Mongolian resources lure world

Japan is making a concerted effort to strengthen its relationship with Mongolia, one of the world's richest stores of minerals.

At summit talks held Friday (November 19), Japanese Prime Minister Naoto Kan and Mongolian President Tsakhia Elbegdorj agreed to begin negotiations as soon as possible to conclude a bilateral economic partnership agreement and accelerate joint development of uranium and rare earths.

However, China and other leading resource developers are also paying close attention to Mongolia, threatening Japan's hopes to take advantage of the abundant reserves in the central Asian nation.

Mongolia is known to have vast undeveloped resources. It is thought to possess the world's largest unproven uranium reserve, as well as high-quality coal and rare earths deposits, but most remain untouched.

Mongolia's past communist regime not only delayed development of its railway and road infrastructure, it did not allow foreign companies to develop the country's natural resources. The country was democratised in the 1990s.

As a result, there have not even been surveys of the mineral resources in 70 per cent of the nation's land, according to a leading Japanese trading company.

Elbegdorj told reporters before the summit meeting that he was willing to develop rare earths and coal with Japan from the exploration stage and that he hoped Japan would actively invest in the development of mineral resources in his country.

Four leading Japanese trading companies--Itochu Corp., Sumitomo Corp., Marubeni Corp. and Sojitz Corp.--are planning to jointly participate in international bidding for the Tavan Tolgoi coalfield. With an estimated reserve of more than 6 billion tons, it is one of the largest in the world.

The bidding will be held this year.

Last year, Mitsubishi Corp. began exploration of a uranium mine with the French nuclear power group Areva.

Japan Oil, Gas and Metals National Corporation (JOGMEC) reached an agreement in July with the Mongolian government to jointly explore deposits of rare metals.

China biggest rival

Nearly 10 companies, including China's major coal firm Shenghua Group Corp., British-Australian BHP Billion and Brazil's Vale, are expected to bid for the development of the Tavan Tolgoi coalfield.

But the group of Japanese trading firms believes Elbegdorj's stance of treating Japan as "the third-closest nation to Mongolia" will be a tailwind for it in the upcoming bidding.

The Mongolian government's affinity for Japan comes from wariness of China's military buildup, as Mongolia is sandwiched by China and Russia.

The country also appears to be grateful to Japan for supporting Mongolia financially during the economic turmoil that ensued after the fall of the former Soviet Union.

At the same time, the Mongolian government is seeking Japan's cooperation to develop its railways, roads and industrial complex.

However, if Japan's rival countries propose better deals on infrastructure, it is "still possible the Japanese trading firms will be tripped up," according to a source close to the trading companies.

China seems to be an especially strong rival for Japan, as the country is cash-rich and has strong purchasing power. Taking advantage of its geographical location next to Mongolia, China will also be able to expand its profit margin by cutting the cost of transporting mined resources.

source:http://www.asianewsnet.net

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Centerra shares drop on concern over Mongolia

By Julie Gordon

TORONTO (Reuters) - Shares of Centerra Gold fell nearly 7 percent on Thursday on concern about political risk in Mongolia even as the company said its Gatsuurt project was not on the Asian country's list of licenses to be revoked.

This week, Mongolia's cabinet announced a plan to start pulling mining licenses under the Water and Forest Law, beginning with 254 alluvial gold-mining licenses.

Toronto-based Centerra has four licenses on the list, but it said none of them are material to the company.

The company had previously received notice that Mongolia could revoke its Gatsuurt license under the legislation and was asked to provide the government with a compensation estimate.

"I think there's a lot of risk there that (Gatsuurt) might get taken over," said Salman Partners analyst David West, adding that shares were falling on investor concern about such a possibility.

The Gatsuurt project is located some 35 km (21.7 miles) from Centerra's Boroo mine, its main Mongolian property, and has 1.2 million ounces of indicated gold resources.

BAD FOR BOROO

Centerra said Boroo was exempt from the law, as it is a "mineral deposit of strategic importance."

Regulatory issues have hampered the project since June 2009, but the mine produced 27,551 ounces of gold in the third quarter of 2010.

A heap leach facility at the site, which uses cyanide to extract gold from crushed ore, has been shut down since April 2009 pending a final operating permit.

"As far as Boroo moving forward, that kind of depends on Gatsuurt," said West. "If Gatsuurt does not get permitted, then really, at that point, Mongolia is nonexistent for Centerra."

In July 2009, the Mongolian Parliament enacted legislation that would prohibit mineral prospecting, exploration and mining in water basins and forest areas, and provided for the revocation of licenses affecting such areas.

Canada's Khan Resources has been caught in an eight-month-long legal dispute with Mongolia's Nuclear Energy Agency (NEA) over exploration at Mongolia's largest uranium deposit.

Shares of the Toronto-based miner were down as much as 6.8 percent at C$16.11 on Thursday, before recovering slightly to C$16.48 by midday on the Toronto Stock Exchange.

($1=$1.02 Canadian)

(Additional reporting by Isheeta Sanghi in Bangalore; Editing by Frank McGurty)

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Working group to set up for UB traffic management

A Workshop on the topic ‘Traffic Management in European cities’ was co-organized by Integrated Urban Development Program which is financed by the Government of Germany and implemented by the Ministry of Roads, Transport, Construction and Urban Development, Ulaanbaatar City Government and GTZ. In this particular case, the UB Traffic Control Center was the organizing body. All organizations in relevance to Ulaanbaatar City’s road and transportation sector participated in the event.

Mr. Manfred Wacker, an expert of the Transportation Planning and Traffic Engineering Department at the University of Stuttgart assessed operations of UB Traffic Control Center of Ulaanbaatar during his one-week stay in Ulaanbaatar. His assessment indicated that thanks to establishment of UB Traffic Control Center, traffic congestion has decreased respectively and average driving speed increased as compared with the same period of previous year.

“There is a formula that improved techniques and technology improve the traffic situation by 30 percent. For this reason, it is ineffective to spend money on technique and technology only. It is vital to conduct right management and introduce service oriented public transport. It should be assessed whether Ulaanbaatar has sufficient road capacity in relation to existing traffic. Current traffic jams will be reduced once parking management is developed and private parking is established. Moreover, it will be effective if a Working Group comprising representatives from related organizations is set up and works as an integrated team,” Mr. Manfred Wacker accentuated in his recommendation.

Ulaanbaatar City’s Manager Ch. Bat who attended the workshop said, “Mr. Manfred Wacker gave us valuable advice that made us comprehend much although he made an assessment on UB’s traffic situation in a very short period. Traffic issues are so wideranging and it is not so easy to solve the problems after one discussion. There is an idiom “it is better to see once than hear a hundred times”. In view of that, we have a request for GTZ to let our relevant specialists get familiar with the place. Traffic Control Center is not belonging to traffic police only. All organizations concerned about roads need to communicate and cooperate actively for a new work.”

“During today’s event, we have shared European best traffic practices and their achievements. Also we aimed at discussing what ways are there to improve traffic movement,issuing first recommendations and giving an assessment through the eye of a foreigner. All organizations responsible for Ulaanbaatar’s streets have participated in this event and made an initial step to focus on this issue and discuss it. Traffic issues definitely come up while discussing about comprehensive municipal development. It is satisfying that UB City Manager Ch. Bat accepted and encouraged a proposal of a German expert on setting up a Working Group responsible for traffic management in Ulaanbaatar. We will take part as advisors at professional level to support the Working Group and invite specialists for short term,” said Ms. Ruth Erlbeck, head of GTZ’s Integrated Urban Development Program.  

Mr. Manfred Wacker, an expert of Transportation Planning and  Traffic Engineering Department at the University of Stuttgart: It is difficult to carry out traffic management when urban planning goes wrong.

