1 MONGOLIA MARKS CENTENNIAL WITH A NEW COURSE FOR CHANGE WWW.EASTASIAFORUM.ORG PUBLISHED:2024/12/20      2 E-MART OPENS FIFTH STORE IN ULAANBAATAR, MONGOLIA, TARGETING K-FOOD CRAZE WWW.BIZ.CHOSUN.COM PUBLISHED:2024/12/20      3 JAPAN AND MONGOLIA FORGE HISTORIC DEFENSE PACT UNDER THIRD NEIGHBOR STRATEGY WWW.ARMYRECOGNITION.COM  PUBLISHED:2024/12/20      4 CENTRAL BANK LOWERS ECONOMIC GROWTH FORECAST TO 5.2% WWW.UBPOST.MN PUBLISHED:2024/12/20      5 L. OYUN-ERDENE: EVERY CITIZEN WILL RECEIVE 350,000 MNT IN DIVIDENDS WWW.GOGO.MN PUBLISHED:2024/12/20      6 THE BILL TO ELIMINATE THE QUOTA FOR FOREIGN WORKERS IN MONGOLIA HAS BEEN SUBMITTED WWW.GOGO.MN PUBLISHED:2024/12/20      7 THE SECOND NATIONAL ONCOLOGY CENTER TO BE CONSTRUCTED IN ULAANBAATAR WWW.MONTSAME.MN PUBLISHED:2024/12/20      8 GREEN BOND ISSUED FOR WASTE RECYCLING WWW.MONTSAME.MN PUBLISHED:2024/12/19      9 BAGANUUR 50 MW BATTERY STORAGE POWER STATION SUPPLIES ENERGY TO CENTRAL SYSTEM WWW.MONTSAME.MN PUBLISHED:2024/12/19      10 THE PENSION AMOUNT INCREASED BY SIX PERCENT WWW.GOGO.MN PUBLISHED:2024/12/19      КОКС ХИМИЙН ҮЙЛДВЭРИЙН БҮТЭЭН БАЙГУУЛАЛТЫГ ИРЭХ ОНЫ ХОЁРДУГААР УЛИРАЛД ЭХЛҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/20     "ЭРДЭНЭС ТАВАНТОЛГОЙ” ХК-ИЙН ХУВЬЦАА ЭЗЭМШИГЧ ИРГЭН БҮРД 135 МЯНГАН ТӨГРӨГ ӨНӨӨДӨР ОЛГОНО WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/20     ХУРИМТЛАЛЫН САНГИЙН ОРЛОГО 2040 ОНД 38 ИХ НАЯДАД ХҮРЭХ ТӨСӨӨЛӨЛ ГАРСАН WWW.NEWS.MN НИЙТЭЛСЭН:2024/12/20     “ЭРДЭНЭС ОЮУ ТОЛГОЙ” ХХК-ИАС ХЭРЛЭН ТООНО ТӨСЛИЙГ ӨМНӨГОВЬ АЙМАГТ ТАНИЛЦУУЛЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/20     Л.ОЮУН-ЭРДЭНЭ: ХУРИМТЛАЛЫН САНГААС НЭГ ИРГЭНД 135 МЯНГАН ТӨГРӨГИЙН ХАДГАЛАМЖ ҮҮСЛЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/20     “ENTRÉE RESOURCES” 2 ЖИЛ ГАРУЙ ҮРГЭЛЖИЛСЭН АРБИТРЫН МАРГААНД ЯЛАЛТ БАЙГУУЛАВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/20     “ORANO MINING”-ИЙН ГЭРЭЭ БОЛОН ГАШУУНСУХАЙТ-ГАНЦМОД БООМТЫН ТӨСЛИЙН АСУУДЛААР ЗАСГИЙН ГАЗАР ХУРАЛДАЖ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/20     АЖИЛЧДЫН САРЫН ГОЛЧ ЦАЛИН III УЛИРЛЫН БАЙДЛААР ₮2 САЯ ОРЧИМ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/19     PROGRESSIVE EQUITY RESEARCH: 2025 ОН “PETRO MATAD” КОМПАНИД ЭЭЛТЭЙ БАЙХААР БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/19     2026 ОНЫГ ДУУСТАЛ ГАДААД АЖИЛТНЫ ТОО, ХУВЬ ХЭМЖЭЭГ ХЯЗГААРЛАХГҮЙ БАЙХ ХУУЛИЙН ТӨСӨЛ ӨРГӨН МЭДҮҮЛЭВ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/19    

