Mongolia - The Worldfolio

#Mongolia
Our World
Monday, November 17, 2014
MONGOLIA
The return of the empire as
Asia’s new nexus
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Astonishing rates of economic growth, ambitious infrastructure development plans, untapped investment
opportunities and a thriving democracy combine to put Mongolia in the global spotlight
T
here are some places on earth that only
a few of us have ever
visited or even seen
in pictures but whose mere
names have captivated generations of would-be adventurers. Mongolia is one of them.
This huge country sprawling
between Russia and China on
the arid plains of central-eastern
Asia is a very old nation, but also
a very young one.
The oldest empire that ruled
this land and its tribes of nomadic herdsmen dates back
to the second century before
Christ, but its mightiest and
most revered emperor is Genghis Khan (1162-1227), as evidenced by the truly awesome,
131-foot high equestrian statue
of Khan erected in 2008 on the
steppes outside of the capital.
However, Mongolia as we
know it today was born only
in 1990 in the wake of the fall
of the Soviet Union, and half
of its scarce population of 2.9
million is of the same age: just
under 25. For a 20-something,
landlocked nation squeezed
between two of the planet’s
most formidable modern empires, Mongolia has achieved
a lot: a multi-party democracy
and unprecedented prosperity.
Indeed, the country sits on
an estimated $1.3 trillion of
natural resources, to which it
owes in large part its phenom-
enal growth of recent years:
17% in 2011, 12.4% in 2012, and
11.7% in 2013.
“Our achievements have
been noticed and people are
interested: Mongolia is seen as
a future economic power and
a very important connection
point in northeast Asia’s eco“Mongolia is
seen as a future
economic
power and a
very important
connection
point in
northeast
Asia’s economic
prosperity”
Luvsanvandan Bold,
Minister of Foreign Affairs
nomic prosperity,” says Minister of Foreign Affairs, Luvsanvandan Bold.
Mongolia’s large mineral and
precious metal deposits have
attracted foreign investors and
enabled it to transform itself
from a state-controlled, socialist
economy into a booming free
market, thanks in large part to
mining, which represents about
a third of its GDP and 90% of
its exports. According to the
World Bank, this growth has
translated into benefits for the
people and poverty has receded
over the past 10 years, although
it was still at 27.4% in 2012. Substantial progress has also been
made in regard to several Millennium Development Goals at
the national level.
Nowhere is this more visible
than in the capital, Ulaanbaatar,
where most of the population
lives. Long a dusty trading post
for nomad merchants, it is now
a vibrant (albeit still dusty) city
that embodies how Mongolia
sees itself: a fascinating fusion
between ancient traditions and
the modern, Western way of
life. Where else would you find
an Irish pub called The Grand
Khan, where scores of expats
flock in the evening for a beer,
except between the 1st and
15th of every month when alcohol is not sold?
“Mongolian people are very
open. We welcome visitors to
our beautiful country, to experience our culture, arts, customs
and traditions. Enjoy the beauty
of nature and the beauty of the
mind of the Mongolian people!” says the First Lady, Bolormaa Khajidsuren.
But managing the opening
of the economy while maintaining sovereignty over its
resources has proved to be a
delicate exercise for Mongolia.
It has suffered from a decline
in China’s demand in mineral
products and several shocks in
global commodity prices.
There was also a dispute
between Mongolian authorities and mining company
Rio Tinto over a tax bill related to the Oyu Tolgoi copper mine. The $6.5 billion
Oyu Tolgoi project will produce more than 300,000 tons
of copper concentrate a year
“there will be
more changes in
the mining sector
and a clearer,
more transparent
framework for
companies who
choose to invest
here”
Tsakhiagiin Elbegdorj,
Mongolian President
once construction is fully
completed. It is expected to
boost Mongolia’s economy
by a third by 2020.
Furthermore, an investment
law passed in 2012 to restrict
foreign investors (read China)
from acquiring a majority
stake in companies operating
in certain strategic sectors
such as mining and telecommunications, backfired. As
overseas companies delayed
new projects, foreign direct
investment shrank by half in
2013 and by 70% over the first
six months of 2014.
In a bid to woo back foreign
investors, authorities swiftly
enacted a new investment law,
in November 2013, eliminating previous restrictions, and
in July this year, Parliament
approved changes to the 2006
Minerals Law. Amendments
include widening the proportion of Mongolia’s area open to
mining and exploration from
8% to 20%, removing a 2010
ban on new licenses, and extending the period of exploration from nine to 12 years.
Moreover, it was announced in
September this year that the dispute over the all-important Oyu
Tolgoi mine had been solved.
With a flurry of projects currently underway in infrastructure development, telecoms,
construction, tourism, without
mentioning mining, Mongolia
is eager to show the world it’s
ready for business. One important partner is the United
States, which Mongolia calls
its “Third Neighbor” – the first
and second ones being China
and Russia –, with whom it
has signed several agreements:
an Overseas Private Investment Corporation agreement,
a trade agreement, a bilateral
investment treaty, and a trade
and investment framework
agreement. Mongolia is a strategic ally for Washington in a
region where it has had very
little influence historically, and
it is to be noted that the Asian
giant sent troops to Iraq between 2003 and 2008 as well as
to Afghanistan.
“This is an open and transparent country where Americans are welcome,” says President Tsakhiagiin Elbegdorj.
“The people of Mongolia are
constantly demanding changes
for the better. Doing business
in Mongolia is also changing;
there will be more changes in
the mining sector and a clearer,
more transparent framework
for companies who choose to
invest here. Some people say
that information is everything,
knowledge becomes the global
demand, not only knowledge,
but also transparent and accountable information, and
this is what we are striving for.”
A UNITED WORLD SUPPLEMENT PRODUCED BY:
Fernando Mora, Project Director
Paula Marmol, Project Coordinator
Andrew Machaj, Regional Director
Matteo Trastevere, Project Assistant
Lucas Nuttal, Project Assistant
Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content
MONGOLIA
2
Distributed by USA TODAY
Ripe investment opportunities
in road sector development
Mongolia’s underdeveloped road sector has great potential to be an engine for the country’s socio-economic growth. The National
Development Strategy looks to help achieve this potential, while the government also eagerly invites foreign companies to invest in projects
“We’re looking
for investors in
mining, energy
and transport
infrastructure for
our $50 bn mega
projects”
Amarjargal Gansukh, Minister of
Road and Transportation
“The government
has established a
road development
plan and is willing
to provide jobs to
road construction
companies”
T. BYAMBAA, President of
Mongolian Road Association
“we are pursuing
a policy to
substitute import
goods in the
construction
sector”
Bayarsaikhan Tsevelmaa,
Minister of Construction & Urban
Development
“The promotion
of infrastructure
development
in mongolia is
crucial”
Enkhjargal Jumdaan,
President of Nasnii Zam
M
ongolia’s National
D e v el o p m e nt
Strategy considers
road infrastructure to be a key instrument in
fostering regional development
and hopes to have an entire national paved road network
(6,990 miles) completed by
2021. In addition to the $300
million that the Mongolian
government has already allocated for this grand undertaking, foreign investors
are in high demand to help
finance related projects.
