Mongolia Celebrates Its First Planting Day

Mongolian President Tsakhia Elbegdorj planted trees in the yard of a kindergarten in the capital city of Ulan Bator on Saturday, marking the country's first Planting Day.

According to a decree issued on April 16, 2010 by the president, Mongolians are to plant trees on every second Saturday of May and October.

It was estimated 35,000 trees would be planted throughout the country on Saturday.

"The most important work after planting trees is that we must take care of the trees as we take care of our infants," the president said in his speech.

Mongolia is a country with a fragile ecological environment and a low forest coverage rate. Almost 72 percent of its total land has turned into desert, and about 90 percent of its grassland, which once fed its cattle, has badly deteriorated.

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Discover Mongolia 2010 to Take Place on September 8-10, 2010

he Organizing Committee of Discover Mongolia is pleased to announce that the 8th annual International Mining Investors Forum shall take place in Ulaanbaatar, Mongolia, on September 8-10, 2010.

(PRWEB) May 15, 2010 -- The Organizing Committee of Discover Mongolia is pleased to announce that the 8th annual International Mining Investors Forum shall take place in Ulaanbaatar, Mongolia, on September 8-10, 2010.

“Mongolia is an exciting frontier in minerals industry where world class deposits are being discovered. Among them are the massive Oyu Tolgoi copper-gold deposit and Tavan Tolgoi- the world’s largest undeveloped coking coal deposit and many others” said Mr. Ankhbayar Gurdorj, Chairman of the Organizing Committee.

Mongolia welcomes investment in minerals business, and “Discover Mongolia” International Mining Investors Forum remains as a resourceful base to launch and expand businesses, establish new contacts, learn of the latest developments and make deals.

In 2009, the 7th “Discover Mongolia” Forum was solely organized by the Mongolian National Mining Association. Yet, this year, the founding members have decided to shoulder the efforts of the MNMA to add more value to the Forum and reinvigorate the business and entrepreneurial spirit of among the participating investors by boosting the quality, content and scope of the Forum events- Mining Conference, “Government Hour” a panel session with Government officials and Government policies in the mineral industry, Investors’ Exchange Exhibition, Mine Tour and a Fishing Tour, the traditional events under the Forum.

Online registration has started at www.discovermongoliaforum.com. There you may also reserve your exhibition space.

About the organizers

The Forum was initiated by a group of proactive mineral consultancies in 2003 – Mine Info LLC and Monrud LLC and since then until 2009, these companies in close cooperation with the Mongolian National Mining Association- the largest professional NGO in Mining had organized the forum.

For more information please contact:

Enkhjin Purevjav Phone: 976-99020607 Fax: 976-11-319761

###

Source : PRWeb
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Parliament Wants Independent Authority Against Corruption (IAAC) to Deal with Big Fish

Mongolian Parliament has organized an open hearing over accountability of public officers, who failed to declare accurate annual assets and incomes. The hearing was the first of its kind since the country’s anti-corruption law was enacted in 2006, and an independent anti-corruption agency was established.
Chairman of the Standing Committee on Justice B.Bat-Erdene last Wednesday heard reasons why those public servants have failed to submit declaration within legal period, February 15 of each year, and opinions of their supervising officers for why not taking accountability measures as prescribed by law: resignation, temporary suspension, and termination of employment.


At the beginning of the meeting, where more than 40 observers were present, J.Batsaikhan, an official at the monitoring and inspection department of the Independent Authority Against Corruption (IAAC), briefed about latest entries. “Around 99 percent of total 53,016 public officers of Mongolia have submitted their assets and income declarations of last year. 21 of them had inaccurate information over savings, housing, vehicles, shares and incomes they had generated last year,” Batsaikhan said. But the authority admitted that not all of those total public officers are screened for detailed inspection.

MP Z.Enkhbold, who was at the panel, expressed his doubt that only eleven officers were present at the hearing out of total 53,016. He said more high ranking officials could have been called to this meeting.

The first public officers to speak out were G.Bolortuya, a customs inspector of Dornod province; and J.Tuyatsetseg, a tax inspector of Bayangol District Tax Office. “I was sick from year beginning until the end of February in a hospital. It is my fault that I missed the deadline to declare my assets and income. I submitted those three days later,” said G.Bolortuya.
“At that time, my mom was sick, receiving an intensive medical treatment at the hospital. I live with my mom in a ger district. I have nothing to hide from the State,” stated J.Tuyatsetseg in a trembling voice. She acknowledged her fault that she missed legal deadline. Their supervising officials: Chief Officer of the General Customs Office D.Tseveenjav, and Director General of the National Taxation Office Ts.Oyunbaatar told committee chair that Tuyatsetseg’s two month salary was cut by 20 percent, and Bolortuya was given a warning. The committee warned the higher ranking officials a strict implementation of law, not “friendly” measures over sick of leave as there is no such legal paragraphs.

MP D.Oyunkhorol, an only women member at the panel, has criticized the hearing organizers for what she called harassing small officials in low level over corruption while leaving the “big fish” to go unpunished. Her statement was applauded by observers, and ordinary citizens. Some MPs nodded that until the “big fish” were taken to court and punished, they would continue to doubt the IAAC’s independent status. In a question where are “big fish”, anti-corruption agency had not commented.

Ts.Janlav, Governor of Dornod province, was the next person to describe why he did not declare four housings that his spouse owns, and significant shares of Dornod JSC.

As a former private business owner, Janlav said, “My family used to own 270,000 shares of Dornod JSC. I declared those in 2007 declaration. We have sold them in 2007. No longer necessary to declare, I think”. He also declared that he has sold two-storey private house he used to own, and transferred ownership of four housings to his spouse, who also work for public sector and declared in hers separately.

L.Amgalan, Governor of Bayangol District of Ulaanbaatar, said she had misunderstandings how to fill the declaration form. She said she had no intention to hide her properties as she did not know she had to declare her private apartment in Bayangol District. “I understood a form question ‘properties’ as business premises for industrial or service use, not for residence purpose,” Amgalan said. She said that she has transferred Delgerekh LLC to her relative after assumed to public job. “But due to the company chapter has not been rewritten yet, I did not know I was still listed as one of the founders,” added Amgalan, who also said she did not know there were “leftover” cash balance in her Golomt Bank savings account being counted.

Ch.Khurelbaatar, a chief officer of the Cabinet Secretariat Office, who was called to the hearing on behalf of former Prime Minister S.Bayar as supervising officer of provincial governor; and Mayor of Ulaanbaatar G.Munkhbayar as supervising officer of district governor, said that the prime minister and city mayor are no “legally capable” to interfere decision of local legislative bodies who usually make “friendly” conclusion in favor of their governors. Committee chair criticized the local level legislative bodies have no will to fight against corruption.

