Vancouver, BC – February 27th, 2014 – Kincora Copper Limited (the “Company”, “Kincora”) (TSXV:KCC) is pleased to announced the appointment of Mr. Cameron McRae to Kincora’s Advisory Board.

Mr. McRae was most recently President and Chief Executive Officer of Oyu Tolgoi, Rio Tinto’s Country Director for Mongolia, and has over thirty years of mining industry experience. He has broad experience across multiple mineral sectors, held three CEO positions of operating mining companies, led successful M&A projects and was involved in the landmark merger of RTZ plc and CRA Ltd that created the Rio Tinto Group. In his last role Mr. McRae oversaw over US$6 billion investment and the successful commencement of commercial production from Oyu Tolgoi, a world-class copper porphyry deposit.  Mr. McRae was responsible for all aspects of the project including safety, strategy, operations and growth initiatives.

Mr. McRae will assist management and the Board of Kincora with stakeholder relations (including Government, industry, community, and social groups), discussions with investors (including potential strategic groups), and provide general advice (including continued exploration, potential development and M&A activities), as the Company looks to advance activities at its wholly owned Bronze Fox copper porphyry project.

Kincora recently announced some highly encouraging results from one of the most active copper exploration programmes in Mongolia during 2013. Bronze Fox is one of the most advanced, prospective and youngest exploration licenses in the South Gobi copper porphyry belt, located approximately 140km along the Oyu Tolgoi mineralisation trend and 40km from Tsagaan Suvarga.

Mr. McRae who remains based in Mongolia, has today been appointed Executive Chairman to SkyPath Partners LLC, an advisory, strategic consulting and principal investment firm based in Ulaanbaatar. Mr. McRae will be a foundation director of a new Mongolia institute liaising with the business associations and the Government of Mongolia in the development of the nations business environment and policy.

Commenting on today's announcement, Sam Spring, President and CEO of Kincora, said:

"We are very excited to have Cameron join us and being able to benefit from his extensive experience, relationships and networks in the industry, particularly those built overseeing Oyu Tolgoi, the largest single mining investment project in northeast Asia, and in his recently appointed positions.  We believe Cameron will complement our existing teams skill set, in-country networks and proactively add-value as we look to advance our Bronze Fox copper project.

Cameron McRae commented:

"Kincora’s team and activities provides a unique opportunity and natural fit for me. I am enthusiastic to be assisting in the continued advancement of the Company’s activities in Mongolia and copper prospects in the South Gobi region. Bronze Fox is possibly the most advanced and prospective exploration project in that region with a strong existing team in place.”

The Company will grant to Mr. McRae, in accordance with the Company’s stock option plan and ensuring a portion of compensation is consistent with Kincora’s long-term success, options to purchase up to an aggregate of 725,000 common shares exercisable on or before February 27th, 2018 at a price of $0.105 per share.

Atlas of Genetic History Shows Mongol Warriors’ Reach

Photographer: Wang Zhao/AFP via Getty Images
A portrait of Genghis Khan at a hospital in Beijing.
Scientists have mapped the genetic legacy of events of the past 4,000 years that have shaped populations, such asGenghis Khan’s expansion of the Mongol Empire, creating an atlas that extends our understanding of human health and history.
The atlas uses genetic data on 95 different populations to confirm known historical interactions between peoples and shows the impact of European colonialism, the Arab slave trade, the Mongol Empire, and trade near the Silk Road. The study, led by scientists atUniversity College London and Oxford University, is published today in the journal Science.
When comparing a sample of DNA from one of the groups against other populations’ DNA, matching sequences indicate shared ancestry. The longer the uninterrupted matched DNA sequence, the more recent the occurrence of intermingling, said Garrett Hellenthal, lead author and research fellow at the UCL Genetics Institute. Shorter matches indicate that the mixing occurred in earlier periods, allowing the team to estimate when the interaction occurred, he said.
“It’s surprising that some of these signals are so clear, and that they happen in so many groups,” Hellenthal said in a phone interview. “Some 80 percent or more of our sample can be looked at as products of mixtures between two or more genetically distinguishable groups.”
For example, historical records suggesting that the Hazara people of Pakistan are partially descended from Mongol warriors were corroborated by evidence from the study showing that DNA entered the population during the period of the Mongol empire.

