NewsWire

Issue 770 –  17 February 2023

BCM NewsWire provides short summaries of news collected from around the world. Each article is kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full article.

BCM Highlight

• Annual Investment Meeting 2023 (AIM), 8-10 May 2023 at ADNEC in Abu Dhabi, UAE

• BCM NewsWire survey

Economy

• Mongolia to present critical minerals project at PDAC 2023

• Moody's affirms Mongolia's B3 rating, maintains stable outlook

• Mongolia Jan coal exports retreat 22.9 pct MoM

• Across China: Booming business returns to China-Mongolia border areas

• Some banks are not dealing with USD

• Mongolian iron ore exports surge 757 pct in Jan y/y

• No car plate restriction during Tsagaan Sar holiday

• The need for disaster preparedness and response is continuously increasing

• World Export Development Forum 2023 to spotlight green, digital trade

• ‘Donating gers to Turkey and Syria will be a great support’

• The Bank of Mongolia introduces new banknotes safety application

• Mongolia walked one step back from advancing cashmere industry development - Editorial

• The impacts of mining on soil pollution with metal(loid)s in resource-rich Mongolia - Paper

• Mongolia is an emerging economic player with enormous potential for UK businesses - Editorial

Politics

• S. Korean, Mongolian PMs hold talks on rare earths, infrastructure

• Mongolia to hold online discussion for coal export trade on Feb 27

• We are awaiting what political and social questions will be answered by the recommendations of the Deliberative Polling

• Sainshand Industrial Complex was ineffective, expert concludes

• UB Mayor working in Tianjin

• Direct flights to be carried out with Qatar

• Mongolia seeks foreign help to produce minerals used for EVs - Editorial

• Defacto Review, Feb. 12 - Video

• Laws work only on paper and children are paying for it - Editorial

• B.Purevsuren: There is no regulation that information must be given with the approval of the director - Interview

Business

• Parabellum delivers maiden Mongolian REE resource

• China’s top coal supplier Mongolia switches to auctions to fetch top dollar from its exports

• FRC: Insurance companies now able to issue MNT 70 billion guarantees

• 50 to 60 percent of coal planned to be traded through stock exchange by 2024

• LehmanLaw: Obtaining Investment Visas in Mongolia

• MIAT Mongolian Airlines Moving Closer To Launching US Passenger Flights

• Talon Energy farm-in partner TMK Energy secures drill rig for pilot well program in Mongolia

• Petro Matad bemoans slower than anticipated certification of Block XX

• "Energy Resources" LLC’s coal trade organized

• Xanadu on the edge of new copper-gold frontier in Mongolia

• Sinomine to Buy Majority Stake in Mongolian Lithium Ore Project for USD20 Million

• MSE-listed companies announce dividends

• B. Dulguun: Electronic coal trading is piloted successfully - Interview

Global and Regional Trends

• Maersk, a global barometer for trade, posts record 2022 earnings but warns of a tough year ahead

• Global Reporting Initiative presents sustainability reporting standard for mining companies

• UK inflation rate dips for third straight month to hit 10.1 pct

• Copper exploration budgets jump, but major discoveries elusive

• Japan GDP up 0.6 pct in Oct.-Dec. on pent-up demand but inflation bites

• Oil and gas industry earned USD 4 trillion last year, says IEA chief

• Gold miners may see margins shine as energy, labor costs edge lower

• Singapore downgrades Q4 GDP, keeps 2023 forecast

• Guyana to complete new oil contract model by Q2 as auction looms

• India's rise is beyond doubt - Editorial

BCM Updates

• BCM submits policy paper

• The BCM appoints Raphaël Goué as official BCM representative in Europe

• SDG Investor Mapping project survey - Identifying business cases for investment opportunities

• UNICEF: Guidance for employers on flexible work arrangements and other good workplace practices in the context of Covid-19

• UNICEF: Call for actions of the private sector to reduce children’s exposure to air pollution in UB

• BCM Guideline for Companies to Combat Air Pollution

• Member-to-member special offers & benefits

Economic Indicators

• Inflation

• Central Bank Policy Rate

• Sovereign Credit Rating

• Currency Rates

BCM HIGHLIGHT

ANNUAL INVESTMENT MEETING 2023 (AIM), 8-10 MAY 2023 AT ADNEC IN ABU DHABI, UNITED ARAB EMIRATES



Dear BCM members and partners, 

We’re delighted to announce that the Business Council of Mongolia (BCM) is a supporting partner at The Annual Investment Meeting 2023 (AIM), which will take place 8 – 10 May 2023 at ADNEC in Abu Dhabi, United Arab Emirates. 
 
We’re excited about the opportunities this partnership will bring and look forward to working together to make a positive impact on the global investment landscape. 
 
Don't miss out on this opportunity to network with industry leaders! 

Register Now
 

About AIM Global 

The Annual Investment Meeting has established itself as a leading investment platform in the Middle East, aspiring to ignite positive transformation by creating investment opportunities, upholding solidarity, and developing economic relations among nations, as well as addressing the global ordeals that will make a profound impact on global economic growth. 

To register for the AIM Global 2023, please visit https://www.aimcongress.com/. We encourage you to take advantage of this opportunity to stay informed and connected with the latest updates in investment opportunities. 

Join us at AIM Global 2023 as we unveil new windows of opportunities for economic growth, welfare and progress!

           Download Brochure                                         AIM Agenda 2023


This email address is being protected from spambots. You need JavaScript enabled to view it. | www.aimcongress.com | #AIMGlobal |         
 

BCM NEWSWIRE SURVEY

Dear valued members,
 
The Business Council of Mongolia sincerely appreciates its members and always tries to progressively improve the services it provides. With that being said, we would appreciate it dearly if you could kindly take 2-3 minutes of your day to fill out the following survey on our Weekly Friday Newswire. We would like to receive your feedback to ameliorate the content of our newswire. 
 
Please find the questionnaire here. 
 
Thank you in advance for your kind participation. Your contribution is highly valuable to us. 

ECONOMY

MONGOLIA TO PRESENT CRITICAL MINERALS PROJECT AT PDAC 2023

The world’s largest mining event is set to take place in Toronto, Canada. In the 91st Prospectors and Developers Association of Canada (PDAC) conference, Mongolia will participate with a larger delegation than usual, consisting of approximately 50 representatives, led by the Minister of Mining and Heavy Industry, parliament members, state-owned enterprises, and project implementers. Mongolia has established a tradition of participating in the PDAC conference and organizing the Mongolia@PDAC event.
This year, the Mongolia@PDAC event will take place during the PDAC conference as usual to introduce Mongolia’s mining sector to investors, highlight recent changes and developments in the sector, and provide information on new projects. “Compared to past events, Mongolia has several updates to offer to investors.
The Oyu Tolgoi underground mine, the country’s largest foreign-invested project, is moving to sustainable operations in March as announced by Rio Tinto Group. The government of Mongolia successfully negotiated with Rio Tinto over the last year, resulting in the underground mine becoming operational.

Source: Mining Insight

MOODY'S AFFIRMS MONGOLIA'S B3 RATING, MAINTAINS STABLE OUTLOOK

Moody's Investors Service has today affirmed the Government of Mongolia's long-term B3 issuer and foreign currency senior unsecured bond ratings and maintained the stable outlook. The short-term issuer ratings are affirmed at Not Prime.
Mongolia's B3 rating balances elevated liquidity and external risks against strong growth prospects, as well as a debt repayment profile that has settled at more sustainable levels compared to the past. Following a recent sovereign debt refinancing transaction, Mongolia's financing needs for the next few years have diminished to more manageable, albeit still high, levels. Moreover, the recent relaxation in China's COVID policies, coupled with continued progress on Mongolia's infrastructure and logistics networks and the development of major mining projects will support a gradual recovery in foreign currency revenue and allow GDP growth to rise to potential rates over the next few years. At B3, the credit profile also incorporates institutional weaknesses and a lack of economic diversity that raises volatility in growth and fiscal outcomes.

Source: Moody's

MONGOLIA JAN COAL EXPORTS RETREAT 22.9 PCT MOM

Mongolia's coal exports came in at 3.53 million tonnes in January 2023, up 2.91 million tonnes or 466.78% year on year but declining 1.05 million tonnes or 22.85% from the preceding month, showed data from the Mongolian Customs General Administration (MCGA).
In January, the export amounts totaled $565 million, with the average price calculated at $160.00/t, down $70.47/t year on year and $5.13/t month on month.
Mongolia exported 3.47 million tonnes of coal to China in January, soaring 497.74% year on year and falling 21.32% from a month ago, taking up 98% of the total.
The China-bound shipments were worth $553 million, with an average price of $159.63/t, down $70.82/t and $4.61/t respectively from a year ago and the preceding month.
Mongolia's exports of bituminous coal rose 464.24% year on year yet fell 22.81% from a month ago to 3.48 million tonnes in January.

Source: sxcoal.com

ACROSS CHINA: BOOMING BUSINESS RETURNS TO CHINA-MONGOLIA BORDER AREAS

With unbridled excitement, Ulantuya, who hails from Mongolia, indulged in a shopping spree at a bustling mall in Erenhot, a major city on the China-Mongolia border.
"There is a great variety of products here. I will surely take many of them home," said Ulantuya, surrounded by a swarm of Mongolian merchants and customers.
Border cities like Erenhot have seen booming business and greater people-to-people exchanges since cross-border travel resumed between China and its neighbors on Jan. 8, as part of the country's optimized COVID-19 response.
Zhang Yuan, who has been running a leather goods shop at the mall for 12 years, was delighted to have Mongolian merchants back. "As I reconnected with old friends, warm greetings were exchanged, and our handshakes lingered just a tad longer than usual," Zhang said.
Statistics from the commerce department of China's Inner Mongolia Autonomous Region showed the Erenhot highway port has recorded a daily average of about 600 passenger trips since Jan. 8.

Source: Xinhua
See also: Zamiin-Uud port renovated and passengers traffic increased by 7 times

SOME BANKS ARE NOT DEALING WITH USD

Some people reported that banks are not trading USD, and limits on spending from currency accounts have been set on accounts of citizens and enterprises. In clarifying this, the Trade and Development Bank mentioned that they are not trading in USD in all branches. Also, the service worker said that the maximum spending limit for the currency account is 50 million MNT, and the number of USD to be withdrawn must be declared one day in advance. However, Khan Bank and Golomt Bank did not limit the trading of MNT into USD. In addition, they said, when receiving USD equivalent to more than 50 million MNT, it must be reported one day in advance. A currency dealer said that as of Wednesday, there was no shortage of USD at the “Naiman Sharga” currency trading market, and it was trading normally. Moreover, from the beginning of 2023 until the 7th of this month, the Mongol Bank supplied 325 million USD in foreign currency auctions.

