Nov 1, 2024 72 min read Daily News Summaries

Mongolia News Summary for November 01, 2024

The following news articles are the opinions of their authors and publications. They are presented here as translations for informational purposes and do not necessarily represent the opinion of Mongolia Strategy Center or its members.

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Politics

The Second Discussion on Mongolia's 2025 Budget is Underway

Published: 2024-10-31 | Translated from: ikon.mn

Utilizing the special permission of the MPA agency for the photograph. In today's afternoon session of the Parliament, the initial discussion on the draft laws presented alongside the 2025 budget law took place. A vote was conducted on the fundamentally differing issues raised by Members of Parliament, and it was resolved to prepare them for the final discussion. Continuing on, discussions are being held on the draft laws concerning Mongolia's 2025 budget, the National Wealth Fund's 2025 budget, the Social Insurance Fund's 2025 budget, and the Health Insurance Fund's 2025 budget. A vote will be conducted on 52 fundamentally differing issues raised by Members of Parliament. Warning: Media organizations (Television, Radio, Social Media, and Websites) must mention the source (ikon.mn) when using our information in any form, either in full or in part.

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The Index of the Mongolian Judiciary Improved by 1.28 Points

Published: 2024-10-31 | Translated from: unuudur.mn

The 2023 report of the Mongolian Judiciary Index survey was presented by the "Open Society Forum." This study is unique for expressing results in numerical form by examining court data, as well as public and expert opinions regarding judicial operations. According to the Judiciary Index, which is measured out of 100 points, our country scored 53.22 points in 2023. This is an improvement of 1.28 points over the 2021 result. The index's score is measured using the following criteria. Specifically, it is evaluated on six main categories and 42 sub-dimensions, including 108 criteria such as judicial authority, scope, independence, openness, transparency, public trust, infrastructure, resources, judicial ethics, accountability, and effective court operations. Moreover, over 2,000 citizens in 21 provinces and the capital city were surveyed, including an opinion survey, evaluations from over 400 lawyers, and administrative statistical data, which served as the three main sources of information. The Judiciary Index, introduced two years ago, covered the period before the Judicial Law, adopted in 2021, was implemented. However, this report is highlighted by researchers as an opportunity to assess the impact of implementing the Judicial Law and related regulations over the past time. Incidentally, the study initiated by the "Open Society Forum" is planned to be conducted biennially.

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Published: 2024-10-31 | Translated from: ikon.mn

The National Coalition provided information on the differences in principle regarding the Nuclear Energy Law, which will be discussed by the State Great Khural (Parliament), and the proposals to include in the 2025 budget. Parliament member N. Nomtoibayar stated, "Our party has decided to support the draft of the Nuclear Energy Law. However, there are several issues regarding uranium extraction, the agreements with the French government, and co-projects that need consideration. Around 15-16 years ago, the Oyu Tolgoi agreement was concluded. Since then, many issues have persisted until today. Therefore, it is crucial for Mongolia to protect its fundamental interests in international agreements and contracts." Additionally, next year's budget for Mongolia is being discussed by the State Great Khural. The newly formed parliament is discussing its first budget. While last year's budget expenditure was 20 trillion MNT, the expenditure for 2025 has increased to 30 trillion MNT. The revenue side is not guaranteed. The main source of revenue is the raw coal market. However, in the last two years, coal prices have been declining. Essentially, when income and expenditure imbalances arise, inflation spikes and the value of MNT decreases, ultimately reducing the purchasing power of salaries and pensions. Furthermore, the spending side is excessively wasteful. Welfare, taxes, and social insurance contributions will not decrease. In connection with the upcoming year's budget, the National Coalition in parliament is proposing to increase funding for the Education Loan Fund. It is budgeted at 157 billion MNT for next year. There is a shortage of trained personnel in all current sectors. Therefore, it is necessary to increase the funding for this fund and revisit its regulations," he said. Parliament member A. Undraa said, "The draft law on amending the Nuclear Energy Law is currently being discussed by the parliament. It is being amended to open the right to conclude an investment agreement with the French ‘Orano Mining’ company. Several issues relate to this. For over 10 years since the cooperation agreement in the nuclear energy sector was concluded between Mongolia and France, the government of Mongolia has shown irresponsible actions, such as revoking the license of the ‘Khan Resource’ company that led to a hefty payment in international arbitration as you might be aware. Also, due to failing to express a clear position, many investors and exploration companies have left, including even the world's largest extractor from Canada that withdrew from Mongolia. These have been a specific factor in decreasing foreign investment. Currently, eight companies from countries such as China, Czech Republic, and France hold uranium utilization licenses in our country. 'Orano Mining' is one of them. Therefore, today we are not just making changes to the law for a single company, but making positive steps to unlock this sector and attract investments. If we look at the agreement signed with the French side, it is a very comprehensive agreement to enhance uranium in-situ leaching, conversion, nuclear fuel research, and even the potential establishment of a nuclear power plant as well as human resource training. The issues in this bill do demonstrate that these matters were not sufficiently amended," she stated. Following this information, the head of the National Coalition, N. Nomtoibayar, answered journalists' questions. - Members raised the issue of allocating the budget to their constituencies. What is the National Coalition's position on this? - Every year when the budget is approved, especially when the budget is about to fail to pass through parliament, there emerges the situation where funds are allocated to constituencies under the name of investment. To my knowledge, five billion MNT has become a standard for several years. In essence, this is a bribe to get the budget passed by parliament. On the other hand, there are truly many issues in constituencies. The representatives elected to the parliament have no choice but to solve this. However, there must be limits. There is a situation where things have gone ahead of the local government or have become intertwined with the local budget. Warning: Media organizations (Television, Radio, Social, and Web pages) are reminded to always cite their source as (ikon.mn) when using our information in any form, either fully or in part.

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Discussing Amendments to the Nuclear Energy Law

Published: 2024-10-31 | Translated from: ikon.mn

The unified session of the Autumn Meeting of the State Great Khural has begun at the State Palace. Today's meeting will discuss the following issues: 1. The draft laws and resolutions submitted along with the draft law on the 2025 budget of Mongolia. 2. The draft law on amendments to the Nuclear Energy Law and the accompanying draft laws. 3. The draft laws on the 2025 budget of the National Wealth Fund, the 2025 budget of the Social Insurance Fund, and the 2025 budget of the Health Insurance Fund. 4. The draft law on amendments to the statement of the budget framework for 2025 and the forecast for the 2026-2027 budget of Mongolia. WARNING: Please note that media outlets (Television, Radio, Social and Web sites) must cite their source (ikon.mn) when using our information in any form, fully or partially.

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Demand for Political Parties to Fulfill Their Promise to Reduce Budget Expenditures

Published: 2024-10-31 | Translated from: news.mn

During the Thursday afternoon session of the State Great Khural, the second discussion of the draft laws on the 2025 budget of Mongolia, the 2025 budget of the National Wealth Fund, the 2025 budget of the Social Insurance Fund, and the 2025 budget of the Health Insurance Fund continued. During this time, Member of Parliament D. Enkhtuvshin demanded that political parties fulfill their pledges to reduce budget expenditures as included in their platforms. Prior to the parliamentary elections, political parties had promised to reduce the inefficient expenditures of the state budget, halt budget expansion, and alleviate various pressures, including taxes, on citizens and businesses. Specifically, the Mongolian People's Party (MPP) pledged to reduce the percentage of state budget expenditures relative to GDP to 25 percent. The Democratic Party (DP) promised to cut the consolidated budget expenditures of Mongolia by 20 percent. The National Labour Party (NLP) stated in their platform that they would pursue a policy of realistic reduction of budget expenditures. However, the proposal to increase the 2025 budget by 60 percent compared to 2023, raising it to 37.7 percent of GDP, was introduced, which was seen by Member of Parliament D. Enkhtuvshin as a retreat from the commitments made to the citizens just a few months ago. He criticized the political parties and demanded that they fulfill their promises.

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Proposed Amendment to the Nuclear Energy Law Discussed in Mongolia

Published: 2024-10-31 | Translated from: isee.mn

The Parliament of Mongolia has proposed that the Mineral Resource Royalty (MRR) be set at 5% of mineral sales revenue. Today, the plenary session of the Fall Session of the Great Khural of 2024 began with 51.6% of parliamentarians in attendance at 10 a.m., with five issues set on the agenda. In accordance with Article 46, Section 46.1.3 of the Law on the Procedures of Sessions of the Ikh Khural (Parliament), the final draft of the "Resolution to Approve the Basic Guidelines for Monetary Policy in 2025" was presented. Subsequently, discussions were held on whether to consider the amendments and additions to the Nuclear Energy Law of Mongolia, submitted by the government on October 25, 2024, along with other legislative proposals submitted together. MP, Minister, Cabinet Secretary N. Uchral presented the project initiator's report. He noted that mitigating the impact of global climate change and promoting low-emission development is a noble goal facing not only Mongolia but humanity as a whole. Within this framework, countries worldwide are joining policies to increase nuclear energy production, declaring nuclear energy a "green or sustainable, clean" energy source. The global trend shows that producing 1 kWh of energy using nuclear fuel emits 68 times less greenhouse gases compared to using coal, and 1 kg of nuclear fuel is equivalent to the energy from 100,000 kg or 2 freight wagons of coal. The global demand for nuclear fuel and uranium is steadily increasing each year. Currently, 32 countries operate 440 nuclear reactors, with 63 more under construction and 88 planned, as stated in the project report. The International Atomic Energy Agency (IAEA) projects that uranium demand will grow from 93 thousand tons in 2024 to 177 thousand tons by 2050. Mongolia has pledged to contribute to global environmental protection and the reduction of greenhouse gas emissions by joining the Kyoto Protocol in 1997, the Paris Agreement in 2015, and the Glasgow Agreement in 2021, committing to reduce emissions by 22.7% by 2030, as stated by Minister N. Uchral. Mongolia's registered uranium reserve of 192.2 thousand tons accounts for 3% of the world's uranium reserves, ranking it tenth globally. The "Vision 2050" documents Mongolia's long-term development policy to enhance sectors of strategic importance such as mineral processing, industry, and energy production. The government plans to develop uranium deposits as one of 14 mega projects for national development. Mongolia is intensifying the exploration and utilization of radioactive mineral resources following international standards, which will positively impact economic growth and strengthen international partnerships. Advanced technology and high-level standards used in exploiting radioactive minerals reduce negative impacts on human health and the environment, ensuring safety. Exploration and studies on radioactive minerals began in Mongolia in the late 1940s, with significant safety-related studies conducted in recent years. The legislative framework for exploiting radioactive minerals is insufficient, constraining the development of value-added mineral products and limiting investment. Although the independent Nuclear Energy Law was enacted in 2009, operational experience in the extraction and processing of such minerals is lacking. Constitutional amendments in 2019 emphasized that the use of natural resources should focus on sustainable development, ensuring that the benefits are equitably distributed among current and future generations. The principle of national ownership of strategic mineral deposits is to ensure the majority of the benefits accrue to the people. In 2024, the National Wealth Fund Law was adopted to allocate a portion of mineral resources royalties and dividends from state-owned shares of strategic deposit operators to the National Wealth Fund. However, the general provisions of the Mineral Resources Law do not align with the specifics of radioactive minerals, creating challenges in fully regulating relevant issues. The proposed Nuclear Energy Law amendments aim to address these challenges, allowing the Parliament to determine the share of state ownership in radioactive mineral deposits based on the most economically beneficial scenario for Mongolia. The amendments stipulate the base MRR at 5% of mineral sales revenue, with an incremental MRR ranging from 0-9% depending on market conditions, and a special MRR set by Parliament according to specific circumstances of each deposit. The law prohibits the import, transit, or burial of foreign radioactive waste and spent nuclear fuel in Mongolia's territory and forbids exporting radioactive minerals in ore form. The proposed law also ensures radiation protection, safe operations, and the financial guarantees for reclamation in radioactive mineral activities. A 10-year investment contract, equal to the license period term, is designed to promote investment. Implementing these amendments will create a favorable legal environment for attracting investment and operationalizing uranium deposits, ensuring the benefits of mineral resources flow to the people through the National Wealth Fund, in line with constitutional principles of fairness and equality. It will also increase foreign direct investment, develop new industries, boost fiscal revenue, and foster socio-economic benefits by establishing Mongolia as a significant exporter of strategic products. Minister Uchral emphasized aligning with international requirements for radiation protection and public health and safety in radioactive mineral activities. The Security and Foreign Policy Standing Committee's report was presented by MP N. Batsuumburel, highlighting the committee's support for the legislative proposals in a vote held on October 30, 2024. Most MPs supported the proposal to discuss the amendments conceptually. The meeting concluded with statements from MPs regarding the strategic importance of nuclear energy while adopting safe operational and environmental practices.

