With an eye on Russia and China, U.S. defense secretary visits Mongolia

By Idrees Ali

ULAN BATOR, Aug 8 (Reuters) - U.S. Defense Secretary Mark Esper is set to meet senior Mongolian leaders on Thursday in a rare visit to the strategically important nation to deepen ties, as the Pentagon seeks to implement its strategy of focusing on countering China and Russia.

On a map, Mongolia, locked between Russia and China, best represents the Pentagon's priorities over the coming decades.

Esper's visit to Mongolia, on his first international trip since being confirmed as defense secretary, highlights the importance the country is seen as playing in the region.

This is the first visit to the country by a defense secretary since 2014, when Chuck Hagel spent about four hours there. Esper will be spending a night in the capital, Ulan Bator.

On Wednesday evening, Esper was welcomed to Ulan Bator according to custom, and tried dried milk curd upon stepping off the plane at Chinggis Khaan International Airport, named after the country's warrior-emperor.

He is set to meet Mongolia's president and defense minister on Thursday.

But the ceremonial highlight of the visit will be when Esper is given a horse as a present later in the day.

"Mongolia is, given its location, given its interest in working more with us, their 'third neighbor' policy, all those things, is the reason why I want to go there and engage," Esper told reporters traveling with him around Asia earlier this week.

Mongolia is eager for investment from the United States and other countries it considers "third neighbors" to help it reduce its economic dependence on China, through which most of its exports of cashmere and other goods move.

Late last month, Mongolian President Battulga Khaltmaa visited Washington to meet with President Donald Trump.

"They have been a good ally that punches above its weight, and I think Secretary Esper wants to acknowledge (that) and see if there are ways to grow the partnership further," said a senior U.S. defense official, speaking on the condition of anonymity.

The official said that while this trip was not about promoting any specific initiative, the United States is keen to look at expanding ties, potentially in areas like military training, which could take advantage of Mongolia's cold weather.

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US Becomes Mongolia’s 5th Strategic Partner

During a state visit, Mongolia’s president emphasized increased cooperation with the United States.

Mongolian President Battulga Khaltmaa paid state visit to the United States last week, aiming to bolster the two countries’ political and economic relations into a new strategic partnership. While this is Battulga’s first state visit to the United States, the two sides held a number of high-level diplomatic exchanges preparing the groundwork, including the September 2018 Roadmap for Expanded Economic Partnership, Mongolian National Security Council Secretary Gansukh Amarjargal’s visit to Washington in November 2018, and U.S. National Security Advisor John Bolton’s visit to Ulaanbaatar in June 2019. Each diplomatic engagement forged stronger and closer ties between the two governments.
Thus, on July 31, after the meeting between Battulga and U.S. President Donald J. Trump, the U.S. Department of State released the Declaration on the Strategic Partnership Between the United States and Mongolia. This declaration indicates Mongolia’s successful utilization of the third-neighbor policy and makes the United States the fifth country to ink a strategic partnership with Mongolia.
The Declaration on the Strategic Partnership between the United States and Mongolia is built on mutual understanding and a shared pursuit of global and regional peace and security, protecting human rights, freedom of speech, and national independence and territorial integrity. The declaration acknowledges that U.S.-Mongolia ties “have grown stronger and closer based on common strategic interests, shared democratic values, good governance, principles of sovereignty, and respect for human rights” and “that the United States of America and Mongolia have a mutual interest in cooperating more closely to ensure peace, security, and stability in the region.”

Following the signing ceremony, National Security Council Secretary Gansukh Amarjargal told The Diplomat that “Mongolia has established a strategic partnership with four other nations: Russia (2006), Japan (2010), China (2014), and India (2015). The U.S. [is] the fifth nation to sign a strategic partnership agreement with Mongolia. This declaration will create innovation, development, and diversified job markets.”
Two aspects of the declaration are critical in answering how the United States and Mongolia will boost economic cooperation through trade, investment, and development. First, the declaration calls for the utilization of the U.S. Overseas Private Investment Corporation (OPIC) to help solve critical development challenges in Mongolia. In addition, the strategic partnership ultimately aims to strengthen Mongolia’s economic security by increasing the flow of foreign direct investment, supporting small and medium enterprises (SMEs), involving state-owned enterprises, and further exploring emerging new markets such as technology, science, and space exploration.
The impetus to pursue a strategic partnership with Mongolia is also heavily supported by policymakers in Washington. As Anthony Kim from the Heritage Foundation wrote in an article published the day before Battulga’s arrival:

Mongolia is a strategic U.S. ally in the Indo-Pacific. Policymakers should recognize Mongolia’s unique potential to anchor a strong U.S. presence in the region. Washington should upgrade the current economic relationship from one based largely on aid to a partnership based on private-sector-driven trade and investment. Washington should build on John Bolton’s recent visit to Mongolia. Further Cabinet-level visits would reinforce the U.S.-Mongolian strategic security relationship.

