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BCM HIGHLIGHT
ANNUAL INVESTMENT MEETING 2023 (AIM), 8-10 MAY 2023 AT ADNEC IN ABU DHABI, UNITED ARAB EMIRATES
Dear BCM members and partners,
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ECONOMY
INFLATION AT 13.2 PCT
According to the National Statistics Office, the consumer price index at the national level increased by 1.0% from the previous month and by 13.2% from the same period of the previous year as of December.
The 13.2% increase in the consumer price index from the same period of the previous year was mainly contributed by 15.4% increase in the prices of food and non-alcoholic beverages group (24.2% increase in prices of non-alcoholic beverages), 8.1% increase in prices of alcoholic beverages and tobacco group, 18.5% increase in prices of clothing, cloth and footwear group, 15.4% increase in prices of housing, water, electricity and fuels group, 17.4% increase in prices of medicine and medical service group and 6.2% increase in prices of transport group. The 1.0% increase in CPI from the previous month has mainly resulted from 1.9% increase in the prices of food and non-alcoholic beverages group, 0.6% increase in prices of alcoholic beverages and tobacco group, 1.2% increase in the prices of clothing, cloth and footwear group, 0.4% increase in prices of transport group.
Source: Montsame
NON-PERFORMING LOANS DECREASES BY 2.6 PCT Y/Y
At the end of December 2022, the total amount of outstanding loans to enterprises and individuals amounted to MNT 22.2 trillion, decreased by MNT 439.5 (1.9%) billion from the previous month while it increased by MNT 1.4 (6.5%) trillion from the same period of the previous year.
The total loans outstanding consist of 53.0% being individual loans, 45.6% being private sector, 0.7% being financial corporations and other sectors, and 0.7% being the public sector. The standard loans reached MNT 19.1 trillion at the end of December 2022, which increased by MNT 107.2 (0.6%) billion from the previous month and by MNT 1.2 (6.8%) trillion from the same period of the previous year. The performing loans made up 85.8% of total loans.
At the end of December 2022, the non-performing loans in the banking system amounted to MNT 2.0 trillion, decreased by MNT 341.1 (14.4%) billion from the previous month and decreased by MNT 54.3 (2.6%) billion from the same period of the previous year.
Source: Montsame
TIME DEPOSITS IN MNT DOWN 16 PCT, FOREIGN CURRENCY UP 24 PCT Y/Y
The time deposit in domestic currency amounted to MNT 12.6 trillion at the end of December 2022, which decreased by MNT 304.1 (2.5%) billion from the previous month and decreased by MNT 2.4 (16.2%) trillion from same period of the previous year.
In terms of the type of time deposit in domestic currency, MNT 11.3 (90.0%) trillion was individual deposits, and MNT 1.3 (10.0%) trillion was deposits of enterprises.
The time deposits in foreign currency amounted to MNT 4.9 trillion, which increased by MNT 196.4 (4.2%) billion from the previous month and increased by MNT 936.9 (23.6%) billion from same period of the previous year.
Source: Montsame
BANKS’ NET PROFITS RISE
The net profits and ROIs of the banks listed in MSE increased in 2022.
The State bank issued an IPO in Q4 2022 and became the first systematically important bank that went public. According to “Mandal Asset Management,” their net profit has reached MNT 96 billion, up 87% over the previous year, which shows a record-high rate in recent years’ performance of this bank. Their ROI (return on investment) is 22%.
The “Golomt Capital” announced that the net profit of the Golomt bank had reached MNT 100 billion as of the end of Q4 2022, an increase of 355% compared to the same period last year, which was the record high growth for this bank as well. While their equity has reached MNT 844 billion, a growth of 42% and an ROI is 14%.
Source: Montsame
MONGOLIA TO CONDUCT COAL EXPORTS TRADE VIA EXCHANGE FROM FEB. 1
Mongolia will export its coal at prices set via auctions on the Mongolian Stock Exchange (MSE) from Wednesday and stop signing direct sales contracts with overseas buyers, mainly from China, in a bid to tackle widespread graft in the sector.
The move came after a coal-related corruption scandal triggered protests in the capital Ullanbaatar in early December.
The government approved a regulation on Dec. 14 requiring parties involved in coal exports to make their trades through open electronic trading via the MSE from Feb. 1.
Under the previous trading mechanism, buyers only paid mine-mouth prices to miners and sorted out the logistics by themselves. The new so-called “border prices” will factor in the transportation fees and aim to simplify the coal export process.
“The new mechanism will lower the threshold for new participants to join the trade as they do not need to invest big capital in logistics,” said analysts from consultancy Mysteel in a note on Wednesday.
Source: Reuters
UK DEPT. FOR INTERNATIONAL TRADE: MONGOLIA TRADE AND INVESTMENT FACTSHEET
This factsheet provides the latest statistics on trade and investment between the UK and Mongolia.
Date of release: 1 February 2023; Date of next planned release: 17 February 2023
Total trade in goods and services (exports plus imports) between the UK and Mongolia was £158 million, in current prices, in the four quarters to the end of Q3 2022, a decrease of 52.8% or £177 million from the four quarters to the end of Q3 2021. Of this £158 million:
• Total UK exports to Mongolia amounted to £104 million, in current prices, in the four quarters to the end of Q3 2022 (a decrease of 66.9% or £210 million compared to the four quarters to the end of Q3 2021);
• Total UK imports from Mongolia amounted to £54 million, in current prices, in the four quarters to the end of Q3 2022 (an increase of 157.1% or £33 million compared to the four quarters to the end of Q3 2021).
Source: UK Department for International Trade
CHINA-MONGOLIA BORDER CITY GETS BACK TO BUSINESS
Ereenhot, the border city with the largest land port between China and Mongolia, is gradually resuming its pre-COVID-19 business prosperity.
This is in the wake of the announcement made by the Chinese health authorities to downgrade the management of COVID-19 from category A to category B, starting Jan 8.
Based on the new policy, the passenger channel at Ereenhot port has been resumed, which means Mongolian merchants and visitors can enter the city to purchase goods with fast customs clearances.
From Jan 8, an average of more than 500 people entered China through the checkpoint and over 270 people left the country through the port every day.
Ulan, a merchant from Mongolia, said she enjoyed the customs clearance convenience.
She told the Inner Mongolia Daily in an interview that she chose products she liked in the Wenzhou International Mall in Ereenhot.
Source: Inner Mongolia Autonomous Region
MONGOLIAN PROVINCES WEIGHTED FOR THEIR COMPETITIVENESS
Mongolia's Economic Policy and Competitiveness Research Center (EPCRC) was established in 2010 by the initiative of Tsagaan Puntsag, the Chairman of the Board, and leading private sector organizations. EPCRC joined the Global Federation of Competitiveness Councils in 2012.
The report, “Mongolia: The Competitiveness of the Aimags" has began to be developed consecutively since 2012. The 11th or the 2022 report was published, and the Center held a press conference on February 1. The Competitiveness Report of the Aimags, which compares the development and competitiveness of 21 aimags of Mongolia, evaluates a total of 174 indicators within the framework of four main groups: economic strength, governance and business efficiency, and infrastructure. The data source of the research consists of statistical and survey data obtained from business owners of 21 provinces.
According to the general evaluation of the competitiveness of the aimags, Dornogobi aimag placed first…
Source: Montsame
Visit aimagindex.mn
55 CHINESE COMPANIES SENT REQUEST FOR COAL EXCHANGE
Special Plenipotentiary Representative of the government at Erdenes Tavan Tolgoi JSC J.Ganbat gave some information regarding the coal exchange and the implementation of the government order.
He said, “Erdenes Tavan Tolgoi JSC will engage in the coal exchange on February 8 to February 10 and has been preparing for the work. Due to the Chinese Lunar New Year coal transportation has decreased and the exchange dates have been moved from February 1. To sell on border terms, it’s necessary to take responsibility for the transportation of coal to the buyer. In this regard, the State Procurement Department has announced a tender for transportation of coal to the border. Currently, there are 200 applicants for the tender and the final agreements will probably be finished by next week. After organizing the transportation, the price of the coal to be traded will be announced.