Source: The UB Post

MONGOLIAN IRON ORE EXPORTS SURGE 757 PCT IN JAN Y/Y

Mongolia exported 360,600 tonnes of iron ore in January 2023, surging 757.86% or 318,500 tonnes from a year ago, showed latest data from the Mongolian Customs General Administration (MCGA).
The exports were also 4.90% or 16,800 tonnes higher compared with December 2022.
The total export value climbed 776.30% on the year and 22.38% month on month to $25.92 million in January, data showed.
Mongolia's iron ore exports were 4.73 million tonnes in 2022, down 33.41% year on year. Export amounts were $391.05 million, down 58.93% from a year ago, data showed.

Source: sxcoal.com

NO CAR PLATE RESTRICTION DURING TSAGAAN SAR HOLIDAY

A traffic control center has provided information on the road conditions during Tsagaan Sar Holiday /Lunar New Year/.
On January 21, road organizations were made in Dunjingarav, Zaisan and the northern intersection of the University of Agriculture. As a result, citizens are able to drive with constant speed.
During Tsagaan Sar, February 21-23, car license plate restrictions will not apply. Plate restrictions apply on Monday and Friday.
Experts believe it is possible to manage traffic this year without license plate restrictions. Traffic loads are balanced these days. In some areas, the roads are loaded due to nearby markets and malls.

Source: GoGo News

THE NEED FOR DISASTER PREPAREDNESS AND RESPONSE IS CONTINUOUSLY INCREASING

Disasters and crises caused by global warming and environmental problems have had a negative impact on people's well-being and living conditions. In recent years, the people of Ulaanbaatar city and rural areas have faced difficulties due to the disasters such as the COVID-19 pandemic and dzud. Regarding this matter, the Mongolian Red Cross Society (MRCS) has played an auxiliary role to the Government of Mongolia in disaster risk reduction and disaster preparedness, and response measures in Mongolia.
IRIM has implemented a mid-term review of the implementation of this five-year program in Mongolia within three months and developed evidence-based recommendations.
The results of the review show that the strong leadership, management, and effective operations of the MRCS make them trustworthy and strong partner for their domestic and international partners and stakeholders. However, since the organization is heavily dependent on international funding, they need to focus on raising donations and fundings from local entities and individuals by increasing nationwide awareness of the organization.

Source: IRIM

WORLD EXPORT DEVELOPMENT FORUM 2023 TO SPOTLIGHT GREEN, DIGITAL TRADE

The flagship event of the International Trade Centre (ITC), to be hosted this year by the Government of Mongolia, takes place on 26-29 June 2023 in Ulaanbaatar, Mongolia.
(Geneva/Ulaanbaatar) – Invest in diversifying sectors and markets through green and digital trade - that is the focus of the 2023 edition of the World Export Development Forum (WEDF), the flagship event of the Geneva-based International Trade Centre (ITC).
ITC is the joint agency of the United Nations and the World Trade Organization and focuses on connecting small businesses to global markets. In Mongolia, the Ministry of Economy and Development, the Ministry of Foreign Affairs and the Office of the President are leading the Mongolian Task Force for this event. The United Nations Country Team of Mongolia is also a partner on this event.
This year’s conference, under the theme ‘Diversify with Green Trade’, explores organic, digital and sustainable solutions to multiple crises.

Source: UN Mongolia, Montsame

‘DONATING GERS TO TURKEY AND SYRIA WILL BE A GREAT SUPPORT’

February 13, information was provided about Mongolians collecting donations to send aid to Turkey and Syria. The organizers of the donation campaign said, “Donating gers to Turkey and Syria, where natural disasters have occurred, will be appropriate support of the Mongolian people. Instead of collecting various products, we need to focus on donating and transporting gers. Many organizations are joining us and donating. Many organizations, including our One Team NGO, are cooperating. We are organizing a donation campaign because we live in the same world regardless of territory, religion, and state. This donation campaign will be held from February 12 to 19.”
Campaign organizers then continued, “A ger manufacturing companies, district enterprises, and business organizations are donating gers. On the last day of the donation, the Ambassador of Turkey will be invited to the Sukhbaatar Square and we will give the donation. Right now, 17 gers have been built on the Sukhbaatar Square…

Source: The UB Post
See also: 35 gers and 15 tents donated to the people of Türkiye
Mongolian Rescue Team Saves Five People

THE BANK OF MONGOLIA INTRODUCES NEW BANKNOTES SAFETY APPLICATION

The Bank of Mongolia launched a new smartphone application to prevent forgery of national currency banknotes and to provide awareness and information to citizens and children. The easy-to-use application, which includes Mongolian and English versions, can be downloaded from iOS and Android operating systems, and includes interesting cognitive information about security elements of the banknotes.
There are three sections where you learn, put what you learn to use, and test your knowledge. When using this cognitive app, you can tilt your phone from side to side, move it up and down against the light and use the UV light on screen to see, recognize and learn about security elements in an interesting way.
In recent years, the Bank of Mongolia has improved its security elements using the highest technology in order to prevent counterfeiting of currency notes and to distinguish them. Thus, the application provides the public with the necessary information on the various elements of the banknote.

Source: Bank of Mongolia

MONGOLIA WALKED ONE STEP BACK FROM ADVANCING CASHMERE INDUSTRY DEVELOPMENT - EDITORIAL

Our country is a major player that produces about 10,000 tons of cashmere per year and supplies about 48 percent of the raw cashmere in the world market. However, preparing raw materials is one thing, offering ready-made products made from raw materials, and comprehensively developing the cashew industry is another matter. Specifically, if 10,000 tons of cashmere are sold at 100,000 MNT per kg per year, the herdsmen earn about one trillion MNT. On the other hand, the Ministry of Food, Agriculture and Light Industry (MFALI) reported that the export of washed, combed, and cashmere products will earn about 445 million USD or 1.5 trillion MNT at the current exchange rate in 2022. About 80 percent of it was made from the sale of washed cashmere, 10 percent from combed cashmere, and the rest was found in final products. It is estimated that the world’s cashmere clothing market is worth about 2.5 billion USD a year.

Source: The UB Post

THE IMPACTS OF MINING ON SOIL POLLUTION WITH METAL(LOID)S IN RESOURCE-RICH MONGOLIA - PAPER

As Mongolia is considered one of the most resource extraction-dependent countries globally, significant mining-related environmental and human health risks are expected. The aim of this study was to (I) assess the impacts of mining on soil pollution with metals in Mongolia's key coal mining towns (Baganuur, Nalaikh and Sharyn Gol) and (II) review the current knowledge on soil pollution with metal(loid)s and related health risks in Mongolia. The results showed predominantly low soil contents of Cd, Cu, Pb and Zn and a related absence of severe pollution and potential health risk in the coal mining towns. Urban design, rather than the presence of mines, controlled the pollution distribution. Despite the methodological shortcomings of several studies on soil pollution in Mongolia, their results suggest a similarly low threat in the three largest cities (Ulaanbaatar, Darkhan, Erdenet) and several mining areas.

Source: Nature

MONGOLIA IS AN EMERGING ECONOMIC PLAYER WITH ENORMOUS POTENTIAL FOR UK BUSINESSES - EDITORIAL

Ask a friend to summon Mongolia to mind and it is likely that the vast plain of the central Asian steppe will be the image that appears, perhaps populated by traditional, nomadic people living in sturdy tents (known as gers) that have not changed in hundreds of years. A land of wide open spaces, natural beauty and isolation far from the concerns of modern economies.
Your friend would be partly right. Mongolia is the least densely-populated sovereign nation, with just six people per square mile. Its 3.3 million people are spread across the 18th-largest country in the world, with roughly half of them in the central capital, Ulaanbaatar. Nearly a third of the population still lives a nomadic or semi-nomadic lifestyle. But since it was called out as a ‘global growth generator’ in a 2011 report by Citibank economists, the eyes of the world have been on Mongolia as a largely untapped, emerging economic power with enormous potential.

Source: The Telegraph

POLITICS

S. KOREAN, MONGOLIAN PMS HOLD TALKS ON RARE EARTHS, INFRASTRUCTURE

South Korean Prime Minister Han Duck-soo and Mongolian Prime Minister Luvsannamsrai Oyun-Erdene held talks on Wednesday and agreed to boost cooperation in rare earth minerals, infrastructure development and climate change responses.
Luvsannamsrai, who is on a five-day official visit to South Korea, also threw Mongolia's official support behind Seoul's bid to bring the 2030 World Expo to the southeastern port city of Busan, Han's office said in a statement.
During the talks, Han told Luvsannamsrai that South Korea and Mongolia are "strategic partners who share universal values and have mutually complementary advantages in many areas."
"We expect to actively discover and promote cooperative measures in areas such as climate change response and infrastructure development," Han said.
Luvsannamsrai told Han that "Mongolian people highly appreciate that Korean people contribute greatly to all changes in Mongolian society."
Under a preliminary agreement signed after the talks, South Korea and Mongolia will hold an annual meeting on rare earth minerals and other rare metals.

Source: Yonhap News Agency, Montsame, The Korea Times
See also: Korea, Mongolia pledge rare earths cooperation
KT, Mongolia to bolster ties on resource development, IT
Mongolia-Korea Business Forum was Held
Mongolia endorses S. Korea's World Expo bid
Minister of Foreign Affairs Meets her Korean Counterpart
Prime Minister’s Visit: Official Documents Signed During the Visit
The Program "Welcome to Mongolia" Announced in South Korea
Mongolia and Korea to Cooperate in Combatting Corruption

MONGOLIA TO HOLD ONLINE DISCUSSION FOR COAL EXPORT TRADE ON FEB 27

Mongolian authorities are planning to hold a discussion on online trading for coal export on February 27, in order to help better understand details of coal auction process launched early this month.
The meeting, initiated by the Ministry of Mining and Heavy Industry of Mongolia, is also supported by the Ministry of Economy and Development, Mongolian Stock Exchange, Erdenes Tavantolgoi JSC, Energy Resource LLC and Tavantolgoi company.
During the discussion, participants will be introduced to the rules and instructions related to stock exchange and coal trading, and detailed information how to participate auction, how to enter into contracts, payments and provided with the knowledge to use the trading system correctly, according to a document released by the Ministry of Mining and Heavy Industry.
Check more details on the Agenda.
If you are interested in the meeting, Click HERE for registration.

