Events
Name | organizer | Where |
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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK | MBCCI | London UK Goodman LLC |
NEWS
Geopolitics and Strategy of China-Mongolia-Russia Economic Corridor (CMREC) www.specialeurasia.com
The China-Mongolia-Russia Economic Corridor (CMREC) initiative, set for deployment in the latter half of the 2020s, represents a trilateral ambition to fortify regional economic integration and elevate transnational trade efficiency across Eurasia.
Based on data from local and international sources, alongside prior SpecialEurasia’s analyses, this report examines the corridor’s projected frameworks, its operational developments, and its geopolitical significance. T
The corridor, prioritised by Moscow, Beijing, and Ulan Bator, includes concessions on tariffs, an emphasis on national currency transactions, and substantial infrastructure investments, especially in transit and railway systems, to enable more direct East-West logistics routes.
Russia and China are leveraging Mongolia’s geographic importance and resource wealth to construct an intricate network, which might decrease dependence on traditional Western trade routes and financial systems, ultimately fostering a strategic pivot for regional economic influence.
China-Mongolia-Russia Economic Corridor (CMREC):
Background Information
Historically, the China-Mongolia-Russia Economic Corridor (CMREC) concept emerged in the 2010s, aligned with China’s Belt and Road Initiative (BRI) and Russia’s pivot towards Asia.
Trilateral engagement among these three countries has intensified in recent months. Notably, in November 2024, the meeting of Mongolian Prime Minister Luvsannamsrain Oyun-Erdene and Chinese Prime Minister Li Qiang cemented Beijing and Ulan Bator’s commitment to the CMREC. This development follows the success of prior multilateral dialogues, including the Islamabad summit in October.
The proposed economic corridor aims to achieve substantial operational integration between the three nations, facilitating joint initiatives in the areas of transit, resource management, and financial exchange. By adopting a collaborative structure, the goal is to reduce dollar-based transactions, expand transportation networks, and solidify regional collaborations, considering increasing geopolitical tensions and growing supply chain needs.
Geopolitical Scenario
The CMREC initiative underscores Moscow and Beijing’s dual objectives to achieve economic independence from Western markets while maintaining strategic control over critical East-West transit corridors. This multifaceted project relies on three crucial strategic mechanisms: tariff and trade concessions, infrastructure expansion, and resource-sharing agreements.
This economic corridor is part of Russia’s wider shift towards Asia, which is further strengthened by its growing partnership with China. Moscow-Beijing’s bilateral trade reached an all-time high of USD 240.1 billion in 2023, marking a 26.3% increase year-on-year. Projections show sustained growth, while China continues to increase direct investments into Russia, surpassing USD 11.5 billion and involving 83 projects worth nearly USD 200 billion. Moscow seeks to elevate similar trends with Ulan Bator, forecasting a trade increase to USD 2.5 billion by 2024, and expanding its investment footprint, particularly in Mongolian transport and mining sectors. Russian policymakers view these moves as integral to sustaining economic resilience amid Western sanctions and disruptions to traditional trade routes.
China, by contrast, perceives Mongolia’s intermediary position as pivotal in diversifying its connectivity options. Mongolia’s mineral wealth, geographic location, and limited infrastructure present opportunities for Chinese firms, particularly in high-demand sectors like coal, copper, and iron.
In recent years, the People’s Republic of China has escalated its strategic engagement with Mongolia through projects under the Steppe Road and Sustainable Development Vision 2050 frameworks. Bilateral trade with Mongolia in 2022 reached USD 5.99 billion in coal and USD 2.73 billion in copper exports. Beijing is leveraging Mongolian geophysical attributes for infrastructural expansions, particularly within the Erenhot Economic Cooperation Zone (ECZ) on the Mongolia-China border, set for completion by 2035, with projected trade flows of nearly USD 10 billion annually.
Risk Assessment
Short-Term Risks. In the immediate term, the trilateral corridor faces potential challenges arising from infrastructure inadequacies, currency fluctuation risks, and regional political dynamics. Switching to a national currency for trade might overload exchange systems without proper financial infrastructure, making barter and reciprocal payments difficult and potentially delaying transactions.