Moreover, the U.S. Department of Defense’s Indo-Pacific Strategy report included Mongolia as one of the “democracies in Indo-Pacific,” that are “reliable, capable, and natural partners of the United States.” The report but also emphasized the burgeoning security relationship based on Mongolia’s unswerving contribution to U.S.-led operations in Afghanistan, and UN peacekeeping missions in Africa. Mongolia was mentioned 17 times in the report, compared to 15 for New Zealand, 18 for Singapore 18, and 31 for Taiwan. The state visit of the Mongolian delegation has reinforced Mongolia’s status in the Indo-Pacific Strategy.
Mongolia holds an increasingly special place in the U.S. strategy toward Asia, being the first country to embrace the Millennium Challenge Corporation. In addition, Mongolian policymakers are working together with U.S. representatives in Congress such as Representative Ted Yoho (R-Florida) and Senator Dan Sullivan (R-Alaska) on advancing Mongolia’s economic relations with the United States to a new, strategic level. Part of Mongolia’s economic strategy, the Third-Neighbor Trade Act (S.1188) was re-introduced in Congress and is expected to have a positive outcome in September.
Economic cooperation and economic security were a top priority during Battulga’s trip to the United States, and science, technology, and entrepreneurial opportunities were raised during other official meetings. Battulga’s state visit also explored cooperation opportunities in space-related projects. The president paid a courtesy visit to NASA headquarters in Washington that remembered historical accomplishments, such as Major General Gurragchaa Jugderdemid’s Soviet-led Soyuz 39 mission to space in 1981. Jim Bridenstine, the administrator of NASA, tweeted, “I was honored to host Mongolia’s President Khaltmaagiin Battulga today as our countries work to enhance our strategic partnership. President Battulga shares our excitement for sending humans to Marks & we welcome future discussions on cooperation in space exploration.”
On July 30, the day before his White House visit, Battulga spoke at the Center for Strategic and International Studies’ (CSIS) Global Leaders Forum on the future of U.S.-Mongolia relations. The conference was attended by the Mongolian delegation, including Foreign Minister Tsogtbaatar Damdin and Mongolian Ambassador to the U.S. Otgonbayar Yondon, as well as U.S. Ambassador to Mongolia Michael Klecheski. During the conference, the Mongolian president received several questions about Mongolia’s position toward global issues like the denuclearization of North Korea, relations with China, and poverty reduction. In his response, Battulga said that Mongolia has never considered itself a “small” country. He added that the strength of Mongolia’s contemporary foreign policy is based on three factors: continuing good neighbor relations with Russia and China; gaining a strategic place in the Asia-Pacific by contributing to security and peace dialogues; and being an active member of both global and regional economic groupings, particularly the U.S. Indo-Pacific Strategy.
Erdenebat Tseveendorj, economic and industrial policy advisor to Battulga, told The Diplomat, “The meeting between the two leaders, Battulga Khaltmaa and Donald J. Trump has been in the spirit of the times. The 32 years of diplomatic relations and the newly established strategic partnership between two governments are expected to grow in a very positive direction.”

Source:TheDiplomat.com

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Petro Matad postpones Mongolia drilling after government challenge

StockMarketWire.com - Oil explorer Petro Matad said it had postponed the drilling of a well in Mongolia after a provincial government challenged its land-use rights.

The first casing point of the Heron-1 well had been reached at 551 metres on schedule.

'However, the provincial government has challenged Petro Matad's legal right to use the land at Heron-1 on the basis that a tripartite agreement between two central government agencies and the province has not been executed,' the company said.

'In all of Petro Matad's operations the Company has followed the land permitting regulations as required under the production sharing contract and in accordance with instructions from the Ministry of Mining and the industry regulator MRPAM.'

'The absence of a tripartite land use agreement between government agencies has never previously been an issue.'

