Mongolia Brief November 11, 2014
R.Amarjargal
rumored to be the DP caucus nominee for new PM
November 11
(news.mn) The meeting of the National Coordinating Committee of the Democratic
Party (DP) on Saturday assigned responsibility to the DP caucus and party
leader to nominate the next Prime Minister. If the DP caucus agrees with other
political parties in parliament on the candidate, the chances of R.Amarjargal
becoming the next PM are high.
However, the
DP's conflicting political factions Altangadas, Shonkhor and Mongolian
Democratic Union have not agreed on a candidate for PM.
The possible
choice might be a candidate from the Mongolian National Democratic Party
(MNDP). The MNDP suggested Ts.Bayarsaikhan as a candidate for PM but he
declined the nomination. Rumors say that the political factions will agree on
the nomination of R.Amarjargal, a former member of the MNDP.
After the
ousting of PM N.Altankhuyag on November 5, the Mongolian State Great Khural
(Mongolian parliament) has only 30 days to appoint new a PM, according to law.
Apparent conflict
between the Shonkhor and Mongolian Democratic Union led to PM N.Altankhuyag's
reform government election from Altangadas.
Altankhuyag
will remain as the leader of the DP, as the party agreed to review the issue
during the meeting of the party's National Coordinating Committee of the
Democratic in one month.
Kawai
- Future of Piano Opens Its Doors in Ulaanbaatar, Mongolia
November 11
(infomongolia.com) One the largest and best known musical instruments
manufacturing companies in the world, the Kawai has opened its doors in
Mongolia and the launching ceremony with participants of well known musicians,
politicians and other attendees was held at the Blue Sky Tower in Ulaanbaatar
on November 07, 2014.
At the blue
ribbon cutting ceremony, Kawai Company President Hirotaka Kawai, Minister of
Culture, Sports and Tourism Ts.Oyungerel, Ambassador Extraordinary and
Plenipotentiary of Japan to Mongolia Takenori Shimizu, Governor of the Capital
City and Mayor of Ulaanbaatar E.Bat-Uul and many other familiarities were
present.
Most notably at
the launching ceremony, famous Russian pianist Elmar Gasanov and well known
Japanese pianist Nanako Kurita have performed their best pieces introducing the
Kawai piano’s unique sounds upon the invitation.
“By opening
this brand shop in Mongolia, it creates a new atmosphere on music market and
brings large-scale investment into social aesthetic education”, comments
Culture Minister Ts.Oyungerel.
Also, the
company authorities added to open Kawai Musical School in Ulaanbaatar.
On the same
day, Mayor E.Bat-Uul received in his office the Company President Mr. Hirotaka
Kawai and in the scope of “Friendly Ulaanbaatar” Program, parties agreed to
collaborate by organizing Piano Festival in Mongolia.
Kawai Musical
Instruments Manufacturing Co., Ltd., best known for its grand pianos, upright
pianos, electronic keyboards and electronic synthesizers, headquartered in
Hamamatsu, Shizuoka, Japan was established in August 1927 by Koichi Kawai.
Mr. Hirotaka
Kawai was appointed as President of the Company in 1989. He established Kawai
manufacturing facilities around the globe. Today, the Kawai Musical Instrument
Manufacturing Company distributes acoustic and digital pianos to over 80
countries.
In Ulaanbaatar,
the Kawai Shop is opened in the Blue Sky Tower.
Hunnu
Air Stops Its Direct Flights to Hong Kong
November 11
(infomongolia.com) The Hunnu Air, Mongolian domestic airline temporarily
cancelled for uncertain period its international flights to Hong Kong from
November 07, 2014.
The reason to
stop flights to Hong Kong is said due to financial difficulties and the Hunnu
Air’s two Airbus A319-100, the only fleets that conduct Medium and Short-Haul
flights are being kept in Hong Kong and not authorized to departure until the Hunnu
covers its debt to an affiliated company in Hong Kong.
At this moment,
all tickets purchased to/from Hong Kong-UB are being returned at “Air Trans”
Ticket Agency.
Currently, the
Hunnu Air conducts its scheduled international flights to/from Erlian (Inner
Mongolia), Manzhouli (Inner Mongolia) and Hailar (Inner Mongolia) as well as
domestic flights to/from Uliastai (Zavkhan), Dalanzadgad (Umnugovi), Khovd
(Khovd), Murun (Khuvsgul), Choibalsan (Dornod) and Ulaangom (Uvs).
