Mongolia Brief August 28, 2014 Part III
Cabinet meeting in brief
By B. Khuder
Ulaanbaatar,
August 28 (MONTSAME) A programme will be implemented to have governmental
staffers study experiences in the International Monetary Fund (IMF) and the
World Bank (WB) with aims to augment Mongolia's representation in
international banking and financial organizations and to strengthen the skills
of staffers.
It was decided
as such at the cabinet regular meeting on Thursday. The cabinet also
backed an issue of appointing a consultant to represent Mongolia’s government
in the Board of Directors of the IFM and WB. The government believes that this
will help Mongolia fortify its participation in these organizations by
reflecting its position in decisions of the Board of Directors, intensifying
cooperation with them and implementing its interests.
- The 20th
governmental resolution was annulled in conjunction with altering an order of
border checkpoint inspections in accordance with the law on border checkpoint.
- The Minister
of Finance Ch.Ulaan spoke about a process and outcome of the procurement
actions of 2014 by budget general managers in the first half of this year.
Obligations were given to all the managers to take measures for intensifying
the procurement.
- The cabinet
annulled special licenses of three beverage plants.
- Mr
S.Baatarjav was appointed the head of the General Police Department.
Stock Exchange news for August 28
By B. Khuder
Ulaanbaatar,
August 28 (MONTSAME) At the Stock Exchange trades on Thursday, a total of 8,310
shares of 14 JSCs were traded costing six million 257 thousand and 771.00
togrog.
"E-trans
logistics” /5,249 units/, “Hermes center” /1,000 units/, “Avto impex” /560/,
“Tavantolgoi” /450/ and "State Department Store” /447 units/ were the most
actively traded in terms of trading volume, in terms of trading value were
"Tavantolgoi” (MNT two million 292 thousand and 530), "Avto impex”
(MNT two million and 072 thousand), "Baganuur” (MNT 554 thousand and 900),
"E-trans logistics” (MNT 519 thousand and 651) and "Mongolia Telecom”
(MNT 290 thousand and 020).
The total
market capitalization was set at MNT one trillion 616 billion 389 million 821
thousand and 818. The Index of Top-20 JSCs was 15,778.17, increasing 10.87
units or 0.07% against the previous day.
Construction of National Library new building begins
By B.
Amarsaikhan
Ulaanbaatar,
August 28 (MONTSAME) A ceremony took place Thursday to lay the foundation stone
of a new national library.
Pursuant to a
decree of the President, a land of 0.3 hectares given to the new building of
National Library in 2008 in the Sukhbaatar district, and the construction works
started six years after.
The director of
the National Library A.Nansalmaa said that money of MNT 12 billion has been
budgeted from the government to build the library, and this amount money will
cover the all construction expenses if the construction works are completed in
two years. A design of the library building was developed by the “Egel” LLC,
and the construction works will be performed by the AKMI holding company.
The new 11
story building of the National Library will have the latest science and
technological achievements in terms of service, database and will offer
comfortable conditions for the readers. In the 1-3rd stories, it will have
multi-selection reading rooms, and cabinets for the disabled.
The National
Library is a state protected object to keep the treasuries such as written
heritage of Mongolia and Central Asian culture, scientific studies manuscripts,
typolithographic sources, and precious books and chronicles created in gold and
silver and other precious stones.
The old
building of the National Library was built in 1951 with 500 thousand books. Now
the number of book increased to some three million books, nine funds and five
reading sections.
The
construction of new National Library is expected to be completed by 2016.
E-sport players to compete in Asian Championship
By B. Khuder
Ulaanbaatar,
August 28 (MONTSAME) A Mongolian team named “The MongolZ” will take part in the
first Asian Championship for E-sports, which will take place on September 12 in
Cebu, the Philippines.
The competition
will run in two kinds of games “Cosplay” and “Dota2”. Apart from Mongolia, the
championship will be attended by teams of South Korea, India, Indonesia, the
Philippines, Sri Lanka, Vietnam and Malaysia.
Headed by A.Ariunbolor,
the Mongolian team has comprised B.Enkhbayar, N.Enkh-Od, T.Tulga and
U.Tormandakh.