In following, B.Khurts, an officer of the National Security Council, explained the reasons why he did not declare two private businesses, housings and vehicle that his father bought under his name. R.Bat-Erdene, Director General of MIAT Mongolian Airline, commented 27 cattle he had to declare “Some had already died in the recent dzud disaster, and rest of others has been sold. No animal is left”.

S.Tsetsgee, Director of the Capital City Customs Office, told the Committee Chair Bat-Erdene in shaking voice that she has been working for public sector for the last 27 years, and has “no will” to hide information. The IAAC charged her hiding information about private businesses of her family members. D.Tseveenjav, Director of the General Customs Office, said that salary of Tsetsgee, who repeatedly missed the legal deadline in 2006 and 2007, has been cut by 30 percent, and her ranking was lowered down for one year.

The three hours long open hearing, that was televised nationwide, concluded that the recommendation by IAAC about strict implementation of law has often been “blurred” at higher level of implicated public officers.
source: The UB Post-Leading English News
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Ivanhoe chooses its directors on Oyutolgoi board, names Batsukh Chairman

Peter Meredith, Deputy Chairman of Ivanhoe Mines, has announced that Mongolian diplomat Galsan Batsukh has been nominated to become Chairman of the Board of Directors of Oyutolgoi LLC, which is building, and will operate, the Oyutolgoi copper-gold project. "Mr. Batsukh has been closely associated with the Oyutolgoi story virtually since it began with Ivanhoe"s exploration drilling in 2001, when he was appointed Mongolia"s first ambassador to Canada. Now we are proud to nominate him for this key role with the team that is building the mining complex, which is the largest industrial development in Mongolia"s history," Meredith said.

"Mr. Batsukh"s experience in international affairs and consensus building, and his understanding of the expectations that the Mongolian people have in supporting the development of their resources, will be an invaluable asset to the company and the process."

Oyutolgoi, which will become one of the world"s largest porphyry copper-gold mines, is scheduled to be in commercial production in 2013. Ivanhoe Mines owns 66% of Oyutolgoi LLC and the Mongolian Government has acquired a 34% ownership stake.

Under provisions of the Oyutolgoi Shareholders" Agreement, Ivanhoe Mines appoints six of the nine members of the Oyutolgoi LLC Board of Directors and also nominates the Chairman. The Mongolian Government appoints three Directors. Batsukh"s nomination as Chairman will be confirmed at the first meeting of Oyutolgoi LLC"s new Board being planned for June.

The Ivanhoe Mines appointees for Oyu Tolgoi LLC directorships are:

* Galsan Batsukh. Ambassador Batsukh presently is Ambassador at Large for Mongolia"s Ministry of Foreign Affairs and Trade. He was formerly Mongolia"s ambassador to Canada between 2001 and 2005, with additional accreditations to Peru, Brazil and Paraguay, and ambassador to China between 2005 and 2009, with additional accreditations to Australia, New Zealand and Pakistan. A career diplomat since 1992, Mr. Batsukh holds a doctoral degree in international relations and previously was an executive with Mongolia"s National Tourism Administration for eight years, including two years served as Chairman.

* Peter Meredith. Mr. Meredith has been Deputy Chairman of Ivanhoe Mines since 2006. He oversees Ivanhoe Mines" business development and corporate relations, was formerly Chief Financial Officer and has been with the company since it began trading on the Toronto Stock Exchange in 1996. He was Ivanhoe Mines" chief negotiator for the Oyu Tolgoi Investment Agreement that took full legal effect in March. Mr. Meredith also is Chairman of Ivanhoe subsidiary SouthGobi Resources, a Mongolian coal producer, and was formerly a Chartered Accountant with Deloitte & Touche in Canada.

* John Macken. Mr. Macken is Chief Executive Officer, President and a Director of Ivanhoe Mines. He joined Ivanhoe in 2003 after a 19-year career with mining giant Freeport McMoRan Copper and Gold. He was formerly Freeport"s Senior Vice-President of Strategic Planning and Development, based in New Orleans, and previously spent a total of 13 years with Freeport"s operating unit, P.T. Freeport Indonesia, culminating in the position of Executive Vice-President and General Manager at Freeport-McMoRan"s Grasberg mining complex in Indonesia, the world"s single largest copper and gold mine.

* Sam Riggall. Mr. Riggall joined the Ivanhoe Mines subsidiary, Ivanhoe Australia, earlier this year as Executive General Manager – Commercial. He previously was General Manager of Business Evaluation for Rio Tinto, and was Rio Tinto"s chief negotiator for the Oyu Tolgoi Investment Agreement. He has extensive mining industry experience in many parts of the world and previously worked in a variety of commodity and functional roles within Rio Tinto, including industrial minerals, base metals, exploration, investment evaluation, business development and capital market transactions.

* William (Bill) Weld. Mr. Weld is international business adviser to the Ivanhoe group of companies and a former Governor of Massachusetts. He has been affiliated with the New York-based law firm of McDermott Will & Emery since 1997. During Mr. Weld"s two terms as Massachusetts Governor, which began in 1990, he was credited with improving the state"s business climate and leading international trade missions. Prior to his governorship, Mr. Weld headed the U.S. Justice Department"s Criminal Division as Assistant Attorney General and also was the U.S. Attorney for Massachusetts.

* Andrew Harding. Mr. Harding is Rio Tinto"s Chief Executive, Copper, and has been a member of the Ivanhoe Mines Board of Directors since November 2009. He provides management oversight to Rio Tinto"s Copper Group, comprised of mines and projects in the U.S., Chile, Australia, Indonesia, South Africa, Peru and Mongolia. He previously was President and Chief Executive Officer of Rio Tinto"s Kennecott Utah Copper and Global Practice Leader, Mining, within Rio Tinto"s Technology & Innovation group. He held operating roles with several mining companies in Australia before joining Rio Tinto in 1992.

The Mongolian Government"s representatives on the Oyu Tolgoi LLC Board of Directors were announced by the State Property Committee, which reports to Prime Minister Sukhbaatar Batbold:

* Natsag Bagabandi. Mr. Bagabandi"s distinguished political career culminated in his election as Mongolia"s second President, in 1997. Prior to his two successive terms as President, he was a member of the national parliament, the State Great Khural, he was elected as the country"s first parliamentary Speaker in 1992 and also served as Chairman of the governing Mongolian People"s Revolutionary Party. He was welcomed on a state visit to Canada in 2004 after the two countries established diplomatic relations. An extensively published author, he has been recognized with leadership awards by the United Nations, Russia and Hungary.

* Puntsag Tsagaan. Mr. Tsagaan is an adviser to Mongolia"s President Tsakhia Elbegdorj on minerals, energy and infrastructure policies. He has had a distinguished career in Mongolia"s public and private sectors during the past 25 years. The lawyer and economist was Minister of Finance in 1996-98 and Minister of Education, Culture and Science in 2004-06, Deputy Labour Minister in 1992 and formerly an adviser to the national parliament"s Democratic Party caucus. In business, he served as General Director of Mongolia"s Golomt Bank and Chief Executive Officer of Deltasan, a finance company.