-German cities are well-known in the world with their traffic management. What should we do as you noticed?

-There are obstacles which might constrain the work of the Traffic Control Center. The Center’s activities have just starting while urban construction has been running intensively in recent years. It is difficult to coordinate it in the city that has already built its image. Traffic management is problematic to be carried out when urban planning goes wrong. An establishment of a new center to regulate traffic has been the right measure. I noticed that current Ulaanbaatar has much traffic load. The most important thing is that all participants in traffic movement such as drivers, pedestrians, public transportation and traffic coordinators collaborate to solve this predicament.

I am so delighted that my ideas have been instantly accepted and initiatives have been raised to take action. Citizens of the country themselves need to deliberate about it and find solutions in accord with features of the country. It is impossible to resolve traffic problems straight away. It is essential to spend time on it and enduringly work with definite objectives and guideline. 

L. Battsooj, Head of UB Traffic Control Center: Traffic management is not only a task of the traffic police and the control center.

-How do you evaluate today’s workshop? Could you get information and achieve goals?

-As we are implementing this system for the first time, we lack of experience. Thus, we require experiences sharing with developed countries getting advices from specialists. When we met with the staff of GTZ and put our request forward, they made a decision promptly and invited a specialist. The activities of the UB Traffic Control Center were introduced to the specialist. We heard about practices in European cities. It is not just a work for the traffic police and the control center. Responsible bodies for transportation and roads should collaborate, exchange views and issue resolutions. Representatives from all organizations who participated in the workshop might have grasped the mission. Therefore, I believe that the workshop has achieved its goal and has been fruitful.

-It is said that traffic speed in Ulaanbaatar increased and traffic congestion declined against 2009 as a result of founding Traffic Control Center. How real is it?

-Coordination of traffic movement improved. The control center directly instructs the traffic staff on duty, organizes traffic management fast and manages accidents and congestions within short term. It is a proof of improvement. Thanks to it, capacity of road network upgraded and driving speed of automobiles increased by definite level. Both pedestrians and drivers can enjoy or destroy its fruitfulness. For this reason, participants of traffic management need to follow traffic rules. It is very important for a civil society. We intend to educate people respectively. We are going to place traffic regulation boards and sign posts.

-Modernization of public transportation such as many types of buses and metro was touched upon during the workshop. Which is most appropriate for our country?

-I cannot tell which one of them is suitable. It will be clear as a result of comprehensive research works. Citizens prefer having private automobiles due to backwardness of public transportation. If public transportation means are clean, comfortable, safe, fast and capable, citizens do not need to ride their cars to

go to work. The public transportation system has to be modernized.

source: 'The Mongol Messenger' newspaper

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Mongolians gather in South Korea

B.Ooluun

‘Undesnii shuudan’ (the National Post) newspaper in its November 9, 2010 issue published an article about a gathering that took place in the South Korean city of Kwanju to commemorate the 49th day of the death of a Mongolian girl named Gantsetseg who, whilst defending her girl-friend, was brutally killed by her friend’s Korean husband. It is believed that this example will be significant for both the Mongolians and Koreans.

According to the article, the gathering had been organized by the Union of Mongolian Students from Jolla Province, the Mongolian Women’s Union in Naju, and was attended by more than 70 people, including: Mongolian’s studying there; Mongolian women married to Koreans; teachers and students from the Jonnam University. The move has really been appreciated by these Mongolians living in an alien country who see it as a demonstration of the courage needed to organize such a large gathering in memory of a Mongolian girl who courageously fought in her friend’s defense.

“Have there been any other cases of Mongolians displaying such courage to save one another’s lives under similar circumstances?” one would like to ask.

Organized by Mongolians living and studying in Korea, this gathering was held according to Korean rules and regulations and was supported and respected by the people of that country; as was evidenced by the police’s permission and protection, and by attendance and prayers offered by Kwanju Jonnam Religious Society

monks.

A detailed statement about the Late Gantsetseg’s case was broadcast to the public by cars equipped with loud-speakers, as well as by newsletters and information being prepared for distribution to those gathered, showing that this action was undertaken for a special purpose. It could be said that, in addition to this, the Mongolians have demonstrated their ability to be wellorganized and politically correct. It is public knowledge that the reputation of Mongolians working and living in that country for more than ten years has not been so good.

The gathering dispersed with Gantsetseg’s sister, five representatives from the Mongolian Student’s Union in Jolla Province and the Mongolian Women’s Union in Naju handing to Kwanju city’s Supreme Court a “Statement demanding that Korean society respect the rights of foreign women,” together with the red ribbons

the participants had been carrying.

News of this demonstration was broadcast nationwide on Korea’s MBC and KBS channels and published by the local press; it has been reminder to Korean society not to allow such regrettable misfortunes to occur again; to respect foreign citizens’ rights,and to improve the general public’s consciousness and respect in regard to foreigners in their country. “This was the commemorative gathering’s purpose,” the publication points out.

The action’s aims were: firstly, to remember the Late Gantsetseg’s on the 49th day of her death; secondly, to guarantee the human rights of foreign girls married to Koreans; and, thirdly, to improve Korean society’s consciousness in regard to foreign girls and women. Participants in the gathering also urged Kwanju city’s Supreme Court to resolve Gantsetseg’s case in a just and fair manner. They also demanded respect for the human and civil rights of foreign girls married to Koreans; their rights to live happily with regard to their culture and language.

The publication stresses that this gathering in respect of Gantsetseg’s death has succeeded in: getting Koreans to understand and respect the rights of Mongolian girls who are Korean citizens’ wives; drawing Korean society’s attention to this problem; and has also encouraged Mongolians to be closer together in this foreign country.

The story of Gantsetseg, who had lived and worked in her native country but had met and fallen in love with a Korean man and was happy with her life, will remain in the minds of thousands of Mongolian girls living with foreigners in foreign countries.

In Mongolian society’s hearts Be Gantsetseg’s life was valuable and we wish to hear from the Mongolian State in regard to this girl whose life was lost defending a fellow Mongolian in an alien country”, the article points out.

source: The Mongol Messenger newspaper

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First trial held for Mongolia’s security chief

B. Ooluun

On November 15, the first regular primary court trial was held in the Magistrate Court of Westminster, London for the arrest of B. Khurts, Chief of the Office of the National Security Council of Mongolia.

On September 17, B. Khurts was arrested by detectives of a British legal organization armed with an international warrant for his arrest when he stepped off an Aeroflot flight into Heathrow Airport to meet with British national security officials. It was explained that he is being accused of conducting illegal executive works by abducting a person from France through territories of Belgium and Germany in 2003. The British side detained him according to a 2006 request by the German side to detain B. Khurts if he travels through any EU countries and expedite him to German legal authorities. 

Mongolia’s attorney Alan Jones provided evidences of witnesses and made explanations based on international law in order not to extradite B. Khurts to the German side. As the chief of the judges said, it is necessary to consider the grounds in detail, the next trial is scheduled for January 5, 2011, reported the Public Relations Office of the Foreign Affairs Ministry. D. Tsogtbaatar, State Secretary of Foreign Affairs Ministry, G. Bayasgalan, State Secretary of Justice and Internal Affairs Ministry, Ts. Bolor, Special Duty Ambassador, B. Altangerel, Mongolia’s Ambassador to UK, and N. Bataa, Consul and advisor to the Embassy, attended the trial. Also two legal advisors from the British Foreign Affairs and Commonwealth Ministry were

present at the trial.

Information about the trial is the focus of Mongolia’s media. Daily newspapers report the  issues of B. Khurts and the process of his trial. 

