SMG to set up tertiary hospital in Mongolia

SINGAPORE - SINGAPORE Medical Group (SMG) has announced its intention to establish a joint venture for a multi-disciplinary tertiary hospital in Ulaanbaatar, Mongolia with Chono Corporation.

The SGX-listed healthcare services company signed a Memorandum of Understanding (MoU) with Chono Corporation yesterday. Chono is a private investment holding company incorporated in Mongolia which manages portfolios in several areas, including international trade, hospitality services, investment banking and fund management. Under the MoU, SMG will hold a 75 per cent stake in the joint venture, while Chono will hold the remaining 25 per cent stake. Three of the five directors on the Board of Directors of the joint venture company will be from SMG, while the remaining two directors will be from Chono.

The MoU aims to establish a flagship multi-disciplinary tertiary hospital in Ulaanbaatar. About 15 satellite family medicine clinics and mini-hospitals will be set up around the city and country after the flagship hospital is established.

SMG currently has 18 operating subsidiaries and partners in Singapore and overseas.

Dr Jadamba Tsolmon, Mongolian Vice-Minister of Health said, "Mongolia is in need of a good tertiary hospital and Singapore medicine is highly regarded internationally. Each year, Mongolians spend a lot of money seeking medical treatments overseas. Singapore Medical Group's interest in Mongolia is in line with the Mongolian Government's plan for the development of the healthcare sector. Teaming up with Singapore Medical Group will help elevate the standard and profile of Mongolian healthcare."

Mr Enkhboldsodon Tumurkhuyag, President of Chono added, "It is our opinion that Singapore Medical Group is a fundamentally sound healthcare provider and is a well-run healthcare group in Singapore... Mongolia is fast changing and as you know with change brings much opportunity and also an ever increasing demand for better healthcare."

Mr Felix Huang, Executive Chairman of SMG said, "We are extremely excited to work with Chono Corporation to establish a world-class tertiary multi-disciplinary facility in Ulaanbaatar, and we aim to offer the best standards of quality healthcare services to Mongolians.

"A Pan-Asian presence will open up a large potential market as Asians increase their awareness of the pivotal importance of good preventive and curative healthcare. We believe that this strategy will be instrumental to making our international footprint in Pan-Asia, which is the next phase of growth for the Group. Our entry into Mongolia is testament to the robust pace with which we aim to expand within the Pan-Asian region," added Mr Huang.
source: http://health.asiaone.com

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Era Models Agency Booms in International Market

The fashion industry is a product of modern age, it is applied art dedicated to clothing and lifestyle accessories created with the culture and social influences of a specific time. In Mongolia the industry has started its in early 90’s.

One of the first Mongolian agency “Era” started in 1991, by D.Erdene-Tuya.”Era” has the leading and most comprehensive database of models throughout the country. Today agency has more than 50 child-models, aged 5 to 12; 50 adult model, male and female, 15 to 25 years old; 12 professional photographers, 4 instructors who help new models to get knowledge necessary to start working.

Since that, Mongolian Models have experienced working in Germany, Korea, Japan, China, Belgium, France, and Italy.

A Models agency’s number one purpose is to find models capable to stand-up on Runway at Fashion show, and those who may become new cover or brand face. Beside these models are frequently employed in business. Such a case can be TV. In 2001, “Era” model agency started its cooperation with SBN-TV broadcasting and lanced new TV show ”New Faces”. The program is dedicated to models, fashion look, Mongolian brands. For young models the show may became career-starting point.

Goyol Naadam fashion week, Torgo Traditional show, Urlakh Erdem are just few examples of events where “Era’s” models are employed. Brand new cars presentation cannot happen without pretty looking young ladies. Naran Trade has become one of the constant partners of “Era”, as it always chooses models for such a presentation.

World’s famous brand such as Samsonite, Delsey, Swarovski, Tissot, Swatch, Adidas, CK invite models for their special events.

Also they were hired for Mongolian Expo in Japan in 2005. In 2008 were employed at Milan winter fashion week.

This year, July 9th, Fashion TV’s owner Michal Adams came to Mongolia to introduce new product-vodka called “F”. Such a honorable guest attended “Altai cashmere” fashion show, where five “Era’s” model where among the chosen for the show.

Next year “Era” celebrates 10-year anniversary and plans to conduct list of dedicated events
source: Ub Post

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Working for a Mongolian company

Written by G.Chingis

Recently, many foreign executives and professionals have joined Mongolian companies and state organizations. Of course, for them this article might not be so interesting. Nevertheless, if this trend continues, many new foreigners will soon join Mongolian organizations and companies.

You and the boss

Most Mongolians bosses will prefer to give you a lot of freedom in your daily routine. The biggest reason for this is the lack of a clear job description. There are certain reasons for this. First, he/she probably does not know exactly what you should do. But, this could be a great chance for you to take some initiative on your part. Also, your boss might simply want to see how you will deal with that uncertainty.

In the case of a foreigner being a CEO, you will have owners/founders, and members of the Board of Directors to deal with. The Board of Directors is a new feature in Mongolian business life. Therefore, you should expect to see the same situations that would arise in a western company. Basically, there are two types of Board of Directors. One is the nominal, where you will have the real owners and/or their relatives. In this case, you will not have so many interactions with them. Meetings will be quite short and quite rare.

The other type is the semi-western type. You will have some kind of independent Board members, of whom; some don’t actually work for your company. This is still different than in western companies and you probably won’t get much input from them. They are usually happy to be on the Board, but they will be little interested to be actively involved. Very often, the CEO will be more powerful than the Board of Directors; in this case you might be more powerful than your Board of Directors.
In terms of minor Mongolian nuances to working here, Mongolian bosses usually do not bring their spouses to company gatherings and this would be the same for the rest of your Mongolian counterparts. If you work for a Mongolian boss who likes horses or owns horses, you have to go to see them at least once a year for Naadam. Many Mongolian bosses also like to go to casinos. Therefore, you might need to join them on a trip to Seoul or Macao. A recent case of 14 million USD, which was misused by a senior accountant from the Savings Bank is just once example of how many politicians and business people like to waste money in casinos.

Company celebrations
Usually, there are several holidays when you will have huge company parties. The big ones are New Years, International Women’s Day, on the 8th of March. This is also a public holiday. Sometimes, this will be combined with the celebration of Men’s day on the 18th of March but this is not a public holiday. This is essentially Mongolian Army Day. This is a leftover from our Russian/Soviet influence which is celebrated even now. In a company, the male/female ratio varies. Usually, there are more female employees than male employees. For the Lunar New Year, usually there is a kind of breakfast celebration after the holiday on the first day back to work. Mongolians typically wear their national costumes, especially women. They will exchange snuff bottles and they will eat meat and dairy products, also they might drink vodka or airag. Usually, this is a short event lasting one or two hours, or even less.
Of course, as a foreigner you might refuse to go, especially if you are not a drinker. But Mongolians will be happy to see you. In the end, it is a good cross-cultural experience. Usually, these parties will continue in some fashion for the rest of that day. Your counterparts might go to a bar, to a night club, or a karaoke club. Sometimes, they might go to someone’s house or apartment. Very often, Mongolian employees will try to beat their bosses or they might even fight each other. It is possible to say that this is also a part of Mongolian customs.
All of the above mentioned celebrations are actually winter celebrations. In the summer, there is only Naadam which is on the 11th of July. There typically is no official company party for this.

You and Your counterparts
Usually, you will have more female counterparts than male ones. All of them might ask you for English lessons. Female counterparts will like to tell horror stories about their miserable life with Mongolian husbands. Everybody will like to borrow money from you. It might be any amount from 1 thousand togrogs or more, or it might be something really big. This is a common cultural thing among Mongolians. There is a lot of cash in Mongolia which circulates in the informal economy. This is very often illegal money from or for corruption purposes; or it might be cash from overseas. One high level politician is said to have bought a 1 million USD house with money from his sister, but his sister is working as a dish washer in Germany. Anyway, the taxation framework and liberal anti-corruption system supports the circulation of huge amounts of cash in Mongolia. Anyway, it is better not to lend money. It will be difficult to collect after.

