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ECONOMY
MONGOLIA'S MAR COAL OUTPUT JUMPS 282 PCT YOY; IRON ORE SLUMPS 72 PCT
Coal production of Mongolia came in at 5.95 million tonnes in March, surging 281.46% year on year and rising 19.36% month on month, showed data from the National Statistical Office of Mongolia.
The inland country produced a total 16.9 million tonnes of coal in the first quarter of 2023, up 226.78% from the year prior.
Mongolia's iron ore production was 306,300 tonnes in March, down 71.6% on the year but up 13.91% on the month.
Iron sand output was 187,200 tonnes in March, down 77.72% year on year but up 12.5% from February, while iron concentrate production was 119,100 tonnes, falling 50.06% from a year ago but rising 16.2% month on month.
Production of iron ore in Mongolia totaled 914,000 tonnes during first three months this year, slumping 58.69% year on year.
Iron sand output was 582,600 tonnes, down 66.14% year on year, and iron concentrate production was 331,400 tonnes, down 32.7%.
Source: sxcoal.com
See also: Mongolia Mar rail coal shipment drops; iron ore up for 4th mth
CHINA, MONGOLIA TRADE VIA GANTS MOD PORT EXCEEDS 10 MLN TONNES
The trade volume between China and Mongolia via Ganqmod Port, the largest highway port between the two countries, has surpassed 10 million tonnes so far this year, the port's administration authority said on Monday.
Situated in north China's Inner Mongolia Autonomous Region, Ganqmod Port handled approximately 10.02 million tonnes of goods from Jan. 1 to April 22, with a daily average of 112,600 tonnes.
Ganqmod Port is the first highway port in the region to reach the 10-million-tonne mark in 2023, hitting the target nearly four months earlier than in 2022.
The port has been striving to raise its clearance efficiency by implementing more measures to facilitate trade, said the administration authority.
Ganqmod Port is a major energy import channel for the country, and an important hub on the China-Mongolia-Russia economic corridor.
Source: en.ce.cn
WHY CLEAN ENERGY TRANSITION BOOSTS MONGOLIA’S ENERGY INDEPENDENCE
As the world moves toward phasing out fossil fuels and embracing clean energy in the next decade, Mongolia faces a challenge to transition from its heavy reliance on coal.
Mongolia's commitment to cut its greenhouse gas emissions is complicated by Russia's closer energy cooperation with China in the regional market, which could increase Mongolia's dependence on its two giant neighbors.
Although the Power of Siberia 2 project, a new Russian-Chinese gas pipeline that could run through Mongolia's territory, was not mentioned in the recent Xi-Putin summit announcement in Moscow, it is likely that the project is still on the table and could offer Mongolia some benefits from its energy transition away from coal.
However, Mongolia's clean energy market also offers a promising alternative to meet its energy demand and lower its GHG emissions, while reducing its reliance on Russian energy imports and avoiding the uncertainty of a distant gas pipeline.
Source: Mongolia Weekly
DIGITAL TRANSITION IN MINING INDUSTRY DISCUSSED
Last week, ‘Digitalization in Mining Mongolia’ forum was held at the Shangri-La Hotel. The representatives of the mining companies participating in the conference emphasized the possibility of digital transition to bring the leading mineral sector in Mongolia’s economy to a new technological stage.
The Ambassador Extraordinary and Plenipotentiary of Australia to Mongolia Katie Smith participated in the Digitalization in Mining Mongolia activity organized with the support of the Australian Governments Trade Commission (Austrade), the Mongolian Mining Association and the Mongolian Mineral Processing Association. She said, “Mining sector is important in ensuring the economic development and growth both to Mongolia and Australia. Investing in human resource capacity building and developing necessary skills is vital in developing innovation in the mining sector.” She then emphasized that as Australia’s mining industry is world leading in innovation and technological innovation in terms of sustainable development, increasing profitability, safety, and competitiveness of the industry, which is why they have a lot to offer and share to Mongolia in this field.
Source: The UB Post
RECORD-BREAKING AMOUNT OF CARGO TRANSPORTED BY UB RAILWAY PAST DECADE
In Q1 2023, UB Railway managed to transport 8.1 million tons of cargo, which is an unprecedent achievement in the past decade. This achievement is happening thanks to facts that the difficulties of the pandemic are disappearing and the train exchange between Zamyn-Uud-Erenhot Port is increasing, which is the main export and import gateway of our country. Since the beginning of April, 15 trains have been sent per day to the Chinese side on the Zamyn-Uud-Erenhot Port broad-gauge railway because of UB Railway’s active collaboration with the railways of neighboring countries to increase train exchange. In last February, it was officially agreed to increase the exchange of broad-gauge trains from 14 to 15 per day with the Chinese side. In the future, if UB Railway works at this pace, it will break the historical record set before the COVID-19 pandemic, and it shows that there is a possibility of transporting 32 million tons of cargo in 2023.
Source: The UB Post
MONGOLIA REFINERY TO BE BUILT BY INDIA BY 2025
Mongolia will have its first oil refinery up and running by 2025. The first phase of the $1.2 billion Indian soft loan-funded Mongol Oil Refinery will be finished by the end of the year. Given that Russia is the only source of energy imports for Mongolia, the development has strategic ramifications.
- The refinery will enable Mongolia to satisfy 70% of its domestic demand.
- According to the nation’s ambassador, Dambajav Ganbold, the first oil refinery in Mongolia, which is being constructed on the outskirts of the capital city of Ulaanbaatar with funding from India, would be finished by 2025.
- Mongolia also intends to entice investment from India in its mining and metals industries with intentions to start shipping coking coal to India by 2024.
Source: Adda247.com
ALMOST 25,000 LIVESTOCK EXPORTED
To increase the economic circulation of livestock and meat products, the export of livestock has restarted in October, 2022. Accordingly, this year, Mongolia has exported 24,540 sheep, goats, and horses. By the end of 2022, some 28,500 animals were exported. As of the first quarter, the export of livestock and animal products was 51.5 million USD, and the export of ready to eat food products was 55.4 million USD, making up a significant part of Mongolia’s exports.
