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ECONOMY
GDP INCREASES BY 7.9 PCT IN THE FIRST QUARTER OF 2023 Y/Y
In the first quarter of 2023, by preliminary estimation of the production approach, Gross Domestic Product (GDP) at current prices was MNT 13.6 trillion, which increased by MNT 4.0trillion (42.1%) compared to the same period of the previous year. GDP at 2015 constant prices was MNT 5.6 trillion, which is increased by MNT 413.6 billion (7.9%) compared to the same period of the previous year.
GDP at 2015 constant prices decreased by 3.9% in the first quarter of 2022 while increasing by 7.9 in the first quarter of 2023.
In the first quarter of 2023, seasonally adjusted GDP at 2015 constant prices increased by 0.8% compared to the previous quarter.
In the 7.9% increase in the first quarter of 2023, the agriculture sector contributed -0.2 percentage points, the mining and quarrying sector contributed 5.3 percentage points, industry and construction sectors contributed -0.3 percentage points, the service sector contributed 3.8 percentage points and net taxes on products contributed-0.7 percentage points.
Source: NSO
See also: Mongolia Shows Promising Economic Growth Boosting Current Administration Ahead of 2024 Elections
HOUSEHOLD REAL INCOME DECREASES 3.9 PCT Y/Y
According to the result of the Household Socio-Economic Survey in the first quarter of 2023, the monthly average household income was MNT 1.9 million, increased by MNT 101.1 (5.7%) thousand compared to the same period of the previous year and increased by MNT 39.9 (2.2%) thousand compared to the previous quarter.
In the first quarter of 2023, the average monthly real income (price changes adjusted) reached 1.2 million MNT, decreased by MNT 47.5 (3.9%) thousand compared to the same period previous year and increased by MNT 13.5 (1.2%) thousand compared to the previous quarter. The 3.9% decrease from the same period previous year was mainly resulted from MNT 52.6 (15.9%) thousand decrease in real income from pensions and allowances.
The monthly average household monetary income in the first quarter of 2023 was MNT 1.8 million, increased by MNT 134.3 (8.2%) thousand compared to the same period of the previous year.
Source: NSO
FOREIGN TRADE TURNOVER REACHES USD 7.7 BILLION
In the first four months of this year, Mongolia traded with 134 countries. Foreign trade turnover amounted to USD 7.7 billion, of which export is USD 5.1 billion and import USD 2.7 billion.
Total turnover increased by USD 2.6 billion (50.5%), specifically exports by USD 2.3 billion (81.8%), and imports by USD 310.5 million (13.2%) compared to the same period of the previous year. However, in April of this year, exports decreased by USD 198.7 million (13.1%), and imports by USD 20.2 million (2.7%) compared to the previous month.
The foreign trade balance in the first four months of 2023 indicated a surplus of USD 2.4 billion, an increase of USD 2 billion (5.4 times) compared to the same period of the previous year. However, in April of this year, there was a profit of USD 597.7 million, which decreased by USD 178.5 million (23%) from the previous month.
Source: Montsame, NSO
GROSS INDUSTRIAL OUTPUT DOWN 11.2 PCT M/M, UP MORE THAN DOUBLE Y/Y
By the preliminary results, in the first 4 months of 2023, the gross industrial output reached MNT 10.8 trillion, which increased by MNT 5.7 trillion (2.1 times more) from the same period of the previous year. This increase was mainly due to the mining and quarrying production output increase by MNT 5.2 trillion (2.6 times more) and the manufacturing production output of 279.7 billion (23.0%), respectively.
By the preliminary results, in the first 4 months of 2023, the mining and quarrying gross output reached MNT 8.5 trillion, which increased by MNT 5.2 trillion (2.6 times more) from the same period of the previous year. This increase was mainly due to increases in coal and lignite mining by MNT 4.3 trillion (8.6 times more) and mining of metal ores by MNT 468.2 billion (17.7%) from the same period of the previous year.
Source: NSO
FITCH AFFIRMS MONGOLIA AT 'B': OUTLOOK STABLE
Fitch Ratings has affirmed Mongolia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B' with a Stable Outlook.
Strong Growth, External Vulnerabilities: Mongolia's ratings are underpinned by favourable medium-term growth prospects and high per capita income relative to 'B' rated peers. The ratings are constrained by the country's high reliance on external funding and commodity exports to China amid high external debt and low foreign-exchange reserves. Mongolia scores well on World Bank Governance Indicators relative to 'B' peers, but has suffered from political volatility around issues of resource nationalism.
Growth Rebound: We forecast real GDP growth of 5% in 2023, similar to 2022, on stronger mining activity and steady domestic demand. Growth will likely accelerate in 2024. Coal exports are rebounding after China's removal of border pandemic controls. Export capacity will rise further once cross-border rail links become fully operational in the next one-two years. The strategic Oyu Tolgoi copper mine's underground phase started production in March 2023, although most of the volume gains will only come from 2025.