Bypassed Invasion

Conversely, analysis of the DNA of the Kalash people, also in Pakistan, show no evidence of mixing with the Mongols, lending support to the understanding that the region was bypassed by the invaders because of its isolated, mountainous geography, Hellenthal said.
Some members of the Kalash community believe they’re instead descended from Alexander the Great’s army, and the analysis didn’t contradict this assertion, given DNA matches with groups in northern and eastern Europe, he said.
While providing fresh insight into historical events, the new research may also have implications for understanding how DNA affects health and disease in different populations. Some populations are more at risk of certain diseases than others, and drug efficacy can also vary.
“Understanding well the genetic similarities and differences between human populations is key for public health,” said Simon Myers, a lecturer in bioinformatics at Oxford University and senior author of the study.
Future research may involve more detailed sequencing to spot rare genetic mutations linked with certain populations and diseases, Myers said.
The research was funded by Oxford University, the U.S. National Institutes of Health, the Wellcome Trust, the Biotechnology and Biological Sciences Research Council and the Royal Society.
To contact the reporter on this story: Makiko Kitamura in London
To contact the editor responsible for this story: Phil Serafino at

Ex-Oyu Tolgoi chief sees Mongolia investment rules improving

Feb 27 (Reuters) - Rio Tinto's former Mongolian chief and boss of the massive Oyu Tolgoi copper project says the country is taking the right steps to arrest a drop in foreign investment but needs to do more to ease uncertainty for explorers and developers.
Four months after parting ways with global miner Rio Tinto, Cameron McRae has joined the advisory board of Toronto-listed explorer Kincora Copper, as it tries to reclaim licenses revoked by the Mongolian government that spawned a C$7 million writedown ($6.3 million).
McRae has also been appointed executive chairman of Mongolia-based consulting firm Skypath Partners, which is aiming to help investors navigate Mongolian regulations and raise capital.
"There's a lot of money that needs to come into Mongolia and it's not just going to get there by itself. The intermediary role is important," McRae told Reuters.
Few would have more experience than McRae in dealing with Mongolian authorities, as he saw multiple disputes unfold while leading the $6.5 billion Oyu Tolgoi project, the biggest foreign investment in Mongolia.
Parliament members attempted to amend a 2009 investment agreement between the government and Rio's majority-owned Turquoise Hill, which owns 66 percent of the mine, in 2011 and again in 2012.
Disputes over Oyu Tolgoi and broader regulatory uncertainty have deterred other investors looking to build mines in Mongolia and led to a 54 percent drop in foreign direct investment to $2.05 billion in 2013 from a year earlier.
Now an outsider to dealings involving Oyu Tolgoi (OT), McRae said Mongolian lawmakers have shown they have learned from mistakes made over the past few years, when the mine investment agreement was regularly attacked in parliament and in the media.
"When I arrived in Mongolia, criticizing the OT investment agreement was almost like a political sport," McRae said.
"I think the government has certainly recognized the importance of resolving those sorts of issues behind closed doors. I think that's a big step forward."
The government owns 34 percent equity in the copper mine, where an open pit operation started exports last year, while construction of an underground mine that could account for 20-30 percent of the economy was put on hold while the owners try to settle disputes.
A major hurdle has been a $4 billion project financing package to pay for the underground mine.
The finance agreement is due to expire March 31, after having been extended last year by lenders such as the World Bank's International Finance Corporation and European Bank for Reconstruction and Development.
"The project finance is also a huge thing for investor confidence," McRae said, as it would be the world's largest project finance, backed by a large consortium of commercial banks and international financial institutions.
"And that will effectively put Mongolia on the map."


Former President and CEO of Oyu Tolgoi and Rio Tinto's Country Director for Mongolia Cameron McRae Appointed Executive Chairman of SkyPath Partners LLC