Source: sxcoal.com

WE ARE AWAITING WHAT POLITICAL AND SOCIAL QUESTIONS WILL BE ANSWERED BY THE RECOMMENDATIONS OF THE DELIBERATIVE POLLING

807 people from all over Mongolia gathered at the State Palace to participate in the “Deliberate and Resolve” Deliberative Polling.
To have been chosen as a citizen of Mongolia and not because of differences such as knowledge or education, age, gender, occupation, is something to be proud of and considered lucky. Respondents discussed state affairs. There weren’t any interruptions or any gaps during the polling. Each and every respondent gathered on time and freely expressed their opinions and thoughts.
The Demographic of Repondents
Out of the 801 respondents of the Stage 2 of the Deliberative polling were composed of 374 people from Ulaanbaatar and 247 people from the aimags.
Gender: 54 percent of respondents were female, with 46 percent being male.
Age: In terms of age, the average was 37, the youngest 20, and the most senior 89 years of age. Respondents aged 20-29 made up 12.5 percent of all respondents.
…

Source: Parliament.mn
See also: Commencement of the Deliberative Meetings
"National Deliberative Polling - Stage 2" Programme (2023.02.14-02.15)

SAINSHAND INDUSTRIAL COMPLEX WAS INEFFECTIVE, EXPERT CONCLUDES

Source: The UB Post

UB MAYOR WORKING IN TIANJIN

Source: The UB Post
See also: Ulaanbaatar and Tianjin to cooperate in education, trade and business
Conference held to support investment and economic cooperation between Ulaanbaatar and Chongqing
Discussion took place on purchasing LRT from Chongqing at factory price
Experience of Chongqing city traffic control and regulation management studied

DIRECT FLIGHTS TO BE CARRIED OUT WITH QATAR

Source: The UB Post

MONGOLIA SEEKS FOREIGN HELP TO PRODUCE MINERALS USED FOR EVS - EDITORIAL

Source: Nikkei Asia

DEFACTO REVIEW, FEB. 12 - VIDEO

Source: Jargal Defacto

LAWS WORK ONLY ON PAPER AND CHILDREN ARE PAYING FOR IT - EDITORIAL

Source: The UB Post

B.PUREVSUREN: THERE IS NO REGULATION THAT INFORMATION MUST BE GIVEN WITH THE APPROVAL OF THE DIRECTOR - INTERVIEW

Source: The UB Post

BUSINESS

PARABELLUM DELIVERS MAIDEN MONGOLIAN REE RESOURCE

Source: MiningNews.net, Proactive Investors
See also: With tonnes of REEs in Mongolia, here are the next steps for Parabellum

CHINA’S TOP COAL SUPPLIER MONGOLIA SWITCHES TO AUCTIONS TO FETCH TOP DOLLAR FROM ITS EXPORTS

Source: South China Morning Post

FRC: INSURANCE COMPANIES NOW ABLE TO ISSUE MNT 70 BILLION GUARANTEES

Source: FRC

50 TO 60 PERCENT OF COAL PLANNED TO BE TRADED THROUGH STOCK EXCHANGE BY 2024

Source: The UB Post

LEHMANLAW: OBTAINING INVESTMENT VISAS IN MONGOLIA

Source: LehmanLaw Mongolia

MIAT MONGOLIAN AIRLINES MOVING CLOSER TO LAUNCHING US PASSENGER FLIGHTS

Source: SimpleFlying.com

TALON ENERGY FARM-IN PARTNER TMK ENERGY SECURES DRILL RIG FOR PILOT WELL PROGRAM IN MONGOLIA

Source: Proactive Investors, The Market Herald

PETRO MATAD BEMOANS SLOWER THAN ANTICIPATED CERTIFICATION OF BLOCK XX

Source: Morningstar.co.uk, ShareCast.com
See also: Mongolian oil developer Petro Matad raises $6.6M to fund 2023 activities: we speak to CEO Mike Buck
Why Petro Matad shares plunged 11% on operations update
 

"ENERGY RESOURCES" LLC’S COAL TRADE ORGANIZED 

Source: MSE
See also: Mongolian miner Energy Resources' coal auction closed 11.66% higher
"Erdenes Tavantolgoi" JSC's second coal trade organized successfully

XANADU ON THE EDGE OF NEW COPPER-GOLD FRONTIER IN MONGOLIA

Source: The West Australian

SINOMINE TO BUY MAJORITY STAKE IN MONGOLIAN LITHIUM ORE PROJECT FOR USD20 MILLION

Source: YiCaiGlobal.com

MSE-LISTED COMPANIES ANNOUNCE DIVIDENDS

Source: MSE

B. DULGUUN: ELECTRONIC COAL TRADING IS PILOTED SUCCESSFULLY - INTERVIEW

Source: Mongolian Mining Journal

GLOBAL AND REGIONAL NEWS

MAERSK, A GLOBAL BAROMETER FOR TRADE, POSTS RECORD 2022 EARNINGS BUT WARNS OF A TOUGH YEAR AHEAD

Source: CNBC

GLOBAL REPORTING INITIATIVE PRESENTS SUSTAINABILITY REPORTING STANDARD FOR MINING COMPANIES

Source: Mining.com

UK INFLATION RATE DIPS FOR THIRD STRAIGHT MONTH TO HIT 10.1 PCT

Source: CNBC

COPPER EXPLORATION BUDGETS JUMP, BUT MAJOR DISCOVERIES ELUSIVE

Source: Mining.com
See also: Analysts see short-term strength, long-term ‘generational shift’ in copper prices

JAPAN GDP UP 0.6 PCT IN OCT.-DEC. ON PENT-UP DEMAND BUT INFLATION BITES

Source: Kyodo News
See also: Japan's weak Q4 GDP rebound poses challenge for BOJ's exit path
Japan’s next central bank governor is set to be Kazuo Ueda. Here’s what it means

OIL AND GAS INDUSTRY EARNED USD 4 TRILLION LAST YEAR, SAYS IEA CHIEF

Source: Reuters

GOLD MINERS MAY SEE MARGINS SHINE AS ENERGY, LABOR COSTS EDGE LOWER

Source: Reuters

SINGAPORE DOWNGRADES Q4 GDP, KEEPS 2023 FORECAST

Source: Reuters, CNBC

GUYANA TO COMPLETE NEW OIL CONTRACT MODEL BY Q2 AS AUCTION LOOMS

Source: Reuters

INDIA'S RISE IS BEYOND DOUBT - EDITORIAL

Source: Nikkei Asia

BCM SUBMITS POLICY PAPER

The Business Council of Mongolia (BCM) Secretariat has submitted a Policy Paper to the Government of Mongolia on 13 October 2022.

BCM Secretariat has submitted summary of issues and proposed solutions on newly adopted Corporate Income Tax law drafted by the Chair and Vice-Chairs of the Tax & Regulatory Working group (lead by Ms. Kh.Amarjargal, Country Director Mongolia-Rio Tinto, Mr.B.Battushig - Founding Partner of DB&GTS LLP and Mr.R.Khishignemekh -Senior Partner of Ernest and Young TMZ).

The 42 pages of findings and recommendations was submitted to the Cabinet Secretariat of the Government of Mongolia, to the Minister of Finance, to the Minister of Mining and Heavy Industry; to Secretariat of the State Great Khural (Parliament);  Standing Committee on the Economic Affairs; Ministry of Justice and Internal Affairs; Standing Committee on the Budget; Economy and Development Ministry. In collaboration with Mongolian National Chamber of Commerce and Industry, American Chamber of Commerce in Mongolia, Ulaanbaatar Chamber of Commerce and Mongolian National Association.                                        

BCM would like to thank Mongolian National Chamber of Commerce and Industry, American Chamber of Commerce in Mongolia, Ulaanbaatar Chamber of Commerce and Mongolian National Mining Association and BCM Regulatory & Tax Working Group for their efforts to protect legal interests and rights of business entities in Mongolia.

Source: BCM

THE BCM APPOINTS RAPHAËL GOUÉ AS OFFICIAL BCM REPRESENTATIVE IN EUROPE

The Business Council of Mongolia is pleased to announce Mr. Raphaël Goué as an official BCM Representative in Europe.

Raphaël Goué is an expert in energy and banking, having spent more than 12 years in Asia as well as being involved in Europe-Asia cross-border projects since the mid-90s, with a focus on financial services, energy and telecommunications.

Mr. Goué has a wealth of experience in supporting global financial institutions and energy companies in their strategies in Asia, as well their development and M&A. He has previously held various positions in organizations such as Société Générale, Vivendi Universal, Booz & Co and Capital One in Europe, Africa and Asia. As a senior advisor of the global retail banking association EFMA, Raphaël has been supporting the development of banking’s leading association in selected Asian markets, and supporting EFMA in the fintech sector in Europe.

He holds an engineering degree from the École Nationale Supérieure de Géologie in Nancy, France, a master in material science from École de Mines de Nancy, and a MBA from HEC (Paris) he finalized at the Columbia Business School (New York).

The BCM is looking forward to expanding its reach to Europe with Mr. Goué’s leadership and assistance.

SDG INVESTOR MAPPING PROJECT SURVEY - IDENTIFYING BUSINESS CASES FOR INVESTMENT OPPORTUNITIES

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UNICEF: GUIDANCE FOR EMPLOYERS ON FLEXIBLE WORK ARRANGEMENTS AND OTHER GOOD WORKPLACE PRACTICES IN THE CONTEXT OF COVID-19

ECONOMIC INDICATORS

HISTORIC ANNUAL INFLATION

CENTRAL BANK POLICY LOAN RATE

SOVEREIGN CREDIT RATING

CURRENCY RATES –  16 February 2023

 
NewsWire

Issue 765 –  13 January 2023

BCM NewsWire provides short summaries of news collected from around the world. Each article is kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full article.

Economy

• Largest China-Mongolia land port resumes passenger services
• Annual inflation stands at 13.2 pct in December
• B.Javkhlan: Foreign debt balance reduced to 56.6 pct of GDP
• Higher coal cost expected as Mongolia wants to dial up export prices
• Mongolia exports over 16,000 tons of meat, meat products in 2022
• Introducing the calendar of tourism, culture and sports events to be organized in 2023
• Mongolia received 290,400 foreign visitors in 2022
• Eighty Percent of Public Transport Fleet to be Renovated This Year
• FRC signs memorandum of cooperation with the Mongolian Joint Association of Exchanges
• Tourism Events to be Held in Bayan-Ulgii Aimag in 2023
• Airfare of winter schedule for tourists to be 50 pct off - Interview

• Gov’t issues USD 650 million bond
• The largest Cabinet in history set up
• Police raid on home of Mongolian rail official said to discover USD 2mn of cash in four currencies
• 300 people including the President and former PM to be called as witnesses at open hearing of Development Bank
• Resolution to establish city in the Orkhon valley approved
• Direct flights between Mongolia and Vietnam agreed to be increased
• Financing Agreement for Smart Government II Project Signed
• B. Altangerel: Mongolia-U.S. relations signify our third neighbor policy - Interview
• Mongolia’s 2023 Outlook: The Top Trends To Watch - Editorial
• Is Mongolia ready to introduce foreign investment banks? - Editorial
• B.Battsetseg: Mongolia's reputation on global arena has notably improved - Interview
• The Ukrainian crisis as perceived by Mongolian society - Editorial
• Supporting Mongolia’s Democracy is Key to a Free and Open Asia-Pacific - Editorial
• Katie Smith: Australia sees critical minerals as one of the key economic drivers going forward - Interview