* Chuluun Ganbold. Mr. Ganbold is Chairman of the board of Mongolia"s XacBank and Tenger Financial Group. He joined the XacBank board in 2003 and was elected Chairman in 2004, playing a leading role in guiding the bank"s development as a business-support institution specializing in microfinance and community development. He also is Chief Executive Officer of the EDN public relations consulting agency. He was formerly an adviser to a former Prime Minister and the Constitutional Court, President of the Mongolian Advertising Association and President of the Rotary International service club in Mongolia.
source: www.news.mn
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Dalai Lama writes to Elbegdorj supporting move on death sentence

President Ts.Elbegdorj has received a letter from the Dalai Lama expressing his happiness that a moratorium on the death sentence has been declared in Mongolia. The letter from the spiritual leader said he had for many years been writing to world leaders to stop the practice and hoped the Mongolian Parliament will follow the President’s lead and permanently revoke the provision.

The Dalai Lama refers to Mongolia’s Buddhist tradition which will help its people “to better appreciate your efforts not to harm human life” and says, “As time goes by, the spirit of compassion will spread among humankind and lead society to real progress.”

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S.Bayatsogt Warns of Inflation, Signals Interest Rate Hike

On Monday, Bank of Mongolia (central bank) increased its 10 percent policy interest rate up to 11 percent after the country’s policy makers admitted the inflation has soared into double-digits thanks to the government’s recent social transfers.
At the press conference, the country’s top bankers grounded inflation rate as the main reason which saw an increase by 11 percent compared to last month.
Minister Finance S.Bayartsogt said at the Parliament hearing that the government’s cash give-away program of MNT70,000 to each eligible citizens from its sovereign wealth fund “Human Development Fund” and decision to increase salary and pension by 30 percent effective from October have caused inflation hike. Top bankers feared that the inflation may reach same level of last year’s 34 percent.

Last year, the central bank has cut policy rate down to 10 percent after implementing tight monetary policy.

source:The UB Post.
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President names his Advisor as Prosecutor General


In accordance with the Constitution of Mongolia, the President Ts.Elbegdorj sent to parliament Tuesday his proposal on appointing D.Dorligjav the General Prosecutor of the state.
The State Head mentioned that he put forward the proposal taking into consideration Dorligjav's experience in public service, professional skills and participation in drawing up the program for reforming the jurisdiction.
D.Dorligjav is now working as head of the Presidential Office and a senior advisor.

Mr. Dorligjav Dambii was born on July 24, 1959, in Uvs, a western province of Mongolia. He completed his secondary education in his home province and moved to Khovd province, a neighboring province, to study at the agricultural technical vocation school to study veterinary.
Yet, after practicing veterinary for a few years in his home village Zuungobi in Uvs province, Mr. Dorligjav left for Moscow to study military and political science at the Moscow Military and Political Science Institute.
After graduation in 1983, he returned to Mongolia and studied law at the Mongolian National University. Majored in political science and law, Mr. Dorligjav worked in the Prosecutors’ Office of Sukhbaatar district of Ulaanbaatar, the capital city of Mongolia.

He started his political career in late 80s when he joined his friends of common beliefs and convictions in a struggle to build a new order in Mongolia – democracy and market economy. His political biography is inseparable from the history of Mongolian democracy. He was elected to the People’s Ih Khural (Congress) and the Baga Khural (first permanent Parliament) in 1990.

Soon after he served as Mongolia’s Deputy Prime Minister in 1992, the time when Mongolia first faced the severe hardships and harsh realities of transition to market economy. The challenges were immense, and his young, democratic government did manage to robustly withstand the tests of time and brought about fundamental reforms in the country’s economy with 70 year old past socialist legacy.

His political background is very diverse and, inarguably, he is one of the assets of Mongolia’s political and economic knowledge and experience depository – he served as the Minister of Defense, as Minister of Professional Inspectorate, Advisor to the Prime Minister.
There were times when the country needed him as an economic manager entrusting him to run the country’s largest state owned enterprise – Erdenet Copper mine, which to-date generates the lion share of the country’s foreign exchange revenues.
He later on came to refurbish his party, the Democratic Party serving as its Chairman, and later as the Secretary General of the party. His service in the Mongolian government, to the Mongolian State have been and are valuable as wherever he is, there is always dynamism, and order, and efficiency
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Will cash-for-carcasses work in Mongolia? After winter kills herds, unusual program helps poverty-stricken region

DUNDGOBI, Mongolia - The winter camps of southern Mongolia are quiet during this year's breeding season, after an unusually harsh winter wiped out herds and left nomadic families with little but debt to their name.
The bitter winter killed an estimated 8 million animals, according to the United Nations Development Programme (UNDP), leaving exhausted, poverty-stricken herders struggling to survive and increasing demands on Mongolia's already-stretched national budget.

"If a market burns down, the government offers money as compensation. Then why can't the government help the herders now?" asked Nyamiin Zagdsuren, a 39-year old herder, who lost more than two thirds of his 580 animals this winter.

He is counting on the cashmere combed from his remaining 140 goats to tide over his family, and to pay back a $360 bank loan he took out to clothe and buy school supplies for his three children.
The combination of a dry summer, followed by heavy snow and low winter temperatures is known in Mongolian as a 'zud'.

Roughly one-quarter of the country's 3 million people are nomads, while others also raise livestock in fixed settlements.

In Mongolia's southern Dundgobi province, about three-quarters of nomads now live below the poverty line, from half before the winter struck. Most herders are left with less than 250 animals.

At least 335 families in Dundgobi lost all their animals over the winter as temperatures dropped to 40 degrees Celsius below zero or colder.

"We have had so many sleepless nights, especially when a blizzard struck, or it started to snow. There was no time to change clothes, let alone sleep," said herder Tsegmediin Purevsuren, whose family is left with 92 animals out of a herd that once numbered 800 head.

"You would spend all night checking the sheds to make sure no animal was buried in the snow. If one was, you dug it out. The herders have worked without rest, from dusk till dawn, in all weather."

Cash for carcasses
Snow was still falling in Dundgobi province on May 8, signaling that this zud, the worst for several years, is far from finished.
Herders said a decade-long drought has depleted the grass their horses need, while many have difficulty affording the gas for their motorcycles.

Some herders are scraping up some cash by burying their dead livestock. The UNDP promises 870 tugrug (0.63 U.S. cents) for each goat or sheep and 2300 ($1.66) for each cow, horse or camel buried in pits.

The project has helped to clear about a third of the carcasses from three of the most severely affected provinces, preventing disease and water contamination, the UNDP resident representative Akbar Usmani said.

