Mongolia Business Focus December 17th, 2012 - EBM Consulting

Mongolia Business Focus

A digest of key Mongolian business news & information

December 17^th, 2012

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A selection of key articles, information and links of interest from the last 7 days regarding the business and risk environment of Mongolia compiled by analysts at EBM Consulting ( http://www.ebmconsulting.com.hk ). We provide pre M&A, pre JV, enterprise risk due diligence and political risk services in frontier markets across Asia with Mongolia a specialty.

Risk management security market entry due

Sections:

• Business & Economy
• Mongolian Language Media News
• Mining & Investment
• Politics & Security
• Upcoming Events

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Business & Economy

Beef ?O? Brady?s to open a restaurant in Mongolia

(Ref: Tampabay Times, 17 Dec, 2012) TAMPA ? when investors wanted to bring an American restaurant to Mongolia, a place so cold and dry it can?t grow crops, they looked for a menu that reflects the country?s appetite for meat. One immediately stood out: Beef ?O? Brady?s.

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METI ? Ministry of Economy, Trade and Industry of : Summary of the Second Round of Negotiations for the Japan-Mongolia Economic Partnership Agreement (EPA)

(Ref: 4traders, 14 Dec, 2012) The Second Round of the Negotiations for the Japan-Mongolia Economic Partnership Agreement (EPA) was held from Tuesday, December 11 to Friday, December 14, 2012 at the Ministry of Foreign Affairs in Tokyo, Japan.

Mongolia, which has seven times as many goats as people, could grow 20% next year

(Ref: Unuudur, 14 Dec, 2012) The world?s most sparsely populated nation, Mongolia is home to 2.8 million people?and around 20 million goats. It also has extremely vast mineral deposits, yet its people, many of whom are nomadic herders living in tents called ?gers,? are desperately poor, with GDP per capita standing at just $3,635. Still, Mongolia?s economy could skyrocket next year, depending on a lot of fast moving political and financial variables. The World Bank forecasts 16% growth while the Economist?s executive editor, Daniel Franklin, says it could reach 20%.

National Statistics Office Releases Social and Economic Evaluation

(Ref: UB Post, 13 Dec, 2012) The Deputy Head of the National Statistics Office (NSO) of Mongolia, B.Erdenesukh and the Head of the Macro Economics Department of NSO B.Badamtsetseg has officially released this year?s social and economic evaluation for the period up until November 2012 during a press conference.

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The Asia Foundation to develop the Ger area districts of Ulaanbaatar City

(Ref: Info Mongolia, 13 Dec, 2012) The Asia Foundation, headquarters in San Francisco, CA, has been implementing many programs towards Mongolia in the fields to advance good governance, increase access to justice, address environmental issues and challenges,empower women and promote dialogue on regional cooperation.

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Exchange demand and supply is well-balanced

(Ref: News.mn, 13 Dec, 2012) Every week on Tuesday and Wednesday the Mongol Bank organizes auction sales of foreign value. Commercial banks are to send request of their desired purchases in yuan and dollars today. But Mongol Bank did not participate in the exchange because the domestic market demand and supply is well balanced.

Mongolian bonds: it?s the laws, not the lawmakers, that matter, says Moody?s

(Ref: Beyondbrics, 10 Dec, 2012) When the Mongolian People?s Revolutionary party (MPRP) threatened to quit the country?s ruling coalition last week, the bond market panicked. Mongolian government bonds ? which are brand new to the market ? sank as much as 8 per cent.

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Mongolian Language Media News

Mongolian language media articles translated by EBM researchers

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Heads of the General Authority of Civil Aviation appears to be investigated by the ACA

(Ref: factnews.mn, 14 Dec 2012) Recently, the Anti-Corruption Agency (ACA) has actively investigated cases related to people who have high positions in government agencies. It appears that some heads of the General Authority of Civil Aviation are going to be investigated for corruption and abusing their official positions.

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A source said that it was revealed by the law enforcement organization that the some heads of this authority had jointly founded a company named MQAS LLC privately.

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MQAS is the abbreviation of Mongolian Quality and Assurance Services and it provides the services of consulting in the field of civil aviation and operates business activities for aviation cargo and freight forwarding.