ULAANBAATAR, MONGOLIA--(Marketwired - Feb 26, 2014) -
The Appointment:
  • Brings exceptional knowledge of the resources industry, locally and globally, to SkyPath
  • Significantly deepens SkyPath's strong Mongolia-based management team with Cameron's excellent track record in governance, executive management, M&A and business development
  • Gives SkyPath a unique understanding of large scale project management, operations, and project finance, including the development of Mongolia's largest mine
SkyPath Partners LLC ("SkyPath"), the Mongolia focused advisory and principal investing firm, is pleased to announce the appointment of Cameron McRae as Executive Chairman, with immediate effect. In addition to his board responsibilities, Cameron will oversee the strategic direction of SkyPath and participate in the financial advisory, strategic consulting and principal investment activities of the firm. He will remain based in Ulaanbaatar.
Cameron has more than 30 years of mining experience, gained across six countries. Lastly, he was President and CEO of Oyu Tolgoi LLC ("Oyu Tolgoi") and Rio Tinto's Country Director for Mongolia, between 2010 and October 2013, based in Ulaanbaatar. Cameron led the construction and commission of the open pit mine and concentrator of Oyu Tolgoi, Mongolia's largest mine. The project was completed ahead of schedule and on budget, setting new national standards in health, safety & environment; business development; training and corporate social responsibility.
Previously Cameron held various leadership positions at Rio Tinto's Energy, Copper, Diamonds and Industrial Minerals' units, including Managing Director of Richards Bay Minerals in South Africa and Murowa Diamonds in Zimbabwe, as well as at the corporate level. He established Rio Tinto Energy's presence in China and led the strategic review of Rio Tinto's approach to Africa in 2010. At the corporate level, Cameron was a leading team member in the landmark merger of RTZ plc and CRA Ltd that created Rio Tinto and worked on other successful M&A transactions.
The resources sector is the single largest industry in Mongolia, with an estimated annual revenue of 1.4 trillion MNT (approximately US$ 798.9 million) in 2014*, and the majority of the country is still unexplored.
"Cameron is the most high profile international business executive in Mongolia today, and we are delighted to welcome him to SkyPath," said Alex T. Kim, CEO of SkyPath Partners. "With his exceptional record of leadership in large organizations, and experience in developing and managing major mining projects, financings and transactions, Cameron's contribution to the firm will be transformative. Cameron's global network, management acumen, and wealth of experience in the mining industry in both commercial, transactional and operations capacities bring significant depth to our management team. His engagement will add real value for our clients and investments, particularly in the resources sector, which is an essential element to the growth and development of Mongolia."
Cameron McRae said: "There is clear demand for a Mongolia-focused advisory and investment specialist that can facilitate and accelerate capital flows into Mongolia. The opportunities and challenges in Mongolia are like no other country in the world and there is no substitute for firsthand experience. I am very excited to be working with Alex T. Kim, the impressive SkyPath team, its shareholders and partners, to serve domestic businesses and international investors in Mongolia. This is an exciting opportunity to join an entrepreneurial company committed to Mongolia's long-term economic development with the vision of bringing together the best Mongolian and international talent, capabilities and resources."
About SkyPath PartnersSkyPath Partners LLC is a financial advisory, strategic consulting and principal investing firm. Headquartered in Mongolia, the firm is focused on bringing international capital, services and capabilities to Mongolian companies and investing in the growth of the country's economy. SkyPath was created to fill an unmet need for a trusted and capable advisor to help Mongolian firms and government and international companies navigate complex financial and strategic issues by providing a bridge to world-class expertise and capital from international sources. For more information, please visit
* Source: Mongolia Ministry of Mining


  • Contacts:
    Batzul Gerelsaikhan
    SkyPath Partners LLC
    Media and Corporate Communications / Analyst
    Phone: (+976) 99178790
    Email: Email Contact

    Alastair Hetherington/Marylene Guernier
    RLM Finsbury
    Phone: (+852) 3166 9886
    Email: Email Contact

Analysis by Dale Choi about Mongolian tugrug depreciation: 27.25% DEPRECIATION Y-O-Y

Mongolian Togrog (Currency)
USDMNT price(Bloomberg)                            1767MNT
Best bid/ask(Bloomberg)                              1753/1783
Market Data ( Bloomberg)

-- Inline image 1

 (Source: Bloomberg)

·      MNT reached historic lows with official reference rate hitting 1776,       y-o-y depreciation of 27.25%( from 1,395.68) and 7% depreciation YTD.
·      According to finalized data for BOP for 2013 from Bank of Mongolia, BOP deficit was US$1.88B, current account deficit was – US$3.155B, decline of US$207M y-o-y
·      Surplus of financial and capital account was US$1.47B , decline of 70% y-o-y, due to decline of FDI surplus by 55% or US$2.4B, decline of portfolio investment surplus by 74 % or US$1.43B
·      January BOP preliminary data shows that current account deficit continues to shrink to “US$ 75.5 million which is decrease of 79 percent or US$ 284.8 million on a YOY basis”.
·      Further, “capital and financial accounts showed surplus of US$ 290.0 million which is decrease of 20 percent or US$ 48.6 million on a YOY basis. This is due to i) 36 percent decline on surplus of foreign direct investment from abroad to Mongolia equaling to US$ 101.3 million, ii) other investments shows decrease of 65 percent or US$ 32.1 million and iii) surplus of portfolio investment increased by US$ 114.1 million compared to a year prior.”
·      According to Bank of Mongolia official foreign exchange reserves stand at US$2.45B as of January 2014
·      According to NSO, “pure”(we understand “net”) international reserves at the end of December of 2013 were US$1.2B
·      Earlier, in November 2013 M.A.D Investment Solutions with warning that they are “not economists nor ..specialists of Mongolia’s macroeconomy” reflected fears of market  saying  “We also see the MNT sliding to a level above 2,000 MNT/USD through Tsaagan Sar 2014 (the Lunar New Year in February)”
·      In August ,2013 when exchange rate was 1544, Mongolian celebrity economist –TV host “Defacto” Jargalsaikhan forecasted that exchange rate will gradually reach 1650 by year end
·      In January 2014, organization called Mongolian Financial Markets Association has forecasted MNT will reach 1600 in by the end of 2014
·      World Bank has stated in January 2014 East Asia and Pacific Economic Prospects
o   "The growth outlook is favorable for Mongolia, Papua New Guinea, and Timor-Leste, but all three countries are facing the formidable challenge related to effective management of a resource boom in the environment of declining commodity prices. Mongolia’s economy is expected to continue to register double-digit growth rates in 2014 and 2015, with growth rate easing to 7.7 percent in 2016 with completion of new production facilities"

