MONGOL

Since 1991 the MESSENGER 500 ¥ No. 23,24 (1040, 1041) MONGOLIA’S FIRST ENGLISH WEEKLY PUBLISHED BY MONTSAME NEWS AGENCY Friday, June 10, 2011 Monument to Independence unveiled No exploration Ceremony held to inaugurate ‘Independence Square’ licenses issued in 2011

B. Ooluun Issuance of special licenses for exploration of mineral resources has been banned until December 31, 2011. When parliament discussed a Bill at its plenary meeting on prohibiting the issuance of the special license on the exploration of mineral resources, initiated by President Ts. Elbegdorj on June 3, 34 members out of 44 turnouts or 77.3 percent supported the bill. The law came into effect the day it was approved. In accordance with a recommendation by the National Security Council, the same law initiated by the President was approved by Parliament before and issuance of special exploration licenses was stopped from May, 2010 to December 31, 2010. However, the President submitted another proposal in 2011 and the issuance exploration licenses was cancelled until April 30, 2011 because it was considered that actions to be taken in the minerals sector and further purposes of the sector have not been determined in legal frames during that period. The period of prohibiting license issuance finished early in May and they are still not issuing licenses. At discussion about the new minerals law, President Elbegdorj said, “The National Security Council issued a recommendation on April 27, 2010, and gave instructions to the President to initiate a Bill on temporarily prohibiting the issuance of special licenses on minerals’ exploration and submitted it for discussion in parliament. Why this issue was discussed at the National Security Council is that relations surrounding mineral resources became an issue connected with the common interest and national security of Mongolia. There is no issue about starting to issue licenses from April 30. The issuance must be stopped until a new law to regulate relations of mineral A towering monument now marks the center of Mongolia’s historical struggle for independence resources is made based on previous lessons. Also, instructions were given to stop license trading and re-issuance B. Ooluun the square was named ‘Square of in Mongolian territory, the 805th defended and inherited by our ancestors Victory’. During the years of the anniversary of the Great Mongolian for us is the most valuable thing in On June 5, ‘Independence democratic revolution in the 1990s, Empire founded by Chinggis Khaan, the existence of our nation and to be Continued on page 4 Square’ was inaugurated in an the square was also a podium of human the 100th anniversary of the National esteemed by the people. The people area of Ulaanbaatar City which has rights, freedom, independence and Liberation Revolution, and the of present and future generations must been inseparably connected with democratic ideology and was renamed 90th anniversary of the People’s strengthen independence with sincere Inside Mongolia’s national independence. ‘Liberty Square’. In connection with its Revolution are marvelous events that hearts and constructive realization of The square is located in front of historical sources, the City Council of are eternal in national memory and effort.” Presidential visit...... p3 Chandmani Center, formerly Lenin’s Ulaanbaatar made a decision to name will be remembered forever. These The monument unveiled in the Museum, earlier named Square of it ‘Independence Square’. The decision historical anniversaries witness the middle of the square measures 19 Incoming ambassadors...... p5 ‘Yalalt (victory)’ and ‘Erkh Choloo is also connected with this year’s prideful deeds that make up the great meters, 11cms, symbolizing the year (liberty)’. In the center of the square celebrations for 2220th anniversary history of Mongolia and all coincide 1911 when Mongolia was liberated Agricultural exchange law...... p7 a monument symbolizing Mongolia’s of the Foundation of the Hun Empire, this year. We have to mark these great from Manchurian oppression and statehood, historical tradition and the the 805th anniversary of Great anniversaries perfectly and create gained independence. It is made of struggles of generations was unveiled. Mongolian Empire, 100th anniversary deeds to be remembered forever. Clear granite and marble with depictions of Takhi back home land...... p8-9 In history, wise people and of Mongolia’s Independence and 90th evidence of making many creative symbols of Mongolia’s statehood and scholars who were looking for land to anniversary of People’s Revolution. works preceding the anniversaries independence. On the top, fire, sun USAID/Mongolia-20 years...... p12 establish Bogd Khuree, chose a terrace Present at the inauguration is restoring and redesigning and moon have been crystallized with on the southern slope of Chinggeltei ceremony were Prime Minister S. Independence Square. This majestic copper and covered with golden plates. Mongolists met President...... p15 Mountain (behind present Chandmani Batbold, Ulaanbaatar Mayor G. monument symbolizing Mongolia’s The pillar monument is covered with Center) and laid a foundation for the Monkhbayar, MPP General Secretary independence, sovereignty, literacy, outlines of Nine White Banners of Ikh Khuree in 1778. U. Khurelsukh, Chingeltei District philosophy and will is a ‘valuable the State. The Soyombo is depicted in Bloomberg commodity price 2011/06/09 In 1911, when the revolution of Governor D. Ganbold, staff members memorial’ for future generations the higher part of pillar and teachings Price National Liberty brought victory, Bogd of Ulaanbaatar City Government and and a ‘symbol’ for eternal existence. of Chinggis Khaan were carved in Khaan decreed to impose taxes on Chingeltei District Governor Office, Our living peacefully and free in Mongolian old script in the lower GOLD USD/t oz. 1536.600 merchants and traders of foreign firms. cultural representatives and citizens. independent and sovereign Mongolia part. S. Tsakhiur worked as general The merchants and traders organized In his speech, the Prime Minister is the result of great deeds by our architecte and sculptor D. Khiimor COPPER USD/lb. 406.450 many demonstrations in front of the said, “We, Mongolians have a rich vigorous ancestors who overcame designed the sun, moon and fire on SILVER USD/t oz 37.030 present Chandmani Center. Also, on history that founded our statehood in strict and hard challenges for the the top. Stone work was executed by July 6, 1921, the Mongolian army and the center of Asia, defended the nation, sake of the nation, land, freedom, Mr. Sukhbaatar and construction work BRENT USD/bbl. 117.820 units of the Red Army headed by D. experienced rises and falls at some and independence by ignoring their was done by Mr. Ganzorig. During CRUDE Sukhbaatar, gathered at the square, times, but revived its independence, to own life. This monument will remind the inauguration ceremony, all art in front of the present Chandmani reach modern prosperity. The 2220th later generations of the value of workers who created the monument SUGAR USd/lb. 23.930 Center and moved to the present anniversary of the Foundation of our ancestors’ struggle, effort and were awarded. WHEAT USd/bu 757.500 day Sukhbaatar Square. Therefore its First Statehood, the Hun Empire independence. The independence 2 THE MONGOL MESSENGER news Friday, June 10, 2011

N E W S-IN-B R I E F–From The MONTSAME AGENCY Ministers assigned to finalize negotiations with Russia l On June 14-17, President Ts. Elbegdorj will pay Director of the ISS; and M. Batchimeg, advisor to the an official visit to the USA at the invitation ofUS State Head on national security policy. President Barack Obama. During the forum, the gathered appreciated a proposal During the visit, the President will meet with President by L.Bold on creating a security mechanism to operate Barack Obama, Secretary of State Hillary R. Clinton, in case of disasters and accidents in the region. L.Bold and John Andrew Boehner, Speaker of the House of held individual meetings with his counterparts from Representatives. At the meeting, the sides are expected China, Vietnam, Singapore and Thailand, and with to consider issues for strengthening the present level of Michael Schiffer, U.S Deputy Assistant Secretary of Mongolia-USA relations and cooperation, developing Defense for Asian and Pacific Security Affairs, East a comprehensive partnership, and prospects for the Asia. relations. l On June 24, a forum themed ‘Food safety in The visit also aims at maintaining the frequency of Mongolia-2011’ will run in the Government House high-level political talks and widening relations and under auspices of the Prime Minister. cooperation. Co-organized by the Ministry of Food, Agriculture l S.Batbold, Prime Minister of Mongolia, is going to and Light Industry, the UN Food and Agriculture leave for a two-day visit to China in the middle of this Organization, the Mongolian Association of Food month. The date of the visit is to be announced by the Producers, and branch of Germany’s Friedrich Ebert two countries’ governments. Foundation in Mongolia, the forum will attract some Within the visit, the sides will aim to elevate their 1,500 representatives. relationship to a strategic partnership level, and The gathered are expected to consider solutions to determine the purpose of a USD 500 million soft loan food safety and supply matters such as satisfying agreement from China. domestic needs with food products after agricultural l On June 7, Prime Minister S.Batbold met Mr. Kurt industries are restored, augmenting the reserve of M. Campbell, Assistant Secretary of State for East staple commodities to be used in case of disasters or Asian and Pacific Affairs of the USA. The dignitaries economic unstable conditions, and increasing state President Elbegdorj instructs Ministers following his Russia visit exchanged views on Mongolia-USA relations and support to reduce the nutrition shortage and spread of cooperation. infectious and non-infectious diseases. The same day, the Premier received Mr. Wang Xiaolong, l On June 7, an international meeting on a ‘Tea road’ On June 8, President Ts.Elbegdorj convened the Russian market. Ambassador extraordinary and plenipotentiary of the project has taken place. As a result, a special project with some cabinet members and other officials to The Minister of Mineral Resources and People’s Republic of China to Mongolia. will be co-implemented by Tourism department of give them obligations. He wants them to intensify Energy was told to carefully discuss the issue As supposed, rapidly developing in the last 20 years, Nature environment ministry of Mongolia, Tourism the outcome of his recent visit officially paid to of providing specific parts of domestic oil needs Mongolia-China relations in many sectors, especially bureau of Chinese Inner Mongolia autonomous region the Russian Federation (RF). with the cabinet and to submit it to the National in economic sphere, may give the two sides a chance and national tourism agency of Russia’s Buryatia. The President said this visit is vital for Security Council (NSC). to be mutually beneficial. Present at the meeting were a Buryat delegation headed both sides in terms of reaching an objective D.Zorigt and S.Enkhbat were ordered to Prior to the visit, the Premier intends to visit Hong by the agency’s leader L.Maksanova, and a Chinese understanding and bringing bilateral relations and work on mineral resources issues, including the Kong, special administrative region of China. delegagtion headed by the Vice Director of the bureau. cooperation to a new level. He said at meetings Tavan Tolgoi coal deposit, and to take it into l On June 2, First Deputy Prime Minister The three sides discussed the ‘Tea road’ project’s basic with the Russian President D.Medvedev and account under a united policy with the Russians’ N.Altankhuyag met a delegation in the Government research and route and signed a memorandum on Prime Minister V.Putin, the sides reached a interest in mind. House led by Dirk Meganck, Europe-Aid Director for starting realizing the project within this September. number of agreements such as updating the Present at the meeting were N.Altankhuyag, Asia and Central Asia. The tourism Tea road is supposed to cross the three 1949 Treaty on Railways. They came to terms First Deputy Prime Minister; T.Badamjunai, The First Deputy PM said he believes an agreement countries’ territories allowing each of them to on many agreements ‘except on two issues’, and Minister of Food, Agriculture and Light Industry; on partnership and cooperation to be established advertise related products. An agreement to launch the he obliged transport Minister Kh.Battulga to run Kh.Battulga, Minister of Road, Transportation, between Mongolia and the European Union (EU) project was established in 2009. A year later, a ‘Winter negotiations with the Russians on these two. Construction and Urban Development; D.Zorigt, would create good conditions to forward cooperation Tea Trip’ tour was organized along the traditional tea An order was also given to the Minister of Minister of Minerals and Energy; S.Enkhbat, in many spheres. He thanked the EU for the decision route by caravan, horse carts, and dog-drawn sledges Food, Agriculture and Light Industry and the head of the Nuclear Energy Authority; to give eight million Euros in assistance to support from China to Siberia passing through Mongolia and Minister of Foreign Affairs to attend to facilitating D.Tsogtbaatar, State Secretary of the Ministry of Mongolia’s policy on introducing the European trading tea products. trade of some products. Then, he underlined the Foreign Affairs; and O.Enkhtor, Director of the standards to sectors of state administrative bodies and Works have started to research Mongolia’s importance of the Russians’ decision to supply Foreign Ministry’s Department of Neighboring economics. participation, seek archive materials, create the route, livestock vaccines, and ordered T.Badamjunai to Countries. In turn, the EU delegation said it is important to drill develop Mongolia’s tea market and production, and to study ways of selling meat and meat products to the standards in the spheres of food safety, trade, advertise tea culture. investment and mining management first. The sides l On June 7, a Mongolia-South Korea business decided to discuss this issue later. forum started in the Chingis Khaan hotel under the A special envoy of the Ministry of Foreign Affairs theme “Mongolia-Korea Relations for One Asia”. A President meets with Green Campaigners and Ambassador B.Batkhishig told the EU delegation speech was given by Prime Minister S.Batbold at the about how Mongolia is introducing the standards of opening. the EU. The Prime Minister noted that Mongolia is not only l A contract will be signed between the Mongolia being recognized in the region, but also around the Opportunities Fund and the German Investment world by its growth in economics and economic Corporation (GIC) in frames of a visit by a delegation opportunities. Mongolia is one of the few countries headed by Peter Ammon, the State Secretary of the that is successfully transmitting within a short time Federal Foreign Office of Germany to be paid on June into a democratic, humanitarian and market economy 8-11. system from the planned economic system, he said. On June 9, a signing ceremony for the contract will run “We aim to put the advantages of mineral resources, in the Embassy of the Federal Republic of Germany animal husbandry and agriculture into economic (FRG) in Mongolia. circulation to create sustainable economic growth to In accordance with the contract, the GIC will make ensure human development, and to improve living an investment of USD 6.5 million to the Mongolia standards,” S.Batbold stressed. He added that the Gross Opportunities Fund and will cooperate with Mongolia Domestic Product (GDP)of Mongolia is expected to to introduce its experiences in environment protection increase by at least 15 percent and that the GDP per and social matters. capita will augment 2.2 times. Financing for the Mongolia Opportunities Fund will The Prime Minister pointed out that the Republic of be granted with the purpose to collect fixed capital for Korea is one of the countries that has wide relations small- and middle-sized enterprisers. in trade and investments with Mongolia, and that l A seminar co-organized by the Presidential office it is considered the third largest neighbor in foreign and “Water resources group 2030” international policy. organization for “Mongolia’s water supply matters S.Batbold said Mongolia wants to widen mutually decision” is taking place at the “Ikh tenger” complex. beneficial collaboration in all spheres and to deepen Aims of the seminar are to determine Mongolia’s ties in the fields of humanity and culture by forwarding development issues, Mongolia’s water circulation good neighborhood, friendly and cooperation supply resources, the amount of money needed, partnership relations. researching the socio-economic impact between water The Prime Minister expressed hope that the Mongolia- usage and supply, and ways to provide water in the Korea business forum will become an effective future. measure for both sides to forward economic relations At the seminar, there were several speeches with the and share opinions on their possibilities. Climate change abatement is the Green Campaigners objective themes “Water resources group’s activity in other l On June 16-19, a Mongolian delegation will countries”, “Problems, policy, plan of Mongolia’s participate in an international scientific conference that water usage and supply”, “Determining Mongolia’s will run in Kazani, Russia, under a motto “Education, On June 8, representatives of ‘Mother earth’s public day, they stressed. developing issues based on water resources supply”. sport and culture”. green development, silk ribbon’ campaign called Within the campaign, some well-known l On June 3-5, a Mongolian delegation took part in The event will be co-organized by Russia’s Ministry on the President of Mongolia to talk about their activists against global warming are in Mongolia 10th high-level forum of the Asian Security Issue co- of Physical Culture, Sports, Youth and Tourism, campaign. such as a Canadian Satish Siha, the World Miss organized by the International Institute for Strategic Ministry of Education and Sciences, National Their aim is to appeal to world countries to of 2008, Ms. India Parvathy Omanakuttan, Studies (IISS) and the government of Singapore in Olympic Committee of Russia, government of unite against climate change, desertification, air Ms. Kosovk Taraku Morena, a messenger of Singapore. Russian Tatarstan; organizing committee for Kazani pollution, soil contamination, and rubbish, they humanity and Ms. Montenegro Stanisic Nina. The delegation was comprised of L.Bold, Defense 2013 Summer Universiade. said. It also supports the Mongolian leaders’ Ts.Elbegdorj wrote ‘Unite for mother earth’s Minister; Lieutenant-General Ts. Byambajav, head Representatives are expected from 60 countries and 300 position on global warming and climate change health and peace’ on the green silk ribbon, saying of the General Headquarters of Mongolia’s Armed delegates of Russia, including scientists, athletes and issues, his speech given at the Copenhagen that he has joined the campaign, and wished the Forces (GHMAF); N.Tulga, Ambassador Counselor coaches. The Mongolian delegation is comprised od forum, and his decree on a Tree-planting national visitors success. of Mongolia’s Embassy in Singapore; D.Ganbat, D.Bayasgalan, a member of the Executive Committee Speaker D. Demberel met Steven Barnett Editor-in-Chief: Borkhondoin Indra English Editor: David brown WEATHER On June 6, Parliament Speaker D. Demberel on a food supply. We are warned against global Journalists: Batbayariin Ooluun Sunrise: 05.12 met Steven Barnett, Deputy Division chief in food shortages and climate conditions,” he went Translator: Mishigdorj Unurzul Sunset: 20.48 the Asia-Pacific department of the International on. He emphasized the importance of a measure dalkhjav Undrakh n Ulaanbaatar and Central Aimags: Night temps between 8oC and Monetary Fund (IMF). The Speaker said to prevent the shortage of meat, although the Layout/design : sarantuya munkhtulga 13oC. Day time temps between 21o and 26oC. Rain on June 12. Mongolia’s own characteristic considerably number of heads of livestock has reached 45 The Mongol Messenger, P.O.Box 1514, Ulaanbaatar, MONGOLIA. n Eastern Aimags: influences its macro-level policy of finance and million. Telephone: 266740, Tel/Fax: (976-11) 325512, Night temps between 80C and 130C. Day time temps between 14oC economics, in particular, the growth of fuel has In turn, Mr. Barnet said a new difficulty facing and 18oC. Rain on June 13. Home Page: www.mongolmessenger.mn n Western Aimags: the main influence on the inflation rate. “We Mongolian economics might relate to heavy E-mail: [email protected] Night temps between 6oC and 11oC. Day time temps between 21oC experienced a fuel shortage due to a delay in burdens on the budget. “In my observation, the and 26oC.. Rain on June 14. The Mongol Messenger is operated by the government news agency n Gobi Aimags: the fuel supply from Russia. However, it is not speed of the inflation rate dropped last month. MONTSAME and is printed by the MONTSAME Night temps between 11oC and 16oC. Day time temps between expected that the shortage will surge the inflation This is a result of cabinet actions to stabilize 27oC and 32oC. Rain on June 8. rate thanks to measures the cabinet has taken,” meat prices,” Mr. Barnett said. He has said it is he stressed. considered necessary to toughen the monetary “Grain significantly influences inflation as policy for the macro-economic policy and to ISSN 1684-1883 well. In recent years, our country has yielded keep the current budgetary policy approved this abundant harvests, and it has a positive effect year. Friday, June 10, 2011 visit THE MONGOL MESSENGER 3 President Ts.Elbegdorj concludes Russia visit Mongolian President received in Kalmykia

