BCM NewsWire 778 – 14 April 2023

 
NewsWire

Issue 778 –  14 April 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

• Foreign trade turnover up over 55 pct in Q1

• China-Mongolia border port sees surging cargo, passenger volumes in Q1

• Mongolia exports almost 6 Mt coal to China in Mar

• Foreigners Can Obtain Residence Permit Inquiries Online

• Mongolia iron ore exports surge 111.7 pct on yr

• Chambers of Commerce and Industry of Mongolia, China, and Russia to hold Economic Forum

• Tourists generated income worth 60 million USD to capital’s budget

• Construction and Demolition Waste Recycling Plant to be Completed in 2024

• Number of stockholders in Mongolia reaches 2.4 million

• Mongolians' journey towards mining mastery - Editorial

Politics

• Minister of Agriculture and Food Sovereignty of France Pays Visit

• Two parliamentary election bills submitted

• The Government asks for feedback from business owners

• The government is to extend the period of the special regime imposed on Erdenes Tavan Tolgoi for six months

• Negotiations underway on China-Mongolia-Russia pipeline

• SCO Secretary-General’s visit to Mongolia

• PM: Let's define the leading products and services for non-mining exports and improve the legal framework

• Number of civil servants on the rise

• LehmanLaw: Adopting a Mongolian Child

• Najia Hashmi: Politics is where women need to show their strength - Interview

• Lack of transparency to amend the law on investment - Editorial

• Scholarship misdistribution will not stop unless the selection process is conducted transparently - Editorial

• Defacto Review, April 9 - Video

• Mongolia's mineral resources sector has huge potential, but proper regulations need to be in place to attract investment - Editorial

• Explaining Democratic Mongolia’s Strong Ties With Russia and China - Editorial

Business

• New Mongolian e-business platform to make it easier to start and grow a business

• Korea Coal Corp. to sell Mongolian mine amid energy resource boom

• Primary market distribution plan of Khan Bank

• Korean customs to support SME’s export

• Khutul Cement & Lime JSC workers strike against director

• Erdene Commences Drilling at the Zuun Mod Molybdenum-Copper Porphyry Project

• Xanadu eyes resource update at Mongolian copper project

• Talon Energy partner TMK Energy kicks off pilot well drilling in Mongolia

• Mongolian Mining Q1 raw coal output rises 35 pct QoQ

• UB to host ‘World Grand Prix’ of 3x3 basketball

• APU Company: building a global empire

Global and Regional Trends

• ADB readies USD 15bn in climate financing for emerging Asia: president

• Federal Reserve sees "mild recession" later this year

• IMF cuts GDP forecasts, says global economy heading for weakest growth since 1990

• China's exports rise unexpectedly, but economists warn of weakness ahead

• World Bank raises growth forecast for East Asia, says banking sector is sound despite global stress

• Lithium price free fall wipes out gains since November 2021

• IFC lends Morocco's state-owned OCP 110 million USD to build four solar plants

• Chile to present large lithium investment plan for 2025-2030 this month -minister

BCM Updates

• BCM Quarterly Report, Q1 2023

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

• 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

Sponsors:

ECONOMY

FOREIGN TRADE TURNOVER UP OVER 55 PCT IN Q1

Mongolia's foreign trade turnover increased by 57 percent year on year to 5.7 billion U.S. dollars in the first quarter of 2023, Mongolian Customs General Administration said on Friday.
Mongolia registered a foreign trade surplus of about 1.8 billion dollars in the first quarter, mainly due to a significant increase in the exports of mining products, it said.
China, Switzerland and South Korea were the top three export destinations for Mongolia during the first quarter, accounting for over 97 percent of its total exports, it added.

Source: Xinhua

CHINA-MONGOLIA BORDER PORT SEES SURGING CARGO, PASSENGER VOLUMES IN Q1

Erenhot, the largest land port on the China-Mongolia border, registered robust year-on-year growth in its import and export cargo volume in the first quarter of 2023, according to the local frontier inspection department.
In the first quarter, the port in north China's Inner Mongolia Autonomous Region handled an import and export cargo throughput of 4.58 million tonnes, a year-on-year increase of 72.3 percent.
Among them, the railway import and export cargo throughput neared 4.22 million tonnes, up 64.9 percent year on year, and the highway throughput totaled 369,000 tonnes, a surge of 250.1 percent.
During the same period, the port handled 156,000 exits and entries. "The average daily number of inbound and outbound visits totaled over 3,600, an increase from 800 in January, when China optimized its immigration administration policies and measures," said Liao Changhao, an official of the local frontier inspection department.

Source: Xinhua

MONGOLIA EXPORTS ALMOST 6 MT COAL TO CHINA IN MAR

Mongolia's coal exports totaled 13.78 million tonnes during January-March 2023, surging 11.26 million tonnes or 446.17% year on year, showed data from the Mongolian Customs General Administration (MCGA).
The export amounts totaled $2.24 billion during the first three months, jumping 232.16% year on year.
MCGA didn't release the specific figure for March, and Sxcoal calculated the shipments at 5.95 million tonnes based on the overall exports published by the administration.
The volume surged 384.97% or 4.72 million tonnes year on year and increased 38.24% or 1.64 million tonnes month on month, data showed.
In March, the export amounts totaled $975 million, with the average price calculated at $164.05/t, down $120.7/t year on year but up $0.59/t month on month.
Mongolia exported 13.49 million tonnes of coal to China over January-March, soaring 476.45% year on year, taking up 98% of the total.