“We are looking for investors in mining, energy and
transport infrastructure for
the $50 billion mega projects
that we are going to do in the
next 10 years,” says Amarjargal Gansukh, Minister of
Road Transportation.
Like his peers in the road
sector, Mr. Gansukh believes
in the huge potential the sector has to serve as a catalyst
for further development, the
creation of jobs, and greater
interconnectivity between
Mongolia and its neighbors
– something which is direly
needed in a country where
rural to urban migration has
severely impacted its demographics.
“Ulaanbaatar city was
planned for 500 to 600 thou-
“in 2014 we have
heavily focused
on the road
network for the
six provinces and
infrastructure
engineering
structures”
Bayarsaikhan Tsevelmaa,
Minister of Construction & Urban
Development
sand dwellers,” says Bayarsaikhan Tsevelmaa, Mongolian Minister of Construction
and Urban Development.
“But in the last years, due to
migration from urban areas,
the city currently has more
than 1 million dwellers. As a
result, we emphasize the importance of developing not
only Ulaanbaatar city, but
also other cities around the
capital city including Darkhan, Baganuur, Choir and
Zuun Mod.”
In addition to government
support for its road expansion projects, the sector also
benefits from the assistance
of the Mongolian Road Association (MRA), a non-profit,
non-governmental organization established in 2008.
Last year, the association organized the first annual Road
Expo Mongolia, an event
which united a multitude of
companies and distributors
to showcase their technologies and services.
“The world’s latest road
technologies and equipment
have already been imported
to Mongolia, but most people
are still not well acquainted
with them,” explains MRA’s
president, T. Byambaa. By
creating events like Road
Expo, he hopes to show
Mongolians that the sector’s
development is a wellspring
of untapped potential and a
prime means of stimulating
employment, providing more
efficient transport of mining
resources to foreign markets,
and fostering broad-based
economic growth.
and their foreign neighbors
more convenient ways to
interact. There is currently
one 1,740-mile highway that
spans the width of the country and essentially begins in
Tokyo and ends in Istanbul,
though a more complex network of roads connecting
different areas of Mongolia
to one another would be of
particular benefit to a variety of local sectors.
For instance, greater access to paved roads will allow Mongolians to expand
the scope of land they can
extract natural resources
from. Nasnii Zam’s president
reveals that the country is
now only exploring and extracting resources from regions of the South Gobi and
other southern provinces,
though the potential to mine
more would be tremendous,
if the appropriate roads in-
frastructure allowed for it.
“The promotion of infrastructure development in
Mongolia is crucial,” he asserts. For everything from
mining to agriculture –
which is still a very prominent industry in Mongolia,
“it will give equal development opportunities to all
economic and industrial sectors,” he says.
To date, Mr. Jumdaan’s
company has paved over
430 miles of Mongolian
roads and more than 6,500
feet of bridges. Now taking
to the skies, Nasnii Zam has
recently become involved in
one of the biggest construction projects in Mongolia
– the construction of a new
international airport in the
Khushig Valley in the Tuv
province, for which it is collaborating with the likes of
Samsung.
Roads for a
lifetime
Together with other road builders, Nasnii Zam has embarked on
the construction of the Millennium Road Project that will connect
Ulaanbaatar with its two big neighboring countries
F
or the past 13 years,
Nasnii Zam, a company whose name
translates as “Roads
for a Lifetime,” has been
engaged in the business of
pioneering world-class road
construction across Mongolia. Now with over 500
employees and its own asphalt factories, including a
concrete mixing facility, a bitumen storage shop, and its
own railway for transporting the building materials it
produces, the company has
grown both in size and capacity.
As the company’s president, Enkhjargal Jumdaan
points out, when Mongolia’s
road construction sector
first started to take off, it was
only possible to construct
about 21 miles of roads per
year. Now, just over a decade later, that figure has in-
creased to over 1,120 miles,
and Nasnii Zam continues
to pave the way with several
very ambitious road-buildNaznii Zam’s
president
Enkhjargal
jumdaan says
that from an
initial 21 miles
per year, the
capacity of road
construction
today in
mongolia has
reached 1,120
miles per year
ing projects in the works.
At present, the company
is focused on furthering the
goals of “Millennium Road”, a
project set forth by the Mongolian government which
aims to connect the 12 rural
provinces of Mongolia with
the country’s capital city,
Ulaanbaatar, by 2016. “For
now we are planning to connect six province centers”,
says Mr. Jumdaan. “However, Mongolia has a territory
of approximately 1.5 million
square kilometers (580,000
square miles). To connect all
21 provinces of the country
with paved roads is the eventual objective of the project.”
Mongolia’s strategic location between China and
Russia gives it several very
favorable geopolitical advantages that the addition
of paved roads will only enhance. Beyond allowing rural residents easier access to
the country’s capital, more
paved roads are expected
to stimulate the development of international transit, giving both Mongolians
Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content
MONGOLIA
Distributed by USA TODAY
3
Investors sought for a promising future
Public Road uses Western standards in building and paving roads to last for the long-term, while Gashuuni Gol and Map Road bring new technology to
the table to further the sector and contribute to the government’s ambitious road targets
M
ongolia’s road development plans
are highly ambitious, yet thus far,
things are seemingly right on
track. “As of this year, 23%
of roads are paved, which is
quite close to the plan,” remarks Munkhbaatar Kh, Director of Public Road. However, with a target of building
an additional 7,600 miles of
road by 2020, the country’s
road construction companies have quite the challenge
set out for them.
Mr. Munkhbaatar explains
that the biggest obstacle to
meeting the objectives is
finding adequate financing. “We all depend on the
government budget, economic prosperity and international mining companies,”
he says. “Once the financing
is decided, we need to prepare human resources and
equipment. As for Mongolia, which is a small country,
human capital is one of the
major issues as well.”
Public Road looks abroad
for expertise and financing,
especially to the U.S. – which
like Mongolia, has vast expanses of largely unpopulated land between cities
– and Europe. “Our foreign
relations are excellent. We always attend human resource
training programs. We have
an exchange program with a
German corporation and we
receive specialists from this
association and get training
on human resources,” says
Mr. Munkhbaatar.
“For investors from developed markets, my message is
that the Mongolian road sector has a promising future.
And in order to penetrate
this market, we pursue longterm strategies compared to
other companies,” adds the
Director.
Mr. Munkhbaatar’s company, founded at the turn of
the decade, also looks beyond
the region for techniques and
equipment. Indeed, its proposal for road management
based on European standards
won approval from the Mongolian Development Bank,
which financed two of Public
Road’s early projects.
“Our history may be short
but our future will be long.
We are the only ones adopting a high level of project
began talking to the Ministry
of Road and Construction to
make road project management the standard in our sector. I presented a document
on project management
standards that I’d worked on
privately. It takes us one step
closer towards excelling at
road project management.”