'We are working with the Ministry, MRPAM and the provincial government to remedy this situation as soon as possible.'

The rig at Heron-1 had been put on standby whilst the situation was resolved.

Daily standby costs were 'low by industry standards' and were of the order of $12,000.

Petro Matad said it had also started drilling another well in Mongolia.

The Red Deer-1 exploration well in the Asgat Sag Basin of Block XX in eastern Mongolia was being drilled with the Daton Petroleum Engineering and Oilfield Service LLC rig, DXZ1.

It was targeting a prospect with 48m barrels of mean prospective recoverable resource and would be drilled to a total depth of 2,100 metres.

Red Deer-1 was expected to take up to 35 days to complete.

In the event of a discovery, the company said it would bring in a separate rig for testing.


At 8:35am: [LON:MATD] Petro Matad Ltd share price was 0p at 7.9p

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Mongolia to hold "Tea Road" heritage festival to boost tourism

ULAN BATOR, Aug. 6 (Xinhua) -- Mongolia will hold a heritage festival entitled "Tea Road" in western Khovd province next week to attract domestic and foreign tourists, the province's governor office said Tuesday.
"Khovd is home to multi-ethnic groups," Batsuuri Dugerjav, governor of the province, told Xinhua. "The event aims to develop the province's tourism sector by promoting tangible and intangible cultural heritage, folk arts and tea culture of minority groups," said Dugerjav.
The tourism event will include a camel caravan, mini Naadam festival, tea-making ceremony, horsemen competition, contortion performances and folk arts.
Mongolia has been striving to develop its tourism sector in a bid to diversify its mining-dependent economy, and has set itself a goal of receiving 1 million visits by foreign tourists and earning 1 billion U.S. dollars from tourism this year.
The number of foreign visitors to Mongolia exceeded 529,000 in 2018, up some 11 percent from the previous year, according to the tourism ministry.
The Tea Road festival runs from Aug. 13-16.

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Mongolia, Japan vow to boost agricultural cooperation

Minister of Foreign Affairs of Mongolia Damdin Tsogtbaatar on August 5 received Mr. Katsuhito Asano, former member of the House of Councillors in the National Diet of Japan, Montsame reports.
Mr. Katsuhito Asano introduced the projects to be implemented in the fields of Mongolia-Japan relations, cooperation and agriculture. Foreign Minister expressed his readiness to support the projects in agriculture, especially in the livestock industry, emphasizing the importance of collaboration with professional organizations of Mongolia, processing of animal raw materials and production of finished goods.
During the meeting Mr. Katsuhito Asano conveyed the greetings of Japanese Ambassador Taro Kono.

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U.S. becomes Mongolia’s 5th strategic partner

The United States became Mongolia's 5th strategic partner, The Diplomat said with reference to the National Security Council Secretary of Mongolia Gansukh Amarjargal. “The meeting between the two leaders, Battulga Khaltmaa and Donald J. Trump has been in the spirit of the times. The 32 years of diplomatic relations and the newly established strategic partnership between two governments are expected to grow in a very positive direction,” he said.
Mongolian President Battulga Khaltmaa paid state visit to the United States last week. Thus, on July 31, after the meeting between Battulga and U.S. President Donald J. Trump, the U.S. Department of State released the Declaration on the Strategic Partnership Between the United States and Mongolia. This declaration indicates Mongolia’s successful utilization of the third-neighbor policy and makes the United States the fifth country to ink a strategic partnership with Mongolia.
The Declaration on the Strategic Partnership between the United States and Mongolia is built on mutual understanding and a shared pursuit of global and regional peace and security, protecting human rights, freedom of speech, and national independence and territorial integrity. The declaration acknowledges that U.S.-Mongolia ties “have grown stronger and closer based on common strategic interests, shared democratic values, good governance, principles of sovereignty, and respect for human rights” and “that the United States of America and Mongolia have a mutual interest in cooperating more closely to ensure peace, security, and stability in the region.”
Two aspects of the declaration are critical in answering how the United States and Mongolia will boost economic cooperation through trade, investment, and development. First, the declaration calls for the utilization of the U.S. Overseas Private Investment Corporation (OPIC) to help solve critical development challenges in Mongolia. In addition, the strategic partnership ultimately aims to strengthen Mongolia’s economic security by increasing the flow of foreign direct investment, supporting small and medium enterprises (SMEs), involving state-owned enterprises, and further exploring emerging new markets such as technology, science, and space exploration.
Moreover, the U.S. Department of Defense’s Indo-Pacific Strategy report included Mongolia as one of the “democracies in Indo-Pacific,” that are “reliable, capable, and natural partners of the United States.” The report but also emphasized the burgeoning security relationship based on Mongolia’s unswerving contribution to U.S.-led operations in Afghanistan, and UN peacekeeping missions in Africa. Mongolia was mentioned 17 times in the report, compared to 15 for New Zealand, 18 for Singapore 18, and 31 for Taiwan. The state visit of the Mongolian delegation has reinforced Mongolia’s status in the Indo-Pacific Strategy.

