Mongolia will host the 17th Conference of the Parties (COP17) of the United Nations Convention to Combat Desertification (UNCCD) in 2026, the country’s Ministry of Environment and Tourism on Monday announced on Monday.

The Convention entered into force in 1996, becoming the first, and so far only legally binding international framework to address desertification, a priority in the fight against climate change.

The Conference of the Parties (COP) is the UNCCD’s supreme decision-making body; in addition to overseeing the implementation of the Convention, it is also a platform for information exchange and sharing.

Hosting COP17 will provide Mongolia with an opportunity to raise awareness in the international community about the relationship between desertification and the supply of raw materials necessary for the energy transition.

Desertification is already one of Mongolia’s biggest challenges. Since 2021 it has also been one of the priorities of the Mongolian government under Prime Minister Luvsannamsrain Oyun-Erdene.

According to the Atlas of Desertification published by the National Agency of Meteorology and Environment, more than 76 per cent of the country’s territory has been affected by desertification.

The level of land degradation varies according to the area, but the Atlas shows that more than 20 per cent of the territory is either strongly or very strongly affected by the problem.

This degradation threatens about 90 per cent of Mongolia’s agricultural land, dedicate to farming and pastoral activities, which are important economically and culturally.

Many factors are behind this development, such as the natural expansion of the Gobi Desert, as well as human activities like farming and mining.

The latter is particularly relevant today since the country is rich in coal, copper, gold, as well as rare minerals, which are key to the energy transition.

Mining continues to be Mongolia's main industry, representing about 22 per cent of its GDP in 2021 and more than 80 per cent of exports, this according World Bank data.

In 2020, the government announced Vision 2050, a long-term development plan centred on economic diversification; however, the growing demand for copper and rare minerals is set to slow it down.

Prime Minister Oyun-Erdene wants Mongolia to play a key role in providing the raw materials needed for the energy transition.

Tourism, which accounted for more than 7 per cent of the country's GDP in 2019, was hard hit by the COVID-19 pandemic, not to mention the war in Ukraine which led to sanctions on Russian flight routes.

The mining sector’s growing importance combined with desertification will require considerable efforts to mitigate land degradation.

One of the measures adopted by the government is a massive forestation project to plant “One Billion Trees” in non-forested areas for at least 50 years. As part of this, Prime Minister Oyun-Erdene announced plans to plant more than 40 million trees this year.

Yet, without a commitment to greater sustainability in the mining sector, the fight against desertification is unlikely to be effective.

More than 290,000 livestock have been killed in the Mongolian provinces of Sukhbaatar and Khentii due to the recent dust and snow storms, local media reported on Thursday.

The overall number of fatalities is however, expected to increase since many livestock still remain still unaccounted for, Xinhua news agency quoted authorities as saying.

Heavy blizzards and intense dust storms swept through Sukhbaatar and Khentii provinces late last week, causing severe damage.

A total of 127 people, primarily nomadic herders, went missing in the provinces due to the storms.

Among them, 125 were found alive, while two were killed.

Mongolia has a harsh continental climate as strong winds, dust and snow storms are common.

Within the framework of the "Years to Visit Mongolia," Minister of Environment and Tourism B. Bat-Erdene received Ambassador Extraordinary and Plenipotentiary of the Russian Federation to Mongolia Yevsikov A.N. and exchanged views on increasing the number of direct flights between Mongolia and Russia.

At the meeting, cooperation possibilities to intensify the work of attracting tourists from the central part of Russia, besides the border regions were underlined.

In addition, the parties agreed to continue cooperation in implementing the "Billion Trees" national movement initiated by the President of Mongolia and to work actively on expanding cooperation in the areas of biodiversity protection and combating desertification.

Mongolian film director Zoljargal Purevdash’s “If Only I Could Hibernate” made history this week at the Cannes Film Festival by becoming the first Mongolian film shown in the Cannes’ official selection. It became one of several dozen chosen out of around 2,000 films submitted to the festival and will now be eligible for several award competitions. The film entered into the “Un Certain Regard” section of the festival, which features original and diverse stories from around the world.