Speaking about upcoming projects, Mr. Munkhbaatar says the company is
looking at taking part in the
construction of the Chinggis
International Group’s Mongolian Millennium Highway,
which will span the entire
width of the country from
association and started preparing our human resources,”
he says.
Public Road’s Director
brings to the table not only
years of experience in the
road sector, but also a background in economics – a
unique characteristic in a
Mongolian road company
head. Mr. Munkhbaatar
points out that its three top
priorities also set Public Road
apart from the competition.
“The three main principles for our company are
firstly, to work in an environmentally safe manner.
Additionally, one of the biggest issues for Mongolian
roads is the quality. Thus,
we give the second highest
priority to quality. Another
problem in road projects
is that they’re not finished
within the time frame. This
is our third principle, exemplified by the fact that all the
projects we have executed
were completed before the
deadline.”
Gashuuni gol:
PionEers in paving
roads
Public Road introduced to Mongolia modern Western standards for road
management and maintenance
standards to adapt to the
environment of Mongolia.
We are pioneers in introducing developed and Western
standards; we don’t use the
outdated Russian standard,”
explains Mr. Munkhbaatar.
“For example, simply filling
the road holes was a Russian
standard at the time of the
socialist budgetary policy. We
east to west. Public Road’s
possible 12-mile chunk
would connect to the new
airport, says the Director.
In addition to building and
paving roads, Public Road
also does soil preparation,
and thus, Mr. Munkhbaatar
sees potential in working in
the railway sector. “We have
recently established a railway
As part of the government’s
Road Development Plan, local firm Gashuuni Gol will
pave 18 miles of road between
Undurkhaan and Choibalsan,
two regional towns of the
Khentii province in the East
of Mongolia.
The company’s GD, Duger
Altantsetseg, explains that
the project will incorporate a
new technique pioneered by
her company. Instead of using crushed rocks and small
stones as a foundation for
construction, Gashuuni Gol
has started using a 20cm thick
special cement reinforced
concrete foundation layer
that can better withstand the
harsh Mongolian weather. It
is just the beginning of several
new high-tech improvements
that the company hopes to
incorporate with the help of
foreign partners.
“With advanced technology there will be no limit to
build the roads that Mongolia
needs, and we will be there to
do it,” she says.
map road’s path
for development
Since its establishment nearly
a decade ago, Map Road has
build up a successful track
record as an assistant executor on several infrastructure
projects, specializing in artificial facilities. Now with solid reputation under its belt,
it hopes to become a direct
contractor and collaborate
with foreign companies.
According to the Executive
Director, Mr. Munkhbaatar,
one of Map Road’s main
challenges is investment. He
explains that his company
currently relies primarily
on projects financed by the
state, which limits the scope
of work it can take on. With
the help of foreign investment, the company could
branch out into concession
tenders, or projects where
companies execute a project
with their own finances.
“Our company’s mission
is to ‘Create together and
develop together,” says Mr.
Munkhbaatar. “We seek U.S.
partners to help us to become one of the main road
contractors in Mongolia.”
“For investors
from developed
markets, my
message is that
the Mongolian
road sector
has a promising
future. And in
order to penetrate
this market, we
pursue longterm strategies
compared to other
companies”
Munkhbaatar Kh,
Director of Public Road
“With advanced
technology there
will be no limit to
build the roads
that Mongolia
needs, and we will
be there to do it”
duger altantsetseg,
General Director of Gashuuni Gol
Award-winning company for
international partners
Arts Suvraga LLC executes the first 100% Mongolian made project: the construction of the Oyu Tolgoi Airport
Mongolia’s underdeveloped
road, transport and buildings infrastructure has great
potential to boost the country’s economic growth, and
blossoming construction company Arts
Suvraga LLC, with
the help of foreign
investment, is up
to the task.
The awardw in n in g
c o m p a n y,
established
in 1999 and
based
in
the capital Ulaanbaatar, lists
the successful construction
of Oyu Tolgoi Airport, which
opened in February 2013, as
its flagship project but has
also overseen successful assignments including laying
road junctions, the construction of a hospital and the
building of apartment and
office blocks.
The secret to the company’s
success is cooperation with
partners, domestic and foreign, and Shajinbat Altansukh,
Director of Arts Suvraga, says
these partnerships, especially
with companies from the U.S.,
will offer mutual benefits and
help Mongolia improve its infrastructure.
“Any cooperation is based
on mutual benefits,” says Mr.
Altansukh. “The economic
growth of Mongolia is just
about to start. So I will be open
to any type of cooperation with
United States companies and
investors.”
The construction of the Oyu
Tolgoi Airport became the
first case in Mongolia where
a Mongolian company with
Mongolian engineers and em-
ployees had executed such
a project. That is a source of
pride for Mr. Altansukh and
it was made possible thanks
to “great cooperation” with
American construction giant
Fluor.
Arts Suvraga, which has won
awards for its safety record and
employs up to 1,000 workers
during the peak season, is now
working on a railway project
and housing development.
Continued cooperation with
American partners will only
help the company, and Mongolia, achieve its goals.
“Our company’s
mission is to
‘Create together
and develop
together’. We seek
U.S. partners to
help us to become
on of the main
road contractors
in Mongolia”
Mr. Munkhbaatar,
Executive Director of Map Road
Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content
MONGOLIA
4
Social growth target
of new projects
National Developer
paves the way for
national development
Established in 1991, Odcon Holding is an example of how the construction industry
is contributing to the nation’s social development, as demand for affordable housing grows in Mongolia
Local road construction and maintenance firm National Developer is an active and
critical player in the state’s ambitious plan to build thousands of miles of new roads
Mongolia is the 19th largest
country in the world in terms
of area and while Ulaanbaatar
faces problems with overcrowding and smog, its rural
areas are the most sparsely
populated on earth. Infrastructure-wise, Mongolia doesn’t
have a very extensive road network, and the government is
working to address this.
Companies like National
Developer are chipping in to
help the state meet the target of building 3,500 miles
of new roads by 2016. As of
2012, there were 30,500 miles
of state roads, of which just
6% (1,830 miles) were paved.
For 2013, the goal was to
lay and pave 840 miles’ worth
of roads connecting Ulaanbaatar with six aimak, or
regional, centers. Badamsed
Gansukh, General Director
of National Developer, says
his company was the first to
start on the aimak project.
Over 2014-15, six more regional centers will be linked
to the capital by road and by
2021, the government’s New
Development Program for
the Medium Term dictates
that Mongolia will have a
total of 6,990 miles of paved
roads. That’s four times more
than it had in 2012 and the
price tag is expected to be
As Mongolia develops –
with its continuing integration of traditional rurality towards more modern
urbanity – the demand for
housing, offices and other
construction works are inevitably on the rise.
And while Ulaanbaatar
continues its rapid growth
with nearly half of Mongolia’s 2.8 million inhabitants
now calling the city their
home, the country’s real estate sector is living a golden
moment.
