|Frontier's "Invest Mongolia Tokyo 2018"||Frontier Securities||Tokyo Japan|
|"Open to Export" ICC WTO International business award||ICC WTO||London|
Prices for both coking and thermal coal have both more than doubled since the market bottomed out in 2016.
While demand for thermal coal — which is used for electricity generation – is expected to decrease over the medium term, the outlook is stronger for coking (or metallurgical) coal — which is needed to make steel.
That’s because there is no substitute for metallurgical coal (sometimes shortened to “met”coal) in the production of steel.
About 800kg of metallurgical coal is needed to produce one tonne of steel – or about 200 tonnes for every wind turbine — according to the Office of the Chief Economist.
And with the pickup in global growth supporting steel production – and hence demand for metallurgical coal – prices remain high, increasing from $151 / tonne at the start of August to $178/ tonne on September 24.
China’s environmental and safety reforms have also seen it close local mines, resulting in increased demand for imported coal.
In the medium term, India is expected to become the world largest importer of metallurgical coal by 2020 on the back of a rapidly expanding steel sector.
Mongolia-focused Aspire Mining (ASX:AKM) has been the best performer over the past six months — rising 242 per cent to 2.4c.
Aspire is developing a huge metallurgical coal project known as Ovoot in north-western Mongolia — but first it needs a railway link between the project and Mongolia’s existing rail system.
The 250 million tonne Ovoot project would potentially produce up to 10 million tonnes a year of premium coking coal over a 21-year mine life.
Aspire shares jumped in June on news the Russian and Mongolian governments were planning to upgrade the Russian – Mongolian Ulaanbaatar Railway and lower tariffs to boost trade flow between the countries.
In the meantime, Aspire has kicked off studies into a smaller road-based operation, which will give the miner early cash flow while waiting for rail access.
In July, the share price of Jameson Resources (ASX:JAL) shot up when the company announced it was accelerating permitting and final feasibility studies at its flagship Crown Mountain project in the Canada’s western British Columbia province.
Over the past six months Jameson has enjoyed a 75 per cent share price increase to 17.5c.
The low cost, high quality Crown Mountain project will produce 1.7 million tonnes a year over 16-year mine life – and will take just over 2 years to payback the start-up costs of $US281m.
The share price of fellow Canada-based explorer Pacific American Coal (ASX:PAK), has increased more than 42 per cent in the last six months – and 100 per cent over the last 12 months – to 5.4c.
Pacific American is currently boosting resources its high quality 257 million tonne Elko coking coal project, located in an established coal mining region in British Columbia.
After the exploration program is completed this quarter, the company will look to release an updated Resource Statement in early 2019.
In 2015, when junior Stanmore Coal (AX:SMR) paid a nominal $1 for Vale’s closed Isaac Plains mine in Queensland its share price languished at 8c.
In the last year, the Stanmore share price has jumped 127 per cent – 22 per cent in the last six months – to recent highs of 87c.
In the last financial year the miner reported record revenues of $208.1 million — up 51 per cent from 2017 – and a gross profit of $52.3 million.
At the end of the 2018 financial year, it was debt free, paying dividends, and “well on-track for a 50 per cent increase in production over the next year”, the company said....
Minister of Finance Khurelbaatar Chimed submitted the bill on 2019 State Budget to the Parliament for approval last Friday. The bill estimated budget balance to be MNT 1.9 trillion in deficit with MNT 9.7 trillion revenue and MNT 11.6 trillion expense. The deficit equals 5.2 percent of total GDP. The 2018 budget balance was estimated at MNT 2.4 trillion in deficit. The minister noted that next year’s budget revenue did not include two income sources from Stabilization fund and Future Heritage Fund. If added, the budget balance may total MNT 11.1 trillion in surplus for the first time. “In preparing the budget, we evaluated Mongolia’s economic growth to be 8 percent in 2019. The package bills on taxes were prepared this year and submitted to the Parliament. These taxes will take effect starting from January 1, 2019. We expect the new taxes will have significant impact in increasing economic activity, supporting the operations of small and medium enterprises and attracting foreign investors,” remarked Mr. Khurelbaatar. He added, “For instance, the corporate income tax will be 1 percent for entities with an annual revenue of less than MNT 1.5 billion. Private entities were previously required to submit four tax reports every year. They are now required to submit 1-4 reports depending on their income with the revision. Secondly, an extensive inspection involving over 10 government agencies was co-conducted in tavan tolgoi and border checkpoints. There were some cases were certain amount of coal that were being transported through Gashuunsukhait border checkpoint was lost due to lack of monitoring, as well as quality issues.
