Mongolia Brief July 17, 2014 Part I
Mid-Term
Strategic Partnership Development Program to Establish with Russian Federation
Discussed
July 17
(infomongolia.com) At the Cabinet meeting of Government held on July 16, 2014,
one of the issues discussed was "Mid-Term Strategic Partnership Development
Program" to establish between Mongolia and the Russian Federation.
Following the
revision it was agreed to negotiate with Russian part and exchange opinions on
some issues, after which to re-submit to the Cabinet meeting obliged by Foreign
Minister of Mongolia L.Bold.
Within the
scope of this Program, outlook for trade and economic cooperation between
Mongolia and Russia in the next five years would be determined and clarified.
In addition, cooperation in political, defense, security, law enforcement and humanitarian
areas as well as partnership in regional and international spheres would be
reflected comprehensively in this Program.
During the
President Ts.Elbegdorj’s visit to Shanghai on May 20 and Prime Minister
N.Altankhuyag’s visit to St. Petersburg on May 23, 2014, Mongolian leaders
mentioned to establish the Program during the meeting with the President
V.V.Putin and the Russian side accepted the proposal positively.
Mongolia and
the Russian Federation established the Friendly Relations and Partnership
Agreement on January 20, 1993 and Strategic Partnership in 2009.
Related:
Strategic
program considered – Montsame,
July 17
Board
Members of Development of Bank of Mongolia Changed
July 17
(infomongolia.com) At the Cabinet meeting held on July 16, 2014, three Board
Members of the Development Bank of Mongolia were released from duties on their
own requests and new members were appointed.
The freed
members of the Board are:
- Former State
Secretary at the Ministry of Finance D.Battur,
- Executive
Director of Khadgalamjiin Daatgal (Deposit Insurance) Corporation B.Lkhagvasuren,
- Executive Director
and Secretary General of Mongolian Bankers Association B.Naidalaa.
Newly promoted
three Members of Board of the Development Bank of Mongolia are:
- Director of
Supervision Department at the Bank of Mongolia (Central Bank) D.Ganbat,
- Director of
Budget Expenditure Division at Fiscal Policy and Planning Department, Ministry
of Finance, O.Khuyagtsogt,
- Acting
Director of Public Administration and Management Department at the Ministry of
Economic Development R.Baasanjav.
Also, during
the Cabinet meeting, it was resolved to retire Director of Economic Partnership
and Aid Policy Department at the Ministry of Economic Development D.Boldbaatar.
The Development
Bank of Mongolia, which is a subject of the state-owned entity, was established
on July 20, 2010 by the Government decision with specific functions to finance
big projects and programs carried out nationwide, and Chairman and Board
Members of the Development Bank are appointed and released by the Cabinet
decision.
Four
roads financing resolved
Ulaanbaatar,
July 17 (MONTSAME) The cabinet meeting on Wednesday decided to issue some 29
billion togrog from the Development Bank for financing a
construction/renovation of four auto roads in the UB city.
It will be a
part of the Government and the UB city’s 2012-2016 action platform, according
to which 212 km auto roads will run and 350 km will be renovated/expanded.
The cabinet
also resolved that the money will be paid back to the Bank by a way of putting
20 billion with an interest to the government’s budget in 2015 and 8,6 billion
with an interest—to the city’s budget of the same year.
Austrian
Vamed Engineering to Implement Five Projects as Executor Company in Health
Sector of Mongolia
July 17
(infomongolia.com) The Governments of Mongolia and the Republic of Austria had
established Financial Cooperation Agreement for the purpose of providing
financing by the latter part on concessional terms to implement some joint
projects in a health sector of Mongolia on November 28, 2011.
Nevertheless,
the effective period of the Financial Cooperation Agreement is due to end this
month and some difficulties to select executors for joint projects have been arisen
on timely basis. Therefore, in order to accelerate some projects to be funded from
the 40 million EUR soft loans provided by the Government of Austria, the Government
of Mongolia decided to establish direct contracts with executors and afterwards
accepted some proposals from the Ministry of Health.
Th e Ministry
of Health of Mongolia submitted five projects and promoted the name of an
executor company, where at the Cabinet meeting held on July 16, 2014, it was
agreed to select Vamed Engineering GmbH & Co. KG, an Austrian company, as an
executor and to establish financing agreement entrusted by the Minister of
Finance Ch.Ulaan and Minister of Health N.Udval representing the Government of
Mongolia.
The five
projects will be implemented in financing to renew equipment at National Cancer
Center of Mongolia, equipment modernization at Maternal and Child Health
Research Center as well as equipment modernization and human resources capacity
building projects at the State Central First Hospital.
During the
Intergovernmental Committee Meetings between Mongolia and Austria held in 2010
and 2013, the Ministry of Health of Mongolia was obliged to study proposals on
above projects submitted by the Vamed Engineering Company as an executor, which
were reflected in the Protocols to implement. Moreover, the UniCredit Bank
Austria AG officially announced to provide an export loan to Vamed Engineering
GmbH & Co. KG.
