Өнгөрсөн долоо хоногт Монгол улсын нийгэм, эдийн засгийн өнөөгийн байдал, цаашдын төлөв, хөгжил дэвшилд онцгой ач холбогдол бүхий Монголын Эдийн Засгийн Чуулган болон уг чуулганы нэг хэсэг болох Хөрөнгө Оруулалтын Чуулган 2011 амжилттай зохион байгуулагдан өнгөрлөө. Хоёр дахь удаагаа зохион байгуулагдаж буй уг чуулганд онцлох сэдэв, салбар тус бүрээр төр, хувийн хэвшил, иргэний нийгэм, эрдэмтэн судлаачид болон олон улсын байгууллагууд хамтдаа суун гурван өдрийн турш хэлэлцүүлэг, хуралдаан өрнүүллээ.
Эдийн Засгийн Бодлого, Өрсөлдөх Чадварын Судалгааны Төв уг чуулганд бодлогын хүрээнд хамтран зохион байгуулагчийн зүгээс оролцсон бөгөөд төвийн захирал Ч.Отгочулуу “Хөгжлийн бодлого: Өрсөлдөх Чадварын Хэмжүүр, Кластер Инноваци” салбар хуралдааны зохион байгуулагч, панелистаар оролцлоо.
Мөн түүнчлэн уг чуулган эдийн засаг, нийгмийн мэдээ мэдээллээр дагнан нийтэл, нэвтрүүлэг бэлтгэдэг дотоодын болон дэлхийн тэргүүлэх хэвлэл мэдээллийн байгууллагуудын анхааралд байж, тухайн байгууллагууд зочид төлөөлөгчид уг арга хэмжээнд өндөр ач холбогдол өгөн хүрэлцэн ирж оролцсон нь чуулганы ач холбогдол, чансааг илтгэж буй хэрэг юм. Чуулганы талаар гадны хэвлэл мэдээллийн хэрэгслүүд хэрхэн бичиж буй талаар доор тоймлон орууллаа.
- Mongolia to Raise $500 Million in First Dollar Bond Sale –
To “set benchmark” and “open window” for private companies, but such plans have
been made and dumped before
- Governance Key in Unlocking Mongolia’s Massive Wealth – Mongolian Economic Forum speaks
- Mongolia's Challenges: Inflation, Currency Flows – Containing inflation remains key challenge
- Ivanhoe sees "substantial" silver at Oyu Tolgoi – plans to produce 3 million ounces/year of silver as spot silver hits 31-year record at $34.96/ounce
- Mongolia Concerned ‘Hot Money’ Heats Economy, Javkhlan Says - 180 billion tugrik ($140 million) spent last year to stabilize the exchange rate
- Bond-ing in Mongolia - “Mongolia is the only game in town” but bonds would only “probably” take place this year
- Noble Group Seeks More Mongolia Coal Deals to Add to Rising Energy Profit - Hong Kong-based supplier of energy locks on to Mongolia
- Ulaanbaatar Metro to be ready by 2017 - South Korean consortium selected to build metro in UB, 40 stations, to begin construction 2013
- Japanese group to help set up steel plant – Kobe Steel Group of Japan to build a steel plant in Darkhan
- Batbold identifies priorities in development strategy – “Together in Development” MEF roundup
- Businessmen oppose rise in stamp fees – Businessmen appeal to parliament to amend 2010 law that increased stamp prices 60 times
- MCS cannot import methanol for its coal gas production – MCS coal to gas plant project falters
- Mongolia Assures it is a New Player in World’s Energy Industry – “Coal Mongolia” Forum last week tackles Erdenes TT questions
- Gerege of the Mongol – TT shares issue explained and expanded, how Mongolia will spread the wealth
- Nobody In Mongola Can Improve On The Current Criminal Law, Says Minister - Minister of Law and Internal Affairs Ts.Nyamdorj refuses to improve Law, rejecting claims that “it will put all Mongolians in jail”.
- General Mining Corporation tells ASX potash may be behind 33% share spike – GMM puts Mongolian potash project behind price jump
- Ten Things We’ve Learned about Mongolian Democracy (and China) – A look at the lessons of the MEF compared to China
Mongolia to Raise $500 Million in First Dollar Bond Sale
Mongolia is planning its first sale of sovereign bonds, seeking some $500 million, to help companies from the resource-rich nation located between China and Russia raise funds from credit markets.