Source: The UB Post
See also: Mongolia amps up coal exports through MSE
MONGOLIANS USE THEIR NATIONAL PAYMENT SYSTEM IN SOUTH KOREA
BC Card, the financial services wing of South Korea’s major telecom company KT, will work with the central bank of Mongolia to establish a payment linkage system between South Korea and Mongolia. Mongolians can use their national payment system using automatic teller machines in South Korea.
According to data released by South Korea’s foreign ministry, 39,746 Mongolians were living in South Korea as of June 2022. A total of 113,864 Mongolian tourists visited South Korea in 2019. Mongolia accounted for the largest portion of average expenditure per person with $2,070, followed by China with $1,887. Between 2014 and 2019 the number of Mongolian tourists rapidly increased with an annual average rate of 16.9 percent.
BC Card said in a statement that the use of T-Card, a Mongolian national payment system that accounts for about 56 percent of the local card payment market, will be available using automatic teller machines (ATMs) and at affiliated stores in South Korea.
Source: News.mn, Aju Business Daily, Montsame
SULFURIC DIOXIDE IN ULAANBAATAR AIR IS 4 PERCENT HIGHER THAN THE PREVIOUS YEAR
National Agency Meteorology and the Environmental Monitoring presented the state of air quality in winter of Ulaanbaatar city as of January 2023.
The air quality of Ulaanbaatar city was measured in 18 points around residential areas, highways, residential areas, and industrial districts, including air pollutants such as sulfur dioxide (SO2), nitrogen dioxide (NO2), PM2.5, PM10 particles, carbon monoxide (CO), ozone (O3) and meteorological parameters are determined by automated tools.
The average concentration of air pollutants in January compared to the same period of the previous year PM10 particles are 5 percent lower, PM2.5 particles are 8 percent lower, nitrogen dioxide (NO2) is 6 percent lower, and sulfur gas is 4 percent higher.
In air quality standard MNS 4585:2016, it is also 3.3 times higher than the permissible concentration.
Source: GoGo News
MAYOR’S OFFICE: MEETING WITH MANAGEMENT OF PROJECT UNITS HELD AND PROGRESS OF PROJECTS INTRODUCED
Mayor of Ulaanbaatar D.Sumiyabazar met with the management of project implementing units, got acquainted with the progress of the projects and exchanged views.
Ulaanbaatar Green Affordable Housing and Resilient Urban Renewal Sector Project will be implemented in five stages over seven years, and within the project, 10,000 families will be housed on 100 hectares of land in the residential area.
The mayor reminded that it is necessary to look at the actual situation, plan realistically, not to create debt in the capital city, to be responsible, and put in the economic cycle.
Ulaanbaatar Sustainable Urban Transport Project will be implemented from 2022 to 2026 and it consists of three parts. Firstly, as part of the construction of comprehensive streets and roads, road works will be carried out in six locations. In this context, roads will be widened and repaired in two locations and new roads will be built in four locations.
Source: The UB Post
MONGOLIA: STRENGTHENING SYSTEMS FOR PROMOTING SCIENCE, TECHNOLOGY, AND INNOVATION
The technical assistance (TA) aimed to support improvements in legal and policy frameworks, data infrastructure for promoting knowledge and technology transfer, and the commercialization of research and development (R&D) in Mongolia through research, policy advice, and capacity development.
This report validates the completion report's assessment of the TA.
IED overall assessment is successful.
Source: ADB
Click here to view the document
MONGOLIA: ENHANCING THE USE OF MULTIPLE DATA RESOURCES TO MONITOR PROGRESS TOWARDS THE SUSTAINABLE DEVELOPMENT GOALS (SDGS)
The objective of this technical assistance (TA) was to support the National Statistics Office (NSO) in improving Mongolia’s capacity to measure and report progress on Sustainable Development Goals’ (SDGs) indicators.
This report validates the completion report's assessment of the TA.
IED overall assessment is successful.
Source: ADB
Click here to view the document
ECONOMIC SLOWDOWN LIKELY TO FORCE WORKERS TO ACCEPT LOWER-QUALITY JOBS - EDITORIAL
Faltering global employment growth and the pressure on decent working conditions risk undermining social justice, according to the ILO’s World Employment and Social Outlook: Trends 2023 report.
The current global economic slowdown is likely to force more workers to accept lower quality, poorly paid jobs that lack job security and social protection, so accentuating inequalities exacerbated by the COVID-19 crisis, according to a new International Labor Organization (ILO) report.
According to the ILO’s Global Employment and Social Trends 2023 survey, the global employment rate will grow by only 1 percent in 2023, which is less than half of the growth in 2022 The global unemployment rate is 5.8 percent and is expected to increase by approximately 3 million to 208 million in 2023. The moderate size of this projected increase is largely due to the tight labor supply in high-income countries. This would mark a reversal of the decline in global unemployment seen between 2020 and 2022.
Source: The UB Post
FEWER WOMEN SAY ‘I DO’ TO HERDING LIFE - EDITORIAL
A young man with a face tanned by the wind and sun walks alongside his horse, leading his sheep to graze freely in the valley between faraway mountains.
After graduating from high school, Dandaabayar Byamba-Ochir left his dormitory and rejoined his family as a herder last year. His parents and five younger siblings needed the help, and the work happens to suit the 17-year-old.
“I love horses,” he says.
He would also love to start a family of his own in a few years, but that presents a greater hurdle than growing his family’s collection of 900 sheep, goats, cows and horses. Mongolia’s herders stay in different places throughout the year, searching for the best conditions for their animals, which means his home is often a six-hour horseback ride across mountainous dirt paths to the nearest large town, Murun, where he can find unmarried women his age.
Source: Global Press Journal
See also: Herding remains a big business in Mongolia
WHY IS MONGOLIA THE UNHAPPIEST COUNTRY IN THE WORLD? - EDITORIAL
Are you one of the 3 million citizens of Mongolia living happily? How do we define and measure happiness?
"New Economics Foundation", the British organization, has been studying the "Happy Planet Index" since 2006 to measure human happiness index. This study determines the impact of the well-being of human life on nature and the benefits it receives back.
Mongolia's HPI increased significantly between 2016-2019, but it was named the world's unhappiest country alongside Qatar.
Why?
It is because of our ecological footprint, or our high use of natural resources. The excess capacity of grasslands and intensifying desertification are negative ecological consequences left by Mongolians, and it is included among the countries with a high ecological footprint.
"Happy Planet Index" of Mongolia was 14 in 2016, which was a low indicator behind countries such as Chad, Luxembourg, Togo, and Benin. In 2019, it increased to 24, but it is still the lowest figure behind Qatar.
Source: GoGo News
POLITICS
MONGOLIA FALLS SIX PLACES TO HISTORIC LOW IN CORRUPTION INDEX
Mongolia fell six places in the corruption index where the country of 3.4 million placed in the 116th out of 180 countries, according to the 2023 Corruption Perceptions Index reported by Transparency International. The least corrupt countries in the region include New Zealand and Singapore.
In 2020, the organization aimed to show the transparency of political financing and the aggressive entry of private interests into politics with the Corruption Perceptions Index. In 2021, when there was a pandemic, the level of corruption and how to fight it was emphasized. For the 2022 corruption index, more armed conflict and peace and security are emphasized.
The Corruption Perceptions Index (CPI) ranks of countries around the world, based on how corrupt their public sectors are perceived to be. The results are given on a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean.
Source: News.mn
View Transparency International's 2022 Corruption Perceptions Index
PRESIDENT VETOES CONTROVERSIAL SOCIAL MEDIA LAW
In a press conference on Monday morning, January 30, a spokesperson for Mongolian President Ukhnaagiin Khurelsukh announced he has decided to veto a controversial “law to protect human rights on social networks” that was hastily passed by parliament on January 20.
The veto means that the law, which – despite its avowed objectives – has the potential to seriously violate rights to free expression, will return to parliament for a second discussion.