Cross-cultural female/male relationships
As mentioned before, there will be more female counterparts than male. Therefore, you will hear a lot about drunk and hostile husbands. Usually, it is typical to tell foreign counterparts such stuff. Also, it is a Mongolian tradition not to say good stuff about your spouse. You will not see any code about female/male relationship in the work place. The Concept of sexual harassment is just now coming under public scrutiny in the media. This is still a new concept here. But we should consider that Mongolia is a country with a nomadic livestock economy. For 70 years we had a socialist economy with several factories, where most workers were young people. The Communist Party (Mongolian People’s Revolutionary Party) was very strict in terms of adultery, which was severely punished. One future Mongolian Prime Minister was once punished for divorcing his wife, and was sent to exile from Ulaanbaatar. Now thanks to democracy and a free flow of information, there is a more tolerant approach towards male/female relationships in the work place.
We now live in a global economy. Most customs, which we call Mongolian, are quite similar to those of other cultures. But in a small nation such as Mongolia, people like to see that foreigners accept our rules of engagement. Foreigners, who accept that, are typically very successful in Mongolia.
Nevertheless, Mongolians men do not like to see foreigners marrying Mongolian women. However, it is a different story if a Mongolian guy will marry a foreign woman. Since socialist times, there were many marriages of Mongolian women with Eastern European men. Therefore, marriages with Caucasians are more or less acceptable. Mongolians do not like to see marriages between Chinese and Koreans. If you open any Mongolian newspaper at any given time, there is usually at least one negative article about Koreans who are buying and/or mistreating Mongolian women
source: UB Post

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Moody's Assigns Ratings to Tdb's Mtn Programme Notes

(Source: Info-Prod Research (Middle East))trackingMoody's Investors Service has assigned a Ba3 rating to senior unsecured notes drawn under the USD300 million foreign currency Euro Medium Term Note (EMTN) programme of the Trade and Development Bank of Mongolia LLC (TDB). The outlook is negative. "The rating and outlook on the senior unsecured notes are the same as the EMTN program's and the bank's current foreign currency issuer ratings. The negative outlook was placed in September, 2009," says Yvonne Zhang, a Moody's Vice President and Senior Analyst. The senior notes represent direct, unconditional, unsecured, and unsubordinated obligations of TDB; and will help diversify the bank's funding sources and support future loan growth. TDB's long-term foreign and local currency debt and issuer ratings are Ba3; its long-term local currency deposit ratings, Ba3; its long-term foreign currency deposit ratings, B2; its short-term ratings, NP; and its bank financial strength rating, D-. The outlook for these ratings is negative, except for the foreign currency deposits rating, which has a stable outlook. Moody's last rating action on TDB was taken on November 12, 2009, when the outlook on its B2 long-term foreign currency deposits rating was changed to stable from negative. TDB is headquartered in Ulaanbaatar, Mongolia

It reported total assets of MNT806 billion (approximately USD558 million) as of December 2009.

Originally published by Info-Prod Strategic Business Information.

(c) 2010 Info-Prod Research (Middle East). Provided by ProQuest LLC. All rights Reserved.

A service of YellowBrix, Inc.

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Turkey, Mongolia sign memorandum of understanding

Turkey and Mongolia signed a memorandum of understanding during the sixth term joint economic committee meeting in Ulan Bator on Tuesday

Turkey and Mongolia signed a memorandum of understanding during the sixth term joint economic committee meeting in Ulan Bator on Tuesday.

The memorandum of understanding was signed by Turkish State Minister & Deputy Premier Bulent Arinc and Mongolia's Environment & Tourism Minister Luimed Gansukh.

The two ministers said that the strong historical ties between Turkey and Mongolia would also help develop the economic and commercial relations.

Also two other protocols were signed on share of experience between KOSGEB (Small & Medium Enterprises Development Organization of Turkey) and its Mongolian equivalent as well as cooperation on development plan of Turkish State Planning Organization and Mongolia's planning unit.

After signing the protocols, Arinc departed from Mongolia.

Arinc had arrived in that country on October 23.

source:http://www.worldbulletin.net

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Ivanhoe unit takes stake in Aspire Mining

shares in Aspire Mining Ltd rose after an Ivanhoe Group company took a substantial stake in the junior coal explorer.

Aspire shares were up 2.5 cents, or 13.16 per cent, at 21.5 cents at 1346 AEDT.

Aspire, a Perth-based company, on Monday said the Ivanhoe-controlled SouthGobi Resources had taken a 19.9 per cent interest in Aspire via a placement of 105.7 million shares at a price of 19 cents per share, raising $20.1 million.

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Aspire also said the companies, which were focused on Mongolia, had formed a strategic partnership to fast-track development of Aspire's wholly-owned Ovoot coking coal project in the country's north.

Aspire chairman David McSweeney said the deal with SouthGobi Resources would speed up the company's transformation from a coal explorer to a coal mine developer.

SouthGobi president and chief executive Alexander Molyneux said Aspire was an exciting strategic partner, given its large volume of potentially high-quality coking coal in Mongolia.

Mr Molyneux said SouthGobi Resources would provide Aspire with in-country expertise.

SouthGobi Resources, which is 57 per cent held by Canada's Ivanhoe Mines Ltd, produces coal at its Ovoot Tolgoi mine in Mongolia's south.

Aspire is yet to secure offtake partners for the Ovoot project and says only 10 per cent of the area has been explored.

source: http://news.smh.com.au

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World Bank says Mongolia’s recovery impressive and broad-based

The World Bank’s Quarterly Economic Update says Mongolia has staged an impressive recovery from the steep recession of late 2008 and early 2009. Moreover, the economic recovery is becoming broad-based. Strong demand for copper and coal from China are fuelling the recovery, and are also helping to substantially improve the external balance. And imports are up by 55 percent in August on a year-on-year basis. The exception is the agriculture sector, due to the devastating impact of the dzud during the winter months, which wiped out substantial numbers of livestock.


Consumer prices show a rise in the headline inflation to 11.1 percent in August, following a dip to 8.8 percent the previous month. Rising core prices (which exclude volatile food and energy prices) contributed to half the increase in the headline number, with the remainder accounted for mainly by rising food prices. Price pressures are unlikely to abate in the coming months. First, the recent export ban in Russia and weather disasters elsewhere have led to a resurgence in the international prices of grains, which are mostly imported by Mongolia. These rose by 7.6 percent on the month in August. Second, the 30 percent wage and pension increase for public sector employees planned for October and the cash transfers currently taking place will help to keep demand side inflation pressures strong.

Fiscal balances have improved strongly in step with mineral-related revenues. Mongolia’s public finances are improving: on a 12 month rolling basis, the fiscal deficit fell to just 0.4 percent of GDP, down from 10.6 percent in August last year. Excluding net lending, the budget balance swung into a small surplus of 0.8 percent of GDP, its first since October 2008. In large part this recovery reflects the support to government revenues from buoyant commodity prices. The bulk of the increase in revenues was accounted for by the Windfall Profits Tax and domestic corporate and indirect tax revenues, reflecting the underlying improvement in the economy and the recovery in commodity prices.


However, as fiscal balances improved, pressures to increase spending also mounted. One round of cash transfers to redistribute the mining wealth has already taken place: MNT 70,000 per person in February. This is being followed by another round of MNT 10,000 per person per month beginning in August and lasting until December. Meanwhile, in July, parliament had approved government proposed amendments to the original 2010 budget which envisaged a substantial increase in government expenditures.


As the elections of 2012 draw closer, spending pressures will amplify even further. Fortunately, Parliament recently passed a Fiscal Stability Law, which forces 2011 revenues to be based on a long-term copper and coal price trend, and starts setting the resulting savings aside in a stabilization fund. The law targets a structural budget deficit (along the lines of Chile’s structural balance rule) of 4 percent of GDP in 2011, falling to 2 percent by 2013. It also puts a ceiling to debt (at no more than 40 percent of GDP) and restrains expenditure growth to not more than the rate at which the economy is growing.


The IMF Board concluded its final review of the Stand By Arrangement on September 9. The final review (a combined 5th and 6th) would have allowed the disbursement of US$46.4 million (two tranches). But the Mongolian authorities will not draw on the last two tranches, as the international reserves of the Central Bank are at an all time high, while the exchange rate has appreciated by 9 percent since the start of the year.


In the banking sector, NPLs and loans with principal in arrears as a share of total outstanding loans fell to 17% in August from a peak of 25% in Nov 2009. But current levels are still very high. The recent increase in inflation is rapidly bringing real interest rates down, and may lead to a return to negative real interest rates, particularly on deposits. Meanwhile, concentration of bank lending has increased with the 50 largest borrowers accounting for almost 30 percent of total loans (roughly MNT 863 billion).