o   “The outlook is subject to significant domestic and external risk. An abrupt tightening of international financing conditions could reduce capital flows, exerting financing pressures in the region. The baseline assumes a gradual adjustment of global financial conditions, but a more disorderly reaction of financial markets to a normalization of conditions in the United States and elsewhere cannot be excluded). In such a scenario, capital flows could decline briskly by as much as 80 percent for a period of several months, placing extreme pressure on countries with large current account deficits (Cambodia, Lao, PDR, Indonesia, Malaysia, and Mongolia), overvalued real effective exchange rate (Mongolia), large short-term debt exposures (China, Indonesia, Malaysia, Thailand) and/or limited reserves (Cambodia, Fiji, Lao PDR, Mongolia, Papua New Guinea, and Vietnam).”
o   “Countries where years of expansionary policies have contributed to domestic vulnerabilities are particularly at risk. In such scenarios, those countries that had a significant credit expansion in 2007–2012 (China, Malaysia, Mongolia, Thailand, Vietnam) would experience a spike in debt servicing costs, a sharp rise in non-performing loans, and pressure on the balance sheets of banks, all of which would quickly transmit to lending and investment activity—and in extreme cases could undermine financial stability and lead to a banking crisis .Although public sector indebtedness is relatively low in most economies in the region, if economic cycles turn, public debt could rise rapidly, given implicit guarantees to banking sectors in countries and reliance on state-owned banks to stimulate domestic credit growth (China, Vietnam).”
·      All various scenarios of Mongolia growth which all expected MNT appreciation now have to be revised which is not necessarily a bad thing since Mongolia’s Dutch Disease will be lighter as Mongolia is more competitive now

·      Overall, we view USDMNT price as prices of any assets - random variables impacted  by multitude of interconnected factors such current account, trade balance, FDI, OT revenues, external borrowing by GoM, QE by BoM, Mongolian public confidence, gold sales to BoM by Mongolian gold miners,  etc and  etc . Mongolian economy being a rapidly growing one with large and expensive import bill and inflation directly related to exchange rate and voters being angry at BoM for not “fixing  “ exchange rate make  it even more unpredictable in this regard
·      Random by definition means no one knows the future price of USDMNT
·      Moreover,  we adhere to the view that each market participant actively makes his or her contribution to this ever changing fluctuation/distribution ( for example, herding behavior, self-fulfilling prophecy, etc )
·      Nevertheless, if one looks at USDMNT exchange rate long term it is hard to argue that it is driven by long term fundamentals of Mongolian economy such as balance of payments, and in particular by current and capital accounts balances (especially FDI which is particularly important for financing current account deficit) and market confidence in MNT as a store of value and concern over foreign exchange reserves.
·      Clearly, there are valuable insights into USDMNT fundamentals from last FX crisis of 2009 which was overcome by tightening of monetary policy and appreciation of MNT in 2010 due to the opening of FDI floodgates on the back of signing of OT IA in late 2009.

·      Precarious foreign exchange rate situation is exacerbated by recent negative developments (OT PF dragging on,production cuts to stage 1 unresolved structural issues in coal sector) that highlight vulnerability of double digit growing Mongolian economy stimulated by expansionary fiscal policies, outright QE and artificial construction and banking booms  to further risks from external shocks from capital outflows, limited FX reserves, BoP outlook, high government debt levels on the background of signs of an recovery in more developed economies and increasing global interest rates due to Fed tapering.
·      Despite meaningful progress in UB such as NIL and gold amendment, Mongolian authorities have yet to rise to the occasion decisively using available windows of opportunities and catalyst events such as successfully resolving OT PF, Centerra/Gatsuurt , Minerals Law/106/Standard Bank/Khan, etc issues and to bring in major FDI, build up in various ways official foreign exchange reserves and slow down expansionary policies
·      Mongolian sovereign/political risk remains to be elevated, disconnect and misunderstanding between Mongolia and investors continues to remain substantial and no other major catalyst events are on near term-horizon.
·      We continue to believe that Mongolian metals and mining sector has the ability and capacity to turn around this precarious situation and  reiterate our view that if Mongolia would have used effectively windows of opportunities such as ETT IPO (which would have funded the rail, wash plant, power - the later two ironically the more important) and $4.2B PF for OT last year it would have been rewarded by inflows of FDI beyond its imagination and Mongolia would be now flying bullet proof with the MNT at maybe 1200 and the Mongolian authorities could have much leeway in the policymaking as opposed to having to do all these measures such as new Investment Law, state policy in minerals sector and gold amendment which appear to be too little and too late.
Dale Choi(Чойнхорын Эрдэнэдалай)
Founder, Independent Mongolian Metals & Mining Research

