Signing of Memorandum of Cooperation between Japan and Mongolia on a Basic Framework for Proper Operation of the System pertaining to Foreign Human Resources with the Status of Residence of “Specified Skilled Worker” www.mofa.go.jp

On April 17 (Wednesday), the Memorandum of Cooperation on a Basic Framework for Proper Operation of the System pertaining to Foreign Human Resources with the Status of Residence of “Specified Skilled Worker” was signed in Tokyo between the National Police Agency, the Ministry of Justice, the Ministry of Foreign Affairs and the Ministry of Health, Labour and Welfare of Japan and the Ministry of Labour and Social Protection of Mongolia.

Asian Development Bank and Mongolia: Fact Sheet www.adb.org

ADB operations in Mongolia address infrastructure gaps, promote renewable energy, foster regional economic integration, expand access to basic urban services, and provide support to agribusiness.

Discussion held on new satellite city in Khushig Valley www.montsame.mn

Ulaanbaatar /MONTSAME/. Chairman of the Citizens’ Representative Khural of the Capital city R.Dagva became acquainted with the general development plan for the satellite city, Aerocity, which will be built near the new airport in Khushig Valley, Tuv aimag, and held a discussion with the corresponding officials.

Hakuho to renounce Mongolian nationality www.nhk.or.jp

Sumo grand champion yokozuna Hakuho has begun procedures to renounce his Mongolian nationality so that he can obtain Japanese citizenship.

Rio Tinto warning may rupture mining industry into green and dirty www.mining.com

It's not quite yet pistols at dawn, but Rio Tinto's polite warning to mining lobby groups that they have to acknowledge the threat of climate change is likely a sign that the industry will inevitably fracture into two camps.

These factions could be described as the "green" miners, who produce the minerals essential for the transition from the age of oil to the age of electricity, and the "dirty" miners who remain trapped in coal and other minerals deemed unnecessary for a carbon constrained future.

Rio Tinto's carefully worded statement on industry associations, released last week, said that it would only work with groups aligned with its own climate principles.

Rio Tinto's carefully worded statement on industry associations, released last week, said that it would only work with groups aligned with its own climate principles
These include a commitment that "any advocacy on the use of coal in the long term will note that it will require advanced technology, and in the medium to long term must be consistent with Paris targets."

The world's second-biggest miner also said that mining lobby groups should argue against public subsidies for coal and advocate for energy supply to be done in a "technology neutral way."

Rio Tinto has effectively put mining industry lobby groups on notice that they need to adapt to a world in which the challenge of climate change is recognised and that mining should be a positive force for change.

While other mining groups, notably BHP Group, have also spoken out against the climate denialism that is still prevalent in some of the industry, Rio Tinto appears to be a step ahead in insisting on meaningful change.

The Minerals Council of Australia has now changed its view to argue that "sustained global action is required to reduce the risks of human-induced climate change."

This contrasts with its position in July 2017 that new generation coal-fired power plants would reduce Australia's emissions by replacing older, more polluting generators.

But even if the industry groups do tone down their anti-climate change rhetoric, it will become increasingly hard for them to represent the different ends of the mining scale.

For example, why would a miner of lithium, cobalt or copper in a well-regulated jurisdiction such as Australia, Canada or Chile want to be represented by the same people who also advocate on behalf of a thermal coal miner.

Split coming?
Miners who want to be seen as ethical, environmentally responsible and providing the raw materials for batteries and solar panels may also balk at the idea of being lumped in with companies that operate in countries with questionable governance, weak environmental enforcement or where child labour and unsafe mining practices can occur.

The mining industry is starting to come under more intense pressure from investors who are demanding sustainable and ethical mining.

The collapse of a tailings dam at an iron ore mine in Brazil operated by Vale, with the loss of an estimated 300 lives, sparked a coalition of ethical investors to write to 683 listed resource companies asking for them to make public within 45 days information on their facilities.

The mining industry is starting to come under more intense pressure from investors who are demanding sustainable and ethical mining
It's going to become increasingly common at company annual general meetings for investors to demand what action mining firms are taking when it comes to offsetting carbon emissions.

The mining industry as a whole has been slow to recognise that it doesn't matter what each individual mining executive or board of directors believe, it matters what the investing public believes, and the weight of evidence is that climate change is increasingly featuring in investment decisions.

Rio Tinto, with its focus on iron ore and copper, may be able to successfully re-brand itself as a green miner, given the key role of copper in electric systems and the need for steel in many renewable technologies.