Related:
Joint
projects on health to be co-implemented with Austria – Montsame, July 17
Foreign
Minister of Canada to Pay First Official Visit to Mongolia
July 17
(infomongolia.com) The Minister for Foreign Affairs of Canada Mr. John Russell
Baird will be paying an official visit to Mongolia on July 23-25, 2014.
At the Cabinet
meeting held on July 16, a draft guidance to adhere by Mongolian part during
the visit of Foreign Minister John Baird was discussed and agreed to be ratified
by Prime Minister N.Altankhuyag.
This is the
first visit to be carried out at Canada Foreign Minister-level and considered with
high significance. During the visit, Foreign Minister J.Baird will be received
by the Prime Minister of Mongolia N.Altankhuyag and Deputy Speaker of the State
Great Khural (Parliament) R.Gonchigdorj, who is a Chairman of Mongolia-Canada Parliamentary
Group. Also, the two Foreign Ministers of Canada and Mongolia will hold an
official talk and a meeting with Mining Minister D.Gankhuyag is also included
in the program.
Canada and
Mongolia have a cooperative bilateral relationship, which includes significant
Canadian investment interests in the mining sector of Mongolia, where both
sides are seeking to expand bilateral and multilateral ties, and the diplomatic
relations between Mongolia and Canada were established on November 30, 1973.
Related:
Foreign
Minister of Canada to visit – Montsame,
July 17
Speaker
leaves for Ovorkhangai
Ulaanbaatar,
July 17 (MONTSAME) The Chairman of the State Great Khural Z.Enkhbold has left
for Ovorkhangai aimag to make a working tour.
The Speaker
will attend the 90th anniversary of the aimag’s Baruunbayan-Ulaan soum, located
185 km from the aimag's center.
After Ovorkhangai,
Mr Enkhbold will work in Bayan-Olgii aimag to pay tribute to the worshipped
Altaikhan and Tavanbogd Mountains, will get acquainted with a construction of
“Taishir” and “Dorgon” hydropower stations.
While the
Speaker is absent, his work is to be run by his two Vices R.Gonchigdorj and
M.Enkhbold.
Chinese
leader Xi Jinping to visit
Ulaanbaatar,
July 17 (MONTSAME) The President of the People’s Republic of China Mr Xi
Jinping is expected to visit Mongolia this August.
The cabinet
meeting on Wednesday approved a summary of the first meeting of the
Mongolia-China council for mineral, energy and infrastructure cooperation, and
then considered as necessity to oblige N.Batbayar, the Minister of
Economic Development and a head of the council for Mongolian side, to ensure
that a preparation for the visit is made by related Ministries and agencies.
In addition, an
order was given to this Minister to work out and realize a plan of measures in
line of the meeting and to present it to the cabinet.
Mongolian
national football team to compete for the 2015 East Asian Cup
July 17
(news.mn) Mongolian national football team is to participate in the preliminary
regional competitions for the 2015 East Asian Cup, the football championship of
East Asia, which will be held at the National Training Center of Guam on July
21-27, 2014.
The 2015 EAFF
East Asian Cup is the 6th edition of this regional competition and will be held
in China in 2015.
MIAT
Airlines to Open Direct Flight to Singapore from September 2014
July 17
(infomongolia.com) The National Flag Carrier MIAT Airlines JSC announces to
conduct a direct flight between Ulaanbaatar (UB) and Singapore from September
20, 2014.
The company’s
recent new route opened was between UB and Frankfurt, which is effective from
last June 19th, so this time MIAT plans to commence destination to island
country in Southeast Asia.
Singapore is
one of the original Four Asian Tigers and has a highly developed market
economy, where tourism also forms a large part of the country's economy and the
main tourist destinations are:
Universal
Studios Singapore
Marina Bay
Sands and Resorts World Sentosa casinos
Adventure Cove
Waterpark™
Gardens by The
Bay
Merlion Park
Wave House
Sentosa
Marine Life
Park™
River Safari
Art Science
Museum
Songs of the
Sea
Singapore Flyer
iFly
Cabinet
meeting in brief
Ulaanbaatar,
July 17 (MONTSAME) The cabinet meeting Wednesday selected new members of the
Representative Leading Council of the Development Bank of Mongolia (DBM) after
it had discharged some administrative officials.
Accordingly,
the new appointees have become a director of the Monitoring Department of the
Bank of Mongolia (BoM) D.Ganbat; a chairman of the Budget Expenditure Section
at the Ministry of Finance O.Khuyagtsogt; and an acting head of the State
Administrative Management Department of the Ministry of Economic Development
R.Baasanjav.
Founded on July
20 of 2010 by the cabinet decision, the DBM is a state-run legal subject with a
special function to finance the biggest projects and programmes for a
development of Mongolia. By the law, members of the DBM’s Representative
Council members and head are appointed or discharged by the government.
- At the
cabinet meeting the same day, the Minister of Industry and Agriculture
Sh.Tuvdendorj presented some state-owned real-estates to be auctioned. Then,
obligations were given to Tuvdendorj and to D.Tsogtbaatar, a head of the State
Property Committee (SPC), to run the auction in accordance with related laws
and regulations, taking into account proposals of the cabinets.