In her newsletter, Duuya Baatar, who heads Nest Center NGO, the civil society group that operates Mongolia’s lone fact check group, Mongolia Fact Check, told Rappler that for the law to be completely annulled however, their parliament still needs to act on the veto.
“It’s like an appeal. Because the parliament holds the highest power to pass legislation in Mongolia, it can’t be completely annulled just because the president has vetoed it. In a sense, the president’s veto is simply a way of asking the parliament to review its decision.”
Source: Rappler.com, Montsame
See also: Mongolia moves to seize power to shut down internet, control social media
MONGOLIA TO ESTABLISH AGENCY FOR INVESTMENT, TRADE TO ATTRACT FOREIGN INVESTMENT
The Mongolian government on Wednesday decided to establish an agency for investment and trade to attract more foreign investors, Mongolian Minister of Economy and Development Chimed Khurelbaatar briefed media after a regular government meeting.
The agency is committed to attracting foreign investment, protecting legal interests of investors, and developing trade in Mongolia, said Khurelbaatar.
Mongolia is rich in natural resources, and foreign direct investment (FDI) in the mining sector has been one of the main drivers of the country's economic growth.
However, FDI inflows to Mongolia have declined significantly in recent years due to factors like political instability and the COVID-19 pandemic.
The landlocked Asian country attracted 800 million U.S. dollars of FDI in the period of the first eight months of 2022, according to the Mongolian Ministry of Economy and Development.
Source: Xinhua, Montsame
KH.NYAMBAATAR: I WILL SEND A OFFICIAL LETTER TO META TO DISCHARGE GEORGE CHEN FROM POSITION
Kh.Nyambaatar, the Minister of Justice and Home Affairs, reported today “The official letter about the dismissal of George Chen, Meta Managing Director of Public Policy for China, Mongolia, and Central Asia, will be sent to Meta next Monday (February 6).”
He said, “George Chen libeled the Ministry of Mongolia and he should apologize. I held a meeting with George Chen in April last year, and I have a 2 hour meeting protocol and recording. Meta should not be involved in the internal affairs of any country. Some of our employees were harassed by e-mails and told to be banned by Meta. All these documents will be attached to the official letter. If they don't apologize, we will go to court”.
On September 20, 2022, Kh.Nyambaatar, the Minister of Justice and Home Affairs, tweeted about Meta's cooperation in the draft law on the protection of human rights in social networks, saying “I held a meeting with George Chen…
Source: GoGo News
LAW ON LAND TO BE RENEWED
The standing committee on Environment, Food and Agriculture is currently working on five sets of bills on the Law of Land to submit to the plenary session of parliament.
The current Law of Land was adopted in 2002. Since then, it has been amended 32 times and has not been renewed for 20 years. Renewing the entire law will not only be resulted in quick and effective dispute resolution, but also enable integrated planning to ensure cross-sectoral collaborations, allocate land to the target group of citizens to build houses, and fences in the first place, and allow individuals and legal entities to commercialize their land through open e-markets, and transfer and use the land in their possession for trade and service.
Thus, a working group, consisting of 21 members and led by D. Togtokhsuren MP has been established to formulate recommendations and conclusions for those set of bills and other accompanying bills and prepare them to be discussed at the plenary session of parliament.
Source: Montsame
MONGOLIA TO OPEN CONSULATES IN SIX PLACES IN UZBEKISTAN
Mongolia established diplomatic relations with Uzbekistan on January 25, 1992, but has not established permanent diplomatic corps in the country.
The concurrent ambassador of Mongolia has been in Astana since 2018, and the Uzbek ambassador has been in Beijing. There have also been no high-level visits so far.
The Ministry of Foreign Affairs of Mongolia planned to open consulates in six places in Uzbekistan this year.
Uzbekistan has the largest population and territory in the region. Trade and transport logistics are also well developed. Mongolia is interested in increasing trade with the countries of Central Asia and in the supply of agricultural products to the region with the opening of the Embassy in Uzbekistan.
Mongolia introduced a visa-free regime for citizens of Uzbekistan for 30 days in June 2022.
Source: News.mn
KICK-OFF MEETING FOR “SUPPLY AND INSTALLATION OF GER AREA SMART WATER KIOSK UPGRADE” PROJECT WAS SUCCESSFULLY ORGANIZED
The Ger Area Cost Containment Sub-Activity is being implemented under the Water Sector Sustainability Activity, as part of the Mongolia Water Compact between the Government of Mongolia and the Millennium Challenge Corporation ("MCC"). The sub-activity supports efforts to curtail the high costs that USUG bears for providing water through the system of water kiosks in the ger area of Ulaanbaatar.
To reduce the direct costs associated with delivery and sale of water, 182 manually operated pipe-fed kiosks in the ger areas of seven districts of Ulaanbaatar city will be converted to automatic “smart” kiosks” that operate longer hours at lower cost. As a result of the project, USUG’s all pipe-fed kiosks will be automated, leading to improved convenience of access to water in ger areas.
The open, international procurement of "Supply and installation of ger area smart water kiosk upgrade" was successfully organized in 2022 by the independent Procurement Agent in compliance with the MCC’s Program Procurement Guidelines.
Source: MCA Mongolia
PEOPLE ADVISED TO WEAR MASK REGULARLY
A regular meeting of the capital city authorities was held on January 30. Mayor of Ulaanbaatar D.Sumiyabazar gave 22 tasks at the previous meeting, and the implementation was 83.6 percent.
Influenza Outpatient Clinic hours are extended from 5:00 p.m. to 9:00 p.m. on weekdays and 11:00 a.m. to 6:00 p.m. on Saturdays.
In the future, the outbreak of flu and flu-like diseases is likely to increase, so the Capital City Health Agency has called on the citizens to wear masks in public places. Despite the relatively few number of COVID-19 cases are being recorded, preparedness has been ensured and hospitals have been prepared with a three-month supply of medicines.
At the end of the regular meeting, First Deputy Governor in charge of Economy and Infrastructure J.Sandagsuren ordered the following duties and tasks.
Source: The UB Post, GoGo News
MONGOLIA REELS FROM IMPACT OF RUSSIAN SANCTIONS - EDITORIAL
Russia’s full-scale invasion of Ukraine has hurt the Mongolian economy, its prime minister has said, claiming financial damage including the loss of airline revenues and difficulty in importing necessary supplies from Russia.
Almost a year on from the full-scale invasion of Ukraine and the subsequent imposition of wide-ranging sanctions by the US and its allies on Moscow, the landlocked democracy of just 3.3mn people sandwiched between Russia and China is still reeling from the impact.
“Even though Mongolia is a democratic country it is also under pressure because of the sanctions imposed on Russia,” Luvsannamsrai Oyun-Erdene, the country’s 42-year-old prime minister, told the Financial Times in an interview. He added that the punitive measures amounted to “a double sanction on Mongolia even though it is not our fault”.
The collateral damage ranges from complications in paying Russian companies on which Oyun-Erdene says Mongolia is “wholly dependent” for fuel, to the loss of revenues from airlines that once flew over the country.
Source: Financial Times
See also: L.Oyun-Erdene: Sanctions imposed on Russia impact negatively on Mongolia's economy
GUEST POST: FOR THE 3RD TIME, THE MONGOLIAN PARLIAMENT HAS PASSED A LAW IN BREACH OF OTHER LAWS - EDITORIAL
On January 18, 2023, the Mongolian parliament passed a “bill to protect human rights on social media” that allows to regulate social media contents. Within a little over 48 hours after the draft proposal submitted by the Minister of Digital Development and Communication to parliament, the bill was passed giving no space and time for the public to get acquainted with the draft.
This rushed process of passing a law did not occur for the first time for the Mongolian parliament. It turns out, the basis for such breaches of existing laws and human rights by parliament has been laid out over the past half-year. Three laws have already been passed by parliament in an expedited way since August 2022, all within 6 to 48 hours. Mandatory supporting studies to draft bills and public engagement, openness and transparency of drafts ensured pursuant to the law on legislations of Mongolia, effective since 2015, were disregarded in each circumstance.
