News Mongolia Business News

Minerals law amendments passed by parliament, to boost exploration

Source: Bloomberg Businessweek
Parliament yesterday approved changes to the nation’s 2006 Minerals Law, a development that may spur renewed investment in the flagging economy.
Passage of the amendments was announced on Parliament's website. The legislature, which ended its spring session Tuesday, also passed a new law on energy to help expand that sector. In another vote, parliament blocked government investment in the Tsagaan Suvarga copper and molybdenum project, according to Otgochuluu Chuluuntseren, director general of the Ministry of Mining’s department of strategic policy and planning.

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Mongolia Business Summit kicks off with signing of $1.3 bn power deal

Source: Mongolia Business Summit
Over 400 participants arrived for the first Mongolia Business Summit opened in Ikh Tenger, Ulaanbaatar on 19 June 2014, where a concession agreement was signed for the Combined Heat and Power Plant No. 5.
Prime Minister Norov Altankhuyag opened the summit with the message that the first thought before any policy is passed in Parliament: "How does this support private business?" The cabinet is meeting twice a week to decide on reforms that would support the growth of business growth and attract foreign investment, he said, with the greatest focus on strengthening rule of law, stability, predictability of the legal and regulatory environment, and business growth. President Tsakhia Elbegdorj addressed the summit on the second day, highlighting the capabilities of citizens, profitability of business, and the initiative to introduce smart government as three pillars of growth.

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Investors detailed on Tavan Tolgoi Power Plant project

Source: Montsame
The project development team for the Tavan Tolgoi Power Plant presented to representatives of MCS Holding LLC and Oyu Tolgoi and investors on Thursday.
A trade commitment was presented that include 10 documents on such issues as energy sale and purchase, coal supply, and investments for the investors. The successful completion of the project would pave the way for subsequent mega projects in Mongolia, said project unit director M. Enkhsaikhan.
France's GDF Suez SA and Posco Energy Corp., Kansai Electric Power, Marubeni Corporation and Daewoo Engineering and Construction have all been chosen to participate in the project.

Noble Group benefits from strategic alliances

Source: Mongolian Investment Banking Group
Companies such as Noble Group Ltd. that have invested in a major segment of the South Gobi region continue to display the belief that long-term payoffs will result from increased participation in the sector.
Hong Kong-based Noble Group is the other half of the joint venture Aspire Mining Ltd. purchased 50 percent of from Xanadu Mines Ltd. for the Nuurstei coking coal project. Noble is slated to partially finance a railway that will connect the coal projects to the main railway going to both Russia and China and has acquired access to a Russian port that could allow seaborne transport.

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Mongolia secures growth with cement production hike

Source: Oxford Business Group
New production capacity in Mongolia’s cement industry is set to meet rising demand as advanced technology is replacing old equipment, moving towards self sufficiency in one of the key materials in the construction trade.
In May, Mongolia began production at the country’s largest cement plant, a one million-ton-capacity facility in the Khutul district of Selenge Province. The plant was refurbished over a one-and-a-half year period, replacing outdated technology from an inactive Soviet-era cement factory with a modern dry process system. Prior to the Khutul plant coming back on line, Mongolia’s cement production was around 240,000 tons per year, well short of the two million tons poured in 2013. The shortfall in production has traditionally been met by imports, mostly from China, though demands from that country’s domestic market have at times put constraints on sales to its neighbor, limiting construction sector growth in Mongolia.

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Parliament speaker hopes to sign Russian deal on visa-free regime

Source: Itar-Tass
Parliament Speaker Zandaakhuu Enkhbold hopes to sign a visa-free regime with Russia in August.
“In August we expect that (Russian President) Vladimir Putin will attend celebrations on the occasion of the 75th anniversary of victory in the Battle of Khalkhin Gol,” Enkhbold. “I believe that during President Putin’s visit it (the agreement) will be signed, the issue is already agreed upon.”
“Talks on this issue had lasted five years, and this agreement has already been reached at the level of foreign ministries,” he said, adding that “we are convinced that the transfer to visa-free rules will attract new investors and tourists".

PP3 annex goes online; PP5 will launch soon

Source: Montsame
Prime Minister Norov Altankhuyag Monday attended an opening ceremony for the 50-megawatt annex for Power Plant No. 3.
The annex is the largest upgrade for the energy sector in the last 25 years. Mongolia contracted China’s Human Industrial Equipment Installation for the work, which was paid USD 35 million, with funds used from the 2012 Chinggis bond proceeds.

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Naadam horse-racing stadium to finish 5 July

News: Montsame
Ulaanbaatar Mayor Erdene Bat-Uul last Sunday inspected the Khui Doloon Khudag for horse racing, which is  currently under construction.
Work for this year includes the paving of a 2.7-kilometer road and an 800-meter sidewalk as well as construction of a parking lot able to hold 500 cars before the Naadam festival begins on 11 July.
Rail buses will travel the 2.3 kilometer's distance to the horse-racing stadium this year, in addition to five buses.
The Naadam complex will be for winter sport events, in addition to the summer festivities.