Mongolia is successfully starting to engage Japan into strategic and economic partnership

Key Highlights:

  •  According to Joint Press Statement of Government of Mongolia and Japan on March 13,2012 Prime Minister of Mongolia S.Batbold has made official visit to Japan.
  • Mongolia has stated that Japan is important partner that is developing relations of “Strategic Partnership” first from traditional good friendly third neighbors of Mongolia.
  • Parties confirmed  to immediately organize preparation meeting to start official negotiations to establish Economic Partnership Agreement (EPA)
  • Mongolia views that Japanese participation in TT project will be a symbol of bilateral cooperation. Mongolia expressed its  interest in cooperation with private Japanese companies in major projects of establishing railroad network related to development of coal extraction, mining and concentration industries and minerals sector. In doing so, Mongolia has a goal of cooperating with Japan in fields such as introducing environmentally friendly and advanced modern technology, producing value added products and exporting to world market.
  • Erdenes Tavantolgoi and Mitsui companies have signed MOU on bilateral cooperation. Mitsui has been proposing to participate in establishment of thermal power plant and steel plant in Mongolia and now it is becoming possible to cooperate on issue of selling and purchasing coking coal from TT.  These days negotiations are proceeding actively to buy directly from Erdenes Tavantolgoi.
  • Finance Ministry of Mongolia and Japan Bank of International Cooperation have signed MOU on starting financial cooperation to get export loans and implement mining, infrastructure and industrial projects. It is becoming possible to finance major economic projects by getting mutually beneficial discount loans and advancing cooperation on stage higher from only receiving grant aid and support from Japan.
  • Development Bank of Mongolia and Sumitomo Mitsui Banking Corporation have signed MOU on cooperation.
  • Mongolia expressed request to use Samurai bonds of Government of Japan to raise funds to implement major development projects , namely,  “New Railroads”, “100 thousand apartments “ and “ SME Development” projects .
  • In relation to power needs of North East region, Mongolia  has strategic goal to thoroughly research and support initiative of private sector to establishing new source of power based on coal and renewable energy, to export power from Mongolia and consequentially export till Japan and establish super transmission system in Asia. 
  • Grant aid and soft yen loans from Japan will be important help to increase capacity of SME-s in intensive farming and animal husbandry and Mongolia expressed interested in continuing receiving KR-2 project of Government of Mongolia.
  • Prime Minister Opened General Consulate of Mongolia in Osaka. He also assigned duty to Consulate staff to promote reserves and opportunities of Mongolian market, its investment environment to manufacturers and producers of Kansai region, to introduce advanced equipment and technology of SME-s of  this region into Mongolia and further develop trade and economic mutually beneficial relations.

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Chief Investment Strategist

Dale Choi

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