Mongolia Brief August 14, 2014 Part I



Mining Minister Meets S.Korean Delegation
By B. Khuder
Ulaanbaatar, August 14 (MONTSAME) The Minister of Mining D.Gankhuyag Thursday received a visiting delegation headed by Yang Young Myung, a vice president of the Korea Gas Corporation (CGC), in conjunction with implementing a project on exploiting the methane gas of coal-bed.

Mr Gankhuyag said he is glad to meet with the CGC vice president in times of forming here a legal environment for utilization of methane gas of coal-bed, and briefly presented him the related law. He also noted that his Ministry received 12 requests from enterprises to cooperate in the non-traditional oil sphere.
The adopted this July new wording of the oil law regulates matters related to exploring and exploiting both crude oil and non-traditional oil such as pyroschist, oil sands, gas sands, shale gas and methane gas of coal-bed, the Minister said. "This law has created friendly and competitive environment for investors to exploit these minerals," he added. 
Mongolia and South Korea both maintain the principles of developing the market economy based on private sector, Mr Gankhuyag went on, "related state administrative bodies intend to establish a contract on exploration, as a result of which the countries will sign a production-sharing contract and will conduct a reserve recognition exploration."
In response, Mr Yang said their corporation is conducting a first part of the exploration together with the Mongolian “Erdenes Tavantolgoi” company, and that an experimental factory of methane gas processing is expected to launch in June of 2015. "Approximately two million tons of methane gas is needed to reduce air pollution in Ulaanbaatar," he added. The project on exploitation of methane gas of coal-bed is vital to creating a new source of energy and fuel, he said. 

Minister of Industry and Agriculture Meets Ambassador of France
By B. Khuder
Ulaanbaatar, August 14 (MONTSAME) The Minister of Industry and Agriculture Sh.Tuvdendorj Thursday met with Mr Yves Delaunay, the Ambassador Extraordinary and Plenipotentiary of France to Mongolia.
On behalf of the Mongolian government the Minister thanked the government of France for giving assistance and aid to Mongolia in difficult times, and noted that the Mongolia-France cooperation has been intensifying in the industrial and agricultural sectors. Then he mentioned that the two countries established a cooperation memorandum on the agricultural sector during the official visit of the French Foreign Minister to Mongolia last year.
Mongolia is importing high-productive livestock from France and is developing an intensified animal husbandry within a goal of regularly providing urban areas with milk and dairy products.
The sides decided to work on establishing a memorandum of mutual understanding in order to collaborate in the bio-technology and industrial sectors. 

Bank of Mongolia Reports
By B. Khuder
Ulaanbaatar, August 14 (MONTSAME) According to the Bank of Mongolia, a money supply (broad money or M2) at the end of July 2014 reached MNT 10 thousand 081.0 billion, declining by 26.0 billion or 0.3% from the previous month and increasing 1,992.3 billion or 24.6% against the previous year.
At the end of this July, currency issued in circulation reached 859.6 billion Togrog, decreasing by 0.5 billion or 0.1% from the previous month and increasing 27.4 billion or 3.3% against 2013.
Loans outstanding at the end of this July amounted to MNT 12 thousand 225.4 billion, increasing by 76.6 billion or 0.6% from the previous month and by 3,107.7 billion or 34.1% against the previous year.
Principals in arrears at the end of July 2014 reached 550.1 billion Togrog, increasing 111.9 billion or 25.5% from the previous month and by 388.8 billion or 3.4 times against the previous year.
The non-performing loans over the bank system reached MNT 599.7 billion, increasing 32.7 billion or 5.8% from the previous month and by 146.8 billion or 32.4% against 2013.
In the first seven months of this year, 32.9 million shares valued 134.7 billion Togrog were sold at the stock market.

