1 GOLD AND COPPER PRICES SURGE WWW.UBPOST.MN PUBLISHED:2025/04/02      2 REGISTRATION FOR THE ULAANBAATAR MARATHON 2025 IS NOW OPEN WWW.MONTSAME.MN PUBLISHED:2025/04/02      3 WHY DONALD TRUMP SHOULD MEET KIM JONG- UN AGAIN – IN MONGOLIA WWW.LOWYINSTITUTE.ORG  PUBLISHED:2025/04/02      4 BANK OF MONGOLIA PURCHASES 281.8 KILOGRAMS OF PRECIOUS METALS IN MARCH WWW.MONTSAME.MN PUBLISHED:2025/04/02      5 P. NARANBAYAR: 88,000 MORE CHILDREN WILL NEED SCHOOLS AND KINDERGARTENS BY 2030 WWW.GOGO.MN PUBLISHED:2025/04/02      6 B. JAVKHLAN: MONGOLIA'S FOREIGN EXCHANGE RESERVES REACH USD 5 BILLION WWW.GOGO.MN PUBLISHED:2025/04/02      7 185 CASES OF MEASLES REGISTERED IN MONGOLIA WWW.AKIPRESS.COM PUBLISHED:2025/04/02      8 MONGOLIAN JUDGE ELECTED PRESIDENT OF THE APPEALS CHAMBER OF THE ICC WWW.MONTSAME.MN PUBLISHED:2025/04/01      9 HIGH-PERFORMANCE SUPERCOMPUTING CENTER TO BE ESTABLISHED IN PHASES WWW.MONTSAME.MN PUBLISHED:2025/04/01      10 LEGAL INCONSISTENCIES DISRUPT COAL TRADING ON EXCHANGE WWW.UBPOST.MN PUBLISHED:2025/04/01      УСТСАНД ТООЦОГДОЖ БАЙСАН УЛААНБУРХАН ӨВЧИН ЯАГААД ЭРГЭН ТАРХАХ БОЛОВ? WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     САНГИЙН ЯАМ: ДОТООД ҮНЭТ ЦААСНЫ АРИЛЖАА IV/16-НААС МХБ-ЭЭР НЭЭЛТТЭЙ ЯВАГДАНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     МОНГОЛБАНКНЫ ҮНЭТ МЕТАЛЛ ХУДАЛДАН АВАЛТ ӨМНӨХ САРААС 56 ХУВИАР, ӨМНӨХ ОНЫ МӨН ҮЕЭС 35.1 ХУВИАР БУУРАВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     Б.ЖАВХЛАН: ГАДААД ВАЛЮТЫН НӨӨЦ ТАВАН ТЭРБУМ ДОЛЛАРТ ХҮРСЭН WWW.EAGLE.MN НИЙТЭЛСЭН:2025/04/02     1072 ХУВЬЦААНЫ НОГДОЛ АШИГ 93 500 ТӨГРӨГИЙГ ЭНЭ САРД ОЛГОНО WWW.EAGLE.MN НИЙТЭЛСЭН:2025/04/02     Н.УЧРАЛ: Х.БАТТУЛГА ТАНД АСУУДЛАА ШИЙДЭХ 7 ХОНОГИЙН ХУГАЦАА ӨГЧ БАЙНА WWW.NEWS.MN НИЙТЭЛСЭН:2025/04/02     “XANADU MINES” КОМПАНИ "ХАРМАГТАЙ" ТӨСЛИЙН ҮЙЛ АЖИЛЛАГААНЫ УДИРДЛАГЫГ “ZIJIN MINING”-Д ШИЛЖҮҮЛЭЭД БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     ТӨМӨР ЗАМЫН БАРИЛГЫН АЖЛЫГ ЭНЭ САРЫН СҮҮЛЭЭР ЭХЛҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/04/02     “STEPPE GOLD”-ИЙН ХУВЬЦААНЫ ХАНШ 4 ХУВИАР ӨСЛӨӨ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     ҮЙЛДВЭРЛЭЛИЙН ОСОЛ ӨНГӨРСӨН ОНД ХОЁР ДАХИН НЭМЭГДЖЭЭ WWW.GOGO.MN НИЙТЭЛСЭН:2025/04/01    

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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Belarus, Mongolia to hold meeting of trade and economic commission www.belarus.by

Ambassador Extraordinary and Plenipotentiary of Belarus to Mongolia Dmitry Gorelik met with Deputy Prime Minister, Minister of Economy and Development of Mongolia Chimed Khuralbaatar on 14 March, BelTA learned from the Belarusian diplomatic mission in Mongolia.
The parties discussed a wide range of issues related to bilateral trade and economic cooperation. They also discussed the oncoming regular meetings of the joint Belarusian-Mongolian commission on trade and economic cooperation and the joint Belarusian-Mongolian commission on scientific and technical cooperation in Minsk in 2023.
The parties agreed on the need to intensify the bilateral dialogue between the ministries, as well as the early implementation of new joint projects in the delivery of municipal, agricultural and other equipment produced in Belarus.
