North American exodus at PetroChina sparks speculation of company shift www.reuters.com

NEW YORK (Reuters) - A flurry of departures across the U.S. and Canadian units of Chinese state energy firm PetroChina Co Ltd (601857.SS) have sparked speculation that the oil trader is reducing its presence in North America, even though the company says it is committed to the region.

More than 30 people in its Houston and Calgary offices have left PetroChina since 2016, including heads of desks in crude, financial, natural gas and chemical trading, the company confirmed to Reuters. Sources say that PetroChina had approximately 150 to 200 people at its peak two to three years ago, and now has between 100 and 150.

Nearly a dozen sources in New York, Calgary, Houston and Singapore, including current and former employees, told Reuters the departures suggest a shift in mindset among firm management, and there are concerns about a broad pullback from its presence in North America.

The sources interviewed, which also includes several who do business with the firm, said North American offices may have expanded too quickly.

PetroChina spokesman Mark Jensen said the company is committed to business throughout the Americas. He previously said the company and its subsidiaries have restructured the organization where necessary over the last several months, and that the departures do not represent a change in strategy in the region.

In the last several years, PetroChina built itself into one of the largest oil traders in North America, hiring top talent with the goal to compete with trading giants Vitol SA [VITOLV.UL], Trafigura and Mercuria Energy Group, industry participants said.

The departures have been notable ones, including John Mee, director of financial crude trading; Jie Wang, president in Calgary; and Eric Dixon, domestic head of physical crude onshore, among others.

The company has also lost a number of key staff in other departments, including in legal and accounting. One source said that the company is not currently looking to replace the majority of those positions.

Sources interviewed said management's mindset over the last year has shifted toward tightening credit limits and shifting away from sources of activity common among oil traders operating in North America.

For instance, PetroChina appears to be shifting away from trading volumes on pipelines - which accounts for the lion's share of crude trading in the United States - and favoring more vessel-based cargo trading, two sources familiar with PetroChina said.

In Houston, there are no longer any proprietary traders, according to two of the sources Reuters interviewed. The company did not respond to a specific request for comment regarding the shift to waterborne trading or proprietary trading.

The departures come after major losses in commodities markets in the first half of 2017, as hedge funds and banks saw some of their worst results in years due to a lack of overall volatility and an unexpected sell-off in crude.

The firm has gotten rid of individual bonuses and is now using a team bonus plan across Canada, the United States and China, according to two of the sources spoken to by Reuters. The company did not respond to a request for comment on this.

PetroChina is not set for a full retreat from the region, sources say. The company has certain commitments in the region, including a long-term contract on Royal Dutch Shell Plc's (RDSa.L) Zydeco pipeline through 2019. In addition, PetroChina's parent, China National Petroleum Corp [CNPET.UL], will need to keep its options open to import U.S. crude oil, sources said.

HondaJet most-delivered jet in Jan.-June period www.nhk.or.jp

Honda Aircraft Company says its HondaJet has been ranked for the first time as the most-delivered jet in its category in the first half of this year.

Foreign Minister Ts.Munkh-Orgil works in Moscow www.montsame.mn

Ulaanbaatar /MONTSAME/ On August 21, MP and Minister of Foreign Affairs Ts.Munkh-Orgil met with Minister of Natural Resources and Ecology of the Russian Federation, Mr.D.Donskoy in Moscow, exchanging views on bilateral cooperation policy and current issues. They are also heads of Mongolian and Russian parts of the Mongolian-Russian Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation.
The parties expressed their appreciation that in the first half of this year, the bilateral trade turnover increased by 32 percent, reaching to USD561 million and underlined that there is great potential to increase trade in chemical, metallurgy, machinery, equipment and textiles.
During the meeting, the parties agreed to organize the 21st regular meeting of the intergovernmental commission in the second half of October 2017, holding meetings of sub-commissions including agriculture, environment, transportation and regional sub-commissions and working groups in nearest future. The parties talked about collaboration in organizing Mongolian Prime Minister's visit in the fourth quarter of this year.
The preparation works regarding a working visit of the President of Mongolia to the Russian Federation on September 6-7, 2017 and participation in the Eastern Economic Forum were also discussed during the meeting, expressing their views on the agenda of the visit and the documents to be established.
Delegation of the President’s visit will include Minister of Road and Transportation Development D.Ganbat, Minister of Food, Agriculture and Light Industry P. Sergelen. Therefore cooperation issues of those sectors were also touched during the Foreign Minister Ts.Munkh-Orgil’s meeting. For example, they talked about preparations for supply of vaccines against infectious diseases from RF within the second phase of the "Mongolian Livestock Program" and buying wheat and hay. The sides also finalized the draft of intergovernmental agreement between Mongolia and RF on “Conditions of Rail freight transportation”, agreeing to seek possibilities to sign the agreement during the Presidential visit.
The sides expressed their satisfaction with the current level of tripartite cooperation and confirmed their interest to set up an Investment projection center in Ulaanbaatar in order to activate the cooperation, within the framework of the program on establishment of Economic Corridor between Mongolia, Russia and China. 
B.Ooluun

Iron ore nears $80 a tonne www.mining.com

Iron ore prices held steady above $79 per tonne on Tuesday on the back of a strengthening billet market a day earlier, when Chinese steelmakers began stoking production ahead of mandated cuts going into winter.

Mongolia Energy Corporation Limited (0276) Soars 0.9% on Aug 22 www.utahherald.com

Shares of Mongolia Energy Corporation Limited (HKG:0276) last traded at 0.225, representing a move of 0.9%, or 0.002 per share, on volume of 1.01 million shares. After opening the trading day at 0.22, shares of Mongolia Energy Corporation Limited traded in a close range. Mongolia Energy Corporation Limited currently has a total float of 1.88 billion shares and on average sees 2.27M shares exchange hands each day. The stock now has a 52-week low of 0.14 and high of 0.65.