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Discussion Held on Draft Law on Freedom of the Press

Published: 2024-10-31 | Translated from: unuudur.mn

The Ministry of Justice and Internal Affairs is developing a series of human rights laws, which includes the draft law on the freedom of the press. This law is highly anticipated to protect and regulate the rights and freedoms of journalists and media organizations. However, it has been delayed for many years, so the Minister of Justice and Internal Affairs, O. Altangerel, has announced that significant efforts will be made to pass it this time. To this end, the working group drafting the law has been reestablished, with N. Myagmar, the State Secretary of the Ministry of Justice and Internal Affairs, as its leader. A meeting and discussion were organized by the working group, which includes representatives from various relevant sectors, to present the revised draft of the Freedom of the Press Law to the leadership and managers of media organizations. More than 50 representatives from media organizations attended the discussion, along with about 20 members from the working group, the National Human Rights Commission, and the Ministry. The Freedom of the Press Law was originally passed in 1998 to regulate the basic relationships related to guaranteeing the right to print and publish. However, in modern times, it is necessary to regulate a variety of relationships in the professional activities of journalists. As a result, a revised draft consisting of 6 chapters and 18 articles has been developed, taking into account global development trends, principles adhered to by international human rights organizations, and the experiences of countries that have implemented them. During the discussion, Minister of Justice and Internal Affairs O. Altangerel emphasized that the draft law primarily includes regulations such as the state not interfering in the activities of media organizations, the right of journalists to protect their sources, differentiating between deliberately spreading false information and professional errors, and the transparency of media outlets and editorial boards. The president of the National Union of Journalists of Mongolia, O. Otgonbaatar, stated, "Since today’s project is the first version, I believe that journalists will actively participate in subsequent discussions and incorporate their suggestions to make a more specific and well-developed law. We will work until this draft law is discussed, agreed upon, accepted, and passed by our sector." Furthermore, some participants expressed their gratitude towards the Minister of Justice and Internal Affairs for leading and actively participating in the process of developing the long-awaited draft law in the legal environment of the sector, and for responding in person throughout the discussions. The minister also announced that he would personally participate in a total of three discussions with executives, journalists, and representatives of civil society, research, and the government in the media sector. If the law is passed, it is expected that Mongolia will take a big step forward in improving its freedom of the press.

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Economy

Trafigura Faces $1.1 Billion Loss Due to Fraud in Mongolia

Published: 2024-10-31 | Translated from: isee.mn

The commodities trading giant Trafigura has discovered potentially fraudulent activities related to its business in Mongolia, which could lead to a loss of $1.1 billion, Bloomberg reports. The company learned of issues related to its Mongolian business accounts by the end of 2023. Specifically, it found that some of its employees in Mongolia had altered data and documents to inflate financial figures and deliberately concealed information about overdue receivables. As a result of these events, several employees at Trafigura's Ulaanbaatar office have been dismissed. Additionally, the company's Executive Director in Mongolia, Mikhail Zeldovich, has also resigned, according to sources. Trafigura has been one of the largest suppliers of fuel to Mongolia for many years. Given that Mongolia's daily oil consumption is estimated at 35,000 barrels, with an annual market value of approximately $1 billion, the loss incurred by the company in Mongolia is considered very significant. Source: Bloombergtv.mongolia

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Energy Price Increase to be Announced on Monday

Published: 2024-10-31 | Translated from: isee.mn

The Government of Mongolia has announced that it will reform the energy sector. Mongolia imports 22-23% of its energy at high prices from its two neighboring countries. The lack of energy hinders the construction of factories and metro systems. Therefore, our goal is to fully supply energy domestically in the medium term and import from our neighbors when necessary. In the short term, there will be an increase in prices, but adjustments will be made to avoid burdening businesses and citizens. There will be a comprehensive transition in the energy sector. The government's plan for energy reform has been discussed at the cabinet level, and over 100 members of the parliament support it as of today. We officially start the comprehensive transition in the energy sector and urge unity beyond party lines. According to Deputy Prime Minister T. Dorjkhand, the Energy Regulatory Commission is expected to provide information on the price increase mechanism based on their legal duties by November 1st. Upon inquiry to the Energy Regulatory Commission, they stated that they have not yet made a final decision on the price increase. The commission will meet and announce the decision on how much to increase the prices on November 4th, which falls on the upcoming Monday.

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500 Billion Tugrik Bond of the Capital Shows No Results, Yet Another Bond to Be Issued for International Markets

Published: 2024-10-31 | Translated from: isee.mn

Ulaanbaatar City is set to issue another bond in the global market even though the benefits of its 500 billion tugrik bond have not yet materialized. In June of this year, just before the parliamentary elections, Ulaanbaatar issued the “Ulaanbaatar Bond,” the first local bond of its kind in Mongolia, following the examples of cities around the world. The initial trading took place on June 25. The following three projects were allocated funds from the “Ulaanbaatar Bond”: - Up to 300 billion tugrik for Boroontog's power plant - Up to 150 billion tugrik for road and infrastructure maintenance and renovation - 50 billion tugrik for the Tuur-1 wastewater collector and flood infrastructure To be precise, around 300 billion tugrik from the bond was invested in the Boroontog's power station. As part of the policy to increase energy sources, it was announced that the initial block of the power station at Boroontog in Bayanjarankh Sum, Tov Province, with a capacity of 300 MW, would be operational within this year. However, the construction of the first phase of 150 MW has been completed and opened on the 5th of this month. The second stage of 150 MW is planned to be operational by 2025. Moreover, to fully commission the new central wastewater treatment plant being constructed with preferential loans from China, it is necessary to complete the construction of the Tuur-1 main collector pipeline for Ulaanbaatar's wastewater. For this reason, 50 billion tugrik was allocated to the Tuur-1 collector. The decision to construct this collector was made in 2007. Over the past 17 years, only 19 km of the planned 30 km of pipeline has been installed. Furthermore, Ulaanbaatar City has 1,450 km of paved roads. To enhance road capacity, comprehensive construction of roads and water drainages at a total of 73.1 km in length, spanning 27 locations, including main and secondary roads and within residential complexes, was planned with a budget of 150 billion tugrik. However, completion and results of these works this year remain uncertain. During discussions on issuing the city's bonds, the Democratic Party Group in the Metropolitan Council stated, “The projects for bond investment are large-scale projects that will not finish this year and will continue for many years, so there will be no profit. Our group does not support this.” Nevertheless, the city plans to issue another bond for the international capital market. Specifically, to alleviate congestion and manage urban development in Ulaanbaatar, the Mayor's Office of the Capital City plans to issue local bonds and refinance foreign securities. Currently, there is a plan to issue bonds worth up to 500 million dollars in the global market and raise 500 million dollars by the end of this year. It is intended to be used for the development of the Selbe sub-center. Within the framework of the "Selbe Subcenter" project, around 2,200 plots in the 14th subdistrict of Sukhbaatar District and the 14th and 18th subdistricts of Chingeltei District will be cleared to build housing for 12,000 households. Of the total 2,206 residential plots to be cleared, 1,500 households have already vacated and received compensation. It is planned to complete the land clearance within this year, and bidding for the construction of the 12,000 residential units over a total area of 158 hectares is ongoing.

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Agreed to Take up to 9% AMNAT from Zuuvch-Ovoo, the Highest in the World

Published: 2024-10-31 | Translated from: gogo.mn

The session of the Parliament has commenced. During the session, the draft law on Nuclear Energy is being discussed. The draft law was introduced by N. Uchral, Head of the Cabinet Secretariat. He provided the following information: “I have been leading the working group for drafting the law for the past two months. The government owns 34% of "Oyu Tolgoi" LLC. Dividends will start to be received in 2037. Therefore, negotiations with France must be conducted correctly. If we had stipulated in the contract with "Oyu Tolgoi" that we would take increasing AMNAT, we would have started receiving dividends earlier. The contract being drawn up with France specifies the method for calculating AMNAT. I was quite surprised that the Nuclear Energy Law strictly stipulates a maximum of 5% AMNAT. Whose interests were at stake? The adoption of the law will open wide opportunities for negotiations in this sector. The President visited France last year and provided political leadership, which advanced this agreement. Although we have discussed this issue for 27 years, we have not progressed. When N. Altankhuyag was Prime Minister, progress was made in this sector. However, starting from the same point as us, Kazakhstan has become a leader in the uranium sector. It supplies 40% of the world's market. Uranium generates high-power energy. We have been discussing this project for 27 years. At that time, it is said that member S. Tsenguun was born. It is said that "Orano" opened its branch here 27 years ago. Yet, we are still negotiating. We have made international commitments to reduce our carbon emissions by around 20% by 2030. As part of this, we have joined three agreements. This agreement will not establish a nuclear power plant. However, research and development in this sector will grow. We will first clear up the legal environment and then discuss the draft contract with "Orano" in sequence, proceeding from the Government to the Parliament. This is the correct sequence. In terms of human resources, students at the Technical University are being educated with scholarships. Although there are few foreign workers at "Oyu Tolgoi", their salaries are significantly higher than those of Mongolians. To avoid repeating this mistake in Dornogovi, fees will be charged if foreign workers are brought. Currently, there is only one foreign worker at Zuuvch-Ovoo. The adoption of the Nuclear Energy Law will attract other investors into this sector. To reduce government expenses, the government will only own a 10% stake in future uranium projects, not 34%. Thus, it will not have the obligation to invest in the 34% share. Also, all citizens can receive dividends. This is a more advantageous option. The base 5% of AMNAT will be taken at any time. However, the amount of special AMNAT will be decided by Parliament. This will vary from project to project. It has been agreed to take up to 9% AMNAT from Zuuvch-Ovoo in Dornogovi, which is currently the highest in the world. This project has been written about many times. The negotiations have been ongoing for a full year, therefore the draft law has been urgently submitted to Parliament. This project is financially beneficial and includes third-country investment. Additionally, as the world is moving towards green energy, we must implement it. New technologies and innovations will be introduced without imposing a burden on the state budget.