Source: Fitch, Montsame
CAN MONGOLIA ‘SURVIVE’ AND PROTECT THE ECONOMY DURING NET-ZERO TRANSITION? - EDITORIAL
Global warming manifests itself in different ways depending on the region, zone, and location. In particular, chief economist of the Asian Development Bank (ADB) Albert Park said at the bank’s Annual Meeting on May 3 in Incheon, South Korea that given its geographic features and socioeconomic circumstances, developing Asia is vulnerable to climate-related risks. More specifically, 76.9 percent of Mongolia’s land area is estimated to have been affected by desertification.
According to the Asia in the Global Transition to Net Zero: Asian Development Outlook 2023 Thematic Report of ADB, at current levels of greenhouse gas emissions, Asia would, by itself, exhaust the remaining global carbon budget consistent with limiting warming to 1.5 degrees Celsius by 2040. Therefore, countries and international organizations are working carefully in this direction and announcing important projects and programs. For instance, this year, ADB has launched the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP), a landmark program which will help ADB accelerate much-needed climate financing.
Source: The UB Post
ENDURING EARTH: PROTECTING MONGOLIA’S GRASSLANDS - VIDEO
Mongolia's grasslands provide a way of life for millions of people and habitat for a wide array of unique species, but they are increasingly threatened due to climate change. Protecting nature at the scale it needs to survive requires unprecedented collaboration alongside bold action. In a new initiative known as Enduring Earth, The Nature Conservancy has partnered with other global conservation organizations to assist countries with their environmental goals.
Enduring Earth is an ambitious collaboration that works alongside nations as they accelerate and amplify conservation for a more sustainable, prosperous future for people and planet. Central to our approach is Project Finance for Permanence, an innovative and proven model that fully funds conservation projects to ensure durable and scalable impact.
Source: The Nature Conservancy
POLITICS
PRESIDENT OF FRANCE EMMANUEL MACRON TO VISIT MONGOLIA
President of the French Republic Emmanuel Macron will pay a State Visit to Mongolia at the invitation of President of Mongolia Ukhnaagiin Khurelsukh on May 21-22. It will be a historic visit as it is the first visit at the level of the Head of State from France.
In the course of the visit, Mongolian President U. Khurelsukh and French President Emmanuel Macron will hold official talks and discuss advancing the relations and expanding cooperation between the two countries, with particular emphasis on increasing investment.
Issues on expanding the relations in fields such as green energy, road transport, health, agriculture, culture, education, and humanitarianism, and implementing mutually beneficial joint projects are expected to be topics of the talks.
Moreover, the Heads of State of the two countries will discuss cooperation within the framework of the National Campaigns, namely “Food Revolution”, “One Billion Trees” and “President’s Scholar-2100” and brief the press on the outcomes of the Visit.
Source: Montsame
See also: Mongolie: Macron en visite dimanche, une première pour un président français
CITIZENS' OPINIONS COLLECTED ON POSSIBLE CONSTITUTIONAL AMENDMENT
Parliamentarians are working in their respective constituencies to present the draft amendment to the Constitution and receive the citizens’ suggestions and opinions in accordance with an order by the speaker of Parliament.
In particular, legislators are working in Darkhan-Uul Province, and held a meeting and discussion to get citizens’ opinions. Residents expressed their support for a mixed electoral system, while making suggestions related to manual counting of ballots and fair elections. In addition, in order to strengthen the representative capacity, the citizens supported to expand Parliament to include representatives of social groups and sectors and increase the number of members.
Members of Parliament Ts.Munkhtsetseg and D.Tsogtbaatar are meeting the Sukhbaatar District residents. They informed that in order to improve the Parliament’s ability to represent the people, the number of lawmakers will be increased to 152 in accordance with the population, and fifty percent of the total members will be elected by majority and fifty percent by proportional method in accordance with the draft amendment.
Source: The UB Post
See also: New Constitutional Amendments Toward Expansion of Parliament and Proportional Representation in Parliamentary Elections
Citizens Voice their Opinions on Constitution Amendments
VIETNAM HOLDS IMPORTANT POSITION IN MONGOLIA'S FOREIGN POLICY: OFFICIAL
Mongolia is proud to be a friend of Vietnam - a country with increasing international prestige and position in the region and the world, which has a vital position in Mongolia's foreign policy in Southeast Asia, Secretary of the National Security Council of Mongolia Jadamba Enkhbayar told President Vo Van Thuong at their meeting in Hanoi on May 17.
President Thuong highlighted the fruitful friendship between the two nations in the last nearly seven decades, saying that the bilateral relations have been continuously consolidated and developed strongly.
