Mongolia expects 12,000 foreign tourists during Naadam Festival

ULAN BATOR, June 29 (Xinhua) -- Mongolia's tourism body said Friday it expects to receive 12,000 foreign visitors during its national holiday of Naadam next month.

According to D. Gantumur, president of the Mongolian Tourism Association, a tourist spends an average of 2,000 U.S. dollars in Mongolia.

Last year, the country received over 470,000 foreign tourists, of whom 17 percent visited in July, he said. The landlocked country expects to receive nearly 900,000 foreign tourists in 2018.

Mongolia has been striving to develop its tourism sector in a bid to diversify its mining-dependent economy.

The Naadam Festival, which is on UNESCO's list of intangible cultural heritage, is an official holiday celebrated every year from July 11 to 15 across the country and features horse racing, archery and wrestling.

Naadam means "games" in the Mongolian language.

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Speech by UK Ambassador to Mongolia at the Queen's Birthday Party 2018

HE Philip Malone, British Ambassador to Mongolia addressed esteemed guests on the occasion of the celebration of Her Majesty The Queen's birthday on 14 June.

Delivered on:

14 June 2018 (Transcript of the speech, exactly as it was delivered)

Your excellency, Minister Tsogtbaatar, Honourable Ministers and MPs, my ambassadorial colleagues and members of the Diplomatic Corps, ladies and gentlemen. A very warm welcome to you all to the British Residence to join us in celebrating Her Majesty The Queen’s Birthday in Ulaanbaatar. I and the whole team at the British Embassy are immensely grateful to you all for coming this evening.

It has been another memorable year for Her Majesty The Queen who celebrated her 92nd birthday this year. As well as hosting the Commonwealth Heads of Government Summit in April when we welcomed to London over 50 Heads of State and Government from around the Commonwealth of Nations, Her Majesty also became a great-grandmother for the sixth time with the birth of HRH Prince Louis to TRH The Duke and Duchess of Cambridge and of course Her Majesty attended the beautiful wedding just three weeks ago of TRH The Duke and Duchess of Sussex.

I am sure you would all agree these major milestones are a further reminder, if one were ever needed, of the remarkable nature of Her Majesty’s long reign and the immeasurable contribution Her Majesty has made to the UK for so many years. And, lifting the words from our National Anthem you have just heard sung so beautifully by Zoloo, “Long may she rule over us”!

Here in Mongolia too, we are enjoying a milestone year with the 55th anniversary of diplomatic relations between our two nations. It is a well-known and often-repeated fact the UK was the first western country to establish relations with Mongolia. But I genuinely believe it is worth repeating as it was a bold step at the time. The world was of course rather different then and was experiencing the depths of the Cold War. The UK was clear that, as a new member of the United Nations, Mongolia was a country the UK wanted to get to know better and with whom to develop areas of mutual co-operation. Since then, our relationship has strengthened and particularly so since the peaceful democratic revolution of the early 1990s.

Today, our relationship is multi-faceted. And rather like the Commonwealth Summit I mentioned earlier, the themes of our relationship revolve around prosperity, environment and security. Let me start with prosperity and a few facts and figures. The UK (jointly with Australia) is the largest foreign investor in Mongolia through the Rio Tinto development at Oyu Tolgoi (as well as being its second largest export market). That investment totals $12bn over the two phases of the Oyu Tolgoi project – equivalent to 100% of Mongolia’s GDP. Oyu Tolgoi is already delivering and will continue to deliver clear benefits to the Mongolian economy through taxes and royalties paid to the government ($1.5 bn since 2010), employment of Mongolian workers, procurement from Mongolian suppliers and, in future, dividends. But, Oyu Tolgoi represents more than that. As well as the potential for expansion and growth at Oyu Tolgoi itself, the project will enable development of a successful mining sector in Mongolia, attracting further investment. If Mongolia makes the right strategic policy choices, then the economic future will be very bright indeed. If not, it would be a major opportunity missed.

Another area where we have been making very significant investment is in helping the Government of Mongolia on environmental issues. This has become a top priority for the UK’s work in Mongolia in recent years. With the UK hosting a major summit on the Illegal Wildlife Trade in October (which I hope His Excellency our Guest of Honour will be able to attend) we have run a number of successful projects to help Mongolia combat smuggling and the illicit trade of some of its many iconic species. This year we also secured funding for the first time from the UK Space Agency for a major project with a British company and the National Agency for Meteorology to improve satellite data available to Mongolia to better tackle the effects of dzud on herders.

Furthermore, the UK has been a strong advocate on the Green Climate Fund Board for Mongolia-focused initiatives, and I’m delighted to see that many of these have come to fruition. We contribute 12% of this fund, which is supporting important solar power plant, Greenhouse Gas Emissions and Ger Redevelopment projects here. Together, this means the UK has committed around $25m to supporting the environment in Mongolia during this and the next couple of years.