Medium-Term Risks. China’s growing economic influence in Mongolia’s mining and transit sectors could make the country more vulnerable in the next three to five years, as its reliance on Chinese resources increases. This dependency could weaken Ulan Bator’s “third neighbour” policy, aimed at balanced relations with countries besides China and Russia, like the US, Japan, and Central Asia. Strategic leverage exerted by Beijing, particularly if exacerbated by RMCEC’s success, could lessen Mongolia’s bargaining power in economic and political negotiations.
Long-Term Risks. Ulan Bator may face increased political pressure to align more closely with BRI, risking falling into a “debt trap” with Beijing. Mongolia’s crucial location for transit routes between Russia and China traps Ulan Bator into the Chinese and Russian geopolitical struggle, limiting its foreign policy independence. Such dynamics may inadvertently intensify US-China tensions over Mongolia’s strategic positioning, raising the risk of international contestation within Mongolian territory.
Key Indicators and Warning Signs
Increased Chinese infrastructure investment and bilateral trade agreements that emphasise transit dominance.
Adjustments in Mongolian foreign policy towards greater reliance on Russia and China, weakening third-party ties.
Escalating commitments to BRI-affiliated projects, specifically if Mongolia leverages Chinese financing in critical infrastructure and energy projects without alternative funding routes.
Conclusion
The CMREC is more than a logistical project; it represents a complex trilateral initiative aimed at regional economic and strategic alignment. The corridor’s influence extends beyond transportation, shaping geopolitical interactions in Northeast and Southeast Asia by redirecting resources and trade from traditional Western routes. Continued intelligence monitoring is crucial to assess the changing risks and policy shifts that Mongolia might undertake in response to its neighbours’ pressures.
Contact us at info@specialeurasia.com to discuss our monitoring and consulting services for reports and analyses on Mongolia, China, and Russia’s relations. A call can be arranged upon request.
November 24, 2024
Qatar Chamber reviews cooperation in tourism with Mongolia www.qatarchamber.com
The Qatar Chamber (QC) recently hosted a Mongolian business delegation led by HE Sergelen Purev, the ambassador of Mongolia to the State of Kuwait, Non -resident ambassador to the State of Qatar. The meeting was attended by QC First Vice-Chairman HE Mohamed bin Twar Al Kuwari, along with many representatives from Qatari tourist companies.
During the meeting, both sides discussed ways to enhance cooperation relations between the two countries in the tourism fields, facilitate travel and tourism procedures between the two countries by launching direct airlines and facilitating procedures for obtaining tourist visas.
In his remarks, HE Mohamed bin Twar said that the Chamber is keen on enhancing cooperation with the Mongolian side in tourist and economic fields, noting that Mongolia has witnessed great development in tourist infrastructure, making it a leading tourism destination.
Twar stressed that Qatari business owners are interested to learn about the investment opportunities available in Mongolia in this sector, and incentives offered for foreign investors, affirming that the Chamber encourages Qatari investors to explore opportunities in Mongolia.
For his part, HE Sergelen Purev reviewed the development of Mongolian tourism sector in recent years, affirming that the delegation visit to Qatar aims to promote Mongolian tourism sector and urge Qatari to visit Mongolia.
Parliament debates president's veto of 2025 budget law www.ubpost.mn
In a historic move, the parliament has accepted the president’s veto of the 2025 Budget Law and related legislation. For the veto to be upheld, it required the support of two-thirds of the members present at the session, and it received just that. This marks the first time the parliament has accepted a full presidential veto of the national budget.
The president had previously vetoed the entire budget on six occasions, but none of those vetoes were approved by the legislature. Three partial vetoes issued by the president in the past were all rejected. With this unprecedented decision, it remains uncertain how the 2025 budget will be re-discussed and what impact this will have on the legislative process.