He highly valued the outcomes of the working session between the Mongolian delegation with the Ministry of Public Security and relevant agencies of Vietnam, stressing that on the basis of important results of the bilateral cooperation relationship, the two countries will make joint efforts to upgrade their relations and further promote comprehensive cooperation in the new context.
Source: Vietnam Plus
MONGOLIAN PEACEKEEPERS SUPPORT REFUGEES RETURN HOME IN SOUTH SUDAN FROM WAR-TORN SUDAN
South Sudanese refugees, who initially sought shelter from conflict in 2013 by fleeing to their northern neighbour, Sudan, are now heading back to their home country, given escalating violence in Sudan's capital, Khartoum.
These twice-displaced individuals urgently require humanitarian assistance and on 5 May 2023, a team of military, police, and civilian peacekeepers from the United Nations Mission in South Sudan (UNMISS), visited the South Sudan-Sudan border area, Panakuach, to assess their situation.
The team coordinated with Mongolian peacekeepers during their visit and spoke with the South Sudanese border police area commander and humanitarian workers.
According to South Sudan's Relief and Rehabilitation Commission (RRC), as of 4 May, some 1,198 returnees were recorded.
“We are doing everything we can to secure the populations returning from Sudan. In collaboration with officials from Rubkona county, we have allocated some land for them to temporarily settle, but they lack food and water. They need more assistance,” said David Lung Tuorek, an official from the RRC.
Source: UN Mongolia
GOVERNMENT TAKES STEPS TOWARDS SALARY EQUALITY
At today's Cabinet session, the Prime Minister has issued an order to take measures aimed at equalizing the salaries of employees in the culture, sports, and health sectors with those in the education and science sectors. In accordance with the Culture Law, the Cabinet has approved a procedure for providing cash benefits equivalent to six months' basic salary to cultural sector employees working in rural areas once every five years. The Minister of Culture, Ch. Nomin, and the Minister of Finance, B. Javkhlan, have been tasked with coordinating and financing these measures within the 2023 budget and reflecting the financial source in the annual state budget in the future.
Currently, Mongolia has 4,470 employees working in 432 rural-owned cultural organizations. According to the regulation, 70 percent of these employees will receive cash benefits. It is worth noting that wages in the cultural sector are lower compared to other public service sectors.
Source: Montsame
UNITED STATES LAUNCHES NEW GRANT PROGRAM TO ADVANCE CLEAN ENERGY IN MONGOLIA
The United States Agency for International Development (USAID) today launched the Mongolia Energy Research and Innovation (MERI) Fund, a small grants program to bolster Mongolia’s economic growth by facilitating the transition to clean energy.
The grant program is part of USAID’s five-year, $12 million Mongolia Energy Governance project, which is assisting Mongolia in developing a more resilient and sustainable energy sector. Through the project, USAID is working with key government and private sector partners to develop a more competitive and financially sustainable energy sector that will increase economic competitiveness, create a more stable and secure domestic energy supply, and develop more renewable energy projects.
“The U.S. government is pleased to provide these funding opportunities that will help build a robust energy sector ecosystem, strengthen the institutional and human capacity of Mongolian organizations, and develop the necessary tools to facilitate the energy sector transition,” USAID Deputy Development Advisor Steve Winkates said at the launch event.
Source: U.S. Embassy in Mongolia
THE CURRENT STATE OF MIGRATION TO MONGOLIA
With a mining-reliant economy and environmental factors contributing to desertification and the loss of agricultural resources, it is not surprising that Mongolians migrate internally from rural to urban centers. Mongolia’s capital, is close to several mines and is almost always the desired destination. There, migrants can find urban jobs and social infrastructure not as readily available in rural communities.
Besides the Mongolians themselves, there are anti-war Russians and their families seeking refuge or temporary stays in Ulaanbaatar. Despite the icy capital being over 200 miles away from the closest border, Russians are undeterred by the distance. Vladimir Putin’s military conscription, which occurred in late 2022, was the leading cause of this exodus.
The fight for a new home and way of life is not easy and challenges exist for those who cross the border and enter the capital: overcrowding, expensive housing and limited social services to name a few. With the current system, there are evident inadequacies and wealth disparity.
Source: Borgen Magazine
See also: Internal Migration Situation in Mongolia: Situation Analysis Report
SLOVENIAN-MONGOLIAN PARLIAMENTARY FRIENDSHIP GROUP ESTABLISHED
On her visit to the Republic of Slovenia, Minister of Foreign Affairs B. Battsetseg paid a courtesy call on President of the National Assembly of Slovenia Mrs. Urška Klakočar Zupančič, and exchanged views on the possibility of expanding relations and cooperation between Mongolia and Slovenia.
At the beginning of the meeting, Minister of Foreign Affairs B. Battsetseg conveyed the greetings of Chairman of the State Great Khural of Mongolia G. Zandanshatar, and talked about expanding economic cooperation between Mongolia and Slovenia and working together in the fields of tourism, forest management, information technology, water management, and renewable energy.