Our defence and security relationship is also thriving. This morning I attended the flagship UB Strategic Dialogue at the Ministry of Foreign Affairs. As a permanent member of the UN Security Council, the UK is strongly invested in peace and security in the Asia Pacific. We share similar goals to Mongolia and, like Mongolia, we welcomed the constructive talks between President Trump and Chairman Kim Jong Un which took place in Singapore on Tuesday.

As a further sign of UK commitment, I also attended this morning the opening of the Khaan Quest defence exercise which includes also a British contingent. We hold the Mongolian defence forces in high regard especially their contribution to peacekeeping operations and wish to continue to strengthen our defence relationship.

Looking ahead to the future, the UK will remain committed and, while some may say the UK’s global role might diminish after we leave the EU next year, the opposite will be the reality as we forge a new relationship with our EU partners and strengthen the UK’s presence around the world especially in the Asia Pacific, including here in Mongolia.

The UK also has a huge amount to offer in terms of our soft power which is becoming even more important in the digital age. I am always struck as I travel in this region the popularity of the Premier League and other sports (cricket is taking off here too!), British music, fashion and film and, perhaps most importantly, our educational institutions. It is heartening for me, as a parent, to see the dedication of young Mongolians to purse their studies either following the UK curriculum in schools in Mongolia such as the British School or at university in the UK. The number of British alumni is growing including through the British Government’s Chevening scholarship scheme. We are also keen to help with wider reform in the Mongolian educational system through collaboration with the world-renowned Cambridge Assessment International Education. As you all know, if a society gets education right, everything else falls into place.

Of course, there are many other things which make up the UK/Mongolia relationship and all of you here this evening play your own particular role and I am grateful to you all for that. Before I finish, I wanted to say a big thank you to our sponsors this evening: Uran Tusul, Jaguar Land Rover, Aggreko, Diageo, Chinggis Beer and Ahmad Tea and to our caterers, the Kempinski Hotel and Cozy Corner. And of course to the excellent Embassy team who have worked tirelessly for several weeks to bring this event to fruition. So please enjoy the food, drink, music and company and thank you again for coming.

Published 29 June 2018

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Mongolia’s Place in Northeast Asia’s Renewable Power Grid

Publication: Eurasia Daily Monitor Volume: 15 Issue: 100

By: Alicia J. Campi

During the fifth meeting of the Ulaanbaatar Dialogue on Northeast Asian Security, held on June 14–15, in the Mongolian capital, regional energy and environmental cooperation projects were major highlights (Mongol Messenger, June 15; UB Post, June 16). Progress was particularly apparent on the “Strategy for Northeast Asia Power System Interconnection” (NAPSI). The Mongolian government has secured $1.75 million in technical assistance funding from the Asian Development Bank (ADB) for a two-year study (through May 2019) to explore how the country might more effectively utilize its abundant renewable wind and solar resources in the Gobi Desert, together with Mongolian and Russian hydropower sources, to reduce the carbon footprint of Northeast Asia (NEA—comprising China, eastern Russia, Japan, South Korea and Mongolia). The power sector is the largest source (40 percent) of greenhouse gas emissions in the region.

Electricity grid interconnection has been discussed for two decades in the NEA as a means to build an economically efficient, renewable power system. Research studies have been conducted by Japanese (Researchgate.net, January 2015), South Korean (Renewable-ei.org, March 8, 2018), and Russian (Nautilus.org, January 2012) scientists and power engineers to quantify the economic and environmental benefits from connecting the region’s multiple power grids. The results indicated only modest benefits in lowering total cost because of the large initial investments required to develop the renewables and the transmission lines. However, grid interconnections are projected to become more economically attractive in higher fuel price or lower initial cost situations.

According to the Melentiev Energy Systems Institute, Russian interconnected energy power systems were developed as a part of the Soviet Union’s unified electric power system to link with the systems of both European and Asian former Soviet republics. To date, however, there are only a few short 110–220-kilovolt transmission lines connecting Russia to neighboring Mongolia, China and other Northeast Asian countries. The largest electricity flows within the NEA are exports from Russia to China and from China to Mongolia (E3s-conferences.org, February 2018). Mongolia is the only regional state where international power trade plays a significant role in the domestic electricity balance, and it attractively has the lowest electricity tariffs in the NEA. Its long-term goal is to penetrate the energy markets of China, Japan and South Korea, likely in coordination with Russia.

