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ECONOMY
INFLATION STANDS AT 14.5 PCT IN NOVEMBER
The annual inflation rate for Mongolia rose 14.5 percent year on year in November, data by the country's National Statistics Office (NSO) showed Thursday.
The index remained unchanged from a month earlier, yet rose 12.1 percent from the end of last year.
The increase was mainly related to the higher prices for imported goods, the NSO said.
There are 410 items in the country's consumer goods and services basket, with more than half of them being imported, according to the statistical agency.
The Asian country has set a goal of reducing its inflation rate back to single-digit levels by the end of next year, with the implementation of the fiscal policy, the country's Finance Minister Bold Javkhlan has said.
Source: Xinhua
MONGOLIA JAN-NOV COAL EXPORTS SURGE 78.7 PCT ON YR
Mongolia's coal exports came in at 27.11 million tonnes during the first eleven months of 2022, up 78.72% or 11.94 million tonnes year on year. The export value jumped 120.89% from the year prior to $5.74 billion, showed data from the Mongolian Customs General Administration (MCGA).
MCGA didn't release the specific figure for November, and Sxcoal calculated the shipments at 4 million tonnes based on the overall exports published by the administration.
The volume surged 133.98% or 2.29 million tonnes year on year yet decreased 2.12% or 86,800 tonnes month on month, data showed.
In November, the export amounts totaled $626 million, with the average price calculated at $156.47/t, down $209.72/t year on year but up $7.93/t month on month.
Mongolia exported 25.37 million tonnes of coal to China from January to November, soaring 80.33% year on year, taking up 94% of the total.
Source: SXCoal.com
See also: Mongolia iron ore exports down 38.1% in Jan-Nov
FOREIGN TRADE UP 27 PCT IN FIRST 11 MONTHS
Mongolia saw its foreign trade turnover grow 26.6 percent year on year to 19 billion U.S. dollars in the first 11 months of this year, local media reported on Saturday, citing the Mongolian Customs General Administration (MCGA).
Mongolia registered a surplus in foreign trade balance as exports exceeded imports by around 3.2 billion dollars, with mining products accounting for the majority of the mineral-rich country's total exports in the January-November period, the MCGA data showed.
During the period, China remained Mongolia's top export destination, with its major imports including mining and agricultural products, according to the MCGA.
Source: Xinhua
NEW HOUSING PRICES RISE 17.3 PCT Y/Y
The average price per square meter of newly constructed apartments in Mongolia's capital stood at 3.44 million Mongolian Tugriks (1,003 U.S. dollars) at the end of November, up 17.3 percent year on year, the National Statistics Office (NSO) said Thursday.
Meanwhile, the average price per square meter of an old apartment in Ulan Bator reached 3.21 million Mongolian Tugriks (936.4 dollars) at the end of last month, up nearly 15 percent compared with the same period last year, the NSO said.
The significant increases are mainly related to the spike in the price of construction materials and freight rates due to border restrictions caused by the COVID-19 pandemic, and the ongoing Russia-Ukraine conflict, according to NSO experts.
Housing has been one of the most pressing issues in Mongolia, especially in the capital city, home to over half of the country's population of 3.4 million.
Source: Xinhua
THE STATE AND PRIVATE ENTERPRISES EXPORTED 336.5 MILLION TONS OF COAL BETWEEN 2011 TO 2022
D. Amarbayasgalan, Chief Cabinet Secretary, gave the latest update on current ongoing coal theft.
At the Government meeting held on the 12th December, 2022, it was decided that an international audit to be carried out in regards to the Erdenes Tavan Tolgoi’s financing, mine production and its transportation activities. A Working Group has been established in order to offer an IPO internationally and to open to the public for strategic mines that are currently being possessed by the government and it’s operations such as the Tavan Tolgoi.
As per given update by D.Amarbaysaglan, the state and the private enterprises exported 336.5 million tons of coal between 2011 to 2022, which the sales generated 43 trillion MNT. As per given estimates, the coal theft corruption by the government officials worth 40 trillion MNT are being falsified.
Source: Mining Insight
NEW OPPORTUNITIES FOR MONGOLIA TO STRENGTHEN PRIVATE SECTOR PRODUCTIVITY, DIVERSIFY ECONOMY – WORLD BANK REPORT
Mongolia has an opportunity to strengthen its business environment to create a more level-playing field for companies, particularly small and medium enterprises, (SMEs) and facilitate a more productive private sector beyond the mining sector, according to a World Bank report released today.