Source: Mongolia Focus
ASPIRATIONAL STATEMENTS AS LEGISLATION - EDITORIAL
With the “Protecting Human Rights on Social Media Law” we have seen another round of what seems like fairly misguided legislation. Tegshbayar has already questioned the need for an expedited process and other aspects for this law. This misguidedness fits into a longer pattern on legislation that is not followed up with implementation and controversies over similar laws in recent years that touch on freedom of speech and other human rights.
Even though Pres. Khurelsukh vetoed the law and we will have to see whether parliament attempts to override that veto, it seems worth reflecting on this pattern of legislation.
Three aspects in this process struck me as noteworthy:
- A strong belief in legislation as effective administrative fiat that turns some laws into mere aspirational statements.
- Implementation of these laws is not thought about nor pursued…
Source: Mongolia Focus
N.ENKHBAYAR: A NEW CONSTITUTION IS MOST BENEFICIAL SOLUTION - EDITORIAL
The government was tasked to submit a draft amendment to the Constitution to Parliament within last year. However, the government working group drafted a new Constitution, which includes the issue of making Mongolia the “Republic of Mongolia”, causing public outrage. The first phase of the public consultative ballot commenced on January 26 to determine the social and economic problems of the country. The public suspects that the authorities plan to hold the consultative ballot regarding the constitutional amendments. Regarding the issue of a new Constitution, Chief Cabinet Secretariat D.Amarbayasgalan made a statement on January 25 and the working group led by former President N.Enkhbayar held a press conference on January 26.
N.Enkhbayar said, “Scientists, researchers, NGOs, sociologists and citizens are calling for a people-centered Constitution. The draft amendment to the Constitution that we developed reflects, ‘The time has come to move from a state-centered government to a people-centered government.’
Source: The UB Post
P.BAYAR: VOTING ON A DRAFT CONSTITUTION WRITTEN BY A NON-CONSTITUTIONAL SUBJECT IS ILLEGAL - INTERVIEW
In the following interview, lawyer Dr. P.Bayar delved into the procedure for approving laws, constitutional amendments and the newly-approved Law on Protection of Human Rights on Social Media. He earned a doctoral degree in law from Cornell University, one of the Ivy League universities in the USA.
What do you think about the Mongolian legal regulation of foreign investment?
This is one of the topics I study. We must stop trying to change the Foreign Investment Law to attract and increase foreign investment and improve its legal environment. A foreign investor wants a stable legal environment rather than a favorable condition. There should be no fear that the law that is in force today will be changed tomorrow or next year. They only see if Mongolians are true to what they say. So we need to stop amending the law, whether it was passed in 1993 or not. In general, the countries are currently moving towards a unified tax system.
Source: The UB Post
MONGOLIA: BETWEEN THE HAMMER AND THE ANVIL / UNDRAA AGVAANLUVSAN - AUDIO
Dr. Undraa Agvaanluvsan, a former member of Mongolia’s Parliament recently explained her country’s challenges in coping with a changing global order.
Russia’s invasion of Ukraine changed how global politics works. Instead of peace, prosperity and globalization, the scenario became war, recession and “near shore.” Suddenly, the world was separated into a conflict between the US and Europe on one hand and Russia and China on the other, enforced by sanctions and bullying. Everybody else was supposed to choose one side or the other.
What about Mongolia? It is a democracy in a region where that is unusual, almost unique. But it is geographically sandwiched between China and Russia, making it almost impossible to avoid their embrace, especially if they can’t be played off against each other.
Source: The Tallberg Foundation
B. BATTSETSEG: MONGOLIA WILL PRESERVE THE MOMENTUM OF ITS FOREIGN POLICIES AND ACTIONS - VIDEO
On January 30, Minister of Foreign Affairs of Mongolia Mrs. B. Battsetseg held a press conference to introduce the policies and priorities of the Ministry, and its plans and actions for 2023, as well as provide an overview of the key state and government high-level visits, and their results and achievements, implemented in 2022.
At the onset, the Foreign Minister emphasized: ”Mongolia pursues peace-loving, open, independent, and multi-pillar foreign policy. This policy principle has been central in all of our actions in 2022. In other words, 2022 was a year full of events that demonstrated the rightness of this policy. I would like to highlight three points. First, the peace-loving, open, multi-pillar, and independent foreign policy of our country was right from the beginning. Second, we have paid particular attention to maintaining and preserving our position with respect to relations with our two neighbors and “third neighbors”, the United Nations, and other international organizations, and ensuring the unity of our foreign policy.
Source: Montsame (1), Montsame (2)
HOW MONGOLIA IS NAVIGATING A CHANGING SECURITY ENVIRONMENT - EDITORIAL
Reflecting on the changing security environment encircling Mongolia today, Ulaanbaatar is currently revising its 2010 National Security Concept and has increased its defense budget, amid growing defense spending across the region.
In 2022, the Japanese Ministry of Defense unveiled another record-high defense budget, allocating 6.82 trillion yen ($51.4 billion) for its Japanese Self-Defense Forces. South Korea passed a five-year defense budget, indicating an increase of 6.8 percent annually. These are high figures based for the individual states, based their specific security concerns.
However, these figures cannot compare to China and the United States.
The International Institute for Strategic Studies (IISS) put things in perspective: “China’s 2020 [defense budget] increase, amounting to a nominal US$12 billion, was still greater than the combined defense budget increases in all other Asian states. Indeed, increases in the US and Chinese defense budgets accounted for almost two-thirds of the total increase in global defense spending in 2020.”
Source: The Diplomat
CHINA GETS BURNED AS MONGOLIA BREAKS COAL LINK - EDITORIAL
China will have to pay more to buy coal from Mongolia, which says it will stop shipping its solid fuel to China directly from February and instead sell it through auctions.
Mongolia will also use border price, instead of pithead price, to sell its coal starting Wednesday, meaning that the new price will include the transportation cost between its coal mines and borders.
The Mongolian government made the decisions after thousands of people stormed the country’s capital in December to protest against alleged corruption in the coal industry.
China’s foreign ministry has not yet commented on the matter. Several Chinese columnists criticized Mongolia for breaking an agreement with China, which bought 84% of Mongolian coal last year.
In early January, China Energy Investment Corp, a state-owned company, placed an order to import coal from Australia, the world’s second-largest coal exporter after Indonesia, Reuters reported.
Source: Asia Times
BUSINESS
LAW: MEDICAL ADVERTISING IN MONGOLIA
Manufacturing, import, export, storage, sale, monitoring, distribution and use of medicine for human and veterinary use, including conventional medicine, bio preparations, diagnostics (hereinafter the "Medicine"), medical devices, and biologically active products are regulated by the Law of Mongolia on Medicines and Medical Devices. The Law also provides a few broad limitations on the advertising of medicines and biologically active products. In addition to this regulation, the Law of Mongolia on Advertisement governs advertising in health sector.
With the regulations being too general, there have been a number of instances of illegal advertising in the health sector, as well as cases where consumers have incurred damage.
Recently, a law on the revision of the Law on Medicines and Medical Devices that outlines provisions such as updating the legal framework for the state regulation and inspection system of human and animal medicine and medical supplies is said to be in the course of developing by the competent authority.
Source: Mondaq.com
OYU TOLGOI RELEASES Q4 2022 PERFORMANCE RESULTS
- Prioritised the safety and well-being of employees, contractors and local communities
- Maintained the highest water use efficiency per tonne of ore production compared to similar global operations
- Paid US$314 million in taxes, fees and other payments in 2022
- Completed the firing of 19 drawbells in the Underground mine
- Awarded the Best Enterprise of the year – Grand Prix
- Met the annual production guidance for copper and gold in concentrate
- Accelerated the preparation for the underground mine production
In 2022, Oyu Tolgoi continued to make a significant contribution to the Mongolian economy, delivering superior results from our surface operations and progressing the underground mine development following the undercut commencement in January 2022.