The latest NAPSI study was undertaken by the Mongolian Ministry of Energy, Électricité de France, China Electric Power Reach Institute (EPRI), and Nova Terra LLC, a Mongolian investment and advisory firm with extensive renewable energy project experience. In 2013, Nova Terra developed the 50-megawatt (MW) Salkhit Wind Farm, the first utility-scale renewable power plant in Mongolia. Moreover, this firm recently began a joint venture with Symbior Solar Limited, a leading Asian company engaged in developing solar photovoltaic (PV) installation in emerging markets. The two companies will be developing a 50 MW PV project in the South Gobi region of Mongolia for $100 million (UB Post, March 20, 2017). Meanwhile, one of the corporate advisors on the NAPSI research project, Energy Charter (Belgium), has advanced the Gobitec concept to produce clean energy from renewable energy sources in the Gobi Desert and to deliver the produced energy to high-demand power corridors via the planned Asian Super Grid (ASG), which will connect Russia, Mongolia, China, South Korea and Japan. This project follows the model of DESERTEC—a mega-project that deploys renewable energy plants in the Middle East and North Africa to meet domestic electricity demand and to export surplus electricity to Europe (Energycharter.org, 2014).

The NAPSI project partners have been introducing their findings in a series of conferences throughout Asia under the general theme of the Asia Super Grid. The first ASG conference was on August 28–29, 2017, in Irkutsk, Russia, followed, on October 30, 2017, in Seoul, South Korea, and then, on March 22–24, 2018, in Kitakyushu, Japan. The next such even is scheduled for mid-October, in Beijing; and a final marketing module workshop assessment will be held in June 2019, in Ulaanbaatar.

The strengthening of integration processes in Northeast Asia—which has been accelerated by the recent summit between Donald Trump and Kim Jong-un—and the potential for developing a single electricity market are the main forces driving the creation of a regional power grid. Yet, despite favorable economic and geographical conditions and technologies, the region has long been plagued by a lack of political will and financial capital for energy cooperation. The Mongolian study follows recent Russian research that concluded, “The unequal status of the national power market institutions within Northeast Asian countries is leading to an inconsistency of national financial, technical and environmental regulation” (E3s-conferences.org, January 5, 2018).

Mongolia has exceptional renewable energy resources. But as of 2012, it also had the third-highest greenhouse gas emissions per capita. And driven by a projected 9 percent annual increase in electricity demand from its own growing mining sector, Mongolian imports of electricity have expanded from less than 5 percent in 2010 to over 20 percent in 2015 (Renewable-ei.org, May 25, 2016). This trend will continue: In January 2018, the Mongolian Parliament exempted imported electricity from Russia and China in its Western Energy System, one of the four domestic power grids, from taxes until January 2021 (Montsame.mn, December 22, 2017).

Although Mongolia boasts rich and cheap fossil fuel mineral reserves, the government is committed to exploiting its renewable resources. It has set a target of 30 percent of its electricity generation to come from renewable energy by 2030. The NAPSI project is currently looking at different cost-benefit scenarios, which will require $5.55 billion of investment by 2026, with another $4.2 billion by 2036, and a total of $57.33 billion in investment by 2051—projected to represent 60 percent of Mongolia’s GDP. While the European Bank for Reconstruction and Development (EBRD) supports such large-scale renewable power investment schemes, this month’s Ulaanbaatar Dialogue meeting expressed concerns that the size of the needed investment as well as the volatile political climate in the NEA remain major challenges to its realization (Mongol Messenger, June 15; UB Post, June 16). Nevertheless, recent hope for substantive progress on integrating North Korea into the regional economy may permit the NAPSI project to begin taking concrete steps toward its implementation—and thus further buttress the strategic dynamics surrounding the ambitious Asian Super Grid concept.

Source:https://jamestown.org

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Khaan Quest 2018 int'l peacekeeping drill wraps up in Mongolia

ULAN BATOR, June 28 (Xinhua) -- An annual multinational peacekeeping exercise, code-named Khaan Quest 2018, concluded with a closing ceremony at Five Hills Training Area near the Mongolian capital on Thursday.

"First of all, I would like to express my sincere appreciation to all participating countries for sending their military servicemen to the multinational military exercise," Mongolian Prime Minister Ukhnaa Hurelsukh said at the closing ceremony of the military exercise.

"Peace and tranquility are the foundation of a nation's development. Therefore, Mongolia always welcomes any initiative to strengthen international and regional peace and security, and actively participates in the UN (United Nations) peacekeeping operations," he said.

A total of 1,400 military personnel from 26 countries, including Mongolia, the United States, China, Russia, Germany, Bhutan and Qatar have participated in the two-week-long military exercise.

Bhutan and Qatar's military servicemen have for the first time participated in the exercise.

Khaan Quest 2018 consisted of a command post exercise and a field training exercise focusing on peacekeeping and stability operations. Individual events include checkpoint control, combat casualty care, water patrolling and civilian protection.

Within the framework of Khaan Quest 2018, the participants provided medical treatment to more than 1,000 citizens.

In addition, cultural and sports events were held during the exercise, with the aim of promoting the traditions and customs of all participating countries.

The peacekeeping exercise was launched in 2003 by the Mongolian Armed Forces (MAF) in cooperation with the then U.S. Pacific Command and a United Nations peace support fund. It expanded to a multinational drill in 2006.