In the last three years, Mongolia has exported an average of 2.3 million livestock.
It is allowed to export up to 20 percent of nonbreeding male sheep and goats from provinces and soums where there is no outbreak of serious livestock diseases for the purpose of increasing the income of herdsmen and citizens in accordance with the number of herds, head growth, pasture capacity, hay and fodder supply due to the increase in the number of livestock and the need for necessary regulation…
Source: The UB Post
HOW TO FIX MONGOLIA’S MINING INDUSTRY - EDITORIAL
Mongolia is blessed with a wealth of mineral resources, and mining has always been an important part of Mongolia’s economy. However, mining revenues are not allocated wisely; instead of using mineral wealth to reduce its dependence on the extractive sector, Mongolia has become “addicted” to it.
In addition, the industry is plagued by corruption. The Corruption Perceptions Index 2023 by Transparency International ranks Mongolia 116th out of 180 countries. The corporate corruption of state-owned mining companies took society by storm in December 2022. Thousands of Mongolians protested in the freezing cold, demanding the government hold officials accountable for the alleged theft of 385,000 tons of coal.
Basically, Mongolia hasn’t been managing its mineral wealth well. So how can Mongolians address these shortcomings moving forward?
Transparency and accountability initiatives have emerged as a potential solution to combat corruption and increase public benefits from the extractive sector in resource-abundant countries.
Source: The Diplomat
FOCUSING ON ONLY MINING SECTOR HOLDS BACK DEVELOPMENT - EDITORIAL
Focusing only on the mining sector is undermining the competitiveness of other sectors that generate foreign exchange earnings and increase productivity, and strengthens over-dependence of raw material prices at the border. The report also emphasized that the macroeconomic instability caused by price swings in mining commodities is limiting opportunities for sustainable investment, which is vital in supporting productivity. There are risks that may affect economic growth and these are:
• If the war between Russia and Ukraine prolongs, monetary policies of developed countries tighten more than forecasted
• Major debts of the government (including payment of bonds of the Development Bank)
• Exacerbation of external and fiscal imbalances due to uncertainty surrounding major coal export offtake contracts.
These may cause an increase in inflationary pressure. Given the economic situation and risk conditions, it was emphasized that governance changes aimed at improving fiscal discipline, macroeconomics, and fiscal stability are important.
Source: The UB Post
POLITICS
POLISH, MONGOLIAN PRESIDENTS MEET HOPING FOR REVIVAL OF MUTUAL TIES
Mongolia is an important partner with great potential - we want to cooperate in the future, Polish President Andrzej Duda said on Tuesday after meeting his Mongolian counterpart Uchnaagijn Chürelsüch in Ulaanbaatar.
Earlier, the presidents signed a number of agreements on economic cooperation, including in the fields of natural resources and science.
During the briefing, President Duda expressed hope that his visit will lead to a revival of Polish-Mongolian relations. He estimated that the signed agreements will bring tangible benefits to both countries.
He stressed that Mongolia is a very important partner, with great potential and is rich in natural resources. “We want cooperation with Mongolia in the future,” he declared.
Duda reported that his conversation with the Mongolian president also concerned political cooperation and the difficult international situation, which has been complicated by the COVID-19 pandemic and Russian aggression against Ukraine.
Source: TVPWorld.com
See also: Poland reopens its embassy in Mongolia
Mongolia could help bring Russian war criminals to justice, says Duda
U. Khurelsukh: We agreed to expand and develop cooperation in the fields of road transport, education, geology, and mining
Export from Poland to Mongolia surpasses EUR 70 million
Polish President Presents State Awards to Mongolians
Speaker of Parliament Pays Courtesy Call on Polish President
Mongolia and Poland Conclude Cooperation Documents
Prime Minister Paid Courtesy Call on President of Poland
MONGOLIA ELECTION LAW REVISION EXPLAINED: HOW IT AIMS TO BOOST REPRESENTATION AND TRANSPARENCY
Mongolia is taking steps towards improving the country's election process by introducing a new election law that addresses long-standing issues of representation, transparency, and fairness.
The key provision of this law is a mixed system of elections, where 50 percent of members of parliament will be elected from proportional party lists, and the remaining 50 percent will be elected from constituencies.
This mixed system was previously used in 2012 but was abandoned in 2016. The deadline for the law's finalization is June 2023, ahead of the general election scheduled for June 2024.
The reintroduction of the mixed system aims to shift the parliament's focus from narrow interests of small constituencies to national policies.
The bill's sponsors hope this change will make the parliament more representative of different social groups and address the declining popularity of the parliament in recent years.
Source: Mongolia Weekly
MONGOLIA EYES INDIAN FIRMS TO EXPAND ITS RAIL NETWORK
Mongolia is keen to attract Indian firms to help build rail connectivity in the country, according to Mongolia’s Ambassador to India Dambajav Ganbold.
“We have only one main railway which connects the North of our country to the South. This is the Russian Trans-Siberian Railways that goes through Mongolia to Beijing. This comes from North to South, but for the further development of Mongolia, we would like to have horizontal railway lines, for example from the South to the West. Indian firms are experts in developing infrastructure like railways and highways and this will be an interesting area of cooperation for Indian companies," Ganbold told Mint.
India has some experience with building railway projects in other countries. Rail India Technical and Economic Services (RITES), a public sector enterprise set up in 1974, provides infrastructure study, rolling stock design, equipment design and a suite of engineering services to other countries.
Source: LiveMint.com
AIR SERVICE AGREEMENT WITH QATAR APPROVED
"Air Service Agreement between Mongolia and Qatar" signed on March 7, 2023, in Doha, Qatar was approved at the Cabinet session on April 26.