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Events

Events

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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

NEWS

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Can Mongolia ‘survive’ and protect economy during net-zero transition? www.theubposts.com

Countries have long expressed their desire to reduce greenhouse gas emission and end the use of coal. In particular, as part of the Paris Agreement, countries around the world agreed to pursue efforts to limit global warming to well below two degrees Celsius, preferably to 1.5 degrees Celsius, compared to pre-industrial levels. To achieve this, countries must reduce their greenhouse gas emissions to “net zero” by around 2050. In that context, more than 40 countries pledged to phase out coal and international organizations have already announced that they will not finance projects that involve coal. It has been questionable whether our country, which has an economy based on mining, is ready for this and how to achieve the net zero promise.
The main reason why the global focus on this matter has accelerated is, of course, global warming, as it has led to an increase in the number of droughts, as well as the threat of desertification due to human activities.
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. The IF-CAP’s initial ambition of 3 billion USD could create up to 15 billion USD in new climate investment. It is expected to contribute to ADB’s raised ambition of 100 billion USD in climate finance for 2019 through 2030.
When the world is moving in this direction, what is Mongolia aiming for and what is it implementing? Issues such as whether the country is ready for a net zero transition and whether it can save its economy while meeting its commitments are arising.
At the Sharm el-Sheikh Climate Change Conference (COP 27) last year, President U.Khurelsukh remarked, “Although the amount of greenhouse gases emitted by our country is only 0.1 percent of the total greenhouse gas emissions in the world, it is considered high compared to the size of its population and economy. That is why Mongolia has consistently supported global efforts against climate change and has been making its due contribution.” In this context, he said that the country defined the national goal of reducing greenhouse gas emissions by 27.2 percent.
Accordingly, as a national contribution to combating climate change, Mongolia launched a national campaign to plant billions of trees by 2030 to reach net-zero emission targets, reduce poverty or combat desertification through economic means, protect the health of children and women who are the most vulnerable to the climate change.
To achieve its commitment, the country is also working with regional countries and international organizations to increase domestic renewable energy sources. Due to its geographical location and climatic conditions, Mongolia has huge renewable energy resources, which can be measured at 2,600 gigawatts. This shows the potential to increase renewable energy production and further contribute to the region’s energy supply. At present, 18.2 percent of Mongolia’s total installed energy capacity is provided by renewable energy, and it aims to reach 30 percent by 2030. Currently, 75 percent of livestock farmers in our country use renewable energy.
According to the Ministry of Environment and Tourism, to reduce greenhouse gas emissions by 12.3 percent in 2024, it is necessary to reduce the amount of greenhouse gases equivalent to 9.2 million tons of carbon dioxide. Therefore, the ministry announced that it will increase the number of wind and hydropower plants, reduce heat loss in buildings, improve energy efficiency, use quality fuel in cars, decrease the number of livestock, and upgrade pasture management. Head of the Department of Climate Change of the ministry A.Enkhbat said that by adding greenhouse gas absorbers or forest areas, the goal of reducing greenhouse gas emissions by 12.3 percent, which is included in the government’s action plan, will be implemented.
He informed, “According to the survey of greenhouse gas emissions, 50.1 percent of Mongolia’s greenhouse gas emissions are accounted for by the energy sector, 49 percent by the agricultural sector, and a small percentage by the industry, waste, and construction sectors. Mongolia’s future development is inextricably linked with climate change policy. Therefore, we are implementing a program to develop a low-carbon, inclusive and green economy, mitigate climate change, and contribute to international efforts. For example, there is a need to improve the legal framework for climate change.”