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About Independent Mongolian Metals and Mining Research

Ulaanbaatar-based Independent Mongolian Metals and Mining Research, is a third party subscription-based qualitative and quantitative research and analytics vendor that covers Mongolia-related asset classes, primarily global Metals & Mining equities of issuers with significant operations in Mongolia, Mongolia-related fixed income/money market instruments, currencies and commodities, and specializes in monitoring the country’s political risk in pursuit of delivering superior information and analysis to its clients.

Independent Mongolian Metals & Mining Research claims compliance with the CFA(Chartered Financial Analyst©) Code of Ethics and Standards of Professional Conduct. This claim has not been verified by the CFA Institute.


15 Mongolian nationals on gov't education program

By Park Si-soo

A state-run training institute for public servants is training faculty members of the National Academy of Governance in Mongolia which is committed to educating politicians, public officials and decision-makers at public organizations there.

A total of 15 Mongolian professors and high-ranking officials are being taught on an education program at the Local Government Officials Development Institute (LOGODI) in Wanju, North Jeolla Province. The program will run through March 2.

The LOGODI has provided Mongolian officials with the program since 2002, during which nearly 150 Mongolians were given an opportunity to learn how to improve public services and enable transparency in government.

Officials from the Prime Minister’s Office, the Ministry of Strategy and Finance, and the Ministry of Security and Public Administration will take part in the program to share their knowledge and experiences with their Mongolian counterparts.

“I expect our program will help improve Mongolia’s national competitiveness,” said Rheem Chae-ho, president of LOGODI.

“Mongolian trainees pay keen attention to how the Korean government evaluates performances of its officials. Hence, the program for this year was designed to meet the desire,” the institute said.

It went on, “They will visit the Songpa ward office during the education period to see how the office monitors and evaluates its officials.”

Mongolian trainees will also inspect the country’s biggest science cluster in Daejeon and Hyundai Steel in Dangjin, South Chungcheong Province.

A diplomatic relationship between Korea and Mongolia was established in 1990. Since then the two nations have seen a steep hike in bilateral trade volume. In 2012, Korea exported worth $490 million to Mongolia.

Source:Korea times

A Mongolian Miracle Occurring in the South Korea

SEOUL, South KoreaFeb. 25, 2014 /PRNewswire/ -- "Thank you, South Korea! My dream is to become a plastic surgeon." Nergui, a six-year old boy from Mongolia was able to introduce himself in Korean after spending 6 months in a South Korean hospital.
Having lived his life without a nose and an airway, the Mongolian child can now enjoy a normal life after receiving plastic surgery in South Korea.
The Korea Health Industry Development Institute (KHIDI) announced Nergui Baramsai, aged 6, returned home on January 25th after 8 months of treatment in South Korea.
The surgery for Nergui was significant in that it provided a successful cooperation model between private, governmental and non-governmental organizations as well as becoming the first successful transplant of tissue produced from 3D printing in South Korea.
Nergui was introduced to KHIDI in March, 2013 through the World Vision office in Mongolia with the description, "a nose-less child, cannot be treated in Mongolia". Like the description, being born without a nose is extremely rare and since 2000, there have only been 30 such reported cases with most of the children having died before the age of one.
Accordingly, KHIDI requested the treatment to Seoul St. Mary's Hospital (CMC) and Nergui arrived in South Korea with an uncertainty of a successful treatment. Understanding the child's hardship, CMC decided to provide for all the medical expenses arising from the treatment, surgery and hospitalization. Furthermore, CMC organized a team comprising of doctors from otolaryngology, pediatrics, neurosurgery, ophthalmology, dentistry and others in order to formulate a concrete treatment plan.
Nergui underwent an operation to insert a tissue expander that would work to expand the skin on his forehead. This was necessary as extracting the needed tissue to make Nergui a nose was difficult. After the insertion, his skin was gradually expanded through the injection of saline solution.
After Nergui's skin was sufficiently expanded, the CMC team underwent a secondary operation to make his nostrils, nasal bone and the remaining nose as well as connecting the nostrils to the mouth to allow respiration. With cryptorchism being detected in Nergui's body during his body inspection, an additional urological surgery was necessary extending the whole operation to last for 20 hours.
A month after, the final surgery took place to rid the exterior scars and insert a patient-adjusted specialized stent to maintain Nergui's newly formed passageway for the nasal cavity. This specialized stent was designed by Professor Jo, Dong Woo using the CT images provided by CMC and is also the first clinically applied structure made out of 3D printing technology.
After Nergui's final surgery, three months were spent to observe the post-treatment progress while minor treatments were given to prevent inner-nose contraction. Nergui also undertook practicing for nasal breathing.
When Nergui was finally discharged from the hospital on November 19th, the director of CMC along with doctors from the CMC team, personnel from KHIDI, World Vision and the Embassy of Mongolia in South Korea came together to congratulate Nergui.
In front of them Nergui spoke from his heart, "My dream now is to become a plastic surgeon and to help treat patients like myself."
The Medical Korea Charity had begun to give hope to suffering children from around the world through the South Korean medical technology.
A spokesman from KHIDI stated, "Through the case of Nergui, we have found the suitable model for cooperation between private, governmental and non-governmental organizations," and added, "We have worked since 2011 to promote the excellence of the South Korean medical technology and Medical Korea".
Since the start of Medical Korea, there have been 170 patients from 22 countries that have received pro-bono treatment.
Inquiries: KHIDI, Global Healthcare Business Department
Ji-Young Yang, +82-43-713-8248