- The General
Authority of Customs introduced to the cabinet works done in first six months
of 2014, in conjunction with the Year of Activating Information Exchange and
Increasing Joint Responsibilities. According to the report, the customs revenue
rose by MNT 70.8 billion or 10.2% in the first half of this year against 2013,
and import declined by 12.5%.
Credit
rating of Golomt Bank falls
Ulaanbaatar,
July 17 (MONTSAME) The Standard & Poor's Ratings Services reported
Wednesday that it had re-stated and lowered Golomt Bank’s long-term issuer
credit rating to "B" from "B+" and affirmed its short-term
issuer credit rating as "B". The outlook is negative, which reflects
Standard & Poor’s view that economic risks in Mongolia could increase over the
next 12 months and pressure the ratings on the bank.
According to
the rating agency, Golomt’s ratings downgrade is to reflect the lowering of the
sovereign credit rating on Mongolia (B+/Stable/B) in April 2014, while the
ratings on the bank were suspended. The ratings on Golomt no longer benefit
from extraordinary government support because the bank's stand-alone credit
profile of 'b' is close to the sovereign rating on Mongolia.
In its report,
the rating agency has stated that “the Golomt management has focused on its
future development, after resolving corporate governance issues among the
bank's major beneficiary shareholders and the bank management in 2013. The bank
is also strengthening its internal control procedures and policies to address
corporate governance and risk management issues identified in 2013".
Stock
exchange news for July 17
Ulaanbaatar,
July 17 (MONTSAME) At the Stock Exchange trades held Thursday, a total of 3,360
shares of 17 JSCs were traded costing MNT 11 million 227 thousand and 557.00.
"E-trans
logistics” /1,490 units/, "Baganuur” /580 units/, "APU” /501 units/,
"Arig gal” /196 units/ and "Mongol savkhi” /150 units/ were the most
actively traded in terms of trading volume, in terms of trading
value--"Bayangol hotel” (MNT four million and 350 thousand),
"Baganuur" (MNT two million and 494 thousand), "APU” (MNT two
million 003 thousand and 901), "Shivee ovoo” (MNT 744 thousand) and
"Gobi” (MNT 554 thousand and 200).
The total
market capitalization was set at MNT one trillion 685 billion 050 million 654
thousand and 672. The Index of Top-20 JSCs was 16,337.57, decreasing by MNT
882.92 or 4.80% against the previous day.
Press
release: Oyu Tolgoi - update on production and operations
July 16 (Oyu Tolgoi) - 140,000 tonnes of
concentrate produced in second quarter, 2014 -
Ulaanbaatar,
Mongolia - Today, Turquoise Hill Resources, released its quarterly
production report, providing an update on production and performance relating
to Oyu Tolgoi, which coincided with the first anniversary of commencement of
concentrate shipments.
Between April
and June 2014, Oyu Tolgoi produced 140,000 tonnes of concentrate, bringing
total production so far this year to 242,900 tonnes.
During the
quarter, concentrate sales increased significantly driven by ongoing
improvements in customer logistics and marketing. As a result, sales exceeded
production, resulting in an inventory drawdown for the quarter.
Oyu Tolgoi
President and CEO, Craig Kinnell, said: “Today’s quarterly production and
sales figures show that we are making the Oyu Tolgoi mine stronger as we
continue on our path to becoming a safe, sustainable, profitable, and
internationally competitive business.
“Last week’s
anniversary was a true milestone for Oyu Tolgoi - and Mongolia - as we
celebrated the first anniversary of shipment of product.
“Oyu Tolgoi’s
employees have achieved a tremendous amount this year, and we are excited about
taking the mine forward. I have great confidence in what we have achieved; we
have sown the seeds to create a safe and thriving partnership, developing one
of the best ore bodies in the world”.
As well as
focusing on production and increasing shipments, Oyu Tolgoi continues to
improve performance in a number of areas:
·
Water recycling has now reached 86.4 per cent,
meaning Oyu Tolgoi reuses each drop of water more than five times. This makes
it one of the very best copper mines in the world for water efficiency, using
less than half the water per tonne of ore processed than average copper mines
worldwide.
·
A five-year investment of more than US$126
million in education and training has been completed with more than 13,000
Mongolians benefiting from the programme.
·
More than 200,000 seedlings have been planted,
ready for ongoing rehabilitation in the South Gobi. Stringent monitoring of
local water supplies continues, with ongoing development of new water sources
for local people and animals.
·
The Oyu Tolgoi workforce is 92 per cent
Mongolian.
·
Following the connection of Khanbogd with
permanent power last year, Oyu Tolgoi plans soon to build a road from the mine
to the soum centre. This is expected to act as a catalyst to help Khanbogd
thrive, driving growth and providing more options for Oyu Tolgoi’s employees to
live locally with their families.
Oyu Tolgoi’s
latest production figures can be found below. Further information can be found
in Turquoise
Hill Resources’ production report, and Rio Tinto’s
quarterly update.
Link
to article
Comments
Post a Comment