A

Жижиг

A

Дунд

A

Том
http://zgm.mn/post/1187/

Legal dispute over EMC ownership comes to an end

​Supreme Court resotres MCC's 49 percent stake of EMC​

 0 сэтгэгдэл

A

Жижиг

A

Дунд

A

Том
http://zgm.mn/post/1187/


(MCC) won over the Government of Mongolia at the Supreme Court for the second time yesterday. Thus, the property dispute over Erdenet Mining Corporation (EMC) between MCC and the Government that dragged on for two years finally came to an end. Earlier this year, the Cabinet decided to forcefully nationalize the 49 percent stake of EMC owned by MCC with its 7th resolution, which was followed by massive public backlash because the Supreme Court ruled against the Government on December 7, 2017. Therefore, the Government’s act has been confirmed unacceptable by several courts and the EMC board, which is fully formed by Cabinet members, was suspended. During the yesterday’s ruling, the Supreme Court revoked the Government’s 7th resolution on nationalizing EMC, resinstating the 49 percent stake of MCC. “With the Supreme Court's second ruling, the EMC will now be able to operate normally. We will now demand the Government to fulfill the court's decision and immediately hold the board meeting to address the facing issue as EMC is currently suspended by the international arbitration over a case involving the Government's share of 51 percent stake,” remarked Purevtuvshin Tsooj, CEO of MCC.


A

Жижиг

A

Дунд

A

Том

Amartuvshin: Mongolia’s economy is smaller

 0 сэтгэгдэл


The Boao Forum for Asia was held in Ulaanbaatar on August 19- 21, discussing several crucial issues in the region. Amartuvshin Otgondavaa, President of Mongolian National Chamber Of Commerce and Industry (MNCCI) gave a brief interview to talk about the significance of the forum and planned projects of the chamber.

-What was the chamber’s main role in the forum? What are the chances to enhance trade and economic cooperation in the region?

-In terms of population and increasing consumption, Asia is one of the important regions in the world. We should focus more on Mongolia’s participation in the region’s integration. Mongolia’s economy is smaller than the other countries in Asia. It’s important to invest in the mining industry effectively. Also, Mongolia can benefit from economical integration through developing the other sectors, including, education, health, IT, and agriculture.

-Recently, some mining companies’ licenses were revoked. What is your opinion on this?

-It’s about lacking connectivity between the government and local entities. And investment needs time. Instead of interfering with mining companies, the government should improve its connectivity with middle-level administrations of the provinces. Private entities are not responsible for the order that has been made already. On the other hand, it’s not right to blame the entire business sector for the illegal activities of a few companies.


A

Жижиг

A

Дунд

A

Том

Market value up 4.83 percent in H1

Government securities trading 8.76 percent of the total trade

 0 сэтгэгдэл


Market value increased by 4.83 percent, to MNT 2.6 trillion in the first half of 2019. Total of 376.9 million shares worth MNT 82.3 billion was traded at the primary and secondary market in the reporting period. 79,800 government securities worth MNT 7.9 billion were traded Trade at the Mongolian Stock Exchange (MSE) totaled MNT 90.2 billion, increasing by MNT 12.1 billion or 16.1 percent compared to the same period of last year. Stock trading accounts for 91.24 percent or MNT 82.3 billion, government securities trading 8.76 percent or MNT 7.9 billion of the total trade.

The MSE has registered 4 new securities companies in the reporting period, and trading in the primary market totaled MNT 42.5 billion, three times higher than the same period of last year. In order to ensure compliance with the obligations of registered companies, MSE excluded 22 companies from registration due to non-performance of their obligations under the law.

Even though the primary market trade for Government securities was not active, MNT 994.4 million of income was generated and cost reached MNT 716.9 million, totaling the net income at MNT 277.4. In its financial statements, the deficit of MNT 204.6 million has been confirmed as a pre-tax loss. Compared to the same period of the previous year, total revenue increased by 25.3 percent, trading fee income sore by 34.6 percent and fee service fee grew by 24.6 percent respectively. A total of MNT 274.9 million were spent on the state budget which is 25.1 percent higher than the previous year.

A

Жижиг

A

Дунд

A

Том

Petro Matad caps permitting progress for Mongolia wells

 0 сэтгэгдэл


Mongolian oil explorer Petro Matad Ltd has completed all processes for obtaining the land permits for the Heron and Gazelle well sites. The company is now waiting for the final signature from the local governor to allow the permits to be issued.

In the meantime, operations are continuing as normal at the Heron well site and based on current performance the drilling and logging of Heron-1 are forecast to be completed around 9 September, Petro Matad said.

The company’s operations at Red Deer are proceeding as planned, with the well reaching its intermediate casing point and preparations underway to drill the next section.

The Heron, Gazelle and Red Deer wells are all situated in block XX in eastern Mongolia. Shares in Petro Matad were up 4.5 percent at 7.52 pence on Tuesday in London.

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds 100 percent working interests and the operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,367 square kilometers in the far eastern part of the country, and Blocks IV and V have an area of 29,062 square kilometers and 21,143 square kilometers, respectively, in the central-western part of the country.

A

Жижиг

A

Дунд

A

Том

Service sector spurs economic growth

Competition in the trade and services sector has been rising rapidly

 0 сэтгэгдэл


Mongolia’s GDP growth is showing good performance in 2019, as the service sector improves. Competition in the trade and services sector has been rising rapidly, and demand for human resources in the field is increasing. As the players grow, new management, quality of service and standard is approaching the world standard step by step. Public service, hotel, and domestic trade that are included in the service sector have increased, according to the National Statistics Office (NSO).

Trade revenue totaled MNT 10.8 trillion in the first half of 2019

In particular, trade revenue totaled MNT 10.8 trillion in the first half of this year, up 23.1 percent over the same period of last year. The retail sector, particularly, online retailing is expanding its scale in the market.

Following the downturn in mining commodity prices, the hospitality industry, especially the foodservice revenue drops. However, it increases as coal prices improve. For example, in the first half of this year, the catering industry’s income reached MNT 217.3 billion, up by 15.6 percent compared to the same period of the previous year. Also, the restaurant revenue grew by MNT 22.6 billion in the reporting period, triggering the GDP to increase.

The industry revenue for hotels rose 40.7 percent, to MNT 66.4 billion in the second quarter of 2019. The number of visitors reached 372,000, up by 70,000 over the previous year. There has been a growth in the hospitality industry in 2018, and this has also shown an increase, supporting the economy.