NewsWire

Issue 720 –  26 February 2022

BCM NewsWire provides short summaries of news collected from around the world. Each article is kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full article.

Economy

• January exports increase 29 pct m/m, decrease 15.7 pct y/y
• Mongolia's Jan coal output slumps 56 pct YoY, iron ore up 9 pct
• ETT targets 3.3 Mt rail coal delivery after railways put in operation
• Mongolian Economic Forum to be organized on April 7-8
• 600 households’ apartment and 150 children kindergarten of CAA to be built in Khushigt Valley
• Considerations on Planning Travel from the US to Mongolia in February 2022
• “Protection of Khuvsgul Lake will serve as a part of Mongolia’s contributions to reducing climate change”
• Bogdkhan railway project works planned to be launched this spring
• The impact of climate change on education in Mongolia
• Doing Business In Mongolia 2022 - Report
• Mongolia’s path to economic revival - Editorial
• The ADB's New Energy Policy - Presentation

• 41 Mongolian students return from Ukraine so far
• B.Battsetseg: Mongolian citizens in Ukraine were not attacked
• Minister of Mining and Heavy Industry to visit Russia and Belarus on March 7-11
• Latest on Covid-19 in Mongolia
• Approval of new regulation on the changes to the share capital and shareholding structure of banks after IPO
• Implementation of the New Revival Policy in rural areas discussed
• Prominent anti-China activist arrested in Mongolia
• National Investment Bank paid off debts of HIF and SIF
• Event takes place to mark 50th anniversary of establishment of Mongolia-Japan diplomatic relations
• Belarus interested in shipping more vehicles, equipment to Mongolia
• P.Amarjargal: We need bicameral parliamentary system - Interview

Business

• Mining in Mongolia: The ASX stocks with boots on the ground in the mineral rich country on China’s doorstep
• Mongolia to Build 18 New Cheese Factories
• Insurance companies’ investments in 2021 increase 140 pct y/y
• Corporate Governance Code being updated
• The revised Labor Law (part 1)
• TMK Energy awards maiden drilling program for Mongolian coal seam gas project
• EBRD’s Women in Business Programme launched
• Jade continues to intersect sizeable gas bearing coals
• Ban imposed on new camps near Khuvsgul Lake
• Fitch Revises Outlook on Mongolian Mining to Negative; Affirms at 'B'
• Mongolia to cooperate Hungary establishing the first film studio with international standards
• Hunnu Air to hold direct flights between Mongolia and Kyrgyzstan
• Opening bell ceremony for primary market trading of asset-backed securities issued by "Omni Active SPE" LLC
• Golomt Bank successfully closed a deal of USD 8 million in long-term funding with Symbiotics, S.A.

Global and Regional Trends

• Oil tops USD 105 after Russia attacks Ukraine
• How Russia's Ukraine attack affects Asian business: 5 things to know
• Central banks rush to stimulus exit as New Zealand hikes again
• China starts building 33 GW of coal power in 2021, most since 2016 -research
• Prices rise at record rate as eurozone growth rebounds in February
• Biden says U.S., partners working on global oil reserve release
• Taiwan revises up 2022 GDP forecast to 4.42 pct on strong export outlook
• Chinese Coal Plunges After More Price Controls Imposed on Miners
• Thai economy grew 1.6 pct in 2021 despite COVID-19 headwind
• Asia's arms race: China spurs military spending spree - Editorial

• UNICEF: Guidance for employers on flexible work arrangements and other good workplace practices in the context of Covid-19
• UNICEF: Call for actions of the private sector to reduce children’s exposure to air pollution in UB
• BCM Guideline for Companies to Combat Air Pollution
• Member-to-member special offers & benefits

Economic Indicators

• Inflation
• Central Bank Policy Rate
• Sovereign Credit Rating
• Currency Rates

ECONOMY

JANUARY EXPORTS INCREASE 29 PCT M/M, DECREASE 15.7 PCT Y/Y

In January 2022, Mongolia traded with 117 countries from all over the world, and the total trade turnover reached USD 1.1 billion, of which USD 539.6 million were exports and USD 556.5 million were imports. The total foreign trade turnover decreased by USD 2.5 million (0.2 percent), where exports decreased by USD 100.2 million (15.7 percent) and imports increased by USD 97.7 million (21.3 percent) compared to the same period of the previous year. In January 2021, exports increased by USD 122.3 million (29.3 percent) and while imports decreased by USD 104.2 million (15.8 percent) compared to the previous month.
The foreign trade balance was in surplus of USD 181.0 million in January 2021 and while it was in deficit of 16.9 million in January 2022, decreased by USD 197.9 million compared to the same period of the previous year. In January 2022, trade balance deficit decreased by USD 226.5 million from previous month.

Source: Montsame

MONGOLIA'S JAN COAL OUTPUT SLUMPS 56 PCT YOY, IRON ORE UP 9 PCT

Coal production of Mongolia dived 55.85% year on year and fell 18.06% on the month to 2.03 million tonnes in January, showed data from the National Statistical Office of Mongolia.
The country produced 399,200 tonnes of iron ore in January, up 9.01% on the year but down 49.91% from December.
The iron sand production rose 37.25% on the year but slumped 50.76% on the month, while iron ore concentrate production was 126,900 tonnes, down 24.37% from a year ago and 47.97% month on month.

Source: SXCoal.com

ETT TARGETS 3.3 MT RAIL COAL DELIVERY AFTER RAILWAYS PUT IN OPERATION

Mongolia's Tavan Tolgoi-Zuunbayan railway will start trial run from March 15 and Tavan Tolgoi- Gashuunsukhait is scheduled to come into use on July 15, according to a report from Gogo Mongolia.
The commissioning of new railways can increase mineral exports, reduce transportation costs and increase employment. After the railway from the largest mining area to Gashuunsukhait on the border with China is officially put into use, it can transport and export 30 million tonnes of coal every year, according to the news
With the railways put into use this year, the operator of the Tavan Tolgoi coal mine, Erdenes Tavantolgoi JSC (ETT), plans to transport 3.3 million tonnes of coal via railway for the year.

Source: SXCoal.com
See also: Tavan Tolgoi-Zuunbayan railway line to open in October
Transportation route for iron ore and coal to be shortened by 318 km

MONGOLIAN ECONOMIC FORUM TO BE ORGANIZED ON APRIL 7-8

At its regular meeting held today, the Cabinet made a decision to organize the Mongolian Economic Forum, which has been suspended for two years due to the pandemic, under the theme ‘New Revival Policy’ on April 7-8.
“The conditions for organizing the forum have been created considering the factors such as the Government’s decision to downgrade the country’s level of heightened state of readiness from ‘Orange’ to ‘Yellow’ and high vaccination rate”, said the Deputy Minister of Economy and Development S.Narantsogt.
He further mentioned that the plans are underway to organize a series of events this year to expand the economy, accelerate the implementation of the ‘New Revival Policy’ as well as to attract foreign investors.
It was also reported that the ‘Invest Mongolia-2022' conference is scheduled to be held in September.

Source: Montsame

600 HOUSEHOLDS’ APARTMENT AND 150 CHILDREN KINDERGARTEN OF CAA TO BE BUILT IN KHUSHIGT VALLEY

On February 18, L.Oyun-Erdene, Prime Minister of Mongolia, visited Khushigt Valley and got acquainted with an architectural draft  and location of some construction works to be built in the framework of the New revival policy.
The architectural draft for a government complex in Khushigt Valley, 600 apartments for the Civil Aviation Authority, and a free economic zone are ready. In particular, a kindergarten with a capacity of 150 children, a green area and a parking lot will be built next to the apartments of the Civil Aviation Authority. 
Within the framework of policy to reduce traffic jam in Ulaanbaatar, to expand decentralization, and to establish satellite cities, it is planned to build apartment blocks, hospitals, schools, campuses and service centers in the Khushigt Valley according to the design of South Korea, Kazakhstan and Singapore, and has provided consulting services.

Source: GoGo News, Montsame
See also: IFEZ Authority Signs MOU with Construction Development Center of Mongolia

CONSIDERATIONS ON PLANNING TRAVEL FROM THE US TO MONGOLIA IN FEBRUARY 2022

This past week I have spoken with several people, and participated in several conversations on social media, where an announcement by Prime Minister Oyun-Erdene has been quoted as “borders are open.”
I am sharing here a breakdown of my process for assessing if I’m ready to plan or not. Again, this is my process, and it reflects my citizenship and point of departure. Additionally, please note that this in no way reflects the opinions or approaches of others writing for the Mongolia Focus blog.
For now, no, I’m not ready, but I am keeping tabs on the situation.
When I dug around for primary and more direct secondary sources on the announcement, I quickly found MNB World’s English language coverage. This coverage actually made no mention of changes to entry procedures, rather highlighting how the lifting of domestic restrictions will hopefully help Mongolia’s stricken economy (“economic growth reached -5 percent and the state’s revenue also decreased by 23 percent”).

Source: UBC Mongolia Focus Blog

“PROTECTION OF KHUVSGUL LAKE WILL SERVE AS A PART OF MONGOLIA’S CONTRIBUTIONS TO REDUCING CLIMATE CHANGE”

According to a study conducted by the Mongolian Academy of Sciences, the glacial area around the Khuvsgul Lake has decreased by 3 times between 1981 and 2000. 
This is merely a single example of how various factors have been negatively affecting the Khuvsgul Lake ecosystem, highlighted Director of the Institute of Geography and Geoecology of the Mongolian Academy of Sciences A.Dashtseren during his presentation on the current state of the lake’s ecosystem at a panel discussion themed, ‘Protection of the Lake’s Ecosystem’, which is being organized in the framework of the National Forum on the Protection of Khuvsgul Lake.
Under the auspices of President of Mongolia U.Khurelsukh, the national forum is being co-organized by the Office of the President of Mongolia, the Ministry of Environment and Tourism, and the Governor’s Office of Khuvsgul aimag. Discussions are taking place on defining the pressing issues of Khuvsgul Lake, and ways to develop and protect the area at the two-day forum.

Source: Montsame
See also: Mongolia holds national conference to protect major freshwater lake in northern province
Russian institute to cooperate in creating Khuvsgul Lake online monitoring system

BOGDKHAN RAILWAY PROJECT WORKS PLANNED TO BE LAUNCHED THIS SPRING

Last year, the Cabinet gave the permission to construct the main infrastructure of the Bogdkhan railway project to ‘Tavantolgoi Tumur Zam’ LLC in 2021, with plans to launch its works this spring.
The railroad will connect the stations of Maanit and Rashaant by going around the capital city on its northwest side and passing through the Chinggis Khaan International Airport area in Khushig Valley. In the framework of the project, a railroad tunnel and a large-scale bridge structure are planned to be built.
During the international scientific conference themed, ‘The Pressing Issues in Mongolia’s Railway Sector Development’, CEO of ‘Tavantolgoi Tumur Zam’ LLC N.Udaanjargal said, “The project will be constructing the first railway tunnel in the country. As corresponding studies have been completed, it has now become ready to draft detailed plans and blueprints. In Gashuunsukhait and Zuunbayan, 33 bridges were built, of which total lengths amounted to 3.7 km…

Source: Montsame

THE IMPACT OF CLIMATE CHANGE ON EDUCATION IN MONGOLIA

Climate change is a risk multiplier, threatening to undermine the progress achieved in promoting development over the last few decades. The education sector, however, has been underrepresented in global climate change discussions. Indeed, no single National Adaptation Programme of Action (or the subsequent National Adaptation Plans) in the East Asia and Pacific region highlights the education sector as being at risk. However, in the 2018 climate change negotiations, delegates recognized the importance of including education in the Nationally Determined Contributions of countries, highlighting the increasing significance of exploring the links between education and climate change (UNFCCC, 2018).
The current study was launched by UNICEF with the overall aim of gathering evidence on impacts of climate change on education sector, enhancing awareness and understanding among key stakeholders, enabling cross-country comparison of climate change actions in education, and facilitating sharing of good practices and lessons learned in the region.