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Mongolia's agreement with US will not affect relations with Moscow, Beijing — expert

Mongolia and the United States signed an agreement on strategic partnership during Mongolian President Khaltmaagiin Battulga's visit to Washington

MOSCOW, August 2. /TASS/. The declaration on strategic partneship between Ulaanbaatar and Washington signed during Mongolian President Khaltmaagiin Battulga's visit to the United States represents a political gesture aimed at demonstrating growing international support for Mongolia, chairman of the Valdai International Discussion Club Andrey Systritsky told TASS on Friday.

"There will be no significant consequences [for Mongolia's relations with Russia and China] after this declaration. It is rather a demonstrative political gesture aimed at showing to Mongolia's neighbors (Russia and China) that Mongolia has some additional real or imaginary political support," Bystritsky said. "At the same time, Mongolia is intensively developing its relations with Russia, and shows great interest in this. As far as I know — and I talked with Mongolian colleagues, including those in the sphere of foreign policy — they are energetically trying to develop relations with Russia," he added.

According to the expert, Mongolia is interested in diversifying its international relations, and signing a declaration on strategic partneship with the US is supposed to set the framework for the country's foreign policy. He added that it is hard to tell which side initiated the agreement, and it seems like the declaration was long in the works. At the same time, Bystritsky noted that there is no consensus among diverse Mongolian elites on the country's foreign policy course.

"One should not talk about favoring the West in this situation. This declation is political, and it is aimed at neighboring countries. It is supposed to reconfigure, not radically change relations with neighboring countries," the expert said. "Moreover, Mongolia, like many other countries, is somewhat cautious about China, not because there is a specific reason for that, but just because China is so big and strong," he concluded.

Source:https://tass.com/world/1071751

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The Largest Cashmere Manufacturer Of Mongolia Comes To The USA

By The Gobi Corporation

ULAANBAATAR, Mongolia - During the Mongolian president's U.S. visit this week, that country's largest cashmere manufacturer, the Gobi Corporation, is preparing to announce its plans to enter the U.S market by September.

The subsidiary Gobi Cashmere USA will be located in Los Angeles, and is launching an e-commerce website specially dedicated to U.S customers.

The Gobi Corporation currently supplies high-quality raw cashmere products to the international market. However, its presence in the U.S. has been small due to fierce competition from China. As of now, Gobi Corporation has franchise stores in Chicago, Los Angeles and San Francisco. If a trade bill under consideration is passed, cashmere companies from the young democratic nation would be able to better compete with its competitors.

Increased trade between the U.S. and Mongolia would benefit many stakeholders in the cashmere supply chain, including nomads, employees and, ultimately, consumers.

The nomads of Mongolia rely on the sale of their raw cashmere to manufacturers for half of their annual income, which is badly needed for educating their children as well as other annual costs.

Nomads herd goats whose raw cashmere is supplied to the market. The traditional Mongolian nomadic way of coexisting with livestock offers a special feature of differentiation to cashmere sourced from Mongolian land, in terms of traditional heritage, and special care and humane treatment for the goats.

Additionally, Gobi has more than 2,800 employees - 80% of them female. As a part of the company's social responsibility, Gobi thrives to be the number one organization that leads others by example by taking good care for the employees' well-being, especially for those in need. This is another driver of the company's expansion to the international market, as the production increase will directly affect the employees' standard of living.

Mongolia, a landlocked country sandwiched between Russia and China, is utilizing its third-neighbor policy to its highest potential by expanding its diplomatic relations with countries around the world.