At the end of the year, the Mongolian National Chamber of Commerce and Industry announced the outstanding companies, organisations and entrepreneurs contributing to Mongolia’s social and economic development during the annual Entrepreneur-2022 award ceremony, naming Oyu Tolgoi as The Best enterprise of the year – Grand Prix.
Source: Oyu Tolgoi
PARABELLUM FLAGS STRONG RARE EARTH ASSAYS AT MONGOLIAN PROJECT AHEAD OF SCOPING STUDY
Parabellum Resources has flagged strong intersections of up to 4.1 per cent total rare earth oxide (TREO) mineralisation from its 2022 drilling program at the Khotgor project in Mongolia. Notable intersections include:
- 79m at 1.1 per cent REO from a depth of 4m downhole (KH22-64);
- 91m at 1.7 per cent REO, from a depth of 59m, including 40m at 2.5 per cent REO from a depth of 63m (KH22-67);
- 67m at 1.7 per cent REO, including 27m at 2.6 per cent REO from a depth of 177m (KH22-60);
- 13m at 4.1 per cent REO from a depth of 54m downhole (KH22-66);
- 54m at 1.4 per cent REO from a depth of 105m downhole (KH22-68); and
- m at 3.4 per cent REO from a depth of 37m downhole (KH22-70).
The core from three holes is being stored as whole core for future comminution and metallurgical testwork at the assessment of potential feasibility stage of the project, to be undertaken later in 2023. Source: The Australian, Proactive Investors
KT PARTNERS WITH MONGOLIA'S MONNIS GROUP FOR RARE EARTHS
South Korean telecommunications giant KT Corp. announced Wednesday that it has signed a memorandum of understanding with Monnis Group, a Mongolian industrial holding conglomerate, for a joint business venture into the rare earth minerals industry.
This comes after another memorandum previously signed on Jan. 26 between KT and the Mongolian government for the supply of various mineral resources, including rare earth elements.
Following this new agreement, KT is now able to utilize Monnis Group’s licenses related to mineral resource development and mining with which it plans to speed up the steady collection of minerals.
Monnis Group specializes in various fields such as automobiles, mining, heavy equipment, civil engineering, trade and more, raking in an average of 500 billion won ($406 million) in annual revenue.
In particular, it owns a license for mining rare earth elements, making it a key company in mineral resource development and mining in Mongolia, which is home to among the richest deposits of mineral commodities in the world.
Source: The Korea Herald
TMK ENERGY TAKE TOP SPOT IN TAVAN BOGD CAPITAL 2022 GLOBAL PORTFOLIO, UP 52 PCT
As a leading investment broker in Mongolia, Tavan Bogd Capital (TBC) provide Mongolian investors with access to both local and international markets. Their personal investments in the international market have formed a successful portfolio with a return on stocks reaching 1.92% from the beginning of 2023 to 27th January.
This year TBC hosted their inaugural Top Traders event in Ulaanbaatar, Mongolia, showcasing its full portfolio, highlighting its most successful investments for 2022. TBC’s year of investment saw TMK Energy Limited (ASX:TMK) take the top spot with a 52% gain in investment since acquiring the shares.
Through 2022 TBC invested in 15 companies in five international stock exchanges and conducted their own data research internally. For the 500 attendees, the Top Traders event is an invaluable and unique capture of information.
Source: TMK Energy (via LinkedIn)
SILVER ELEPHANT SIGNS AGREEMENT TO SELL 15,000 TONNES OF ULAAN OVOO COAL TO A HONG KONG COAL BUYER BY MARCH END
Silver Elephant Mining Corp. announces that a sales and purchase agreement has been entered between Silver Elephant’s Mongolia subsidiary and a Hong Kong commodity trading and logistics company with significant presence in Mongolia .
Under the SPA, the Seller will supply to the Purchaser 15,000 tonnes of coal (the “Trial Shipment”) from the Company’s Ulaan Ovoo mine. The Seller will deliver the Trial Shipment at the Sukhbaatar rail station in Mongolia (Point of Delivery). The Trial Shipment will then travel southbound to China by rail. The delivery is scheduled to be completed by March 31, 2023.
“After a brief pause for the lunar new year, coal sales and delivery from Silver Elephant’s Ulaan Ovoo mine is resuming in February. Our goal is to achieve steady continued coal sales year-round in 2023, which we expect to be the record year in sales revenue for Ulaan Ovoo.” commented John Lee, CEO of the Company.
Source: Silver Elephant Mining Corp.
See also: Silver Elephant Announces Proposed Extension to 960,000 Warrants
TRAINING ON OPEN E-AUCTION FOR COAL EXPORT HELD
In order to ensure the implementation of the "Regulations of Open Online Trading of Coal for Export," approved by the Resolution No. 466 of the Government of Mongolia dated December 14, 2022, training for coal buyers participating in online trading was co-organized by the Mongolian Stock Exchange, the Financial Regulatory Commission, and Erdenes Tavantolgoi JSC, in which more than 230 foreign and domestic representatives participated.
The training provided information on how to register in the online system, deposit trading funds, participate in auction trading, and organize coal transportation.
The training was organized online, and the opening speech of the training was made by Altai. Kh, the CEO of the Mongolian Stock Exchange, and Ganbat. J Special Plenipotentiary Representative of the Government of "Erdenes Tavantolgoi" JSC, while Khash-Erdene. T, Director of the Business Development Department of the MSE, and Javkhlan. I, the Chief Operating Officer of the MSE, presented information about online trading.
Source: MSE
See also: Training for conducting open online trading for coal export
KHAN BANK SUCCESSFULLY RAISES USD 130 MILLION FROM IFC FOR SUPPORTING MSMES
Khan Bank has received a USD 130 million syndicated loan arranged by the International Finance Corporation (IFC), a member of the World Bank Group, to help accelerate Mongolia’s economic recovery post COVID-19. The funds, from IFC and syndicated from other financial institutions, will be utilized to finance Khan Bank’s on-lending operations to micro, small and medium sized enterprises (MSMEs). At least half of the financing will be exclusively dedicated to supporting productivity, competitiveness, and financial access of women-owned businesses, with the project supported under IFC’s Banking on Women program.This is our sixth long-term debt financing transaction with the IFC, and the largest syndicated deal in terms of size, with respect to supporting MSMEs. Khan Bank has been actively cooperating with the IFC since 2004, in the framework of long-term financing agreements and projects, as well as in trade finance activities. Source: Khan Bank
CALCULATING THE INTRINSIC VALUE OF MONGOLIAN MINING CORPORATION
Key Insights
- Mongolian Mining's estimated fair value is US$2.9 based on 2 Stage Free Cash Flow to Equity
- Current share price of US$3.5 suggests Mongolian Mining is trading close to its fair value
- Industry average of 38% suggests Mongolian Mining's peers are currently trading at a higher premium
Today we will run through one way of estimating the intrinsic value of Mongolian Mining Corporation by projecting its future cash flows and then discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.
Source: SimplyWall.st
THE SECONDARY MARKET FOR "SENDLY BOND" BEGAN
According to the official letter No.: 1/288 of the Chairman of the FRC, dated January 27, 2023, the primary market trading of "Sendly Bond" went successfully and permitted to launch the secondary market trading starting from January 30, 2023, with the symbol BEND-BD-30/07/24-C0039-19.2.
Source: MSE
See also: Trading of Sendly NBFI JSC’s public offering of bonds starts in the primary market
STONEGATE CAPITAL PARTNERS UPDATES COVERAGE ON STEPPE GOLD LTD. 2022 Q3
The full report can be accessed by clicking on the following link: https://stonegateinc.com/reports/STGO_22Q3.pdfCompany Updates
- Flagship projects strarts commercial production: Steppe Gold’s flagship project Altan Tsaagan Ovoo (ATO) is fully constructed and began producing gold and silver in the Spring of 2020. For F22, the Company has updated that they produced 7,150 ounces of gold in 4Q22 to bring total gold production to 33,500 ounces in 2022. This was driven by 958,288 tons mined and 922,051 tons crushed and stacked. Additionally, management has indicated that they have a total recoverable gold inventory from oxide ores at approximately 80,000 ounces.