Source: Montsame

DOING BUSINESS IN MONGOLIA 2022 - REPORT

Tremendous mineral reserves, agricultural endowments, and proximity to Asia's vast markets make Mongolia an attractive destination for medium to long-term foreign direct investment (FDI). The Gross Domestic Product (GDP) in Mongolia is worth 10.4 billion US dollars as of September 2021 according to the national statistics of Mongolia. The GDP value of Mongolia represents 0.01 percent of the world economy. The significant features and advantages of Mongolia include, but not limited to the following:

• Diversified and growing market exists in Mongolia;
• Technology Innovation Hub;
• Large mineral resource base that can be leveraged for value added processing;
• Developing Industry and Infrastructure;
• A bridge between the two economic powerhouses of Russia and China;
• Young, well-educated population;
• Private Sector & Privatization /privatize major state assets, list Mongolian conglomerates and exploration license aggregators on MSE/;
• PPP & Modernizing Infrastructure;
• Rule of law &Regulatory Quality &Transparency;
• Ensuring guarantee for investors /tax & nontax/;
• Promising mega projects; and
• Thriving Telecoms & IT sector.

Source: Grata International
View the full report

MONGOLIA’S PATH TO ECONOMIC REVIVAL - EDITORIAL

Mongolia’s government has announced a ‘comprehensive’ plan to help its economy rebound from the shock of the pandemic, but it contains no policies designed specifically to reduce poverty, Ariun-Erdene Bayarjargal writes.
Though pandemics do not ‘die’, COVID-19 is likely to fade away from central focus in 2022. As the world transitions into post-pandemic life and into a new normal, policymakers are now looking at recovery options for economies hit hard by the pandemic. Mongolia is no exception.
Mongolia’s economy contracted by 5.3 per cent in 2020, the largest decline in last two decades, but a strong return on exports helped the economy to rebound in the first half of 2021.
High commodity prices, particularly of mining products, in the world market led to a positive balance of trade despite raw volume of exports decreasing. The International Monetary Fund’s Mongolia outlook indicates growth is expected to be 7.5 per cent in 2022.

Source: Asia & the Pacific Policy Society

THE ADB'S NEW ENERGY POLICY - PRESENTATION

The Business Council of Mongolia held a Knowledge Sharing Session on the ADB’s "New Energy Policy" on 23 February 2022.
In September 2021, the Asian Development Bank (ADB) approved a new energy policy to support universal access to reliable and affordable energy services, while promoting the low-carbon transition in Asia and the Pacific. The new energy policy was unveiled by Ms. Shannon Cowlin, the Principal Energy Specialist at Asian Development Bank (ADB) at Knowledge Sharing Session (KSS) on 23rd of February, 2022.
Click here to download the presentation.

Source: ADB
See also: New ADB Energy Policy to Support Energy Access and Low-Carbon Transition in Asia and Pacific

POLITICS

41 MONGOLIAN STUDENTS RETURN FROM UKRAINE SO FAR

On February 24, Minister of Foreign Affairs B.Battsetseg reported that the issue concerning having Mongolian students return from Ukraine was discussed at an irregular meeting of the Cabinet. 
Currently, there are 68 Mongolian students, who study in Ukraine, and 22 citizens, who have a permanent residency. As most of the Mongolian citizens that have obtained permanent residency are either married to Ukrainian citizens or employed at international organizations in the country, they have yet to make any requests to return to Mongolia. 
Over the past month, the Ministry of Foreign Affairs has regularly made contact with the Mongolian students in Ukraine, advising them to return to their home country as the situation may get worse, highlighted the Minister. While 41 students have returned to Mongolia, 27 students had yet to make a decision due to certain factors such as being in their last year of study, and studying at a language school.

Source: Montsame

B.BATTSETSEG: MONGOLIAN CITIZENS IN UKRAINE WERE NOT ATTACKED

B.Battsetseg, the Minister of Foreign Affairs, made a brief report on the situation of Mongolian citizens who are in Ukraine.
She said, “No Mongolians were injured and attacked in Ukraine. Currently, we are discussing bringing back 27 students from Ukraine. If the Frankfurt-Istanbul flight operates, we will use it. We have prepared vehicles in Kharkov and Kyiv. Some schools have reported that they will not allow those students to come back once they leave. We are sending some necessary official letters. This is a challenge not only for Mongolia, but for the whole world. The UN Security Council held a meeting today. We are having connections with all Mongolian citizens in Ukraine.
Currently, Ukrainian flights are suspended, and if the air border is not opened in the near future, we will take our citizens by road through Poland and Hungary”.

Source: GoGo News

MINISTER OF MINING AND HEAVY INDUSTRY TO VISIT RUSSIA AND BELARUS ON MARCH 7-11

At its regular meeting today, the Cabinet made the following decisions.
-Minister of Food, Agriculture and Light Industry Z.Mendsaikhan was instructed to announce 2022 as the Year of Promoting Cooperatives’ Development, approve the plan of action, monitor its implementation and report its progress at the Cabinet meeting.  
-· The Government considers it appropriate to expand the activities of the Dairy Asia Secretariat Office, established in cooperation with the Food and Agriculture Organization of the United Nations (FAO). Currently, 13 countries have joined the partnership.
-Minister of Mining and Heavy Industry G. Yondon will pay a working visit to Russia and Belarus on March 7-11, 2022.

Source: Montsame

LATEST ON COVID-19 IN MONGOLIA

Below are headlines from the past week concerning Covid-19 in Mongolia:

• Mongolia reports lowest number of daily COVID-19 cases since early January
• No Covid death recorded in Mongolia for second day in row
• Some 100 thousand people receive fourth Covid-19 shots
• COVID-19: 517 cases, four deaths reported
• COVID-19: 497 cases, two deaths reported
• COVID-19: 525 cases, two deaths reported
• COVID-19: 449 new cases reported
• No COVID-19-related deaths reported in last 24 hours
• COVID-19: 761 cases, three death reported

APPROVAL OF NEW REGULATION ON THE CHANGES TO THE SHARE CAPITAL AND SHAREHOLDING STRUCTURE OF BANKS AFTER IPO

On 28 January 2021, the Parliament of Mongolia adopted the Law of Mongolia on Amendments to the Banking Law (the “Banking Law Amendments”) which, among other things, required systemically important banks to become open joint stock companies (i.e. a publicly listed company) by 30 June 2022, and other banks to become open or closed joint stock companies. For more information, please refer to our previous note on the Banking Law Amendments here.
The Banking Law Amendments was adopted within the framework of banking sector reform and a number of related developments. Some of these developments, including the approval of plans of five systemic banks on how they intend to meet the new requirements by the Bank of Mongolia (the “BoM”) and the Financial Regulatory Commission of Mongolia (the “FRC”), have occurred since the adoption of the Banking Law Amendments; and one non-systemic bank has become a publicly listed company.

Source: Melville Erdenedalai LLP

IMPLEMENTATION OF THE NEW REVIVAL POLICY IN RURAL AREAS DISCUSSED

Prime Minister L.Oyun-Erdene attended a meeting on ‘Accelerating the implementation of the New Revival Policy in rural areas’.
In his opening remarks, Head of the Cabinet Secretariat Ts.Nyamdorj stressed the importance of local authorities’ role in the implementation of the policy. The Prime Minister gave detailed information on the six development impediments in the ‘New Revival Policy’.
As a result of the government’s MNT 10 trillion Plan for Health Protection and Economic Recovery, the country’s economy which had contracted 5.3 percent grew by 3.6 percent as of the third quarter of last year. The launch of the first phase of Oyu Tolgoi underground mine production has had positive impact of the economy and raised investors’ confidence, the Prime Minister underscored, ordering the local government leaders to be responsible and place emphasis on starting and accelerating development projects to be implemented in rural areas as part of the policy.

Source: Montsame

PROMINENT ANTI-CHINA ACTIVIST ARRESTED IN MONGOLIA

A prominent anti-China activist has been arrested in Mongolia, part of what campaigners have said is a wider effort to "clean up" Beijing's critics in the country.
Landlocked Mongolia is dependent on mineral exports to its giant neighbours, Russia and China, but there have also been protests in the capital Ulaanbaatar over Beijing's language policy in Inner Mongolia.
Critics of the policy in the Chinese border region -- home to an estimated 4.5 million ethnic Mongolians -- say it mirrors moves in other areas such as Xinjiang and Tibet to assimilate local minorities into the dominant Han culture and eradicate minority languages.
Munkhbayar Chuluundorj was arrested Friday in Ulaanbaatar on suspicion of "receiving instructions and funds from a foreign intelligence group", the country's spy agency said.
The General Intelligence Agency (GIA) said he had "engaged in illegal cooperation activities" but gave no more details.

Source: France24, WIONews.com

NATIONAL INVESTMENT BANK PAID OFF DEBTS OF HIF AND SIF

MNT 161.5 billion of Health Insurance Fund and Social Insurance Fund was placed at Chinggis Khaan Bank and National Investment Bank. 
The Bank of Mongolia reported that the National Investment Bank paid-off all debts of the Health Insurance Fund and the Social Insurance Fund.
Chinggis Khaan Bank has MNT 100 billion from the Social Insurance Fund and MNT  30 billion from the Health Insurance Fund. The National Investment Bank has MNT 45 billion from Erdenet Plant, MNT 53 billion from Erdenes Tavan Tolgoi JSC and MNT 24 billion from the Health Insurance Fund. The Parliament's Standing Committee on Economics (October 28, 2021) was discussing about the government couldn’t receive money from these banks for the last three years. 
In addition, Article 9.1.5 of the Audit Report on the Budget Performance of Mongolia for 2020 states, “The Health Insurance Fund and the Social Insurance Fund, a total of MNT 161.5 billion were placed in two banks with low repayment capacity.

Source: GoGo News

EVENT TAKES PLACE TO MARK 50TH ANNIVERSARY OF ESTABLISHMENT OF MONGOLIA-JAPAN DIPLOMATIC RELATIONS

 
NewsWire

Issue 719 –  18 February 2022

BCM NewsWire provides short summaries of news collected from around the world. Each article is kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full article.

