Daily limit for digital transaction raised www.montsame.mn

Ulaanbaatar /MONTSAME/ National Electronic Transaction Centre (NETC) of the Bank of Mongolia raised the daily limit for digital transaction to MNT 3 million, from previous limit of MNT 1 million.

Aggreko ready to power Mongolia www.aggreko.com

According to the Sustainable Energy Sector Development Strategy, approved by the Government in 2002, Mongolia set the following aims in the energy efficiency sector: sustainable development of the energy sector and power access and affordability of energy supply even in the most remote regions of the country.
“For our company, Mongolia is one of the priority regions,” - says Dominique Rachez, Managing Director for Central Asia of Aggreko Eurasia LLC. – The Mongolian economics is one of the most promising in the world. According to the forecasts of the World Bank experts, for the next few years Mongolia will be showing the economic growth by an average of 13% per year, these figures are almost double the growth rate in China. For sure the economic growth will be accompanied by rapidly increasing power demand. We provide solutions that allow industries, large cities, small communities to optimize the cost of power production where is no access to grid or connection is being delayed, in a location with limited or no access to permanent power, when businesses require cooling or heating to run their production smoothly and efficiently. 
In recent years, Mongolian Government has been paying great attention to the development of renewable energy sector. The territory, low population density and renewable energy sources - all of these facts create a great potential for this sector. In such rapidly changing conditions, Aggreko Eurasia LLC keeps up to date, looking to the future, the company is now able to offer customers scalable power solutions based on a number of technologies, including: renewable energy sources as sources of power supply, hybrid technologies, such as mobile modular solar panels, battery storage and a fleet of generators as they run on eco-friendly gas fuel, natural gas, heavy fuel and hybrid options.
The business model of Aggreko Eurasia LLC is rental that means there is no CAPEX required from the customer’s side and power increase or decrease is very flexible due to the modular construction of Aggreko’s equipment. The generators are designed and produced in Scotland to the highest European standards, developed and built for rental-specific applications in the toughest environments on earth, manufactured in Aggreko’s ISO-accredited facility ISO 0900:2008 and is equipped with remote monitoring to aid in performance and reliability.
Aggreko Eurasia LLC operates as a subsidiary of Aggreko plc at the territory of Eurasia from 2008. The company provides temporary power, temperature control, and compressed air systems on rent. The company provides project design planning, installation, commissioning, process enhancement and operating services, and on-site service and maintenance support services. It serves manufacturing, mining, oil and gas, agricultural, construction and major event industries. The total capacity of provided power exceeds 700 MVA at the territory of Eurasia in 2017.
Among successfully operated and performed projects of Aggreko Eurasia LLC are power supply for Rosneft, Gazpromneft, Lukoil, Slavneft, EVRAZ Group, Antipinsky Oil Refinery, Heidelberg Cement, Pilkington Glass, BP Exploration Limited. 
“To learn more about Aggreko products and services please visit their website www.aggreko.com or contact them at Mongolia@aggreko.com or reach us via phone numbers +976 8059-9852 and +7 916 599 85 27”

BoM raises interest rate to 11 percent following IMF mission www.zgm.mn

Yesterday, the Monetary Policy Committee of the Bank of Mongolia (BoM) held an irregular meeting almost a month before schedule and decided to increase the interest rate by 1 percent, to 11 percent. Analysts highlighted that the sudden change in interest rate was driven by external factors and suggestions of International Monetary Fund (IMF) mission.

Erdenes Tavan Tolgoi IPO introduced internationally www.montsame.mn

Ulaanbaatar /MONTSAME/. Representatives of Erdenes Tavan Tolgoi (ETT) JSC attended the 7th MINEX Eurasia Mining and Investment Forum that took place in London.

National Innovation Prize presented www.montsame.mn

Ulaanbaatar /MONTSAME/ The National Innovation Prize was awarded to VetBioTech start-up and ITools companies in recognition of their contributions to the social and economic development of Mongolia, meeting world standards and improving competitiveness of the country.

Alibaba's Jack Ma is a Communist Party member, China state paper reveals www.reuters.com

SHANGHAI (Reuters) - Jack Ma, the head of e-commerce giant Alibaba Group Holding Ltd and China’s best-known capitalist, is a Communist Party member, the official Party newspaper said on Monday, debunking a public assumption the billionaire was politically unattached.

