Mongolia Brief July 28, 2014 Part I



“Responsibility, monitoring and implementation” online meeting runs
Ulaanbaatar, July 28 (MONTSAME) At this monthly meeting, some specific works done this month were named on Friday.

Starting the meeting, the Premier N.Altankhuyag said that a new 3.4 km auto road was constructed and passenger stations were erected in four spots to enhance a passing capacity of the city-"Tolgoit" train station direction where the bus-trains have been operating. Some roads were repaired into crossroads near “Flower” center and “100 ail”, and a furnishing has started at the Gandan Monastery’s street within the “Street” project, he went on.
The #3 thermal power station recently accepted an annexe of 50 MWatt, and it became the largest construction in the energy sector in last 25 years, the Premier highlighted.
Some 35 million USD has been exploited from the “Chingis” bonds’ revenue to provide 20 thousand families with electricity, said Ch.Saikhanbileg, a head of the Cabinet Secretariat for Government. Here the PM added it is necessary to give a report on a course of financing for the selected projects on import substitution industrialization, at the “Hours of great constructions” weekly meeting.
After this, the Ministry of Road and Transportation reported that paved roads to Khovsgol and Sukhbaatar aimags are expected to be put into use this October, and a road to Omnogobi--this September.
"High level visits are expected this August and September, a proper preparation for them must be made," told the Premier related bodies and also obliged localities' authorities to start a preparation for winter.

Australia-Mongolia friendship group established
July 28 (Ministry of Foreign Affairs) Australia-Mongolia parliamentary friendship group has been established within the Parliament of Australia. The group comprises of 22 members and senators, including the Senator Stephen Parry, the President of the Senate, the Hon. Bronwyn Bishop, the Speaker of the House of Representatives, and the Hon. Warren Truss, Deputy Prime Minister and Minister for Infrastructure and Regional Development. 
The Hon. Dr. Sharman Stone MP, who is the Chair of the Foreign Affairs and Aid Sub-committee, which focuses on foreign policy and aid affairs, was elected as the Chair of the Australia-Mongolia parliamentary friendship group. The present Australian parliament was established during the parliamentary elections that was held in September of 2013.
Ten members of the governing Liberal national party (LNP), 9 members of the opposition-Australian Labor party as well as 3 members of the Nationals, who built the coalition government with  LNP, have joined the Australia-Mongolia parliamentary group. Also, by state representation, there are 6 members from each of the NSW and Queensland, 4 members from Western Australia, 3 from VIC, 2 from Tasmania and one from Southern Australia.
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Stock exchange weekly review
Ulaanbaatar, July 28 (MONTSAME) Five stock trades were held at Mongolia's Stock Exchange July 21-25 of 2014.
In overall, 107 thousand 837 shares were sold of 39 joint-stock companies totalling MNT 70 million 776 thousand and 142.70.
"E-trans logistics” /22 thousand and 567 units/, "Remikon” /20 thousand units/, "Genco tour bureau” /18 thousand and 118 units/, "Hai Bi Oil” /17 thousand and 170 units/ and "Moninjbar" /12 thousand and 794 units/ were the most actively traded in terms of trading volume, in terms of trading value--"APU” (MNT 15 million 312 thousand and 030), "Shivee ovoo” (MNT 11 million 951 thousand and 900), "Hai Bi Oil” /MNT seven million 555 thousand and 680/, "Moninjbar” /MNT three million 458 thousand and 540/ and "Tavantolgoi” (MNT three million 325 and 060).