“We use coal burning technology to generate power. About 20 to 30 percent of the installed energy capacity should be made green. The government has decided to build several hydropower plants, which is a real step towards reducing greenhouse gas emissions. Public-private partnerships and green development are important in the direction of reducing and adapting to greenhouse gas emissions,” he added.
On top of these commitments, Mongolia decided to host COP17 session in 2026. In general, our country is taking these initiatives to fight against global climate change. In other words, we are making some efforts to achieve our promises, but it is doubtful whether we are ready to protect our economy in the future in this global trend.
This is because some countries and international organizations have committed to shift away from coal, in pledges made at the COP26 climate summit. Signatories to the agreement have committed to ending all investment in new coal power generation domestically and internationally. They have also agreed to phase out coal power in the 2030s for major economies, and the 2040s for poorer nations.
On the contrary, according to data from the World Bank, the mining sector accounted for approximately 22 percent of Mongolia’s GDP in 2021, and over a staggering 80 percent of the country’s exports. Thus, the importance of mining to the Mongolian economy cannot be overstated, as it has been a key driver of economic growth. More specifically, coal is the main component of the economy. The country’s coal exports totaled 13.78 million tons between January and March 2023, surging 11.26 million tons or 446.17 percent year on year. The export amounts totaled 2.24 billion USD during the first three months, jumping 232.16 percent year on year.
The 2030s, 2040s and 2050s may sound far away, but it is doubtful whether Mongolia will be able to diversify its economy out of dependence on mining until then. Therefore, we should start paying attention to this issue as well.
On this matter, Prime Minister L.Oyun-Erdene expressed that the government is making commitments to the net-zero transition and is preparing for the “end of coal”. In particular, the government is trying to develop its tourism to support its economy, declaring this year and upcoming years as “Years to Visit Mongolia”.
Professor of the University of Finance and Economics J.Delgersaikhan commented, “This issue is not discussed today. Since the beginning of the 21st century, the issue of reducing greenhouse gases started to be considered. The issue of stopping the use of coal was raised 10 years ago. I see that Mongolia will continue to have an economy based on mining in the next 10 years. I don’t see coal going out of demand during this time. That’s why we need to increase our existing coal export, improve its output, and spend our wealth and income from mining very properly. In the next 10 years, we need to change and diversify our economic structure with this mining income. Only then will we survive. Until today, Mongolia has been spending most of its mining income in areas that do not bring much impact or benefit to the society, such as welfare. In the future, we need to reduce our dependence on mining. Unfortunately, our country cannot do this. We’ve been talking about it since 1998, but we still haven’t done it.”
ADB Country Director for Mongolia Pavit Ramachandran also expressed, “Mongolia has a coal-dependent economy right now, particularly for the energy sector. Countries are already making commitments to the net zero transition so there will be less and less demand for coal. That’s just the nature of where things are headed. The multilaterals and bilaterals will not invest in coal projects. Moreover, we are also going to see less investment flowing into the fossil fuel sector so I think attractiveness as an investment destination will also depend on diversification. Mongolia has a lot of potential in agribusiness agriculture but it only processes five percent of the meat that they produce in the country. So there’s a huge potential for value addition. On the issue of tourism, the government is now making a big push. They just need to look at a broader product base, broader marketplace and look at diversification.”
It is commendable that Mongolia is contributing to this big global issue and is making efforts, but as economists and experts say, it is important to diversify the economy from now on. At a time when Mongolia is greatly affected by global climate change, it is 100 percent up to us how we can join hands in this great contribution to the world while saving and expanding our economy.
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Mongolia's GDP expands 7.9 pct in Q1 www.xinhuanet.com