China defends holding fugitive businessman's US children www.bbc.com

Chinese officials have defended their decision to bar three US citizens from leaving the country, saying they are suspected of "economic crimes".

Victor and Cynthia Liu, children of a fugitive businessman, and their mother, Sandra Han, have been detained since June, the New York Times reported.

The US Department of State confirmed to the BBC that they are in "close contact" with the adult Liu children.

Their father, Liu Changming, is wanted in a $1.4bn (£1bn) fraud case in China.

"As we understand it from the relevant authorities, these people you have mentioned all have legal and valid identity documents as Chinese citizens," Chinese foreign ministry spokesman Geng Shuang told reporters at a news conference, according to the Agence France-Presse.

"They are suspected of having committed economic crimes and have been restricted from leaving China by Chinese police."

The risks of dual citizenship
Analysis by Zhaoyin Feng, US Correspondent, BBC Chinese Service

Beijing has shown that it doesn't shy away from prosecuting dual citizenship holders and foreign passport holders with Chinese roots.

Lee Bo, a Hong Kong bookseller who also holds a British passport, was "first and foremost a Chinese citizen" when they detained him, according to China's foreign minister Wang Yi in 2016.

The Chinese police also held Lee's business partner, Chinese-born Swedish bookseller Gui Minhai. Gui and Lee had published books critical of the government.

China does not recognise dual citizenship, but it is relatively common for Chinese people to obtain foreign nationality without renouncing their Chinese citizenship.

The covert dual citizenship holders hold on to their Chinese identity cards and passports for various reasons ranging from getting access to Chinese welfare benefits to entering China conveniently.

Hong Kong passport holders can legally hold dual nationality, but in mainland China, Hong Kong citizens who have foreign passports are considered Chinese citizens, according to Chinese laws.

It is also worth noting that the Chinese foreign ministry's comment regarding Victor and Cynthia Liu's case was excluded from the daily press briefing transcript published on the ministry's website.

Questions considered sensitive to the Chinese government are sometimes omitted in the public transcripts, as a way for Beijing to downplay the issues and to limit the information spread out on domestic media platforms, which re-post the ministry's briefing transcripts.

A US Department of State official told the BBC in an emailed statement that they are "in close contact" with Mr and Ms Liu and are providing "all appropriate consular services".

While exit bans have often been imposed on Chinese-born foreigners, in this instance, Mr Liu is US-born. All three family members reportedly entered China on American passports.

Mr Liu, 19, and Ms Liu, 27, travelled with their mother to a tropical Chinese island this summer to visit their grandfather, according to the Times.

Days later, their mother - who is a Chinese-born US citizen - was detained by Chinese officials and allegedly taken to a "black jail" - a secretive detention centre.

Mr and Ms Liu have reportedly tried to leave the country three times and have been staying with an uncle.

They told the newspaper they are being held in order to lure their father, a former state-owned bank executive, back to face criminal fraud charges, though he reportedly cut ties with the family in 2012.

According to the China Daily paper, Mr Changming is one of the country's 100 most-wanted fugitives facing arrest for alleged corrupt practices. He fled China in 2007.

Ms Liu wrote to National Security Adviser John Bolton in August, saying her family was being held as "a crude form of human collateral" to bait someone they have no contact with, the Times reported.

In January, the US Department of State issued a travel advisory regarding exit bans in China, warning that they have been imposed "to compel US citizens to resolve business disputes, force settlement of court orders or facilitate government investigations".

"Individuals not involved in legal proceedings or suspected of wrongdoing have also been subjected to lengthy exit bans in order to compel their family members or colleagues to co-operate with Chinese courts or investigators."

Dual-citizenship is not allowed under Chinese law, and US officials cautioned that US-Chinese nationals can be detained and denied US assistance in the country.

Ms Han is a businesswoman with millions of dollars in real estate holdings, the Times reported, and Ms Liu is a consultant at McKinsey & Company.

Mr Liu is currently a sophomore at Georgetown University.

Massive blackout as Siberian snowstorm batters Mongolia www.news.mn

A snow storm from Siberia hit Mongolia at the weekend causing a massive power blackout across western parts of the country. Three people were injured and 1600 livestock were lost in the storm.