Source: sxcoal.com
See also: Mongolian Gashuunsukhait border port's coal exports hit record 260 Kt
Coal export rose by 2.5 million tons

FOREIGNERS CAN OBTAIN RESIDENCE PERMIT INQUIRIES ONLINE

In connection with the approval of "Procedures for Issuing, Possession, Storage, and Use of Residence Permit for Foreign Citizens and Stateless Persons, and Travel Permit for Stateless Persons," the residence permit card of foreign citizens has been updated.
Specifically, the residence card conforming to international standards and meeting the structure and standards of travel documents with NFC technology, MRZone, QR code, F-register, or non-repeating 13-digit number issued to foreigners, has been issued since April 1.
Also, according to section 1.3 of the Procedure, " A reference for a residence permit can be issued from the Integrated Database  of Visa and Registration of Foreign Citizens to foreign citizens who have obtained a residence permit in Mongolia for official or personal purposes”, it has become possible to receive and use digital inquiries from the page  https://eimmigration.mn.

Source: Montsame

MONGOLIA IRON ORE EXPORTS SURGE 111.7 PCT ON YR

Mongolia exported 1.3 million tonnes of iron ore in January-March, jumping 111.66% or 688,000 tonnes from a year ago, showed latest data from the Mongolian Customs General Administration (MCGA).
The total export value soared 90.53% on the year to $109 million during the first three months, data showed.
China was the only destination of Mongolian iron ore during the period.
MCGA didn't release the specific figure for last month, yet Sxcoal calculated the exports at 475,700 tonnes based on the overall exports published by the customs authority, up 54.79% year on year and 1.67% on the month.
The iron ore exports amounted to $44.42 million in March, with average price at $93.38/t, down $10.35/t from a year ago but up $9.76/t from a month earlier, data showed.

Source: sxcoal.com

CHAMBERS OF COMMERCE AND INDUSTRY OF MONGOLIA, CHINA, AND RUSSIA TO HOLD ECONOMIC FORUM

The Russian Federation is working to resolve the customs tax relief for Mongolian products including leather, wool, cashmere, meat and meat products that meet the standards. Trade Representative of the Russian Federation in Mongolia Maksim Vasiliev spoke about it during a meeting with the officials of the Mongolian National Chamber of Commerce and Industry.
The parties exchanged their opinions on the participation of representatives of both sides in the forthcoming XVI Joint Economic Forum of the Chambers of Commerce and Industry of Mongolia, China, and Russia to be held in Ulaanbaatar on June 8-10 of this year.
Relevant officials and enterprises of the Russian Federation have expressed their participation in the "SME Products, Services and Technologies-2023" International Trade Fair, which will be organized during the Economic Conference. Besides, they discussed involving young engineers from Mongolia in the International Technical and Scientific Exhibition of Young Engineers to be held in Krasnodar in April, and…

Source: Montsame

TOURISTS GENERATED INCOME WORTH 60 MILLION USD TO CAPITAL’S BUDGET

Since the beginning of this year, Mongolia received 102,528 tourists, an increase of 36 percent compared to the same period last year.
Winter Festival is one of the many events organized to promote Mongolia’s winter tourism, traditions, heritage, and unique culture. About 10,000 people participated in this event, including 26 tourists from Buryat Republic, Tuvan Republic, Kalmykia, and Inner Mongolia. More than 400 athletes from 21 provinces, 450 from the capital and 500 spectators participated in the competition. Moreover, Eagle Festival organized near Ulaanbaatar attracted 19 eagle hunters and about 8,000 people of which more than 600 were foreign tourists. About 60 percent of these tourists, who came mostly from Russia, Korea, and China, visited Ulaanbaatar and contributed 60 million USD to the Capital city budget.

Source: The UB Post

CONSTRUCTION AND DEMOLITION WASTE RECYCLING PLANT TO BE COMPLETED IN 2024

A new Construction and Demolition Waste (CDW) Recycling Plant and waste landfill are under construction in Ulaanbaatar. The Project, which is being implemented to improve the waste management and recycling practices of Ulaanbaatar city, is financed by the sovereign loan of EBRD.
According to the statistics, Ulaanbaatar city generates about 1.4 million solid waste per year, of which 20-30 percent is construction and demolition waste. The new plant will comprise of landfill facility with a capacity to recycle 150 thousand solid waste a month, an area for crushing and sorting construction and demolition waste, a garage, and an office building. Currently, the construction process is 40%.
J. Sandagsuren, the 1st Deputy Mayor of Ulaanbaatar city, in charge of economy and infrastructure, said, “The Ulaanchuluut landfill is full. So, it will be closed in 2024. As for the new waste landfill, it is expected to facilitate waste collection, transportation, recycling, and disposal services, and improve operational efficiency…”

Source: Montsame

NUMBER OF STOCKHOLDERS IN MONGOLIA REACHES 2.4 MILLION

In 2022, 595 organizations operated in the securities market, and the number of account holders had reached 2.4 million.
The 2022 report of the Financial Regulatory Commission is released and it showed that total securities trading decreased by 2.4 times from last year and reached 59 billion MNT. However, the market value increased by 15.2 percent, while the TOP-20 index decreased by 6,846.1 points.
There were 47 legal entities and 465 individuals trading in precious metals, precious stones and articles made from them operated with a special license and sold precious metals worth of 67 billion MNT and purchased precious metals worth of 700 billion MNT.
Furthermore, information on non-banking financial institutions (NBFIs) was included in the compilation. Last year, 513 NBFIs operated, while the number of its customers decreased by 3.9 percent from the previous year, and 94.2 percent of the all customers were fintech customers.