G.Boldbaatar conquers World Judo Championship
August 28 (UB
Post) Paris Grand Slam winner G.Boldbaatar made history for Mongolia as he won
Mongolia’s first men’s 60kg world championship title, against European champion
Beslan Mudranov of Russia.
The World Judo
Championships is taking place in Chelyabinsk, Russia, from August 25 to 31, in
the Traktor Ice Arena.
Having a bye in
the first round, G.Boldbaatar defeated opponents from Turkey, Taiwan and
Kazakhstan. In the semi-final, G.Boldbaatar beat Georgian judoka Amiran
Papinashvili, with shido penalties.
In the finals,
G.Boldbaatar defeated a two-time European champion Beslan Mudranov, with shido
penalties.
A total of 751
judokas from 120 countries are fighting in the championships.
On the first day of the championships on August 25, men’s -60 kg and women’s -48 kg contests were held.
On the first day of the championships on August 25, men’s -60 kg and women’s -48 kg contests were held.
Silver medalist
of the 2013 World Judo Championships and International Sports Master
D.Amartuvshin and International Sports Master G.Boldbaatar fought in the men’s
event. Mongolian State Honored Athlete M.Urantsetseg and International Sports
Master G.Otgontsetseg fought in the women’s event.
The following is a brief interview of World
Champion G.Boldbaatar with gogo.mn.
Congratulations on your victory. How do you
feel?
I am extremely
happy because I won. I have to express my gratitude for my family, relatives,
parents, the Mongolian Judo Association, Khangarid sports committee and Erdenet
Mining Corporation.
How long have you been training for today’s
victory?
I started my
judo training at Khangarid sports committee in 2001. After 13 years, I became a
world champion.
What was going through your mind before the
final round? What advice did your trainers give you?
My instructors
said that I might lose through shido penalties so be careful. I only thought
about what my coaches told me. So I defeated my opponents with shido penalties.
Olympic Champion N.Tuvshinbayar gave you
advice and helped you before the final round.
Yes. He did. He
said, “You are stronger than them. Use your hidden skills, you can defeat
them.”
You fought with top world ranking judokas
Naohisa Takato of Japan and Beslan Mudranov of Russia at the semi-final. Did
you expect to face off against world’s top judokas?
I expected the
Japanese judoka.
Have you fought against Beslan Mudronav
before?
Yes. I fought
against him at Qingdao Grand Prix in 2009 and won. We haven’t fought again
since 2009.
You were taking a nap in the training hall
after you qualified for the semi-final. You were very calm in every fight. Were
you mentally well prepared?
My expectation was
low. That’s why I fell asleep without a problem.
Your brother and childhood friends came to
root for you. You did not fail their expectations. The Mongolian audience were
more supportive than a hall full of Russian audiences.
Of course. All
Mongolians shouted “Boldbaatar” and “Mongolia”. It was nice to see our state
flag. Mongolians were so strong.
B.Munguntuul seizes silver at 13th World University Chess Championship
August 28 (UB Post)
The 13th World University Chess Championship took place in Katowice, Poland
from August 17 to 24.
The Mongolian
team included member of Aldar sports committee and Grandmaster Ts.Batchuluun,
International Master G.Munkhgal, Sports Master B.Galmandakh, Grandmaster
B.Mungultuul, and Grandmaster A.Enkhtuul.
Grandmaster
B.Mungultuulwon a silver medal, with six points, in the World Chess
Championship.
Polish chess
master Klaudia Kulon won the women’s competition, followed by B.Munguntuul and
Chinese player Ding Yixin.
B.Munguntuul
previously won a gold medal in 2010, a bronze medal in 2008 from the World
Student Championships.
Grandmaster
A.Enkhtuul placed 22th in the women’s category, with 3.5 points.
In the men’s
competition, Grandmaster Ts.Batchuluun placed fifth, with six points,
International Master G.Munkhgal stood at 18th, with five points, and Sports
Master B.Galmandakh took 30th place with four points.
Mongolians to invest in Hollywood
August 28 (UB
Post) A Mongolian production team of around ten members is collaborating with
Hollywood producers for the film, “Precious”, and will be investing 1.5 million
USD.
