·       President Obama said to President that he is amazed at achievements Mongolia made at strengthening democracy

·      President Obama also noted to President importance of concluding Transparency agreement, discussed visit of Vice President and State Secretary of USA to Mongolia within this year and gratefully accepted invitation of the President to visit Mongolia

·     Oyu Tolgoi LLC Board of Directors organized its quarterly meeting on June 9-10 2011

The Board of Directors approved newly elected members in the Board including Peter Nicholls, General Manager of Copper Group, Rio Tinto and Cameron McRae, President and CEO of Oyu Tolgoi LLC. These newly elected members replace Peter Meredith and Bill Wald, the former Board members. As of present, performance of Oyu Tolgoi project construction already reached 23%, of which concentrator construction reached 32% enabling the exploitation and mining operation for the first phase commence prior to dates stipulated in the Investment Agreement and the Board of Directors highly commended the progress.

·      there is active PR campaign in local dailies by Youth of Good Times NGO against controversial rivers and forests law.

MARKETS

    Bank of Mongolia MNT rate 1258.37 today, same as yesterday

MSE equities: index declined further to to 30.23% YTD

·      Remicon concrete (MSE:RMC)- massive trade with volume of 2015102 shares today, closed at 119MNT/0.0945USD, 52 week range 39-149MNT , market cap 12M USD

·      Continued reports in media over management change tussle at Bagannur Coal(MSE:BNG)

·      FRC rep stated to media that it is receiving 4-5 complaint application per day over “ share thefts”,i.e. sale  of shares without authorization

Mongolian juniors on ASX: Erdene Commences Drilling on Mongolian Copper-Gold-Silver Projects, Provides Project Updates and First Quarter Financial Results, down -3.12% to 0.93 ( 3m -21.19%, but +161.97% yoy)

DEALS:

EZNIS AIRWAYS BOUGHT 93 SEAT AVRO85 AIRPLANE, ITS FLIGHTS STARTED

MAIN STORY: MONGOLIA AND CHINA CONCLUDE STRATEGIC PARTNERSHIP

According to Government of Mongolia,

HISTORIC PATHWAY BETWEEN MONGOLIA AND PRC

1960 – FRIENDSHIP AGREEMENT( YU.TSEDENBAL AND ZHOI ENLAI)

1994 – FRIENDLY RELATIONS AGREEMENT (P.JASRAI AND LI PENG)

2003 – GOOD NEIGHBORS STATEMENT(N.BAGABANDI AND HU JINTAO)

2011- STRATEGIC PARTNERSHIP STATEMENT ( S. BATBOLD AND WEN JIABAO)

LOANS AND ASSISTANCE

·      Remainder of 320M RMB unused grant is to be spent on student campus town

·      500M USD soft loan for agriculture, infrastructure and social sector

MINERAL RESOURCES AND ENERGY

·      PM proposed establishment of  General Agreements on regulate issues related to conditions, transportation and environment of certain products in view of expansion of trade in coal, power and fuel

·      PM proposed establishment of General Agreement oN Export and Import of Power and support enterprises that supply power within framework of the Agreement

OT

·      PM requested help to OT LLC on issue of getting power from PRC

·      Support mutual investment, a road has been opened for Mongolia to make investment into PRC

·      It has been agreed that negotiations immediately will start  between related organizations on supply power from PRC

TT

·      Policy is adhered to introduce interests of neighbor countries in a sense that TT has significance of to be resolved together with issue of markets and transit transportation

·      In general,  PRC is main market for OT and TT therefore Mongolia will support participation of PRC enterprises, in this sense active participation of PRC-supported Shenhua in international consortium to implement TT project has been discussed

RAILROAD

·      Opinions have been exchanged on active cooperation in building of railroads

·      If necessary actively work in a field of improving and updating previously established agreements and documents

Infrastructure

Sides are to actively research possibilities on

·      PRC investment into 100,000 apartment project

·      UB road improvement

·      Russian border-UB-Chinese border speedway

·      UB-BJ speedtrain

·      Increase turnover in transit transportation

Parties are to cooperate on issue of

·      transit transportation and additional ocean access

    improvement in capacity of border crossings

Moverover ,

·      PRC supports Mongolia’s membership is ASEAN

·      PRC congratulated Mongolia establishment of International Research Institute of Land-Locked Countries under auspices of UN in Mongolia

·      Mongolia expressed interest in joining PRC-Japan-ROK cooperation mechanism

Petroleum

·      Long term cooperation has been agreed on issue of petroleum extraction, processing, supply and production of petroleum products and fuel

·      PRC is to favorably consider request of Mongolia for financing and technical support for supply of final petroleum products and construction of petroleum processing plant

·      PM proposed taking petroleum package products according to PSC in exchange for crude exports to PRC

·      Proposed refining crude from third countries in PRC and importing some part of output

GAS PIPELINE

    Mongolia is discussing with PRC and Russia proposal for gas pipeline and high voltage powerline through Mongolia’s territory in manner that beneficial to all three countries, PRC to actively consider it