Undesnii Shuudan and Onoodor dailies interviewed deputy Foreign Minister B. Bolor about the trial.
B. Bolor, who heads the Working Group set up by the government for B. Khurts’s issue said, “There has not been any decision at the primary stage of court to expedite B. Khurts to the German side. 

Also, judges adjourned the trial as they accepted the grounds we submitted. Therefore, I think this trial did have not bad result.” During the trial, the Mongolian side spoke that B. Khurts arrived in the UK for an official visit; therefore, he is entitled to diplomatic immunity and requested to accurately scrutinize whether B. Khurts’ arrest is meeting with international law approved by the UN.
Recently the Government of Mongolia made an official apology to France and Germany on the matter of making a mistake while conducting activity in their territories. The French side accepted Mongolia’s request and dismissed this case, but Germany did not give a reply. The Mongolian side frequently offers B. Khurts’ bail, but with no positive answer.

source: 'The Mongol Messenger'newspaper

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Mining conference raises legal concerns

Conference participants call for the revision of Mongolia’s mineral laws

On November 15, a conference on ‘The Minerals Law of Mongolia: Development and Tendency’ was held in cooperation with the Mongolian National Mining Association and Legal Environment of Mining Research Fund. Funded by World Bank, the conference, Initiated by the Office of the President of Mongolia,was held at Chinggis Khaan Hotel.

Over 200 participants, representing the Office of the President, Parliament Government, Ministries, agencies, provincial administration, as well as NGO’s, citizens’ movements, company, and researchers attended the conference and shared their views on the current state of the mining sector in Mongolia.

During the conference, many of the spokesmen and participants stressed the importance of revising the current Minerals Law of Mongolia, making it a complex set of Laws which covers ownership issues, geological and mining processes, environmental preservation, and stakeholder’s settlement issues.

Following development of the minerals sector, the legal environment for mining is an emergent sector as well. Thus, a number of participants emphasized the need for the establishment of an independent court designed to supervise the mining sector in Mongolia.

source: 'The Mongol Messenger' newspaper

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Centerra Says Mongolia Planning to Revoke Four of its Gold Mining Permits

Centerra Gold Inc., a Canadian producer of the metal, may lose four gold mining licenses in Mongolia as the nation’s government plans to revoke permits on environmental concerns.

The permits are “not material to the company” and its principle Gatsuurt field is not on the list of the 254 alluvial gold mining licenses Mongolia will cull, Toronto-based Centerra said late yesterday in a Marketwire statement. The stock closed down 7.3 percent. It has gained 49 percent in Toronto trading since the beginning of the year.

Mongolia has decided to suspend the activities of 1,782 license holders in wooded and river basin areas in line with a 2009 Water and Forest Law, the nation’s news.mn news portal reported late yesterday, citing Mineral Resources Minister Dashdorj Zorigt. Gold, tin, and iron ore license holders may be affected and their names will be announced in the media, it said.

Mongolia, which has about 4,000 mining license holders, will assess compensation claims based on taxes, expenses incurred, environmental costs and income from the mining operations, the news portal reported. The largest mines are in Bayangol, near the Tumurt, and in Narantolgoi, near Gatsuurt in Selenge Aimag, news.mn said.

Centerra said it continues to talk with the Mongolian government to resolve uncertainty over the implementation of the Water and Forest Law and to get the approval for the commissioning of its Gatsuurt hardrock project. Its main Boroo mine permits are not subject to the law, Centerra said.

Centerra was spun off from Cameco Corp., the world’s second-biggest uranium producer, in June 2004.

To contact the reporter on this story: Yuriy Humber in Moscow at yhumber@bloomberg.net

To contact the editor responsible for this story: Andrew Hobbs at ahobbs4@bloomberg.net
source: http://www.bloomberg.com

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Mongolia Revokes Mining Licenses

Nov. 20 -The Mongolian government dropped a bombshell on the international mining industry by suspending 254 gold mining licenses on Friday.

The Ministry of Minerals and Energy revoked the licenses citing “environmental concerns,” and hinted that others licenses may also follow. The government is providing compensation to investors affected.

The licenses are being revoked under a 2009 law which protects Mongolia’s forests and river basins. Mongolians consider the ground sacred and are reluctant to dig, fearing it may upset the balance of nature. Living close to nature also, as many Mongolians do, means they have an in-built awareness of the environment and are highly sensitive to damaging or polluting the land. Proposed golf courses for example, a lucrative form of investment in nearby China are banned in Mongolia due to concerns over the use of fertilizers and weed killers.

The license issue may have serious repercussions if it spreads beyond gold. Several international mining companies have recently established operations in Mongolia and have gone on to IPOs in Hong Kong and Canada. The government says it will release a full list of companies affected early next week. Analysts warn of the dangers of investing too much in emerging countries such as Mongolia due to the dangers of government U-turns over investment policies.

This is not the first time the government has banned mining companies. Following a deal in which a five year, 100 percent tax break was agreed with one of the large international mining companies for the extraction of coal, the Mongolian government were not amused when a project expected to last for 20 years and produce tax revenues for 15 of them was fully completed in less than five years, leaving the government with an empty mine and no income. International mining companies have not always behaved well in Mongolia, and this, coupled with an emerging regulatory environment, has lead to stresses

source: http://www.2point6billion.com

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Development Bank to fund major investments

Development bank funding could accelerate development

On November 12, Parliament discussed a Bill on Centralized State Budget for 2011 that was redrafted by the government after being returned for essential amendment. In the redrafted Bill, total revenues of the centralized budget was estimated to be Tgs 3,284,300,000,000, expenditures to be Tgs3,955,000,000,000 and the total budget loss to be Tgs670.7 billion or equating to GDP’s 8.6 percent. In other words, the total revenue estimated in the amended Bill increased by Tgs227.3 billion and expenditures by Tgs705 billion from the previous Bill, causing the total loss standing at 2.5 percent to reach 8.6 percent. To a question by a MP who was interested in how the budget revenue increased, Finance Minister S. Bayartsogt answered, “When we first submitted the budget bill, the report of third quarter had not yet been released. A recently issued report showed positive indications.

Value-added tax is raised for customs and imported goods because a huge volume of imported goods is received at Oyu Tolgoi, Tavan Tolgoi, MAK and Khoshoot mines. It will bring an additional Tgs70.8 billion to the State budget. Also, Tgs100 billion will come to the budget from debt collections from businesses. That’s why, Olon Ovoot deposit’s license is now kept at court in connection with the insolvency of Anod and Zoos banks.

The license will be immediately sold after the issue is resolved.” Concurrently, gold price per tonne was estimated to be USD 1350 per tonne, raisen by USD100 while drawing up the budget and it was calculated to accumulate Tgs8.8 billion from gold export, Tgs12 billion from dividends of State-run enterprises,

Tgs7.9 billion from income duties imposed on micro mines and private businesses, Tgs70.5 billion from VAT on customs and imported goods, Tgs23.4 billion coming under an evaluation made by National Auditing Office, Tg3.9 billion from an increase of budgetary organizations’ income, and there was potential to add a total  of Tgs227.3 billion to the budget.
Earlier, many MPs held the position that investment expenditures need to be raised. It was included in the amended Bill. In the previous Bill, the volume of budgetary investment was stated to be Tgs76.1 billion, but it increased by Tgs456.1 billion in the amended Bill, reaching total investment to Tgs532.2 billion. Inside, the previous Bill included Tgs560 million, on average, to every aimag for investment. However, it raised to Tgs800 million. Tgs20 billion that was budgeted for Ulaanbaatar increased to Tgs68 billion.
MPs consider that the increase of investment is good; however, it is not sufficient and investment should be funded through establishment of the Development Bank. That’s why, if investments are funded by the State budget, the budget loss compared to GDP will go beyond 100 percent. If the investment is funded through the Development Bank under government’s guarantee, it will be possible to handle this issue without increasing the budget loss and not making much change in inflation policy. This matter has been deliberated at the meeting of the DP group in Parliament. “If approximately Tgs600-650 billion is annually invested by the budget, development will go at the speed of a turtle. Also, Tgs650 billion is not enough for all the required investments. Therefore, major construction that can be fruitful after 20-30 years may be resolved if the funding comes through the Development Bank,” said Ch. Saikhanbileg, MP and head of DP group in Parliament. 