Upon the Agreement coming into force, airlines of the two countries are able to conduct direct flights, unveiling a wide range of opportunities to expand relations in tourism, business, trade, and economy between the countries.
The national flag carrier MIAT State Owned Joint-Stock Company has been designated as the air carrier for direct flights between Ulaanbaatar and Doha. Now, it is possible to transport passengers and freight from Ulaanbaatar to the Middle East, North Africa, and the Gulf States, as well as Mongolians can travel by Qatar Airways.
Qatar Airways currently flies to more than 160 destinations in 90 countries. As of the fiscal year of 2022, the airline carried just over 18.5 million passengers on its flights.
Source: Montsame
SARANCHIMEG NAMED AS ONE OF 10 MPS WHO ARE ACTIVE ON IPU COMMITTEES
The Inter-Parliamentary Union has named 10 MPs who are active on IPU committees to promote gender equality, youth participation, peace, and sustainable development, in which Batsukh Saranchimeg, a Mongolian MP and Vice-President of the IPU Standing Committee on Democracy and Human Rights is included.
Mongolia has been actively engaging in IPU activities since joining in 1962. Ms.Saranchimeg was elected as a member of the Bureau of the Standing Committee in 2018.
Batsukh Saranchimeg, Mongolia
Vice-President of the IPU Standing Committee on Democracy and Human Rights
Ms. Saranchimeg, a Mongolian MP, is the Vice-President of the IPU’s Committee on Democracy and Human Rights.
The committee analyses threats and challenges to democracy, proposing parliamentary action that is adopted by all IPU Member Parliaments. Ms Saranchimeg’s role places her at the forefront of the IPU’s work on new technology and its role within democracy.
Source: Montsame
LETTERS: RUSSIA AND CHINA’S RENEWED CLOSENESS BENEFITS MONGOLIA - EDITORIAL
I have a theory: a country is independent if providing other countries with jobs and commodities and dependent if instead it is in need of the two. As a Russian, I often see manual labourers from Central Asia and everyone knows that all countries import hi-tech Chinese products. But what about Mongolia?
My father who directed a radio station in Kyzyl in Siberia once went to that country on a business trip. He said he saw no foreign workers there and only Czech and German broadcasting equipment at a local station. I do occasionally see Mongolian goods, only visiting Kyzyl and never in the Russian capital.
That country’s attempt to reduce reliance on any one nation described in the article, “‘Like a divorce’: Mongolia, landlocked between Russia and China, fears new Cold War” (April 6), is risky.
The current situation is like a reunion between Russia and China after their relations hitting bumps in the road for decades.
Source: South China Morning Post
GUEST POST: THE BACKBONE OF THE NEW NATIONAL ANTICORRUPTION STRATEGY WILL BE THE PRIVATE SECTOR AND CIVIL SOCIETY - EDITORIAL
Mongolia’s IAAC (Independent Agency Against Corruption) announced on April 12, 2023 that it has presented a new national anticorruption strategy to be implemented up to 2030 to its parliament. This draft strategy drastically shifted its previous focus of the national anticorruption program that focused on legislative changes and punishment to objectives more fostering private sector and emphasizing collaboration with civil society and public.
According to the working group who developed a national anticorruption strategy, basic rights such as a) public’s right to information, b) government’s duty to be transparent, c) efficiency and effectiveness of public services, d) inclusiveness in societal life and services and e) digitalization features were considered in every single action which sets a new standard approach that would be taken to reduce corruption. This, as per the developers of the program, will make a national anticorruption strategy a truly worthy document to reduce corruption through human rights -based and public engagement-based approaches.
Source: Mongolia Focus
BUSINESS
MONGOLIAN-POLISH BUSINESS FORUM
In the framework of the State visit of President Poland Andrzej Duda to Mongolia, a Mongolian-Polish Business Forum was held on April 25 at Shangri-La Hotel in Ulaanbaatar.
President Poland Andrzej Duda and President of Mongolia Khurelsukh delivered opening speeches to the Business Forum.
In their speeches, the Presidents of the two countries emphasized that the relations between the Parliaments, Governments, public organizations, citizens, and entrepreneurs have intensified, and the trade turnover of the two countries has reached USD 100 million doubling in the last three years.
Economic Adviser to the President of Mongolia B. Davaadalai stated that this Forum and the State visit would bring considerable results in significantly increasing the economic and trade cooperation between the two countries. He said, "Twenty Polish companies engaged in milk and dairy products, meat and meat products, health, medical equipment, information technology, electricity, energy, construction, and tourism are taking part in this Forum, whilst about 300 companies and entrepreneurs from Mongolia participate in the event.
Source: Montsame
See also: Export from Poland to Mongolia surpasses EUR 70 million
AMENDMENTS TO THE REGULATION ON FITNESS AND PROPRIETY
The meeting approved the composition of the credit operation policy council. Changes were made to the "Regulation on fitness and propriety" to comply with the recommendations and requirements of the Financial Action Task Force (FATF), adhere to the Law on Regulating Money Lending, and provide opportunities for the implementation of unified and effective regulation within the industry. More specifically, additions and changes were made to the "Regulation on fitness and propriety" to establish criteria for the compliance officer, the reporting entities, and the person engaged in money lending activities. Additionally, the knowledge and education criteria for the board of directors and executive management were modified to align with the "Professional area/program name/index" approved by the Minister of Education and Science, in accordance with industry conditions and trends.
Source: FRC
BUSINESS COOPERATION WITH INNER MONGOLIA TO EXPAND
Mongolian National Chamber of Commerce and Industry (MNCCI) and People’s Government House of Inner Mongolia jointly organized the ‘Manzhouli City Economic Cooperation Project Presentation Meeting and Exhibition 2023’ event in the Great Hall of MNCCI. On this occasion, a meeting was held to present the economic cooperation project of Manzhouli City.