Diplomatic relations between Mongolia and the U.S. were formally established on Jan. 27, 1987, and it has expanded both on economic and political platforms. On July 26, 2018, U.S. Rep. Ted Yoho and nine other members Congress introduced a trade bill seeking to promote trade between the U.S. and Mongolia by allowing duty-free treatment for certain imports from Mongolia, such as cashmere products and textile materials.

Mongolian President Battulga Khaltmaa visited the U.S. on Wednesday to express his full support for the trade bill and appreciation to the sponsors.

The trade act would be helpful the Mongolian economy in a variety of ways beyond opening the U.S. market to its cashmere. Mongolia supplies about 48% of the total raw cashmere to the world market, making it the second-largest raw cashmere supplier, yet they use only 15% of it to make ready-to-wear finished cashmere garments locally. The remaining 85% of the raw cashmere is sold as a semi-processed material to other markets with less added value, which is becoming the focus area of the Mongolian government and domestic cashmere manufacturers. The U.S. is considered as the second largest cashmere consumer country. This duty-free treatment would open a tremendous opportunity for Mongolia to diversify its economy.

The world has heard about the rich history of Mongolian invasionshundreds of years ago, but now, they are ready to invade the world cashmere market with their silky-soft pure products. And now they are coming to your doorsteps, America.

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Rio Tinto Rains Cash on Investors Even as It Digs Out of Hole in Mongolia

Anglo-Australian miner to pay $1 billion special dividend, reports decline in net profit after writing down investment in Oyu Tolgoi mine

By Rhiannon Hoyle

SYDNEY— Rio Tinto RIO -2.29% PLC said it would pay a special dividend and raise its midyear payout, even as its first-half net profit fell because of a write-down of the value of a major copper investment in Mongolia.

Rio Tinto said it would pay a $1.0 billion special dividend and raise its interim dividend to $1.51 a share from $1.27 a share a year ago, continuing a cash windfall for mining investors as the price of iron ore surges to its highest in more than five years.

The world’s second-biggest mining company by market value on Thursday reported a 12% rise in its first-half underlying earnings to $4.93 billion, missing the $5.16 billion median forecast of seven analysts polled by The Wall Street Journal. It was the miner’s highest first-half earnings since 2014.

“It is a very strong set of results,” Chief Executive Jean-Sébastien Jacques said, adding that profit margins were at their highest in a decade.

However, net profit fell 6% to $4.13 billion after the company wrote down its investment in the Oyu Tolgoi copper deposit in Mongolia by $800 million. Rio Tinto said last month it will take longer and cost more to finish building an underground mine at Oyu Tolgoi after early engineering work pointed to a heightened risk of rockfalls.

“Right now we have a lot of uncertainty about the project,” Chief Financial Officer Jakob Stausholm told The Wall Street Journal.

The Oyu Tolgoi operation—one of the few big mine developments globally—will be the world’s third-largest copper mine once it is completed, according to the company’s projections.

Miners have become much more focused on investor returns after several deals clinched at the top of the last mining cycle were much less profitable than hoped. Some investors are pressing companies to explain how they will grow production as reserves of copper to iron ore get used up.

Last month, Anglo American PLC said it would buy back $1 billion in stock and raised its interim dividend by 27% as it reported a jump in half-year earnings. Rivals including BHP Group Ltd. are also expected to report bumper profits and returns this month.

Cash flows have been bolstered by a boom in the global iron-ore market, as exports from the major hubs of Brazil and Australia have faced disruptions and China’s steel production surged to fresh records. The price of iron ore has jumped by more than 60% since the start of 2019.

Rio Tinto said its net debt totaled $4.86 billion at the end of June, down from $12.90 billion three years ago.

Still, the Anglo-Australian miner hasn’t been able to capitalize fully on the increase in iron-ore prices after production was hurt by bad weather in Australia’s arid Pilbara region, which accounts for 60% of the world’s iron ore traded by sea. Mr. Jacques said the company was struggling to maintain premium iron-ore grades for its customers after running its mines hard in recent years, and delaying some new investments.

“We have operational issues, but this is mining,” he said.

Mr. Jacques was upbeat about the global outlook, despite U.S.-China trade frictions remaining unresolved. Beijing is responding to a slowdown in its economy with stimulus measures and that should buoy demand for iron ore and other commodities, he said.