Source: The UB Post

MONGOLIANS' JOURNEY TOWARDS MINING MASTERY - EDITORIAL

•Mongolians are in the process of recognizing the value an benefits of their natural resources.

•The construction of mining infrastructure that stalled for more than a decade has been completed.

•Mongolia is trying to keep up with the wave or critical minerals.

Mongolia wants to use its natural resources more efficiently and reap greater benefits. To reach this goal, the country needs to recognize the true value and benefits of its natural resources. The process of cognition is in full swing. It is related to governments and their agencies, local authorities, citizens, civil society organizations, and companies. The mining sector has been plagued by corruption, injustice, misunderstandings, political and social divisions, and populist decisions over the past decade. These problems have been hampering the country’s development. But the country is now trying to recognize, understand, and correct their past mistakes a little.

Source: Mining Insight

POLITICS

MINISTER OF AGRICULTURE AND FOOD SOVEREIGNTY OF FRANCE PAYS VISIT

The two Ministers worked towards boosting the cooperation in the following three directions: 

• Bilateral cooperation between the Ministries – livestock identification, genetics, quality marking, and geographical indications (access to the EU markets, increase in farmer’s income,  better information for consumers), coordination and establishment of cooperation between professional institutions (livestock, crop production, forestry), improving a value chain of agricultural products as well as the increasing capacity building of experts, exchange of expertise, technique, and technology, know-how; 

• Bilateral cooperation in the field of Veterinary Services – livestock and animal health, vaccination, exchange of experts, expertise, participation in international events and training courses;

• Business-to-business collaboration – cooperation in both directions: Mongolia – import of high-breed livestock, agricultural, and food products from France; France – import of cashmere for the luxury industry, organic and natural food products (geographically indicated) from Mongolia. French Cooperatives as a model for agricultural production and exports as well as supporting start-up businesses and SMEs.

Source: Montsame

TWO PARLIAMENTARY ELECTION BILLS SUBMITTED

On April 5, a working group established by order No. 45 of the speaker of Parliament of March 7, submitted two draft amendments to the Law on Parliamentary Elections.

Headed by Chairman of the Standing Committee on State Structure N.Enkhbold, the working group consists of parliamentarians T.Dorjkhand, L.Munkhbaatar, S.Odontuya, D.Togtokhsuren and O.Tsogtgerel.

At the request of Chairman of the Democratic Party (DP) caucus in Parliament O.Tsogtgerel to submit a separate bill, they handed over two draft amendments to the law to Speaker of Parliament G.Zandanshatar.

• 50:50 mixed electoral system proposed

• DD suggests 48:28 mixed system

Source: The UB Post

THE GOVERNMENT ASKS FOR FEEDBACK FROM BUSINESS OWNERS

The Government of Mongolia seeks feedback from business owners on issues such as difficulties caused by government organizations, bribery and bureaucracy, ambiguity of the legal environment, and inappropriate regulations.

The policy documents, such as the Government’s Action Program 2020-2024, Vision-2050 Long-Term Development Policy, and the New Revival Policy, have included goals for improving state productivity.

Within the framework of those objectives, the Government of Mongolia is working to optimize the structure, organization, and functions of state administrative institutions. It is also intended to create a system that ensures the participation of civil society, listens to citizens, and cooperates with the private sector.

In addition, the Government is focusing on transferring some government functions to the private sector and NGOs, reducing the number of permits issued by the Government, and creating a business-friendly legal environment.

Therefore, to improve state productivity, the Government attaches importance to listening to the opinions of citizens and businesses regarding the activities of government institutions.

Source: Government of Mongolia

THE GOVERNMENT IS TO EXTEND THE PERIOD OF THE SPECIAL REGIME IMPOSED ON ERDENES TAVAN TOLGOI FOR SIX MONTHS

The cabinet decided to submit the draft resolution to extend the period of the special regime imposed on Erdenes Tavan Tolgoi JSC for six months to the Parliament. On October 26, 2022, the cabinet established a six-month special regime on Erdenes Tavan Tolgoi JSC, appointing the Government representative for the company.
Despite the improvement in the company's financial situation and increased inflow of foreign currency since the establishment of the special regime, the government believes that Erdenes Tavantolgoi JSC should be a company that meets international standards.
During the last six months;
The company mined 10.2 million tons of coal, sold 13.0 million tons of coal, earned 4.3 trillion MNT, and paid 1.5 trillion in taxes to the state budget.
Erdenes Mongol LLC sold 416,000 tons of coal for USD 53.9 million in seven trades through the Mongolian Stock Exchange, increasing the company's income by 20.9 million US dollars.

Source: Mining Insight

NEGOTIATIONS UNDERWAY ON CHINA-MONGOLIA-RUSSIA PIPELINE

Chinese and Russian companies are now actively negotiating on a new China-Mongolia-Russia natural gas pipeline project, the National Energy Administration said on Wednesday.

China will continue to support companies in carrying out research and consultations in accordance with commercial principles, said Zhang Jianhua, head of the NEA, at a news conference in Beijing.

The project is designed to carry 50 billion cubic meters of gas from Russia to China per year upon completion, which will bring Russia's annual gas supply to China to 100 billion per year according to Gazprom, a Russian state-owned energy enterprise and one of the project's undertakers.