Members of the parliament raised concerns during the session about the next steps for the budget, given that a complete veto has never been accepted before. The head of the parliament’s secretariat, B.Baasandorj, clarified the procedure, stating, “There is a need to clarify the budget before re-discussing it. Therefore, a one-time legislative act should be adopted by resolution and then the budget should be revisited.”
As a result, the parliament will need to adopt a one-time legislative act before proceeding with the re-discussion of the 2025 budget, which is expected to take place next week. The fact that the president vetoed the 2025 budget law, along with accompanying legislation, triggered a lively discussion in the ongoing plenary session of the parliament.
During the session, a member of parliament O.Tsogtgerel raised concerns regarding the future of the 30 percent annual budget growth, which was introduced following amendments to the Fiscal Stability Law in August. He questioned whether the system would remain in place and how it could be adjusted, noting that the recent changes had opened the door to uncontrolled budget increases.
O.Tsogtgerel emphasized that had the usual constraints not been lifted, the budget expenditure could not have expanded by more than six to seven percent relative to the real GDP growth. He pointed out that the budget approved in September included a 30 percent increase, and questioned the justification for the president's veto, which he believed was a rightful stance.
Finance Minister pushes for achievement of macroeconomic goals
In response, Finance Minister B.Javkhlan explained that the amendments made to the Fiscal Stability Law in August were part of the government’s action plan through 2028. These changes aimed to implement the government's objectives promptly, ensuring that the plan could launch without delay. B.Javkhlan highlighted that the 2025 budget had been designed to continue the government's development goals, particularly in regional development, and included necessary adjustments for price increases and sector operational costs.
B.Javkhlan also noted that Mongolia's GDP had grown 4.5 times in the past four years, with the budget-to-GDP ratio remaining stable at 3:1. The increase of 3.5 trillion MNT in budget expenditures was attributed to this stability and the need to account for price hikes and operating costs.
Despite the president's veto, B.Javkhlan emphasized the government’s commitment to achieving its macroeconomic goals without delay, while also acknowledging the changing external situation. He stressed the importance of moving forward cautiously, without rushing the process, and reiterated the government's determination to reach its long-term objectives. The debate on whether to accept the veto continues, with lawmakers carefully considering the implications of the president’s decision.
During the session, G.Zandanshatar, the Head of the Presidential Office, warned that if the president's conditions are not met, another veto may be issued. The president's veto outlined several key requirements. First, the president called for the adoption of a budget without a deficit, urging the implementation of a countercyclical budget policy that considers fluctuations in the global market and commodity prices. The focus should be on strengthening foreign exchange reserves, increasing budget savings, and reducing national debt.
In addition, the president emphasized the need to strengthen budget discipline among citizens, wealth creators, taxpayers, and professional organizations. He also called for a reduction in budget expenditures, advocating for efficiency and economy in government operations. Furthermore, the president insisted on eliminating any duplication of duties within government agencies.
The president also highlighted the importance of political parties and coalitions fulfilling their election promises. Lastly, he called for the vetoed 2025 budget law and the associated legislation to be resolved in line with relevant laws. As discussions continue, lawmakers are considering the president's demands and the necessary legislative actions to address them.
According to the attendance report for the 2024 fall regular session, presented on November 22, 39 members of parliament were absent from the session that discussed whether to accept the president’s veto of the 2025 budget law. Notably, 13 members were absent due to various reasons. In addition, three members were on medical leave. 18 members were absent due to foreign or domestic assignments. Despite these absences, 87 members were present to participate in the ongoing discussions, which is a significant turnout for such a crucial session.
70% of Mongolian households reside in ger district www.gogo.mn
In Mongolia, 70% of households live in informal housing, such as ger districts and houses without access to proper engineering infrastructure, according to discussions at the first meeting of the National Wealth Fund and National Housing Committee. The remaining 30% reside in apartments with modern amenities.
L.Oyun-Erdene, Prime Minister of Mongolia, addressing the urgent housing issues, emphasized the need for decisive action to address the challenges faced by 273,736 households in Ulaanbaatar, 144,308 in province centers, and 295,775 in soum centers, many of whom lack adequate housing conditions.