In May 2014,
Mongolian domestic airline, Eznis Airways LLC announced to stop its operation
for an uncertain period of time due to the financial difficulties.
Asian
Development Bank to Administer on Financing "Glass Account" Project in
Mongolia
November 11
(infomongolia.com) The State Great Khural (Parliament) of Mongolia ratified the
Budget Transparency Law or Law on "Glass Account" last July 01st
initiated by the President of Mongolia, which is to be effective from January
01, 2015.
The Budget
Transparency Law that entered into daily lexicon as “Glass Account” Law is
purposed enabling citizens to control and monitor the expenditure of taxpayers’
money. In order to adhere the law, the Ministry of Finance is to carry out a
Project to Improve Transparent and Efficient Public Financial Management.
Earlier, the
Government of Mongolia requested the Asian Development Bank (ADB) to assist,
where the ADB accepting the proposal decided to administer this Project
financed by Japan Fund for Poverty Reduction.
Accordingly,
the ADB, Japan Fund for Poverty Reduction and the Ministry of Finance of
Mongolia signed 1.1 million USD Grant Agreement on Technical Assistance in
Ulaanbaatar on November 10, 2014.
The Grant
Agreement was signed by the State Secretary of Finance Ministry Kh.Gantsogt,
Director General of the General Department of Taxation T.Batmagnai, and Director
General of the ADB East Asia Ayumi Konishi with the attendance of the Embassy
of Japan in Ulaanbaatar and Japan International Cooperation Agency (JICA).
The Project
will be carried out over 2 years until November 2016 and consists of two parts,
the first phase to be implemented by Ministry of Finance is a Project to
Improve Transparent and Efficient Public Financial Management and the second to
be carried out by General Department of Taxation is Project to Improve
e-Taxation Systems, where the Government is providing 55,000 USD in counterpart
financing.
“Modern public
investment management and e-taxation systems will make the Government of
Mongolia more accountable, build trust among citizens, and ensure public
financial management is more effective by enabling better budgeting for limited
public resources”, said Ayumi Konishi.
Mongolia
initiated a public investment management system in 2011 to make information and
data publicly available and better manage public investments. However, the lack
of expertise available has hampered progress and the system remains in its
formative stage.
DP
nominates MP R.Amarjargal and Ch.Saikhanbileg for PM
November 11
(news.mn) The DP caucus in parliament held a meeting today to discuss
nominations for a new Prime Minister.
MP
R.Amarjargal, MP and head of the Cabinet Secretariat for Government
Ch.Saikhanbileg, MP and head of the Standing Committee on Environment, Food and
Agriculture G.Bayarsaikhan, and MP and head of the Standing Committee on
Justice D.Ganbat were nominated as candidates for new PM.
But D.Ganbat is
not able to gain support from the caucus, so the votes will be divided between
the two MPs, say reports.
The DP caucus
meeting took an afternoon break and resumed the meeting at 1:00 p.m.
As the DP
caucus meeting continues, the most favored MP of those nominated will be
nominated for PM.
T.Batmagnai:
No details on Oyu Tolgoi tax issues
November 11
(news.mn) T. Batmagnai, Commissioner of the General Department of Taxation,
spoke on current, timely issues.
-As the year comes to an end, how will the
General Department of Taxation collect tax payments?
-Currently
taxable income planning is at 74.7 percent at the General Department of
Taxation. In past years, the taxation office has increased budget revenue from
tax income. Tax income that goes towards that budget was higher in 2013 than in
2012, and in 2014, a higher number is planned than was collected in 2013.
In 2014, the
General Department of Taxation aims to provide revenue to the budget no less
than it did in 2013. The department produced 1.9 trillion MNT for the
government budget in 2013, more than it did in 2012. For 2014 the department is
in charge of producing 2.6 trillion MNT in revenue from tax income. Everyone
knows about the current economic situation, and there is no positive sign from
the overseas market.
In October, the
department applied 1.6 trillion MNT in revenue to the budget, and the tax
office will do so according to the law in the last two months of the year.
-There are a lot complaints from businesses
and entrepreneurs about tax pressure due to the economic downturn. Are there
tax burdens or fines due to the economic situation?
-There is no
tax increase caused by the economic situation. We work here to collect tax
payers' reported taxes. There is no means of collecting tax illegally or
collecting more.
But tax payment
delays or laziness for tax payment have been popular lately. Especially when
corporations take out a large amount of loans and hesitate in paying their
taxes, pretending it is in the name of their projects.