Ministry of Finance expects external debt to equal 55 percent of GDP in 2019
Therefore, the Government decided to allocate budget to create comprehensive system to improve monitoring, install x-ray equipment and cameras, which will be government by a single agency. Also starting from 2019, oil products that are being imported through four border checkpoints will be examined by cutting-edge technology. The budget included the necessary financing to install the equipment.” Within the frames of the package bills on taxes, customs databases are expected to be merged and will be commissioned in 2019. The Ministry of Finance expects the unified database will allow taxes to be fully collected and stop tax evasions. According to the budget bill, foreign loans and aids will account for MNT 1.3 trillion of the revenue and remaining will be built up from domestic sources. The ministry estimates the external debt to equal 55 percent of GDP, which is 26.2 percent lower than 2017. “We are increasing the number of projects to be implemented with foreign loans and aids. Prime Minister Khurelsukh Ukhnaa signed an agreement worth USD 350 million to increase the drinking water supply in Ulaanbaatar. Considering the cost of establishing a wastewater facility in Ulaanbaatar, the total expense on water will total USD 650 million. The amount of investment from the state budget totals MNT 1.36 trillion, which doubles the amount of this year,” informed Mr. Khurelsukh. Additionally, MNT 720 billion was allocated a for increasing salary, pension and welfare, while MNT 200 billion has been allocated for air pollution reduction in 2019 Budget.
A panel of the world’s top climate scientists is preparing to recommend much deeper cuts in fossil-fuel pollution than currently suggested as a pathway to stave off a dangerous increase in global temperatures.
Utilities by 2030 would have to consume just a third of the coal they burn now to hold global warming since the start of the industrial era to 1.5 degrees Celsius (2.7 Fahrenheit), according to a draft of the findings that the group will consider when it meets starting Monday in Incheon, South Korea. The cut is more than twice as steep as the boldest scenario outlined by the International Energy Agency.
The recommendations due for release on Oct. 8 are meant to build on the the three-year-old call to action in the Paris Agreement on climate change. While President Donald Trump has called the issue a hoax and vowed to pull out of the deal, governments across Europe and Asia are working to restrain emissions, and the scientists suggest they must move faster.
“It’s certainly a very ambitious target,” said Tim Buckley, director of energy studies at the Institute for Energy Economics and Financial Analysis. “Will we see it happen by 2030? Probably not — not in any models we’re seeing at the moment. But thanks to technology, the markets are moving away from coal really fast.”
The report by the United Nations’ Intergovernmental Panel on Climate Change draws together hundreds of climate scientists from 195 nations. They’re distilling thousands of academic papers into digestible advice for policymakers. Top officials from the panel will weigh every word of the report starting Monday and deliver a final version next week.
The world has warmed almost 1 degree Celsius since the start of the industrial revolution in the early 1800s, and previous reports from the group focused on holding the increase to 2 degrees. Even that level would represent the quickest shift in the climate since the last ice age ended about 10,000 years ago.
This report, commissioned after the Paris deal, stemmed from concerns that island nations would be swamped by rising seas and more violent storms associated with global warming. Scientists link global warming with increasing concentrations of carbon dioxide in the atmosphere, a byproduct of burning fossil fuels, especially coal.
Coal industry officials say that slashing access to their fuel will slow economic growth and leave millions of people trapped in poverty, unable to access affordable electricity.
“It seems to me very unlikely that we will want to use substantially less energy in the future,” said Brian Ricketts, secretary-general of the European Association for Coal and Lignite. “Using energy has allowed us to progress. Using more energy is necessary to create a better world for everyone.”
Carbon dioxide emissions from energy use climbed 1.6 percent in 2017 after three years of little change, according to data from BP Plc. Seventeen of the 18 warmest years during the last 136 have all happened since 2001 with 2016 ranking as the warmest on record, the U.S. space agency NASA has concluded.
Coal currently feeds about 27 percent of the world’s energy demand. That proportion is likely to drop to about 22 percent in 2040 as governments move toward cleaner energy policy, according to the IEA, the Paris-based institution that advises governments on energy.
Under a bolder outlook that assumes quicker action to protect the atmosphere, coal use would fall to 13 percent of the energy market by 2040 — almost double the proportion that the IPCC is weighing as a recommendation. Bloomberg NEF forecasts that global coal generation will peak around 2027 before falling to 11 percent of world electricity by 2050.
Both the IEA and the World Coal Association declined to comment on the draft ahead of publication.