President of the National Assembly Urška Klakočar Zupančič informed about the establishment of the Slovenian-Mongolian parliamentary friendship group in the National Assembly of the Republic of Slovenia.
Source: Montsame
UB MAYOR: PARTNERSHIP BETWEEN ULAANBAATAR AND SEOUL TO BE BROUGHT TO A NEW LEVEL - INTERVIEW
Governor of the capital city and Mayor of Ulaanbaatar D.Sumiyabazar is working on an official appointment in the Republic of Korea. In this context, he met with Chairman of the Seoul Metropolitan Council Kim Hyeon-gi, and the Mayor Oh Se-hoon. Mayor D.Sumiyabazar explained about cooperation between the two cities and future possibilities.
-What are the possibilities for cooperation in the future?
-Seoul is a leading city in the region. Therefore, the two cities can work together to increase investment and trade, fight against climate change, and solve urban problems. Special attention will be paid to localize and study the experience of smart and rational solutions and decisions implemented by Seoul in the direction of reducing air and environmental pollution, increasing green areas, reducing traffic congestion, and increasing access to public transportation. The content of the meeting with the Mayor of Seoul and the Chairman of the Seoul Metropolitan Council was also aimed at this.
Source: Mayor's Office
See also: Mayor met with the Chairman of the Seoul Metropolitan Council
Ulaanbaatar to cooperate with Seoul in four directions
Cooperation with KOICA in development projects discussed
The public transport payment system to be improved
DORNOGOVI PROVINCE WILL ESTABLISH A NEW STANDARD FOR COLLABORATION WITH MINING COMPANIES - INTERVIEW
In recent years, the issue of local mining relations has become a major problem. It has become common for companies with mining lilicenses to go to local communities and face opposition from the people. Therefore, Mining Insight Odjargal.E spoke with the Batjargal.O Governor of Dornogovi province to convey the views of the local people at a time when the discussions on the revisions to the Minerals Law are in full swing.
How does the mining industry contribute to the economy of the province in terms of its position and role?
Dornogovi province has been the mining hub of Mongolia since the socialist era, with significant infrastructure and railways established to support it. The establishment of the Erdenet Mining Corporation led to the creation of "Mongolrostsvetmet" fluorspar concentration plants in Urgun and Dalanjargalan soums, transporting their products via railroad. Additionally, the Zuunbayan oil refinery was also established in the region. In recent years, there has been a rise in the development of major infrastructure related to mining…
Source: Mining Insight
DR. D. ALTANTSETSEG: THE REFINERY PROJECT MOVES FORWARD TO CONSTRUCTION PHASE - INTERVIEW
Montsame interviewed Dr. D. Altantsetseg, the Executive Director of the state-owned company “Mongol Refinery” LLC, Mongolia's Consulting Engineer, about the progress of the Mongol Refinery Project.
The Government of Mongolia is implementing the Project to establish a grass root Oil Refinery Plant based on domestic crude in Dornogobi aimag, located in Southeastern part of the country, within the framework of the soft loan extended by the Government of India to ensure energy independency and expand the industry diversification.
Upon approving the Detailed Feasibility Study and selecting "Engineers India Limited" as Project Management Consultant in 2019, the design and engineering works had started, and from this year on, the mechanical erection of the main technological facilities will start at full capacity.
Out of four main EPC packages planned for the project, the first package, which comprises of non-technological facilities, such as civil buildings (office-training center, first aid center, fire station, warehouse, laboratory, workshop, canteen…
Source: Montsame
See also:
WILL NORTH KOREA’S FOREIGN MINISTER VISIT MONGOLIA THIS YEAR? - EDITORIAL
In 2023, Mongolia and North Korea will mark both the 75th anniversary of the establishment of their diplomatic relations and the 35th anniversary of the visit of late North Korean leader Kim Il Sung to Mongolia.
Amid the pandemic, people’s exchanges and economic and trade relations were temporarily suspended for three years, but the two sides strengthened their friendly relations and exchanged greetings on the occasion of national traditional festivals every year.
In articles published by the Korean Central News Agency, North Korea’s main state mouthpiece, Mongolia has been mentioned more than 100 times in the past three years. Mongolian President Khurelsukh Ukhnaa was mentioned nine times, Foreign Minister Battsetseg Batmunkh was mentioned eight times, and Prime Minister Oyun-Erdene Luvsannamsrai was mentioned once.
In 2018-19, Mongolia caused an unexpected stir by offering to host a summit between then-U.S. President Donald Trump and North Korean leader Kim Jong Un in Ulaanbaatar.