Press release: Manlai soum anniversary celebrated in pictures
July 25 (Oyu Tolgoi) - 90th anniversary commemorated with release of photo book –
Manlai soum, Mongolia - The 90th anniversary of one of Umnogovi aimag’s soums is being celebrated in a brand new book of photos. Oyu Tolgoi has launched the publication in cooperation with the soum Governor’s office and local residents.
The book documents rare and precious heritage and landmarks preserved from ancient times as well as those from the present day. It also shows the beauty of the region’s natural landscape, mountains, rivers, fauna and flora, and documents people’s livelihoods, traditional household items and local customs.
The photos also document modern progress and development, the faces of local residents, young and old and will form an important historical record for the public.
Oyu Tolgoi is committed to respecting cultural heritage, especially the traditional culture of the Gobi. The Manlai book is part of the company’s ongoing programme to preserve intangible and tangible cultural heritage in the region.
Sh.Baigalmaa, Oyu Tolgoi’s General Manager, Social Performance said: “I am confident that this photo album will play an important role in introducing Manlai soum’s history to future generations. On behalf of everyone at Oyu Tolgoi, I am delighted to congratulate the people of Manlai soum on this historic 90th anniversary and mark this moment by presenting this photo book.”

Mongolia earns MNT 481 billion from mining sector
Ulaanbaatar, July 28 (MONTSAME) The mining sector is currently accounting for 18.5% of the national GDP, 66% of total productions of the industrial sector, 83.2% of total export, 17.5% of the revenue of national master budget, and 81% of the external investment.
By the first half of this year, the country’s copper concentration production reached 479.9 thousand tons, the coal production--11.7 million tons, gold production--3.0 tons, and fluorite concentrate--159.5 thousand tons. In addition, a production of iron ore reached 2.7 million tons, of zinc concentrate--46.8 thousand tons, and oil production--3.6 million barrels.
Against the first half of 2013, the size of copper concentrate production increased 57.4%, the iron production--by 17.5%, fluorite concentrate--by 17.1%, and oil--by 53.4%.
By the first half of 2014, MNT 481.2 billion has been placed in the state budget through the tax revenue from the mining sector. Mongolia exported 9.4 million tons of coal, 853.5 thousand tons of copper concentrate, 1.7 thousand tons of molybdenum concentrate, 2.5 tons of gold, 138.4 thousand tons of spar, 2.6 million tons of iron ore, 45.4 thousand tons of zinc and 3.4 thousand barrels. The export of zinc concentrate rose by 34.5%, of oil export--by 39.4% against the first half of 2013.
At the same time, 4.1 tons of gold was handed over to the Bank of Mongolia (BoM), showing an increase of 65.5% against the previous year.
Mongolia plans to exploit and export 5.85 million barrels or 782.6 thousand tons of oil this year. By this July 16, the country exploited 3.6 million barrels or 488 thousand tons, and exported 3.4 million barrels or 458 thousand tons of crude oil. The planning performance showed 58.63%.

About N.Korean embroider exhibition here
Ulaanbaatar, July 28 (MONTSAME) A North Korean embroiderer Choe Jong Sung will open her independent exhibition in the “Blue Moon” art gallery on August 1.
She intends to show some 20 embroidery works featuring Mongolian lifestyle, history, landscape and animals.
Embroidery center of N.Korea has some 1,000 members. Their creations, which look like real photos, have already gained a popularity around the world, including Mongolia.
The exhibition will continue until August 5.

Hakuho Davaajargal arrives back in Mongolia
July 28 (news.mn) Nagoya Grand Sumo Tournament finishes on Sunday. On the final day of the July Tournament yokozuna Hakuho Davaajargal claimed his 30th career championship defeating his rival yokozuna Harumafuji with 13 wins. Hakuho comes closer to the all-time championship record in Japan's Professional Sumo. The all-time record of 32 held by sumo legend Taiho. Hakuho Davaajargal arrives back in Mongolia today on July 28th.

Australia-Mongolia parliamentary friendship group established
July 28 (news.mn) Australia-Mongolia parliamentary friendship group has been established officially in the parliament of Australia. The Group consists of 22 members and senators, including the Senator Stephen Parry, the President of the Senate, the Hon. Bronwyn Bishop, the Speaker of the House of Representatives, and the Hon. Warren Truss, Deputy Prime Minister and Minister for Infrastructure and Regional Development.
As Chair of Australia-Mongolia Parliamentary friendship group the Hon. Dr. Sharman Stone MP, who is the Chair of the Foreign Affairs and Aid Sub-committee has been elected.
The present Australian parliament was established during the parliamentary elections in September of 2013.
At the Australia-Mongolia parliamentary group ten members of the ruling  Liberal national party (LNP), 9 members of the opposition-Australian Labor party and 3 members of the Nationals party  which built the coalition government with  LNP, have joined. Also, by state representation, there are 6 members from each of the NSW and Queensland, 4 members from Western Australia, 3 from VIC, 2 from Tasmania and one from Southern Australia.