Besides,
companies have a lot of debt. Most of the companies blame their delayed tax
payments on debt payment deadlines. Tax payments among miners are bad.
-Some people may say that the General
Department of Taxation cut 100 million MNT in taxes for Oyu Tolgoi LLC. What do
you say about this?
-People in
charge of the issue are working on it. So I do not have to give details on the
issue.
Ambassador
of Mongolia to Brazil, Ch.Sosormaa Presents Her Credentials
November 11
(infomongolia.com) On November 10, 2014, Ambassador Extraordinary and
Plenipotentiary of Mongolia to the Federative Republic of Brazil, Mrs.
Chuluunbat SOSORMAA has presented a Letter of Credence to the President of
Brazil, Her Excellency Dilma Rousseff.
The credential
handing ceremony was held along with other 32 Ambassadors to represent their
states and during the credential handing, newly accredited Ambassador
Ch.Sosormaa conveyed greetings of the President of Mongolia and noted that in
order to open gateway to Latin America, Mongolia opened its Embassy in Brasilia
in June 2014. Also, Ambassador of Mongolia congratulated Her Excellency Dilma
Rousseff on being elected as the Head of State for her second term.
In response,
President D.Rousseff pledged to pay particular attention in stimulating Mongolia-Brazil
bilateral relations and will be pleased to welcome top and high-level visits
from Mongolia.
Mongolia and
the Federative Republic of Brazil have established the diplomatic relations on
June 19, 1987.
Related:
Ambassador
to Brazil Presents Credentials – Montsame,
November 11
‘Remote
Control' premieres in Dharamshala
November 11
(news.mn) Busan International Film Festival award winner “Remote Control”, a
film by Mongolian director S.Byamba, was selected for the third edition of the
Dharamshala International Film Festival in India, held from October 3 to
November 2nd.
Over 40 films
by directors from India, Mongolia, France, the United Arab Emirates, Spain, the
USA, Canada, Switzerland, Finland, Lebanon, Germany, South Korea, China,
Argentina, Poland, and Sweden were presented during the 3rd International Film
Festival Dharamsala.
Mongolian
director S.Byamba presented his film and was interviewed by those in
attendance.
Ambassador
Extraordinary and Plenipotentiary of Mongolia to India S.Bayaraa was also
invited to the event as a special guest.
“Remote
Control”, won a top prize at the Busan International Film Festival and
has been dubbed the "New Wave" in Central Asian Cinema, gaining
international acclaim.
Mongolian
24 Sambists to Compete in 2014 World Sambo Championships
November 11
(infomongolia.com) On November 21-23, 2014, the World SAMBO Championships are
to take place at Nakadai Sports Park in Narita City of Japan, where about 600
athletes from 70 countries are to compete in the 2014 Championships.
Mongolian Team
will compete with its 24 Sambists in all 3 categories, Senior Sport SAMBO men,
women and Combat SAMBO men headed by President of Mongolian SAMBO Federation
D.Gerel and President of Mongolian Judo Federation, MP Kh.Battulga.
To remind, the
two Presidents have inked a Memorandum of Understanding to cooperate on
November 07, 2014 and under the MoU, the Judo Federation will assist the SAMBO
Federation in terms of the consolidation of partnership, joint trainings,
preparation of coaches and trainers as well as joint participation in the
regional and international competitions.
Mongolian SAMBO Team in the 2014 World
SAMBO Championships
Senior Sport SAMBO Men:
52 kg -
Sh.Erdenebaatar
57 kg -
S.Batgal
62 kg -
Ch.Boldbaatar
68 kg -
D.Tumurkhuleg
74 kg -
S.Miyaragchaa
82 kg -
G.Tuvshinjargal
90 kg -
L.Otgonbaatar
-100 kg -
B.Ariun-Erdene
+100 kg -
P.Batmunkh
Senior Sport SAMBO Women:
48 kg -
M.Urantsetseg
52 kg -
S.Solongogerel
56 kg -
D.Sumiya
64 kg -
T.Battugs
68 kg -
B.Sainbuyan
72 kg - Ts.Naranjargal
-80 kg -
M.Uuganjargal
+80 kg -
G.Enkhriimaa
Combat SAMBO Men:
52 kg -
B.Munkhbat
57 kg -
S.Orkhonbaatar
62 kg -
B.Damlanpurev
68 kg -
T.Otgonzaya
74 kg -
Kh.Amartuvshin
82 kg -
Ts.Narantogtokh
90 kg -
B.Tsogtbayar
Mongolia’s
Proposal on Improving Bird Species Conservation Approved
By B.