"I'd like to appeal to the international communities for additional support to the herders in order that we can meet the needs of them at this critical time," he said.

"As you have noticed there are herders who have lost close to 90 percent of their herds. In fact there are cases also where the entire livestock that they had has been wiped out," he said.
source: By Jargal Byambasuren,Reuters
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Kuwait may buy Mongolian sheep for meat

Mongolia is among the new sources Kuwait is studying for imports of sheep to make up for shortage of the cattle imports from Australia, the country"s long-time main exporter of this meat. A team from the Arab Gulf country is due to visit in the next few days Mongolia, Georgia and Azerbaijan, whose livestock is well known for high quality.

Kuwait’s past bids to make up for the shortage of the imports of Australian sheep by importing sheep from Inner Mongolia and Sudan proved largely fruitless.
source: www.news.mn
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Mongol-999 appoints Governing Board

Mongolian companies who want to participate in the exploration of the Tavantolgoi coal deposit have formed a consortium called Mongol-999. The name was chosen as the organizers though they would have around 1,000 members, but almost 1,600 companies have so far expressed their interest in joining. Every company which wants to join will have to pay MNT1 million. Tg.

Over three days last week the organizers discussed the rules and regulations of the consortium and also appointed a Governing Board which was announced only on Sunday. The 15 members of the Governing Board are: include

Ch.Enkhtaiwan, Director of Tsgaan Shonkhor;

Ts.Myanganbayar, Director of Mongol Gazar;

D.Bat-Erdene, Director of Ajnai Group and a former MP;

D.Tserenjigmed, Director of Max Group;

B.Lkhagvajav, Director of Urbanek and head of the National Soyombo movement;

D.Sukhbaatar, Director of Mongol Medleg;

N.Ariunbold, Director of Mongol Basalt;

S.Otgonbaatar, Director of Brauhaus;

N.Amarbaatar, Director of Bars Group;

B.Munkhbaatar, Director of Andyn Service;

S.Baymbaa, former deputy director of Erdenet;

N.Enkhsaikhan, Director of Mon-Laa;

G.Purevsuren, Director of United Friends;

U.Munkhbat, economist; and
source:www.news.mn
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Mongolia donates 50,000 dollars to China over earthquake

Mongolia on Monday donated 50,000 U.S. dollars to help the victims by the earthquake that occurred in April in northern China.

Deputy Prime Minister Miyegombo Enkhbold handed over the money while meeting with Chinese ambassador Yu Hongyao.

During the meeting, Enkhbold also mentioned about the donation by the Chinese government to Mongolia last winter to overcome the severe weather. Mongolia will not forget help from the Chinese people and government, he added.

Ambassador Yu expressed gratitude to the Mongolian government's donation.
Source:Xinhua

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"Sant Maral" Foundation -Politbarometer -II

Systemic part




Personal Part



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"Sant Maral" Foundation -Politbarometer -I

The “Sant Maral” foundation presents the results of the April 2010 survey. The representative sample of 1200 respondents from the capital Ulan Bator and Dornogovi, Dundgovi, Zavhan, Hentii,Arhangay aymaks (distributed proportionally by 4 regional divisions and Ulan Bator) was collected from April 16 to April 23, 2010. Tabulations are band by Ulan Bator, Countryside and Nationwide aread when necessary.
The survey is sponsored by the Konrad Adenauer foundation of Germany.

Voting intention

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Mongolia and Great Patriotic War of Soviet Union

Today is the eve of the Victory day of Great Patriotic War celebrated on 9 May, every year. Many people today don’t know that Mongolian People’s Republic was the only ally of Soviet Union when Nazi Germany attacked it on June 22, 1941.
Since first day of the war, Mongolian Government announced its intention to support war effort of the Soviets and mobilized all resources for this end. Millions of warm animal skin clothes, horses were sent to the Front. Mongolian herders donated their best horses for the Soviet cavalry. One herder woman of Uvs province was named “Front” Badam as she donated more than half of her meager sized herds for the war. Soviets formed tank brigade “Revolutionary Mongolia” with the fund of Mongolia.
In 1942, Mongolian representatives first time visited Soviet troops on frontlines. Mongolian cadets studying in Soviet military schools joined the Soviet troops and demonstrated bravery and were received honorary medals. Thousands of ethnic Mongolians, residents of Buryat, Tuva, Kalmyk Republics and Siberia fought as snipers in the Red army using their sharpshooting skills. Whole battalions of Red Army comprised of ethnic Mongolian soldiers fought so brave and wildly, Germans feared to confront them in battles.
Mongolian faces can be seen in many war time photos of the Soviet troops. Mongolian assistance to the Soviets continued until the war was over in 1945. After the war, Stalin sent official letter to Mongolian government thanking for its war-time effort.
Mongolia remains one of the few countries of former communist bloc countries where historical monuments for Soviets soldiers remains untouched and respected dearly. It was Red army detachments that helped Mongolian nationalists to liberate the country from Chinese warlords and Russian White Guards in 1921. It was Red Army that beat back Japanese militarists that attempted to invade Mongolia in 1939 in Khalkhin-Gol.

Eternal Glory to the millions of fallen Red Army soldiers which crushed the Nazi Germany. We, Mongolians are proud that Mongolia contributed its share to the fight against the Evil. Congratulations to the Russian people and millions of war veterans on the occasions of the celebration of Great Patriotic War.

By Ganbat, editor of MonInfo News service

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Launching Cash for Work - A first-hand look at the 2010 dzud disaster

UNDP is supporting the Mongolian Government to respond to the 2009-2010 dzud, which has resulted in 7.5 million livestock deaths by May. With support from the UN Development Programme,the herders are now part of a Cash-for-Work project which provides them with immediate income to take care of their daily necessities of life, while also reducing health risks by burying carcasses and preventing water contamination. With technical assistance of the National Emergency Management Agency, herders are removing and burying up to two million livestock carcasses. This accounts for roughly 30 percent of all the animals that perished.

Mr. Akbar Usmani, UNDP Resident Representative a.i.

Mongol Messenger Editorin- Chief, Borkhondoin Indra interviewed
His Excellency, Akbar Usmani, UNDP Resident Representative a.i.