The members of
the production team wished to remain anonymous.
Many famous
Hollywood actors, including Gary Oldman, Harvey Keitel, and Christopher Walken
are to star in the film, and auditions are currently being held. The audition
for Mongolian actors and actresses haven’t started yet.
It can be said
that Mongolian artists mostly get foreign investments. In that sense, Mongolian
production lifespan is considerably short as it’s only screened in Mongolian
cinemas. This time, Mongolians are investing in a Hollywood production, which
will enable many more opportunities. Not only will the production go into world
markets and return sufficient amount of profit to Mongolia, but also open
Hollywood’s doors to Mongolian artists.
Film
researchers and enthusiasts are making uproar on the rapid development of the
South Korean film industry. Korea’s secret for a rapid development was that
they attained global recognition by investing in Hollywood films and featuring
their own actors and actresses in feature films. Their latest products were
“Lucy” and “Walking Dead”.
“Precious” is
giving Mongolia the chance to compete head-to-head against other Hollywood
producers. By investing in foreign film industries, Mongolians are promoting
Mongolia through Hollywood film productions.
‘The Wind of Steppe’
August 28 (UB
Post) D.Batnasan opened his eighth solo exhibition, “The Wind of Steppe” on
August 23, at Blue Moon Art Gallery. The exhibition features more than 50
nature studies, scenes from daily life and urban themes.
There are few
watercolor painters noted in the history of fine arts. D.Batnasan recognizes
the importance and uniqueness of watercolors and has been painting in
watercolor for the last five years.
His watercolors
feature compositions of color and smooth transitions, with unique, airy
qualities difficult to capture in other mediums. He works quickly to create
what he wants to express through his art and presents what he feels in a real
environment, tapping into his inner soul.
The artist runs
the Masters of Mongolian Watercolors NGO to promote the special characteristics
of watercolor, and he is now organizing an intensive, three-day watercolor
workshop. D.Batnasan is also known as a writer and host of the “Listen to
Classics Project” (Songodguudiig Sonsukhui) on Eagle Television.
“The Wind of
Steppe” is on view through September 1.
Visit Blue Moon
Art Gallery’s Facebook page for more information.
There is no monitoring of long distance transportation
August 28 (UB
Post) Do you believe that just ten years ago, 30 people would crowd into a van
and drive for over one thousand kilometers? You probably would not believe it
if you didn’t see it yourself.
Around ten
years ago, vans were the only option for long distance transportation. Then,
drivers charged whatever they wanted for transportation costs. The cost of long
distance transportation from Ulaanbaatar to Khovd Province was 85,000 MNT. The
cost of long distance transportation stabilized when new buses arrived in
Mongolia in 2008. The use of vans began to decline.
Seniors like to
go to the province of their birth by bus because buses aren’t overloaded with
luggage and the cost is cheap. But people say they can’t see any difference
between a bus and a van. Also, there is no monitoring on long distance
transportation.
I left for
Khovd Province at the end of July, when I took my annual leave. Some 50
passengers, including youth and elders, sat in the long distance bus with 36
passenger seats. Each passenger can bring 15 kg of luggage. If someone brings
luggage over 15 kg, the driver charges 2,000 MNT per excess kg. The driver was
quoting high costs for some luggage. The passenger bus couldn’t fit all the
luggage in it, but the bus was loaded with luggage like a truck. The bus was
loaded with passengers, filling its seats when the bus left the Dragon Center
long distance transportation station. A worker at the station warned the
driver, “Don’t take anymore passengers. Your bus is full now.” Unfortunately,
the driver picked up five more passengers on the way to Khovd Province. The
driver and passengers had made previous arrangements. It became quite difficult
to get on and off the bus, because passengers put their luggage between seats
and some 10 passengers sat on the luggage.
On board were
American and French tourists travelling around Mongolia. At the start of the
journey to Khovd Province, the driver’s manner was so nice. By the middle of
the journey, his manner had changed. Some passenger asked to get off the bus
and take a rest. But he said, “If you want to go with me, then shut up.”
Parents often
requested to stop the bus because of their small children, but the driver got
upset and said, “I can’t stop very often.” A woman who sat in front of me was
scared of the driver and let her child urinate on the bus.