Zhang said energy is the foundation of pragmatic cooperation between China and Russia, adding the two will build a closer energy partnership, support companies from both sides to promote cooperation in various fields of energy, maintain the stability of the supply chain in the energy sector and jointly contribute to the stable development of the global energy industry.

Source: China Daily

SCO SECRETARY-GENERAL’S VISIT TO MONGOLIA

On 10-12 April 2023, SCO Secretary-General Zhang Ming visited Ulaanbaatar at the invitation of Foreign Minister of Mongolia Batmunkh Battsetseg.

Zhang Ming met with President of Mongolia Ukhnaagiin Khurelsukh and Foreign Minister Batmunkh Battsetseg, exchanged views with Deputy Foreign Minister Gombosuren Amartuvshin and attended an international analytical conference on current issues and the SCO outlook, which was organised by the National University of Mongolia jointly with respected analytical centres.

He pointed out that Mongolia had been contributing to various SCO events since 2004, when Mongolia became an observer state. In the current complicated and volatile international situation, Mongolia intends to comprehensively use its geographical advantages to take part in a wide range of practical cooperation spheres within the framework of the SCO, such as agriculture, energy, transport and infrastructure, in order to contribute to the development of the SCO region.

Source: SCO, Montsame

PM: LET'S DEFINE THE LEADING PRODUCTS AND SERVICES FOR NON-MINING EXPORTS AND IMPROVE THE LEGAL FRAMEWORK

As part of his series of meetings held every Monday morning, the Prime Minister met with the representatives of producers and exporters of non-mining products, the ones that create the most jobs, elaborating on the government's policy to support the businesses and discussing the economic situation in the country.

The meeting brought together representatives of companies that produce dairy products, meat, and meat products, wool and cashmere, leather, cosmetics, medicine, and pharmaceutical products. Ch. Khurelbaatar, Minister of Economy and Development, and Kh. Bolorchuluun, Minister of Food, Agriculture, and Light Industry, participated in the meeting.

The prime minister emphasized that while the share of the non-mining products in the total export is small, its contribution to the economy is high. The foreign trade balance of Mongolia was USD 1 billion in profit, which is a 7.3 times increase from the same period of the previous year, the Prime Minister said, noting that we can improve this achievement by working together.

Source: Government of Mongolia

NUMBER OF CIVIL SERVANTS ON THE RISE

The number of civil servants has reached a historical high, and the share of the total population is 6.68 percent. This is an increase of 7.8 percent from the same period last year, and it means that 17 percent of the total workforce is working in the public sector. The share of civil servants in the total population was 5.78 percent a decade ago, and now they are 225,200, which is an increase of 16,300 from the previous year. Although the number of government employees has continuously increased during the above period, the number of 16,300 is also an increase that has not been seen in the past 10 years. Except for the increase of 14,100 in 2013 to 2014, the increase in the number of civil servants has fluctuated between 1,000 and 6,500 per year.

Source: The UB Post

LEHMANLAW: ADOPTING A MONGOLIAN CHILD

Lately, our lawyers have been asked a question from a client who would like to adopt a Mongolian child. The process of adopting a Mongolian child by foreign nationals is a quite intricate and it involves multiple steps.
A citizen shall file an application for adopting a child of Mongolian nationality to the appropriate body in Mongolia through their home country’s competent authority. The adoption application from foreign country shall be submitted directly to the governmental central administrative body in charge of population matter of Mongolia.
A child adopter shall meet following requirements:

• A child of Mongolian nationality shall be adopted by a family living together for less than 5 years, or a foreign single woman.

• A foreign citizen below the age of 60.

• A person whose rights of parenthood isn’t restricted or excluded.

• A person who has a full civil capability

• A person without tuberculosis, AIDS, mental disease or alcohol and drug dependency

• A person with no criminal history.

Source: LehmanLaw Mongolia

NAJIA HASHMI: POLITICS IS WHERE WOMEN NEED TO SHOW THEIR STRENGTH - INTERVIEW

The two-day international forum named “Pledge for Equal Representation in Decision-Making” was organized on April 10 and 11 to discuss two main topics. In specific, globally-renowned experts and researchers from Bosnia and Herzegovina, Latvia, the USA, Nepal and Spain as well as representatives of political parties, civil society and media, discussed political party leadership for gender equality and legal reforms to ensure gender equality at the decision-making level. In the context of increasing women’s representation at all levels, they mainly exchanged views on improving the legal environment, strengthening support mechanisms, and especially increasing the role and leadership of political parties. Within this framework, regional electoral policy specialist of the Global Election Project of UNDP Najia Hashmi delved into gender quota regulation in Mongolian elections, women’s political participation and electoral system in the following interview.

Source: The UB Post

LACK OF TRANSPARENCY TO AMEND THE LAW ON INVESTMENT - EDITORIAL

It has been more than two years since the Mongolian government established a working group to draft the renewal of the Mongolian Law on Investment. However, the draft and its progress remain unknown to the public, as only a few points from interviews in 2022 have briefly mentioned about it.
According to the Mongolian Law on Legislation, a renewal of a law is considered to have taken place when the fundamental concept of the law or more than 50 percent of the law is proposed to be changed. This means that the review will have a significant impact on the investment sector in Mongolia. The frequent changes in the legal framework have contributed to the perception of Mongolia as an unstable investment destination. The instability of the legal environment for investment has been a longstanding concern in Mongolia. For example, the 1993 Law on Foreign Investment was amended 10 times, with a total of 110 changes made to 64 clauses of the law. 