DP group considers that as Mongolia has a sparse population density, it will be unsuitable for sectors, especially the infrastructure sector if the Development Bank implements a commercial-purpose program. It needs to form a special legal environment for the Development Bank because its mechanism of making decisions and supervision should be regulated differently due to its operational features.
According to the government, the Development Bank may be funded with domestic and foreign bonds, advance payment to come from major mining projects and agreements and the Mongol Bank’s reserve of roughly USD1.8 billion. Members of MPP Group in Parliament also believe that funding investments with the State budget alone cannot move at the speed of development and that it’s necessary to exploit other sources.
The “Year of 2011 is a most responsible year in connection with implementation of the manifesto of the 2008 election and also the 2011 Budget has to be a Budget for Mongolia’s Development. Members of MPP Group talked about issues regarding to an increase of salary, pensions and allowances. They are critical that it is not effective, although salaries and pensions were raised by 30 percent on October 1, 2010. Therefore, they consider that the salary system should be reformed. Matters about sufficiency of schools and kindergartens were the focus of discussion,” said D. Lundeejantsan, MP and head of MPP Group in the Parliament. Moreover, MPs claimed that it was stated to regulate construction of paved roads being constructed between aimags with consession so as to improve infrastructure, however it works too slow.
It is planned to allot Tgs 21,000 monthly to every citizen and Tgs500,000 to every student, a total of Tgs805 billion from Human Development Fund beginning in 2011 within a framework to fulfill 2008 election’s promises. However resource for this funding makes MPs doubtful. “Tgs432.2 billion will be accumulated in the HDF by the forms of loans and advance payments, Tgs132 billion from Oyu Tolgoi, and some parts from advance payments or product sales of Erdenes Tavan Tolgoi.

It will be separate from budgetary investment. Actually, a huge amount of money will come after establishing an agreement with a strategic investor for Tavan Tolgoi early in 2011. The Tgs310 billion that HDF lacks will be gained from Erdenes MGL Company,” explained Finance Minister S. Bayartsogt.
In connection with the budget bill, Government proposed to amend laws on Excise Duty, Treasury Fund, Banks and Stamp Duty. Government’s proposal to raise rates of imported used car’s tax and stamp duty by two-fold faces the disagreement of MPs that it may bump up tax loads of citizens and add trouble to their lives.
At last, a majority of MPs backed the government’s proposal while discussing the Bill on Excise Duty at the standing committee meeting on November 16. There are about 306,000 vehicles throughout the nation, of which nearly 80 percent of vehicles are used longer and most vehicle merchants commonly import old cars. It causes an increase in air pollution and negative effects on the safe operation of cars, explained the Finance Minister

source: The Mongol Messenger newspaper

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Licensing dispute remains unresolved

Mongolia’s courts will try to avoid going to international arbitration for resolution

The dispute between Mongolia’s Nuclear Energy Agency (NEA) and Candian-owned Khan resources over its Dornod mining and exploration licences continues with NEA’s latest revocation of the Company’s licences.

Both parties issued statements within a day of each other with different interpretations of NEA actions making the future for Khan resources and its licenses unclear. On November 11, the Nuclear Energy agency published a statement.

‘This statement is issued in connection with false information deliberately and repeatedly released to the media and the internet by “Khan Resources” LLC and “Central Asian Uranium” LLC, on the licenses that they possessed, court decisions, as well as the activities of the regulatory body, which carries out its activities in accordance with relevant legislation. Nuclear Energy Agency revoked the licenses 9282X of “Khan Resources” LLC, and 237A of “Central Asian Uranium” LLC in connection with the repeated violation of the Law of Mongolia on Minerals, the Law of Mongolia on Subsoil, the Law of Mongolia on Special Protected Area, the Law of Mongolia on Licensing and other laws and regulation, as well as inaction to correct the violations. In accordance with the Law of Mongolia on Enforcement Procedure of the Nuclear Energy Law the licenses was not renewed.
Disputes concerning the above mentioned licenses not solved conclusively by the court; moreover on November 13, 2010 the Administrative Appellate Court of the Supreme Court made some correction in the primary court decision and ruled that the decision taken by the Director General of the Nuclear Energy Agency in 2009, over the license 237A is valid.
However, “Khan Resources” LLC and “Central Asian Uranium” LLC release false information about the court’s decision, in order to conceal their violation, therefore the Agency regrets that the above mentioned companies intentionally taking fraudulent acts against the public and shareholders, and disrespect the Mongolian legislation by not complying requirements provided by the law.
Therefore, the Agency officially announces that it is impossible to renew the licenses of these companies.’
On November 12, Khan Resources replied Khan to the NEA Published Statements Concerning its Licenses with the following: Khan Resources Inc. announced on November 12 ,that the Mongolian Nuclear Energy Agency (the “NEA”) has published a notice in certain Mongolian newspapers that it does not intend to reinstate Khan’s exploration license 9282X and mining license 237A (the “Licenses”) held through its subsidiaries Khan Resources LLC and Central Asian Uranium Company, LLC, respectively.
While the NEA has not officially replied directly to Khan’s requests for the NEA’s determination of Khan’s applications to re-register the Licences under the Nuclear Energy Law, which were filed a year ago, these published reports suggest that the NEA has officially determined that “it is impossible” for the NEA to reinstate the Licenses on the basis of alleged violations of certain Mongolian laws. Khan continues to believe that there exists no legal basis for the NEA to refuse to reinstate and re-register its Licenses.
Khan intends to challenge the NEA’s actions through all legally available means and intends to pursue all available remedies to vigorously defend its and its subsidiaries’ rights and interests, including by proceeding to international arbitration.
Khan Resources Inc. (TSX:KRI) is a Canadian company engaged in the acquisition, exploration and development of uranium properties. Its current activities are focused on the Dornod area in northeastern Mongolia. Khan holds interests in the Main Dornod Property and in the Additional Dornod Property. Khan’s website is www.khanresources.com.
source: The Mongol Messenger newspaper

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President Ts.Elbegdorj State visit to Japan

President Ts.Elbegdorj tells his audience that Mongolia will not forget Japan’s help in transitioning to democracy

From November 15 to 19, President Ts. Elbegdorj is paying a State visit to Japan. His visit in Tokyo City began when he met with Mongolians staying in Japan. Approximately 2,000 Mongolians study or work in Japan. In past years, the number of Mongolians who conduct research at institutions and universities has increased.

President Elbegdorj first met with Mongolians studying in Japan

Mongolia began to send research students in 1976 to Japan and currently there are more than 1,000 Mongolian students in Japan. Of them, 300 study under scholarships of the Government of Japan and 70 percent of them study at their own expense. They mostly study in the fields of technology, science, economy, and international relations and scientists do joint studies in the fields of archeology, paleontology and anthropology.

Mongolians who participated in the meeting asked President Elbegdorj questions and exchanged views and opinions on preserving and spreading Mongolian culture and traditions, guiding government attention to prepare professionals in mining, technology and biotechnological sectors, considering and accounting social insurance commissions paid by Mongolians in foreign countries the same as in Mongolia, employing people for civil services with honest competition, and providing possibilities for Mongolian citizens abroad to vote in Mongolia elections.