“We’re looking at an issuance of inaugural sovereign bonds in order to set up a benchmark and open up a window for private companies to go and raise money,” Vice Minister of Finance, Ganhuyag Chuluun Hutagt, said yesterday in an interview in Ulan Bator. The sale will “probably” take place this year, pending parliament’s approval.
The bond sale would mark a turnaround from 2010 when Mongolia scaled back and then dumped plans to borrow $1.2 billion abroad to survive the global economic slump. The plans have been revived as gains in the tugrik trim returns from rising copper and coal prices, Mongolia’s biggest exports, and the nation faces a 10 percent budget deficit.
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Governance Key in Unlocking Mongolia’s Massive Wealth
Governance was the main theme at the Mongolian Economic Forum being held in Ulaan Baatar, as the country begins to come to terms with its newfound status as a major global player in critical resources.
The country, which only overthrew the heavily Soviet-influenced Mongolian People’s Republic in 1990, became a democracy soon afterwards and has sometimes struggled with the transition from decades of mismanagement to its new status as a resource rich state sandwiched between two superpowers – China and Russia. Yet as an increasing volume of massive mineral reserves – ranging from massive oil, coal and iron ore deposits to the world’s largest copper, rare earths and uranium reserves – the country is undergoing a transition that could either be a great success story or lead it to the alternative national path, trodden by other nations, of its natural wealth becoming a curse.
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Mongolia's Challenges: Inflation, Currency Flows
Mongolia—Surging inflation and interest in trading the nation's currency, the togrog, are key challenges facing the Bank of Mongolia, a top central banker said Thursday.
The economic costs of inflation—"our biggest enemy"—are well understood by the central bank, said Deputy Gov. N. Zoljargal.
In an interview after speaking on a panel here, he said a primary central-bank mission is to manage confidence in the currency. As the profile of the togrog rises with traders, he said, the policy is "don't fight the trend," but ensure it happens smoothly.
The togrog was among the world's strongest currencies in 2010, gaining as the economy rebounded from the global financial crisis and amid expectations copper and coal mining will sustain the trend.
Speaking at the same conference, Mongolia President Ts. Elbegdorj said the government's job is to ensure the mine sector creates an economic foundation, including creating employment. He said the government is considering new mining regulations, but wasn't specific.
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Ivanhoe sees "substantial" silver at Oyu Tolgoi
Oyu Tolgoi to produce 3 million ounces/year of silver, spot silver hits 31-year record at $34.96/ounce
Ivanhoe Mines (IVN.TO) said on Thursday that it would produce 3 million ounces of silver a year at its Oyu Tolgoi copper and gold project in southern Mongolia.
Ivanhoe said Oyu Tolgoi would produce 78 million ounces of silver over its 27-year mine life.
Spot silver prices hit a 31-year high on Wednesday at $34.96 an ounce, as precious metal prices rose on uncertainty over the Libyan conflict.
"The buoyant global silver market has fueled the interests of investors and has prompted us to more widely circulate the projections for silver production," said Ivanhoe Chief Executive Robert Friedland.
"Oyu Tolgoi will rank as a very substantial silver producer when commercial production begins in 2013."
Ivanhoe said that annual production at Oyu Tolgoi will be 1.2 billion pounds of copper, 650,000 ounces of gold and 3 million ounces of silver. The mine will also produce molybdenum, a metal that is used to harden steel.
Comparatively, Pan American Silver (PAA.TO) produces 5 million ounces of silver a year at its Alamo Dorado mine in Mexico, while Coeur D'Alene (CDE.N) produces 9 million ounces of silver at its Palmarejo mine, also in Mexico, each year.
Initial production is expected at Oyu Tolgoi in late 2012.
Mongolia Concerned ‘Hot Money’ Heats Economy, Javkhlan Says
Mongolia is concerned about the destabilizing effect of “hot money” inflows on the economy as it begins to develop large coal and copper mines, said Bold Javkhlan, the first deputy governor of the central bank.
The country spent an equivalent 180 billion tugrik ($140 million) last year to stabilize the exchange rate and will keep the policy this year as expected commodity price gains and the start of operations at new mines pressure the currency, Javkhlan told a forum in Ulan Bator, Mongolia’s capital. About 40 percent of money inflows into Mongolia are short-term, he said.