“If Only I Could Hibernate” tells the story of a 15-year-old Mongolian boy Ulzii, who lives in the ger (yurt) district in Mongolia’s capital Ulaanbaatar. Ulzii excels in physics, and his teacher encourages him to enter a national physics competition so he can win a scholarship to attend one of the best schools in the country. The family struggles financially after his father passes away and his alcohol-addicted mother cannot find a job.

Ulzii’s academic plans change when his mother moves to the countryside in search of work and leaves him and his two younger siblings to fend for themselves. His hopes of a better future are undermined by the risky logging job he takes to provide his family with food and fuel to survive the harsh winter. The film’s name comes from a quote by his siblings, who say they wish they could hibernate through the winter like bears and not worry about keeping themselves warm.

The film reflects Purevdash’s personal experiences. Her mom operated a shop in the ger district. She recounts seeing “many different kinds of people [living in the ger district] — some were nomads, some living in difficult situations, some parents buying alcohol for themselves, but no food for their kids, just a few cheap candies.” When discussing her motivation for the film, she adds, “I always wanted to create something for those innocent little children, to tell them a story that would make them happy, or to give them hope.”

Besides giving hope and inspiring the underprivileged youth, the film tackles one of Ulaanbaatar’s biggest issues — air pollution. Since the ger districts are not connected to the city’s heating system, its residents resort to burning coal to keep themselves warm during long and harsh winters, when the temperature can drop to -30 degrees Celsius. About 60 percent of Ulaanbaatar’s 1.5 million population lives in ger districts, and they are often blamed for the city's significant air pollution. Purevdash’s goal is to build connection and understanding among different groups and show that nobody in the ger district is burning coal to intentionally harm others. “I wanted my fellow citizens to understand, feel and embrace the struggles and the joys of one another,” she explains.

The film’s success is poised to kickstart a new era in Mongolia's filmmaking industry. And the government is ready to contribute. In 2022, it established the Mongolian National Film Council and Mongolian Film Fund, which allow filmmakers to receive up to 45 percent of the filming costs for projects produced in Mongolia with minimum spending of USD 500,000. “If Only I Could Hibernate” was Purevdash’s first film. With the new support system being erected around the local film industry, she plans to make more films in the future. With an impressive first-time debut like this, everyone will be watching for her next film.

The gross domestic product (GDP) of Mongolia increased by 7.9% year on year in the first quarter of 2023, the National Bureau of Statistics said.

This occurred mainly due to a significant increase in exports of mining products.

The Mongolian economy grew by 4.8% in 2022 and by 1.4% in 2021.

International banks and financial institutions are optimistic about Mongolia's economic prospects. The Asian Development Bank forecasts its GDP to grow by 5.4% in 2023 and 6.1% in 2024, driven by exports, a recovery in mining, and a positive impact on transport and other activities.

Bank savings in Mongolia have exhibited a positive trend, reflecting the financial stability of the nation’s economy.

Steady Growth in National Currency Savings

According to the National Statistical Committee’s latest report, bank savings in the national currency of Mongolia amounted to 13.5 trillion tugriks at the end of April. This represents an increase of 424.8 billion tugriks (3.2%) compared to the previous month. Although there was a decrease of 206.1 billion tugriks (1.5%) compared to the same period last year, the overall trajectory showcases steady growth in national currency savings. This upward trend reflects the confidence of individuals and businesses in the stability of Mongolia’s financial system.

Citizens Hold Majority Share in Bank Savings

Out of the total bank savings, 12 trillion tugriks (88.9%) are owned by citizens, demonstrating the significant contribution of the general population towards the country’s savings pool. This indicates the financial prudence and long-term planning exhibited by Mongolian citizens, as they prioritize building personal savings for future financial security.

Foreign Currency Reserves Maintain Stability

In terms of foreign currency savings, the National Statistical Committee reported a total of 5.3 trillion tugriks. While this represents a slight decline of 616.5 billion tugriks (10.4%) compared to the previous month, foreign currency reserves remain robust. Moreover, when compared to the same period last year, there has been a notable increase of 976.5 billion tugriks (22.4%), signaling the resilience and stability of Mongolia’s foreign currency reserves.