Member of Parliament and Minister of Food, Agriculture and Light Industry Kh.Bolorchuluun, participated in the meeting and noted that the Government attaches importance to the revival of the Port and the development of border tourism, and the construction of the paved road in Choibalsan-Khavirga-Ar Khashaat direction will begin this spring. In the future, Khavirga-Ar Khashaat port will be expanded not only for citizens, but also for the export of tourism, mining and agricultural products. On this occasion, China’s Fada group presented the possibility of importing Mongolian goods into the free border zone duty-free, and Port group presented its travel program to other major Chinese cities.
Source: The UB Post, Mayor's Office
See also: Ulaanbaatar to cooperate with Manzhouli in the field of tourism
PM says gov't will use all means of funding to improve road infrastructure in capital
CHINA'S HOPU RAISES USD 141M FOR MONGOLIA BUYOUT FUND
Hopu Investment Management, a Chinese private equity company, has so far raised about $141 million for the Hopu Magnolia Fund, a buyout fund that invests across Mongolia, according to the company's filing with the U.S. Securities and Exchange Commission (SEC).
The filing showed that the fund, launched in 2021, has already received commitments from at least 18 investors. SEC filings typically reflect funds raised from U.S. investors.
Hopu did not specify the target size for the fund, but earlier reports said the company has trimmed its target to $250 million and is delaying the fund's final close.
DealStreetAsia has reached out to Hopu for confirmation.
In 2022, Hopu Magnolia co-anchored a $70 million additional Series C funding in Laiye, a global intelligent-automation company.
Hopu is an alternative asset manager specializing in proprietary investments, with offices in Beijing, Hong Kong and Singapore.
Source: Nikkei Asia
UB CONSTRUCTION AND INDUSTRIAL PROJECTS PRESENTED
On April 20, the Mayor’s office and National Chamber of Commerce and Industry joined and held UB International Investment and Partnership Forum (UBIIPF) under New Revival-Ulaanbaatar slogan. It is held at the Central Administrative complex of and over 380 representatives of government officials, diplomats, and foreign and domestic enterprises participated. The forum aimed to stimulate the economy of Ulaanbaatar, attract foreign and domestic investors, and present major projects, programs, and developments.
At the forum, Board Director of Premium group A.Gankhuyag. He said, “Although 70 percent of all businesses concentrate in Ulaanbaatar, only 33 percent of the state budget is spent here. Therefore, it is full of possibilities to invest and develop. The nearest example of a successful development and investment project is the new international airport. Ulaanbaatar is under dire need of funding and the investment possibilities rise with it.”
Source: The UB Post
CRUDE OIL PIPELINE FROM TAMSAG TO ALTANSHIREE COMMENCES CONSTRUCTION
Member of Parliament and Chairman of the Standing Committee on Industrialization Policy T.Enkhtuvshin met with Vice President of China's state-owned Norinco Group Wang Yi Tong and representatives who were selected as the contractor for the oil pipeline construction project in Mongolia. The construction of a crude oil pipeline with a total length of 530 km from the Tamsag oil field in Dornogovi province to the oil refinery being built in Altanshiree soum in Dornogobi province will start on April 28.
Head of the Standing Committee T.Enkhtuvshin emphasized the progress of the oil refinery in Altanshiree Soum and the construction of the Tavantolgoi-Khangi-Mandal railway, and expressed his satisfaction at the beginning of the pipeline to supply raw materials to the oil refinery. He noted that an oil refinery with pipelines for drawing crude oil is very important for the economic development of Mongolia and emphasized that once the plant is put into operation, our country will be able to meet its own domestic fuel needs.
Source: The UB Post
THIESS: A GOOD EXAMPLE OF SUPPORTING EMPLOYMENT OF PEOPLE LIVING WITH DISABILITIES AND DIVERSITY AND INCLUSION
Thiess in Mongolia operates with over 290 employees, of which 9 of them are people living with disabilities. By law, business entities with 25 or more employees are required to employ at least 4% people living with disabilities. Thiess not only welcomes and employs people living with disabilities, but also takes and supports diversity and inclusion initiatives across their operations.
Rolling out diversity and inclusion initiatives across Thiess Group since 2018 underpins and supports creation of more inclusive workplaces within Thiess. Thiess is a leading mining services provider operating across over 20 mining projects in Australia, Indonesia, Mongolia, USA and Chile.
Ms Otgonsuren Balgan, Senior HR officer at Thiess, said “As part of this great initiative, we started providing people living with disabilities access to jobs since 2019. This initiative is focused on providing a safe and inclusive workplace, where everyone is able to bring their full self to work and feels safe, respected and valued regardless of their disabilities, age, sex, religious belief and sexual orientation.
Source: Mongolian Mining Journal
FRC CHAIRMAN DISCUSSES COOPERATION WITH POLISH PRESIDENTIAL ADVISOR
he Chairman of the Financial Regulatory Commission, D. Bayarsaikhan, held a meeting with Mr. Zdzislav Sokal, the Economic Advisor to the President of Poland and Board Director of Polish Investment and Trade Agency, during the state visit of the President of the Republic of Poland, Andrzej Duda, to Mongolia. The visit is of significant importance as it aligns with Mongolia's economic recovery policy, which aims to diversify the economy and establish a sustainable, multi-pillar structure by expanding the participation of the "Third Neighbor" in addition to Mongolia's two neighboring countries.
Chairman D. Bayarsaikhan praised the Republic of Poland for its robust economic growth and stable banking and financial system, which stands out among Southeast and Eastern European nations. He also commended Poland's ability to diversify its economy through targeted support of key sectors, such as agriculture, heavy machinery, food production, and tourism. The FRC has an established partnership with the Polish Financial Supervision Authority, having signed a memorandum of understanding in 2010.
Source: FRC
TMK ENERGY AND TALON ENERGY INTERSECT GASSY COAL AT LUCKY FOX-1, MONGOLIA
Talon Energy (TPD) and TMK Energy (TMK) have intersected 60 metres of gassy coal at the Lucky Fox-1 pilot production well within the Gurvantes XXXV CSG project in the South Gobi Desert of Mongolia.