Economy

• Mongolia reopens borders for vaccinated travellers
• Mongolia: On the Verge of a Mineral Miracle
• Total revenue of general government budget increased by 42.4 percent compared to previous year
• Mongolia's Tavan Tolgoi-Zuunbayan railway to start trial run in Mar
• Exports of mineral products increased in the last two weeks
• Ordinary passport holders of 25 countries to travel visa-free to Mongolia
• Mongolia aims to reduce greenhouse gas emissions by 22.7 percent by 2030
• Mongolia to launch nationwide health checkups
• Khushig Valley area to be planned for 150 thousand citizens

• Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
• China, Mongolia Finalize Major Railroad Crossing Points
• Foreign Investment Agency to be re-established under Ministry of Economy and Development
• Latest on Covid-19 in Mongolia
• MNT 39 billion repayment made to Development Bank since non-performing loan disclosure
• Polls are being conducted on changing the starting hours of some of the secondary schools located in the capital city
• Mongolia: Cases against newspaper and three activists dismissed
• Digitalization is an opportunity to develop collectively, and win together - Interview
• S. Batbold: Despite the pandemic, our transport and logistics sector has continued to advance - Interview
• Should we provide free period products? - Editorial
• Xi and Putin agree on another gas pipeline - Editorial
• Michael S. Klecheski: Mongolia has significant endowments that are attractive to investors - Interview

Business

• Total sales of stocks reach MNT 37.7 billion in Jan
• Post-COVID Mongolia is Open for Business
• Changes made to working timetables of some trade and service entities
• G.Temuulen: Oyu Tolgoi copper concentrate to be certified according to international standards
• Ban on alcohol sales on the first day of the month repealed 
• Are Uncompleted Buildings Real Estate?
• TMK Energy wraps up acquisition of Mongolian coal seam gas project
• Aspire Mining provides Ovoot Coking Coal Project update
• Kincora Copper Revises Agreement with Resilience Mining Mongolia for ASX IPO
• FRC: assets classification period reduced by 30 days
• Mongolian carriers able to transport goods to 18 countries
• Critical Reading of Advertisements in Mongolia
• EBRD and We-Fi support transformation of Mongolian children’s clothing brand UR.mine
• Household pet insurance products registered
• Ch.Chadraabal: Smart farming is key to development - Interview

Global and Regional Trends

• Minutes show Fed ready to raise rates, shrink balance sheet soon
• UK economy grew 7.5 pct in 2021, mostly recovering from its pandemic plunge
• World's red-hot housing markets brace for interest rate hikes
• Japan’s deficit reaches 8-year high as energy imports soar
• The Ripple Effects Of Soaring Energy Prices
• Chile starts debate of new Constitution amid jitters over mining, Congress plans
• South Korea adds most jobs since 2000 as economy weathers Omicron
• Emerging Asia’s central banks seem unlikely to chase the Fed in raising rates, economists say
• Column: Lithium supply crunch Part II - this time it's for real
• What China means when it says it wants “high quality” GDP growth - Editorial

• UNICEF: Guidance for employers on flexible work arrangements and other good workplace practices in the context of Covid-19
• UNICEF: Call for actions of the private sector to reduce children’s exposure to air pollution in UB
• BCM Guideline for Companies to Combat Air Pollution
• Member-to-member special offers & benefits

Economic Indicators

• Inflation
• Central Bank Policy Rate
• Sovereign Credit Rating
• Currency Rates

ECONOMY

MONGOLIA REOPENS BORDERS FOR VACCINATED TRAVELLERS

Mongolia has reopened its borders to fully vaccinated international travellers, state media reported on Monday (Feb 14), rolling back coronavirus curbs that had kept the country isolated for two years.
The nation has implemented some of the world's toughest anti-COVID-19 measures since the start of the pandemic, largely sealing off its borders and imposing several lockdowns.
The curbs have battered its economy as businesses closed, exports plunged and hundreds of thousands faced precarious employment.
Mongolia's cabinet approved a resolution downgrading the pandemic "state of readiness" from orange to yellow, effectively lifting all restrictions on business operations, state news agency Montsame reported.
The move means the country of three million "fully opens its borders to international travel", Prime Minister Luvsannamsrai Oyun-Erdene said, according to Montsame.
Declaring Mongolia open to fully jabbed tourists and investors, he reportedly said the government would "put efforts into creating the necessary conditions to ensure safety ... for all those arriving in the country for business and tourism purposes".

Source: Channel News Asia, Montsame
See also: PM: Mongolia will not require vaccination from citizens, and tourists
Mongolia cancels COVID-19 related heightened state of readiness

MONGOLIA: ON THE VERGE OF A MINERAL MIRACLE

Naturally, this raises the question of what lies ahead for the Mongolian people and their economy. If Rio Tinto can meet its 2023 projection for sustainable copper production and the Mongolian government can improve on its transparency and spending practices, there is a definitive opportunity for widespread prosperity, at least in terms of material wealth. Inevitably, there will be environmental costs, whether to the limited water supply, the air breathed by a million residents in Ulaanbaatar every day, or to the land that herders have inhabited for generations. Even still, however, the trend of gridlock could continue, and Mongolia could be left searching for a way to manage twin economic and environmental crises.
As a result, many Mongolians are concerned about economic dependence on mining and Chinese demand, leading them to look for ways to diversify the economy. One possibility lies in the cashmere industry; Mongolia produces around a fifth of the world’s raw cashmere…

Source: Harvard International Review

TOTAL REVENUE OF GENERAL GOVERNMENT BUDGET INCREASED BY 42.4 PERCENT COMPARED TO PREVIOUS YEAR

According to the preliminary results January of the of 2022, the total revenue of the general government budget was MNT 1.0 trillion, increased by MNT 301.5 billion (42.4 percent) compared to the same period of previous year. The equilibrated revenue of the general government budget was MNT 946.4 billion increased by MNT 280.4 (42.1 percent) billion compared to the same period of previous year.
On the other hand, the total expenditure and net lending was MNT 1.3 trillion in January of 2022, resulting in deficit of MNT 358.3 billion increased by MNT 239.8 (three-fold) billion compared to the same period of previous year.
In January 2022, the total equilibrated revenue and grants of general government budget was MNT 946.4 trillion, decreased by MNT 68.9 billion (6.8 percent) compared to the previous month. The total expenditure and net lending were MNT 1.3 trillion, increased by MNT 732.1 billion (35.9 percent) compared to the previous month. 

Source: Montsame

MONGOLIA'S TAVAN TOLGOI-ZUUNBAYAN RAILWAY TO START TRIAL RUN IN MAR

The first trial run for the 416.1-kilometer Tavan Tolgoi-Zuunbayan railway in Mongolia is expected to take place on March 15, Montsame News Agency reported, citing a statement from R.Batsukh, the Executive Director of Mongolian Railway, during a visit of L.Khaltar, Minister of Road and Transport Development.
L.Khaltar learned about the operation of Mongolia Railway, Tavan Tolgoi Railway and Zumbayan Railway companies and their projects under construction, and instructed them to prepare for the start the Tavan Tolgoi-Zuunbayan rail line.
There are 37 mines and deposits under exploration near the Tavan Tolgoi-Zuunbayan railway, according to an earlier report from the UB Post in June last year. Besides the Tavan Tolgoi coal mines, large mines with estimated reserves of 6.02 billion tonnes of gold, coal, copper, gypsum, zeolite and uranium are located on this route, it reported.

Source: SXCoal.com

EXPORTS OF MINERAL PRODUCTS INCREASED IN THE LAST TWO WEEKS

According to the Ministry of Mining and Heavy Industry, Mongolia's exports of mineral products have increased in the last two weeks compared to the previous weeks.
As of February 4-10, the country exported a total of 806.7 thousand tons of coal (1224 containers by road, 654 containers by rail), 124.5 thousand tons of copper concentrate (152 containers by road, 329 containers by rail) as well as 165.2 thousand tons of iron ore and concentrate (1086 containers by rail) from the beginning of the year.
The purchase of gold by the central bank was 1,663.0 kg from the beginning of the year, which shows an increase of 4.7 percent compared to the same period of the previous year.

Source: Montsame

ORDINARY PASSPORT HOLDERS OF 25 COUNTRIES TO TRAVEL VISA-FREE TO MONGOLIA

In connection with the Government’s decision to fully open the country’s borders to international travel and lift pandemic restrictions, a conference took place under the theme, ‘New Revival Policy - Tourism’, on February 14. The conference was organized at the initiative of the Ministry of Environment and Tourism.
In aims of effectively implementing the ‘Vision-2050’ long-term development policy and boosting the productivity of government organizations, the Government recently approved the ‘New Revival Policy’, its program for implementation in phases, and large-scale development projects that are planned to be carried out in its framework.
During the conference, Minister of Foreign Affairs B.Battsetseg highlighted that the tourism sector has a crucial role in accelerating the country’s economy, and noted that the Ministry is focusing on smoother entry of foreign nationals traveling to Mongolia, and providing support for tourism by carrying out certain works.

Source: Montsame

MONGOLIA AIMS TO REDUCE GREENHOUSE GAS EMISSIONS BY 22.7 PERCENT BY 2030

As part of the Project for Formulation of Master Plan on the Agricultural Value Chain in Mongolia (MONMAP-AVC), a honey cluster is being created in Mongolia. In May 2021, a working group of 15 individuals was established to make preparations for the new cluster to develop guidelines to introduce good practices in honey production and create the honey cluster.
It was noted during a project steering committee meeting held on February 9 that preparations have been completed to form the new cluster this March. State Secretary of the Ministry of Food, Agriculture and Light Industry T.Jambaltseren, First Secretary of the Embassy of Japan in Mongolia Matoba Satoshi, Chief Representative of the Japan International Cooperation Agency (JICA) in Mongolia Tamura Eriko and other officials attended the meeting to discuss the progress of the cluster development and the selection for the pilot project to be implemented in rural areas.

Source: Montsame

MONGOLIA TO LAUNCH NATIONWIDE HEALTH CHECKUPS

During today's Cabinet meeting, Minister of Health S.Enkhbold was obliged with the task to involve the entire population in preventive and early-detection checkups.
Mongolia's long-term development policy document – Vision 2050, states that every citizen should be involved in preventive medical checkups every two years. The Government's Action Plan for 2020-2024 also calls for improving the health education of every citizen and boosting access to regular medical checkups that are in line with international standards.
The average life expectancy of Mongolia is 75.8 for women and 60.6 for men. In other words, the difference in life expectancy between men and women is 9.7 years.
The Government Action Plan for 2020-2024 provides for reducing this gap to five years. According to the Minister of Health S.Enkhbold, nationwide preventive checkups and early detection campaign is planned to be launched on May 1 this year. "I assume that it is a timely decision which can greatly contribute to the post-COVID-19 rehabilitation treatment”, added the Minister.