Mongolia: Petro Matad's Wild Horse-1 well in Block IV disappoints www.energy-pedia.com

Petro Matad, the AIM quoted Mongolian oil explorer, has provided a summary of the results from its Wild Horse-1 well and an operational update:

Wild Horse-1, Block IV

The Wild Horse-1 well, drilled in the Baatsagaan Basin within Petro Matad's 100% owned and operated Block IV, has reached total depth (TD) of 1,490 metres MD in granitic basement.

In line with the pre-drill prognosis, the well encountered interbedded sands and shales throughout the prospective section from 650 metres to TD but no oil shows were observed.

The first objective drilled in the well comprised a c.250 metre thick sequence of porous sands and interbedded claystones. Background drilling gases from C1 to C4 were observed in this interval and are believed to be of thermogenic origin. The prospectivity of this interval within other trap geometries in the basin will be evaluated as a priority.

At the second objective only thin sands were developed within an overall claystone interval containing both carbonaceous material and thin coals which may be indicative of the presence of potential source rock material in the well.

The third objective was not present due to the shallower than prognosed penetration of basement. Basement had been prognosed at a depth below 2,000 metres at the well location based on interpretation of high-resolution gravity and magnetic data. Wild Horse 1 provides the first well tie to the seismic database in Block IV and the seismic will now be reinterpreted to better understand the basement and basin configurations.

Post-well analyses will focus initially on determining the ages of the formations drilled and the reservoir and source rock potential. Further work on the surrounding prospectivity in the Baatsagaan Basin will depend upon the source rock potential and maturity that can be determined from these analyses. Elsewhere in Block IV, a number of other basins have been evaluated and the information provided by Wild Horse 1, particularly in terms of the ages of the formations present and their correlation with the proven productive basins to the south in northern China will help determine the next steps in exploring the area.

The Wild Horse 1 well will now be plugged and abandoned and the post well evaluation will commence. The rig and crew have operated well through the onset of winter in Mongolia and the 2018 drilling programme in Blocks IV and V has been completed within budget. The Company's current cash balance is more than $25 million and so the Company is fully funded for the 2019 drilling programme.

Planning for 2019 drilling programme

Block V

Work is progressing on the post-well evaluation of the Snow Leopard 1 well in Block V which provided good evidence of a working petroleum system in the Taats Basin. This work has high-graded a group of prospects on the southern flank of the basin which have significant resource potential and these are being worked up as potential candidates for 2019 drilling.

Meanwhile, the final drilling permits for the large Fox prospect are being secured. The Company continues technical work, incorporating the results of Snow Leopard 1 with existing seismic and other data and this work will determine the preferred drilling target and scheduling for 2019 drilling in Block V.

A number of bids have been received from contractors wishing to supply the rig and drilling services for Petro Matad's 2019 drilling programme. It is planned to complete contractual negotiations as soon as possible to give plenty of time to prepare for the commencement of drilling as early as possible in 2019 when the weather permits.

A three well programme is planned in Block XX focusing on near field exploration and appraisal drilling. The Gazelle 1 well, which is the first of the Company's lower risk exploration appraisal wells, is currently planned to spud early in the second quarter, weather permitting. Gazelle 1 will target a lookalike structure to Petro China's best producing field in Block XIX which is only 12 kms to the northeast. Red Deer 1, which is located in the southwest of Block XX and will target 48 MMbo of Prospective Resources, will be the second well. Seismic reprocessing and reinterpretation is underway to determine which of the prospects adjacent to the Petro China acreage will be the third well in the programme. Drilling permits are already in hand for all the northern prospects and permitting on Red Deer is well advanced with no expectation of any delays.

Unlike the frontier nature of the drilling in Blocks IV and V, the exploration targets in Block XX are located in basins that are either the continuation of proven producing areas or are adjacent to proven basins where the stratigraphy and the petroleum systems are well understood. Two of the high graded prospects in northern Block XX have actually been drilled and proven to be oil bearing across the lease line in Petro China's Block XIX. As such, the Block XX drilling campaign will focus on targets with good chances of success and with resource potential that offer excellent development economics and the possibility of rapid commercialisation in the event of success.

Mike Buck, CEO Petro Matad said:

'The Wild Horse 1 result is clearly disappointing but this was too big a structure to leave undrilled. We will use the data gathered to re-evaluate the Baatsagaan Basin and to look again at the prospectivity in the other basins in Block IV.

As we are fully-funded for the 2019 drilling programme, we are now in the process of identifying our priority targets. In Block V, our post-well analysis has highlighted three, four-way dip closed structures with large resource potential which we are working up to drillable status and we are also using Snow Leopard 1 data to calibrate the prospectivity in the neighbouring Tugrug Basin, including the high-graded Fox prospect.