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IMF to allocate Mongolia fourth loan tranche in amount of 36.91 mln USD

ULAN BATOR, June 28 (Xinhua) -- Deputy Managing Director of the International Monetary Fund (IMF) Tao Zhang said Wednesday that Mongolia is making good progress under the Fund-supported program.

"All end-March 2018 quantitative targets under the program were met. Fiscal accounts showed robust performance posting a primary surplus, mainly reflecting a sharp increase in revenue. Meanwhile, international reserves have more than doubled since the start of the program," he said.

The IMF Executive Board completed the fourth review of Mongolia's performance under the program supported by a three-year extended arrangement under the Extended Fund Facility (EFF).

In this regard, the IMF will soon allocate Mongolia the fourth tranche in the amount of 36.91 million U.S. dollars.

The executive board approved the three-year bailout program for Mongolia in May 2017 to help the Mongolian government's economic recovery plan and focus on building foreign exchange reserves, putting debt on a sustainable path, strengthening the banking sector, and securing stable, inclusive growth over the long run.

Under the cooperation program, the landlocked East Asian country has received 184.55 million dollars from the global lender, which helped its economy avoid collapse during the crisis. 

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Mongolian Armed Forces host Khaan Quest 2018 peacekeeping field-training exercise

FIVE HILLS TRAINING AREA, MONGOLIA

06.28.2018

Story by Sgt. David Bedard 

134th Public Affairs Detachment  

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The Mongolian Armed Forces hosted a United Nations peacekeeping field-training exercise June 14 to 28 at Five Hills Training Area, Mongolia, as part of Khaan Quest 2018.

The purpose of Khaan Quest is to gain U.N. training and certification for multi-national participants through the conduct of realistic peace-support operations, to include increasing and improving U.N. peacekeeping operations interoperability and military relationships among the participating nations. 

Alaska Army National Guard Staff Sgt. Oliver Meza, field-training exercise lead, said the training began with academics, which taught service members representing the seven participating nations U.N. doctrine such as protection of civilians, personal code of conduct, rules of engagement and escalation of force.

Meza said instructor staff comprised representatives from several participating nations. Each instructor attended a two-week U.N. Global Peace Operation Initiative train-the-trainer course at different locations throughout the world.

“Primarily, we're teaching peacekeeping principles,” Meza said. “We provide a class prior to the lane-execution exercise – an entire day of peacekeeping principles – so each platoon has a basic peacekeeping knowledge before they begin the exercise.”

The events were spread across the training area with nations rotating in a round-robin fashion. Training included protection of civilians, convoy operations, counter improvised-explosive device operations, presence patrol, distribution of humanitarian goods, checkpoint operations, crowd control and protection of a U.N. designated site.

The U.S. fielded two platoons during the exercise, one from the Alaska Army National Guard's 297th Regional Support Group and another from the U.S. Marine Corps' 3rd Law Enforcement Battalion, Camp Courtney, Okinawa, Japan.

Japan Ground Self-Defense Force platoon leader 2nd Lt. Seiga Kudo said he relished working with other nations during the exercise.

“This is a rare opportunity to get the experience and skill of multiple countries,” Kudo said. “We get to share a lot of information, and that is a very good thing.”

Meza said the exercise trained and tested peacekeeping skills that are quite different from the conventional warfare and counter-insurgency skillsets most of the attendees normally train for.

“There's the old saying, 'Hearts and minds,' and that's the foundation of peacekeeping principles,'” Meza said. “(There are) a lot of negotiations prior to any … kinetic force to accomplish the mission.”

The sergeant said training wasn't the only dimension of Khaan Quest that added to units' peacekeeping capabilities. The nation's hosted cultural events during the evenings showcasing their heritage.

“These cultural events allow students, instructors and command teams to come together for one reason, and that's to learn about each other's culture,” Meza said. “When those events are conducted, you see the benefits of such cultural events out on the lanes. There's an understanding and a respect for other countries and other cultures, and it bridges that communication barrier very well.”

Meza said operating at the Five Hills Training Area provides the multi-national participants a unique opportunity to operate in an unfamiliar environment.

“(A benefit is) units that don't usually have the opportunity to train in such a dynamic training area,” he said. “It allows them the opportunity to do something different that's challenging and rewarding outside of their normal training facilities.”

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IMF Executive Board Completes Fourth Review under the Extended Arrangement for Mongolia and Approves US$ 36.91 Million Disbursement

June 27, 2018

• One year into the program, Mongolia’s economic performance continues to be strong with over-performance on key fiscal and reserves targets.
• Structural reforms to strengthen fiscal policy and the banking sector are moving ahead, but there have been some delays in implementation.
• With high public debt and the economy exposed to global commodity developments, authorities’ strong commitment to the program remains crucial.

