Mongolia’s economy has recovered vigorously from the recent downturn. Economic growth accelerated to 8.6 percent in the first quarter of 2019, after recording its first fiscal surplus in 2018, and gross international reserves increasing by USD 2.5 billion since 2016. The recovery stems from a stronger policy framework, significant official financing and a rebound in external demand.

Directors of the IMF encouraged the Bank of Mongolia (BoM) to continue to build reserves and do so through direct purchases and limit sales of foreign exchange to address disorderly market conditions. They also highlighted that financial sector reforms, including enhancing risk-based supervision and increasing bank capital are key to ensuring macroeconomic stability.

According to the IMF assessment, structural reforms should focus on strengthening governance and diversifying the economy. Furthermore, the authorities should improve infrastructure, enhance the legal framework and the investment environment, reduce environmental degradation, and make the agriculture sector more resilient to climate change.

Foreign direct investment (FDI) is expected to be strong, and improving current accounts spur reserves accumulation, said the IMF report. However, the trend is likely to slow down from 2021 due to domestic policy.

The IMF expected Mongolia’s economic growth to remain above 6.5 percent in 2019 and moderate to around 5 percent over the medium term. The primary headwinds are weaker export and growth. Partially balancing these headwinds, fiscal policy is expected to loosen in 2019 and 2020 relative to the 6 percent primary surplus seen in 2018.

In late 2017, new legislation passed enabling women to be employed as underground operators.

As part of their commitment to gender equality, Thiess’ Mongolia team have been working with local women from South Gobi to upskill and promote opportunities.

Erdenetsetseg is one of three women employed by Thiess this year after undergoing extensive role and safety training.

All three women are now qualified to operate equipment and undertake daily operator duties.

"I am very happy to work with experienced miners. I will do my best to be an experienced female miner in the future," Erdenetsetseg said.

Thiess Executive Director Mongolia and member of Mongolia’s Diversity and Inclusion working group Leon Coetzer said his team were working hard to encourage better gender balance.

"CIMIC is a global company with diversity and inclusion strategies throughout the global business including Mongolia," Leon said.

"It's a big step forward for females being permitted to work underground in Mongolia.

"As a business, we continue supporting the diversity and inclusion strategy at OT C2S Project by aiming to recruit more female operators and training them to the highest possible standards."

"Unfortunately, the number of drug-related crimes has been significantly increasing in our country," Jamiyansengee Erdenebold, head of the narcotics department at the NPA, told a press conference.

"We recently started carrying out operations at nightclubs and other suspicious places in the capital city of Ulan Bator to 'hunt' down drug users," said Erdenebold.

The police have arrested 330 people so far this year, the colonel said, adding that 85.4 percent of the offenders are young people aged between 18 and 35.

A total of 193 drug-related criminal cases were registered across Mongolia in 2018, up more than 30 percent from the previous year.

A lack of knowledge about drugs, curiosity, an attempt to make easy money and weak law enforcement are said to be the main factors in the growth of drug-related crimes.

According to Mongolian law, drug-related criminals face prison terms of at least two years. A life sentence or the death penalty do not exist under the country's drug laws.

There are 60 spaces available in the business and government dome which will feature presentations and speeches including the British Ambassador, Ministry of Education, Culture, Sciences and Sport of Mongolia and a range of different British education companies. The event is particularly suited to Mongolian education organisations, businesses and entrepreneurs who may want to purchase UK education products and services, partner with UK companies or learn about education in the UK.

RSVP required to projects@ventureeducation.org

Date and time: 10:30-14:00

Networking Lunch: 14:00-15:00

Where: Dome 3, White Rock Centre

Commercial Team | British Embassy Ulaanbaatar | Mongolia

Department for International Trade | Peace Avenue 30 | Bayanzurkh District | Ulaanbaatar 13381 |

Tel: +976 11 458133 | E-mail: Commercial.Mongolia@fco.gov.uk

The company’s sold two million tons of solid coking coal in the reporting period. The volume of washed solid coking coal sales increased by 14 percent from the same period of the previous year, according to MMC’s report.