Amarsaikhan
Ulaanbaatar,
November 11 (MONTSAME) The suggestion on conservation of bird species named
“Great Bustard” has been approved at the eleventh meeting of the Conference of
the parties to the Convention on the Conservation of Migratory Species of Wild
Animals (CMS).
The
meeting ran on November 3-9 in Quito of Ecuador. Mongolia was represented by a
head of Department for Foreign Cooperation of the Ministry of Environment and
Green Development D.Batbold.
The proposal
was approved along with other 31 from several countries on improving
conservations of sharks, birds and gazelles. “Great Bustard” was moved to the
Appendix I of the CMS from its Appendix II. “Great bustard” has been reported a
population of 2,000 left in Russia, Mongolia and China, and some 300 in Central
Asia.
The
reproduction of the species are very slow in process as it takes approximately
ten years for a female bird to be able to give offspring. The Secretariat of
the Convention agreed, for the first round of activities, to collect funding
for organizing an international conference on conservation of “Great bustard”.
The meeting
also included Mongolia in the Standing Committee on implementing the convention
and appointed Mongolia the deputy chairman of the Committee for a three-year
term. The Deputy Chairman is obligated to participate in annual meetings, to
take part in settlement of the issues occurred outside of the meetings, and to
chair meetings of the Committee in the absence of a chairman. Mongolia will
also serve as the Asian representative to the Financial Committee of the
Convention.
The migratory
species of wild animals have higher risks to lose their migrating territories
due to hunting and to have food deficits during their ecological migrating
periods. Thus the Convention on Conservation of Migratory Species of Wild
Animals was enacted in 1979.
Mongolia joined
the Convention in 1999, the parties to which must observe duties to protect the
avian and aquatic animals and vertebrates that migrate through their
territories. The Convention on CMS is ratified by 120 countries so far.
MP
Gives Details about Oyu Tolgoi
By B.
Amarsaikhan
Ulaanbaatar,
November 11 (MONTSAME) A member of parliament Ms G.Uyanga presented on November
11 results of recent studies on Oyu Tolgoi LLC staff salaries and conclusions
of the inspection of Oyu Tolgoi project’s investment expenditure.
The inspection
was made by a working group that was set up at order of Deputy PM and Ministers
of Mining and of Finance last year, she noted and reminded the media that she
asked the cabinet this October 13 to sound an outcome of its discussion of
reports by the above working group, to explain why the expenditure report has
been include in a list of secret matters, and why 2,724 million USD, reflected
in the Shareholders’ Agreement, has increased to 5.1 billion. “The inquiry
should have been responded within two weeks, but I have not received any
answers, the Minister Ch.Saikhanbileg has postponed the response until this
November 18,” she said.
A study by
Project Management Institute on wages of over 30 thousand project managers from
29 countries show that an average annual salary of Oyu Tolgoi project managers
amounted to USD 92 thousand in 2011, which is 2.8 times higher than that of
other managers. Moreover, salaries of Mongolian and of foreign personnel, hired
for underground mine works by Red Path LLC, varies within a big margin, for
instance, the Mongolian welder receives some 71 thous.Togrog per day, while his
foreign counterpart--1.8 million, which shows ratio of 25:1, she said. Another
violation was inspected that a “Fluor”-named company, which has nothing to do
with the OT project, receives big money transfer from the project, “I will give
details about it later”.
Since the
commencement of OT project, some USD 214.4 million (MNT 400 billion and 928
million) went for business trips of Rio Tinto and Ivanhoe Mines groups,
apartment rents of foreign personnel of the project, their health services,
their gifts to others and donations, she informed.
“Petrovis LLC
has been supplying expensive fuel to OT project in a monopolist manner since
2007, and receives 20-50 million Togrog every month for so-called salaries of
personnel and their insurances,” she went on.
Thirty four
percent of all of the above costs are paid by the Mongolian taxpayers with high
interests, she stressed. Petrovis LLC should be investigated by Corruption
Combating Agency and other related monitoring organizations, she underlined.
Mongolia
and Germany Sign Memorandum of Cooperation
By N. Khaliun
Ulaanbaatar,
November 11 (MONTSAME) The Ministry of Population Development and Social
Welfare of Mongolia signed the memorandum of cooperation with the Ministry for
Labour and Social Affairs of Germany on November 7.
