Release of Americans by North Korea sets stage for summit, Singapore seen likely venue www.reuters.com

WASHINGTON/SEOUL (Reuters) - Singapore is the most likely venue for a summit between U.S. President Donald Trump and North Korean leader Kim Jong Un, a U.S. official said, after Pyongyang cleared a major obstacle to the meeting with the release of three American prisoners.

The three prisoners, freed after U.S. Secretary of State Mike Pompeo met Kim in the North Korean capital, were flying back to Washington where Trump said he planned to meet them early on Thursday.

The release of the last U.S. detainees in North Korea appeared to signal an effort by Kim to improve the tone for the summit and followed his recent pledge to suspend missile tests and shut a nuclear bomb test site.

A U.S. official, speaking on the condition of anonymity, said Singapore has emerged as the likeliest location for the planned summit after Trump ruled out holding it at the heavily fortified demilitarized zone between North and South Korea.
South Korean foreign minister to strategize with Pompeo ahead of Korea summits
Trump, who previously said Singapore was under consideration, said agreement had been reached on a date and venue and details would be announced within three days.

The release of the prisoners gave Trump a chance to tout a diplomatic achievement just a day after his decision to pull out of the Iran nuclear deal drew heavy criticism from European allies and others.

“I am pleased to inform you that Secretary of State Mike Pompeo is in the air and on his way back from North Korea with the 3 wonderful gentlemen that everyone is looking so forward to meeting. They seem to be in good health,” Trump wrote on Twitter.

“I appreciate Kim Jong Un doing this and allowing them to go,” Trump told reporters at the White House.

The three men are Korean-American missionary Kim Dong-chul, detained in 2015; Kim Sang-duk, also known as Tony Kim, who spent a month teaching at the foreign-funded Pyongyang University of Science and Technology (PUST) before he was arrested in 2017; and Kim Hak-song, who also taught at PUST and was detained last year.

“We would like to express our deep appreciation to the United States government, President Trump, Secretary Pompeo, and the people of the United States for bringing us home,” the three said in a statement released by the State Department as their pane stopped over in Alaska.

“We thank God, and all our families and friends who prayed for us and for our return. God Bless America, the greatest nation in the world.”

North Korean state media said they were arrested either for subversion or “hostile acts” against the government.

Until now, the only American released by North Korea during Trump’s presidency was Otto Warmbier, a 22-year-old university student who returned to the United States in a coma last summer after 17 months of captivity and died days later.

Warmbier’s death escalated U.S.-North Korea tensions, already running high at the time over Pyongyang’s stepped-up missile tests.

EBRD and EU improve waste management in Ulaanbaatar www.ebrd.com

The EBRD is providing a US$ 9.7 million loan (€7.9 million equivalent) to Ulaanbaatar municipality to improve the city’s waste management.

Turquoise Hill announces financial results and review of operations for the first quarter of 2018 www.turquoisehill.com

Turquoise Hill Resources today announced its financial results for the quarter ended March 31, 2018. All figures are in
U.S. dollars unless otherwise stated.
HIGHLIGHTS
 Oyu Tolgoi achieved a strong All Injury Frequency Rate of 0.21 per 200,000 hours worked for the three months ended
March 31, 2018.
 Underground development achieved record-level monthly progress during Q1’18, with 2.6 equivalent kilometrescompleted during the quarter.
 In March 2018, the underground team experienced their highest development month to date.
 Since the restart of development, a total of 10.3 equivalent kilometres of lateral development has been completed.
 Sinking of Shaft 2 was completed in January 2018 and sinking of Shaft 5 was completed in March 2018.
 During Q1’18, underground expansion spend was $270.5 million, resulting in total project spend since January 1, 2016
of approximately $1.4 billion.
 Production from first draw bell remains planned for mid-2020 and sustainable first production in 2021.
 During Q1’18, Oyu Tolgoi produced 38,800 tonnes of copper and 42,000 ounces of gold.
 Revenue of $245.6 million in Q1’18 increased 3.4% over Q1’17 reflecting higher copper and gold prices partly offset by
lower concentrate sales volumes.
 For Q1’18, the Company recorded income of $79.7 million and net income attributable to owners of Turquoise Hill of
$85.7 million or $0.04 per share.
 Turquoise Hill generated cash flow from operating activities before interest and taxes of $14.7 million in Q1’18.
 For Q1’18, Oyu Tolgoi’s cost of sales was $2.23 per pound of copper sold, C1 cash costs were $1.76 per pound of
copper produced and all-in sustaining costs were $2.07 per pound of copper produced1
.
 Operating cash costs1
of $176.6 million in Q1’18 increased 4.9% over Q1’17 reflecting higher open pit and
concentrator maintenance costs.
FINANCIAL RESULTS
Income in Q1’18 was $79.7 million compared with $29.7 million in Q1’17. The increase mainly reflects the impact of
higher copper prices, reduced depreciation and depletion and lower finance costs due to higher amounts of interest
capitalized to property, plant and equipment, partially offset by reduced sales volumes. Cash generated from operating
activities in Q1’18 was $19.4 million compared with $86.3 million in Q1’17. This reduction was primarily driven by
significant movements in working capital, partly offset by higher copper prices. Capital expenditure on property, plant and
equipment was $285.7 million on a cash basis in Q1’18 compared to $147.9 million in Q1’17, attributed principally to
underground ($270.5 million) with the remainder related to open-pit capital activities.
Turquoise Hill’s cash and cash equivalents at March 31, 2018 were approximately $1.5 billion.

