� The Cabinet decided to submit to the Parliament a draft bill on General Program on Funding established between the Government of Mongolia and the Asian Development Bank. Financing of USD 468 million will be spent for diversifying economy, improving business environment, ensuring stability of social protection sector and creating jobs.

� The Cabinet resolved to submit to the Parliament a draft law on Mongolia-Korea intergovernmental general agreement on Issuance of Soft Loan from Economic Development Cooperation Fund in 2017-2019. The soft loan equal to USD 700 million has an annual interest of 0.2 percent and 30 years of repayment term and is to be spent for elimination of air pollution of Ulaanbaatar city.

� The Cabinet decided to set amount of undue tax loss at 0.050 percent a day in cases a tax payer does not pay his/her taxes in scheduled time or tax department and inspectors impose and collect unreasonable or excessive taxes.

� The Cabinet adopted methodology to compute index of provincial development, information required and list of organizations to give information. The index should be computed within the first quarter of the year and announced to public.

� The Cabinet decided to deliver information to National Security Council about condition of crime and law violations related to illegal circulation of narcotic drugs, and psychotropic.

� The Cabinet adopted Requirements and registration rule for citizen and legal body who render consulting service. The rule will set requirements for citizens and legal bodies in construction sector to give professional consulting service and regulate other relations.

In a research report consultants Wood Mackenzie said the combination of scheduled mine closures, top producer Glencore's strategic cuts and the impact of environmental inspections in China has depleted global stocks of concentrate.

According to the report global zinc stockpiles fell by a third in 2017 to 1.8 million tons, equivalent to 47 days of global usage. Exchange stocks halved from 500kt to 250kt (equivalent to just 6 days of global consumption) over the same period.

By the end of the second quarter, there will be less than 40 days’ of stock available for consumers; "a critically low level" according to the authors which should propel prices to $4,000 a tonne in the third quarter of this year.

"As the rapid escalation of the price thus far in 2018 has demonstrated, there is a strong possibility that investor
enthusiasm will pre-empt the tightness in the refined market and the cyclical peak in the price could be higher and sooner than
our base case assumption of a Q1 2019 average of $4,100/t."

Zinc has more than doubled since hitting multi-year lows in January 2016 when top producer Glencore curtailed production to shore up prices.

In December, Glencore said it would restart its Lady Loretta mine in the first half of this year, but added that it still expects zinc output to decrease slightly in 2018 to a shade under 1.1 million tonnes. In 2019, Glencore sees its zinc output creeping back up to 1.16 million tonnes.

Overall global zinc supply is to increase with additional capacity coming online in Australia (MMG's Dugald River project) and South Africa (Vedanta's Gamsberg mine).

“The decision has been taken in response to the increase of oil price,” explained Minister of Finance Ch.Khurelbaatar, while adding that oil price was around USD 40 when agreement was reached on the International Monetary Fund’s Extended Fund Facility Program. Oil price remains above USD 60 at the global market now. 
Kh.Aminaa

“Within the first quarter of 2018, the feasibility study on the oil refinery project will conclude, paving the way for the construction works to commence in the second quarter,” said Head of Cabinet Secretariat G.Zandanshatar, reporting on the Cabinet meeting on January 24.

In accordance with the decision, 150 ha area will be designated for special government use.

Moreover, state-owned enterprises and organizations will work on the construction of about 20-km-long railway and road connecting the oil refinery with Sainshand and energy transmission line.

A working group consisted of officials from the General Intelligence Agency, National Police Agency, Independent Authority Against Corruption and the General Authority for Specialized Inspection will be responsible for checking on each stage of the project.

The Oil Refinery Project will be co-implemented with the Republic of India.
Kh.Aminaa

Officials from the EXIM Banks of China and South Korea, Development Bank of Mongolia and Russian Vnesheconombank attended the meeting. The Development Bank of Mongolia chaired NEA EBA in 2017, therefore presided the 8th working-level meeting of the Association.

The GTI is an intergovernmental cooperation mechanism among Mongolia, China, the Republic of Korea and the Russian Federation, established in 1995 and supported by the United Nations Development Programme. The initiative focuses on the priority areas of transport, trade, investment, tourism, agriculture, energy and environment. Three Mongolian aimags – Khentii, Dornod and Sukhbaatar are involved in the initiative.

At the 8th working-level meeting, the sides exchanged views on funding of the 2nd stage of the Specialized Grain Terminal project in the Russian Zarubino port and potential projects and programs for stepping up cooperation.