President Elbegdorj said, “Japan is a true friend who helped Mongolia in difficult times. We will not forget that in the challenging years following Mongolia’s transition to democracy and market economy, the Japanese people helped Mongolia with necessary items in energy, infrastructure, public transportation, and education sectors in the most needed time. After 20 years, we bring you our good news.

The Mongolian economy has selfsufficient capacity now. We are not going to ask help but Mongolia has become a mutually beneficial partner with Japan”. The President asked the Mongolians to devote whatever they learned in Japan to Mongolia and in turn, Mongolians expressed their full inspiration and willingness to dedicate what they learned to develop their motherland.

The same day, the authorities of Japan’s International Friendship Exchange Council hosted a lunch honoring the President and First Lady of Mongolia.

 The council has members included business leaders and scholars from research institutes and universities. The council conducts activities to advertise foreign policy of the Government of Japan, increase participation of private sector in developing foreign policy, and assist in the implementation of foreign policy of Japan. The council has organized training and workshops to increase investment from Japan to Mongolia for past 20 years. The council has committees in charge of bilateral economic and cultural issues such as Japan-USA, Japan-Europe, Japan-Russia, and Japan-China. The committee in charge of Mongolia was established last year. The council’s board members briefed that the council sends special crews to countries or regions to conduct studies. They exchanged views on Mongolia-Japan economic cooperation.

That day, President Elbegdorj gave interview to Sankey Shimbun, Japan’s well-known daily newspaper.

On the second day of his visit to Japan, President Elbegdorj lectured on development and the environment at Tokyo University. Before the lecture, J. Hamada, President of the University said, “It is honor for our university to hear a lecture of this well-known person who is one of pioneers of Mongolia’s democracy. We hope that Mr. Elbegdorj’s visit will elevate bilateral relations and cooperation to a new level. A lecture by You is an extraordinary opportunity for our students and experts.”

After his lecture, the President said that that Tokyo University and its students have an important role to introduce nature-friendly development and new technology.

Experts and students asked many questions from the President about Mongolians’ contribution to combat global warming, mining extraction and its impact on environment, desertification, and nomadic animal husbandry as well as others.

Mongolia’s First Lady shows Japanese children Mongolian art and culture

President Elbegdorj giving interview to Japan’s well-know daily newspaper

On November 17, the President attended the Mongolia-Japan Business Forum, where he said, “We put criteria for foreign investors, such as use of nature-friendly technology, to be accountable, transparent and open in operation. We think that all these are completely fulfilled by Japanese investors. You are our trusted investors”.
Among those gathered were 50 representatives of the Mongolian business sphere and a number of useful reports were made by related officials from the Mongolian side.
B. Ganzorig, chief of the Foreign Investment Agency, introduced legal conditions of investment in Mongolia, A. Tamiraa, specialists of Geology Research Department at Minerals Authority, introduced Mongolia’s policy on exploiting rare earth elements while Ch. Ganbat, advisor to Road,Transport, Construction and Urban Development presented the project for Sainshand’s Industrial Park.
President Elbegdorj also met with Mr. Akihiro Ohata, Minister of Economy, Trade and Industry of Japan.
Mr. Ohata told good news to President Elbegdorj about a decision to officially launch the process to establish an Economic Partnership Agreement between Mongolia and Japan. “This is the gift from our government for your visit to Japan,” said Mr. Ohata.
The sides have been actively seeking feasibilities to establish economic partnership agreement since 2009 and working groups of the two sides have been set up, comprised of representatives from the government, private sectors and experts.
President Elbegdorj said “This agreement is the equivalent of a Free Trade Agreement and is not only going to coordinate trade issues, but also free flows of banking, finance and services and thus it will be vital for Mongolia.
He proposed to complete talks successfully and to sign the agreement in 2012 on the occasion of the 40th anniversary of the establishment of Mongolia-Japan diplomatic relations.
During the APEC Summit which was recently held in Japan, talks on establishing Asia Pacific Free Trade Zone were discussed and this issue is at the center of global attention. At this time, Mongolia is going to establish an Economic Partnership Agreement with Japan – one of the major biggest countries in the region and this is an important result of the President’s visit to Japan.
The same day, President Elbegdorj met with Yohei Sasakawa, Chairman of Nippon Foundation which contributes considerably to the friendship of Mongolia and Japan. The Nippon Foundation has been assisting education and health sectors of Mongolia. Family Pharmacy Project ‘Vansemberuu’ has been implemented in 17 soums of five aimags in Mongolia over the past 10 years and supplys rural families with necessary medicines. In places where the project is being implemented, calling for an ambulance was reduced by 20 percent according to statistics. Mr. Sasakawa noted that this has become a successful project in which other countries began to be interested.
The foundation also encourages improvement of the capacities of personnel and scientific works at Mongolia’s Academy of Management Development. The foundation organizes visits of young politicians to Japan to upgrade their political education and to strengthen bilateral relations and mutual trust.
President Elbegdorj expressed appreciation to Mr.Sasakawa and the Nippon Foundation for their efforts to expand and develop relations and cooperation between Mongolia and Japan, and proposed certain suggestions. Particularly, he requested Mr. Sasakawa give attention to cooperating in the vocational training sphere and training national skilled workers.
President’s visit continues
source: The Mongol Messenger newspaper

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Orthodox Week held for the first time on Mongolian TV

Ulan-Bator, November 18, Interfax - The Orthodox Week was held by the Ah Oron (Motherland) Mongolian TV channel from November 8 to 14.

"It's remarkable that Christianity was not represented in Mongolia till early 1990," Rector of the Holy Trinity Parish in Ulan Bator Priest Alexey Trubach told an Interfax-Religion correspondent.

"However for the last twenty years Protestant sects have made great progress. Out of four per cent of Christians - 90 per cent are Protestants! And it makes 97 thousand newly converted Mongolians (the country's population totals to 2.7 million people). Mormons make nine per cent of the Christians while Catholics and Orthodox equal to one per cent only," the priest said.

According to Father Alexey, the number of Protestants in Mongolia is actively growing thanks to their missionary activity.

The World Saints program on the Ah Oron channel made a research of religions represented in Mongolia giving a week on air for each of them. Many viewers first heard of Orthodoxy and its differences from Catholicism and Protestantism.

"In conditions when Russia is losing Mongolia as a strategic, economic and political partner and as one of sincerely friendly countries, Mongolians still treat Russians as brothers. That's why the Russian Orthodox Church was chosen to represent Christianity in Mongolia during the Christian week," the priest believes.

source: http://www.interfax-religion.com/?act=news&div=7920

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LIG links Mongolian steppe

By Kim Tae-gyu

LIG Engineering and Construction (E&C), one of the top-tier builders here in Korea, is changing the face of the Mongolian landscape, creating a highway, which traverses the central Asian country.

The Seoul-based company said Wednesday that the construction works are faring well to pave a 176 kilometer-long two-lane road from Choir, situated around 260 kilometers southeast of Ulaanbaatar, to Sainshand adjacent to the capital.

This May, LIG E&C won a $43.87 million order for the road in a hard-fought contest involving global players from China and Russia. The entity broke ground of the Mongolian government’s biggest-ever construction project in September.

``The jobs are underway as planned. We will complete them by 2012, which will substantially improve transportation in Mongolia as well as help the country preserve its ecologically-significant prairie,’’ LIG CEO Kang Hee-yong said.

As of the end of 2009, Mongolia had some 200,000 kilometers of roads across the nation with a mere 5 percent of them sealed. Hence, vehicles cannot run during the rainy season.

This devastated the prairie because motorists tend to drive on the pastures during the monsoon seasons. The Choir-Sainshand connection is expected to reduce such headaches to a large extent.

