AmCham Daily Newswire

Parliament to discuss budget amendments

Summary: Parliament held an irregular session on Friday to discuss amendments to the 2017-2018 Law on Fiscal Frameworkand the 2016 Budget. During the session, several Members of Parliament, including Ts. Davaasuren,. Damba-Ochir, and L.Bold, asked the Minister of Finance B. Choijilsuren about proposed increases in property taxes, income taxes, and gold royalties. B. Choijilsuren stated that the Government aims to tax luxury goods only and the proposed taxes do just that. Also, according to his calculation, the budget deficit could reach 2% by 2024 if these tax increases are approved. The proposed tax increase will only affect 14,000 people and not the broad base of the population and would improve the budget balance by an estimated 500 billion MNT. Member of Parliament D. Erdenebat from the DP stated that he objects the proposed tax increases and MP B. Choijilsuren claimed that to restore the economy, there is no alternative.

Keywords: government stability Daily News /page 1, 2/

Requested development loans from the World Bank

Summary: During a meeting between Prime Minister J. Erdenebat and the Executive Director of World Bank Heenam Choi, the PM expressed his desire for a development loan from the World Bank to help to overcome economic difficulties, restore balance of payment and to cover the current budget deficit. He stated that even though there are many implementable projects in Mongolia, few fulfill the feasibility study requirements of investors and financial institutions. Therefore, he asked for assistance in developing processes that meet the requirements of investors. Heenam Choi will present the PM’s request to the World Bank’s Board of Directors.

Keywords: loan, World Bank The Official Gazette page/2/

Baganuur’s mine will extract 10 million tons of coal each year

Summary: Baganuur JSC, which supplies 70% of Mongolia’s coal consumption, has released their work plan for the next 50 years. The plan was drafted to comply with the international standards for feasibility studies. Based on the company’s current stock of coal, which is 812 million tons, they will be able to meet 60% of Mongolia’s coal consumption for the next 60 years if they extract 10 million tons of coal each year, Baganuur JSC is planning to raise 160 million USD from the international market throughout 2016-2020 to increase the extraction of coal from 3.8 million tons to 10 million tons.

Keywords: coal The National Post page/ 1,8/

Kincora Copper reports 543,000 Canadian dollars in losses

Summary: Listed on the Toronto Stock Exchange, Kincora Copper experienced 60% more losses compared to last year, totaling 543,000 Canadian dollars. According to last year’s 2^nd quarter report, their loss has increased by 70%. Kincora Copper’s main project is Hurel-Uneg and has several copper exploration sites throughout the Umnugovi Province. High Power Exploration and Kincora Copper have agreed to partner and merge subsidiaries. The partnership enables the two companies to have 9 special exploration licenses.

Keywords: mining, loss The Official Gazette page/11/

Free-trade zone established in Erlian

Summary: During the trilateral economic meeting in Erlian, China, an opening ceremony was held to commemorate the establishment of a free-trade zone with Mongolia. Any purchase above 8,000 RMB and any transportation vehicles entering the area are exempt from being taxed. Mongolian companies trading in the area will not have to pay their lease payment for the first month and currently, Vitafit Group, Unisol and Khatan Suikh LLC have presented their products. Head of the free-trade Zone Ch.Hashuu stated that around 400 Mongolian enterprises will commence trade in the free-trade zone.

Keywords: China, trade www.ikon.mn