Source:Wall Street Journal

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Inner Mongolia restores Mongolian archives

HOHHOT, July 31 (Xinhua) -- North China's Inner Mongolia Autonomous Region is working on the restoration and digitalization of Mongolian archives dating from the Qing Dynasty (1644-1911) to the Republic of China period (1912-1949), authorities said Wednesday.

According to the region's archives bureau, it is working with a tech company to restore Mongolian archives dating from the ruling period of Qing Emperor Qianlong to the Republic of China period.

The archives record the political and living conditions of Mongolians during that period of time and are precious cultural heritage and important evidence for studying the history of the Mongolian ethnic group.

The region is also working on the digitalization of correspondence between the Qing government and a Tibetan Buddhist temple in the region.

The digitalization work, on archives dating from the ruling period of Emperor Kangxi to the year 1948, concerns religion, politics, law and economy. It is expected to be completed by the end of this year.

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Trump welcomes Mongolian president Battulga to White House

WASHINGTON (AP) — President Donald Trump welcomed Mongolia’s president, Khaltmaa Battulga, to the White House for talks that focused on enhancing trade.

The visit Wednesday is the first by a Mongolian president since June 2011, the last time a leader of the landlocked country between Russia and China came to the White House.

Trump administration officials say the meeting was designed to explore ways to help the East Asian nation diversify its trade flows since about 90 percent of Mongolia’s trade must go through China.

Trump and Battulga were also expected to discuss defense and security matters, among other issues. The president greeted Battulga and posed for photos before entering the Oval Office. Trump said Mongolia produced “great fighters, great wrestlers, great champions.”

Battulga is a populist business tycoon and ex-judo champion whose meeting with Trump follows a recent visit to Mongolia by Trump’s national security adviser, John Bolton.

The White House said the U.S. and Mongolia share a close security partnership. It said Mongolia has pledged to commit troops in Afghanistan through at least 2021 and has been supportive of the U.S. sanctions on North Korea and of negotiations with Kim Jong Un.

The U.S. has a $111 million trade surplus with Mongolia last year. The U.S. is urging Mongolia to fully implement a 2017 agreement on transparency designed to improve the country’s business and investment climate.

Mongolia also signed a $350 million compact last year with the Millennium Challenge Corporation that aims to improve water supply infrastructure in Mongolia’s capital.

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Mongolian President talks cashmere, horse names with Trump

Washington (CNN)When Mongolia's President visited the White House on Wednesday, he was hoping President Donald Trump could relay some important information: the name of the horse he gave Barron Trump.

The President's 13-year-old son hasn't actually taken possession of the small-breed Mongolian horse, which President Battulga Khaltmaa symbolically gifted last month.

But Battulga arrived eager to learn whether the animal had been named, according to a senior administration official.

It has, according to Trump: "Victory."

"Did you see a picture of the horse?" Trump asked reporters. "Beautiful."

The tiny breed is a symbol of the country, where they outnumber people. Genghis Khan was said to ride one. They've been given to visiting dignitaries before, including then-Defense Secretary Chuck Hagel.

The Trump administration hoped to send a message to Beijing and Moscow by inviting Mongolia's leader for talks at the White House.

The landlocked country's borders with Russia and China make it an ideal place for listening and strategic relations, a senior administration official said. The official claimed it is hard to envision a country better placed to develop US relations.

Officials said the visit would give the US leverage in the ongoing trade negotiations with China, the latest round of which wrapped this week. More than 90% of Mongolia's trade goes through China, the official said, and the US is looking to help Mongolia develop other options.

Cashmere was a main topic of discussion. Mongolia is one of the world's leading producers of cashmere and right now most of Mongolia's raw cashmere is sent to China, where it is made into products and exported. Alternatives to that process could be created -- Mongolia could develop the wool itself, with the help of the US, and export it in a way that would more economically favor Mongolians.

The leaders were also expected to discuss a number of other topics, including military cooperation between the US and Mongolia and investment in Mongolian minerals.

It was the first visit of a Mongolian president to the US since 2011. The Trump administration sees Mongolia as having been long neglected by the US. Now, the administration is tending to the relationship, the official said.

Source:CNN

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President Donald J. Trump is Expanding Our Partnership with Mongolia-White House Press Briefing

Our success depends on a coalition of strong and independent nations that embrace their sovereignty to promote security, prosperity, and peace for themselves and for the world.

President Donald J. Trump

ENHANCING OUR STRONG PARTNERSHIP: President Donald J. Trump is expanding our critical security and economic partnership with Mongolia.