For two decades, economic growth performance has been impressive – though volatile – in Mongolia, with significant success in poverty reduction and human well-being. However, the country has become highly dependent on commodities exports, especially coal and copper with weak linkages between mining and the rest of the economy. Unemployment is high, and the labor force participation is falling, notably for women.
Establishing a more conducive and predictable business environment would benefit SMEs, which are more vulnerable to restrictive regulations and make up 97 percent of the active firms in the country, according to the Mongolia Business Environment and Competitiveness Assessment report.
Source: World Bank
View the report
MONGOLIA JOBS DIAGNOSTIC: MORE VIBRANT AND INCLUSIVE LABOR MARKETS FOR ECONOMIC RECOVERY AND DIVERSIFICATION
The objective of the Jobs Diagnostic (JD) is to generate evidence that will inform policies that create more and better jobs in Mongolia while moving toward a more diversified economy. The strategic direction of the World Bank’s engagement in Mongolia emphasizes jobs as a cross-cutting issue that requires interventions from different sectors. Aligned with this, the JD was initiated to carry out a series of analytical studies intended to provide a rich and nuanced jobs narrative for diversified and sustainable job creation in the country. This task includes core analyses on the macro environment, labor demand, and labor supply as well as in-depth studies in specific areas, including labor market regulations and policies, migration, social assistance programs, COVID-19, and the global green transition. The JD also identifies specific actions and interventions needed to create more vibrant and inclusive labor markets for economic recovery and diversification as envisioned in the recently released New Recovery Policy and Mongolia’s Vision 2050 long-term development framework.
Source: World Bank
SUSTAINABLE CASHMERE: THE STORY OF MONGOLIA
Based on traditional pastoralist livelihoods, the cashmere and wool sector is a key driver of the Mongolian economy and second only to the extractive industries. It is, however, facing challenges due to increased competition from foreign processors. In the past 4 years, our STeP EcoLab Mongolia project shared knowledge on social and environmental standards with Mongolian wool processors and cashmere herders. We supported them in implementing the newly-acquired practices as well as in communicating the value of sustainable Mongolian cashmere to European and global consumers.
The journey started in 2018 with a comprehensive assessment of the Mongolian wool and cashmere value chain. Herders as well as processors were involved in the analysis, yielding a thorough view on the sustainability risks and opportunities of the sector. The onsite assessment was complemented by an analysis on market demands as well as established sustainability communication instruments that could serve as guidance.
Source: Collaborating Centre for Sustainable Consumption and Production
TOURISM ASSOCIATION PRESIDENT: “THE YEARS TO VISIT MONGOLIA” WILL BE A STIMULUS FOR THE RAPID RECOVERY OF TOURISM - INTERVIEW
The Montsame News Agency interviewed Cultural Envoy of Mongolia and President of the Mongolian Tourism Association, D. Gantumur.
- The Government of Mongolia announced 2023 and 2024 as “The Years to Visit Mongolia.” What are the main works to be done in this regard?
- Mongolia announced 2023 and 2024 as “The Years to Visit Mongolia” and approved the slogan “Welcome to Mongolia.” With this announcement, the government aimed to give state support to promoting Mongolia, bind the promotion and activities of many different industries into one policy, and increase the budget and workforce for this activity. On the other hand, the declaration of “The Years to Visit Mongolia” has the political importance of taking the lead to the State and moving forward during this time of tourism industry breakdown.
Many objects need to be improved, such as the standards of tourist services, availability of air transport, seats, prices, etc., implementation of the “Vision 2050” development policy by specific industries, and what advantages and positivity need to be formed for individuals.
Source: Montsame
See also: Loan Worth MNT 55 Billion to be Issued to Support Tourism
SQUEEZED BETWEEN CHINA AND RUSSIA, MONGOLIA’S HERDERS FEEL PINCH - EDITORIAL
Dulamsuren Demberel, a 58-year-old herder who lives an eight-hour drive from Mongolia’s capital Ulaanbaatar, finds it harder each month to make the household budget work.
Prices of flour and rice, among the basic staples Mongolia’s herders cannot produce themselves, have soared due to the war in Ukraine, with overall inflation running at an eye-watering 14.5 percent.
Even worse has been the 40 percent jump in the price of coal, as well as shortages recent protests have blamed on corrupt officials’ alleged theft of 385,000 tonnes of coal for sale in China.