-MM: Mr. Usmani, you just returned from rural Mongolia to get au fait with conditions there. We all hear and read about the desperate situation for herders and their families. What can you say about your countryside trip?
-AU: I have just returned from Uvurkhangai Aimag after five days in field. I also visited Khovd Aimag three weeks ago. I have seen the conditions and realities on the ground, and the effects of the dzud crisis are indeed being felt greatly by the communities In many instances, I saw that a large segment of the herder population had lost most, if not all their animals.
-MM: Can you compare the situation between Khovd and Uvurkhangai aimags?
-AU: Uvurkhangai is the worst affected aimag with losses of 1.4 million livestock. We are working in three aimags, Khovd, Uvurkhangai and Dundgobi. I have visited two aimags so far, and next week we will visit Dundgobi Aimag to see the impact of the work we are doing in support of government initiatives. Cash-for-Work programme is reaching 60 percent of all herder households in these three aimags. Through this programme, herders will bury 2 million carcasses, out of the total 7 million resulting from the dzud. It’s quite a large program which we have embarked upon in support of the government initiative. In total, 20,000 herders are being targeted, of which over 10,000 are in Uvurkhangai Aimag alone.
-MM: 20,000 herders. How are you dividing between soums and aimags?
-AU: Out of 20,000 beneficiaries, 11,000 herders are in Uvurkhangai Aimag, 3600 are in Khovd Aimag and 5,300 herders are in Dundgobi Aimag.

-MM: Are the aimags you visited still under snow or melted?
-AU: Parts are still under snow. In fact, while we were there, there was a very strong snow storm, and it was very difficult to move between soums. In number of instances we got stuck in the snow while traveling. It was only by the excellent efforts of our NEMA colleagues and our drivers that we got out in time. Snow conditions in some areas are still pretty serious and there are still snow storms coming.
-MM: Is it still difficult for livestock to graze in pastures?
-AU: It is very difficult. Low rainfall in summer followed with severe winter left very little pastureland available. I am pleased to say that our Sustainable Land Management for Combating Desertification project is assisting herders to fence hayfields for better risk reduction. Due to this initiative, herder communities involved in the project suffered very few losses. We acknowledge this best practice and will expand this initiative.
-MM: How much money is involved in this program?
-AU: That’s a good question. For the three aimags that the government requested UNDP assistance, we have already mobilized US$1.8 million and still have a shortfall of US$700,000 and we will be appealing to the international community to support this program and fund this gap. The other aimags are covered by NEMA and the government itself. The purpose of our program is two-fold. As you know, dzud crisis had devastating effects on herders’ livelihoods. Our program is there to provide Tgs 100,000 per herder in these affected communities. We are targeting herders with less than 200 head of livestock, households headed by women and other vulnerable groups that fall below poverty line. The importance of the program is that once the snow starts to melt we don’t want these carcasses to enter into water streams and the drinking water supply and result in a huge catastrophe for Mongolia. It’s important that we collect these carcasses far from water sources and bury them properly, sanitize them and at the same time give herders some financial support, assistance to take care of their immediate needs and necessities of life, such as food, medicine, children’s clothing, and some heating materials, just to get them over this very difficult period.
-MM: How the money can reach the herders?
-AU: We are collaborating closely with the Government and NEMA, as well as aimag and soum governors. The Government and UNDP attach importance to transparency and equal participation in the cash-for-work programme. Soum government has announced a list of participants on the Governor’s office board. The way the program works is that a soum governor consults with the local population to provide the list of beneficiaries. Out of total 51 soums in three aimags, 22 soums were most affected so we appointed a coordinator to help the governor to compile this list and also will be monitoring the work throughout. That list is reviewed by Khan Bank, who is a partner in this program, being the only bank with branches in all soums, and will be making the payments. Further, the list is verified at the aimag level by NEMA, by the aimag governor’s office, as well as by our aimag coordinator. The moment all these stakeholders sign off on this list, UNDP will make the payment to Khan Bank within 24-48 hours for the money to be disbursed to the herders directly. It’s a fairly participatory process in which we tried to involve as many stakeholders as possible. Various mechanisms have been put in place to ensure adequate transparency, such as posting the list of all beneficiaries in the soum governor’s office. So in case somebody’s been missed, they can appeal to the soum governor, can address NEMA, and even talk to UNDP staff. We have launched a very wide media campaign via television and radio so that as many herders as possible are aware of this program and can benefit from it.
-MM: Has this program already started?
-AU: The program is well underway. In all 51 soums about 70 percent of the work is completed. We are just waiting for the final signatures on who has done the work and how much money is due to each of the herders
-MM: When are you expected to finish?
-AU: We were hoping to finish this program by mid-May. But because of the soil conditions we might have to extend it by a couple of weeks. We are very aware that this should be done as early as possible before the possibility of these carcasses entering the water system and to provide cash assistance to herders because they are very much in need of financial support at this time. For us, as soon as the completion lists are verified by the stakeholders, payment will immediately be made. The money is already in the bank so there should not be a problem.
-MM: How are you going to monitor the work?
-AU: The monitoring is done at various levels. It’s done at the soum level, aimag level as well as the UB level. One of the reasons for my mission was to see for myself how this monitoring is being done. I must say that I was extremely impressed
by the commitment and dedication of the teams on the ground. In particular, I would like to highlight the contribution of aimag governors, deputy governors, soum governors, Khan bank and UNDP colleagues and teams who are working very hard and diligently to ensure that as many people as possible are supported through this programme.
-MM: How many people are involved in this project?
-AU: Cash-for-Work programme is top priority for the UNDP office, so we have mobilized most of our team. Wherever we are working in aimags and soums, I have asked our colleagues to re-orient programs so we support the herders that have been affected by the dzud crisis. Around 100 people from UNDP are involved in support of this program. Additionally, we have the
local government offices. So it’s quite a sizable campaign. I would also like to highlight the excellent contribution made by Khan Bank as their branch managers are working closely with us to identify beneficiaries. In certain cases there are duplications of names, errors and they have been working hard to ensure the final list is correct and as comprehensive as possible.
-MM: What was the demeanor of the herders and their families, because the loss of livestock is a big tragedy for these people? Are they hopeful or in despair?
-AU: During our mission we met many herders, young families, elderly people women-headed households and etc. There is great deal of despair because of the financial losses they have sustained in this dzud. At the same time they are very hopeful and looking forward to the future. This is where the international community and the UN need to come together to support alternative livelihoods and other sources of income for these herders.
-I have had many discussions with different stakeholders, including aimag and soum governors to try and forge a program quickly to provide the herders with not only shortterm cash-for-work programme, but also address longer term needs. We are very conscious that people are suffering, in many cases losing their entire livestock. It’s not a very happy picture. However, in instances where we worked with herder communities through SLM project, the losses were significantly lower. This was due to innovative measures taking place including fencing of hayfields where herders are sending their animals to feed in winter. We learn from this practice and will expand the programme in 2010.
-MM: What do herders think about this program?
-AU: I spoke with many of them and they very much welcome this initiative. They see this is as something that can take care of the immediate needs of their families. Although Tgs 100,000 is a modest amount, herders can use these funds to stock up on flour and rice for three months’ consumption. While they have lost their main source of income, they are very much looking forward to this cash payment.

