Thursday, July 24, 2014

Mongolia Brief July 23, 2014 Part II

Canadian Foreign Affairs Minister Visits to Further Cooperation
July 23 (Mongolian Economy) The Foreign Affairs Minister of Canada, John Russell Baird, is paying an official visit to Mongolia for the first time today under the invitation of L. Bold, the Foreign Affairs Minister of Mongolia.
His stay will last for two days. The purpose of Mr. Russell’s visit is to engage in discussions to further talk about possible cooperation in many sectors including bilateral partnership, foreign trade, investment, mining, agriculture, education and health.
His stay hopes to establish a higher level of relations between Canada and Mongolia through collaboration in almost every sector. The next two days will include talks about bilateral cooperation not only at the regional level, but at the world stage as well. On the last day of Mr. Russell’s stay, both parties will sign the related contracts and a cooperation announcement to move forward in these plans. 

Business Forum of Mongolia and China Expanding Mongolian Businesses
July 23 (Mongolian Economy) The Business Forum of Mongolia and China will take place in Ulaanbaatar on July 31, 2014. As the Mongolian economy continues to struggle, Mongolia is trying to tighten its relations with China through economic partnership and political contracts and dialogues. An example of this is next month’s official visit of Xi Jinping, the leader of the People’s Republic of China. Preceding his visit, Ulaanbaatar plans to host this business forum to discuss important matters.
Since China is growing rapidly, the Business Forum of Mongolia and China aims to help Mongolian businesses expand in China in addition to bringing more Chinese companies to Mongolia. The National Chamber of Industry and Trade, the City Government of Ulaanbaatar, the Embassy of the People’s Republic of China of Mongolia, and Liaoning Provincial People’s Association for Friendship with Foreign Countries are the main organizers of this event. 
This meeting is expecting over 100 representatives to come and participate. Many of these members will come from the Liaoning Province of the People’s Republic of China as well as several Mongolian organizations such as the Ulaanbaatar City Governing Office and the Mongolian Business Council.  

Mining Sector saw 58.63% implementation rate on time
July 23 (Mongolian Economy) Today, the Mining Ministry introduced its half-year statistics. The mining sector contributed to 18.5% of Mongolia’s GDP. It also made up 66% of the industrial sector, 83.2% of total exports, 17.5% of the national budget and 81% of foreign direct investment. 
During these past six months, copper concentrate production reached 479.9 thousand tonnes. The production of coal equaled 11.7 million tonnes whereas gold production amounted to 3 tonnes. Fluorspar concentrate reached 159.5 thousand tonnes, iron ore production totaled 2.7 million tonnes, zinc concentrate was 46.8 thousand tonnes and oil production reached 3.6 million barrels. As a result, total production for this sector contributed MNT 481.2 billion to the state budget as tax income. 
This year, 4.1 tonnes of gold were sold to Mongol Bank. This represents a 65.5% increase compared to the same period last year. This is due to the increased transparency in gold trade as well as recent changes made to the Mining Law. 
The mining sector created a plan to export 782.6 thousand tonnes of oil by July 17, however only 488 thousand tonnes were extracted from oil deposits. Of this, 458 thousand tonnes were exported. This means 58.63% of the plan was implemented on time. Since the beginning of the year until July 1, 2014, oil exports supplied MNT 105.4 billion to the state budget.

Economic Partnership Agreement to Draw a New Landscape for Bilateral Economic Cooperation between Mongolia and Japan
July 23 ( The working visit of President of Mongolia Tsakhiagiin Elbegdorj to Japan has started today with President’s address to the Mongolian and Japanese businessmen at the Mongolia-Japan Business Forum, co-hosted with Japan Federation of Economic Organizations, KEIDANREN.
Over 130 businessmen from Mongolia and over 180 businessmen from Japan were present at the Forum. In his address President Elbegdorj noted: “Mongolia maintained close relations with Japan at momentous historical junctures.
For instance, in early years of building the Great Mongol Empire Yuan, Khubilai Khaan sent a letter to the Emperor of Japan; in 1911, an envoy was sent to Japan by the Holy Bogd Gegeen Jebzundamba asking for official recognition of Mongolia’s independence. In early 1990s, the hard years of transition from a socialist to a democratic society, the first President of Mongolia Mr. P. Ochirbat and Prime Minister Mr. D. Byambasuren sent a letter to the Government of Japan asking for an all-around support and assistance. All of these acts testify the sustained and lasting interest of the peoples of Mongolia and Japan for friendship and cooperation.
I express our profound gratitude to Japan and its people for the unwavering support to Mongolia’s democracy since the very start. I earnestly thank Japan for not only recognizing Mongolia’s independence, but also for its strenuous support in our efforts to have Mongolia’s democracy recognized by other countries and international organizations in Asia and the Pacific and enrolled in the latters’ membership. Mongolian people’s wisdom teaches to always remember and appreciate the good others do to you. Mongolians will never forget your helping hand, your presence at the moments of hardship. There is one very special feature in the help and assistance of the people of Japan. That is, Japan’s aid and support have always been timely, relevant and apt.
We do always remember with warmth and gratitude that these were the people of Japan who stretched their arms of help when Mongolia was about to freeze when our power stations ailed and stopped; when the public transportation in Ulaanbaatar came to sit idle, when our fire and first aid machines went out of order, when our children had not enough schools and kindergartens to attend.
This year sees the end of grant aid from Japan to Mongolia. From now on our two countries are entering a new era of mutually beneficial cooperation. The money the Japanese taxpayers had been giving the Mongolian people were instrumental and vital in overcoming the difficulties and challenges of development. Mongolia, which was like a just-born foal in 1990, has grown up and matured today. In the past few years our GDP has grown several-fold. The engine of our economic growth – the private sector – has firmly stood up on its legs. The time has come now to advance our bilateral economic relations to a new level, and it is precisely within these premises that we are meeting in Tokyo today.
Although Mongolia and Japan have been continuously fostering bilateral relations, the scope of the cooperation has been very narrow and limited to merely a handful of companies. The bilateral trade turnover comprises only some 100 million USD. Japanese FDI to Mongolia barely reaches half a billion USD”. President Elbegdorj emphasized the need to reinvigorate the bilateral relations between the two countries, and dramatically, during the visit of the President of Mongolia to Japan in 2010. In his speech at the Parliament of Japan in 2010, President Elbegdorj noted:”The time has come, let’s wake up”. “I wish to repeat those words today. We now have all preconditions set for translating into reality those words. We have agreed to establish an Economic Partnership Agreement. I am delighted to inform you that Prime Minister Abe and I will sign tonight a Joint Statement affirming our agreement to establish the Economic Partnership Agreement” – said President to the audience at the Mongolia-Japan Business Forum.
The two countries have been able to reach an agreement to establish the EPA after 4 years of talks. The EPA provides the legal basis and environment to boost bilateral economic cooperation. It draws a dramatically renewed landscape for successful and mutually beneficial economic cooperation between Mongolia and Japan.
“Let us study together, produce together, and market together. We have reached an agreement with our Japanese counterparts that our governments support the efforts of our private sectors to implement this call. Mongolia is a uniquely situated country. We border with two countries with the largest population and with the largest territory. Developing cooperation with Mongolia is consonant with the aspiration to reach out to these two huge markets together” – highlighted President Elbegdorj.

