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ECONOMY
EXPORT EARNING RISES DESPITE THE DECLINE IN VOLUME OF SOME MINERALS’ EXPORTS
In Mongolia, the mining sector makes up 24 percent of the country's GDP, 69 percent of the industrial sector, 77 percent of foreign direct investment and 93 percent of exports. According to last year, total revenue of the state budget was MNT 13,362.3 billion, of which 29.6 percent or MNT 4,114.4 billion was generated by the mining sector alone, reported the Ministry of Mining and Heavy Industry.
Before the pandemic, Mongolia used to export over 30 million tons of coal annually, but last year it exported 16,138 thousand tons. Despite the decline in the volume of mineral exports, the income from export in 2021 was equal to those of previous years as a result of high commodity prices in the world market and response to the pandemic. For instance, the country exported 36,265 thousand tons of coal and earned USD 2,803 million in 2018…
Source: Montsame
BOM PURCHASES 1.6 TONS OF PRECIOUS METAL IN JANUARY
In January, the gold purchase of the Bank of Mongolia (BoM) was 1.6 tons. It means the amount of precious metal purchase increased by 312 kg compared with the same period of the previous year.
In January, the BoM branches in Darkhan-Uul and Bayankhongor provinces bought 48.5 kg and 64.1 kg of precious metals respectively.
The average price of BoM’s purchase of 1 gram of gold was MNT 166,244.8 last month.
Source: Montsame
COAL ACCUMULATED AT BORDER CHECKPOINTS BEING EXPORTED
After being closed for three days in connection with the Mongolian Tsagaan Sar and Chinese New Year holidays, the Mongolia-China border checkpoints resumed normal operations on February 4.
Between February 4 and 8, about 4,000 tons of freight were brought into Mongolia by 268 containers. As there was a risk of burning due to warming, 1,100 open wagons of coal that were accumulated at the border are started being exported today.
Aside from Zamiin-Uud, Gashuunsukhait, Khangi, and Bulgan border checkpoints are resuming normal operations.
Source: Montsame
BUSTING THE MYTHS RELATED TO FOOD STAMPS, WELFARE AND WORK
And yet the myth seems to persist, including in Mongolia, where policymakers and the public have long worried that cash payments to the poor must be causing welfare dependency and work disincentives. Now a new study prepared with ADB technical assistance, Food Stamps and Employment Services in Mongolia, contributes to the global body of evidence to help counter those worries.
During the food and fuel crisis of 2008 Mongolia introduced food stamps as the country’s first poverty-targeted benefit. Today, food stamps reach about 44,000 households, less than 5% of the population. The program’s debit cards can be used to purchase 10 types of staple foods—including dairy, fruit and vegetables—from any shop that issues value added tax receipts.
The monthly transfer is worth about $5.60 per adult and $2.80 per child, so a typical family of five would receive just under $20 per month. This ends up covering just 6% of poor families’ total monthly expenditure, according to national household survey data.
Source: ADB
40 PCT OF TICKET PRICE OF DOMESTIC FLIGHT DEPEND ON FUEL PRICE
B.Bat-Erdene, the Minister of Nature, Environment and Tourism, and other heads of the Ministry held a meeting with representatives of domestic airline companies of Mongolia.
The meeting was attended by representatives of 11 domestic airlines and exchanged views on the current state of the industry, challenges and future strategic plans.
The domestic airline companies made the following suggestions:
- The international price of aviation fuel is USD 500-700 per ton, while in Mongolia it is USD 1,200, which directly affects air ticket fares. Forty percent of the ticket tariff depends on the price of fuel.
- The government needs policy, tax and legal support to open a new flight route.
- A consortium of tourism companies needs to be established in Mongolia. By doing this, we can reduce the cost of flights by improving supply.
- In order to increase passengers, diversified activities need to be operated.
- …
Source: GoGo News
HONEY CLUSTER BEING CREATED UNDER JICA’S PROJECT
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
STUDENTS TO RETURN TO IN-PERSON CLASSES ON FEBRUARY 14
The number of newly detected COVID-19 cases and the positive rate in PCR test results decreased by 56 and 30 percent respectively compared to the previous week, reported Deputy Prime Minister S.Amarsaikhan during today’s cabinet meeting.
Moreover, 31 percent of the total population and 52 percent of the target population have received the 3rd or booster shot of the COVID-19 vaccine.
Considering the facts that the vaccination rate has reached 50 percent among the target population and COVID-19 infection has relatively decreased, the Cabinet today made a decision to have all types of educational institutes resume in-person classes starting from February 14.