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80% of the Economy is Dependent on the State

Published: 2024-10-31 | Translated from: news.mn

We had a discussion with the Member of Parliament J. Zoljargal regarding the budget for 2025. The government is currently presenting the draft budget for 2025 to the Parliament for discussion. What is your stance on next year's budget? In this period of budget discussions, I've come to realize one important thing. The portion of the Mongolian budget compared to the Gross Domestic Product (GDP) is excessively large. Approximately 40% of the GDP is represented in the budget. The state's involvement in the Mongolian economy is at 80%. This is a very high level. As a result, all economic indicators are misleading. The social system is also misleading and artificial. An artificial economic system means that there are only businesses revolving around the budget. They depend on and absorb the budget. As the budget and state interference in the economy increase, the discussion in Parliament is about expanding and developing business space. This should not happen. In other words, members of Parliament should not be the ones deciding where to direct business and the budget. Thus, whether it's the budget of 2025 or 2026, or 2027, the fiscal policy and state involvement are distorted. We need to aim to reduce the state's involvement in the economy to 40% instead of 80% and reduce the GDP portion represented by the budget to 20% instead of 40%. If the goal is to develop the economy and create a free market, we need to work on this issue together, or nothing will change in the future. To reduce state involvement, what should be done? Do you have any solutions? To achieve this, the expansion of the budget should be stopped. The state's primary role is to create conditions for people to conduct activities freely. It is the state's duty to clamp down on conditions that restrict such freedom. To be free, basic conditions are needed. This includes providing support on public health, education, and housing issues to a certain extent. Moreover, the fundamental role of the state is to operate within defense and the law enforcement agencies to protect against domestic and foreign rights violations. However, the state should stay as far away from business as possible in fulfilling these roles. By staying away from business and financial involvement, the state can be more accountable and effective. Therefore, the number of state-owned companies should be reduced by limiting government functions. Recently, there has been a false term "public-private partnership" that has come up, which is not correct. There is no true partnership between the public sector and private businesses. Instead, political friends' companies are growing. Such facades should be distanced from public operations. From my perspective, reducing the budget by half to 20% from 40% will allow the state to focus on its core functioning. This goal cannot be achieved in one day, but the state's involvement should be reduced and adjustable, and the focus should be shifted towards a free economy and private sector annually with the budget. The distortion of the government handling major infrastructure should be corrected. Tying the expansion of yearly budget expenses to the expansion of the economy, how justifiable is this explanation? You say the state should withdraw from large infrastructures, but 14 mega projects are planned for the coming years. With economic growth, the use of funds and implementing major infrastructure projects with budget money, is it a good or bad thing? More attention is needed on the foundational issue of fiscal ideology. There are people who believe they can develop the economy by overseeing and properly spending the state's and taxpayers' money for constructions. In reality, we were a society with public ownership and particular ideologies 30 years ago. We did not have private ownership, and our society and economy were organized within this concept. Today, this ideology is gone. Politically and ideologically, we became free, with a mindset focused on "I will earn a profit and live well," yet the economy remains 80% dependent on the state, similar to 30 years ago. This is not a socialist economy, but more like a fascist economy. Those who control the state allocate wealth. This is a wrong system. If we want to develop a free society in the long term, we should reduce state intervention just as we gained political freedom. Otherwise, this situation will eventually break. An artificial economy is bound to collapse. There are people who believe that the economy will develop under full state control and involvement. This is a fundamental difference in viewpoint. Different ideologies should be discussed openly. In every political party, coalition, or politician promises to pursue a policy of supporting private enterprises. However, in reality, as the budget expands, the space for the private sector shrinks. Has supporting the private sector simply turned into a nice slogan? Supporting private sector participation has merely become token phrases. The understanding is that the economy is directed by the state as the customer, linking private sector and business through public procurement, which should not be the case. The state should focus only on its main functions. Let the rest of the construction, investment, and economic relations continue peacefully. This is the free market relationship. If private sector participation is seen as providing services to the state, it is not a free market but a parasite state-centric economy. For instance, this is reflected in the energy sector. Mongolia has an energy law, which includes a provision for setting prices based on operational costs and expenses. The regulation board should calculate prices based on this formula. However, they have not been allowed to set prices and compute formulae. As a result, the annual energy cost per household is decreasing. Consequently, there is a misleading view of economic consumption and development. Policies were put in place to install electric heaters to reduce smoke in ger districts. If electricity prices reflect real costs, what will happen? In Ulaanbaatar, heating is twice as cheap as in rural areas. Since heating prices were kept below costs, uninsulated buildings with thin double-glazed windows were built in the city center. What happens when heating prices rise to reflect actual costs? Such misleading actions eventually cause problems. Prices and tariffs should be close to costs for economic development to be realistic. The government should allocate compensations from the budget for targeted groups affected by these changes. A four-member family living in a 50 square meter two-room apartment pays 30,000 to 50,000 MNT a month for electricity, whereas spends 100,000 to 200,000 MNT on mobile bills. Basic living needs should not be undervalued. When energy is cheaper than its cost, there are no savings on consumption, leading to a fake economy where erroneous practices prevail. False businesses built on a cheap economy will go bankrupt when costs rise. Therefore, realities should prevail. Next year, plans are in place to export 80 million tons of coal. Are there any risks? There are perceived risks. The amount of coal that China imports next year might not decrease significantly. Despite certain economic contractions and geopolitical conditions, there may still be demand. Thus, it might be possible to export 80 million tons of coal. Secondly, Mongolia is a partnership country that has good relations with China. However, there are concerns about risks because, besides Mongolia, China imports coal from Australia and Russia and is also experiencing a decrease in its own domestic steel demand and a real estate slump. As domestic steel production demand drops, there is more for export. So, there is a real risk of coal prices dropping. We might have to export more coal at lower prices to meet the budget. However, China's miner voices are also considered regarding how much coal to import from Mongolia. We risk accepting losses by trying to meet budget targets with increased volumes at decreased prices. There is awareness of China's slow economic growth reflected in budget revenue assessments. Thus, caution is necessary regardless of developments. Otherwise, the budget risks are too high. If coal export volumes are to be increased, it will face transportation and logistics challenges. Issues with border connections to China need to be resolved. What solution exists? It seems that issues have been discussed and decided upon between Mongolia and China at the state level. The two countries have commitments to reach $20 billion in foreign trade, support financial supply, and ensure Mongolia remains a reliable coal supplier to China. Policies for port revival are being implemented with loans and aid from national and international entities. Currently, the main issue is the railway border connectivity between the two nations. Once discussions and agreements have been made, swift implementation is ideal. According to my information, the connection work will be done by the China Energy Company. On July 7, 2023, the Parliament issued a resolution stating that infrastructure work will be done by a company with basic infrastructure, which is only China Energy. Moreover, a sales agreement for 20 million tons of coal is mandated. It is necessary to calculate at what price the sales will be made and at what cost the infrastructure will be built to assess profitability. If Mongolia is going to adapt certain laws for special projects contrary to off-take bulk coal sales directives through an exchange, it needs to be transparent on prices. There is talk of a Chinese proposal to participate in mining operations. If true, this should not be accepted. Mongolians can manage mining operations independently. Projects should only proceed if conditions benefit both parties. Otherwise, why proceed? The existing railway can still be used. Initial construction of loading facilities is completed, and there are 2-3 terminals at the end. Therefore, current capacities should be maximized. In general, Mongolia's borders and ports are capable of exporting 100 million tons of coal annually, regardless of railway connectivity. Nonetheless, railway connections would offer numerous advantages to Mongolia. Yet, it is crucial to consider what we trade off against these benefits. Finally, how well is the budget allocation prioritized? The number of Parliament members was increased to 126 with a goal to zone regional development rather than allocating more resources to constituencies. How effectively is this policy being implemented? In prioritizing the budget, it is preferable to direct resources towards a few major projects rather than distributing them via political influence in constituencies, which the current coalition government and Parliament members are focusing on. However, examining the progress on this budget work shows flaws. Spending should be slashed by 50%. If there are excess funds or revenue, they should be directed to wealth funds or future heritage funds and investment funds. Investing accumulated funds from investment funds into profitable projects domestically or internationally would grow resources. Instead of creating grand plans and smart governance to expand the economy with spare funds, confidence in the state should be curtailed. Therefore, the state should refrain from saving money for future constructions.

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Energy Consumption Rates for Businesses to Be Uniformly Increased

Published: 2024-10-31 | Translated from: gogo.mn

The Energy Regulatory Commission has conducted extensive studies and calculations on how to implement increases in electricity and heating prices. The chairman of the commission, E. Tuvshinchuluun, provided information about the reform of energy tariffs in a statement last Tuesday. The energy tariffs will be studied and set separately for Ulaanbaatar city and rural areas, as well as for businesses (AANs). Based on preliminary calculations and studies, a possible option was presented, but it has not yet become an official decision by the ERC, as the chairman emphasized before his presentation. Regarding changes in the energy consumption tariffs for businesses, since the establishment of the Energy Regulatory Authority in 2002, prices have changed a total of 12 times. In 2022, despite economic difficulties due to the post-COVID situation and poor company revenues, it was inevitable to increase tariffs for businesses. However, household tariffs were left unchanged. In 2022, for businesses with usage up to 5000 kWh, the tariff was increased by 14%, for those above 5000 kWh by 28%, and for the mining sector by 38%. Now, the threshold of 5000 kWh is being removed, and tariffs are being uniformly increased for businesses. Our main goal is to align energy tariffs with production costs. No profit calculation has been made, he said.

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Mongolia Ranks Tenth in the World for Uranium Reserves

Published: 2024-10-31 | Translated from: montsame.mn

The Government of Mongolia's proposal to amend the Law on Nuclear Energy was discussed at the stage of decision on whether to proceed with its deliberation. According to “Vision 2050,” the long-term development policy document of Mongolia, there is a goal to develop leading economic sectors with strategic importance such as value-added mining products, manufacturing, and energy production. Within the Government's 2024-2028 Action Program, it is planned to implement a project to bring uranium deposits into economic circulation as one of 14 mega projects of national development. In Mongolia, exploration and studies of radioactive minerals began in the late 1940s. In recent years, significant research has been conducted regarding the safe utilization of these minerals, and relevant conclusions have been drawn. However, due to insufficient legal regulation related to the use of radioactive minerals, the development of value-added mining products, manufacturing, and increasing investment have been limited. Since the independent Nuclear Energy Law was adopted and implemented in 2009, 15 years have passed without significant experience in main mineral extraction and processing operations. The lack of necessary regulations in the Nuclear Energy Law has limited the choice of economically effective options for using radioactive minerals, resulting in a scenario where the majority of the benefits cannot be realized. Moreover, the Nuclear Energy Law needs to include detailed provisions regarding the safety of operations, mine closure, waste management, and financial guarantees for rehabilitation when dealing with radioactive minerals. Thus, based on the principles of the Constitution and international best practices, a draft amendment to the Nuclear Energy Law was developed, according to the speech of ZGHEG's Chairman N. Uchral. Currently, Mongolia has registered 192.2 thousand tons of uranium reserves, accounting for 3% of the world’s uranium reserves, thus ranking tenth in the world in terms of reserve size.

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BUDGET 2025: Plan to Export 83 Million Tons of Coal Next Year