BY

Mamoon Alvi serves as an integral part of our global newsroom team. With a strong background in international news from his time at both BOL TV and Dharti TV, he came on board at BNN well-prepared to contribute. Mamoon's unwavering dedication to journalism drives him to relentlessly pursue the truth and deliver crucial stories to audiences around the world.

During its regular session on May 24, 2023, the Cabinet made the following decisions:

During the Cabinet Session, Prime Minister L. Oyun-Erdene mandated that all information about the Government's Special funds be made open to the public.

Construction of the “Emeelt Light Industry Park” Commenced

Minister of Construction and Urban Development Ts. Davaasuren, Minister of Food, Agriculture and Light Industry Kh. Bolorchuluun, and Governor of the capital city, and the Mayor of Ulaanbaatar D. Sumiyabazar were tasked to take the required measures to get the feasibility studies and partial planning approved and start laying down the basic infrastructure within Q4 2023.

Preparatory works, including research, working drawings, partial planning of the park, and other infrastructure works, such as dam, engineering utilities, power supply, drinking water supply, and temporary power supply for a construction site, have already been completed.

Leather factories are planned to be relocated to the park, which will allow for re-planning and rehabilitation of the area where they are currently operating.

The park is planned with a processing capacity of 4.6 million skins and hides, of which four million sheep and goat skins, 400 thousand cowhides, 200 thousand horsehides, and 15 thousand camel hides. Moreover, it is capable of processing 3.6 thousand tons of wool and 1.2 thousand tons of cashmere.

Starting from July 1, MIAT to Conduct Scheduled Flights to 9 Domestic Destinations

In connection with the Government’s declaration of 2023-2025 “Years to Visit Mongolia”, MIAT Mongolian Airlines will start conducting scheduled flights to 9 domestic destinations in line with the Government’s goal to support tourism, revive domestic flights and reduce ticket prices. The scheduled flights will be conducted to Choibalsan, Dalanzadgad, Murun, Uliastai, Bayankhongor, Altai, Khovd, Ulaangom, and Ulgii, with 40-68 percent reduced prices.

This decision has been made to enhance the availability of domestic flights for local citizens, supporting the development of the tourism sector, and increasing the flow of tourists. It will allow not only local citizens but also tourists to travel comfortably, the Minister of Road and Transport Development highlighted in his presentation.

Development Projects set in the “New Revival Policy” to be Accelerated

The implementation process of the development projects set in the “New Revival Policy” was presented at the Session. Ministry of Economy and Development has taken numerous measures to ensure the smooth implementation and intensify the process of those projects.

Of the 20 development projects launched, 16 are in an active phase of execution and 10 are expected to be completed in 2023.

Brief News:

A consultation meeting on the implementation process and milestones of the “Vision-2050” long-term development policy of Mongolia will be held on June 9.

Variable cost per student of the Vocational training institutes and its methodologies were approved.

Guidelines for the Mongolian delegation to participate in the Second Mongolia-Tailand Intergovernmental Consultation Meeting on Cooperation, which will be held in Bangkok, Thailand on June 2, were discussed and approved.

A consular section will be established in the Embassy of Mongolia in the French Republic.

The list of explosives, tools for blasting, and their raw materials, which are permitted in the territory of Mongolia, was renewed and approved.

Artificial intelligence has emerged as enough of a concern that it made it onto what was already a packed agenda at the G7 summit at the weekend.

Concerns about AI's harmful impact coincide with the US' attempts to restrict China's access to crucial technology.

For now, the US seems to be ahead in the AI race. And there is already the possibility that current restrictions on semiconductor exports to China could hamper Beijing's technological progress.

But China could catch up, according to analysts, as AI solutions take years to be perfected. Chinese internet companies "are arguably more advanced than US internet companies, depending on how you're measuring advancement," Kendra Schaefer, head of tech policy research at Trivium China tells the BBC.

However, she says China's "ability to manufacture high-end equipment and components is an estimated 10 to 15 years behind global leaders."

The Silicon Valley factor

The US' biggest advantage is Silicon Valley, arguably the world's supreme entrepreneurial hotspot. It is the birthplace of technology giants such as Google, Apple and Intel that have helped shape modern life.

Innovators in the country have been helped by its unique research culture, says Pascale Fung, director of the Center for Artificial Intelligence Research at the Hong Kong University of Science and Technology.