UNDP Resident Representative met with Mr. Bazarragchaa at his ger in Zuunbayan-Ulaan Soum
to discuss the work of burying carcasses
Zuun Hooloi herder group members receiving coats and warm gloves donated by students of
Setgemj high-school in Ulaanbaatar.
Herder families in Baruunbayan-Ulaan Soum feel both hope and despair, but managed
to survive the harsh winter due to a good hay yield in their fenced field.
Herders in Zuunbayan-Ulaan Soum organized groups of 12 to dig holes and
bury carcasses

Herders moving dead sheep for burial
A herder near Otor lost most of his livestock despite all his efforts. Now, carcasses of the perished livestock threaten health and the environment as springtime temperatures warm.

Source: The Mongol Messenger newspaper
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Some issues undecided for new railway

It has become necessary to develop a new railway for transporting mining products, extracted from strategic minerals deposits in Mongolia, to refineries. The challenges include which direction to build and how to finance the railroads in order to benefit
from exporting to outer markets. For this purpose, Parliament started discussing a draft parliamentary resolution on approving the State Policy for railroad transportation, initiated by the government. In the first phase, it is believed that products of large minerals deposits including coal, copper, wolfram, zinc and spar from Tavan Tolgoi coal deposit, Tsagaan Suvarga copper
deposit, Aduunchuluun, Chandgana, Talbulag and Khoot deposits will be transported, and the current volume of freight forwarding will be increased by 3.5 fold as a railroad of 1770 km in length is constructed from Tavan Tolgoi- Tsagaan Suvarga- Zuunbayan (400km), Sainshand-Baruun Urt (350km), Baruun Urt-Khoot (290km) and Khoot-Choibalsan (150km).
It is preliminarily estimated that on average, about 50 million tone of mining products will be exported annually from these deposits. This railway route is also believed to create the possibility to export mining products to Russia and other countries
by using Russia’s Far Eastern ports. Furthermore, it is planned to develop infrastructure and urban cites in Omnogobi, Dornogobi, Khentii, Dornod and Sukhbaatar aimags along the railroad. In the second stage, a railroad will be constructed from Nariinsukhait- Shiveehuren (45,5km), Ukhaa Khudag- Gashuunsukhait (267km), Khoot- Tamsagbulag-Nomrog (380km) and
Khoot-Bichigt (200km). Construction of railroads in this direction will enable the opening of a new border check-point with China and improve the capacity of the Sukhbaatar-Zamyn Uud direction. In the third stage, a draft parliamentary resolution stated to urgently plan the construction of a railroad in the western direction, in harmony with deposits to be exploited in the future, its natural formation, regional development policy and population settlement. MPs have different opinions on whether the railroad should have a narrow standard gauge or a wide one. Mongolia’s current 1800 km railway is a wide standard gauge (wider than 1520mm). Russia’s railway is also wide standard gauge while China’s is narrow (narrower than 1435mm).

Critical decisions are under consideration for rail transportation to strategic deposits
Due to differences in railway gauges, there will be a problem to transship wagons at border check-points. In the draft resolution worked out by the government, it planned a 1520 mm track for a new railway to be built. It is considered that wide gauge tracks are more significant for economy and national security. For instance, the distance for shipping mining products of Tavan Tolgoi and Oyu Tolgoi deposits through Mongolian territory will be lengthened and profits to remain from shipment in Mongolia will increase; a unified domestic network of railways will be established; a possibility will be created to export products of strategic deposits to many countries without being dependent on one market; there will be an opportunity to supply mining products to markets of other countries by bringing the flow of export, import and transit cargo over Russian and Chinese territory, and it is believed to be the basis of infrastructure and economy to develop the ‘Sainshand’ industrial complex.

In his response to questions by MPs, Road, Transport, Construction and Urban Development Minister Kh. Battulga said, “For landlocked Mongolia, sandwiched between two big states, a gate to world markets is a railway linking to Trans Siberia. It intends to have a gate to the coast through Trans Siberia. To achieve that, we need a railway that rolls on current wide standard gauge.” “We are dependent on China to import 70 percent of all food products. If we give mining products to them, we will be 100 percent dependent. If narrow standard railroad is constructed and minerals are directly exported to China, Mongolia will be unable to gain value-added profits. For this reason, we plan to establish a refinery in Sainshand and ship processed products through the Russian port and Tianjin port. On the other side, Mongolia imports its fuel from Russia. In case Oyu Tolgoi and Tavan Tolgoi deposits begin being exploited, consumption of fuel will increase. Currently, Mongolia’s fuel consumption equals USD 600 million. As a railway is established in the direction of Russia, the matters can be resolved as one,” said the Minister. A 1000km road of the first phase is intended to be constructed within two years. He explained that the Naushka- Ulaanbaatar railroad (410km) was constructed by hand within two years; therefore it is possible to construct because technique are more developed today. China increased its coal export tax by 40 percent and made a decision to not import coal starting from July, 2009. It makes us wary that they may not even receive coal after Mongolia builds a narrow-gauged railroad in the direction of China. Ulaanbaatar Railway’s Transport Department deputy chief Jigjidnyam said that if a railway with narrow standard gauge is constructed, there will be a need to rent locomotives and wagons from China and there is no difference in the expense from constructing a wide standard track in Mongolia and transshipping the cargo. For MPs who have a different opinions from the government proposal, they consider that a railway with a wide standard gauge is backward from world development and the establishment of narrow one is cheaper and has more load-bearing capacity, the transport tariff of China and Russia is much different, it will take much time to construct a long high-cost railway, and there is the probability to ban crude coal in the near future, and they suggest constructing a narrow one in combination. MP Su. Batbold also reminded that Russia’s Premier V. Putin put forward a request to help construct a narrow railway to the Japanese side during his visit to Japan. MP D. Enkhbat proposed that Mongolians need to construct the railroad themselves. “Why can’t we build it ourselves? In the 19th century, Mongolians constructed a railway with spuds and shovels. So it is incorrect to say “we cannot do it” in the 21st century. The two parties holding power say they will provide citizens with jobs. So, they can provide people with right paid jobs by building the railway.” Minister Kh. Battulga said that there is potential to construct the railway ourselves, that training is underway at the Railway Institute, and if this policy is adopted, there will be a possibility to create 3000-4000 jobs in this field. The new railroad will be under 100 percent state-ownership.
Source: The Mongol Messenger newspaper
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National companies unite to exploit Tavan Tolgoi “If government rejects the plan, we will never develop”


