Mongolia Business Focus
A digest of key Mongolian business news & information
11th March 2013
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A selection of key articles, information and links of interest from the last 7 days regarding the business and risk environment of Mongolia compiled by analysts at EBM Consulting ( http://www.ebmconsulting.com.hk ).
EBM provides political risk, market entry, pre M&A, pre JV and enterprise risk due diligence services in frontier markets across Asia including Myanmar (Burma), Vietnam, Indonesia and the PRC, with Mongolia a specialty.
***** The Mongolian presidential elections are expected to take place at the end of June 2013. If you are interested to receive regular updates, commentary and informed political analysis of the election race, how the candidates are faring and what it means for investment & business in Mongolia then contact mark.burns@ebmconsulting.com.hk ****
Sections:
- Business & Economy
- Mongolian Language Media News
- Mining & Investment
- Politics & Security
- Upcoming Events
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Business & Economy
First Investments by Chinggis Bond
(Ref: Info Mongolia, 11 Mar, 2013) On Thursday, March 07, 2013, the Cabinet of the Government of Mongolia held its regular meeting, usually it takes on every Saturdays, but Friday, March 08 was observed as a Public Holiday, hence prior the holiday the Cabinet met and issued several decisions regarding the first investments into the biggest projects to be financed by the Government?s Chinggis Bond and resolved as follows?
Competitive industries require good leadership not hand-outs
(Ref: UB Post, 10 Mar, 2013) Earlier this week I was fortunate enough to take part in one of the most important economic events of the year in Mongolia, the Mongolia Economic Forum 2013. While I was impressed with the range and professionalism of the Mongolian companies present at the event, what caught my attention was the overwhelming number of companies requesting for government support in their respective fields of operation despite the fact that the majority of analysts, and even the President of Mongolia himself, believe that State intervention is the biggest risk in holding back economic growth.
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Bank of Mongolia launches ?interest rate corridor?
(Ref: Business-Mongolia, 07 Mar, 2013) At its meeting on 27 February 2013, the Monetary Policy Committee (MPC) of the Bank of Mongolia decided to establish an interest rate corridor based on macroeconomic conditions, demand for money market development and international experiences on monetary policy implementation.
Japan grants 2 million US dollars free aid to Mongolia
(Ref: News.mn, 07 Mar, 2013) The Foreign Minister Bold Luvsanvandan and the Ambassador to Mongolia from Japan Shimizu Takenori, on Wednesday March 6th, signed a note for 2 million US dollars in free aid to be available to the Mongolian people, supported by the Japanese Government.
Automated parking system to be introduced to Mongolia
(Ref: UB Post, 06 Mar, 2013) On Monday three companies, Sigma Mongolia, Dong Yang Menics and LG International, held an information session to introduce a modern automated parking system that they plan to pioneer in Mongolia.
Mongolia introduces a mandatory deposit insurance scheme
(Ref: Lexology, 05 Mar, 2013) The Deposit Insurance Law establishes a mandatory insurance scheme for the protection of bank deposits. The insurance programme replaces a blanket deposit guarantee issued by the Government of Mongolia under the Law of Mongolia on Issuing a Guarantee for Savings held at Banks dated 25 November 2008 (?Deposit Guarantee Law?).
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Can KFC Wing it in Mongolia?
(Ref: Eurasia Net, 04 Mar, 2013) KFC shocked the fast food world last month when it announced that it had plans to start selling its fried chicken in Mongolia, which has mostly remained terra incognita for global fast food brands. The previous international fried chicken chain to have tried its luck in Mongolia was Kenny Rogers Roasters?, whose gamble on the country lasted only a few years.
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BelAZ might supply more dump trucks to Mongolia
(Ref: Belta, 04 Mar, 2013) Mongolia would like to buy BelAZ dump trucks with the load capacity of 55, 130 and 220 tonnes. Over the past three years, BelAZ has shipped 35 dump trucks with the load capacity of 220 tonnes to Mongolia. They are used at copper and coal deposits there.
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Mongolian Language Media News
Latest Mongolian language media articles translated by EBM researchers
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Eighteen officials to be taken measures against by Anti-Corruption Agency
(Ref: mminfo.mn, 11 Mar, 2013) As of February 2013, the Anti-Corruption Agency has inspected income statements of 78 government officials. Totally 18 officials were taken measures against during the inspection. Two of them will receive warning, the monthly salaries of nine officials will be decreased by 30 percent, four officials will be down-graded and two officials will be fired following the measures taken by the Anti-Corruption Agency.