For now, some governments are pressing ahead with meeting commitments under the Paris agreement even though Trump is working to boost the coal industry. China is scaling back its program to expand coal power, and Europe is working to phase it out completely. In Germany, Chancellor Angela Merkel nominated a panel to advise her when the nation can close all its coal plants. The U.K. has vowed to scrap coal by 2025.
Trump’s reluctance to embrace climate science has slowed momentum at the UN talks that produced the Paris Agreement. Envoys at those discussions floundered over the details of a rulebook on how to implement the 2015 accord. They hope to endorse those guidelines at the end of this year at a meeting in Poland, spelling out both how $100 billion in climate-related aid will be delivered and market mechanisms that would spur further emissions cuts.
Delegates at the IPCC meeting go through their findings line-by-line this week in South Korea then sign off on a summary document to be formally released by the gathering on Oct. 8. The envoys are likely to amend parts of the draft before it’s released....
Ulaanbaatar /MONTSAME/. The Minister of Finance Ch.Khurelbaatar submitted the bill on the 2019 State Budget which was approved by the Government.The budget revenue is calculated to be MNT9 trillion and 676.5 billion or 27.4 percent of the GDP and the expenditure as MNT11 trillion 589.8 billion or 32.8 percent with a deficit of MNT1 trillion 913.3 billion or 5.4 percent of the GDP.
In the coming year, it is planned to run the “Electronic, apparent, efficient” budget policy in aims of having a sustainable economic growth and boosting the efficiency of the budget.
To reform budget expenditure numerous actions are planned including eliminating uneven distribution, making it transparent, taking conrete measures for reducing air pollution, making hospitals more autonomous and fixing the funding system, drastically improving quality and access of services of family clinics and soum hospitals, increasing meat export by improving livestock health, preparing professional workers that are in high demand in labor market, efficiently spending wage expenditure, raising investment for solving pressing social issues, improving its efficiency and using foreign soft loans for beneficial social and economic projects.
The Government has planned on paying back debt of MNT1 trillion 71.9 billion to the Human Development Fund and MNT553.1 billion in 2019 and save over MNT1 trillion each year for the Future Heritage Fund. By doing this, Mongolia would be making savings from the income of natural resources for the first time and leaving it as an inheritance for the future generations
The government has planned on paying back 1 trillion 71.9 billion tugrugs of debt of the Human Development Fund and 553.1 billion tugrugs in 2019 and save over 1 trillion tugrugs each year for the Future Heritage Fund. By doing this, Mongolia would be making savings from the income of natural resources for the first time and leaving it as an inheritance for the future generations.
Ulaanbaatar /MONTSAME/. The ceremony for ‘Digital currency’--a new method of payment has taken place at the Bank of Mongolia today.
As the bill on the National payment system was passed, the Bank of Mongolia has developed a new set of regulations about digital currency. Mobifinance non-bank financial institution of the Mobicom Corporation became the first company to acquire the certificate for issuing digital currency and it started the circulation of “Candy” as an official digital currency.
The CEO of Mobicom Corporation Tatsuya Hamada said, “As digital currencies have begun to circulate, ATMs and cards will become a thing of the past as well.”
Ulaanbaatar /MONTSAME/ On September 27, Minister of Foreign Affairs of Mongolia D.Tsogtbaatar met with Secretary-General of the Organization for Security and Co-operation in Europe (OSCE) Thomas Greminger and exchanged opinions on bilateral cooperation.
The parties agreed to strengthen cooperation between Mongolia and the OSCE, cooperate in cyber security, combating money laundering and human trafficking and train students at the OSCE Academy in Bishkek.
Minister D.Tsogtbaatar emphasized necessity of a mechanism of interreligious dialogue for peace and Mongolia's plan to host an event on the occasion of the 50th anniversary of the Asian Buddhist Conference for Peace and requested to support the event.
OSCE Secretary-General Thomas Greminger said that the cooperation in economy, environment, law enforcement and election observation is actively developing since Mongolia joined the organization in 2012, and noted the broad potential of cooperation.
UN highly appreciates Mongolia’s contribution to maintaining nuclear-free Korean peninsula www.montsame.mn
Ulaanbaatar /MONTSAME/ During the 73rd Session of the United Nations General Assembly Prime Minister of Mongolia U.Khurelsukh met with the UN Secretary-General Antonio Guterres on September 27. The parties exchanged views on relations and cooperation between Mongolia and the UN.
Prime Minister U.Khurelsukh emphasized the importance of the Government's relation and cooperation with the UN and expressed his sincere gratitude for the UN's support for Mongolia's socio-economic and development goals.