The document
was inked by B.Otgonjargal, the State Secretary of the Ministry, and by the
member of Bundestag and State Secretary for the Federal Minister of Labour and
Social Affairs A.Kramme. Accordingly, the two sides will cooperate in studies
for innovation of the pension insurance system, establishing pension reserve
funds, provision of social care services for the disabled, preparing educated
personnel to serve the disabled.
Last
Week's Bestsellers
By B.
Amarsaikhan
Ulaanbaatar,
November 11 (MONTSAME) An "Internom" book store introduces a list of
best sold book of November 3-9. The list was topped again by Oxford
English-Mongolia and Mongolia-English pocket dictionary.
It was followed
by “The Law” by Frederic Bastiat, translated to Mongolian in 2007. A third
bestseller became “Sorkhugtani” novel by b.Sarantuya.
Newly added
bestsellers were “Mongolian Folk Tales”, “Developing Right Brains of
Six-year-olds” and “Mongolians: XVII century until the beginning of XX”. They
were followed by "The Girl Who Kicked Hornet’s Nest" and “The Girl
with the Dragon Tattoo” by Stieg Larsson, “Lean In: Women, Work and Will to
Lead” by Sheryl Sandberg and “Green-Eyed Monk” by Ts.Oyungerel and J.Falt.
Stock
Exchange News for November 11
By B.
Amarsaikhan
Ulaanbaatar,
November 11 (MONTSAME) At the Stock Exchange trades on Tuesday, a total of
36,882 shares of 11 JSCs were traded costing MNT 237 million 793 thousand and
700.00.
"Khongon
Beton” /23,306 units/, “Khokh Gan” /9,000 units/, “Hermes Center” /2,000
units/, “APU” /100 units/ and "Remicon” /50 units/ were the most actively
traded in terms of trading volume, in terms of trading value were "Khongon
Beton” (MNT four million 661 thousand and 200), "Khokh Gan” (MNT 945
thousand), “Ulaanbaatar Khivs” (MNT 496 thousand), “APU” (MNT 375 thousand) and
"Hermes Center” (MNT two thousand).
The total
market capitalization was set at MNT one trillion 535 billion 547 million 793
thousand and 411. The Index of Top-20 JSCs was 15,366.12, increasing 20.11
units or 0.13% against the previous day.
Associations
of Judo and Sambo Sign Memorandum of Cooperation
By B. Amarsaikhan
Ulaanbaatar,
November 11 (MONTSAME) The Mongolian Associations of Judo and Sambo have signed
a memorandum of cooperation. The document has been inked by Kh.Battulga MP, a
president of Judo Association, and by D.Gerel, a head of the sambo association.
The parties
intend to support each other, to pay attention to athletes and coaches
development, to involve more their athletes in international and continental
competitions, to seek ways of organizing sambo special trainings, and to work
on including sambo in the Olympic programme.
Oyu
Tolgoi - 2014 Third Quarter Results
November 11
(Oyu Tolgoi) Ulaanbaatar, Mongolia - Oyu Tolgoi LLC, through its parent company
Turquoise Hill Resources, announced today financial results for the third
quarter, ending 30 September, 2014.
Oyu Tolgoi LLC
Chief Financial Officer Steve Duggan said, “The third quarter’s results show
once again the steady progress we are making in safely optimizing production
and ramping up sales from the open-pit mine.”.
Highlights
include:
Ø An
All Injury Frequency Rate of 0.50 per 200,000 hours worked and no fatalities
for the nine months ended 30 September, 2014.
Ø Net
revenue of US$466.1 million on sales of approximately 220,300 tonnes of
copper-gold concentrate. By metals in concentrates: approximately 53,600 tonnes
of copper for US$302.6 million, approximately 144,000 ounces of gold for
US$158.5 million and approximately 323,000 ounces of silver for US$5.0 million.
Ø Recognised
cost of sales of US$380.0 million.
Ø Royalties
of US$25.4 million to the Government of Mongolia on concentrate sales.
Ø Concentrate
sales increased approximately nine per cent over Q2’14 with sales exceeding
production resulting in a planned inventory drawdown for the quarter.
Ø Production
of 134,100 tonnes of copper-gold concentrate, containing 36,600 tonnes of
copper.
Ø As
Oyu Tolgoi’s open pit deepens into the high-grade zone in Q4’14 and Q1’15,
copper and gold head grades are expected to increase.
Ø Oyu
Tolgoi is expected to produce between 135,000 – 150,000 tonnes of copper and
550,000 – 600,000 ounces of gold in concentrates for 2014.
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