The project is held in a joint venture between the businesses, with Talon holding 33 per cent and TMK owning the remaining 67 per cent while acting as operator.
Lucky Fox-1 was spudded on April 12 and reached its total depth of 375 metres on April 26.
The well intersected 60 metres of gassy coal in the production interval and was drilled safely, on time and within budget by contractors Major Drilling.
The drill rig is now being mobilised to the site of the Lucky Fox-2 well, just 200 metres from Lucky Fox-1, ahead of the spudding of the second pilot production well.
The drilling of the remaining two production wells is expected to take five weeks.
Source: The Market Herald, Proactive Investors
FITCH ASSIGNS MONGOLIAN MINING'S PROPOSED USD NOTES 'B'
Fitch Ratings has assigned coal producer Mongolian Mining Corporation's (MMC) proposed US dollar notes a 'B' rating with an expected Recovery Rating of 'RR4'. The proposed notes will be issued by MMC and its wholly owned subsidiary Energy Resources LLC, and guaranteed by most of its operating subsidiaries. The notes will constitute senior unsecured obligations of MMC as they represent its unsecured and unsubordinated obligations.
Net proceeds from this issuance will be used to fund a concurrent tender offer for liability management purposes and will be leverage neutral. We expect successful issuance of the notes to alleviate the company's medium-term funding needs for its USD350 million 2024 notes redemption.
The new notes will be used to pay the tender price of any 2024 notes tendered in a concurrent tender and exchange offer. The tender offer has a maximum tender cap equal to the new notes issued.
Source: Fitch Ratings
“KHOVD ECO CEMENT” FACTORY PUT INTO OPERATION
“Khovd Eco Cement” factory has been officially put into operation, writing a new chapter in the development history of Western Mongolia.
President Khurelsukh attended the opening ceremony and delivered a speech. While highlighting the fact that the “Khovd Eco Cement” factory is the biggest factory that has ever been built in Mongolia since 2020, President said, “A transition from welfare to labor, from extraction to processing and from import to export is starting right here, right from this factory. “Khovd Eco Cement” project will give great impetus for state policy implementation to develop aimag centers into town, reduce rural-to-urban migration and provide rural citizens with adequate living conditions.”
The “Khovd Eco Cement” is a dry-process cement factory that doesn't use water in its mining, crushing, grinding, and mixing in the correct proportion stages of manufacturing.
Source: Montsame
EDINBURGH CASHMERE SET FOR MONGOLIAN PRODUCTION BOOST
The owner of Edinburgh Cashmere is set to boost production after signing a partnership with with an unnamed manufacturer in Mongolia.
Described as one of the East Asian country's largest luxury textiles producers, the factory is expected to produce up to one million cashmere and lambswool products for Edinburgh Cashemere on an annual basis. Didar Singh Chalana, who set up the Scottish business nine years ago, said the value of these goods will be between £5 million and £10m per year.
The factory is described as using the latest state-of-the-art machinery and techniques, with raw materials sourced sustainably and ethically. Mr Chalana, also known as DC Singh, said the venture will allow Edinburgh Cashmere to keep up with ever-increasing demand.
Born in Punjab, India, Mr Chalana has a background in wholesaling. He was working in Edinburgh’s Royal Mile in 2008 when he first got the idea for setting up his own cashmere company.
Source: The Herald Scotland
GLOBAL AND REGIONAL NEWS
ADB: BENEFITS OF GLOBAL NET-ZERO TRANSITION CAN BE 5 TIMES THE COSTS IN DEVELOPING ASIA
Global efforts to achieve net-zero greenhouse gas emissions can yield substantial economic and social benefits. For developing Asia, these benefits could be 5 times the costs of mitigation, according to a new report from the Asian Development Bank (ADB). The benefits—including avoided economic losses from climate change, as well as improved health thanks to cleaner air—are achievable through targeted policy reforms, according to the Asian Development Outlook Thematic Report: Asia in the Global Transition to Net Zero, released today. In a scenario where the world works together immediately to reduce warming to well below 2°C, in line with the Paris Agreement, the costs to the region would be about 1% of gross domestic product (GDP) annually, before even accounting for climate or air quality benefits. “To make climate policy pay off, we need to adopt economically efficient approaches, such as carbon pricing,” said ADB Chief Economist Albert Park. Source: ADB
SOUTH KOREA’S ECONOMY BARELY AVOIDS RECESSION AMID ROCKY OUTLOOK
South Korea’s economy has barely avoided recession amid challenging global economic conditions for Asia’s fourth-largest economy. South Korea’s gross domestic product (GDP) grew 0.3 percent during January-March, government figures showed on Tuesday, rebounding from a 0.4 percent contraction in the final quarter of 2022. A recession is typically defined as two consecutive quarters of negative growth. The rebound came as the country’s exports rose compared with the previous quarter and domestic demand improved. Private consumption was the biggest growth driver, expanding 0.5 percent, while exports rose 3.8 percent, after falling 4.6 percent the previous quarter. “Given consumption for leisure and tourism services was particularly strong, we think the reopening boost has continued,” Min Joo Kang, senior economist for South Korea and Japan at ING, said in a note. “Inflation came down rapidly from last year’s peak and market interest rates also stabilised as the BoK [Bank of Korea] has paused its rate increases since January. These factors probably boosted consumption last quarter.” Source: Al Jazeera, Reuters
VIETNAM READIES ANOTHER SALES TAX CUT TO PROP UP FLAGGING ECONOMY
Vietnam is preparing to lower its value-added tax just four months after ending the previous round of cuts as stagnating exports weigh on the economy.
Le Minh Khai, the deputy prime minister in charge of the economy, this month signed off on a proposal to decrease the VAT rate. The Finance Ministry, which crafted the proposal, is finalizing the authorization of the tax plan.