MMC increased its sales by using the channels of Inner Mongolia, Gansu, Hebei, and Tianjin. The company also sold 300,000 tons of coal to Tavan Tolgoi Tulsh LLC free of charge. With high demand and coking coal prices, the company aims to perform the highest level of production and sales in the second half of the year. MMC’s sales revenue rose 19.6 percent to USD 325.6 million in the first half of the year. The average price of solid coking coal at core sales was slightly above USD 147 per ton. In the meantime, China’s steel production has also accelerated, up by 10 percent.

The amount of Mongolia’s government-backed bonds expected to mature between 2021-2024 is approximately USD 14.5 billion. The Government of Mongolia (GoM) has developed a foreign debt management strategy that will limit debt rise, diminish its debts over the same period without paying a large amount of payments.

Mongolia’s credit rating and interest rates have changed dramatically since the country issued its first bonds on the international market in 2012. At the time, Chinggis bond was issued at 5.175 percent yield, and it increased to 11.7 percent in 2016. During this period, Mongolia’s credit rating downgraded more than three times and the interest rate on drawing loans in the foreign markets increased almost three times.

According to BoM, total external debt has grown rapidly in recent years. Over the past two years, Mongolia has been involved in the Extended Fund Facility Program by the International Monetary Fund (IMF) and is aiming to pay off its pending debts.

“Mongolia depends on the mining sector, which accounts for 90 percent of total exports and over 70 percent of foreign investments. If repayment of the external debt and the downfall of the mining commodity prices occur at the same time, it could put the entire economy at risk,” warn the banking industry experts.

After dropping to USD 1 billion in late 2016, foreign exchange reserves of Mongolia reached USD 4 billion in the second quarter of 2019. Both BoM and the IMF have estimated that Mongolia needs to further increase its foreign exchange reserves by encouraging gold purchases.

Last year, the Bank of Mongolia purchased 22 tons of gold and increased foreign reserves by USD 800 million. With the additional fee in mineral royalty and declines in gold mining, the Central Bank’s gold purchases fell by around 20 percent.

The Red Deer-1 well was drilled to a total depth of 2000 metres, on budget with a total cost under $4m.

'While the results of the Red Deer-1 well are disappointing, it was the first well to be drilled in any of the basins located in the south of Block XX and it therefore carried a lower chance of success than the wells in the north,' chief executive Mike Buck said.

'The company's activities are now focussed on drilling and testing operations in the north of Block XX and we look forward to updating the market further on the spudding of Gazelle-1 and the testing on Heron-1.'

At 2:34pm: (LON:MATD) Petro Matad Ltd share price was -1.5p at 5.25p

Deputy Director for development issues of the Erdenet Mining Corporation P.Enkhbat:

“The Erdenet Mining Corporation, fully achieving its goals planned for the first eight months of 2019, has brought in MNT 688 billion to state and local budgets. In addition, millMAX™ pumps produced in the USA as well as a new line with inert-gas equipment of the WEMCO brand will be put into operation in a short time at the powder enrichment processing factory. As reflected in its general development plan for 2017-2030, the Erdenet Mining Corporation is working to implement five large-scale projects for the duration of 15 years. These include building copper concentrate enrichment and gas metallurgical processing plant, introducing new technologies in the open pit mine and cathode copper plant and re-determine the reserve.

The Erdenet Mining Corporation has been operating as a state-owned enterprise fully owned by Mongolia since the government’s decision dated 21 March 2019 to re-establish the Erdenet Mining Corporation as a state-owned enterprise. Successfully fulfilling its performance plan, the Erdenet Mining Corporation has earned MNT 688 billion to state and local budgets through sales totaling MNT 1 trillion 341 billion, as of August 31 this year.

Approximately 400,000 tons of wheat is planned to be harvested. In this year, 364,800 hectares of cereals, of which 340,100 hectares of wheat, 14,800 hectares of potatoes, 80,000 hectares of vegetables, 82,400 hectares of oil, 42,000 hectares of fodder plants, sowing total 512,000 hectares. In some soums of Bulgan, Khuvsgul, Orkhon, Arkhangai, Uvurkhangai, Uvs and Selenge provinces, crop yields are expected to decrease slightly over the Tuul, Darkhan-Uul, Dornod, Khentii, Sukhbaatar, and Selenge provinces due to overheating and drought. However, it is possible to supply wheat needs domestically.

Additionally, the government plans to increase wheat prices by MNT 50,000 per ton to improve the supply of wheat.