Source: Montsame
See also: Education Ministry to prioritize having schools organize in-person classes
MINING FRACTURES LAND AND COMMUNITY IN MONGOLIA - EDITORIAL
With over 1000 licenses issued across the country, a diverse range of mineral extraction operations are transforming Mongolia’s rural cultural landscape. The Gobi region is crowded with both mega mines and smaller-scale operations. The Gobi also has excellent conditions for renewable energy and is poised to be a site for significant investment in this industry. Solar and wind farms are already starting to pop up in Omnogobi and Dornogovi provinces reflecting Mongolia’s commitment to reduce its reliance on coal power under the State Policy on Energy 2015-2030.
Yet in the face of these major investments and developments, discussions of traditional mobile pastoralist land tenure rights have been muted. While the Mongolian government has some legal provisions to protect the environment, such as the 2012 Law on Environmental Impact Assessment, it lacks robust policy on resettlement and social safeguarding and adequate protections against forced eviction.
Source: East Asia Forum
REPORT CALLS FOR FAIRER REMUNERATION SYSTEM FOR CULTURAL WORKERS - EDITORIAL
UNESCO has presented its new “Reshaping Policies for Creativity” report, outlining that only a few countries appear to be actively addressing the issue of fair remuneration for artists and creators in a changing digital environment. Mongolian artists are seeking to embrace the latest technologies and merge western techniques with Mongolian subject matter. The Ministry of Culture of Mongolia is even pursuing an e-culture policy. The ministry explains that cultural creations and resources must be combined with technical innovations to produce new types of products and put them into use. However, judging by the current situation, it does not provide enough revenue to support a professional career in Mongolia, as noted in UNESCO’s report.
The new report estimates that 10 million jobs were lost in the creative industries in 2020 alone due to the COVID-19 pandemic. It has also calculated that the global Gross Value Added in the cultural and creative industries contracted by 750 billion USD in 2020.
Source: The UB Post
POLITICS
PRIME MINISTER MEETS CHINESE PRESIDENT
On February 6, Prime Minister of Mongolia and chairman of Mongolian People’s Party (MPP) L.Oyun-Erdene had a meeting with President of the People’s Republic of China (PRC) and General Secretary of the Chinese Communist Party (CCP) Xi Jinping in Beijing, China.
During the meeting, the parties exchanged wide-range of views on elevating Mongolia-China comprehensive strategic partnership to new heights, making the ties between the countries a model example of international relations, intensifying development projects to be implemented between the governments, cohering policy documents as well as strengthening relations and cooperation between the political parties. The parties agreed to elevate the Mongolia-China Comprehensive Strategic Partnership to a new level.
At the outset of the meeting, Prime Minister L. Oyun-Erdene congratulated Chinese government and its people on the on-time holding of the Beijing 2022 Winter Olympics amid the difficult period of the pandemic. He also thanked China for the supply of COVID-19 vaccines to Mongolia during the critical time.
Source: Montsame
See also: Meeting held with CCP Department Head
PM meets UN Secretary-General
Minister of Foreign Affairs B.Battsetseg meets her Chinese counterpart
B.SOLONGOO: 20 BORROWERS OF THE DEVELOPMENT BANK MISUSED MNT 520 BILLION
A regular cabinet meeting was held today. B.Solongoo, Deputy Minister of Justice, has presented the decision made at the meeting.
At today's Cabinet meeting, the Prime Minister gave some directions after hearing some information related to the Development Bank. The Development Bank was established in 2011. According to the current law, the Development Bank must provide at least 60 percent of its total financing to support export of Mongolia. The bank was established with the purpose of supporting the development of the country, increasing exports and financing certain projects and programs to replace imports. As of today, there is a total loan portfolio of MNT 3.1 trillion, of which 55 percent are risky or non-performing loans.
In this regard, the Development Bank is taking certain measures. About MNT 1 trillion loans of 28 borrowers have been transferred to the court. In addition, 14 borrowers are being investigated by law enforcement agencies.
Source: GoGo News
LI KEQIANG MEETS WITH MONGOLIAN PRIME MINISTER LUVSANNAMSRAI OYUN-ERDENE
On the afternoon of February 5, 2022, Premier Li Keqiang met with Mongolian Prime Minister Luvsannamsrai Oyun-Erdene, who came to China to attend the opening ceremony of the Olympic Winter Games Beijing 2022 at the Diaoyutai State Guesthouse.
Li Keqiang said that China and Mongolia are good neighbors, good friends and good partners. China always views the China-Mongolia relationship from a strategic and long-term perspective. President Xi Jinping maintains frequent communication with President Ukhnaa Khurelsukh. China will intensify high-level exchanges with Mongolia to enhance political mutual trust, deepen win-win cooperation, strengthen communication and coordination regarding international and regional affairs, and continuously push the China-Mongolia comprehensive strategic partnership to new development stages.