Kalmykia aspires to preserve the language and culture of Mongolia President Ts. Elbegdorj visiting Gunzechoinei Monastery in Russia

On June 1, President Ts. Elbegdorj’s history from the Mongolian section ‘Baltiishkaya Zvezda’ and expressed anniversary of Mongolia’s joining so happy to meet Kalmyk students. official visit to the Russian Federation of the museum. The collection of his support. to the UN, 30th anniversary of joint Originations of language, culture continued in the historic city of Saint the museum contains over forty-two Later the President visited the space flight of Mongolia and Russia and religion connect us. Mongolia Petersburg. The President travelled thousand such photos representing summer palace of Peter, the Great, and and 50th anniversary of cooperation has a long history of collaboration directly from ‘Moscowsky’ train station different cultures of the world. the Gunzechoinei Buddhism monastery. of scientific academies. This year’s and relations with Russia. While to Piskarevsky Memorial Cemetery President Ts. Elbegdorj’s official Monks invited the President to the Naadam Festival will be celebrated conducting a poll about which country where he laid flowers in memory of visit was remarked as of high seat of honor, made offerings to God, more magnificently.” we need to have close cooperation, the residents of the city who heroically importance as it opens new avenues and recited a mantra. The President “Compared to previous years, over 60 percent of participants stood up against enemy besiegement of cooperation between academics of gave them a Buddha statuette and bilateral trade turnover increased 40 preferred to have it with Russia. The for nine hundred days during the the two countries to cooperate in the wished them success in their deeds. percent from 2010. We are willing words of people are a guide for us. We Second World War. Residents and field of Mongol studies and research of The monastery was built in 1909 at to maintain and increase this growth. are willing to cooperate with Russia in natives of Saint Petersburg are greatly Mongolian historical and archeological the initiative of Agvaan Dorjiev and Kalmykia has many proposals and new sectors. I hope my visit can give proud of their heroic wartime history artifacts. was funded by Mongolia’s 8th Bogd. aspirations. We need to help to put impetus to it. I hope you will have during which 1 million lives were lost During the official visit, talks Unfortunately, it was completely the good initiatives and aspirations contact with Mongolians and support in their city alone. were also successfully held between destroyed in times of political businesses and people have into each other. This is our common wish President Ts. Elbegdorj next the Mongolian Academy of Sciences repression but was rebuilt in 1993 with action. Mr. Orlov said that Kalmykia’s and aspiration. I felt it when I met travelled to the State Hermitage and their Russian counterparts to put the sound help of Mongolians. beef is considered the best in Moscow. senior people. We are willing to have Museum which contains invaluable invaluable articles and other items In the afternoon, President Therefore, a joint meat factory can be close relations with Kalmyk, Torguud, treasures and displays exhibiting the up for public display and host joint Elbegdorj left Saint Petersburg for established in Kalmykia or Mongolia. Tuva and Buryat people.” impact of Mongols in the history of research in this field. Elista city of Russian Kalmykia This visit aims at giving more force to Kalmyk students asked questions mankind. This collection includes Hun The same day, President Ts. Republic where he was cordially bilateral relations and cooperation. I in Mongolian and Kalmyk languages. Empire artifacts discovered during Elbegdorj met with Ms. Valentina welcomed by Mr. Aleksey Orlov, have held meetings with the Russian At the end, the President presented the Noyon Mountain expedition, the Matviyenko, the governor of Saint head of Kalmykia; L.Ivanova, head President and Prime Minister to scholarships to five Kalmyk students silver Gerege used in the times of Petersburg city. The President of Kalmyk government; and A. discuss pressing issues and we were to study in Mongolia. The State Chinggis Khaan, a silver seal inherited underlined that his visit was not Kochachko, speaker of the People’s able to reach agreements.” University of Kalmykia bestowed the through the lineage of Mongol khans accidental because Mongolia wants Great Khural. That day, a ceremony took place to title ‘Honorable Professor’ to President and nobleman, diplomatic gifts and to study all related valuable creations, The President met with authorities present a Mongolian ger to Kalmykia Elbegdorj. souvenirs sent to the monarchs of findings and exhibits in Petersburg, of Kalmykia Republic, Mr. Orlov and in Elista, and a concert was given by After the meeting, the President Russia in the 17th and 18th Centuries show them to Mongolians, and some members of the government. Mr. Mongolian and Kalmykia artists such visited the Golden Monastery of and so forth. exchange scientists and scholars. Orlov said he believes the Mongolian as the ‘Tulip’ national dance group, Buddha and President Ts. Elbegdorj got The President of Mongolia “Mongolia intends to persistently President’s visit to Kalmykia will State Honored Artists of Mongolia, D. au fait with ‘Oiratsky stan’ farm, near also visited the Institute of Oriental support studying and saving rare be a vital step to strengthen friendly Sosorbaram and G.Ravdan, ‘Overture’, the Elista city of Russian Kalmykia. Manuscripts at the Russian Academy valuables of Mongolian history,” he cooperation between the people of ‘Khosogton’ and ‘Shurankhai’ groups, The farm breeds cattle, horses and of Sciences. The institute holds a stressed. Mongolia and Kalmykia and that it and the ‘Ev Eye’ national song and sheep. “The Kalmyk people left their total of over eight thousand pieces Ts.Elbegdorj expressed satisfaction would also be beneficial for Russian, dance group. homeland some 400 years ago but the of manuscripts and other artifacts with keeping bilateral cooperation Kalmyk and Mongolian people. Later, the President held a meeting cattle’s genes have not changed, they in connection with the history and in the educational sector, noting the In turn, President said, “I saw with senior people of Kalmykia. The can adjust to any weather,” said farmer culture of Mongols and their samples need to prepare energy, machines and happy people and images of peaceful latter expressed satisfaction with Ozaev. All the cattle have electronic were presented during President Ts. mechanism industries experts. life while I walked through the garden seeing the Mongolian President. chips in their ears to see information Elbegdorj’s visit. The representatives In response, Ms. Matviyenko to get to the Government House and “We never forget that we are part of about their birth place, date, weight of the Institute of Oriental Manuscripts thanked the President for visiting conversed with Kalmyk people. It the Mongolians. We are doing a lot and registration number. stressed that when it was first their city and appreciated his proposal seemed very nice. For Mongolia, this to save our language and culture,” The farm breeds seven pedigrees established, the first research activities to cooperate in education, history year is full of wonderful historical they stressed, adding that state pays of horses and sells them to Germany of the organization was on Mongol and sciences. She said she wants to anniversaries, the 2220th anniversary attention to it. and France. The President had a cup of Studies. establish a partnership and cooperation of foundation of first statehood, the On June 3, the delegation led by the tea in the farmer’s home. His spouse The Museum of Anthropology and agreement between the two cities. Hun Empire, in Mongolian territory, President paid tribute to the ‘Eternal Tatyana Ozaeva said she erects several Ethnography named after Peter the Then, Ms. Matviyenko sounded a 100th anniversary Liberation Flame’ memorial place dedicated to Mongolian gers in the summer to Great was the next stop for President proposal to host a business forum in Revolution of Mongolia, 90th Kalmyk soldiers who fought in the Red receive foreign tourists. Ts. Elbegdorj’s cultural tour. The Saint Petersburg to establish business anniversary of People’s Revolution Army during World War II and visited This was the last leg of the President was acquainted with rare ties between the cities. of Mongolia, 90th anniversary of the State University of Kalmykia to President’s visit to Russia and he and valuable articles and unpublished On June 2, the President had establishment of diplomatic relations meet students and instructors. At the returned to home country on June 3. photos illustrating pieces of Mongolian breakfast with Mongolists at Hotel between Mongolia and Russia, 50th meeting, the President said, “I am