Additionally, the Anti-Corruption Agency has also organized online income statement reporting among 110 state authorities and local administrations within 45 days. Within the country, a total of 47,000 civil servants have registered of which 22 civil servants have delayed their income statements, and 15 civil servants have refused to report their income statements. Kim Jang Jin CEO of Development Bank was found to be one of them. According to the law, a person who refuses to submit an income statement must resign from his or her position.
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Three licenses issued by MRA in last month
(Ref: mminfo.mn, 6 Mar, 2013) According to the Mineral Resources Authority, three licenses were newly issued in February, 2013. Those licenses were gold mining licenses.? The license for the biggest area was issued to ?Rio? company for gold mining with an area of 1091.35 hectare in Bayan soum Tuv Province.? Two other companies, Bogdyn Gold and ZTKH, are to operate gold mines with areas of 680.31 hectare and 441.48 hectare respectively.? These gold mining licenses are in Arkhust soum, Bayan soum, Sergelen soum of Tuv Province.????
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Mining & Investment
US raises serious concerns over Oyu Tolgoi?s environmental, social impact
(Ref: Unuudur, 10 Mar, 2013) World number two miner Rio Tinto (LON:ASX) has suffered another setback at Oyu Tolgoi in Mongolia after the US refused to vote on World Bank funding to expand the massive copper-gold project in Mongolia. Operator Turquoise Hill Resources (TSX:TRQ), which is controlled by Rio, has already spent more than $6 billion on the mine in the south Gobi desert where it hopes to start commercial production by June.
Mongolia working hard to avoid the mistakes of 2009 with new mining law
(Ref: Mining.com, 10 Mar, 2013) Jargalsaikhany Mendee writing in the Asia Times Online argues Mongolian lawmakers in the process of finalizing a new bill to regulate the mining industry are hoping to avoid the mistakes of the past. The Mongolian parliament has revised the rules governing mining companies and foreign investment in the sector several times since introducing its so-called Gold Program in 1990, but previous laws have not always produced the desired outcomes.
Aspire needs rail approval to start Mongolia coal mine on time
(Ref: Coal Guru, 09 Mar, 2013) Bloomberg reported that Aspire Mining Ltd the Australian company seeking to build a coal mine in Mongolia, said that it needs government approval for a rail line by the end of the year to meet its production target.
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U.S. Abstains on Controversial World Bank Mongolia Mine Project
(Ref: IPS, 07 Mar, 2013) The United States has refused to vote for involvement by the World Bank Group in a massive but controversial mining project in Mongolia. In abstaining, the U.S. representative cited concerns over the potential environmental consequences and an inadequate impact study of the mine plan.
PDAC-Mining legend Friedland looks to burnish his image
(Ref: Reuters, 05 Mar, 2013) Leave it to the irreverent Robert Friedland to brighten the mood of a mining conference in the throes of a deep, collective depression. The outspoken financier, known for his talent for picking winners in a risky business, made a rare public appearance on Monday to trumpet his latest venture, Ivanplats Ltd.
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Politics & Security
Ambassador of Mongolia to the Republic of Turkey, B. Batkhishig Presents his Letter of Credence
(Ref: Info Mongolia, 11 Mar, 2013) Mr. Badamdorj BATKHISHIG, to represent Mongolia as Ambassador Extraordinary and Plenipotentiary to the Republic of Turkey, presented his Letter of Credence to the President of Turkey Mr. Abdullah Gul at the CAnkaya Presidential Palace, Ankara on March 08, 2013.
New Heating Technology Struggles to Combat Pollution Scourge
(Ref: Unuudur, 09 Mar, 2013) Foreign donors and the Mongolian government are pumping millions of dollars into cleaning up Ulaanbaatar?s smoggy winter air, which the US Embassy calls one of Mongolia?s most critical environmental concerns. But as yet another relief project draws to a close, the city has little to show but more stubborn gray haze.
Mongolia Ambassador to Singapore B.DELGERMAA Becomes the Governor for Mongolia at the Asia-Europe Foundation
(Ref: Info Mongolia, 07 Mar, 2013) The Ambassador Extraordinary and Plenipotentiary of Mongolia to the Republic of Singapore, Banzragch DELGERMAA is being appointed as the Governor for Mongolia at the Asia-Europe Foundation (ASEF), effective from March 15, 2013.