To tackle these problems, the government outlined several measures to be implemented by January 15, 2025, within the framework of the National Housing Policy supported by the National Wealth Fund's Savings Fund. These initiatives include:
Drafting and submitting legal frameworks for the National Housing Law and Housing Policy to the Parliament.
Developing a comprehensive housing strategy to support young families and increase access to affordable housing. Reforming the mortgage financing system and expanding funding resources to improve accessibility for citizens.
Establishing standards for affordable and environmentally friendly housing, and introducing mortgage options tailored for such developments.
Increasing energy and heating supply capacity while extending infrastructure lines to facilitate the implementation of the National Housing Plan.
Designing and implementing plans for the redevelopment of Ulaanbaatar’s ger districts, land acquisition, and infrastructure construction in provinces and soum centers, utilizing both state and local budget allocations.
Direct flights between Ulaanbaatar and Ho Chi Minh City will begin in December. www.gogo.mn
The 19th meeting of the Mongolia-Vietnam Intergovernmental Commission on Trade, Economic, Scientific, and Technical Cooperation was held in Hanoi, the capital of the Socialist Republic of Vietnam.
The meeting was co-chaired by J. Enkhbayar, Minister of Food, Agriculture, and Light Industry of Mongolia and head of the Mongolian delegation, and Le Minh Hoan, Minister of Agriculture and Rural Development of Vietnam and head of the Vietnamese delegation.
During the meeting, it was highlighted that the visa exemption agreement signed in 2023 has created favorable conditions for increasing mutual travel between citizens of the two countries.
In this regard, the launch of regular direct flights between Ulaanbaatar and Ho Chi Minh City starting this December was emphasized as a significant step in promoting people-to-people exchange and enhancing business and enterprise cooperation between the two nations.
Translated by ChatGPT
Mohammad Faisal Al-Mutairi: The Future of Mongolia Will Be Bright and Prosperous Thanks to Its People and the Vision of Its Leaders www.montsame.mn
Ambassador Extraordinary and Plenipotentiary of the State of Kuwait to Mongolia Mohammad Faisal Al-Mutairi shared his impressions and experiences of working in Mongolia. The Ambassador mentioned that his term of assignment in Mongolia is coming to an end, and expressed confidence that the foundation of relations and cooperation between the two countries, established over the past six years, will continue to strengthen and develop.
I was appointed as my country's ambassador to work in the friendly country of Mongolia in October 2018. I worked in this country for 6 years, and I really enjoy the beautiful nature of Mongolia, its ancient historical heritage, and culture, and the warmth and hospitality of the Mongolian people. At first, I faced some difficulties adapting to the harsh Siberian winter in Mongolia, known for its extreme cold. I believe that Mongolia, with its beautiful vast land and animal and natural resources, will greatly boost its development. I am confident that the future of Mongolia will be bright and prosperous thanks to its people and the vision of its leaders...
During 6 years, I took upon myself, in coordination with my colleagues in the Ministry of Foreign Affairs of the State of Kuwait, the task of developing bilateral relations between the State of Kuwait and Mongolia and giving them a boost of progress and development in all fields, especially in the political, economic, health and commercial fields, despite some challenges... Shortly after assuming my duties, a visit was organized for the Mongolian Foreign Minister to the State of Kuwait in December 2018. After that visit, I suggested to the esteemed Ministry to hold a political consultation meeting as an organized and extended dialogue mechanism between the Kuwaiti and Mongolian sides. Indeed, the first round of political consultations was held between the Foreign ministries of the two countries in the city of Ulaanbaatar in 2019. After that, the Secretary of State at the Mongolian Ministry of Foreign Affairs visited the State of Kuwait in 2020. In the same year, 2020, the second round of political consultations was held in Kuwait City. The aforementioned visits and meetings addressed bilateral relations and ways to enhance them in all fields, especially in the economic, commercial and tourism fields, and in particular touched on the possibility of exporting meat from Mongolia to the State of Kuwait, which is part of ensuring food security for the State of Kuwait, which I always strive for, given the huge livestock wealth that Mongolia is famous for.