“We have been living a
truly historic transformation,” says Mr. Л.Munkhbat,
Executive Director of
Odcon Holding - the award
winning firm that has been
identified among the ten
best construction companies in Mongolia by the
Ministry of Infrastructure.
Such
transformation
not only refers to the consolidation of Mongolia as
a modern democracy and
a market economy, but
the great process of urbanization that has taken
hold – and continues to
take hold – of this vastly
sparse nation dominated
by mountains and remote
countryside.
“Today we have increasing numbers of migrants
coming into the city, so
[housing] demand will
continue to be high in the
next few years,” explains
Mr. Л.Munkhbat.
Indeed, as Ulaanbaatar
expands, many thousands
of herder families who live
in traditional ger districts
on outskirts of the city are
now being confronted with
the new urban landscape.
National Developer hires top flight engineers for its team
around $3.5 billion.
For Mr. Gansukh, it is imperative that road construction companies in Mongolia
invest in better technologies
and follow new methods,
which can drastically cut
costs. “The cost of one kilometer of road is $312,000
following the new standard.
World standard is $1.8 million, so the new way is six
times less,” he says.
The General Director
would also like more emphasis placed on road maintenance, as well as quality over
quantity. “There is not an
efficient system for maintenance, meaning roads aren’t
good for long,” he laments,
adding, “My vision is: let’s
build fewer roads but with
better quality.”
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National Developer was
established in 2007 and since
its inception, it has focused
on acquiring good equipment and materials, securing contracts that it fulfills
to the highest standards,
and hiring experienced and
highly skilled manpower.
“We are a young company
but during these six years
we have hired very good,
qualified engineers and our
HR policy is very fair for everybody. People feel working here is a very positive
experience because we don’t
just push them to work – we
also strive to ensure their
job satisfaction. Every employee should come to work
with a smile,” explains Mr.
Gansukh.
National Developer was the first
company to build new roads connecting
the regions to the capital in 2013
And with many of these
settlements built illegally,
without proper waste management, water supply or
electricity, the government
is aiming to provide affordable housing for these
communities. In doing so,
companies like Odcon have
a chance not only to take
advantage of new projects,
but also make a difference
to the many lives that have
never had the luxury of a
modern home.
“We participate in biddings and if we win we try
to implement the project
the best way we can,” says
the Odcon director, whose
company have also embarked on other independent social projects in the
ger districts.
“In one of the 21 aimags
(provinces), our company
has also built a residential
micro district for people
living in centre of the prov-
ince by ourselves and at our
own initiative and financial
capacity. The project is going on and it has been successful. I think this kind of
contribution from private
companies is vital.”
In the meantime, with
much of the real estate
market highly focused
on Ulaanbaatar and thus
the construction industry
coming under increasing pressure due to the
rocketing demand, supply constraints, extreme
weather and geographical
hindrances (such as the
surrounding mountainous
terrain), it is the responsibility of companies like
Odcon – as well as the
government – to ensure
the capital city develops
sustainably and the industry adopts international
standards and practices as
it heightens its cooperation
with foreign investors.
“The construction sector
should make steps ahead
towards
international
standards,” stresses Mr.
Л.Munkhbat. “We want
not just buildings, but energy saving, eco friendly
and stylish buildings. We
want educated and trained
engineers and workers who
will be great capital to our
company and our country.
“Advanced technology is
needed here. We are ready
to cooperate with [US
companies] if you have the
latest technology for such
a cold country. Especially
Alaska could be our great
companion. We are ready
to cooperate with you in
trade, service and electric,
sanitary, ventilation.”
Interior design focused on eco-friendly luxury
Front Gate combines Mongolian flare with modern style to create world-class environments
Mongolia is a country with a
rich and traditional past but
with the country’s growing
economy there is also a need
to focus on the future. With
multinational companies setting up shop in the Asian nation, Mongolia is making big
strides forward in getting its
infrastructure up to scratch to
help continue its growth.
One example is Front Gate,
an eco-friendly interior design
and construction company
that helps create the perfect
working and living conditions
using modern yet still ecoconscious materials and standards. The company, which is
“executing best quality projects
and luxury building projects
in Mongolia and beyond”, has
clients including Pepsi, Standard Chartered Bank and World
Bank in its portfolio.
The growth of the company,
as a result of Mongolia’s improving economy, has been helped
by the political changes that
have helped attract fresh business and opportunities in the
real estate sector. “It is changing
very rapidly,” says Ms. A Tsengelmaa, founder and Director of
Front Gate. “A new government
was formed when the country
became a democratic country.
During socialist times, I was a
child. Business at that time and
business now are totally different. The country has prepared
itself for development and in the
last five years, the government,
private and public sector have
seen lots of growth.”
International partners
are also being sought given
changes to the law, which Ms.
Tsengelmaa says will see foreign
companies take a bigger interest in the country. Mongolian
employees and engineers are
more valued than ever and they
help make Front Gate an attractive proposition in the world of
interior design. “Mongolia is a
developing country and we are
open to any partnership and
collaboration,” adds Ms. Tsengelmaa. “In such a rapidly progressing environment, Mongolian employees and engineers
are becoming more valued, like
international experts.”
Front Gate specializes in creating perfect living and working environments
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MONGOLIA
Distributed by USA TODAY
“we need more
infrastructure,
more foreign
investment, more
human capital,
and to work
together”
“Our drilling
organizations
need to have
some partnerships
or cooperation
with American
Companies”
D. Damb,
President of Mongolian National
Mining Association
Professor Tseveenjav J.,
Executive Director of the Mongolian
Drilling Association (MDA)
“we don’t have
access to the sea,
yet we are next
to the biggest
importer of iron
ore: China”
Buyanbal Damdin,
CEO of Zasag Chandmani
Mines LLC
“Mongolian
engineers know
the local soil
better than all the
many other highly
skilled foreign
engineers”
Batzorig Gantumur,
Executive Director of Glogex
5
“We are planning
to become the
shortest transit
line country that
connects asia
and europe”
“The uniqueness
of Mongolians
is that they are
fast learners,
which is a huge
advantage”
Mr. batkhuu,
Head of the Parliamentary
Working Group on Transit
Banzragch Ts,
General Director of Mongolian
National Diamond Drilling LLC
(MNDD)
100% Mongolian mining companies
Young leaders, new ideas, international perspective. There is much more than Oyu Tolgoi or coal in Mongolia and new generations of entrepreneurs are leading the change
T
he Mongolian mining industry represents about 25%
of the country’s
GDP, 60% of total industrial
production, 90% of total exports, and 40% of total state
revenues. It is essentially the
backbone of the Mongolian
economy, and through massive expansion, diversification, entrepreneurial partnerships and a fair amount
of growing pains, it has made
significant transformations
over the past 20 years.
Though Oyu Tolgi – the
largest financial undertaking
in Mongolia’s history, which
is expected to account for 30%
of the country’s GDP upon
completion – is perhaps the
country’s most famous mining
project, Deputy Minister of
Mining Mongolia Erdenebulgan Oyun insists that there is
much more to the Mongolian
mining landscape.