The proposal calls for lowering the VAT to 8% from 10% until the end of the year. The cuts would translate to 5.8 trillion dong ($247 million) in lost tax revenue each month.
One shopper at the Vincom Center shopping mall in Hanoi expressed excitement.
"It'll be easier to buy clothes at Uniqlo," said the person.
The government lowered the VAT last year in response to the pandemic, but the cuts were not applicable to the telecommunications and real estate. The upcoming cut will include all goods and services.
Source: Nikkei Asia
SINGAPORE DOUBLES PROPERTY TAX ON FOREIGNERS TO 60PC
Singapore is raising property taxes to cool its red-hot housing market, amid mounting concern that an influx of wealth into the city-state is hurting affordability for locals and its competitiveness as a financial hub. The government is increasing stamp duties for second home buyers and foreigners purchasing private property, it said in a statement. For foreigners buying any home, the tax rate doubled to 60 per cent from 30 per cent. Shares of Singapore developers fell. The city-state’s property sector has remained buoyant even as other countries face slowdowns because of soaring interest rates and inflation, partly due to an inflow of money, especially from wealthy Chinese. A shortage of supply and rising construction costs during the pandemic have also propelled home prices and rents, fuelling discontent among residents. The increase “may slow the frenzy to move money to Singapore, but maybe not as much as you might expect”, said Bloomberg Economics chief Asia economist Chang Shu. Source: Australian Financial Review
INDIAN VENTURE CAPITALISTS CHASE ASIAN CASH AS U.S. MONEY DRIES UP
Indian venture capital firms are turning to the Middle East and Southeast Asia for funding as traditional U.S. backers retreat in response to tightening credit conditions and the uncertain outlook for initial public offerings.
The search for investors closer to home marks the latest chapter in a tumultuous period for Indian VC firms, which flourished at the start of the decade on hopes that their country would be the "next China" but hit tougher times in the second half of 2022.
Finding American money for early-stage ventures in the world's most populous country has become so difficult that one Indian VC executive raising his maiden fund compared the experience to gaining a spot at a top-tier U.S. university.
"The bar is very high to raise from the U.S. investors, particularly for people like me, because they have their hands full reassessing their current investments. So, I have to knock on new doors," the executive told Nikkei Asia.
Source: Nikkei Asia
JAPAN TO SUBSIDIZE HALF THE COSTS OF LITHIUM, CRITICAL MINERALS PROJECTS – REPORT
Japan’s Ministry of Economy, Trade and Industry will subsidize up to half the cost of mine development and smelting projects for lithium and other critical minerals by Japanese companies, Nikkei Asia reported on Sunday.Lithium, manganese, nickel, cobalt, graphite and rare earths are reportedly the main targets for support. The initiative seeks to secure raw materials used in manufacturing electric car engines and batteries. Japan is planning to diversify its supply chains, as, like most countries, it is dependent on China for many key minerals. Geological surveys will determine the profitability and quality of mines to be subsidized, Nikkei reported, adding that the initiative will also cover mine development and smelting operations. China accounts for 60% to 70% lithium and cobalt processing for battery cathode materials and 70% of graphite processing for anode materials, according to the International Energy Agency. China is also responsible for almost all the world’s rare-earths processing. Source: Mining.com
ARGENTINA'S LITHIUM PIPELINE PROMISES 'WHITE GOLD' BOOM AS CHILE TIGHTENS CONTROL
In Argentina's mountainous north, a strong pipeline of lithium projects close to coming online looks set to unlock a wave of production that could see its output of the key electric vehicle battery metal as much as triple within the next two years. The world’s fourth largest producer of the silvery-white metal sits within the so-called "lithium triangle" and has been luring investment from Canadian to Chinese mining firms with a regional and market-led model, even as a wave of resource nationalism has spread in the region. Neighboring Chile, the region's top lithium producer, last week unveiled plans for a state-led public-private model, spooking investors. Bolivia has long maintained strict control over its huge though largely untapped resources, while Mexico nationalized its lithium deposits last year. In Argentina, despite state energy firm YPF starting to explore for lithium last year, the sector has largely been driven by private enterprise… Source: Reuters
See also: Argentina plans to produce 200,000 tonnes of lithium by 2025
CONGO STATE MINER AND CHINA'S CMOC REACH AGREEMENT ON ROYALTIES
An agreement on royalties between Congo's state miner and China's CMOC has been reached, paving the way for the resumption of minerals exports from the world's second largest cobalt mine, Congo's finance minister said late on Monday. Copper and cobalt exports from Tenke Fungurume Mining (TFM) were suspended in July after an escalation in a dispute between its shareholders Gecamines and CMOC. A temporary administrator appointed by a Congolese court ordered majority owner CMOC to suspend marketing and export of its production. "CMOC - Gecamines, an agreement has been reached. I have some elements of this agreement but I prefer to let the entities themselves confirm and this will be done in the next few days," Nicolas Kazadi said in response to a question from Reuters. China's CMOC Group announced in a statement on Wednesday that a "consensus" had been reached on April 18 on the issue of TFM royalties. It referred to a "win-win", without giving further details on this agreement. Source: Reuters
CHILE USES AN OLD COPPER TEMPLATE FOR NEW LITHIUM PLAN: ANDY HOME
Chile’s assertion of state control over its lithium industry has sent shock waves through the new energy metals sector.
The country’s two big lithium producers, SQM and Albemarle, have seen their share prices fall on the prospect of having to relinquish majority control of their operations or risk losing their licences once they expire in 2030 and 2043 respectively.
Shares in companies such as Pilbara Minerals, Australia’s biggest lithium producer, have risen on the premise of slower investment and project growth in Chile, which hosts the world’s largest deposits of the battery metal.
Chile has been here before. The country nationalised its copper sector in 1971, provoking international outrage, particularly in the United States.
President Gabriel Boric’s lithium “nationalisation” is a more benign version, using an even earlier copper model. Moreover, Chile is far from the only country seeking to channel the new energy metals boom.