Source: Montsame, Xinhua

KHUSHIG VALLEY AREA TO BE PLANNED FOR 150 THOUSAND CITIZENS

On February 10, the working group in charge of accelerating construction works at Khushig Valley held a regular meeting. Led by the Deputy Prime Minister, the working group was put in charge of the works in the framework of the Government’s policy on decentralizing Ulaanbaatar city, diversifying the economy, and developing a new region for industry and trade, science and technology, bank and finances, university and college complexes, and tourism as well as transport and logistics.
During the meeting, Minister of Construction and Urban Development B.Munkhbaatar introduced plans for resolving issues relating to autoroads, infrastructure, electricity and heating, water supply, flood protection, and waste management in connection with the task given by the Prime Minister to launch construction works at Khushig Valley from April 1.
Deputy Prime Minister S.Amarsaikhan said, “It is necessary to draft an even more detailed plan for the construction works to be carried out in Khushig Valley and ensure its implementation.

Source: Montsame

POLITICS

UPROAR IN MONGOLIA AS DEVELOPMENT BANK REVEALS SCALE OF RISKY LOANS AND NPLS

Many Mongolians have expressed outrage at figures that show around half of the loan portfolio of the state-owned Development Bank of Mongolia (DBM) is made up of risky or non-performing loans (NPLs). The greatest uproar stems from the fact that many borrowers placed in the risky category are well-known Mongolian business leaders with links to, or past service in, government or parliament.
DBM was founded in 2011. Current legislation states that the development bank must award at least 60% of its loans to recipients that boost Mongolian exports. The lender was formed with the goal of assisting the country's growth via export gains and the financing of import replacement projects and programmes. However, according to the data release dated January 31, fully 55% its loans were deemed risky or as NPLs.
DBM's total loan portfolio amounts to Mongolian tughrik (MNT) 3.1 trillion ($1.1bn).

Source: bne IntelliNews

CHINA, MONGOLIA FINALIZE MAJOR RAILROAD CROSSING POINTS

Mongolian Prime Minister Oyun-Erdene Luvsannamsrai and his delegation recently concluded a five-day working visit to China. During his visit, Oyun-Erdene attended the Opening Ceremony of the 2022 Beijing Winter Olympics and met with Chinese President Xi Jinping and other high-level officials, including Premier Li Keqiang. In addition, the two sides reached a significant breakthrough on railroad and infrastructure projects that have been stalled for more than a decade.
On February 7, Xi received the Mongolian prime minister at the Great Hall of the People in Beijing. During the high-level meeting, Xi expressed China’s goal for cooperation with Mongolia, with an emphasis on infrastructure and development-based projects.
n a joint statement, Mongolia and China reiterated respect for each other’s independence and territorial integrity, as well as the principle of non-interference in domestic politics. They also pledged to engage in cooperation and assistance as comprehensive strategic partners. Mongolia hopes to accelerate economic activities, including trade, major infrastructure projects, railroad, and development-based cooperation.

Source: The Diplomat
See also: The results of Prime Minister’s visit to China to be submitted to the National Security Council

FOREIGN INVESTMENT AGENCY TO BE RE-ESTABLISHED UNDER MINISTRY OF ECONOMY AND DEVELOPMENT

Today on February 16, Minister of Finance B.Javkhlan announced that the strategy and development policy for the Ministry of Economy and Development was approved at the regular Cabinet meeting.
With the changes made to the 2022 State Budget and the Law on the Government, the Ministry of Economy and Development was officially established in January this year. “By having the strategy and development policy approved by the Cabinet, the Ministry is provided with opportunities and proper structure to fulfill its duties that have been reflected in the respective law. In its framework, an agency is also being established on foreign investment,” highlighted Minister B.Javkhlan. 
“Previously, the Foreign Investment Agency carried out its operations independently under the Government. The agency is now being re-established under the current government after many years. With the re-establishment of the agency, Mongolia’s mid- and long-term policies and plans for foreign investment will become very clear…

Source: Montsame
See also: Oyun-Erdene.L: We invite you to invest in Mongolia

LATEST ON COVID-19 IN MONGOLIA

Below are headlines from the past week concerning Covid-19 in Mongolia:

• Fighting on the Frontlines of COVID-19 in Mongolia
• Equipment, Vaccine, and Training: Supporting Mongolia’s COVID-19 Response and Recovery
• Pandemic-related hospitalizations drop in below 6000
• Mongolia's COVID-19 tally exceeds 460,000
• Training on parental engagement in COVID prevention in schools and kindergartens launches
• COVID-19: 761 cases, three death reported
• COVID-19: 874 cases, three death reported
• COVID-19: 834 cases, one death reported
• Health Minister meets UNICEF Representative
• COVID-19: 609 new cases, two deaths reported
• COVID-19: 553 cases, one death reported
• COVID-19: 1,297 new cases, two deaths reported

MNT 39 BILLION REPAYMENT MADE TO DEVELOPMENT BANK SINCE NON-PERFORMING LOAN DISCLOSURE

The Development Bank of Mongolia posted non-performing loans issued by the Development Bank on January 20, 2022, and information on loan packages issued by the Development Bank on official website www.dbm.mn on January 31, 2022.
Today, the loan portfolio information is updated as of February 11, 2022.
Since January 20, loan repayment of MNT 39,828,377,135 has been made to the Development Bank.
Information on 75 loans /66 borrowers/ issued by the Development Bank of Mongolia is available HERE.

Source: GoGo News

POLLS ARE BEING CONDUCTED ON CHANGING THE STARTING HOURS OF SOME OF THE SECONDARY SCHOOLS LOCATED IN THE CAPITAL CITY

During the Cabinet meeting held on the 8^th of December, 2021, the Governor of Capital City was tasked to research and test a flexible solution to decrease traffic congestion, by changing the start/end schedule of secondary schools located in places that contribute to congestion the most whilst ensuring that it also coordinates with the parents’ working schedule. Therefore, based on the findings, a new plan was proposed to change school starting hours of 59 schools which includes 23 public schools and 36 private schools. From the 59, 44 schools are located in Ikh Toiruu, and 15 are in Khan-Uul District and Yaarmag. There are currently 85,207 students attending these schools, and as research indicates 28.1% or 23,952 of the total students take taxis or have private transportation methods.

1. By grouping the 59 schools by location and traffic flow, set varying start and end time for the neighboring schools

Source: Ulaanbaatar.mn

MONGOLIA: CASES AGAINST NEWSPAPER AND THREE ACTIVISTS DISMISSED

Globe International Center welcomes recent court decisions in favor of the rights of citizens to freedom of expression and peaceful demonstrations.
On 18 October 2021, the civil defamation case brought against Ugluunii Sonin (Morning Newspaper) daily newspaper was dismissed by the Chingeltei District Civil Court of First Instance. The court decision was based on the abandonment of a claim by the plaintiff, a state-owned company called Mon-Atom. The company filed a civil defamation lawsuit against the newspaper over an article of 22 April 2021 titled ‘Uranium hazards are destroying Dornogovi’s migratory gazelles’, written by environmental journalist Ulziibayar Sanjaajav, and demanded that the newspaper publish a retraction and pay 100 million Mongolian tugrik (approx. US$38,065) in compensation.
Furthermore, on 11 January 2022, the Capital City Criminal Court of Appeals dismissed a case brought against Amartuvshin Dorj and others for organizing a flash mob in protest against the restrictive pandemic regulations of the government in June 2021.

Source: ifex.org

DIGITALIZATION IS AN OPPORTUNITY TO DEVELOP COLLECTIVELY, AND WIN TOGETHER - INTERVIEW

We are living in a technology dependent era. Technology allows us to save time and provides us with the opportunity to complete each task faster and more efficiently. In this regard, one of the priority objectives of the Mongolia Government is to become a “Digital Nation” which has been reflected in its action program for 2020-2024. As for the capital city, which is home to nearly half of the country’s total population, the respective authorities have taken measures to   ensure that the city is able to solve its problems using digital technology.
Cities around the world have also started using information technology in dealing with various issues that big cities face, such as public participation, corruption, and complex governmental bureaucracy. For instance, the city of Moscow, capital of Russia, started solving problems most common amongst cities such as, public service, congestion, corruption, and complex governmental bureaucracy, with the help of information technology.

Source: GoGo News

S. BATBOLD: DESPITE THE PANDEMIC, OUR TRANSPORT AND LOGISTICS SECTOR HAS CONTINUED TO ADVANCE - INTERVIEW

We discussed road construction, transportation and logistical issues with Mr. S.Batbold, the State Secretary of the Ministry of Road and Transportation.
Due to the pandemic, transporting mineral products by rail is more effective than by road. Can we start the discussion with information about the new railway: how is the construction going and when will it start operating.
The past two years were challenging due to the pandemic, but railway construction never stopped. The implementation of the Tavan Tolgoi-Zuunbayan rail project is about 85%. We plan a test train on 15th March in accord with the approved plan. 73.9% of the Tavan Tolgoi-Gashuun Sukhait railway was complete as of the end of 2021. All construction works are expected to be completed in the second quarter of 2022.
In accordance with the decision of the Government of Mongolia to launch the Bogd Khan Railway Project by 2021, Tavan Tolgoi Railway LLC was granted a license to build…

Source: Mongolian Mining Journal

SHOULD WE PROVIDE FREE PERIOD PRODUCTS? - EDITORIAL

Parliamentarians Ts.Munkhtsetseg, Ch.Undram and M.Oyunchimeg have raised the issue of legalizing the provision of free period products to girls and women, which has become a topic of discussion among netizens. Some people oppose that this is a form of welfare policy and that it cannot reach the target group, while many proponents believe that addressing this issue will have a significant impact on promoting human rights and creating a favorable learning environment for girls.
In Mongolia, it is necessary to raise our voices for the rights of girls and take action to protect their rights. In fact, it is true that some herder households in remote soums, as well as low-income citizens, are unable to afford period products. For instance, a girl living in a rural town was beaten by her dormitory teacher for making period pads with her blanket. There are many other tragic cases related to period products.

Source: The UB Post

XI AND PUTIN AGREE ON ANOTHER GAS PIPELINE - EDITORIAL

Just before the opening of the Winter Olympics in Beijing on February 4, Russian President Vladimir Putin became the first foreign leader to meet Chinese President Xi Jinping face-to-face in two years (Mongolian Prime Minister Oyun-Erdene met with Xi two days later).
Xi and Putin subsequently issued a joint statement through the Kremlin's press office. In the statement, China openly supported Russian opposition to the further enlargement of NATO and Moscow's other security demands in Europe, representing a new level of unity between the two countries.
At the same time, Russian gas giant Gazprom signed a 30-year contract with the state-owned China National Petroleum Corporation (CNPC) to supply gas to China through a new pipeline from the island of Sakhalin.
Once operational, the new line will increase Russian gas supply to China by 10 billion cubic metres per year (bcm/yr), to a total forecast of 48 bcm/yr.

Source: Mongolia Weekly

 


NewsWire

Issue 714 –  14 January 2022

BCM NewsWire provides short summaries of news collected from around the world. Each article is kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full article.