Published: 2024-10-31 | Translated from: gogo.mn

The Standing Committee on Budget of the State Great Khural of Mongolia held a session yesterday, which began at 18:18 with a 52.0% member attendance, resolving three issues. At the start of the session, the initial discussions were held on the draft law on the 2025 state budget of Mongolia along with other related law drafts and resolutions submitted together. Member of the State Great Khural, Ts. Davaasuren, presented the working group's report. He stated that the State Great Khural resolved in its plenary session to discuss whether to address the draft laws submitted alongside the 2025 budget bill in terms of their principles, and transferred it to this standing committee for preparation for the initial discussion. A working group, led by Member Ts. Davaasuren and composed of other members like Kh. Bulgantuya, G. Temuulen, and N. Altankhuyag, among others, was established to prepare the draft laws and resolutions for discussion and to formulate conclusions. The group prepared formulations for 19 fundamentally different suggestions about the draft laws. Moreover, a draft law amendment regarding the Business Income Tax and a list of projects within the framework of zonal development, as well as amendments to the Customs Tariff and customs tax benefits for the processing industry sector, were proposed to be approved by the State Great Khural. The standing committee considered the amendment to the State and Local Government Ownership Law and the draft parliamentary resolution on "Giving Directions to the Government," to enhance the legal environment of budgeting, finance, and taxation, aligning them with international standards. It also proposed that the government of Mongolia investigate the factors affecting the costs of projects and programs funded by the budgetary investment and take measures to ensure no further changes. The Standing Committee on Economics had also discussed the draft related to the State and Local Government Ownership Law amendments and the parliamentary resolution on "Giving Directions to the Government," and delivered their feedback to the Budget Standing Committee. Following the procedures outlined in Clause 39.10 of Article 39 of the Law on Procedures of the State Great Khural Assembly Sessions, each part of the draft laws was discussed, including the Law on Procedures for Enacting the Law on National Wealth Fund, Considerations for Laws Rendered Void, Business Income Tax Amendments, Customs Tariff and Tax Amendments, and the State and Local Government Ownership Law Amendments. Following questions and answers about the draft bills, a voting on the supported formulations of fundamentally different suggestions by the Economic Standing Committee and the working group was conducted. Member of the State Great Khural Z. Mendsaikhan agreed to introduce these proposals and findings to the unified session. The session proceeded with the second discussions on the submitted draft laws covering the 2025 budget of Mongolia, National Wealth Fund's 2025 budget, Social Insurance Fund's 2025 budget, and Health Insurance Fund's 2025 budget, which were submitted by the government. The report on the 2025 unified budget, audited by the National Audit Office, was presented by the Chief Auditor D. Zagdjav. He mentioned that the planned equalized revenue in the 2025 unified budget draft is 33,864.7 billion MNT or 35.6% of GDP, with total expenditure of 35,795.2 billion MNT, representing 37.7% of GDP, with a base budget surplus of 1,909.5 billion MNT and an adjusted budget deficit of 1,930.5 billion MNT, equaling 2.0% of GDP. The government-proposed 2025 unified budget allocates 5,234.8 billion MNT for the Minister of Finance, 55.5 billion MNT for the Chief Auditor, and 312.3 billion MNT for the First Vice Prime Minister and Minister of Economy and Development. The budget revenue targets for 2025 have been increased by 2,813.3 billion MNT compared to the revised 2024 budget, affected by an increase in customs and tax revenue by 2,986.7 billion MNT, while reducing foreign aid revenue by 141.0 billion MNT and other revenues by 32.4 billion MNT. The state audit organization concluded that the 2025 unified budget meets the criteria outlined in Article 23.1 of the Law on State Audit of Mongolia. The Minister of Finance, B. Javkhlan, continued presenting the budget drafts. He stated that the government found it essential to implement 14 mega projects to enhance economic infrastructure, boost development, and establish a robust legal framework through "Vision-2050" and the "New Revival Policy," aiming for stable execution while improving investment, business environment, and regional development policies. The key differences in the 2025 budget include: 1. Major infrastructure projects aimed at regional development and economic integration were prioritized. Instead of fragmented small investments at the province and district levels, investments will support regional development and decongestion of Ulaanbaatar City by focusing on major projects that enhance business environments and attract investments. By 2028, an additional 4440 km of paved roads will be completed in Mongolia. In the energy sector, 1650.9 MW of new electric and thermal power sources will be developed, with 1519 km of new electricity transmission lines. 2. Specialized regional tax policies will be implemented to set 20 different tax types variably according to regional specifics, enhancing the independence of local budgets, enabling regions to attract investments independently, and providing fiscal competition. 3. Addressing challenges in the capital city, over the next four years, a total investment of over 30 trillion MNT is planned. The 2025 budget proposes investing 4.5 trillion MNT specifically in Ulaanbaatar to tackle congestion, air, soil, and water pollution by supporting large-scale projects like the "Hoshingiin Valley Tunnel" and "Upward Mongolia" cable-stayed bridge through government debt guarantees. Public transport projects, including a "Metro" project, proposed highways, and new ring roads, will also be carried out using local sources and public-private partnerships. Such measures are expected to reduce air pollution by around 22%, increase public transport accessibility, resolve congestion issues, and provide infrastructure for building 37,000 apartment units, ultimately creating jobs and supporting private business environments. Mongolia is planning to export 83 million tons of coal next year. With the policies outlined in the draft law on the 2025 budget of Mongolia, it is estimated to export 83 million tons of coal and 1.8 million tons of copper concentrate next year, aiming for a total foreign trade turnover of 32.8 billion USD, achieving an economic growth projection of 8.0%, and total unified budget revenue of 36.8 trillion MNT. In discussions on this issue, member G. Temuulen inquired about the audit's conclusion on current budget expenses and sought clarification on the 6.4 trillion MNT receivables reflected in the state’s audit report. Leading Auditor C. Naranchimeg stated that current budget expenses have increased by 3.5 trillion MNT, with 21% being salaries, 50% facility use, 69% procurement, and 46% travel-related expenses. The state audit organization advised the Ministry of Finance and budget supervisors to prepare budgets based on the guidelines and limits set by the Khural, while improving budget planning quality and maintaining fiscal discipline. She also noted that in the 2023 consolidated financial report of the Mongolian government, there are receivables of 6.4 trillion MNT, with a risky 449.4 billion MNT potentially becoming non-collectible. State-owned companies have a receivable balance of 2.7 trillion MNT, which needs to be addressed. Member J. Bayarmaa asked about the total cost of the satellite project financing and what portion of the loans are concessional. L. Gantogtokh, the director of the Debt Management Department of the Ministry of Finance, responded that the project financing discussions are ongoing, with an estimated total cost of 225.2 million euros. Of this, 82.7 million euros are concessional loans from the French government, with a 0.883% interest over 20 years. Additional loans include ordinary terms from the French Treasury and commercial banks, totaling 106.2 million euros, with 25 million euros from the Treasury and 81 million euros from commercial banks on commercial terms. Thus, as required by Article 71 of the Law on the Procedures of the State Great Khural Sessions, findings and suggestions from other standing committees and the Budgetary Expenditure Oversight Subcommittee regarding the second discussions of the draft laws have been submitted to the relevant Standing Committee. Following this, Standing Committee Chairman Ts. Davaasuren presented the working group's report prepared for the second discussion of the draft laws. The working group, composed of 25 members, was formed under a 2024 directive to prepare discussions for the umbrella draft laws submitted alongside the 2024 budget proposal. The working group convened on October 21, 22, and 29, 2024, dividing into three sub-working groups focusing on investment, current expenses, and budget revenue generation, adopting certain principles and resolving issues through majority votes. Votes were cast on several suggestions put forth by the working group, including the proposal to reallocate budgets among primary managers without increasing expenses, supported by the majority of the session participants. This included reallocating 16,492.5 million MNT from the Education Minister’s package concerning certain research institutions to the First Vice Prime Minister’s package. Suggestions from the working group, such as reallocating 49.8 billion MNT from the Small and Medium-Sized Enterprise Development Fund towards subsidizing interest rates on concessional loans, also received support. Adjustments to investment projects and programs or making necessary changes to the draft law in light of the formulated principled differences were endorsed by the majority of the participants. The committee’s stance and conclusions will be presented by Ts. Davaasuren to the upcoming unified session. The session ended with the first discussion of the draft law amending the 2025 budget framework statement and 2026-2027 budget projections legislation. No further questions or suggestions were tabled regarding the draft laws, meaning that the proposals and conclusions of the Budget Standing Committee, led by Member Z. Mendsaikhan, will be addressed in the plenary session as reported by the media office of the State Great Khural.

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Trafigura's Employees in Mongolia Involved in Fraud Scheme

Published: 2024-10-31 | Translated from: news.mn

The commodity trading giant Trafigura group has discovered that its employees involved in its oil business in Mongolia have been linked to a fraud scheme. As a result, the company is estimated to have incurred a loss of 1.1 billion USD. The company had already lost 500 million USD due to a nickel-related fraud less than two years ago. It was revealed that some of Trafigura's employees in Mongolia altered information and documents to inflate the amount of money they had paid, and intentionally concealed overdue debts for five years. This issue was first discovered at the end of 2023. The shares of the company are owned by approximately 1,400 employees. The company aims to consistently earn high profits to pay its employees' pensions. However, the loss in Mongolia has greatly impacted its revenue, which had already been decreasing due to market instability. The company had announced a profit of 1.47 billion USD for the first half of the year. It was estimated that the full-year profit in December would be around two billion USD or more. Trafigura has been one of the largest fuel suppliers in Mongolia, competing with companies such as Gunvor Group and Rosneft PJSC. In connection with the above case, several employees at the office in Ulaanbaatar have been suspended from their jobs. Trafigura's head in Mongolia, Mikhail Zeldovich, has also resigned from his position.

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Diplomacy

North Korea May Have Launched Intercontinental Ballistic Missile

Published: 2024-10-31 | Translated from: montsame.mn

North Korea launched what is presumed to be an intercontinental ballistic missile (ICBM) towards the Sea of Japan, just hours after South Korean and U.S. defense ministers condemned North Korea's deployment of troops to Russia. According to the Joint Chiefs of Staff (JCS) in South Korea, the missile was detected being launched from the Pyongyang area of North Korea at around 7:10 AM. The JCS's statement to journalists suggested the missile was launched on a vertical trajectory, indicating it might be an ICBM. "Our army is swiftly exchanging information concerning North Korea's ballistic missile with the United States and Japan and is on full combat readiness," the committee stated. The missile launch occurred just a few hours after South Korean and U.S. defense ministers strongly condemned North Korea's deployment of troops to Russia during allied talks held at the Pentagon on Wednesday. North Korea last launched short-range ballistic missiles on September 18, and an ICBM on December 18 of last year.

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Operating and Temporary Closure Days of Border Crossings in November

Published: 2024-10-31 | Translated from: ikon.mn

The General Authority for Border Protection has released information regarding the operating schedule and temporary closure days of border crossings in November 2024. Specifically, some border crossings will temporarily close on November 2, the day celebrating the birth of the Great Genghis Khan, and November 26, Republic Day. Additionally, the border crossings of Khankh, Tsagaanuur, and Ulkhan will be temporarily closed on November 4 for the Russian People's Unity Day. Warning: Media organizations (TV, Radio, Social and Web pages) must mention the source (ikon.mn) when fully or partially using our information in any form.

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About 400 foreign companies and individuals added to U.S. blacklist for supporting Russian invasion

Published: 2024-10-31 | Translated from: ikon.mn

The U.S. administration has sanctioned approximately 400 individuals and organizations for providing technological support to Russia's military operations in the invasion of Ukraine. The U.S. Department of the Treasury first announced the addition of 275 citizens and businesses from countries including India, China, Switzerland, and Turkey to its "blacklist." "The United States and our allies will continue to take decisive measures worldwide to halt the flow of equipment and technology essential for Russia's illegal and immoral war against Ukraine. With today's actions, we aim to degrade Russia's war machine's capabilities and stop those seeking to circumvent or evade our sanctions and export controls," said U.S. Deputy Secretary of the Treasury Wally Adeyemo. Following this, the U.S. Department of State announced an expansion of the scope of these sanctions. "Together with our allies and partners, we are adding to our comprehensive set of sanctions and imposing penalties on approximately 400 individuals and organizations supporting Russia's unlawful war against Ukraine," stated Secretary of State Antony Blinken. He further stated that "The State Department is sanctioning several entities from third countries and high-ranking officials of the Russian Ministry of Defense, defense sector companies, and those supporting Russia's future energy production and export sectors." The U.S. Department of Commerce subsequently announced trade sanctions against 40 foreign entities. The department has taken measures to tighten restrictions on 49 companies from countries including China, the United Kingdom, and the United Arab Emirates that supply U.S. microelectronics and other high-tech goods to Russia. "American products should not end up in the hands of those who support Russia's defense industrial base," noted Alan Estevez, Under Secretary of Commerce for Industry and Security, in his statement.

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Met with IFC's Vice President Ricardo Puliti

Published: 2024-10-31 | Translated from: gogo.mn

President of the Bank of Mongolia, Mr. Lkhagvasuren Bayarsaikhan, along with other representatives, held official meetings with Ricardo Puliti, Vice President of the International Finance Corporation, and Manuela Ferro, Vice President for East Asia and the Pacific at the World Bank, in Washington D.C., USA, as part of their participation in the annual meetings of the International Monetary Fund and the World Bank. During the meeting, they discussed the economic situation and outlook of Mongolia. President Lkhagvasuren noted that Mongolia's inflation rate is at 6.7% as of the end of September 2024, maintaining the Central Bank's target level, and predicted a GDP growth of 7-8% in 2025. He also highlighted that Mongolia plans to implement 14 mega projects worth 30 billion USD in the coming years and stressed the openness to cooperate with international financial institutions to successfully implement and expand these projects. The World Bank and IFC expressed their positions on studying projects that reduce the impact of climate change and discussed possibilities to support small and medium-sized businesses during the meetings.