Preparations for 2019 drilling operations in Block XX in the east of Mongolia, adjacent to the country's producing oil fields, are well advanced and will focus on near field and appraisal targets. We look forward to continuing our drilling campaign and to delivering success through the drill bit.'

Rio cuts Iran ties amid Mongolian sovereign risk www.afr.com

Rio Tinto will divest another contentious African asset as the company's leadership conceded its Mongolian copper venture was experiencing sovereign risk challenges and was complicating the company's shift away from fossil fuels.

Rio announced on Monday it would sell its 68.8 per cent stake in Namibia's Rossing uranium mine to China National Uranium Corporation for a sum that could range between $US6.5 million and $US106.5 million.

Rossing is the latest in a string of unwanted Rio assets to be divested, and recent experience suggests there is a strong chance the proceeds from the sale will be returned to shareholders just as the proceeds of Australian coal divestments have been in the past two years.

But the Rossing sale will also liberate Rio from a contentious governance issue given the investment arm of the Iranian government was a fellow shareholder in the Namibian mine.

The Iranian Foreign Investments Company owns 15.29 per cent of Rossing and while it has not had directors on the Rossing board nor purchased Rossing uranium in recent years, the relationship was uncomfortable for Rio in the context of sanctions imposed on Iran by western nations including the US.

Those sanctions were lifted to some degree in 2015 when Iran agreed with nations including the US, Germany, Russia and the UK, to reduce its nuclear capabilities, but the sanctions were reinforced this month by US President Donald Trump.

The sale continues the shrinking of Rio's presence in the developing world, which has been marred by scandals in Guinea and Mozambique.

Speaking in Sydney on Monday, Rio chairman Simon Thompson said those scandals had clearly "dented" Rio's reputation, while chief executive Jean-Sebastien Jacques was frank about challenges Rio was still facing in the developed world, including at the Oyu Tolgoi copper mine in Mongolia.

'We do have some challenges'
The relationship between Rio and Mongolia appears to have deteriorated in 2018 with Mongolia seeking changes to interest rates on loans, reviewing the 2009 investment agreement that governs Rio's investment in the mine, and changing the power supply rules that Rio must abide by.

Mr Jacques has traditionally expressed confidence that common sense will prevail in Mongolian politics despite the emotion surrounding the $US5.3 billion expansion of Oyu Tolgoi, which is widely viewed as a bellwether for foreign investment in the developing nation.

But on Monday Mr Jacques named Mongolia as one of two places Rio was seeing sovereign risk.

"We do have some challenges, we have sovereign risk challenges in our Minerals Sands businesses in Africa and in Mongolia," he said, during a presentation to civil society groups in Sydney.

Mongolia's decision to compel Rio to source Oyu Tolgoi's power from within Mongolia, rather than continuing to import power from neighbouring China, means the mine will almost certainly require a new coal-fired power station, with the Mongolian government keen for the station to built in the Tavan Tolgoi coalfield.

Mr Thompson described Oyu Tolgoi's likely reliance on coal-fired power as an "intractable problem" for a company that had sought to distance itself from fossil fuels by selling its coal mines.

"The decision to disinvest from fossil fuels was informed by our view on the supply and demand outlook for thermal coal and the opportunity that we saw to sell our coal assets for full value and to redeploy the capital into sectors where the outlook is better, in a carbon-constrained world," said Mr Thompson on Monday.

"We do face some intractable problems, including our reliance on coal-fired power in Mongolia and in South Africa. But in both cases, our operations clearly bring huge economic and social benefits, and play a major role in poverty alleviation in two relatively poor countries."

The Rossing sale comes barely two weeks after Rio netted $US576 million ($799 million) from the sale of a wharf and nearby land in the Canadian province of British Columbia.

Rio said the $US6.5 million was payable upon completion of the deal, and the total transaction cost could rise as high as $US106.5 million depending on uranium spot prices and the profitability of Rossing between now and 2025.

The transaction comes after a 44 per cent rally in uranium prices since April.

While still at very low levels by historic standards, the price rally has followed supply curtailments by Canadian producer Cameco and Kazakhstan's state-owned producer Kazatomprom, which floated a minority portion of its shares for the first time earlier this month in Astana and London.