Source: The Diplomat
See also: Mongolia detains 4 North Koreans who illegally crossed into country from China
MONGOLIA SHOWS CANADIAN FOREIGN POLICY DOMINATED BY MINING COMPANIES - EDITORIAL
An important facet of Canadian foreign policy is advancing the interests of mining companies. In Mongolia it’s largely all Global Affairs Canada does.
Canadian ambassador Catherine Ivkoff regularly travels to Canadian-run mines, speaks at international mining conferences, does interviews with mining publications and talks up the sector in various other business and political forums. “We will be working to promote Canadian Green Mining solutions and initiatives in Mongolia”, noted a recent headline based on an interview with Ambassador Ivkoff.
In a recent Canadian Journal of Development Studies article headlined “Mining self-interest? Canadian foreign aid and the extractive sector in Mongolia”, Stephen Brown points out that Canada’s aid in the Central Asian nation is largely designed to advance mining interests. An embassy official told Brown that Canadian aid in the country of 3.5 million people is “focused exclusively in the extractive sector” even though the World Bank warned that Mongolia’s economy was excessively reliant on mining.
Source: Spring Magazine
UNVEILING THE PATH TO PREVENTING CONFLICT OF INTERESTS - EDITORIAL
Proposed amendments to the law on the regulation of public and private interests, as well as the prevention of conflict of interest in public service, seek to restrict high-ranking politicians and senior officials from engaging in business ventures with the government. To ensure the effectiveness of this law, robust oversight measures are imperative.
Since its establishment in 2006, the anti-corruption agency has been striving to address conflicts of interest among politicians that not only erode public trust but also undermine effective governance.
In December 2022, public outrage reached its peak, manifesting in a significant demonstration in Ulaanbaatar's main square.
In response, Prime Minister Luvsannamsrain Oyun-Erdene launched an ambitious anti-corruption campaign earlier this year, encompassing operations such as "whistleblow" to expose corruption crimes, "wipe-out" to remove "parasites" from public offices, and to bring back overseas escapees. This comprehensive campaign also aims to recover illegal funds hidden offshore.
Source: Mongolia Weekly
BUSINESS
PRIMARY MARKET TRADING OF “TRADE AND DEVELOPMENT BANK OF MONGOLIA” WILL START
According to Resolution No.180 of the Financial Regulatory Commission dated May 12, 2023, and Order No. A/68 of the CEO of the Mongolian Stock Exchange dated May 3, 2023, “Trade and Development Bank of Mongolia” LLC will offer 2,530,047 shares to the public at MNT 33,000.
The primary market trading of the “Trade and Development Bank of Mongolia” LLC will be organized through the MSE IPO system from May 18, 2023, to May 23, 2023.
“Trade and Development Bank of Mongolia”s leading underwriter is “Mirae Asset Securities Mongolia UTsK” LLC and “TDB Securities UTsK” LLC is the co-underwriter.
Please click here for the detailed prospectus.
Source: MSE, FRC
PRAGUE TO ULAANBAATAR DIRECT FLIGHTS LAUNCHING THIS JUNE
Mongolia’s Eznis Airways company will introduce direct flights from Prague to Ulaanbaatar as of June. Direct flights are another step in developing Mongolian and Czech tourism after Mongolia lifted visa requirements for Czech tourists.
Details on the flight frequency and departure dates have not yet been announced. A bilateral agreement on direct flights was made in 2017, but the flights failed to materialize. There was renewed diplomatic interest in the idea in 2020, but the pandemic and other issues caused delays.
Mongolian students will come to Czechia starting in 2024 as part of a scholarship program. Czech Foreign Minister Jan Lipavský and his Mongolian counterpart Battsetseg Batmunkh announced the developments at a press conference after their talks in Prague yesterday. In addition to education, both foreign ministers discussed cooperation in trade and the environment.
Source: Expats.cz
ACTION PLAN FOR INCREASING PARTICIPATION OF TOP-100 COMPANIES IN THE CAPITAL MARKET APPROVED
Mr. D.Bayarsaikhan (Chairman, Financial Regulatory Commission) and Mr. O.Amartuvshin (President, Mongolian National Chamber of Commerce and Industry) approved the Action plan for increasing the participation of TOP-100 companies in the capital market.
Mr. D.Bayarsaikhan highlighted that as a result of the comprehensive policy and regulatory measures taken by the Financial Regulatory Commission (FRC) within the framework of the Strategy to Reduce Loan Interest Rates, Banking Reform, and Privatization of State-Owned companies, 60 new financial products have been issued in the last 2 years, and as of 17 May 2022, the market capitalization reached MNT8.7 trillion, an increase of 26.8% compared to the same period of 2022. In addition, while 5 companies issued IPOs and raised MNT340 billion, one company issued open-end bonds with a value of MNT20 billion. On the OTC market, 76 companies issued more than 100 new products and raised MNT1.1 trillion.
