Archive for April, 2010

Economist D. Jargalsaikhan Speaking at Cafe Amsterdam on Wed April 21, 2010

By , 19 April, 2010, 6 Comments

Economist D. Jargailsaikhan will be speaking at Cafe Amsterdam this coming Wednesday April 21, 2010 at 7PM.

Mr. Jargailsaikhan’s lecture will focus on the relationship between politics and economy in Mongolia.  The lecture is a part of the Wednesday Night Culture Series at Cafe Amsterdam.

About D. Jargalsaikhan

Mongolian economist D JargalsaikhanMr. Jargalsaikhan is a popular economist in Mongolia and is also President and Founder of the NGO  Mongolians for Fair Taxes and Wise Spending, which organizes the annual Mongolia Economic Forum.

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Economists Not At Ease with Giving Away 1.5 Million to All

By , 17 April, 2010, 1 Comment

Several economists have expressed their reservation about the Government’s announcement that every Mongolian citizen will receive MNT1.5 million by 2012.

Mr. Ts. Demberel appreciated that both parties were in a bind, having made this the basis of their election campaign. However, it still will be unwise to distribute so much cash. “Most of this will end up in the hands of Chinese manufacturers, and a much better decision would have been to spend it on infrastructure that benefits all,” he said.

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National Debt Equals State Budget

By , 16 April, 2010, 1 Comment

Finance Minister S.Bayartsogt has said that the total foreign debt of Mongolia has reached MNT2.8 trillion, equal to the whole annual state budget. Of this 31.7 percent is in USD, 26.5 percent in Japanese yen, 28.1 percent in euro and 13.7 percent in other currencies. He was speaking at a joint meeting of the Standing Committees on the Economy, on Security and Foreign Policy, and on the Budget which discussed a loan offer from Monaco, and a draft cooperation agreement with the Asian Development Bank for additional financing on a project to develop regional roads.

Both drafts were approved and would now go to Parliament, but several MPs expressed their unhappiness with aspects in both. Some felt that Monaco, with which diplomatic relations were established only two years ago, is offering assistance worth no more than MNT30 million only to help it join the European Union. The ADB loan carries a low interest but has preconditions which make it less acceptable than high interest loans. Mr. Bayartsogt stated that Mongolia will no longer take loans with such preconditions.

Source: Undesnii Shuudan; highlighted in the BCM Newswire by Business Council of Mongolia

Khan Resources Uranium Mining & Exploration Licences Invalidated

By , 16 April, 2010, 2 Comments

Below is Press Release from Khan Resources.  Two related posts on our Mongolia Business Blog (MBB) website are Dornod Uranium, Khan Resources, ARMZ, Russia, & Mongolia and Khan Rebuts All Charges Based on “Inaccurate Information”.  On the day of the press release, the stock price of Khan Resources on the Toronto Stock Exchange dropped from 85 cents to 67 cents and then to 57 cents (33% drop).

TORONTO, ONTARIO, April  13, 2010 – Khan Resources Inc. (TSX:KRI) (“Khan”) announced today that its 58%-owned Mongolian joint venture subsidiary, Central Asian Uranium Company, LLC (“CAUC”) and its 100%-owned Mongolian subsidiary, Khan Resources LLC (“Khan Mongolia”) have received notice from  the Mongolian Nuclear Energy Agency (the “NEA”) stating that CAUC’s mining license 237A (the “Mining License”) and Khan Mongolia’s exploration license 9282X (the “Exploration License”) have been invalidated. The invalidations purport to be effective as of October 8, 2009 and purport to be based on a failure by CAUC and Khan to address violations of Mongolian law stemming from a July 2009 report issued by an inspection team appointed by the Mongolian State Specialized Inspection Agency (the “SSIA”) in respect of the Mining License.