General Gov't Budget Has Deficit
By B. Khuder
Ulaanbaatar, August 14 (MONTSAME) In the first seven months of this year, total equilibrated revenue and grants of the General Government Budget (GGB) amounted to MNT 3,305.2 billion, and total expenditure and net lending of the budget reached MNT 3,466.1 billion, representing a deficit of 160.9 billion in the equilibrated balance of the GGB.
Against the same period of 2013, a tax revenue increased 184.3 billion Togrog or 7.0% due to increases of MNT 59.8 billion or 12.8% in social security contributions, of 37.3 billion or 3.6% in taxes on goods and services, of 19.5 billion or 10.1% in revenue from taxes on foreign trade, but there were decreases of MNT 10.3 billion or 1.7% in income taxes.
Total expenditure and net lending of the GGB reached MNT 3,466.1 billion going up by 280.4 billion or 8.8% against 2013 due to increases of 140.3 billion or 10.9% in expenditure on goods and service, of 139.1 billion or 12.5% in subsidies and transfers expenditure, of 111.2 billion or 89.9% in interest payments, but there were decreases of MNT 61.3 billion or 89.0% in lending (net), of 48.8 billion or 8.3% in capital expenditure.

External Trade Turnover Goes Up
By B. Khuder
Ulaanbaatar, August 14 (MONTSAME) In the first seven months of this year, a total external trade turnover reached USD 6,088.6 million dollars after trades with 122 countries.
The trade of USD 2,940.5 million was made up by exports, whereas trade of USD 3,148.1 million by imports.
Total external trade turnover increased USD 49.9 million or 0.8%, where the import declined by USD 536.9 million or 14.6% and the export went up by USD 586.8 million or 24.9% against the previous year.
External trade balance showed a deficit of USD 1.3 billion in the first seven months of this year, while in a deficit of USD 207.6 million. It also showed a decline by USD 1.1 billion against 2013. 

Consumer Price Index Increases
By B. Khuder
Ulaanbaatar, August 14 (MONTSAME) The national consumer price index in July of 2014 rose by 0.4% against the previous month, by 7.2% against the beginning of this year, and by 14.9% over the same period of the previous year.
The 0.4-percent rise in the national index occurred due to increases of 2.5% in housing, water, electricity and fuels, of 2.0% in transport, and of 0.4% in clothing, footwear and cloth.
The industrial production index (2010=100 seasonally adjusted and experimental estimation) in the first seven months of this year increased 16.9% from the end of the last year, by 3.7% over the previous month, and decreased 4.1% against 2013.
The mining of products such as molybdenum concentrate with 47%, iron ore, copper concentrate with 35%, fluor spar concentrate, and crude oil went up 2.7-53.9 percent in the mining and quarrying sectors, while a production of soft drinks, milk, buuz and dumpling, knitted goods, pure water, flour, macaroni noodles, vacuum windows and doors, sawn wood, rose from 2.6% to 2.5 times in the manufacturing sector against 2013. 

Passengers and Freight in Statistics
By B. Khuder
Ulaanbaatar, August 14 (MONTSAME) In the first seven months of this year, 11 thousand 129.4 thousand tons of freight and 1,999.8 thousand passengers (at a duplicated number) were carried by the railway transport.
Against the same period of 2013, the amount of the freight carried decreased 807.0 thousand tons or 6.8%, and of the passengers carried--by 252.4 thousand people or 11.2%.
The revenue from the railway transport reached MNT 233.5 billion, going down by MNT 6.4 billion or 2.7% against 2013.
Some 1,959.1 tons of freight and 395.2 thousand passengers were carried by the air transport. The amount of the freight dropped 374.9 tons or 16.1%, that of the passengers--by 44.3 thousand people or 10.1% against 2013.
The revenue from the air transport reached MNT 126.5 billion, showing a decrease of MNT 1.3 billion or 1.0% over the same period of 2013. 

Foreign Affairs Minister meets Belarusian Ambassador
August 14 (news.mn) Foreign Affairs Minister of Mongolia L.Bold received Ambassador Extraordinary and Plenipotentiary from the Republic of Belarus to Mongolia, Stanislav Chepurnoi, on August 13th.
At the meeting, the parties exchanged views, seeking ways to build joint plants to enrich and intensify Mongolia-Belarus bilateral good relations with an economic focus, revive bilateral relations in education, and cooperate in the fields of roads, transportion and defense.