In the fall session, Parliament is expected to debate and enact a number of important reform laws, continuing the post-crisis reform agenda. This includes a banking sector capacity strengthening and capital support program which contains, as a last resort tool, a stand-by bank recapitalization facility with proper covenants to protect the public funds. Parliament will also debate a social welfare reform law which would set the stage for the introduction of a targeted means-tested poverty benefit, replacing the formerly universal transfers. Passage of the law is also linked to the last tranches of the budget support operations of the ADB and Japan. Finally, Parliament is also expected to adopt a new Organic Budget Law which will lay out a new process of budget management, including improvements in public investment planning, and fiscal decentralization. For 2011 and 2012, in the run-up to elections, the challenge for Parliament will be to implement and adhere to the landmark laws it will have passed in the wake of the crisis, and to avoid the temptations of unsustainable increases in spending.

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About 100 Mongolians spent USD7 million to buy MMC shares at Hong Kong IPO

After Energy Resources or Mongolian Mining Corporation (MMC) successfully traded its shares at an international stock exchange, questions have resurfaced if ordinary Mongolians can ever hold shares in companies that work here. D.Achit-Erdene, President of the Mongolian International Capital Corporation (MICC), answers our journalist’s questions on the issue.

What did Mongolians have to do to buy shares in the IPO?

They had to submit a copy of their passport and citizen ID card to MICC, along with details of their bid.

We initially wanted a minimum of USD10,000 to open an individual account but later reduced it to USD5,000. We help people to sell and buy not only at the Hong Kong Exchange but at other exchanges in the world also. The holder can monitor his account on the Internet and can also issue instructions online.

How much of the shares were bought by individuals and non-financial institutions?
An IPO at a large international exchange has to observe very detailed rules. For example, 90% of the shares MMC offered were reserved for large investors or funds, leaving only 10% for small investors. We were happy that 1% was kept for Mongolian citizens. We were surprised by the strength of the demand. The 1% meant USD7 million, which is quite a large figure, but we received enough orders to stop booking after two days. We then submitted fresh applications to the secondary market.

What is the difference between buying at the primary market and at the secondary market?
Prices are fixed at the primary market. This was HKD7.02 per share. This would change in the secondary marker according to demand. The demand continued to be so strong in Hong Kong that prices kept rising, and were 20% more after five days. At close of trading on October 19 the rate was HKD9.60. This fell to about HKD9 on October 20.

Anybody who wants to buy shares can do so through MICC?
Certainly. They can come in person to open an account or apply through website http://www.micc.mn/. We trade in all shares at any exchange of the world. So many Mongolians were interested in the MMC IPO because they knew of the company and trusted its management, not because the shares were sold at Hong Kong.

Is there a limit on the number of shares one can buy?
Shares were sold in blocks of 500. Anybody opening an account with us with a minimum of USD5,000 could ask to buy not only MMC shares, but those of any other company listed at the exchange. These include Google and Citi Bank shares.

Are there other Mongolian companies considering an IPO at the international market?
Kharanga Iron LLC will have an IPO in Australia in December. Two other companies are also making preparations and we have placed advance booking. We also traded in Khunnu Coal stock when it had an IPO in Australia last February.
MMIC acts not only as a broker but also offers help in raising capital to companies active in Mongolia. We publish the MICC Mining Index. Our representatives meet with company officials and offer results of our studies.

Apart from MMIC, which other brokerage firms dealt with MMC shares?
We had been allotted special rights at the primary market but there was an Australian company and others in the secondary market.

Could organizations and companies buy shares?
Yes, they can, just like individuals, but there is more paper work involved.

How many Mongolian citizens bought MMC shares?
I cannot give you the exact number as such records were not kept. My rough guess would be about 100. We would of course like the number to be more.

What percentage of its shares did MMC sell at the IPO?
It sold 719 million of its 3.6 billion shares, which is about 20%. The prospectus document has all the details and can be seen at the website www.mmc.mn.

Who are now the major shareholders in MMC? There is rumor the Chinese have bought most shares?
The Hong Kong Exchange is big but the London and New York exchanges are the centers for mining companies. Generally, shares at the HKE would be bought by American and England investment funds. The HKE is stronger in retail trade. This was seen at the MMC IPO too. I would guess 50% of the shares offered were cornered by West Europeans, while US and British investors specialized in mining were also active, because JP Morgan and Citi Bank managed the IPO
source: www.news.mn

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Letter From Mongolia

We had a great season with many big fish, including the monster in this photo which hit a sculpin pattern I tied with a chunk of rabbit fur the size of a ballpark frank. Lost the beast once after nearly a minute on the hook, under heavy pressure, and when the momentarily disheartened angler (Jim Hickey of Jackson, WY) cast again, it attacked like a crocodile, the water pushing up and over its head in a standing wave.

The conservation efforts of local residents, the World Wildlife Fund, the Tributary Fund (www.rareplanet.org) and responsible outfitters seem to be paying off, with catch-and-release and single barbless hooks now mandated throughout the country. We also recaptured three tagged fish (notice the scrap of yellow below the dorsal), and now have clear evidence that they can grow two to three inches per year when nobody shoves a hand through their gill plates.
I even managed to catch a few myself this year. This one struck on perhaps my fifth or sixth cast of the season, after a long shuttle and just a few hours of sleep, while waiting for the plane to arrive with the clients. Another guide grabbed my camera, and managed to capture that instant when we first glimpsed the distance between head and tail. Even on what we consider a "smaller" fish, that measure absolutely redefines the proportions of trout fishing.

Peter Fong's stories and photographs have appeared in Fly Rod & Reel, Gray's Sporting Journal, the New York Times and many other publications. He works as a guide for Mongolia River Outfitters (www.mongoliarivers.com).
source: http://www.flyrodreel.com/node/16080

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Mongolia to import B.C. lumber

Mongolian wood frame sector looks towards B.C.

The government of Mongolia plans to build 96 regional government centres from B.C. lumber and Canadian wood technology, Forests and Range Minister Pat Bell announced recently.

"B.C.'s 'Wood First' approach to build more public buildings out of wood is gaining recognition around the world," Bell said. "The government of Mongolia has recognized that B.C. wood products and wood-frame construction are ideally suited to government and institutional buildings and for housing."

Over the past few years B.C. has helped Mongolia adopt its building code for wood- frame construction, train officials and inspectors, and set up a Mongolian wood-frame construction sector.

"Wood-frame construction is energy-efficient, climate-friendly, and well suited to our needs in Mongolia," Prime Minister Sükhbaataryn Batbold said. "With the support of British Columbia, our government has adopted Canada's wood-frame building code and will be using Canadian wood technology and wood products from British Columbia in new public buildings around Mongolia."

Bell and Batbold commented after the signing of a memorandum of understanding between Mongolia and B.C., through which B.C. will provide technical expertise to assist in the design and supervision of the project. Under the MOU, Mongolia agrees to buy all structural lumber for the centres from B.C. suppliers.

Each centre will use more than 1,000 cubic metres of B.C. wood products and include a school and dormitory, health-care facility, government administration building, and recreation centre. This will equate to approximately 100,000 cubic metres of B.C. wood products over all 96 regional centres.

Asian nations collectively, including Mongolia, are the fastest-growing market for B.C. wood products. Sales to China were up 50 per cent in the first seven months of 2010, while in South Korea, exports were up 30 per cent for the same period of time. B.C. exports about 80 per cent of all lumber produced.

In addition to using wood in new public buildings, Mongolia has an acute need for new energy-efficient, modern housing for a huge part of its population. Industrial and mining development over the next decade is expected to fuel much of Mongolia's redevelopment.

Efforts will continue to position wood products from British Columbia to take advantage of these opportunities.

The MOU is being managed through Forestry Innovation Investment, the Province's marketing agency for forest products. It runs international marketing programs in collaboration with the forest sector and Natural Resources Canada.
source: http://www.bclocalnews.com

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SPECIAL REPORT-Mongolia's fabled mine stirs Asian frontier

The new gold rush to develop Mongolia's resources could make it the world's fastest-growing economy over the next five years, according to Renaissance Capital, which projected GDP will almost quadruple to $23 billion by 2013 from $6 billion today.

To profit from its untapped iron ore, coal, copper, uranium, silver, and gold deposits, the government needs to build a vast network of roads and railways to ship the minerals out of the country's vast interior. More than 10 "strategically important" deposits are in development including the Dornod uranium deposits, the Asgat silver deposit, and the massive Tavan Tolgoi coal site.

Tavan Tolgoi, like Oyu Tolgoi, inspires awe among resources investors. It is a deposit of approximately 7.5 billion tonnes -- believed to be the world's largest untapped coking coal site. Most of its projected 50 million tonnes of production will go to China.

The trick is getting it there. To that end, Mongolia aims to build a massive industrial park in Sainshand, capital of Dornogovi Province, to help transport metals and coal to customers around the world. The facility will include copper smelting and coal processing plants, as well as railroads to and from the park.

