Dec 26, 2024 69 min read Daily News Summaries

Mongolia News Summary for December 26, 2024

The following news articles are the opinions of their authors and publications. They are presented here as translations for informational purposes and do not necessarily represent the opinion of MongolBeat or its members.

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Politics

Government Presents Strategically Important Projects Included in 14 Mega Projects to the Parliament

Published: 2024-12-25 | Translated from: montsame.mn

Prime Minister L. Oyun-Erdene presented to the Speaker of the Parliament, D. Amarbayasgalan, the draft resolution on "Approving the Guideline for Concluding the Agreement on Implementing the Cross-border Railway Construction at Gashuunsukhait-Gantsmod Port between the Government of Mongolia and the Government of the People's Republic of China," and the draft resolution on replacing the State's share in strategic mineral deposits. These two projects are part of the 14 mega projects included in the Government of Mongolia's “Program for the 2024-2028 Period” approved by the Parliament's 2024 resolution number 21. During the official visit of the President of Mongolia to the French Republic, both sides signed the protocol of negotiations of the Working Group on drafting an Investment Agreement between the Government of Mongolia and Orano Mining SAS. It is believed that upon the approval of the resolution's draft, investment agreements for the exploitation of the Zuunbayan-Ovoo and Ulaan-Uul uranium deposits outlined in the “Program for the 2024-2028 Period” will be established, creating the opportunity for joint Mongolia-France uranium projects. The construction of the cross-border railway at Gashuunsukhait-Gantsmod Port by the Governments of Mongolia and the People's Republic of China is expected to enhance trade, economic, regional cooperation, and mutual interests in the mineral, industrial, and infrastructure sectors between Mongolia and China. This will pave the way for connecting the Shivee Khuren-Sehe, Khangi-Mandal, and Bichigt-Zuun Khatavch ports by rail, increasing the port's throughput capacity by 80 million tons from 2030, which is of strategic significance, according to information from the Government of Mongolia and the Office of the Cabinet Secretary.

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Submission of the Bill to Amend the Law on National Wealth Fund

Published: 2024-12-25 | Translated from: montsame.mn

Today, Prime Minister L. Oyun-Erdene submitted to Speaker of the Parliament D. Amarbaysgalan the bill to amend the Law on the National Wealth Fund and the draft resolution of the Parliament on substituting the state’s share and percentage of mines of strategic importance. The bill to amend the Law on the National Wealth Fund includes legal regulations to allocate revenue to the Accumulation Fund of the National Wealth Fund. This includes substituting the state share and percentage of a legal entity holding strategic mining deposits specified in the Nuclear Energy Law with special fees for the use of mineral resources, product-sharing, changing the type of state-owned shares, and other options. Additionally, regulations have been added to allocate the special fees for the use of mineral resources specified in Article 47.1 of the Mining Law and the increased fees for the use of mineral resources specified in Article 201.4 of the Nuclear Energy Law to the Accumulation Fund. Once the bill is passed, the revenue generated from substituting the state’s share and percentage of mines of strategic importance with special fees for the use of mineral resources and increased fees for radioactive mineral resources, as well as other options, can be realistically increased. This will provide a source to support citizens in health, education, and housing purposes by directing it to the Accumulation Fund instead of the Future Heritage Fund. Prime Minister L. Oyun-Erdene emphasized that this will create conditions to ensure the fundamental principle of fairness and equality for citizens in the allocation of revenue generated from natural resources through the Accumulation Fund, in accordance with the Constitution of Mongolia. The Parliamentary draft resolution on substituting the state’s share and percentage of mines of strategic importance specifies converting and substituting a 34% state shareholding held by "Badrakh Energy" LLC, which possesses special permits for radioactive mineral resources in the "Dulaan-Uul," "Zoovch-Ovoo," and "Omnot" sites within the territory of Ulaanbadrakh soum, Dornogovi province, with special fees for the use of mineral resources and a 10% state share preferential shareholding right. This information was presented by the law initiator, according to the Parliament’s Press Office.

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Foreign Worker Legislation and Mega Projects in Mongolia

Published: 2024-12-25 | Translated from: isee.mn

Under the framework of L. Enkh-Amgalan's law, while the government is moving forward with its 14 mega projects, the "China Energy" company is set to bring its workers to extract our Bortolgoi and Onchkharaat deposits. The State Great Khural members P. Sainzorig, N. Batsumberel, and three more members introduced a bill titled "Regarding the non-establishment of the number and percentage of foreign workers employed in Mongolia, and the exemption from foreign worker job fees." However, this was resisted both inside and outside the State Palace and was eventually withdrawn. Meanwhile, Minister of Labor and Social Protection L. Enkh-Amgalan submitted an identical amendment called "Law on Labor Mobility" to the parliament. The primary content of the bill submitted by P. Sainzorig and others, which was withdrawn, stated that "from December 31, 2026, no number or percentage of foreign workers working in Mongolia in sectors other than mining and oil extraction shall be established, and employers shall be exempt from foreign worker job fees during this period, thereby addressing labor shortages by supporting the private sector." However, the bill introduced by Minister L. Enkh-Amgalan and the government explains that "organizations operating in sectors other than mining and oil shall receive exemptions from job fees paid to the labor employment fund, providing cost savings, addressing labor shortages in the short term, enhancing business and economic efficiency, and accelerating strategic infrastructure and industrial developments," emphasizing the importance of implementing developmental projects. It became clear that Sainzorig planned to deflect attention and share liability with the government by reintroducing a similar bill. However, both sides aim to bring in the necessary workforce from abroad for the major constructions starting next spring. SKILLED FOREIGN WORKERS TO COMPLETE GASHUUNSUHAIT-GANZMOD BORDER RAILWAY CONNECTION, URANIUM PROJECT, AND ERDENEBUREN HYDRO POWER PLANT CONSTRUCTION The government has included 14 mega projects in its program for implementation. This includes the stalled Gashuunsukhait-Ganzmod border railway connection that has been delayed for 16 years, Erdeneburen Hydro Power Plant, the uranium project in cooperation with France's Orano Mining Group, a highway under Bogd Mountain, and the Songino Khairkhan and Bayanzurkh Districts highway along the Tuul River, among others. Furthermore, residential districts under Bayankhoshuu and Selbe sub-centers in Sukhbaatar and Songino Khairkhan districts will reportedly be constructed by the Chinese. The government will implement most of these projects in cooperation with China's government, with the country bringing in its skilled workers according to agreements. The "China Energy" company plans to work in our Bortolgoi, Onchkharaat deposits for 16 years. If we do not agree, they threatened not to construct the border railway connection. For a specific project example, the railway connection at the Gashuunsukhait-Ganzmod crossing will be built by China's "China Energy" company. Before and after finalizing the loan agreement for this project, our Minister of Industry and Mineral Resources, Ts. Tuvaan, received letters from the company indicating intentions to mine the two deposits of Tavantolgoi for 16 years. They stated they wouldn’t demand compensation for lost opportunities if allowed to proceed, implying our acceptance to avoid impingements in railway connection. Regarding this project alone, "China Energy" will bring its workers and equipment, extracting 27 million tons of coal per year for the first five years and 20 million tons per year for the next eleven years. Their workers might also be employed in the Tavantolgoi enrichment plant. Additionally, the agreement might lead to selling coal at a 30% reduced price, risking $10 billion in losses, while we may secure $2-3 billion in loans. For these reasons, the law introduced by L. Enkh-Amgalan suggests not charging work fees in sectors outside mining and oil. Moreover, the "Erdenes Bayanbogd" deposit owned by the city might be handed to a Chinese company by H. Nyambaatar under an offtake contract, securing $6-7 billion in loans. Ultimately, they intend to stimulate development by extracting their coal. Prime Minister L. Oyun-Erdene announced last week during a briefing, "The issue of the railway border connection's 16-year stall will be openly discussed in the State Great Khural. The delay reasons, obstructers, and lost opportunities will be presented openly." The government plans to complete the inter-governmental agreement on the Gashuunsukhait-Ganzmod border post, agreements with Orano Mining from France, and other activities by the end of the year.

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SG: The strategically significant Gashuunsukhait-Gantsmod port railway, Mongolia-France joint uranium project to be tabled in Parliament

Published: 2024-12-25 | Translated from: isee.mn

A significant portion of the benefits from the Mongolia-France joint uranium project, one of the 14 mega projects featured in the "Program of the Government of Mongolia's Activities for 2024-2028" approved by the 21st resolution of the State Great Khural of 2024, is being explored to reap advantages for Mongolia. Discussions are underway on substituting the state's equity percentage in the license-holding company with a 10 percent preferential state ownership share, as well as a special fee for the use of mineral resources, to draft a resolution to be submitted to the State Great Khural. During the official visit of the President of Mongolia to the French Republic, the parties signed the protocol of the Working Group negotiation to draft an Investment Agreement between the Government of Mongolia and Orano Mining. Upon the adoption of the resolution, it is envisaged that the investment agreement for utilizing the Uul-Zuuvch and Zavts-Ovoo uranium deposits, stipulated in the "Program of the Government of Mongolia's Activities for 2024-2028," will be established, thus enabling the implementation of the Mongolia-France joint uranium project.

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Ts. Baatarkhuu: The Democratic Party Discusses Advancing Uranium and Railway Connection Projects

Published: 2024-12-25 | Translated from: isee.mn

Today, the parliamentary groups are holding an extraordinary meeting. We asked Member of Parliament Ts. Baatarkhuu about whether the Democratic Party's group supports the uranium and railway connection projects. He stated, "The Democratic Party's group is discussing advancing the uranium and railway connection projects. We see this as a channel to increase exports and attract investment into Mongolia, so we support it. The group is about to vote on it now. The reason why a coalition government was formed was to implement these projects that could be economically beneficial for Mongolia. Therefore, during the coalition government's period, the group's meeting is aimed at breaking the deadlock on major projects that have been stalled for 20-24 years in Mongolia." He also mentioned that private sector and professional associations should discuss concepts related to the labor market themselves. "It is wrong for politicians or the party alliance groups to discuss it. It divides and separates the people of Mongolia. Therefore, business owners should determine whether such a law is needed on the labor market," he concluded.

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Introducing the Decisions Made in the Government Meeting

Published: 2024-12-25 | Translated from: ikon.mn

The decisions made in the regular government meeting are being introduced. Today's meeting discussed: - The progress of negotiations for the investment agreement with "Orano Mining" company, the investor of the Mongolian-French joint venture "Badrakh Energy" LLC. - The progress of the Gashuunsukhait-Gantsmod cross-border railway project. - The draft resolution of the State Great Khural on determining the state's ownership percentage and share in strategic mineral deposits. - The draft government resolution on declaring 2025 as the year to support the development of the capital city. - The draft resolution of the State Great Khural related to the construction of the Gashuunsukhait-Gantsmod cross-border railway. In total, 42 issues were discussed and reviewed. Warning: Media organizations (Television, Radio, Social, and Web pages) must mention the source (ikon.mn) when using our information in any form, completely or partially.

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MPP Supports Discussion on Railroad Agreement and Contract with Orano Mining

Published: 2024-12-25 | Translated from: ikon.mn

The Mongolian People's Party (MPP) caucus's extraordinary meeting today supported the discussion on the investment agreement project to be formed with "Orano Mining," the investor in the Mongolia-France joint venture "Badrakh Energy" LLC, and other issues, including a draft resolution of the State Great Khural (SGK) on approving the guidelines for establishing an agreement to implement the cross-border railroad construction at the Gashuunsukhait-Gantsmod border point between the Government of Mongolia and the Government of the People's Republic of China. The meeting decided to support the investment agreement project to be established with "Orano Mining," the investor in the Mongolia-France joint venture "Badrakh Energy" LLC. Regarding the draft resolution of the SGK on approving the guidelines for establishing an agreement to implement the cross-border railroad construction at the Gashuunsukhait-Gantsmod border point between the Government of Mongolia and the Government of the People's Republic of China: - It is considered appropriate to include proposals to increase the involvement of Mongolian business entities at all stages of construction and extraction, - Ensure equal rights for both sides in railroad freight traffic, - Allow other Mongolian companies to transport their cargo. These proposals were endorsed by the majority of the members who participated in the group meeting. Thus, the project was supported for discussion within the framework of the concept and at the Standing Committee meetings. Warning Media outlets (TV, Radio, Social, and Web pages) are reminded that if they use our information in any form, fully or partially, they must mention their source (ikon.mn).