Source: The UB Post

SCHOLARSHIP MISDISTRIBUTION WILL NOT STOP UNLESS THE SELECTION PROCESS IS CONDUCTED TRANSPARENTLY - EDITORIAL

Clear example of how people with high positions and, power, have stolen the opportunities of citizens and are still secretly stealing from them is shown by the data of people who illegally studied abroad with loans and grants from the Education Credit Fund.
Some citizens ask, “If the scholarship is open to everyone, why can’t the children of politicians, businessmen, and celebrities get it?”. Of course, they can. It is possible if the student has knowledge and meets the requirements and criteria set by the school and relevant institutions. But then why are the children of people in power and positions mostly getting it? How many people around you have studied with government scholarships? Has information about foreign scholarship selection been transparent and open in the past? Have you heard about it? The answers to these questions may tell you one something. There is factual evidence that the selection of foreign scholarships of the Education Loan Fund is unfair.

Source: The UB Post

DEFACTO REVIEW, APRIL 9 - VIDEO

Highlights of the week:
1. Parliamentary election 2024 will be held in a mixed electoral system
2. Government fight against corruption: Bird and Glass action
3. Business registration: E-platform

Source: Jargal Defacto

MONGOLIA'S MINERAL RESOURCES SECTOR HAS HUGE POTENTIAL, BUT PROPER REGULATIONS NEED TO BE IN PLACE TO ATTRACT INVESTMENT - EDITORIAL

Over the past years, Mongolia has been making efforts to enhance its exploration activities and attract foreign investment in its mineral sector. Therefore, it is crucial to hear from foreign-invested exploration companies that have been operating on a large scale in Mongolia. To that end, Ariuntuya.N from Mining Insight interviewed Sam Spring, the President and CEO of Kincora Copper, a company listed on the stock exchanges of Canada and Australia.
As a foreign-invested exploration company operating on a large scale in Mongolia, we are eager to learn more about the latest developments in "Kincora Copper". To start off the interview, could you please provide us with updates on your projects and activities in Mongolia?
Kincora Copper was formed to undertake, and has been, the most active western group for the last decade undertaking regional pophyry copper exploration in the Southern Gobi. We have applied the first modern district scale exploration in this region…

Source: Mining Insight

EXPLAINING DEMOCRATIC MONGOLIA’S STRONG TIES WITH RUSSIA AND CHINA - EDITORIAL

Chinese President Xi Jinping’s state visit to Moscow in late March and his meeting with Russian President Vladimir Putin shifted the global spotlight to Northeast Asia. In Mongolia, the country’s close proximity to Beijing and Moscow has created unease with the prolonged Russia-Ukraine war and the China-U.S. economic tensions. Despite these geopolitical conundrums, Ulaanbaatar’s foreign policy adheres to its longstanding approach of maintaining strong ties with its geographic neighbors, while actively engaging the “third neighbor” countries.
In the days leading up to the Putin-Xi meeting and throughout the three-day visit, the increasing attention to Northeast Asia stressed the growing importance of Ulaanbaatar’s geopolitical position as a single democratic country sandwiched between two growing authoritarian regimes that are deemed to be anti-Western.
However, to Mongolia, a meeting between the leaders of its neighbors is nothing unusual. In fact, during these high-level meetings, Mongolia seeks economic and cooperation opportunities to strengthen diplomatic and economic trilateral ties.

Source: The Diplomat

BUSINESS

NEW MONGOLIAN E-BUSINESS PLATFORM TO MAKE IT EASIER TO START AND GROW A BUSINESS

The Government of Mongolia has launched a new online platform to enable businesses to easily start up and grow, reducing both waiting times and bureaucracy.
"E-Business" – e-business.mn – was developed by young engineers at the E-Mongolia Academy and launched by the Prime Minister of Mongolia. It marks the next step in the digital transformation of the Mongolian economy.
On average, 1,540 new legal entities are established in Mongolia each month, yet those setting up new businesses often have to visit the state registration office and financial institutions several times before they can get up and running. Once they start trading, businesses in Mongolia have previously faced unnecessary bureaucracy.
E-Business will streamline exchanges between businesses and government agencies and also make it possible to register a business in Mongolia from anywhere in the world. Services that can be accessed via the platform include obtaining a legal entity name, registering a business property list and obtaining an electronic certificate.

Source: PR Newswire, News.mn, Montsame

KOREA COAL CORP. TO SELL MONGOLIAN MINE AMID ENERGY RESOURCE BOOM

Korea Coal Corporation, a South Korean state-owned firm, is preparing to sell its Khotgor Shanaga coal mine in Mongolia, which it acquired in 2010.
The corporation stated on Monday that it is preparing for bids for the sale, seeing this as an opportune time to sort out its Mongolian mines due to the increase in value of international coal and other energy resources.
The mine was Korea Coal Corp's first overseas acquisition since its founding. The firm stated that with the opening of the Asian Highway in Mongolia and improvements in road infrastructure, foreign companies are showing interest in buying stakes in the coal mine.
The total sale value of the Mongolian mine, including the management premium, is estimated to be around 40 billion won ($30 million). The corporation plans to proceed with the sale of its ownership stake through a bid in consultation with domestic shareholders and select a sale underwriter soon.