Condolences sent on death of Hugo Chavez
(Ref: News.mn, 07 Mar, 2013) President Elbegdorj Tsakhia has sent his condoles today for the death of Venezuelan President Hugo Chavez, to Diosdado Cabello Rond?n, President of the National Assembly of Venezuela. The message reads: ?Please accept my heartfelt condolence for his family, children, relatives and the people of Venezuela on the loss of Hugo Rafael Chavez Fruas, President of Venezuela, on behalf of people of Mongolia?.
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Prime Minister hosts ?Morning New Idea? online meeting
(Ref: News.mn, 07 Mar, 2013) The Prime Minister receives civilian voices and opinions via the online meeting ?Morning New Idea? every Friday. But the Prime Minister was to hold the online meeting this week one day earlier because Friday is a public holiday.
Alaska National Guardsmen Travel to Mongolia for Aviation Maintenance Exchange
(Ref: Alaska Native News, 06 Mar, 2013) Four Alaska National Guardsmen are in Ulaanbaatar, Mongolia, March 4 ? 7 for an aviation maintenance exchange to educate Mongolian Air and Air Defense Force members on the C-130 Hercules aircraft.
Ts.Elbegdorj receives Danish Speaker
(Ref: UB Post, 05 Mar, 2013) At the beginning of the meeting, President Ts.Elbegdorj conveyed his satisfaction with the friendly relations between Mongolia and Denmark, and expressed his gratitude to the Danish government for promoting Mongolia?s democratic changes from the very start and for implementing many projects here through the Danish International Development Agency (DANIDA).
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Upcoming Events
Asia Mining Congress 2013 (12-15 Mar 2013)
The Asia Mining Congress is the region?s leading mining investment event connecting the most important global mining stakeholders with Asian opportunities and capital. In its 9th year, AMC attracts 2,000+ participants and will continue to offer the most authoritative agenda and targeted networking for you to do business with the mining and investment community in Asia.
Venue: Marina Bay Sands Convention Centre, Singapore
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The 3rd Annual Miner and Supplier (14-15 Mar, 2013)
?Ministry of Economic Development? and ?Mongolian Mining Exchange? are jointly orginizing the 3rd forum about mining procurement which named ?Miner & Supplier 2013? in 14 and 15 March of 2013. This forum has been supported and contributed by mining business companies and governmental organizations since its first organizement.
Venue: Chinggis Hotel, Ulaanbaatar, Mongolia
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Mines and Money Hong Kong 2013 (18-22 Mar, 2013)
Mines and Money Hong Kong is where mining companies from around the world come to raise capital in Asia and meet with investors from Hong Kong and mainland China. Cementing its position as a major fixture on the global mining investment circuit, Mines and Money Hong Kong 2013 will bring together over 3500 institutional investors, mining entrepreneurs, brokers and investment analysts for five days of high-value networking, investment analysis and deal-making.
Venue: Hong Kong Convention & Exhibition Centre
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Mongolia Investment Summit (16-18 April, 2013)
With major investors, government officials and mining companies providing insights and discussions at the Mongolian Investment Summit in London you will gain important answers to these questions and more.
This is your chance to meet with and hear from the government, small and large cap miners and other sectors offering fantastic investment opportunities while hearing the fund managers and corporate financiers assessment to put you in the best position to identify high growth investments in Mongolia.
Venue: Kensington Close Hotel, London
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Mongolian Mining Summit 2013 (01 ? 03 Oct, 2013)
Mongolian Mining Summit 2013 will cover a range of topics and issues, including, but not limited to: Investment opportunities and partnerships, Mongolian government role in promoting and encouraging the mining industry, Strategic alliances between Australian and Mongolian entities and so on. Specialist, focused workshops will also comprise a critical part of the conference, as well as organised field trips.
?Venue: to be Confirmed, Perth, WA
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About ?Mongolia Business Focus?
Mongolia Business Focus is a periodic compilation of news and enterprise risk related articles associated with Mongolia. The articles are compiled and distributed by frontier market specialists EBM Consulting, market entry & enterprise risk consultants (www.ebmconsulting.com.hk). EBM has offices in Hong Kong and Ulaanbaatar and associates in 55 countries worldwide. We have over 4 years of experience supporting companies and investors making informed business decisions in Mongolia through the provision of due diligence and related services.
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Source: http://www.ebmconsulting.com.hk/ebm-news/mongolia-business-focus-11th-march-2013/
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