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The MPP and DP groups in the State Great Khural hold an extraordinary meeting to discuss the agreement with Orano and the cross-border railway issue

Published: 2024-12-25 | Translated from: isee.mn

Today, the regular meeting of the government was held to discuss 42 issues, including the draft Investment Agreement with Orano Mining Company, the investor of Mongolian-French joint “Badrakh Energy” LLC, and the cross-border connection railway project between Gashuunsukhait and Gantsmod. Meanwhile, at the State Palace, the Mongolian People's Party (MPP) and the Democratic Party (DP) groups in the State Great Khural are holding an extraordinary meeting to discuss the agreement Mongolia will establish with the French company Orano and the cross-border railway at Gashuunsukhait-Gantsmod. They are in the process of aligning their views. Additionally, the Chief of Cabinet Secretariat, N. Uchral, is participating in the DP group's meeting and is providing information and a presentation.

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Economy

N.Uchral: When the uranium mine opens in 2028, every Mongolian will benefit

Published: 2024-12-25 | Translated from: itoim.mn

Today, information was presented at a government meeting about the progress of negotiations on the draft Investment Agreement to be established with Orano Mining, the investor of "Badrakh Energy" LLC, a joint venture between Mongolia and France. The decision of the government meeting was presented by N.Uchral, the Chief Cabinet Secretary, who will submit the draft Investment Agreement on uranium to the State Great Khural (Parliament). Chief Cabinet Secretary N.Uchral stated: Since the discussion of the nuclear energy law, the price of uranium has increased in the world market. Our country will use an environmentally friendly and low-cost in-situ leach mining technology for uranium extraction. The project is of high geopolitical importance. This is the second largest investment agreement made with a third neighbor. Uranium is a strategic product whose price is rising by the day, establishing an Investment Agreement that lays the foundation for fulfilling commitments under the Paris Agreement to reduce greenhouse gas emissions, use nuclear energy, and potentially develop nuclear power plants. Since the French Orano company opened its representative office in Mongolia, 27 years have passed without the project making tangible progress in Parliament, but this government is bringing it to fruition. Once this project is launched, there will be an additional payment from which 51% will go to the state budget with 29 million USD, to the future heritage fund with 36 million USD, and to the savings fund with 593 million USD. If the basic income of the year does not meet 51%, the investor side adjusts to ensure 51%. By including this provision in the Investment Agreement, 51% will be ensured annually. Also, calculations have been made to allocate 44 million USD for local development and 48 million USD to social insurance premiums. Over the past period, the parties have organized 9 technical meetings and 18 investment agreement negotiations. The legal environment in the nuclear energy sector has been refined. The threshold for the special mineral resources royalty has been eliminated. Furthermore, according to the nuclear energy law, if the price of uranium per pound increases, the special royalty list will be adjusted. A financial calculation, scheme model, and main draft of the investment agreement have been completed by the Mongolian side. Based on this, the agreement has been developed. The government required 15 taxes and fees to be considered as benefits. For instance, the water pollution charge is not seen as a benefit. Employer's social insurance was also not counted as a benefit. The project’s total benefit includes special royalties, preferential dividends, withholding tax on dividends, sustainable development measures, supports, customs tax, and special permit taxes. The investor will provide initial financing of 500 million USD. Although 27 suggestions on tax stabilization were made, only four taxes have been stabilized. Every three years, an international environmental audit will be conducted, and the mine's closure and rehabilitation plan will be developed before operations start and updated every five years, a responsibility assigned to the investor. The investor will establish a tripartite agreement with the Governor of Dornogovi aimag (province) and Ulaanbadrakh soum (district). Moreover, during the construction phase, or until 2028, 300,000 USD will be spent annually in the local soum or area. Additionally, 1 million USD will be spent on mine operations, and after the mine operation phase ends, 1.1 million USD annually for ten years will be allocated towards sustainable development. During the mining operation, more than 90% of the total workforce will be Mongolian citizens. More than 5% of Mongolian workers will be citizens of the local soum. At least 60% of subcontractors must be Mongolian companies. The nuclear energy law allows for signing agreements with a term of 20 years. In case of any tax disputes, they will be resolved through domestic courts instead of arbitration. This international investment agreement will breathe life into the wealth fund. In the past, only a few mining companies accumulated around 480 billion MNT of wealth. The wealth fund comprises three funds. Funds in the savings account will increase, allowing citizens to access healthcare services and mortgage loans. When the uranium mine comes into operation in 2028, every citizen will have the opportunity to see its benefits. Regardless of profitability, we will receive a 10% dividend without bearing responsibility. By appraising and formalizing this deposit, a model agreement has been established. The people of Mongolia are striving to fulfill the constitutional provision to utilize underground resources. Many people's interests will be affected. However, the joint government must advance major projects and expand the national economy.

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Approving the Adjustment of the Capital's Budget with Revenue of 3.8 Trillion and Expenditure of 5.9 Trillion

Published: 2024-12-25 | Translated from: itoim.mn

An extraordinary meeting of the Capital City Citizens' Representatives' Meeting was held today, where six issues were scheduled for discussion. At the beginning of the meeting, issues regarding amendments to the capital's 2025 budget and approval of the capital's 2025 budget were discussed. In the draft budget for the capital in 2025, revenues are planned to be 3 trillion 856.3 billion tugriks, with 3 trillion 314.4 billion to be sourced from tax revenue and 541.9 billion tugriks from non-tax revenue. The expenditure for the capital of the 2025 fiscal year has been approved to be 5.9 trillion tugriks, with the budget administrators authorized to use the budget for the organizations under them as specified below. Budget of the capital's chief administrators: - Chairman of the Citizens' Representatives' Meeting: 64.6 billion - Mayor: 5.8 trillion - Maximum current expenditure: 1.1 trillion - Maximum capital expenditure: 4.7 trillion For the 2025 fiscal year of the capital, the expenditure on city investment projects and measures to be implemented with the capital budget is 1.5 trillion tugriks. - Expenditure on investment projects and measures to be implemented with the Road Fund: 153 billion - Investment projects and measures to be implemented with the capital's securities: 2.1 trillion - Investment projects and measures to be implemented with the Public Transport Development Fund: 29 billion - Expenditure on investment projects and measures financed across 2024-2025 is 773 billion - The funding allocated from the capital's budget to the district budgets in the 2025 fiscal year is 14 billion tugriks.

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Bogd Bank Officially Begins Partnership with FMO

Published: 2024-12-25 | Translated from: ikon.mn

Ulaanbaatar, Mongolia – Bogd Bank has officially commenced its strategic partnership with the Netherlands Development Agency (FMO), with the goal of supporting inclusive, sustainable development by steadfastly backing small and medium-sized enterprises (SMEs), particularly women entrepreneurs and green initiatives. Bogd Bank has signed a financing agreement worth 20 million USD with FMO, under which at least 30% of the funds will be allocated to environmentally friendly green projects, while the remaining 70% will be dedicated to supporting SMEs in agriculture, youth, and women. Bogd Bank's Chief Executive Officer G. Saruul stated regarding this partnership, "Bogd Bank will continue to focus on supporting micro, small, and medium-sized businesses, women entrepreneurs, and sustainable development across Mongolia. Our goal is to deliver impactful financing that supports economic growth in Mongolia, and collaborating with like-minded organizations like FMO is crucial. We are confident that this cooperation marks the beginning of a long-term, fruitful partnership." FMO's Director of Financial Institutions Juan Jose Dada Ortiz commented, "FMO is pleased to partner with Bogd Bank to enhance financial inclusion and support green initiatives in Mongolia. Our collaboration is within the framework of our unified goal of sustainable development, which aims to address climate change challenges, reduce inequality, and make significant progress in reaching underserved SMEs. We are very excited to work with Bogd Bank and believe this marks the start of a long-term partnership." About Bogd Bank: Established in 2014, Bogd Bank operates 17 branches and employs 240 staff across Mongolia, providing financing to a total of 12,500 customers across various sectors. The bank consistently supports SMEs and green development, with over 30% of its loan portfolio consisting of SMEs, the majority of which are female entrepreneurs and environmentally-friendly projects. Notably, Bogd Bank became the first publicly listed bank in Mongolia following reforms in the banking sector, registering on the Mongolian Stock Exchange in 2021. About FMO or the Netherlands Development Agency: FMO is one of the world's largest international development banks, with over €13 billion in financing across more than 85 countries. It supports the sustainable growth of the private sector in developing and emerging markets by investing in high-impact projects and entrepreneurs. The agency considers a strong private sector as a catalyst for economic and social development and has empowered entrepreneurs to make economies more inclusive, productive, adaptable, and sustainable for over 50 years. FMO focuses on three key sectors: agriculture, energy, and finance. Notice: Media outlets (Television, Radio, Social Media, and Websites) must cite their source (ikon.mn) when using our information in any form, in whole or in part.

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N. Uchral: The uranium project may not satisfy certain groups whose interests are affected, but the country's economy must progress

Published: 2024-12-25 | Translated from: ikon.mn

N. Uchral: The uranium project may not satisfy certain groups whose interests are affected. However, the country's economy must progress. N. Uchral, Chief of the Cabinet Secretariat, presented information today about the Mongolia-France uranium project. During a question from a journalist regarding when Mongolians would benefit from the uranium project and how much annual profit would be earned from underground resources, he provided the following response. N. Uchral stated, "The law of the National Wealth Fund was enacted with the 2019 constitutional amendment ratified in 2024. Over the past period, only five mining companies have achieved about 480 billion tugriks in savings. When distributed among citizens, it is about 135,000 tugriks per person, as seen on E-Mongolia. Previously, the path of how Mongolia would own its underground resources was unclear. Now, the path is clear. By replacing 34% of the state's ownership with a special royalty and product sharing, we are making a change to allocate it to the Wealth Fund. This will increase the money accumulated in citizens' Wealth Funds. If the law of the National Wealth Fund, which includes a provision to allocate 34% through special royalty substitution to the Wealth Fund, is enacted, it is projected that the yield could reach 2 trillion. We must increase the money in citizens' savings. In countries that utilize underground resources, citizens themselves can see how much money from this is deposited into their accounts, which creates a healthy investment environment. This is how the wealth fund accumulation will grow, and more people can be included in mortgage schemes. For example, if the government seeks to own 34% like in Oyu Tolgoi's investment agreement, the total dollar expected throughout the project period is estimated to be 5.4. However, nobody knows until when dividends will be delayed. Current projects even tally marketing expenses high, claiming profit based on expenses. Therefore, we decided not to calculate marketing and know-how into expenses." He continued, "After the uranium plant starts operating in 2028, we will receive a royalty from the sales. This will be regardless of whether the company operates profitably or not. In other words, even when holding a 10% preferred share, dividends will be prioritized regardless of profit or loss. We are addressing the issue to not repeat past mistakes. Additionally, no financial responsibility will be borne on the 10% because it is emphasized as a preferred share. Undertaking large projects affects the interests of many people. For 20 years, many mining products have been considered final products and haven't paid VAT. It may not satisfy some groups whose interests are affected. However, Mongolia's economy must expand and look forward. By advancing major projects and increasing the wealth fund, we can enhance our accumulation and become owners of our resources." Warning: Media organizations (Television, Radio, Social, and Web pages) must cite the source (ikon.mn) if they use our information in any form, fully or partially.