However, other major miners, such as BHP and Glencore, may struggle given they both have sizeable positions in coal within their portfolios, even if they do also mine resources needed for the battery revolution.

How they balance the pressure they will no doubt be subjected to against the profits from coal will be a challenge for their executives.

For pure coal miners, they will likely have a choice between accepting their industry associations are not going to lobby much on their behalf, or strike out on their own and form dedicated bodies to advocate their interests.

(By Clyde Russell; Editing by Richard Pullin)

President expresses his full support for Third Neighbor Trade Act legislative bill www.montsame.mn

Ulaanbaatar/MONTSAME/. United States Representative Ted Yoho introduced the “Mongolia Third Neighbor Trade Act” (H.R.2219) in the U.S. House of Representatives on April 10, 2019. The bill has garnered bipartisan support in the House, and as of April 16, co-sponsored by Rep. Dina Titus, Rep. Steve Cohen, Rep. Brian K. Fitzpatrick, Rep. Don Young, Rep. Ralph Norman, Rep. David E. Price, Rep. James P. McGovern, and Rep. Susie Lee.

AmCham monthly meeting hosts Minister of Mining and Heavy Industry www.montsame.mn

Ulaanbaatar/MONTSAME/. The American Chamber of Commerce in Mongolia (AmCham) held its April Monthly Meeting on April 15 at Shangri-la Hotel, hosting Sumiyabazar Dolgorsuren, Minister of Mining and Heavy Industry. Amcham’s members, foreign and local investors, foreign embassies and ministry officials attended the meeting and discussed existing challenges and ways forward to promote competitive mining as the engine of the Mongolian economy. During the meeting, Minister Sumiyabazar provided an insightful and comprehensive overview of the government’s efforts to advance the policy reforms in the mining sector.

China's economy performed surprisingly well in the first quarter www.cnn.com

Hong Kong (CNN Business)China's ginormous economy could be showing renewed signs of life in 2019.

The world's second-biggest economy grew by slightly more than expected in the first quarter of 2019, Chinese government figures showed Wednesday. It expanded by 6.4% compared to a year ago, beating economists' forecasts of 6.3%.
The prospect of a deeper slowdown in China has been one of the biggest concerns for the global economy this year. The economy has been hit by a trade war with the United States and government efforts to rein in a huge amount of debt in China's financial system.
"This confirms that China's economic growth is bottoming out and this momentum is likely to continue going into months ahead," said Tai Hui, chief market strategist for Asia-Pacific at investment firm JPMorgan Asset Management.

Chinese government statistics showed that growth in the first three months of the year was supported by strong spending by Chinese consumers and manufacturing production.

While China's current economic growth rate is still its slowest in decades, there have been signs of positivity in recent weeks, with indicators including property prices and bank lending suggesting a more bullish hue.
Analysts said that investors will now turn to the possibility of an agreement on trade issues between the United States and China in the coming weeks. Investors' "risk appetite should improve as China's economic downturn risk is contained," Hui added.
Stimulus starts to bear fruit
Chinese growth has lost momentum following government efforts to crack down on risky lending, which starved many companies of the funds they needed to expand.
The world's second largest economy has also started feeling the effects of the trade war with the United States, which has resulted in new tariffs on about $250 billion of Chinese exports.
The deteriorating situation in a market that businesses around the world rely upon for growth has had a widespread impact. It has spooked investors and prompted warnings from top companies such as Apple (AAPL).
China's government last month predicted economic growth of between 6% and 6.5% in 2019. That's below last year's 6.6% rate of expansion, which was already China's slowest annual growth in three decades.

Beijing in response has resorted to trillions of dollars worth of new measures intended to stimulate the economy, including tax cuts for businesses, infrastructure spending and looser monetary policy.
Experts say the measures are now starting to bear fruit. Analysts at investment firm Jefferies wrote last week that they think economic growth in 2019 could now exceed Chinese government targets.
Analysts have for years questioned the authenticity of Chinese economic data. They suspect China's National Bureau of Statistics, which reports much of the country's data, is more focused on making the government look good rather than giving an accurate reflection of its economic health.
"The Chinese published GDP numbers are absolute garbage," said Leland Miller, CEO of advisory firm China Beige Book, told CNN Business in February. "It's certainly the consensus that these numbers are unreliable."

Genghis Khan's Biggest Fan Is Testing Mongolia's Democracy www.bloomberg.com

After building a 131-foot high statue of his hero, Mongolia’s president is riding a wave of popularity to extend his authority

It’s hard to escape Genghis Khan in Mongolia.