Source: Reuters
See also: Chile's lithium nationalization shines light on emerging tech
BCM QUARTERLY REPORT, Q1 2023
The Business Council of Mongolia delivers you its First Edition of the BCM Quarterly Report of 2023. The first edition covers all events organised by the BCM through the months of January - March. The fuller version of the articles can be found in the highlighted "details" part on the report.
PDF: 2023 First Quarterly Report
Source: BCM
THE BCM APPOINTS RAPHAËL GOUÉ AS OFFICIAL BCM REPRESENTATIVE IN EUROPE
The Business Council of Mongolia is pleased to announce Mr. Raphaël Goué as an official BCM Representative in Europe.
Raphaël Goué is an expert in energy and banking, having spent more than 12 years in Asia as well as being involved in Europe-Asia cross-border projects since the mid-90s, with a focus on financial services, energy and telecommunications.
Mr. Goué has a wealth of experience in supporting global financial institutions and energy companies in their strategies in Asia, as well their development and M&A. He has previously held various positions in organizations such as Société Générale, Vivendi Universal, Booz & Co and Capital One in Europe, Africa and Asia. As a senior advisor of the global retail banking association EFMA, Raphaël has been supporting the development of banking’s leading association in selected Asian markets, and supporting EFMA in the fintech sector in Europe.
He holds an engineering degree from the École Nationale Supérieure de Géologie in Nancy, France, a master in material science from École de Mines de Nancy, and a MBA from HEC (Paris) he finalized at the Columbia Business School (New York).
The BCM is looking forward to expanding its reach to Europe with Mr. Goué’s leadership and assistance.
UNICEF: GUIDANCE FOR EMPLOYERS ON FLEXIBLE WORK ARRANGEMENTS AND OTHER GOOD WORKPLACE PRACTICES IN THE CONTEXT OF COVID-19
A family friendly workplace or employer is one whose policies and practices make it possible for employees and/or workers to more easily achieving work-life balance, and to fulfil both their work and family obligations. These policies may include, but are not limited to, childcare, breastfeeding rooms, flexible work arrangements, paid leave, safe transport, parenting education and so on. In Mongolia and various other countries, authorities have enforced kindergarten- and school closure policies as part of the preparedness and response to contain the COVID-19 epidemic. In addition to the impacts on children’s education, there are concerns about children’s protection and well-being as children are left alone or without adequate care as many parents still need to go to work. COVID-19 may also have negative effects on mental health and wellbeing of patients (if any), caregivers, children and adolescents and the public, such as experiencing fear of the consequences of infection with a new virus, and triggering stigma. Those placed in quarantine (or self-isolated) may experience boredom, loneliness, and anger. By promoting flexible working arrangements such as adjusted working hours, working from home and/or support childcare, your employees will be in better position to address any childcare challenges and not be distracted by concerns about their children’s safety and wellbeing at home. Click here to view in English. Click here to view in Mongolian.
UNICEF: CALL FOR ACTIONS OF THE PRIVATE SECTOR TO REDUCE CHILDREN’S EXPOSURE TO AIR POLLUTION IN UB
Too many children are at risk of dying in UB due to air pollution each year. In addition to longer-term measures to reduce overall levels of air pollution in Ulaanbaatar, UNICEF recommends that companies address some of their CSR activities in the following ways:
- Provision of air purifiers to kindergartens, schools and clinics. Children spend a considerable amount of their time in school. Air purification systems are demonstrated to be effective in reducing air pollution levels within a home or classroom. Recent innovations have made these more affordable, durable and effective. Every classroom should have an air purifier.
- Provision of electric heaters to kindergartens, schools and clinics. Electric heaters can help to reduce ambient air pollution. Reducing financial barriers to access can also help improve use of electric heaters.
- Improved construction and insulation in kindergartens, schools and clinics. This can help reduce the amount of air pollution that enters facilities where children spend most of their time. It also saves considerably on heating costs. Studies show some improvements can decrease air exchange by up to 40%.
- Provision of air pollution monitoring devices in kindergartens, schools and clinics. Monitoring devices are often a first, major step to understanding one’s own risk to air pollution. It can not only inform improved practices to reduce exposure, but it is also an effective mechanism for communities to better understand what is causing air pollution, and when it is particularly harmful.
- Improved awareness and behaviour-change campaigns. Low awareness amongst communities about the impacts of air pollution on child health and how to respond is a key barrier to addressing the air pollution crisis. There is a need to influence policymakers, relevant government institutions, businesses, CSOs, development partners, and the general public (including families and children) about the risks that air pollution poses to their health, as well as provide guidance and recommendations on various ways to address some of the most immediate threats.
These actions will reduce children’s exposure to air pollution, safeguarding them from the worst impacts at the same time as building momentum and creating an enabling environment for longer plans that reduce air pollution. UNICEF will provide guidance on these recommendations where possible. UNICEF can also help facilitate connections between actors, agencies and institutions, including schools/ clinics where children are particularly affected. However, in order to maximize efficiency, these projects should be planned, developed, implemented and monitored by the private sector company involved. Nor will any funding go through UNICEF. This helps enhance accountability, and allows private sector donors to be more actively involved in the solution of directly supporting children in UB to breathe cleaner, healthier air.
For more information and guidance, please contact UNICEF for (Amy Wickham, This email address is being protected from spambots. You need JavaScript enabled to view it.; and Sunjidmaa Jamba, This email address is being protected from spambots. You need JavaScript enabled to view it.)
BCM GUIDELINE FOR COMPANIES TO COMBAT AIR POLLUTION
Purpose: This Guideline document is to help CEOs and business leaders quickly identify possible actions they can implement in their organizations against air pollution.