Russian Academy of Sciences holds over 8,000 pieces of Mongol manuscripts and artifacts Kalmykia people welcome Mongolia’s President 4 THE MONGOL MESSENGER news Friday, June 10, 2011 No exploration licenses issued in 2011 C A B I N E T M E E T I N G At its regular meeting on June a financial source to fund the project Continued from page 1 8, 2011, the cabinet discussed the of building a new international following issues: airport in Ulaanbaatar. The Cabinet considered it of licenses given back by companies Boundaries set in protected areas necessary to fund the lacking and individuals.” The cabinet members discussed financial source for the construction The bill submitted by President an issue to partly set boundaries of work implemented within frames of Ts.Elbegdorj stated not to issue protected areas with river sources and the agreement established between exploration licenses until a new forests where minerals exploration Mongolia’s government and Japan’s minerals law is adopted. But MPs and mining activities have been International Cooperation Bank. considered the law necessary to state banned. Funding for some of the construction a certain deadline to ban issuance In connection, boundaries of and squares with ordinary technology of license. During discussion of the areas with river sources and forests will come from domestic sources. Bill, MPs asked about the process of where minerals exploration and The consultant company for the drawing-up a revised bill on mineral mining were banned in the licensed project completed the first plans of resources. A working group comprised area of gold deposits have been the project in January of 2010 and of over 10 people from the Economic approved as a supplement. estimated the total cost to be 47.1 Standing Committee and relevant A relevant working group and billion Yen which is more than 24.5 officials from the Presidential Office, Finance Minister were given a billion Yen than the preliminary government, and many experts are duty to decide on the amount of estimation made by the Special working on the revised Bill. D. Zorigt, compensation to be given to special Assistance Study for drawing up head of the Economic Standing license holders of gold deposits in project. Committee, responded that the Bill is these areas and include money in the expected to be submitted by mid June budget. Salary coefficient for pension and it is possible to discuss the Bill The estimated money for natural calculations to be renewed during this spring session, or autumn Mining operations can be detrimental to the environment losses due to mining activities in T. Gandi, Social Welfare and session if it does not succeed. protected areas with river sources Labor Minister reported to the MP D. Gankhuyag said that there and forests, closures of mines and cabinet about actions to be taken is talk that over 40 special licenses For example, a ton of coking coal and checked. The working group for rehabilitation costs will be issued for developing a pension insurance have been issued since approval of the costs USD300 on the world market, the revised Bill made assessments to from the government reserve and will system and raising retirement previous law on prohibiting issuance but it is exported from Mongolia at just previous laws of mineral resources be included in the budget adjustment pensions. of exploration licenses and asked over USD50. Although Mongolia’s and are working to revise the law for this year. The cabinet meeting considered if the issue has been confirmed. He coking coal is raw and unprocessed, because there are many problems in that it is necessary to renew the added, “The minerals sector has been there is much discrepancy in cost. the sector.” 263,730 ha area to be taken for coefficient of salaries to estimate so disorderly and it became a mine for There is no need for such a mineral As of 2011, a total of 14,734 State special needs retirement pension from the dirty money. There are many negative resource sector. Can these issues all licenses were issued since 1997 In connection with insurance fund and asked the incidents to export raw minerals be resolved with the revised Bill?” according to the studies. More than implementation of the Oyu Tolgoi Social Welfare and Labor Minister very cheap, share monies beyond D. Zorigt responded, “No exploration 600 deposits were registered in Project in Khanbogd, Bayan- and Finance Minister to make a the border, avoid taxation, swindle license was given since license Mongolia and by 2000, all deposits Ovoo, Khankhongor, Manlai and presentation to the cabinet. It was the State by the guise of a Stability issuing was prohibited and members were licensed. In 2000-2004, most Tsogttsetsii soums of Omnogobi also considered that suggestions of Agreement, use poisonous substances of the standing committee went to of the minerals exploration licenses Aimag, it was decided to take 263,730 government members need to be and not rehabilitate the environment. the Mineral Resources Authority (7418) were issued. ha area for building infrastructure reflected in the plan to develop the systems, road, irrigation pipes, pension insurance system. electrical transmitting lines and a communication station. The In brief boundaries have been approved as -The cabinet decided to allot Concerns rise as fuel supply falls supplement. Tgs1,132,200,000 (one billion, It was decided to give relevant 132 million, 200 thousand) from compensation from the Oyu Tolgoi the government reserve fund for B. Ooluun railway and mining Project to those who possess areas eliminating losses caused by the fire companies started within the 263,730 ha. that occurred before May, 2011 in The shortage of oil products operating normally. Also some soums of Dornod, Dundgobi, experienced in the Russian Federation oil importers started Special loan agreement to be Ovorkhangai, Selenge, Tov and Uvs directly influenced Mongolia which distributing diesel fuel signed aimags. and to recover the expenses relies on Russia for its domestic oil to card-holding users. Within frames of the general for transporting Mongolians who needs. Due to the shortage of diesel Some petroleum stations agreement of a soft loan worth were in Japan during the tsunami. In fuel, diesel fuel is sold with limits, that were closed re- USD300 million to be given by addition, the cabinet decided to give there has been a consistent long queue opened. China’s government, two projects, gers to five families that lost their and it burdened the normal activity From this week, the ‘Residential apartment area and homes due to fires that occurred of public transportation, railway and diesel will be distributed infrastructure’, and ‘Modernizing in Tov Aimag’s Tseel Soum and road maintenance works. to users with cards. and repairing rolling stock railroad Dornod Aimag’s Chuluunkhoroot On May 27, Ulaanbaatar Railway Specialists who study depot construction’ projects will be Soum. Diesel power stations will transferred to an economical condition Russian market said implemented. be established in Bayankhongor that limited operations allowing only that it will take nearly Cabinet members discussed Aimag’s Baatsagaan Soum as well. passengers and transporting coal for two months until Russia and supported signing the special - 340 tonnes of asbestos is required thermo-power stations, and foods, completes recovering agreement loan. to ensure winter preparation, repair closing some directions temporarily. its fuel shortage. So we The project ‘Modernizing work, investments and technical After June 3, it returned to normal believe it will be normal repairing rolling stock depot of organization work, and factories and activity. Mining companies halted by July.” railroad construction’ is to be companies of the mineral resources their activities and about 30 percent As a result of the visit executed by CSR Corporation and energy sectors. The Darkhan of buses for public transportation to China, an agreement of China and CSR Shijiazhuang metallurgical plant also urgently were stopped. As a result, public on 3,000 tonnes of fuel Co. Ltd. They have concluded a needs 1,080 asbestos fibers. The transportation companies raised was made and is now contract with the Ministry of Road, Cabinet approved to import them their fare by Tgs100-200. Some road being loaded. More talks Transportation, Construction and and to use them under supervision maintenance works in Ulaanbaatar are being made with Urban Development of Mongolia. in accordance with appropriate stopped , even though roadwork relevant companies to A contract has been concluded technologies. companies are being distributed diesel add 7,000 tonnes. “In with the Beejni Construction - The Cabinet discussed the according to a schedule made by the actually, we agreed with Engineering Group Co. Ltd for the matter on changing the status Oil Authority. Fortunately, a relevant China to purchase 10,000 ‘Residential apartment area and of some state-owned factories agreement was earlier established with tonne of fuel every infrastructure’ project. into state-owned incorporated oil importing companies for spring month. The volume of According to the general companies. Accordingly, Khentii sowing and there has not been any the fuel agreed with agreement of loan, Mongolia’s Aimag’s ‘Khargui’ and Sukhbaatar trouble in spring sowing. However, China connects with the government is responsible to fund Aimag’s ‘Talyn zam’ state-owned diesel is being distributed for planting capacity of transfer 15 percent of the total cost of the factories will become state-owned vegetables and potatoes and family facilities in Zamyn-Uud, project. companies. farmers with permission of soum Mongolia. This year, - In accordance with the cabinet governors. it intends to continue Tender for construction of new decision, a national committee will N. Boldkhuu, deputy head of building enlargement airport to start soon be set up to create and implement an Fuel Policy of Minerals and Energy for a terminator to load At the cabinet meeting, issues E-one window system for facilitating Ministry, said that citizens’ extra in Zamyn-Uud with an regarding the tender and the lack of external trade. reserve of petroleum than their needs investment of the State makes artificial shortage. Profiteering Budget. Works that by selling diesel fuel at higher cost were done last year will occurs. A liter of diesel fuel costs be continued this year. Tgs3000-4000 in rural areas. Government considers “Rising transportation costs influence They criticized them for being too In connection with a decrease in to reflect Tgs30 billion in petroleum prices. We cut all kinds of slow-moving on the issue to establish the fuel reserve, Minerals and Energy the budget adjustment for duties on oil products to zero. But it an oil refinery and gave an assignment Minister and relevant officials went building an oil reserve. is impossible to recover the cost of to make a certain plan on this issue. to Russia and China and are making Moreover, Tgs60 billion its price and price is going up. It may An issue to establish an oil refinery talks with oil companies. Minerals will be reflected in the continue until the situation and oil which can provide the eastern zone and Energy Minister D. Zorigt said, budget for setting up provision becomes normal. We often with oil products becomes a priority. “We agreed to import 37,000 tonnes containers to reserve exchange views with oil importers. “The Ministry will resolve issues of diesel fuel from Rosneft Company fuel. The feasibility study Unfair Competition Regulatory for three refineries. By June 20, the of Russia within June. The cost for and planning for the Authority controls the prices of oil foundation for the first refinery will be 15,000 tonnes of which has been construction to reserve products. The price issue will be laid. Preparation work to build an oil settled and we will soon negotiate the fuel have been made discussed after the situation becomes refinery in Zuunbayan that can process cost of the remaining 22,000 tonnes. before. It can be built normal,” said Minister D. Zorigt. 300,000 tonnes of oil every year is The abovementioned volume of in accordance with the There is a rumor that Russia may underway. Another refinery capable to diesel fuel is not sufficient to provide study,” said D. Zorigt. restrict its supply of AI-92 petroleum, process 121,000 tonnes will be built domestic needs; therefore, we ordered China’s oil products are the Minister explained, “Russia is in Choibalsan. Moreover, a refinery more diesel from other companies. We more expensive than short of AI-92. We are holding talks capable of producing 200,000 tonne believe the situation will stabilize by Russia and currently, the Price-ups signal fuel shortages on this issue even today.” is intended to be built in Ulaanbaatar. late June or early July because it will commercial price has The shortage of oil products They are expected to be complete by take some days until Russia builds- not settled. demonstrates the necessity to quickly 2012-2014. By doing so, up to 50 up its diesel provision. However, Every time Russia build an oil refinery in Mongolia. percent of total domestic needs of Mongolia’s companies whose changes its import duty on oil products, prices stable. Currently, Russia’s The MPP Group in parliament heard Mongolia can be provided,” said N. activities were stagnant can reinstate Mongolia’s government makes provision of oil products along border reports on building a reserve of oil Boldkhuu, deputy head of Fuel Policy this week. For instance, public monthly adjustments to its customs areas is insufficient; therefore, the products from Minerals and Energy of Minerals and Energy Ministry. transport companies, thermo stations, and excise duties to hold petroleum transport cost of oil products rises. Ministry and Oil Authority officials. Friday, June 10, 2011 visit THE MONGOL MESSENGER 5 Five foreign ambassadors present credentials Ambassador of the Republic of to expand trade and economic ties environmental, and defense ties with with Singapore. in the infrastructure, mining, energy, Iceland presented credentials in order to forward relations and Arab Emirates as well as cooperate in President Elbegdorj said Mongolia agriculture and environmental cooperation”, he added. mining, energy and agriculture. wants to cooperate with Singapore in sectors. The President underlined the The ambassador said Mongolia has refining upon state service and the In response, the ambassador said importance of boosting collaboration an ancient history and rich traditions spheres of health, education, sciences, Algeria can cooperate with Mongolia in the education sector and expressed and culture. “We see Mongolia’s technologies, investment and financial in the fields of tourism, energy, mining, willingness to train Mongolian future as positive; I will try to elevate markets. The President hoped that education and environment. students in Iceland. our relations and cooperation to the Singapore would support Mongolia In turn, Ambassador Arnadottir highest level possible,” he said. in becoming a partner of the ASEAN Ambassador of Republic of said she is ready to actively cooperate talks and to participate in the East Asia Lithuania presented credentials with Mongolia in the spheres of Ambassador of the Republic of Summit. education, high-tech, and business. Singapore presented credentials On June 6, Ms. Kristin A. Ambassador of the People’s Arnadottir, Ambassador of the Ambassador of the United Arab Democratic Republic of Algeria Republic of Iceland to Mongolia, Emirates presented credentials presented credentials presented her Letter of Credence to President Ts.Elbegdorj. At the meeting held after presenting the credentials, the President noted that Mongolia and Iceland have The Ambassador of Republic many similarities in ways of number of Lithuania to Mongolia, S. Lina of population, weather and other presented a Letter of Credence to the features. President Elbegdorj said that President Ts. Elbegdorj. Mongolian aims to develop relations Peter Tan Hai Chuan-Tai, Ts. Elbegdorj said that Mongolia and cooperation with Europe’s Ambassador of the Republic of wants to strengthen cooperation with highly-developed countries including The Ambassador of the United Singapore to Mongolia, presented his The same day, the President Lithuania in education, sciences, northern Europe with its transparent Arab Emirates to Mongolia, Omar Letter of Credence to Ts. Elbegdorj. received a Letter of Credence from culture, art, infrastructure, mining, and multi-pillar foreign policy. Ahmed Adi Nasib Al Bitar presented The President noted that developing Hassane Rabehi, Ambassador of the energy, agriculture, and natural Mentioning that Mongolia a Letter of Credence to President Ts. bilateral and regional cooperation with People’s Democratic Republic of environment. is attracting other countries with Elbegdorj. Asia-Pacific countries is one of the Algeria to Mongolia. The ambassador said Lithuania business-agreeable conditions, the After this ceremony the President priorities of Mongolia’s foreign policy, At the meeting after the ceremony, can cooperate in agriculture, in President said it invites the businesses said Mongolia wants to widen and underlined that Mongolia aspires the President expressed willingness intensified livestock farming, and in of Iceland to cooperate. “It is important education, science, technology, to deepen relations and cooperation to expand cooperation with Algeria hi tech spheres. Rio Tinto makes $100 million final installment Oyu Tolgoi contract modification signed

Pursuant to the 2nd annex of the second part worth USD50 million parliamentary resolution #40 dated on April 7, 2010. December 12, 2008, approving Based on parliamentary resolution the basic principle and directive to # 40 in 2008, the Finance Minister establish an Investment Agreement was authorized to build an agreement to co-exploit Oyu Tolgoi copper-gold on receiving a certain part of the deposit, the government was given a royalty and taxation of the Oyu Tolgoi duty to negotiate receiving a certain Company according to government part of royalty and taxation as an resolution # 164 ‘Giving authority to advance payment. establish an agreement’ was approved Accordingly, the Investment on May 25, 2011. It has the purpose Agreement was established on October to regulate relations regarding the 6, 2009 between the Government of remainder of the advance payment. Mongolia and Rio Tinto International On June 7, a signing ceremony in Holdings Limited, Ivanhoe Mines accordance with the agreement was Limited Corporation and Ivanhoe held at the Finance Ministry. Finance Mines Mongolia Inc., and it was agreed Minister S. Bayartsogt and Oyu Tolgoi that the Mongolia side would receive Company President and CEO Cameron an advance payment worth USD250 McRae concluded the agreement. million through certain phases. As the agreement was signed, the Advance payments were received last installment worth USD100 in phases. Mongolia’s government million of the advance payment was received the first part of the advance transferred to the Mongolian side. The payment of USD100 million in installment carries an interest rate of October, 2009 from the investor and 1.59 percent. Big money changing hands at Mongolia’s foreign ministry Modifications to Mongolia-OT Agreement ratified any time. Vice President of Ivanhoe Oyu - Funding hedging options: In Tolgoi (BVI), and Sam Riggall, case LIBOR has a higher cost to Executive Vice President of Business the company and shareholders, Development and Strategic Planning depending on world economic and at Ivanhoe Mines Ltd. financial situations, the company 2.On June 8, another agreement will study funding to hedge options was signed to limit sale and transfer and take required measures. It of shares. was also agreed to reconsider the According to this agreement interest of funding and loans with signed by Minerals and Energy the investor every 7 years. Minister D. Zorigt, Finance Minister S. - Project funding to come from third Bayartsogt and Nature, Environment body: The Company will get project and Tourism Minister L. Gansukh funding from a third body which is representing Mongolia’s government fruitful and suitable to Oyu Tolgoi and Andrew Harding, Chief Executive from the international banking of Rio Tinto’s Copper Group market in the first instance. representing Rio Tinto International - Mongolia’s ownership will not Holdings Limited, the investor side be lower than 34 percent: It was has to negotiate with the Mongolian previously stated in the agreement government and receive permission in that Mongolia’s ownership of 34 writing before Rio Tinto International percent will not be lowered. It Holdings Limited sell or transfer its has been confirmed not to lower shares in Oyu Tolgoi Company to any Mongolia’s ownership without its state-owned entity and/or persons who permission regardless of whether have direct and indirect connections or not it made a resolution to make with Oyu Tolgoi Company. financing to the company. It was agreed with the investor Mining executives and Ministers signing the contract modification - Preferential shares: With a purpose side to cut interest of financing of the to completely change the issue Oyu Tolgoi Project to LIBOR (The in relation to preferential shares London Interbank Offered Rate) plus As the Oyu Tolgoi Investment discussed at negotiations and meetings Previously, it was 9.9 percent plus that was previously stated in the 6.5 percent, to have the Mongolian Agreement and Shareholders’ with the investor side. the American consumer price index. Shareholders’ Agreement, it was side have a right to make financing and Agreement came into force on March 1.The following amendments Newly agreed interest of the financing decided to take it away from the take part in financing the project, to 31, 2010, the Mongolian side became were made to the Shareholders’ and loans came to effect from starting agreement. receive financing from a third body in owner of 34 percent of Oyu Tolgoi Agreement: January 31, 2011. On June 8, the amended the first instance, use funding hedging Company’s shares. During the period -Interest rate of financing and - The right of Mongolian side to Shareholders’ Agreement was signed options if required, to alter the issue on since the agreements were effective, loans: As a result of the talks, it was finance: The sides agreed that the at the State House by Erdenes MGL preferential shares that was previously issues on cutting the interest of the agreed with the investor to change Mongolian side will have the right Company CEO, B. Enebish from the stated in the agreement as well as to financing and resolving means and the interest of total financing and to make financing equal to its Mongolian side, President and CEO not lower Mongolia’s ownership of 34 conditions of financing effectively to loans to be made within frames of the ownership in the total amount of of Oyu Tolgoi Company, Cameron percent in any case. the Mongolian side were frequently project into LIBOR plus 6.5 percent. money required for the project at McRae, John Foniani, Executive 6 THE MONGOL MESSENGER industry Friday, June 10, 2011 Wool and cashmere production supported Residents in new micro district to Bonds worth Tgs300 billion issued get free apartments

state needs to support those who are working. For this reason, loans worth Tgs100 billion will be disbursed to the cashmere sector. Although the loan will cover 12 manufacturers, threading enterprises will also be issued. Therefore it will also support family production and small enterprises.” It will be an important impetus to support national industrialization. At the press conference, members of the Economic Standing Committee working group emphasized that the resolution aims to directly link animal husbandry sector with national producers by creating a mechanism for conveying raw materials from animal husbandry to industries. MPs believe that issuance of the bonds will support national producers and herders and it will also create 50,000-60,000 jobs. Within the last two years, loans for small and medium sized enterprises The old micro district will be leveled and new apartments built worth Tgs60 billion were issued to individuals and companies and it A ceremony to lay the foundation charge. resulted in the creation of 12,000 jobs. for the ‘100 Ail’ micro district was held The ‘100 Ail’ micro district is Based on past performance, it estimated in the end of May in the 10th khoroo a part of Government’s housing Greater productivity is expected in the cashmere industry that each Tgs5 million creates one of Sukhbaatar District, Ulaanbaatar. program, ‘Apartments for 100,000 job. “Processing cashmere will bring The micro district covers 1.4 ha families’ and piecemeal general plan Tgs300 million into the State Budget. area and presently, this area has seven, of the 7th apartment residential area B. Ooluun working out a project on issuing loans Out of 60,000 jobs to be created thanks not only for cashmere manufactures, two-story old apartments built in 1946 approved by resolution #47 in 2008 of to issuance of Tgs300 billion, 35,000 which have public toilets and do not the Presidiums of Ulaanbaatar’s City Parliament authorized government but for other productions as well in jobs will be in Ulaanbaatar. Now we to issue bonds worth Tgs300 order to circulate extra money in the have hot and cold running water or Council. have a measure to raise the export duty drainage systems. ‘Gezegiin Khudag’ Company billion with the purpose to support banking and financial market. As MPs’ on raw materials with the purpose to national producers and increase jobs. proposed, these two were combined. In the first stage, the area will attracted foreign investment and support national production,” said MP be cleared of the old buildings and financing for this project which will Government first submitted a bill Parliament resolved issuing loans D. Gankhuyag. to parliament to issue bonds worth worth Tgs100 billion from total bonds residents will be accommodated in be completed in 5 years. MPs said that banks demand new, comfortable apartments, free of Tgs110 billion for supporting cashmere worth Tgs300 billion to producers of collateral that is worth more than manufactures. During the discussion, cashmere thread and cashmere end- the amount of the loans individuals it was decided to issue bonds worth products and the remaining Tgs150 request. By considering it makes Tgs300 billion by expanding its scope billion to small and medium-sized trouble for people to build small and to not only involve cashmere but also enterprisers. Remaining bonds worth medium sized enterprises, the loan wool and small and medium sized Tgs50 billion will be spent on herders should be stated to be issued with enterprises. On June 3, Parliament who prepared and sold sheep and camel collateral worth 30-40 percent of the approved its resolution on some wool to national industries as a bonus, loan amounts when the resolution is actions to support national producers and on national producers who process implemented. The loan is expected to and increase jobs. wool. It was considered necessary to have a term of 5 years and interest rate The first Bill was stated to give Tgs2,000 per kilogram of wool up to 7 percent. Within frames of the issue bonds worth Tgs110 billion sold by herders to domestic industries. government project, the loan will be and disburse loans to 12 cashmere To do it, it was stated to give this issued in integrity with a policy that companies. It was criticized by bonus to herders who are members of determines what industries will be some MPs that it did not cover the a cooperative, with the added purpose established and in which aimags. MPs entire cashmere production, is late, to support cooperatives. underlined that the resolution is in and has conflicts of interest. As MP D. Gankhuyag said, “Good accord with the Mongolian Livestock T. Badamjunai, Minister of Food, quality infrastructure, processing Program and the Law on Exchange Agriculture and Light Industry industries, tourism and construction of Raw Materials. Parliament intends explained, citizens are interested in sectors are priorities that need to to continue policy to support national receiving loans with a purpose to be developed first. We need to industrialization stage by stage and manage small and medium-sized improve their competitiveness when issue a policy to support meat, milk enterprises, but the resource for loans government supports it with relevant and leather producers in the next is lacking; therefore, government was policies. Within these frames, the stage. Architectural drawing of the revitalization project