Li Keqiang pointed out that China attaches great importance to the cargo clearance in border ports, and will prioritize the smooth operation of the ports on both sides to help increase bilateral economic and trade cooperation.
Source: China-Embassy.org, Montsame
See also: Xi Jinping Meets with Mongolian Prime Minister Luvsannamsrai Oyun-Erdene
Wang Yi Meets with Mongolian Foreign Minister Batmunkh Battsetseg
China, Mongolia to strengthen cooperation in all-round way: joint statement
LATEST ON COVID-19 IN MONGOLIA
Below are headlines from the past week concerning Covid-19 in Mongolia:
- Mongolia's COVID-19 tally exceeds 450,000
- China, Mongolia to expand cooperation in infrastructure, fighting COVID-19
- COVID-19: 1,230 new cases, three deaths reported
- COVID-19: 1,192 new cases, three deaths reported
- COVID-19: 1,100 new cases, four deaths reported
- COVID-19: 860 new cases, three deaths reported
- COVID-19: 570 new cases, four deaths reported
Source: Various
INTERVIEW WITH DASHDAVAA ZANDRAA, MONGOLIA’S ANTI-CORRUPTION CHIEF
Since Mongolia’s rapid democratization in the 1990s, the country has faced major hurdles in combating corruption. The country spent many years attempting to adopt a new, transparent legal system that prevents government officials taking bribes, but there was a blind side. Although the legislative framework aimed at ending corruption, implementation was not quite successful. When the Pandora Papers revealed undisclosed assets, including cash and property worth millions of dollars, held by Mongolian high-level officials, it sparked public outrage.
As Mongolia’s international reputation grew, both government and non-government organizations have been working on fighting corruption. For example, in 2020, Mongolia implemented e-governance in the midst of the COVID-19 pandemic; significantly, these electronic services help to eliminate lower-level corruption by cutting out interactions with bureaucrats to access government services. Despite these efforts, however, Mongolia continues to rank toward the bottom of international corruption barometers.
Source: The Diplomat
HOW TO DO DIGITAL GOVERNMENT: EXPERIENCES FROM E-MONGOLIA
Almost a year ago, Mongolia launched the e-Mongolia platform to streamline public service delivery. The goals were to reduce bureaucracy, decrease duplication of effort between government organisations, and counter citizens’ frustration with inefficient public services. Bolor-Erdene Battsengel on learnings and successes.
Digitalisation in Mongolia offers an important opportunity to increase accessibility to government services and make the public service work better for its citizens. In 2020, the Mongolian government set out its five-year mission to build a ‘Digital Nation’, harnessing data and technology to facilitate innovation, streamline public services, and diversify Mongolia’s mining-reliant economy.
The first step of our journey to becoming a digital nation was the launch of the e-Mongolia platform. The goal of this system is to digitalise public services and integrate many other separate digital platforms. On October 1, 2020, we launched the e-Mongolia platform with 181 public services that integrated 25 government entities.
Source: Urbanet.info
VIEWS EXCHANGED ON CONNECTING GASHUUN SUKHAIT-GANTSMOD AND SHIVEEKHUREN-SEKHEE BORDER CHECKPOINTS BY RAIL
Minister of Finance and Acting Minister of Economic Development B.Javkhlan held a meeting with Deputy Chairman of the Chinese National Development and Reform Commission Ning Jizhe on February 7.
Organized in the framework of the Mongolian Prime Minister’s visit, the meeting was also attended by Ambassador of Mongolia to China T.Badral, Governor of the Capital City and Mayor of Ulaanbaatar D.Sumiyabazar, and Governor of the Bank of Mongolia B.Lkhagvasuren.
During the meeting, the sides exchanged views on opportunities to jointly implement large-scale infrastructure projects in the framework of the ‘New Revival Policy’ of the Government of Mongolia, such as the construction of a highway and a two-way railroad en route Altanbulag - Zamiin-Uud, and the construction of railroads at Gashuunsukhait - Gantsmod and Shiveekhuren - Sekhee border checkpoints.
They also held an extended discussion on certain projects that are of priority for the side of Mongolia, which include increasing the transport of coal being exported through Gashuunsukhait border checkpoint…
Source: Montsame
See also: “Issue concerning construction of border checkpoint terminal will be finalized on February 15”
D.BUMDARI: ENSURING RIGHT TO ASSOCIATION IS BASIS FOR DIVERSE PLURALISTIC SOCIETY - INTERVIEW
In the following interview, Professor of the National University of Mongolia, PhD D.Bumdari speaks about the bill on political parties, which is under preparation for submission. She participated in the bill discussion as a researcher.
