Daily Business News Mongolia

Cabinet Meeting will discuss about benefit for people from the mining projects

Ministries and agencies are planning their action plan in the year 2009. Most of all, the Cabinet Meeting is scheduled in the next Wednesday, January 7 2009. It issued its agenda of the meeting. Many important issues are listed in the agenda. For example:

- Compensation for the victims of July 1 incident

- Product sharing agreement (apply to Oyu Tolgoi and Tavan Tolgoi projects)

- Draft amendment in the law on “Media freedom”, proposed by MP Z.Altai

- Works on determining the methods of distributing benefits from mineral and mining sector to people.

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President of Mongol Bank handed his request to be dismissed from his post

Last week, Mr A.Batsukh, the President of Mongol Bank handed his request to give his position to the State Great Khural. The State Great Khural will discuss his request next week. Sources say that reason of his decision was the suspension in the banking sector of Mongolia due to the world economy recession and world financial crisis, especially recent Anod Bank case.

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Rio Tinto sells stake in Chinese JV

Rio Tinto Ltd has sold its stake in an aluminium smelting joint venture in China to a project partner for an undisclosed sum as it moves to reduce its $US38.9 billion ($A56.1 billion) debt burden.

Rio Tinto spokesman Jim Singer said Qingtongxia Aluminium Company has bought the mining giant’s 50 per cent stake in the venture but could not comment on the sale price. (more…)

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SouthGobi Energy puts all its coal in one basket

SouthGobi Energy Resources has sold, subject to regulatory approval, its Metals Division to Ivanhoe Mines for $3 million. The Metals Division consists of certain base and precious metals properties in Mongolia and Indonesia. The transaction will enable SouthGobi Energy to focus solely on its principal business of coal production, development and exploration. (more…)

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A Happy New Year

A Happy New Year dear readers,

May the next year will be flourishing one and your capital, collected in a year of mouse will be enriched and be fertile and feasible like a year of cow.

Thank you again for paying attention to our petty website and checking it regularly. The year 2009 will surely be flourishing year for Mongolia with realization of many mining deposits, exploring more potential mining projects.

Editorial team,

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MP O.Chuluunbat: Monetary policy is needed to be modified

Q: How can we get through the world economy recession?
MP: O.Chuluunbat: The situation is changed so much since the last election. Even the situation is changed since the budget discussion. We are facing the situation of to be or not to be in this time of crisis. Therefore, budget modification must be made and investments must be suspended. Also budget debt must be lowered. In last 3-4 months combanks limited their loans and even some of them stopped it. It is obvious that how this crisis affects our economy. Also the train transportation circulation has fallen by 30-40%. Import size is shrunk, leading less income for companies and less tax income to the state. The market has deficit of money and situation is critical for many people’s life. (more…)

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What measures are needed to get through the recession easily?

MP Kh.Narankhuu: First all cut all types of expenses. We don’t pay attention on the necessary savings. At least, in Mongolia which has long cold season, we should save our heating. USA adopted its plan to fight with crisis. It included some interesting points such as to find new source of energy and encourage energy savings. It shows tax reward to citizens who use bicycle instead of car. People should be into the saving mode in Mongolia. For example, 40-50% of heating is lost through window. But we are not talking about how to save heating instead of increasing our budget for heating.

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Rail transport circulation has dropped sharply

Ulaanbatar Railway is not that busy as it was used to be. According to the National Statistics Office data, total load of Mongolian railway has decreased by 9.4% if compares with the previous year.
Also its transit transportation size decreased by 32.6% or 1047.5 thousand tons from the previous year. Sources say that an especially transportation load is dropped enormously in recent days. It was because of decreased import size due to the fall in retail business. It is the signal of the world economy recession is reaching every single corner of our economy.

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Food and goods price slump

New Year’s shopping season will be the worst since early 1990s merchants say. Because consumers don’t like to buy lump sum of food or new garments and clothing for themselves. Especially car business is in crisis. Its sales dropped sharply by 90%. It was because of loan from combanks has stopped and people’s tendency of saving their income. Moreover, so many cars in container are kept at customs stock. Merchants cannot pay their customs tax and people don’t like to buy new and used cars. If it will continue this way, there will be big collapse in the Mongolian used and new car sales market. (more…)

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S.Batbold, Minister for Foreign Affairs and Trade: Mongolia needs vote from 128 countries

Mongolia has become candidate for the Economy and Social Council of United Nations. The Foreign Ministry is preparing for the election for the Council. Minister S.Batbold has his words for this issue.

Q: What is the main importance for Mongolia to become member of the Council?

S.Batbold, Minister for Foreign Affairs and Trade: Mongolia will strengthen its position in the world community and it will surely give strong position to Mongolia to strengthen its relations and ties with superpowers and influential states of the world. Mongolia needs vote from 128 states. (more…)

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