Business

• “SUU” JSC Established 12 Cooperatives for Milk Production, Providing MNT 27.8 Billion to Herders
• Mongolian Companies Supply Cashmere to Chanel and Schneiders
• Erdene announces strategic alliance with Mongolian Mining Corporation
• Comprehensive assessment report on implementation of the Corporate Governance Code issued
• New Regulation on Non-Competition Agreements
• Test of online coal trading conducted successfully
• Aspire Mining progresses regulatory approvals for Ovoot Coking Coal Project
• “Mon Beef” JSC to change form to LLC
• Mongolia to Host Continental CS:GO Tournament
• Silver Elephant Delivers Additional 6,600 Tonnes of Coal to China from its Ulaan Ovoo Mine in Mongolia
• ION Energy to Present at Future Minerals Forum in Saudi Arabia
• Steppe Gold production remains steady as company releases Q4 Operations Update - Video

Global and Regional Trends

• China resuming coal trade with Australia after three-year halt
• India tops Japan to become world's No. 3 auto market
• Global foreign reserves dwindle as countries counter dollar's rise
• Surging molybdenum price adds weight to new year rally for copper producers
• Gold hovers near USD 1,900/oz after U.S. inflation data cements Fed slowdown bets
• World Bank makes big cut to its 2023 growth outlook, says globe is ‘perilously close’ to recession
• Mining investments on the rise in Peru
• U.S. natgas output to hit record high in 2023, demand to fall
• UK watchdog blocks LME plan to restart Asian hours nickel trade-sources
• Trinidad receives 16 bids for oil, gas onshore blocks

• BCM Quarterly Report for Q3'22
• BCM submits policy paper
• The BCM appoints Raphaël Goué as official BCM representative in Europe
• SDG Investor Mapping project survey - Identifying business cases for investment opportunities
• UNICEF: Guidance for employers on flexible work arrangements and other good workplace practices in the context of Covid-19
• UNICEF: Call for actions of the private sector to reduce children’s exposure to air pollution in UB
• BCM Guideline for Companies to Combat Air Pollution
• Member-to-member special offers & benefits

Economic Indicators

• Inflation
• Central Bank Policy Rate
• Sovereign Credit Rating
• Currency Rates

ECONOMY

LARGEST CHINA-MONGOLIA LAND PORT RESUMES PASSENGER SERVICES

The land port of Erenhot on China's border with Mongolia saw cross-border passenger traffic on Sunday, three years after the port in north China's Inner Mongolia Autonomous Region suspended services due to COVID-19 epidemic control measures.
About 45 passengers arrived at the Erenhot port on a shuttle bus on Sunday.
Erenhot is the largest land port on the China-Mongolia border and a crucial entry and exit port for one of the China-Europe freight train routes.
With the port resuming full operations without COVID restrictions, many are expecting substantial growth in both cargo and passenger volume.

Source: ecns.cn
See also: Border ports in full swing as COVID restrictions are lifted
Guidelines Issued for Citizens Traveling to China
Newly Renovated Border Checkpoint in Zamiin-Uud Opens

ANNUAL INFLATION STANDS AT 13.2 PCT IN DECEMBER

The annual inflation rate for Mongolia rose by 13.2 percent year on year in December, data by the country's National Statistics Office (NSO) showed on Friday.
The increase was mainly due to the higher prices for imported goods, the NSO said.
However, the index decreased by 1.3 percent from a month earlier, it said.
There are 410 items in the landlocked Asian country's consumer goods and services basket, with more than half of them being imported, according to the statistical agency.
The country has set a goal of reducing its inflation rate back to single-digit levels by the end of 2023.

Source: Xinhua

B.JAVKHLAN: FOREIGN DEBT BALANCE REDUCED TO 56.6 PCT OF GDP

B.Javkhlan, the Minister of Finance gave the following information.
The Law on Budget Savings was approved in May, 2022 which is very effective. MNT 189.1 billion was saved from current budget expenses. Also, MNT 29.5 billion was saved through direct bidding. Therefore, a total of MNT 218.6 billion was saved in 2022.
Foreign debt indicators are positive. In 2022, the final balance of the Chinggis bond, which is USD 136.8 million, was paid directly from the State budget on December 5, 2022, paying-off the loan taken in 2010.
At the end of 2023, the debt balance, which was expected to reach 70% of GDP, was reduced to 56.6%. The government's next strategy is to not increase the debt further.

Source: GoGo News

HIGHER COAL COST EXPECTED AS MONGOLIA WANTS TO DIAL UP EXPORT PRICES

Mongolia's reported move to modify how its coal exports to China are priced may mean higher costs for Chinese users, and Chinese industry experts said that efforts by Mongolia to change the ecosystem of cross-border coal trade may affect the outlook for Mongolian energy export to China.
Chinese coal traders at the China-Mongolia border said they had heard about the intention of the Mongolian side to sell coal at ex-border prices instead of mine-mouth prices starting from February 1, citing an executive of Erdenes Tavan Tolgoi (ETT) JSC. Tavan Tolgoi is a massive coal mine in Mongolia about 200 kilometers from the Chinese border.
Li Xiang, a representative of Mengtong International Logistics Agency in North China's Inner Mongolia Autonomous Region, told the Global Times on Monday that the move may reflect ETT's goal of increasing revenue by changing the pricing.

Source: GlobalTimes.cn

MONGOLIA EXPORTS OVER 16,000 TONS OF MEAT, MEAT PRODUCTS IN 2022

Mongolia exported 16,100 tons of meat and meat products in 2022, the country's Ministry of Food, Agriculture and Light Industry said Wednesday.
The majority of the exports were meats of horse, sheep and goat, it said in a statement.
Mongolia currently exports meat and meat products to 11 countries, including China, Russia, Kazakhstan, Uzbekistan, Qatar and Vietnam.
The Asian country resumed the export of live livestock in October 2022. By the end of last year, the country exported a total of 28,503 heads of live livestock, mainly sheep, according to the ministry.
According to its National Statistics Office, Mongolia, one of the last nomadic countries in the world, had 71.1 million livestock animals at the end of 2022.
Promoting livestock husbandry is one of the most viable solutions to diversify the landlocked country's mining-dependent economy.

Source: Xinhua
See also: 70 million livestock of 200,000 herders counted

INTRODUCING THE CALENDAR OF TOURISM, CULTURE AND SPORTS EVENTS TO BE ORGANIZED IN 2023

The Government of Mongolia announced 2023-2025 as the year of "Welcome to Mongolia".
The government and private sector, tourism, hospitality industry, professional organizations exchanged opinions and developed a calendar of international events to be held in Mongolia in 2023. The calendar includes 22 events aimed to promoting Mongolia abroad, reviving the tourism industry, improving the economy, and increasing investment.

Source: VisitUlaanbaatar.net

MONGOLIA RECEIVED 290,400 FOREIGN VISITORS IN 2022

Mongolia welcomed a total of 290,400 foreign visitors in 2022, earning $350 million from the Covid-hit tourism sector, the Ministry of Environment and Tourism said on Tuesday.
Due to the Covid-19 pandemic, the number of foreign visitor arrivals in Mongolia declined to only 33,000 in 2021, Xinhua news agency quoted the Ministry as saying.
Mongolia has been taking various measures to promote the pandemic-hit tourism sector.
Particularly, the government recently made a decision to exempt citizens of 34 countries from visa requirements for up to 30 days until the end of 2025.
The country has also declared 2023 and 2024 as "Years to Visit Mongolia", and is expected to organise more than 90 events in 2023 to promote the ector.
The country has set a goal of welcoming at least 1 million foreign tourists and earning $1 billion from tourism in 2024.

Source: DaijiWorld.com

EIGHTY PERCENT OF PUBLIC TRANSPORT FLEET TO BE RENOVATED THIS YEAR

Ulaanbaatar Public Transportation will be upgraded with the addition of 384 new buses this year.
The Spokesperson of the Office of the Governor of the Capital City, N. Sugar, said, "224 buses will be purchased initially. Right now 100 of them are at the border checkpoint of Erlian city of China and they will arrive in Ulaanbaatar on January 10, which is going to be in service on January 15. The remaining 124 buses will be brought to Ulaanbaatar in February".
Over MNT 340 billion is planned in this year’s state budget to renovate the public transport fleet. In 2022-2023, over 856 buses and trolleybuses will be out of service. Therefore, the Citizens’ Representative Khural of the capital city is aiming to complete 80 percent of the public transport renovation with the support of the government, and the works are underway.
100 buses were brought last year and 50 of them are in school services.

Source: Montsame

FRC SIGNS MEMORANDUM OF COOPERATION WITH THE MONGOLIAN JOINT ASSOCIATION OF EXCHANGES

The FRC signed a memorandum of cooperation with the the Mongolian Joint Association of Exchanges. The sigining ceremony was attended by: N. Khuderchuluun (Vice Chairman, FRC), T. Jambaajamt (Chief Executive, FRC), B. Dolgorjav (Director,  Supervision Department), S. Nyamgerel (CEO, the Mongolian Joint Association of Exchanges), Ch.Ganbaatar (CEO, Complex Digital Ecosystem Ltd), and B. Erdenejargal (CEO, Digital Exchange Mongolia Ltd.
N. Khuderchuluun stated “In connection with the creation of a legal framework for registration and supervision of legal entities providing services in the field of virtual assets in Mongolia, the Financial Regulatory Commission has registered virtual asset service providers. In this regard, I would like to thank the Association for its contributions to professional advice and its recommendations in drafting the Law on Virtual Asset Service Providers (and eight regulations concerning more than 10 related relationships).

Source: FRC

TOURISM EVENTS TO BE HELD IN BAYAN-ULGII AIMAG IN 2023

We’re highlighting the most well-known activities and festivals in westernmost Bayan-Ulgii aimag, where Mongolian ethnic minorities such as Kazakh, Tuva, Dörbet, Oirat, and Uriankhai reside.
1.    Golden Eagle Festival
2.    Ice Festival
3.    Nowruz
4.    Uriankhai archery on ice
5.    “Altai Eagle” and “Nowruz Eagle”  festival
6.    “Hansonar Eagle” festival

Source: Montsame

AIRFARE OF WINTER SCHEDULE FOR TOURISTS TO BE 50 PCT OFF - INTERVIEW

On January 11, MIAT State Owned Enterprise introduced the "Special Tariff to Support Tourism" and signed a memorandum with the Mongolian Tourism Association with the purpose of improving the cooperation condition between tourism and air transport.
B.Munkhtamir, Executive Director of MIAT Mongolian Airlines, was interviewed related to this. 
-Please give us details about the special tariff that is being discussed as the main topic.
-There is a space for tourism development except for peak summer months which are June, July and August. Tourists travel a lot during summer months in Mongolia. During summer, the workload of airline companies is the highest. Related to this, we are making a special tariff for tourism.
In particular, we are preparing a winter time schedule for tourists coming to Mongolia. In the framework of the government's policy, tourists who will participate in the events organized throughout 2023 will have flights with discounted prices.

