|
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:
Source: Various
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.
|