Source: Korea Economic Daily

PRIMARY MARKET DISTRIBUTION PLAN OF KHAN BANK

"KHAN Bank" LLC’s primary market subscription of shares will be accepted from April 13 to April 19, 2023 through MSE member securities companies.
Up to 85 percent of the shares will be offered to strategic investors, and the remaining 15 percent will be offered to the public at a fixed price method determined in accordance with the "Primary Market Trading Rules" of the Mongolian Stock Exchange.
The underwriter will adhere to the principle of 100% fulfillment of the orders of the issuer's strategic investors, and the shares to be offered to other investors will be distributed according to the following conditions: 
Condition 1: Up to 500,000 MNT if the number of investors is up to 30,000
Condition 2: Up to 300,000 MNT if the number of investors is more than 30,001.
The main underwriter for the IPO of KHAN Bank is "BDSec UTsK" JSC, and the assistant underwriter is "Tavanbogd Capital" LLC.
Click here for the prospectus of the securities.

Source: MSE
See also: The primary market trading of “Khan Bank” LLC will start

KOREAN CUSTOMS TO SUPPORT SME’S EXPORT

The first meeting of the project “Supporting the export of SMEs with the help of customs clearance procedures for temporary processing of goods at home and abroad” was held.
In the mentioned program, the project is jointly implemented by the Association of Trusted Enterprises of Korea, the Dream Customs Service of Korea, the China branch of the United Nations Development Program, the Secretariat of the Greater Tumen Initiative, and the Mongolian Customs.
At the meeting, the customs authorities of the member countries exchanged their experience of implementing the “Procedure for Processing Goods Internally and Abroad” and discussed the possibility of expanding and developing future cooperation. Also, representatives of the Trusted Enterprises Association of Korea and the Customs General Administration discussed the implementation of the “Agreement on mutual recognition of Trusted Entity” concluded between the customs authorities of the two countries. Opinions were exchanged on the further work to be carried out in promoting economic competitiveness by improving the effectiveness of the program.

Source: The UB Post

KHUTUL CEMENT & LIME JSC WORKERS STRIKE AGAINST DIRECTOR

On April 10, Executive Director of “Khutul Cement & Lime” JSC L.Naranbaatar held a press conference
 and gave latest information about the company. Khutul Cement & Lime is a strategically important factory that supplies technological lime to the copper concentrate of “Erdenet Industry” SOE. In the past year the company has been under the management of L.Naranbaatar and he has presented the company’s performance since he took over the management.
He stated that, in 2022, 403,393 tons of cement was produced which is much more than the same period previous year and lime production also increased from the previous year’s production.
In 2022, Khutul Cement & Lime spent 85.5 billion MNT in expenses while they had a profit of 100 billion MNT. After the transition to state ownership in 2022, the net profit became 11.6 billion MNT, which is the first time the company made a profit in the last decade.

Source: The UB Post

ERDENE COMMENCES DRILLING AT THE ZUUN MOD MOLYBDENUM-COPPER PORPHYRY PROJECT

Erdene Resource Development Corporation is pleased to announce the commencement of drilling at its 100% owned Zuun Mod molybdenum-copper porphyry project in southwest Mongolia, located within the Khundii Minerals District, 35 kilometres east of the Bayan Khundii Gold Project.
Quotes from the Company
"We are excited to commence the 2023 drilling program at our Zuun Mod project, one of the largest undeveloped molybdenum-copper deposits in Asia," said Peter Akerley, Erdene's President and CEO. "We see exceptional opportunities to grow the Project as the deposit is open in all directions and there are multiple untested copper and molybdenum prospects within the large Zuun Mod porphyry complex."
"Mongolia's strategic location next to the largest resource consumer, as well as its improving infrastructure should support a robust, long life project that will provide key inputs for the growing high strength steel industry and the green energy transition," continued Mr. Akerley.

Source: Erdene Resource Development Corp.

XANADU EYES RESOURCE UPDATE AT MONGOLIAN COPPER PROJECT

Xanadu Mines has begun a massive 30,000m, four-rig infill diamond drill campaign at its Kharmagtai copper-gold project in Mongolia, with results set to support the company’s upcoming prefeasibility study.
The aim of the exploration program is to update the current open-pit mineral resource areas to an indicated category and deliver a maiden ore reserve estimate for the operation.
Kharmagtai has a current mineral resource estimate identified at a hulking 1.1 billion tonnes for three million tonnes of contained copper and eight million ounces of gold. Based on Xanadu’s scoping study predictions for the first five years of production, Kharmagtai shows a diminutive strip ratio of just 0.9 to 1 and an average milled copper grade of 0.29 per cent and the company expects to produce an average of 37,000 tonnes of copper per year.
Management expects to provide an updated mineral resource before the end of this year while the prefeasibility study is due to be completed during the second half of next year.

Source: The West Australian

TALON ENERGY PARTNER TMK ENERGY KICKS OFF PILOT WELL DRILLING IN MONGOLIA

Talon Energy Ltd welcomes the start of a pilot well drilling program by its partner TMK Energy Ltd at the Gurvantes XXXV CSG Project in the South Gobi Desert in Mongolia.
Primarily funded by the project's 33% owner Talon, the pilot program began with the spudding of the Lucky Fox - 1 (LF-01) pilot production well, which will be the first of three production wells using international drilling contractor, Major Drilling.
Talon elected to enter stage 2 of the farm-in agreement in early December and is paying the first US$3.15 million towards what is budgeted to be around US$3.5 million, with the two companies paying their proportionate share of further costs over and above US$3.15 million.
After the completion of drilling, the pilot well pumps will then be commissioned to initiate a controlled dewatering process, with the first gas breakthrough expected to occur within one to two months after production begins.