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President of Bank of Mongolia Meets with IFC Vice President Ricardo Puliti

Published: 2024-10-31 | Translated from: ikon.mn

The President of the Bank of Mongolia, B. Lkhagvasuren, and other representatives held official meetings with Mr. Ricardo Puliti, Vice President of the International Finance Corporation, and Ms. Manuela Ferro, Vice President for East Asia and Pacific of the World Bank, while attending the annual meetings of the IMF and the World Bank in Washington, D.C., USA. During the meetings, they discussed the economic situation and outlook of Mongolia. President B. Lkhagvasuren mentioned that Mongolia's inflation is expected to be at 6.7% by the end of September 2024, which is within the target level set by the Central Bank, and that GDP is expected to grow by 7-8% in 2025. He also highlighted that Mongolia is planning to implement 14 mega projects valued at 30 billion USD in the coming years and emphasized Mongolia's openness to cooperate with international financial institutions to successfully implement and expand these projects. The World Bank and the IFC expressed their views and discussed the potential for studying projects to mitigate the effects of climate change and supporting small and medium business enterprises during the meetings. Warning: Media organizations (Television, Radio, Social, and Web pages) must be aware that if they use our information fully or partially, they are required to cite the source (ikon.mn).

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The Embassy Warns Mongolian Citizens in Spain to Ensure Their Safety and Be Vigilant

Published: 2024-10-31 | Translated from: ikon.mn

The Embassy has issued a warning for Mongolian citizens living in or temporarily staying in Spain to ensure their safety and remain vigilant. We deeply regret the significant loss of life and damage caused by the heavy rains in the region of Valencia in Spain. We urge all Mongolian citizens traveling to or living in Spain to carefully follow the information and recommendations provided by local authorities concerning the flood situation and to be extremely cautious about their own safety. Source: Embassy of Mongolia in the Republic of France Warning Media organizations (Television, Radio, Social and Websites) must mention our source (ikon.mn) when using our information in whole or in part.

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Meeting with representatives of a US consulting company on direct flights

Published: 2024-10-31 | Translated from: montsame.mn

Ulaanbaatar - State Secretary of the Ministry of Road and Transportation Development, S. Batbold, and the Director of the Civil Aviation Authority, Ch. Mönkhtuya, met with representatives of the US consulting company "Vix Group Consulting." The meeting was part of efforts to establish direct flights from Mongolia to the United States. Specifically, the meeting discussed the report on the basic evaluation results and recommendations prepared by "Vix Group Consulting" in line with the US Federal Aviation Administration (FAA) International Aviation Safety Assessment (IASA) program. Representatives of "Vix Group Consulting" explained that there are forthcoming tasks regarding laws, regulations, investment, and training to successfully participate in the (IASA) evaluation jointly with the Civil Aviation Authority and "MIAT" State Owned Aviation Company. They noted that an 18-month period is required for preparation and positively evaluated the progress of preparations. It was also emphasized that the second phase of consultancy services would be funded by the US Trade and Development Agency, and support was requested from the Mongolian side to pass resolutions concerning this. They requested policy-level support to ensure the timely and professional preparation for civil aviation assessments. State Secretary S. Batbold expressed commitment on the part of the ministry to implement regulations, legal alignments, staffing, and investments as outlined in the report and agreed to strengthen cooperation until the assessments are completed. Under the framework of establishing direct flights from Mongolia to the US, comprehensive actions will be taken to align regulations, inspectors' guidelines, issue new certifications as required, train personnel, and invest in airport technology in accordance with the standards and recommendations of the International Civil Aviation Organization.

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Vice Chairman of the State Great Khural, B.Purevdorj, Meets with the Head of the Italy-Mongolia Parliamentary Friendship Group

Published: 2024-10-31 | Translated from: montsame.mn

Vice Chairman of the State Great Khural (SGK), B. Purevdorj, received Mr. Nicola Care, a member of the Chamber of Deputies of the Republic of Italy and head of the Italy-Mongolia Parliamentary Friendship Group, today. Vice Chairman B. Purevdorj served as the head of the Mongolia-Italian Parliamentary Friendship Group in the SGK during 2020-2024 and had gotten acquainted with and worked closely with Mr. Nicola Care at the time when he was a member of the Italy-Mongolia Parliamentary Group. At the beginning of the meeting, Vice Chairman B. Purevdorj expressed his joy over the appointment of a person well-versed in and supportive of Mongolia as the head of the Italy-Mongolia Parliamentary Group and provided a brief overview of the regular elections of the SGK, which has a mixed system and resulted in a parliament with 126 members. He introduced the newly organized leadership and members of the Mongolia-Italian Parliamentary Group in the SGK. He also highlighted his gratitude for the significant support and close cooperation he received from the head and members of the Italy-Mongolia parliamentary group during his term and appreciated their important contribution to the deepening of economic, business, and socio-cultural relations between the two countries. He noted the active cooperation in the cashmere sector, pointing out that the export of cashmere and cashmere products from Mongolia to Italy has increased from just 40 tons annually to 1200 tons. He urged Italian businesses to take advantage of the open opportunities to invest and collaborate with Mongolia. Moreover, Vice Chairman B. Purevdorj presented the inclusion of 14 mega projects in the Government of Mongolia's Action Program for 2024-2028 and the plan to implement over 350 sub-projects aimed at ensuring economic growth, emphasizing the readiness to work together in achieving these development goals. Member of the Chamber of Deputies of Italy, Nicola Care, expressed pleasure in meeting his friend again and conveyed the greetings of the Speaker of the Chamber of Deputies to the SGK Vice Chairman. He noted that Italy ranks high in industrial development globally and has observed the increasing demand for industrial technology in Mongolia in recent years. He mentioned potential cooperation in this area, as well as in fields such as defense, architecture, and recycling. He expressed confidence that the Government of Mongolia will successfully implement its major goals, and underlined Italy's willingness to assist and collaborate, even slightly, in this endeavor. The meeting was attended by H.E. Giovanna Piccareta, the Ambassador Extraordinary and Plenipotentiary of the Republic of Italy to Mongolia, according to the SGK Media Department.

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Mongolian and Italian Parliamentary Groups Discuss Intensifying Cooperation with New Content

Published: 2024-10-31 | Translated from: montsame.mn

MP A. Undraa, head of the Mongolia-Italy Parliamentary Group in the State Great Khural, and Deputy Chair D. Purevdavaa welcomed visitors led by Nicola Care, a member of the Chamber of Deputies of the Italian Parliament, today. In the beginning of the meeting, Mr. Nicola Care expressed his gratitude that they were able to meet during the busy period of the budget discussions for the coming year and highlighted initiatives for expanding and developing cooperation in diverse ways, as the head of the Italy-Mongolia parliamentary group. MP A. Undraa expressed her confidence that the parliamentary groups of the two countries will actively lead the expansion of relations between the legislative institutions with new content. She further emphasized that although our two countries are geographically distant, they are intellectual neighbors due to the shared values of human rights and democracy, and mentioned mutually beneficial opportunities in the economic and business sectors. Additionally, she conveyed the desire to learn from experience and collaborate in fields such as science, agriculture, urban planning, and construction development. During the meeting, Nicola Care of the Italian Chamber of Deputies highlighted the expansion of business and economic cooperation between the two countries and noted the increasing export volume of cashmere and cashmere products. Furthermore, both parties exchanged ideas on good practices for reducing air pollution and agreed to continue working together to support sustainable development by implementing green housing and green building standards, according to the State Great Khural's Press and Information Department.

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Ambassador S. Sukhbold Presented His Credentials

Published: 2024-10-31 | Translated from: montsame.mn

Ambassador Extraordinary and Plenipotentiary of Mongolia to the Republic of Korea, S. Sukhbold, presented his credentials to the President of the Republic of Korea, Yoon Suk-yeol, on the 28th of this month. Ambassador S. Sukhbold conveyed the greetings of the President of Mongolia, U. Khurelsukh, to President Yoon Suk-yeol, and reiterated President U. Khurelsukh's invitation for President Yoon Suk-yeol to visit Mongolia in the near future, as part of the 35th anniversary of diplomatic relations between the two countries being celebrated next year. He expressed his intention to actively collaborate with the Blue House and the Ministry of Foreign Affairs of South Korea to schedule this state visit soon. On the same day, President Yoon Suk-yeol received Ambassador S. Sukhbold, along with ambassadors presenting their credentials from the Holy See, Paraguay, Bahrain, and other countries. During the meeting, they discussed pressing international issues and wished the ambassadors great success in their diplomatic endeavors. Source: Ministry of Foreign Affairs

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Mongolian and Italian Parliamentary Groups Exchange Proposals to Enhance Cooperation with New Content

Published: 2024-10-31 | Translated from: gogo.mn

Members of the State Great Khural, Chair of the Mongolia-Italy Parliamentary Group A. Undraa, and Deputy Chair D. Purevdavaa met with a delegation led by Nicola Care, a member of the Chamber of Deputies of the Italian Republic. At the beginning of the meeting, Mr. Nicola Care expressed gratitude for the opportunity to meet during the busy period of discussions on next year's budget and emphasized proposals and initiatives to broaden cooperation in various forms as the chair of the Italy-Mongolia Parliamentary Group. Member of Parliament A. Undraa expressed confidence that the parliamentary groups of the two countries will lead the way in expanding inter-legislative relations with new content through active initiatives. She further noted that despite the geographical distance between the two countries, they are "spiritual neighbors" due to their shared fundamental values of human rights and democracy, and she highlighted mutually beneficial opportunities in the economic and business sectors. Additionally, she expressed a desire to explore and collaborate in fields such as science, agriculture, urban planning, and construction. During the meeting, Italian Chamber of Deputies member Nicola Care emphasized the growing business and economic cooperation between the two countries, particularly highlighting the increasing export volume of cashmere and cashmere products. The parties also exchanged ideas on good practices for reducing air pollution and agreed to cooperate further in supporting sustainable development by adopting green housing and green building standards, according to the State Great Khural's Press Office.

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Infrastructure

Investment in Oil Refinery Project Increased by 431 Million USD

Published: 2024-10-31 | Translated from: news.mn

The construction of the oil refinery was first approved in 2017. However, since the construction began, the investment for the refinery has increased by 431 million USD. The Executive Director of Mongol Oil Refinery LLC, D. Altantsetseg, explained that the Government of India offered a 1 billion USD concessional loan for Mongolia's development, which led the Mongolian government to sign a general loan agreement with India's Export-Import Bank in April 2016, deciding to establish an oil refinery, subsequently approved by the Parliament of Mongolia in May 2017. Engineers India Limited, a company selected by the Ministry of Mining and Heavy Industry of Mongolia, conducted a detailed feasibility study of the refinery in 2017-2018, estimating the total cost at 1.236 billion USD. Following an agreement from the Indian side to cover the excess 236 million USD, an additional "Loan Agreement" was signed in October 2019. As of now, within the general loan agreement, contracts worth a total of 992.2 million USD have been concluded, with funding in progress amounting to 256.9 million USD. The construction project is being carried out in four phases considering infrastructure sequence, the complexity of buildings, and engineering time frames. The EPC1 work, which includes non-technological facilities such as reception buildings, medical centers, dining facilities, educational offices, warehouses, laboratories, water treatment plants, fire stations, and repair centers, is 99% complete. The EPC2 work, which includes primary processing and associated facilities like distillation units, gas separators, storage tanks, LPG storage tanks, loading and unloading facilities, and pipeline supports, is 17% complete. The EPC3 task, building the refinery's power plant, is 14% complete, while the EPC4 work, involving technology-enabled facilities with deep processing licensure, is 8% complete. The general contractor for EPC2 and EPC3, Megha Engineering and Infrastructure Limited of India, began construction in April 2023. As part of the EPC2 package, foundational construction for storage tanks, substations, and pipeline supports has been completed, with current work on assembling tank plates and armature assemblies progressing. The project intends to support refinery operations with a 530 km crude oil pipeline by Norinco International Cooperation from China, funded by income from coal pre-sales by Erdenes Tavantolgoi JSC following a government decision in 2022, with the project execution at 65%. For infrastructural development linked to the refinery, financing was decided through a Development Bank loan, with a 250 billion MNT loan agreement signed in 2018. This loan funded 100% of expenses for the Sainshand-Refinery railway, special heavy-duty road, power transmission lines, substations, and security areas, and 61% of the expenses for the construction of facilities for 550 workers. The loan was halted in November 2022 but resumed in July 2023 after collateral valuation was increased by 5.2 billion MNT.