Khan continues to believe that it and its Mongolian subsidiaries have always operated and continue to operate in compliance with all applicable Mongolian laws, including the Nuclear Energy Law, and there is no legal basis for the NEA invalidation notices.  Khan intends to challenge the NEA’s actions through all legally available means.  In Khan’s view, the actions by the NEA are a clear violation of Khan’s rights and interests under the laws and Constitution of Mongolia, and are in breach of Mongolia’s obligations under international law.  Khan and its legal counsel intend to vigorously defend its rights and interests, and to pursue all available rights and remedies in the Canadian and Mongolian courts and, if necessary, in international arbitration.

Background

Khan believes that in order to understand the  latest action by the NEA, it is necessary to understand the background and recent history.

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Chinese Press: Batbold Reaffirmed Mongolia Would Adhere to One-China Policy

By , 13 April, 2010, 14 Comments

This has got to be Chinese press at its finest. I cannot fathom any Mongolian person agreeing to One-China policy, certainly not any of our politicians, however faulty they may be.  It’s really unbelievable.  Read on.

Here is the excerpt from the Chinese Press:

Xi said China  would like to work with Mongolia  to expand bilateral cooperation.

Batbold proposed the two countries work more closely in economy, trade, finance, minerals, energy, infrastructure and people-to-people exchanges.

Batbold reaffirmed Mongolia would adhere to the one-China policy.

Batbold was one of 2,000 political and business figures and experts from Asia and around the world who gathered at the island resort in south China’s Hainan Province for the BFA annual session.

Here is the link: China, Mongolia underline stronger cooperation

Probably, the article should read “China agrees to One-Mongolia Policy”, but too bad our economy and population is just too small to make that a reality.  😀

I still can’t believe something like this can be posted on an online website that has the 198th highest usage in the world according to Alexa.

China’s 24 Million Wife Shortage – Concern for Mongolia?

By , 12 April, 2010, 4 Comments

Earlier today, I ran across an article indicating that there may be 24 million wife shortage in China over the next decade.

As the shortage of women increase in China, surely the ambitions of men (Chinese or not) to marry will not be squelched.   The fear in Mongolia might be that some of these men may marry Mongolian women.

The crazy thing is… this fear might actually be justified.

As you may know, Mongolia’s entire population today is only 2.7 million.  If we take the fact that 70% of Mongolians are aged 30 years or younger and that roughly 50% are women, we are left with less than 1 million Mongolian women and girls.  Looking at the numbers, even if a few ten thousands of Chinese men somehow succeed in marrying Mongolian women, this might create a dramatic imbalance and a fierce competition for Mongolia’s women.

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Bayar’s Income Rises 20 Times, Gansukh’s 7 Times, and Bayartsogt’s 3 Times

By , 12 April, 2010, 1 Comment

According to figures released by the Anti-Corruption Authority, the declared assets and reported income of most senior Government officials for 2009 show considerable increase over those for 2008.

An exception was the President Ts. Elbegdorj, whose income decreased by about MNT 1 million.  The Speaker earned more but his assets have not grown over the years.  He still lists a Mazda car, a one-room apartment and shares in Gobi Company.

Former Prime Minister S. Bayar’s income rose 20 times in the year, reaching MNT109.2 million from MNT5.4 million in 2008.  He owns 10 percent of Sansar Cable TV and Palace LLC.  The MNT94.7 million in his bank account in 2008 now stood at MNT156.3 million.

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Dornod Uranium, Khan Resources, ARMZ, Russia, & Mongolia

By , 5 April, 2010, 1 Comment

Editor’s note: I found this article online today.  It gives an overview of events involving the Dornod Uranium mines.  The players include Khan Resources, ARMZ, Russian Government, and Mongolian Government…

Despite the potentially huge profits, it can be difficult to do business in a former communist country — particularly one that is in Asia. Western companies have learned this the hard way.

One current example is in Mongolia, involving a Canadian company, Khan Resources, and a rapid chain of events that put the company on the verge of losing vast amounts of money and essentially being kicked out of Mongolia. In the end, however, Khan Resources would have the last say.

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