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Jan Hansen: Mongolian debt reached to 40 percent of GDP

(Ref: fact.mn, 14 Dec 2012) Jan Hansen, a senior economist of the Asian Development Bank (ADB) Mongolia Resident Mission gave an interview regarding issues concerning the Mongolian economic situation and a new bond issue of USD 1.5 billion.?

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Today Mongolia has a large amount of debt. However it has not reached the huge amounts such as the debt of European countries. As of now, Mongolian foreign debt has reached USD 1.9 billion. Plus the new bond of USD 1.5 billion which was recently issued by the Mongolian government, and the total amount of the foreign debt should be equal to 40 percent of Gross Domestic Product of the country.

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Mongolian foreign investment has decreased rapidly compared to 2011. Budget expenditure is estimated to be 32 percent and revenue will be only 12 percent of GDP in the coming year.

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Mining & Investment

Coal price is likely to rise

(Ref: News.mn, 17 Dec, 2012) Mining experts say that the coal price kept slowed down past months but there is a lead-up of price up for coal in coming months. The price increased 850 yuan for washed coal, 650 yuan for raw coal is relatively high or 30-50 yuan from the price last month.

Mining firm targets investors

(Ref: Herald Business, 14 Dec, 2012) Erdene Resource Development Corp. is eyeing a group of wealthy Asian investors to advance its gold discoveries in Mongolia. The Dartmouth junior mining outfit plans to raise up to $1 million through a private placement offer brokered by the Mongolian Investment Banking Group LLC.

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Is Mongolia?s Resource Boom On The Brink Of Collapse?

(Ref: Unuudur, 14 Dec, 2012) In late 2009, Rio Tinto (NYSE:RIO) the international mining giant, negotiated a contract with the Mongolian government to develop Oyu Tolgoi, the world?s largest new copper mine. The mine would cost around $10 billion to build and Rio Tinto?s investment would be secured with the assurance that all taxes and royalty payments to the government would be fixed for the first 30 years.

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Kyrgyz study Mongolian mining management

(Ref: Central Asia Online, 14 Dec, 2012) A top Mongolian official December 13 explained to Kyrgyz geology officials his country?s efforts to maximise mining revenue. Mongolian Presidential Chief of Staff Puntsag Tsagaan gave his remarks during a consultation between his visiting governmental delegation and the Kyrgyz State Agency on Geology and Mineral Resources (GAGMR).

New report shows World Bank tough talk on climate is just a mirage in Mongolia?s Gobi desert

(Ref: Bank Information Centre, 13 Dec, 2012) Just one week after its grim warning during the UN climate talks in Doha that the world is on a path towards a four degree-rise in global temperatures, the World Bank is set to approve financing for yet another coal plant. The plant will power a giant mining complex in Mongolia?s South Gobi desert, fuelling climate change and violating the Bank?s own policies, argues a new analysis from advocacy groups.

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Mongolia embraces China investment while keeping Beijing at arm?s length

(Ref: Unuudur, 12 Dec, 2012) Citing national security, the government ordered the rails be laid 1.52 metres apart, Mongolia?s standard gauge inherited from the Soviets. The width ensures that the rails cannot connect to China?s, which are 85 millimeters closer together. So at the border, either the train undercarriages will need to be changed or the coal transferred to trucks, adding costs in delivering the fuel to Mongolia?s biggest customer.

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Germany and Mongolia to Accelerate Partnership in the Field of Mining

(Ref: Info Mongolia, 12 Dec, 2012)The Speaker of the State Great Khural (Parliament) Zandaakhuu ENKHBOLD received the Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to Mongolia Mr. Peter Schaller on December 11,2012.

Mongolia learning from Aus how to make most of mining boom

(Ref: The Daily Examiner, 10 Dec, 2012) AS IT prepares to face the corporate hordes keen for its minerals, Mongolian government officials have headed for Australia to learn how to make the most of it.

The developing Asian nation, on the doorstep of a resource-hungry China, has an exploding industry funded in part by billions of dollars from multi-national mining firm Rio Tinto.

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Politics & Security

The Consul-Generals of Mongolia to Irkutsk, Ulan-ude, Khukh Khot, Hong Kong and Osaka Were Appointed

(Ref: Info Mongolia, 17 Dec, 2012) The 71^st meeting of the Government of Mongolia took place on December 15, 2012, where over 20 issues were discussed and the followings were resolved: ? In order to ensure the propagation and improvement of the International System of Units, Cabinet advocated and agreed that the Government of Mongolia is to join the General Conference on ?