Source: FRC
EBRD AND KHAN BANK PROMOTE WOMEN ENTREPRENEURSHIP IN MONGOLIA
Women-led businesses in Mongolia will benefit from new funds made available by the European Bank for Reconstruction and Development (EBRD) through the country’s largest commercial lender, Khan Bank.
The EBRD’s loan of up to US$ 20 million to Khan Bank, its client since 2007, will help promote women’s entrepreneurship and business activity by assisting with access to finance and technical advice. It is expected that up to US$ 5 million of the total amount will be earmarked to support digitalisation of these businesses, as envisaged by the Bank’s Central Asian Women in Business Programme.
As part of the project, Khan Bank will be able to develop the financial products and lending practices that these women-led micro, small and medium-sized enterprises need, including for their digitalisation. This activity is supported through grant funds provided under the Women Entrepreneurs Financing Initiative (We-Fi).
Source: EBRD
TMK ENERGY AND TALON ENERGY COMPLETE DRILLING AT LUCKY FOX-2, MONGOLIA
TMK Energy has completed drilling at the Lucky Fox-2 well as part of its pilot well drilling program at the Gurvantes XXXV CSG project in the South Gobi Basin in Mongolia.
The Lucky Fox-2 well was drilled to a depth of 407 metres, intersecting up to 62 metres of gassy coal.
Drilling and installation of production casings and tubing were completed on May 15.
TMK Energy reported the rig would soon be moved to the site of the final well in the pilot well program, Lucky Fox-3.
“The rig is now moving to the final well in the program, Lucky Fox–3, which is expected to commence drilling in the next few days following the rig move and some routine maintenance,” he said.
The pilot well program includes the drilling of three individual production wells spaced approximately 200 metres apart, with drilling expected to be completed by the end of May.
Source: The Market Herald, The West Australian
STEPPE GOLD UNVEILS POSITIVE FINANCIAL RESULTS FOR FIRST QUARTER OF 2023, OUTLINES FUTURE OUTLOOK
Steppe Gold Ltd has reported positive financial results for the first quarter of 2023 and outlined its future outlook.
The company's revenue for the quarter amounted to $9,525,000 generated from the sale of 5,008 ounces of gold and 651 ounces of silver. The average realized prices per ounce were $1,899 and $19, respectively.
Steppe Gold produced 6,993 ounces of gold and 19,877 ounces of silver during the quarter, resulting in an operating income of $6,024,000 from mine operations before depreciation and depletion.
The company's consolidated group adjusted EBITDA, after stream payments, reached $2,141,000 for the quarter. Steppe Gold reported an all-in-sustaining cost (AISC) of $679 per ounce sold during the quarter.
Mining activity during the period involved the extraction of 87,362 tonnes of ore, with 195,196 tonnes stacked on the leach pad, carrying an average gold grade of 0.94 grams per ton (g/t) and an average silver grade of 5.81 g/t.
Source: Proactive Investors
See also: Steppe Gold Announces Q1 2023 Financial Results
ELIXIR ENERGY TO EXPAND NOMGON PILOT PROJECT AS COMMERCIAL POTENTIAL FOR CBM GROWS IN MONGOLIA
Elixir Energy Ltd has revealed an expansion of the Nomgon Pilot Project underway at the Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC) in the South Gobi Basin of Mongolia.
As part of the expansion plan for the pilot production project, the company will extend the flow period and drill an additional pilot well.
This comes as the company believes the commercial potential for CBM in Mongolia is significant due to comparatively much lower drilling costs and access to gas prices that reflect the East Asian region as an LNG importer rather than an exporter.
Elixir's strong view is that the commerciality of CBM in the Mongolian context has material advantages over the likes of Australia.
Elixir completed the workover of the two-well pilot project at Nomgon IX in early April 2023. This involved the existing completions being removed, cleaned out and replaced.
Source: Proactive Investors
EBRD PROMOTES NEW RETAIL FORMAT IN MONGOLIA WITH GS25
The European Bank for Reconstruction and Development (EBRD) is helping to introduce new retail formats in Mongolia by supporting the expansion of Digital Concept, an operator of convenience stores.
Digital Concept, which runs the GS25 convenience store franchise chain, will use a Bank loan of up to US$18 million to open as many as 63 new shops by the end of 2023 and to finance the construction of a food factory and logistics centre.
The Bank’s financing will underpin the company’s investment programme, aimed at opening more than 100 new stores a year to 2027 in the country’s capital, Ulaanbaatar, as well as in the cities of Darkhan and Erdenet.
The programme will implement a popular GS25 Korean convenience store model, introduce new food retail industry standards to the country and bring a wide range of food products, everyday items, and fresh food and drinks to Mongolian customers.
