Mongolia Business and Mongolian Daily Business News

Khan Resources Company proposed a purchase of Western Prospector
With purposes of strengthening its position and influence in uranium sector, a Canadian Company Khan Resources proposed to acquisition of shares of and merge with Western Prospectors group. However the proposal was like a demand. WPG rejected the proposal, but Khan Resources Company left the proposal open until June 20 without adjusting conditions. These two companies trade their shares at Toronto Stock Exchange and both own deposits in Dornod province. In addition, WPG has coal deposits in Choibalsan and Baganuur.
Read the rest of this entry »

In May 12, 2008, great loss occurred to the People’s Republic of China. Many countries, including Mongolia, around the globe stretched their hands to China. In return, His Excellency Yu Hongyao, Extraordinary and Plenipotentiary Ambassador of People’s Republic of China, expresses its gratitude to the People of Mongolia. He also updated journalists with the latest news of Sichuan earthquake. As for yesterday’s toll, there are over 67,000 people lost their lives during the disaster and more than 361,000 people were injured. Moreover, another 20,000 people are missing.
The government took urgent measure sending rescue teams from each province and military and police forces the place. Unfortunately, some obstacles still exist. Some rescue operations have been pended due to the sequel quakes, counted as six, following the earthquake. Read the rest of this entry »

Director of Mongolian Stock Exchange/MSE/ R.Sodkhuu and Chairman of RPB of Anod Bank E.Gur-Aranz signed the agreement on security issuer at the press and information center of the MSE. At the signing of the agreement of the two, Anod Bank joined MSE membership to trade stocks on the secondary market. After signing on the agreement, the two held a press conference providing detailed information to the media outlets.
R.Sodkhuu, E.Gur-Aranz, N.Davaa, President and CEO of Anod Bank and H.Hulan, Head of press and Public information Department of MSE attended the Press conference. It was interesting for journalists that how many stocks Anod had traded on the initial market and how much fund it raised. Anod bank traded 18’618’171 stocks and raised MNT 20’107’624’680 /1 stock MNT 1’080/. As the ceremony for agreement signing ended, initial market activities of Anod ended at the execution of all orders priced above fixed price by MSE and secondary market starts today.

Foreign Citizen and Immigrations Agency held an examination for foreign workers in Khentii Aimag. By this examination, they disclosed 81 Chinese Citizens who were working without license, and deported them to China through Khavirga border station of Dornod Aimag last week. Moreover, 152 Chinese Workers of “Nasnii Zam” LLC and 11 Workers of “Tusini” LLC which are working in iron mine of Bor Undur, had violated registration process, and Foreign Citizen and Immigrations Agency penalized above mentioned companies by 1 million tugriks. “Jinhua” and “Nordwind” companies had no violation.

Majority of budget of our country comprises of 68 percent taxation or price increase of some products. This taxation is imposed on copper and gold. Yesterday, Economic Standing Committee of the Parliament discussed the draft law, initiated by the Government on nullifying the provision on imposing 68 percent windfall tax on gold. Members of the Democratic Party Council agree with this proposal. Gold mining did not drop down since imposing windfall tax on gold, however there is a fact that handing over gold to the Mongolbank reduced dramatically. MPRP group added gold to the 68 percent windfall tax on copper, initiated by members including N.Batbayar when the draft law was submitted for discussion. If the Government proposal is supported, windfall tax will no longer be imposed on gold and loyalty tax rate will be increased.

There were several issues to discuss at the Budget Standing Committee yesterday, however the meeting became ineffective due to contending of members of MPRP and DP. At first, DP members rejected to discuss a draft law on Grant of the Nation Fund. They said, “There is no need to make a show to give everyone MNT 50 thousand while Minister of Finance said the fund resource for Grant of the Nation was not clear. Let’s postpone it.” In turn MPRP boycotted, rejecting to discuss a draft law on nullifying some provisions of the law on taxation of price increase of some products. This is the draft law on not imposing 68 percent tax on gold. The Government had initiated the draft law however MPRP members postponed it because DP members were against gold windfall tax at the first time.

Singer B.Khongor, Ts.Jadambaa of Global Leadership Institute, and number of other guys announced that they are founding “Bayan Mongol” (stand for Richer Mongolia) civil movement. According to them, Mongolia shall incorporate National Corporation which could serve for the purpose of developing mining projects. “Most important thing is that we, Mongolians have to explore, mine, and develop our minerals ourselves. No foreign company involvement. As of today, Mongolia has 54 strategically significant deposits. We can raise much money from Hong Kong and Toronto exchanges through announcing IPO. Many foreign invested companies gathered their money by this way. And, also there would not be any state dominance. In case of state dominance, we shall proceed like Erdenet, and almost 5 per cent of profit would be distributed to Mongolians.”, they say.

Union of Employers of Mongolia, Labor and Social Service Agency, and Student Union of Mongolia jointly organize Labor Expo annually. Organizers say Expo makes a long-term connection between new graduates and worker needed employers. Last year’s unemployed rate of 3.2 per cent decreased to 3 per cent this year. Almost 20 companies had participated labor expo and most of them were looking for managers, economists, accountants, marketing managers, and mining specialists. 441 unemployed citizens found a job during the expo. Also, organizers held business and legal information activities to venture managers, some small companies.

Yesterday, Government of Mongolia signed cooperation agreement with Microsoft Corporation. In accordance with the agreement, parties should develop cooperation in IT sector including communication service, speed and new training. Ch.Saikhanbileg, Head of ICTA and parliamentary election candidate of Democratic Party, stated that effective cooperation with Microsoft Corporation shall be strong support for “Tsakhim Mongol” (which stand for “Digital Mongolia”) government programme and we could be ranked 10 in Asia by fundamental IT development.
Agreement also should provide that Mongolian skilled IT engineers’ possibility to export their knowledge and products to world market.

In framework of the Program “40 thousand household apartments” developed by the Government, a micro-district is to be constructed in Khan-Uul District. At the resolution of the City Governor, 100 percent South Korean invested Company M&G was provided with 11.8 hectare land in the 1st khoroo of the District area. There 4000-household apartment with kindergarten, school. Sport complex and service center is to be constructed. 400 residents of ger district shall be provided with apartments at the evaluation of their land.
Also 20 public servants shall have opportunities to have apartments free of charge. It was planned to make 30 office areas for khoroo, family hospital and police ready this year. In order to accelerate the activity, land permissions for 26 locations were allowed and are ready for resolutions. Read the rest of this entry »