Cooperation to be directed at SME production and job creation www.montsame.mn

Ulaanbaatar/MONTSAME/ Minister of Food, Agriculture and Light Industry B.Batzorig met Wednesday Yolanda Fernandez Lommen, Asian Development Bank’s (ADB) Country Director for Mongolia to discuss ADB’s partnership with the country.

Seminar on mineral sector and gender to be held www.montsame.mn

Ulaanbaatar /MONTSAME/ On occasion of the 95th anniversary of mining industry of Mongolia, a seminar themed ‘Mineral Industry and Gender’ will be held on November 17 at a conference hall of ‘Chinggis Khaan’ hotel.

Saudi Arabia could seize $800bn in assets in corruption crackdown www.rt.com

The Saudi anti-corruption push involving the arrest of princes and government ministers may lead to the confiscation of cash and other assets worth of at least $800 billion, according to people close to the issue, writes the Wall Street Journal.

“They reckon they could get around two to three trillion riyals from these people. That’s the number they are talking about,” a person close to the government told the paper.

CIC, Goldman Sachs establish China-U.S. industrial cooperation fund -U.S. State depart www.reuters.com

BEIJING (Reuters) - China Investment Corp (CIC) and Goldman Sachs have signed a strategic agreement to establish a China and United States industrial cooperation fund on the sidelines of a state visit to Beijing by U.S. President Donald Trump.

Non-banking financial institutions increase their share capital in 2017 www.mongolia.gogo.mn

Following the Financial Regulatory Committee's October 2016 order to nine non-banking financial institutions (NBFIs) to increase their shareholder value, NFBIs including National Credit, Khaan Credit, Ashig Golomt, Utpala Finance, Mongolian Financial Partners, Asia Capital Corporation, SONK, and others have raised their capital value to a minimum of 2.5 billion MNT.

Newly established NBFIs are no required to hold a minimum of 2.5 billion MNT in capital, and veteran institutions have been gradually raising their shareholder value over the past year. Exponential Fund Management LLC’s shareholder value increased by 110 million MNT in the past 12 months, reaching 214 million MNT.

Copper, iron ore prices up despite plunge in Chinese imports www.mining.com

Copper and iron ore prices bounced back on Wednesday despite customs data showing a sharp drop in imports by China as the country's winter anti-pollution program cuts down refinery and blast furnace production.

120 billion MNT allocated for Ipotek loans in 2018 www.mongolia.gogo.mn

Under the proposed 2018 state budget, 120 billion MNT will be allocated for Ipotek loans.

The allocation for the 2017 state budget was 111 billion MNT. Since the implementation of the International Monetary Fund’s Extended Fund Facility program, the Bank of Mongolia (BoM) has been financing Ipotek loans with bond financing.
The government has been responsible for financing in the form of coupon payments and 9 billion MNT distributed to commercial banks from the state budget each month. The BoM is financing 16 billion MNT in Ipotek-backed bonds and 25 to 35 billion MNT in loan financing is being allocated to commercial banks.
The government is expected to be in full control of the Ipotek loan program in 2018, as discussed with the IMF. The balance of Ipotek loans currently stands at 4.2 trillion MNT, with 77 percent of loans having a 5 and 8 percent interest rate and the remaining 23 percent of loans having bank financing.
In September 2017, 49.6 billion MNT in loan financing was granted to 808 borrowers, which brings the total number of Ipotek borrowers to 92,600. Ipotek loan approvals fell by two percent compared to September 2016.

Rio Tinto joins race for stake in world’s largest lithium miner www.mining.com

Rio Tinto (ASX, LON:RIO) is said to be weighing an investment in Chile’s Chemical and Mining Society (SQM), the world's largest lithium producer, becoming the latest in a long line of companies interested in grabbing a stake in the Santiago-based miner.

According to Chilean news site El Mostrador (in Spanish), the Anglo-Australian giant is eying the 32% interest in SQM that Canada’s Potash Corp. of Saskatchewan (TSX, NYSE:POT), the world’s largest producer of the fertilizer by capacity, has to sale to be allowed to merge with smaller rival Agrium (TSX, NYSE:AGU).