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Elaine Conkievich: UNDP to Support Mongolia on Gender Equality, Digital Transformation and Development Financing www.montsame.mn

MONTSAME Mongolian National News Agency interviewed Ms. Elaine Conkievich who was appointed as a Resident Representative of the United Nations Development Programme in Mongolia on November 9, 2019.
Good morning! Thank you for your interview with the Mongol Messenger today. Before we start, could you please introduce yourself and your background to our readers?
Thank you. It is my pleasure. My name is Elaine Conkievich and I have been working as UNDP Resident Representative in Mongolia for over three years. Before that, I used to work as the UN Women representative in Central Asia, based in Kazakhstan for the last five years. Overall, I have been working for nearly 30 years in international development in the fields of governance, human rights, rule of law, gender mainstreaming, democratic institution building, conflict resolution, and preventive diplomacy working in the Balkans, Eastern Europe, Caucasus, Central Asia, and now Mongolia.
Can you please tell us about how UNDP works in Mongolia and the organization’s history in Mongolia a little bit?
Gladly. UNDP has been working in Mongolia for over five decades. Formally, our agreement with the Government of Mongolia was signed in 1976, but our work in the country started even before that.
Today, we are very proud to have become a trusted and long-term partner of the Government and people of Mongolia. UNDP has provided vital development support to Mongolia, including the transition to democracy and the market economy in the 1990s. Since then, we have continued to work with Mongolia on governance, climate change, natural resource management, and for the achievement of the Sustainable Development Goals.
We have helped establish critical nationwide institutions in Mongolia, including the National Emergency Management Agency, the National Human Rights Commission, and the Independent Authority Against Corruption as well as the major private sector entities, including Gobi Cashmere and Xac Bank.
We have also provided support for major legislative reforms in Mongolia. For example, the Law on administrative and territorial units and their government, the LATUG Law, and the Law on Genetic Resources were also adopted with UNDP support and the ongoing civil service reform.
UNDP's work in Mongolia is guided by our Country Programme Document, which is aligned with the Sustainable Development Goals and Mongolia’s national sustainable and long-term development priorities, namely the Vision 2050, and UN Sustainable Development Cooperation Framework for Mongolia.
What is the Country Programme Document? Could you please tell us more about it, such as how it is developed and who contributes to it?
The Country Programme Document is a modality under which UNDP works. It is developed and adopted every five years through a consultative process with the Government of Mongolia, civil society organizations, and other partners, including development partners, international financial institutions, and bilateral institutions. It guides UNDP's activities in a country and is regularly reviewed and updated to ensure that it remains relevant and responsive to the changing development needs and priorities of the country.
We are starting the implementation of the new Country Programme Document for 2023-2027 this year, which was signed off last September at the UNDP Executive Board following endorsement by the Government of Mongolia.
Thank you. So, what are some of the key results and achievements of UNDP from your previous Country programme document in 2017-2022?
UNDP’s previous Country Programme Document for Mongolia focused on two key areas, including inclusive and sustainable development and strengthened voice, participation, and accountable governance.
One of our major achievements is the development of the Integrated National Financing Framework and Strategy and tools with support from the UN Joint SDG Fund, under the leadership of the UN Resident Coordinator, in partnership with sister UN agencies. It has been endorsed by the National Committee on Sustainable Development and implementation will begin with the Ministry of Finance and Ministry of Economy and Development.
In connection with this, we have been and continue to work on the institutionalization of results-based budgeting, with a special focus on the employment sector, supported by the European Union helping line ministries to link their long-term development plans and budgeting with the outputs for those plans as a way to accelerate progress for the sustainable development goals.
On climate change and biodiversity fronts, we have supported the resiliency of local communities and aimags through multiple interventions such as conducting the first feasibility assessments for climate risk and vulnerability, protection and conservation of Mongolia’s biodiversity and ecosystem by supporting the implementation of the Natural Resource Use Fee law, and sustainable livelihoods of local communities thanks to funding from the Green Climate Fund and the Global Environmental Facility.
For governance, our support focused on building competencies and capacities of the local citizen’s representative khurals in the aimags across Mongolia, with the support of Switzerland, emphasizing the decentralization and Mongolia’s civil service with the support of Canada, especially in human resources, to ensure recruitment and retention follow the merit-based principle and to increase the number of senior female civil servants which increased from 8.6 percent to 21 percent by last year.
We have also focused our support on key cross-cutting areas, including gender equality and digitalization. Our main priority for gender equality has been and continues to be supporting women in public decision-making with the support of KOICA.
Innovation and digitalization have been another focus, with UNDP Mongolia's Accelerator Lab finding new solutions to complex development problems, such as digital literacy for vulnerable groups and waste management systems. During Covid-19, we also helped to digitize social workers and improve their capacity easing the provision of effective social services with the support of the Government of Japan.
What are the main priorities of UNDP in the next five years and what are your expected results?
In the next five years, UNDP will be supporting the Government of Mongolia in three main priority areas: first, diversified, inclusive, and green economy, second, risk-informed climate adaptation and sustainable management of natural ecosystems, and third, women’s empowerment, inclusive and accountable governance, and progress towards achievement of the SDGs.