On June 27, 2018, the Executive Board of the International Monetary Fund (IMF) completed the fourth review of Mongolia’s performance under the program supported by a three-year extended arrangement under the Extended Fund Facility (EFF). Completion of the review enables Mongolia to draw the equivalent of SDR 26.2088 million (about US$ 36.91 million), bringing total disbursements under the arrangement to SDR 131.0366 million (about US$ 184.55 million).

Mongolia’s performance under the program remains strong. The combination of strong policy implementation and a supportive external environment has helped the authorities over-perform on all end-March 2018 quantitative targets under the program. Progress has also been made on structural reforms, albeit with some delays.

Mongolia’s three-year extended arrangement was approved on May 24, 2017, in an amount equivalent to SDR 314.5054 million, or about US$ 434.3 million1 at the time of approval of the arrangement (see Press Release No. 17/193 ). The government’s Economic Recovery Program, supported by the IMF, aims to stabilize the economy, reduce the fiscal deficit and debt, rebuild foreign exchange reserves, introduce measures to mitigate the boom-bust cycle and promote sustainable and inclusive growth.

Following the Executive Board’s discussion of the review, Mr. Tao Zhang, Acting Chair and Deputy Managing Director, said:

“Mongolia is making good progress under the Fund-supported program. Helped by a favorable external environment and strong program implementation, growth has picked up and there has been a considerable improvement in fiscal sustainability, debt dynamics, and external buffers.

“All end-March 2018 quantitative targets under the program were met. Fiscal accounts showed robust performance posting a primary surplus, mainly reflecting a sharp increase in revenue. Meanwhile, international reserves have more than doubled since the start of the program.

“Reforms to strengthen the financial sector are ongoing with a focus on the follow-up to the asset quality review completed in January. Banks are in the process of raising capital to address any identified shortfalls. In addition, the authorities passed a law outlining when and how public funds can be used to preserve banking sector stability.

“Notwithstanding this progress, Mongolia remains vulnerable to external and internal shocks. It is therefore critical to take advantage of the current favorable economic environment to continue building fiscal and foreign exchange buffers, strengthen the banking sector, and improve the investment climate. A steadfast implementation of the authorities’ reform program is key to build resilience against shocks and ensure continued strong and inclusive growth.”

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: TING YAN

PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG

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Lotte GRS launches burger shop chain in Mongolia

Lotte GRS Co., the restaurant franchise unit of South Korea’s fifth largest conglomerate Lotte Group, is launching fast-food restaurant brand Lotteria in Mongolia with an aim to raise the store number to 10 in the next four years. 

According to Lotte GRS on Monday, Lotteria’s first restaurant in Mongolia opens in Ulaanbaatar, the country’s capital city. Its opening follows after Lotte GRS in September signed on a master franchise deal with Mongolia’s restaurant and theater operator Eugenetek Mongolia LLC. 

The master franchise deal is a common international franchise development contract in which a franchiser allows a master franchisee to operate its brand stores with local franchisees and shares its operation knowhow for fees. 

Eugenetek Mongolia aims to open a total of 10 Lotteria outlet stores by 2022, Lotte GRS added. 

Lotte GRS expects the new restaurant would generate stable profits as it is located in a commercial district with popular shopping centers. Mongolia is also a young country with people under age 35 making up 65 percent of total population, raising hopes for a fast growth of the fast-food restaurant chain business. The popularity of Korean culture including K-pop and drama has also been growing in the country with consumers gaining favorable impression on Korean brands. 

“We’ll keep up efforts to expand the restaurant business in Mongolia based on our international franchise development knowhow,” said a company official. 

Lotte GRS has so far made forays into eight countries including Vietnam, China, Indonesia, Myanmar, Cambodia and Mongolia. It now owns two franchise brands of fast-food chain Lotteria and coffee shop chain Angel-in-us.

By Lee Duk-joo and Lee Ha-yeon

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Why Mongolia is showing interest in SCO

By Li Chao Source:Global Times

During the 18th Shanghai Cooperation Organization (SCO) summit earlier this month in Qingdao, Mongolian President Khaltmaa Battulga said that his country is studying the possibility to upgrade the level of its participation in the SCO and a discussion on this matter has been launched in political and social circles in Mongolia. This is the first time that a Mongolia president expressed such a view. 

Before the SCO, Battulga took part in a meeting on "The prospect of Shanghai Cooperation Organization-Mongolia's participation" in May together with Mongolia's former foreign ministers, security and strategy specialists and experts, foreign relations academics and senior diplomats. Soon after the meeting, Mongolia's leadership discussed the country's participation in the SCO. Such frequent discussion about this issue shows it is being mulled inside the country. 

As the first observer state of the SCO, Mongolia enjoys stable internal security. Its important geographical position and abundant mineral resources lend it the potential to become the energy and transportation hub of the region. Meanwhile, the country has established good relations with surrounding nations, the UN and international society. Hence, Mongolia is qualified to become a SCO member. 