Source: EBRD
IT COMPANIES CONSORTIUM TO TAKE PART IN ONLINE COAL TRADING
Given the Mining Exchange Law will come into effect on July 1, the parties involved in online coal trading of the Mining Exchange began to be identified. "Erdenes IT Consortium", an association of information and technology companies is evidence. They intend to work together to create an eco-system in the mining industry by developing transport logistics, payment, and IT modules in online coal trading. To this end, a joint forum was organized under the theme "Ensuring the participation of parties in the operation of the Mining Exchange" on May 10.
The information and technology consortium participating in online coal trading includes 11 companies such as "Itzone," "iTools," "Gerege systems," "Cody," "Digital Finex," "Utility solution," "InnoSolution," "Itauco," "DPS" (Digital Payment Solution), and "Anicar" which have a long history of operating in the field of information technology in Mongolia. Executive Director of "Erdenes IT Consortium" B. Buyannemekh clarified, "Currently, in the mining ecosystem of our country a complex platform for product spot, forward and futures trading, option transactions, their payment and tracking of transport logistics has been developed."
Source: Montsame
EBRD AND XACBANK CONTINUE GREEN LENDING PARTNERSHIP IN MONGOLIA
Companies and households across Mongolia will be able to modernise production, increase their energy efficiency and improve their climate resilience thanks to a new financing package organised by the European Bank for Reconstruction and Development (EBRD) for the country’s most active green lender, XacBank.
The package of up to US$25 million, arranged under the EBRD’s Green Economy Financing Facility, consists of an EBRD loan of up to US$ 18.75 million and financing of up to US$ 6.25 million provided by the Green Climate Fund (GCF).The funds will be on-lent to borrowers to reduce energy consumption, promote the use of renewable energy sources and support local businesses in adopting environmentally friendly practices.
XacBank, one of the largest banks in Mongolia, was the first local financial institution to join the EBRD’s GEFF. It supports green lending to micro, small and medium-sized enterprises through 72 branches across the country.
Source: EBRD
THERE ARE NO STANDARDS SET IN TOURISM SERVICES - EDITORIAL
A tour operator of Mongolia cooperated with a foreign company manager and organized a trip involving well-known and famous people, however the manager shook his head and said, “Mongolia is not ready yet.” Tourists who came here to get to know Mongolia’s winter stayed at the recreation and tourism complex in Arkhangai Province, which operates throughout the four seasons and is considered the largest in our country. But this was just a name. From the characteristic, attitude and service of the employees, many things did not meet the travelers’ expectations. Although it was a holiday and tourism complex, the electricity and hot water are cut off shortly as they are on, and the food does not arrive on time, leaving foreigners surprised. When the manager from the tour operator company complained to the resort, they almost threatened to kick them out because of their high demands. The young man, who expressed his frustration said, “When the service organizations are in this poor state, our country should not talk or dream about receiving one million tourists.”
Source: The UB Post
See also: "Mongolia-Japan Tourism Forum-2023" in Tokyo
GLOBAL AND REGIONAL NEWS
GLOBAL WARMING SET TO BREAK KEY 1.5C LIMIT FOR FIRST TIME
Our overheating world is likely to break a key temperature limit for the first time over the next few years, scientists predict.
Researchers say there's now a 66% chance we will pass the 1.5C global warming threshold between now and 2027.
The chances are rising due to emissions from human activities and a likely El Niño weather pattern later this year.
If the world passes the limit, scientists stress the breach, while worrying, will likely be temporary.
Hitting the threshold would mean the world is 1.5C warmer than it was during the second half of the 19th Century, before fossil fuel emissions from industrialisation really began to ramp up.
And breaking the limit even for just one year is a worrying sign that warming is accelerating and not slowing down.
The 1.5C figure has become a symbol of global climate change negotiations. Countries agreed to "pursue efforts" to limit global temperature rises to 1.5C under the 2015 Paris agreement.
Source: BBC
CHILE GREENLIGHTS MINING TAX REFORM THAT BOOSTS GOVERNMENT TAKE
Lawmakers in Chile’s lower house of Congress gave final approval on Wednesday for a long-awaited mining tax reform that now requires only the signature of leftist President Gabriel Boric, who has publicly backed it, to become law.
The reform will require large copper and lithium producers that operate in the mineral-rich Latin American nation to pay more taxes and royalties to the government.
Chile is the world’s top copper producer and No. 2 in lithium, both seen as key to making future fleets of electric vehicles powered by rechargeable batteries.
By a vote of 101 in favor to 24 against, lawmakers approved modifications to the tax and royalty bill endorsed by the Senate last week.
The lopsided vote was hailed by Finance Minister Mario Marcel, who underscored that the higher government take required of mining companies would address past abuses.
Source: Reuters
JAPAN Q1 ECONOMY EXPANDS ANNUALISED 1.6 PCT QTR/QTR
Japan's economy grew an annualised 1.6% in January-March from the previous quarter, as firm private consumption and an unexpected rise in capital expenditure offset shrinking external demand, government data showed on Wednesday.
