Daily Business News Mongolia

Petroleum price is to fall again by another 400 MNT

Price of petroleum will fall again by 400 MNT in December. Petroleum price will fall by 300-400 MNT depends on its quality and type. Actually, crude oil price fall by almost 300% since its peak in July and fueled up petroleum price in Mongolia up to 1800 MNT (AI 92 type) per liter. As for today, AI-92 type petrol is 1390 MNT which is less than 30% decrease since its peak time price. Therefore, it is quite logical decrease but it is quite late as for the reaction. (more…)

Posted in Companies, Economy, News | No Comments »

MP Kh.Narankhuu: If this measure is not taken, the outcome will be much worse.

Placing 220 billion MNT of Mongolia Development Fund at commercial banks is under strong criticism. About 61.9% of total voters of “Unuudur” daily newspaper readers said it was wrong decision. Let’s find out what is the position of lawmakers in this regard. They answered to the following two questions and are:

1. Do you support the operation of placing some fund of Mongolia Development Fund at commercial banks?

2. How to protect from the risk that may arise? (more…)

Posted in Economy, Finance, Government, Interview, Laws, News, Politics | No Comments »

Anod Bank gives housing loan

Mongol Shuudan Bank and Zoos Bank totally shut their all types of loan. But Capital, Savings, Khaan, Xac and Capitron Banks are providing business, salary, pension, secured by savings deposit and leasing loans. These banks are not providing housing loan. Xac Bank temporarily stopped its housing loan until the next year. It is still unclear for other banks when to start giving loan. People who bought Trade and Development Bank accredited construction companies can get housing loan. Mongol Bank reduced its interest rate and it gives good standing position for the commercial banks. (more…)

Posted in Business, Economy, Finance, News, Real Estate | 1 Comment »

Kh.Badamsuren: We don’t have right to lose time

The working group of the State Great Khural on drafting amendment in the Mineral Law of Mongolia has 13 members. The working group consists of 7 members from MPRP, 5 from Democratic Party and 1 from Civil Will Party (MP S.Oyun). MP Kh.Badamsuren, the head of the working group, has his word on the current issue.

Q: You are about to propose your proposal and conclusion to the Standing Committee on Economy. Can it be understood that this work is about to finish?
MP Kh.Badamsuren: I think members of the working group approached this issue with fundamental principles and from many aspects. The alternative to unlock the procedure of strategic deposits and investment agreement was proposed to the parliamentary party groups. The proposal of the working group was principally supported. The copper price has fallen by 2 times since the talks of draft Mineral Law started. Therefore, we don’t have right to lose time. We’d better not to lose time by saying need to discuss seriously. (more…)

Posted in Companies, Economy, Government, Interview, Laws, Mining, News, Politics | 1 Comment »

All saving deposit is secured by the State.

Prime Minister S.Bayar, Minister for Finance S.Bayartsogt and President of Mongol Bank A.Batsukh said it during the press conference at the Government House yesterday. The Prime Minister said about that the Government initiated a draft law on “Securing the saving deposit at commercial banks” and proposed it to the parliament. (more…)

Posted in Economy, Finance, Government, News, Politics | No Comments »

Do.Ganbold, the President of the Mining Association of Mongolia: Investors will not become charity organization if they asked so.

Mr. Do.Ganbold, the President of the Mining Association of Mongolia has his views on the draft appendix on guidelines of the negotiation making on the investment agreement of Oyu Tolgoi and Tavan Tolgoi.

Q: Working group, led by MP Kh.Badamsuren, is about to present its draft resolution of instruction guideline in investment agreement. What is your position being as the President of the Mongolian Mining Association.

A: Looking at the resolution draft. It can be said that it has much more positive and progressive ideas than the voices at the State Great Khural. I understand that even it is already late, but it can show its effect immediately when I saw a provision on working within the current effective law framework. But when I have a look at there were some provisions that were in conflict. (more…)

Posted in Companies, Economy, Government, Laws, Mining, News, Politics | 1 Comment »

U.Ganzorig, the President of Financial Market Association: Made risk management calculation on Erdenet copper production.

U.Ganzorig, the President of Financial Market Association, has his word in the time of copper price prediction dilemma that can severely affect in the Mongolian budget.

Q: Copper prediction price in the budget of year 2009 was approved at 3400 US4 after long lasting discussion. If this price goes down this target, the budget will suffer deficit. What is your opinion in this regard?
A: Price rate surges. It is under the permanent changes. I remember that in year 2002, the copper price was 1570 US$ PER M/T. At that time Erdenet’s production cost was 1500 US$ per m/t. As for last year’s statistics, 45% of total export of Mongolia and 22% of GDP was formed by the copper concentrate. Therefore, it is obvious that what damage can current copper price fall bring in Mongolia. (more…)

Posted in Business, Companies, Economy, Interview, Mining, News | No Comments »

The Government Action Plan was approved by the State Great Khural

Party group meeting at the State Great Khural held series of meeting last week. Another working group was established by the two parties with purpose of solving the gap in the budget due to copper price fall. They wasted some time in predicting copper price in the next year which was already set at6 6700 US$ per m/t. But the Government suggested the State Great Khural to change it at 3200 US$ next year. But party groups rejected its proposal. After long meeting and discussing, party groups predicted copper price at 3400 US$ next year. Therefore, MP Khurelbaatar, head of the standing committee on budget, informed that copper price is set at 3400 US$ and windfall tax imposition on gold starts from 850 US$. (more…)

Posted in Economy, Finance, Government, News, Politics | 2 Comments »

Copper Drops to Near Three-Year Low as Global Surplus Widens

By Li Xiaowei

Nov. 24 (Bloomberg) — Copper fell to near the lowest in more than three years as a global surplus widened, fueling concerns that a deteriorating global economy is reducing demand for industrial metals.

World copper production exceeded usage by 75,000 metric tons in the first eight months, the International Copper Study Group said Nov. 21. That compared with a surplus of 22,000 tons for the same period last year, the Lisbon-based group said. (more…)

Posted in Business, Economy, Mining, News | 1 Comment »

With number of foreign workers in Mongolia, Chinese nationals are leading.

When Mongolians are eagerly seeking to go abroad for labour, the foreign workers number is increasing in Mongolia. It has been seven years since adoption of “Law on sending labour force to abroad and receiving foreign labour force” and 42860 foreign nationals received the permission to work in Mongolia. As for today, over 16 thousand foreign nationals are working in Mongolia, but the Chinese nationals are the biggest among this community. Russian, South Korean, Ukrainian and American nationals are the biggest among them. (more…)

Posted in Economy, Government, News | No Comments »