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AmCham Mongolia Daily Newswire

March 22, 2019

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EMC and Mongolrostsvetmet become state-owned entities
On Thursday, Cabinet announced that Erdenet Mining Corporation (EMC) LLC is now officially a state-owned entity and that its government rules were approved. The factory will finance its operations through its profits. Cabinet also put Mongolrostsvetmet under state ownership and approved its rules. With EMC becoming state-owned, the government is expected to dismiss Kh. Badamsuren, the current director of EMC, due to the debate surrounding the ownership of 49 percent of the company.

The National Post /page 2/
The BoM keeps the monetary policy rate at 11 percent
The Bank of Mongolia (BoM) has decided to keep the monetary policy rate at 11 percent, based on external market factors, trends, and business activities, and will be setting the debt to income ratio for consumer loans at 60 percent starting on April 1. The BoM could raise the interest rate if there are rapid demand and expansion in the market. Currently, the economy has been growing, and the inflation rate has been stable, which impacted the central bank's decision to maintain its current rate.

The Century News /page 5/
Erdenes Tavan Tolgoi prepares to announce its dividend yields
Erdenes Tavan Tolgoi’s is scheduled to announce dividend yields during its April shareholders meeting, and to finalize its 2019 budget. Legally, the company should have already announced its dividend yields, but Erdenes Tavan Tolgoi (ETT) delayed the announcement. The ETT Shareholders Protection Association reported that the company’s 2019 budget had additional expenses, so its dividend yield might be lower than expected. The association asked the company to budget efficiently and said that the company has the potential to increase its net profit by 1 trillion MNT if it cuts its expenditure, which could result in a potential increase to the dividend yield of 400,000 MNT.
The Official Gazette /page 11/
Petro Matad plans to drill at the XX oil block in 2019
Petro Matad, listed on the London Stock Exchange (LSE), plans to start drilling at three oil wells in Block XX in the second quarter of this year. The company raised 35 million USD in funding for exploration at six boreholes from 2018 to 2019. "Currently, one of the two drilling projects might have oil and natural gas," Petro Matad said. The company plans to carry out four drill hole projects in 2019. The company's shares rose by 7.1 percent on the LSE.
REWIND: Week of March 18, 2019
March 18
March 19
  • MPP caucus supports the continuation of the gold royalty program. The Mongolian People’s Party (MPP) Caucus voted in support of proposed tax reform packages and amendments to the Law on Minerals, including keeping the gold royalty payment at 2.5 percent. 
  • Xanadu Mines reports on its Kharmagtai project. As stated in the company's 2018 financial report, Kharmagtai has reserves of 1.9 million tons of copper and 4.3 million ounces of gold, and the company currently has 1,181 shareholders who own 648,000 shares.
  • Minimum monthly wage in the mining sector to reach 640,000 MNT. The agreement set the minimum wage at 640,000 MNT per month, up from 384,000 MNT; outlined a compensation plan for workers who are in trade unions, and offering incentives equal to up to six months salary to trade union workers.
  • MMC’s bond rate reaches 1 USD. Mongolian Mining Corporation (MMC), registered on the Hong Kong Stock Exchange, saw its bond rate reach 100 cents (1 USD), up by 5.8 cents, its sharpest recent increase. The MMC bond totals 412 million USD and expires in 2022.
March 20 
March 21
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