Source: GoGo News

POLITICS

GOV’T ISSUES USD 650 MILLION BOND

At the Cabinet meeting held yesterday, Minister of Finance B. Javkhlan informed that a new five-year USD bond was successfully issued and traded to refinance the “Gerege” and “Khuraldai” bonds.
“Thanks to the many months of efforts and preparations, we received orders worth USD 4 billion from 138 investors within one day. As a result, we managed to decrease the 11-12 percent interest rates of “Gerege” and “Khuraldai” bonds, which amounted to USD 650 million, to 8 percent.” continued Finance Minister B. Javkhlan.
When the interest rate of the U.S. Federal Reserve was 1 percent, the Gerege and Khuraldai bonds were issued with interest rates of 5.7 percent and 8.75 percent, respectively. Whereas today, the interest rate of the Federal Reserve is 4.3 percent, and we have issued our bond with an interest rate of 8.65%.

Source: Montsame
See also: Fitch Assigns Mongolia's Proposed USD Bonds 'B' Rating
Gov’t: Mongolia becomes the first single-B rated issuer from Asia-Pacific to successfully enter the international debt markets in 2023

THE LARGEST CABINET IN HISTORY SET UP

Last week, Prime Minister L.Oyun-Erdene issued an ordinance on appointing Ch.Khurelbaatar as deputy prime minister and minister of economy and development, lawmaker S.Chinzorig as minister of health, member of Parliament Kh.Bulgantuya as head of the State Committee for Port Revitalization (minister) and parliamentarian Ts.Davaasuren as minister of construction and urban development.
With the new appointments, this is now the largest Cabinet in Mongolia’s history with 22 members. The newly appointed ministers took their oaths in Parliament in accordance with Article 39.4 of the Constitution and Article 23.2 of the Law on the Government of Mongolia.
Prime Minister L.Oyun-Erdene remarked during the parliamentary plenary session, “I deeply believe our newly-appointed members would put painstaking efforts into successful implementation of the New Revival Policy’s goals, aimed to solve constraints on development during the difficult time when the pandemic and geopolitical crises hit the world.”

Source: The UB Post
See also: Prime Minister appoints some new members to the cabinet
Oyun-Erdene Cabinet, Version 01/2023

POLICE RAID ON HOME OF MONGOLIAN RAIL OFFICIAL SAID TO DISCOVER USD 2MN OF CASH IN FOUR CURRENCIES

Mongolian police allegedly discovered more than $2.1mn of cash in four currencies when they raided the home of S. Batdul, deputy head of the Transport Organisation Department of national rail operator Ulaanbaatar Railways (UBTZ).
Batdul remains in police custody following the January 5 raid. On January 9, a court ordered his detention for a month.
The rail official responded to the court decision on detaining him by saying that it was spurred by what the prosecution had said about him on social media.
Batdul said: "There is a process in Mongolia where people are prosecuted online without a court decision. I believe there was no need to detain me in this case. I am involved in a minor crime. There is no need to detain me. It is very irritating and I understand the court was [under pressure to make this detention].”

Source: bne IntelliNews, News.mn

300 PEOPLE INCLUDING THE PRESIDENT AND FORMER PM TO BE CALLED AS WITNESSES AT OPEN HEARING OF DEVELOPMENT BANK

B. Enkhbayar, J.Bat-Erdene, and J.Batsuuri, members of Parliament, have given information about the hearing to call witnesses of the Development Bank. 
B.Enkhbayar, the member of Parliament, said:
- By the resolution of the Parliament dated April 15, 2022, a temporary committee was established to review the implementation and results of projects and programs financed by the Development Bank of Mongolia, and the progress of loans and repayments. In the framework, the ad hoc committee organized the hearing of the General Inspection. The Ad Hoc Review Committee set the date and order of the open hearings. The open hearing will be organized with the following three steps. 

• On January 16-20, 2023, the issue of loan issuance and repayment related to 77 borrowers with MNT 3.5 billion directly financed by the Development Bank will be heard and witnesses will be questioned. And evidence will be updated. 
• …

Source: GoGo News

RESOLUTION TO ESTABLISH CITY IN THE ORKHON VALLEY APPROVED

During the Parliament meeting which was held yesterday, the first discussion of the draft resolution of the Parliament on "Establish a city in the Orkhon valley" submitted by the Government of Mongolia on January 03, 2023 was held.
J.Munkhbat, the Chairman of the Standing Committee and a member of the Parliament, presented opinions about the discussion of the draft resolution at the meeting of the 

Source: GoGo News

DIRECT FLIGHTS BETWEEN MONGOLIA AND VIETNAM AGREED TO BE INCREASED

B.Bat-Erdene, Minister of Environment and Tourism, received Zoan Han Dam, the Ambassador of Vietnam to Mongolia. During the meeting, two parties agreed to increase the number of direct flights between Mongolia and Vietnam, activate mutual promotion, and jointly organize cultural days to intensify cooperation in the tourism industry.
During the meeting, an invitation of the Asia-Pacific High Level Meeting on Air Pollution which will be held in Ulaanbaatar on March 2-3, 2023 in cooperation with the UN Economic and Social Commission for Asia and the Pacific, was handed over. This High-Level Meeting will be attended by Representatives of 53 member countries of the United Nations Economic and Social Commission for Asia and the Pacific. The meeting aims to consolidate efforts to reduce air pollution in the region and intensify cooperation in this area.
In addition, Zoan Han Dam was also invited to the "Blue Pearl" ice festival which will be held in Khuvsgul province on March 3-4, 2023.

Source: GoGo News

FINANCING AGREEMENT FOR SMART GOVERNMENT II PROJECT SIGNED

Minister of Finance B. Javkhlan and the World Bank Country Manager Andrei Mikhnev signed the Financing Agreement for the Smart Government II Project today. The project is funded with a USD 40.7 million credit from the World Bank. 
The project objectives include strengthening policies and regulations for digital transformation, upgrading the common infrastructure, and enhancing the usability and efficiency of digital public services. 
The Smart Government I Project ensured the continuity and security of digital public services while digitalizing 112 services of 12 organizations and helping citizens and businesses save MNT 48.4 billion. 
Smart Government I Project: https://www.smart.gov.mn/en/ 

Source: Montsame

B. ALTANGEREL: MONGOLIA-U.S. RELATIONS SIGNIFY OUR THIRD NEIGHBOR POLICY - INTERVIEW

In 2022, Mongolia and the United States of America celebrated the 35^th anniversary of their diplomatic relations. On the occasion of this anniversary, we interviewed the former Ambassador of Mongolia to the USA B. Altangerel.
Since the establishment of diplomatic relations between Mongolia and the USA, now the 8^th Mongolian Ambassador has been assigned to the USA. You were the sixth Ambassador who witnessed many achievements and milestones in our two countries’ bilateral relations and cooperation. How do you see our bilateral relations, especially relations in this new era?
- Of course, the relations between Mongolia and USA are not limited only to these 30 years. Rolling back the wheel of history, our relations have a long history spanning at least 130 years which is also proved by the historical and archival documents. I assume that by a new era relation, you mean the bilateral relations after establishing the diplomatic relations between Mongolia and the United States of America in 1987.

Source: Montsame

MONGOLIA’S 2023 OUTLOOK: THE TOP TRENDS TO WATCH - EDITORIAL

Amar Adiya is looking into what to expect in Mongolia in 2023 and examines the country's economic and political relationships with other nations, analyzing trends in domestic politics and the economy, and considering the potential impacts of global events on Mongolia.
What You Need To Know
Mongolia’s macroeconomic conditions have deteriorated amid the country’s ongoing monetary tightening and balance-of-payments crisis.
Foreign reserves shrunk in 2022 to the lowest level in the past five years, and the national currency lost around 20 percent of its value, with inflation at its highest level since 2009. The reserves have risen to US$3.4 billion at the end of 2022 alleviating fears of default.
Dependency on Russian gasoline imports poses a significant economic risk. Mongolia’s first oil refinery, which India is financing, is not expected to come online until 2025.

Source: Mongolia Weekly

IS MONGOLIA READY TO INTRODUCE FOREIGN INVESTMENT BANKS? - EDITORIAL

Source: The UB Post

B.BATTSETSEG: MONGOLIA'S REPUTATION ON GLOBAL ARENA HAS NOTABLY IMPROVED - INTERVIEW

Source: Montsame

THE UKRAINIAN CRISIS AS PERCEIVED BY MONGOLIAN SOCIETY - EDITORIAL

Source: New Eastern Outlook

SUPPORTING MONGOLIA’S DEMOCRACY IS KEY TO A FREE AND OPEN ASIA-PACIFIC - EDITORIAL

Source: Modern Diplomacy

KATIE SMITH: AUSTRALIA SEES CRITICAL MINERALS AS ONE OF THE KEY ECONOMIC DRIVERS GOING FORWARD - INTERVIEW

Source: Mining Insight

BUSINESS

“SUU” JSC ESTABLISHED 12 COOPERATIVES FOR MILK PRODUCTION, PROVIDING MNT 27.8 BILLION TO HERDERS

Mongolians consume three times less milk and dairy products on a daily basis than it is recommended by the World Health Organization. Therefore, increasing the consumption of milk and dairy products and opening up the opportunity for people to get adequate nutrients through their daily food is the primary goal of “SUU” JSC, Mongolia's first dairy factory.
In 2022, “SUU” JSC purchased a total of 21.2 million liters of milk from its suppliers and provided a direct income of MNT 27.8 billion. Compared with the same period of the previous year, the amount has increased by 62.3 percent. Also, 60% of the total milk bonus is given to the producers and suppliers of the company. In addition, this year, 1,380 tons of bran worth more than MNT 800 million were distributed by the company to support herders.

Source: Montsame

MONGOLIAN COMPANIES SUPPLY CASHMERE TO CHANEL AND SCHNEIDERS

The Ministry of Food, Agriculture and Light Industry informed that twelve new cashmere dehairing plants were under construction. Thus, Mongolia will have 43 plants in total once they start operating.
Mongolia produces 48 percent of the total raw cashmere in the world. But only 10% of processed cashmere is dehaired and exported. Even though the capacity to produce 6,017 tons of dehaired cashmere is installed in 40 plants, only 25% is being used.
According to the Government’s adjustment that requires hair content in goat cashmere which is crossed the border for export and import must not exceed 0.3%, only dehaired cashmere is allowed to export. As a result of that, the export volume increased and Mongolian companies started to cooperate with global TOP brands. For instance, 90% of dehaired cashmere is exported to Italy and about 20 Mongolian enterprises launched cooperation with TOP brands, such as "Loro Piana", "Falconeri", "Chanel", and "Schneider".

Source: Montsame

ERDENE ANNOUNCES STRATEGIC ALLIANCE WITH MONGOLIAN MINING CORPORATION

Erdene Resource Development Corporation is pleased to announce the execution of Strategic Alliance and Investment Agreements with Mongolian Mining Corporation (“MMC”) for the development of its Bayan Khundii Gold Project. This Strategic Alliance brings together Mongolia’s pre-eminent precious metals explorer with an exceptional national miner in a partnership to unlock the riches of the Khundii Minerals District (“KMD”). MMC to invest US$40 million in return for a 50% equity interest in Erdene’s Mongolian subsidiary, Erdene Mongol LLC (“EM”), holding the Khundii and Altan Nar mining licenses and the Ulaan exploration license through a three-stage transaction.

