Business:
Rules changed to persuade miners to sell more gold to Central Bank; Ivanhoe CEO meets with Speaker; OT draft at 12th place on Parliament’s order of business; Delay in OT agreement is a loss, says Deputy PM; Polo Resources may get up to USD50 million and 1% royalty in Peabody deal; Aero Mongolia ready to fly again; Khan Bank seeks expansion in Asia; 50 companies ready to join employee training program; Rio has ‘Plan B’ if deal with Chinalco fails; 4 banks to lend Chinalco USD21 billion for Rio investment;Australian backlash to Rio deal queers the pitch for Rudd.
Economy:
ADB says Mongolian growth will slump to 3% this year; Auctions stabilizing currency market; Companies being inspected on use of foreign currency; Domestic producers against lowering import tax on flour; Fluorspar prices to stabilize as environmental pressures moderate demand; Minimum living standards set; Fuel prices go up sharply; Mongolia, Vietnam trade unions look to increased ties; Kazakhstan wants to buy more Mongolian duobuses; Toilet water rates to be raised; Bank lawyers form association; Euromoney Hong Kong Investment Forum looks ahead.
Politics:
Parliament’s spring session to start a day later; Presidential candidates to be named by April 5; MPRP wants Enkhbayar’s choice to be unanimous; Campaign song on Enkhbayar being recorded; President prepares law draft on companies; German railway to build freight railroad from Mongolia to China; Czech embassy stops receiving work-visa applications; Regional forum meets to boost economic cooperation; Mongolia gets Korean military radios; Mongolia looks to Australia for power network ideas; Moscow Mayor offers financial help; US Ambassador presents scholarships; Ex-President Bagabandi attends Tirana conference; Herder donates 26 goats to help fight the crisis; Fully grown trees to be planted, not saplings.
LEAD STORIES:
PRESIDENTIAL CANDIDATES TO BE NAMED BY APRIL 5
According to the schedule announced by the General Election Committee (GEC), political parties will have to announce their presidential candidates by April 5. Parliament has already approved MNT4 billion for the election, though the former GEC head said this would not be enough. Mongolian citizens living in foreign countries cannot participate in the election because many of them are there without documents. According to a recent survey, 75% of the people are likely to cast their vote. Citizen participation rate was 83% in 1997, 82% in 2001, and 74.9% in 2005.
Source: Zuunii medee, www.gogo.mn
RULES CHANGED TO PERSUADE MINERS TO SELL MORE GOLD TO CENTRAL BANK
THE CENTRAL BANK HAS REVISED THE METHODOLOGY AND AMENDED THE REGULATIONS GOVERNING THE DETERMINATION OF THE PURCHASE PRICE OF GOLD IN AN EFFORT TO INCREASE GOLD PRODUCTION AND ITS SALE TO THE CENTRAL BANK. EFFECTIVE FROM MARCH 20, THE PURCHASE PRICE OF GOLD IS BEING SET BY SUBTRACTING USD2 PER TROY OUNCE FROM THE LATEST PRICE OF THE DAY AT LBMA IN LONDON. THIS FIXED CHARGE OF USD2 IS DESIGNED TO FINANCE GOLD REFINING EXPENSES AND OPERATIONAL COSTS BY THE PRECIOUS METALS TREASURY FUND AT THE CENTRAL BANK.
ALL WORK RELATING TO GOLD PURCHASE - LIKE PHYSICAL DELIVERY, VERIFICATION OF ASSAY, ENCASING, STORAGE, CONFIRMATION AND SIGNING OF THE GOLD TRADING CONTRACT - HAS BEEN CENTRALIZED. THE PRECIOUS METALS TREASURY FUND OF THE INTERNATIONAL ECONOMIC DEPARTMENT AT THE CENTRAL BANK IS NOW RESPONSIBLE FOR ALL THIS AND ALSO FOR THEIR MONITORING. CUSTOMERS ARE RECEIVING FASTER AND MORE EFFECTIVE SERVICE.
IN ORDER TO MOTIVATE GOLD MINERS, THE CENTRAL BANK HAS ALSO DECIDED TO FULLY COVER ASSAY DISCREPANCY RISK EXPOSURE FROM NOW ON. THE DECISION WILL SAVE GOLD MINERS USD1.4 MILLION IN 2009. THE BANK HAS APPEALED TO THE “PATRIOTIC SPIRIT” OF GOLD MINERS TO HELP THE COUNTRY OVERCOME THE ECONOMIC CRISIS AND TO SELL ALL THEIR EXTRACTED GOLD TO THE BANK.
SOURCE: UNDESNII SHUUDAN, WWW.MONGOLBANK.COM
IVANHOE CEO MEETS WITH SPEAKER
MR. JOHN MACKEN AND MR. JOHN FOGNANI, CHIEF EXECUTIVE OFFICER AND EXECUTIVE VICE PRESIDENT RESPECTIVELY OF IVANHOE MINES, CALLED ON MR. D.DEMBEREL, SPEAKER OF PARLIAMENT, ON THURSDAY AFTERNOON. IT IS BELIEVED THEY DISCUSSED THE STATUS OF THE DRAFT INVESTMENT AGREEMENT ON THE OYU TOLGOI PROJECT. MR. KEITH MARSHALL, EXECUTIVE DIRECTOR OF THE PROJECT, AND MR.A.MUNKHBAT, VICE PRESIDENT AND EXECUTIVE DIRECTOR OF IVANHOE MINES MONGOLIA INC., WERE ALSO PRESENT AT THE MEETING.
SOURCE: ODRIIN SONIN
GERMAN RAILWAY TO BUILD FREIGHT RAILROAD FROM MONGOLIA TO CHINA
DEUTSCHE BAHN AG, THE GERMANY RAILWAY, IS PLANNING TO BUILD A 260-KM RAILROAD TO TRANSPORT COAL FROM UKHAA KHUDAG IN THE SOUTH OF MONGOLIA TO THE BORDER CROSSING TO CHINA AT GASHUUN SUKHAIT. REPRESENTATIVES OF DEUTSCHE BAHN (DB) AND MONGOLIA-BASED ENERGY RESOURCES LLC SIGNED AN ACCORD IN BERLIN LAST WEEK DURING A VISIT BY MONGOLIAN PRIME MINISTER SANJAA BAYAR, THE COMPANY SAID IN A STATEMENT. CONSTRUCTION WORK WILL BEGIN THIS YEAR ON THE PROJECT, COSTING AS MUCH AS USD800 MILLION, WITH THE FIRST TRAINS DUE TO RUN BY 2011.
IN WINNING THE CONTRACT, DB OFFERED TO ASSUME RESPONSIBILITY FOR OVERALL PROJECT PLANNING, PROCUREMENT MANAGEMENT, MONITORING OF DEADLINES AND COSTS, AS WELL AS QUALITY ASSURANCE. IT WILL ALSO PROVIDE SUPPORT IN CONNECTION WITH ESTABLISHMENT AND OPERATION OF THE FREIGHT RAILWAY, WHICH IS TO BE DESIGNED AS A SINGLE-TRACK LINE FOR AN AXLE LOAD OF 25 TONS.
SOURCE: BLOOMBERG.COM, WWW.CARGONEWSASIA.COM
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