At the beginning of 2020, the world faced a challenge represented by the Corona pandemic, and Mongolia, like other countries, went into a state of high alert, which led to the postponement of periodic meetings of cooperation mechanisms between the two countries, and we stopped organizing the National Day reception for more than two years due to the pandemic and the resulting quarantines. However, our bilateral relations, even during the pandemic, and with perseverance and determination, did not stop, as the State of Kuwait is considered one of the donor countries in the (COVAX Initiative), which aimed to provide an opportunity for access to a vaccine against Corona for all countries with modest health capabilities, from which friendly Mongolia received reasonable quantities of the vaccine, as part of efforts to enhance global health security and prevent epidemic disasters.
After recovering from the pandemic and quarantine, things returned to normal as we, along with our Mongolian friends and colleagues, carried out various activities and events such as the “Welcome to Mongolia” event in the State of Kuwait, which was organized in March 2023 by the Ministry of Foreign Affairs, the Ministry of Culture, the Ministry of Environment and Tourism of Mongolia in cooperation with the National Council for Culture, Arts and Letters in Kuwait to introduce Mongolia, its people and culture. In March of last year, the Kuwait-Mongolia Economic Forum was held in Kuwait City and was organized between the Mongolian Chamber of Commerce and Industry in Mongolia and the Chamber of Commerce and Industry of the State of Kuwait in the presence of the Foreign Policy Advisor to the President of Mongolia, the Chairman of the Mongolian Chamber of Commerce and Industry, the Vice Chairman of the Kuwait Chamber of Commerce and Industry, about 30 Mongolian companies and the same number of Kuwaiti companies. A memorandum of understanding was signed between the Chambers of Commerce and Industry in Mongolia and the State of Kuwait in order to provide support for establishing relations between companies in the two countries, exchanging information, organizing exhibitions and conferences, and conducting market studies.
On the development and health front, I would like to point out the importance of the inauguration of the Burn Center, which was completed with a generous Amiri grant of 8 million dollars and under the supervision of the Kuwait Fund for Arab Economic Development, at the end of May last year 2023, in the presence of His Excellency the Mongolian Prime Minister, the Minister of Health, and the official delegation from the Kuwait Fund. We are now happy that the Burn Center is providing its services at full capacity to Mongolian citizens...
At the end of last year 2023, we were able to hold the third meeting of political consultations between the foreign ministries of the two countries in December 2023, during which a wide range of topics were discussed, including ways to enhance bilateral relations in the economic, commercial and investment sectors, and activating the competent authorities in the two countries to prepare agreements and memoranda of understanding for signing during high-level visits between the two countries in the future...
In terms of bilateral agreements, the embassy prepared a visit by a delegation from the Mongolian Ministry of Roads and Transport Development and the Mongolian General Aviation Authority to the State of Kuwait in February of last year 2023, and they met with the Deputy General Authority of Civil Aviation of Kuwait. The two sides agreed to sign an Agreement on Air Relations between the two countries in the near future.
As I mentioned above regarding securing food security for the State of Kuwait, there were joint efforts with the Mongolian side to export meat from Mongolia to the State of Kuwait, and the Public Authority for Food and Nutrition in the State of Kuwait lifted its ban on importing all types of meat from Mongolia in December 2023. The Gulf Accreditation Center in Gulf Cooperation Council also decided in December 2023 to accredit Mongolia concerning agency to issue a halal certificate within it, for a period of 5 years (2023-2027). These efforts open up prospects for trade cooperation between Mongolia and the Gulf Cooperation Council countries, especially with the State of Kuwait. We recently witnessed the first shipment of Mongolian meat to the State of Kuwait, and it is currently being sold in Kuwaiti markets....