Much like the debate around Oyu Tolgoi, controversy has dogged the government's infrastructure plans from the beginning. In April, Prime Minister Sukhbaatariin Batbold threw his support behind an east-west railway plan, connecting the Tavan Tolgoi coal deposit to the eastern city of Choibalsan via Sainshand, at a cost of around $2 billion, according to one estimate.

Some experts say it would be far more sensible, and half the cost, to build the railway south towards China, which bought 70 percent of the country's exports last year.

"The biggest risk is government policy -- one of the examples is on infrastructure," said Masa Igata, founder and CEO of Mongolia-based Frontier Securities. "It makes economic sense to connect Tavan Tolgoi to China's border. However, parliament has decided to prioritise Tavan Tolgoi to Sainshand. By doing so, they sacrifice the economic benefit..."

Feeding into the debate is Mongolia's determination to shed its historical vulnerability as a landlocked country sandwiched between Russia and China. Mongolia needs both geopolitical giants as investors and customers, but wants to be beholden to neither, preferring to be "the mortar between two BRICs".

"Mongolia has been quite careful about its sovereignty -- we don't want to be too dependent on one country," Oyun Sanjaasuren, a lawmaker and former foreign affairs minister said at a conference in Ulan Bator in June. "Theoretically, we want to have a one-third, one-third, and one-third balance," Oyun added, referring to China, Russia and a third country such as Japan or the United States.

INVESTOR UNCERTAINTY

China's emergence as the region's dominant superpower has been accompanied by unpredictable swings in Mongolia's foreign investment policies.

The government originally planned to sell as much as 49 percent of the Tavan Tolgoi coal deposit to a foreign bidder, and hired JPMorgan and Deutsche Bank to handle the sale. But in February, they canceled the auction in favour of 100 percent state ownership, with plans to sign a development contract without giving any equity away. Chinese coal giant Shenhua <1088.HK> was often named as a frontrunner in the hotly contested deal. Other bidders named in the original auction included India's Jindal, Vale, and U.S. coal miner Peabody .

The government's decision to cancel the Tavan Tolgoi equity stake sale to a foreign company frustrated dealmakers, but was seen by some analysts as an astute political calculation -- a move to avoid some of the popular anger that followed the Oyu Tolgoi investment agreement.

"They'd given up too much in Oyu Tolgoi," Frontier's Igata said. "A few years ago, Mongolia was eager to be financed."

Corruption may also prove to be a long-term problem. Transparency International rated Mongolia 120th in its 2009 corruption perception index, a fall from 102nd in 2008.

Already whispers persist in Mongolia's business community that many more workers at Oyu Tolgoi are in fact more experienced Chinese miners, instead of Mongolian nationals as promised in the investment agreement. Ivanhoe, however, says it is adhering to an agreement that calls for 60 percent of the jobs to go to Mongolians during the mine's development phase. "As of 30 August, we have 4,200 people at site," Marshall, the Oyu Tolgoi CEO, told Reuters, adding that 2,536 on site were Mongolian.

Environmentalists are concerned that large-scale mining in southern Mongolia would increase desertification. "Both Oyu Tolgoi and Tavan Tolgoi will require huge amounts of water, and from the environmental impact assessment, and from their plans and their feasibility studies, we know they have not demonstrated availability of water for the life of this project," said Dugersuren Sukhgerel, executive director of an NGO called Oyu Tolgoi Watch. "Mongolia is experiencing higher degree of climate change -- over 70 percent of Mongolia's territory is suffering desertification. That is a big concern."

The discovery of a new vein at Oyu Tolgoi is bound to offer even more jobs and riches for Mongolia. Ivanhoe said on Sept. 28 the discovery, named the Heruga North deposit, contains an estimated 10.2 billion pounds of copper and 15 million ounces of gold. "It's possible that Heruga and Heruga North eventually could be developed together as one of the world's largest underground gold mines," Friedland said in a statement.

The government hopes to channel some of that wealth to its citizens by privatizing a moribund state-run stock exchange, a move that would finally plug the landlocked nation into the grid of global finance, and channel capital to Mongolian entrepreneurs. The London Stock Exchange is the front-runner to run the new exchange, "building it from scratch", Prime Minister Batbold told reporters at last month's U.N. General Assembly meeting.

Even as firms such as Mongolian Mining Corp prepare IPOs in more sophisticated markets such as Hong Kong this year, the government is making plans to take public a portion of Oyu Tolgoi mine. It's all part of Mongolia's plans to privatise assets -- it is committed to handing a tenth of all proceeds to its citizenry -- and to give Mongolians a way to cash in on the dream.

That could go some way toward soothing any leaden feelings over Ivanhoe's golden deal at Oyu Tolgoi.
source: http://sg.news.yahoo.com

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HIV-infected blood was not used for transfusion

Officials from the Ministry of Health and related organizations have denied rumors that 14 patients received transfusion of blood from an HIV-infected donor. Among those who spoke to journalists were N.Khurelbaatar, State Secretary of the Ministry; S.Tugsdelger, Chief of the Social Health Policy Implementation Coordinating Board; S.Enkhbold, Chief of the Information Control Research and Estimation Board; Kh.Surenkhand, Deputy Director of the National Center for Infectious Diseases (NCID); N.Gantumur, Chief of the HIV and AIDS Research and Observation Office at the NCID; and P.Ulaankhuu, Chief of the National Center for Blood Analysis.

They explained that tests had identified about two months ago that the blood had the virus and it was never used. Journalists wanted to know why the donor’s identity had not been revealed and why a donor’s health status is not checked before taking blood. S.Tugsdelger said such public identification of an HIV-infected individual is against national security, and also violated the law and human rights.

P.Ulaankhuu said Mongolia has 83 recorded cases of HIV infection and this particular donor is No. 80 and had tested positive in August. He has been donating blood for three years and on every of the previous occasions, the blood had been found safe. He assured media that equipment and practices relating to blood transfusion in Mongolia followed international standards.
source:www.news.mn

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Deputy Prime Minister of Mongolia in Surrey

The Deputy Prime Minister of Mongolia has visited Kingston to determine if his country should base its Olympic team in Surrey during the London 2012 Games.

The Mongolian delegation was a guest of Surrey County Council at County Hall on Wednesday morning before being taken on a tour of some of the county's sport facilities including Bisley, Surrey Sports Park and Guildford Spectrum.

The visit by Deputy Prime Minister Miyegombo Enkhbold and senior government and sport officials was also an opportunity to strengthen business and cultural ties with Mongolia following a previous visit to Surrey in February.

Denise Saliagopoulos, Surrey County Council's Cabinet Member for Community Services and the 2012 Games, said: "We were delighted to welcome our friends from Mongolia.

"During these difficult economic times the county council must do its bit to help local businesses and London 2012 offers us a golden opportunity to do this.

"We've been nurturing relationships with foreign nations to encourage them to base their Olympic teams in Surrey during the Games.

"However, we want these relationships to have a lasting legacy long after the last medal has been won. The work the county council is doing now will enhance business links between Surrey companies and foreign firms in years to come. We also want to enhance cultural links, particularly among our schools, so our children can learn more about the world around them."

Copyright (c) Press Association Ltd. 2010, All Rights Reserved.
source: http://www.midlothianadvertiser.co.uk

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Population and Housing Census starts November 11

Census takers will knock on every apartment and every ger door in Mongolia from November 11-17

From November 11-17, the Population and Housing Census, conducting once each decade, under the recommendation of UN, will run throughout the nation.

Preliminary registration for the census runs until October 25 and covers artisanal miners, homeless, herders on transhumance, and foreigners who are staying in Mongolia longer than183 days. This registration helps to approximate how many people will be involved in the census and where they will be registered.

