The seasonally adjusted industrial production index in May 2018 was 170.6 (2010=100), increased by 4.1% from the same period of the previous year, by 11.5% from the end of the previous year and by 3.9% from the previous month.

Compared to the same period of last year, the most increase in the main production of the mining and quarrying sector in the first 5 months of 2018 goes to gold, copper concentrate, zincum concentrate, iron ore and crushed stone by 2.5% to 39.0%. In the manufacturing sector, major growth was observed in beer, fodder, combed down, vacuum windows and doors, sawn wood, alcoholic beverage, knitted goods, sausage products, buuz and dumpling by 6.5-27.8%, respectively.

The most decrease of production in the mining and quarrying sector observed for fluor spar, coal, crude oil and molybdenum concentrate by 1.8-9.4% and copper, horse meat production and wooden building door and windows of the manufacturing sector by 3.4-95.5%, respectively. In the first 5 months of 2018, the sold production of industry reached MNT 6.9 trillion and MNT 4.9 trillion (72.0%) of sold production that were exported.

The memorandum was signed as Mongolian Foreign Minister Damdin Tsogtbaatar met with a visiting delegation led by his Nepalese counterpart, Pradeep Kumar Gyawali.

The ministers of the two landlocked countries expressed their confidence that relations and cooperation will continue to grow.

The two foreign ministers also stressed the importance of expanding their bilateral ties at the regional and international levels.

The Nepalese delegation arrived here Saturday to attend a conference of landlocked developing countries.

The resource-rich country, which has a land size four times that of Japan but a population of only three million people, has faced turmoil after the global commodities downturn in 2012. After a falling currency, ballooning debt and capital flight crippled its financial health, the government last year agreed on a $5.5 billion aid package led by the International Monetary Fund.

During Nikkei's Future of Asia conference, officials outlined the progress being made since the IMF agreement, including paring down debt and efforts to reduce Mongolia's economic dependence on the mining sector.

"The diversification of our economy, to ensure that during [commodities'] bust cycles other sectors can support," is a priority, Deputy Finance Minister Bulgantuya Khurelbaatar said. She pointed to agriculture as a key sector for development, and added that the government aims to utilize trade agreements with Japan and other countries to gain a competitive advantage.

Zorigt Dashdorj, an adviser to the minister of Foreign Affairs, said Mongolia's "land mass and proximity to China" is an important strength for economic growth. He pointed to tourism as another source of growth, with a new international airport in Ulaanbaatar, the country's capital.

The rebound in prices of coal and copper, which are among Mongolia's biggest exports, helped accelerate economic growth to more than 5% in 2017. Observers are watching whether the government -- led by President Khaltmaa Battulga, who won the election last July -- will follow through on painful reforms despite the tailwinds for commodities.

After previous experiences of dealing with financial aid following the 2008 financial crisis, "one of the lessons learned was that structural reforms were not followed through fully," said Erdembileg Ochirkhuu, first deputy governor of Mongolia's central bank. He added that the current three-year IMF funding facility was designed to tackle such issues.

While coal prices are rising, Ochirkhuu said that "domestic demand is still sluggish" due to a weak currency that has pushed up the price of imports.

The government aims to pare down its debt-to-GDP ratio to 64% this year from 74% in 2016. Results will be crucial, as debt maturities will peak around 2020, Ochirkhuu said.

Governance is often said to be a major challenge in implementing reforms. Dashdorj said a new law that will go into effect next year and will introduce stricter requirements, such as examinations, for becoming public servants, will help improve the public sector.

"After 10 years of instability, politicians have decided that, yes, we have to change this," he said. "We have to make sure it is professional."

In his message, President Battulga said:

“On behalf of the people of Mongolia, let me extend cordial congratulations to You and the friendly people of Russia on the occasion of the Russia Day.

I am pleased to note that the traditional relations between Mongolia and Russia, based on the trust, ideals and mutually beneficial cooperation of friendly neighbors, are deepening in line with the strategic partnership principles.

I am highly satisfied with the successful outcome of our bilateral meeting and the fourth Tripartite Meeting between the heads of state of Mongolia, Russia and China, held on the sidelines of the 18th Meeting of the Council of Heads of Member States of the Shanghai Cooperation Organization in Qingdao, China. I am committed to actively cooperating with You on realizing the matters discussed at these meetings.