Recently, on October 7, 2024, His Excellency the President of Mongolia, Khurelsukh Ukhnaa, awarded the State of Kuwait, represented by the Kuwait Fund for Arab Economic Development (KFAED), with the Friendship Medal considering the contributions made by the State of Kuwait in the socioeconomic development of Mongolia. The award of this presidential medal indicates the level of strength of cooperation between the two friendly countries. The honor also came in appreciation of the contributions, loans, and aid from the Kuwait Fund for Arab Economic Development as a result of the embassy’s tireless efforts and endeavors to strengthen cooperation ties and develop bilateral relations between the State of Kuwait and Mongolia over the past years and in all fields...
Soon, the State of Kuwait and Mongolia will celebrate the 50th anniversary of the establishment of diplomatic relations between them in June of next year, which is considered one of the important occasions for the two friendly countries. In this regard, I would like to emphasize the importance of commemorating this anniversary, which reflects the depth of the long-standing relations between the two friendly countries and cooperation in all fields, especially since the State of Kuwait is the first Arab and Gulf country to open a resident embassy in Mongolia, which makes this relationship of prominent, distinctive and unique importance....
Finally, after years of joint cooperation, I would like to express my deep gratitude to Mongolia for the support and hospitality I have received during my mission years, and I look forward at the same time to continue developing the high-level relationship between the State of Kuwait and the friendly country of Mongolia, and I hope that what has been achieved in the past years will be a solid foundation for launching towards developing and strengthening relations in the future between the two friendly countries...
I cannot miss on this occasion but to extend my sincere thanks and great gratitude to all those who contributed to accomplishing the mission and achieving the required goals, even if the ambition was greater than that, and to everyone who created a positive impression at that stage, which certainly does not mean the end, but rather the beginning of a new step towards another stage that can strengthen the foundation that was built during the past six years…
Ulaanbaatar - Mongolia
November 2024
This Week in Mongolia www.montsame.mn
Summary of events for the week of November 25-December 1, 2024.
Events in Ulaanbaatar:
November 25: Party groups of the State Great Khural of Mongolia will convene.
November 25: The 40th-anniversary concert of the “Awoken Steppe” and “My dear Father and Mother” songs by Sharav Byambasuren will be performed at the Central Culture Palace of Mongolia.
November 25: The “Musical Melody” concert dedicated to Batchuluun Tsend, a People’s Actor and founder of the Morin Khuur Ensemble, will be played at the Mongolian Philharmonic Hall.
November 26: Organized annually by the Union of Mongolian Writers, the 42nd “Bolor Tsom” poetry festival will be held to select the best poems of the year.
November 26: The centennial of the Proclamation of the Mongolian People’s Republic and the Adoption of the First Constitution will be celebrated.
November 26-27: Standing Committees of the State Great Khural of Mongolia will convene.
November 27: Regular session of the Cabinet of Mongolia will be held.
November 27: The “Collection of Lepidoptera” album and lecture will be held at the Museum of Natural History of Mongolia.
November 27-29: The “Financial Sustainability Forum of Mongolia-2024” will be held under the auspices of President of Mongolia Khurelsukh Ukhnaa.
November 28-29: The Joint Forum of the State Great Khural will convene.
November 30: The Mongolian Tourism Association and the “First Aid Community” will organize training to issue certificates.
Cultural Creativity Month is underway.
Local Events:
November 26: The “Citizen’s Oath Ceremony” with the participation of 16 elderly representatives will be held in Bayankhongor soum of Bayankhongor aimag.
November 26: As part of Cultural Creativity Month, a Biyelgee traditional dance training of 5 Western aimags of Mongolia will be held at Uliastai soum of Zavkhan aimag.
More Mongolians than ever studying in the U.S. www.mn.usembassy.gov
The United States is pleased to announce that the number of Mongolian students studying in the U.S. increased by 12.3% over the past year. This increase, which comes from data published in the latest “Open Doors” report, reflects the U.S.’s commitment to strengthening educational partnerships with Mongolia and providing opportunities for Mongolian students to study, research, and work in the United States.
The report also showed a record-breaking number of international students enrolled in U.S. higher education institutions for the 2023-2024 academic year. During that time period, the U.S. welcomed over 1.12 million international students from more than 210 countries and places of origin.