Foreign press on Mongolia Mongolians Given Free Shares in Coal IPO Jun. 3 – Every Mongolian has with the London Stock Exchange, first time last year, while predictions Fuso Successful in Growth Markets just been given shares in the Erdenes- is soaring to previously unheard of of it hitting US$10 billion by 2015 Tavan Tolgoi IPO, as was suggested highs, while the Mongolian national are rife. Much still needs to be done Mitsubishi Fuso Truck and strengthens the company’s presence would happen by us earlier in the currency, the togrog, is the world’s with many of the businesses listed, a Bus Corporation (MFTBC), one of in Asia year. The offering, in a coal mining fastest appreciating currency unit. large chunk being state-owned energy Asia’s leading commercial vehicle Russia’s neighbor Mongolia is operation commonly referred to as That is giving rise to concerns about companies that need a complete manufacturers and an integral part also considered to be a growth market, “TT” (for Tavan Tolgoi), is designed inflation and fears that traditional overhaul to make them viable. Hence of the Daimler Trucks division, and Fuso has had a presence there to ensure every Mongolian national industries such as agriculture and the creation of a sovereign wealth continues its success story in growth since mid-May. The move takes the shares in the new wealth being cashmere could face problems as fund by the government for it to invest markets. At the end of May, the company a step closer to achieving created through the development of costs rise in a competitive market. in some much needed infrastructure, company produced its 1,000th Fuso its strategic goal of international the country’s mining sector. The shares being distributed and especially in the energy sector. truck in Russia. It also entered the expansion into key markets with Income from the global mining to all Mongolians will trade on the Plans are to recapitalize some of Mongolian market in May. growth potential. sector is pouring into Mongolia, Mongolian Stock Exchange following these stocks, provide the companies Fuso reaches production Fuso will initially offer the lifting the current rate of GDP growth a lock-in period yet to be defined. The with investment plans, and then sell milestone in Russia Canter light-duty truck and Fighter to 12 percent this year with predictions stock market’s index rose 138 percent additional shares – possibly in Hong The 1,000th Canter light truck medium-duty truck in Mongolia. The of it rising to 30 percent by 2015. in 2010, and is up 27 percent in 2011 Kong and London as well as on the rolled off the production line roughly trucks are being exported from Japan Mongolia’s stock exchange, which to date. The total value of Mongolian domestic bourse. only one year after truck assembly and sold through the dealer network has recently entered into a partnership stocks passed US$1 billion for the Source-2point6billion,03June began at the Fuso Kamaz Trucks Rus of Mongolian Star Melchers Co., Ltd. (FKTR) manufacturing facility in (MSM), which is headquartered in the Naberezhnye Chelny. FKTR is a joint Mongolian capital of Ulaanbaatar. venture, in which Kamaz and Daimler “We see solid economic growth AG each have a 50 percent stake. potential in Mongolia,” said Kai-Uwe The joint venture was set up Seidenfuss, MFTBC Vice President of Eximbank offers $20 mil. loan to Mongolian bank in late 2009 to handle importation, Sales and Service International, at a The Export-Import Bank of Korea Before the signing, Kim modernization of government production and distribution operations ceremony marking the delivery of the (Korea Eximbank) signed a $20 million met Mongolian finance minister telecommunication cables and for Fuso trucks in Russia. The joint first ten Canter trucks to MCS Coca- inter-bank export loan agreement with Bayartsogt Sangajav, and discussed establishing emergency rescue venture’s headquarters is in Kazan. Cola LLC in Ulaanbaatar on May the biggest Mongolian commercial how to cooperate on economic information centers. Fuso: No. 2 Japanese brand in 16. “Furthermore, with our products lender Wednesday providing more issues. Of the $60 million, 76.5 percent of Russia and comprehensive service offerings, opportunities for domestic exporters, Sangajav thanked Kim for the assets have been used for information Fuso has meanwhile become the we and our local partner MSM can the state-run lender said. lender’s financial support from the technology projects, while 14.8 No. 2 Japanese brand in the light truck help promote the development of the Korea Eximbank Chairman Kim Economic Development Cooperation percent of the fund has been allotted segment in Russia. Furthermore, industrial sector in the country.” Yong-hwan agreed with Khan Bank Fund (EDCF), and asked for continual for energy programs. the distribution network for Fuso Fuso International Growth CEO Simon Morris to provide loans help for stable economic growth According to Korea International trucks in Russia was continuously Strategy to Mongolian importers, who want to in the Asian nation. The EDCF is Trade Association, the amount expanded last year and now numbers Last year, MFTBC entered a buy products from Korea. a policy fund, designed to support of trade between the two nations 50 locations throughout the country. number of new markets, including Korea Eximbank said that with the industrialization of developing marked $231 million last year. Korea “We are just getting started in the Russia, Pakistan, Cambodia, and agreement the lender can provide loan nations, established in 1987. exported $192 million of automobiles key Russian market,” said Dr. Albert Laos. As a result, Fuso is now active services for the Mongolian importers Kim promised to enlarge the size and telecommunication devices Kirchmann, Head of Trucks Asia, in more than 150 markets worldwide. without opening its branches in the of aid projects and vowed to enforce among others to the Asian nation, and with reference to the production The company will continue its nation. its financial support through various imported $39 million of commodities milestone. “We see great potential expansion activities in 2011 and will “We expect Korean exports, such measures. and grains. Mongolia is a resource- for our products here, especially as enter new markets during the course as automobiles, daily necessities and Currently, Korea Eximbank is abundant country with rich amounts the Russian economy becomes more of the year. construction machinery to increase providing $60 million for six projects of fluorite, copper and coal. diversified with greater focus on Source: Daimler, with this agreement,” said an official led by the EDCF, which include services.” LogisticsWeek,07 June of Korea Eximbank. thermal power station construction, Source-Korea Times, 8 June 2011 Market entry in Mongolia Friday, June 10, 2011 livestock THE MONGOL MESSENGER 7 Livestock slated for tri-annual health treatments Sh.Erdenechimeg preventive actions. Research is now being conducted to produce Understanding ‘The 21st century anthrax vaccines at home with the herder’ implies quite different help and under the framework of the meanings. The herder of the 21st International Nuclear Energy Agency. Century now becomes a producer The PM noted that in future, the specialized in his occupation, government will adhere to the policy qualified in skills and knowledge in of producing good quality home-made economy and accounting. On June 3, medicines and bio products. Aside Prime Minister S.Batbold announced from the national factories producing this at the parliament session when he bio products and medicine, support made a report on the methods, policy will be rendered to private industries and directions implemented in the to strengthen the material basis of livestock breeding branch. private veterinary clinics, breeding The PM stated that the government stations and services, and grant them supports livestock breeders by uniting financial assistance such as loans their efforts and cooperating to set up and credits, and encourage them via cooperatives, friendly partnerships taxation policy. and groups. At Mongolia’s initiative, According to S.Batbold, US$25 S.Batbold said, the UNO declared million in long-term credit, rendered 2012 as “International Year of from the Hungarian government Cooperatives”. Preparations for this on preferential condition, shall be year are underway in Mongolia and spent for technical and technological much attention is now being drawn to modernization of the state-run vet doctors working in rural areas to “Biocombinat”. With realization of retrain specialists in livestock breeding, the GMP requirements of the EU improve their skill and knowledge, production sustainable practice and and increase their numbers. The PM using it in veterinary clinics and characterized this as one of the basic services, it will enable Mongolian- conditions to improve the final results made medicaments and bio products of the government action program to be brought up to international directed at livestock economy. The standards. PM also reminded that starting from The government also plans Routine sheep dipping and vaccinations are mandates for international sales 2011, it was decided to involve heads concrete actions for expanding the of stock in vaccination, drenching scope of veterinary clinics, breeding to 15. In 2012 animal insurance will reliable water sources. Definite husbandry, considers the government. and dipping them three times a year and services. This year for example, be implemented in all Mongolian provisions envisaged by the “Mongol In view of this, future attention will with the purpose to provide the livestock will be protected from provinces. Mal” government action program will be focused on development of big Mongolian population with healthy parasite diseases; the cattle population Investment made by the be resolved in the near future, the PM national production economies by livestock products. Healthy livestock and elite breeding stock will be tagged, government to improve pastureland underlined. developing crop farms in the east has become a priority task for registered and taken under the united exploitation is increasing every year. Some positive results have and west regions and introduce new government. information fund. Standard numbering Tgs6.0-7.0 billion was spent in 2010 become evident in developing progressive technologies to receive Implementation of this task for the livestock population will and 2011 for pasture irrigation, pest intensive livestock breeding in recent good yields. envisages seven western Mongolian include registration and “electronic control, forestation, and building years. In the past 3 years, the number In 2009-2010 the government provinces into the status of peaceful chips” will be imbedded in horses thus new pastures. Two new inter-aimag of animal farm economies engaged in spent Tgs30 billion to expand small regions not affected by the anthrax guaranteeing the origin and security pasturelands were created, elimination intensive animal breeding increased and medium enterprises and build outbreak and not involved in of animals, their raw materials, and of mouse voles, rodents and locusts from 458 to 1295. Six model complex new ones in aimags and soums to vaccinations. A request has been made products. The introduction of new were held on 2611.3 thousand hectare dairy farms were built and elite bring food and agricultural processing to the World Organization for Animal technology will create conditions of land in 2008-2010. In the future, the breed cows were given to 44 farms industries closer to raw material Health to declare Mongolia’s initiative for supplying the raw materials and government is planning to spend more and individuals under the program sources which as it is considered internationally. “If there is a positive products of animal origins at domestic funds to expand new pasturelands “To Support and Develop Intensive would be economically profitable for response to the request, we will be and foreign markets and in trading; it between aimags and soums, increase Livestock Breeding”. export and also for contributing to able to export animals, raw materials also will help to fight against cattle irrigation and fodder reserve and build Under the “Suu” program, 20 the development of remote regions, and products from western areas of rustling. cattle-pens and livestock enclosures at cooling and preserving centers, 24 aimags and local development the country”, said Batbold. According to the scientific pasturelands to protect animals from refrigerator equipment, 30 milk and making the lives of the rural Anthrax outbreaks have intensified research, over 70 percent of Mongolian strong winds and heavy snow. processing industries and workshops population better. Parliament issued a in recent years in Southeast Asia and pasturelands have deteriorated. The A total of 36.0 thousand wells were put into exploitation among resolution to assign Tgs150 billion in our neighboring states. In 2010, this law on pasturelands has been drafted were drilled at pasturelands; 68 farmer’s economies. Tgs1367.0 financial resources. The government serious disease occurred in eastern with an aim to improve pastures and percent of them were artisan wells million in soft loans were granted to is working to support the building of regions of Mongolia causing serious stop desertification. According to and 32 percent were engineering more than 60 citizens and business dairy and meat processing industries damage to livestock breeders and the parliament instructions, no less than wells. Some 1000 engineering wells entities in recent years. Now, it is meeting international standards by country’s economy. Thanks to timely 10 percent of the proposals forwarded were drilled in 2008-2010, 1500 wells required to define the border lines effectively using foreign grants for this efforts taken by the government, the by herders’ households were included were repaired and 1600 artisan wells and coefficient of regions which will matter in order to ensure the domestic disease outbreak has been completely into this draft law. In order to perfect were dug with the help of livestock be engaged in combined intensive requirements in milk and meat as well eliminated and herders were the animal insurance structure, the breeders. Professional organizations livestock breeding and crop farming as to export dairy and meat products to compensated for their damages. From indexed insurance financed from the have calculated that more than 8000 economies. other countries because Mongolia has now on, it was decided to protect WB has been experimented with since new engineering wells must be drilled Mongolia is available to develop an enormous reserve of good quality livestock in eastern provinces against 2006 in 3 provinces, and in 2011, in order to ensure the rural population and combine the crop farming meat, milk, wool, cashmere, leather anthrax outbreak and undertake the number of provinces increased and 40.0 million head of stock with economy with intensive animal and hides. Agricultural stock exchange law approved

income source for herders and people, of products of agricultural origin under the “Mongol Mal” program. It is create the possibility to sell them for a and raw materials shall have the planned to hold an experimental stock good price, to set up an initial complex coordination council consisting from exchange auction before implementing structure of preparing animal-origin 13 members representing the state and the law. For that, we must educate products and raw materials in 329 non-government organizations, and and train stock exchange employees soums of the country, and for setting up the head of the council will be elected and the cooperative raw material the sales mechanism of raw materials for 3 years. The coordination council managers. In the first stage, we will prepared in healthy circumstances for will have its office, the rules related to sell cashmere, wool, meat, animals and market purposes. its activities will be approved by the wheat. The herders must prepare raw According to the government government, and the work performed materials according to the standard, bill, the stock exchange has been by the service will be reported to the which is very important. In previous envisaged to be a state-run economic government. years, our herders had the experience entity while members of relating MP D.Baldan-Ochir, head of the of supplying wool and cashmere standing committees and working working group said the following to sales and purchasing agents and group proposed operating the raw about the stock exchange and cooperatives. The reputation of the material stock exchange in the form of preparations for the stock exchange: stock exchange is inseparable with the company, the later was supported. The “We have to work hard to complete standard”, said Baldan-Ochir. law makers considered it appropriate preparations in the remaining period ‘The cooperative will mediate by to involve livestock breeders in of time to implement the law. The selling herders’ cashmere and wool the stock exchange relationship in stock exchange center will be located and will operate on a commission the form of cooperative taking into in Ulaanbaatar. An electronic network percentage of the raw materials income account the market directions and will be necessary for communicating price. The herders will bring certain the development prospects. MP with rural regions at auction sales. In shares to run the cooperative business. Ts.Davaasuren proposed to provide other words, the soum raw material Business of one cooperative will run herder/producers with independent cooperatives will communicate by on normal speed by accumulating an participation in the stock exchange electronic net or telephone on the average Tgs80-100 million in capital. considering them as legal subjects but particular stock exchange auction. But we must think more about the not forcefully pushing them to form It means 329 soums need electronic family income of Mongolian herders business cooperatives. Most MPs communications; therefore, a soft and whether they would be able to supported the idea to form business infrastructure for stock exchange collect this sum of money. If under Cooperatives will unite the supply of raw products cooperatives from joint efforts and needs to be built. It would be easy the “Mongol Mal” program the team prepare and supply raw materials in because more than 200 soums in our of hay-mowing or the construction large quantities which, as they think, country are already connected by a of store premises are financially B.Ooluun needed to implement the law. will meet the market demand. The fiber optic network. The setting-up of supported by granting low-interest According to this law, the stock herders would be able to unite in an inter-soum cooperative will be the and long-term loans, the cooperative On June 2, parliament approved exchange on products of animal cooperatives and participate in stock key problem for the stock exchange. business could radically be able to a stock exchange law for products of origin and raw materials shall enable exchange sales through their brokers. Soums could have many small become profitable. This state policy agricultural origin and raw materials. Mongolia to establish a mechanism According to the law, the lowest cooperatives which already exist and need to be implemented’. Today there The law shall come into force starting for fair prices on products of animal ceiling of live animals to be sold will all of them are member cooperatives. are more than 2000 cooperatives of January 1, 2012 as preparations are origin and raw materials serving as an be 100 head. The stock exchange A key cooperative must be prepared livestock breeders nationwide. 8 THE MONGOL MESSENGER wild nature Friday, June 10, 2011 Takhi horses return to Mongolia Czechs save Takhi from extinction