Moreover, Prime Minister noted about participation of 16 thousand Mongolian military and police officers in the UN peacekeeping operations, the successful organization of the Asian Ministerial Conference on Disaster Risk Reduction in cooperation with the UNISDR and expressed his support for the UN Secretary-General’s reform program. He also reiterated Mr. Antonio Guterres’s invitation to Mongolia.
UN Secretary-General Antonio Guterres expressed his high appreciation to the Government’s contribution for ensuring security in Northeast Asia, maintaining nuclear-free Korean peninsula and Mongolian military and police officers' performance of their duties in peacekeeping operations with high discipline and dignity. Mr. Antonio Guterres also pledged to fully support Mongolia within the UN
A delegation led by the Minister of Mining and Heavy Industry of Mongolia Sumiyabazar Dolgorsuren paid a working visit to the Russian Federation on September 23-25. During his visit, Mr. Sumiyabazar held bilateral meetings with Igor Sechin, CEO, Chairman of the Management Board, Deputy Chairman of the Board of Directors of Rosneft, and Igor Levitin, Aide to the President of Russia. During the fourth Eastern Economic Forum, President of Mongolia Battulga Khaltmaa and his Russian counterpart Vladimir Putin discussed issues, such as the construction of natural gas pipes, economic corridor and the celebration of the 80th anniversary of the victory at the Battle of Khalkha River together. Mining Minister Sumiyabazar and Rosneft President Igor Sechin exchanged views on wide range of issues including conducting joint research on oil exploration in Mongolia, construction of oil refinery, studying possibilities of building gas pipe through Mongolia at the site and celebrating the 80th anniversary of the victory at the Battle of Khalkha River. In addition, Rosneft agreed to provide fuel for the new airport in the Khushig Valley. “Fuel is an important strategic product for Mongolia. Therefore, it is necessary for us to maintain its supply and increase the capacity of warehouse at the border.
We also seek opportunities to take substantial measures to ensure stable fuel price that directly affect the livelihoods of the people. The Government decided to build an oil refinery with the financing from the EXIM Bank of India. Rosneft has a great experience in oil exploration and processing. Experts led by the Rosneft Vice President Aleksandr Anatolyevich Romanov will visit the oil refinery site, gas pipe establishment area and the 19th, 21th field of Dachin Tamsag, where the oil will be extracted” noted Minister Sumiyabazar. Highlighting the successful implementation of the works on exporting the Tavan Tolgoi coal to international markets with the international standards, Minister Sumiyabazar said “The Memorandum on cooperation was established with the OTEKO JSC of Russia to invest in Tavan Tolgoi, transport coal to the Black Sea Coal Terminal at port Taman and export to third markets. Tavan Tolgoi plans to export 25 million tons of coal through the Port Taman annually.” Accordingly, the minister visited the Port Taman and met the OTEKO CEO Michel Litvak. As for the meeting with Mr. Levitin, Mining Minister Sumiyabazar exchanged views on cooperation policies and current issues, as well as co-hosting the 80th anniversary of Khalkh river battle.
Ulaanbaatar/MONTSAME/ The first meeting of the joint research team in charge of studying possibilities to establish free trade agreement between Mongolia and the People’s Republic of China, was held in Ulaanbaatar, Mongolia on September 26-27.
The meeting was headed by Deputy Directors of International Trade and Economic Cooperation Departments of the Foreign Affairs Ministry of Mongolia and at the Chinese Ministry of Commerce.
During the meeting, the sides provided information on experiences of their respective countries to establish free trade agreement and exchanged views on general scope of bilateral joint works. Concluding the meeting, the sides signed minutes of the first meeting of joint research team and ‘Assignments of joint research works for scrutinizing possibilities to establish free trade agreement between Mongolia and the People’s Republic of China’
ULAN BATOR, Sept. 27 (Xinhua) -- Mongolia and Russia will enhance cooperation in the mining sector, especially on the exploration of a coal mine in southern Mongolia, a statement from the Mongolian Mining and Heavy Industry Ministry said Thursday.
A Mongolian delegation led by Minister of Mining and Heavy Industry Dolgorsuren Sumiyabazar visited Russia on Sept. 23-25.
"During the visit, the delegation inspected a project of dry bulk terminal at the Russian seaport Taman. The delegation and relevant Russian officials, including Presidential Aide Igor Levitin, agreed to cooperate to export coal of Tavan Tolgoi to third-party markets via the port of Taman," said the statement.
With a total estimated reserve of 6.4 billion tons, Tavan Tolgoi, located in Omnogovi Province, southern Mongolia, is one of the world's largest untapped coking and thermal coal deposits.