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The News and Information Association of Mongolia

Tomorrow, posting on mongolia.neweurasia.net will stop.

The new project will be up and running on Monday and will be bilingual (English and Mongolian) before the end of the week.

One feature of the NGO, the News and Information Association of Mongolia, will be daily online news written by our reporters and translators.

I will post the link on Sunday night or Monday morning at which time there will be no more posting here and I will turn off the comments function.

For those interested in contacting me about supporting the NGO, please email me (found in the about the authors section).

Thank you,

Luke Distelhorst

Press Release

WASHINGTON, July 14 /PRNewswire/ — Today, the U.S. Agency for International Development (USAID) announced the swearing in of Dr. Barry Primm as the new USAID Representative for Mongolia. USAID Assistant Administrator for the Bureau for Asia and the Near East James R. Kunder presided at the event and administered the oath.

Mongolia provides an important example in the region on how to manage an economic transition from a centrally planned to a free market economy within a democratic political framework. Dr. Primm will oversee an annual program budget of $7.5 million…..

Next will be the new US Ambassador to Mongolia.

Today the Russian kommersant reported that business talks between Mongolia and a group of Russian companies were less than productive.

The delegation, including representatives from Bazovy Element, Renova and Severstal, accompanied the Russian Prime Minister to Mongolia for three days. Talks focused on the possible opportunities for joint Mongolian-Russian mineral extraction projects. Russian companies namely expressed interest in the Tavan Tolgoi coal deposit and the copper resources of Tsagaan Suvraga.

Mongolian visit of PM Mikhail Fradkov proved futile for the business of Russia, which is eyeing big deposits of gold, copper, coal and uranium in that country…..failed to win the supporting guarantees for their projects in Mongolia, as today’s policy of the latter is imposing new restrictions for foreigners.

Rumors of corruption have flowed out of the Erdenet Mining Industry for many years. Earlier this week, Globe International reported on the latest issues involving 9,000 employees of the copper mine,

(Globe International/IFEX) - On 6 July 2006, B. Tsevegmid, the editor-in-chief of Nomin television station, northern Mongolian province of Orkhon, was beaten at the entrance of her building and had to be hospitalized for treatment. Before being attacked she had received many threats by telephone concerning an investigative television program, “Forbidden to watch,” which covered the Erdenet mining industry employees’ privatization vouchers.

On 11 June, “Forbidden to watch” aired on the fate of privatization vouchers for 9,000 employees of the Erdenet mining industry. After the television program, unknown people threatened her over the phone. The director of the Erdenest brokerage company, which held the vouchers, also warned the journalist, “It is a very complicated issue, you could be killed.”
On 8 July, local journalist A. Naranbold, who is actively working for the rights of his colleague, contacted his coworker by phone during her recovery. Tsevegmid told him, “The entrance was dark and I couldn’t recognize who the attackers were, nor how many people were there.”

Local police are investigating the incident.

During 1990, when the country shifted from a state economy into a free market economy, state property privatization vouchers were given to every citizen of Mongolia. The employees of Erdenet mining industry expected the privatization of the industry. In turn they took what they thought to be an advantage of privatization and placed their privatization vouchers in the “Erdenest” brokerage company. But during this time the Government issued a resolution to expel the Erdenet industry from the list of state enterprises that were going to be privatized. According to the TV program the industry employees still have not gotten any profits from the vouchers and even do not know whether the brokerage company is still saving them or has sold them all off. The TV journalist tried to clarify if the brokerage company sold the vouchers without the consent of the owners which would violate the rights of employees. Erdenet produces almost 20 million tons of ore per year and 51 percent of the company is owned by Russia. The remaining property continues to be owned by the state.

Globe International issued a media release on the incident and informed the Mongolian United Journalists’ Association. The local branch of the Mongolian United Journalist’s Association /MUJA/ also issued a press release on the incident and urged the head of MUJA to pay more attention to protecting the rights of journalists and supporting them. They stressed that, “several member journalists of MUJA have been attacked while exercising their professional duties and for revealing unlawful activities in our society.”