Mongolia's gross domestic product (GDP) expanded by 7.9 percent year-on-year in the first quarter of this year, the country's National Statistics Office (NSO) said Wednesday.
The increase was mainly thanks to a significant growth of the mining exports, according to the NSO.
Mongolia is rich in natural resources, and the mining sector has been one of the main drivers of the country's economic growth for many years.
The landlocked Asian country's economy grew 4.8 percent in 2022 and 1.4 percent in 2021.
International banks and financial institutions are optimistic about Mongolia's economic outlook. Its GDP is projected to grow 5.4 percent in 2023 and 6.1 percent in 2024, supported by exports, recovery in mining and its positive spillover to transport and other pursuits, according to the Asian Development Bank.
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Foreign Minister Pays Courtesy Call on the President of Slovenia www.montsame.mn

Minister of Foreign Affairs B. Battsetseg paid a Visit to the Republic of Slovenia on May 15-16. As part of the Visit, on May 15, Minister B. Battsetseg paid a courtesy call on President of the Republic of Slovenia Nataša Pirc Musar.
At the outset of the meeting, the Minister conveyed the warm greetings of President of Mongolia Ukhnaagiin Khurelsukh and noted the significance that Mongolia has been attaching to its relations with the Republic of Slovenia.
The parties exchanged views on opportunities to expand the relations between the two countries in the fields of politics, economics, trade, tourism, and IT, noting the 30th anniversary of the establishment of diplomatic relations between Mongolia and Slovenia, which marks this year.
After the parties agreed on the importance of supporting the cooperation between the business communities and increasing the trade turnover of the two countries, President Nataša Pirc Musar pledged support for fostering the relations in all spheres of cooperation.
Moreover, President Nataša Pirc Musar expressed delight with the mutual support of the two countries in the international arena and the expansion of the relations and cooperation, anchoring in our shared values of democracy, freedom, and human rights.
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Gametoon, FightBox launch in Mongolia www.advanced-television.com

The two Canal+ companies SPI International and THEMA have partnered to bring SPI’s channels Gametoon and FightBox to Mongolia. This marks SPI International’s first launch in the country.
Viewers in Mongolia can now enjoy Gametoon and FightBox on Mongolsat’s DTH and OTT services. With the addition of these two channels, Mongolian viewers will now have access to a range of sports and entertainment content. Viewers can tune in to channel 601 for Gametoon and channel 602 for FightBox.
“Mongolia is a new territory for the SPI channels. We are excited to bring new entertainment channels to this market and help Mongolsat to differentiate its lineup,” said Alexandre Bac, Managing Director at THEMA Asia Pacific.
“We are thrilled to partner with THEMA Asia Pacific and to bring our channels Gametoon and FightBox to the viewers in Mongolia,” said Murat Muratoglu, Head of Distribution at SPI International. “We are always looking for new opportunities to expand our global footprint and this launch represents a key milestone for SPI International in the Asia Pacific region.”
Bumchin Namshir, Director of MongolSat Networks, added: “We are happy to be partnering with THEMA for FightBox and Gametoon. Our herders’ families and young adults will have the opportunity to enjoy these channels and keep up with gamers from all around the world. The addition of FightBox brings a unique aspect to our programming, complementing our traditional wrestling competitions. We look forward to many more years of collaboration and thank you for partnering with us’’.
Gametoon is a channel dedicated to esports and video games, offering a wide variety of gaming-related content, including game reviews, eSports tournaments, and walkthroughs. FightBox is a combat sports channel, showcasing various forms of martial arts and combat sports from around the world.
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Mongolia Shows Promising Economic Growth Boosting Current Administration Ahead of 2024 Elections www.mongoliaweekly.org