Source: Proactive Investors

MONGOLIAN MINING Q1 RAW COAL OUTPUT RISES 35 PCT QOQ

Mongolian Mining Corporation (MMC), a Mongolia-based coking coal producer listed in the Hong Kong Stock Exchange, registered a 35% rise in raw coal production in the first quarter compared with the preceding quarter, the company said in its financial report on April 11.
MMC and its subsidiaries mined 3.87 million tonnes of raw coal during the January-March quarter, representing a 1,182% surge from the year-ago level, data showed.
A total of 3.14 million tonnes of raw coking coal was processed to produce 1.47 million tonnes of washed coking coal during the quarter, a level of which is similar to the previous quarter ended 31 December 2022.
MMC and its subsidiaries sold 1.61 million tonnes of washed coking coal products during the three months, rising 9% from the previous quarter and 343% year on year, data showed.

Source: sxcoal.com

UB TO HOST ‘WORLD GRAND PRIX’ OF 3X3 BASKETBALL

The Governor’s Office of the capital city and Mongolian 3X3 Basketball Association signed a Memorandum of Cooperation. Within the framework of the memorandum, international competitions, trainings and other events will be held in Ulaanbaatar. For example, the “World Grand Prix” tournament of the International Basketball Federation will be held annually under the name “FIBA 3X3 Ulaanbaatar Mayor Challenger”.
International Basketball Association’s “World Grand Prix”, which awards points for Olympics qualifications, will be held on June 16 and 17, 2023 at Sukhbaatar Square.
The top teams of 11 countries will participate in the tournament, and the tournament will be broadcasted live in more than 150 countries.
3X3 basketball is the fastest developing international “Urban” sport. It is a major sports and tourism product that is organized in the most historical and central point of the city, with the rhythm of continuous music.

Source: The UB Post

APU COMPANY: BUILDING A GLOBAL EMPIRE

Erdenebileg Tseveenjav, APU Company’s CEO, is determined to put Mongolia on the global spirits stage. He tells The Spirits Business about mixing traditional elements with cutting-edge distilling methods.
APU Company’s CEO, Erdenebileg Tseveenjav, has been in the spirits industry for a long time. “I have put a lot of effort into making APU Company a leader of the spirits industry in Mongolia, with a portfolio of products up to international standards that can be brought to sophisticated international consumers with pride,” he says.
APU Company is a powerhouse in its homeland. In 2001, 51% of APU Company, the national producer of vodka, beer, and soft drinks, was privatised through a government auction. “We inherited only the brand name and the professional expertise of the staff. The equipment was outdated and, in most cases, required replacing.”
In recent years, US$300 million of investment has been put into renovating APU’s brewery, distillery, and beverage plant, installing state‐of‐the‐art equipment from leading European manufacturers.

Source: The Spirits Business

GLOBAL AND REGIONAL NEWS

ADB READIES USD 15BN IN CLIMATE FINANCING FOR EMERGING ASIA: PRESIDENT

The Asian Development Bank will provide an additional $15 billion in funding for emerging markets to tackle climate change under a new, faster lending model, President Masatsugu Asakawa told Nikkei.
Advanced economies will provide $3 billion in guarantees, enabling the ADB to extend loans worth five times that amount. These will be used for decarbonization projects to cut greenhouse gas emissions and promote growth.
The development bank will call on private-sector banks and others to join the effort to expand investment further. The new lending facility will be announced at the ADB's annual meeting in May.
"The ADB will become a climate bank," Asakawa said.
Demand for capital for climate projects in developing nations is vast, yet there are few lenders to meet it. The Group of 20 major economies have urged multilateral development banks to step up financing.
The ADB's new leveraged climate finance model will be the first time for the bank to use government guarantees in this way.

Source: Nikkei Asia

FEDERAL RESERVE SEES "MILD RECESSION" LATER THIS YEAR

Federal Reserve economists predict that turmoil after the collapse of several banks will cause a "mild recession" later this year, according to minutes of the Fed's March meeting.
That forecast has led Fed officials to envision fewer interest-rate increases this year, out of concern that banks will reduce their lending and weaken the economy. The uncertainty in the banking sector also helped Fed officials coalesce around their decision to raise their key interest rate by just 0.25 percentage point, rather than a half-point, despite signs that inflation was still too hot, the minutes reveal.
The minutes, released Wednesday afternoon, note that the Fed's prediction of a recession depends on how severe the banking industry's troubles prove to be and to what extent they will cause a cutback in lending.
Before the collapse of Silicon Valley Bank, many officials said they had expected to raise rates several more times this year.

Source: CBS News

IMF CUTS GDP FORECASTS, SAYS GLOBAL ECONOMY HEADING FOR WEAKEST GROWTH SINCE 1990

The International Monetary Fund on Tuesday released its weakest global growth expectations for the medium term in more than 30 years.
The Washington, D.C.-based institution said that five years from now, global growth is expected to be around 3% — the lowest medium-term forecast in an IMF World Economic Outlook report since 1990.
“The world economy is not currently expected to return over the medium term to the rates of growth that prevailed before the pandemic,” the fund said in its latest economic outlook.
The weaker growth prospects stem from the progress economies like China and South Korea have made in increasing their living standards, the IMF said, as well as slower global labor force growth and geopolitical fragmentation, such as Brexit and Russia’s invasion of Ukraine.
In the short term, however, the IMF expects global growth of 2.8% this year and 3% in 2024, slightly below the fund’s estimates published in January.