“Oyu Tolgoi is just one project. Mongolia will never allow
itself to be dependent on only
one project,” he says, reiterating the diversity in scope and
scale of projects currently being carried out.
As the proud teacher and
mentor to several mining
professionals who have gone
on to work abroad, Professor Tseveenjav J, Executive
Director of the Mongolian
Drilling Association (MDA),
is well aware of the benefits
of cross-cultural experience
in the field.
“I’m very glad that drilling companies from Australia, Russia, China and other
western companies are coming to Mongolia and our local companies are learning
from them. Our young drillers are being trained. Now
young Mongolian drillers
work not only in Mongolia,
but also abroad.”
As the Mongolian mining
industry grows, says D. Damb,
President of the Mongolian
National Mining Association, finding the right balance
naturally becomes of greater
concern. “We have to find solutions for being successful,
we need more infrastructure,
more foreign investment,
more human capital, more
environmental responsibility
and we need to work together
to keep making profitable
business for both national and
international players,” he says.
The mining sector’s
young blood
Though the Mongolian mining sector stands out for its
untapped potential, foreign-
friendly investment policies
and favorable geographic
advantages, perhaps one of
its more significant, yet often overlooked strengths is
that it is being run almost
exclusively by an enterprising and dynamic population
of young leaders.
Only three years after his
college graduation, Sukhbayar
Batsaikhan and a few friends
established Sod Gazar, a highly successful mining company
with an average employee age
of 23. He oversees a savvy
team, which within just two
years of operation, discovered
highly coveted fluorite mines.
“Fluorite mines have not
been discovered in Mongolia for over 20 years,” says Mr.
Batsaikhan, who adds that
Sod Gazar is also branching
out into exploration works on
rare metals, such as molybdenum and wolfram. The company owns 32 special licenses
for geological survey works,
representing an area of nearly
4.68 million hectares.
Another 100% Mongolian
owned company that has
met near overnight success is
Glogex. Established in 2008,
it has already been given the
title of “Best mining consulting company in the country”
by the Minister of Mining.
“Our company’s main purpose is very simple,” says the
company’s Executive Director, Batzorig Gantumur. “To
solve issues for both local
and foreign mining operators in Mongolia on how to
extract resources with minimal waste, and in a way that is
environmentally friendly and
economically sound.” To this
aim, Mr. Gantumur explains
that the company is careful to use efficient technology and to maintain a balance
between project profitability and economic and social
benefit to Mongolia.
Making waves in the domain of iron ore is Zasag
Chandmani Mines. Buyanbal Damdin, the company’s
35-year-old CEO, explains
that water is critical to the
mining process, especially in
the dry region of the Gobi area
where most of its mines are
located. “We are reusing the
water in our mines up to 90%
and this is the highest rate in
the country,” says Mr. Damdin.
In a bid to maximize its
iron ore processing output,
the company is transitioning
from a dry to a wet production method that will boost
the enrichment level of its
products to more than 65%.
Two new processing plants
financed with the help of
foreign investment will also
increase the company’s ability to export more to its voracious neighbor and consumer of iron ore, China.
A very politically stable
democracy with a well-educated and industrious young
workforce committed to capitalizing on its rich natural resources in the most sustainable way possible, Mongolia
presents a unique opportunity for investment.
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MONGOLIA
6
Distributed by USA TODAY
Mining and trade to benefit
from improved connectivity
Confidence in the face of
coal mining challenges
It is beneficial for Mongolia to distribute its mining resources through both road and
railway infrastructures and the government is committed to meet the expectations
generated in the international arena
With Mongolia finally starting to building better infrastructure in order to boost its
coal exports, state-owned mining company Erdenes TT is confident that the foreign
investment needed to complete its projects will soon come flooding in
Located at the crossroads of
Asia and Europe, Mongolia
is very favorably positioned
to become a transportation
gateway and an efficient
transit line allowing both
Mongolian and foreign companies to safely, cost-effectively, and expediently ship
goods and resources across
the region.
As explained by Mr. Batkhuu from the Parliamentary Working Group on Transport at Mongolia’s Ministry
of Transport, there are plans
to make Mongolia the shortest transit line country that
connects Asia and Europe.
In terms of track, that means
that the route from Europe
through Asia via Mongolia
would be 475 miles shorter
than any other existing railway. Though this advantage
would certainly benefit international trade by allowing
cargo to be transferred much
more quickly from producer
to consumer, Mongolia’s
already flourishing mining
sector also stands to benefit
from a more vitalized transportation system.
Mongolian mining companies such as Mongolian
National Diamond Drilling
(MNDD) and Absolute are
well aware of the advantages
that a more integrated transport system would bring to
their business. With an eye
on international expansion,
MNDD in particular, has
plans to tap the international market by cooperating with international mining companies operating in
Mongolia.
In the four years MNDD
has been in business, it has
drilled for materials and
minerals as diverse as coal,
gold, copper and uranium,
depending on the request
of the company it is working with. “We are capable
of executing world standard
drilling whilst having a competitive price over other
In Southern Mongolia – situated in the southern Gobi
desert just 250km from the
Chinese border – lies Tavan
Tolgoi, one of the world’s
largest untapped coking and
thermal coal deposits.
Tavan Tolgoi has total estimated reserves of 7.4 billion tonnes, one quarter of
which is high quality coking
coal, and Mongolia’s largest state owned coal miner
– Erdenes TT – has been
in charge of developing the
huge deposit’s largest section, Tsankhi.
Although Erdenes TT has
already exported more than
900,000 tons of coal so far
this year from its two pits
in East and West Tsankhi
(towards its target of 10 million tons in 2014), like the
rest of coal mining industry
in Mongolia, the company is
having to face up to the current challenging climate.
“Over the last 2 years, the
price of coal has been decreasing,” explains CEO of
Erdenes TT, Batsuuri Yaichil. “However, we are still
striving to overcome this
difficulty. We are sure that
we are quite competitive because our mine is very close
to China, who is the biggest
coal importer and largest
plans to create
an integrated
transport
network will
help mongolia
distribute its
coal, copper,
iron, petroleum
and gold
companies. Our employees
are fluent in English and
able to handle the operation
at the site without any language barrier,” says the company’s General Director, Mr.
Banzragch Ts.
Because it is not common for U.S. companies to
invest in Mongolian mining
companies, Mr. Banzragch
insists that the greatest opportunity to work in the
international market is by
cooperating with international mining companies
that operate in Mongolia.
“In the coming years, I see
our company as an internationally recognized company,” he says. “Upon introducing the international
standards into our daily
operation and realizing the
cost advantage, we will penetrate the market through
other sectors.”
Engaged in the mining
consultancy business since
2010, Absolute Mining is
also a 100% Mongolian company that has invested heavily in advanced technology
for complete solutions regarding all the commodities
of the mining sector. Priding
itself on extreme professionalism, it is especially committed to making strides in
investigation, mine planning, and mineral exploitation research.
“We are mobilizing all our
power and resources to upgrade and improve the quality of the Mongolian mining
sector,” says the company’s
General Director, Tsogt Tumurkhuyag.
