💼 LARGEST COPPER MINES IN THE WORLD | MONTHLY WAGES | MONGOLIA-TURKEY TRADE

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🏛 WEBINAR SERIES WITH MONGOLIAN BANKS

We would like to extend a warm welcome to you to register for our upcoming investment webinar featuring Khan Bank.

AGENDA

09:00 - 09:05 Introduction

09:05 - 09:20 Investment Environment and Banking sector
- L.Amar, Chief Executive at Mongolian Bankers Association
09:20 - 09:30 Q&A

09:30 - 10:00 Khan Bank Introduction
- B.Erdenedelger, Deputy CEO at Khan Bank
10:00 - 10:20 Q&A

💼 MEN ARE PAID 19% MORE THAN WOMEN, STATISTICS SHOW

The latest data indicate that Mongolia's average monthly wage has risen by 21.7% to a record $480.3 as of Q4 of 2022.

However…

Although it constitutes an over 200% growth when compared to 2015 at nominal value, the real wage has increased by only 36.7% over the same period. Here are more insights:

Disparity and more disparity!

On average, men are paid $537.0 per month, which is roughly 19% more than $452.2 for women.

• The occupational wage gap is even starker, with international organizations paying the highest average monthly wage at $1469.7, compared to a mere $310.9 in the entertainment industry.

• Public limited companies and state enterprises both have average monthly wages of $593.2, which is 20% more than the national average. In contrast, on average, local enterprises pay only $367.2 per month, the lowest across business types.

• Ulaanbaatar’s average monthly salary of $536.8 is, although 7.2% higher than the national average, up to 33.1% lower compared to other regions (with the exception of seven westernmost provinces at $339.1).

The statistics paint a bleak picture of the government’s ability to reduce inequality, despite it being one of its main election promises. Moreover, they reveal a worrying trend of brain drain in academia and agriculture, as more and more people flock to the mining industry in search of higher-paying jobs.

📈 DATA STORY

Between 2010 and 2022, Rio Tinto invested approximately $15 billion in Mongolia, including payments of around $4 billion in taxes and other fees to the state. In the previous year, OT produced 129.5 thousand tons of copper. With the commencement of underground operations, OT is expected to significantly increase its copper production to half a million tons annually. This increase in production will lead to a substantial boost in OT's annual sales, estimated to reach $5 billion, resulting in a threefold increase in the royalties paid to Mongolia.

💸 TRADE BETWEEN MONGOLIA AND TURKEY

During Covid-19, Mongolia's primary destination for foreign trade shifted from China to Turkey, with almost everyone traveling there. As a result, the countries' trade turnover has reached $110 million as of 2022.

• The Turkish Lira fell 52.3% against the Mongolian Tugrik in the last two years. Thus, the devaluation was a key driver behind this growth.

In the previous year

The Minister of Foreign Affairs of Mongolia visits Turkey after 31 years. It was noted during the visit that a goal set 10 years ago - to increase foreign trade turnover to an amount of $110 million - has been fulfilled. Therefore, they have set a new goal of doubling this number in the next ten years. Consequently, foreign trade between Turkey and Mongolia will likely intensify in the coming years.

Opportunity…

The top goods imported from Turkey last year include bread, sweets, furniture, and chocolate. Mongolia, in return, mainly exported horsehide, cowhide, and processed goat and sheep skins. Let’s further explore some other trade opportunities between the two countries:

• By-products: In addition to being home to more than 60 million heads of livestock, Mongolia supplies 40% of unprocessed cashmere in the global market. Given this, the possibility of exporting animal by-products is under discussion.

• Tourism: With the government announcing 2023-2024 as a "Visit Mongolia" year, the number of direct flights between the two countries has increased. The number of tourists from Turkey also increased by 53% to 2,700 last year, demonstrating the progress of our partnership in the travel industry.

The path to strategic partnership

Next year will mark the 55th anniversary of diplomatic relations between Mongolia and Turkey. In this context, the two countries expressed their desire to advance the current level of partnership to comprehensive strategic cooperation.

🏃 QUICK STORIES

📌 Khan Bank issues Mongolia’s first green bond. IFC led Mongolia's debut green bond fundraising with $15 million investment, alongside $35 million from Dutch Development Bank and $10 million from MicroVest. As a result, Khan Bank's green bond raised a total of $60 million.

📌 33 public companies to hold shareholders meetings in April. These include TOP-20 companies such as InvesCore NBFI (INV), Gobi (GOV), Tavan Tolgoi (TTL), Suu (SUU), Sendly NBFI (SEND), Bodi Insurance (BODI). Notably, in April of 2022, a total of 142 JSC shareholder meetings were held.

📌 Atar-Urguu’s (ATR) net profit increases by 150% to ₮469.8 million. This was due to their sales revenue growing by 52.2% to ₮14 billion. Despite this growth, sales, and marketing expenses also rose by 75% to ₮2.1 billion. Meanwhile, general administration expenses remained stable with little to no change.

📌 Darkhan Nekhii (NEH) makes a net profit of ₮3.7 billion. Although the company’s sales and marketing expenses grew by 72.7%, its sales revenue dropped by 25.6% to ₮17.4 billion. However, the 51.7% cut in general and administrative expenses boosted their profits by 2.8%.

📌 17 companies receive investments worth $258 million at Mongolia-China Business Forum. The selection of companies was based on the condition that they must not have any domestic debt. Over 100 Mongolian entrepreneurs and 200 Chinese investors took part in the event.

⭐ TOP NEWS

• Current Trends and Opportunities in Mongolia: Mining Sector and Vision 2050 (China Briefing)

• Mongolia to decide on gas pipeline route after Russia-China cost agreement (Reuters)

• Interview: Mongolian ministers have a revival plan (Asia Times)

• Mongolia, US Seek to Advance Economic Ties (The Diplomat)

• IFC Invests $15 Million in Mongolia’s First Green Bond to Spur Renewable Energy Projects (Solar Quarter)

• Detangling the Urban Paradox in Ulaanbaatar (The Diplomat)

💭 WATCH & LEARN

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Editor: E.Zolbayar
Writer: Ch.Anuun, A.Bilguun, A.Tuvshinzaya

Disclaimer: The information "Inside Mongolia" provides is for educational and informational purposes only. It is not intended to be and does not constitute financial advice, trading advice, or any other advice. The decision whether to take into account the information we provide is solely our readers' independent decision.