“One issue I’d like you all to be concerned with is hot money,” Javkhlan said. “The real exchange rate has quite a gap with the nominal. The more this grows, the more speculative money will come in.”
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Bond-ing in Mongolia
As one Hong Kong banker told beyondbrics recently, “Mongolia is the only game in town”. And soon, gung-ho investors may get a new way to play it. The resource-rich country, forecast by one bank to be the world’s fastest-growing emerging market in coming years, wants to raise $500m in its first dollar bond sale.
This is not the first time it’s floated the idea. But it’s the first time it has the attention of so many bankers and investors.
Ganhuyag Chuluun Hutagt, Mongolia’s vice minister of finance, told Bloomberg: “We’re looking at an issuance of inaugural sovereign bonds in order to set up a benchmark and open up a window for private companies to go and raise money.”
Mongolia could also use the money for much-needed investment in infrastructure.
The sale would “probably” take place this year, pending approval from parliament, Hutagt said. But the idea still sounds tentative and should be treated as such. Last year Mongolia dropped a more ambitious plan for a $1.2bn bond sale.
The foundation of Mongolia’s appeal is its vast untapped resources of coal, copper and gold. They help explain why Mongolian equities were the world’s best performing last year, gaining 140 per cent in dollar terms.
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Noble Group Seeks More Mongolia Coal Deals to Add to Rising
Noble Group Ltd, the Hong Kong-based supplier of energy, food and mining commodities, sees Mongolia as its next opportunity to expand in coal and build on its record 2010 profits.
“We have staff looking at several opportunities” in Mongolia, especially in exploration companies, Chief Executive Officer Ricardo Leiman said on a conference call yesterday. “Mongolia will be an area specifically for quarter two. We look at developing a similar model there to what we have in Indonesia and Australia.”
Noble won exclusive overseas marketing rights for PT Berau Coal, Indonesia’s No. 5 producer, in November, adding to its Australian assets, which include Gloucester Coal Ltd. The Berau deal will “contribute nicely” to 2011 earnings, Leiman said after his company posted record annual net income of $606 million from $57 billion in sales.
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Ulaanbaatar Metro to be ready by 2017
Su Song and Seoul Metro Consortium of South Korea has been selected to build an underground railway in Ulaanbaatar. The railway will have two main lines. One, from the western part of Ulaanbaatar to Amgalan, will cover 28.3 km, and the other, from the 17th secondary school to Buyant-Ukhaa, will be 21.3 km long.
Initially 3 or 4 trains will run along the track that would be over the ground in suburban areas. A total of 40 stations would be built, at a distance of between 800 meters and 1 km between one another. Tickets would be priced similar to bus tickets.
Construction is likely to begin in 2013 and completed by 2017.
Japanese group to help set up steel plant
The Ministry of Mineral Resources and Energy today signed a memorandum of understanding with Kobe Steel Group of Japan to build a steel plant using iron ore to be processed in the Darkhan Ferrous Metals Factory using a new technology. The Chief of the Mining and Heavy Industry Section at the Ministry, B.Batkhuu, and the General Manager of the Japanese Group, Naoto Susuki, signed the memorandum.
The Ministry wants the proposed plant to export value added products and to reduce the export of iron ore. The Japanese group will transfer technology that is exclusively used by it.
Batbold identifies priorities in development strategy
Inaugurating the Mongolia Economic Forum yesterday morning, Prime Minister S.Batbold expressed happiness that this opportunity to discuss development policy issues was becoming an annual feature and hoped the forum would continue to encourage open debate among scholars, politicians, businessmen and civil representatives on all aspects of development.
The theme last year was “We can do it together” and among the issues discussed were the Capital Market, Competition, Reform of the State Registration, Reform of Budget, Mining and Green Economy. The resultant business environment reforms helped Mongolia rank 99th among 117 countries in competitiveness and 100th among 169 countries in the Human Development Index.
This year’s forum has the theme “Together to Development” and has four priority areas for discussion: Development Policy, Human Development, Infrastructure, and Governance. Altogether 15 panel meetings will cover various areas of these four basic concerns.
Human welfare is the ultimate goal of development and Mongolia’s economic growth should improve citizens’ life. We should pay attention to the following four areas, he said.