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N.Uchral: During Mining Extraction, Over 90% of Workers Will Be Mongolian Citizens

Published: 2024-12-25 | Translated from: ikon.mn

With a special permit from the MPA agency, photos were used. Information related to the uranium project being implemented in Mongolia was presented today by the Chief Cabinet Secretary N.Uchral. Here is the information he provided about the Mongolia-France uranium project. He stated: "The investor party has expressed its position to cooperate with the governor of Dornogovi province in supporting local development. However, we've legislated the establishment of a tripartite agreement. For example, the governor of Dornogovi province will cooperate with the governor of Ulaanbadrakh district. During the construction phase, up until 2028, every year USD 300 million will be allocated to the sustainable development of the local district. Moreover, during the operational phase of the mine, USD 1 million will be spent annually, and for 10 years after the mining operation phase ends, USD 1.1 million will be allocated annually to support sustainable development. It is stipulated that during the mining extraction, over 90% of workers will be Mongolian citizens. This means the number of foreign workers will be low. Additionally, the issue where foreign workers are highly paid while Mongolians are paid less has been resolved. It is arranged that over 5% of the Mongolian workers must be local district residents. Concerning agreements and legal frameworks, the Nuclear Energy Law determines the period to be 20 years, extendable by 10 years, as agreed," he noted. He continued: "Regardless of whether the company operates at a loss or profit, from the start of extraction, AMNAT will be calculated." Further, "If disputes or claims related to taxes arise, they will be resolved by domestic administrative courts. Direct access to arbitration is not allowed, to avoid repeating past mistakes. We have strived to maintain the fundamental principle that the people of Mongolia should own '50+1%' in this agreement. The best practice is that, regardless of whether the company operates at a loss or profit, from the time extraction begins, or the factory is established in 2028, a special AMNAT will be calculated from sales revenue. The project has the right to impose restrictions without any financial liability, initially allowing the right to receive a 10% dividend, introducing a decree by the State Great Khural (SGK). Upon the approval of this decree, further discussions will be held with 'Orano Mining' regarding the Investment Agreement under the SGK’s decision, followed by consultation with the Standing Committee on Security and Foreign Policy, leading to the subsequent process of approval by the SGK," he added. Notice Media organizations (Television, Radio, Social Media, and Websites) must mention the source (ikon.mn) when using our information in any form, whether fully or partially.

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Survey Conducted to Assess Access to Financial Services

Published: 2024-12-25 | Translated from: montsame.mn

A sample survey to measure the financial health of citizens and evaluate access to services was conducted by NRC and MMCG LLC under the commission of the Financial Regulatory Commission. This sample survey was conducted for the first time to assess citizens' financial capacity, services, ability to overcome short-term financial difficulties, and autonomous decision-making skills, particularly studying access to capital markets, insurance, and microfinance services. The survey results indicated that the average index of citizens' financial health was 54. Among the components of the financial health index, the resource availability index was 39, the financial status index was 45, the financial knowledge index was 53, and the financial behavioral index indicating citizens' ability to manage and plan their finances was 59. This suggests that citizens are at risk of experiencing short-term financial stress and that their income and source reliability are relatively low. In other words, while citizens have some fundamental understanding of financial concepts, they lack knowledge and information about some new products and services. Additionally, 4.4 percent of citizens surveyed use services from broker and dealer companies. Access to NBFC services was 36%, voluntary insurance was 24.4%, monetary loan services were 20%, and savings and credit cooperatives' access was 3.6%, as reported by the FRC.

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Copper Concentrate Prices Pose Risks in Exchange Trading

Published: 2024-12-25 | Translated from: montsame.mn

Ulaanbaatar. Our country started trading copper concentrate through electronic exchange on April 29, 2024, marking one of the notable events of the year. The first seller of copper concentrate to register and make an initial contract was "Erdenet Mining Corporation" SOE. Over the past period, 8 orders for copper concentrate have been submitted to the Mongolian Stock Exchange, totaling 24,000 tons of copper concentrate traded. The company plans to sell 5% of its total concentrate, or 30,000 tons, and double this amount to 10% next year through exchange trading, according to "Erdenet Mining Corporation" SOE's director G. Yondon. Three trades were canceled. One of them was due to the completion of the performance of a previously successful trade agreement, another was because the bidder refused to sign a contract, and finally, an auction was canceled due to lack of buyer participation. In recent months, it has been reported that buyers have not been participating in the electronic trading of copper concentrate via the Stock Exchange. This is linked to the decrease in copper prices on the international market, which leads buyers to avoid the risk of purchasing copper concentrate at high prices. For the trades conducted in April-August and October 2024, the calculated price of pure copper in the concentrate was $68.15-$186.10 higher than the copper price on the London Metal Exchange for the respective trading months. Since copper concentrate is not a final product, the risk of an unsuccessful trade is heightened when a fixed price is pre-set, as noted by experts. The day's discussion on the exchange trading of copper concentrate coincided with the 102nd anniversary of the modern mining industry in Mongolia.

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Submitted Bill on Amendments to the Credit Information Law

Published: 2024-12-25 | Translated from: gogo.mn

The Chairman of the State Great Khural (Parliament) of Mongolia, Mr. D. Amarbaysgalan, was presented with a draft bill by Member of Parliament E. Batshugar concerning amendments and changes to the Credit Information Law, along with the related resolutions of the State Great Khural. The banking and financial sectors' products and services, which align with the economic growth, population age structure, and the scale of operations of business entities, should be based on big data, digital information, and the data in the credit information database. However, there is currently no regulation in Mongolia to have an authorized organization approve the methodology for scoring to evaluate the creditworthiness of borrowers. Establishing a regulation where an authoritative body determines the rating of a borrower's creditworthiness would pave the way for introducing evaluation-based banking and financial services, emphasized Member of Parliament E. Batshugar. Once the amendments to the law are enacted, it will enhance the accessibility of banking and financial services and improve operations based on risk assessment and management. Furthermore, lenders will be able to make sound decisions quickly and without risk, resulting in a reduction in the volume of overdue and non-performing loans in the banking and financial sector. On the other hand, borrowers will have the opportunity to monitor their own credit history, which will enhance financial discipline and responsibility, potentially leading to a decrease in loan interest rates, as explained by the initiator of the amendment draft, according to the Press Office of the State Great Khural.

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E. Batshugar: Submitted a draft law to completely eliminate the well-known blacklist of the Mongolbank

Published: 2024-12-25 | Translated from: ikon.mn

Member of Parliament E. Batshugar reported on the submission of a draft law to amend the Credit Information Law. He stated, "By amending the Credit Information Law, we are completely removing the system that imposes financial penalties known as the Mongolbank’s blacklist. Instead, we are moving toward a system that rewards financially disciplined citizens. Eliminating the blacklist system will create conditions for an overall reduction in interest rates. Entering a credit scoring system allows assessing risk and providing loans at lower interest rates. This is not something new. Democratic countries with developed financial markets operate with this system. For example, in 1989, the USA shifted to a credit rating system. Before that, the interest rate was 10.5%, and upon switching to the credit rating system, it became 8.5%. South Korea adopted this system in the early 2000s and reduced the average loan interest rate from 9.3% to 6.5%. Thus, moving to a credit rating system provides a fundamental condition for reducing interest rates by an average of 2-4%. It also creates a financial structure where prepayments might not be mandatory. For example, a financially disciplined 30-year-old citizen intending to get a mortgage loan could participate without providing a prepayment, considering the possibility of working for 20-30 years. Mongolbank granted a one-time pardon to those on the blacklist in honor of its 100th anniversary. However, we are completely eliminating the system that grants pardons based on an organization's anniversary. The financial penalties and blacklist will be removed in six years. The draft law was submitted today, and we will strive to expedite the process. The council beside the Speaker of the Parliament will decide when it will be discussed," he said.

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World Bank's Beef and Dairy Cattle Program Ready to Launch

Published: 2024-12-25 | Translated from: montsame.mn

The "Livestock Economic Circulation Increase Project," funded by the World Bank, is being implemented by the Ministry of Food, Agriculture, and Light Industry. The project focuses on increasing the productivity of cattle in Selenge, Bulgan, and Tuv provinces. The program aims to improve the breeds, yield, and quality of beef and dairy cattle in these target areas. By forming a core herd of high-yield breeds and using advanced methods such as embryo transfer, the program will manage cattle breeding systematically to increase economic returns. The initiative is set to begin with the distribution of 250 heifers and 100 bulls of high-yield Selenge, Kazakh White-headed, and Hereford breeds to local farmers and businesses engaged in beef cattle farming. Participants of the program will raise and breed these cattle exclusively, creating a core herd and eventually returning equivalent aged and gender-matched cattle to allow other farmers to join the program. As a result, beef productivity in the central region's cattle herds is expected to increase by 10-15%. The Ministry of Food, Agriculture and Light Industry announced that this effort will contribute significantly to meeting the demand for beef by increasing productivity and utilizing the quality traits of specialized beef cattle breeds. The project's goal is to enhance livestock health, productivity, and economic circulation in the value chain. The project also aims to respond effectively to emergency situations and disasters, which have become frequent due to climate change, drought, and overgrazing. With issues such as overpopulation of cattle leading to overgrazing, it is crucial to increase livestock productivity and efficiency, as well as improve food supply and security for urban populations, supporting sustainable and intensified livestock production.

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Industrial Sector Production Increases by 1.8 Trillion MNT

Published: 2024-12-25 | Translated from: montsame.mn

The production of the industrial sector reached a total of 29.4 trillion MNT for the first 11 months of this year, marking an increase of 1.8 trillion MNT (6.6%) compared to the same period last year. This growth was influenced by the mining and extraction sector, which rose by 1.5 trillion MNT (7.8%), and the electricity, gas, steam, and air conditioning sector, which grew by 132.3 billion MNT (7.9%). In the mining and extraction industry, production was valued at 21 trillion MNT for the first 11 months, increasing by 1.5 trillion MNT (7.8%) compared to the same time last year. The extraction of hard and brown coal rose by 1.2 trillion MNT (14.5%), and metal ores extraction increased by 410.4 billion MNT (4.3%). The mining and extraction industry showed an increase in the physical output of copper concentrate, coal concentrate, iron ore, hard coal, brown coal, fluorspar, zinc concentrate, and iron ore concentrate by 8.1% to 46.9% compared to the previous year's same period. However, there were decreases in the output of silver concentrate, crude oil, purified gold, and fluorspar concentrate by 3.8% to 28.6%. In the manufacturing sector, the physical production volume of key products such as coal briquettes, liquid milk, water, beverages, juice, cement, livestock meat, and vodka have increased by 0.2% to 22.3%. However, there has been a decrease in the production of lime, pure alcohol, metal castings, flour, cashmere knitted products, cathode copper, cigarettes, and carded cashmere products by 3.1% to 43.9%. The total value of sold products from the industrial sector for the first 11 months reached 46.9 trillion MNT, an increase of 4 trillion MNT (9.2%) compared to last year. Sales from the mining and extraction sector increased by 3.8 trillion MNT (11.4%), and the electricity, gas, steam, and air conditioning sector's sales grew by 127.2 billion MNT (7.6%), according to the National Statistics Office. The revenue from sold products in the mining and extraction industry increased by 3.8 trillion MNT (11.4%) compared to the previous year, driven by the coal extraction sector's sales increase of 1.9 trillion MNT (9.9%), metal ores extraction rise of 1.9 trillion MNT (15.8%), and other mineral extraction growth of 82.6 billion MNT (19.7%). In the foreign market, preliminary results for the first 11 months show total sales of 34.1 trillion MNT, where 33 trillion MNT was from the mining and extraction sector. Of the exports, 60.4% were from coal, 35.3% from metal ores, 3.1% from crude oil, and 1.2% from other mineral extractions.

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Economic, Budget, and Investment Committee Discusses Budget

Published: 2024-12-25 | Translated from: montsame.mn

The Economic, Budget, and Investment Committee of the NITC met to discuss amendments to the budget for 2024 and the approval of the 2025 budget. The head of the city’s Finance and Investment Department, B. Enkhjin, stated that according to Article 32.5 of the Budget Law passed by the Parliament on the 13th of this month, "the local councils of aimags, the capital city, sums, and districts shall discuss and approve their respective budget proposals before the beginning of the next fiscal year." In accordance with this, the proposal for the 2025 budget of the capital is being drafted and presented. The capital’s 2025 budget proposal has been developed with the aim of aligning regional development principles with tax policy, simplifying the tax environment for businesses, increasing tax coverage, and improving registration and monitoring, thereby reducing the shadow economy and ensuring efficient, transparent, and economical governance. The 2025 budget aims to activate public-private partnership, expand the city’s economy, convert ger districts to housing, reduce air pollution, increase connecting roads in the city, modernize the public transport sector, and reduce traffic congestion.