- ATO property projected to generate positive cash flow: The ATO property is projected to produce strong annual cash flows with annualized production expected to produce ~50,000 oz of gold per annum from the heap leach operation with cash cost per ounce of ~US$550 over the life of the mine. The Company believes this should equate to $40M+ of EBITDA.
Source: ReportableNews.com
JAPAN AIRLINES TO OPERATE CHARTER FLIGHT TO MONGOLIA
Mongolian delegations, headed by Advisor of the Ministry of Environment and Tourism O. Odbayar, are working in Japan.
O. Odbayar, along with P. Bayartsetseg, a Specialist of Tourism policy and Coordination at the Ministry of Environment and Tourism, U. Munkhbat, an Advisor of the Embassy of Mongolia in Japan, in charge of economic issues, and Ts. Baatarsaikhan, a President of the Tavan Bogd Group, met with representatives of relevant departments at “Japan Airlines”, headed by a Sales Executive Director Nakano Hoshiko in Tokyo on January 30.
During the meeting, Ms. Nakano Hoshiko mentioned their plan to operate charter flights to Mongolia in the summer and hold a Mongolia-Japan tourism business forum in April-May to meet and exchange ideas with business representatives of the Mongolian airline industry.
Japanese “Japan Airlines” is going to operate charter flight to Mongolia.
Source: Montsame
MONGOLIAN METALS CORPORATION (MMC) IDENTIFIES NEW TARGETS IN THE KHONGOR COPPER & GOLD DISTRICT - EXPLORATION UPDATE
Mongolian Metals Corporation is pleased to provide an exploration update for its 100% owned Khongor Copper & Gold District in the southwest Gobi Region of Mongolia, including the identification of several new targets, most notably Copper Hill, and strengthening exploration data for existing targets, Tourmaline Pipe, Dush Uul, Del Khaad, Gun Zag, Ulaan Tolgoi, and UST [Figure 1]. The ongoing exploration program in 2022 focused on prospect level detailed structural and geological mapping, geochemical sampling, and interpretation of geophysical, structural, alteration, and bedrock geology data sets in consultation with internationally renowned experts.
Project Overview
MMC’s 37,000 hectare Khongor license area is located in the Middle Devonian Trans Altai Terrane. Several of Mongolia’s most important porphyry gold-copper and copper-molybdenum deposits were discovered in these Middle Devonian island arc terranes, including Oyu Tolgoi, Kharmagtai, Tsagaan and Suvarga. The Khongor License is adjacent to the Khundii Gold District, comprising multiple high-grade gold and base metal prospects, owned and developed by Erdene Resources.
Source: PRWeb.com
SPROTT MONEY PRESENTS: AN INTERVIEW WITH PETER AKERLEY - VIDEO
Host, Craig Hemke sits down with President and CEO at Erdene Resource Development Corp, Peter Akerley to discuss the current mining sector and Mongolia.
Source: Sprott Money (via YouTube)
GOBI FINANCE: BEST NBFI IN MONGOLIA BY GLOBAL BANKING & FINANCE REVIEW - INTERVIEW
–Let’s discuss the changes and progress in developing the NBFI sector in the financial market sector.
–As digital technologies impact society and customers become increasingly technology-savvy, they can quickly draw on ubiquitous, readily available information. As a result, customers are more informed, demand higher transparency related to products and services, and shift their expectations towards more diverse yet personalized offerings. This development is a significant driver of fintech success and explains why Fintech can potentially disrupt the entire financial services industry. As for Mongolia, it has been some time since technology-based products and services entered the market.
Along with the times, artificial intelligence, consumer credit rating/scoring, simplified payment systems, tools, service applications, virtual asset services, and access to capital and cryptocurrency are being introduced to the market. I am continuously inspired by the fact that our industry keeps pace with global development and progress.
Source: Mongolian Economy
GLOBAL AND REGIONAL NEWS
2022 CORRUPTION PERCEPTION INDEX REVEALS NEGLECT OF ANTI-CORRUPTION EFFORTS IN ASIA PACIFIC
The 2022 Corruption Perceptions Index (CPI) released today by Transparency International shows that leaders have ignored anti-corruption efforts, with levels of corruption stagnating across the region for a fourth straight year. The region was home to a number of important diplomatic summits this year, including the G20, but leaders emphasised economic recovery at the expense of corruption and other priorities. To make matters worse, governments maintained – and in some cases expanded restrictions on civic space and basic freedoms imposed during the pandemic, escalating a worrisome trend toward authoritarianism. Ilham Mohamed, Asia Regional Advisor of Transparency International said:“In some of the world’s most populous countries, corruption is worsening and governments are restricting basic rights and freedoms that allow the people to hold those in power accountable. Leaders across Asia Pacific must acknowledge that inclusive growth must come with efforts to curb corruption. With elections coming up across the region in 2023, it’s time for public voices to be heard and governments to recommit to stopping the rot of corruption everywhere.” Source: Transparency International
FED ANNOUNCES SMALLER RATE RISE AS INFLATION COOLS
The US central bank has raised interest rates again as it continues its fight to stabilise prices in the world's largest economy.
The Federal Reserve said it was raising its key rate by 0.25 percentage points.
That marks the smallest increase since last March, after a series of aggressive rate hikes last year.
But officials warned that they did not think they were finished raising rates, despite signs that price increases in the US are slowing.
The bank's moves are closely watched around the world as the US drives a global shift after years of low interest rates that followed the financial crisis.
The Bank of England and European Central Bank are expected to announce their own rate increases on Thursday.
The rate rise announced by the Fed on Wednesday was expected. It increases the bank's benchmark rate to a range of 4.5%-4.75% - the highest since 2007.
Source: BBC, CNBC
See also: U.S. economy posts strong growth in Q4, but with underlying weakness
INDONESIA SEES RECORD COAL EXPORTS OF MORE THAN 500 MLN TONNES IN 2023
Indonesia plans to produce 695 million tonnes of coal this year and sees exports of 518 million tonnes, Energy and Mineral Resources Minister Arifin Tasrif said on Monday, a level that would mean record shipments out of the country.
In 2022 Indonesia produced 687 million tonnes of coal and exported 494 million tonnes, he said.
Production last year was higher than the target of 663 million tonnes despite an export ban at the start of the year that caused some miners to hold back output, as well as heavy rains that disrupted operations.
According to shipping data from consultancy Kpler, Indonesia's exports to India, South Korea, Taiwan and the Philippines all rose last year, while shipments to its biggest market, China, dipped in 2022.
Meanwhile, Indonesia's domestic coal consumption is estimated at 177 million tonnes in 2023, down from 193 million tonnes in 2022.
Source: Reuters
CHINA ECONOMIC ACTIVITY SWINGS BACK TO GROWTH IN JANUARY - OFFICIAL PMI
China's economic activity swung back to growth in January, after a wave of COVID-19 infections passed through the country faster than expected following abandonment of pandemic controls.
Domestic orders and consumption drove output higher, according to the first broad data to show how quickly China is recovering from its COVID reopening wave, but analysts warned that the economy faced persistent weakness in external demand.
The official purchasing managers' index (PMI), which measures manufacturing activity, rose to 50.1 in January from 47.0 in December, the National Bureau of Statistics (NBS) said on Tuesday. Economists in a Reuters poll had predicted the PMI to come in at 48.0. Since the result was above 50.0, it implied growth.
A rebound in non-manufacturing activity was more decisive than expected by economists - but helped by a seasonal surge in spending for the Lunar New Year holiday. That index, which covers services, leapt to 54.4, from 41.6 in December.
Source: Nasdaq, CNBC
GOLD DEMAND SURGED TO AN 11-YEAR HIGH IN 2022 ON ‘COLOSSAL’ CENTRAL BANK BUYING
Gold demand soared to an 11-year high in 2022 on the back of “colossal central bank purchases, aided by vigorous retail investor buying,” according to the World Gold Council.
Annual gold demand jumped 18% to 4,741 tons (excluding over-the-counter or OTC trading) across the year, the largest annual figure since 2011, fueled by record fourth-quarter demand of 1,337 tons.