The NEA EMA was established in 2012 to operate as a financial and economic cooperative mechanism of the GTI. Members of the association - Development Bank of Mongolia, Russian Vnesheconombank and the EXIM Banks of China and South Korea - work towards expanding the scope of cooperation with the Governments of the member states.
M.Anudari

Foreign Affairs Minister D.Tsogtbaatar will make a speech at the ‘The Belt and Road Impact’ session and participate in ‘Creating a shared future in a fractured world’ and ‘Peace and stability in Korean peninsula’. This year the theme of the WEF is ‘Committed to improving the state of the world’. In addition, the Minister will hold bilateral meetings with government representatives from other countries.

Mining and Heavy Industry Minister D.Sumiyabazar will attend the following sessions: ‘Policy meeting of leaders of mining and metallurgy sector’ and ‘Creating a sustainable economic system’.

Over 3000 participants in total, including heads of states and government of 70 countries, more than 350 government members and representatives of international organisations, business, culture and mass media have gathered at the 48th WEF to discuss pressing issues and challenges in the world and ways and initiatives of solutions during over 400 sessions.

The construction of the refinery is scheduled to begin in the second quarter this year, the Mongolian government press office said in a press statement Wednesday.

The project was financed by a loan from India, which was announced during Indian Prime Minister Narendra Modi's visit to the country in 2015.

The refinery will have a processing capacity of 1.5 million metric tons of oil per year and will annually produce 560,000 tons of gasoline and 670,000 tons of diesel fuel, as well as 107,000 tons of liquefied gas. The refinery would boost Mongolia's gross domestic product by 10 percent.

Mongolia currently exports crude oil to China while importing petroleum products from Russia.

The meeting, chaired by Xi Jinping, general secretary of the Communist Party of China Central Committee, approved a guideline about establishing such a procedure and organization.

The goal is to lawfully settle commercial, trade and investment disputes regarding the Belt and Road Initiative, protect the lawful rights and interests of Chinese and foreign individuals on equal footing and create a stable, fair and transparent business environment with the rule of law, those at the meeting decided.

China has signed deals related to the Belt and Road Initiative with more than 80 countries and organizations.

Investment made by Chinese enterprises in countries involved in the initiative have totaled more than $50 billion and generated close to 200,000 new jobs, Foreign Minister Wang Yi said on Monday.

Efforts to set up the procedure and the organization to handle disputes should follow the principles of extensive consultation, joint contribution and shared benefits and should be based on China's existing judicial, arbitration and mediation institutions, the leaders agreed.

Such efforts should integrate domestic and foreign legal services and establish a diversified resolution procedure that leads to effective synergies in arbitration and mediation processes, the leaders determined.

Xi said ensuring success in the reform is of great significance, as this year marks the first for fulfilling the spirit of the 19th CPC National Congress as well as the 40th anniversary of China's reform and opening-up.

The officials approved the Leading Group's key missions this year and a review report on the group's work from last year.

They approved a plan to boost China's role in leading and organizing major science plans and major science projects that involve global efforts.

Those at the meeting also approved a pilot guidance on works related to the transfer of China's intellectual property rights overseas.

The scope, contents and mechanism of screening such transfers should be tackled to reinforce management of the transfers relating to national security, they said.

They also approved guidelines on efforts such as boosting government information transparency in the area of public welfare, improving treatment for technical workers, managing the country's science data and promoting production safety.

The Vietnamese president lauded the visit of Mongolia's top legislator visit to Hanoi, expressing his belief that the visit will contribute to the strengthening of friendship and cooperation between the two countries.

He also expressed his pleasure at the growing Vietnam-Mongolia ties over the past years, including cooperation between the two parliaments.

For his part, Mr M.Enkhbold affirmed that Vietnam is an important partner of Mongolia in the Southeast Asian region.

Briefing his host on his talks with his Vietnamese counterpart Nguyen Thi Kim Ngan, Speaker Enkhbold said that the two sides agreed to bolster political, economic, trade cooperation as well as people-to-people contact by organising culture days in their respective countries in order to celebrate the 65th anniversary of bilateral diplomatic ties in 2019.

President Quang spoke highly of the expressed intentions for deepening Vietnam-Mongolia relations outlined by the two parliament leaders, stressing the need to increase delegation exchanges between the two countries.

He thanked Mongolia for supporting Vietnam at regional and international forums, while asking Mongolia to support Vietnam’s candidacy as a non-permanent member of the UN Security Council.

He pledged that Vietnam's willingness to share its experience in international integration, and to help connect Mongolia with the ten ASEAN countries.

Speaker M.Enkhbold affirmed Mongolia’s backing for Vietnam’s candidacy for a non-permanent seat in the UN Security Council. (Vietnam net)