Mongolia-Japan Business Forum Takes Place in Tokyo
July 23 ( In the framework of the official visit of the President of Mongolia Ts.Elbegdorj to Japan, the Mongolia-Japan Business Forum and the Introductory Business Meeting between Mongolia-Japan businessmen have held successfully on July 22, 2014 in Tokyo, Japan.
The President of Mongolia Ts.Elbegdorj have attended in the Mongolia-Japan Business Forum and made a speech; at the same time, he provided the answers to the questions arisen from the business people from Japan during this event.
Elsewhere, the Minister of the Cabinet Office of the Government of Mongolia Ch.Saikhanbileg, the Governor of the Bank of Mongolia N.Zoljargal, the Deputy Minister of the Ministry of Economic Development O.Chuluunbat, the State Secretary of the Ministry of Mineral Resources R.Jigjid, the State Secretary of the Ministry of Energy D.Delgertsogt, the Chairman of the Invest Mongolia Agency S.Javkhlanbaatar have made noticeable introductory presentation regarding the investment environment of Mongolia, the ongoing processes and the further action plans, projects and programs to the business people of Japan.
The Mongolia-Japan Business Forum was co-hosted with the Japan Business Federation (KEIDANREN) which coordinates over 1,300 reputable Japanese companies and organizations in its active operation; at the same time, the Introductory Business Meeting between Mongolia-Japan businessmen was jointly organized by the Japan External Trade Organization (JETRO) along with the Invest Mongolia Agency. The businessmen were very keen on the Mongolia-Japan Economic Partnership Agreement (EPA) and they highlighted that the intensifying economic partnership between two countries will surely facilitate very fruitful investment and trade opportunities in the coming future.
During this event, the Invest Mongolia Agency has informed that the TDB Trade and Development Bank of Mongolia and the NIB National Investment Bank of Mongolia are going to settle their Representative Offices in Japan.

Minister Sh.Tuvdendorj Receives Ambassador Extraordinary and Plenipotentiary of Italian Republic to
July 23 ( The Minister of Industry and Agriculture and the Head of Mongolia part of the Italy-Mongolia Intergovernmental Committee, Mr. Sh.Tuvdendorj has received the Ambassador Extraordinary and Plenipotentiary of the Italian Republic to Mongolia, Mr. Alberto Bradanini on July 22nd respectively.
The Italy-Mongolia cooperation in the industrial sector has been noticeably developing in recent years in terms of intensifying the market penetration of the world-known Italian industrial brands and technological products into emerging Mongolia market under the leveraged financial support from the fund of Chinggis and Samurai Bonds through the means of strategic financial stringency with supportive guarantees from the Government of the Italian Republic.
During this meeting, Minister Sh.Tuvdendorj put forward a proposal to Mr. Alberto Bradinini to jointly investigate industrial sector-oriented future opportunities to increase direct investments through the Intergovernmental Partnership Agreements as well as to implement equipment leasing projects with possible financial supports from the Italian investment companies under the risk insurances of the Italian Credit Insurance Group SACE for 20-30 years on long-term basis.
Elsewhere, the Minister for Industry and Agriculture also put another proposal for implementing a project through the Intergovernmental levels to marketthe Italian cutting-edge advanced technologies to Mongolian industrial sector by the professional preparatory trainings for specializing highly skillful and competent personnel in order to conduct branding and processing the Mongolian cashmere, wool, fur and knitwear products with highest possible-internationally acceptable standards to the world market.
Ambassador Alberto Bradanini has warmly accepted all the proposals and noted that he will persistently follow up all the plans and initiatives arisen from the Ministry of Industry and Agriculture of Mongolia and will focus on making it real by any possible means.
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