ENHANCING OUR STRONG PARTNERSHIP: President Donald J. Trump is expanding our critical security and economic partnership with Mongolia.

President Trump was pleased to welcome President Battulga of Mongolia for a bilateral meeting at the White House today.

This visit presents a vital opportunity to enhance the already strong United States–Mongolia relationship.The United States supported Mongolia’s establishment of a free democratic society after renouncing communism in 1990, creating a foundation of goodwill that remains today.President Trump and President Battulga are engaging on a range of issues, including defense and security, trade and investment, and sovereignty and rule of law.We are working closely with Mongolia to deepen our security ties and promote a healthy economic relationship between our two countries.The United States and Mongolia have agreed that their relationship has reached the level of a “strategic partnership.”

STRENGTHENING SECURITY COOPERATION: Mongolia is an important security partner and is working with us to sustain a free and open Indo-Pacific region.

Mongolia and the United States share a dynamic security relationship and together we are building an even closer partnership for the future.Mongolian troops stood side-by-side with American forces in Iraq and Afghanistan.Mongolia has pledged to commit troops in Afghanistan through at least 2021.Mongolia has been supportive of our sanctions on North Korea and our negotiation efforts.Through its “Third Neighbor Policy” Mongolia looks to maintain close ties to democratic partners like the United States, Japan, and South Korea.The United States enjoys a strong diplomatic information sharing relationship with the government of Mongolia.Mongolia has been an important host for multinational peacekeeping and security exercises.EXPANDING ECONOMIC OPPORTUNITIES: The United States is working closely with Mongolia to bolster economic opportunities and increase bilateral trade.In 2018, the United States had a $111 million trade surplus with Mongolia, reflecting the significant importance of the country as an export market for American goods such as automobiles and heavy machinery.We are urging Mongolia to fully implement the 2017 transparency agreement between our two countries, which will help improve Mongolia’s business and investment climate.The United States is working with Mongolia to improve opportunities for investment, invest in infrastructure, and enhance education.The United States Agency for International Development (USAID) is working to help increase transparency and provide greater access to finance in Mongolia.In 2018, Mongolia signed a $350 million compact with the Millennium Challenge Corporation that aims to improve water supply infrastructure in Mongolia’s capital.The Peace Corps has volunteers working in 21 provinces in Mongolia to provide health education and English language instruction, and plans to increase its presence.

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Rio Tinto-controlled Turquoise Hill swings to loss on Mongolia mine woes

By Nichola Saminather

TORONTO, July 31 (Reuters) - Rio Tinto-controlled Turquoise Hill Resources said an impairment charge at the cash-generating unit of its Oyu Tolgoi copper mine in Mongolia led to the company missing estimates for second-quarter profit on Wednesday.

Turquoise Hill, which owns 66% of the mine, reported a loss of $736.7 million, or 22 cents a share, in the three months ended June 30, compared with a profit of $204 million, or 9 cents, a year earlier. That compared with analyst expectations for earnings of 3 cents a share.

Oyu Tolgoi, operated by Rio Tinto PLC and expected to become one of the mining company's most lucrative properties, produced 39,156 tonnes of copper and 71,825 ounces of gold during the quarter.

That came at an all-in sustaining cost of $1.54 per pound of copper produced, compared with $2.42 a year earlier.

Oyu Tolgoi's underground expansion has been beset by delays, cost overruns and political squabbles, prompting the government of Mongolia, which owns 34% of the mine, to set a vote for August to cancel parts of an investment agreement with Rio Tinto. This would reduce the company's future profits while benefiting Mongolia.

Turquoise Hill shares have slumped 46% since it said this month it could spend as much as $1.9 billion more than the $5.3 billion previously announced on the underground expansion of Oyu Tolgoi, and that first production would be delayed by up to 30 months.

The impairment causing its quarterly loss was related to that increase in expected spending and delays, the company said on Wednesday.

Turquoise Hill, which is also listed on the New York Stock Exchange, said its share price decline to below $1 meant it is no longer in compliance with the exchange's listing rules, and that it intends to "pursue measures to cure the share price non-compliance."

Turquoise Hill spent $292 million on the expansion during the quarter, bringing total expenditure on the underground project since January 1, 2016, to $2.9 billion.

Turquoise Hill posted revenue of $382.7 million, down from $341.7 million a year ago and compared with analysts' expectations of $307.5 million.