Furthermore, we successfully organized the ‘Mongolian-Russian Initiative – 2018’ series of events on June 7th-9th in Ulaanbaatar. I am delighted to say that the Mongolia-Russia Intergovernmental Agreement on Transit Transport by Railway was signed during the series of events.

I would like emphasize the crucial importance of the joint celebration of the 80th anniversary of the victory of the Battle of Khalkha River, which will fall next year, in promoting true history among the younger generation and strengthening the trust between the people of Mongolia and Russia.

Let me take this opportunity to wish You, dear Vladimir Vladimirovich, good health and success, and to the people of Russia peace and prosperity.”

Under the deal, CITIC Metal will also make a $100 million loan facility available to the Canadian listed company, which said it would use the proceeds to advance its projects in southern Africa, including Ivanhoe’s flagship Kamoa-Kakula project in the Democratic Republic of Congo – considered the most significant copper discovery in decades.

Friedland, Ivanhoe’s founder and executive chairman, said the deal was the culmination of a 15-year relationship with CITIC. “In 2003, the original Ivanhoe Mines was grappling with the challenge of developing its vast copper-gold discoveries at the Oyu Tolgoi Project in southern Mongolia. Following extensive discussions, Ivanhoe and CITIC established a strategic alliance to cooperatively pursue a number of selected common interests in metals production and related technologies.”

Another Chinese firm, Zijin Mining Group — which acquired a 9.9% stake in Ivanhoe Mines in 2015 through a wholly-owned subsidiary — will now be entitled to exercise its existing anti-dilution rights through a concurrent private placement, which could result in additional proceeds of Cdn$78 million (about $60 million) if exercised in full, the parties said.

Once Chinese regulators clear the transaction, CITIC will have the right to appoint two directors to an enlarged board. One of them is expected to be Sun Yufeng, president of CITIC Metal Group, who will become Ivanhoe’s co-chairman alongside Friedland.

Ivanhoe Mines estimates the asset, discovered in 2007, holds the equivalent of at least 45 million tonnes of pure copper. The company aims to extract 300,000 tonnes per year once the mine is operating at full tilt.

During the meeting, President Kh.Battulga expressed Mongolia’s interest in actively developing its ties with India, citing the possibility of cooperating in film and sport industries.

The sides agreed on the vital importance of people-to-people relations in the broadening of bilateral cooperation. At the end of the meeting, Mr. Narendra Modi expressed his hope that President Battulga will make a visit to India.

India is already very active in the Mongolian economy, most notably, in the construction of the country's first oil refinery.

The meeting, organized under the auspice of Mongolia’s Deputy Prime Minister, was attended by over 300 businesspersons from Russia to hold business meetings and seek cooperation opportunities.

At the meeting chaired by Ch.Enkhbat, First Deputy CEO of Development Bank of Mongolia (DBM), the Mongolian side provided presentations on 'Three-pillar development policy of Mongolian government', 'Project-based investment environment in Mongolia', 'Investment opportunities in free zones' as well as 'A program on establishment of Mongolia-Russia-China Economic Corridor'. 
During the event, Mongolia’s Golomt and Khan Banks signed a Memorandum of Understanding (MoU) on cooperation with the Russian Agency for Export Credit and Investment Insurance (EXIAR).

In addition, more agreements were signed, for instance, ‘Financing Agreement’ between the DBM and Russia’s Vnesheconombank, ‘Cooperation Agreement’ by Mongolia’s Trade and Development Bank and Russia’s International Bank for Economic Co-operation (IBEC). As well, two MoU on establishing cooperation agreement were signed by Golomt Bank and IBEC, and by DBM Leasing Company and Vnesheconombank.

The meeting was concluded with an issuance of ‘Statement of Mongolia-Russia Cooperation in Finance and Investment Sector’. It aims to develop strategic partnership between the two countries, stimulate economy and trade turnover and ensure cooperation between organizations to implement mutually beneficial investment projects.

Prime Minister Shinzo Abe has expressed his desire to hold a summit meeting with North Korea with an aim to resolving the issue of Japanese nationals abducted by North Korea. The Japanese side intends to convey Japan’s stance to North Korea while probing Pyongyang’s intent through the contact in Mongolia.

The conference, known as the Ulaanbaatar Dialogue, is organized by the Mongolian government among others. Diplomatic officials including those from the Japanese Foreign Ministry and North Korea are scheduled to attend.

At the previous conference in June last year, a Japanese deputy director general of the ministry’s Asian and Oceanian Affairs Bureau briefly talked to a North Korean Foreign Ministry official at the Institute for American Studies.