Economy

• Mongolia’s 2020 Poverty Rate Estimated at 27.8 Percent
• Transport resumes for containers with import goods and products
• BoM purchases 21 tons of precious metal in 2021
• Mongolia exports all iron ore to China in 2021
• “Loan interest rates decreased by 2.5 percent”
• Turkish Ambassador puts forth request for flights to other Asian countries through Ulaanbaatar
• Two ministers working to find reasons behind smoke increase in Ulaanbaatar
• Holding up more than half the sky: women and childcare in Mongolia - Editorial
• Thirty years of error must be corrected in three years... - Editorial

• Today marks 30th anniversary of the adoption of democratic Constitution of Mongolia
• Ministry of Economy and Development established
• Ministry of Digital Development and Communications established
• Parliament to review bill on Mining Product Exchange
• Bill to suspend scheduled inspections for three years
• Latest on Covid-19 in Mongolia
• Legal status of associations discussed
• Prime Minister of Mongolia Looks Forward to Beijing Olympic Games
• Deputy Prime Minister to lead the working group at the Zamiin-Uud Erlian border port
• Sebastien Surun: France aims to support Mongolia’s sovereignty - Interview
• Mongolia’s Female Peacekeepers: A Case Study for Gender Parity - Editorial
• Principle of civil service appointment is distorted - Editorial

Business

• Mongolia stock market turns heads with 133 pct gain
• New work roster a big win for Mongolian miners
• Erdene Resource Development Receives Tax Stabilization Certificate for Bayan Khundii Gold Project
• Jade Gas strikes 58 metres of gas-bearing coal at Mongolian well
• Talon Energy gearing up for drilling at Mongolian coal seam gas project
• Altan Tsagaan Ovoo (ATO) Gold and Silver Project, Dornod, Mongolia
• Pentwater Issues Letter to Rio Tinto Board Calling for Action on Corporate Governance Failures
• Doosan Engineering and Construction expresses interest in residential construction
• AM Best Affirms Credit Ratings of Mandal Daatgal JSC
• G.Gangamurun: SMEs have launched their products in the Japanese market - Interview

Global and Regional Trends

• WHO says omicron cases are ‘off the charts’ as global infections set new records
• U.S. economy can withstand Fed tightening, Omicron surge, Powell says
• Peru sees 60 pct increase in mining tax revenues
• Kazakh president says mining companies must pay higher taxes
• Gold Outlook 2022
• Nickel and copper march to fresh peaks on supply concerns
• Oil holds near USD 85/bbl on stronger demand prospects
• China Electric Vehicle Sales Up 145 pct in 2021
• Indonesia allows 37 coal ships to leave as export ban eased
• Japan 'economy watcher' sentiment rose to 16-year high in December
• 2022 New Year’s Resolutions for Asia’s Biggest Economies - Editorial

• The BCM Board Appoints Mr. Tsevegmid Tumentsogt as Chairman
• UNICEF: Guidance for employers on flexible work arrangements and other good workplace practices in the context of Covid-19
• The BCM and National Development Agency establish Memorandum of Understanding
• UNICEF: Call for actions of the private sector to reduce children’s exposure to air pollution in UB
• BCM Guideline for Companies to Combat Air Pollution
• Member-to-member special offers & benefits

Economic Indicators

• Inflation
• Central Bank Policy Rate
• Sovereign Credit Rating
• Currency Rates

ECONOMY

MONGOLIA’S 2020 POVERTY RATE ESTIMATED AT 27.8 PERCENT

The National Statistics Office (NSO) of Mongolia and the World Bank today announced their joint official poverty rate estimation for 2020. The two organizations have collaborated on poverty measurement based on household consumption surveys since 2002.
According to the 2020 Household Socio-Economic Survey (HSES), the national official poverty rate in 2020 was 27.8 percent^[1], 0.6 percentage points lower than in 2018. This translates to about 903.4 thousand people of Mongolia living in poverty in 2020.
Compared to 2018, the urban poverty rate dropped by 0.7 percentage points to 26.5 percent, while the rural poverty rate fell by 0.3 percentage points to 30.5 percent. Among the poor, 64 percent lived in the urban areas in 2020, with 43 percent living in Ulaanbaatar.
While estimates show that poverty in 2020 was slightly lower than it was in 2018, the COVID-19 pandemic has sharply slowed down the pace of poverty reduction.

Source: World Bank

TRANSPORT RESUMES FOR CONTAINERS WITH IMPORT GOODS AND PRODUCTS

Transportation has resumed for containers with imported goods and products that accumulated at the Erlian border checkpoint of China for three months. 
In order to create the conditions to have uninterrupted transport of goods under pandemic circumstances, a ‘Zero Point’ was established between the borders of Mongolia and China. The Government of Mongolia is carrying out certain works to ensure the continuous transport of export and import goods, and to reduce and stabilize the prices of goods.
Headed by the Deputy Prime Minister, a working group in charge of enhancing the operations of border checkpoints and accelerating the transport of export and import products are currently working at Zamiin-Uud border checkpoint.
Yesterday on January 11, officials led by Deputy Prime Minister S.Amarsaikhan and Minister of Road and Transport L.Khaltar held meetings with authorities of Dornogobi aimag and Zamiin-Uud soum as well as representatives of truck drivers, and became acquainted with the current state of the situation.

Source: Montsame
See also: Views exchanged on operations of Mongolia-China border checkpoints
Works for renewing border checkpoints to complete in 2022
Military personnel to transport goods and freight to Zamiin-Uud

BOM PURCHASES 21 TONS OF PRECIOUS METAL IN 2021

In December 2021, the gold purchase of the Bank of Mongolia (BoM) was 780 kg, raising the BoM’s total precious metal purchase of 2021 to 21 tons.
In December, the BoM branches in Darkhan-Uul and Bayankhongor aimags bought 8.2 kg and 46.4 kg of precious metals respectively.
The average price of BoM’s purchase of 1 gram of gold was MNT 163,695.6 last month.

Source: Montsame

MONGOLIA EXPORTS ALL IRON ORE TO CHINA IN 2021

Mongolia exported 7.11 million tonnes of iron ore in 2021, down 13.36% or 1.1 million tonnes year on year, showed latest data from the Mongolian Customs General Administration (MCGA).
The total export value surged 48.85% on the year to $952 million during the year, data showed.
China was the only destination of Mongolian iron ore during the period.
MCGA didn't release the specific figure for last month, and Sxcoal calculated the exports at 14,300 tonnes based on the overall exports published by the customs authority, falling 97.55% year on year and 97.31% on the month.
The iron ore exports amounted to $1.65 million in December, with average price at $114.86/t, up $22.63/t from a year ago and $31.92/t from a month earlier, data showed.

Source: SXcoal.com

“LOAN INTEREST RATES DECREASED BY 2.5 PERCENT”

On January 11, the State Great Khural’s Standing Committee on Economy heard a progress report for the implementation of the parliamentary resolution on the strategy to reduce loan interest rates, which was approved by the parliament on August 28, 2020.
Governor of the Bank of Mongolia B.Lkhagvasuren said, “A working group consisting of representatives from corresponding organizations was in charge of the implementation of the strategy. As a result, loan interest rates have continuously decreased so far. By the end of 2021, average loan interest rates decreased by 2.5 percent compared to when the strategy was approved in August 2020. Compared to the same period of the previous year, it has also decreased by 1.3 percent - and it currently stands at an annual rate of 14.5 percent. 
As according to the plans drafted for the strategy’s implementation, an objective has been set to have annual loan interest rates be brought down to an average of 12 percent by the end of 2023.”

Source: Montsame

TURKISH AMBASSADOR PUTS FORTH REQUEST FOR FLIGHTS TO OTHER ASIAN COUNTRIES THROUGH ULAANBAATAR

On January 11, Minister of Road and Transport L.Khaltar received Ambassador of the Republic of Turkey to Mongolia Zafer Ateş to exchange views on bilateral relations and cooperation in the transportation sector.
Minister L.Khaltar congratulated the Ambassador on his appointment in Mongolia in May 2021, and expressed willingness to actively cooperate in developing sectoral cooperation aimed at expanding the two countries’ trade, economic, and business relations.
He then highlighted that aviation and road transport makes up a significant portion of sectoral cooperation between Mongolia and Turkey, and underlined the increasing responsibility of transport during the pandemic.
Thus, he put forth a suggestion to organize meetings between corresponding professional organizations in order to further improve relations in air transport, and establish railway connections based on mutually-beneficial, fair principles.
In turn, Ambassador Zafer Ateş expressed his satisfaction with the resumption of flights en route Ulaanbaatar - Istanbul from April 2021, and noted…

Source: Montsame

TWO MINISTERS WORKING TO FIND REASONS BEHIND SMOKE INCREASE IN ULAANBAATAR

Recently, air pollution in Ulaanbaatar city increased sharply. Thus, N.Tavinbekh, the Minister of Energy, and N.Urtnasan, the Minister of Nature, Environment and Tourism, are working at refined coal sales points in Bayankhoshuu.
There is a complaint that elders and children who stay home purchase refined coal during the day time, but other residents who don’t stay at home during the day cannot find the refined coal in the evening. 
Sales points give orders to Tavan Tolgoi Tulsh LLC. According to that, it is supplied from the factory and 5 tons of fuel is delivered to the sales points every day. 
There are a total of 600 sales points in Ulaanbaatar. If orders are not placed at the point, there is a risk that citizens are unable to purchase the refined coal. The sales staff explained to the Ministers that the refined coal at the sales points which are located along the road runs out very quickly. 

Source: GoGo News

HOLDING UP MORE THAN HALF THE SKY: WOMEN AND CHILDCARE IN MONGOLIA - EDITORIAL

Even before the COVID-19 pandemic, social norms in Mongolia have long dictated that women shoulder the heavier burden of childcare and domestic work. COVID-19 has not only laid bare this reality, but has exacerbated it.
As the pandemic struck, the Government of Mongolia responded quickly by shutting schools as early as January 2020, leaving many parents in a difficult predicament. The additional work of home schooling saw the care burden increase significantly, for both men and women. However, deeply entrenched patriarchal norms and structures meant that this had a disproportionate impact on women. Recent qualitative research by The Asia Foundation revealed that working mothers had to make major changes to adapt, such as closing their businesses, reducing operations, and quitting their jobs.
Many working mothers, however, did not have the option of leaving work to care for their children, either full- or part-time. 

Source: DevPolicy.org

THIRTY YEARS OF ERROR MUST BE CORRECTED IN THREE YEARS... - EDITORIAL

There is a saying that goes “It is harder to renovate an old house than to build a new one”. Ulaanbaatar city is the same as an old house. It would be hard to renovate this house that has been damaged by many years of exposure to the sun, wind, rain, and storms. But we need to repair old possessions and replace them with new ones to improve our living environment.
According to the Law on the Legal Status of Ulaanbaatar City, every person living in the capital city has the right to be provided a healthy and safe environment and a well-established infrastructure and demand the authorities to ensure this right. 
First, ger districts will be redeveloped. The redevelopment will require the construction of roads, bridges, electricity, and heat networks. 
The funding source of MNT 420 billion - taxes paid by the city residents the Government of Mongolia has decided not to take away - will be available until 2024.

