Daily Business News Mongolia

Vodka factories number decreased by 60%

Cabinet Meeting discussed about the report on “canceling licenses of some vodka factories and outcome of installation of counter in vodka and spirit factories”. After the long lasting effort, the Government of Mongolia managed to install counter in vodka factories. As for today there are 94 vodka factories and 15 spirit distiller operating in Mongolia. 60 vodka factories are in countryside and 34 in Ulaanbaatar City and 7 spirit distillers are in countryside and 8 in Ulaanbaatar. (more…)

Posted in Companies, Government, Lifestyle, News | No Comments »

The loan agreement must be amended

During the state visit of Chairman Hu Jintao, People’s Republic of China in 2003, he offered 300 million US$ soft loan for the Government of Mongolia for its funding infrastructure. The Government of Mongolia stopped the funding of this loan to the water power plant of Eg river in January 2008 and made resolution to use this loan for funding programs and projects that are environmentally friendly and sound and can bring real impact in the economy of Mongolia. Therefore, the Government decided to fund in the following five directions and propose to the State Great Khural: (more…)

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

D.Otgonjargal, media representative of Civil Aviation Authority of Mongolia: Four aimags’ airports received the status of international service.

Q: What is the reason of granting this status to these four aimags’ airport?
A: In order to implement the resolution No 69 of the Mongolian Government, necessary facilities and equipments were purchased and essential documents were prepared to change the status of airports in four aimags (Khovd, Umnugobi, Khuvsgul and Dornod). For example, with purpose of preparing Khovd-Urumqi flight, the infrastructure of Khovd airport is changed and installed necessary equipments for the customs, border protection, veterinary inspection and registering foreign citizenship. These sections have own rooms and cabinet for proper service. (more…)

Posted in Government, Interview, Lifestyle, News | No Comments »

The Chilean Minister of Mining visits Mongolia

Mr. Santiago Gonzales, the Minister of Mining of Republic of Chile has started his visit to Mongolia. Today Mr. Santiago Gonzales had a meeting with PM S.Bayar, D.Zorigt, the Minister for Mineral Resource and Energy, Mr. Su.Batbold, the Minister of External Relations and Foreign Trade and other MPs. They have discussed about the cooperation between two countries at present and future. (more…)

Posted in Economy, Government, Mining, News | No Comments »

MP N.Batbayar: 300 million US$ of the Mongolia Development Fund will be placed at commercial banks.

The draft law of placing some fund of the Mongolia Development Fund was initiated by MPs N.Batbayar, R.Amarjargal, G.Batkhuu, Ts.Bayarsaikhan, R.Bud, D.Damba-Ochir, G.Zandanshatar, O.Chuluunbat and proposed to the Speaker of the State Great Khural. Some more clarification was made from the initiator.

Q: What was the main reason of initiating this law?
MP N.Batbayar: World financial crisis is affecting countries of the world and countries are taking various measures to handle it. USA allocated 700 billion US$ and it is equal to its 5% of GDP. As for Mongolia, situation in economy is relatively healthy and potential. Therefore, there is a proposal of placing 300 US$ of the Mongolia Development Bank in commercial banks, if compares with USA, proportionally, it is about 200 million US$ for USA. The income from the windfall tax was divided into three different purposes and 1/3 of it or about 300 million US$ was reserved for the securing the domestic crisis. According to the law, it is kept at the Central Bank. Therefore, in order to support commercial banks and fund them, draft law on granting the right to place it at banks to the Government was proposed. (more…)

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

Prime Minister S.Bayar: 1/3 of inflation is related to the construction business

Commercial banks provided huge amount of housing loan. There is no new resource. Construction work is about to end due to the seasonal reason. It is essential to finish construction works that are about to be completed. It is necessary to show certain support for unlocking the opportunity to people who paid their money already. Right now, the loan of the construction companies reached 210 billion MNT. Our banks are very cautious when granting loan. They give 20 or 30 million MNT for the real estate of 50 million MNT. Therefore, it creates the security of the loan. But commercial banks shall act decisively. One of the major factor of inflation is construction business.

Posted in Business, Economy, Government | No Comments »

Does Mongolia need a law on conflict of interest?

Recently, lots of articles were published and written about the conflict of interest of the state officials. In other words, people, with conflict of interest, work in the state service. We questioned some well known people regarding this issue and put the following questions:
1.    Do we need to have a law to prevent from the conflict of interest?
2.    Can you name officials with the conflict of interest?
Readers can send their opinion to the following e-mail address of Zuunii Medee newspaper. (more…)

Posted in Government, Laws | 1 Comment »

Petrol price has reduced further

Petrol price has reduced by 60-150 MNT from yesterday. In Relation to this news petrol importing companies are urging other companies and businesses to reduce their prices of goods and services as price of petrol have become more affordable and it is looking to reduce further. The most important issue is that public expects a reduction in the cost of public transport and taxi services.
Vanchigmaa, Finance Department Director of Public Transport is investigating this matter and she has said “Due to a constant decrease in price of petrol we have started planning to reset the tariff of the transport system”.

Posted in Business, Companies, Economy, Finance, Government, Interview, Lifestyle, Mining, News, Real Estate, Sport and Culture | No Comments »

Appendix 2 of the resolution of the State Great Khural: MAIN PRINCIPLE AND GUIDANCE OF MAKING THE INVESTMENT AGREEMENT ON JOINT EXPLOITATION OF OYU TOLGOI COPPER-GOLD DEPOSIT

MAIN PRINCIPLE AND GUIDANCE OF MAKING THE INVESTMENT AGREEMENT ON JOINT EXPLOITATION OF OYU TOLGOI COPPER-GOLD DEPOSIT
1. The agreement must be built in accordance with the effective law and regulations of Mongolia
2. To study the possibility of inserting the provision to allow the Mongolian side to own up to 50%, but starting from 34% and additional take over for the Mongolian side when the initial investment is compensated.
3. To study the alternatives of making the investment agreement based on the product share principle.
4. To agree upon 34% direct ownership of a stock holding company to the Mongolian side and its investment to be replaced with the taxes, payments, fees, dividend and loan types. (more…)

Posted in Companies, Economy, Government, Laws, Mining, News, Politics | 18 Comments »

Appendix 1 of the resolution of the State Great Khural: MAIN PRINCIPLE AND GUIDANCE OF MAKING THE INVESTMENT AGREEMENT ON JOINT EXPLOITATION OF TAVAN TOLGOI COAL MINE

MAIN PRINCIPLE AND GUIDANCE OF MAKING THE INVESTMENT AGREEMENT ON JOINT EXPLOITATION OF TAVAN TOLGOI COAL MINE
1. The agreement must be built in accordance with the effective law and regulations of Mongolia
2. To study the possibility of securing the Mongolian side ownership in a stock holding company which will be established on Tavan Tolgoi coal mine, not less than 51%.
3. To study the alternatives of making the investment agreement based on the product share principle.
4. To effectively implement the payment of mineral resource exploitation, its calculation and distribution in accordance with the mountain-geological condition and reserve size of the deposit, as stated in the provision 47 of the Mineral Law of Mongolia and to receive the certain portion of the payment of the mineral resource exploitation and taxes in advance. (more…)

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