Resources for information on Air Pollution
Specific ACTIONS that companies can take NOW:
Educate employees about air pollution; invite guest speakers; encourage employees to share information with friends and family; discuss possible solutions with employees
- Possible topics: damages and causes of air pollution, protection measures, energy consumption & efficiency; indoor air quality (smoking indoors); breastfeeding & healthy diet; vehicle idling; vehicle maintenance;
Work environment:
- Improve energy efficiency in building/office to reduce energy consumption;
- Plant & maintain trees; install air cleansing plants in the office;
- Install HEPA air filter and air purifiers to tackle indoor air pollution (For an affordable solution, visit http://smartairfilters.com/mn/en/;
- Install monitoring devices;
- Smart Air Mongolia masks
Work activities:
- Ensure company vehicles are well maintained to reduce pollution emissions;
- Drivers/employees instructed to not idle & to turn off vehicle engine when not moving;
- Implement carpooling activities;
- In polluted air, ensure employees wear pollution masks;
Social responsibility:
- Focus CSR (corporate social responsibility) initiatives to tackle air pollution
- Tackle air pollution in UB: UNICEF recommends focusing on areas where children are especially affected, and where urgent interventions need to be put in place to protect them as soon as possible. These include the provision of air filtration systems and electric heaters in kindergartens and schools in some of the worst-affected regions. For more information and guidance, please contact UNICEF for (Nicholas Rees, This email address is being protected from spambots. You need JavaScript enabled to view it.; and Sunjidmaa, This email address is being protected from spambots. You need JavaScript enabled to view it.);
- Run marketing/PR campaigns & contests that raise awareness about air pollution.
List of distributors for pollution masks:
- BRB – 70119967, 99658555
- BOX shop – 99062387, 75557007, 90878111 – Facebook: RZ утааны маск
- CATD LLC – 11327308, 99114346
- Mmarket – 75758001 – Facebook: Утааны Маск
- MONOS Pharmacy – 99190858
- Seven summits – 11317923
- 3M Mongolia Premier Service - 9400-3088, 9910-3335
- Utaanii Mask – 99906643 – Facebook: Утааны маск + Агаар шүүгч
- Cycling World Mongolia LLC authorized distributor of RESPRO pollution masks- 77110444
MEMBER-TO-MEMBER SPECIAL OFFERS & BENEFITS:
- Orchuulga 24 is providing a 15% discount on written translation services to BCM Members - Ombol LLC is offering free Hepatitis C medication to employees of BCM member organizations, provided that the individual pays into state health insurance. ECONOMIC INDICATORS
HISTORIC ANNUAL INFLATION
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
Year 2014 *11.0% [source: NSOM]
Year 2015 *1.9% [source: NSOM]
Year 2016 *1.1% [source: NSOM]
Year 2017 *6.4% [source: NSOM]
Year 2018 *8.1% [source: NSOM]
Year 2019 *5.2% [source: NSOM]
Year 2020 *2.3% [source: NSOM]
Year 2019 *13.4% [source: NSOM]
*Year-over-year (y-o-y), nationwide
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 - 9.75% [source: IMF]
March 11, 2009 - 14.00% [source: IMF]
May 12, 2009 - 12.75% [source: IMF]
June 12, 2009 - 11.50% [source: IMF]
September 30, 2009 - 10.00% [source: IMF]
May 12, 2010 - 11.00% [source: IMF]
April 28, 2011 - 11.50% [source: IMF]
August 25, 2011 - 11.75% [source: IMF]
October 25, 2011 - 12.25% [source: IMF]
March 19, 2012 - 12.75% [source: Mongol Bank]
April 18, 2012 - 13.25% [source: Mongol Bank]
January 25, 2013 - 12.50% [source: Mongol Bank]
April 8, 2013 - 11.50% [source: Mongol Bank]
June 25, 2013 - 10.50% [source: Mongol Bank]
July 30, 2014 - 12.00% [source: Mongol Bank]
January 14, 2015 - 13.00% [source: Mongol Bank]
January 14, 2016 - 12.00% [source: Mongol Bank]
May 6, 2016 - 10.50% [source: Mongol Bank]
August 18, 2016 - 15.00% [source: Mongol Bank]
December 19, 2016 - 14.00% [source: Mongol Bank]
June 15, 2017 - 12.00% [source: Mongol Bank]
December 22, 2017 - 11.00% [source: Mongol Bank]
March 23, 2018 - 10.00% [source: Mongol Bank]
November 27, 2018 - 11.00% [source: Mongol Bank]
March 11, 2019 - 10.00% [source: Mongol Bank]
April 13, 2020 - 9.00% [source: Mongol Bank]
September 14, 2020 - 8.00% [source: Mongol Bank]
November 11, 2020 - 6.00% [source: Mongol Bank]
January 1, 2022 - 6.50% [source: Mongol Bank]
SOVEREIGN CREDIT RATING
| Moody’s |
Fitch |
S&P |
B3 – stable – 16 Mar 2021
B3 – negative – 8 May 2020
B3 – stable – 18 Jan 2018
Caa1 – stable – 30 Mar 2017
Caa1 – neg. watch – 15 Feb 2017
Caa1 – stable – 18 Nov 2016 |
B – stable – 9 Jul 2018
B- – positive – 17 Nov 2017
B- – stable – 22 Nov 2016
B – stable – 24 Nov 2015
B+ – negative – 13 Dec 2013 |
B – stable – 10 Nov 2018
B- – stable – 19 Aug 2016
B – stable – 03 Nov 2015
B+ – neg. – 29 Apr 2015 |
CURRENCY RATES – 27 April 2023
| Currency |
|
|
Rate |
| U.S. dollar |
USD |
|
3,476.89 |
| Euro |
EUR |
|
3,841.62 |
| Japanese yen |
JPY |
|
25.99 |
| British pound |
GBP |
|
4,333.07 |
| Hong Kong Dollar |
HKD |
|
442.92 |
| Russian ruble |
RUB |
|
42.60 |
| Chinese yuan |
CNY |
|
502.15 |
| South Korean won |
KRW |
|
2.59 |
|