The road does not just concern Mongolia’s domestic issues but is also related to the so-called Great Asian Highway that involves more than 30 countries to connect Europe and Asia by land transport.

LIG CEO Kang said that the company will continue to strengthen its footing on the global scene, especially in nearby Asian countries, in the future.

``The sky’s the limit for the potential of Mongolia. We will impress it through completing the highways in perfect fashion,’’ said Kang who took the reins of the corporation last year.

``From the perspective of a builder, central Asian nations including Mongolia are rich in upside potentials. Because the infrastructure is not well established in the wide territory, their prospects are good.’’

Kang’s top priority in globalization is to be woven into the cultural fabrics of targeted countries to gain local relevance.

``We need to optimize systems tailored toward each country, taking advantage of local staff, facilities and resources. This will minimize risks while maximizing efficiency,’’ Kang said.

``Based on thorough research, we are required to understand targeted markets to come up with tailor-made strategies. We should not blindly seek short-term benefits, to become the real partners of our customers.’’

Established in 1967, LIG E&C has remained a first-string constructor in Asia’s No. 4 economy. It is widely known by its brand LIGA.
source: http://www.koreatimes.co.kr

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S'pore health system a model for Mongolia

LAST month, private health-care provider Singapore Medical Group (SMG) unveiled plans to build a multi-disciplinary 50-bed tertiary hospital in Mongolia's capital Ulanbaatar.

Fifteen other satellite family medicine clinics and mini-hospitals will also be built in various parts of the country.

Dr Jadamba Tsolmon, 43, Mongolia's Vice-Minister for Health, was in Singapore last week for a tour of SMG's facilities.

The Lasik Surgery Clinic, The Dental Studio and The Cancer Centre are among the facilities run by SMG.

In an interview with The New Paper, Dr Tsolmon tells us why she thinks our health-care system is ideal and should be used as a "model example" for her country.

Q: What do you know about Singapore's health-care system? Why team up with a Singapore health-care provider?
A:The Singapore health-care system is very famous and I see it as a model example for Mongolia.

Its medical insurance system (such as Medishield and Medisave) is very good and we have interest in duplicating the Singapore medical insurance system.

I also know people who had (travelled) to Singapore for treatment. One was a former ambassador of ours.

He (came) to Singapore for treatment for liver cancer.

The treatment here helped prolong his life for several months, but because he was diagnosed at a very late stage, he died in 2001.

Singapore is also well-known for providing quality medical service among my friends. That's why directors of various Mongolian companies send their wives here to give birth.

We are happy to receive the proposal from SMG...We want to take Mongolia to a very high-quality world standard, so we hope this new hospital will be the centre of world-class treatment and diagnosis, not just for Mongolia but for our bordering countries.

We are considering state participation in the joint venture.

Q: What is the current state of health-care in Mongolia?

A: There are three levels of care: primary (family group practices), secondary (district hospitals) and tertiary (major hospitals and specialised centres) health-care systems.

We have three general hospitals. We also have centres for cancer, infectious diseases, prosthetics and injuries, maternity, skin diseases, elderly and psychiatric care among others.

Each of these can be quite big (with) between 150 and 350 beds.

There is only one other foreign-run hospital, a tertiary hospital run by Koreans.

Q: What are some of the pressing issues and challenges facing Mongolia's health-care system?

A: We do have a lot of problems. We are currently in a transition period from a Soviet era to a modern era, and we are trying to change.

Infrastructure is not good. There are bad roads or (people have to travel) too far to see the doctor, so (they) cannot get proper treatment and proper diagnosis in time. This is why people often get diagnosed late.

Our hospitals are also not very well-equipped.

(For) cancer especially, over 83 per cent of diagnosis is at the very late stages - stage 3 or 4 - that's why the rate of mortality is high.

But we are trying to solve these problems step by step. We are currently spending 3.5 per cent of our Gross Domestic Product on the health sector. We are trying to increase the budget to 6 per cent over the next two years.

We also run projects with the assistance of the Asian Development Bank to give proper public education to our people about diseases and to give good quality health care.

Because the territory is very vast, Mongolia is now trying to establish an e-health system, so all health-care systems and remote regions are linked to each other through an integrated database.

This makes it easier for people who live in the countryside or remote areas to get proper diagnosis and treatment.

Q: Will the new Singapore hospitals help improve the quality of health in the country?

A: Yes. It will give a lot of influence because our doctors will get to be trained abroad and they will be assisted and trained by world-class doctors from Singapore.

Such information exchange will also benefit our other tertiary hospitals because all other Mongolian doctors can be trained at this hospital.

Primary health care will also be improved with the new facilities.

Another benefit is that it will reduce the flow of money- the millions of dollars which are going outside of Mongolia for medical treatment in other countries.

This makes it more equitable because not only the rich can get treatment overseas.

With such hospitals, ordinary people can get world-class treatment in Mongolia because our insurance system can provide some coverage.



This article was first published in The New Paper.

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EBRD supports sustainable gold-mining industries in Kyrgyz Republic and Mongolia

The FINANCIAL -- The European Bank for Reconstruction and Development and Centerra Gold Inc., – a North America-based gold-mining company and the largest foreign investor in the gold sector in Central Asia – have joined forces to develop Centerra’s operations in the Kyrgyz Republic and Mongolia

The EBRD will provide a three-year revolving corporate debt facility to Centerra of up to US$ 150 million (€112.5 million) to finance the company’s development and potential acquisitions of mining assets in the region.

"With the EBRD’s support, Centerra is introducing new mining technologies and is supporting sustainable mining development initiatives around its areas of operation," EBRD said.

“We are delighted to continue working with Centerra in support of its 15-year track record as the largest foreign gold-mining operator in Central Asia. This is an important regional investment expanding Centerra’s operations,” the EBRD’s First Vice President Varel Freeman said.


“Most crucially it is an investment that supports the sustainable and transparent development of the mining industries, supporting the Extractive Industries Transparency Initiative implementation in the Kyrgyz Republic, and combining resources to support small and medium private enterprises operating in the economic areas of the mines. The EBRD will work together with Centerra to promote the highest possible environmental, labour, health and safety standards, not only within its existing operations, but also within its future projects,” he added.

Speaking at the signing ceremony, Centerra’s President and CEO Stephen A. Lang said: “Centerra is very pleased to have reached an agreement on this new credit facility with the EBRD. We have been working with the EBRD for over 15 years and are delighted to conclude a new project with the Bank. Centerra is committed to sustainable development in the economic areas around the mines and in its countries of operation generally.”

In Kyrgyzstan, the EBRD focuses mainly on supporting micro, small and medium-sized enterprises, key infrastructure projects and sustainable development of the country’s mining sector. Since the beginning of its operations in the Kyrgyz Republic, the EBRD has invested about €250 million in over 70 projects, with 63 per cent of the projects being investments into the development of the private sector.

In line with its country strategy for Mongolia, the EBRD focuses on developing a sustainable mining sector, agribusiness, financial institutions, property and beverage production. The Bank has been implementing over 20 projects with a total value of €936 million.

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Mongolian Kazakhs’ Hunting Festival – “Berkutchi”

In the Bayan-Olgii district of Western Mongolia, the home of Mongolian Kazakhs, annual festive celebrations are under way: the face-off between “Kokhbar” riders, horse races and the main spectacle – the battle between Berkutchi hunters.