Source: GoGo News

POLITICS

TODAY MARKS 30TH ANNIVERSARY OF THE ADOPTION OF DEMOCRATIC CONSTITUTION OF MONGOLIA

Today (January 13) marks the 30th anniversary of the adoption of the democratic Constitution of Mongolia.
Mongolia has had four constitutions in its history with each of its discussions held in 1924, 1940, 1960, and 1992 respectively. While the earlier constitutions were revolved around the Marxist ideology, the new 1992 Constitution is considered democratic as it protects the common interest of the citizens of Mongolia without discrimination of social class and ideology. Thus, the day of January 13 came to be marked as Constitution Day each year.
For the new democratic Constitution of Mongolia, discussion took place among over 430 deputies of the People’s Great Khural, and over 50 members of the State Baga Khural over the course of 75 days. A public discussion was also held for the new Constitution, which involved about 75 percent of 1.2 million citizens, the total population of Mongolia at the time, and over 200 thousand suggestions were received on the matter.

Source: Montsame
See also: Constitutional Law Institute established at NUM School of Law
Exhibition for the 30th anniversary of adoption of democratic constitution opens

MINISTRY OF ECONOMY AND DEVELOPMENT ESTABLISHED

At its meeting on January 6, the Cabinet approved the structure and strategy of the Ministry of Economy and Development and appointed Minister of Finance B.Javkhlan as its acting minister and Kh.Batjargal as acting state secretary.
Deputy Chief of the Cabinet Secretariat U.Byambasuren and other officials visited the National Development Agency to present the Cabinet’s decision.
Afterwards, Minister B.Javkhlan held a meeting with the employees of the now-dissolved National Development Agency and gave instructions, emphasizing that he was pleased to collaborate with NDA on development policy documents, particularly the New Revival Policy, as the Finance Minister and that it is fully possible for the Ministry of Economy and Development to begin its activities promptly as the NDA has been dissolved and its functions have been transferred to the new ministry at the Cabinet’s meeting.

Source: Montsame

MINISTRY OF DIGITAL DEVELOPMENT AND COMMUNICATIONS ESTABLISHED

During its irregular meeting on January 6, the Cabinet dissolved the Communications and Information Technology Authority of Mongolia (CITA) and approved the structure and strategy of the Ministry of Digital Development and Communications.
Minister of Education and Science L.Enkh-Amgalan will serve as the Acting Minister of Digital Development and Communications and B.Bolor-Erdene as the ministry’s Acting State Secretary. Officials led by Deputy Chief of the Cabinet Secretariat U.Byambasuren worked at CITA to announce the Cabinet’s decision.
“The State Great Khural and the Government have identified information and communications technology as a key economic sector. Moreover, Mongolia’s long-term, development policy ‘Vision 2050’ and the Government’s action program for 2020-2024 include a goal to become a digital nation and plans are afoot to  digitize 90 percent of government services by 2024,” said Minister L.Enkh-Amgalan. 

Source: Montsame

PARLIAMENT TO REVIEW BILL ON MINING PRODUCT EXCHANGE

Minister of Mining and Heavy Industry G.Yondon handed over the first bill on Mining Product Exchange to Speaker of Parliament G.Zandanshatar on January 5.
In accordance with Article 23 of the Law on Legislation, the bill on Mining Product Exchange was developed with seven chapters to organize fair, open and transparent mining trade in Mongolia, provide the opportunity to set real market prices, increase investment in the mining sector by regulating exports through a unified policy. It is also expected to expand the sector’s contribution to the country’s economic growth.
The bill defines the legal and organizational form of the mining exchange, reflects its specific functions and activities, sets standards, and defines the types of trading, payments and negotiations.
It also provides for detailed relations for ensuring guarantees, granting the right to participate in stock exchange trading, ensuring transparency and fairness of trading, creating a public database, and disseminating information to the public.

Source: The UB Post

BILL TO SUSPEND SCHEDULED INSPECTIONS FOR THREE YEARS

At its regular meeting today, the Cabinet decided to submit to the Parliament a Bill on temporary suspension of some types of state inspections.
"Annual scheduled inspections carried out under the Law on State Inspection cause significant problems to businesses and enterprises. Therefore, the Bill states to suspend the scheduled inspections for three years," said Minister of Justice and Internal Affairs Kh. Nyambaatar at the press conference today.
"However, inspections to the Bank of Mongolia, Financial Regulatory Committee, customs, taxation, health, social insurance, and child protection fields will be conducted as usual. Citizens’ complaints related to human life, health and food safety will be inspected as well," added the Minister.
If the Bill is approved, it will be effective from February 1, 2022 to December 21, 2024.

Source: Montsame

LATEST ON COVID-19 IN MONGOLIA

Below are headlines from the past week concerning Covid-19 in Mongolia:

• MOH: If Covid-19 new cases increases in this way, the health sector will not be able to cope
• Mongolian Red Cross Society donates 50,000 PCR test kits
• Mongolia's COVID-19 Death Toll Exceeds 2,000
• COVID-19: 2,279 new cases, three deaths reported
• COVID-19: 1,818 new cases, two deaths reported
• COVID-19: 1208 new cases reported
• No restrictions to be imposed during Omicron wave
• Mongolia becomes one of first Asian countries administering fourth vaccine dose
• COVID-19: 649 new cases, two deaths reported
• 12 cases of Omicron variant confirmed in Mongolia
• COVID-19: 773 new cases reported
• PM orders decision on 3-day mandatory isolation to be nullified
• Mongolia confirms first 5 local cases of Omicron

LEGAL STATUS OF ASSOCIATIONS DISCUSSED

During its plenary session on January 6, Parliament reviewed a bill on the Legal Status of Associations, which was submitted by the government on November 24, 2021.
Speaker of Parliament G.Zandanshatar gave a five-day break for the discussion of the bill afterthe Mongolian People’s Party (MPP) caucus in Parliament requested it.
Chairman of the caucus D.Togtokhsuren said that due to a large number of comments and proposals made by lawmakers, the MPP caucus needs more time to review them.
Professional associations with official membership and public legal entities performing public functions shall be separated from the unified organizations on a voluntary basis in accordance with the bill. The bill stipulates that in addition to clearly defining their purposes in their rules, associations should explain the direction of their activities in accordance with the International Classification of Nonprofit Organizations, and specify their funds.

Source: The UB Post

PRIME MINISTER OF MONGOLIA LOOKS FORWARD TO BEIJING OLYMPIC GAMES

As many western countries led by the US diplomatically boycotting the Beijing Olympic games Prime Minister Oyun-Erdene is expected to attend the opening ceremony along with President Putin and the UN Secretary-General.
Indeed, Mongolians will be cheering the Olympic games in Beijing and will be mum about human rights issues in Xingjian.
Any utter on the matter can cost Mongolia dearly. No politician wants to provoke Beijing's anger.
Oyun-Erdene will try to use the Olympic occasion to resolve cross-border transport disruptions that the country is continuing to experience. Whether China would allow exceptions to Mongolia as it pursues aggressive COVID zero is questionable.

Source: Mongolia Weekly

DEPUTY PRIME MINISTER TO LEAD THE WORKING GROUP AT THE ZAMIIN-UUD ERLIAN BORDER PORT

On January 5, the Prime Minister of Mongolia issued Decree No. 196 on the establishment of a working group to improve the operation of border crossings and intensify the transportation of export and import goods during the coronavirus epidemic. 
S.Amarsaikhan, the Deputy Prime Minister of Mongolia, will lead the working group which aims to resolve the current situation at the Zamiin-Uud and Erlian border port in a mutually beneficial manner through negotiations with the Chinese party, and to take comprehensive measures to provide management and organization to the border administration.
The Deputy Prime Minister held an urgent meeting of the working group to approve and implement an action plan to improve coordination and accountability at all levels, and to organize discussion with relevant Chinese authorities. 

Source: GoGo News

ESTABLISHING A WEALTH FUND WITH ERDENES MONGOL’S DIVIDENDS - EDITORIAL

Erdenes Mongol is officially en route to becoming a wealth fund, as the Government seeks to get the Parliament to approve its draft Law on the National Wealth Fund. While the full draft law has not yet been made public, the main issues that it covers were presented. In the past, there have been questions around how Erdenes Mongol could be transformed into a wealth fund and whether this would increase the financial burden in the mining sector. It has become clear from the statement of O.Batnairamdal, Deputy Minister of Mining and Heavy Industry,  that the creation of this new wealth fund will not put additional financial burdens on the mining sector. Under the draft law, Erdenes Mongol will also undergo a structural change.
Erdenes Mongol LLC was established to represent the state on strategic mining deposits. The question now is whether it could be transformed into a company to transfer high dividends to Mongolians.

Source: Mongolian Mining Journal

MONGOLIA’S FEMALE PEACEKEEPERS: A CASE STUDY FOR GENDER PARITY - EDITORIAL

In a traditionally patriarchic sectors – such as the military, police, and security forces – women around the world have faced political, social, and cultural barriers for centuries. Since the 1950s, the United Nations’ operations have led and promoted the inclusion of women in global missions. However, to this day, the number of women in higher ranks and leadership positions remains disappointingly low. The experience of Mongolian female peacekeepers can exemplify these global shortcomings.
Throughout history, women from diverse cultural and ethnic backgrounds have served as shieldmaidens, wartime strategists, and behind-the-curtain contributors in making modern history. Unfortunately, in modern times, women’s roles when serving the armed forces were switched to support functions, such as nursing, cooking, caregiving, and administration. These roles, in turn, prevent women from receiving promotions, blocking them from advancing in career and rank due to their lack of experience in other fields within the security sector.

Source: The Diplomat
See also: Mongolia ranks 26th with the number of female peacekeepers

PRINCIPLE OF CIVIL SERVICE APPOINTMENT IS DISTORTED - EDITORIAL

Mongolians protest against unfair and double standards, in which laws and regulations apply differently to the authorities and citizens. But unethical authorities, who cannot apologize for their illegal actions, continue to violate their own decisions. An example of this is the appointment of Chairwoman of the government agency, Communications and Information Technology Authority of Mongolia (CITA), B.Bolor-Erdene. She has served in the civil service for less than two years, but she was appointed as a ministry’s acting secretary in violation of the Law on Civil Service. The citizens are displeased with this. 
During its irregular meeting last week, Cabinet appointed Chairman of the National Development Agency Kh.Batjargal as acting state secretary of the Ministry of Economic Development, while Chairwoman of CITA B.Bolor-Erdene was appointed to the Ministry of e-Development and Communications. In order to make the appointments, CITA and the National Development Agency were dissolved.

Source: The UB Post

BUSINESS

MONGOLIA STOCK MARKET TURNS HEADS WITH 133 PCT GAIN

Mongolia has long been a

 


NewsWire

Issue 713 –  7 January 2022

BCM NewsWire provides short summaries of news collected from around the world. Each article is kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full article.