96 licenses of widespread minerals revoked www.montsame.mn

Ulaanbaatar /MONTSAME/ The Governor of the capital has terminated the licenses of widespread minerals owned by 96 companies, who seriously violated laws.

Electric cars are exempted from license plate limitation and road charges www.gogo.mn

In order to reduce emissions from vehicles and to promote the use of electric battery-powered vehicles, Ulaanbaatar City Governor S.Batbold issued a decree to exempt these cars from even-odd license plate limitation and road user charges. City officials added that more sufficient charging infrastructures for electric vehicles will be established in further. 
As of April 11th, 2017, a total of 74 electric vehicles were counted in Ulaanbaatar city, of which 61 of them are private and state-owned trolleybuses while remaining 13 of them are small trucks and passenger cars.
Vehicles contribute 10 percent of pollution Ulaanbaatar`s air. The emissions from automobiles contain ethyl lead, carbon dioxide, dioxide, sulfuric gas, soot, cadmium and aldehyde benzopyrene dioxin. Professional organizations recommend that the city should fight its air pollution by not only taking measures to reduce smoke from ger district but also concern the emissions from vehicles. 
Moreover, City Governor noted that a lot of works which are aimed to save consumer spending and promote green products will be done in the future within the framework of creating Eco Ulaanbaatar.

Trans-Siberian railway extension to Austria to cost $6.5bn www.rt.com

Austria’s Ministry of Transport, Innovation and Technology has announced plans to extend the Trans-Siberian Railroad (Transsib) from eastern Slovakia to Vienna. It would connect Russia's Far East with Central Europe.

Mongolia Exports Forecast 2016-2020 www.tradingeconomics.com

Exports in Mongolia is expected to be 507.85 USD Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Exports in Mongolia to stand at 508.94 in 12 months time. In the long-term, the Mongolia Exports is projected to trend around 508.89 USD Million in 2020, according to our econometric models.

China's Great Wall eyes Fiat Chrysler bid www.bbc.com

China's Great Wall Motor is sizing up Fiat Chrysler, the Italian-American carmaker that also owns Jeep.
A Great Wall official told Reuters it had "an intention to acquire" some or all of the world's seventh-largest car maker.
However, Fiat Chrysler said it was yet to receive an approach from Great Wall - China's biggest SUV maker.
Earlier reports said the Chinese firm had asked to meet Fiat executives to discuss buying the Jeep brand.
Jeep, which celebrated its 75th birthday last year, is considered FCA's most valuable asset.
Its reputation dates back to World War Two, when Jeeps were used extensively by the US military.

Shares in Fiat Chrysler Automobiles jumped 7.4% in New York on Monday and have jumped more than a quarter this year, valuing the company at just over $19bn (£14.7bn).
However, the Jeep brand alone could be worth as much as $27bn, according to Morgan Stanley analysts.
Analysis: Andrew Walker, economics correspondent
Are the alarm bells ringing in the White House? Possibly. Certainly President Trump has expressed concerns about China's international economic role.
His former chief strategist, Steve Bannon, last week said the US is in an economic war with China. He is no longer at the President's side, but his influence may well persist. There are others in the administration who share the same concerns about China, including the top trade negotiator Robert Lighthizer.
Great Wall's takeover of Fiat Chrysler - if it ever happens - might not have any immediate impact on jobs, as the Chinese company could decide to keep manufacturing in the US.
It probably wants Jeep's technology and engineering, which is striking given that Mr Trump has ordered an investigation into allegations of China's theft of US intellectual property. There is the potential for the takeover talk to add to the friction.
Jeep sold 1.4 million vehicles last year and aims to shift 2 million vehicles annually by 2018.
Great Wall sold just over 1 million vehicles last year - mostly in China, which is now the world's largest car market.
Bill Russo, a former Chrysler executive now with Gao Feng Advisory Group, said he believed Great Wall wanted Jeep rather than all of FCA and its debts of about $4.9bn.
"Jeep is the crown jewel of Fiat Chrysler in terms of brand and equity," he said.
Great Wall is known for its SUVs, vehicles, which are popular in China, so a deal would be "quite complementary", Mr Russo added.

Yale Zhang, head of Shanghai-based consultancy Automotive Foresight, said: "Jeep is the most logical choice, since [Great Wall] wants to be the largest SUV maker in the world.
"The Jeep brand is recognised globally. I think Great Wall Motor is eyeing a global strategy, not just the United States."
What is Great Wall Motor?
Founded 1984, it is China's largest SUV and pick-up truck maker
Great Wall is vying with Geely to become the first Chinese carmaker to go global
A bid could prove unpopular with US President Donald Trump, who is investigating Chinese trade practices and wants to protect US car manufacturing jobs
Fiat Chrysler already makes some Jeep models in China, with local partner Guangzhou Automobile Group
Fiat Chrysler could be too big a bite for Great Wall, which is worth about $16bn, although it does have state investors
Great Wall's boss, Wang Fengying, is the seventh most powerful woman in the Asia-Pacific according to a Fortune magazine list
Earlier this year, it officially launched a new premium SUV brand called Wei, which potentially could tap into the US market.
Fiat Chrysler chief executive Sergio Marchionne is seeking a partner or buyer to help it manage rising costs, emissions regulations and the development of electric and self-driving cars.
FCA also owns Alfa Romeo, Maserati and RAM trucks.