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Oil Refinery EPC1 Work Progress at 99 Percent

Published: 2024-10-31 | Translated from: montsame.mn

At the meeting of the Industrial Policy Standing Committee of the State Great Khural, the response to the question addressed to the Prime Minister by MP L. Munkhbayasgalan was heard. The response was presented at the committee meeting by D. Altantsetseg, Executive Director of the "Mongol Oil Refinery" SOE. Following the decision by the Government of the Republic of India to provide a concessional loan of USD 1 billion for Mongolia's development, the Government of Mongolia signed a General Loan Agreement with the Exim Bank of India in April 2016 to establish an oil refinery. The State Great Khural ratified it in May 2017. The "Engineers India Limited" company, selected by the Ministry of Mining and Heavy Industry of Mongolia, estimated the total cost of detailed engineering and economic feasibility studies for the refinery at USD 1.236 billion in 2017-2018. As the Indian side agreed to the additional cost of USD 236 million, an additional loan agreement was concluded in October 2019. So far, contracts worth a total of USD 992.2 million have been signed under the General Loan Agreement, with a contract financing performance of USD 256.9 million. The construction of the oil refinery project in Altanshiree soum of Dornogovi aimag is divided into four parts. Non-technological building constructions under EPC1, such as reception building, clinic, canteen, office training center, warehouse, laboratory, clean water system, fire department, and repair shop, are 99% complete. Primary process and ancillary facilities such as atmospheric and vacuum distillation units, gas extraction units, intermediate and finished product tanks, liquefied flammable gas storage tanks, product loading and unloading facilities, and pipeline supports, under EPC2, are 17% complete. The construction of the refinery's power plant under EPC3 is 14% complete, and the EPC4 work on deep processing-licensed technological facilities is 8% complete. The main contractor for EPC2 and EPC3 packages, "Megha Engineering and Infrastructure Limited" of India, signed an agreement in October 2022 and began construction and installation work in April 2023. As part of the EPC2 package, warehouse tank reservoirs, substations, and pipeline support foundations have been completed, with plate installation ongoing. The foundation concrete casting for ancillary facilities and supply structures is complete, and the installation of reinforcement floors is in progress. Refinery equipment is being manufactured in India, France, the USA, and Australia. For EPC3, the thermal power plant's steam boilers were ordered from the UK, and turbine generators from German technology companies. "Megha Engineering and Infrastructure Limited" proposed the lowest bid of USD 648 million for EPC4. With this price, the total investment of the project rose to USD 1.656.8 billion, about 34% more than the originally estimated amount in the General and Supplementary Loan agreements. This increment of USD 431 million in investment was influenced by factors like global market downturns, price increases, and the need to enhance project efficiency. Each package was tendered separately, and general contractors were selected, leading to delays due to the initial high cost estimates, which were negotiated down by USD 164.5 million in total, according to D. Altantsetseg. The critical issue remaining is the additional financing required for EPC4, for which a request for increased concessional loan funding was sent to the Government of India. The response is pending and could potentially delay the refinery's commissioning. As part of the refinery project, a 530 km pipeline to supply the refinery with crude oil is being constructed by China's "Norinco International Cooperation." This project is being financed by revenue from pre-sold coal by "Erdenes Tavantolgoi" JSC, as decided by the Government in 2022, with 65% project completion to date. The infrastructure development for the refinery is being financed by a loan from the Development Bank, which signed a loan agreement of MNT 250 billion in 2018. This funding has fully covered the Sainshand-Refinery railway, heavy-duty special-purpose highway, power transmission lines, and substations, as well as 61% of the cost of building a 550-worker housing complex. The loan was halted in November 2022, but after increasing the collateral evaluation by MNT 5.2 billion, disbursement resumed in July 2023. "Mongol Oil Refinery" SOE's Executive Director, D. Altantsetseg, noted that this project was initiated to address the social issues of young families and provide housing, as most of the 500-600 workers at the refinery in Sainshand will be young people.

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Some border crossings will be temporarily closed twice next month

Published: 2024-10-31 | Translated from: montsame.mn

In Ulaanbaatar, certain border crossings of Mongolia will be temporarily closed twice next month. Specifically, on November 2, during the day celebrating the birth of Genghis Khan, known as Mongolian Pride Day, and on November 26, for Republic Day, the road border crossings that connect with Russia and China will be temporarily closed.

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The closure of traffic on the old Zaisan bridge from November 8th to December 1st

Published: 2024-10-31 | Translated from: ikon.mn

Traffic on the old (east side) Zaisan bridge will be closed from November 8 to December 1, 2024, to carry out the work of connecting the sewer system used by the residents of Zaisan to a newly installed pipeline. Previously, it was announced that traffic on the old Zaisan bridge would be closed and dismantled starting November 1, 2024. B. Jargalduren, a bridge monitoring specialist at the Ulaanbaatar City Road Development Agency, stated: "Since 2022, the project to renew and twin the Zaisan bridge has begun. As part of this, the new bridge on the west side was built and opened to traffic, as you all know. The plan is to dismantle and rebuild the old bridge on the east side in 2025. Prior to this, traffic on the old bridge will be closed from November 8 to December 1, 2024, to connect the Zaisan residents' sewer line to the new pipeline. Thus, the bridge's traffic will be reopened by December 1. After the peak load has decreased, preparations are underway to completely close and dismantle the old Zaisan bridge again in January 2025." The old Zaisan bridge was put into operation in 1968 and has been rated below a D grade, signifying the necessity for the bridge’s complete dismantlement and reconstruction. Note: Media organizations (Television, Radio, Social and Web pages) must cite the source (ikon.mn) if using our information in full or in part.

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Society

N. Nomtoibayar: Last year, 8,200 businesses closed, and 13,000 citizens emigrated

Published: 2024-10-31 | Translated from: isee.mn

Members of the National Alliance in the Parliament held a briefing. During this, Member of Parliament N. Nomtoibayar stated, "We are currently discussing the Law on Nuclear Energy. It has been decided to support this law. However, there are several considerations to take into account when making an agreement with the French government and working with a French company to extract uranium. Numerous issues have arisen connected to the Oyu Tolgoi agreement established 15 years ago. Mistakes and shortcomings cannot be denied. Therefore, it is crucial to protect Mongolia's fundamental interests in international agreements and treaties. It is clear that there is no mutual economic cooperation. We hope that with the uranium project, there will be no political disputes, corruption, or bribery that followed the mistakes of Oyu Tolgoi, and we support it considering its economic significance to the country," he said. Continuing on this topic, Member of Parliament A. Undraa mentioned, "Mongolia and France signed an agreement to collaborate on a uranium project 10 years ago. The work specified in the agreement has been delayed during this period. For instance, due to irresponsible actions by the Mongolian government leading to the cancellation of the operations of Khan Resources, a French company, a significant debt burden resulted. The world's largest mining company also left Mongolia. Currently, 8 companies have mining licenses in Mongolia. These companies must change their operations according to the law. We are not changing the law for a single company but to attract major investments in this sector. The contract with Orano Mining covers a wide range, including uranium extraction, underground leach mining, conversion, nuclear fuel research, jointly establishing nuclear power plants, and preparing human resources. Therefore, these aspects must be incorporated into the legal amendments. Human resources and specialists must be prepared and must be involved. There is concern over the potential contamination of underground water. This requires professional oversight. On the other hand, one ton of uranium is valued at 200 thousand dollars. In this sense, it has significant economic importance," she explained. Regarding the 2025 budget, Member of Parliament N. Nomtoibayar stated, "We are discussing the 2025 national budget in the Parliament. This is the first national budget to be discussed by the 126-member Parliament established under the new Constitution. The public has not placed trust or expectations in our parliament. Therefore, this parliament must work to earn the trust of its people. The very first task is the national budget. The traditional approach towards the budget must not be followed. Last year's spending is reaching 30 trillion this year. Income assurance is not guaranteed. The main economic reliance is on the export of raw coal. However, in the past two years, coal prices have steadily declined. Optimistic projections for coal prices were made. Eventually, when income and expenses mismatch, inflation is incited, the currency depreciates, and people lose purchasing power from their salaries and pensions. Welfare, social insurance contributions, and taxes will not decrease. In contrast, the economically active population is decreasing. Last year, 8,200 businesses closed their doors. Consequently, 26,000 people were left unemployed, and 13,000 citizens emigrated. There is excessive and wasteful spending. Many expenses could be avoided. We propose a principle. The Education Loan Fund has a budget of 157 billion MNT. Given the shortage of skilled personnel, this fund's budget needs to be increased to prepare skilled professionals," he said.

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"Modern Mongolia 2024" Event Held in Dubai to Promote Mongolia

Published: 2024-10-31 | Translated from: isee.mn

In Dubai city, the "Modern Mongolia 2024" event was organized to promote Mongolia. As part of the goal to enhance tourism and cultural cooperation between Mongolia and the United Arab Emirates, and to disseminate Mongolia's national pride and cultural heritage—specifically art, handicrafts, and wool and cashmere products to the world market—a project named "MODERN MONGOLIA 2024" was initiated by Mongolia’s Cultural Envoy B. Gantogoo. This project was organized in collaboration with the Embassy of Mongolia in the UAE and the BZ showroom. The first phase of this event took place at the Kempinski Hotel inside Dubai Mall. Representatives from countries including Canada, Korea, the Arab states, and India participated and were highly impressed by the products from small and medium-sized enterprises showcased at the "MODERN MONGOLIA 2024" event. During the ceremony, Mirza Al Sayegh, Chief of Staff for the office of the Crown Prince, His Highness Sheikh Hamdan bin Rashid Al Maktoum, and a member of the Governing Board, highlighted the continuous and successful efforts to promote Mongolia’s culture, art, tourism, and national brands, including wool and cashmere, in the UAE and Gulf countries. In recognition of these efforts, he awarded the "EXCELLENCE CULTURE" prize to Mongolia’s Cultural Envoy B. Gantogoo. The "MODERN MONGOLIA 2024" event to promote Mongolia and showcase national brand products was organized in three phases and will continue until December 20 of this year.

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Number of Mongolian Students Involved in Criminal Cases in China Increases

Published: 2024-10-31 | Translated from: news.mn

The police have issued a warning that the number of students studying in China who become either victims or perpetrators of cybercrime is on the rise. Specifically, students studying in China on government scholarships have been receiving large sums of money from unknown Chinese individuals and transferring them to named individuals in Mongolia. As a result, these students are being investigated by China's law enforcement agencies for involvement in criminal cases, facing account freezes and closures, and ultimately becoming victims of cybercrime. In light of this, it is essential for students studying in China, as well as citizens and businesses involved in international monetary transactions, to exercise caution and protect themselves and others from becoming victims or perpetrators of cybercrime. While the minimum age for criminal responsibility in China is 16, there are regulations that allow for children over the age of 14 to be held criminally responsible for serious crimes such as murder, assault, rape, and robbery.

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MPA: Students Studying in China Increasingly Becoming Victims and Perpetrators of Cybercrime

Published: 2024-10-31 | Translated from: ikon.mn

The police have issued a warning that students studying in China are increasingly becoming victims and perpetrators of cybercrime. Specifically, students studying in China with government scholarships are receiving large money transfers from unknown Chinese individuals to their bank accounts and then transferring these funds to certain named Mongolian citizens. As a result, these students are being investigated by law enforcement agencies for criminal activities in China, leading to their bank accounts being frozen or closed, and eventually becoming victims of cybercrime. This trend has been increasing recently. In connection with this, police have cautioned students and individuals, as well as business entities studying or operating in China, to be very careful when conducting international money transfers, and to take measures to prevent themselves and others from becoming victims or perpetrators of cybercrime. Warning: Media outlets (TV, Radio, Social, and Web pages) must always cite their source (ikon.mn) when using our information in any form, whether entirely or in part.