Mining operations for the Tavan Tolgoi deposit may be under the corporate management of over a thousand Mongolian companies
 Having considered that Mongolians themselves have the potential to exploit Tavan Tolgoi, a leading deposit in the world with its coal reserve; national companies founded ‘Mongolia 999’ LLC Initiators of this unification appealed Mongolians to join forces in order to be owners of this large deposit, whose reserve was preliminarily identified to be 6.4 billion tone, and pronounced the possibility of national companies to join by paying Tgs1 million regardless of their capability. Initiators named the company as ‘Mongolia 999’ by symbolizing an enrolment of 999 or more national companies in the company. In duration of 12 days until the day when unified national companies are to convene for the first time, 1,283 companies registered of which 1,206 companies deposited Tgs1 million in the account and affirmed their official enrolment. The number of companies interested in unification has exceeded the number that the initiators expected. The first meeting of the unified national companies, ‘Mongolia 999’ was held on May 6 and 7. The initiators consider that Mongolians have many years’ experience in coal extraction and have trained professionals. However, it is possible to import required techniques and technology and collaborate with foreign companies. ‘Mongolia 999’ intends to make its first investment with the Tgs1 million paid by each companies to raise money from international stock exchange.
“We Mongolians should manage this project which can feed Mongolia. However, it does not mean that Mongolians need to do everything. We will import techniques and technology and believe that a main manager and director should be a Mongolian company.
Government needs to allow this project and show its confidence in national companies. If it rejects the plan, we will never develop. It is the basic foundation for national companies to jointly manage a big project, develop, and become independent. If the private sector is not allowed to participate in big projects, development will never come,” said L. Ariunbold, head of the initiators’ working group and President of ‘Mongol Bazalt’ Group.One of the initiators, S. Odontuya, Sentosa Company Director, also noted that they request the State not to trouble their activity but create an environment for proper perations. Economists, Trade Unions, NGOs and politicians expressed their appraisals for nifications of national companies for cooperation of the big project. R. Sodkhuu, Mongolia’s Stock Exchange director said, “World history about the foundation of Stock Exchange, 500 years ago, was the same as today’s unification of Mongolian companies. I am happy that Mongolians, created a basis of Continued from page 1 development based on our confidence and money, and not with a bank loan.” He wished the company to become a capable national company to raise much money with no less than 27 foreign companies which raise capital at world stock exchanges with Mongolian wealth. S.Ganbaatar President of the Confederation of Mongolian Trade Unions said, “It has been a big progress that the government declared Tavan Tolgoi to be 100 percent state-owned. State property actually means that it is the property of the people. The State is an organization to make fruitful deals with people’s property.” Ts. Nyamsambuu, head of the Mongolian Employers’ Association said, “It is the first ever event that Mongolia’s employers and proprietors unified with their spirit. Their unification proves they have gained strength.”
Mongolian Employers’ Association reviewed that Mongolia’s Government made an intelligent decision to urgently resolve the issue of putting a main part of the Tavan Tolgoi coal deposit into economic circulation, and the Prime Minister’s appeal for national companies to participate in this process has been an important event which inspired national businessmen. Later in April, government deliberated drafts of bid documents to select an investor for the Tavan Tolgoi deposit and a draft investment agreement is to be built with the selected investor and decided to submit for Parliament’s consideration after introducing to the National Security Council. The investment agreement will be established in three parts; Tavan Tolgoi deposit’s mining license holder and State-owned company ‘Erdenes-MGL’, an investor company (consortium) to be selected from the tender, and the Government of Mongolia. Currently, Vale (Brazil), Extrata (Switzerland-Australia), a consortium of Peabody Energy (USA) and Shenhua Energy (China), Gindal Steel and Power (India), a consortium of Japanese companies led by Itochu, a consortium of 11 South Korean companies, Mitsui & Co (Japan), Erdos Chinglon Coal (China), and Russian Railway (Russia) and others have introduced their proposals to the working group. Government intends to receive an advance payment of USD1 to 1.5 billion from the investor. source : "The Mongol Messenger" newspaper
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Mongolia board members of Oyu ToIgoi appointed

The State Property Committee appointed Wednesday a representation of the Mongolian side in the Steering Board of Ouy Tolgoi LLC.
Former President of Mongolia N.Bagabandi, an advisor to the current President P.Tsagaan and Head of the Directing Council of the Xas Bank Ch.Ganbold have been appointed the members of the Steering Board to represent Mongolia.

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Government recommends revoking Enjunmen’s license

The Government meeting yesterday recommended the revocation of the license of Enjunmen, a company that mines fluorspar in Airag soum of Dornogobi aimag. Two weeks ago a Mongolian citizen was run over by a car at the mine site after scuffles between mine workers and artisanal miners who worked nearby. Ya.Sodbaatar, head of the State Inspection Agency (SIA), reported that Enjunmen had last year been found to have violated rules and regulations in several areas. It was ordered to halt operations on July 1, 2009 but continued mining, without rectifying the infringements.

SIA found the company had not submitted a report of its operations in 2009, or its operation plan for 2010. It also used explosive materials without proper permit, and did not follow safety guidelines. No plan of environmental restoration was in place. The borders of the mining area were not demarcated, and explosive material was stored in an unregulated way. The company could not show any employment contract with its workers, and three of the five Chinese citizens at the mining site did not have proper work permits. It also transported minerals without proper contracts

source: http://www.news.mn
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Prosecutor General resigns

State Prosecutor General M.Altankhuyag has submitted his letter of resignation on health reasons. This was not unexpected as the reputation of Mongolian law enforcing organizations suffered in the aftermath of the July 1 incidents and ever since he assumed office, President Elbegdorj has been nudging Altankhuyag to go. He made the suggestion in his speech at the opening of the Spring session of Parliament also. Altankhuyag has one year left of his six-year term. The Prosecutor General is appointed by the President and takes office after Parliament’s approval.

Now that he has submitted his resignation, interest shifts to the choice of a successor. Had this been a year ago, the front runners would have been D.Dorligjav, now Head of the President’s Office, and B.Delgermaa of the Democratic Party. Both studied law and have all the qualifications for the job. Mrs. Delgermaa is known for her commitment to judicial reform and protection of human rights. They are still contenders, but now face challenge from A.Gansukh, Deputy Minister of Transport. He, too, was trained in law and defended Ts.Sukhbaatar when he was charged with taking bribe from people selected to go to South Korea for work.

He is also married to the sister of the wife of Prime Minister S.Batbold. Some politicians are behind him, but it is difficult to say if their support stems from their appreciation of his legal acumen or from his family links to the Prime Minister. Not that there is any guarantee, in present-day Mongolia, that someone apart from these three will not be the final choice, from some other family network or because of what is known as connections.
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FACTBOX-Key political risks to watch in Mongolia

By David Stanway

BEIJING, May 3 - Landlocked Mongolia sits on vast quantities of untapped mineral wealth and analysts say it could be one of the fastest growing economies of the next decade, as well as a key investment target for global mining giants.

The $5 billion Oyu Tolgoi project, jointly owned by Ivanhoe Mines and the Mongolian government, will be the world's biggest copper mine outside Chile once full operation starts in 2013. Plans are also under way to develop the Tavan Tolgoi coking coal mine, the world's biggest untapped deposit of its kind.