G.Mandakhnaran, O.Uitumen grabbed gold from Kunayev International Tournament
July 28 (news.mn) The III International Free Style Wrestling Tournament in memory of Dinmukhamed Kunayev in Taraz Kazakhstan  was held on July 26, 27th.  About 120 wrestlers from 11 countries including Georgia, Iran, Italy, Canada, Kazakhstan, Kyrgyz, Mongolia, Tajikistan, Uzbek, Ukraine competed at the tournament.
Mongolia`s National team freestyle wrestler, State Merit Athlete of Mongolia G.Mandakhnaran in men`s freestyle 65 kg and National team freestyle wrestler O.Uitumen in men`s freestyle 86 kg crowned champions.  Mongolia`s wrestler E.Bekhbayar in men`s freestyle 57 kg, P.Unurbat in men`s freestyle 74 kg, and D.Gombodorj each won bronze medal. The tournament took place at the Taraz-Arena sport hall. The prize for the winners are; first place 5,000 USD, second place 3,000 USD, third place 1,000 USD.
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Mongolia increases oil production
July 28 (business-mongolia.com) Mining sector is composing 18.5% of the national GDP, 66% of the Industrial Sector, 83.2% of the net export, and 17.5% of the budget revenue, and accounts 81% of the foreign investment.
As end of Q2 2014, Mongolia produced 479.9 thousand tons of copper concentrate, 11.7 million tons of coal, 3 tons of gold, 46.8 thousand tons of fluorspar, and pumped 3.6 million barrels of crude oil.
On a year-on-year basis productions increased by 57.4% on copper concentrate, 17.5% on iron ore, 17.1% on fluorspar, and 53.4% on crude oil.
As end of Q2 2014, MNT481.2 billion or USD267 million was collected in tax revenue.
In the same period, 9.4 million tons of coal, 583.5 thousand tons of copper concentrate, 1.7 thousand tons of molybdenum concentrate, 2.5 tons of gold, 138.4 thousand tons of spar, 2.6 million tons of iron ore, 45.4 thousand tons of zinc, and 3.4 million barrels of oil were exported.
4.1 tons of gold was sold to the Central Bank of Mongolia. On a y-o-y basis, it was increased by 65.5% compared to 2.5 tons last year. It has been said that the regulatory changes in transparency of gold mining has influenced the increase.
Out of planned 5.85 million barrels for 2014, 58.63% has been extracted and exported.

IMF: China, Russia are facing downsized growth rates
July 28 (Mongolian Economy) The International Monetary Fund, or IMF, released a new update on its World Economic Outlook this month. The outlook framed the global economy with a statement highlighting a slowed down forecast of 3.4%, lower than the previously expected 3.7%. While global recovery is still happening worldwide, the economy is growing at uneven levels, requiring more stringent universal action. 
Recovery is indeed weak, but it is still continuing. A large part of this slowed down pace is due to the contraction within the United States economy, impacting overall growth. However, next year, economic growth is projected to reach 5%. Geopolitical tensions and financial market volatility provide more risks for downplaying global growth. 
China also saw a downsized growth rate due to instabilities within its credit growth and housing market. As a result, China is instigating certain measures in order to support demand and jumpstart investment growth. Predications place China at an expected growth rate of 7.4% in 2014 and 7.1% in 2015. In Russia, growth diminished rapidly due to intense geopolitical tensions spilling over into its economy. It is expected to remain at lower projected levels through 2015. 
Emerging markets are facing adverse conditions contributing to limited growth levels. Other economies are undergoing weakened investment as well as capital flow reversals. In order to reach more sustainable levels of recovery, it is important for the global market to receive policy support. Structural reforms are needed to boost investment and growth.

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