Oswald. This man gave money to build establish sheds and reinstate natural the acclimatization centre Takhin Tal resources in 2001-2004. From 2004, in the Gobi B National Park in west the first herd of Takhi horses were Mongolia. The first horses returned reintroduced, observed and studied. to Mongolia in 1992. The same year, In 2005, more Takhi horses were the Dutch started breeding Przewalski reintroduced. horses in Khustain Nuruu Center near Takhi habitat area is far from urban Ulaanbaatar. places. By 2004, 25,000 ha area of The third reintroduction area was Takhi habitat was fenced with electric established in 2004 in Mongolia near wire to protect from outside attack. Khomiin Tal located in Dorvoljin With a purpose to stretch electric wire, Soum of Zavkhan Aimag. The first protective fences in this remote area herd of Przewalski horses reintroduced were disconnected from the central to the wild was in 1997 in Takhiin Tal. energy grid, and solar energy panels Prague Zoo sent Mongolia 4 horses– were placed around the fence. The three (1 stallion, 2 mares) in 1998 and Takhi herd has summer and winter 1 mare in 2000 to Hustain Nuruu. Two sheds in the field. mares–Zeta in Takhiin Tal and Babeta “When it reaches 500 head, the in Khustain Nuru are still living and Takhi herd will become a naturally have many foals. Zeta, named in independent population. The issue of Mongolian as Od is the oldest mare growing the Takhi herd to this number coming to Gobi from Europe (she is and further destiny of Takhi horses 17 years old) and survived the very is in the hands of local people,” said hard winter this year in the Gobi. Dr. Evzen Kus. For example, the Now, there are about 1900 Takhiin Tal herd in the Gobi desert Przewalski horses living in the world was reduced from 149 to 50 due to the in both zoos and in the wild. The good dzud of 2010 and some roaming into news is that more than 400 are living China. The greatest danger for Takhi free in their homeland, the Asian dry is from dzud conditions. steppes (west China and southwest What was the reason Takhi horses Mongolia). were disappearing in Mongolia, their On September 5, 2004, the first native land, and only survived in 12 Takhi horses were brought from zoos of many countries in the world? France to Khovd Aimag in Mongolia Traveller Przewalski first reported as the third habitat of reintroduction. about Takhi horses in Mongolia to Dr. Evzen Kus caring for a Takhi horse at the Prague Zoo Currently, there are 24 Takhi horses in the world. Therefore it was named Khomiin Tal in Zavkhan Aimag. Over the Przewalski horse. Takhi attracted the recent decade, works to select Europeans attention and zoos of By Borkhondoin Indra be implemented with sponsorship of new open Prague Zoo. This was a a habitat, study fields and satisfy many countries wanted to breed Takhi some organizations and the Czech most important moment because at preparation to reintroduce Takhi horses. Therefore, foals of this wild On June 15, at the end of over government, four Takhi horses will the end of World War II, Prague Zoo horses have been made. For instance, horse were exported. However, when 20-hours of travelling from Prague in be brought to Khovd Aimag on June was (together with Munich Zoo) the field studies on nature, environment mares that were possessive of their the Czech Republic on June 14, four 15 on a special flight from Prague and last zoo where a breeding herd lived. and socio-economy including flora, foals and stallions defended the herd Takhi horses, 1 stallion and 3 mares, will be reintroduced to the wilds in At other zoos, most of the horses died vegetation, resident and migratory attacked people, the Takhi horses were will arrive in Khovd Aimag and be Khomiin Tal in Mongolia’s western or were shot (in Ukraine by German birds were carried out in the Khomiin shot. This is still talked about among transported to their native territory in region. . soldiers) or survived but were too Tal area and along the territory of locals. Also, massive numbers of the Khomiin Tal area in Dorvoljin Soum Evzen Kus is visiting Mongolia old. In 1959, the Prague zoo held Khar Us lake and its buffer zones. Takhi horses perished during the dzud of Zavkhan Aimag. The aircraft will from Prague. He graduated from the the 1st International symposium for On the basis of field studies results, disaster in the winter of 1943. This carry special wooden compartments Department of Zoology of Charles protection of the Przewalski horses. justification to include the Khomiin Tal almost caused the Takhi to become to prevent the horses from injury University in Prague and has worked Since then, Prague maintained the into the buffer zone of KUNNP was extinct. Based on what local herders during flight. The Director of Prague In the Prague Zoo since 1978. In the only edition of international studbook developed and the area was declared told, Mongolian scholars and experts Zoo, a veterinarian, cameraman and beginning of 1990, he started keeping for this species. as a buffer zone of the park in 1999. deduced that Takhi last appeared horse keeper will be traveling with the a studbook of International Przewalski In a symposium, Mongolian A total of 25,000 ha areas adjacent to in Mongolian territory in 1967. A horses in the aircraft. This is third time horses. Dr. Kus said, “We are bringing zoologist, Dr. Dovchin reported that Seeriin Nuruu Mountain was entered project to reintroduce Takhi horses to Takhi horses have been reintroduced to 4 young and healthy Takhi horses, 1 the last wild horse in the Mongolian into the local special area. their native land started in 1992 with Khomiin Tal of Mongolia. Currently, stallion and 3 mares to Khomiin Tal’ Gobi was in 1969. After 1970, not Takhi horses will be reintroduced the support of Holland and German there are 24 Takhi horses living wild aged 3 to 5 years. “We have more than even one wild was observed in the to Khomiin Tal in Dorvoljin Soum of businessmen who financed their Takhi in Khomiin Tal. 30 head of these horses in the Czech wild. In the 1970´s, Prague zoo was Zavkhan Aimag which is included in project. The first Takhi reintroduced The Takhi wild horse disappeared Republic including 21 in Prague. the biggest breeder of Przewalski buffer zone of Khar Us Nuur National to Mongolia came from the Prague to become nearly extinct in the 1960- We have good cooperation with horses in the world. They repatriated Park (KUNNP). Khomiin Tal is Zoo in Czech Republic. Currently, 1970s and only a few head survived our Mongolian friends to return the Przewalski horses to nature beginning considered suitable for introducing the number of Takhi horses in Hustain with help of humans. Prague Zoo last wild horses back to Western in the late 80´s. Zoos did not have wild animals because of its vast area Nuruu of Tov Aimag has reached over contributed much to save the Takhi Mongolia. So, Zoologists in Prague enough money and reintroduction and having less population. It was one 200 and in Takhiin Tal of Gobi-Altai horse from extinction with their have the longest continuously started by arrangement of a private of historical areas where Takhi horses Aimag approximately 50. program. ‘Reintroduction of the tradition of breeding Takhi horses. foundation from Germany and existed and the last Takhi appeared Takhi disappeared from the Prezewalski horses to Mongolia’. In 1921, the first Przewalski horses Holland. The first wild horses there in the 1950s. wild due to the increase in human Takhi reintroduction to Mongolia came to the farm of Agriculture brought back to Asia came in 1988 The area was found suitable to population which led to habitat started in the 1990s by European University in Prague from City Hall to the Jimsar breeding center in the reintroduce Takhi horses as a result competition with people and livestock, organizations. With invaluable (Germany). There were 4 foals born. Chinese province of Xinjiang in Ujgur of studies in 1997-2000. The studies as well as over-hunting for horsemeat. support of the Prague Zoo and Then, in 1932 a pair was bred named autonomous region due to an initiative continued with works to prepare By 1968, Takhi had become extinct in within frames of a major project to Ali and Minka and transported to the of German businessman, Christian reintroduction of Takhi horses and the wild in Mongolia, and only about

Czechs have rescued Takhi horses from oblivion in the Prague Zoo Visitors playing on a Takhi horse statue at the Prague Zoo Friday, June 10, 2011 wild nature THE MONGOL MESSENGER 9 Takhi horses return to Mongolia

Takhi horses once again thrive and reproduce on Mongolia’s steppes

150 individual horsed remained in is a wonderful result. Without a doubt, zoos around the world. Over time, the Mongolia is the native land of Takhi surviving Takhi became increasingly horses. I worried about how long it domesticated and inbred. would take until the reintroduced To save the species from what stallion could form a herd. However, looked like inevitable extinction, the stallion started forming its herd the FPPPH (Foundation for the just after coming to native land. Preservation and Protection of the This time we will bring four Takhi Przewalski’s Horse) and FRPH horses, one stallion and three mares, (Foundation Reserves for the to Khomiin Tal to improve breeding. Przewalski’s Horse) in the Netherlands To protect from inbreeding and save came together to select a new habitat Takhi horses, breeding improvement for the horses and reintroduce them work should be done. Bringing four to the wild. The criteria for the Takhi horses requires much money, new habitat included year-round but the Czech government funds it.” availability of natural water sources, ”There are also some other food, shelter, and a well-balanced countries with Takhi horses, including ecosystem Germany, Czech, Kazakhstan and Horses have long been symbols China. Unfortunately, the countries of strength and courage in Mongolia, do not cooperate actively. Last year, and the return of the Takhi has been a meeting on Takhi horse was held, a source of national pride. With its but without certain results. Further, abundant wildlife, 450 species of it is essential to have cooperation of flora and dramatic steppe landscapes, countries,” he added. Khustai National Park attracts eco- It has been about 20 years since tourists, volunteers, and researchers they started reintroducing Takhi horses from all over the world. The Takhi to Khustain Nuruu of Tov Aimag project has also afforded biologists and Takhin Tal of Gobi Altai Aimag. unprecedented opportunities to study Mongolia has since established three the Takhi in the wild. areas for the protection of Takhi horse Dr. Evzen Kus said, ”I started population. In the last 20 years, the studying the Takhi wild horse in the Takhi horse has shown the abiltiy to 1970s. My teacher was also studying cope with and flourish in the conditions Takhi. Our zoo is experienced in of their native land by increasing their registering Takhi and accustom it to number to over 300 head. Mongolia nature. After WWII, our zoo had had is grateful to the Czech Republic very few head of Takhi horses. The first for implementing and funding this Takhi came to our zoo in the 1920s. program that could not be realized We reintroduced Takhi to Mongolia without their generosity on the 80th for the first time and they are adapting anniversary of the Prague Zoo Special in their native land. Some 90 percent thanks is offered to the Czech Embassy of Takhi horses reinstroduced to in Mongolia for helping to coordinate In September, 2007 an air transport relocated Takhi stallions from Khustain National Park to Takhiin Tal in the Gobi native land became habituated and it and implement this project.

Rangers observing free-living horses in Mongolia’s wilderness Takhi mare protecting her foal 10 THE MONGOL MESSENGER economy Friday, June 10, 2011 Good management of resources makes for a strong economy

By B.Bulgamaa consultants bought in to provide by over Tg 100,000 per month. Also neutral advice on the contents of the every student in the family has been Mongolian National Development draft. Results showing the difference granted Tg 500,000 for their tuition. and Initiative Committee chief, between these two approaches and This provides for a share for Ch. Khashchuluun said last week, systems is available after five -10 loans to every citizen of Tg 1 million Mongolia’s economic growth has years of observation. for buying a new apartment. The become recognized among the most A positive outcome for Mongolia minimum living standard rate is raised rapidly growing global economies. is how the government tries to sustain to Tg 144, 000 in 2011. According to a Ministry of Finance mineral resource distribution shares to Wages and salaries will be raised first quarter report for 2011, economic the populations and evaluates the right at the end of this year again. growth would reach 10.8 percent in way to do it effectively. This advantage The country won’t suffer from 2011, with Government projections on leaves space for further improvement over inflation economic growth, estimating it may so Mongolia is developing a The inflation rate is estimated at reach 16.6 percent in the 2012. mandatory civil council to discuss the 5.5 percent with the government’s each new law’s conception. The aim objective to freeze inflation to single Specific Issues of the Mongolian is to develop a more responsible draft digit figures (less than 10%). Emerging Economy and implement the laws by discussing To this end, the Government It is evident the economy’s growth potential rewards and costs for the adopted measures such as creating depends on the revenue from the country. reserves of food and meat with an mining sector and this is a sign to All political parties are more increase of five-10 times - a main concentrate on the need for clear and represented with a shared balance of factor that stabilized consumption of supportive policy for this revenue. power here and all parties have seats basic items against rising prices. There are three specific policy areas on the civil council and not seats in the Mr. Khashchuluun said: “We also implemented by Parliament and parliament. It is a good system. have a plan to increase the supply for Government along these lines: Mongolia needs to become the agricultural and food sector. There First, Mongolia is undergoing a more open and transparent decision- could be more reserves so the price of continuing stage of development with making. food would be held at a stable rate”. conscientious management of the The country has to improve Another factor for rising prices mining sector. Second, mining sector and strengthen its political system, however, was an increase in the price revenue must be shared equally among encourage private and NGOs into State of oil on the international market. the Mongolia’s citizens; and third, service and improve the participation Mongolia can control the effects of there is a need to create a new economic of the NGOs in planning. these oil prices with an increase in area based on information technology Khashchuluun noted that domestic oil production. There is a workers to meet the increasing needs Mongolia’s economy is growing at plan to put into operation the Dornod of the global economy. a rapid pace and he explained this aimag oil refinery firstly and then a Khashchuluun said that revenue intensive rise in percentage is caused smaller oil refinery in Zuun- Bayan from mining was not just capital for not by the country’s economy, but by and a third in Darkhan city – with a the current generation. He said, earth’s its volume. He said economic growth large capacity for refining oil waiting resources are limited so we must plan was no longer solely dependent on the the investment. to spend carefully, collect revenue and mining sector, but also evident in the Khashchuluun said, “If Mongolia use it to generate high profits, and keep manufacturing industry which grew supplies itself with energy, oil and food it for the next generation. We need to by 10 percent and in the trade and we will not need to fear inflation.” construct a strong infrastructure, high service industries growing markedly. The Development Bank opens quality schools and hospitals and health The construction and infrastructure its doors and finances four big care for the population. In establishing sector was also expanding in response projects Ch.Khashchuluun these basics, there will be a stronger to the demands. and sustainable economy to handover The World Bank report showed The Development Bank (DB) to future generations. Consequently real direction for development opened its doors on May 12 with a New industrial complexes were to four - five. a renewal of fiscal laws is taking growth: Parliamentary decision, a Tgs 800 constructed near Oyutolgoi and Tavan The next step includes developing place including approval for a law on The newly released quarterly billion bond would be issued. The Tolgoi coal deposits with a coal the knowledge economy workers - Development Banks, a renewal on the GDP numbers show that the year bond’s finance is guaranteed by concentrating plant in operation soon nano technology and biotechnology Law on Concessions and renewal on ended with broad based recovery, the Ministry of Finance and means and the Oyutolgoi copper concentrating will be developed in the near future. management of the Mongolian stock led by transportation (16 percent investment would be repaid from combination in operation from one The World Bank’s report identifies exchange, in one year. yoy growth), construction sectors the state budget, to the Development year ago. Manufacturing sector growth two sectors which have been slightly Norway and Chile’s experiences (38 percent), and wholesale and Bank, with interest. increased to 8.5 percent from five depressed - agriculture and mining. The give best practice models and retail trade (23 percent), Industrial The loan would be used for the percent. During the Socialist period, report explained that the agriculture examples to study for developing production seems to be picking up four biggest projects: i) A National the manufacturing sector‘s growth sector’s depression resulted from the revenues from the mining sector. In again in March 2011 to 10.6 percent program of new construction including was 20 percent however this figure zud and the harsh 2010 winter. The Mongolia is adopting experiences yoy, compared to 1.4 percent yoy a plans to construct infrastructure and has not been reached easily now but mining sector’s growth was down by from those countries, in a way that year ago. apartments; ii) Complex of Heavy is showing growth with more hope in two percent. industry iii) Roads new railways. complement its specific features of a One of the main challenges the future. All other indices reported by the small population and large territory. The bond would be issued in the Tavan Tolgoi’s coal mining and World Bank were very strong, such to the economic growth is market in a piecemeal manner with, The challenge is to develop the unemployment. heavy industries complex smelting as: territory’s infrastructure to minimize for example, Tg 100 billion to Tg 100 plants will be put into operation Inflation was moderate; fiscal negative fiscal impact and to move The International Labor billion per episode. soon indicating a positive trend and balances improved strongly, the carefully to overcome hurdles, step by Organization’s (ILO) October 2010 Khashchuluun explained the bond judging from domestic consumption togrog’s average monthly exchange step. report showed economic growth had would be sold to Commercial banks and individual deposits in the last rate against the US dollar appreciated. The World Bank’s second quarter not increases in job availability in and domestic and foreign investors. year, Mongolia shows a distinct The togrog’s deposits continue to rise, report completed by seven to eight Mongolia with job places increasing Foreign investors were more accumulation trend. The consumption private external borrowing and private professional economists, was released by 100,000 between 2003 to 2007. interested the DB’s bond first standard grew higher earlier but now lending is increasing, the ongoing in end of May. It includes views on In 2003, unemployment numbers tranche with an interest rate of five demonstrates increased accumulation mining sector boom has led to rapid Mongolian economic development, were reported as 900,000. to six percent - more profitable for to covered 38 percent of the GDP. growth in the stock market indicators led by: “Mongolia is a country The World Bank’s second quarter investors. Third, the main export product over the past few months. Medium- with good economic and political report – 2011 estimated unemployment Secondly, foreign investors would was copper in 2010 while in 2011coal term prospects look excellent, both institutions; resource discoveries are at 106,000, in December, 2010 and consider the Mongolian togrog a accounts for an very increased role – from an economic growth perspective not likely to lead to resource capture showed the unemployment rate creditworthy currency. Last year, hence the saying, “Our economy can and from a fiscal management by exploitative elites, but more likely to decreased to 9.4 percent from 13 two national currencies were the stand on two legs.” perspective. An analysis of the macro be used to improve national welfare”. percent while Workers real informal best performing currencies in the As a result of the third National economy noted that a new Integrated Ch.Khashchuluun, Chief market wages on average increased by world, The Togrog’s rate value rose campaign to reclaim virgin land, Budget Law could help lock in prudent commented that, “This description 18 percent from December to March, 15 percent and the Australian dollar domestic food production is up fiscal policies. focuses on a specific feature of the 2011. rose 13 percent in 2010. Foreign 100 percent. Figures for vegetable But the World Bank warns Mongolian social and politic system, Ch. Khashchuluun noted in his investors considered that was enough production grew from 60 percent to government that: The core of the fiscal in my opinion.” He said Mongolia is a report at the National Forum, “Labour- to strengthen the torgog’s rate further 70 percent; potatoes with a supply stability law (FSL)—the structural country of parliamentary governance Basis of Development” ( October making them interested in trades and over 100 percent. It is anticipated in balance of minus two percent of where the biggest decisions are 2010), that the unemployment rate and securities. They showed an increasing the future, Mongolia will become a GDP—only starts in 2013. Hence, made by parliament who assumes poverty would be reduced two times interest to buy togrogs in long term food country exporter adding a third until its effective implementation, risks this responsibility on behalf of the less in the next five years. securities. leg to the metaphor. exist. These risks are best illustrated population. The presidential system In his report he stated: “as a Commercial banks were also The next fourth leg could be added by a comparison of current trends with is different where, for example in result of our estimation over the next interested in the sovereign bond, since from the information and technology the ones that prevailed before the 2008 Kazakhstan, a country with a president, five years, there will be a need for they can make reserves with their sector and tourism. crisis. These comparisons highlight one man makes decisions . 21,200 job placements to meet mining capital worth Tg 1 trillion. This bank Recent, figures show the significant similarities, and send a A study comparing the two systems sector demands; manufacturing capital consists of the Central Bank’s Information and Technology sector warning about the risks of returning to showed Kazakhstan’s economy was sector job demands for over 12,000, securities and required reserves. The covers nine percent of GDP and over the boom-bust cycle, if no corrective strengthened by foreign investment and construction and infrastructure commercial banks was interested 400 companies are working in this policy action is taken in anticipation contracts and agreements all decided demands for 7000 new job places with in the DB’s bond to circulate their sector. of an external shock. in a short time. However Mongolia 6,800 engineers and 33,500 specialized funds. An Information Technology Khashchuluun said he has not took longer and conducted careful workers for the next five years.” According to the DB’s law, complex for the students will be observed any crisis this year, or even studies before signing any foreign the Administrative Council of constructed in Nalaikh district and the ‘Dutch Disease’ (a concept that Wages increased by 25 percent Development Bank consists of three investment agreements for mining. compared with the previous year with placement of all information and explains the apparent relationship The two approaches have had agents: representatives of NGOs and technology companies near the student between an increase in exploitation according to the World Bank a management team led domestic and different results. report. It is real number or not? complex. Currently, 20 Mongolian of natural resources and a decline Kazakhstan’s many mining foreign specialists. The Central Bank companies export software programs. in the manufacturing sector), and contracts resulted in great loss to the Khashchuluun stated his view on and Ministry of Finance will monitor The tourism sector is also an explained this in a detailed economic country’s interests, causing them to sue this: the Development Bank’s revenues and export. Government will approve the and political system report. He said it foreign investors to increase national “This number was made by the spending. Tourism Master Plan this year with was not possible to reduce the fiscal revenue from mining resource. National Statistic Committee and The economy was standing on a lot of money invested from state deficit this year. Mining agreements made in shows 25 percent. The average income just one leg last year and it was in budget. Mongolia are relatively open and of our people was Tg 300,000 per Following the main road, tourist Khashchuluun: I have not seen copper, soon there will be four to any crises as for this year made with more care in balancing month in 2009. Last year the number five legs to stand on in the near camps would be established up to 100- several factors. Authorities tried to was Tg 450, 000. future. 200 kms in distance from the capital, Khashchuluun explained the basis inject non-government organizations As for this year, one factor in the countryside and Mongolia of the 2008 crisis was created from (NGOs) ideas to protect citizens in contributing to the increasing per The Government financed more will buy new planes. Prime Minister within the infrastructure sector but foreign investment agreements. The capita income is Tg 21,000 per person small to medium sized enterprises S.Batbold appointed the Minister of had not overtaken economic growth at draft foreign investment agreement from the Human Development Fund last year, mostly small industries. The Tourism responsible for increasing was discussed openly by the people and which means that if a family has five return in these industries, in particular, tourist numbers to 1 million by 2015 Continued on page 11 government with international mining members, the family income increases the meat and sausages, was very high. – increasing the legs . of the economy Friday, June 10, 2011 economy THE MONGOL MESSENGER 11 Good management of resources makes for a strong economy

