRAL ASIAN STEPPES
Three years since
research and intensive awareness
efforts began dedicated to
challenging prohibitive public barriers, our company has secured government
authorizations and regulatory segregated individual licenses for the farming,
processing, transportation, importing, exporting of hemp and its derivate
by-product assortments, including CBD oil with its tremendously versatile
industrial application potential.
Mongolia, a country best known in the ancient times as the cross route of the
Silk Road, connecting trade between Europe and Asia and today, it is more
visible in the eyes of international investors’ eyes due to its vast mineral
resources and untouched natural landscapes covering nomadic livestock grazing
areas.
Our company’s planned activities are focused on building a production facility
plant logistically close to large agricultural farmland resources, including
around 15,000 hectares of wild hemp fauna of prime genetically unmodified
strains of both hemp and cannabis seeds. The fertile soil unexploited over the
last 50 years has recently become an industrial-scale crop cultivation field.
Source: OpenAccessGovernment.org
ASPIRE MINING ADVANCES DFS FOR
EARLY DEVELOPMENT OF WORLD-CLASS OVOOT PROJECT
Aspire Mining Ltd (ASX:AKM) continues to advance a
definitive feasibility study (DFS) for the early development of the world-class
Ovoot Coking Coal Project in northern Mongolia.
The company is engaging with the local community to provide ground access to
complete the technical drilling and associated studies required to complete the
DFS.
Ovoot Early Development Plan (OEPD) is focused on a truck and rail operation to
deliver 4 million tonnes per annum of washed coking coal to end markets within
12 to 15 months of final operational and board approvals.
Operational expansion can then occur following the construction of the
Erdenet-to-Ovoot Railway being progressed by Aspire’s subsidiary, Northern
Railways LLC.
Based on the pre-feasibility study outcomes for the extended Ovoot project, the
OEDP will generate an internal rate of return of 44.5% on a before tax basis.
Source: Proactive Investors, BusinessNews.com.au
MSM GROUP VACANCY ANNOUNCEMENT:
PROJECT MANAGER – OT
Vacancy Announcement
Project Manager – OT
·
Manage
onsite Aux Maintenance
·
Coordinate
maintenance planning with OT
·
Ensure
a safe working environment
·
Ensure
equipment availability exceeds OT requirements
·
Ensure
scheduling of preventative maintenance is done in line with manufacture and
site recommendations
·
Provide
recommendations to both OT and MSN on product & process improvements
General Requirements
·
15+
years in Mining or Industrial sectors
·
Director
leadership of over 50 people
·
10+
years experience working on a mine site
·
Proven
track record in running projects
·
Proven
track record in maintenance and service contracts
·
Excellent
written and verbal English
If you want to apply for open
position, please submit application form or send your CV to erdenetuya@msmco.net
Contact: 88109530, 99003765
Source: MSM Group
EXPO MONGOLIA 2019 HIGHLIGHTS
ECO-FRIENDLY TECHNOLOGIES
‘Expo Mongolia 2019’ International Multisector and
Mining Trade Fair and Conference was opened on October 9 at Misheel expo center
under the motto ‘Green Technology and Investment. ’
‘Expo Mongolia’ project leader Karsten Pren opened the expo, being held for the
7th year. He remarked that Mongolia’s economic growth is expected to be
remained stable in 2019-2020 and this is becoming one of the factors to attract
investors’ attention.
“Mongolia is still dependent on its mining. Since environmental and ecological
issues caused by mining have been arisen, there is necessity to introduce
eco-friendly, economic efficient, up to date technologies in main sectors of
Mongolian economy such as mining, agriculture, arable farming and other
infrastructure sectors and learn from good practices of other countries. ‘Expo
Mongolia’ would become an impetus to tackle it,” he added.
Source: Montsame
‘EGG BOSS’ ARRESTED
The Independent Agency against Anti-Corruption has
put Ts.Baatarbileg, director of “NVTs Group” into custody as a part of an
ongoing investigation to into projects and programmes financed by the Development
Bank of Mongolia.
The “NVTs Group” is the leading egg producer of Mongolia “. Founded in
1998, with an aim of establish a ‘full-cycle’ farming system, the group
started its own egg production in 2003. The NTV provides jobs to over 300
people and pays MNT 7 billion in taxes.
Source: News.mn
TDB LAUNCHES INSTANT CARD
ISSUANCE IN MONGOLIA
One of the largest banks in Mongolia, Trade and
Development Bank (TDB), has launched the country’s first instant card issuance
project with support from Compass Plus, an international provider of retail
banking and electronic payments software to payment processors and financial
institutions.
TDB wanted to make the process of obtaining a bank card easier for its
customers by reducing the number of branch visits required. By utilising
TranzAxis Instant Issuance from Compass Plus, the bank is able to issue a card
on the customer’s first branch visit, providing a fast and seamless banking
experience, which is essential for TDB to stay ahead in a highly competitive
market.
Instant card issuance is currently carried out by TDB branch tellers. In the
future, the bank aims to roll out self-service kiosks where bank customers will
be able to issue a card without any assistance. This innovation will accelerate
the customer experience, while drastically reducing the bank’s operating costs.
Source: BobsGuide.com, FinExtra.com, Verdict.co.uk
DIRECTOR OF COAL ASSOCIATION:
GOVERNMENT’S DECISION THREATENS INVESTMENT – INTERVIEW
Mongolia’s leading economists
have expressed their views at a forum on business environment of Mongolia late
last week. The Official Gazette sat down with Zoljargal Jargalsaikhan,
Executive Director of the Mongolian Coal Association on the occasion. He
addressed that the negative outcomes of the unstable policy will burden professional
organizations.
-How will the government’s decision to revoke
a number of mineral licenses affect the economy?
-It will not affect the mining sector in the short term. Mongolia’s coal
companies have enough capacity to produce a sufficient amount of coal but
the production is only limited by China’s import. Mongolia’s income from coal
will not be affected significantly. But these systematic changes risk
politicizing the professional field of mining and may undermine the efforts
made by the private sector in the last 30-40 years. This may lead to lack of
foreign direct investment in the private sector in 5-10 years. In other words,
the government alone will be able to control FDIs. Current licensing issues of
private entities will become a serious social problem in the future.
Source: ZGM Daily