Mongolia's economy showed promising signs of growth in the first quarter of 2023, according to recent statistics. Foreign trade turnover increased by a staggering 57% year-on-year to $5.7 billion USD, resulting in a surplus of approximately $1.8 billion.
The surge in exports of mining products played a significant role in this growth, with China, Switzerland, and South Korea being the top three destinations for Mongolian exports. However, the foreign trade turnover also increased by 32 percent year on year to $21 billion in 2022, which means that the growth rate in Q1 2023 was not as staggering as it might seem.
Furthermore, the largest land port on the China-Mongolia border, Erenhot, recorded a remarkable year-on-year increase of 72% in its import and export cargo throughput during the same period. The port's highway throughput also saw a surge of 250%. As a result, the port saw 156,000 exits and entries, averaging over 3,600 daily visits.
The Mongolian coal industry is also thriving, with exports reaching almost 6 million tonnes to China in March alone. Data from the Mongolian Customs General Administration shows that coal exports surged by 446% year-on-year to 13.8 million tonnes during January-March 2023, totaling $2.24 billion in export amounts during the same period.
The World Bank and the Asian Development Outlook both project that Mongolia's GDP will grow by over 5% in 2023, as mining and exports continue to expand, and the post-pandemic recovery in services persists.
Mongolia Economic Growth
Although challenges such as high inflation, debt, fiscal risks, external sector imbalances, and over-reliance on the mining sector remain, the projected growth is an encouraging sign for the Mongolian economy.
This economic growth is not only significant for Mongolia's financial health but also for its political future. The current government and Prime Minister will likely benefit from the country's economic improvements ahead of the 2024 elections. The increase in exports and trade, as well as the growth of the coal industry, may translate to increased voter support for the current administration.
Despite the challenges and potential obstacles, Mongolia's economy's upward trend in the first quarter of 2023 is a promising sign of growth and stability. With continued investment and strategic planning, the country has the potential to achieve sustained economic growth for years to come.
Amar Adiya is Editor-in-Chief of Mongolia Weekly, a newsletter in English for international audience.
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Maximizing nutrition in key food value chains of Mongolia under climate change www.ifpri.org

Mongolia’s projected warming is far above the global average and could exceed 5 °C by the end of the century. The reliance on pastoral livestock and rainfed agriculture along with its fragile ecosystems put Mongolia’s economy at risk of adverse climate change impacts, particularly from climate extreme events. Eighty percent of Mongolia’s agricultural sector is concentrated in animal husbandry with around one third of the population relying on this livelihood. Beyond livestock, food production is concentrated in few crops: wheat; potatoes; and three vegetables (cabbage, carrot, and turnip). Climate change does not only affect food production but can exacerbate malnutrition by removing food and nutrients in all stages of the food value chain. To identify perceived effects of climate change and measures to reduce climate change impacts in Mongolia's’s key food value chains, we implemented focus group discussions with 214 livestock and vegetable producers, traders, and food consumers. We also conducted 30 key informant interviews at the soum, provincial, and national levels across four agroecosystems in three provinces. Based on this community engagement analysis, we identify interventions that the government and private sector, including herders and farmers, should undertake to increase the food security and nutrition of the country’s prioritized food value chains under climate change.

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IT Companies Consortium to Take Part in Online Coal Trading www.montsame.mn

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." He said that national IT companies within the Consortium propose to invest and cooperate in activities of the Mining Exchange without taking any funds from the state budget.
Chairman of the Board of Directors of the Consortium D. Davaa said, "There are many problems in the current exchange trading. Therefore, it is necessary to ensure the participation and cooperation of the public and private sectors, focus on forming the structure of the eco-system by introducing transport logistics, payment, and IT modules in the coal trade, and further develop it. In this way, the national mining eco-system could compete internationally.”
He underlined that information and technology companies, coal suppliers, transporters, and logistics companies are enabled to participate in the digital trade of the coal exchange, which has already started in our country, with their own systems and the system of IT companies’ consortium. In addition to major "players," small enterprises and individuals can participate in online coal trading through professional associations in accordance with relevant laws and regulations.
Representatives of securities companies also participated in the "Mining Ecosystem" forum. The introduction of the Mining Exchange in Mongolia will bring a number of outcomes including :
· Make exchange trading reliable, transparent, and controlled,
· Create accredited laboratories, warehouses, and carriers,
· Facilitate participation of professional investors and investment funds, custodians, brokers, and traders,
· Increase state and local budget and tax revenues.
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Tax Spending and Equal Application of Laws www.montsame.mn