Key to the surge was a 55-year high of 1,136 tons bought by central banks across the year, the industry-backed group revealed, noting that the majority of these purchases were “unreported.”
This marked a 152% increase from 2021, when central banks bought just 450 tons of gold, and the World Gold Council attributed the spike to geopolitical uncertainty and high inflation.
“Central bank net purchases in Q4 totalled 417t, lifting H2 total buying to 862t. Echoing Q3, data for the final quarter of the year was again a combination of reported purchases and a substantial estimate for unreported buying,” the WGC said.
Source: CNBC
AUSTRALIAN STATE TO SOON FINALISE ORDER FOR MINERS TO BEEF UP COAL SUPPLY
New South Wales is set to finalise an order by mid-February that will require all mining firms in Australia's biggest coal exporting state to reserve as much as 10% of their output for domestic supply. A Department of Planning and Environment spokesperson said the government would issue final directions after talks with miners. "The draft revised directions allow suppliers the option to provide coal from their own production or to strike an agreement from another supplier to meet their obligations under the directions," the spokesperson said. The updated plan, disclosed last week, is designed to keep a lid on coal prices and drive down household power bills. The state last week had planned to issue the expanded order by the end of January, but has faced resistance from miners. The department did not say how many tonnes of coal will be required. Source: Reuters
NEW GLOBAL OIL AND GAS DISCOVERIES IN 2022 DRIVE EXPLORATION TO HIGHEST VALUE CREATION IN OVER A DECADE
The global oil and gas exploration sector had its strongest year in 2022 in more than a decade. In its work to improve portfolios by adding lower-carbon, lower-cost advantaged hydrocarbons, the sector created at least $US33 billion of value and achieved full-cycle returns of 22%, at $US60/barrel Brent prices, according to a recent report from Wood Mackenzie, a Verisk business.
Wood Mackenzie’s ‘Oil and gas exploration: 2022 in review’ report states that exploration well numbers were less than half the numbers during pre-pandemic years, yet the total volume of 20 billion barrels of oil equivalent matched the average annual volumes of 2013-2019.
“2022 was a standout year for exploration,” said Julie Wilson, Director of global exploration research at Wood Mackenzie. “Volumes were good, but not stellar. However, explorers were able to drive very high value through strategic selection and focusing on the best and largest prospects. The discoveries bring higher-quality hydrocarbons into companies’ portfolios, allowing them to reduce carbon by displacing less advantaged oil and gas supplies while also meeting the world’s energy needs.”
Source: Wood Mackenzie
GERMAN CHANCELLOR OLAF SCHOLZ ANNOUNCES NEW, EXPANDED COMMODITIES PARTNERSHIP WITH CHILE DURING A TOUR OF SOUTH AMERICA
On his first tour of South America this week, Scholz visited both Argentina and Chile, which sit atop the region's "lithium triangle," the world's largest trove of the ultra-light metal key to making batteries for electric vehicles. In Santiago, he signed a new, expanded commodities partnership aiming at intensifying cooperation in the sector. That will include an annual bilateral forum and state instruments like investment guarantees to promote trade. Given the environmental, labor and social concerns regarding mining - which have sparked anger and thwarted some projects in the sector - Germany's high standards made it an ideal partner, Scholz said. A new act that recently came into force, for example, insists high standards are observed throughout company supply chains. Scholz did not announce any such agreements in Argentina, where investment conditions are considered trickier. Bolivia, also part of the lithium triangle, has been slow to move to production. Source: Reuters
EIGHT NEW MINES OR EXPANSIONS IN BRITISH COLUMBIA WORTH INVESTMENT OF USD 4.9 BILLION
There are currently eight new mines or mine expansions in the queue in B.C. worth a total investment of C$6.6 billion ($4.9bn), according to Premier David Eby, who spoke Monday at the Association of Mineral Exploration (AME) Roundup conference.
Two of those new mines are aiming to be in production in a little over a year from now, and one is unique in that it will be the first mine to be built on Nisga’a Nation treaty land.
The most advanced project is the Ascot Resources Premier Gold mine, located in northwestern B.C. on Nisga’a Nation treaty land. The company recently raised C$200 million to finance its construction, which is now underway. The company is aiming to pour first gold in early 2024.
Next in the queue is the Artemis Gold Inc. Blackwater Gold mine. The company has begun earthworks and expects a Mines Act permit this quarter.
Source: Mining.com
THAILAND'S AUTO INDUSTRY BECOMES A JAPAN-CHINA BATTLEGROUND
Toyota Motor commemorated the 60th anniversary of its operations in Thailand last month with a massive ceremony held at a renovated national convention center. The first Hilux truck, a 1970 Corolla and other Toyota models made in the country were on display for the 1,500 guests to see.
"The future of Toyota and Thailand is very bright, and it's only going to get brighter," company President Akio Toyoda declared on stage while introducing Toyota's first electric pickup truck for emerging markets, to be produced in Thailand. "Personally, I have always considered Thailand my 'home away from home.' If I didn't have to live in Japan for my job ... I'd live here!"
His words underlined the deep ties between Japan Inc. and Thailand, a market Toyota and some of Japan's other big corporations have come to see as part of their own backyard. No other nationality has invested so much in Thailand.
Source: Nikkei Asia
ASEAN STARTUP FUNDRAISING SLUMPED IN 2022 BUT STILL UP FROM 2019
Southeast Asian startup fundraising slowed in 2022 with deal value contracting by about a third from a year earlier as worsening economic conditions dampened both the prospects and valuations of young tech companies seeking growth capital.
The weak result comes after an investing frenzy in 2021 when total deal value soared to a record $25.75 billion. That year some of the region's biggest startups like Singapore's Grab went public before aggressive rate hikes brought a deep sell-off and market correction for loss-making tech companies.
With Russia's ongoing invasion of Ukraine, other geopolitical woes and inflation taking big economic tolls, investors are insisting on a balance of growth and free cash flow. This has experts speculating that Southeast Asian tech startups could find themselves caught up in a wave of consolidation.
In 2022, the region's startups raised a total of $17.79 billion in equity and debt funding, down 31% from the previous year…
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>S 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
A family friendly workplace or employer is one whose policies and practices make it possible for employees and/or workers to more easily achieving work-life balance, and to fulfil both their work and family obligations. These policies may include, but are not limited to, childcare, breastfeeding rooms, flexible work arrangements, paid leave, safe transport, parenting education and so on. In Mongolia and various other countries, authorities have enforced kindergarten- and school closure policies as part of the preparedness and response to contain the COVID-19 epidemic. In addition to the impacts on children’s education, there are concerns about children’s protection and well-being as children are left alone or without adequate care as many parents still need to go to work. COVID-19 may also have negative effects on mental health and wellbeing of patients (if any), caregivers, children and adolescents and the public, such as experiencing fear of the consequences of infection with a new virus, and triggering stigma. Those placed in quarantine (or self-isolated) may experience boredom, loneliness, and anger. By promoting flexible working arrangements such as adjusted working hours, working from home and/or support childcare, your employees will be in better position to address any childcare challenges and not be distracted by concerns about their children’s safety and wellbeing at home. Click here to view in English. Click here to view in Mongolian.
UNICEF: CALL FOR ACTIONS OF THE PRIVATE SECTOR TO REDUCE CHILDREN’S EXPOSURE TO AIR POLLUTION IN UB
Too many children are at risk of dying in UB due to air pollution each year. In addition to longer-term measures to reduce overall levels of air pollution in Ulaanbaatar, UNICEF recommends that companies address some of their CSR activities in the following ways:
- Provision of air purifiers to kindergartens, schools and clinics. Children spend a considerable amount of their time in school. Air purification systems are demonstrated to be effective in reducing air pollution levels within a home or classroom. Recent innovations have made these more affordable, durable and effective. Every classroom should have an air purifier.
- Provision of electric heaters to kindergartens, schools and clinics. Electric heaters can help to reduce ambient air pollution. Reducing financial barriers to access can also help improve use of electric heaters.