This census is to be organized for the first time within frames of independent law and a digital map will be used for the first time. There are plans to hire 29,189 people in total for the census commission. After conducting the census on November

11-17, a preliminary report of the census will be ready by February 20, 2011 and the final results will be issued by June 1, 2011. Also, a database will be formed in 2012-2013 by analyzing the census data. The Population and Housing Census is a comprehensive action to collect, process, analyze and synthesize demographic, social and economic information by involving all people living in Mongolian territory in the census, and to distribute the census report. By doing so, it will create basic statistical information required for studying changes, reasons and conditions formed in demography, economy and society in recent decade, planning for future demographic, economic and social development, drawing-up policy, programs, and conducting scientific works. The Population and Housing Census is significant to determine policies such as where new schools and hospitals need to be established

whether administration divisions should be altered, when Mongolia’s population will reach 3 million, what policies should be followed now for citizens who will retire in the future, how many people live in gher dwellings while how many people live in apartments as well as whether the population can be provided with a source of drinking water. Demographic and social indications in the census questionnaire comprises questions about family name, parents’ and own names, date of birth, sex, nationality, citizenship, educational achievement, literacy and religious belief. Questions of economic indication are to be about employment, occupation, direction of business activity, unemployment and its reasons, and cell phone and internet usage. Questions about housing include types of housing, ownership, number of rooms, total square area of apartments, as well as others. The census questionnaire also includes geographic location and migrationrelated questions about place of birth, place of permanent residence or temporarily residence at the time of the census, term of residence in that place, as well as others. Census starts through Internet During the period between October 10 and November 17, the census will count Mongolians staying abroad longer than 183 days through the Internet. Mongolians staying abroad need to visit the census website at www.toollogo2010.mn and insert their surname and own name and their registration number in order to confirm being a citizen of Mongolia. Official sources say that counting Mongolians abroad via Internet or information given by their relatives living in Mongolia will be safe information. People can inform census workers about their relatives staying abroad as well. By doing so, doubled information about Mongolians abroad will be combined. Mongolia’s population increased by 3.7 times in the 20th century
When Mongolia conducted its first population census in 1918, it registered 547.6 thousand. According to the second census in 1935, it was found to have increased to 738.2 thousand. In 1944, Mongolia’s population reached 754.2 thousand. When an independent professional organization conducted a census in 1956, it counted 845.5 thousand. It reached 1885.0 thousand by 1979 and Mongolia’s first millionth citizen was born in 1962. The second millionth citizen was born in 1988. The population census that was carried out in 1989 under UN recommendations found that Mongolia’s population had increased to 2,044.0 thousand. The census in 2000 counted 2,373.5 thousand people.
source: Mongol Messenger newspaper

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Mongolia closer to anti land-mine Convention membership

Jordan’s Prince Mired Bin Raad
Al-Hussein

Jordan’s Royal Highness Prince Mired Bin Raad Al-Hussein of Jordan is encouraging Mongolia to accelerate its progress toward membership in the international treaty banning antipersonnel mines, and to destroy its existing inventory of these weapons.

As the Special Envoy on the Universalization of the Anti-Personnel Mine Ban Convention, he promotes acceptance of the 1997 Convention on the Prohibition of the Use, stockpiling Production and Transfer of Anti-Personnel Mines – the so-called “Ottawa Convention”. He served as President of the Eighth Meeting of the States Parties to the Convention in November 2007. Since 2004, he has Chaired Jordan’s National Committee for De-mining and Rehabilitation. From 2000 he served as President of the Hashemite Commission for Disabled Soldiers and Vice President of the Higher Council for Persons with Disabilities. He has extensive military experience completing the Graduate Officers Course in Military Studies and Officer Training at the British Royal Military Academy, Sandhurst in 1990, preceded by two years of military conscription to the Jordanian Armed Forces (1987 – 1989). He followed this with further service to the Jordanian Armed Forces as Special Forces Officer (1990-1991) and as a Military Intelligence Officer (1991- 1994). From 1995 to 1997 he served as Security and Intelligence Officer with Jordanian Security (1995–1997).

Prince Mired Bin Raad Al-Hussein meeting Prime Minister S.Batbold

Prince Mired holds a Bachelor of Arts in International Relations and History and a Master of Arts in International Relations and Strategic Studies from Tufts University in the USA. He also holds a Masters of Philosophy Degree in Historical Studies from the University of Cambridge, England. Prince Mired Bin Raad Al-Hussein visited Ulaanbaatar from October 2 to 6 in his capacity as the Anti-Personnel Mine Ban Convention’s President’s Special Envoy on the Universalization of the Convention. The Ministry of Foreign Affairs and Trade and the Embassy of Canada hosted the visit.
During his visit, his Highness met Prime Minister S. Batbold; Deputy Foreign Minister B. Bolor; Member of Parliament Z. Enkhbold; Chairperson of the Standing committee on Foreign Policy and Security, Major General Ts. Byambajav; Chief of General staff, D. Baatarjav and the President of the Mongolian Disabled Citizen’s Association and visited the military unit to see Mongolia’s stockpiles of anti-personnel mines.
On October 4, Deputy Foreign Minister B. Bolor met His Highness and told him Mongolia supports the Ottawa Convention’s goals and principles and expressed his hope that Mongolia could join the convention. He said that the Convention’s sympathetic goals and main principles meet Mongolia’s foreign policy ideology declared to ensure its national security with political and diplomatic means so the country supported the treaty. Mr Bolor also identified the problems faced by Mongolia in joining the Convention.
On October 5, Prime Minister S. Batbold met the Prince and stressed Mongolia reaffirmed its willingness to join the Ottawa Treaty during the 65th Session of the UN General Assembly during his official visit to Canada. He said, “Friendly bilateral cooperation between our countries has been developing successfully since 1981, when diplomatic ties were established.
Additionally, the two countries have been cooperating and supporting each within the frame of the UN and international organizations.” Mr Batbold thanked the Government of Jordan for supporting Mongolia by nominating it in the election of United Nations Economic and Social Council (ECOSOC) 2010-2011.
Before his departure, the Prince was interviewed by The Mongol Messenger Editor -in-Chief, Borkhondoin Indra :
MM: This your first visit to Mongolia? What is the priority issue for you?
PM: Yes. It’s the first time .The reason that I have come to Mongolia is in regard to the Anti Personnel Mine Ban Convention, also called the Ottawa Convention. Three years ago I was president of the convention for one year.(it is rotating presidency). This year the President of the Convention, a Norwegian diplomat, Susan Eckey, asked me to be the special envoyambassador for the Convention to promote Universalization of the Convention and that’s why I‘m here in Mongolia. Mongolia has not yet been accepted to the Convention so my goal was to meet Mongolian officials to try to see if there was a possibility for Mongolia to accede to the Convention. I am very hopeful and we look forward to that day.
MM: What results you did you hope for from this visit?
PM: I think the meetings went very well. I was pleased to see that Mongolia’s commitment to accede to the Convention is real and I am hopeful that Mongolia will be able to join the Convention soon. Mongolia does not have land mine problem in the ground – it has a stockpile problem and will have to deal with it. For Mongolia, it’s a challenge that is much easier to address than in other land mine-affected countries.
MM: You say it’s easier to address compared to another countries–is this because we only have a stockpile problem?
PM: Easier, I mean compared with counties that have land mines underground because those countries have to take the mines out of the ground. It is much more difficult to de-mine large areas and very difficult, very costly. You need much more money, more expertise. To destroy a stockpile is easier, more simple – so a much simpler problem.
MM: What part does Mongolia play with Anti-Personnel mines and how can it contribute to their classification for national security?
PM: You know, this is common view now globally, internationally that land mines have no use and are not important any more. Long time ago, land mines had some value, some strategic value–they could be seen as important weapons–but not now–land mines no longer have the same importance.
Landmines are now insignificant in that any modern army that can very easily cross any mine field. There is no reason for land mines. They stay in the ground for many years after the conflict has finished and it is usually poor women, men, girls and boys who become victims of land mines. Who has to bear the responsibility? We are all responsible in that we can all play a role in ending this scourge.
MM: Where do we stand on having their locations excluded from State Secrets?
PM: The Mongolian government has been very transparent and very accommodating. Yesterday we went out to see big anti-personnel stockpile, we took photos, it was very transparent which is fantastic. I congratulate Mongolian military and government for being open, for transparency on this issue. It not a secret and not an effective weapon anyway.
MM: What do you hope to achieve from your visit?
PM: I think I already achieved a lot. We gained more information and engaged with the Mongolian Government. I was very happy to meet the Prime Minister, the Chief of Staff, Deputy Foreign Minister and Member of Parliament. I think my visit has been very successful. When I listened to them, I also conveyed my concerns and my views on this matter. I look forward very much to the day when Mongolia will accede to the Convention and I hope that will be soon.
MM: When the Ottawa Convention Treaty came into force, 156 counties joined. Will Mongolia be the 157th?
PM: If Mongolia accedes, it will be the 157th. We hope the US will also join in the near future. This will also fantastic, Mongolia and the US join at the same time.
MM: Our country, during international conferences and visits has confirmed its stance in joining the convention. How many steps will it take?
PM:As I understand it, the remaining questions concern the destruction of Mongolia’s existing stockpile of landmines. I know that this need not be complicated or expensive. If Mongolia requires financial or technical assistance, it has a right to request this in accordance with the terms of the Convention.
I hope that my visit has made it clear that if Mongolia is prepared to join the international community in eliminating anti-personnel mines, the international community stands ready to assist Mongolia in doing so. This leads us to the final step: the political decision to complete the accession process and formally agreeing to be bound by the Convention. To costs to Mongolia in taking this final step are negligible but the benefits that would flow would be great in terms of Mongolia taking centre stage in this important global issue. Landmines in our modern day and age have no use anymore and are not important weapons any more. Many countries are destroying stockpiles and clearing large areas that once were minefields. We want Mongolia to participate in the campaign against this terrible weapon.
MM: Which Asian counties joined to Ottawa convention? What is the situation at the Asian region?
PM: From the Asian region Thailand, Malaysia, Cambodia, Indonesia, Bangladesh, Indonesia and Japan have joined the Convention, but China, North Korea and South Korea, Burma and Singapore have not yet joined.
The last countries to join the Convention where Kuwait and Iraq and Palau–two years ago–these three countries joined together roughly at the same time. This was fantastic to see membership from two important countries like Kuwait and Iraq. I hope more countries join the convention because this adds strength and importance and sheds light on the Convention to continue working on this issue. We need donor countries, we need counties to stay engaged and focused, to continue to believe, and this one reason we need to work to Universalize the issue, it brings light to this issue.
We still have a long long way to go until we clear this big problem in countries like. Afghanistan, Cambodia, Angola, Mozambique, which still have huge problems. We need to continue to seek support and attention from the world community on this issue.
MM: As the Special Envoy which counties have you are visited?
PM: In the beginning of the year, I went to the US and held meetings in Washington DC about the same issue. I asked the US about their position and if it planned to join the Convention. This was my first visit in 2010. I also went to Laos, to Vientiane to discuss the issue and maybe will go later this year I will have one more trip and some next year as well.
MM: What do you think about Mongolia?
PM:You have a very beautiful country. I had a chance to go outside of UB twice. You have a fantastic big country with lots of resources. You should be very proud of you beautiful country.
source: Mongol Messenger newspaper