According to
the tobacco law, no smoking is allowed on public transportation, but this law
doesn’t seem to cover long distance transportation.
I stayed in
Khovd Province for two days. I returned home on the same bus, once again
crowded with a lot of people. The bus moved from the center of Khovd Province
with passengers equal to seats, but the driver picked up more passengers from
Mankhan, Zereg and Darvi soums. The police didn’t stop the overloaded bus, because
the driver and police were already friends.
Forty-five
companies currently operate 1,000 long distance buses in 68 directions.
Seventy to 80
percent of long distance buses are equipped with GPS. The Ulaanbaatar City
Traffic Monitoring Center says they monitor the speed of transport and whether
a bus is following its route or not. One official said that GPS even controls
whether the number of passengers is in accordance with the number of provided
seats.
It is
impossible to monitor over 250 buses in service. GPS can transmit data but
can’t we cannot use it for 100 percent of buses due to budget constraints.
According to one survey, service on long distance transportation buses is
terrible and cannot provide safety for passengers. Before, companies running
long distance transportation services were required to obtain a special permit.
Head of the Regulatory Agency for Auto Transportation Regulations A.Munkhbold
noted that the National Center of Transportation, transport and road
authorities in provinces, and transportation companies established a trilateral
contract in 2012. This affects the quality and service of transportation, and
it is why companies operating passenger transportation services require a
special permit in every country.
That is why we
are including these issues in the revised Law on Transportation. Long distance
transportation drivers who drive over 400 km have to have a shift driver, have
no less than five years experience driving specific classification vehicles, go
through professional driver training, and pass authorization tests.
Drivers working
in long distance transportation say they are professional, but the real
situation is different. Drivers are bad mannered and all drivers are related.
Source:
http://www.mongolnews.mn/i/54217
UB’s Shortage of Kindergartens Violate Children’s Rights
August 28 (UB
Post) A small war often rises up between UB parents at this time of year. When
registration for kindergartens begins, quarrels, arguments and lines outside of
popular kindergartens become an ordinary occurrence, but residents and the
press don’t pay much attention to it.
The
kindergartens in Ulaanbaatar started registering previous year enrollees two
days ago and they will register new children from August 28 to 29.
Unuudur
interviewed kindergartens 19, 33 and 39 in Chingeltei District to investigate
the issue.
Children of the
3rd khoroo grow up at 19th kindergarten and over 150 children are enrolled from
over 700 applicants. The manager of 19th kindergarten said, “I could not bring
my first son to kindergarten last year. There was no advantage from working in
the khoroo. But this year, my second son is able to attend the kindergarten
because I stood in line for four nights and days. We don’t have enough
kindergartens, since many khoroolols and apartments have been built.”
One father
noted, “My son could not enroll because he was not old enough to go to
kindergarten and he stayed at home for a year. He turned two years old on
September 15, 2013. But this year, my son is about to enroll in a class for
three-year-olds, unfortunately there was no room. Children cannot choose their
date of birth. It is wrong to violate children’s rights for a year.”
Over 150 little
city residents live in the 3rd khoroo, but only 30 children were able to enroll
in kindergarten this year. Managers of the 19th kindergarten explain that age
difference is an issue because of space limitations.
The revised Law
on Education calls for the enrollment of children who are two, three and four
years-old. If even a single day is left for a child to turn two years old,
enrollment is not permitted. Due to this issue, arguments start between
kindergarten managers and parents.
The 33rd
kindergarten welcomed us differently. Over 288 children attended the
kindergarten last year. Three, four and five year-old children cannot be
registered because capacity has already been met this year. Luckily, 15
children in the junior group and 20 children in the senior group can be
registered this year. It was not crowded and people were registering children
without any argument at kindergarten 33.
“For the last
two years, we did not receive any complaints and arguments about enrolling
children from other khoroos. Parents once stood in line and took bribes. We
gave specific information to households, promoted the law and made parents
understand. We conducted a survey, and based on its results we have started
working on a new system. We gave invitations to two children who will turn two
years old this year. We are solving problems by sending invitations. This
system is followed only by our kindergarten,” noted the manager of the 33rd
kindergarten, D.Munkh-Amgalan.
