Mongolia Business and Mongolian Daily Business News

The Russian delegates of “Ulaanbaatar Railway” Joint Cooperative have arrived in Ulaanbaatar to attend the general committee meeting. The meeting will focus on possible increase of capital. Parties agreed upon increasing its capital up to $250 million, but no progress is made so far. Parties consider this meeting as important. 11 main issues will be discussed during the meeting such as production activities of 2010, financial situation of the Joint Cooperative.

The general committee consists of six members, three Mongolians and three Russians.

The Parliament started to discuss a draft resolution on guidelines for privatization of state-owned properties in 2010-2012. The novity of the guidelines is a proposal by the Government to trade state-owned shares of shareholding companies through the stock exchange besides traditional ways of privatizations in the coming three years. Also the guideline enables issuance of IPO at the domestic and international markets by companies that need investments through consessional way. Majority of Parliamentarians, who commented with respect to the draft reolution, criticised the erroneous privatization 20 years ago and asked the draft initiators if there is a guaranty that it would not repeat the same mistake. The issue of trading state-owned shares of strategically important mineral deposits through the stock exchange drew attention of the Parliamentarians.

MP N.Ganbyamba: Privatizaion of 1990’s had no effect. No single plant has been built in the last 20 years. The guideline says shareholding companies with stateowned properties are to be formed and their shares will be traded. Aren’t any shareholding companies established today? Read the rest of this entry »

photo courtesy of gogo.mn

Prime Minister S.Batbold made press conference on “Principles of privatizing the state properties”. Prime Minister was accompanied by Mr. D.Sugar, Chairman of the State Property Committee, MSE Director R.Sodkhuu and other officials when sharing his view towards people’s savings at banks and issuing shares.

Prime Minister stated that “Government’s intention of privatization of the state property in 2010 – 2012 and the state’s support in increasing private companies’ involvement in the privatization” and informed that the plan is presented to the State Great Khural.

Priority is to raise fund for the state owned companies through listing them at the foreign capital markets based on the mineral resources and deposits in Mongolia. According to the Prime Minister, foreign mining companies, operating in Mongolia, managed to raise $15 billion at the international capital market. If the Mongolian companies start operation with its own fund, it will unlock our opportunity to become competent at the foreign markets and relieve Mongolia from short term loan with higher rate. Read the rest of this entry »

During last weekend there was nothing to watch on televisions. The only interesting thing was the issue whether constructing railways in Mongolia is right or wrong. Though everyone would agree with “Who knows if it is right or wrong, just confused”. At first, almost all television channels broadcast construction of railways connecting to China by Energy Resources is an invasion to national security. Then soon after, Energy Resources corrected itself almost on channels. That is why Mongolian people do not know where to go.

Logically, Energy Resources borrowed MNT 150 billion in order to strengthen its coal deposit. Meanwhile Mongolian Government blocked off claiming “To construct heavy industry complex in Sainshand”. Plus, railways crossing Mongolia would be constructed. Since the company concerned about how to repay the borrowed money, it didn’t consider the national security.

We got positions of Parliaments members on this issue. Read the rest of this entry »

As proposed by Prime Minister S.Batbold to Speaker of the State Great Khural, the following arrangement will be implemented by the Government of Mongolia in privatizing the state owned projects and properties.

1.    To establish “Mongol Erdenes” LLC and list it at the domestic and foreign capital markets, based on the Mongolian ownership of Oyu Tolgoi and other strategic deposits and Erdenet and MongolRosTsvemet, in accordance with the common agreement with Russian Federation.

2.    To establish business entity and list it at the domestic and foreign capital markets, based on the Mongolian ownership of uranium deposits.

3.    To establish “Mongol Infrastructure” LLC and list it at the domestic and foreign capital markets, based on the joint actives and futures of the planned railroads, strategic roads. Read the rest of this entry »

Mongolia will have its first ever sea port at Tianjin, China. The Third meeting between two countries on cooperation of economy and trade will be held January 25-20, 2010. During this meeting, the issue will be settled in relationship with the land lease and terms and conditions at Tianjin Free Trade Zone. Mr J.Gankhuyag, Director of the Representatives Office of Ulaanbaatar State and State Entity, has more.

Q: What is the latest development at Tianjin?

J.Gankhuyag: MOU was signed between the Ministry of Roads, Transport, Construction and Urban Development and the People’s Government of Tianjin, during the official visit of former Prime Minister S.Bayar, April 2010.  Within the framework of the MOU, a working group was established between Mongolian and Chinese sides. The Representative Office of Ulaanbaatar City in Tianjin was established on October 14 2009. Read the rest of this entry »

Prime Minister S.Batbold presented a draft resolution on the main direction of privatizing state properties in year 2010 – 2012 to D.Demberel, the Speaker of the State Great Khural. He stated a new concept of privatization, such as increasing the involvement of people and improving the activities and governance of state owned companies. Capital market and the Stock Exchange shall develop along with it. When privatizing state properties, they will be privatized through the Stock Exchange, securing transparency of the privatization.

After receiving the draft resolution, Speaker Demberel asked few questions: Read the rest of this entry »

On collaboration in using Tavantolgoi coal, 11 companies have sent their proposals. However no replies were given on whom to choose. Active talks and discussions will start next month-February. Ministry of Mineral Resources and Energy plans to organize number of open discussions in order to find out right options by seeing the issue from different angles. The first discussion has been held last Friday. According to Minister of MRE D.Zorigt, an efficient option would be selected and the initial criteria for efficient option include economic efficiency, income to Mongolian budget and maximum share for Erdenes MGL, state-owned company, implementing Tavantolgoi project. Read the rest of this entry »

Vice Speaker N.Enkhbold received delegates led by Lee Byung-suk, Chairman of the Standing Committee on Land, Transport and Maritime Affairs of the National Assembly of Republic of Korea.
Vice Speaker mentioned that Mongolia is at the brink of developing its infrastructure and other sectors based on the revenue from mining sector and stated that it can’t be completed without proper development of railways. Read the rest of this entry »

Over 80% of “Ulaanbaatar Railway” locomotives are old.

During the Prime Minister’s visit to Ulaanbaatar Railway, its Chairman Otgondemberel.B reported that over 80% of its locomotives are old. It requires immediate upgrade in locomotive fleet. Its stakeholders, Mongolian and Russian Government, made decision to increase its capital by $250 million. If it will be solved, it can upgrade its locomotive fleet park. Read the rest of this entry »