The 13th century conqueror has donated his name to the capital’s airport, a hotel, a central avenue, a garden, a club, even a brewery. Yet none evoke the spirit of autocratic power and greatness better than the shining 40 meter (131 foot) high equestrian statue of the warrior built by President Battulga Khaltmaa on the Mongolian steppes.

Now, less than two years after Battulga’s election, some fear his widespread popularity and campaign to root out corruption may be moving the president’s authority closer to that of his hero at the expense of democracy, and shifting Mongolia closer to China and Russia.

With support from parliament, Battulga passed a law that effectively gave him far-reaching powers to dismiss judges and senior members of the nation’s legal system via his role as chairman of the National Security Council. He wasted no time in immediately removing a Supreme Court judge and the country’s highest prosecutor. The deputy general director of Mongolia’s Independent Authority Against Corruption may be next.

Dressed in a trim navy suit and red tie, the president urged lawmakers in his signature gravelly voice to grant the three-member security council authority to remove those who "are part of a conspiracy system that shields the illegal activities” of “political-economic interest groups.”

Anti-corruption group Transparency International and human rights organizations including Amnesty International say the move is an erosion of the country’s democratic values.

“There won’t be enough checks and balances,” said Badamragchaa Purevdorj, justice program manager at the Open Society Forum in Ulaanbaatar.

But voters have become angered by successive governments’ failure to deal with issues such as air pollution and widening income disparity. And Battulga’s tough-guy image and populist campaign to attack corruption have given him widespread popularity.

At stake is Mongolia’s international image in a delicate game it has been playing to balance the influences of Russia, China and the U.S. While Western democracies see Mongolia as oasis of democracy, sandwiched between Russia and China, the country relies largely on its neighbors to buy its resources and provide investment. In March, China bought 86 percent of Mongolia’s exports.

A trade agreement introduced this month in the U.S. Congress -- the Mongolia Third Neighbor Trade Act -- would remove duties on exports such as cashmere, which Mongolia is pushing to diversify its trade away from minerals.

U.S. Senator Ben Cardin, who co-introduced the bill, called Mongolia “a stable democracy in a sea of authoritarianism” that contributes to U.S. national security goals in Asia. In an April 11 statement, he said the act would bring employment to the country and help empower women, who comprise most of the country’s garment industry.

But Battulga also wants closer cooperation with the eight-member Shanghai Cooperation Organization, an Asian centered security and economic group that includes China and Russia. In a meeting with Russian President Vladimir Putin in Vladivostok in September, Battulga said relations with Russia were a priority for Mongolia.

The Mongolian president’s advantage is that his political support at home cuts across parties. While the heads of some of the world’s leading democratic countries may be having trouble winning support from polarized parliaments, Battulga has no such problems. His popular support and promise to battle graft have given him a strong position in a parliament that has been embattled by months of protests over corruption.

Thousands of Mongolians gathered in the capital in temperatures 20 degrees below zero in January to protest against political elites that are popularly called Manan, Mongolian for fog, a word created by meshing the acronyms for the two main political parties.

Battulga, a vocal critic of oligarchs and elites he accuses of pulling the strings in government, appeals to many voters because of his image as a tough-guy outsider, independent of a tainted political system.

He is a self-made millionaire and a martial arts champion, who competed in Russian sambo wrestling. As the former head of the Mongolian Judo Association, he lead the country’s judo team to take the nation’s first Olympic gold medal during the 2008 Beijing Games. Despite his wealth and fame, Battulga has won over the public as a man of the people.

“I respect him because he’s one of us, one of the ordinary citizens,” said Narantsetseg Batkhuu, 53, a Democratic party supporter who was protesting near the Government Palace at another demonstration on April 10.

The president’s own Democratic Party has only nine seats in the 76-seat legislature, the State Great Hural, after suffering a huge defeat in the last election. But the motion to extend the National Security Council’s powers was supported by many first-time lawmakers elected in 2016, and the bill passed with 85 percent in favor.

“The new MPs are not corrupted,” said Ganbaatar Jambal, a member of the majority Mongolian People’s Party, who voted for the bill. He said the president didn’t directly push the policy on politicians, but “their ideas crossed.”

Notably, the other two members of the security council are Prime Minister Khurelsukh Ukhnaa and the influential speaker of parliament, Zandanshatar Gombojav, both from the majority Mongolian People’s Party.