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CIP: Increase in Cybercrime Victimization Among Students Studying in China

Published: 2024-10-31 | Translated from: gogo.mn

The police department has issued a warning that students studying in China are increasingly becoming victims of cybercrimes. Specifically, students in the People's Republic of China who are studying on government scholarships have been receiving large sums of money in their bank accounts from unknown Chinese individuals. They then transfer these funds to certain named individuals in Mongolia, resulting in criminal investigations by the legal authorities of the host country. This situation has led to accounts being frozen, closed, and eventually the students becoming victims of cybercrimes. Such occurrences have been on the rise recently. In connection with this, the police department has advised students studying in China as well as citizens and businesses to exercise caution when conducting international financial transactions. People are urged to protect themselves and others from becoming victims or perpetrators of cybercrimes.

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Woolen Products, Cranberries, and Sea Buckthorn from Mongolia to Be Sent for International Humanitarian Aid

Published: 2024-10-31 | Translated from: isee.mn

The 34th International Conference of the Red Cross and Red Crescent Movement is continuing its second day in Geneva, Switzerland. Participants from the Mongolian Red Cross Society include Secretary-General N. Bolormaa, Director of the Partnership and Resource Development Department B. Tuyatsetseg, and Head of the Volunteer Development Support Team O. Bilguun. During the conference, Secretary-General N. Bolormaa participated in the discussion on 'Implementation of International Humanitarian Law', sharing insights on the activities, achievements, and challenges of the National Society. Additionally, Secretary-General N. Bolormaa held a work meeting with Jagan Chapagain, Secretary-General of the International Federation of Red Cross and Red Crescent Societies. Further discussions took place with Jacques De Maio, Director for the Asia-Pacific region of the International Committee of the Red Cross. They discussed the inclusion of Mongolian woolen products, cranberries, and sea buckthorn in humanitarian aid packages and considered the possibility of establishing a Northeast Asian warehouse center in Mongolia.

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Environment

Opportunities and Solutions for Developing Intensive Dairy Farming Forum Held

Published: 2024-10-31 | Translated from: ikon.mn

Global Civic Sharing, in collaboration with the Mongolian Food Industry Association, is implementing the "Inclusive Livestock Project," funded by KOICA. As part of this initiative, a forum on the master plan for developing intensive dairy farming was organized today in the 21st district of Songinokhairkhan. The forum was attended by representatives from the Ministry of Food, Agriculture and Light Industry, the UN's Food and Agriculture Organization, the Capital City Agency for Food and Agriculture, members of the Citizens' Representatives Council, scientific and non-governmental organizations, and business representatives. The vice president of the Mongolian Food Industry Association, head of the Dairy Professional Council, and Executive Director of Suu JSC, B. Gantulga, gave a presentation on "Opportunities and Solutions for Strengthening the Value Chain of Milk and Dairy Products." In his presentation, he proposed extending the seasonal milk bonus period to months other than June, July, and August; granting virgin land to farmers and milk supply cooperatives; supporting feed crop cultivation with assistance in irrigation systems, seed discounts, and equipment; and supporting the establishment of specialized farms such as calf farms, heifer farms, and breeding/genetic farms. These measures aim to ensure the preparation and supply of quality milk regardless of the season, allowing herders and farmers to prepare their own feed at a low cost, improving profitability. By focusing only on feeding dairy cows and not on unprofitable livestock, productivity will increase. Additionally, separating the care of calves and heifers will create opportunities to develop high-potential dairy cows in the future.

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S.Ganbaatar: Africa is full of countries that have impoverished themselves by extracting yellowcake. If we're becoming one of them, please stop this craziness.

Published: 2024-10-31 | Translated from: ikon.mn

During today's session of the State Great Khural, discussions are being held on the draft law to amend the Law on Nuclear Energy in connection with the negotiations with the French group Orano. Here, we present the responses to members' questions about this bill. Member of the State Great Khural S. Ganbaatar: Our people talked a lot about the mistakes at Oyu Tolgoi, and they were right. The biggest mistake is about to happen with uranium. The biggest mistake at Oyu Tolgoi was that Mongolians were aware of their ignorance. Now, stop pretending to know about uranium and ask if an independent impartial expert conclusion has been made. I respect Minister N. Uchral. I worry that he might become one of those people who made a contract with Oyu Tolgoi and then fled to the USA. We cannot let the history of destiny play tricks on us. Even if we see someone who understands uranium and has made contracts, they cannot be found again. Politicians often talk around the independent conclusions of international and national expert evaluators. The biggest mistake at Oyu Tolgoi was not producing an independent expert conclusion, and politicians discussed it. There were politicians who traveled abroad thinking themselves smart, coming back and talking about changing laws. We should not rush with uranium. The words "SOLELY at the disposal of the people" are enshrined in Article 6.2 of the Constitution. The decision on environmental issues cannot be made by the 126 members without consulting the entire public. Electricity from uranium will not happen. We are a people who will produce and transport yellowcake. Can Mongolians get cheap electricity? Africa is full of countries impoverished by extracting yellowcake. If we are becoming one of them, please stop this madness. The 34% is being talked around. I argued that we could reduce the 34% to 0 and instead collect a higher royalty of 15% at Oyu Tolgoi. Our profit is generally said to be three billion USD. If we say we'll earn three billion USD from uranium in 30 years, it means we earn more money from coal. We should not dig for this. Chief of the Government’s Cabinet Secretariat N. Uchral: I acknowledge the concerns of Member S. Ganbaatar with respect. The uranium project should be improved compared to the Oyu Tolgoi agreement. If a certain part of the 34% state ownership had been substituted with royalty at that time, people would have received dividends instead, which have grown significantly compared to the initial 800 million USD obtained from 2.8 billion USD in sales. We wish to conduct the negotiations correctly under the nuclear energy law. Regardless of any risks, the result should bring benefits to the people of Mongolia, rather than waiting passively for a 34% dividend. The working group negotiating with the other side wishes to maintain an increasing royalty scheme. Today there's talk of changing the base 5% royalty as outlined in your law. This is not a contract discussion. With the enactment of the nuclear energy law, we open wide possibilities for further negotiations in this sector. The investment agreement is not the focus. I've led the working group for two years. The French company opened its representative office in 1997, obtained a special permit in 2003, and started a shareholder agreement in 2013. During N. Altankhuyag's time as Prime Minister, a working group of over 100 people was formed, and a substantial expert conclusion was produced, allowing work to progress significantly. Kazakhstan, which started from the same point, has now led the world in uranium extraction. We have been negotiating for 27 years, and the working group has been working attentively. Director of "Mon Atom" LLC D. Dalaijargal: An international assessment was carried out by a Canadian company in 2018 and presented at a Cabinet meeting. In 2020, representatives of the International Atomic Energy Agency arrived and were presented at the Cabinet meeting. A total of seven international and domestic evaluations have been conducted. We will only produce yellowcake. The enrichment to become nuclear fuel or fuel for nuclear power plants is done by five countries. Only the five countries of the UN Security Council can do this. No other country can turn it into fuel.

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Opening of the Naransavstain Checkpoint Will Lead to Irreversible Extinction of the Mazaalai Bear

Published: 2024-10-31 | Translated from: gogo.mn

The plan to open the Naransavstain Checkpoint in the Great Gobi Strictly Protected Area, included in the Government's action plan, is threatening critically endangered species, putting the ecosystem at risk, and violating international treaties and national laws that Mongolia is a part of, environmental NGOs and researchers are protesting. They have submitted a formal request to the State Great Hural and the National Security Council and held a press conference by the Mongolian Environmental Citizens' Council about their intention to appeal to the Constitutional Court. There are 37 species of animals in the Gobi Strictly Protected Area that must be preserved, including the black-tailed gazelle, argali, and ibex. During this time, researcher and Doctor N. Mijigdorj stated, "The fate of critically endangered species such as the Gobi Bear and Wild Bactrian Camel living in section A of the Great Gobi Strictly Protected Area is at risk of threats and pressure. This protected area was established in 1975. Many measures have been organized by international organizations and national research institutes in this region. This area is considered globally significant and has received much aid. There are rare species here that are not even present in zoos. Researchers are studying them thoroughly lately. Since 1940, detailed information about these animals has been produced, safeguarding their natural state. The distinctive features of the Gobi desert, sparse vegetation, rare wildlife, and delicate ecosystem prevail. Particularly, globally rare animals have managed to survive and find refuge in our country's Gobi. For instance, there are about 50 Gobi Bears and over 600 Wild Bactrian Camels. Besides these, there are 37 species of animals, including the black-tailed gazelle, argali, and ibex, that need to be preserved. If we wish to protect the Gobi animals, this checkpoint should not be opened. These animals are very skittish, sensitive, and alert. The Wild Bactrian Camel can hear sounds from 10-20 km away and can run 60-70 km to escape. However, the opening of this checkpoint will divide their habitat and migration routes. Additionally, springs and sources of water along the checkpoint could become polluted and dry up. Springs and water are vital in the Gobi. If the Gobi Bear and the Wild Bactrian Camel go extinct, they cannot be revived. The Wild Bactrian Camel migrates over a wide range. It is considered an "umbrella species." If we can protect this species, we can protect others. In history, the Naransavstain Checkpoint was opened in 1992 but closed in 1993. However, during that time, vehicle movement caused animals to flee and return. Also, the springs became polluted, and poaching started. This checkpoint was closed due to such considerable harm and risks. At the time, it was closed in consultation with the Chinese government. Such painful experiences still exist, and yet they are trying to reopen it, which is hard to understand. If we wish to protect the Gobi animals, this checkpoint should not be opened. Researchers are considering revisiting and canceling this decision. A lawyer stated, "Our nation has a lawful government that respects its constitution. Yet it is making decisions that breach and exceed constitutional laws. We are not opposing the entire joint government program of 2024-2028. However, we are opposed to the provision 3.3.2.8 of this program, which involves opening the Naransavstain Checkpoint. In strictly protected areas, observation-based research is allowed, but any other activities are prohibited. The animals living in the Gobi Strictly Protected Area are irreplaceable, irreparable, and irreversibly rare species. Observation-based research is allowed in strictly protected areas, but any other activities are prohibited. Why build a checkpoint in an area that has been strictly protected for 50 years? There are many solutions to this issue. There is the Burgastain Checkpoint in the Gobi, which is 300 km from Altai province. In contrast, the Naransavstain Checkpoint is located more than 600 km away. The capacity of the Burgastain Checkpoint can be improved and expanded. We are issuing demands to the State Great Hural, the Constitutional Court, and the National Security Council regarding environmental protection laws. Opening the Naransavstain Checkpoint would cause significant damage not only to wildlife but to humanity as well. There are the Burgastain and Shiveehüree Checkpoints on either side of this checkpoint. Yet, constructing a road and opening a checkpoint through a strictly protected area is a very wrong decision. We hope that the international treaties and conventions that Mongolia is a part of are implemented. According to researchers, creating conditions for the "Magnificent 6" animal species of the Gobi to migrate across vast spaces is a crucial conservation task. Mining resources overlap with habitats where endangered wild animals graze and live. While infrastructure and mining operations are economically beneficial, they severely impact wildlife. Strip-like infrastructures such as railways and roads block the free access of animals to water and pastures. Fences and barriers along railroads and roads prevent animals from grazing and drinking freely, affecting their numbers. Furthermore, they destroy their peaceful living environment, experts say.