The first-quarter gross domestic product figures was much larger than economists' median estimate for a 0.7% annualised growth. The expansion translated into a quarterly increase of 0.4%, the data showed.
Domestic private consumption, which makes up more than half the economy, grew 0.6% quarter-on-quarter in January-March, and capital expenditure, a key engine of growth, gained 0.9%, against economists' estimate for a decrease.
External demand, or net exports, shaved off 0.3 percentage point off the first-quarter gain, which was more than offset by positive domestic-demand contribution of 0.7 percentage point.
Source: Reuters
See also: ‘Foreign investors are back’: Japan stocks surge to their highest since 1990
GLOBAL DEBT NEARS RECORD HIGHS AS RATE HIKES TRIGGER ‘CRISIS OF ADAPTATION,’ TOP TRADE BODY SAYS
The global debt pile grew by $8.3 trillion in the first quarter to a near-record high of $305 trillion as the global economy faced a “crisis of adaptation” to rapid monetary policy tightening by central banks, according to a closely-watched report from the Institute of International Finance.
The finance industry body said the combination of such high debt levels and rising interest rates has driven up the cost of servicing that debt, triggering concerns about leverage in the financial system.
Central banks around the world have been hiking interest rates for over a year in a bid to rein in sky-high inflation. The U.S. Federal Reserve earlier this month lifted its fed funds rate to a target range of 5%-5.25%, the highest since August 2007.
“With financial conditions at their most restrictive levels since the 2008-09 financial crisis, a credit crunch would prompt higher default rates and result in more ‘zombie firms’ — already approaching an estimated 14% of U.S.-listed firms,” the IIF said in its quarterly Global Debt Monitor report late Wednesday.
Source: CNBC
See also: Debt in advanced economies is piling on to global challenges, says World Bank president
COPPER AND ZINC SINK TO FRESH LOWS AMID CHINA ECONOMIC UNCERTAINTY
Prices for nonferrous metals like copper and zinc have slumped this month despite predictions of shortages just a few weeks ago, on concerns that the shortfalls could turn into surpluses if Chinese demand recovers more slowly than expected.
Three-month zinc futures on the London Metals Exchange, an international benchmark, fell to $2,483 per tonne at one point Tuesday, the lowest since October 2020 and down by roughly half from the all-time high reached in spring 2022.
Copper sank as low as $8,090.50 per tonne the same day, its weakest in nearly half a year, while lead has slid to a three-month nadir. All three commodities, used in a range of construction and industrial applications, have seen especially sharp declines this month in particular.
This came as a surprise to many market players, as it occurred after industry groups and investment banks had forecast tighter supplies than previously expected.
Source: Nikkei Asia
G-7 SET FOR A SHOW OF RESOLVE IN HIROSHIMA: 5 THINGS TO KNOW
The Group of Seven leaders will gather on Friday in Hiroshima for a three-day summit where, in light of Russia's invasion of Ukraine, they are expected to reaffirm their commitment to an international order rooted in the rule of law.
The leaders are also scheduled to visit historic spots in Hiroshima, the target of one of two atomic bombs the U.S. dropped in World War II. By showcasing that legacy, Japanese Prime Minister Fumio Kishida aims to underscore the need for a world "without nuclear weapons" at a time when nuclear threats are rising.
A number of leaders from outside the G-7 -- including Indian Prime Minister Narendra Modi and South Korean President Yoon Suk Yeol -- are also invited.
Here are five things to know.
Source: Nikkei Asia, CNBC
See also: G7 Japan summit to target Russian exports in latest Ukraine war sanctions
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, Энэ и-мэйл хаягийг спамботоос хамгаалсан. Та үзэхийн тулд JavaScript идэвхжүүлэх хэрэгтэй.; and Sunjidmaa Jamba, Энэ и-мэйл хаягийг спамботоос хамгаалсан. Та үзэхийн тулд JavaScript идэвхжүүлэх хэрэгтэй.)
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, Энэ и-мэйл хаягийг спамботоос хамгаалсан. Та үзэхийн тулд JavaScript идэвхжүүлэх хэрэгтэй.; and Sunjidmaa, Энэ и-мэйл хаягийг спамботоос хамгаалсан. Та үзэхийн тулд JavaScript идэвхжүүлэх хэрэгтэй.);
- 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 – 18 May 2023
| Currency |
|
|
Rate |
| U.S. dollar |
USD |
|
3,459.33 |
| Euro |
EUR |
|
3,741.96 |
| Japanese yen |
JPY |
|
25.10 |
| British pound |
GBP |
|
4,306.87 |
| Hong Kong Dollar |
HKD |
|
441.84 |
| Russian ruble |
RUB |
|
43.07 |
| Chinese yuan |
CNY |
|
492.15 |
| South Korean won |
KRW |
|
2.59 |
|