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Fourth annual ‘Coal Mongolia 2014’ attracts investors

O.Chuluunbat: “High cost of transportation is the most pressing issue”

On 20 February, the Fourth 
international coal investors’ 
conference and exhibition, “Coal 
Mongolia” 2014 started. Delegations 
from all types of companies operating 
in all areas of mining industry, 
government policy makers, banking 
and financing specialists, researchers, 
a total of over 1000 participants from 
some 10 countries are attending the 
conference. Key agenda items of 
the conference are Mongolia`s coal 
industry`s development strategy, 
competitiveness in the international 
market, project financing, downstream 
processing of coal (value-added 
industrial production) and coking and 
thermal coal projects.
Mongolian first mining portal 
site is jointly organizing 
the Conference for the fourth time 
with the Mining Ministry to attract 
investment in coal exploration, 
production and processing projects in 
Mongolia, to introduce government 
policy on coal industry, to introduce 
environmental-friendly, advanced 
technique, practices and technologies, 
to develop international cooperation, 
and most importantly to increase the 
competitiveness of Mongolia’s coal 
Prime Minister N.Altankhuyag 
gave a speech at the conference 
opening. “Big goals and big works 
are waiting for us. In the coming
years, some large scale projects will 
be implemented in the coal sector 
which has the capability to draw a 
great amount of investment”, he said. 
The Prime Minister highlighted that 
Mongolia agreed with China to supply 
1 billion tons of coal in the next 20 
years and that it is a vital indicator 
of the coal sector’s development in 
the near future. Another big project 
is to build a flammable gas producing 
industry based on the brown coal 
deposit. This industry, which requires 
investment of USD 30 billion, will 
process 50 million tons of coal that not 
only enables Mongolia to provide its 
domestic need of flammable gas, but 
also to supply gas to China. A project 
to produce fuel from coal has also
started. These projects benefit society 
and the economy, including creating 
a new source of energy, developing 
industries and increasing employment, 
said Prime Minister N.Altankhuyag.
The fourth conference is special as 
it is being held soon after Mongolian 
parliament passed the ‘State policy 
on the mineral sector’ and the new 
Investment Law. At the opening of 
the conference, Mining Minister 
D.Gankhuyag gave a presentation 
‘The government policy in the mineral 
sector and the strategic direction of 
coal sector development’, noting 
that government will encourage the 
coal sector by supporting to build
value-added coal product processing 
plants, power plants based on coal 
deposits and to develop semi-coke 
fuels and coal-chemical green field 
projects. During the Mongolian Prime 
Minister’s visit to China, the two 
countries signed a memorandum that 
Mongolia will export 1 billion tons 
of coal to China in the next 20 years. 
To implement this goal, the ministry 
is working to export 50 million tons 
of coal in recent years, said Minister 
D.Gankhuyag. “Mongolia placed 
second in its coal exports to China 
in 2013. However, we supplied coal 
for half the price of other countries”. 
He said that the ministry was holding 
talks with China, Japan, Korea and 
other South East Asian countries about 
possibilities to supply coal, and the 
ministry with other relevant agencies
developed the ‘Coal’ program which 
would be implemented in two stages 
from 2014-2018 and 2019-2025.
According to the minister, the 
coking coal price per ton exported to 
China decreased in each of the last 
three consecutive years. It was USD73 
per ton in 2013, USD98.9 in 2012, 
and USD100.6 in 2011. Meanwhile, 
coal production grew annually while 
the export amount of coal decreased. 
Mongolia mined 33.3 million tons of 
coal in 2013, of which 18.1 million 
tons were exported. In 2012, coal 
production was 31.9 million tons and 
coal export was 20.4 million tons. 
Therefore in 2013, the coal industry 
was responsible for 27.7 percent 
of State Budget revenues and 26.1 
percent of total exports of the country. 
Mongolia’s coal reserve estimates 
stand at 173.3 billion tons and today 
a total of 141 companies have 213 
mining licenses and some 50 coal
mines run actively.
Reports by 30 presenters 
representing the government, 
investment community, technology 
suppliers and researchers will be 
