“Through the project, existing and future SME exporters in Mongolia’s non-minerals sector will have broader and easier access to export credit insurance, learn practical knowhow, and receive financial support to improve their export quality and competitiveness,” said Minister of Finance Choijilsuren Battogtokh. “The agricultural Reinsurance Joint Stock Company, private insurance companies and other financial institutions will learn to provide export-oriented financial products and services to the Mongolian SMEs.”
In 2015, 87 percent of Mongolia’s exports consisted of mining commodities, while making up only 4 percent of the nation’s jobs. By contrast, agriculture employs nearly 30 percent of the total workforce, with livestock providing subsistence, income, and wealth for nearly half of Mongolia’s population.
The project is funded with a $20 million credit from the International Development Association, the World Bank’s fund for the poorest.

CEO Jean-Sebastien Jacques said in Beijing that China's plans to cut more overcapacity was a good opportunity for the company because steel plants would resort to utilizing high-quality assets and higher-quality raw materials.

Jacques, head of the world's second-biggest mining company, said the government would shut down smaller and more polluting blast furnaces while switching to using the newest, largest blast furnaces.

"It could be a very good piece of news, with lots of opportunities and the reason why is that in order for them to produce exactly the same output, they will have to buy higher quality raw materials," he said.

China sees massive overcapacity in its iron and steel sector and has vowed to continue with its overcapacity reduction this year, with a target of cutting 50 million metric tons of steel production.

While some commentators and analysts have portrayed the initiative as being a potential drag on iron demand in the world's second-biggest economy, Jacques said he was not concerned.

"I believe China's restructuring of its steel industry will help reduce pollution, but will not lead to a drastic reduction of steel output," he said.

China's economic growth target for this year has been set at around 6.5 percent, lower than the 2016 band of 6.5 percent to 7 percent. Jacques said, however, he was as confident as ever about the company's business in the country and on China's economy.

The CEO said that considering the size of China's economy, a 6.5 percent of economic growth target still meant a lot of demand for iron ore, steel and copper ore and "we believe we will be selling more of our products in the country".

Jacques said the mining group welcomes the Belt and Road Initiative, which would lead to infrastructure improvements and provide a boost for companies in related sectors.

"For mining companies like us, there will be demand for iron ore and copper, both of which might be the best investments for growth," he said.

Jacques said China has been the company's biggest customer and Rio Tinto generates 43 percent of its global revenue from the country, supplying lots of products including copper and iron ore for steel, bauxite for aluminum and diamonds.

According to the proposal listed on the Mount Kumgang region website, the country needs $20 million to buy the 30,000-ton Royale Star, a Soviet-era cruise ship capable of carrying 1,000 passengers.

The liner can operate a casino business, even though gambling remains strictly prohibited in the country. It is currently docked at Kosong Port near Mount Kumgang and travels to Southeast Asia and Vladivostok in Russia.

“We are trying to diversify international tourism at the world-renowned Mount Kumgang by using cruise ship services,” said the proposal, which noted that “a variety of facilities” will be available for passengers.

The suspended Mount Kumgang tourist resort was formerly run with South Korea. It was seen as a symbol of inter-Korean cooperation following decades of animosity.

In 2008 a South Korean tourist was shot by soldiers while walking on a beach, prompting an outcry from Seoul and the suspension of tourist programs.

Experts say the hermit kingdom’s push to attract overseas visitors, particularly from Southeast Asia, is likely to raise eyebrows. They cite recent tensions around North Korea, including its missile tests in the Sea of Japan and a diplomatic row with Malaysia after the murder of Kim Jong-un’s half-brother.

“I strongly doubt there will be foreign investors who are willing to invest money in North Korea given the current situation,” Lim Eul-chul, a professor at Kyungnam University, told the Financial Times.

“North Korea has been interested in attracting investors to the tourism sector since 2014 in order to cope with international sanctions… but they haven’t been very active given other developments,” he added.

The country is under stringent international sanctions, which were imposed after its first nuclear test in 2006. According to a UN report on North Korea, two out of five people are undernourished, while 70 percent of the population relies on food aid.