Batsuuri Yaichil,
CEO of Erdenes TT
consumer. Secondly, our
mines are open pit mining,
which means our extraction
costs are lower.”
However, the main challenge for Mongolian coal
mining is that the Tavan
Tolgoi area has lacked the
infrastructure needed to
economically deliver coal to
its markets.
“At the same time, we currently lack a wash plant,” says
Mr. Batsuuri. “The company
exports raw coal and there
is no such benchmark price
for our coal in the international coal market, thus, we
are not able to sell our coal
at higher prices. More than
20% of our total expenses
are related to transport,
and it is very expensive to
transport by trucks. That is
why we are working to solve
these two issues.”
Indeed the company
has recently signed an
agreement with the China’s
Shenhua to build a 19km
cross border railway,
while
Mongolian
Railways has already
started work on a
track to connect
to the deposit to
the Chinese rail
network.
Erdenes TT also has plans
in the pipeline to construct
a $550 million coal-washing
plant (which will eliminate
ash, soil and rock to produce
a longer lasting, cleaner and
more valuable coal) with the
help of foreign investors.
“We are working with
Chinese, Korean, Japanese
and US investors on financing, and several companies
have expressed their interest to work with us to fund
our projects,” reveals Mr.
Batsuuri.
And while a deal is yet
to be struck, the CEO is
supremely confident that
Erdenes TT will get the help
it needs thanks to the lure
of Mongolia’s lucrative resources, and that all Mongolians will stand to benfit.
“It is inevitable that we’ll
have foreign investment to
complete this project. We
already have interested parties, with whom we are having negotiations. In the coming years, we will succeed,
complete our project, and
we will become one of the
biggest coal producers. ETT
is a very important company
for Mongolia’s future development. For example, the
citizens of Mongolia own
20 percent of the shares, and
they hold high expectations
for our project. We are doing our best to ensure that
the project is a success.”
The engine of the
mining and road sectors
Engaged, socially responsible and proudly Mongolian, Montruck opens up doors to
unexploited investment opportunities
Montruck is a 100% Mongolian road, construction
and mining machinery import company which now
figures among Mongolia’s
top 100 companies. Thanks
in no small part to the savvy
and foresight of the company’s president, Ms. N.
Uranchimeg, who was voted
Mongolian businesswoman
of the year in 2011, Montruck has always been a
company very ahead of
its time.
As the first company
to sell heavy trucks in
Mongolia,
Montruck
began importing road,
construction and mining
related machinery from
China in 2001. “I got an idea
that by entering the business of importing machinery
related to the road and construction sector which is the
key to the country’s development, I could contribute to
my country’s development,”
says Ms. Uranchimeg.
This idea also happened to
be an excellent business opportunity. At the time, Mongolians knew very little about
Chinese trucks, though just
a decade later, nearly 60% of
the mining machinery used
in Mongolia is imported
from China.
Ms. Uranchimeg is personally invested in seeing that the
Mongolian mining and road
sectors continue to flourish. In 2011, she took it upon
herself to organize various
companies in these sectors
to petition the government
for more support of homegrown companies in the face
of foreign competitors.
“I’m willing
to cooperate
with foreign
investors and
companies
outside of
China in terms
of quality
technologies
and machineries
that are useful
to people’s lives”
Ms. N. Uranchimeg
President of Montruck
“The government policy
towards protecting national
business companies from foreign companies is weak,” she
explains. “So there is always a
risk of being defeated by foreign companies with better
technology and greater financing.” Her efforts were successful in garnering the attention
of the government, which has
since become more proactive
in supporting the growth of
national companies.
As it has grown, Montruck
has also expanded into other
industries. “Our company’s
operation is to supply machinery essential to sectors
including road construction, construction and mining, geology, exploration
and extraction,” says Ms.
Uranchimeg, fully aware
that this also comes with a
responsibility to develop other
sectors. In 2012, in cooperation with the Ministry of Agriculture, Montruck imported
over 8,400 trucks and opened
agricultural machinery trade
points in five provinces across
western Mongolia.
“The agricultural sector of
Mongolia has been developing based on manual works.
Our company’s main purpose
is to import large numbers of
agricultural machineries and
operate 5 centers throughout
Mongolia more actively.”
Engaged, socially responsible, and proudly Mongolian, Montruck is now open
to offering foreign investors
access to its many unused
land and mining licenses for
coal, gold, and fluorspar. It
offers the prospect of profitable mining opportunities
and access to land which according to Ms. Uranchimeg,
wise investors may even use
to develop five-star international chain hotels.
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MONGOLIA
Distributed by USA TODAY
The insurance subsector: a carrot to
potential investors
7
Insuring a developing
Mongolia
Bodi Insurance look to raise awareness about the importance of insurance in the rapidly developing country, as well as reach out to tourists visiting the country.
Government programs aim to expand basic insurance coverage, as economic
growth increase boosted by mineral resources revenues. The insurance subsector
has a huge potential for being explored and developed by foreign investors
A
s the booming
economy brings
in new ways of life,
in particular the
sedentarization of the once
nomadic population, mostly
in and around Ulaanbaatar,
the insurance market is set to
grow accordingly.
The sector is still in the
development stage. The first
private insurance company,
Mongol Daatgal, was set up
in 1990. The same year, the
Ministry of Finance was established as the supervisory
body of the insurance market. The first law on insurance was enacted in 1997. In
2004, the Mongolian Insurers
Association was established,
followed two years later by
the Financial Regulatory
Commission. 2008 saw the
creation of the first life insurance company and the same
year, new amendments were
added to the insurance law,
in particular one requiring a
minimum statutory capital of
one billion tugriks ($545,000).
More recently, in 2011, a law
introduced compulsory insurance for drivers.
According to 2012 data of
the Insurance and Human Development Fund (HDF), quoted by the local press, 555,000
people (out of a population
of 2.9 million) were covered
by a social insurance scheme,
which includes pensions, social welfare, health, workers’
compensation and unemployment benefits, representing a
13.6% year-on-year rise.
More recent data from
Mongolia’s Insurers Association show that in 2013, 17
private insurance companies
were operating, with total
assets of 126.4 billion tugriks
“I invite all
international
investors to come
to Mongolia and
see for themselves
all the many
opportunities
awaiting them
here”
Dr. Chultem ULAAN,
Minister of Finance
($68.9 million). Assets have
been steadily growing since
2008, when they totaled only
34.3 billion tugriks ($18.7
million).
But there is a lot of room
for growth, as people’s standard of living rise and become
more western-like. Auto insurance penetration is currently less than five percent of
the population. The new law
on drivers insurance coupled
with the growing number of
vehicles should spur growth
in this segment of the market.
Indeed, there were almost
385,000 vehicles registered as
of 2013, with an average annual growth rate of 15% since
2010, according to the Mon-
golian Insurers Association.
Insurers also foresee potential in the home insurance
segment, as people settle
down in urban areas in and
around the capital. The penetration rate in this segment
is similar, at 5%.