Researchers often spend years working to improve a technology without a product in mind, Ms Fung says.

OpenAI, for example, operated as a non-profit company for years as it researched the Transformers machine learning model, which eventually powered ChatGPT.

"This environment never existed in most Chinese companies. They would build deep learning systems or large language models only after they saw the popularity," she adds. "This is a fundamental challenge to Chinese AI."

US investors have also been supportive of the country's research push. In 2019, Microsoft said it would put $1bn (£810,000) in to OpenAI.

"AI is one of the most transformative technologies of our time and has the potential to help solve many of our world's most pressing challenges," Microsoft chief executive Satya Nadella said.

China's edge

China, meanwhile, benefits from a larger consumer base. It is the world's second-most populous country, home to roughly 1.4 billion people.

It also has a thriving internet sector, says Edith Yeung, a partner at the Race Capital investment firm.

Nearly everyone in the country uses the super app WeChat, for example. It is used for almost everything from sending text messages, to booking doctor's appointments and filing taxes.

As a result, there's a wealth of information that can be used to improve products. "The AI model is going to be only as good as the data that is available for it to learn from," Ms Yeung says.

"For good or bad, China has a lot less rules around privacy, and a lot more data [compared to the US]. There's CCTV facial recognition everywhere, for example," she adds. "Imagine how useful that would be for AI-generated images."

While China's tech community may appear to be lagging behind the US, its developers have an edge, according to Lee Kai-Fu, who makes the argument in his book AI Superpowers: China, Silicon Valley, and the New World Order.

"They live in a world where speed is essential, copying is an accepted practice, and competitors will stop at nothing to win a new market," wrote Mr Lee, a prominent figure in Beijing's internet sector and the former head of Google China.

"This rough-and-tumble environment makes a strong contrast to Silicon Valley, where copying is stigmatised and many companies are allowed to coast on the basis of one original idea or lucky break."

China's copycat era has its problems, including serious issues around intellectual property. Mr Lee writes that it has led to a generation of hardy and nimble entrepreneurs ready to compete.

Since the 1980s, China has been expanding its economy, which used to be based mainly on manufacturing, to one that is technology-based, Ms Fung says.

"In the last decade, we have seen more innovation from Chinese consumer-driven internet companies and high-end Chinese designs," she adds.

Can China catch up?

While Chinese tech companies certainly have unique advantages, the full impact of Beijing's authoritarianism is still unclear.

There are questions, for instance, about whether censorship would affect development of Chinese AI chatbots. Will they be able to answer sensitive questions about President Xi Jinping?

"I don't think anyone in China will ask controversial questions on Baidu or Ernie in the first place. They know it's censored," Ms Yeung says. "Sensitive topics are a very small part of the usage [of chatbots]. They just get more media attention," Ms Fung adds.

The bigger concern is that US attempts to restrict China's access to specialised tech can stymie the latter's AI industry.

High-performing computer chips, or semiconductors, are now the source of much tension between Washington and Beijing. They are used in everyday products including laptops and smartphones, and could have military applications. They are also crucial to the hardware required for AI learning.

US companies like Nvidia currently have the lead in developing AI chips and "few [Chinese] companies can compete against ChatGPT" given export restrictions, Ms Fung says.

While this will hit China's high-tech industries like cutting edge AI, it won't affect the the production of consumer technology, such as mobiles and laptops. This is because "the export controls are designed to prevent China from developing advanced AI for military purposes," Ms Schaefer says.

To overcome this, China needs its own Silicon Valley - a research culture that attracts talent from diverse backgrounds, Ms Fung says.

"So far it has relied on both domestic talent and those from overseas with Chinese heritage. There is a limit to homogeneous cultural thinking," she adds.

Beijing has been trying to close the gap through its "Big Fund", which offers massive incentives to chip companies.

But it has also tightened its grip on the sector. In March, Zhao Weiguo became the latest technology tycoon to be accused of corruption by authorities.

Beijing's focus on certain industries can bring financial incentives and loosen red tape, but it may also mean greater scrutiny, and more fear and uncertainty.