and the problem solved. We will not reduce the fiscal deficit Khashchuluun said: bonds over the last few years. The Continued from page 10 The agriculture and food sector immediately”. At the Tavan tolgoi deposit, we Government decided the country dis was progressing at a normal pace in In the future, the fiscal regime are engaged in discussions. I believe not need more international finances 2011. In 2010, many animals died would be more responsible from 2013 that there no longer is any blockage currently and it was more important to that time. in the harsh winter, but this year under the new laws. Parliament and or impediment for further successful raise money in domestic sectors, since For example: the capacity of the we there has not been any natural Government agreed to approve the law negotiation. Production should start by it was cheaper. Therefore Government freight of railroad didn’t negatively disasters. Planting prior to harvest is on Policy of Development and a Fiscal the end of this year, or at the beginning decided to raise money by DB’s bond affect the growth of the economy also expanding. Koreans will plant Stability Law. Fiscal revenue would of next year. in the national currency, the togrog. in 2008. During that time, the price vegetables in Khalkh Gol region in be enhanced with the development Mongolia does not need to issue Mongolia reaches Millennium of imported goods for construction frame of the “Atar”, and the fourth policy. The fiscal investment would be sovereign bond Development Goals materials from China increased and National campaign to reclaim virgin centralized more and the fiscal deficit there was a shortage of materials land has started. It is noted that would reduce. The World Bank report warns The Mongolian government caused by the Olympic Games domestic capacity has increased and The World Bank also warns: government that Issuing a foreign approved the “Millennium construction in China. more agriculture products would be The bulk of the financing would bond would be expensive. It would Development Goals - Based As for this year, the infrastructure exported – with no food supply issues depend on prepayments from the TT also unnecessarily bring in even Comprehensive National Development construction has not started and anticipated . project currently under negotiation. more capital into the economy during Strategy of Mongolia” in 2008. In this the project for creating apartments Khashchuluun said warnings However, some industry analysts this boom period, when the economy document it determined that “The for 100,000 families would be about the fiscal deficit were warranted, raise questions about the willingness already shows signs of overheating. main goal of the economic policy implemented over the next five and it was true the fiscal deficit by bidding firms to commit to large Sovereign bonds’ yields are is, in 2007-2015, to achieve MDGs, years. Cabinet has started to discuss would continue to decrease from prepayments at this point, as a number soaring for several Eurozone reach an average annual economic expansionary measures to increase the an international perspective. Donor of key variables of the TT project will countries, and combined with other growth of 14 percent, increase GDP production of construction materials organizations have to understand need to be clarified further . international developments, capital per capita to at least 5,000 USD, domestically in Mongolia. the real situation in Mongolia. To If these prepayments do not is shifting to safer markets. For a first and establish the basis for intensive The cement industry should encourage an intensive economic materialize during 2011, the fiscal time borrower like Mongolia, raising economic development; in 2016- be able to supply a minimum 30 growth period, large demands deficit would need to be financed money through a sovereign bond 2021, to increase average annual percent of the demand for domestic exist to invest fiscal revenue in the almost in its entirety by the domestic issue would therefore be expensive. economic growth to at least 12 percent requirements, and feasibility studies infrastructure, energy sectors and market. The exact amount will depend For instance, Greek 10 year bond , customize and develop knowledge- made for three projects last year industrialization sectors to develop on whether tax revenues continue yields increased from 11.2 percent based economy, increase GDP per are waiting for investment from the the mining sector. to be buoyant, and whether or not in November 2010 to 15.7 percent in capita to a minimum of 12,000 Development Bank. Building roads is very important parliament makes further amendments early May 2011. Venezuela (which has USD, create economic capacity Government made a few with construction in four directions to the budget, further increasing a similar credit rating to Mongolia) and resources to reach the level of expansionary works for infrastructure throughout the whole country. Much spending to make good on political was at 12.26 percent in early May world’s middle income countries.” sector: An asphalt road from more investment is needed to increase promises ahead of the 2012 elections. 2011. However, Chile, like Mongolia a The implementation of this plan has Omnogobi to China is being the supply of electrical power, However, domestic borrowing by major copper producer, is able to float begun. constructed to expand new networks construction of the railroads…etc. government implies a crowding a 10-year bond at only 1.31 percent, According to the Ministry of of roads to China; investment for Even if the fiscal deficit increases, out of the private sector during a due to the consistent implementation Finance report of the first quarter of the new railway and road has been revenue from the fiscal programs will period of rapid economic expansion of its structurally balanced budget. this year, GDP per capita will be about decided by the Government. The also increase. when access to bank credit would be Khashchuluun said for this part 3000 USD this year and in 2012 over concern over the capacity of freight Khashchuluun said, “We must essential to finance the scaling-up of the Mongolian government had 4000 USD. transport of minerals would be freed reduce the fiscal deficit step by step. business operations. studied the realities about sovereign Direct foreign investment in Mongolia

By B.Natsagdorj PhD anddomestic resources companies. Positive steps saw the Total foreign investment in Mongolia from 1990 to 2010: - Natural resource exposure and Government endorse a convention Foreign investment, as a component development “to release foreign investors from of globalization, isa powerful - Increased access to raw materials double taxes” effecting 34 countries to mechanism to improve communication - Possibilities to collaborate with the “support and re-invest;” 39 countries between countries involved in this two neighboring states and global in the Washington Convention in activity. Itsharpenscompetition among markets 1965, and in 1996enter the‘Seoul countries and influences investment - Possibility to leverage off a young, Convention of 1985’ “To establish investment insurance diversified practices. better-educated population and labor Year Foreign investment Company number year Foreign investment Company number Mongolia’s foreign investment resource, with modern technology agent” in 1999 and enterthe World law: “Foreign Investment,” (FI) and management methods Investment Supporting committee in 1990 965 2 2001 131,741 354 has a goal to establish investment - Membership rightsin the 1997. companies in Mongolian territory international economy, trade, banks The Government diversified and 1991 2,108 10 2002 186,846 390 with due diligence and in co-operation and investment organizations confirmed investment in the World Bank 1992 1,906 22 2003 203,734 692 with Mongolian companies. The Group,allowing investors toprotect Law specifiesthat foreign investment Disadvantages from foreign (insure) their risks. Collaborating 1993 3,569 40 2004 247,589 778 companies have to hold at least 25 investment also need to be with the World Development Bank percent of the with10 percent as considered and include: was an important step to move closer 1994 31,509 78 2005 316,839 971 the threshold asassigned by the - Limited infrastructure and to a transparenteconomic structure International Monetary Fund (IMF). transport unable tomeet transport and free up trade and investment. 1995 56,166 145 2006 366,543 1505 According to the IMF,where requirements, especially with Trade agreements and conventions 1996 71,358 190 2007 499,962 1609 investment from a foreign company Mongolia’s landlocked status withthe United States and European equals the investment from domestic - Outdatedfarm technology Committees alsoinfluenced and 1997 61,537 256 2008 708,922 1551 companies, plus10 percent, it is - Livestock husbandry and agriculture strengthened foreign investment. considered a foreign investment methods outdated 1998 83,487 279 2009 801,158 613 company. In other countries it differs. - Extreme climatic conditions Investment was smallin 1990- If the investment is at least 10 percent - Manufacture and consumerismfor 1993 ($0.9-3.5 million), increase 1999 94,824 339 2010 1,025,996 769 from foreign companies in the United supply and demand was slow and in 1994-1996 it rose 2000 103,870 293 States, Denmark, Turkey; 20 percent in - Business cycles and businesslike sharply (31.5-71.3), and it has been Finland, France and Spain; 25 percent character weakness increasingever since 1998. Total 4,840,318 10709 in Japan, Germany, Austria and Great - Corruption and collusions embedded Mongolia registered 10,709 Britain; 40 percent in India; 50 percent in business practices companies and over 20 economic in Korea; 49 percent in Mexico; 59 - Comparatively low population and organizations from 104 countries percent in Canada and 100 percent in limited skilled / professional labor to manage their business. FIFTA Mongolia should implement a foreign investment requirements into the Netherlands, they are considered - Domestic land tenure low, limited advertising from1990 to 2010 saw investment policy to balance foreign Mongolia increased to$ 100,000. foreign investment companies. financial resource $4,840,318.000 invested from 104 trade with economic flexibility and About 70% of total foreign In Mongolia with a lower Foreign investment in Mongolia countries in Mongolia. strong policies, step by step. investment companies work with economic capacity, resources and emerged at the beginning of the China leads the list of foreign As the leader for foreign Mongolian companies and about financial possibilities, minimum transition period in 1990 with the investors in Mongolia with Canada, investment, Chinaalso holds the record 30% work with 100% investment internal stockpiling, foreign establishment ofaForeign Investment the Netherlands, South Korea, Virgin for company numbersin Mongolia. independently. The increasing number investment provides an important State near the Ministry of Trade and islands (UK) and Japan following. Investment has increasedin the areas of companies with100% investment source for economic growthand helps Industry. The importance ofa foreign In percentage terms, 50.99% is from of geology, mining, construction and might influence the economic situation. increase exports. Foreign investment investment law was recognizedand China, 8.26% is from Canada, 6,08% manufacture, trade, public catering Overthe last several years, foreign createspossibilitiesthat assist economic the Mongolian parliament created from the Netherlands, 5,29% from establishments, animal husbandry and direct investment has increasedin size integration globally and regionally. “The Law about Foreign Investment” South Korea, 4.60% from the Virgin raw material processing sectors from and scope. Following foreign direct Encouraging foreign investment in in 1991, renewing and changing it in islands (UK) and 2,86% from Japan. China. investment, Gross Domestic Product Mongolia is the best way to provide 1993, 1998, 2002 and 2008. However, 78.08% of total investments from Canada is investing mainly in (GDP) increased and has influenced economic growthas follows. Andother laws which related to it, and foreign countries are from the above natural resources, especially in gold employment and net exports. However It: how to respond to foreign investment six countries. mining. this increase doesn’t necessarily - Providesnew techniques and rightsand duties, to support and New concepts for national security From Foreign Direct influence the economy. It is related technology encourage investment were not followed by Mongolia country are Investment(FDI), 65,3% is found to the “Holland ache” and “Devil - Improvesmanagement and manager’ defined. driven by the policy, “investment size in geology, mining surveying, circle”. knowledge and skills As a result, an independent (percent) from any country must be researching and the extraction - Directsbusiness flowdomestically organization,the “Foreign Investment equal, or less than, one of the three of sector, 18,9% is in trade and public Rules important to foreign - Manufactures products which State” emerged in 1996 to look after total foreign investment”. In the third catering establishments, 2,7% in investment in Mongolia are: can compete and increases export these problems, with a name change chapter of the Foreign Policy Concept banks and financial activities, 2,2 • Foreign direct investment should capacity to the current title- the ”Foreign “to save economic security with three- % in light industry. Mining leads be in the private sector. - Increasesdomestic savings Investment and Foreign Trade Agent” dimensions on the basis of Mongolian foreign investment withChina and • Foreign investments in the mining - Enables entry to external markets, (FIFTA) in 1998. National Security Concepts, we Canadainvesting strongly. sector raise important problems. improve competing capacity FIFTA’s main purpose is to mustavoid dependencyonother 6926 companies were registered • Foreign investment will increase - Increases employment and its increase investment in Mongolia, countries.” Nowadays, 50.99% of in the trade and public catering the source of exports outputs. support export, increase small-to- direct, foreign investment and foreign establishment sectors and 64,7% of • Foreign investment is important medium enterprises, and providea companies are from China. total companies received foreign for the energy sector The advantagesfrom foreign ‘one stop shop’ for services. The In the foreign trade sector, investment.There is less investment in • Foreign investment has a place in investment in Mongolia are many, latter servicewas implemented in Mongolia is dominated by China’s these sectors than other sectors. China industrieswith capital including: 2000, to assist and register all foreign investment. 80% of the country’s and South Korea lead this sector with • It is necessary to develop legal and - Political stability investment companies. TheMongolian exportsgo to China with onlyabout investments. traderules in foreign investment - Transparency in economic policy government also entered into three% to Russia. On the other hand, With changes to the “Foreign in Mongolia. - Higher exposure of territory partnerships with international importsare balanced. In this light, investment law” 2008, foreign 12 THE MONGOL MESSENGER usaid mongolia Friday, June 10, 2011 Celebrating 20 years fo USAID in Mongolia: Actions speak louder than words