The U.S. continues to be a top destination for students from around the world, with a diverse range of academic programs and cultural experiences. According to the Department of Commerce, in 2023 international students contributed over $50 billion to the U.S. economy in 2023 and more than 368,000 jobs.
Mongolian students interested in studying in the United States can find free resources, advising services, training programs, information, and more by contacting EducationUSA Mongolia.
About EducationUSA Mongolia
EducationUSA promotes U.S. higher education by offering accurate, comprehensive, objective and timely and unbiased information about educational opportunities in the United States.
EducationUSA Mongolia is a member of EducationUSA, a network of more than 450 advising centers supported by the Bureau of Educational and Cultural Affairs at the U.S. Department of State. EducationUSA actively works in collaboration with the U.S. Embassy in Mongolia.
About Open Doors
This year we celebrate 75 years of the Open Doors report. The Open Doors report has conducted a census of international students for decades, becoming the trusted source on international mobility trends and informing strategies and policies of thousands of U.S. colleges and universities, foreign governments, and non-governmental organizations.
The Parliament Finalizes and Adopts Amendments to the Nuclear Energy Law www.gogo.mn
Parliament: The law now allows for replacing the state's ownership share with a special royalty system.
The Parliament of Mongolia has officially approved the proposed amendments to the Nuclear Energy Law and related legislation.
The law now includes provisions to replace the state's mandatory 34% ownership with a Special Royalty on Mineral Resource Utilization (SRMRU) and to convert ordinary shares into preferred shares. Specifically, the SRMRU will consist of base, special, and incremental royalties. The base royalty will be set at 5% of the sales value, while the special royalty, adjusted for deposit characteristics, will also be 5%. Incremental royalties will range from 0% to 9% based on market prices.
By converting ordinary shares into 10% preferred shares, Mongolia avoids financial liabilities while securing priority in dividend payouts. Additionally, investment agreements may now be extended for up to 20 years. A provision has also been introduced to place funds for post-mine closure rehabilitation and restoration in a special foreign currency account at the Bank of Mongolia, ensuring they are used exclusively for their intended purpose.
However, some lawmakers criticized the law for lacking detailed regulations regarding environmental protection, water use, and waste management, emphasizing the need to address these issues during contract negotiations.
Following the adoption of the law, the next steps will involve discussions on investment agreements. According to the Chief of the Cabinet Secretariat, the Parliament will review these agreements. The Minister of the relevant sector announced plans to finalize an agreement with Orano Mining by January 2025.
Translated by ChatGPT
Worsening air pollution in Mongolian capital sparks public alarm www.socialnews.xyz
Deteriorating air quality mostly driven by processed fuel-based heating has sparked growing public concerns in Ulan Bator, the capital of Mongolia, as residents embrace unusually harsh winter conditions.
The city's Air Quality Index showed that as of 10 A.M. local time on Thursday, PM2.5 levels in the city's Ger districts exceeded 500 micrograms per cubic meter, while central areas recorded levels of 200 micrograms per cubic meter, both significantly surpassing the World Health Organisation's recommended safety limits, Xinhua news agency reported.
PM2.5 particles, which measure 2.5 microns or below in diameter, pose serious health risks as they can penetrate deep into the respiratory system, reaching lungs and entering the bloodstream, medical experts warn.
Air pollution has been a persistent issue in Ulan Bator, home to nearly half of Mongolia's population of 3.5 million. Over half of the capital's population reside in Ger districts with a lack of basic infrastructure such as running water, central heating, and sewage systems.
To stay warm and cook during winters, residents rely on processed fuels and other flammable materials, contributing significantly to the city's air pollution.
Since the early 2000s, the Mongolian government, in collaboration with international organisations, has implemented various measures to combat air pollution, including replacing raw coal with improved fuels. However, the efforts have yet to yield significant improvements in Ulan Bator's air quality.
Mongolia's climate is characterised by a strong continental influence, featuring long, frigid winters and short, warm summers. Ulan Bator often faces temperatures as low as minus 25 degrees Celsius during winters.
Source: IANS
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