A

Жижиг

A

Дунд

A

Том
http://zgm.mn/post/3917/

Sweet beverage spending equals 70% of the health budget

Sweet beverage spending equals 70% of the health budget
 0 сэтгэгдэл

A

Жижиг

A

Дунд

A

Том
http://zgm.mn/post/3917/

Mongolians spend MNT 522 billion on 210 million liters of sweet beverages annually, which equals 70 percent of the Ministry of Health’s budget. During a panel discussion on the Consumption of soda: Health impact, data on the interdependence between sweet food and illness of Mongolians had been presented. According to a survey that included about 2,052 children in the country, the consumption of juice was higher among young children. As of today, 381 ml of sweet drink is consumed per capita, with 88 percent of total production being domestic and 12 percent of imported products. Domestic beverages, which are several times cheaper than imported ones, are encouraging consumption of so-called “liquid candy” to grow. Researchers concern over increasing obesity in children and adults due to sweet drinks in recent years. A survey conducted by the Mongolian National University of Medical Sciences (MNUMS) found that 90 percent of parents who provide sweet juices to their children know they are wrong. Of these, 83 percent of them said that they knowingly buy because of the advertisement.

A

Жижиг

A

Дунд

A

Том

Xanadu to spend $2.5 million on exploration of Kharmagtai

 0 сэтгэгдэл
  • The placement was conducted at USD 0.033 per share and it will result in 78,326,311 new ordinary shares (New Shares) being issued. Shareholder approval is not required for the Placement which was undertaken under Xanadu’s Listing Rule

Xanadu Mines Ltd. advised that the company has overnight, conducted a non-brokered placement raising USD 2,584,768.26 placement, the company said in a report released on Thursday. The placement was conducted at USD 0.033 per share and it will result in 78,326,311 new ordinary shares (New Shares) being issued. Shareholder approval is not required for the Placement which was undertaken under Xanadu’s Listing Rule 7.1, 15 percent placement capacity and the New Shares issued under the Placement will rank equally in all respects with existing ordinary shares of the company. The New shares will be issued to Precious capital Gold Mining & Metals Fund (PcG), managed by SSI Asset Management AG, a Zurich based fund (SSI). Following the completion of the raising, PCG will hold approximately 9.9 percent of Xanadu. The settlement of the Placement is due in the coming days. Xanadu’s Chief Executive Officer, Dr. Andrew Stewart said, “On behalf of the board of Xanadu Mines, I would like to welcome PCG to the register. The funds raised from the Placement will be used towards the exploration of the company’s flagship Kharmagtai copper-gold project.”

A

Жижиг

A

Дунд

A

Том

Elixir to hold formal annual meeting at the end of January

 0 сэтгэгдэл
  • The company’s second well in its two core-hole drilling program, Nomgon-1 is spudding now
  • The company’s subsequent plans for 2020 have recently been proposed to Mongolia’s petroleum regulator, as required under the terms of its PSC. These include a mixture of further low cost seismic and drilling

Elixir Energy Ltd yesterday provided an update on its drilling operations in its 100 percent owned Nomgon IX CBM PSC. The company’s second well in its two core-hole drilling program, Nomgon-1 is spudding now, according to the company’s recent report. A mandatory formal annual meeting with the regulator is scheduled to be held towards the end of January. The 2019 results and 2020 plans will be discussed at that meeting, the report said. Nomgon-1 lies approximately 37 kilometers to the South-West of the Ugtaal-1 well and is situated in a different Permian sub-basin to the latter, one of many such sub-basins in the very large Nomgon IX Psc. A permeability report has now been received with respect to the testing undertaken before Christmas on the Ugtaal-1 well. The test was successfully undertaken but the results were at the lower end of expectations due to factors such as poorer than prognosed coal quality. Gas content testing is ongoing and firm results are not yet available. However, the preliminary findings also reflect this lower than expected coal quality. This ongoing desorption work and supplementary laboratory testing will provide valuable learnings for the Company’s ongoing exploration efforts over the multiple targeted Permian sub-basins within the overall PSC area. The company’s subsequent plans for 2020 have recently been proposed to Mongolia’s petroleum regulator, as required under the terms of its PSC. These include a mixture of further low cost seismic and drilling – and by their nature will be dynamic over the course of the year as the two processes feed off each other and the final results of the current program. Elixir’s Managing Director, Mr. Neil Young said, “We are looking forward to the last of the core-hole wells planned for our first year’s drilling campaign. The Nomgon-1 well is one which we are highly confident will intersect coal seams at depth - and will provide a good first test of a different sub-basin in the PSC.