"Taxpayers' Days," which is held on the second week of May every year, was celebrated for the 25th year last week.
Equal participation of citizens and enterprises in tax relations and equal application of legislation were focused on during the "Taxpayers' Days." From this point of view, starting from this year the tax organization has applied a 4-level evaluation to calculate the extent to which taxpayers comply with legislation and conduct responsible activities.
Another feature of this year's "Taxpayers' Days" was the issue of tax spending. Head of the General Department of Taxation B. Zayabal mentioned the implementation of the Austerity Law and clarified that the beneficiaries of taxes, especially government and administrative organizations, are moving to the mechanism of saving tax expenditures and reporting this to the public. He announced that the Ministry of Finance and the tax organizations will jointly deliver information on tax spending to citizens through the e-barimt system.
Tax spending and equal application of laws were discussed during the "Tax Days". The tax authorities use real estate tax as an example of unequal and unfair payment of taxes and unequal enforcement of tax laws. The rate and amount of tax payable in this respect are unequal depending on the date and location of the real estate registration.
The number of taxable real estate has increased by 20,000 in the last two years. Specifically, in 2020, 45.1 thousand real estate were registered for tax, while this number increased to 56.7 thousand in 2021 and 63.8 thousand in 2022 respectively. However, the number of real estate taxpayers was 33.1 thousand in 2020, while this number increased to 39.6 thousand in 2021 and 43.8 thousand last year.
By law, the minimum real estate tax rate is 0.6 percent and the maximum rate is 2 percent. In reality, the tax is charged at a maximum of 1 percent depending on the zoning. Real estate tax is the main source of revenue of local budgets.
Taxable property and the number of taxpayers are increasing year by year, but the tax rate amount has not changed in the last 10 years.
Taxes are levied on income, consumption, and assets owned by citizens, enterprises, and organizations. The State Department Store has paid MNT 84 million in real estate tax for the past 20 years, while Shangri-La Hotel has paid MNT 8.8 billion in real estate tax. Even though they operate in the same zone of the city, depending on the evaluation registered in the registration authority, they pay extremely different taxes, according to the General Department of Taxation.
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Ivanhoe Electric sets up JV with Saudi Arabia’s Ma’aden www.mining.com

Ivanhoe Electric (NYSE America, TSX: IE) is forming a 50/50 joint venture with Saudi Arabian miner Ma’aden to explore for metals considered key for the world’s energy transition in the Middle eastern country.
As part of the deal, Ma’aden will invest $126.5 million in Ivanhoe Electric equity, which grants the Gulf’s largest miner a 9.9% stake in the company, mining magnate Robert Friedland’s latest endeavour.
From that figure, $66 million will go to the JV to fund exploration and Ivanhoe Electric will keep the remaining $60 million to advance its own portfolio of US mineral projects.
“Our joint venture will embark on the largest exploration program ever conducted using our highly powerful and disruptive Typhoon geophysical surveying system,” Friedland, Ivanhoe Electric’s executive chairman, said in the statement.
Friedland was referring to the company’s electrical pulse-powered geophysical surveying transmitter technology, which can detect metals buried as deep as 1.5 kilometres underground. This makes it an ideal tool for surveying many parts of Saudi Arabia, where the bedrock is hidden by a sand and gravel cover that can exceed 1 km in depth, the company said.
The partners will look for battery metals such as copper, nickel and lithium, but will also search for gold, silver and iron ore.
Ivanhoe Electric’s proprietary technology, created by I-Pulse Inc. of Toulouse, France, is already in use at the company’s Santa Cruz copper project in Arizona.
The company said it currently had three Typhoon units, one of which will be deployed to Saudi Arabia. Three more of the surveying equipment will be purchased by the JV, the partners said.
The first of these new generation Typhoon units is expected to be delivered in the first half of 2024.
Friedland made his fortune from the Voisey’s Bay nickel project in Canada in the 1990s. Since then, he has been involved in some of the biggest mineral discoveries in the world, including the giant Oyu Tolgoi copper mine in Mongolia and the Kamoa-Kakula copper mine in Democratic Republic of Congo.
Forbes estimates Friedland’s holdings are worth $2.7 billion as of May 2023.
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Mongolia shows Canadian foreign policy dominated by mining companies www.springmag.ca