In the Bayan-Olgii district of Western Mongolia, the home of Mongolian Kazakhs, annual festive celebrations are under way: the face-off between “Kokhbar” riders, horse races and the main spectacle – the battle between Berkutchi hunters

Hunting with specially trained eagles is one of the most spectacular and ancient traditions of the Mongolian Kazakhs, handed down from one generation to the next

Hunting with the golden eagle or berkut is one of the most unique aspects of Kazakh life. The hunter is called a “berkutchi”. The skills of training the wild birds are passed down from one generation of Kazakh hunter to the next over centuries and are kept secret. There are no more than one thousand berkutchi on our planet. Around half of them live in Mongolia

Training the eagle is a high art. The captured bird eventually gets used to the owner. In order to do this, the hunter oftentimes stays awake many-a-night, making sure that his eagle is sleeping tightly
The bird must only receive food from the hands of its owner. After the eagle gets used to his owner, his horse and his dog, the berkutchi starts teaching it how to hunt

A specially-trained eagle can hunt for small animals: hares, foxes, quail
Guests from Japan, Hungary, France, Germany, Kazakhstan and Russia are invited to the annual Berkutchi festival
The festival’s participants take national costumes and other colourful attributes very seriously. The Kazakhs sincerely and lovingly preserve their ancestors’ heritage
The festival program includes contests for equipping the eagle, bait hunting, as well as live fox, hare and wolf hunting
There is special equipment for hunting with birds, without which grappling with a 6-7 kg bird would be no easy task!

An ethnic Kazakh celebrates after winning a prize with his golden eagle in the far west of Mongolia at the annual Eagle Festival in Bayan Oelgiy, Mongolia, 02 October 2010
Mongolian Kazakhs believe that for as long as the Berkutchi traditions are alive and young people want to preserve and propagate the heritage of their ancestors, their nation has a future

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London accused of trying to 'entrap' Mongolian official

LONDON (AFP) – A lawyer for a top Mongolian official arrested in London accused British authorities Monday of trying to "entrap" his client by inviting him to visit the country only to detain him for alleged kidnap.

Bat Khurts, 41, a key figure in Mongolia's National Security Council, was arrested on a German warrant as he flew into London's Heathrow airport on September 17, for allegedly kidnapping a Mongolian murder suspect in 2003.

At an extradition hearing in London on Monday, defence lawyer Alan Jones accused Britain of an "abuse of process", saying government and judicial officials had worked together to "entrap" Khurts.

Jones also argued that his client should be subject to diplomatic immunity because he was travelling on official business.

He said Britain granted Khurts a visa and "encouraged" him to visit London in a series of diplomatic meetings here and in Mongola, "while secretly planning to have him arrested on behalf of the German issuing authority".

"That is a completely inappropriate way to conduct relations with a foreign friendly government," the lawyer told Westminster Magistrates' Court.

Khurts -- who remains in custody -- said in a statement read out on his behalf in court that he was the head of the executive office of Mongolia's National Security Council, describing it as "effectively the absolute power in Mongolia".

He said he worked "very closely" with foreign intelligence agencies and was keen to share knowledge with Britain.

To this end, British and Mongolian officials in London and Ulan Bator began discussing in November 2009 the possibility of a visit by a Mongolian official to London, according to documents revealed in court.

The Foreign Office has denied any formal meetings were arranged for Khurts' seven-day trip.

However, the Mongolian ambassador to London, Bulgaa Altangerel, told the court it was "very normal" for visiting officials not to have formal written invitations and that should not be taken as a sign that Khurts was not welcome.

The German warrant alleges that Khurts was a member of a snatch squad which kidnapped and drugged Mongolian refugee Damiran Enkhbat, wanted for the assassination of a Mongolian minister, in France in May 2003.

The case was adjourned until January 5.

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Mongolia to Choose Tavan Tolgoi Coal Mine Contractor This Month

Mongolia will use a bidding process this month to choose a contractor to mine in Tavan Tolgoi, a region with one of the world’s largest untapped deposits of coal for making steel, a Ministry of Finance official said.

“The auction will be decided by the end of this month and the operation of the mine will be handed over as soon as possible, perhaps in December,” Dorjkhand Togmid, deputy director-general at the ministry’s development financing and cooperation department, said today in an interview in Tokyo. Togmid was attending a Mongolian-Japanese business forum.

Mongolia, a mineral-rich landlocked country sandwiched between China and Russia, wants to retain ownership of new mines including Tavan Tolgoi, which holds more than 6 billion metric tons of coal. The government is striving to boost living standards in the nation of about 2.7 million people, where average per capita income is about $2,000 a year.

China Shenhua Energy Co., the biggest Chinese coal producer, is among the companies that have said they want to develop Tavan Tolgoi.

Mongolia plans to set up a state-controlled company, Erdenes Tavan Tolgoi, to oversee the deposit before the start of the mining season in April, Dashdorj Zorigt, the country’s minister for minerals and energy, said on Aug. 3. Mongolia plans to sell 30 percent of the company controlling Tavan Tolgoi in share sales to help fund $1.5 billion of the initial development cost, he said. The shares will be sold in Mongolia and overseas.

Zorigt said in October the government is seeking investment in railroads and other infrastructure to temper risks associated with a mining boom. Linking Tavan Tolgoi with an industrial park at Sainshand, the capital of Dornogobi province, will cost $2 billion, the Ministry of Finance’s Togmid said today.

New Railroad

Mongolia’s railway policy calls for new track to be laid in the existing broad gauge or 1,520 millimeters (5 feet) that is also used in Russia, rather than China’s standard gauge, according to presentation materials for a speech today by Chuluunkhuu Ganbat, adviser to the Minister of Road, Transportation, Construction and Urban Development.

The government plans to connect Tavan Tolgoi to the national rail network rather than build a direct link to China because authorities want to avoid dependence on their southern neighbor, New York-based EurasiaNet.org said in August.

Mongolia wants to sell some of the coal to Russia, Japan and South Korea, which would be made easier by a railroad linking to Russia’s rail network, EurasiaNet.org cited Dashbaljir Nemekhbayar, head of the transportation ministry’s Finance and Investment Department, as saying.

Rio Tinto Group and Ivanhoe Mines Ltd. are developing the Oyu Tolgoi copper mine in Mongolia. London- based Rio has called it the world’s largest untapped copper and gold resource.

To contact the reporters for this story: Stuart Biggs in Tokyo at sbiggs3@bloomberg.net; Michio Nakayama in Tokyo at mnakayama4@bloomberg.net.

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net.

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MoU with EU supports projects worth 15 million euro

Dr. Michael Pulch and S.Bayartsogt signing the MoU

On November 11, the Government of Mongolia and the European Union (EU) signed a Memorandum of Understanding (MoU) on the Multiannual Indicative Plan (MIP) for cooperation for the period 2011-2013, on the occasion of the annual meeting of the EU Member States Ambassadors with the Prime Minister of Mongolia, S. Batbold, by the Deputy Head of the European Union Delegation to Mongolia, Dr. Michael Pulch, and the Ministry for Finance of Mongolia, S. Bayartsogt.

The MIP 2011-2013 provides the framework for future bilateral cooperation of 5 million euro per year, representing a 40 percent increase of funding to Mongolia as compared to the period 2007-2011.

The funds will be allocated to two major programmes focusing on human resources development:

An 8 million euro programme will be implemented in support of public sector capacities at central and provincial level for improvements of norms and standards in the field of governance, democracy, human rights and institutional reforms. This will be in direct response to the intention of the Government of Mongolia to adopt European standards in the country.

A 7 million euro programme will be implemented in support of Technical and Vocational Education and Training (TVET) for the development of sustainable livelihoods and for the protection of the environment in rural areas.

Both programmes are now in their identification phase and the operational details will be worked out during 2011. The EU expects its Member States active in Mongolia to associate themselves with both initiatives so as to ensure a coherent and synergetic approach while ensuring the widest possible coverage.

The MIP 2011-2013 builds on successful ongoing EUMongolia cooperation, amounting to approximately 28 million euro in projects implemented throughout the country, mostly in the field of rural development.