heard and discussed during the two 
day conference. At the beginning 
of the conference, representatives 
of government and state owned 
companies including Minister of 
Foreign affairs L.Bold, Finance 
Minister Ch.Ulaan, CEO of ‘Erdenes 
MGL’ LLC O.Sainbuyan, Department 
head of Ministry of Environment 
and Green development D.Enkhbat 
made reports on government policies 
to foreign investment, impact of 
the coal sector on the government’s 
budget, future trends of state-owned 
companies in the coal sector and 
environmental issues in coal mining. 
While Mongolia sells its coal at a 
low price, it spends more money and 
time than its competitors for its coal 
transportation as it is transported by 
trucks. This issue was the focus of 
discussions. Minister D.Gankhuyag 
said that there is tendency that 
economic importance is preferred 
rather than strategic importance when 
discussing railway gauge resolution
In his presentation ‘Investment in 
coal mining and creating an attractive 
environment for international trade’, 
O.Chuluunbat, Vice Minister of 
Economic development said that the 
government set a goal to increase 
coal exports reaching 30 million tons 
in 2014 through solving problems of 
paved roads, cross-border railway 
and coal trade. He underlined high 
costs and time-consuming coal 
transportation as the most pressing 
issues in the coal sector and said. 
“Preparation work to transfer the paved 
road between the Tavan Tolgoi deposit 
to the Gashuunsukhait border station 
to the ownership of ‘Erdenes MGL
LLC is underway. This action is taken 
to coordinate coal transportation in a 
united way to lower coal transportation 
costs, and improve the financial ability 
of coal companies. A tender to build 
a 435 km paved road in the direction 
of Tavan Tolgoi-Khanbogd-Khanghi 
by concession was announced and 
MCCC Company won the tender. We 
also plan to put a cross border railway 
into operation within the third quarter 
of 2014’. According to Vice Minister 
O.Chuluunbat, the government intends 
to establish agreements with China 
and other big coal buying countries 
to sell coal sustainably for long term 
and to set up a company in charge of 
coal export trade covering companies 
which run mining activities at the 
Tavan Tolgoi deposit. In the future, 
more coal export companies will be 
G.Battsengel, CEO of MMC LLC, 
which runs Ukhaa-Khutag coal mine 
at the Tavan Tolgoi deposit expressed 
the same view with vice minister 
O.Chuluunbat that coal transportation 
is one of key drivers to improve the 
competitiveness of Mongolian coking 
coal. He said that the short-term target 
should focus on a cross-border railway 
including gaining access to the Chinese 
railway network and completing 
the TT-GS railway which includes 
resolving the gauge related decisions 
and negotiating and agreeing transit 
arrangements to access sea-ports 
at Bohai-Rim including upgrading 
Gashuun sukhait to an international 
land-port as a mid-term target.
He also pointed out the importance 
of value-added production, increase 
pricing by offering products 
with consistent quality matching 
international benchmark and 
customers’ requirements, and 
reducing transportation costs by 
increasing product value. He said
G.Battsengel, CEO of MMC LLC, 
which runs Ukhaa-Khutag coal mine 
at the Tavan Tolgoi deposit expressed 
the same view with vice minister 
O.Chuluunbat that coal transportation 
is one of key drivers to improve the 
competitiveness of Mongolian coking 
coal. He said that the short-term target 
should focus on a cross-border railway 
including gaining access to the Chinese 
railway network and completing 
the TT-GS railway which includes 
resolving the gauge related decisions 
and negotiating and agreeing transit 
arrangements to access sea-ports 
at Bohai-Rim including upgrading 
Gashuun sukhait to an international 
land-port as a mid-term target.
He also pointed out the importance 
of value-added production, increase 
pricing by offering products 
with consistent quality matching 
international benchmark and 
customers’ requirements, and 
reducing transportation costs by 
increasing product value. He said
There are over 60 companies 
participating in the Coal Mongolia 
2014 exhibition. Traditionally, at the 
end of the conference, special awards 
will be presented to the person of the 
year in the coal sector of Mongolia, 
the best mining company of the year 
(exporter and domestic supplier), 
the best coal miner and the best 
exploration company.

Mongolian political jokes: Chicken or the egg?