Economy

• Foreign trade up 25 pct in 2021
• Coal export drops over 40 pct in 2021
• Mongolia strengthens its exploration work and plans to develop the next Erdenet and Oyu Tolgoi
• MNT 420 billion to be annually allocated to reduce traffic congestion
• Thermal power plants to be built in capitals of 10 provinces
• Number of freight trains via Mongolian territory reaches 2,500 in 2021
• Households to enjoy electricity tariff discount until May 31
• Toxic Chemicals Hide in Popular Food Containers - Editorial
• Carl Krug: Mongolia has enough resources to occupy niche markets - Interview
• 2021 Wrap-Up - Are Mongolians richer today than in 2011? - Editorial
• ADB Begins New Era of Partnership with Mongolia - Video
• 2021 was the year of successful infrastructure projects - Editorial
• Negotiations succeed to agree on railway border crossing point - Interview

• Draft resolution to increase benefits to Mongolia from Oyu Tolgoi project approved
• 'A new revival policy to stimulate economy’ approved
• China-Mongolia-Russia Economic Corridor: An Assessment
• Revised Law on Labor allows to resolve labor disputes promptly
• Cabinet approves structure of two ministries soon to be established
• Latest on Covid-19 in Mongolia
• Legal Summary Of Law On Workforce Migration
• Resolution on Khushig Valley free economic zone to be submitted to parliament
• J.Ganbaatar MP: Policy rate needs to be reduced
• 50 percent of Ulaanbaatar city government offices moved to Yarmag
• A plan to transform Erdenes Mongol LLC into the Development Fund - Interview
• We need to look at the benefits of dynamic growth to be effective in the future - Interview
• Sebastien Surun: France aims to support Mongolia’s sovereignty - Interview
• ‘Happy’ UB for officials, not for suburban kids - Editorial
• The Fall of the Soviet Union: Mongolia’s Path to Democratic Revolution - Editorial

Business

• Mongolian stock market top performing stock market in the world in 2021
• Elixir Energy receives industry award following 2021 drilling program
• Tax Treaty between Italy and Mongolia has Entered into Force
• Best mining companies awarded
• Updates made to temporary regulations on business operations during COVID-19 pandemic
• EuroChamber position paper on “revised labour law” implementation
• Supervision policy document of the Financial Regulatory Commission approved
• Primary Market Orders Exceeded Bogd Bank's Target
• "Central Express CVS" JSC to Expand the Number CC Convenience Store Branches in Partnership with Petrovis Group
• TDB Mongolia's best corporate and investment bank 2021
• Golomt Bank best bank for CSR 2021
• FRC warning on coins and tokens
• Steppe Gold Hits New 12-Month Low at CAD 1.14

Global and Regional Trends

• World economy in 2022: the big factors to watch closely
• China’s Core Economic Issues in 2022
• World’s largest trade deal is in force, but there’s still ‘work to be done,’ says Singapore minister
• OPEC+ agrees oil output hike from February as omicron Covid cases soar
• Central banks accelerate shift from dollar to gold worldwide
• The top-performing commodity of 2021 rose 437 pct
• Southeast Asia's soaring exports fuel hopes of recovery in 2022
• Singapore’s GDP grows 7.2 pct after a year of recession
• Asia's lesser-known tech manufacturers shine in 2021 stock market
• Nikkei Asia: Coups, couriers and COVID: The Big Story 2021 Hall of Fame
• Top 10 Investment Themes For 2022 - Editorial

• The BCM Board Appoints Mr. Tsevegmid Tumentsogt as Chairman
• UNICEF: Guidance for employers on flexible work arrangements and other good workplace practices in the context of Covid-19
• The BCM and National Development Agency establish Memorandum of Understanding
• UNICEF: Call for actions of the private sector to reduce children’s exposure to air pollution in UB
• BCM Guideline for Companies to Combat Air Pollution
• Member-to-member special offers & benefits

Economic Indicators

• Inflation
• Central Bank Policy Rate
• Sovereign Credit Rating
• Currency Rates

ECONOMY

FOREIGN TRADE UP 25 PCT IN 2021

Mongolia's foreign trade turnover increased to 16.2 billion U.S. dollars in 2021, up 25 percent from the previous year, data released by the Mongolian Customs General Administration showed Thursday.
The country registered a foreign trade surplus of 2.4 billion dollars, said the administration.
Mining products accounted for 81.3 percent of the mineral-rich country's total exports in 2021, it said.

Source: Xinhua

COAL EXPORT DROPS OVER 40 PCT IN 2021

Mongolia exported 15.9 million tons of coal in 2021, down 44.3 percent from the previous year, the country's Ministry of Mining and Heavy Industry reported on Wednesday.
The sharp drop is directly related to restrictions to contain the COVID-19 pandemic, the ministry said in a statement.
Coal is Mongolia's main export commodity.
The country has planned to export at least 36 million tons of coal in 2022, according to authorities.

Source: Xinhua, News.mn
See also: Coal and iron concentrate export decreases due to border closure

MONGOLIA STRENGTHENS ITS EXPLORATION WORK AND PLANS TO DEVELOP THE NEXT ERDENET AND OYU TOLGOI

Mongolian Minister of Mining and Heavy Industry Ge Yundeng recently provided information on the rules and regulations for the issuance of exploration licenses.
He said, "The government meeting held on December 14 authorized the Minister of Mines and Heavy Industry to amend and approve the rules and regulations for the issuance of exploration licenses. The rules and regulations for the issuance of mineral licenses are approved by the central administrative department of geology and mineral resources of the State.
The rules and regulations for the issuance of mineral licenses approved by the Minister of Mines and Heavy Industry Decree No. A28 of 2018 are still valid. The "Vision 2050" long-term development policy adopted by the National Great Hural in 2020 resolution 52 clearly stated that geological research will be strengthened to ensure medium and long-term economic development and increase mineral resources. Unfortunately, in accordance with the current regulations, it is impossible to achieve the above goals.

Source: inf.news

MNT 420 BILLION TO BE ANNUALLY ALLOCATED TO REDUCE TRAFFIC CONGESTION

Throughout the year, city authorities always made efforts to reduce traffic congestion. In the past, three bridges (Narnii Bridge, Nairamdliin Bridge, Yarmag Bridge), roads, and more tunnels have been built – yet, congestion has not decreased. Instead, due to the annual import of 80 thousand vehicles on average, the issue became even worse. Eventually, there was no more space to further widen the road, and not enough budget for large-scale construction (about MNT 50 billion per year), so restrictions and fines were imposed.
Recently, however, this imbalance has slightly lessened, allowing the capital city authorities to do significant work. During the extended meeting on May 19, 2021, for the first time, the Government of Mongolia discussed the pressing issues of Ulaanbaatar and made the decision to annually allocate MNT 420 billion to solve traffic congestion.

Source: GoGo News, Montsame

THERMAL POWER PLANTS TO BE BUILT IN CAPITALS OF 10 PROVINCES

The action program of the government of Mongolia includes an objective to develop new thermal power sources and infrastructure to meet the increasing heat demands of aimag capitals. To achieve the objective, the Ministry of Energy is implementing the MON-14 project funded by a soft loan from the Republic of Korea to build thermal power plants in the capitals of 10 aimags.
The construction works have commenced in the capitals of seven aimags namely Bayankhongor, Gobi-Altai, Gobisumber, Zavkhan, Uvurkhangai, Sukhbaatar and Khentii and the sides signed the project agreement on December 27. The signing ceremony was attended by Minister of Energy N.Tavinbekh, Ambassador of the Republic of Korea to Mongolia Lee Yeo Hong and other officials.
The general contractor, Byucksan Engineering, is building the thermal power stations, pipelines, and heat transmission facilities in the aimag capitals in 26 and a half months.

Source: Montsame

NUMBER OF FREIGHT TRAINS VIA MONGOLIAN TERRITORY REACHES 2,500 IN 2021

The number of freight trains via Mongolian territory for Asia-Europe and China-Russia routes reached 2,500 at the end of 2021, an increase of nearly 200 from 2020, local media reported on Monday.
Citing a statement from the company, the report said that the number demonstrates that the Ulan Bator Railway company, Mongolia's official railway operator, has not only become an active participant in regional and international transport and logistics, but also a strong competitor in the land corridors connecting China and Europe.
There were 2,312 such freight trains traveling through Mongolia in 2020, according to the statement.
Mongolia plans to become a transit state, offering the shortest route from Europe to Asia through its territory, Mongolian President Ukhnaa Khurelsukh has said.

Source: Xinhua
See also: Ulaanbaatar Railway becomes an active participant in international transport and logistics

HOUSEHOLDS TO ENJOY ELECTRICITY TARIFF DISCOUNT UNTIL MAY 31

At its regular meeting on December 31, the Cabinet decided to provide electricity tariff discounts to households until May 31, 2022, Minister of Energy N.Tavinbekh announced following the meeting.
Specifically, up to 350 kW for ger area households and up to 250 kW of electricity bills for apartment households will be exempted and any excess bills will not be subject to the decision.
To mitigate the economic impact of the pandemic, households and enterprises have been fully exempt from electricity and other utility bills from December 1, 2020 to this day, during which MNT 890 billion funding has been provided.
The discounts are limited on account of the increased load of the energy sector and the average electricity consumption of households is 250-350 kW. The Minister emphasized that 73 percent of all households will be able to be fully exempt from their electricity bills.
The discounts will be provided with funding from major mining projects and programs as instructed by the Prime Minister.

Source: Montsame

TOXIC CHEMICALS HIDE IN POPULAR FOOD CONTAINERS - EDITORIAL

Otgonbayar Ivanov enters his workshop with a smile, cradling a burl of wood from the nearby forest. The 50-year-old was once a cattle herder. But since 2019 he has focused on transforming knotted wood like this into plates, utensils and storage containers, which he uses and sells.
He began creating items from wood to avoid using plastic containers, many of which are not safe for food storage. “The use of plastic containers is out of control,” he says.
In Mongolia, families and individuals often reuse plastic containers that once held oil, pesticides or other toxic chemicals. Because these containers are inexpensive and widely available, they have become convenient storage for water, milk and food. A 2015 survey of nearly 300 households, conducted by Mongolia’s Toxicology Research Association and published on the website of the Ministry of Food, Agriculture and Light Industry, found 90% of respondents used between three and four unsafe plastic containers to store food.

Source: Global Press Journal

CARL KRUG: MONGOLIA HAS ENOUGH RESOURCES TO OCCUPY NICHE MARKETS - INTERVIEW

We interviewed Mr. Carl Krug, Senior private sector development expert to the EU-Trade Related Assistance to Mongolia (TRAM) Project, on the outcomes of the project and opportunities in the development of non-mining export.
Can you give us a brief information on the initial objectives of the EU-TRAM project and its scale of operation?
The TRAM project funded by the European Union was implemented from March 2017 to July 2021 as a part of the Partnership and Cooperation Agreement (PCA) between the European Union and Mongolia. About three years ago, the project together with the partners identified four sectors that had the greatest potential on the EU market, which were textile, leather, cosmetics and seabuckthorn. Within the three main components of the project including trade policy, trade facilitation and export development, we partnered with the Ministry of Foreign Affairs, the Customs General Administration and Mongolian National Chamber of Commerce respectively.