The fifth
kindergarten of Chingeltei District was demolished and is being built, and the
second khoroo (where 285 children live) did not have a suitable facility. The
33rd kindergarten was charged with receiving these kindergarten’s children and
now they are working in shifts.
Downtown
residents are capable of enrolling their children in private kindergartens,
unlike many ger district families. Kindergarten 33 has focused its enrollment
on children whose families need assistance.
Over 75,600
children attend 178 state-run and 250 private kindergartens. Seventy-nine
percent of these children are attending state-owned kindergartens.
Source: Unuudur
N.Algaa: Government is discussing transit railway when domestic railway issues aren’t resolved
August 28 (UB
Post) Below is an interview with
Executive Director of the Mongolia National Mining Association (MNMA) N.Algaa
about the current Mongolian mining situations coal prices and other timely
issues.
As of July 2014, mining product exports
increased significantly but the price of coal, the primary export product of
the mining sector, continues to drop. What’s the price of a ton of coal
produced by Mongolian domestic companies?
Companies
aren’t able to sell a ton of coal for 35 USD. The media reported that coal is
being supplied at 35 USD, but in reality, it’s sold for lower prices.
A ton of coking coal is being sold for 100
USD at global markets. Is this correct?
In the Chinese
market, a ton of coking coal is barely able to reach the price of 100 USD.
Generally, Mongolians refer to Chinese coal prices as the world market price.
Only two places, near the Pacific and Atlantic coasts, define coal prices in
the global coal market.
Specifically,
countries supplying coal to Europe are mostly located around the Atlantic coast,
and Japan, Korea and China focuses on the Pacific coast.
Prices are
defined at ports as the main supply is conducted at these two ports. Price
negotiation at the ports is considered as the international and world market
standard. Mongolia will draw upon the world standard price if our coal can
access the Pacific coast.
Our southern
neighbor, China, is purchasing coal with consideration of the transportation
costs from Mongolia to the Pacific coast. China explains that they buy coal
from mining sites and borders at market prices while taking transportation
costs into account. Although it’s possible, it’s wrong to compare prices of
Chinese companies purchasing coal from Mongolia with prices at the Pacific
coast.
Above all,
Mongolia needs to be capable of transporting coal to the Pacific coast.
Mongolia-China and Mongolia-Russia border coal prices were established because
Mongolia couldn’t resolve logistics issues for transporting coal through China.
This is defined as border price internationally.
Mongolia is a
land-locked country so it doesn’t have port prices and supplies products at
border prices. After improving competitiveness of coal quality, coal should be
shipped to seaports.
Aren’t Mongolian coal standard prices the
same as international port prices? In the state budget, a ton of coal is valued
at 120 USD, but coals aren’t supplied at adequate prices. Can you comment on
this?
Yes, actually,
a resolution was issued stating that coal prices will remain consistent with
contract prices until December, meaning that Chinese companies will negotiate
on the prices set from Mongolia.
Both sides of
the negotiators have to establish price agreements, register it at the General
Customs Office, and then taxes will be imposed based on the contract. Depending
on where the coal is being supplied from, whether at the mining site or border
points, contract prices will differ.
If coal is
supplied near the border, the price will be the same as border prices, which is
10 USD more than that of mining site prices.
It’s impossible
to compare prices to world market prices as companies are selling at different
prices. Taxes will be paid depending on the distance and the purchaser.
Are you indicting that even if the transit
railway through China is resolved, there’s no insurance that the market will
recover?
It means that a
part of the necessary environment will be consistent. Apart from the transit
railway, domestic transportation is important. If Mongolia doesn’t construct a
railway, we will never create a stable environment for supplying products.
Mongolia’s
competitiveness will not enhance as long as railway gauge issues are unsettled.
Mongolians keep on discussing transit railways when there isn’t even a railway
that links the mines to the Chinese railway.
Some people are
surprised that people are talking about transporting goods to China with
railway despite undetermined domestic railway issues. It’s no wonder they’re
surprised. Mongolia doesn’t have a railway from coal mines to border points.
This is the most important issue to be debated domestically.
