The Minister of Mining and Heavy Industry took the measure in an effort to reduce the 120 km logjam of coal trucks at the Gashuunsukhait border crossing.

“It has been four months since the situation arose at the Gashuunsukhait border crossing. The decision aims to protect the rights of 4,000 truck drivers who are waiting to pass the border,” said D.Ariunbold, CEO of Erdenes Tavan Tolgoi JSC on December 14, speaking to a MONTSAME correspondent.

Is has been estimated that the 4,000 trucks will pass the border within 7-8 days, after which the coal loading will resume at the Tavan Tolgoi mine. After the logjam is relieved, the companies will begin to load coal on a quota in correlation with the number of trucks passing the border on daily basis so as to avoid similar complication. The quota is 45 percent for Erdenes Tavan Tolgoi JSC, 40 percent for Energy Resources LLC and 15 percent for Tavan Tolgoi JSC.

By far, Erdenes Tavan Tolgoi JSC has exported 8.5 million tons of coal although it planned to export 11 million tons of coal in 2017.

The landlocked nation between China and Russia is one of 17 jurisdictions outside the European Union that risk losing access to EU funds, or facing other forms of censure, after the bloc this month deemed them to not be cooperative on tax matters.

"We have to implement a series of coordinated measures at all levels of government," Foreign Minister Damdin Tsogtbaatar said in comments posted on Facebook on Tuesday, without mentioning specifics.

The foreign ministry verified the remarks to Reuters on Wednesday, but declined to provide details.

Tsogtbaatar said he discussed the issue last week with officials of each EU member nation at a ministerial meeting in Vienna of the Organisation for Security and Co-operation in Europe.

It is important that Mongolia comply with international standards for tax, said Dendevsambuu Onchinsuren, the country managing partner for tax accountancy Deloitte Onch in Ulaanbaatar, the capital.

"Mongolia needs to cooperate with the EU," Onchinsuren said. "Also it needs to improve its transparency."

In 2011, Mongolia took the rare step of cancelling a tax treaty with the Netherlands, saying it would cost the country income from the Oyu Tolgoi mine jointly owned by mining giant Rio Tinto and the Mongolian government.

The five-year loan will enable Monos Group to become more competitive, by supporting the certification of manufacturing capacity and improving employee skills through training. By the end of 2019 the firm aims to secure Good Manufacturing Practice (GMP) certification and to have at least 30 new employees who are trained regularly according to GMP standards.

The optimisation of the company’s balance sheet will support Monos Group – which is owned by Mr Luvsan Khurelbaatar, a prominent Mongolian businessman, and his wife and two children – in becoming more resilient.

Anand Khurelbaatar, CEO of Monos Holding, said: “Monos has been working successfully with the EBRD, which has provided substantial support to the development of Mongolia, since the first investment agreements were signed in 2010. We are happy that the first stage of the GMP production facility project, the largest project in the Mongolian pharmaceutical sector and implemented jointly by Monos and the EBRD, has been completed and that we are now proceeding with the signing of the second-phase investment. We would like to express our gratitude to the EBRD, not only for the financial support it has provided to us, but also for being a business advisor, partner and mentor. We hope that our cooperation with the EBRD will continue to expand.”

Irina Kravchenko, EBRD Associate Director, Head of Mongolia, said: “Monos is the Bank’s longstanding client and we are very pleased with the progress the company has made in expanding its activities and introducing best manufacturing practices in Mongolia’s pharmaceutical sector. We are happy to continue supporting the firm’s growth and believe that our support will help to further strengthen its competitiveness as well as contribute to the diversification of the local economy.”

The Bank is a leading institutional investor in Mongolia. To date the EBRD has invested more than €1.42 billion in over 92 projects in the country. Its investments aim to make the local economy more competitive, integrated and resilient. According to the EBRD’s latest regional economic forecast, published in November, the Mongolian economy will grow by 2.6 per cent this year and 3.0 per cent in 2018.

In review which made by S&P says "We completed our review on MMC’s operation and capital structure. It is appreciated that coking coal price is expected to be stable for next 12 months and the company can meet cash flow from internal resource entirely at current condition and retain liquidity.

Currently credit rating on Mongolia is ‘В-/ В’. Corporate credit rating does not excess credit rating on the country and it associates certainly with each other. For that reason credit rating on MMC assigned to ‘B’, mentioned in the review as well.

Energy Resource LLC has successfully accomplished structural reform on credit in 2016.

The MSE ALL Index decreased by 1.78 percent to stand at 1,200.94 points. The MSE market cap stands at MNT2,557,178,728,873

Aspire is starting a drilling and exploration program
Aspire Mining Ltd (ASX:AKM) has successfully completed its fully underwritten $16.5 million pro-rata renounceable entitlement offer at an issue price of $0.012 per share.

The funds will be used to expedite development of Aspire’s 90% owned Nuurstei Coking Coal Project in Mongolia.

Aspire aims to take the project into production within 18 months.

The company is now planning to undertake a drilling and exploration program at the Nuurstei project.

Rights issue details

Eligible shareholders had the opportunity to subscribe for six new shares for every five shares held at an issue price of $0.012 each.