In Mongolia, where winter temperatures often dip below -35°C, about 60 percent of the population lives in gers – traditional tents – that are not connected to the country’s Soviet-era heating and water grid, but instead heated using coal-powered stoves. More than one-quarter of households are made up of herders like Demberel, who relocate their flocks and gers several times per year.
Source: Al Jazeera
BUILDING LIVELIHOODS IN MONGOLIA'S UNDERSERVED URBAN AREAS - VIDEO
See the impact and visit the beneficiaries of an ADB-assisted livelihood and area improvement project, who fwho are empowered in Mongolia’s ger areas after being adversely affected by involuntary resettlement.
Ger areas are low-density settlements around urban areas that extend outside the city core of Ulaanbaatar, Mongolia – and they constitute 50% of the city’s population.
Poor air and sanitary conditions in ger areas – can be a serious threat to the city’s environment and people’s health without intervention – we take a look at how economically empowering individuals and improving living conditions can make a significant difference.
Source: ADB
POLITICS
GOVERNMENT EXPEDITING WORKS TO RESOLVE COAL THEFT ALLEGATIONS
Since December 4, peaceful demonstrations is taking place at the central square by citizens demanding the government take decisive and swift actions to resolve the coal theft allegations.
As demanded by the demonstrators, specific measures are being taken by the President of Mongolia, the State Great Khural, the Government, and law enforcement agencies. For instance, a number of working groups have been set up and investigations are underway in accordance with the demonstrators' demands to reveal the violations in the coal sector.
The following decisions were made to resolve the current issue for the past few days:
December 5.
-The Chairman of the State Great Khural issued an ordinance to set up a working group to organize a public hearing on the coal theft allegations.
-The State Great Khural convened virtually to hear reports by the law enforcement agencies regarding the issue.
December 6.
…
Source: Montsame
See also: Mongolian government offers more concessions on probe into coal mafia said to have embezzled billions
A FORMER PRESIDENT, CURRENT MPS AND CEOS NAMED AS ‘COAL THIEVES’
Mongolia’s Anti-Corruption Agency announced yesterday (13 December), names of 17 individuals who involved in a coal theft scandal which caused two week long demonstration in Ulaanbaatar, the country’s capital city. Following officials were directly or indirectly involved in the theft of coal;
- Former President of Mongolia Kh.Battulga /Democratic Party/
- Former Speaker of the Parliament Z.Enkhbold /Democratic Party/
- O.Shijir, former head of the Office of the President of Mongolia /Democratic Party/
- Former Minister of Road Transport Development D.Ganbat /Mongolian People’s Party/
- Member of Parliament A.Adyasuren /Democratic Party/
- Member of Parliament D.Bat-Erdene /Democratic Party/
- Member of Parliament T.Anandbazar /Mongolian People’s Party/
- Member of Parliament N.Naranbaatar /Mongolian People’s Party/
- Member of Parliament B.Battumor /Mongolian People’s Party/
- Member of Parliament Ts.Sergelen /Mongolian People’s Party/
- …
Source: News.mn
See also: Five Mongolian deputies declared that they were not involved in the “coal case”
UPCOMING CHANGES TO MINERAL LICENSING
The Mongolian Government revised the regulation on mineral license bidding (April 12, 2022) last month, which was made public this month. Currently, exploration licenses are issued by a bidding process only. The tender has been digitalized to automate application processing, license issuance, submission, and reviews by an online platform, and to ensure transparency and openness of the tender review commission decisions. The reform is in line with the digitization policy and the objectives of intensifying explorations.
The goal is to improve the economic turnover of areas with mineral resources by easing licensing process using the online system. Under the rule approved in 2008, the Mineral Resources and Petroleum Authority (MRPAM) has set out 8.4 million hectares of land coordinates by a resolution from the Government of Mongolia. A total of 276 exploration licenses have been issued for 1.2 million hectares in total as a result of biddings for 470 sites on a total area of 2.8 million hectares.
Source: Mining Insight
MONGOLIA TO TAKE PUBLIC COMPANY AT HEART OF COAL MAFIA CORRUPTION SCANDAL
Mongolia's government has announced that it is to take public Erdenes Tavan Tolgoi (ETT), the state-owned miner embroiled in the “coal mafia” corruption scandal that has engulfed the country in the past couple of weeks.
Officials said that 30-40% of ETT would be sold on the stock exchange in a first sell-off round on December 14 in an effort at bringing transparency to the coal mining industry and cracking down on graft.
Finance Minister Ganbaatar Jambal added: "In order to prevent future coal theft, a digital mining exchange should be operated."
