By Elena Fehrbach
Apr. 10 – Agricultural Stock Exchange has been officially launched in Mongolia on 5 April. At the beginning, the Stock Exchange will function in a testing mode trading cashmere in Sukhbaatar, Khentii and Dornod provinces of Mongolia. On an opening ceremony, O. Magnai, director of the Agency for Fair Competition and Consumer Rights of Mongolia noted, that the launch of Stock Exchange is a big step forward bringing the agricultural sector to a new level, a truly game changing point for the agricultural sector of Mongolia. Continue reading
By Elena Fehrbach
Apr. 10 – The new draft of the Securities Law has just been introduced for the discussion at the spring session of the Parliament which started on April 5. The suggested draft has been in the process of revision for more than 1 year and is expected to become a game- change regulation allowing dual listing. Continue reading
By Elena Fehrbach
Feb. 25 – Bank of China has officially opened its branch in Ulaanbaatar. The official opening ceremony took place in Ulaanbaatar and was attended by Wu Banguo, the Chairman of the Standing Committee of the National People’s Congress of China. Chinese representative was invited to visit Mongolia by Z. Enkhbold, the Speaker of the Parliament. The official establishment of Bank of China in Mongolia is aimed to strengthen and intensify the economic relations between neighbors in the most strategic sectors, such as mining, construction, infrastructure and finance. Continue reading
Mar. 16 – Mongolia’s travel and tourism sector directly contributed around US$256.3 million to the country’s gross domestic product in 2011, accounting for almost 4 percent of the total. Furthermore, it is forecast to rise by 7.3 percent in 2012, according to the World Travel and Tourist Council’s (WTTC) recent report titled, “Travel and Tourism: Economic Impact. Mongolia.”
The total contribution of the industry – direct, indirect and induced – is even larger and accounts for US$592.4 million, or 9 percent of Mongolia’s GDP, and is forecasted to rise by 6.4 percent in 2012. By comparison, the global average for direct industry contribution to GDP is 5.12 percent and for overall economic impact – 13.8 percent. Continue reading
Jan. 30 – The government is looking to launch an initial public offering of Erdenes Tavan Tolgoi ahead of parliamentary elections in June, while experts have warned that the coal deposit will raise much less than expected if listed in a hurry.
“We are trying to go for the IPO before the elections,” a senior Mongolian government official said, adding that a ministerial reshuffle is likely to occur this week, after which a task force would be set up to look into the IPO process.
The world’s largest coking-coal deposit of Tavan Tolgoi, located in the South Gobi Desert near China’s northern border, is still in its developing stages. Last year, it produced its first million tons of coal from deposits at Tsankhi. According to estimations, Tavan Tolgoi can produce 15 million tons of coal each year at full production capacity. Continue reading
Posted in Business, Finance, Markets, Mining
Tagged Erdenes Tavan Tolgoi, Gobi Desert, Mongolia Business, Mongolia Finance, Mongolia Mining, Tavan Tolgoi, Tavan Tolgoi IPO, Tsankhi
Jan. 18 – Mongolia’s economy, which grew almost 21 percent in the last quarter of 2011, risks contraction along with a global downturn in commodity prices partly due to a surge in state spending, according to the International Monetary Fund.
Government spending, which jumped 50 percent in real terms to 6.3 trillion tugrik (US$4.6 billion) last year, is on course to accelerate inflation to an average 18.7 percent in 2012, according to an IMF report. Continue reading
Sept. 2 – The South Korean Development Bank has won a government tender to manage the newly-established Development Bank of Mongolia. The agreement follows the Mongolian State Property Committee’s search for an international “management team” to run the Mongolian bank.
The committee ultimately selected the South Korean Development Bank, with the contract being signed off by Ch. Hashchuluun for the Development Bank of Mongolia, and Han Dai Woo and Kim Jang Ji for the Korean bank. Continue reading
Op-Ed Commentary: Chris Devonshire-Ellis
Aug. 25 – As in many emerging countries, the rules and regulations concerning foreign investment in Mongolia can be changeable. In some instances, the government has granted licenses to companies to operate in certain mining areas, only to rescind them later. However, while the regulatory environment in Mongolia as concerns investment may have been erratic, it is improving, and with the assistance of a raft of international organizations to help them, the certainty of the business operational situation in Mongolia is improving. Continue reading