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Host Nation Mongolia tops Medal Table at 4th World University Boxing Championship

ULAANBAATAR - Host nation Mongolia topped the medals table at the 4th World University Championships, which were held in Ulanbaatar, Mongolia, from October 5th to 10th.

The first edition of the championships was held in Antalya, Turkey six years ago, just after the Athens Olympic Games. The story continued in Almaty, Kazakhstan two years later, while the last edition was held in Kazan, Russia.

Altogether 77 boxers from 15 nations competed at the Championships, they were: Belarus, Chinese Taipei, Costa Rica, Czech Republic, Kazakhstan, Lithuania, Moldova, Mongolia, Netherlands, Poland, Russia, Slovakia, Thailand, Turkey and Ukraine.

Reigning World Champion and Olympic Games silver medallist 25-year-old national hero Purevdorj Serdamba after beating Beijing Olympian Poland's Lukasz Maszczyk in the semi-final had a hard final contest against Kazakhstan's National Championships bronze medallist Mardan Berikbayev where the Mongolian boxer won only by 2:1.

Mongolia's 18-year-old Tugstsogt Nyambayar achieved a silver medal at the AIBA World Championships among elite boxers last year but he missed the qualification to the Youth Olympic Games in Baku. Nyambayar thrashed 19-year-old Khabibulla Ismail-Akhunov of Kazakhstan in the final and claimed the valuable gold medal.
Turkey's 19-year-old Furkan Memis Ulas was the youngest qualified boxer at the Beijing Olympic Games but was replaced by Mehmet Topcakan in the Turkish team last year. At the Turkish Prime Ministry Tournament he came back with a gold medal in April while he also made the best performance in Ulanbaatar and took the podium against Iderkhuu Enkhjargal of Mongolia.

Makar Mazay Tournament winner Denis Berinchik defeated Kazakhstan's strong favorite Gani Zhailauov in the lightweight final by 4:0 and claimed Ukraine's only victory in Ulanbaatar. Berinchik thrashed his opponents in Ulanbaatar and may well be able to qualify for Ukraine's elite squad next year.
Mongolia's 23-year-old Asian Championships silver medallist Byamba Tuvshinbat was named best boxer at the Shaheed Benazir Bhutto Tournament in January and won the gold medal in Ulanbaatar after outpointing Beijing Olympian Onur Sipal of Turkey 5:0 in the 64kg final.

Experienced Onder Sipal from Turkey had a hectic battle against AIBA World Championships quarter-finalist 20-year-old Rustam Svayev of Kazakhstan, saving his lead in the final round to win the contest by a close 5:4 margin.

Newcomer in the international level middleweight Andrey Yefremenko of Russia and his compatriot 19-year-old surprise-man Ruslan Faifer both took gold medals in Ulanbaatar.
Kazakhstan's Daniyar Ustembayev moved up a weight category after he missed the gold medal at the National Championships at 81kg. The young Kazakh boxer eliminated Evgenijus Tutkus of Lithuania in the semi-final and triumphed over Aleksandr Karakazyan of Russia in the heavyweight final.

Russia's super heavyweight class boxer Arslanbek Mahmudov who won the Popenchenko Memorial Tournament in July defeated his biggest rival, the experienced Rustam Rygebayev of Kazakhstan, in the semi-final and hammered his local opponent Iderbat Davaalchagva in the final contest to take the gold medal.

Complete results can be found on the OC website at www.mssf.mn or in www.fisu.net.
source: http://www.eastsideboxing.com

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Jackie Chan Blogs About Charity Trip To Mongolia

LookToTheStars.org recently reported on Jackie Chan's charity trip to Mongolia. The action star has now blogged on his visit.

“Upon arriving in the Chinggis Khaan Airport, I was greeted by so many people, children and adults alike,” wrote the star. "I was excited to be here for the first time – especially for something that I love to do, which is charity. Mongolia has some of the worst air pollution in the world and even before I landed, I could see the smog. The new government wanted to do promotion for clean air and asked me to help out. I didn’t just want to come to Mongolia to do one thing, so I asked if I could do charity as well.

“A lot of people said to me, “Jackie, thank you for coming to Mongolia.” I said, “Why not? The planet belongs to us. I am the citizen of the world.” When I am in Mongolia, I am Mongolian. If I am in Beijing, I am Beijingnese. Ha ha. If every person thought that they belonged to the planet, they would treat every country as if it were their own country. They would treat people as their own people, no matter if they were white, black, red or yellow. Also if we belonged to the planet, we would treat the environment better too."

To read Jackie’s full blog and see his personal photos of the trip, click here
source: http://www.looktothestars.org

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French minister visits Mongolia to promote nuclear energy cooperation

Visiting French Minister of State for foreign trade Anne-Marie Idrac started a two-day visit to Mongolia to seek bilateral cooperation in nuclear energy Wednesday.

The minister was received by Mongolian President Tsakhia Elbegdorj, Speaker of the Mongolian parliament Demberel Damdin, and Foreign Minister Zandanshatar Gombojav.

The French delegation includes representatives of the state-run uranium company Areva Group, which has uranium interests in eastern Mongolia.

During the visit, a Mongolian-French business forum is expected to be held to discuss trade and economic cooperation between the two countries.

It is also expected that Mongolia and France will sign a memorandum of understanding on cooperation in the uranium sector Thursday.

The French minister said "we will sign an agreement on cooperation in the nuclear energy field. Areva is a world-class uranium company. This intergovernmental agreement will be the basis for Areva's operation in Mongolia."

France was supporting all dialogue between Mongolia and the European Union, she said.

She handed over an official letter from French President Nicolas Sarkozy to his Mongolian counterpart Elbegdorj.

In the letter, Sarkozy said he attached importance to cooperation between the two countries, a Mongolian press release said.

President Elbegdorj said, "We appreciate that France, having rich experience in nuclear energy, is working with Mongolia."

Areva, one of the world's biggest atomic energy groups, has increased its investment and business in Mongolia in recent years. It holds several uranium licenses in eastern Mongolia.

Source: Xinhua

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Visiting professor on a quest to 'green' Mongolia

Although Mongolia has a long and distinguished history, as an emerging democracy it is experiencing some growing pains that are impacting the country’s social-ecological systems as it moves from its pastoral and nomadic past into the 21st century.

Visiting Professor Chuluun Togtokh feels that better public policies are needed to make the transition to a democratic country a “greener” one.

Chuluun is housed in Arizona State University’s Center for the Study of Institutional Diversity, where he will obtain a better understanding of how sustainability and land-use policies can help preserve and protect the country’s pastoral and urban social-ecological systems

He is one of the few researchers in Mongolia studying institutional diversity. He came to ASU in September 2010 from the National University of Mongolia, where he is a professor.

“Being at the center will give me the opportunity to focus more on institutional perspectives and advance my research from science to policy. The center is perfect for me from the commons management perspective,” he said.