First, we should improve governance. This can be done by putting in place the right mechanism, by a proper division of power and by a clear demarcation of political parties’ rights and responsibilities. Citizens’ participation has to be encouraged.
Second, we should adopt the right development strategy. We must have a long-term vision.
Third, the emphasis will be on developing our human resources. For this, we need provide better education, giving wide access to knowledge and skills.
Fourth, we should pay attention to infrastructure development because mining, tourism, small and middle enterprises and regional development depend on infrastructure.
Businessmen oppose rise in stamp fees
Businessmen some time ago requested Parliament to amend the law it passed in 2010 that raised stamp duties by as much as 60 times, from MNT165,000 to MNT10 million and 250,000. The Parliament Office advised them to approach the Ministry of Finance which had initiated the law. In its turn, the Ministry of Finance has asked businessmen to submit their request to the Ministry of Justice.
Businessmen are surprised that no power wielding state organization takes responsibility for considering a request for something of such vital interest. They feel anything that hurts production is against economic development and that good results can be achieved only if right laws are passed.
Judging from the experience of 2010, declared as the year for business environment reform, when there was no change in the taxation policy and little real reform, the private sector is not very optimistic about what will be achieved in 2011. This has been declared as the year of employment but many citizens could lose their job because the rise in stamp fees threatens the survival of about 8,000 economic entities. Also, 1,700 workers in mining companies could find themselves redundant if the Law banning mining exploration and exploitation near rivers and forests is enforced.
The National Statistics Office reports GDP has increased by 65% between 2002 and 2010, but there has been no corresponding increase in employment, even though the number of working age people has gone up.
MCS cannot import methanol for its coal gas production
MCS Holding has begun work on setting up a plant to produce coal gas for heating. Its study of possible alternatives to raw coal concluded that coal gas would be the most appropriate and cost-effective choice. The company will implement the project with cooperation from the Government and the City Mayor’s Office.
The problem now is that an essential component in producing coal gas is Methanol but import of technical spirits is prohibited under present laws. The company hopes Parliament will remove the ban to help reduce air pollution.
Mongolia Assures it is a New Player in World’s Energy Industry
“Coal Mongolia 2011”, the big international coal event to promote Mongolia’s coal industry concluded last Friday in Ulaanbaatar, reassuring that Mongolia is a new player of world’s energy industry.
More than four hundred foreign and domestic delegates attended the event of two days. The attention of the international investors to the conference was focused on the second day of the event as it held discussion on coal investment projects and production.
Besides, a presentation of Tavan Tolgoi, the world’s largest untapped coking coal deposit, was presented by B.Enebish, CEO of state-owned Erdenes MGL” LLC incorporated to represent state interest in strategic and state funded deposits and acting CEO of Erdene Tavantolgoi Ltd.
The second day was a kind of long-awaited as Hunnu Coal Ltd that managed to trade its shares at the Australian Stock Exchange, held a presentation of its project. Separate presentation of two untapped coking coal deposits of Khushuut and Ovoot was also held that day.
International investors have been more interested about to what extend the Mongolian government gives importance to these coal projects.
Especially, they have been concerned about who is more likely to win open bidding for contract miner that will conduct mining operations in eastern Tsankhi Area of Tavan Tolgoi Mine, on a contract basis.
“A short list of companies that sent tender documents will be available next week” said Enebish.
The world’s monetary flow directing towards Mongolia is targeting the country’s coal industry, stressed local mining experts who attended the event.
On the sidelines of the event, a local newspaper interviewed Battsengel Gotov, CEO of Energy Resources LLC, about a to-be-open coal washing plant.
“We transport [the coal] by aggregate-paved road. As demanded by the Environment Ministry, we decided to build asphalt road until rail line is available and started our road construction project in May 2009. At present, 70% of the work is completed. We plan to complete it in July 2011.”
Gerege of the Mongol
The time has come for us to find the most rational and efficient way to possess underground resource of Tavan Tolgoi deposit and benefit from its fruits from generation to generation.
The country’s future, social stability and order as well national security will depend on how we deal with such a new intellectual challenge. The Government of Mongolia decided to sell 10% of Erdenes TT to domestic professional investors and give 10% free to its people, 30% to international investors and own remained 50%. So far, it selected Deutsche Bank (Germany) and Goldman Sachs (the U.S.A) as underwriter for IPO and BNP Paribas (France) and Macquarie Bank (Australia) to involve in the sales and brokerage activities.