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. Another Canadian official admitted that “the aid program is designed to help Canadian investment,” largely by influencing the state’s “legal and operating environment.”
‘We’re here because of the mining’
Canadian diplomatic relations with Mongolia were in fact established largely to serve mining interests. As an embassy official also told Brown, “we’re here because of the mining”.
Beginning in 2005 the Financial Post, the business section of the National Post, began to press Ottawa to increase diplomatic relations with Mongolia. “Ottawa should open a full-fledged embassy with a career diplomat in the capital city of Mongolia, Ulan Bator, immediately,” demanded prominent columnist Diane Francis. In her column Francis quoted Ivanhoe Mining’s chairman Robert Friedland. “The U.S. is here with an embassy,” said Friedland. “Why is Canada ignoring a country that wants close relations and the only truly democratic country in Asia that needs our help? Why is Canada kissing Fidel Castro’s ass in Cuba? It’s hypocrisy.”
Julian Dierkes, a professor at the Institute of Asian Research at UBC, added her voice to calls for greater Canadian diplomatic representation in the most sparsely populated country in the world. “Mongolia is one of the few countries where Canada is the 800 pound gorilla,” Dierkes told the Financial Post in April 2007. “It’s the biggest investor, and everyone looks to Canada for leadership… [but] there’s still no embassy or diplomatic representation, which is really terrible. And so the initial enthusiasm for Canadian involvement in mining has been tempered somewhat by the lack of government involvement in any of this.”
In April 2008 Agence France Presse reported, “Canada will establish a new trade mission in Ulaanbaatar, Mongolia, this year to help Canadian companies active in the region’s mining sector.” Three months later the trade mission was expanded to full embassy status. Canadian diplomatic representation in Mongolia was necessary because, according to the parliamentary secretary to the minister of finance Ted Menzies, “there have been some policy issues including taxation, control and investment regulations that have put Canadian companies in the region in an extremely challenging position.”
Canadian ‘aid’: lobbying for extraction
With some 20 Canadian mining companies active in the country, Canada was the second largest investor in Mongolia. Ottawa’s biggest concern was Vancouver-based Ivanhoe, which owned a copper and gold project in the Gobi desert. The multibillion-dollar project, noted the Financial Post, “was the major campaign issue” in Mongolia’s 2008 election. In April 2006 at least 3,000 people marched against foreign mining in Mongolia’s capital, with protesters burning an effigy of Ivanhoe’s Robert Friedland. The ire directed towards Friedland was partly because of comments he made in 2005. Friedland explained his Mongolian venture to an investor’s conference this way: “So we’re coming in from outer space and landing at Oyu Tolgoi … And the nice thing about this: there’s no people around; the land is flat, there’s no tropical jungle; there’s no NGOs. We’re only 70 kilometers from the Chinese border. It does not snow here. You’ve got lots of room for waste dumps.” The company also took heat for loaning $50 million to the government in exchange for tax concessions.
Canada actively lobbied the Mongolian government on behalf of Ivanhoe. A Globe and Mail Report on Business headline described a 2008 trip to Mongolia by trade minister David Emerson: “Emerson to push for Ivanhoe deal in Mongolia.”
In a bid to deter nationalistic resource policies and woo the country’s decision-makers, Ottawa has doled out tens of millions of dollars in aid to Mongolia. The multiyear “Enhancing Resource Management through Institutional Transformation in Mongolia” and “Strengthening Extractive Sector Management in Mongolia” recently concluded. Ottawa put up $27 million for these two initiatives, which underwrote projects between Canadian firms and local community groups.
As part of building support for the extractive sector, Ottawa has paid for Mongolian journalists to attend the Prospectors and Developers Association of Canada (PDAC) conference in Toronto and wooed Mongolian officials at PDAC. During the recent PDAC conference in March there was a Mongolia Day with Canadian officials meeting their Mongolian counterparts.
At the 2017 PDAC convention international trade minister Francois-Philippe Champagne announced the commencement of the Canada–Mongolia Foreign Investment Promotion and Protection Agreement (FIPA). He said, “this agreement provides substantial protections for Canadian investors in Mongolia, where there are already significant Canadian-owned mining assets.” The FIPA is designed to protect Canadian mining firms by giving companies the right to sue the Mongolian government — in a private, investor-friendly, international tribunal — for pursuing policies that interfere with their profit making.
Canadian government activity in Mongolia, proves all Ottawa really cares about in the Central Asian nation is mining companies profits.
BY: Yves Engler
Yves Engler is the author of 12 books. His "Stand on Guard For Whom? -- A People's History of the Canadian Military" is available August 26
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