Source: MSE, Mining-Technology.com
View the Erdene release

COMPREHENSIVE ASSESSMENT REPORT ON IMPLEMENTATION OF THE CORPORATE GOVERNANCE CODE ISSUED

The Corporate Governance Code was adopted originally by the FRC in 2007, and revised in 2022. In the revision the scope of the Code has been expanded, for its enforcement not only in public listed companies, but also insurers, NBFIs (trust service providers) and investment management companies. Companies are assumed the obligation to comply. Accordingly, 116 in the review and verification of reports on the implementation of the code of regulated entities, as of August of last year, the initial or condition assessment of code implementation was 55.3 percent. In response to the evaluation report, the FRC gave each company recommendations, direction, and time-bound tasks. According to the repeated evaluation last month, the implementation of the Code in the 3 regulated industries increased by 16.4 percent on average.
Assessing the implementation of the code of regulated entities and determining the ranking of the governance of the sector is important for:

Source: FRC

NEW REGULATION ON NON-COMPETITION AGREEMENTS

Our Mongolian lawyers were recently approached with a request to assist a client to confirm the legality of non-compete obligations under an employment contract for a mining services company.
Employer companies often ask whether they can oblige employee not to work in the company engaged in the similar type of activity or working after terminating an employment contract. This is regulated in the Labor Law of Mongolia as non-compete obligation under additional term of employment agreement.
In order to protect industrial and business secrets, an employer is given right to provide for an additional term in an employment contract or conclude a supplementary contract with employee creating non-compete obligations. Such agreements create an obligation for the departing employee not to work for a directly competing organization, or individual for a period of time after the termination of the employment relationship, or the employee himself/herself shall not engage in directly competitive activities.

Source: LehmanLaw Mongolia

TEST OF ONLINE COAL TRADING CONDUCTED SUCCESSFULLY

Pursuant to the approval of the Law on Mining Products Exchange by the Parliament, the Government was assigned to conduct the coal online trading at the Mongolian Stock Exchange (MSE) JSC, and the Financial Regulatory Commission (FRC) of Mongolia to monitor the implementation, until the law enters into force. In order to implement actions stipulated in Paragraph 3.2 of the Government’s Action Plan 2020-2024, the “Regulation on Open Online Trading of Coal Export” was approved by the Resolution No.466 of the Government. Accordingly, within the framework of ensuring the preparation of transparent online trading, the online trading test of coking coal concentrate of “Energy Resource” LLC was successfully conducted through the MSE’s call option of coal spot contract.
A seller placed an order for the sale of 12,800 tons of coal, and the initial price was increased by 12.2% based on the orders offered by the participants in the trading.

Source: FRC, MSE
See also: Preparations Underway to Trade Coal Through Commodity Exchange

ASPIRE MINING PROGRESSES REGULATORY APPROVALS FOR OVOOT COKING COAL PROJECT

Aspire Mining Ltd continues to make progress with regulatory approvals for the world-class, wholly-owned Ovoot Coking Coal Project (OCCP) in northwest Mongolia.
During December 2022 the company received final, written approvals for some significant milestones on the permitting path, setting the stage for further progress during 2023.
Development of the OCCP requires the completion and regulatory approval of numerous assessments and studies to obtain licences and permissions necessary to facilitate construction of the planned mining, processing and transport infrastructure.
Progress in December
Permitting progress in December 2022 included:

• Approval from the Professional Committee of the Ministry of Nature, Environmental and Tourism for the Detailed Environmental Impact Assessment (DEIA) prepared in relation to the planned Ovoot coking coal mine.
• Approval from the Minerals Resource Council (MRC) of the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) for the feasibility study prepared on construction and operation of a Coal Handling and Preparation Plant (CHPP), which was based upon the previously completed Front End Engineering Design (FEED) study developed by Sedgman Pty Ltd.

Source: Proactive Investors

“MON BEEF” JSC TO CHANGE FORM TO LLC

By Board resolution, No. 07, dated December 23, 2022, an extraordinary shareholders' meeting has been announced.
Meeting venue: February 6, 2023, at 14:00 a.m., by online
Record date: January 13, 2023
Agenda of the meeting:
1.  Change the form of "Mon Beef" JSC into a limited liability company
Members of the organizing committee:
Chairman of the conference organizing committee:

• Sainbilegt.S contact: 99017266, This email address is being protected from spambots. You need JavaScript enabled to view it.

• Nominchuluu.M contact: 94010065, This email address is being protected from spambots. You need JavaScript enabled to view it.
• Tuvsanaa.G contact: 99022251, This email address is being protected from spambots. You need JavaScript enabled to view it.
• Dashbaatar.N contact: 99445989, This email address is being protected from spambots. You need JavaScript enabled to view it. 

Click here for more information

Source: MSE

MONGOLIA TO HOST CONTINENTAL CS:GO TOURNAMENT

Source: Montsame

SILVER ELEPHANT DELIVERS ADDITIONAL 6,600 TONNES OF COAL TO CHINA FROM ITS ULAAN OVOO MINE IN MONGOLIA

Silver Elephant Mining Corp. announces that, further to its news release dated December 28, 2022, and November 21, 2022, an additional 6,600 tonnes of coal in two separate rail shipments have arrived in Tianjin seaport in China from its Ulaan Ovoo mine in Mongolia. In total, 9,766 tonnes (three rail shipments) of coal have been exported to China since the cross-border sales started on December 9, 2022. Tianjin is a major Chinese seaport and exposes Ulaan Ovoo coal to international seaborne coal pricing.
"Bringing Ulaan Ovoo coal to Tianjin is a monumental achievement for the Company. This means potentially broader market reach; and the indexing of Ulaan Ovoo coal sales price to international seaborne pricing with transparency.
We are onto a good start in 2023 to reach our sales target of 200,000 to 500,000 tonnes. The Company has received additional coal purchase interests from several international buyers…

Source: Yahoo

ION ENERGY TO PRESENT AT FUTURE MINERALS FORUM IN SAUDI ARABIA

Source: Junior Mining Network

STEPPE GOLD PRODUCTION REMAINS STEADY AS COMPANY RELEASES Q4 OPERATIONS UPDATE - VIDEO

Source: Proactive Investors
View the Steppe Gold release
See also: Steppe Gold sees 180% year-over-year increase in gold production at ATO project in Mongolia

GLOBAL AND REGIONAL NEWS

CHINA RESUMING COAL TRADE WITH AUSTRALIA AFTER THREE-YEAR HALT

Source: Reuters

INDIA TOPS JAPAN TO BECOME WORLD'S NO. 3 AUTO MARKET

Source: Nikkei Asia

GLOBAL FOREIGN RESERVES DWINDLE AS COUNTRIES COUNTER DOLLAR'S RISE

Source: Nikkei Asia

SURGING MOLYBDENUM PRICE ADDS WEIGHT TO NEW YEAR RALLY FOR COPPER PRODUCERS

Source: Mining.com

GOLD HOVERS NEAR USD 1,900/OZ AFTER U.S. INFLATION DATA CEMENTS FED SLOWDOWN BETS

Source: Reuters

WORLD BANK MAKES BIG CUT TO ITS 2023 GROWTH OUTLOOK, SAYS GLOBE IS ‘PERILOUSLY CLOSE’ TO RECESSION

Source: CNBC

MINING INVESTMENTS ON THE RISE IN PERU

Source: Mining.com

U.S. NATGAS OUTPUT TO HIT RECORD HIGH IN 2023, DEMAND TO FALL

Source: Reuters

UK WATCHDOG BLOCKS LME PLAN TO RESTART ASIAN HOURS NICKEL TRADE-SOURCES

Source: Reuters
See also: LME to decide nickel reforms by end of first quarter

TRINIDAD RECEIVES 16 BIDS FOR OIL, GAS ONSHORE BLOCKS

Source: Reuters

BCM QUARTERLY REPORT FOR Q3'22

The Business Council of Mongolia delivers you its Quarterly Report for Q3 of 2022. The first edition covers all events organised by the BCM through the months of September-October. The fuller version of the articles can be found in the highlighted "details" part on the report.
 

BCM SUBMITS POLICY PAPER

The Business Council of Mongolia (BCM) Secretariat has submitted a Policy Paper to the Government of Mongolia on 13 October 2022.

BCM Secretariat has submitted summary of issues and proposed solutions on newly adopted Corporate Income Tax law drafted by the Chair and Vice-Chairs of the Tax & Regulatory Working group (lead by Ms. Kh.Amarjargal, Country Director Mongolia-Rio Tinto, Mr.B.Battushig - Founding Partner of DB&GTS LLP and Mr.R.Khishignemekh -Senior Partner of Ernest and Young TMZ).

The 42 pages of findings and recommendations was submitted to the Cabinet Secretariat of the Government of Mongolia, to the Minister of Finance, to the Minister of Mining and Heavy Industry; to Secretariat of the State Great Khural (Parliament);  Standing Committee on the Economic Affairs; Ministry of Justice and Internal Affairs; Standing Committee on the Budget; Economy and Development Ministry. In collaboration with Mongolian National Chamber of Commerce and Industry, American Chamber of Commerce in Mongolia, Ulaanbaatar Chamber of Commerce and Mongolian National Association.                                        

BCM would like to thank Mongolian National Chamber of Commerce and Industry, American Chamber of Commerce in Mongolia, Ulaanbaatar Chamber of Commerce and Mongolian National Mining Association and BCM Regulatory & Tax Working Group for their efforts to protect legal interests and rights of business entities in Mongolia.

Source: BCM

THE BCM APPOINTS RAPHAËL GOUÉ AS OFFICIAL BCM REPRESENTATIVE IN EUROPE

The Business Council of Mongolia is pleased to announce Mr. Raphaël Goué as an official BCM Representative in Europe.

Raphaël Goué is an expert in energy and banking, having spent more than 12 years in Asia as well as being involved in Europe-Asia cross-border projects since the mid-90s, with a focus on financial services, energy and telecommunications.

Mr. Goué has a wealth of experience in supporting global financial institutions and energy companies in their strategies in Asia, as well their development and M&A. He has previously held various positions in organizations such as Société Générale, Vivendi Universal, Booz & Co and Capital One in Europe, Africa and Asia. As a senior advisor of the global retail banking association EFMA, Raphaël has been supporting the development of banking’s leading association in selected Asian markets, and supporting EFMA in the fintech sector in Europe.

He holds an engineering degree from the École Nationale Supérieure de Géologie in Nancy, France, a master in material science from École de Mines de Nancy, and a MBA from HEC (Paris) he finalized at the Columbia Business School (New York).

The BCM is looking forward to expanding its reach to Europe with Mr. Goué’s leadership and assistance.