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88,000 Tons of Improved Briquette Fuel Stocked

Published: 2024-10-31 | Translated from: itoim.mn

As of today, more than 80,000 tons of improved briquette fuel reserves have been established in the areas designated to improve the air quality of the capital, and 7,596 tons have been stocked in the industrial zone. The domestic transport of improved briquettes is carried out along three main routes: from the factory to the warehouse, from the factory to the sales point, and from the warehouse to the sales point. For this purpose, more than 280 vehicles from 29 companies and approximately 600 workers are transporting the improved fuel with an average frequency of three trips per day. A total of 650 sales points are operational. According to the 2024 inspection plan, "Tavan Tolgoi Fuel" LLC has conducted eight preventive analytical inspections and three unscheduled inspections in the production activities of the western, eastern, and central zones. During the inspections, samples of improved briquettes, binders, and middling were taken and subjected to 24 laboratory tests, resulting in 10 conclusions issued by the state inspector. The analysis concluded that the "Improved Solid Fuel meets the technical requirements of MNS 5679:2022 standard." So far, in the first half of 2024, 15 samples have been analyzed and evaluated. In additional information, the central zone factory of "Tavan Tolgoi Fuel" LLC has a capacity to produce 600,000 tons of improved fuel annually. On average, during the heating season, two lines are in operation, producing 600-800 tons of fuel. The eastern zone factory also has an annual production capacity of 600,000 tons of improved fuel. Currently, three lines are operating daily, producing a total of 2,100-2,300 tons of fuel.

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Stockpile of 88,000 Tons of Improved Briquettes Established

Published: 2024-10-31 | Translated from: itoim.mn

A stockpile of over 80,000 tons of improved briquettes has been established in the areas that aim to improve the air quality of the capital, and 7,596 tons in the industrial zone. The transportation of improved briquettes is conducted along three main routes: from the factory to the warehouse, from the factory to sales points, and from the warehouse to sales points. To achieve this, over 280 vehicles from 29 companies and approximately 600 employees are involved, transporting the fuel on average three times a day. There are a total of 650 sales points in operation. According to the 2024 inspection plan, the "Tavan Tolgoi Fuel" LLC's production activities in the western, eastern, and central zones have undergone preventative inspections eight times and unscheduled inspections three times. During these inspections, samples of improved briquettes, binders, and middlings were taken, with 24 samples subjected to laboratory analysis, resulting in 10 conclusions being issued by state inspectors. The analysis revealed that the "Improved Solid Fuel MNS 5679:2022" technical standard requirements were met. So far, 15 samples have been analyzed within the first half of 2024. Additionally, the central zone plant of "Tavan Tolgoi Fuel" LLC has an annual production capacity of 600,000 tons of improved fuel. During the heating season, an average of two lines operate, producing 600-800 tons of fuel. The eastern zone plant also has an annual capacity of 600,000 tons of improved briquettes. Currently, three lines are operating daily, producing a total of 2,100-2,300 tons of fuel.

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Discussion on the Development of Intensive Dairy Farming Held

Published: 2024-10-31 | Translated from: gogo.mn

Global Civic Sharing, an international organization, and the Mongolian Food Workers' Union are collaborating on the "Inclusive Livestock" project, financed by KOIKA, an international organization. Within the framework of this initiative, a forum was organized today in the 21st district of Songinokhairkhan to discuss the master plan for developing intensive dairy farming. Participants included representatives from the Ministry of Food, Agriculture and Light Industry, FAO of the United Nations, the Capital City Agriculture Department, City Council representatives, scientific research institutions, NGOs, and businesses. At today's forum, an address titled "Opportunities and Solutions for Strengthening the Value Chain of Dairy Products" was delivered by B. Gantulga, Vice President of the Mongolian Food Workers' Union, Chairman of the Dairy Professional Council, and CEO of Suu JSC. Through his presentation, several proposals were put forward: - Extending the seasonal milk bonus period to months other than June, July, and August; - Allocating virgin land to farmers and milk production cooperatives; - Providing support for planting animal feed, including irrigation systems, seed discounts, equipment, and technical assistance; - Supporting farm diversification, such as establishing calf farms, heifer farms, and breeding (genetic) farms. These measures aim to enable the production and supply of quality milk regardless of the season, allowing herders and farmers to prepare their feed cost-effectively, improve operational efficiency, and concentrate solely on feeding dairy cows. This approach is expected to lead to increased productive output. Additionally, by setting up separate facilities for raising calves and young heifers, it is anticipated that high-potential dairy cows can be developed in the future.

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Innovation

Will Acquire a Concessional Loan of 82.7 Million Euros and a Commercial Loan of 106.2 Million Euros for the National Satellite Project

Published: 2024-10-31 | Translated from: ikon.mn

During yesterday's meeting of the Budget Committee of the State Great Khural, the budget for the next year was discussed. At this time, Member of Parliament J. Bayarmaa inquired about the financing of the satellite project. Member of Parliament J. Bayarmaa: - A proposal was made to exclude a certain percentage of the funding required for launching the satellite from the 2025 budget. There are several things that need clarification in relation to this. How much does this satellite cost? What percentage of it is being financed through concessional loans based on bilateral agreements? What percentage is being borrowed from which banks with what interest rates? Head of Department of the Ministry of Finance, Mr. Gantogtokh: - The financing of the satellite project is in the negotiation stage. From the figures currently under negotiation, the total cost is 225.2 million euros. Of this, 82.7 million euros is being financed through a concessional loan from the French government's development agency, with an interest rate of 0.883% over 20 years. Additionally, the amount of loans being taken from the French government's treasury under normal conditions and from commercial banks totals 106.2 million euros. The loan from the French government treasury under normal conditions is valued at 25 million euros with a variable interest rate. The commercial loan from banks amounts to 81 million euros under commercial terms. Notice: When media organizations (Television, Radio, Social, and Web pages) use our information in any form, whether completely or partially, they must cite the source as ikom.mn.

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Flexi Business Product of LandMN BBSB JSC Nominated for Prestigious Award by the Monetary Authority of Singapore and the Fintech Association

Published: 2024-10-31 | Translated from: ikon.mn

The Flexi Business product of LandMN BBSB JSC has been nominated for the “Financial Inclusivity Award” jointly awarded by the Monetary Authority of Singapore and the Singapore Fintech Association, and has advanced to the final round. The 100% digital, unsecured loan solution designed for MSMEs, or micro, small, and medium enterprises, is recognized as having exceptional significance in increasing financial inclusivity in Southeast Asia and internationally. We met with C. Uuganbayar, the Executive Director of LandMN BBSB JSC, to talk about this achievement and the company’s future goals and aspirations. - Congratulations on being nominated for the most prestigious award in the financial sector of Singapore and Southeast Asia! How does it feel to receive this news? - Thank you. To be recognized by the Monetary Authority of Singapore and the Singapore Fintech Association is truly an honor. Being nominated alongside top global financial and fintech organizations and advancing to the final stage demonstrates the efforts of our team and the international recognition of the development and innovation within Mongolia’s fintech sector. Since LandMN was established, we have been dedicated to increasing financial inclusivity for millions through technology, and this nomination confirms that we are on the right path towards our goals. - Could you share the background of how the Flexi Business product was created and why LandMN decided to develop this product? - Flexi Business originated from the need to address the financial challenges that small and medium businesses in Mongolia often face. These businesses encounter significant difficulties in obtaining financing due to lack of collateral or sufficient credit history, making it difficult to grow their operations. The goal of Flexi Business is to provide a fully digital, unsecured, customer-friendly product that offers a fast, reliable, and flexible financial solution for these small and medium enterprises. - What are the unique features of the Flexi Business product that led to its nomination for such a prestigious award? - The defining characteristics of Flexi Business are its flexibility and 100% digital nature. We offer small and medium businesses a loan repayment schedule that fits their cash flow, and we use artificial intelligence for credit evaluation, eliminating the challenges of documents and time for business owners. This product has become a pioneering offering not only in Mongolia but also in Southeast Asia. - After nearly a year since Flexi Business was launched in Mongolia, how do you think it has impacted financial inclusivity in the country? - Enhancing financial inclusivity is the main goal of Flexi Business. By making financial services accessible to small and medium enterprises, we support the cash flow of countless such businesses which are the lifeblood of Mongolia’s economy. Our users are experiencing a fully digital service for the first time and, previously unable to obtain loans due to insufficient collateral, can now access financing quickly and with open and fair conditions thanks to artificial intelligence. This does not only benefit those businesses but also has ripple effects on suppliers, their employees, and families. - What significance does this nomination have for the fintech sector in Mongolia? - It is immensely meaningful. This nomination by the Monetary Authority of Singapore and the Singapore Fintech Association shows that LandMN is gaining international recognition and that the development of Mongolia’s fintech sector is beginning to set a precedent on the global stage. - What does the future hold for LandMN and Flexi Business? C. Uuganbayar: We have ambitious plans for the future. Building on the success of Flexi Business, we aim to offer more user-friendly solutions focused on the MSME sector. We are working to invest more in AI and data-driven technology to improve our platform’s efficiency and reach. We plan to deepen our involvement in supporting the small and medium business sector and focus on initiatives that promote sustainable growth. This nomination strengthens our mission to bring financial inclusivity to everyone, showcasing the new opportunities that await us in the future. - Do you have any words for your team and supporters? - I extend my gratitude to our amazing team and loyal users. This achievement is the result of our collective commitment to our mission. The passion of our team and the expectations of our users inspire us to innovate and instigate change every day. We are confident that together we can surpass the limits and reach a future where financial services are accessible to all. LandMN will continue to enhance financial inclusivity for small and medium enterprises through Flexi Business, contributing to the economic development of Mongolia.

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Health

Over 60% of Tuberculosis Cases Detected in the Capital

Published: 2024-10-31 | Translated from: montsame.mn

An international academic conference titled "Tuberculosis Studies - 100 Years" was held on October 30 and 31, dedicated to the 100th anniversary of tuberculosis research in Mongolia. Tuberculosis remains a pressing public health issue worldwide. According to a WHO report, each year, 10.4 million people contract tuberculosis, and 1.8 million people die from the disease. Ninety-five percent of these deaths occur in low- and middle-income countries. Furthermore, one-third of the global population is infected with tuberculosis bacteria, making it one of the top ten leading causes of death globally. Mongolia is among the countries with high tuberculosis prevalence, with around 4,000 new cases diagnosed each year. The capital accounts for over 60% of these increasing cases annually, with about 70% of the patients being adolescents and young people aged 15-44, who are at the prime of their working years. This conference featured four sessions focusing on the history of tuberculosis control, future policy and planning, innovative research and development methods, global health issues, new technologies in tuberculosis care, and the impact of innovative measures and cross-sector collaborations, including civil society and public participation, on tuberculosis services. Participants discussed 20 best presentations and exchanged ideas on future actions to reduce tuberculosis cases. The conference was attended by over 140 participants, including representatives from the Ministry of Health, WHO's Resident Representative Office, the Global Fund-supported HIV and Tuberculosis Project Coordination Unit, the Mongolian Academy of Medical Sciences, the Science and Technology Fund, the health departments of provinces and the capital, general hospitals, district health centers, the Mongolian National University of Medical Sciences, specialized central hospitals, tuberculosis dispensaries, non-governmental organizations, and international organizations.

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Arts

The Mongolian State National Orchestra Performs at the Berlin Philharmonic's Great Hall

Published: 2024-10-31 | Translated from: montsame.mn

As part of the 50th anniversary of establishing diplomatic relations between Mongolia and the Federal Republic of Germany, the Mongolian State National Orchestra performed in its entirety at the Berlin Philharmonic's Great Hall for the first time on October 29. The orchestra began its series of performances on October 27 at the Meistersingerhalle in Nuremberg and will continue at the Gerhart Hauptmann Theater in Görlitz on October 31. The Berlin Philharmonic's Great Hall, with a seating capacity of 2,440, is a renowned and prestigious venue in the world of classical music due to its high standards and reputation. The performance by the Mongolian State National Orchestra is a historic event marking a significant cultural milestone.

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Innovation

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Flexi Business Product of LandMN BBSB JSC Nominated for Prestigious Award by the Monetary Authority of Singapore and the Fintech Association

Health

Over 60% of Tuberculosis Cases Detected in the Capital

Arts

The Mongolian State National Orchestra Performs at the Berlin Philharmonic's Great Hall

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