While talks continue between Mongolia and Russia, a “special envoy” from Chinese President Hu Jintao has arrived for a mixed visit. While in Mongolia the delegation will celebrate the 800th anniversary as well as hold meetings on strengthening bilateral ties.

Xu Kuangdi, vice-chairman of the National Committee of the Chinese People’s Political Consultative Conference, said that continually consolidating and promoting the China-Mongolia good-neighborly partnership of mutual trust was an unswerving policy of China.

During his visit, Xu also held talks with Chairman of State Great Hural of Mongolia Tsendiin Nyamdorj on cooperation and bilateral ties.

China has also expressed interest in Mongolia’s mineral deposits, focusing largely on coal located in the southern portion of Mongolia. Tavan Tolgoi has been one of the main discussion points by Chinese companies.

There have also been plans discussed to develop three coal burning power plants built by the Chinese in the southern provinces of Mongolia. Although they have not been finalized, if implemented the first plant would be working within a few years.

Today marked the second day of meetings between members of the Mongolian Government and a Russian delegation including the Prime Minister Mikhail Fradkov. Discussions continued to focus on Russian interest in Mongolia’s mineral deposits as well as the possibilities of transporting more Russian oil to Mongolia.

Fradkov said that Russia and Mongolia would “approach a number of major projects� within months, including in geological prospecting, mining transport, construction, power engineering and other sectors “in which the interests of the countries and businessmen can coincide�.

Fradkov explained that “such large Russian companies as Severstalgrup, Bazovy Element, Renova, Norilsky Nikel, Zarubezhdialogia and others can participate in the portfolio of projects, of which there are many enough�.

Severstalgrup has expressed great interests in acquiring the Tavan Tolgoi coal deposit and requested Russian President Vladimir Putin to personally write a letter to President Enkhbayar on their behalf.

Also being discussed are the joint Mongolian-Russian ventures of the Erdenet copper mining industry, the Mongolrostsvet gold mining project as well as the Ulaanbaatar railway.

Even today, one of Mongolia’s most sacred days, the Russian flag flew right next to the Mongolian as the nine white banners left the Government House on their way to the Central Sports Stadium.

While the Chinggis statue was unveiled in front of a large crowd on Sukhbaatar square, a group of Russian business delegates prepared to start business talks with the Mongolian Government. As China and other foreign nations have increased investment in Mongolia, Russia is following suit, hoping not to be left behind.

Russian companies are interested in privatizing electrical energy assets, banks and insurance institutions in Mongolia, including the Savings Bank of Mongolia, according to a source in the Russian delegation accompanying Russian PM Mikhail Fradkov during his visit to Mongolia

The article goes on to state that the Russian PM will focus on joint Russian-Mongolian mineral projects, with an emphasis on the Tavan Tolgoi coal deposit. With much of Tavan Tolgoi’s coal going straight to China, the Russians may have several strategic reasons for attempting to buy the coal deposit. Most companies’ interests peak at the high quality and large amount of coking coal within the Tavan Tolgoi deposit.

With the US upping military relations with Mongolia, Russia is also considering reverting to aid through military support.

Hopefully Naadam will not completely outweigh all the other news and the results of these meetings will be duly reported in the Mongolian media.

Today, The Hindu ran an article discussing plans for Indian businesses to take advantage of Mongolia’s location and foreign investor friendly atmosphere.

Honorary Consul of Mongolia in India and Camlin Ltd CMD, Dilip Dandekar, stated his plan to take a group of business leaders to meet with officials in Mongolia this fall.

“Mongolia is a small country, there is no big scope for export opportunity in terms of per capita consumption but because of the strategic location of the country between China and Russia, Indian businessmen can set up manufacturing bases and take export advantages.

“The Mongolian Government is planning to create economic zones in the area and I am focusing here to identify which Indian industry has the opportunity to go there, set up base and take export advantage to Europe and other countries,”

Dandekar’s statements seem to be focused on what Indian businesses can gain from Mongolia, rather than other types of mutually beneficial projects. However, the economic zones he mentions have seen limited development from international companies.

He goes on to say that India may also invest in Mongolia’s large mineral resource deposits and would have an edge on other countries by establishing a financial base in Mongolia.

Courtesy of Montsame