"Zhao's arrest is a message for other state-owned firms: don't mess around with state money, particularly in the chip space," Ms Schaefer says. "Now it's time to get on with the job."

How that message will affect the future of China's AI industry remains to be seen.

The US Geological Survey (USGS) has told congressmen and senators that copper has not reached the status of critical minerals needed to be added to the official list of commodities at risk of undersupply, the Copper Development Association (CDA) said.

The USGS decision comes despite some high-ranking political allies throwing their support behind the local copper sector.

The copper marketing body says the metal’s supply risk score is now above the threshold for automatic inclusion on the 2022 Critical Minerals list. It adds the USGG quoted misleading arguments that were not part of its own official 2022 methodology, to justify its decision.

“Unlike in Europe, where copper was recently added to its proposed Critical Raw Material and Strategic Raw Material lists based on forecasting future supply and demand projections, USGS addresses supply risk with a rearward looking analysis,” the CDA said.

It noted the USGS did not address current and forward-looking policy demands that can leave domestic supply chains short of copper.

“Continued supply trends and solid data confirm that the supply risk for copper is not a short-term issue that will self-correct without determined, immediate, and strategic action,” CDA’s president and CEO Andrew G. Kireta said in the statement.

The USGS’s last official evaluation for the 2022 Critical Minerals List is based on copper trade data that represents supply risk from 2014 to 2018, five to nine years out-of-date, and too old to be meaningful, Kireta noted.

Early this year, Senator Kyrsten Sinema, an Independent from Arizona, sent a letter urging Interior Secretary Deb Haaland to “revisit and reconsider the designation of copper as a critical mineral.”

Supporters included other senators whose home states are hubs of copper production and manufacturing, including Mark Kelly of Arizona, Joe Manchin of West Virginia, Indiana’s Mike Braun, Raphael Warnock of Georgia and Mitt Romney of Utah.

“This should be a no-brainer,” Sinema said in an interview with Bloomberg in February. “We have major gaps in both our ability to mine and process these minerals to ensure our energy security for the future, and the administration knows how important copper is to our domestic and national security.”

CDA members include some of the biggest copper miners, including Rio Tinto, BHP, and Freeport-McMoRan, as well as manufacturers such as Mueller Industries Inc.

The US critical minerals list is updated every three years and includes key battery metals needed for electric vehicle production such as nickel, lithium and zinc.

Eight Escondida mines needed

Based on studies conducted by the world’s largest copper miner, Chile’s Codelco, the world’s energy transition to stop climate change will take demand for the metal from 25 million tonnes per year now to just over 31 million tonnes in 2032.

List updated May 2023.

This means the world would need to build eight projects the size of BHP’s Escondida in Chile, the world’s largest copper mine, over the next eight years.

In terms of investment, experts estimate the industry needs more than $100 billion to build mines able to close what could be an annual supply deficit of 4.7 million tonnes expected by 2030.

The 32nd Annual Meeting and Business Forum of the European Bank for Reconstruction and Development (EBRD) was held in Samarkand, Uzbekistan on May 16-18 under the theme "Invest in Resilience". The delegation from Mongolia represented by Bank of Mongolia, Khan Bank, Golomt Bank, "Mobicom" Corporation, "Mandal" Financial Group, and "Digital Concept" and led by Deputy Minister of Finance S. Mungunchimeg and Deputy Minister of Economic Development G. Tuvdendorj took part in the event.

This year's meeting was organized under the topic "Ensuring economic stability during the crisis". Specifically, it was held on a wide range of issues such as support for sustainable economic growth, energy security, transition to renewable energy, and financing to support the digital transition of fast-growing markets.

During the forum, a panel meeting "The next frontier: Investing in Mongolia's promising future" was held to promote Mongolia's investment climate, and potential investors in mining, agriculture, tourism, and renewable energy were invited and informed about Mongolia's economic situation and investment environment.

Agreements between EBRD and Mongolian banks and a company were signed, namely:

• USD 20 million long-term financing agreement within the framework of the "Program to Support Women Entrepreneurs" with Khan Bank,

• USD 25 million financing package within the "Green Economy Financing" regional program with XacBank,

• USD 18 million contract for supporting retail business and financing the expansion of GS25 chain stores with "Digital Concept" Ltd.