In Mongolia, the prime minister holds executive power, with the president having right of veto and judicial appointment powers as well as being head of the nation’s armed forces. But presidents over the past decade have increased their influence, raising concern the office is beginning to rival that of the premier.

“They are one team now,” said Naranjargal Khashkhuu, president of Globe International, a Mongolian NGO that promotes freedom of expression. “It’s very frustrating. It’s also a test of Mongolia’s democracy.”

Naranjargal criticized elected officials for hastily passing a law before accepting any input from voters. She argued that the amendment is unconstitutional and hopes that a case will eventually come before the Constitutional Court to strike it down.

A statement from the President’s Office said concerns about sweeping powers were overstated. "The only change is when the National Security Council issues a recommendation on the temporary suspension of judges," until deliberated on and fulfilled by a judicial council, the statement said.

In making his case for the rule change, Battulga cited accusations of torture to convict suspects in the of assassination of a former politician in 1998 and concern about the purchase of 49 percent stake in the Erdenet copper mine.

The president’s proposed legislation passed just 48 hours after introducing it and took effect immediately. Enforcement normally begins only after laws are published in a state periodical.

That’s rattled some parliamentarians, including some of Battulga’s own party, who were among the few who voted against the motion.

“The Democratic Party is against the expanding of the power of the president,” said Sukhbaatar Tsedenjav, the party’s secretary for foreign relations and cooperation. “We are for improving and strengthening the parliamentary system.”

Sukhbaatar said the law’s passage was a symptom of Mongolians’ loss of faith in democracy. “There are more and more voices inside Mongolia preferring authoritarian rule, like in Russia, like China,” he said.

That’s not surprising. Mongolia’s short-lived mining boom in 2010-2013, ended when commodity prices fell and disputes between the government and foreign mining companies curtailed investment, forcing the country to be bailed out by the International Monetary Fund in 2017.

A shift in power could further complicate investments in the country, especially for mining companies as new and old deals come under increased scrutiny. The nation’s largest foreign-investment project, Rio Tinto Group’s Oyu Tolgoi copper and gold mine, is already embroiled in a corruption investigation involving the former finance minister responsible for signing the deal in 2009.

Rio Tinto and its local unit Turquoise Hill Resources, did not respond to requests for comment. In its 2018 financial report, the company said it was complying with the Mongolian Anti-Corruption Authority’s requests regarding possible abuses by former government officials, but that it had not received any notice from authorities that its operations or employees were the subject of any investigation.

Gross domestic product per capita in the nation is $3,771 a year, and many Mongolians feel that even that wealth is unfairly distributed. With an economy skewed towards its huge coal and ore deposits that enriched oligarchs in the capital, the rural population has been pouring into Ulaanbaatar, looking for jobs and services like healthcare that are scant in rural areas.

Between 2010 and 2016 more than 245,000 people arrived in the city, bringing the population to 1.5 million, or about half the national total, according to the government statistics office. They created sprawling districts of traditional ger tents on the outskirts where about 60 percent of the city’s people live.

Despite the president’s man-of-the-people image, his assets include a hotel, a tourism company and a meat producer. His conglomerate Genco Holdings Pte Ltd., is named after Don Vito Corleone’s olive oil import company in the American mafia novel “The Godfather.”

The image of wealth, independence and strength are melded in his biggest entrepreneurial project before he became president, the Genghis Khan Statue Complex -- a kind of 13th century Mongolian theme park, complete with traditional ger camps, craftsmen, archers, horses and a museum, all crowned by the giant statue of the Khan.

Standing as tall as the Christ statue in Rio de Janeiro and wrapped in 250 tons of stainless steel, visitors can climb through the belly of the horse to a viewing gallery on the horse’s mane and look out across the steppes.

For many Mongolians, the president represents a new broom that will sweep the country clean and improve the lives of ordinary people. Others hope his alliance with parliament will help end the deadlock that has held back the economy and reform.

“I’m trusting them,” said Ganbaatar, the MP, about the three members of the security council. “If it continues forever for these three, that’s bad. The good solution is after solving all the problems, we have to remake what was.”

BY: Terrence Edward

U.S. Ambassador congratulates to Mongolian peacekeepers www.montsame.mn

Ulaanbaatar /MONTSAME/ Ambassador of the United States to Mongolia Michael Klecheski yesterday met and congratulated Mongolian peacekeepers who have served in the United Nations Assistance Mission in Afghanistan.