The Saskatoon-based potash miner is working with Goldman Sachs and BofA Merrill Lynch to sell its stake in SQM (worth about $4.5 billion at current market values), and so fulfill some of the conditions imposed by regulators in China and India to approve the company’s friendly merger with Agrium.

El Mostrador suggested Tinto Rio had already made a bid, potentially trumping Chinese companies Sinochem, Tianqi and GSR Capital, all of which had also expressed interest in SQM.

The news came on the heels of PotashCorp and Agrium announcing Tuesday that China’s ministry of commerce had approved the merger, but required the sale of PotashCorp’s minority holdings in Arab Potash Company and SQM within 18 months of closing, and Israel Chemicals Ltd. within nine months.

SQM, which has a market value at just over $15 billion, produced roughly 44 million tonnes of lithium carbonate last year and is developing new projects in Chile and Australia.

Rio's current incursion in the lithium market is mostly limited to its 100%-owned lithium and borates mineral project in Jadar, Serbia, which is still in the early stages of development.

While the company’s chief executive Jean-Sebastien Jacques has not ruled out acquisitions in recent comments to the market, he has also noted the company would only consider opportunities that make a "smart buy"
That’s why purchasing a stake in SQM would not be inconsistent with Rio's current strategy, said Investec in a note to clients, adding that such move would only provide a foothold in a sector where the company has some exposure, but with Jadar still many years away, "if it is developed at all".

Sources familiar with PotashCorp’s stake sale said in September that US chemical company Albenarle Corporation (NYSE:ALB) had already expressed its interest in acquiring a piece of SQM.

If successful, such deal would give the Charlotte, North Carolina-based firm a leading position in Chile’s lithium sector, something the country’s government would try blocking at all costs.

Laws enacted in the 1970s and 1980s classify lithium as a “strategic” commodity for Chile on the grounds it can be used in nuclear-fusion power plants. While the South American nation is very unlikely to build one of those facilities any time soon, controls on lithium production remain and only two companies — SQM and Albemarle — are currently allowed to mine the white metal used in electric car batteries.

PotashCorp-Agrium merger to close by year-end

Meanwhile, the PotashCorp-Agrium merger is moving forward with the companies saying Tuesday they expect the deal close by year-end. To expedite the process, Agrium has agreed to sell its Idaho phosphate production facility for $100-million to fertilizer company Itafos. The move aims to address concerns of US regulators about the tie-up.

The companies said that the new company, to be called Nutrien, would create the world’s largest potash miner worth about $36 billion, including debt.

The merged firm is expected to achieve $500 million of annual operating synergies.

Nutrien will also be the second biggest producer of nitrogen fertilizer with operations in 18 countries and more than 20,000 employees worldwide.

November 08, 2017 trading report www.mse.mn

On November 08, 2017, 174,946 shares of 52 firms listed as Tier I, II, and III were traded. 27 firms’ shares increased in price, 17 decreased and 8 remained unchanged. Juulchin Govi JSC /JGV/ was the top performer, increasing 15.00 percent, whereas UB-Buk JSC /BUK/ was the worst performer, decreasing 14.30 percent.

Russian Altai Republic interested in Mongolian livestock sector www.news.mn

Located in western Siberia, the Russian Altai Republic shares more than just a common border with the mountainous west of Mongolia: both are important agricultural regions, well known for ecologically pure products and the “Altai” brand. On Tuesday (7 November), the Mongolian National Chamber of Commerce and Industry (MNCCI) hosted a business meeting for a trade delegation from the Republic. The two sides exchanged views on mutually-beneficial cooperation in energy, heating, agricultural facilities, wheat, flour and fodder production, seabuckthorn oil processing and rail transportation. Representatives from over ten companies are in the Russian delegation; clearly, top of their agenda is the Mongolian livestock sector.