Student soldiers take their oaths
August 14 (news.mn) In accordance with the President and Commander-in-Chief of the Mongolian Armed Forces Ts.Elbegdorj's Decree 92, approved by the Government of Mongolia on February 14th, the “Student Soldier”program was launched nationwide in April.
A total of 418 student soldiers from 42 national universities and institutes who are serving in the army took oath Wednesday at Chinggis Khaan Square, showing respect to the army flag.
At the oath taking ceremony, President Ts.Elbegdorj, Head of the Office of the President of Mongolia and MP P.Tsagaan, Defense Minister D.Bat-Erdene, State Secretary of Defense and Minister, Major General Z.Boldbaatar, Chief of the General Staff Lieutenant General Ts.Byambajav, Chair of the Union of Mongolian Students Kh.Batsaikhan, senior officials from the Defense Ministry, general staff of the Mongolian Armed Forces, soldiers' families and civilians were present.
Following the ceremony, the student soldiers marched in a military parade.

Consular Officer of Mongolia to Hong Kong found dead
August 14 (news.mn) Mongolian Consular Officer in Mongolia's Consulate General in Hong Kong, Oyun-Erdene, was found dead. According to an unconfirmed source, the consular officer jumped from the 42nd floor of an office building on August 8th, 2014.  The Foreign Affairs Ministry of Mongolia stated the consular officer's death was accidental, but did not give details. Hong Kong police have initiated an investigation.

Celebration of the 75th anniversary of Khalkh Gol Battle
August 14 (news.mn) The Government of Mongolia issued Resolution 61 in 2014, to celebrate the historic 75th anniversary of the Khalkh Gol Battle victory.
The Defense Ministry and Ulaanbaatar City Government held a press conference to present information about the celebration of the historic anniversary.
The celebration was launched nationwide last May. On the occasion of the 75th anniversary of the Khalkh Gol Battle victory, the 100th anniversary of the births of Khalkh Gol Battle heroes, L.Dandar, Ts.Olzvoi, L.Gelegbaatar, and B.Dorj were commemorated in their birth places and monuments were erected for them.
A “Combative Friendship Path” tour and meeting was organized in collaboration with the Military Districts of Buryatia, Irkutsk, and Baikal Region. Organizers of the celebration say there will also be an essay writing contest on the theme of the Historic Khalkh Gol Battle victory for students.
There is also a campaign to restore historic statues and monuments dedicated to the Khalkh Gol Battle victory and the heroes who devoted their lives to the victory launched in the city.
The Government of Mongolia also issued a resolution to compensate Khalkh Gol Battle veterans with two million MNT.
The celebration of the Khalkh Gol Battle victory will convene in Ulaanbaatar, on August 23rd said the Press and Public Relations Office of the Ulaanbaatar City Government.

Ulaanbaatar to host Forum of Mayors of Northeast Asian Cities
August 14 (news.mn) Ulaanbaatar, the capital of Mongolia marks the 375thanniversary of its foundation this year.
In the scope of the “Friendly Ulaanbaatar” program launched as part of the celebration, Ulaanbaatar will host the Forum of Mayors of Northeast Asian Cities on August 18 and 19.
The forum will be held under the theme of "Sustainable and Inclusive Cities".
At the forum, mayors of Northeast Asian cities will be represented by a delegation including Deputy Mayor of Beijing; representatives of Tianjin, Hailaar, Shenyang and Huh Hot China; Vladivostok, Yakutsk, Novosibirsk, and Irkutsk in Russia; Pyeongchang, SouthKorea; Niigata, Japan; Pyongyang, Hamhung, Wonsan, and Rason in North Korea; and representatives from Ulaanbaatar, Darkhan, Erdenet, Baruun-Urt, and Choibalsan.
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