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Diplomacy

Democratic Party receives update on contract with "Orano Mining"

Published: 2024-12-25 | Translated from: news.mn

The Democratic Party caucus of the State Great Khural held an extraordinary meeting to hear updates on the investment agreement project with the French company "Orano Mining." The information about this project was presented by MP U. Uchral, Director of the Cabinet Secretariat, MP B. Jjavkhlan, Minister of Finance, and other relevant officials, who also answered questions from caucus members. The investment agreement project with the French company "Orano Mining" has been submitted to the State Great Khural by the government. This means that it will soon be discussed by the Parliament. If the Parliament supports and passes the project, the company will be able to start uranium extraction. The project to be implemented is called "Zoovch-Ovoo." The plan is to extract uranium using in-situ leaching technology. The mine is planned to become operational in 2028.

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Discussion on Ratifying the Governmental Agreement with Russia

Published: 2024-12-25 | Translated from: gogo.mn

The following is the agenda and schedule for today's meeting of the Standing Committees of the State Great Khural of Mongolia. 1. Standing Committee on Budget - Discussion on the bill to ratify the "Agreement between the Government of Mongolia and the Government of the Russian Federation on the Design and Construction of the Expansion and Renovation Project of Thermal Power Plant No. 3 in Ulaanbaatar, Mongolia." The government submitted this on December 20, 2024, and will submit it along with opinions and conclusions to the Standing Committee on Security and Foreign Policy. - Conclusion No. 04 of 2024 by the Constitutional Court of Mongolia regarding whether certain sections and provisions of the General Tax Law violate the Constitution of Mongolia. - Issue regarding the nomination of a non-staff member of the Financial Regulatory Commission. - Draft resolution of the Standing Committee on setting the date for the hearing for the nomination and appointing the chair of the hearing. Time: 12:00
Location: "D. Sükhbaatar General" 2. Standing Committee on Social Policy - Bill on amendments to the Law on Labor Migration, submitted by the government on December 20, 2024, to determine if it will be discussed. - Bill on not setting quotas for foreign workers in Mongolia and exempting them from workplace fees, along with other accompanying bills submitted by Member of Parliament P. Sainzorig and 4 other MPs on December 19, 2024, to determine if they will be discussed. Time: 14:00
Location: "Great Khaan Chinggis" 3. Standing Committee on Security and Foreign Policy - Discussion on the bill to ratify the "Agreement between the Government of Mongolia and the Government of the Russian Federation on the Design and Construction of the Expansion and Renovation Project of Thermal Power Plant No. 3 in Ulaanbaatar, Mongolia." Submitted by the government on December 20, 2024, for ratification. Time: 15:00
Location: "Ikh Zasag" This agenda and schedule are presented for today's meeting of the Standing Committees of the State Great Khural of Mongolia.

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Discussion on the Progress of the Agreement with Orano Mining

Published: 2024-12-25 | Translated from: montsame.mn

The government meeting continues at the State Palace in Ulaanbaatar. The meeting will discuss the progress of negotiations on the draft investment agreement with the joint Mongolian-French company "Badrakh Energy" LLC's investor, "Orano Mining." Other topics include the progress of the Gashuun Sukhait-Gants Mod cross-border railway project, the draft resolution of the State Great Khural to determine the state's ownership share and percentage of strategic mineral deposits, and the draft resolution of the government to declare 2025 as the Year to Support the Capital's Development. In total, 42 issues are on the agenda for the meeting.

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DARKHAN-UUL: Cooperation with Ordos City of Inner Mongolia Autonomous Region

Published: 2024-12-25 | Translated from: montsame.mn

Today, the leadership of Ordos City from the Inner Mongolia Autonomous Region visited Darkhan-Uul province. The delegation was received by the province's governor and other officials. During the meeting, they discussed initiating cooperation between the two cities. Specifically, they exchanged ideas on developing a new travel route to Ordos City and collaborating on local tourism enhancement. Ordos City is known for its 53 natural complexes, each with unique features promoting tourism, which was highlighted in the discussions. Additionally, they agreed to share and introduce new experiences in environmental protection, combating desertification, and increasing green spaces. They also discussed collaboration in the agriculture sector by exporting eco-friendly fruits and vegetables. The initial meeting concluded with plans for Darkhan-Uul province officials to visit Ordos City by the second quarter of 2025 to learn about joint operation sectors and gain on-site experience.

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Infrastructure

"Gashuunsukhait-Gantsmod" Railway Agreement Must Be Expedited to Avoid Losing Major Opportunities

Published: 2024-12-25 | Translated from: ikon.mn

The "Gashuunsukhait-Gantsmod" border railway bridge, which is to be constructed in cooperation with China, is led by the Minister of Industry and Mineral Resources Ts. Tuvaan from Mongolia's side. He provided an update on the project's progress, noting that the working groups from both sides have met approximately 60 times so far. The project was initially discussed starting in 2003, and in 2009, an agreement to begin the cross-border railway construction was signed during a government meeting between the two countries. Since then, it has stalled for many years, as pointed out by the Minister. Guidance on the issues for the current negotiations is being drawn from the State Great Khural (Parliament of Mongolia), and after the resolution is passed, contracts and agreements will proceed in the following stages: A bilateral government agreement will be signed and adopted by the Parliament. A tripartite agreement between the two companies will cover matters such as railway connections, coal purchases, and increasing mining capacity. "An open tender will be announced on fields with licenses from Onch-Kharaat and Bortolgoy," stated Minister Ts. Tuvaan. "If this agreement is not executed swiftly and activated without delay, a significant amount of time and opportunity will be lost. The potential opportunities that have been missed and are at risk of being missed are immense. This project will provide a major boost to Mongolia's goal of exceeding $10,000 in GDP per capita." Previously, the Chinese side had expressed interests in obtaining shares and preferential rights for certain deposits under the license of Erdenes Tavantolgoi company. Currently, during the working group's meetings, the Chinese side has fully withdrawn from this proposal. The Tavantolgoi deposit extracts over 30 million tons of coal annually. If a long-term coal purchase agreement is established, the mine's capacity will be insufficient. Thus, Tavantolgoi company plans to announce an open tender for Onch-Kharaat and Bortolgoy, areas with existing exploration licensing. Participation will be open to all companies. Note: Media organizations (Television, Radio, Social, and Web platforms) must cite "ikon.mn" as their source when using this information in any form, complete or partial.

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Connecting the Gashuunsukhait-Gantsmod Railway with a Unified Design and Establishing Long-term Coal Agreements

Published: 2024-12-25 | Translated from: ikon.mn

The cross-border railway bridge of Gashuunsukhait-Gantsmod will be constructed in partnership with "Erdenes Tavan Tolgoi" LLC and the Chinese state-owned "China Energy" group. This will be the second cross-border railway between the two countries since the Ereen-Zamiin-Uud railway was connected in 1955. In the scope of this project, both parties are adhering to a comprehensive approach, addressing three core components: railway connection, long-term coal trade agreements, and the enhancement of mining capacity. Furthermore, both sides have emphasized the importance of ensuring legal and regulatory stability. I. RAILWAY CONNECTION The Tavantolgoi-Gashuunsukhait-Gantsmod railway serves as a vital artery to integrate the Tavantolgoi mining group's resources into the economy. II. LONG-TERM COAL TRADE AGREEMENT To quickly recoup the investment and increase economic returns, it is necessary to establish a long-term and stable coal trade agreement. III. INCREASING MINING CAPACITY To consistently transport 30 million tons of coal across the border, the mining capacity must be enhanced. Additionally, the two parties are committed to building according to a single plan within two years, ultimately linking their constructions into a unified connection. Warning: Media outlets (television, radio, social media, and websites) must always cite the source (ikon.mn) when using our information, whether in full or in part.

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B. Choijilsuren: Russians Estimated the TPP III Expansion at 1.3 Billion Euros, We Think That's Expensive

Published: 2024-12-25 | Translated from: isee.mn

Today, political party groups are having an extraordinary meeting. During this time, we inquired with MP B. Choijilsuren about the current state of the expansion and renovation work of TPP III. He stated that in a 2021 meeting between the Russian Government and the Government of Mongolia, the Mongolian side made a request for the Russian Government to finance the expansion and renovation of TPP III through exports. The Russian side accepted and said they'd study the proposal. Consequently, the Russian side, through Inter-RAO and the Mongolian side, through TPP-3 JSC, teamed up, and Inter-RAO financed a feasibility study, which was delivered to the Ministry of Energy and TPP-3 in September 2022. According to this feasibility study, it was preliminarily estimated that the project could be financed and completed for 1.3 billion euros. The 1.3 billion euro cost is excessively high. It has been two years since we requested the Russian side to lower the price. The Russians have considered the feasibility study as preliminary indicators and guidelines. They suggest that final approvals require detailed blueprints and cost estimations to be made, which would allow us to discuss the exact cost later. Following this, we will discuss whether to proceed with the project using Russian export loans.

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Resolution to Accelerate Railway Connection Project at Gashuunsukhait-Gantsmod Border Point

Published: 2024-12-25 | Translated from: isee.mn

The government has introduced a resolution to urgently submit a draft project to implement the railway connection project at the Gashuunsukhait-Gantsmod border point. The decisions made during today's regular government meeting have been disclosed. The meeting addressed a resolution to urgently submit to the Parliament a draft resolution about establishing the key directions for negotiating the implementation of the Gashuunsukhait-Gantsmod border connection railway project. This project is ranked first among the 14 mega projects included in the "Government Action Plan of Mongolia for 2024-2028." According to the Minister of Industry and Minerals, Ts. Tuvdendorj, it was previously presented that amendments and changes to certain laws and regulations are necessary to ensure the implementation of this project. By connecting the Gashuunsukhait-Gantsmod border, the border point's throughput capacity will increase, and bilateral cooperation between the border points will improve. It is estimated that the poverty level in Mongolia will be reduced by half, and the per capita GDP will reach 10,000 USD. Additionally, the implementation of this project is expected to increase Mongolia's GDP by an average of 3.5 billion USD annually. The coal sector, which currently accounts for a third of Mongolia's exports, is expected to see its annual export revenue, averaging 2.61 billion USD, increase by 2.8 times to reach 7.4 billion USD. Furthermore, there are opportunities to increase the extraction capacity of the mines around the Tavan Tolgoi group of deposits by 2-3 times, and to reduce freight transportation costs, among other multiple benefits.

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H. Nyambaatar: One percent of corporate income tax will be spent on improving infrastructure and reducing air pollution in the capital

Published: 2024-12-25 | Translated from: itoim.mn

A regular government meeting discussed 42 issues. For instance, discussions included the progress of negotiations for the draft investment agreement between the Mongolian-French joint venture company 'Badrakh Energy' LLC and its investor 'Orano Mining', the progress of the Gashuunsukhait-Gantsmod cross-border railway project, the draft resolution of the State Great Khural (Parliament) regarding the determination of the state's share and size in mineral deposits of strategic importance, and the draft government resolution to declare 2025 as the year to support the development of the Capital. Relevant ministers provided information on the decisions made at the meeting. The Mayor of the Capital, H. Nyambaatar, gave information about the draft government resolution to declare 2025 as the year to support the development of the Capital. According to the resolution, one percent of the corporate income tax (CIT) will be allocated for reducing smoke and congestion in the capital city. Currently, 50 percent of the population lives in the capital Ulaanbaatar city. It was planned in 1976 that 600,000 people would live and 84,000 cars would be in operation in the capital, based on the city's plan. Since then, the general plan has been updated several times. Next week's government meeting will present the plan to develop Ulaanbaatar city until 2040. The Mayor of the Capital, H. Nyambaatar, stated, "Next year, the government set a goal to support the infrastructure development of Ulaanbaatar city and approved the resolution. Within the framework of the plan to develop Ulaanbaatar city until 2040, goals have been set to establish sources of infrastructure and heat supply, to construct sources of water supply, and to build two-level roadway constructions, and to reduce air pollution. Today, the short-term and medium-term plans to reduce air pollution in Ulaanbaatar city will be presented and approved. The government will provide all-around support and assistance to ensure the implementation of this plan. A decision has been made to manage the one percent of corporate income tax as part of social responsibility. In connection with this, a joint order by five ministers has approved the regulation to allocate one percent of the corporate income tax to solve the infrastructure problems of the capital. This means that the development of infrastructure in the capital will be addressed with the funding of one percent of the corporate income tax. Several large projects and programs to reduce air, soil, and water pollution and reduce traffic congestion in Ulaanbaatar city will be implemented next year. These include: - Preparing sources to connect 20,000 households in the capital to the gas pipeline network. Subsequently, a law will be established to designate zones without chimneys, allowing the introduction of gas and kerosene stoves in these areas. - Changing the fuel of households and distributing double-combustion stoves. Around 56 percent of the air pollution in Ulaanbaatar is caused by households in ger districts, and about 30 percent is caused by the nitrogen dioxide emissions from 500,000-600,000 transport vehicles. Short-term measures are outlined to address each factor causing air pollution over the next year. - Transitioning buses in public transportation services to gas and electric engines. - Restricting the participation of air-polluting vehicles in traffic. - Annually converting 30 percent of the 170 steam boilers into gas-fired heat stations. These plans will be addressed utilizing the one percent source of corporate income tax. Other sources will be formed from the internal capabilities of the capital, the Local Development Fund, and the city budget. Additionally, ministries responsible for duties and directions will focus on reducing congestion and air pollution in the capital over the next year.