Once, a train full of parliament members was in an accident. When police and investigators came, the local people told them that everyone had already been buried. The police asked, “They all died?” The local people said, “Some of them said they weren’t dead, and tried to prove they were alive, but parliament members always lie. Nothing they ever say is true, so we did not believe them.”
A fifty year-old woman who works as a translator says, “I never heard of political jokes twenty years ago. Our culture is different from Western culture, because people say, ‘Soul of State, forgive me’. It is a kind of prayer believed to protect one from harm and bad things. We followed every rule or resolution that the state released without complaint, until the Mongolian democratic revolution came.”
Before the revolution, Mongolians never shared their opinions and believed they were without the right to think and say something negative about politicians. All women wore the same clothes and boots, and if someone wore another design and handmade clothes, they faced mistreatment and insults.
When a man who saw the drama theater burning said it was nice and that the burning fire looked fabulous and grand, he went to prison for insulting state property. Citizens had no chance at making fun of politicians.
When our translator was 40 years old, young people in Mongolia wanted a change in society and the way the government was conducting its business. They began to secretly meet and talk about change. During their studies in the USSR, that old name of Russia, they learned about Glasnost, and concepts such as freedom of speech and economic liberty.
After the democratic revolution, Mongolians felt free but faced too many mythical and strange things, such as unemployment, alcoholism, and the start of political crimes they had never heard of before.
An 80 year-old woman who was a doctor said, “When I was young, for people who worked in state jobs and represented the government, it was an honor and something to be proud of. But today it has become something of shame and the image of a corrupt liar and fat, rich robber.”
Recently investigated crimes prove this image, yesterday one court presented its decision on the case involving Ch.Gansukh, who was the former Head of the Department of Inspection and Control of the General Department of Taxation, Ch.Enkhbat, who was the Head of the Department of State Budget Income Assembly, and 13 other state employees. This past Monday, the Bayanzurkh District Court began the trial of Ch.Gansukh, which lasted for five days. In primary court, Ch.Gansukh and Ch.Enkhbat were sentenced to eight years in a maximum security prison, and the other state employees were sentenced with three years.
Recently, the Anti Corruption Agency arrested some state employees at the General Intelligence Agency for taking advantage of their positions and stealing huge amounts of money. Nowadays, every month people hear about some corruption trial involving state employees or parliament members.
Even President Ts.Elbegdorj focused last year’s election campaign on “The battle with corruption”, and several times he spoke about how much money state employees eat and their failures.
Another popular joke is about a dead politician’s funeral, and mourners saying he was hard working, genuine, honest, friendly, smart and obliging. “We will be remember him forever and he will stay in our hearts forever.” But the dead politician’s parents listened and burst out, “Please stop this talk! It seems like we’re burying another person, not my son.”
Two housewives are talking each other. The first woman says, “Did you hear about that new income source? If you leave some good comments about the former president on some website, you can earn 5,000 MNT. Why am I joining an online beauty product business?”
Her friend replies, “Five thousand is nothing. They paid me one million to participate in a hunger strike for the former president at Sukhbaatar Square. I took the money and lost weight. Before, we paid money for slimming products, but now we’re earning money to lose weight. The state is developing.”
A bear, fox, and a donkey wanted to build a bridge, but a ranger told them they needed a license to cut wood from the Ministry of Nature. If they could not show him a license, the ranger would not allow them to build. They talked and sent the bear to the ministry. Soon after, the bear came back without a license from the ministry. The bear said all the woods was going to be imported to China and the money would be going to the millennium road. They discussed it again and sent the fox to trick the ministry, but the fox also came back without a license. He said we can get one only through corruption and they were very eager to take bribe, but I didn’t have any money to give them. When the donkey said, “I am going to the ministry,” the bear and the fox started laughing. “We couldn’t get one and we are smart. How can you get one when you are such a loser and just a stupid donkey?” But the donkey went to the ministry, and soon came back in the big black jeep of the minister. “Did you get the license?” the bear and fox asked. “Sure, after the last election, all my relatives started working there. It was easy to get one.”
A parliament member was going home and some hooligans didn’t recognize him and beat him up, demanding vodka money. After they went away, the parliament member stood up and cleaned his clothes. “It’s good that they didn’t recognize me. If they knew I was a parliament member, they would have killed me,” he mumbled.
The former president tweeted: When I was arrested, 4,000 people participated in a hunger strike. The Head of the General Police Department tweeted back: You’re lying. Half of them were our plainclothes police.
One of ministers made a statement about a teacher’s strike, and said about the demands for increasing teacher salaries, “Fifty teachers participated in the strike and all 500 teachers will be taking responsibility.”
These jokes are funny, but for how many more years will we be laughing at these failures of our government? Only the voters can decide.
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