New judges appointed by President

(Ref: News.mn, 14 Dec, 2012) The President appointed and congratulated Och Tsog as the new Judge General, judge of Khentii province court, Batsuren Tserennadmid as the Judge General of Administrative Appeal cases in the City and Gerelmaa Bataa as Judge General of the inter-sum First Court in the Bayankhongor province.

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Mongolia nurtures ties with North Korea

(Ref: Asia Times, 13 Dec, 2012) Mongolia grabbed the headlines on November 15-16 with the announcement that Japan and the Democratic People?s Republic of Korea (DPRK) were engaging in direct senior-level talks in the Mongolian capital of Ulaanbaatar about the issue of North Korea?s abduction of Japanese nationals.

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Speaker Z.Enkhbold gives duty to IAAC

(Ref: UB Post, 13 Dec, 2012) The Speaker of the Parliament Z.Enkhbold visited the Independent Authority against Corruption (IAAC) of Mongolia on Monday along with the Deputy Speaker of the Parliament L.Tsog, Chairman of the Standing Committee on Justice Sh.Tuvdendorj, Chairman of the Standing Committee on Petition R.Burmaa and members of the Parliament D.Ganbat, D.Battsogt and O.Baasankhuu.

Erdene Announces Private Placement

(Ref: Marketwire, 12 Dec, 2012) Mongolian Investment Banking Group LLC (?MIBG?) will be the broker for investors resident in Asia and will be entitled to a cash commission in the amount of 6.0% of the gross proceeds received from the sale of those Units. MIBG will be targeting a group of Mongolian high net worth investors to complete a portion of the Private Placement. The remainder of the financing will be non-brokered.

Kahn Resources progresses arbitration against Mongolia

(Ref: Mining Weekly, 11 Dec, 2012) The United Nations (UN) Commission on International Trade Law has progressed the international arbitration between project developer Kahn Resources and the Mongolia government to the quantum and damages phase the company reported on Tuesday.

MNDP decides not to withdraw from the coalition Government

(Ref: News.mn, 10 Dec, 2012) The Executive Board of MPRP, one of the parties in the MPRP-MNDP Justice coalition, made a decision to withdraw from the coalition Government a week ago. Over the past few days the Deputy head of the Mongolian People`s Revolutionary Party (MPRP) and Deputy Prime Minister D.Terbishdagva announced to make a joint statement with the Mongolian National Democratic Party? (MNDP) but there has been no official statement due to the withdrawal from the coalition Government.

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Upcoming Events

Coal Mongolia 2013 (21-22 Feb 2013)

It is the first conference where newly elected government will present its policy and direction on coal mining sector. The International Conference and Exhibition ?Coal Mongolia? has become the biggest coal conference in Mongolia and it has been a great opportunity to explore the Mongolian coal industry.

Venue: SS-Convention center, Ulaanbaatar, Mongolia

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Asia Mining Congress 2013 (12-15 Mar 2013)

The Asia Mining Congress is the region?s leading mining investment event connecting the most important global mining stakeholders with Asian opportunities and capital. In its 9th year, AMC attracts 2,000+ participants and will continue to offer the most authoritative agenda and targeted networking for you to do business with the mining and investment community in Asia.

Venue: Marina Bay Sands Convention Centre, Singapore

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Mongolian Mining Summit 2013 (01 ? 03 Oct, 2013)

Mongolian Mining Summit 2013 will cover a range of topics and issues, including, but not limited to: Investment opportunities and partnerships, Mongolian government role in promoting and encouraging the mining industry, Strategic alliances between Australian and Mongolian entities and so on. Specialist, focused workshops will also comprise a critical part of the conference, as well as organised field trips.

Venue: to be Confirmed, Perth, WA

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About ?Mongolia Business Focus?
Mongolia Business Focus is a periodic compilation of news and enterprise risk related articles associated with Mongolia. The articles are compiled and distributed by frontier market specialists EBM Consulting, market entry & enterprise risk consultants (www.ebmconsulting.com.hk). EBM has offices in Hong Kong and Ulaanbaatar and associates in 55 countries worldwide. We have over 4 years of experience supporting companies and investors making informed business decisions in Mongolia through the provision of due diligence and related services.

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Source: http://www.ebmconsulting.com.hk/ebm-news/mongolia-business-focus-december-17th-2012-2/

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