By Jonathan Addleton This year marks the 50th anniversary of the founding of the US Agency for International Development (USAID) – and the 20th anniversary of USAID in Mongolia. It was my privilege to be assigned as USAID Mission Director in Mongolia for three of those twenty years (2001-2004). The current USAID Mission Director in Mongolia – Chuck Howell – has even more extensive prior experience, having previously served in Mongolia as both the first Peace Corps Director (1991 – 1993) and the third USAID Mission Director (1995–1996). Looking back on the last two decades, I am proud of the partnership that USAID has forged with Mongolia while also mindful of areas in which all of us could have done better. Development work is always challenging and mistakes are inevitable – but, in every case, there are also “lessons learned,” even when everything does not always go according to plan. During much of the 1990s, USAID in Mongolia focused on emergency assistance, especially in the all- important energy sector where the possible shut-down of power plants in Ulaanbaatar during the winter months would have been catastrophic. Even as this emergency aid was being delivered, USAID-funded Asia Foundation US Ambassador, Johathon Addleton (L) once served as USAID Director in UB, with current director, Chuck Howell (R) programs assisted in Mongolia’s early steps toward democracy, in part by supporting Mongolia’s then-nascent Early on, Xac Bank proved At the request of the Government increased staff salaries, provided USAID or the US government for NGO sector. successful, attracting additional of Mongolia and very unusually financial services to more than anything. Yet, as a matter of historic By the turn of the millennium, investment and gaining well- for a donor agency, USAID in 500,000 households, extended more record, USAID was there at the USAID programs began shifting received experience in how to design, August 2000 assumed temporary than 400,000 loans and pioneered new beginning, playing an important role toward sustainable economic implement and sustain effective micro management responsibility for the approaches to corporate arts support in the launch and eventual success of development, including major support credit programs in a large, sparsely bankrupt, government-owned bank and philanthropy. both institutions. for the small business sector. Under populated country, experience that which played a vital role in extending Instead of becoming a net drain For my part, I will always be the Gobi Initiative involving Mercy has since been shared internationally. lending and payment services to the on scarce government resources, grateful for the unexpected chance Corps, USAID became one of the A wheat monetization project funded farthest reaches of Mongolia. By the Khan Bank rapidly turned into one of to work in Mongolia as a USAID first foreign donors to focus attention by the US Department of Agriculture late 1990s, the bank was so badly Mongolia’s biggest taxpayers. USAID officer during a critical time in its on business development in rural (USDA) also helped capitalize Xac managed and had made so many funding for the management team that development, making a modest yet Mongolia. Bank during its early years. problematic loans that one advisor turned Khan Bank around amounted hopefully useful contribution as part A couple of years later, USAID Much of the credit for Xac Bank’s from a leading multilateral donor to approximately $3 million over two of a relatively small USAID program, launched the Ger Initiative, initial success goes to Stephen Vance, asserted in his consultancy report that and a half years. As the once-bankrupt one in which funding levels have only implemented by CHF. This program at that time country director for Mercy only one option remained — “to shut Khan Bank became first solvent rarely exceeded $10 million annually. was instrumental in highlighting a new Corps in Mongolia and the architect it down”. and then successful, the dramatic Years later, every time I drive challenge – the dramatic growth of of the USAID-funded Gobi Initiative Despite this dire prognosis, turn-around was featured in several in Ulaanbaatar or travel across the ger districts surrounding Ulaanbaatar (several years later, in November USAID agreed to deploy a new international publications, including steppes, mountains and deserts of and other urban centers and the need 2008, Stephen was tragically killed in management team. During the Far Eastern Economic Review and the Mongolia and see a “Xac Bank” or to generate employment, income and Peshawar while heading up a USAID- 30-month restructuring program Asian Wall Street Journal. “Khan Bank” sign on a crowded street economic activity in these areas as funded program in Pakistan’s tribal that followed, this small USAID- Purchased by a Mongolian- or in a tiny rural hamlet, I am reminded well. areas). Several Mongolians were also funded team led by Pete Morrow Japanese consortium for $6.85 million yet again of both the risks and the While proud of USAID’s involved in the early stages, including and consisting largely of Mongolian in March 2003, Khan Bank has vital contributions made by USAID associations with these and other Ch. Ganhuyag who now serves as experts entirely “rebranded” the bank, emerged in recent years as a unique and during a particularly challenging time, programs, my own list of “most Mongolia’s Deputy Minister of re-launching it as “Khan Bank.” As perhaps unprecedented “success story” despite the concerns of skeptics on memorable” projects during the last Finance. part of the rebranding, Khan Bank also for Mongolia, winning numerous the sidelines who were all too quick twenty years would have to include Despite its modest beginnings, introduced a new logo, new computer international banking awards along to claim that “it can’t be done” and USAID’s contributions to Mongolia’s Xac Bank has grown rapidly in recent technology, new loan products and in the way. Moreover, the new owners “the only thing left to do is to shut it banking sector. In fact, two of years and is now regarded as one of many cases new staff selected on the immediately hired the USAID-funded down.” Mongolia’s four largest private banks the largest, best managed and most basis of merit rather than connections. management team, using their own When recalling this history, I – Khan Bank and Xac Bank – are successful private banks in Mongolia. Bank restructuring programs are funds to ensure the bank’s continued am also reminded of an age-old directly linked to USAID interventions It still maintains a commitment to always challenging. They are also success rather than having to rely on expression, one that appears in many during the late 1990s and early 2000s, micro finance while also pioneering often associated with ruthless staff US tax payer support. languages including both English a time when Mongolia’s entire banking a range of other innovative financial reductions and a wholesale closing of *** and Mongolian. “Talk is cheap,” it system was on the verge of collapse. products, including mortgages and branch offices deemed unproductive. Over the last eight years, Khan suggests. “But actions always speak *** leasing. However, under USAID Bank – like Xac Bank – has grown far louder than words.” Established only in 2001, Xac *** stewardship, the number of Khan from strength to strength. Both banks Bank was formed following the The story of Khan Bank – Bank branch offices in Mongolia are now worth many tens of millions Jonathan Addleton, currently merger of two donor-funded non-bank adapted from the original name for increased from 269 to 356 and the size of dollars each. As entirely private US Ambassador to Mongolia, served financial institutions, one supported the Agricultural Bank of Mongolia, of Khan Bank’s staff doubled from banks, each institution makes its as USAID Mission Director in by USAID and the other funded by Khuduu Aj Akhoin Bank — is equally 800 to nearly 1,600. In addition, Khan own decisions, is responsible for its Ulaanbaatar from August 2001 until UNDP. intriguing. Bank’s management significantly own destiny and no longer relies on April 2004. USAID/Mongolia marks its 20th anniversary On June 2, 2011, USAID/Mongolia USAID funded a variety of trainings management, access to information and celebrates 20 years of partnership with and other activities aimed at promoting automation. While judicial reform work the people of Mongolia. The celebration economic reform and advancing civil ended in 2009, USAID governance presents an opportunity to highlight the society. activities continue with anti-corruption successes of the last two decades as Since the early 1990s, USAID activities and efforts to incorporate civil Mongolia transitioned to democracy has promoted economic growth society into the decision-making process and a free market economy. by supporting policy reforms that and strengthen the interactions between In spite of its small budget relative encourage private sector investment citizens and their representatives. to other donors, the partnership between and enterprise development. USAID From 1991 through 2010, the Mongolia and USAID has been highly has worked closely with all parts of total USAID assistance provided has instrumental in contributing to this the political spectrum to transform exceeded $200 million, all of it in successful transition. This celebration Mongolia’s tax structure and improve grant form. The program is managed will relay key achievements of this its investment climate. This has led by a nine-person USAID Mission partnership during the last twenty to a lower tax burden on businesses, in Ulaanbaatar. Specific projects are years. increased production, and new jobs. implemented through a network of In November 1991, USAID USAID activities have improved trade contractors and grantees in cooperation launched its first program in Mongolia policy, helped broaden and deepen with both public and private sector with a grant of $10 million to provide financial markets, improved corporate Mongolian partners. emergency supplies and spare parts to governance, and strengthened the The current USAID strategy in the country’s power plants. By 1998, banking sector. USAID has also Mongolia links the two main themes of USAID had provided an additional helped develop a market-oriented good governance and private sector-led $50 million in supplies, equipment and regulatory environment to promote the economic growth. technical assistance to help strengthen competitive and efficient delivery of USAID/Mongolia looks forward and sustain Mongolia’s crucially energy services. to continuing its strong and results- important energy sector. Other early Since 2001, USAID has oriented relationship with the people of programs focused on health and contributed to a more accountable and Mongolia. emergency food supplies. In addition, transparent judiciary by improving case USAID Director Chuck Howell & friends Friday, June 10, 2011 THE MONGOL MESSENGER 13