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Gashuunsukhait-Gantsmod Port Railway Project Resolution Submitted to Parliament

Published: 2024-12-25 | Translated from: gogo.mn

Prime Minister L. Oyun-Erdene of Mongolia has submitted a draft parliamentary resolution related to the "Mongolian Government's Policy Direction on Establishing an Agreement for the Cross-border Railway Construction at the Gashuunsukhait-Gantsmod Port between the Government of Mongolia and the Government of the People's Republic of China" to the Speaker of the State Great Khural of Mongolia, D. Amarbaysgalan. The "2024-2028 Government Action Plan" approved by the 21st resolution of the 2024 Parliament of Mongolia includes the implementation of 14 mega projects, among which is the aim to construct cross-border connecting railways and freight transfer terminals at the Gashuunsukhait-Gantsmod, Khangi-Mandal, and Shiveekhuren-Sekhee border ports. With the approval of the direction for establishing an agreement to implement the cross-border railway construction at the Gashuunsukhait-Gantsmod port, it is anticipated that the volume of goods exported by rail could increase to 30 million tons per year or more, and the coal export volume from the Tavan Tolgoi mine could reach up to 70 million tons per year, thereby creating an opportunity to increase coal sales revenue by 1.5 billion dollars annually, as stated by Prime Minister L. Oyun-Erdene. He also expressed that there is a prospect for the economy to grow by 0.8 percentage points annually in the future, reduce the poverty level, increase GDP per capita to 10,000 USD, maintain economic growth above 6%, and keep inflation at 5%, which are considered to have significant economic importance. The resolution draft has been submitted for urgent discussion according to section 33.1 of the Law on the Procedures of the State Great Khural's Sessions, as reported by the State Great Khural's Press Service.

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Submitting a Resolution to Establish the Gashuunsukhait-Gantsmod Border Railway Agreement to Parliament

Published: 2024-12-25 | Translated from: montsame.mn

In today's meeting, the government decided to submit a draft resolution to parliament to approve the guidelines for establishing an agreement between the Government of Mongolia and the Government of the People's Republic of China to implement the cross-border railway construction at the Gashuunsukhait-Gantsmod border crossing. By the Prime Minister's order, "The 1955 Mongolia-China Border Railway Agreement" and "Measures related to the construction work of the Gashuunsukhait-Gantsmod cross-border railway" are being led by a working group chaired by the Minister of Industry and Mineral Resources. Furthermore, Prime Minister L. Oyun-Erdene, Minister of Industry and Mineral Resources Ts. Tuvaan, and Minister of Roads and Transport B. Delgersaikhan have repeatedly held high-level meetings with the Chinese side, proposing several specific ideas, such as ensuring a stable legal environment, guaranteeing conditions for implementing agreements with the China Energy Group, increasing the capacity of coal deposits, and railway connection issues. By establishing the Gashuunsukhait-Gantsmod cross-border railway agreement, it will become possible for exported cargo by railway to surpass 30 million tons per year, with the Tavantolgoi coal deposit exports increasing to 70 million tons per year, and coal sales revenue potentially increasing by 1.5 billion USD annually. In other words, the trade and economic cooperation, regional collaboration, mineral resources, industry, and infrastructure sectors between Mongolia and China will be invigorated, creating conditions for connecting the Shiveekhuren-Sekhe, Hangi-Mandal, and Bichigt-Zuunkhatavch border crossings by railway, and strategically increasing the border crossing capacity by 80 million tons from 2030 onwards, according to ZGMONKHG.

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Discussed the Activation of Border Port Operations

Published: 2024-12-25 | Translated from: montsame.mn

The State Secretary of the Ministry of Road and Transport Development, S. Batbold, met with a delegation led by Kan Fengwei, Deputy General Manager of China's "China Energy" group. During the meeting, the parties discussed accelerating the construction of the railway connecting the Gashuunsukhait and Gantsmod border ports and advancing a major railway project between the two countries that has been stalled for 16 years. They also exchanged views on activating border port operations and cooperation in the transportation sector between the two nations. The implementation of the project is important for strengthening the strategic partnership between the two countries, expediting the implementation of joint development projects, learning from the technological advances and management techniques newly introduced in China's railway sector, and facilitating the exchange of experience among engineers, technical workers, and professionals from both sides, according to the Ministry of Road and Transport Development.

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Tuvshin Tuvaan: Transborder Railway to Increase Coal Exports by 40 Million Tons

Published: 2024-12-25 | Translated from: gogo.mn

Industry and Mineral Resources Minister Tuvshin Tuvaan is reporting on some of the decisions made by the government. The project of cross-border infrastructure development between Mongolia and China was initially discussed in 2003, leading to an agreement in 2009 at a meeting between the two governments, and was included in the comprehensive strategic partnership agreement in 2014. Due to substantial delays, the project has resulted in missed opportunities. The completion of this infrastructure will increase coal exports. Once the Chinese side has linked the railway ports connected to Mongolia, namely Khangi, Shiveekhuren, and Gashuunsukhait, coal export will increase incrementally, resulting in a 40 million ton increase. Our calculations indicate that we have lost 4-5 billion USD due to the project delays. There are talks about "China Energy" imposing strict conditions on us. Could you elaborate on this? In today's meeting, we only received guidance. Following this, the governments of the two countries will enter into negotiations and subsequently seek ratification by the Parliament (Great Khural). A trilateral agreement with two companies will be established, covering the railway connection, coal selling and purchasing, and increasing mining capacity, all in a phased manner. Agreements are reached through negotiation, and so all members have been informed of the proposals from China, which should be viewed as Chinese suggestions rather than negotiations. Thus, there is a chance to recover the lost opportunities in the future. For the government's aim of increasing GDP per capita to exceed 10,000 USD, this is viewed as a driving project. In previous negotiations, the Chinese side had requested a share in licenses held by Erdenes Tavan Tolgoi and priority in mining rights. However, in the current working group meetings, the Chinese side has completely abandoned this proposal and will not own shares in the Erdenes Tavan Tolgoi mine. Erdenes Tavan Tolgoi LLC extracts more than 30 million tons of coal annually, but additional long-term contracts would exceed the mine's capacity. Therefore, international open tenders have been announced for two licensed sites where exploratory research has been conducted, open to any interested companies, including China Energy.

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Tuvshin Tuvdaan: Coal Exports to Increase by 40 Million Tons with the Connection of the Gashuunsukhait-Gantsmod Railway

Published: 2024-12-25 | Translated from: itoim.mn

The draft resolution related to the construction of the cross-border railway at the Gashuunsukhait-Gantsmod port has been introduced in the government's meeting and is set to be presented to the Parliament. Minister of Industry and Mineral Resources J. Tuvaan stated that a draft resolution "On approving the main guidelines for concluding an agreement for the construction of the cross-border railway at the Gashuunsukhait-Gantsmod port between the Government of Mongolia and the Government of the People's Republic of China" is being submitted. The construction work on the cross-border railway ports of the two countries has been delayed and extended over a considerable period. Initially discussed in 2003, an agreement for the construction of the cross-border railway was concluded in 2009. With the connection of this long-stalled railway, coal exports will increase by 40 million tons. After the connection of the Gashuunsukhait-Gantsmod port, many more ports will be opened and put into operation. In the past period, we have lost economic opportunities worth 4-5 billion USD. To resolve this issue, a draft resolution initiating directions from the Parliament has been proposed and submitted. Once the resolution is approved, negotiations between the two countries will commence. After negotiations, the Parliament will ratify it. In the meantime, a working group from both countries has been established and is working. I am leading the Mongolian side's working group. The working group has held around 60 meetings. The work is continuing even today. Furthermore, following this, operations will begin with a tripartite agreement between two state-owned companies, "Erdenes Tavan Tolgoi" and "China Energy."

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The Government Declares 2025 as the Year to Support the Development of Ulaanbaatar's Infrastructure

Published: 2024-12-25 | Translated from: gogo.mn

The government has announced that 2025 will be the year to support the development of the infrastructure in Ulaanbaatar city as per its recent meeting resolution. The Governor of the Capital City, Kh. Nyambaatar, revealed that the government meeting has issued a resolution declaring 2025 as the year to promote the development of Ulaanbaatar's infrastructure. Nearly 50% of Mongolia’s population resides in Ulaanbaatar city.

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Locations of Power Outage Today from 18:00 to 20:00

Published: 2024-12-25 | Translated from: ikon.mn

Due to a shortage of power capacity, the National Dispatch Center, under the decision of TӨХХК, may impose restrictions today from 18:00 to 20:00. The possible locations for these restrictions have been announced by UBЦТС TӨХК. The restriction will last between 60 to 120 minutes. Consumers are advised to turn off unnecessary electrical devices during this time and to manage their usage. Warning: Please note that media organizations (Television, Radio, Social Media, and Web pages) must cite the source (ikon.mn) when using our information in any form, whether in full or in part.

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The Budget Standing Committee Did Not Support the Draft Law on the Design Project for the Expansion and Modernization of "CHPP-3"

Published: 2024-12-25 | Translated from: ikon.mn

The Budget Standing Committee of today's meeting discussed the "Agreement on the preparation of a design project for the expansion and modernization of the Thermal Power Plant 3 of Ulaanbaatar, Mongolia between the Government of Mongolia and the Government of the Russian Federation." After discussing this draft law, most members did not support it during the voting process. The Budget Standing Committee will submit its recommendations on this matter to the Security and Foreign Policy Standing Committee, and after another vote, it will go to the session of the Parliament for a final decision. During the discussion of the design project law for the expansion and modernization of the Third Thermal Power Plant, members of Parliament expressed their positions as follows: MP N. Altankhuyag: Such issues are not usually discussed in Parliament. If we are going to carry out work with 1.3 billion euros, then the issue of whether to approve the loan agreement should be discussed. However, the issue of developing a design project for the expansion and modernization of the power plant is not discussed in Parliament. It should be discussed at the government level. Why can’t we take this back and proceed with our work? Do we need to generate various debates nationwide about relations between the two countries due to the power plant? On the one hand, Russia seems to be pushing, on the other hand, it seems like we are taking it, which creates confusion. During my government, we increased the capacity of "CHPP-4" by 123 MW in cooperation with Russia for less than 80 million dollars. Today, the most expensive expansion of 1 MW globally costs two million dollars. Citizens seem to misunderstand the design project. They think it's about taking the loan. Therefore, can you decide this in the Cabinet without bringing it to Parliament? During my government, the 123 MW expansion of "CHPP-4" was not discussed in Parliament. Yesterday, Choi, I gave you friendly advice. So don't bring a draft law to Parliament to do a design project for 20 million dollars. You are putting MPs in an awkward position. Chairman of the Budget Standing Committee Ts. Davaasuren: This draft law concerns an intergovernmental agreement, not a loan agreement. Therefore, it is better for the Budget Standing Committee to reject it. There is no monetary amount mentioned for obtaining millions of dollars; it's about having a design project done. On the European market, it costs one million dollars to build 1 MW of the most modern automated high-tech station. When I was working as a minister, Russians proposed more than 600 million euros. At that time, I refused, saying it was twice as expensive. Now it has become 1.3 billion euros. Energy Minister B. Choijilsuren: According to our tender law, if an open tender is announced for "CHPP-3", a Russian company might not win. Therefore, we are bringing it through an intergovernmental agreement to select the Russian company. When implementing it through Russia's export loan, there was no choice but to conduct the feasibility study according to Russian equipment. We want to try conducting this through establishing an intergovernmental agreement instead of under the tender law. Warning: Media organizations (TV, Radio, Social, and web pages) must mention their source (ikon.mn) when fully or partially using our information in any form!