Source: CNBC

CHINA'S EXPORTS RISE UNEXPECTEDLY, BUT ECONOMISTS WARN OF WEAKNESS AHEAD

China's exports unexpectedly surged in March, with officials flagging rising demand for electric vehicles, but analysts cautioned the improvement partly reflects suppliers catching up with unfulfilled orders after last year's COVID-19 disruptions.
Exports in March shot up 14.8% from a year ago, snapping five straight months of declines and stunning economists who predicted a 7.0% fall in a Reuters poll.
But analysts say the jump was more likely related to exporters rushing to fulfil a backlog of orders that had been disrupted by the pandemic in past months, and warned the global demand outlook remained subdued.
"The wave of COVID outbreaks in December and January likely depleted factories' inventories. Now that factories are running at full capacity, they caught up the cumulated orders from the past," said Zhiwei Zhang, chief economist at Pinpoint Asset Management."
"The strong export growth is unlikely to sustain given the weak global macro outlook," he added.

Source: Reuters

WORLD BANK RAISES GROWTH FORECAST FOR EAST ASIA, SAYS BANKING SECTOR IS SOUND DESPITE GLOBAL STRESS

The World Bank expects East Asian and Pacific economies to grow more than it previously estimated, thanks to a sharp rebound in activities in China, noting that the region hasn’t been affected by global banking stresses.
The region is projected to expand by 5.1% in 2023, up from the 4.6% it forecast in October last year, the World Bank said in its April report. The East Asia and Pacific region grew by 3.5% in 2022, it said.
As for China’s economy, the World Bank raised its full-year growth forecasts for 2023 from 4.5% to 5.1%.
“The forecast assumes a pro-growth alignment of public health, regulatory, and macroeconomic policy in China,” it said, adding that a rebound in domestic consumption is expected to put “moderate upward pressure” on inflation, which it expects will rise to 2.6% in 2023 from 2% in 2022.

Source: CNBC

LITHIUM PRICE FREE FALL WIPES OUT GAINS SINCE NOVEMBER 2021

The price of lithium carbonate, the key material for batteries to power electric vehicles, continued in free fall amid weak demand, dipping below the psychological threshold of 200,000 yuan ($29,035) per ton on Wednesday.
The spot price of battery-grade lithium carbonate dropped to 199,000 yuan per ton on Wednesday in China, down 40.9% from the previous month and nearly 60% lower than a year ago, according to data from industry information provider Mysteel.com.
After a searing two-year run, the spot price for lithium has wiped out all its gains since November 2021.
The falling lithium prices coincided with a slowdown of growth in China's EV market as consumer spending was dented after three years of pandemic restrictions and after the expiration of a government subsidy for EV purchases.
Analysts widely predict that the drop in lithium carbonate prices will continue as downstream companies in the industry are still working down inventories.

Source: Nikkei Asia

IFC LENDS MOROCCO'S STATE-OWNED OCP 110 MILLION USD TO BUILD FOUR SOLAR PLANTS

Morocco's state-owned phosphates and fertiliser producer OCP said on Wednesday it signed an agreement with the International Finance Corporation (IFC), the World Bank's investment arm, on a 100 million-euro ($110 million) loan to build four solar plants to power its industrial operations.
The loan is part of an OCP investment plan worth 130 billion dirhams ($12.8 billion) to increase fertiliser production using renewable energy by 2027.
The four solar plants, with an estimated peak capacity of 202 megawatts, will be built in the areas of Benguerir and Khouribga, home to Morocco's largest phosphates reserves, OCP said in a statement.
The company reported record revenue last year of $11.2 billion, up 36%, on the back of high fertiliser prices which accounted for 64% of total sales.
Profit jumped 72.6% to 28 billion dirhams ($2.8 bln) the same year.
Phosphates and their derivatives including fertiliser topped Morocco's exports last year, exceeding the automotive sector.

Source: Reuters

CHILE TO PRESENT LARGE LITHIUM INVESTMENT PLAN FOR 2025-2030 THIS MONTH -MINISTER

Chile’s government will present its long-delayed national lithium policy in April and hopes it will generate significant investment during the second half of the decade, Economy Minister Nicolas Grau said on Tuesday.
Speaking to reporters at a roundtable in Santiago, Grau said the plan deals with “technological transitions we have to make, public institutes that have to be created, the national lithium mining company, what to do in the Atacama salt flats, there are lots of dimensions and that’s why we’ve taken so long.”
The proposed national lithium company, Grau said, is only one of the components of the plan and will require a qualified quorum bill, which could require longer deadlines.
“We believe there are very good reasons to have a national lithium company and we are going to try to convince the opposition,” Grau said, adding that most of the plan’s other aspects could still work without the new company.

Source: Reuters

BCM QUARTERLY REPORT, Q1 2023

The Business Council of Mongolia delivers you its First Edition of the BCM Quarterly Report of 2023. The first edition covers all events organised by the BCM through the months of January - March. The fuller version of the articles can be found in the highlighted "details" part on the report.

PDF:  2023 First Quarterly Report 

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.
 

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

1. 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.
2. 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.
3. 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%.
4. 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.
5. 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.

​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

CURRENCY RATES –  13 April 2023

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