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Nobody In Mongola Can Improve On The Current Criminal Law, Says
Minister of Law and Internal Affairs Ts.Nyamdorj has explained his recent summary rejection of any need to amend the criminal law. His blunt opposition was mainly responsible for the decision of the Standing Committee on Justice not to proceed with consideration of draft amendments proposed by 12 members of Parliament, led by Mr. Sh.Saikhansambuu (MPRP).
Mr. Nyamdorj says the last amendment to the law, initiated by himself, among others, assures both citizens and the police of adequate protection and needs no tinkering with. He has recalled how he sought and received advice from local lawyers and foreign legal experts, particularly through the German organization GTZ, at that time. The merit of the measure, he says, is borne out by how all criticism and concern that “it will put all Mongolians in jail” have been shown to be unfounded. Mr. Saikhansambuu, however, asserted that many judges had told him they found several provisions of the current law to be too harsh and strict, and not in keeping with modern humane principles. The MP also pointed to the rising number of convictions on minor offences, that brands people, many of them young, as “criminals” and gives them no opportunity to reform themselves.
Mr.Nyamdorj has said there is nobody in the country who can suggest any actual improvement in the present criminal law. He called the draft “a document prepared by a hired brain and then signed by 12 MPs”. There is “no one in Mongolia who is knowledgeable and experienced enough to improve on what we did in 1998 and again in 2002”, he said.
China coal market tends to be slightly oversupplied, coal
China's coal market tends to be slightly oversupplied as power coal consumption has been decreasing along with warming weather, according to January report on coal industry operation released by Shanxi coal industry office Tuesday.
The report predicted that domestic coal prices are expected to drop with falling trade on the market.
Data from the office show that north China's Shanxi Province, the country's second largest coal producer after Inner Mongolia, produced 58.17 million metric tons (tonnes) of raw coal in January, a jump of 5.77 million tonnes or 11.02 percent year on year. It transported 43.57 million tonnes out of the province, down 2.84 million tonnes or 6.12 percent from the same period of last year.
The office noted that as weather is getting warmer, electricity demand will shrink and in the meantime power coal consumption will slow down, adding that coal market may enter off season in the following period.
As major power plants' coal consumption is dropping, their stocking demand will also be suppressed.
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General Mining Corporation tells ASX potash may be behind 33%
General Mining Corporation (ASX: GMM) received a price and volume speeding ticket yesterday after the company's shares spiked 33% to an intra-day high of $0.18, from $0.135 on Wednesday 2 March.
The company said there is no material information that has not been released to the market which may explain the sudden investor interest.
But what is driving the share price is the potash drilling General Mining is undertaking in Mongolia, with potash the new 'rare earths' with companies involved in this hard to find resource currently getting a massive market re-pricing.
General Mining has a potash project in Mongolia, which comprises five granted exploration licences covering more than 2000 square kilometres within the Uvs Nuur Basin, prospective for bedded and domal potash deposits, as well as for lithium and potassium brines.
Even with Mongolia being a relatively undeveloped country in terms of infrastructure, the country borders the resource hungry China.
To provide an insight into the re-rating of potash companies recently, Fortis Mining (ASX: FMJ) this week hit $3.98, compared to just $0.21 three months ago, with South Boulder Mines last week trading to $6.25, up from $0.26 just one year ago.
Ten Things We’ve Learned about Mongolian Democracy (and China)
Attending the Mongolian Economic Forum this week has in part been an interesting case study in two contrasting and competing systems of government. While Ulaan Baatar, the capital of Mongolia, lies closer to Beijing than Shanghai does, it employs a democratic system as opposed to the one-party state. That system itself has only been in operation for 20 years, about the same time as China has risen to become a world trading giant. In such close proximity to each other, the differing political contrasts are quite apparent. So what have we learned this week about Mongolian democracy as compared to China’s one-party state?
· Revolutionary leaders rise to the top
· Democracy is a pain
· Government officials are there to be harangued
· Democracy as a safety valve
· People like their freedoms
· Democracy, by its nature, is subversive
· Differing political systems have ceased being barriers to trade
· Democratic politicians are more fun
· You tend to get more transparency in democracies
· Media freedom doesn’t mean a responsible media
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