Currently, how many companies are mining
and exporting coal and how many companies have ceased operations?
Local companies
exporting coal are Tavan Tolgoi, Erdenes Tavan Tolgoi, SouthGobi Sand, Xinhua
Mak, MAK, and Energy Resource companies. Khushuut mine was included in the
strategic mines’ list and their operations, as well as investment were halted
for six months. Their operation may revive in the coming fall.
Ulaan Ovoo
mine, located in Selenge Province, is ready to export coal. Terry Energy LLC is
also ready to export coal but is observing and waiting for favorable market
conditions.
Several
companies led by Khunnu Coal LLC stopped mining coal and are doing explorations
for other minerals. [Mongolian companies] are waiting for policies to stabilize
and coal prices to rise.
Marketing
strategies must be very good at places where companies trade. Partnership
agreements with China on every economic level should be established in the
future or we can’t deny that China will set taxes for Mongolian value-added
products. If that happens, Mongolia’s competitiveness will no longer exist.
Copper exportation is rapidly increasing
this year. Will this have positive effects?
Indeed. Copper
concentrate exports of Oyu Tolgoi accelerated. Erdenet company exported
concentrates that exceeded volume, price and cost value. Iron ore and spar
prices dropped and income centralization became insufficient.
In the last few years, the government has
been discussing standard prices for mining products. How should this standard
price issue be resolved?
The government
has been talking about standard prices for the last five years. They’ve been
holding meetings on standard prices on top of determining the specific amount
of state revenue that will be collect per year. Other than state budget
revenue, issues on how to make up the long-term taxation foundation and how to
make the mining business stable in the future are connected to standard prices.
Taxation has
two purposes. One is to obviously construct the state budget revenue and the
other is to be used for expanding and developing businesses. This isn’t
implemented in Mongolia and taxation is seen as only budget revenue.
After establishing a Minerals Exchange,
mining products are to be exported under a unified policy. Will the concept of
standard price disappear then?
A unified
standard policy will never function as long as there’s a standard price. If the
government sets standard prices for minerals, there will not be a need for a
Minerals Exchange. Only after eliminating standard prices, the government can
start talking about the issue to establish a Minerals Exchange. However,
Mongolia cannot hope to compete with the London Metal Exchange.
I think it’s
better to create the price stabilizing mechanism through an integrated price
policy, which exporters always discuss, even though it doesn’t function like an
actual exchange.
Domestic companies are facing some
difficulties this year as coal prices fell despite the increase in the export
volume. Will the coal market recover in the future?
It’s definite
that Mongolia will cooperate with China in the mining and infrastructure
sectors. China proposed a joint railway project. Many issues, including the
transit transportation and changing trade tax to liberal, are being discussed.
Transit railway through China is of utmost importance.
There are many
issues that need to be resolved within the country to enhance coal
competitiveness in the market.
Firstly, coal
quality needs to be adequate. Secondly, operating costs must be inexpensive.
Thirdly, an environment for constant and regular coal supply must be created.
Simply, to have reliable purchasers. Only when these three conditions are
ensured, Mongolian coal will be able to compete with other markets.
It’s said that
Australia is Mongolia’s competitor. Actually, Mongolia’s strongest rival is
China. A lot of coal companies were established in many Chinese regions such as
Ordos and Inner Mongolia and started to supply their domestic needs. Multiple
companies started to process and supply coal.
In other words,
China started to pay a great deal of attention on developing its northern
region. Some provinces of Inner Mongolia now have rights to determine taxes and
fees for the coal sector.
This will have
negative impact on Mongolian coal competitiveness. China’s approach is to mix
good quality coals of Mongolia with their own coal to increase quality and
expand businesses. This, itself, will force Mongolia to downgrade as a
competitor.
In this time of economic difficulty, how do
you see the future of the mining sector?
Companies
working in the mining sector are working to keep the number of employees and
overcome the economic crisis during this difficult time.
As for the
state and the government, they seem to have become a hindrance, instead of
help. Taxes are still very high. While other countries zeroed taxes for using
mineral resources to increase mineral exports, Mongolia is doing the opposite
and setting standard prices.
Source:
http://vip76.mn/content/26443
Link to
interview
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