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N.Altankhuyag: The expansion of Power Plant 3 can be done for 800 million dollars, not 1.3 billion dollars. It is concerning that its design is being presented to parliament

Published: 2024-12-25 | Translated from: isee.mn

Today, parliamentary groups are holding extraordinary meetings. During the Democratic Party group's meeting, we asked Member of Parliament N. Altankhuyag whether they support projects regarding uranium and railway connections. "I am planning to speak about the expansion of Power Plant 3 at the Budget Committee. During our government, we increased the capacity of Power Plant 3 by 50 megawatts, adding electric and heat sources. At that time, we spent 35 million US dollars. Today, the most expensive estimate for power and heat generation capacity is 2.5 million dollars per megawatt. We increased 50 megawatts for 35 million dollars. It is necessary to discuss how much capacity we can generate for how much money. We added 50 megawatts for 35 million dollars. During our time, we also expanded Power Plant 4, adding 123 megawatts which cost over 70 million dollars." "We need to talk about what we are planning to build and how much we will spend in dollars. Multiplying 300 megawatts by 2 million dollars gives 600 million dollars, indicating that the planned 1.3 billion euros could result in 500 to 700 million dollars according to experts." "Most concerning is that the expansion and renewal project design for Power Plant 3 is being presented to the parliament. I have never heard of a project design needing to go to parliament until now," he said.

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A Procedure to Resolve Urban Infrastructure Issues Using 1% of Corporate Income Taxes Has Been Approved

Published: 2024-12-25 | Translated from: ikon.mn

The regular meeting of the government was held today, and the government approved a resolution to declare 2025 as the "Year of Supporting Urban Infrastructure Development." According to the general plan from 1976, the infrastructure in Ulaanbaatar at that time was planned for a population of about 600,000, with road networks capable of accommodating around 84,000 cars. Preparations for submitting the general plan for Ulaanbaatar until 2040 to the government are already underway. As part of this plan: - Reliable sources of heat supply, sewage treatment, and water supply infrastructure will be developed. - Dual-level road constructions will be established, aiming to reduce air pollution and traffic congestion. Additionally, in connection with the decision to use 1% of corporate income tax as part of social responsibility, R. Erdeneburen, the chairman of the 20-Minute City National Committee, J. Batsuuri, the Minister of Construction and Urban Development, B. Delgersaikhan, the Minister of Road and Transport Development, B. Choijilsuren, the Minister of Energy, and S. Odontuyanaa, the Minister of Environment and Climate Change, jointly approved a set of criteria for tax incentives dedicated to supporting the capital city's infrastructure using 1% of corporate income tax. Under this procedure, a source of funding to resolve the capital's infrastructure development issues will be provided using 1% of corporate income taxes. Warning: Media institutions (Television, Radio, Social Media, and Websites) must cite the source (ikon.mn) when using our information in any form, either partially or fully.

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The Housing Complex in the Selbe Sub-center Has the Highest Budget Allocation of ₮1.6 Trillion

Published: 2024-12-25 | Translated from: ikon.mn

The draft budget for 2025 of the capital city is being discussed by the City Council. Representatives provided information regarding some expenditure and financing programs. City Council member B. Dulguun stated that the 2025 budget of the capital city has been designed with a revenue of ₮3 trillion 198 billion and an expenditure of ₮3 trillion 198 billion. Compared to the previous draft, the budget appears to be non-deficit with reduced current expenses. The investment expense is ₮1.7 trillion. A large-scale construction will be carried out using the capital city's bonds. The amount financed by the bonds is ₮2 trillion 188 billion. Of this, ₮1.6 trillion will be used to construct a comprehensive housing complex in the Selbe sub-center, having the highest budget allocation. Financing for the construction of an energy storage station, roads, and Tuul-1 collector is included in the city's budget. In 2025, ₮359 billion is planned to be spent on land acquisition and compensation. City officials have promised to build housing for 12,000 households in the Selbe sub-center, aiming to reduce the air pollution in Ulaanbaatar. City Council member L. Khushbaiar added that the expansion of the 63rd school to accommodate 320 more students will be 50% funded by the city's budget, and the "Milk" program, as well as expenses related to coal storage, transportation, furnace, technological renewal, and home insulation will be covered by green loans. Notice: Media organizations (Television, Radio, Social Media, and Websites) must credit their source (ikon.mn) if they use our information wholly or partially.

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The 2025 Capital City Budget Approved

Published: 2024-12-25 | Translated from: gogo.mn

The regular III session of the Capital City Council was held today, and the 2025 budget draft for the capital city was approved. It was approved to concentrate revenue of 3,856.3 billion MNT in the capital city's budget for 2025. Of this, 85.9% or 3,314.4 billion MNT will be generated from tax revenues, and 14.1% or 541.9 billion MNT will be generated from non-tax revenues. Furthermore, the total expenditure of the capital city's 2025 budget is planned to allocate 38.1% or 1,329.3 billion MNT for current expenses, 50.4% or 1,720.2 billion MNT for capital expenses, 2.2% or 78.3 billion MNT for loan repayments, 8.9% or 327.2 billion MNT for securities repayments, and 0.4% or 14.1 billion MNT for financial support to three remote districts. The 2025 budget of the capital city was developed within the framework of government policies, aiming to align regional development concepts with tax policy, simplify the tax environment for businesses, increase tax compliance, improve registration and control to reduce the informal economy, and expand the tax base. It continues these efforts by calculating all potential sources of budget revenue and adhering to the Budget Law and the Law on Efficiency of the State to be efficient, transparent, and economical, aiming to improve fiscal discipline. This includes: - Activating public-private partnerships to implement policies that expand the city's economy. - Converting ger districts into apartment areas to reduce air and environment pollution. - Increasing connecting roads in Ulaanbaatar and conducting comprehensive reforms in the public transport sector to reduce traffic congestion. - Completing investment projects started in previous years and increasing the accessibility of basic social services. It is also noted that the State Great Khural of Mongolia approved the law regarding the 2025 state budget in its plenary session on December 13, 2024. Source: Capital Governor's Office, Public Relations and Communications Department

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Society

Foreign workforce: To hire or not to hire

Published: 2024-12-25 | Translated from: news.mn

Members of Parliament P. Sainzorig and N. Batsumberel have announced that they have withdrawn their draft law that aimed not to set quotas on foreign workers in Mongolia and to exempt foreign employees from workplace fees. However, the draft law proposed by Minister L. Enkh-Amgalan regarding hiring foreign labor remains. In connection with this issue, the "VS" column highlights the opposing views of Members of Parliament S. Tsenguun and L. Munkhbayasgalan from the Democratic Party. S. Tsenguun
Member of Parliament There are indeed many issues related to the labor force. However, it is unacceptable to create situations driven by fear, such as spreading claims about Chinese bloodlines or impending Chinese domination, thus diverting the issue from real factors. There had been similar fears leading to the delay of power plant projects by claiming that building a power plant would create a "China town." Important projects have often been stalled by instilling fear of foreign dominance. Those who have obstructed Mongolia’s development are now in parliament withholding progress. This has been the situation since my childhood and remains unchanged today. We cannot govern our country through populism. Mongolia must develop, and major projects must proceed. There are many sensible people in Mongolia who are no longer afraid to speak the truth about the actual circumstances. Therefore, I want to assert that we must courageously move forward with our reforms. L. Munkhbayasgalan
Member of Parliament Two draft laws related to hiring foreign labor were submitted. One of them, submitted by Member of Parliament P. Sainzorig and others, suggested not setting quotas on foreign workers in Mongolia and exempting foreign workers from workplace fees. This bill has been withdrawn. Currently, there is one draft law amending the Labor Force Migration Law proposed by Member of Parliament L. Enkh-Amgalan. This draft has not been supported by the Democratic Party’s caucus or its majority. The draft proposes to bring in foreign workers for the mining sector and to exempt them from workplace taxes. This sector has the highest wages and the lowest labor absorption rate. If the sector employs foreign workers, many Mongolian families will be without income due to unemployment. They are talking about exempting from job taxes. Starting from April 2024, the minimum wage in Mongolia will be 729,000 MNT. A foreign worker would have paid a subsidy of 1,584,000 MNT per month, which will now disappear. This money was meant for the employment promotion fund used to create jobs for Mongolians. Without it, there will be less revenue contributed to the social insurance fund. Moreover, it violates the provision of ensuring the internal labor market stipulated by the National Security Concept. Countries like Germany and Kuwait have hired a large number of foreign workers and exempted them from taxes, setting a wrong precedent. Such countries fail to reintegrate workers after 1-2 years, leading to issues with permanent residents who entered with family and extended family members. Eventually, their labor markets start to loosen.

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Events: Amendments to the Law on Labor Migration to be Discussed

Published: 2024-12-25 | Translated from: ikon.mn

At the Government Palace, the regular Cabinet meeting continues at 08:00. From 12:00 to 15:00, standing committees are meeting. At the Galleria Ulaanbaatar, at 10:00, an event will be held to honor the outstanding child of 2024. At the National Information Center at 11:00, the "Dr. Bae" company, the founder of the "Young Herder" brand, will provide information about their social responsibility initiative. They will organize a 1+1 promotional event for their medicinal balm at Sain Imart and Nomin Hypermarket in Khoroo on December 28-29 during this flu season. At 11:30, "Was the detention of Truth and Justice Party Chairman A. Otgonbaatar a political order?" will be discussed. At 12:00, the Civil Society Organizations will give information about retracting the legal amendments that violate the Constitution of Mongolia. Reminder: Media organizations (Television, Radio, Social and Web pages) must cite ikon.mn as the source when using our information, in any form, fully or partially.

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MONTSAME: Notable Events in Mongolia in 2024

Published: 2024-12-25 | Translated from: montsame.mn

Ulaanbaatar. As we say goodbye to 2024, the National News Agency MONTSAME highlights 10 significant events that took place in Mongolia and promoted the country internationally. Politics: 1. Mongolia celebrates the 100th anniversary of the adoption of its first constitution and the proclamation of the Republic (November 26). This historic day marked the country's declaration of its sovereignty and independence, the first guarantee of human rights and freedoms, and transition to a progressive form of universal government. 2. For the first time, Mongolia's parliament formed with 126 members (June 28). This was achieved after successfully organizing the ninth election of the State Great Khural following Mongolia's transition to a democratic system, using a mixed electoral system. A total of 1,300 candidates from 19 parties, two coalitions, and independents competed in the 2024 regular election of the State Great Khural. The local elections for the provincial, city, district, and district council were held on October 11, with the Mongolian People's Party securing an absolute victory. 3. Former UN Secretary-General and head of the Ban Ki-moon Foundation for a Better Future, Ban Ki-moon, received the "Order of Chinggis Khaan" (November 2). The award was presented for his outstanding contributions to the adoption of the Sustainable Development Goals and the Paris Agreement, as well as his efforts in promoting peace, human rights, justice, and equality, protecting the environment, and advancing green development. 4. The year saw the highest number of state visits to Mongolia. Invited by President Ukhnaagiin Khurelsukh, state leaders from eight countries, including the President of Germany Frank-Walter Steinmeier, President of Belarus Alexander Lukashenko, and President of South Korea Natasha Pircs Musar, among others, made official visits. Additionally, Russian President Vladimir Putin made an official visit on September 2-3 to commemorate the 85th anniversary of the Battle of Khalkhin Gol. Culture and Society: 5. Three exceptional Mongolian cultural and literary monuments celebrated anniversaries: the 800th of the "Chinggis Stone Inscriptions," the 400th of the "Togtokh's Rock Inscription," and the 100th of the "Danjuur Memorial Stupa." These inscriptions are significant contributions by Mongolians to the world's writing culture. 6. Under the patronage of President U. Khurelsukh, the "For a Green Future" World Women’s Summit was held for the first time in Ulaanbaatar (August 22-23). Held on the 100th anniversary of the Mongolian Women's Federation, the summit was the largest in Asia since the Fourth World Conference on Women in Beijing in 1995. 7. Unique artifacts from the Mongol Empire returned to Mongolia for exhibition for the first time in 719 years (July 3 - August 25). The exhibition, "Chinggis Khan: How the Mongols Changed the World," was hosted at the National Museum of Mongolia, showcasing treasures from major European museums and archives, including a letter from Ilkhan Öljeitü to King Philip of France. 8. Mongolia registered its 16th intangible cultural heritage on UNESCO's Representative List of the Intangible Cultural Heritage of Humanity. "The Mongolian Nomadic Culture" was inscribed during the 19th session of the Intergovernmental Committee for the Safeguarding of the Intangible Cultural Heritage held on December 5 in Paraguay. Sports: 9. Mongolia's Paralympic team achieved historic success at the 17th Summer Paralympics in Paris (August 28 - September 9). Competing in six sports, 12 Mongolian athletes won a gold and three silver medals. U. Surenzhav made history by winning Mongolia's first Paralympic gold medal in Taekwondo. 10. The eSports team "The Mongolz" became the first and only Asian team to rank in the world's top 10 in Counter-Strike. The team won prestigious tournaments, including the "Thunderpick Championship 2024," confirming their status as champions.