The EU and Mongolia are strengthening their relations also in the trade and political field thanks to a Partnership and Cooperation Agreement (PCA), which is currently at its last stage of negotiations.

source: The Mongol Messenger newspaper

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INFORMATION FOR FOREIGN CITIZENS AND STATELESS PERSONS

About 51 countries of the world and among them 15 countries of Asia have taken their Population and Housing Census this year. By the situation of October 01, 2010, over 34 percent or 2.37 billion people of the world population are already counted.

The United States of America, Russian Federation and other countries have organized the census in this year, whereas the People’s Republic of China and Republic of Korea have started their Population Census on November 01, 2010.

Mongolia will run its Population and Housing Census during November 11-17, 2010. In accordance with Article 10.1.2 of the Population and Housing Census of Mongolia, foreign citizens and stateless persons who are residing in Mongolia for more than 183 days and/or have taken the permission to reside in Mongolia for over 6 months must participate in the Population and Housing Census of Mongolia.

Moreover, in accordance with Article 17 of the Population and Housing Census Law, the above mentioned individuals have responsibilities to cooperate and allow enumerators to enter their apartments and houses; to answer completely and frankly the census questionnaire and to obtain a document certifying that the person have participated in the census.

Make sure you get enumerated

State Committee of the Population and Housing Census

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Mongolia business environment ranked 73rd

Down 10 point.

The Mongolia business environment has been ranked 73rd in the ‘Doing Business 2011’, the eighth in a series of annual reports published by IFC and the World Bank.

‘Doing Business 2011’ video conference at WB’s office in Mongolia

The report ranks 183 economies on key aspects of business regulation for domestic firms. This year’s report showed that Mongolia moved backed 10 places from ‘Doing Business 2010’. During the video conference held at the WB Mongolia Office, it was said that this doesn’t mean that Mongolia’s business environment worsened. However, other countries carried out reforms in their business environment faster.

According to the report, Singapore, Hong Kong and New Zealand are leading in the ease of doing business.

Vietnam has been included in the 10 best countries that are conducting reform and could cut 50 percent of associated costs for registration such as at one-step service, leasing, taxation and getting construction permits.

This index averages the country’s percentile rankings on 9 topics made up of a variety of indicators that give equal weight to each topic. The rankings are from the Doing Business 2011 report, covering the period of June 2009 through May 2010.

The topics are: Starting a business, Dealing with constructional permits, Registering property, Getting credit, Protecting investors, Paying taxes, Trading across borders, Enforcing contracts and Closing a business.

Mongolia’s government declared 2010 as the Year of the Business Environment Reform and implemented a program to encourage small and medium-sized enterprise. There

appeared advancements in taxation and trading. For instance, one-step service and customs procedures have been eased, the risk management system has been partly introduced, and the days of obtaining import and export documents were reduced by

9-10 days. The report reviewed that East Asia and the Pacific region was the most active in the term of 8 years. B.Ganbat, chief of the Innovation Committee at the National Development and Innovation Committee, said “There are time differences in this report that covered the period from June 2009 through May 2010. We started reforming the business environment from last March. There are differences in even figures. Also adoption of amended law on Banking was not included in the report. It shows the necessity to cooperate in information exchange. What we have done this year will be reviewed by next year’s report. The annual action plan for business reform was made with indications from the starting of a business until the business closes. According to the plan, we focus our activity in two directions: to clear up clauses in the law regarding legal reform in managing a business, and; to reduce procedures of obtaining permits to manage a business.
Services at State organizations such as customs, taxation, standardization and registration are being eased and a one-step concept is being introduced. The report for the third quarter of this year indicated much progress in these areas. As for judicial reform, it is so slow because of the periodic issue. Many bills and draft regulations have been submitted to the government and parliament for amendments. We expect that some of the main changes will be made before closing of the autumn session. It will make doing business easier.”
Sergey Triplin from IFC, said that he does not think that Mongolia’s reforming process is slow and warned that if government makes a mistake while hurrying to resolve important matters, there will be more negative consequences like the privatization practice that previously occurred in Mongolia.
source: The mongol Messenger newspaper

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Khan Bank opens Diplomatic office

Simon Morris welcomes Japan’s ambassador to Khan Bank’s diplomatic office

The Khan Bank has announced the opening of its Diplomatic Office. This specialized office is designed to provide financial services for embassies, international organizations, foreign invested companies, and for their officials. The office welcomed its first customers today.

As Mongolia’s economic growth continues, the level of investment into Mongolia and foreign companies also continues to increase. The Diplomatic Office will offer a full range of banking services in a timely and efficient manner, under the motto “Your priority is our priority”. The office will run its operations in three main languages: English, Japanese and Chinese. Staff however also have language facility in German, Russian, Spanish, Turkish and Korean. Ambassadors from Japan and Canada, representatives of international organizations and major companies participated in the ceremony. Simon Morris, CEO of Khan Bank, stated “We are taking many actions to deliver customer service at the highest level to all our customers and to provide products and services based on customers needs in a convenient ways. One of the good examples is our Diplomatic Office, which is open for business from today. Our purpose will be fulfilled if the our customers are receiving services at international level.”

Khan Bank, with the largest branch network across all of Mongolia, provides banking services to corporate
small and medium businesses and consumers. Currently, all 496 branches of the Bank are operating on a real time basis providing customers with direct access to all banking services from everywhere in Mongolia

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More vaccines needed to combat animal disease

Kidokoro Takuo and M.Enkhbold

As of today contagious, animal foot-and-mouth disease was recorded in 18 soums of 4 aimags and 3.7 million animals in 42 soums of Dornod, Sukhbaatar, Khentii and Dornogobi aimags have been vaccinated.

It is required that a total of Tgs2.2 billion for purchasing 4.2 million doses of vaccine to vaccinate 7.4 million animals in Dornogobi, Gobisumber, Tov, Dundgobi, Khentii aimags and Ulaanbaatar city, said M. Enkhbold, Deputy Prime Minister and head of the State Emergency Commission. On November 9, he met with N. Oyundelger, assistant FAO Representative in Ulaanbaatar to discuss the matter and requested help from the organization. FAO Mongolia Office sent information to its head organization about how the Mongolian government and relevant organizations combat foot-and-mouth disease. The Food, Agriculture and Light Industry Minister also sent a letter. An answer to the letter will come back soon, said assistant FAO Representative.

The Government made 6 resolutions to combat the contagious animal foot-and-mouth disease that was first recorded in April, 2010 in Sukhbaatar and Dornod aimags. Tgs5.8 billion has been spent of which Tgs2,070,000,000 was spent on purchasing vaccines, Tgs2,350,000,000 on reimbursement to herders whose animals were destroyed and Tgs800 million was spent on activity expenses.
On November 10, Mr. Enkhbold met with Japan’s Ambassador Kidokoro Takuo. During the meeting, Mr. Enkhbold introduced the current situation for combating the disease and expressed interest to get assistance from Japan. In turn, Japan’s Ambassador said that results of the survey conducted on how the disease has been combated would be sent to Tokyo and an official and definite answer will be given in the near future.
source: The Mongol Messenger newspaper

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Boroo Gold to end mining, and will dismiss 250 workers

Boroo Gold LLC has decided to dismiss 250 workers as it ends mining activity from December 1. The company’s President and Executive Director, John Kazakoff, has said in a statement that the decision to end mining “was a difficult one to take but we had no real choice”. The company “understands the difficulties to be faced by the retrenched employees and their families, as also by contractor and supplier companies, and by citizens benefiting from our local development projects”.

Boroo Gold began mining in 2004 and has always said the workers will move to the Gachuurt mine when work begins there. The Government permission has not yet been received but the company will take back the 250 workers if and when it is granted.
source: www.news.mn

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