If the SCO has Mongolia within its fold, it will expand the organization in Northeast Asia, connecting it with Central and South Asia. This will not only help SCO members plan and link their infrastructure connectivity, but promote members' common development with Ulan Batar's advantages in mineral resources, livestock farming and tourism. Therefore, China and Russia have constantly encouraged Mongolia to elevate its participation in the SCO. 

However, Mongolia has not applied to become a SCO member, which may be due to three reasons. Strategically, Mongolia follows multi-pillar and "third neighbor" foreign policy. Proactively developing ties with the US, Japan and the EU is an essential part of its diplomatic and security policies and its strategic choice to balance relations with surrounding countries. It still has doubts about the positioning and development of the SCO, worrying about its diplomatic independence and relations with third neighbors after the participation. 

Besides, Mongolia is not troubled by the three forces of "terrorism, separatism, and extremism." The security topics discussed at the SCO are not urgent for Mongolia. And Mongolia's economy mainly depends on trade ties with Northeast Asia and the Asia-pacific instead of Central Asia.

Ideologically, since the 1990s, Mongolia has established and implemented Western constitutionalism, sharing the same values as basis for its ties with the West. For instance, Mongolia has established a so-called democratic trilateralism with the US and Japan. Highlighting the uniqueness of Mongolia's values and ideology, some politicians and scholars inside the country wish it maintain distance from the SCO.

In spite of concerns and doubts, reasons attracting Mongolia to the SCO are developing. The SCO's underlying values, including mutual trust, respect, equality, respect for diverse civilizations and pursuit of shared development have been increasingly clear. The first expansion of membership revealed the organization's openness and inclusiveness over geopolitics. The SCO includes different cultures, religions and development paths and is not dominated by one power. Diversified development and innovativeness will to some extent alleviate Mongolia's concerns that its diplomatic independence and flexibility will be limited if it joins the SCO. With its third neighbor India included in the SCO, Mongolia can communicate and cooperate with surrounding countries and India within the framework of the organization, which will not prevent its multi-pillar diplomacy.

Besides, the SCO has grown to be more relevant to Mongolian development. The China-Mongolia-Russia trilateral meeting is built on the SCO and some cooperation agenda discussed in the SCO are related to Mongolia's development. Mongolia's deepening communications with Central Asian countries in recent years are also among the factors that prompt it to seek SCO membership. 

Like adopting permanent neutrality, joining the SCO is relevant to Mongolia's diplomacy and security. As a landlocked and buffer state, Mongolia insists on maintaining a neutral and balanced foreign policy. Some Mongolian politicians not only worry that joining the SCO will affect the country's independence, but also want the country to keep a distance with neighbors to attract the attention of developed countries like the US, Japan and the EU. Hence, Mongolia is extremely cautious on this issue. 

Whether Mongolia will join the SCO depends on when the country is able to dispel disputes and misunderstandings about the organization. The SCO's future development, relations with the US and links between Mongolia and Central Asia will affect Ulan Batar's decision. 

The author is a junior research fellow from the Russia and Mongolia Research Institute at Inner Mongolia Academy of Social Science. opinion@globaltimes.com.cn

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Mongolia produces over 3 mln barrels of crude oil in H1

ULAN BATOR, June 27 (Xinhua)-- Mongolian authorities said Wednesday that the country has in total extracted over 3.196 million barrels or 433,311 tons of crude oil in the first half of the year.

The Mongolian Ministry of Mining and Heavy Industry said that out of its total production, 3.127 million barrels or 424,631 tons of crude oil were exported to China during the same period.

Currently, Mongolia exports crude oil to China and imports petroleum products from Russia.

The country is planning to extract 8.1 million barrels or 1.1 million tons of crude oil this year, which would contribute 223.4 billion Mongolian Tugrik (93.31 million U.S. dollars) to the state budget.

According to the ministry, Mongolia has implemented 38.6 percent of its export goals for the year.

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Mongolia to host int’l ultra-marathon

ULAN BATOR, June 25 (Xinhua) -- The Gobi March ultra-marathon, one of the 4 races in the Deserts Race Series, will be held from July 29 to August 4 for the first time in Mongolia, the organizer said on Monday.

According to B. Barsbold, director of Discover Mongolia Travel LLC, a total of 230 ultra-marathoners from more than 40 countries will participate in the race.

"Organizing the event is a great opportunity for promoting the country through tourism," he said.

Established in 2002, the 4 Deserts Race Series is an annual series of four 250-kilometer races across deserts around the globe, including the Gobi March in China, the Sahara Race in Namibia, the Atacama Crossing in Chile and The Last Desert in Antarctica.

The Gobi March's challenges include changes in temperature from the hot highlands to the oppressive cold in sand dunes, the open sun, potential sandstorms and variety of terrain - soft sand-dunes, rocky tracks, steep hills, ridges and riverbeds.

The international ultra-marathon has been consistently been named by Time Magazine as one of the Top 10 endurance events in the world.