Source:Reuters

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Trump on Mongolian gift horse: I'm naming it 'Victory'

President Trump said Wednesday he’s settled on a name for the horse gifted by Mongolian President Khaltmaa Battulga — “Victory.”

Mr. Trump revealed the moniker as the two leaders made their way into the White House for a bilateral meeting.

“Thank you very much for the horse,” Mr. Trump told Mr. Battulga, before asking if the media had seen a picture of it, though they hadn’t.

“Beautiful,” Mr. Trump said.

Mr. Battulga is making his first visit since assuming the presidency in July 2017.

They are expected to discuss ways to diversify Mongolia’s trade markets, since the Asian nation is heavily reliant on China.

Mr. Trump extolled the Mongolians’ fighting spirit, noting a former sumo champion was among the visiting president’s entourage.

“You know, they’re great fighters, great wrestlers, great champions,” Mr. Trump said.

On Thursday, Mr. Battulga will visit with members on the Senate Foreign Relations Committee and tour the Library of Congress.

Source:Washington Post

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Declaration on the Strategic Partnership between the United States of America and Mongolia

The text of the following statement was released by the Governments of the United States of America and Mongolia on the occasion of the visit of His Excellency Khaltmaagiin Battulga, President of Mongolia, to the United States of America, and the meeting between President Battulga and Donald J. Trump, President of the United States of America.

Begin Text:

RECOGNIZING that the basic principles set forth in the 2007 Declaration of Principles for Closer Cooperation, and supported by the 2004, 2005, 2011, and 2018 Mongolia-United States Joint Statements, have provided a firm foundation for the development of the bilateral relationship;

ACKNOWLEDGING that relations between the United States of America and Mongolia have grown stronger and closer based on common strategic interests, shared democratic values, good governance, principles of sovereignty, and respect for human rights;

RECOGNIZING the Joint Statement and the Roadmap for Expanded Economic Partnership between Mongolia and the United States of America signed in Washington D.C. on September 20th, 2018;

DESIRING to increase economic opportunities, create new jobs, and reduce poverty through economic growth, investment, and free, fair, and reciprocal trade;

ACKNOWLEDGING that the United States of America and Mongolia have a mutual interest in cooperating more closely to ensure peace, security, and stability in the region;

GUIDED by the joint intent to continue expanding and developing relations across all areas of cooperation, including political, economic, cultural, educational, humanitarian, and people to people ties in order to meet evolving challenges and to maximize new opportunities;

AFFIRMING that the United States of America and Mongolia share the principle of respect for national independence, sovereignty, and territorial integrity;

The governments of the United States of America and Mongolia hereby declare their relationship to be a Strategic Partnership, and further note their shared desire to:

1. Intensify cooperation as strong democracies based on the rule of law through safeguarding and promoting democratic values and human rights, including the freedoms of religion or belief, expression, including internet and media freedom, assembly, and association; anti-corruption and fiscal transparency; and youth and emerging leader development;

1. Cooperate in promoting national security and stability across the Indo-Pacific region so that all nations, secure in their sovereignty, are able pursue economic growth consistent with international law and principles of fair competition;

1. Deepen national security and law-enforcement ties through collaboration on bilateral and multilateral security, judicial, and law-enforcement efforts in the region and to strengthen cooperation in multilateral engagements such as peacekeeping, humanitarian assistance, and disaster preparedness and relief operations;

1. Expand trade and investment relations on a fair and reciprocal basis, support private sector-led growth, fully implement the U.S.-Mongolia Transparency Agreement, promote women’s entrepreneurship, and continue to explore support for infrastructure under the new Development Finance Corporation with the new tools provided under the BUILD Act;

1. Strengthen border security, prevent illegal transshipment and trafficking, expand cooperation on civil aviation safety and oversight, and efficiently facilitate legitimate travel between Mongolia and the United States;

1. Increase cooperation in addressing transnational threats such as terrorism, human trafficking, drug trafficking, the proliferation of weapons of mass destruction, cyberattacks, transnational organized crime, pandemics, and other emerging non-traditional security threats;

1. Continue to develop an environment in which civil society, social media, and a free and independent media can flourish;

1. Maintain high-level official dialogues, encourage bilateral exchanges at all levels of government, and further develop people-to-people exchanges to deepen engagement on issues of mutual interest and concern.

Source: US Department of State

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