SDG INVESTOR MAPPING PROJECT SURVEY - IDENTIFYING BUSINESS CASES FOR INVESTMENT OPPORTUNITIES

The objective of this template is to collect data on businesses aligned with SDGs, and if selected, your provided data will be compiled into SDG Investor Map datasheet which will be eventually uploaded onto Global SDG Investor Platform managed by UNDP SDG Impact. The outcomes of the data will be aggregated to gather insights that will be presented in the form of a report along with other secondary research that we have conducted. Thus, we would like to seek your permission to use your data for business research and documentation purposes.  For any individual information from your business, due permission will be sought before the publishing of the report. If you have any questions or concerns, please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. and This email address is being protected from spambots. You need JavaScript enabled to view it.. 
 

UNICEF: GUIDANCE FOR EMPLOYERS ON FLEXIBLE WORK ARRANGEMENTS AND OTHER GOOD WORKPLACE PRACTICES IN THE CONTEXT OF COVID-19

ECONOMIC INDICATORS

HISTORIC ANNUAL INFLATION

CENTRAL BANK POLICY LOAN RATE

SOVEREIGN CREDIT RATING

CURRENCY RATES –  12 January 2023

 
NewsWire

Issue 764 –  6 January 2023

BCM NewsWire provides short summaries of news collected from around the world. Each article is kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full article.

Economy

• Export Performance of Mineral Products Reaches 108 pct
• Forex reserves rise to 3.4 bln USD
• Central bank purchases 22.9 tons of gold in 2022
• 2022 – A year with high inflation and public bitterness
• Minimum wage increased to MNT 550,000/mo
• Mongolia eyes higher coal selling prices from Feb 1
• Opening of New Logistics Center to Allow 700 Trucks to Cross Borders Everyday
• A New Economic Pillar: Cultural and Creative Industry
• Integrated Solutions to Rangeland Degradation in Mongolia
• Mongolia’s population stands at 3.45 million at the end of 2022
• Green Urban Planning: Lessons from Mongolia on Climate Proofing Cities in Cold Regions - Paper
• Is economic growth out of the question this year? - Editorial

• Citizens of 34 countries exempted from travel visas to Mongolia for next 3 years
• Mongolia Must Do More To Fight Corruption After Protests: Minister
• Over 100 scientists to convene to shape national consultative polling
• Issues Of Secured Transactions And Pledges Of Movable Property
• Meeting held on Zamiin-Uud Erlian port opening
• Ambassador Katie Smith: 30th anniversary of our Australia Awards program will be our key theme for 2023 - Interview
• Trust Law Concept Challenging Civil Law System: Mongolian Example - Paper
• Guest Post: Sino-Mongolian Relations: A New Era? - Editorial
• Montsame News Agency names the most significant visits of 2022 - Video
• India-Mongolia Bilateral Relation recap Jan-Dec 2022 - Video
• Diplomat Interview: Mongolian Minister of Culture Nomin Chinbat - Interview
• Air thick with disapproval of government as Mongolians welcome in new year - Editorial

Business

• Mongolian Stock Exchange floats 34 pct of shares in public offering
• Aspire Mining wraps up infill drilling at Ovoot Coking Coal Project in Mongolia
• Mongolian Mining Corporation's market cap surged HKD 281m last week
• ION Energy - Encouraging Lithographic Drill Results At Urgakh Naran
• Mongolia to Host 2023 IIHF World Championship Division IV in March
• Tender offer made by the controlling shareholder of “Juulchin Duty-Free” JSC
• VINU Network's Parent Company, COINUP, Signs a Contract with Shunkhlai Group, The 2nd-Largest Business Group in Mongolia
• E. Orchlon: Our platform will be a starting point for getting everyone involved in the fight against climate change - Interview

Global and Regional Trends

• Fed officials see higher rates for ‘some time’ ahead
• Chip glut to last most of 2023 while automotive crunch persists
• China, Ecuador Set to Sign Free Trade Agreement
• Green lending tops fossil fuel as Big Oil gets cash elsewhere
• Oil falls more than 5 pct on global economy worry, China COVID cases
• Russia's Oil Flows Slump to 2022-Low as Sanctions Squeeze Moscow
• US Surges to Top of LNG Exporter Ranks on Breakneck Growth
• Saudi Arabia may cut Arab Light crude prices to 15-month low for Asia
• Chile mining royalty bill progresses after committee approves
• Nikkei Asia: Your predictions for Asia in 2023
• Old Japan, young India and the risks of a world of 8bn people - Editorial

• BCM Quarterly Report for Q3'22
• BCM submits policy paper
• The BCM appoints Raphaël Goué as official BCM representative in Europe
• SDG Investor Mapping project survey - Identifying business cases for investment opportunities
• UNICEF: Guidance for employers on flexible work arrangements and other good workplace practices in the context of Covid-19
• UNICEF: Call for actions of the private sector to reduce children’s exposure to air pollution in UB
• BCM Guideline for Companies to Combat Air Pollution
• Member-to-member special offers & benefits

Economic Indicators

• Inflation
• Central Bank Policy Rate
• Sovereign Credit Rating
• Currency Rates

ECONOMY

EXPORT PERFORMANCE OF MINERAL PRODUCTS REACHES 108 PCT

Between December 24-30, 1.011.5 thousand tons of coal were exported by 7.776 trucks, and 1.646 wagons across the border of Mongolia, which is six times higher amount than the same period of 2021.
In 2022, Mongolia exported a total of 30.295.5 thousand tons of coal. The figure shows the increase of 90 percent compared with the same period of 2021.
Copper:  In 2022, 1.409.6 thousand tons of copper concentrate were exported, which is an 11.3 percent growth compared to the same period of 2021.
Iron ore: 10 trucks and 919 wagons, or a total of 4.607.2 thousand tons of concentrate were exported in 2022, which decreased by 35 percent from the same period of 2021.
The total export of mineral products averaged 108 percent. Specifically:

• Coal 168.3%
• Copper concentrate 116.2%
• Iron 91.1%
• Gold 112.5%
• Petroleum 73.5%
• Zinc 137.6%
• Fluorspar 55.9%

Source: Montsame, News.mn

FOREX RESERVES RISE TO 3.4 BLN USD

Mongolia's foreign exchange (forex) reserves rose to 3.4 billion U.S. dollars at the end of 2022, Minister of Economy and Development Chimed Khurelbaatar said Wednesday.
"As of Dec. 31, Mongolia's forex reserves reached 3.4 billion dollars. Therefore, our country was able to avoid a big risk of entering into a program with the International Monetary Fund and declaring default," Khurelbaatar told a press conference.
Due to the deepening of a current account deficit caused by external and internal economic conditions, the Central Asian country's forex reserves had shrunk to 2.6 billion dollars at the end of August, hitting the lowest level since 2017, according to the country's central bank.
Mongolia must make sovereign bond payments in the coming two years, Byadran Lkhagvasuren, governor of the central bank, has said, stressing the necessity to increase the forex reserves as Mongolia will have to repay sovereign debts worth 1.3 billion dollars in 2023 alone.

Source: Xinhua

CENTRAL BANK PURCHASES 22.9 TONS OF GOLD IN 2022

Mongolia's central bank purchased a total of 22.9 tons of gold in 2022 from legal entities and individuals, up 10 percent from the previous year.
As of December, the central bank's average gold purchase price had been 207,625 Mongolian tugriks (60 U.S. dollars) per gram, the Bank of Mongolia said in a statement on Wednesday.
Purchasing gold is one of the key ways for the central bank to ensure economic stability by consistently increasing foreign currency reserves, it said.
Mongolia's foreign exchange reserves stood at 2.9 billion dollars at the end of November, up 5.3 percent from a month earlier, but down 29.5 percent from a year earlier, said the bank.
Central banks across the world typically hold gold as part of their foreign exchange reserves.

Source: China.org.cn

2022 – A YEAR WITH HIGH INFLATION AND PUBLIC BITTERNESS

Highlights:

• State visits symbolize peace and tranquility
• Series of mass protests
• Law amendments allow more ministers to put on ‘double deel’
• Khuvsgul National Park put under UNESCO protection
• Hustle and bustle of education sector
• Fraud of Development Bank, misappropriation of coal exposed
• MSE becomes open joint stock company
• New railways laid after 67 years
• Policy interest rate reaches its highest level in 4 years
• Post-pandemic ‘assessment’

Source: The UB Post

MINIMUM WAGE INCREASED TO MNT 550,000/MO

The National Tripartite Agreement on labor and social consensus has set the national minimum wage to be MNT 3,273 per hour and MNT 550,000 per month from January 1, 2023.
The minimum wage was increased by 31% or MNT 130,000 from MNT 420,000. This decision will be implemented from January 1, 2023.
As of November, 2022 a total of 73,235 people in Mongolia were paid the minimum wage. They are only 9.7% of the total workforce. In January, 2022, the average pension became MNT 550,000. Therefore, citizens criticized the minimum wage is lower than the average pension.

Source: GoGo News

MONGOLIA EYES HIGHER COAL SELLING PRICES FROM FEB 1

Mongolia is looking to sell coal at ex-border prices instead of mine-mouth prices starting from February 1, a move partly to increase its revenue, local media Gogo Mongolia reported.
Erdenes Tavan Tolgoi JSC (ETT) will sell coal at border prices from the start of February, according to J. Ganbat, special representative of the company.
The state-run miner currently sells coal at mine-mouth prices and buyers are responsible for transportation from coal mines to destinations.
The new system is expected to increase sell prices and revenue, help to maintain transportation costs steady, improve the utilization of railway and port infrastructures as well as contribute to the government budget.
From 2021 to now, ETT earned $4.9 billion through coal selling and it could have earned an additional income of $4.2 billion if it sells at border prices, Gogo Mongolia reported.

Source: sxcoal.com
See also: China to re-impose coal import tariffs from Apr 1

OPENING OF NEW LOGISTICS CENTER TO ALLOW 700 TRUCKS TO CROSS BORDERS EVERYDAY

In the framework of the Mongolian government's “New Revival Policy'', the old Zamiin-Uud border checkpoint in Dornogobi aimag is under renovation to meet international standards with the funding of the Chinese government’s non-refundable aid.
As of today, the street lighting, interior, and exterior constructions, and subsurface utility engineering services have been completed in the passenger transport area. Moreover, the facilities, substructures, walkways and driveways, exterior landscaping, underground utility work, and gravel roads have been completed in the 19.72 hectares of passenger transport area. The remaining 14.95 hectares of freight transportation area are currently under construction.
Once the new logistics center is commissioned this July, the capacity of the border checkpoint will be increased by 5 times and over 700 trucks will be able to go through it everyday.
“Zhongmei engineering group” LLC is working as a contractor by order of the Ministry of Finance and the “Development Guide-Infrastructure” project.