On the afternoon of December 14, hundreds of protesters were keeping up demonstrations against the government in central Ulaanbaatar over the scandal in which officials and company executives have allegedly stolen billions of dollars of export proceeds on coal clandestinely hauled to China. Some protesters told bne IntelliNews that names of suspects provided by the authorities in the affair so far were “just scraps” and that the government was protecting some of the criminals who “stole prosperity from the people”.
Source: bne IntelliNews, Reuters
See also: Emergency regime imposed for “Tavantolgoi Railways” JSC
Mongolia’s top coal company to brace for international audit scrutiny
IN MONGOLIA, THE DEMANDS OF THE PROTESTERS WERE INCLUDED IN THE AMENDMENTS TO THE PROVISIONS OF THE CRIMINAL CODE
The Mongolian government will submit to the parliament a draft amendment to the anti-corruption legislation, which takes into account the demands of the protesters. According to TASS, this was announced by State Secretary of the Ministry of Justice and Internal Affairs Purevzhavyn Sainzorig.
“It was decided to amend the articles of the criminal code, taking into account the demands of the protesters, who ask not to apply the statute of limitations and amnesty to corruption and malfeasance,” he said.
The official noted that protesters are outraged that corrupt officials who have stolen billions are punished with small fines. Therefore, the law will include a clause on the confiscation of property obtained by criminal means. In addition to this punishment, abuse of power and bribery provide not only for a prison term of up to 20 years, but also for life imprisonment from holding public office.
Source: 247NewsAgency.com
LOCAL ADMINISTRATIVE BODIES OF ULAANBAATAR NOT TO CELEBRATE NEW YEAR WITH BUDGET FUNDS
At the end of the meeting, the Mayor instructed the local administrative bodies of the capital city not to celebrate the New Year with budget funds. The following duties and tasks were given:
· To ensure the operation of the engineering network, preventing unexpected damage, delays, and outages, scheduling and supervising emergency brigades and duty personnel, and preventing possible accidents and any risks.
· To pay particular attention to the creation of normal working conditions for the western and eastern coal plants of refined coal briquette, monitor the quality and standards of the coal, and take measures to provide households with refined coal briquette without interruption.
· To prevent possible dangers and accidents during work, create and supervise the safety of the environment with risks outside of the work area, and implement the requirements of labor safety and hygiene laws and standards.
· To ensure the peace of citizens in the territory of the capital city, exposure to crime and violations, expulsion and injury, to warn, to ensure safety, and to intensify inspection work.
Source: Mayor's Office
SHOULD AN 8-YEAR-OLD BE ALLOWED TO RACE A HORSE? - EDITORIAL
Soyombo Myagmarsuren, 13, began racing when he turned 6, following in the footsteps of generations of horse trainers. “I love horses,” he says, beaming with pride. “It is cool to gallop on a horse mane until the wind whistles.”
These days, Soyombo walks with a limp. Last winter, he fell from a horse while training for a race.
So he did not race competitively in this year’s Naadam, a summer celebration of Mongolian sovereignty believed to have existed since the second century B.C. and held regularly since 1639. The internationally recognized celebration is referred to locally as the “Three Games of Men,” given its showcase of wrestling, archery and horse racing. These sports symbolize strength, wisdom and courage, respectively. (Despite the name, women and girls now also compete in the latter two.)
In the races, horses run courses of 12 to 26 kilometers (7 to 16 miles) across the steppe, depending on the animal’s age.
Source: Global Press Journal
MONGOLIA UNREST LOOKING EERILY LIKE A COLOR REVOLUTION - EDITORIAL
However, the latest wave of unrest in Mongolia carries ominous signs of a color revolution. As in Kazakhstan and Kyrgyzstan, social media are active in stirring up protests.
The protests began last week against the “coal mafia,” which has allegedly been profiteering from doing business with Chinese companies. But various conspiracy theories are spreading on Twitter, including that there would be an internal power struggle among the ruling party elites.
The government responded promptly, with the cabinet deciding to put in the public domain for scrutiny nine contracts related to the state mining company at the heart of the affair and announcing that all future business deals on coal export will be with public knowledge. The government further announced that a parliamentary committee would probe the scandal.
Several hundred protesters gathered in the freezing cold at Ulaanbaatar’s Sukhbaatar Square last weekend and marched to the presidential residence, with some people attempting to force their way inside the building, chanting and singing while stamping their feet to stay warm – eerily similar to the coup in Kiev in 2014.
Source: The Asia Times
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