The green crusade

Chuluun is focusing on policies addressing Mongolia’s diverse ecological systems, such as forests, forest steppes, steppes, desert steppes and desert regions. He feels there should be different regulations in different ecological zones, which currently don’t exist in Mongolia.

He is also focusing on many other social-ecological issues Mongolia is facing as it transitions from its previous dependence on socialist Soviet Russia.

Chuluun cites several driving factors currently impacting the country: adoption of a democracy (migration from rural to urban areas); transition to a market economy (privatization of livestock); global warming; globalization (information and communication technology); and environmental changes (air pollution, land degradation and water pollution).

With each of these factors come numerous challenges.

“Ulaanbaatar is the capital city and is home to half of the country’s total population. There are huge air pollution and urban planning problems, and energy issues are very important as well,” said Chuluun, director of the Department of Environmental Policy and Science, the Mongolian Development Institute in the Office of the President of Mongolia. “The city is the second coldest capital city in the world, and heating demands in the city’s urban core continue to climb rapidly. We need to address this issue in a sustainable way.”

While at the center, Chuluun plans to continue his research on how to integrate climate change adaptation into sustainable development projects in Mongolia.

Designating Mongolia’s Gobi Desert region as both a world natural and cultural heritage site is another idea of Chuluun’s. The Gobi Desert covers much of the southern part of Mongolia and is the fifth largest desert in the world.

He wants to conserve the nomadic cultural resilience in the region, which he said is disappearing. “We have a great opportunity to conserve nature and culture in the Gobi; it has a globally significant agricultural heritage. I want to continue to bring new green technologies, such as renewable energy and wireless communication technology, to the region, and develop the area in a sustainable way.”

Chuluun will also continue to work on his proposal to add a “green” index to the United Nations Human Development Index, which measures a country’s well-being based on its gross domestic product per capita, health (life expectancy) and education.

The U.N. Human Development Index is considered by many to be an excellent tool for measuring human development, since both economic and social indicators are covered. Chuluun feels if a country’s carbon footprint is high then its human development index score should be lower.

What’s next

Chuluun will be speaking at several events on the ASU campus in the coming weeks.

From 3:30-5:30 p.m., Oct. 18, he will present "D6: Vulnerability and Resilience under Global Warming in Asian Dryland Systems" at the Global Land Project’s Open Science Meeting in the Memorial Union Gold Room. At noon on Oct. 25, he will be the speaker at the Center for the Study of Institutional Diversity’s Brown Bag discussion; his presentation, "Vulnerability and Resilience of Pastoral Social-Ecological Systems in Mongolia," will be held in Matthews Hall. From 3:30-5 p.m., Oct. 28, he will speak at the Dynamical Discussion, in the Interdisciplinary Science and Technology Building 1, room 401. The discussions are organized by the Consortium for Biosocial Complex Systems.

Chuluun will be at ASU for the next six months. During his visiting professorship, he will be writing a research paper emphasizing the importance of having different policies in different ecological zones. He also plans to work on his paper to designate the Gobi Desert as a world natural and cultural heritage site.

Scott Southward, scott.southward@asu.edu
Consortium for Biosocial Complex Systems
480-965-4193
source: http://asunews.asu.edu

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Community approach helps nomads solve harsh ecological issues

By MIDORI PAXTON

The Altai Mountains in the extreme west of Mongolia are harsh, daunting and offer views of tremendous grandeur — sweeping grasslands overseen by snow-capped peaks, milky rivers that derive their startling color from glacial meltwater, and immense lakes that are crisp, clean mirrors reflecting vast and turbulent skies.

This is home to the Kazakh nomads of the Akhbastau (literally meaning "white springs") community, proud and dignified herders and horsemen who hunt with golden eagles and who live in "gers" (yurts) warmed by horse dung-fueled stoves and decorated with colorful doors and wall and floor carpets.

Life is both hard and beautiful here in the Altai Mountains, part of the Altai Sayan Ecoregion — one of the global 200 ecoregions identified by the World Wildlife Fund as priorities for conservation. It straddles four countries — Mongolia, China, Kazakhstan and Russia — and is home to rich biodiversity, endemics, as well as endangered species such as the snow leopard and the argali sheep.

The winters are long and brutal. Light snow falls even in August. Fierce gales combined with drought create a catastrophic phenomenon called the "dzud," when deep snows and bitter cold are preceded by dry summers. It is reported that the dzud, which are becoming increasingly frequent and severe, killed over 9 million head of livestock (or 20 percent of the total number in the country) in 2009.

The Akhbastau community consists of 12 households and they herd 2,300 head of livestock, mainly sheep, goats, yaks and horses.

The older generations speak of the clear environmental changes they have witnessed over the last 70 years. Wildlife numbers have decreased significantly and the pasture conditions are much poorer. The direct cause of pasture degradation is overgrazing. Climate change exacerbates the problem. Many herders have stopped traditional rotational grazing methods that involved moving seasonally in search of good pasture, leaving time for other pastures to recover.

To remedy increasingly adverse living conditions, in 2006 the families in the Altai Mountain region started forming herder groups, working with the Altai Sayan Conservation Project funded by the Global Environment Facility and implemented by the United Nations Development Program.

"I think we have been able to achieve changes in herders' perceptions," said Amangul Sakeyi, the project's social mobilizer. "Through forming a community group and taking charge of managing a defined area of land, people feel much more responsible for caring for their pasture and wildlife resources."

In the Altai "Soum" (subdistrict of a province) where she works, five such communities have been formed, and they are engaged in wildlife monitoring activities, increasing livestock and pasture quality, and diversifying livelihoods.

Naranbek Ristan, a 23-year-old Akhbastau herder is in charge of wildlife monitoring activities. He conducts a monthly wildlife monitoring mission on horseback covering a 25-km route in their 6,000 hectare community-managed area.

Regular training courses are provided by the Altai Sayan Project to support the monitoring activities and information is collated and analyzed by the project supporting the Environment Unit of the Soum Government.

"Before the training and wildlife monitoring, wild animals looked rather similar," Naranbek said. "But now I can recognize individuals and enjoy observing the different behaviors of snow leopard and other animals."

He said that learning about wildlife is also beneficial for avoiding human-wildlife conflict as it enables the community to better predict wildlife attacks on livestock and take precautionary measures.

Forming a community group with other households has also helped individual herder families. They cooperate in wool shearing, making the process more efficient. Collectively they plan rotational grazing and hay making in preparation for winter months and dzud. As a result, the community decided to decrease the number of livestock as they realized that there were just too many for the grasslands environment to support. Quantity was reduced, but the quality of livestock improved.

The community has also established a tourist ger for "top-end" tourists who want to experience the nomadic life of the Kazakh people, see and photograph the breathtaking vistas, wildlife, geology, plants and spring flowers. The community charges about $30 per night for the ger and it currently attracts around 40 international tourists per year. Horse trekking is also proving a success. Fifteen percent of tourism income is put into the community fund and the rest is divided among the households.

"We now have more options and different income sources," Naranbek said. "And we are better prepared for harsh winters. The dzud impact in this community was minimal last year, which I believe is owing to our organization."

The Altai Sayan Project has also and importantly instituted the establishment of an environment unit within the local government structure. The unit comprises extension officers from different disciplines, including environment, agriculture, land use planning and education, and is expected to render continuous support to herder community groups. The project is also supporting the development of a community-based wildlife management law, which will provide incentives and tools for wildlife management.

"This is essential for sparsely populated countries like Mongolia," said Onno van den Heuvel, the program officer for biodiversity conservation at UNDP Mongolia. "The only eyes and ears in many wilderness areas belong, like their land and all that lives in it, to community people."
Midori Paxton is a regional technical adviser on biodiversity and ecosystems based at the UNDP Asia-Pacific Regional Center.

Source:www.japantimes.co.jp

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Mongolia seeks co-operation with HCM City

The Mongolian capital city of Ulan Bator wishes to establish co-operation with Ho Chi Minh City to exchange experiences in construction and development as well as in the operation of the HCM City People’s Council.

The Chairman of Ulan Bator’s People’s Council Bilegt Tudev made the statement at a meeting with Chairwoman of HCM City People’s Council Pham Phuong Thao, in HCM City on October 11.

During the meeting, the two leaders agreed on the need to boost co-operation between localities of Vietnam and Mongolia, including the multifaceted co-operation between HCM City and Ulan Bator.

Thao said the Vietnam visit by the Ulan Bator delegation on the occasion of the 1,000 anniversary of Thang Long-Hanoi was an opportunity to strengthen traditional friendship between two peoples, states and localities of the two nations.