- Improved construction and insulation in kindergartens, schools and clinics. This can help reduce the amount of air pollution that enters facilities where children spend most of their time. It also saves considerably on heating costs. Studies show some improvements can decrease air exchange by up to 40%.
- Provision of air pollution monitoring devices in kindergartens, schools and clinics. Monitoring devices are often a first, major step to understanding one’s own risk to air pollution. It can not only inform improved practices to reduce exposure, but it is also an effective mechanism for communities to better understand what is causing air pollution, and when it is particularly harmful.
- Improved awareness and behaviour-change campaigns. Low awareness amongst communities about the impacts of air pollution on child health and how to respond is a key barrier to addressing the air pollution crisis. There is a need to influence policymakers, relevant government institutions, businesses, CSOs, development partners, and the general public (including families and children) about the risks that air pollution poses to their health, as well as provide guidance and recommendations on various ways to address some of the most immediate threats.
These actions will reduce children’s exposure to air pollution, safeguarding them from the worst impacts at the same time as building momentum and creating an enabling environment for longer plans that reduce air pollution. UNICEF will provide guidance on these recommendations where possible. UNICEF can also help facilitate connections between actors, agencies and institutions, including schools/ clinics where children are particularly affected. However, in order to maximize efficiency, these projects should be planned, developed, implemented and monitored by the private sector company involved. Nor will any funding go through UNICEF. This helps enhance accountability, and allows private sector donors to be more actively involved in the solution of directly supporting children in UB to breathe cleaner, healthier air.
For more information and guidance, please contact UNICEF for (Amy Wickham, This email address is being protected from spambots. You need JavaScript enabled to view it.; and Sunjidmaa Jamba, This email address is being protected from spambots. You need JavaScript enabled to view it.)
BCM GUIDELINE FOR COMPANIES TO COMBAT AIR POLLUTION
Purpose: This Guideline document is to help CEOs and business leaders quickly identify possible actions they can implement in their organizations against air pollution.
Resources for information on Air Pollution
Specific ACTIONS that companies can take NOW:
Educate employees about air pollution; invite guest speakers; encourage employees to share information with friends and family; discuss possible solutions with employees
- Possible topics: damages and causes of air pollution, protection measures, energy consumption & efficiency; indoor air quality (smoking indoors); breastfeeding & healthy diet; vehicle idling; vehicle maintenance;
Work environment:
- Improve energy efficiency in building/office to reduce energy consumption;
- Plant & maintain trees; install air cleansing plants in the office;
- Install HEPA air filter and air purifiers to tackle indoor air pollution (For an affordable solution, visit http://smartairfilters.com/mn/en/;
- Install monitoring devices;
- Smart Air Mongolia masks
Work activities:
- Ensure company vehicles are well maintained to reduce pollution emissions;
- Drivers/employees instructed to not idle & to turn off vehicle engine when not moving;
- Implement carpooling activities;
- In polluted air, ensure employees wear pollution masks;
Social responsibility:
- Focus CSR (corporate social responsibility) initiatives to tackle air pollution
- Tackle air pollution in UB: UNICEF recommends focusing on areas where children are especially affected, and where urgent interventions need to be put in place to protect them as soon as possible. These include the provision of air filtration systems and electric heaters in kindergartens and schools in some of the worst-affected regions. For more information and guidance, please contact UNICEF for (Nicholas Rees, This email address is being protected from spambots. You need JavaScript enabled to view it.; and Sunjidmaa, This email address is being protected from spambots. You need JavaScript enabled to view it.);
- Run marketing/PR campaigns & contests that raise awareness about air pollution.
List of distributors for pollution masks:
- BRB – 70119967, 99658555
- BOX shop – 99062387, 75557007, 90878111 – Facebook: RZ утааны маск
- CATD LLC – 11327308, 99114346
- Mmarket – 75758001 – Facebook: Утааны Маск
- MONOS Pharmacy – 99190858
- Seven summits – 11317923
- 3M Mongolia Premier Service - 9400-3088, 9910-3335
- Utaanii Mask – 99906643 – Facebook: Утааны маск + Агаар шүүгч
- Cycling World Mongolia LLC authorized distributor of RESPRO pollution masks- 77110444
MEMBER-TO-MEMBER SPECIAL OFFERS & BENEFITS:
- Orchuulga 24 is providing a 15% discount on written translation services to BCM Members - Ombol LLC is offering free Hepatitis C medication to employees of BCM member organizations, provided that the individual pays into state health insurance. ECONOMIC INDICATORS
HISTORIC ANNUAL INFLATION
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
Year 2014 *11.0% [source: NSOM]
Year 2015 *1.9% [source: NSOM]
Year 2016 *1.1% [source: NSOM]
Year 2017 *6.4% [source: NSOM]
Year 2018 *8.1% [source: NSOM]
Year 2019 *5.2% [source: NSOM]
Year 2020 *2.3% [source: NSOM]
Year 2019 *13.4% [source: NSOM]
*Year-over-year (y-o-y), nationwide
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 - 9.75% [source: IMF]
March 11, 2009 - 14.00% [source: IMF]
May 12, 2009 - 12.75% [source: IMF]
June 12, 2009 - 11.50% [source: IMF]
September 30, 2009 - 10.00% [source: IMF]
May 12, 2010 - 11.00% [source: IMF]
April 28, 2011 - 11.50% [source: IMF]
August 25, 2011 - 11.75% [source: IMF]
October 25, 2011 - 12.25% [source: IMF]
March 19, 2012 - 12.75% [source: Mongol Bank]
April 18, 2012 - 13.25% [source: Mongol Bank]
January 25, 2013 - 12.50% [source: Mongol Bank]
April 8, 2013 - 11.50% [source: Mongol Bank]
June 25, 2013 - 10.50% [source: Mongol Bank]
July 30, 2014 - 12.00% [source: Mongol Bank]
January 14, 2015 - 13.00% [source: Mongol Bank]
January 14, 2016 - 12.00% [source: Mongol Bank]
May 6, 2016 - 10.50% [source: Mongol Bank]
August 18, 2016 - 15.00% [source: Mongol Bank]
December 19, 2016 - 14.00% [source: Mongol Bank]
June 15, 2017 - 12.00% [source: Mongol Bank]
December 22, 2017 - 11.00% [source: Mongol Bank]
March 23, 2018 - 10.00% [source: Mongol Bank]
November 27, 2018 - 11.00% [source: Mongol Bank]
March 11, 2019 - 10.00% [source: Mongol Bank]
April 13, 2020 - 9.00% [source: Mongol Bank]
September 14, 2020 - 8.00% [source: Mongol Bank]
November 11, 2020 - 6.00% [source: Mongol Bank]
January 1, 2022 - 6.50% [source: Mongol Bank]
SOVEREIGN CREDIT RATING
| Moody’s |
Fitch |
S&P |
B3 – stable – 16 Mar 2021
B3 – negative – 8 May 2020
B3 – stable – 18 Jan 2018
Caa1 – stable – 30 Mar 2017
Caa1 – neg. watch – 15 Feb 2017
Caa1 – stable – 18 Nov 2016 |
B – stable – 9 Jul 2018
B- – positive – 17 Nov 2017
B- – stable – 22 Nov 2016
B – stable – 24 Nov 2015
B+ – negative – 13 Dec 2013 |
B – stable – 10 Nov 2018
B- – stable – 19 Aug 2016
B – stable – 03 Nov 2015
B+ – neg. – 29 Apr 2015 |
CURRENCY RATES – 2 February 2023
| Currency |
|
|
Rate |
| U.S. dollar |
USD |
|
3,494.19 |
| Euro |
EUR |
|
3,841.51 |
| Japanese yen |
JPY |
|
27.16 |
| British pound |
GBP |
|
4,323.36 |
| Hong Kong Dollar |
HKD |
|
445.52 |
| Russian ruble |
RUB |
|
49.91 |
| Chinese yuan |
CNY |
|
519.75 |
| South Korean won |
KRW |
|
2.86 |
|