The public demands political parties to be accountable and ethical. So how does the new bill on political parties address the issue of accountability? Should the structure of political parties and their accountability be regulated by law?
Under the current law, there is an oversight committee within a party organization. This committee, together with the party’s code of conduct, address issues of ethics. In particular, political parties deal with ethical and other conflicts through their own party rules and oversight committees. It is believed that the issue of liability can be resolved through regulations on funding for political parties. In accordance with the bill, parties will report on whether it is implementing state funding appropriately.
Source: The UB Post
S.BAT-ERDENE: GOVERNMENT MUST REDEFINE ITS TOURISM PROMOTION POLICY - INTERVIEW
Opportunities to develop the tourism sector are abundant in Mongolia. However, due to the lack of qualified human resources in the sector, the country is not able to make the best out of these opportunities. In the following interview, S.Bat-Erdene, director of the Tourism Development Center under the Ministry of Environment and Tourism, delved into challenges facing the tourism industry and its potential solutions.
How would you describe the current development and level of our tourism industry?
Mongolians think of travel and tourism as one thing. In fact, they are two different concepts. Travel is the process of bringing tourists from abroad by tour operators. People say that traveling from Ulaanbaatar to Khuvsgul Lake is tourism. However, it would be considered tourism only if the road from Ulaanbaatar to Khuvsgul were comfortable. It is the nicest industry that gives people good energy. Tourism creates conditions for people to live happily. It is all about people being safe and happy.
Source: The UB Post
THE BATTLE FOR TIBETAN BUDDHISM WILL BE DECIDED IN MONGOLIA - EDITORIAL
Last summer, a fake news article went viral on a popular Mongolian website, under an alarming headline: “His Holiness 14th Dalai Lama has passed away.” The story was quickly denied by the Dalai Lama’s office-in-exile in Dharamsala, India, and by Gandantegchinlen, the main Buddhist monastery in Mongolia. Just a few weeks later, the Mongolian monastery found itself denying another rumor, this one falsely claiming that the third-highest authority in Tibetan Buddhism—the Jebtsundamba Khutuktu—was about to assume his throne.
Had either of these rumors been true, they would have brought the worst fears of many Mongolians to life. The Jebtsundamba Khutuktu is Mongolia’s spiritual leader, and ever since the death of his ninth reincarnation in 2012, Mongolia has walked a geopolitical tightrope with China on one side and Dharamsala on the other. When and how the Jebtsundamba Khutuktu reincarnates will give one side much more power over the future of Tibetan Buddhism, with significant geopolitical consequences.
Source: WorldPoliticsReview.com
D.SUMIYABAZAR: DURING THE VISIT, THE CHINESE SIDE EXPRESSED WILLINGNESS TO SUPPORT TWO MAJOR PROJECTS IN UB - INTERVIEW
We asked the Governor of the Capital City and the Mayor of Ulaanbaatar D. Sumiyabazar to elaborate on the issues and solutions that were discussed during Prime Minister L. Oyun-Erdene’s working visit to the People’s Republic of China.
-During the Prime Minister’s visit to the People’s Republic of China, what issues relating to Ulaanbaatar city were raised, and what conclusions were made?
-Ulaanbaatar city, home to nearly half of the country’s total population, is a big social and economic complex. So indeed, there is a multitude of problems that need to be resolved. During times of budgetary and financial difficulties, effective political decisions will drive development. The Prime Minister’s official working visit to PRC lasted for 5 days. The inclusion of city officials in the Prime Minister’s delegation is a sign that the Government of Mongolia is sincere in attaching great importance to Ulaanbaatar city, which makes up 50% of the total population.
Source: Montsame
BUSINESS
TURQUOISE HILL'S COPPER MINE RAMPING TOWARD HIGHER CASH FLOW
My proprietary momentum formulas reported a major reversal situation last week in Turquoise Hill Resources trading. If you are looking for cheap exposure to long-term demand growth and prices in copper (from electric vehicle production and global macroeconomic expansion over time), this little-followed mining concern will not reach peak cash flow and production for another five years. Buying now as a long-term hold idea could pay rich dividends for your portfolio's value if copper prices stay high or rise well beyond $4 a pound into 2028.
Back in October, it was difficult to find any good news being reported by management. Turquoise Hill upped its estimate to complete the underground portion of the mine at $3.6 billion (vs. its open-pit design until now), an increase of $1.2 billion vs. earlier calculations. The company also deferred some open-pit metal to beyond 2024, due to technical considerations as well as the impacts of onsite COVID-19 restrictions, including delayed waste movement.
Source: Seeking Alpha
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