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Fraudulent "Trips to Mongolia" Spread in Korea

Published: 2024-12-25 | Translated from: isee.mn

Recently, a Youtuber named Soi shared about a new type of travel scam spreading in Korea and urged people to be cautious. Specifically, in Korea, there have been cases where tourists are enticed with promises of "trips to Mongolia" and are then swindled out of money through fake travel agencies, resulting in losses amounting to millions of won. Youtuber Soi himself shared that he lost 2.8 million won while preparing for a trip to Mongolia and found out that his acquaintances were also scammed. According to the victim, three individuals, including N.A, who were preparing to travel, connected with the scammers through social media while recruiting travel companions for a trip to Mongolia. Due to Mongolia's geographic characteristics, groups of six often take package tours that include guides and transportation, making it easier to find companions. The scammers contacted the victims as travel companions, coaxed them into a chat, and then recommended certain travel agencies. They would persuade their victims to use specific travel agencies by saying things like "Someone I know used them and was satisfied" or "Other travel agencies advertise illegally." Soi mentioned, "I came to Mongolia myself, but the scammers give detailed advice as if they know something about Mongolia. It was truly frightening." He also expressed, "I wonder how someone can carry out a scam so carefully. When I asked, I thought they would forget," he explained. However, the travel agency was actually a fake chat room run by scammers, and after the victim A transferred their travel expenses, the connection was cut off and they vanished. The total loss amounted to 2.88 million won.

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Published: 2024-12-25 | Translated from: ikon.mn

A citizen approached our editorial office regarding an issue where unemployment benefits had not been received for over a month after submitting the required documents. When he inquired with the relevant department of his district, he received the answer "There is no funding." To clarify the situation, the Social Insurance General Office stated, "During the first eleven months of 2024, unemployment benefits amounting to 128.8 billion MNT were provided to 28,433 insured individuals. The unemployment benefit is granted for 76 working days and is disbursed in three installments according to the schedule. The Social Insurance General Office fully disbursed the benefits for the period up to October 2024. However, there is a slight delay in the benefits scheduled for November and December 2024. This delay is related to employers not paying their contributions within the legally mandated timeframe. The Social Insurance General Office is addressing the issue by calculating the revenue daily and distributing it to the relevant provinces and districts, with the aim of fully disbursing the scheduled benefits for November and December 2024 by December 2024 and January 2025. Currently, 37,000 employers owe a total of 510 billion MNT in contributions. Conditions under which one can receive unemployment benefits: An insured individual becomes eligible for unemployment benefits if they meet the following requirements: Insurance contributions for unemployment must have been paid for at least 24 months before the decision to dismiss the insured is made, and contributions must have been paid continuously for the last nine months. If the insured individual has previously received unemployment benefits, eligibility is renewed if insurance contributions for unemployment have been paid for at least 12 months. Unemployment benefits are calculated based on the average salary and income of the last three months of contribution payment, with the following percentage and amount issued over a 76 working day period: Duration of contribution payments Percentage for calculating benefits Up to 5 years 45% 5 to 10 years 50% 10 to 15 years 60% 15 years or more 70% Risks arising from employers not paying social insurance contributions on time include the inability to establish pension rights, loss of eligibility for maternity and sickness benefits, inability to access state and private healthcare services, inability to obtain loan services from banks and non-bank financial institutions, and loss of eligibility for unemployment benefits and industrial accident or occupational disease pensions and payments. These risks ultimately lead to reduced pension and benefits for insured individuals. Warning: Media outlets (Television, Radio, Social and Web pages) must cite their source (ikon.mn) when using our information in any form, either entirely or partially.

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Environment

TODAY: The National Committee on Reducing Air Pollution Will Meet

Published: 2024-12-25 | Translated from: montsame.mn

Ulaanbaatar, December 25, 2024. Some events on December 25th: At 09:00, in the library of the National University of Mongolia (NUM): The series of academic conferences on "Tribal Region Studies" of the Academy of Sciences will introduce the history, cultural heritage, and archival documents of the region related to the Yalguusan Khutagt of the Zasagt Khan province. A total of 13 papers from the Academy of Sciences, NUM, National Security Agency, Mongolian University of Education, "Genghis Khan Heritage and Culture" institute, and other universities will be discussed. At 09:00, outside the Capital Prosecutor's Office: A citizen who suffered a loss of property will hold a press conference to seek legal action. Contact: 9091-8818. At 10:00: The parliamentary working groups and standing committees will have meetings. - The National Committee on Reducing Air Pollution will meet. At 10:00, in "Ulaanbaatar Gallery": The "2024 Outstanding Child" event will be held. Contact: 8901-7101. At 10:00: The special meeting of the City Council will be held. Contact: 8909-0657, 8686-3930. At the "ZM" information center: At 11:00: The founder of the "Tughchin Khüü" brand "Doctor Bai" company will provide information on their 1+1 promotion on therapeutic creams during the flu season, taking place at the "E-Mart" in Sanzai and the "Nomin" department store in the district on December 28-29. At 11:30: Information will be provided on whether the detention of "Ünen Ba Zöv" party leader A. Otgonbaatar is a political order. At 12:00: Information from civic organizations on legislative changes that violate the Constitution will be given. - At the General Authority for Border Protection: The historic hall dedicated to the three marshals of the People's Republic of Mongolia will be inaugurated. Contact: 8911-9058. - The 102nd anniversary of the mining industry is being celebrated. - The opening of the "Silver New Year" for children and youth in the capital will take place.

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28 projects being implemented with international aid in the field of environment

Published: 2024-12-25 | Translated from: montsame.mn

During the joint meeting of the Parliament's Standing Committee on Environment, Food, and Agriculture and the Standing Committee on Industrialization Policy held on December 24, a report was presented by Minister of Environment and Climate Change S. Odontuya on the progress and outcomes of projects and programs being implemented with international loans and aid in the environmental sector. She reported that as of 2024, 28 projects are being implemented in the sector with funding from the Global Environment Facility, the Republic of Korea, Germany, the Green Climate Fund, the European Union, Japan, and the Asian Development Bank. Among these 28 projects, 2 to 5 projects each are being implemented in Khuvsgul, Zavkhan, Khovd, Bayankhongor, Khentii, Dornod, and Sukhbaatar provinces. The time from project initiation to completion takes at least an average of 2 years, and the projects implemented this year were approved in 2022 or earlier. Project implementation is not based on administrative or territorial boundaries but instead is determined based on natural zones, ecosystems, and protection regime conditions. The majority of the funding for these projects is directed towards the management of specially protected areas, comprising 53% or 97.5 million USD in monetary terms. Our country needs to continue attracting foreign financing for environmental projects. Moreover, to enhance the efficiency of these projects and programs, a results-based system should be introduced, and the outcomes of the implemented projects should be measured realistically. There should be a unified monitoring and evaluation system for controlling and analyzing project goals, fully aligned with the Ministry of Finance's information database. Allocations of finance for the environmental sector should not only focus on one direction but should also address other important issues such as desertification, climate change, and hazardous chemicals, according to the Minister. Following the Minister's presentation, members of parliament, including G. Luvsanjamts, D. Jargalsaikhan, P. Munkhtulga, S. Zamira, M. Mandkhai, Ts. Iderbat, M. Gankhuleg, and D. Uuriintuya, spoke. They emphasized the need for more precise evaluations based on multiple criteria for projects and programs implemented in the sector. They also stressed the importance of long-term policy measures by the sector's ministry to clearly present the projected outcomes of ongoing projects to citizens and herders, and to provide them with information. Additionally, future projects should be linked to addressing issues related to herder health services and livelihood support in response to the challenges of climate change and harsh winter conditions (dzud). Special attention should be given to herder support, overgrazing issues, and other specific areas. According to the data in the environmental information database, from 1998 to 2023, a total of 107 projects and programs were implemented with 360 million USD spent in the sector. One-third of this funding was allocated to specially protected areas, and 24% went towards addressing climate change.

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Israel's International Development Cooperation Agency to Support the 'One Billion Trees' Initiative

Published: 2024-12-25 | Translated from: montsame.mn

Mongolia's "One Billion Trees" national initiative, initiated by the President of Mongolia, will receive support from Israel's international development cooperation agency. In particular, the "One Billion Trees" initiative will be actively supported and implemented in cooperation with the non-governmental organization serving the community, which has signed a memorandum of understanding with the International Development Cooperation Agency (MASHAV) under the Ministry of Foreign Affairs of Israel. The aim is to improve urban and rural greenery, increase forest resources by planting trees, reduce desertification, and contribute to mitigating climate change. As part of this memorandum, the parties will start planting trees in the Ulaanbaatar city area in the spring of 2025, which will help reduce air and soil pollution in the city. The International Development Cooperation Agency (MASHAV) was established in 1958 to provide humanitarian aid and technological support to countries. This organization actively works to help countries overcome challenges, reduce poverty, and achieve global sustainable development goals.

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Kh. Nyambaatar: Not a Single Area in the Bogd Khan Mountain's Protected Zone Was Fairly or Publicly Auctioned

Published: 2024-12-25 | Translated from: gogo.mn

At today’s government meeting, issues related to the capital were discussed and resolved, with the capital's Governor Kh. Nyambaatar presenting the decisions. During this time, journalists asked him some questions. One of the issues raised was about collecting land fees from households with private houses located in the protected zone of Bogd Khan Mountain. They inquired about how this issue was resolved. Kh. Nyambaatar explained that in May, a proposal was submitted to the Mongolian Parliament to incorporate the settlement areas that have emerged in the protected zone of Bogd Khan Mountain into the administratively-managed lands of Ulaanbaatar, by redefining the borders of these settlements. In localities that have become residential neighborhoods rather than protected zones, it was suggested to certify the land ownership rights of companies and citizens residing there and to triple the land fees. The proposal included a regulation to collect land fees annually. Unfortunately, the Ministry of Environment and the Permanent Committee on State Structure of the Parliament did not support this proposal. Bogd Khan Mountain, as a protected area, should follow the regulations reserved for protected lands. However, the southern part of Ulaanbaatar, along the slopes of Bogd Khan Mountain, is filled with residential house districts. Not a single land area there has been allocated fairly, through public auction or competition. These settlement zones have emerged purely as a result of corruption and abuse of office. Meanwhile, they demand engineering infrastructure, health, education, and public services from Ulaanbaatar city. Given that settlement zones have already formed and they demand city-standard services, it was proposed to formally allocate these lands through the city and to annually collect land fees, but there was no support. However, this issue will be raised again in next spring's parliamentary session. I publicly informed at the time that lobbyists who obtained land for construction through various means were influencing the process. Most of the private residential complexes in the Zaisan gorge and Arcat gorge were initially permitted as "camping sites" or "hotels." These areas were acquired under such names to evade land fees after building private houses. The proposal prohibited this and included a measure to prevent the allocation of land in the Bogd Khan Mountain's protected area again.