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All flights on the route Ulaanbator Moscow is codeshare flights *–operated by MIAT–Mongolian airlines Representation of Aeroflot , Ulaan- Before the flight, you can check the departure time on our Baatar, str.Seoul 15. Tel.976+11- website www.aeroflot.ru or by calling the airport reference 1980, 320720, Fax 323321 also on sites www airport.mn, www.miat.com e-mail: [email protected] Friday, June 10, 2011 mongol studies THE MONGOL MESSENGER 15 Mongolists join President for breakfast meeting The lawyer’s advice Hanns Seidel On June 2, President Ts. Elbegdorj is the first center of Mongolian Foundation invited Mongolists for breakfast studies in Europe. It may not only at the ‘Baltiiskaya Zvezda’ Hotel be the first one in Europe, but also In cooperation with Hanns in Saint Petersburg. Geologist- in the world. Yesterday, I visited the -Seidel-Foundation Project archaeologist A.A. Kovalev, the Hermitage, Museum of Anthropology Mongolia and its “Legal Roerich Family Museum director, and Ethnography and the Institute Education” Academy A.A. Bondarenko, Mongolian history for Oriental Manuscript Studies and oral literature researcher I.V. and was amazed what how much -I have a money claim on a Kulganek, Scientific leading worker Mongolian historical and cultural cooperative but I have heard and Chinggis Khaan and Mongolian heritages are kept in Saint Petersburg. that this cooperative is being history and culture researcher, T.D. A lot of people devote their life and liquidated. Where can I find Skryinnikova, scientific senior worker work to Mongolian studies. I think reliable information on the and Mongolian linguistics and Oirad that Mongolian studies are very liquidation of this cooperative? philosophy researcher N.S.Yahontova, interesting. Our ancestors were very -The National Tax Agency senior worker of Linguistics Institute famous people. Many people read and announces liquidation of legal and Mongolian language researcher are interested in Mongolian history. persons. So, you should approach P.O. Rykin, modern Mongolian At the period of democratic transition, the National Tax Agency and State literature researcher M.P. Petrov, this number could have decreased Registration Office. They will give Mongolian and Buddhism history a little; but now, it has revived. you answers to your questions on researcher V.I.Uspenski, Geser Epic Nations look back the wisdom of their the basis of the law’s provisions. researcher B.M Narmaev and other ancestors when they face troubles. -Can a father get leave to care Mongolists, and Foreign Minister G. For instance, Mongolians think how President and dedicated Mongolists meet for breakfast in Moscow about his child? Zandanshatar, the President’s advisors Chinggis Khaan could manage a big An employed mother or father L. Purevsuren and R. Bold, Hamba modern state. At the time, Chinggis to study. I talked with President on August 9-14 in Ulaanbaatar under with a child up to 3 years of age Lama of Gandantegchinlen Monastery Khaan invited wise people to develop can get leave if she/he needs to take of Mongolia D. Choijamts, Vice architecture, national scripts and D.A. Medvedev in detail, including the patronage of the Mongolian Mongolian historical and cultural President. I hope many people will care of her/his child. This can take President of Scientific Academy of culture. However, because some place even when the employee has Mongolia, P. Nyamdavaa and director people speak badly about Chinggis heritage. I requested him to sponsor attend the forum. It will ensure contact the cooperation of researchers and with new scholars and researchers.” taken her/his maternity and annual of Historical Institute of Mongolia, S. Khaan, it connects with today’s PR leaves before. A father with a child Chuluun were present at the breakfast- was not there in that period. scholars of two countries in this field At the end of the meeting, and he accepted. Now, researchers Mongolists I.V. Kulganek and up to 3 years can also get a leave if meeting. Russian scholars and researchers he wants to. The President said, “Thank you studied Chinggis Khaan from many need to work. I and our government V.L. Uspenski were awarded the hold a policy to support Mongolian ‘Friendship’ medal and two students When the period of child care for attendance. The scientific work and sides. For example, one of them was leave expires or prior to such studies you are doing is very close to Lev Gumilev. I believe that young studies and Mongolists abroad. A were presented with scholarships to forum of Mongolists will be organized study in Mongolia. expiration, if requested by the my heart. Saint Petersburg’s Institute researchers like him will find more employed mother or father, the employer must allow her/him to resume her/his previous job or position. If her/his work or position has been eliminated or staff has IFJ gravely concerned by Mongolian editor’s detention been reduced, the employer should assign her/him to another job or position. The International Federation -I saw that vocational school of Journalists (IFJ) is alarmed by tuition fees are included into the reports of the continuing detention AJA protests detention of prominent journalist list of tax exempt payments. May of Ulaanbaatar Times editor-in-chief the fee for driving school also be Chuluunbaatar Dolgor, who has been Since March 24, 2011, Dolgor expressed great concern over his June 2, the Asia Journalist Association included in this list? in custody since his arrest on March Chuluunbaatar, editor-in-chief of custody and issued statements raising delivered this letter of protest to all -Since the provision of the 24. theUlaanbaatar Times, and Vice- doubts about the connection between his those related to Dolgor Chuluunbaatar’s Paragraph 1.13, Article 9 of the Chuluunbaatar, 51, was arrested President of Asia Journalist Association, custody and political interests. illegal custody including Mongolian Personal Income Tax Law does on charges of “illegal privatization and has been in custody, charged with After investigating the actual President, Tsakhiagiin Elbegdorj, Prime not apply to driving school fees, serious damage of public property” unclear reasons of illegal privatization situation in Mongolia between Mongolian Minister, Sükhbaataryn Batbold, and this kind of fee is not exempt from for his alleged involvement in the of a newspaper by the Mongolian Journalists and the Government, the Asia Minister of Justice and Home Affairs, taxation. privatization of the newspaper and its government. Journalist Association confirmed that this Nyamdorj Tsend, through the Embassy -Which documents must be offices in Ulaanbaatar in 2008. Reporters from ‘Without Borders’ was obviously an illegal act and therefore of Mongolia in the Republic of Korea. presented for receiving child At the time, Chuluunbaatar and ‘Globe International’ have already issued a formal statement. On Thursday headed the newspaper’s management money? privatization team that was involved - To receive your child in the privatization process being money, you should prepare conducted by the Capital City AJA releases statement on detention of AJA Vice President the following documents: Privatization Commission. He was - A certified copy by a notary appointed editor-in-chief in 2008 at a Singapore, May 31 2011 – The Asia as his prolonged detention without trial urgent medical treatment. of the identity card of the time when the newspaper was in dire Journalist Association (“AJA”) with its violates his rights as a citizen. AJA decries the implicit attempt father (mother, guardian or financial trouble and its offices had members across Asia are protesting the AJA criticizes the state investigators by authorities to intimidate journalists supporter) or a document been partly destroyed. detention of Mr. Dolgor Chuluunbaatar, who used psychological pressure to try in its continued detention of Mr. equally considered; In 2008, Mongolian media reported a prominent Mongolian journalist, Vice- to make him incriminate people who the Chuluunbaatar, who has earned his spur - A certificate by the that the building had been privatised President of AJA, and former General authorities said were behind him in the as a fighter for freedom of expression Governor of the soum by former President Enkhbayar Secretary of the Confederation of privatization saga. According to lawyers, and human rights. or khoroo certifying the Nambar. Enkhbayar was later Mongolian Journalists, by the Mongolian this action is illegal and violates the AJA stands shoulder to shoulder residence in that soum or defeated in Mongolia’s May 24, 2009 government. Constitution and the Criminal Procedure with the Confederation of Mongolian khoroo; presidential election. The Ulaanbaatar Mr. Chuluunbaatar has been in Act of Mongolia. Journalists in demanding that the - If you are appointed a Times offices had formerly housed custody over the privatization of a Mr. Chuluunbaatar has refused to authorities respect the freedom of the guardian or supporter of the Mongolian Government’s printing newspaper and related issues since do their bidding and insisted that he is Press and the human rights of citizens. the child in accordance to facility. March 24, 2011. He has been denied innocent of the charges. AJA will stand by our Vice-President Article 66.1 of the Family Chuluunbaatar, who is also the right to an open court trial after his AJA expresses its grave concern and provide him with both moral and Law, a certificate from Secretary General of the IFJ affiliate indictment on April 7, 2011. He has also over the series of situations that put Mr. legal support to contest the charges the Governor of soum or the Confederation of Mongolian been denied bail sought by his lawyers. Chuluunbaatar’s life in danger, as he is against him in court and eventually see district. Journalists, faces up to 15 years in AJA seeks his immediate release in poor health and in need of outside that justice is done -Where should a female prison if found guilty. The journalist convict serve her sentence? denies any wrongdoing in the case Are there any circumstances and claims to have been asked by mitigating her responsibility? investigators on several occasions to problems requiring urgent treatment serious concerns for his health” said For further information contact Female convicts serve their reveal “who is behind” his actions. by Shagdarsuren private hospital on Jacqueline Park, IFJ Asia-Pacific IFJ Asia-Pacific at +61 2 9333 0919, sentences in women’s prisons only. On April 27, medical staff at April 2. The journalist has been denied Director. We call for his immediate or +61 2 9333. The IFJ represents Pregnant or minor female convicts Detention Centre No. 461, where bail on nine separate occasions. release from detention and full more than 600,000 journalists in 131 are confined separately. The convicts Chuluunbaatar is detained, confirmed “The IFJ is alarmed by the refusal transparency in the case being brought countries. Find the IFJ on Twitter: @ may see their families once a month to grant Chuluunbaatar bail despite against him.” ifjasiapacific for a short time and less than eight the prognosis that he has serious health times a year for long periods. But, if the convicts serve their sentences in correctional facilities of strict Foreign press on Mongolia regiment, they may have a short meeting once a month and a long Courtesy of Asia Journalist Association meeting once every two months, and receive a parcel once a month. If a female convict gives birth to a The Asia Journalist Association Mongolian Ambassador to Korea taking an interest in the matters of a their claims have also been rejected. child when serving her sentence, (AJA) delivered a protest letter to the Gerel Dorgipalam. The letter is to be Mongolian citizen and promised to The Confederation of Mongolian she is allowed to be with her child Mongolian Embassy in Seoul seeking delivered to the Mongolian president deliver the letter to the Mongolian Journalists contends that the charges up to one year. an immediate release of its Vice and prime minister. president. against Chuluunbaatar are politically President Dolgor Chuluunbaatar. “We have asked 10 Mongolian Chuluunbaatar has pleaded not motivated. Organizations such as Chuluunbaatar, an editor-in-chief of reporters about Chuluunbaatar’s guilty to the charges lodged against Reporters Without Borders and Ulaanbaatar Times, has been accused whereabouts and have confirmed that him on April 7 but has not yet received Globe International have also made of illegally privatizing and damaging he is being illegally incarcerated. We an open and fair court hearing. similar claims through a statement. public property and has been in hope that our message is delivered His defense counsels have asked Dolgor Chuluunbaatar has government custody in Mongolia to the Mongolian president and continuously for Chuluunbaatar’s worked as a reporter in Mongolia for since March 24. those concerned,” said Lee Sang- bail but none of their requests have the past 25 years Address : Sukhbaatar District, Representatives of AJA’s ki, the founding president of AJA, been accepted. Doctors have also Khoroo 6, Sukhbaatar Street Korean bureau paid a visit to the Thursday. asked for his release claiming that Source- The Korea Times,03June 11-2, Mongolian Embassy on Thursday, The Mongolian ambassador Chuluunbaatar is in poor health and By Yun Suh-young Office of the Legal Education thanked the visiting party for needs urgent medical treatment but Academy (inside the court of the delivering the complaint letter to the Children’s Art Center, in the right side) Tel : 321294 www. mongolei.de 16 THE MONGOL MESSENGER art & culture Friday, June 10, 2011 Gala events planned for ‘Night of Ballet’ From June 19 to 25, the first-ever classic art and culture to the world and festival ‘Night of Ballet’ will be co- introduce classic cultural development organized in Ulaanbaatar from the to Mongolians, the festival’s general l On June 6, the International ‘Development of Mongolia’s ballet’ sponsor is ‘Altjin’ Company with Judo Federation (IJF) announced fund, Opera and Ballet Theatre, the Ulaanbaatar City Government, the updated official ratings of the ‘Boston Ballet’ Theatre of the USA Ministry of Education, Culture and world’s top judoists after results of and under the auspices of Mongolia’s Sciences, Opera and Ballet Theatre, President and under directorship of Togoldor Foundation and others as the biggest international tournament Mongolia’s Honored ballet dancer, co-organizers. such as World Cup, Grand Prix and D. Altankhuyag and the US ‘Boston On June 8, President Ts. Elbegdorj Grand Slam competitions. Ballet’ Theatre’s choreographer received Mongolia’s honored ballet According to the new ratings, 13 Roland Petit. On June 19, the best dancer D. Altankhuyag. At the meeting, Mongolian judoists have been listed skilled ballet dancers of the world dancer D. Altankhuyag introduced in the top twenty that may compete including those from Mongolia, the the President to preparations for the in the Olympic Games. USA, Canada, Japan, Cuba, Columbia, ‘Night of Ballet’ festival. State Honored Sportsman and Great Britain, Argentina, Spain and The President in turn, congratulated World champion Kh.Tsagaanbaatar South Africa will dance together in D. Altankhuyag on inviting famous the opera ‘Swan Lake’ within frames dancers of many countries to visit is still leading the rating of men’s of the festival. At a June 24-25 gala Mongolia and organizing this grand 66 kg category with 1,478 points, performance, these skilled ballet event which will make a valuable followed by Alim Gadanov of dancers are expected to participate. contribution to Mongolia’s classic art Ballet organizers meet with the President Russia (1,340 points) and Junpei Aimed at introducing Mongolia’s and culture, and wished him success. Morishita of Japan (1,280 points). State Honored Sportswoman M.Bundmaa has been rated third Foreign press on Mongolia with 1,292 points in the women’s 52 kg category thanks to winning gold A Bastion of Classical Repertory on the Asian Steppe at two Grand Slam competitions ULAN BATOR, MONGOLIA operas alike, often performing from held in Paris and Moscow. She — The Mongolian State Academic hand-copied scores. Many performers follows Yuuka Nishida (1,830 Theater of Opera and Ballet is a are Soviet-trained and Ms. Sergelen, points) and Misato Nakamura pillared, pink, neoclassical building the director, is eager to maintain (1,660 points). that stands catty-corner to Parliament, her theater as a bastion of classical Olympic champion and with its massive statue of Genghis repertory and style out on the steppe. State Honored Sportsman Khan, and opposite the stock market. “I want to save the tradition,” N.Tuvshinbayar (men’s -100 kg) Its prime location in the political she said. “We keep the old style. and economic heart of this capital Many people ask me why aren’t was ranked 15th with 580 points. indicates the unique status occupied you more modern? I think there l From June 8-11, Peter Ammon, by Western classical music in a long- are two styles: One theater saves State Secretary of the Federal nomadic nation better known for everything, one changes everything. Foreign Office of Germany is paying traditional music forms like hoomii My management is saving.” This a working visit to Mongolia. overtone singing and the horse-head conservative approach means that the Mr. Ammon has meeting scheduled fiddle. State Academic Theater has produced with N.Altankhuyag, First Deputy “Mongolia was a satellite and the same “Carmen” for 30 years. Premier; L.Bold, Defense Minister the mission of a satellite country was “Many people come to see my to develop the classical arts,” said ‘Carmen’ from France and they cry. and general coordinator for the B. Sergelen, the dynamic, Soviet- It’s nostalgic,” Ms. Sergelen said. Mongolia-Germany relations; trained ballerina who is director of When she produced a short version ‘Aida’ opera D.Zorigt, Minister of Mineral the State Academic Theater. “It was for children, she added, “my people Resources and Energy; and some symbolic.” (Mongolians do not really were very unhappy.” ‘Attila’ the opera,” said the composer, the arts here more thoroughly. parliamentarians. use surnames, and their patronymics While the core repertory is A. Batdelger, referring to Verdi’s “Classical arts have to have On June 9, Mr. Ammon delivered are usually abbreviated to an initial.) Western, the theater also promotes the work. Mr. Batdelger was a dancer support,” said Yondon Otgonbayar, a report themed “Role of mineral From the 1950s on, hundreds of creation of original Mongolian works at the Kirov Ballet School before the minister for education, culture security within the foreign policy Mongolians went to the U.S.S.R. and keeps close ties with Mongolian turning to writing ballets. “Attila was and science. “But when you are being on economics of the Federal to train as musicians, composers, composers. not just a violent person who liked supported, you become a domestic singers, dancers and musicologists. The first Mongolian opera, “Three blood. According to historic fact, he animal.” government” in the Ministry of And musicians from the Soviet Union Dramatic Characters,” remains one of was very smart, very intellectual, very To help with expenses and to pay Foreign Affairs. In addition, he moved to Mongolia to help establish the most popular and is performed polite. I want to show this side.” the theater’s 265 employees — some is to get au fait with activities conservatories and theaters. several times a year, often opening The ballet is set in 453, the of whom live in urban yurts, cooking of the organizations cooperation While the Soviet Union was and closing the season. The opera’s last year of Attila’s life, during the over open fires and finding water with Germany and will meet with instrumental in spreading classical libretto was written by Ts. Natsagdorj invasion of Italy. Attila died in bed on where they can because they can’t cultural specialists of Germany. music to other Communist Asian (1906-1937), often called the father his wedding night, with one account afford apartments — Ms. Sergelen During a meeting to be held with nations — like China and North of Mongolian literature, and the saying he choked on blood from a is seeking support from commercial alumni of German universities, Mr. Korea — it was obliged to start from music was written by one of the nosebleed and another that his captive enterprises and foreign embassies. square one in Mongolia. nation’s first classical composers, B. wife murdered him in revenge. “He is She has also made exchange Ammon will present certificates “In the 1950s, we hardly had Damdinsuren (1919-92). It is a story fighting against death,” Mr. Batdelger agreements with the Verdi of scholarships to four students to a single person who knew about of thwarted love cloaked in socialist said. “It isn’t clear who wins the Conservatory and La Scala Academy study in Germany. Mozart,” said Natsag Jantsannorov, values featuring Mongolian wrestling battle: Attila or death.” in Milan, and young dancers are again l Twenty Mongolia’s State a composer who was trained in Kiev and long songs. Adding a new ballet and opera being sent to train in Russia. University (MSU) students and now runs the Arts Council of The opera “Chinggis Khaan” by each year is a major financial To develop new audiences, the have received scholarships from Mongolia. “Maybe there were two or B. Sharav explores the great Mongol challenge for a theater that runs on a theater conducts outreach activities Taiwan’s government, for USD500 three. Communism spread classical leader’s early years and is performed budget minimal by the standards of in city schools and country towns each. The money is given every music. Our success today is directly each season, as is Kh. Bilegjargal’s world opera houses and in a nation and stages youth-oriented concerts, year by the Taiwan government connected to the Soviet Union.” “Tears of a Lama.” Mr. Jantsannorov with only three million people, about like a “pop opera” night of famous That success is perhaps best is at work on an opera about a third of whom live in the capital. arias and flashy effects. Mongolia’s since 2001 through its Mongolia- measured by the vitality of the State Zanabazar, the revered 17th-century Costumes and sets are designed mining-fueled economy has begun to Tibet committee. Academic Theater, which performs artist and “god king,” which he hopes and made in house with materials boom, leading to increased interest in At the ceremony on June 6, were 14 operas and 14 ballets a year, with will promote Buddhist music in opera purchased in China. In early April, and support of the arts at home and some members of Mongolia’s multiple performances given to full as a counterbalance to the pervasive four women were sewing bejeweled from abroad. government, MPs, students and houses every weekend from October influence of Christian traditions. gowns for the premiere of Verdi’s The support may help Ms. representatives of Taiwan. Overall, to July. Operas range from Rossini National themes also make up “Aida” while a team of men painted Sergelen realize her ultimate dream 600 Mongolian students have been and Mozart to Puccini and Verdi, a significant portion of the State backdrops and built papier-mâché of doubling the salary of everyone received scholarships. and the ballet repertory encompasses Academic Theater ballet repertory, pyramids. (The pyramids were then in the theater, from janitors to divas. l major Russian and French works, among them “Three Hills of covered with fiberglass so they can “They love music and I love this Mongolia’s Federation of among others. Misfortune” by J. Mend-Amar and withstand the heat if, as currently theater,” she said. “Mongolia is now Free-Style Wrestling announced The theater maintains a full chorus, “The Skilled Khas” by J. Chuluun. planned, “Aida” is staged in the popular, not only geographically, the names of wrestlers who will solo singers and dancers, a corps The theater is preparing the premiere Gobi Desert in the summer of 2012.) but economically. I have to use this compete in the Wrestling Asian de ballet, designers, directors and of a ballet about Attila the Hun that Most of the theater’s budget comes chance.” Youth Championships on June 9-12 craftsmen, and a single hardworking has a distinctly Mongolian spin. from the government, but there is a Source- By SHEILA MELVIN, in Jakarta, Indonesia. orchestra that plays at ballets and “It is a little bit different than movement to create a way to finance New York Times, June 7, 2011 The events will run in weight categories of men’s 50, 55, 60, 66, 74, 84, 96, 120 kg, and women’s 44, 48, 51, 55, 59, 63, 67 and 72 kg. The Mongolian team comprises Thurs 16 9am-6pm Sky Ballad exhib (ZFAM) B.Maidar (men’s 50 kg), B.Naran What’s on June 10-17 10am-6.30pm Oilan exhibition (TDMA) (55 kg), T.Tuvshintulga (60 kg), G.Iderkhuu (66 kg), B.Nomindalai Fri 17 9am-6pm Sky Ballad exhib (ZFAM) OBT=Opera/Ballet Theatre; TDMA=Tsagaan 5pm Ballet evening (OBT) 10am-6.30pm Oilan exhibition (TDMA) (74 kg), Ch.Iderbayar (84 kg), Darium Museum/Art Gallery; ZFAM=Zanabazar T.Tseebileg (women’s 44 kg), Fine Art Museum; UMA=Union of Mongolian Mon 13 9am-6pm Sky Ballad exhib (ZFAM) Tengis Movie Theater Ts.Tsendjav (48 kg), E.Davaachimeg Artists; XAG=Xanadu Art Gallery 9am-6pm Composition exhib (ZFAM) Thor; Kung Fu Panda-2; Pirates of the (51 kg), B.Nomin-Erdene (55 kg), 11am-10pm Night Moon exhib (XAG) Caribbean-4; Hangover-2 B.Battsetseg (59 kg), E.Otgon- Fri 10 9am-6pm Sky Ballad exhib (ZFAM) 4pm 1st Roaring Hooves concert (Nat Museum Erdene (63 kg), O.Oyuntuya (67 10am-7pm My Motherland exhib (UMA) steps) Live Music

kg) and E.Dorjdulam (72 kg). They City Nomads (7.30pm): nightly Altain Orgil Sat 11 9am-6pm Sky Ballad exhib (ZFAM) Tues 14 9am-6pm Composition exhib (ZFAM) Detroit Bar (9pm): Wed One Way; Fri UFO are coached by Ts.Bayarsaikhan 9am-6pm Composition exhib (ZFAM) 9am-6pm Sky Ballad exhib (ZFAM) and O.Purevbaatar. International Grand Khan (9pm): Mon Ganga; Tues Lemons; Noon-7pm Night Moon exhib (XAG) Wed Khulan; Thurs One Way; Fri-Sat Beer judge Kh.Ganbold will work on the 5pm D. Luvsansharav concert (OBT) Wed 15 9am-6pm Composition exhib (ZFAM) Ikh Mongol (9.30pm): Tues L-Guards; Wed Fire; board of judges. 9am-6pm Sky Ballad exhib (ZFAM) Thurs Altan Urag; ri Fire; Sat X-Vit; Sun Altan Urag Sun 12 9am-6pm Sky Ballad exhib (ZFAM) 10am-6.30pm Oilan exhibition (TDMA) Strings (1045pm): nightly Ka-24 Giselle ballet 9am-6pm Composition exhib (ZFAM)

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