Please review the full report at turquoisehill.com

Former head of China's Anbang jailed for 18 years www.bbc.com

The former head of China's embattled insurance and financial giant Anbang has been jailed for 18 years for corruption and fraud.

IMF staff team working in Mongolia www.montsame.mn

Ulaanbaatar /MONTSAME/ The International Monetary Fund (IMF) is conducting the fourth review of the Extended Fund Facility Program being realized in Mongolia.

Victory day 2018: Mongolia's role in defeating fascism www.news.mn

On Wednesday 9 May, Russia is marking the 73rd anniversary of the victory over Nazi Germany in the Great Patriotic War of 1941-1945.

Meat processing complex to be built in Tuv Province www.news.mn

For several years, Mongolia has been looking at establishing large scale slaughter and meat processing plants in order to boost exports. Currently, large volumes of meat are being exported to China, however, Beijing is concerned about inconsistencies in health standards. For this reason, it was only natural that China would become the main partner in establishing such a facility.

Walmart wins battle for India's Flipkart www.bbc.com

Walmart will pay about $16bn to take control of Flipkart, India's biggest online retailer, in a deal that puts it head to head with Amazon.

Amy Leung: We hope to see Mongolia move to upper middle-income country www.theubpost.mn

The UB Post was introduced to the Asian Development Bank (ADB)’s operations in Mongolia, including projects for air pollution reduction and ger area development, from the bank’s newly appointed Director General for East Asia Department Amy Leung. She also oversees the ADB Sustainable Development and Climate Change Department.

Leung has an extensive knowledge about East Asia affairs as she previously worked as the deputy director general for East Asia Department from 2014 to 2016. Before her appointment as deputy director general, she was the director of Urban Development and Water Division in Southeast Asia Department, covering Cambodia, Indonesia, Lao PDR, Myanmar, the Philippines, and Vietnam. Before that, she was the director of Social Sectors Division in East Asia Department.

Does ADB’s East Asia Department only cover Mongolia and China?

The East Asia Department has only two countries – Mongolia and China.

When you do economic analysis, do you not evaluate Hong Kong, South Korea, and Taipei?

The Economic Research Department when they do conduct research they cover the whole region and they also cover these areas, but for the East Asia Department, we do things related to China and Mongolia.

If North Korea applies to enter as a member of ADB. How will you respond?

I think our President Takehiko Nakao answered this question. I think ADB’s position is that we’re very encouraged with the development of North Korea, Italy, and other countries. To become a member of ADB, we need the consensus of our shareholders. Currently, ADB has 67 shareholders both from developed countries and developing countries.

As of now, we will continue to monitor the congress and the development and see how it goes. It’s still early to be talking about membership but since North Korea is indeed in East Asia, if things continue to improve, they can become a member of ADB.

What is ADB’s main focus in Mongolia?

The Country Business Operation Plan was approved last year and its main focus is to help Mongolia diversify economically. Last year was a crisis for Mongolia. During that time, funding partners were all reluctant to not only support the government but also the country program. We do have projects in energy, health, transport, and development of ger areas, which is a very big part of our plan.

We have three pillars. So, the three main areas we are supporting Mongolia are firstly, strengthening environmental sustainability. Just a month ago, Ulaanbaatar Air Improvement Program was signed. The second one is developing infrastructure for economic diversification, and the third is promoting economic and social stability. To support and achieve these targets, the projects just mentioned also cover roads, energy, cleaning the environment, and promoting development. Ger area is an area we’re very focused on. We’re also doing a number of projects in the health sector in Mongolia.

Can you tell me about ADB’s operations in Mongolia, specifically ADB’s current projects targeting promotion of sustainable development, resolving issues related to climate change and water scarcity, as well as future plans for Mongolia?

ADB’s current active portfolio in Mongolia includes 1.15 billion USD of loans and grants, covering 29 projects. Environmental sustainability is one of the three main pillars in ADB’s current CPS, 2017-2020 (the other two are Economic and Social Stability and Infrastructure to Support Economic Diversification). Between 2008 and 2016, ADB provided 26.5 million USD in grants and TAs for the environment sector and ADB plans to significantly increase this over the remainder of the CPS period.

In addition to the loan on air quality, ADB is providing a grant to reduce soil pollution in ger areas by improving sanitation and is providing technical assistance support to the government to conserve forest genetic resources.

Going forward, ADB aims to provide support to improve solid waste management and recycling (2018 –three million USD grant); managing solid waste in secondary cities (2019 – two million USD grant); improve the management of wastewater in aimags (provinces) and soums (Southeast Gobi Urban and Border Town Development Project – 2018 loan for 20 million USD); and strengthen disaster risk management (2020 – 25 million USD loan).