The rights issue was fully underwritten by Patersons Securities Limited and sub-underwritten by the company’s major shareholder Noble Group (SGX:CGP).

Noble subscribed for the full amount of its entitlement (circa $2.97 million) and took up a further amount of $0.59 million on a priority sub-underwriting basis.

This takes Noble’s voting power in the company to 19.9% on an undiluted basis.

Drilling and exploration program commencing

Aspire has planned a $2 million drilling and exploration program at the Nuurstei Coking Coal Project.

The program aims to increase current resources and establish an ore reserve, which will then lead to a new resource model planned to be completed in the first quarter of 2018.

Capital costs for the development of Nuurstei have been further refined, with the current estimate of US$13 to US$14 million to be confirmed in the feasibility study process.

The end objective of these studies is to confirm an economically viable mining operation commencing within an estimated 18 month period.

David Paull, managing director, said: “Further to our announcement on Tuesday 5 December, we are pleased to have successfully raised the full amount of $16.5 million from the fully underwritten rights issue.

“The underwriting was supported by a strong panel of institutional sub-underwriters seeking to position themselves as shareholders and we welcome them in that capacity.

“Our focus is now squarely on confirming the feasibility and commencing the development of the Nuurstei Coking Coal Project.”

Debt reduction on track

Aspire intends to pay $0.19 million of the funds raised under the rights issue to Noble which, when combined with Noble’s participation in the rights issue, will result in a total reduction of $3.75 million in the amount owing to Noble.

This completes the first of a further series of transactions designed to reduce the existing US$6.65 million debt owing under the Noble Facility to US$1.8 million.

According to the Mongolian National Audit Office, the institution is planning to audit to country’s biggest mining companies such as Oyu Tolgoi, Erdenes TT as well as the Governmental Vehicle Fleet, the Civil Aviation Authority, the Mineral Resources and Petroleum Authority, Presidential Election Spending, reports on implementing ASEM 2016-2017, the State Housing Corporation, and Ministry of Defence investment spending.

The projected cost of the audit as set out in the bill is over MNT 700 million.

The Minister talked about how the Mongolian Government considers eradication of poverty and unemployment a priority, and the International Monetary Fund’s Extended Fund Facility program is proving effective, citing the projected 5.5 percent economic growth in the country. “Although budget discipline has seen improvement, there are provisions that take a step back as far as social protection is concerned and rule out policy to protect low-income citizens,” he noted.

Minister S.Chinzorig also emphasized the need to take Mongolia-US cooperation in labor and social protection to a new level, requesting assistance from the Embassy. “Closer cooperation in labor and social protection will help protect the rights of Mongolians living and working in the US, ensure social guarantee and create an integrated database,” he said.

For his part, Mr. Micaller expressed the US’ interest to work closely with the Labor Ministry, informing that he was holding talks with the members of the new Cabinet regarding ways to strengthen Mongolia-US comprehensive partnership. “Improvement of population livelihood through diversification of the economy and increased employment is an important area of focus in bilateral cooperation. The US is ready to assist Mongolia in all areas in order for it to successfully implement the IMF program and revive its economy,” he said.

Mr. Micaller also touched upon the Millennium Challenge Corporation’s Second Compact Agreement with Mongolia, which is being drafted and will definitely boost the social and economic development of Mongolia.

The Charge d’Affaires also conveyed Washington’s appreciation of Mongolia’s contribution to peaceful resolution of the tensions in the Korean Peninsula and inquired into an issue regarding the workers from the Democratic People’s Republic of Korea (DPRK) in Mongolia, which has surfaced in western media.

Minister S.Chinzorig answered that the Government had taken a decision to not extend the labor agreements of over 1,100 workers from the DPRK in the country, enforcing a UN Security Council's resolution. Labor agreements will not be newly established either. “However, there is no discussion of returning all workers at once. The current workforce will have left the country by June, 2018,” the Minister said. During a press conference held on December 5, Minister of Foreign Affairs D.Tsogtbaatar said that the DPRK Ambassador in Mongolia had been informed of the matter.

The sides also touched upon Mongolia’s request for inclusion in the US H-2 visa category, which is yet to be resolved by Washington.

According to the Ministry, collaboration between the Altai Krai and Mongolia is conducted on an ongoing basis. In 2017, this country, Altai Krai exported feed crops, whey, cereals and cereals cereal, flour, vegetable oil, eggs, ice cream and other kinds of agricultural products and food products.

«For 11 months in Mongolia sent 419 consignments with a total weight of almost 8242 tons. In great demand among foreign partners are feed the Altai production — bran, ration, feed. In the total sales volume they occupy a major share», — stated in the message.

The Agency notes that the agreement on the supply of feed to the affected this year by drought khovdsky aimag was reached in August of this year during a working meeting head of the region Alexander Karlin, Governor chodskeho aimag of Mongolia Damdin by Alcanzando.

In addition to the feed, food, Altai Krai exports crops. This year in the Mongolia ship food oats and millet, flax, canola, soy. In December, along with the designated products sold in the region Mongolia beef cattle productivity. Sale made two breeding farms of the region — «Industrial» Biysk district and Kolos Loktevsky district.