But foreign companies and investors are watching to see whether the country's fledgling democratic government can build the infrastructure required, maintain stability, improve the rule of law and -- most crucially -- negotiate its way through the geopolitical pressures exerted by its two massive neighbours, Russia in the north and China in the south.

Following is a summary of key Mongolia risks to watch:

POLITICAL INSTABILITY

The capricious nature of Mongolia's democratic government can complicate foreign investment projects -- the five-year negotiations on the Oyu Tolgoi property were conducted against a backdrop of damaging political and legal uncertainties, including local ownership requirements and a windfall tax on mining profits that wasn't cancelled until last year.

The frequent replacement of key personnel at the top levels of Mongolia's government has also caused concern, with the changes often accompanied by nationalist rhetoric and populist promises to secure more control over the country's assets.

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

What to watch:

-- How will the government handle populist pressures to maintain greater control over the country's strategic assets?

-- How will Mongolia use the proceeds from its mining projects? It has set up education and fiscal stabilisation funds, but it has also promised direct dividends for Mongolian citizens.

-- How will it deal with rapid economic change as foreign investment transforms large parts of the country's mainly rural economy? Investment in the Oyu Tolgoi copper deposit alone stands at roughly the equivalent of the country's entire GDP of 2009.

DEPENDENCE ON CHINA, RUSSIA

The precarious nature of Mongolia's independence was illustrated in 2002 when the exiled Tibetan spiritual leader, the Dalai Lama, was invited to Ulan Bator. Beijing opposed the visit of the man they regard as a separatist and shut down the country's only rail link for two days, stranding 500 passengers.

The People's Republic of China officially relinquished its claims to Mongolia in 1950, but there remains a deep suspicion among Mongolian people that Beijing seeks to reclaim the territory it lost after the collapse of the Qing dynasty in 1911.

China already dominates Mongolia's economy, buying more than 70 percent of the country's exports last year. Some Mongolians fear China's bulging population will increasingly lead to immigration into Mongolia for work -- especially if Chinese firms take over the bulk of its mining sector.

Russia has also been exerting pressure on its former satellite, especially over uranium. Canadian miner Khan Resources has accused Moscow of working behind the scenes to force it out of a deposit in the northeast.

The problem of competing influences even complicates transport infrastructure, with the location, direction and gauge of planned rail projects subject to geopolitical wrangling.

What to watch:

-- The growing dominance of China in Mongolia's economy has prompted many of Mongolia's elite to lean further towards Russia, but China is unlikely to step aside, and will also have much to say on where and how Mongolia builds its roads and railways.

-- China is set to enter the battle for uranium resources with a bid by state nuclear firm CNNC for Khan Resources expected to be approved by the government within weeks. Will it use its clout to block Russia's plans? And how will Moscow respond?

BALANCING "THIRD NEIGHBOURS"

Mongolia has sought to carefully balance the interests of China and Russia, and to press ahead with its "third neighbour" policy aimed at courting allies like the United States, but analysts say no nation has the clout to underwrite Mongolia's independence or undermine Russia or China's influence.

While the country hopes to develop its resources as quickly as possible, many of its bigger projects have been stymied by geopolitical concerns.

The Tavan Tolgoi coal mine attracted the interest of consortia in Japan, South Korea, China and Russia as well as global mining giants Rio Tinto and Peabody , but Mongolia eventually decided to cancel an auction for the property -- a move some thought was partly motivated by a desire not to offend any of the powerful bidders.

What to watch:

-- Will Mongolia's efforts to bring in overseas investment be derailed by the pressures being exerted by Russia and China?

-- Will the Tavan Tolgoi model of maintaining state control of state assets be used in other key "strategic resource" projects, or will Mongolia be forced to sell properties outright in order to kickstart economic growth?


Source:Reuters news service
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Mongolia may decide soon on uranium joint venture with Russia

The government of Mongolia could soon decide on establishing a joint venture with Russia to develop a Mongolian uranium deposit, the head of the Russian civilian nuclear power corporation, Rosatom, said on Tuesday.

At a meeting with Russian Prime Minister Vladimir Putin in the Black Sea resort of Sochi, Sergei Kiriyenko said that Russia had signed an intergovernmental deal on the uranium joint venture early in 2009 but the project stalled due to the change of government in Mongolia.

"Already after the election, we signed an agreement with the new government and in January signed a specific protocol. The government of Mongolia has made a decision on the Dornod-uranium deposit. This deposit is in the ownership of the government of Mongolia," Sergei Kiriyenko said.

Kiriyenko said that Russia had transferred all the constituent documents on the joint venture to the Mongolian side and the secretary of the Mongolian Security Council confirmed to Rosatom that a final decision on contributing the deposit to the joint venture would be made soon.

Kiriyenko said work on the deposit could be launched quickly as the deposit was located 300 km (186 miles) from Russia's neighboring Chita Region where a mining enterprise was situated and whose specialists and equipment could be used in the uranium deposit development.

Rosatom increased production of uranium by 25% in 2009 and has set the task of increasing uranium output by at least 11% in 2010, Kiriyenko said.

SOCHI, May 4

Source:RIA Novosti
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Thousands of Local Businesses Unite to Work at Tavan Tolgoi

More than a thousand local Mongolian businesses have joined Mongol 999, a national consortium established last week in a hope to win Tavan Tolgoi coal mine project, opposed to currently aligned world coal mining giants that includes Peabody.

“Charity begins at home”, as the popular saying goes in Mongolian language, we should be helping Mongolians first, rather than helping foreigners to raise capital at the global stock markets by pledging our mineral wealth, local press have voiced their support by making the news centerpiece stories. “We [Mongolia] can do whatever other nations do. We will develop the project, and all earnings will remain in Mongolia,” told L.Ariunbold, Director General of Mongol Bazaltwool LLC, who initiated the project, which is widely applauded by public.

Any business wants to join the consortium is required to “contribute” a minimum of MNT1 million to the consortium, which hopes to fulfill the government’s initial requirement of getting US$0.5-2.0 billion in advance from a winner.

The Parliament ordered the government last month to submit draft investment agreement to be signed with potential investor and speed up the launch of the project within this year.

The government is trying to secure as much participation of local Mongolian companies as possible in the development of the project and to make more value added products rather than exporting unprocessed minerals abroad.

Current interested parties are as following:
• A consortium of Vale (Brazil), Jindal Steal and Power (India), and eleven other South Korean companies
• A consortium of Bazovoy Element (Russia) and Renovo (Russia)
• A consortium of Peabody Energy (USA) and Shenhua Energy (China)
• A consortium of Mitsiu (Japan), Itochu (Japan), Marubeni (Japan), and Sumitomo (Japan)
• Xstrata (Switzerland-Australia)
• Russian Railway (Russia)
• Erdos Chinglon Coal (China)
source: http://ubpost.mongolnews.mn
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