ADB recently loaned 130 million USD for air pollution reduction. I would like an update on this. What is the money being used for?

This stand-alone PBL (policy-based loan) was approved in March 2018. The first tranche, 100 million USD, will be disbursed in May, and the second tranche, 30 million USD, is expected to be disbursed in December 2018 upon the government’s fulfillment of the remaining policy commitments. The PBL is part of ADB’s contribution to the IMF “rescue package”.

The recommended policy actions tackle the air pollution problem from a holistic multi-sector perspective over short-term, medium-term and long-term horizons. And amid fiscal tightening and efforts to stabilize the economy imposed by IMF, the PBL expands public resources for air pollution control, also through efficiency and resulting fiscal savings and by leveraging private sector finance,

ADB’s policy dialogue has helped the government of Mongolia implement urgent measures to reduce air pollution and protect human health in Ulaanbaatar, such as the expansion of district heating and retiring highly inefficient and polluting small heat-only boilers, and the provision of cleaner heating fuel.

The PBL lays the foundation for the longer-term transition to cleaner energy systems and resilient and low-carbon urban development, in complementarity with ADB’s ongoing and planned portfolios, such as promoting a shift to cleaner transport fuel and the use of renewable energies for heating.

With the PBL, ADB leads the development coordination dialogue on air quality improvement and amplifies the impact of other donor interventions (JICA, KEXIM, WB, and others).

I noticed that ADB’s investment to the Ulaanbaatar Urban Services and Ger Areas Development Investment Program will increase through 2020. Can you tell us specifically what kinds of projects will be implemented?

Basically, this project will develop ger areas in terms of providing basic services. For example, water sanitation will be one of the key areas of our intervention. We approved the first tranche of the project in 2013 and the second in 2017. The first one was 130 million USD and the second 67 million USD.

In conjunction with the ger area improvement, we will be processing green affordable housing. Not just housing but housing that uses low carbon technology. A lot of the project is related to the ecosystem, so like recycling. The ger area project is directed to heating, roads, and water supply.

Do you have a specific target you want to meet through this project by 2020?

It is not just one project. It’s a big program with a bunch of small programs. I think that the green affordable housing had a target of 10,000 houses. The project is still in process so it’s not definite yet. We hope that it will provide a more ecological approach to making the ger area more livable.

What are the biggest challenges you face in implementing projects in Mongolia?

It’s the short working season. Only six months can be used for construction. If we look at our projects, we can only make progress a season at a time, because of that constraint, unlike in other countries where we can work all year round. The harsh weather conditions impact our timetable for implementation in Mongolia.

We missed the construction season a couple of times and had to wait for six months. Sometimes it happens when we go for a meeting with constructors because of some dispute or disagreement in negotiation and after it’s resolved, the construction season is over two months later.

Like in most projects, if the implementing agency is working with ADB for the first time, we need to build their capacity because we have a lot of procedures, which is also a part of the reason why your government is borrowing from ADB – to build capacity and knowledge of officials in planning, managing, and implementing projects. In some cases, it could cost delays.

How cooperative is the Mongolian government?

At project level, the Mongolian government is very cooperative. I remember a health project and a couple of social protection policy loans that we supported the government in ensuring. Because Mongolia is so dependent on mining, the economy sort of collapses when the price of metal resources goes down. Our support to that is very effective in my opinion.

Overall, I would say the government’s cooperation is very consistent.

As a large economic partner in Mongolia, we are working really closely with the government right now to implement. We have some policy-based loans that have been challenging but the government actually met the conditions last year. It’s challenging but we are working with the government to identify and resolve issues.

ADB is discussing its Strategy 2030. What is the plan for Mongolia?

The Strategy 2030 is guided ADB’s next 10-year focus — the area we want to focus on. We want to work with our developing member countries to identify the issues we can join hands on. We identified seven issues, including inequalities and poverty reduction, climate change, disaster resilience, and environmental management. I think Mongolia will still require partnership in these areas. Then there’s gender equality. Mongolia actually has good gender equality. There’s also regional cooperation, rural development and agriculture, livable cities, and governance.

These are the areas we want to focus but it’s more to do with getting results. For example, we will not be just building schools; we will see the impacts on students.

How does ADB vision Mongolia in let’s say five years

We hope that Mongolia will be clean, green, very livable, and have a diverse economy. We have been working in Mongolia for more than 30 years. We are committed to support and hopefully, together we can support Mongolia to continue its economic development. I think that other than the environmental aspect, we will diversify the economy. For Mongolia, this is crucial for stabilizing the economy. We will work at the macro level in these two areas and then the air pollution and infrastructure.

I see us continuing our work in Mongolia for many years and hopefully, we’ll see it move to the upper middle-income country.

Mongolian mining Minister grills Chinese oil company www.news.mn

A delegation, led by Mining and Heavy Industries Minister D.Sumiyabazar, is currently working in the eastern provinces of Mongolia to see how efficiently the oil companies are operating. On 5 May, as part of the inspection, D.Sumiyabazar visited PetroChina Daqing Tamsag LLC, which is extracting oil in the Tamsag area of Dornod Province's Matad Soum.