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Innovation

Exploring Opportunities for Code Export

Published: 2024-12-25 | Translated from: montsame.mn

Ulaanbaatar. In 2025, the Ministry of Digital Development, Communications, and Information Technology (DDCIT) of Mongolia aims to export state-owned source codes, specifically seeking collaborations with Kyrgyzstan and Uzbekistan, and to expand its international cooperation. During a prompt meeting with the minister of DDCIT, the implementation of the year's plan was evaluated, and the strategic plan for 2025 was discussed. It was highlighted that the government's 100-day plan is progressing well. Specifically, the establishment of a drone training and development zone has begun. Testing zones for drones are to be set up in Darkhan-Uul province, Nalaikh, and Bayanzurkh districts. Last year, 4,693 government websites were integrated into www.gov.mn, starting the development of a virtual zone to provide economic support to IT companies. Furthermore, by joining the international payment system Apple Pay, Mongolia has enabled transactions in tugrik and expanded the forms of e-commerce. The number of E-Mongolia users has reached 1.9 million, with 1,255 governmental e-services, saving citizens 1.1 trillion tugrik. The feasibility study for the national satellite project has been developed, and the construction of a ground station has commenced. Additionally, a unified control panel (Dashboard) of the communication network is being created, which maps the fiber optic connection, its length, cellular base stations' locations and capacities, and monitors these by administrative unit (province, district). Furthermore, a study to eliminate overlaps in sector laws has been conducted, organizing amendments and revisions to these laws, as directed by the sector minister during the meeting. The DDCIT has announced that in January 2025, a concept focusing on the quality rather than the quantity of state e-services will be introduced, and the organization of transferring some state services to the private sector and professional associations will take place.

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Ensuring Cybersecurity by Empowering Citizens

Published: 2024-12-25 | Translated from: montsame.mn

Initiated by the Standing Committee on Innovation and Electronic Policy of the Parliament, the Ministry of Communications and Information Technology, the secretariat of the National Cybersecurity Council, and the National Center for Combating Cyber Attacks and Incidents, a meeting was held with representatives of the private sector on the topic of "Current Status of Cybersecurity, Legal Environment, and Policy Regulatory Framework." Chairman of the Standing Committee on Innovation and Electronic Policy, J. Zoljargal, noted, "The legal framework for cybersecurity (CS) has been established, and the foundation has been laid. However, we need to improve user education, empower users, and especially integrate the participation of the private sector in ensuring CS and working together with them. What legal regulations exist for this? We need solutions for improving the legal environment related to information sensitivity and how to proceed to the next level. We will reduce risks by ensuring multilateral participation." Acting Secretary of the Ministry of Communications and Information Technology, P. Altan-Od, stated, "The foundation law for ensuring cybersecurity was passed in 2021, and measures are being taken to prevent cyber crimes in the digital environment. Four organizations have been authorized to conduct cybersecurity risk assessments. As a result of ongoing measures, our country's cybersecurity index has advanced by 17 positions. We are expanding international cooperation in this direction, initially working with JICA." Director of the National Center for Combating Cyber Attacks and Incidents, S. Javkhlan, highlighted, "In the same period last year, 107,913 suspicious incidents were recorded, while this year the number increased to 147,738. The number of potentially attack-related cases increased by 40%. Although the legal framework for ensuring CS has been established, other aspects have not changed significantly; much work remains to improve and enhance it." Representatives attending the meeting discussed how to evaluate citizen information, what to do in case of a personal data breach, whom to contact, what measures to take if an attack occurs, and what rights each citizen has. Currently, when people lose their information, they do not know what actions to take. Although citizens can file complaints with the police regarding the protection of personal information, the process remains ambiguous, and an assessment of the law is planned for the coming year to address accountability and clarify the situation. Additionally, discussions were held on collaborating with the private sector in the field of cybersecurity, performing audits, conducting risk assessments, identifying services that can be provided, and determining whether there are government solutions for protecting organizations. The private sector requested attention to tax incentives, reliefs, and reductions from the state, specifically addressing VAT incentives, customs duties, increasing public knowledge and understanding, preparing citizens, and what to do about the dual 20% tax. It was noted that knowledge and experience about cybersecurity vary between urban and rural citizens, and programs need to be implemented at all levels of educational institutions, along with organizing campaigns and empowerment initiatives. The Ministry of Communications and Information Technology also highlighted the need to increase the responsibility of organizations using public information.

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Our Country Drops One Rank in Digital Competitiveness

Published: 2024-12-25 | Translated from: montsame.mn

According to the Ministry of Digital Development and Communications, Mongolia's digital competitiveness ranking has dropped one position from the previous year, placing 64th out of 67 countries. Last year, Mongolia scored 43.03 points, but this year it decreased by 1.72 points to 41.31. This year, Singapore leads in digital competitiveness, followed by Switzerland in 2nd place, Denmark in 3rd, the USA in 4th, and Sweden in 5th place. Last year, the USA was in the lead, and Singapore was in 3rd place. Meanwhile, Ghana, Niger, and Venezuela ranked lowest in overall digital competitiveness. In terms of the main categories, Mongolia fell 6 places to 62nd in the "Knowledge" category, dropped 6 places to 55th in the "Technology" category, and fell 2 places to 64th in the "Future Readiness" category. According to the "World Digital Competitiveness Report 2024," Mongolia benefits from being ranked 24th in the proportion of educated women, 1st in female researchers, 6th in investment in the telecommunications sector, 8th in high-tech exports, and 7th in smartphone ownership. However, it ranks 66th in international experience, 66th in intellectual property rights, 67th in the level of big data analytics usage, 66th in public-private partnerships, and 67th in knowledge transfer. The report involved 14 Asian and Pacific countries, with Mongolia ranking 14th. Among the 23 countries with a GDP per capita of less than 20,000 USD, Mongolia is ranked 20th. The International Institute for Management Development's World Competitiveness Center publishes the "World Digital Competitiveness Report 2024." This year's report is based on 54 criteria belonging to three categories: "Knowledge," "Technology," and "Future Readiness," across nine subcategories. The sources include statistical data and surveys. The report shows how countries are innovating and adapting to technological advancements in government, business, and society.

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Research on National Satellite Launch Completed

Published: 2024-12-25 | Translated from: montsame.mn

Preparations are being emphasized as the National Satellite Project is set to be submitted to the spring session of the Parliament next year. Minister of Digital Development and Communications Baatharkhuu met with France's Ambassador Extraordinary and Plenipotentiary to Mongolia, Madame Corinne Pereira, and representatives from Thales Alenia Space last week to discuss this matter. Specifically, Minister Ts. Baatharkhuu stated, "We have completed the revision of the feasibility study for the National Satellite Project and will present it in the MPP group meeting. The Ministry of Finance has finalized the loan negotiations. Based on consultations with our advisory services company, we plan to submit this project during the spring session of the Great State Hural." He noted that although members of Parliament have varying opinions on the national satellite project, the government is inclined to move the project forward. Thus, he requested cooperation with the French Embassy in providing accurate information to both MPs and the public. Ambassador Corinne Pereira expressed her understanding that funding for the national satellite project had been cut from the Mongolian budget, yet she was pleased to see the project's progress moving forward. She stated that the French Government fully supports the project and plans to coordinate efforts with Thales Alenia Space to provide accurate information to the public starting in January. Therefore, the French Government, Embassy, and Thales Alenia Space are committed to fully supporting the advancement of the national satellite project, according to the information reported by the Ministry of Digital Development and Communications.

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Health

If a Child Under 5 Contracts Meningococcus, It Progresses Rapidly

Published: 2024-12-25 | Translated from: gogo.mn

One case of meningococcal infection has been recorded in Ulaanbaatar city and is being treated at the National Center for Infectious Diseases. If a child aged 0-5 contracts meningococcus, the condition progresses rapidly. Parents and guardians, please protect your young children from meningococcal infection by implementing the following recommendations and remain cautious. Source: General Department of Education

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Today's Stories

Politics

Economy

Diplomacy

Infrastructure

Society

Environment

Innovation

Health

Politics

Government Presents Strategically Important Projects Included in 14 Mega Projects to the Parliament

Submission of the Bill to Amend the Law on National Wealth Fund

Foreign Worker Legislation and Mega Projects in Mongolia

SG: The strategically significant Gashuunsukhait-Gantsmod port railway, Mongolia-France joint uranium project to be tabled in Parliament

Ts. Baatarkhuu: The Democratic Party Discusses Advancing Uranium and Railway Connection Projects

Introducing the Decisions Made in the Government Meeting

MPP Supports Discussion on Railroad Agreement and Contract with Orano Mining

The MPP and DP groups in the State Great Khural hold an extraordinary meeting to discuss the agreement with Orano and the cross-border railway issue

Economy

N.Uchral: When the uranium mine opens in 2028, every Mongolian will benefit

Approving the Adjustment of the Capital's Budget with Revenue of 3.8 Trillion and Expenditure of 5.9 Trillion

Bogd Bank Officially Begins Partnership with FMO

N. Uchral: The uranium project may not satisfy certain groups whose interests are affected, but the country's economy must progress

N.Uchral: During Mining Extraction, Over 90% of Workers Will Be Mongolian Citizens

Survey Conducted to Assess Access to Financial Services

Copper Concentrate Prices Pose Risks in Exchange Trading

Submitted Bill on Amendments to the Credit Information Law

E. Batshugar: Submitted a draft law to completely eliminate the well-known blacklist of the Mongolbank

World Bank's Beef and Dairy Cattle Program Ready to Launch

Industrial Sector Production Increases by 1.8 Trillion MNT

Economic, Budget, and Investment Committee Discusses Budget

Diplomacy

Democratic Party receives update on contract with "Orano Mining"

Discussion on Ratifying the Governmental Agreement with Russia

Discussion on the Progress of the Agreement with Orano Mining

DARKHAN-UUL: Cooperation with Ordos City of Inner Mongolia Autonomous Region

Infrastructure

"Gashuunsukhait-Gantsmod" Railway Agreement Must Be Expedited to Avoid Losing Major Opportunities

Connecting the Gashuunsukhait-Gantsmod Railway with a Unified Design and Establishing Long-term Coal Agreements

B. Choijilsuren: Russians Estimated the TPP III Expansion at 1.3 Billion Euros, We Think That's Expensive

Resolution to Accelerate Railway Connection Project at Gashuunsukhait-Gantsmod Border Point

H. Nyambaatar: One percent of corporate income tax will be spent on improving infrastructure and reducing air pollution in the capital

Gashuunsukhait-Gantsmod Port Railway Project Resolution Submitted to Parliament

Submitting a Resolution to Establish the Gashuunsukhait-Gantsmod Border Railway Agreement to Parliament

Discussed the Activation of Border Port Operations

Tuvshin Tuvaan: Transborder Railway to Increase Coal Exports by 40 Million Tons

Tuvshin Tuvdaan: Coal Exports to Increase by 40 Million Tons with the Connection of the Gashuunsukhait-Gantsmod Railway

The Government Declares 2025 as the Year to Support the Development of Ulaanbaatar's Infrastructure

Locations of Power Outage Today from 18:00 to 20:00

The Budget Standing Committee Did Not Support the Draft Law on the Design Project for the Expansion and Modernization of "CHPP-3"

N.Altankhuyag: The expansion of Power Plant 3 can be done for 800 million dollars, not 1.3 billion dollars. It is concerning that its design is being presented to parliament

A Procedure to Resolve Urban Infrastructure Issues Using 1% of Corporate Income Taxes Has Been Approved

The Housing Complex in the Selbe Sub-center Has the Highest Budget Allocation of ₮1.6 Trillion

The 2025 Capital City Budget Approved

Society

Foreign workforce: To hire or not to hire

Events: Amendments to the Law on Labor Migration to be Discussed

MONTSAME: Notable Events in Mongolia in 2024

Fraudulent "Trips to Mongolia" Spread in Korea

Social Insurance General Office: Unemployment benefits to be fully provided by January 2025

Environment

TODAY: The National Committee on Reducing Air Pollution Will Meet

28 projects being implemented with international aid in the field of environment

Israel's International Development Cooperation Agency to Support the 'One Billion Trees' Initiative

Kh. Nyambaatar: Not a Single Area in the Bogd Khan Mountain's Protected Zone Was Fairly or Publicly Auctioned

Innovation

Exploring Opportunities for Code Export

Ensuring Cybersecurity by Empowering Citizens

Our Country Drops One Rank in Digital Competitiveness

Research on National Satellite Launch Completed

Health

If a Child Under 5 Contracts Meningococcus, It Progresses Rapidly

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