Another important segment, in a country where
herding has been the traditional livelihood, is insurance
in livestock. The Insurers
Association notes that livestock stood at 45.1 million
in 2013 but that only 3.5% of
the livestock is covered. A pilot scheme was launched in
2009 to protect farmers from
the financial consequences
of the loss of herds, in particular during the harsh winters known here as dzuds.
The Index-based Livestock
Insurance Project is a World
Bank-backed micro-insurance program that is increasingly successful.
The labor insurance segment also has a very promising potential, in large part due
to the expansion of the mining
sector, which employs more
than 45,000 people (according
to 2011 figures). With a number of foreign firms operating
in Mongolia, there’s also a relatively large expatriate community and some insurers, such
as Mandal Insurance, have
already launched specific services for this public.
Such a young industry
with so much potential is
surely a carrot to potential
investors, and Minister of
Finance Dr. Chultem Ulaan
says: “I invite all international
investors to come to Mongolia and see for themselves
all the many opportunities
awaiting them here.”
As one of Mongolia’s oldest
insurance companies, Bodi
Insurance is one of the leaders in the country’s fledgling
sector.
Founded in 1995, the firm’s
steadily growing number of
customers and increasingly
impressive financial performance over the past two
decades has seen it scoop
the Mongolian National
Chamber of Commerce’s
top prize for “Best National
Insurer” multiple times over
recent years; indicative of its
expanding operations and
mounting prestige.
“What makes us advantageous from them is we have
close ties with financial institutions,” explains Mr. Otgonbayar, the CEO of Bodi.
“Our shareholder is Luvsanvandan Bold who is the
Minister of Foreign Affairs
and our General Director
is also a director of Golomt
Bank and the Swedish Ambassador (to Mongolia).
Many of the financial advisors also come from Sweden which means our human resource is strong, and
at the same time we hire
local employees and train
them abroad which creates a
strong workforce that understands the local situation.”
“Secondly, our products
vary on many aspects,” he
continues. “All the products
that we provide are finished
to perfection, and even the
gifts we provide to our clients are well thought.
“We have mass clients
from the suburbs and the
presents we give them are
practical in their life. For
our herder clients we provide them with first aid kits
and lights which charges by
hand and solar. So everything we provide for our
clients considers their need
and satisfies them.”
Aside from such gifts that
the company gives to their
customers – many of which
come from the rural areas of
the country – Bodi is trying
to further educate Mongolian citizens about the importance of having an insurance policy.
“The new Mongolia is
turning into a settled people
with a modern way of living,”
says Mr. Otgonbayar in reference to the country’s transformation from its largely
nomadic tradition, to a more
urbanized nation with a globalised economy.
“Nomadic people are not
interested in insurance, but
when there is a greater con-
centration of people then
the situation of risk arises,
so even in insurance sector
we are working based on
this fact.
“Our company is reaching
the vast lands of Mongolian
public with its 600 representatives situated in the 21
aimags and we seek to be
the leader in the commercial sector.”
Meanwhile, as domestic
demand for insurance continues to develop, the industry look towards reaching
foreign clients as well.
“One of the advantages
about Bodi is that we cooperate with the organization International SOS (the world’s
leading medical and travel
security services company),
and we are the only company
who is providing 1 million
dollar insurance to travelers
who are going abroad. This
is the highest reimbursement
rate in Mongolia,” says Mr.
Otgonbayar.
“We also provide insurance cover that protects
customers in Mongolia, and
if in need of urgent treatment we will send a helicopter and send the patient to
their country. I consider this
insurance as the biggest distinctiveness from any other
companies here, so I would
like to proudly state that if
you are planning to come to
Mongolia we are the strongest and most experienced in
dealing with tourists.”
Five years of huge growth Growing with the
for pioneering insurer
insurance market
Insurance specialist Ard Daatgal Insurance Company has undergone exponential
expansion in recent years and is targeting the country’s hugely untapped retail sector
The first private insurance
company in Mongolia, Ard
Daatgal launched operations
in 1994 and dramatic levels of
growth in recent years have
made it today one of the leading non-life insurance enterprises in the country. In 2008,
the 15-year-old company employed just six people and had
no branches outside its head
office in Ulaanbaatar. It had a
premium income of around
300 million MNT ($161,000)
and with total assets of some
1.7 billion MNT. Today it is the
number three company in the
sector, with 28 branches nationwide and employing more
than 100 people. Its premium
income has now topped 10 billion MNT and its assets have
rocketed to 9 billion MNT.
According to D. Chuluuntsetseg, CEO of Ard Daatgal Insurance Company since 2008,
the introduction of compulsory
insurance laws and the rise in
personal wealth have helped
boost demand and fuel the
company’s exponential growth.
She also expects Mongolia’s
booming mining industry to
help keep this momentum for
insurance into the foreseeable
D. Chuluuntsetseg,
CEO of Ard Daatgal Insurance Company
future, especially as many players are hopeful that Mongolia’s
current premiums-to-GDP
ratio of around 0.4% can reach
figures closer to 6-8%.
In 2004 Ard Daatgal pioneered the industry’s first joint
venture when it partnered up
with the Wittington Group of
the U.K. Its merger and acquisition of Grand Insurance in
May 2011 represented another
first for both the
company and
the Mongolian insurance
sector. Mrs.
Chuluuntsetseg believes
that their door
will be open to
further partnerships with large
foreign insurers
once the market has become
more developed and greater
regulation has been established.
“When the market has
grown quite mature then of
course the big players will come
in, and in this situation we can
discuss joint ventures together
with the foreign companies,”
she says. “This kind of process is
going on in the auditing market.
We can see the big four have
already come in and taken over
the small companies by buying
or acquiring them, or entering
joint ventures. Right now it
is too early to discuss it. And
why aren’t the big companies
coming into the market? It is
because there is also another
way to come into our market:
there is reinsurance – a sector
in which Ard Daatgal excels.”
Over the last two years, Soyombo Insurance have led the market in terms of growth,
increasing its range of services and teaming up with US firm Hannover Re.
One company that has witnessed the evolution of the
Mongolian insurance sector
from the very beginning is
Soyombo Insurance.
Soyombo, the country’s
first and oldest insurance
company, has been at the
heart of the expansion of a
sector that has grown simultaneously with Mongolia’s
booming economy.
“Our economy is growing
rapidly and following this the
insurance sector is also keeping its pace together with
other environments such as
IT – which has been facilitating the speed of information
and made it accessible for
the public to share and understand the benefits of the
insurance products,” says Mr.
Battulga, CEO of Soyombo,
who has also set up an NGO
to educate the public about
the sector.
“The last two years we have
succeeded in leading the
market with our growth,” he
continues. “We have the expertise, the connections and
the coverage of the whole
nation with our 29 branches
operating as of today, and
most importantly our strong
management team.”
With the insurance industry in Mongolia still very
much in its infancy – as
much of the legal framework
continues to be introduced
– Mr. Battulga still believes
there is “much room for improvement.”