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Kincora Welcomes A New Cornerstone Investor

The LIM Asia Special Situations Master Fund Limited, a fund managed by LIM Advisors Limited (“LIM”), has acquired a 28.7% interest in Kincora The off-market transactions remove recent overhangs to Kincora’s share price LIM is one of the longest operating alternative investment managers in Asia and it invests across the corporate and capital structure in deep value and special situation opportunities Click to view Full Announcement (June 25th, 2018) Vancouver, BC — June 25th, 2018 Kincora Copper Ltd. (the “Company”, “Kincora”) (TSXV:KCC) is pleased to welcome a new cornerstone investor, the LIM Asia Special Situations Master Fund Ltd (“LASSMF”).  LASSMF has recently acquired, via the secondary market, a 28.7% interest in total to become Kincora’s largest shareholder. Sam Spring, President and CEO commented, "We are very pleased to welcome LASSMF, a fund managed by a pre-eminent Hong Kong investment manager, to strengthen our register and transition out of the recent period of uncertainty that has weighed on Kincora’s share price. The secondary market acquisitions are a clear sign of confidence for the new board and the strategy Kincora is pursuing. Removing the overhang provides the foundation to again focus on advancing the first modern Tier1 drill testing and district scale exploration program in this highly mineralised belt where we hold the dominant position and are looking to drill test two targets this field season, and, be in a favourable position for further expansion activities.” LIM’s Founder, Chairman and Chief Investment Officer, George W. Long, said “We are excited to have secured a strategic position in Kincora given their outlined targets and dominant land holding in the world-class Southern Gobi copper-gold belt. We have been investing in Mongolia for over 15 years and also have experience investing in mining and natural resource projects in Central Asia, Indonesia, Australia, the Philippines, and other parts of the world. The Company has a strong shareholder register backing the team which is credited with multiple Tier 1 copper discoveries, has a proven track record in Mongolia, is pursuing further countercyclical expansion, and we see opportunities to support the Company given the structurally attractive medium term outlook for copper prices”. Highlighted further details Updated Company Presentation: Click Here (June 25th, 2018) AGM Press Release: Click Here (June 19th, 2018) CEO Interview at 121 Mining Investment London: Click Here (May, 2018) Company Presentation at 121 Mining Investment London: Click Here (May, 2018) About LIM LIM is one of the longest continually operating alternative investment managers in Asia, currently managing >$1 billion in liquid and private capital strategies.  Further information: www.limadvisors.com        About Kincora Kincora is a junior resource company engaged in the acquisition, exploration and development of mineral properties, with a focus on Tier 1 copper-gold projects in Mongolia.

For Further information please contact: Sam Spring President & Chief Executive Officer Kincora Copper +61 431 329 345 sam.spring@kincoracopper.com Enquiries: Christine Wootliff Investor Relations 121 Group +852 3628 2420 christine.wootliff@weare121.com

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Indian home minister Rajnath Singh lauds Mongolia's '3rd neighbour' policy in Ulaanbaatar, reaffirms commitment to strengthen cultural bonds

Ulaanbaatar: India appreciates the 'Third Neighbour' policy of land-locked Mongolia, Home Minister Rajnath Singh said in Mongolia, asserting New Delhi's commitment to further strengthen its cultural bond with Ulaanbaatar.

He was in Ulaanbaatar on a three-day official visit to further strengthen bilateral relations and security cooperation as part of sustained high-level exchanges between Mongolia and India.

The 'Third Neighbour' policy of Mongolia, a land-locked nation between Russia and China, refers to its building ties with countries other than these two.

The minister said that India appreciates Mongolia's 'Third Neighbour' policy.

"We hope this will be crucial in further strengthening bilateral cooperation in strategic areas as well as trade and commerce," Singh said in a tweet.

Singh visited the Gandantsegchinlen Monastery in Ulaanbaaatar and met with the Supreme Leader of the Centre of All Mongolian Buddhists and Abbot of the Monastery, Lama Gabju Choijamts Demberel.

"India is committed to further strengthen its cultural bond with Mongolia," Singh said in another tweet.

India and Mongolia, joined by the common thread of Buddhism, are spiritual neighbours, the Ministry of External Affairs said in a statement in New Delhi.

Singh said that he had a fruitful meeting with President of Mongolia Battulga Khaltmaa at the State Palace in Ulaanbaatar.

On Friday, the minister called on Prime Minister of Mongolia Ukhnaagiin Khurelsukh and discussed with him a wide range of bilateral issues including border management, disaster management and cyber security.

On Friday, Mongolia broke ground for the construction of the landlocked country's first oil refinery with the help of a $1 billion loan from India which Singh described as an important milestone in the bilateral ties.

Mongolia is seen as an important strategic partner of India and New Delhi wants to realise the huge potential of bilateral relations with Ulaanbaatar.