She stressed the desire for HCM City and Ulan Bator, as big cities with strong economies, to bolster cooperative relations, matching the traditional friendship and co-operation of the two countries.

For his part, Bilegt Tudev said although Mongolia-Vietnam relations have developed for a long time, the co-operation between the two localities is still far from reaching their potential.

He also spoke highly of beefing up cooperation with Vietnamese cities, especially HCM City, named after the late President Ho Chi Minh, whose name was so familiar to Ulan Bator’s citizens.

Source:VOVNews/VNA or Vietnamese News Agency

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Mongolia's fabled mine stirs Asian frontier

The new gold rush to develop Mongolia's resources could make it the world's fastest-growing economy over the next five years, according to Renaissance Capital, which projected GDP will almost quadruple to $23 billion by 2013 from $6 billion today.

To profit from its untapped iron ore, coal, copper, uranium, silver, and gold deposits, the government needs to build a vast network of roads and railways to ship the minerals out of the country's vast interior. More than 10 "strategically important" deposits are in development including the Dornod uranium deposits, the Asgat silver deposit, and the massive Tavan Tolgoi coal site.
Tavan Tolgoi, like Oyu Tolgoi, inspires awe among resources investors. It is a deposit of approximately 7.5 billion tonnes -- believed to be the world's largest untapped coking coal site. Most of its projected 50 million tonnes of production will go to China.

The trick is getting it there. To that end, Mongolia aims to build a massive industrial park in Sainshand, capital of Dornogovi Province, to help transport metals and coal to customers around the world. The facility will include copper smelting and coal processing plants, as well as railroads to and from the park.

Much like the debate around Oyu Tolgoi, controversy has dogged the government's infrastructure plans from the beginning. In April, Prime Minister Sukhbaatariin Batbold threw his support behind an east-west railway plan, connecting the Tavan Tolgoi coal deposit to the eastern city of Choibalsan via Sainshand, at a cost of around $2 billion, according to one estimate.

Some experts say it would be far more sensible, and half the cost, to build the railway south towards China, which bought 70 percent of the country's exports last year.

"The biggest risk is government policy -- one of the examples is on infrastructure," said Masa Igata, founder and CEO of Mongolia-based Frontier Securities. "It makes economic sense to connect Tavan Tolgoi to China's border. However, parliament has decided to prioritise Tavan Tolgoi to Sainshand. By doing so, they sacrifice the economic benefit..."

Feeding into the debate is Mongolia's determination to shed its historical vulnerability as a landlocked country sandwiched between Russia and China. Mongolia needs both geopolitical giants as investors and customers, but wants to be beholden to neither, preferring to be "the mortar between two BRICs".

"Mongolia has been quite careful about its sovereignty -- we don't want to be too dependent on one country," Oyun Sanjaasuren, a lawmaker and former foreign affairs minister said at a conference in Ulan Bator in June. "Theoretically, we want to have a one-third, one-third, and one-third balance," Oyun added, referring to China, Russia and a third country such as Japan or the United States.

INVESTOR UNCERTAINTY

China's emergence as the region's dominant superpower has been accompanied by unpredictable swings in Mongolia's foreign investment policies.

The government originally planned to sell as much as 49 percent of the Tavan Tolgoi coal deposit to a foreign bidder, and hired JPMorgan and Deutsche Bank to handle the sale. But in February, they canceled the auction in favour of 100 percent state ownership, with plans to sign a development contract without giving any equity away. Chinese coal giant Shenhua (1088.HK: Quote) was often named as a frontrunner in the hotly contested deal. Other bidders named in the original auction included India's Jindal, Vale, and U.S. coal miner Peabody (BTU.N: Quote).

The government's decision to cancel the Tavan Tolgoi equity stake sale to a foreign company frustrated dealmakers, but was seen by some analysts as an astute political calculation -- a move to avoid some of the popular anger that followed the Oyu Tolgoi investment agreement.

"They'd given up too much in Oyu Tolgoi," Frontier's Igata said. "A few years ago, Mongolia was eager to be financed."

Corruption may also prove to be a long-term problem. Transparency International rated Mongolia 120th in its 2009 corruption perception index, a fall from 102nd in 2008.

Already whispers persist in Mongolia's business community that many more workers at Oyu Tolgoi are in fact more experienced Chinese miners, instead of Mongolian nationals as promised in the investment agreement. Ivanhoe, however, says it is adhering to an agreement that calls for 60 percent of the jobs to go to Mongolians during the mine's development phase. "As of 30 August, we have 4,200 people at site," Marshall, the Oyu Tolgoi CEO, told Reuters, adding that 2,536 on site were Mongolian.

Environmentalists are concerned that large-scale mining in southern Mongolia would increase desertification. "Both Oyu Tolgoi and Tavan Tolgoi will require huge amounts of water, and from the environmental impact assessment, and from their plans and their feasibility studies, we know they have not demonstrated availability of water for the life of this project," said Dugersuren Sukhgerel, executive director of an NGO called Oyu Tolgoi Watch. "Mongolia is experiencing higher degree of climate change -- over 70 percent of Mongolia's territory is suffering desertification. That is a big concern."

The discovery of a new vein at Oyu Tolgoi is bound to offer even more jobs and riches for Mongolia. Ivanhoe said on Sept. 28 the discovery, named the Heruga North deposit, contains an estimated 10.2 billion pounds of copper and 15 million ounces of gold. "It's possible that Heruga and Heruga North eventually could be developed together as one of the world's largest underground gold mines," Friedland said in a statement.

The government hopes to channel some of that wealth to its citizens by privatizing a moribund state-run stock exchange, a move that would finally plug the landlocked nation into the grid of global finance, and channel capital to Mongolian entrepreneurs. The London Stock Exchange is the front-runner to run the new exchange, "building it from scratch", Prime Minister Batbold told reporters at last month's U.N. General Assembly meeting.

Even as firms such as Mongolian Mining Corp prepare IPOs in more sophisticated markets such as Hong Kong this year, the government is making plans to take public a portion of Oyu Tolgoi mine. It's all part of Mongolia's plans to privatise assets -- it is committed to handing a tenth of all proceeds to its citizenry -- and to give Mongolians a way to cash in on the dream.

That could go some way toward soothing any leaden feelings over Ivanhoe's golden deal at Oyu Tolgoi.

Source:Tomson Reuters News Service

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Polo Resources receives $20m Mongolian JV payment

Polo Resources says it has received a $20m deferred cash consideration from Winsway relating to the disposal of Polo's 50% stake in the Peabody-Polo Resources JV formed to hold coal and uranium assets in Mongolia.

The total consideration received from Winsway for Polo's interest in the joint venture is $35m.

Co-chairman and MD Neil Herbert said, 'Polo Resources has now disposed of its Mongolian assets apart from a 0.5% royalty of the future producing asset.

'Polo is currently focused on investments in coal assets in Bangladesh and Australia and will update the market on new opportunities as and when they materialise.'

Source:StockMarketWire.com

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SharynGol JSC Completes Drilling Phase of JORC Exploration Program: New Coal Seams Discovered

ULAANBAATAR, MONGOLIA--(Marketwire - October 10, 2010) - SharynGol JSC is pleased to announce the successful completion of a 16,000 meter diamond drilling program, with the aim of establishing a JORC standard resource over the Company's mining lease.

The drilling has proved all of the coal seams identified by historic Soviet drilling, as well as encountered several previously undiscovered coal seams, representing an important new discovery. An international mining consultancy has been engaged to produce a three dimensional model of the coal seams. The consultant's report, which will include a revised resource estimate, is expected to be released later in the year. Management anticipates that the report will demonstrate a significant increase in coal resources for the project.

Early laboratory results are encouraging, with most coal samples returning calorific values of over 7,000 kcal/kg on an air dried ash free basis. This result is consistent with Management's belief that much of the remaining coal resource is of type, high-grade thermal coal.

About SharynGol JSC

SharynGol JSC (MSE: SHG MO) has a coal mining operation located in Northern Mongolia. It currently owns and operates 100% of the established SharynGol Coal Mine. The Company was privatized and listed on the Mongolian Stock Exchange in 2003.

The Company has been mining coal at SharynGol for over 45 years, supplying domestic and export customers with coal for thermal and semi-coking (smokeless fuel) uses.

A dedicated rail spur links the mine to the Trans-Mongolian railroad, currently Mongolia's main railway connecting Mongolia to the major markets of Russia and China. This exclusive access to the rail spur provides the Company with a significant competitive advantage over the majority of coal mining operations in Mongolia.

Information Contacts
SharynGol JSC
Investors: Email Contact
Website: www.sharyngol.com

Source:www.sharyngol.com

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