While agriculture – one
of the country’s most important industries – currently
remains without cover due
to the high risk of Mongolia’s
harsh climate under which it
operates, Soyombo provides
other traditional services
such as property and driver’s
reliability insurance.
“Tourism in Mongolia has
lots of opportunity,” says Mr.
Battulga. “We have reinsurance for Mongolian tourists
going abroad and tourists
who are coming to Mongolia.
“Our company also offers
health insurance and also for
the mining sector we have
insurance. We can provide
transportation insurance all
around the globe as well as in
Mongolia.”
Meanwhile, Soyombo has
recently joined forces with
American based company,
Hannover Re, strenthening
their position in the market.
“From all the companies
who expressed their interest in working in Mongolia,
Hannover Re was exceptional in their enthusiasm.
This works in our favor as
Hannover Re reinsures our
company and as long as
there is no extreme catastrophe, all of our risk is covered
by our reinsurer. Knowing
we are insured gives assurance to our clients. We already extended this year’s
contract and will continue it
in the future.”
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MONGOLIA
8
Distributed by USA TODAY
Nomadic by nature
Across “The Land of the Eternal Blue Sky”, nature and one of the oldest civilizations on earth continue to coexist hand-in-hand
With the Gobi to the
south, the stunning Khuvsgul Lake, the second-largest
freshwater lake in Asia, sits
to the north-west and is
complemented by the surrounding mountain ranges,
one of which is the Sayan
range. The highest peak is
the Burenkhaan that stands
at 3,492 meters tall. Restaurants offering traditional
Mongolian cuisine, including
mutton-based barbecue dish
K
nown as ‘The Land
of the Eternal Blue
Sky’ thanks to being soaked in sun
for two-thirds of the year,
Mongolia has become a big
hit on the ‘to-visit list’ of
tourists keen to explore its
rich history and stunning
scenery since its democratic
revolution in 1990.
With just under 3 million
Mongolians populated in
972,000 square miles, and
45% living in the capital
Ulaanbaatar, Mother Nature has truly been left to
live among one of the oldest civilizations on earth.
This is the country’s enduring appeal, with nature
and the nomadic Mongolian people living handin-hand. Almost half live
in ‘Gers’, portable habitations to allow the population freedom to move up
to three times per year, as
century-old traditions continue to live on today.
‘Go Nomadic, Experience
Mongolia’ is the country’s
tourism slogan and it would
be hard to resist the lure of
attractions such as the huge
Gobi Desert and breathtaking Khuvsgul Lake. “Once
you discover Mongolia you
will come back again,” says
Ts. Oyungerel, Mongolia’s
Minister of Culture, Sport
and Tourism. “We invite
American tourists to visit
‘The Land of the Eternal
Blue Sky’.”
The world-famous Gobi is
one of the country’s biggest
pulls. Spanning over 800,000
square miles, it includes
the impressive Gobi Gurvan Saikhan National Park,
named after the mountain
range that surrounds the
east of the park, and some
of the largest sand dunes in
the country at Khongoryn
Els – nicknamed the ‘singing dunes’ due to the noise
they make on a windy day.
Camel rides and jeep excursions with local nomads are
just some of the activities on
offer to explore the desert.
The Mongolian ger
The Mongolian ger plays
a key role in the Asian nation’s rich heritage but one
company is ensuring the
country’s famous moveable
dwelling is being enjoyed
around the world
Modern Ger is one of the
leading manufacturers of the
ger, or yurt as it is known in
other places, and is blending
3,000 years of tradition with
cutting-edge modern design.
Nomads across Central Asia
are well used to the ecological living space but now the
UNESCO-listed structure can
be seen beyond the boundaries of Central Asia.
“We have a really big responsibility in order to protect and
at the same time let the world
know what the Mongolian ger
is,” says Altantuya Sanduijav,
Director General of Modern
Ger, and adds: “It’s critical
to keep an efficient size and
structure from ancient tradition, but at the same time we
khorkhog and the national
drink airag, surround the
water while a ferry offers the
chance for stunning views of
the surrounding scenery.
That stunning scenery has
been left untouched since
the days of Ghengis Khan,
Mongolia’s most famous
son who united many of
the Asian nomadic tribes
to help form the Mongol
Empire, which went on to
become the largest contiguous empire in history
after his demise.
Mongolia is steeped in
such history and tourists
can soak some of that up
at the Winter Palace of
Bogd Khan, the country’s
eighth Living Buddha and
last king. Situated in the
capital, the palace has been
turned into a museum and
includes six temples that
house some of the former
king’s prized possessions
and Buddhist artwork.
Some of the rich history of
the country can be experienced here, as well as the
Choiring Lama Museum, a
Buddhist monastery also in
Ulaanbaatar which used to
be occupied by the brother of Bogd Khan, Choijin
Lama Luvsankhaidav.
The popular Kharkhorin Tsenkher hot spring
and Khustain Nuruu National Park, which enjoys
the Tuul River running
through, provide more natural habitats to be enjoyed
by the growing number of
tourists putting Mongalia high up on their list of
places to explore.
6 THINGS YOU SHOULD kNOW ABOUT MONGOLIA
The Switzerland of Asia is at its investment turning
point. Mongolia’s mineral resources boom has
slowed down; however, 80% of its territory remains
unexplored and the revenues from mining are
allowing for the economic diversification that the
country needs, upgrading education, developing
infrastructure and encouraging social programs.
The Oyu Tolgoi mine is the largest financial undertaking in Mongolia’s history and is expected to
account for more than 30% of the country’s GDP
would like to add some details
to make it look more modern.”
The company, which started business in 2002, now ships
a container abroad every two
to three months. The ger,
which has a lifespan of between 50 and 100 years, may
be an ancient tradition but it
is still loved today. “The Mongolian ger is one of the most
profound and greatest contributions to Mongolian society and we are really proud
of our ger way of living,” says
Ms. Sanduijav. “It is one of the
most eco-friendly, ecological
housing which exists nowadays in the entire world.”
The company’s minute
detail in the design and construction of the ger has attracted the interested of a
number of partners, especially in Europe and in particular
France. Modern Ger is not
looking to stop there.
“The Mongolian ger is
ecological and environmentally friendly, so of course it
is beneficial and good for the
clients’ health wherever they
are living,” adds Ms. Sanduijav. “So whoever we partner
with, we would like to welcome them to participate
in delivering this ecological
housing to the world.”
Mongolia is a role model of democracy in the
region and an international peacekeeper. The
Mongolian Armed Forces participate in UN operations, such as in South Sudan, as well as NATO’s
Partnership for Peace program in Afghanistan, for
example.
The country is branding itself as the investment
gateway of continental Asia – a horse between
two giants with tremendous logistics advantages.
The government has reviewed its foreign investment
policy and a new investment law was adopted by
the Parliament on the 3rd of October, 2013 to capitalize on the urgent need of funds and investment
to ensure the sustainable growth of the country.
Mongolia recently signed in New York an agreement on transparency in matters related to international trade and investment.
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