Source: Montsame

A NEW ECONOMIC PILLAR: CULTURAL AND CREATIVE INDUSTRY

The cultural and creative industry is described as a big market which generates USD 2.2 trillion and employs over 29 million people in the research report by UNESCO.
It means that this industry is 6.4 times bigger than the mining industry by its export. Therefore, industry specialists believe that we can also benefit from our cultural creative industry by making use of it as one of our economic pillars.
The global art market is shared by North America, Europe, and Asia, according to Deloitte’s Art and Finance report. Especially, in Asia, China is leading the market with its architecture, cinemas, and ceramic arts, while South Korea is also considered one of the leaders by its singers, bands, movies, and television industry.
For Mongolia, the cultural and creative industry has generated USD 481.4 billion, accounting for 1.4 percent of GDP, and created 33 thousand of employment opportunities. Therefore, industry specialists believe that we can also benefit from our cultural creative industry by making use of it as one of our economic pillars.

Source: Montsame

INTEGRATED SOLUTIONS TO RANGELAND DEGRADATION IN MONGOLIA

The Mongolian rangelands have been identified as among the most sensitive to climate change and variability, and degradation has been alarming. Over 70% of the rangelands have changed from their natural state. Figure 1 shows a comparison of the proportions of the rangelands by degradation level in 2014 and 2016. In the 2014 survey, over half of the monitoring sites were observed as healthy, and over 10% were slightly degraded. However, in the following 2016 survey, the number of moderate, heavy, and fully degraded sites had increased.
There are many drivers of rangeland degradation in the literature. Climate factors (precipitation and temperature) are the leading cause of degradation, human activity, and grazing pressure. In such circumstances, herders compensate for their vulnerability, losses of livestock and income due to extreme climate events, and decreases in vegetation by expanding their herds. Losses force herders to compensate by increasing livestock numbers, creating a vicious cycle.

Source: IndraStra.com

MONGOLIA’S POPULATION STANDS AT 3.45 MILLION AT THE END OF 2022

According to B.Batmunkh, Chairman of the National Statistics Office, Mongolia’s population growth has been slowing down since 2020.
The population of the country had grown by an average annual rate of 2.2 percent from 2010 to 2020. However, the average annual growth rate has decreased to 1.5 percent since 2020, due to the slowdown is mainly related to the COVID-19 pandemic and economic difficulties.
On average, 200 to 240 children are born each day, while over 40 people die.
Mongolia’s population stood at 3.45 million at the end of 2022. Back in January 2015, Mongolia’s population hit 3 million.
Mongolia, with a land area of 1,564,116 square km, is the most sparsely populated country in the world.

Source: News.mn
See also: Mongolia's population growth slows down since 2020

GREEN URBAN PLANNING: LESSONS FROM MONGOLIA ON CLIMATE PROOFING CITIES IN COLD REGIONS - PAPER

In cold climates, urban design needs to take into account local topography, standards of living, and microclimatic conditions of the built environment. This paper highlights ways of integrating climate-sensitive design into urban centers to promote resilience, infrastructure efficiency, and livability.

Source: ADB

IS ECONOMIC GROWTH OUT OF THE QUESTION THIS YEAR? - EDITORIAL

Economists say that last year was “burdensome” both financially and economically. For instance, economist G.Batzorig explains that the pandemic and the Russia-Ukraine war contributed to the current bottlenecks but since the opening of the border, the tugrug and the country’s policy rate have strengthened. In general, he pointed out that the profits of enterprises have decreased, the salaries of citizens have not raised significantly and inflation has not gone below 15 percent. Even the government reported that the post-pandemic economic crisis continued last year, causing stagflation in the economy. But it is crucial to consider whether these economic difficulties will continue or improve this year. Therefore, let’s take a look at how the state of our country’s economy has been projected for 2023.
The government announced that it will follow the policy of growing the economy by 5 percent and keeping inflation at a single digit or about 8 percent.

Source: The UB Post

POLITICS

CITIZENS OF 34 COUNTRIES EXEMPTED FROM TRAVEL VISAS TO MONGOLIA FOR NEXT 3 YEARS

In relevance with the government's announcement of 2023, 2024, and 2025 as "Years to visit Mongolia", citizens of 34 foreign countries who will visit Mongolia for up to 30 days are exempted from visa requirements during these three years. 
These countries include 32 highly developed countries in Europe, and Australia, and New Zealand. They are the leading countries in terms of the number of citizens who visit Mongolia, and they are the countries that receive Mongolian visas online through www.evisa.mn, which was introduced in October, 2021. 
It is considered that visa exemption is important for the development of the tourism industry in Mongolia, the recovery of the economy, and the travel conditions of Mongolian citizens. 

Source: GoGo News

MONGOLIA MUST DO MORE TO FIGHT CORRUPTION AFTER PROTESTS: MINISTER

Mongolia must do more to tackle corruption in the wake of claims that officials stole billions of dollars worth of coal, the country's justice minister told AFP, after thousands took to the streets furious over the scandal.
As Mongolians buckle under deepening inflation caused by the pandemic and neighbouring Russia's war in Ukraine, the political class face a reckoning over allegations that a faction of politicians and executives misappropriated coal.
This month, thousands of protesters braved sub-zero temperatures in Mongolia's capital Ulaanbaatar to demand they be punished -- and that the "big fish" encouraging a culture of impunity be called out.
Following those rallies, justice minister Khishgeegiin Nyambaatar told AFP that greater steps must be taken to battle corruption that many Mongolians feel has robbed their country of the vast profits from a mining boom.
Coal is one of Mongolia's biggest earners, with state media reporting in October that the country exports an average of 1,304 trucks of the fossil fuel a day.

Source: Barron's

OVER 100 SCIENTISTS TO CONVENE TO SHAPE NATIONAL CONSULTATIVE POLLING

On December 22, 2022, the Parliament of Mongolia issued a Resolution No.80 "Conducting a Consultative Poll".
Therefore, it was decided to organize a national consultative poll "Let’s consult and decide together". According to this, the academic conference "Let's find a solution" was held today at the Parliament House, and more than 100 scientists and researchers discussed the problems facing Mongolia.
Furthermore, a political discussion will be organized with the participation of political parties and NGOs on January 18. 

Source: GoGo News

ISSUES OF SECURED TRANSACTIONS AND PLEDGES OF MOVABLE PROPERTY

The International Finance Corporation of the World Bank Group, in cooperation with the Mongolian Bank Association, has been implementing a program to enhance the supply chain finance market, especially focusing on the increase of loans and financing secured by moveable assets. For Mongolia, the "Law on Pledge of Movable Property and Intangible Property" was enacted and has been in effect since 2015 becoming one of the most frequently discussed legal relations.
Understanding the legal regulations of such relations and application of the law are essential for the growth of loans and financing secured by movable assets. In particular, this law is an economically significant law that provides a mechanism for securing valuable movable property while maintaining the basic concept of ownership in the Civil Code of Mongolia, thereby providing a mechanism for small and medium-sized businesses to obtain the necessary financial needs. In this regard, the concepts and issues of secured transactions and movable property collateral are outlined herein.

Source: Mondaq.com

MEETING HELD ON ZAMIIN-UUD ERLIAN PORT OPENING

An online meeting was held in relevance with the passenger traffic opening at the Zamin-Uud-Erlian road port on the border of Mongolia and China from January 8, 2023.
The online meeting was chaired by N.Ankhbayar, the State Secretary of the Ministry of Foreign Affairs, and presented the situation of work progress to restore passenger traffic at Zamiin-Uud-Erlian road port. The Embassy of Mongolia in China, the diplomats of General Councils of China in Khukh Khot, Erlian and Manjuur cities gave detailed information on the actions taken to open passenger traffic at the border ports of Mongolia and China.
During the meeting, the border inspection agencies paid special attention to the border crossing of passengers at Zamiin-Uud-Erlian road port and actively cooperated with the Chinese party at the local level to organize the border crossing in an orderly, fast and easy way for the public.

Source: GoGo News

AMBASSADOR KATIE SMITH: 30TH ANNIVERSARY OF OUR AUSTRALIA AWARDS PROGRAM WILL BE OUR KEY THEME FOR 2023 - INTERVIEW

We had interview with Ms Katie Smith, Ambassador of Australia to Mongolia. She was appointed as an ambassador to Mongolia in June 2022. The passing year 2022 was a very special year for both countries. Because this year marks the 50th anniversary of the establishment of diplomatic relations. Here enjoy our interesting interview on remarkable end of the year and beginning of the new year.
- More than 60 Australian companies operate in Mongolia, and most of them work in the mining sector. Is it possible to increase this number in the future?
- One of my key jobs is to expand the Australia-Mongolia economic linkages.  Our trade and investment relationship is in a good shape and I'm pleased that we have a strong contribution here to the mining sector in terms of our companies bringing new technologies and working to strengthen skills and create employment as well. 

Source: GoGo News

TRUST LAW CONCEPT CHALLENGING CIVIL LAW SYSTEM: MONGOLIAN EXAMPLE - PAPER

This article aims to demonstrate that law trust concept can contribute to the improvement of property law as a comprehensive device external to the tradition of the civil legal system. At the same time, an incorrect or incomplete understanding of trust principles may give rise to problems such as the defrauding of creditors, the circumvention of laws prohibiting certain activities or the unfair distortion of the fabric of existing law. While trust law concept originated in common law systems plays an important role in property management system all over the world, especially in financial and banking sectors, the civil law system with its absolute ownership concept and remedial structure based on obligation law still challenge in receipt of the trust law rules. Therefore, this article will cover the standards applicable to trust relationships in the legal systems of the United States of America and Japan, for the purpose of identifying norms that may help in the further development of the property relationship in Mongolia from a legal and economic point of view.

Source: Scientific Research Publishing

GUEST POST: SINO-MONGOLIAN RELATIONS: A NEW ERA? - EDITORIAL

On November 28, Chinese President Xi Jinping held a ceremony in the Great Hall of the People to welcome the state visit of Mongolian President Ukhnaagiin Khurelsuh. A 21-gun salute was fired on Tiananmen Square, and Khurelsuh, accompanied by Xi Jinping, reviewed the honor guard of the Chinese People’s Liberation Army. China welcomed the President of Mongolia with the highest ceremony. The two sides stressed their intention to build the bilateral relations into a “model of state-to-state relations” in the “new era”. It is interesting to note that there were some changes in the definition of the southern neighbor or the state of bilateral relations by the current leaders of Mongolia in post-pandemic time. The Prime Minister of Mongolia emphasized that China is a “golden neighbor,” while the President of Mongolia stressed that the friendship between China and Mongolia is a “steel friendship.”

Source: Mongolia Focus
See also: Mongolia Focus 2022 in Review

MONTSAME NEWS AGENCY NAMES THE MOST SIGNIFICANT VISITS OF 2022 - VIDEO

Montsame News Agency's year-end review of key events from 2022.

Source: Montsame

INDIA-MONGOLIA BILATERAL RELATION RECAP JAN-DEC 2022 - VIDEO

Indian Embassy in Mongolia: India-Mongolia Bilateral Relation recap Jan-Dec 2022

Source: Embassy of India in Mongolia

DIPLOMAT INTERVIEW: MONGOLIAN MINISTER OF CULTURE NOMIN CHINBAT - INTERVIEW