Prime Minister Narendra Modi had in 2015 visited Mongolia, the first-ever visit by an Indian prime minister.

The relationship between India and Mongolia was upgraded to a 'Strategic Partnership' in 2015 during Modi's visit, which coincided with the 60th anniversary of establishment of diplomatic relations between the two countries.

External Affairs Minister Sushma Swaraj was also in Mongolia in April this year where she discussed economic cooperation in infrastructure development, energy, services and information technology with her Mongolian counterpart.

Source:/www.firstpost.com

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Mongolia’s largest solar park comes online

The 15 MW solar PV plant was built by a Japanese consortium led by Sharp, in the Economic Development Zone of Zamyn-Üüd, in the province of Dornogovi.

Mongolia’s Prime Minister, Ukhnaagiin Khürelsükh has commissioned a 15 MW solar power plant in the Economic Development Zone of Zamyn-Üüd, in the southeastern province of Dornogovi.

Mongolia is using solar to reduce its reliance old coal fired power stations.

Image: Government of Mongolia

According to the Mongolian government, the facility is the second operational PV facility installed in the country, and the largest to date.

It was built by a Japanese consortium formed by Shigemitsu Shoji Co. Ltd, a trading company mainly handling textiles such as towels and building materials, and electronics supplier and module manufacturer, Sharp Corporation in partnership with Mongolian investor, Solar Tech LLC.

The government added the plant was built with PV components that are resistant to the country’s extreme weather conditions, and that it is expected to generate around 32 million kWh per year. No more details on the project were provided.

Shigemitsu Shoji Co. Ltd and Sharp Corporation have also built another solar plant in the country, a 10 MW project located in the northern Mongolian city of Darkhan.

Construction on the project started in mid-July 2016, while it was completed in January 2018. The project was partly financed by funds from the Financing Programme for JCM Model Projects under the Joint Crediting Mechanism, which is operated by the Ministry of Environment of Japan – an initiative by the Japanese government to spread low carbon technologies to developing countries.

Sharp has taken the leading role in the Darkhan project, supplying PV modules, mounting structures and inverters, while also providing system design and engineering services.

Reduce reliance

Mongolia is using solar to reduce its reliance old coal fired power stations. The largest project under development is a 30 MW project, which is being financially supported by the European Bank for Reconstruction and Development (EBRD) and investment partners. According to EBRD, the four renewable energy projects it has now financed in Mongolia amount to US$114 million in investment and 180 MW of capacity – 16% of Mongolia’s total installed capacity.

Meanwhile, Chinese news agency Xinhua revealed that, on the top of the aforementioned 30 MW of projects, there is another 20 MW solar park under development in the country, and that all are planned to be located in the province of Dornogovi. Completion is scheduled for the end of this year.

Mongolia implemented a FIT scheme over the past year, which resulted in the allocation of around 200 MW of solar and 450 MW of wind power capacity. According to the World Bank, however, these arrangements “were made without proper consideration of the ability of the power grid to absorb this much variable power and without regard to the ability and willingness of electricity consumers to accept the necessary tariff increases.”

As a consequence, the World Bank explained, the licensed developers have run into difficulties in establishing their plants, leaving most licenses in limbo. The FIT granted for solar was $0.18/kWh.

Source:https://www.pv-magazine.com

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Mongolia builds first refinery to ease Russian fuel dependence

Ulaanbaatar, Jun 22 (AFP) Mongolia broke ground today for the construction of the country's first oil refinery with the help of a USD 1 billion loan from India to ease its dependence on Russian fuel.

India's Home Minister Rajnath Singh attended the ceremony along with Mongolian Prime Minister Khurelsukh Ukhnaa in a remote corner of the Gobi Desert.

Mongolia hopes the project will boost the economy and reduce its dependence on foreign gasoline imports. Nearly all of its petroleum products come from Russia.

The refinery and associated pipelines and power plant are being funded with a 20-year USD billion loan from India's export-import bank.

The project could boost Mongolia's gross domestic product by up to 10 per cent, according to a government statement. The economy of the landlocked country sandwiched between Russia and China has struggled in recent years and has been propped up by a $5.5 billion IMF bailout.

The refinery will have capacity to process 1.5 million tonnes of oil annually, according to Mongol Refinery, the state-owned company that will build the plant.

The plant will employ 600 workers and construction is expected to take four years.

It is expected to produce annually 560,000 tonnes of gasoline, 670,000 tonnes of diesel fuel and 107,000 tonnes of liquified gas.

More than 500 kilometres of pipeline will be needed to transport the crude oil from Mongolia's oil fields in Dornod province.

The fields are operated by PetroChina Daqing Tamsag, which has exported 2.8 million barrels through the first five months of this year, according to the National Statistical Office.

China is currently the recipient of nearly of Mongolia's crude oil. Mongolia imported 144,000 tonnes of gasoline worth USD 97.4 million in the first five months of this year. AFP NSA NSA

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