A

Жижиг

A

Дунд

A

Том

Currency intervention in January exceeds USD 200 million

 0 сэтгэгдэл
  • The central bank auctioned USD 38.9 million in the foreign exchange market on Thursday
  • Foreign exchange reserves of Mongolia reached USD 4.2 billion, up 20 percent from the same period over the last year

Since the beginning of 2020, the Bank of Mongolia (BoM) provided a total of currency worth USD 213.9 million to stabilize the domestic market. The central bank auctioned USD 38.9 million in the foreign exchange market on Thursday. As the Bank of Mongolia (BoM) reported previously, Mongolia had received several fundings worth less than USD 100 billion since the beginning of 2020. Particularly, the World Bank granted additional funding of USD 100 billion to the country as well as the Asian Development Bank (ADB). In the private sector, XacBank is scheduled to receive USD 100 million in co-financing from the Dutch Entrepreneurial Development Bank (FMO). The five-year tenor of the loan is expected to strengthen XacBank’s long-term funding base and allow the bank to further grow and expand in its focus areas in retail, micro and small and medium enterprises (MSMEs), the bank reported earlier. In terms of funding source, FMO will provide USD 65 million, the OPEC International Development Fund USD 25 million, and the International Economic Cooperation Bank USD 10 million respectively. ADB also provided USD 100 million last year. According to the central bank, the foreign exchange reserves of Mongolia reached USD 4.2 billion, up 20 percent from the same period over the last year.

A

Жижиг

A

Дунд

A

Том

Unenbat: Government should not interfere with commercial banks’ activity

 0 сэтгэгдэл

Executive Director of Mongolian Bankers Association, Unenbat Jigjid gave an interview to discuss the recent decision of the Government to repay pension loans up to MNT six billion and its effect on the economy. He also named the fiscal discipline as one of the main aspects that can define the 2020 outlook.


-According to the National Statistics Office, the volume of a hidden economy has slightly dropped from the previous year. What is the effect of the informal economy on the Mongolian economy?

-For Mongolia, the hidden economy result is relatively good, equaling about 10 percent of GDP. And it is doubtful that this volume is less than expected.

-Parliament had recently approved a bill on canceling a one-time repayment of pension loans. What is the commercial banks’ verdict on the decision?

-As for the commercial banks, they have no right to make a decision, but to serve in line with the regulations. However, as far as I’m concerned, canceling debt is an inappropriate action of the Government, interfering with the commercial banks’ transaction. It also creates a high expectation among people which can lead to negative consequences. To some extent, it is discrimination 
against different social classes. 

-What are the main economic challenges in 2020?

-Undoubtedly, the recent rise in mineral product prices and its export in the global market have been spurring Mongolia’s economy in recent years. It shows the country’s dependence on commodity prices. Also, the fiscal discipline, which indicates any country’s economic outlook, is likely to be violated in 2020. 

-IMF had stated that the debt canceling plan is violating the 2017 bailout deal. How will the cooperation between the IMF and Mongolia proceed further?

-Well, the uncertain situation has been made following the IMF statement. It is hard for me to comment on behalf of the Mongolian side. But in terms of fiscal discipline, the potential budget cost needs to be as low as possible.