Source: Mongolian Economy

2021 WRAP-UP - ARE MONGOLIANS RICHER TODAY THAN IN 2011? - EDITORIAL

As 2021 ends, I’m reflecting on all the changes I’ve seen since I moved to Mongolia in 2012. As I’ve thought beyond the KFC’s, the CU’s, the new malls, and other surface level “developments”, I’ve been thinking of larger questions. One of the bigger of these large questions is a simple one, are Mongolians making more money than they used to?
It seems that every time you see statistics about average salaries in Mongolia, it seems to always be increasing. This was reinforced recently when the Lemon Press newsletter (link in Mongolian) noted that 6% of Mongolian make more than 3 million Tugriks per month (about $1,050 USD at the current exchange rate).
Their data, sourced from the National Statistics Office (of course where else?), also showed that nearly 25% of Mongolians make more than 1.5 million Tugriks per month. Lemon Press only looked at 2020 to 2021, and given my contemplative mood I wanted to compare a larger date range.

Source: Mongolian Data Stories

ADB BEGINS NEW ERA OF PARTNERSHIP WITH MONGOLIA - VIDEO

The Asian Development Bank (ADB) has launched a new country partnership strategy (CPS) for Mongolia covering 2021–2024 to help the country recover from the coronavirus disease (COVID-19) pandemic and lay resilient foundations for inclusive and sustainable growth.
Under the new strategy, ADB’s operations in Mongolia will focus on three strategic priorities: inclusive social development and economic opportunity; climate-resilient infrastructure; and sustainable, green, and climate-conscious development.
The CPS is aligned with Mongolia’s Vision–2050 and the Government Action Plan, 2020–2024, which aim to ensure the COVID-19 recovery by boosting economic revitalization, job creation, and more inclusive and sustainable development.

Source: ADB

2021 WAS THE YEAR OF SUCCESSFUL INFRASTRUCTURE PROJECTS - EDITORIAL

Mongolia’s mining sector is entering the new year, overcoming many challenges caused by the COVID-19 pandemic. Repeated quarantines and border closures slowed down many ongoing and new projects and put them at risk. However, the government and relevant ministries took a number of important steps to address these issues.
Mining involves a comprehensive system of accountability. The work to reform the legal environment of the mining sector intensified, and some draft laws were developed and submitted to the parliament during the autumn session. It should be noted that the draft laws were developed in accordance with the Constitutional Amendment and the “Vision 2050” Strategic Policy Document as well as the Action Plan of the Government of Mongolia for 2020-2021.
Under the policy “From mining to processing”, sector policymakers worked on establishing a brand new system of “sales and distribution” in 2021, focusing on the rapid development of the processing sector beyond the level of exploration and production.

Source: Mongolian Mining Journal

NEGOTIATIONS SUCCEED TO AGREE ON RAILWAY BORDER CROSSING POINT - INTERVIEW

For a landlocked country, railways are a most important strategic infrastructure to export minerals. At the Cabinet meeting on 17 November 2021, the point of intersection of Gashuunsukhait-Gantsmod railway was determined. MMJ spoke to N. Udaanjargal, CEO of Tavan Tolgoi Railway LLC on the long-awaited agreement and the construction of the railway.
The Government announced that the railway crossing point at Gashuunsukhait-Gantsmod border has been finally identified. Where is the location of the junction?
-It’s a long story, so let’s talk a little bit about the history. Mongolia has only one railway crossing with its southern neighbor. In the case of this Zamyn-Uud port, an agreement was first reached in 1952, the railway was completed in 1955, and trains started moving in 1956. The broad gauge railway from the Mongolian side continued on to Chinese territory and the shipments were unloaded in Jining city.

Source: Mongolian Mining Journal

POLITICS

DRAFT RESOLUTION TO INCREASE BENEFITS TO MONGOLIA FROM OYU TOLGOI PROJECT APPROVED

At the plenary meeting of the State Great Khural (Parliament) today, December 30, the resolution on Measures to be taken to ensure the benefits to Mongolia from Oyu Tolgoi gold-copper mine has been approved.
Following measures reflected in the resolution:
- To write off Mongolia's USD 2.3 billion-debt for its share (34 percent) in the Oyu Tolgoi copper-gold project. 
- To terminate the Oyu Tolgoi Underground Mine Development and Financing Plan, known as ‘Dubai Agreement’ and conduct an independent audit into the financing of the project's underground expansion;
- The costs required until the first half of 2023, when the underground mine is commissioned, shall be covered by the investors, not incurring additional debts to Erdenes Oyu Tolgoi LLC;
- To supply electricity for Oyu Tolgoi project from the energy grid of Mongolia
- To ensure the implementation of tax acts

Source: Montsame

'A NEW REVIVAL POLICY TO STIMULATE ECONOMY’ APPROVED

At the plenary meeting of the State Great Khural (Parliament) today, December 31, the draft resolution on ‘Approval of New Revival policy’ submitted by the Government has been approved.
The proposal to approve the draft resolution with its first discussion has been supported by the majority of MPs who attended the plenary session. Thereafter, the draft resolution on ‘Approval of New Revival policy’ has been approved with the support of 84 percent of the attended MPs.
A new revival policy to stimulate economy in a pandemic era aims at ensuring political and macroeconomic stability, accelerating public-private partnerships, creating a favorable business environment, improving the environment for foreign and domestic investment, as well as implementing fiscal reforms. 
The policy document defines the SIX SET OF PROBLEMS that have been hindering the development of Mongolia, and its solutions. These are Border Checkpoint Recovery, Energy Recovery, Green Growth Recovery, and State Productivity Recovery.

Source: Montsame

CHINA-MONGOLIA-RUSSIA ECONOMIC CORRIDOR: AN ASSESSMENT

Chinese President Xi Jinping’s colossal infrastructure project - Belt and Road Initiative (BRI) -plans to create a vast network of roadways, railways, oil and gas pipelines, and streamlined border crossings stretched from East Asia to Europe. Although Xi launched BRI in 2013, it has been devised on decades of experience to expand China’s global strategic footprint. Within BRI, China-Mongolia-Russia Economic Corridor (CMREC hereafter) is the shortest land corridor between Mongolia and its neighbours that opens up alternative transit routes to facilitate trade and investment in the Eurasian region. Moreover, CMREC involves China, Mongolia, and Russia, all of whom have comprehensive strategic partnerships with each other.
On 11th September 2014, Xi proposed a trilateral regional initiative to link China’s BRI, Mongolia’s Development Road Initiative (referred to as Steppe Road), and Russia’s Trans-Eurasian Railway Network. As a buffer state between China and Russia, Mongolia’s geostrategic location is crucial for linking the BRI, Steppe Road, and Trans-Eurasian Railway…

Source: Indian Council of World Affairs

REVISED LAW ON LABOR ALLOWS TO RESOLVE LABOR DISPUTES PROMPTLY

The revised Law on Labor comes in force from the beginning of this year. One of the amendments to the law is the creation of the legal condition to resolve labor disputes quickly.
According to the law, every entity and organization that employ 20 or more people, regardless of their form of ownership should establish a permanent commission to resolve labor disputes. Entities with less than 15 employees can apply to the Soum and District Labour Rights Dispute Settlement Committee. The Commission should resolve any labor dispute within 10 days.
Therefore, labor disputes are expected to be resolved quickly and at low cost. Resolving labor disputes at the primary level is found to be more effective, noted Sh,Maya, senior specialist at the Ministry of Labor and Social Protection.
With an aim to address disputes and issues related to labor relation within social partnership, a new chapter on social partnership in labor relations was added to the Labor Law.

Source: Montsame

CABINET APPROVES STRUCTURE OF TWO MINISTRIES SOON TO BE ESTABLISHED

At an irregular meeting today on January 6, the Cabinet approved the strategy and structure of the Ministry of Economy and Development and the Ministry of Digital Development and Communications, which will soon be established.
The Ministry of Economy and Development will consist of seven departments and eight divisions in charge of matters, including policy planning for development, region and industry, development financing, development research and analysis, trade and economic cooperation with 80 job positions.
The Ministry of Digital Development and Communications will consist of six departments and eight divisions in charge of matters such as implementation of digital development policy, communications policy, and cyber safety policy with 87 job positions.
During the meeting, the Communications and Information Technology Authority of Mongolia (CITA) and the National Development Agency have been dissolved.

Source: Montsame

LATEST ON COVID-19 IN MONGOLIA

Below are headlines from the past week concerning Covid-19 in Mongolia:

• S.Enkhbold: Citizens can get the 4th dose of Covid-19 vaccine voluntarily
• Law on COVID-19 Prevention and Combat to remain effective until June 30
• WHO hands over portable ultrasound device and Tamiflu to Ministry of Health
• Mongolia's daily COVID-19 cases surge after New Year celebrations
• More Mongolians getting booster jabs
• MNT 5.6 billion to be spent on prevention of Omicron variant
• Delivery of 2.35 million doses of Pfizer vaccines is successfully completed
• Mongolian doctors trek to remote areas to give herders jabs
• Plan for prevention from Omicron variant being developed
• COVID-19: 570 new cases, two deaths reported
• COVID-19: 585 new cases, three deaths reported
• 42.3 percent of capital city citizens vaccinated with third dose
• COVID-19: 488 new cases, two deaths reported
• 47.5 percent of adults vaccinated with third dose
• COVID-19: 138 new cases reported
• COVID-19: 272 new cases reported

LEGAL SUMMARY OF LAW ON WORKFORCE MIGRATION

The Law on Workforce migration was adopted to determine the relationship, management and organization of workforce migration from Mongolia to foreign country and from foreign country to Mongolia on basis of national labor market data, in a unified and comprehensive manner in order to protect human rights and legitimate interests. The implementation of labor migration policies and regulations will have positive social and economic consequences, including increased employment, sustainable population growth, family stability and more specialized and skilled human resources.
1) Employment mediation for Mongolian citizens in foreign countries
A license is required to provide employment mediation services for working and having internship services for Mongolian citizens in foreign country and hire employees from foreign country.
The following legal entities or persons are prohibited to run employment mediation services:

Source: Mondaq.com

RESOLUTION ON KHUSHIG VALLEY FREE ECONOMIC ZONE TO BE SUBMITTED TO PARLIAMENT

its regular meeting on January 5, the Cabinet discussed the parliamentary resolution on the Khushig Valley free economic zone and decided to submit it to the parliament.
The establishment of the free economic zone will pave the way for solving social and economic issues in the development of Khushig Valley.
The development of sustainable tourism, resorts, creative and cultural industries, malls, environmentally friendly industrial zone, and an international transport and logistics center in the valley will help the country have a multi-pillar economy not dependent on mining.
150 thousand citizens will move to the satellite city to be created in Khushig Valley, which is expected to reduce Ulaanbaatar’s air and environmental pollution by 10 percent and traffic congestion by around 20 percent.