As you know, the Sustainable Development Goals are through 2030, and this year we are right midway now between 2015 and 2030.
So, it’s very important for us that our support in the next five years will help the Government of Mongolia to accelerate its progress towards SDGs.
As we look to take on complex development challenges leveraging innovation and new solutions, we are changing our approach where we have separate projects that are independently working to developing what we call a portfolio approach, which is bringing together synergies across different aspects of the work that we're doing and leveraging them in an integrated fashion to bring more complex results and thus accelerating results for Mongolia.
In connection with your next five years' priority, will UNDP’s work support the Billion Tree nationwide campaign initiated by the President of Mongolia?
Absolutely. We already began supporting by developing a feasibility study for the Ministry of Environment and Tourism with regard to the Billion Tree Initiative in 2021. And beyond that, our programmes that we are implementing in the area of climate change, biodiversity, natural resource management, also the financing for sustainable development are geared towards supporting combating desertification, supporting reforestation, and overall efforts of the Government of Mongolia to fulfill its commitment made at the previous COP in regard to reducing greenhouse gas emissions by 22.7 percent.
What do you see as the main challenges that Mongolia is facing, and how will UNDP support us in addressing them?
Mongolia faces many development challenges, including economic diversification and job creation, as the economy remains heavily dependent on extractive industries. Attention to infrastructure development and transitioning urban centers to sustainable cities including focusing on a just energy transition, to support its growing economy through inclusive development that is benefiting both women and men, would be important. Additionally, poverty reduction is a significant concern, as a large portion of the population lives in rural areas with limited economic opportunities and the poverty rate has been hovering around 27-28 percent for several years. Environmental degradation and climate change impacts including increased natural disasters and foreign debt burden are also pressing issues as well as corruption, which hinders economic growth and erodes public trust.
Furthermore, increasing inequalities and the importance of achieving gender equality, especially at the decision-making level, is a major challenge that Mongolia needs to address given over 50 percent of the population are women.
UNDP will continue to support the Government of Mongolia in key development areas, including digitalization and innovation through our Accelerator Lab to address the complex development challenges that Mongolia is facing. Furthermore, we will continue to support the improvement of public financial management through results-based budgeting with a particular focus on the labor and employment sectors so that more women, youth, and people with disabilities can find and be engaged in long-term formal employment. We hope to continue our work to strengthen the civil service, including by increasing the number of senior female civil servants. In addition, advocating for and supporting women’s participation in public decision-making is key to engaging women in the development and implementation of policies and legislation.
We will continue to work with the private sector by supporting businesses to have good human rights practices.
Also, importantly, UNDP will continue to support climate change adaptation and resilience building of herder communities, protection of ecosystems, and the beautiful natural resources of Mongolia. And underpinning all of this is our continued support of sustainable financing to increase the amount of financial resources from the public and private sectors for effective use towards Mongolia's development.
What are the areas that Mongolians should take more advantage of to accelerate its development and achieve SDGs by 2030?
In addition to increasing women's role and participation across different sectors at all decision-making levels, leveraging innovation and digitalization, and mobilizing more financing for sustainable development, one of the key areas that Mongolia should focus on, and advance is the energy transition. This is an area where Mongolia has large untapped potential for renewable energy, that is solar and wind which would not only be beneficial to the environment but important for the people of Mongolia by improving their health and economic situation through the development of this sector. So, very much the way of the future is not only for the provision of energy, but an energy transition is just, which means that it benefits the women and men of Mongolia, leaving no one behind through economic diversification, new jobs, and new skills as well as improving the environment, contributing to better health outcomes.
Focusing on the human angle of the energy transition is quite important. In this regard, we are currently working on developing a flagship report, a National Human Development Report, exactly on the importance and significance of Just Energy Transition for Mongolia as we see, looking into the future, that this is a key to unlocking a more prosperous and sustainable future for the people of Mongolia.
Thank you.
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Minister of Foreign Affairs Holds Official Talks with Her Turkish Counterpart www.montsame.mn

During her Official Visit to Turkey between March 13-14, Minister of Foreign Affairs Ms. Battsetseg held official talks with the Minister of Foreign Affairs of Turkey Mr. Mevlüt Çavuşoğlu. On March 14, the Ministers held a press conference to present the official outcomes of their talks.
During the press conference, Minister of Foreign Affairs Ms. Battsetseg said “It is my pleasure to visit your beautiful country at your, Minister of Foreign Affairs of Turkey Mr. Mevlüt Çavuşoğlu, invitation. Please accept my sincere gratitude for your warm welcome and hospitality. First of all, I would like to offer my deepest condolence again over the tragic loss and injuries caused by the devastating earthquake in the southeastern provinces of the Republic of Turkey and reaffirm that we, Mongolians, stand in full solidarity with the people of Turkey. I believe that the Republic of Turkey will be able to overcome the losses and damages within a short time. The official talks with the Minister of Foreign Affairs Mr. Mevlüt Çavuşoğlu were fruitful, and many important issues of bilateral regional and international relations were discussed in detail. Mongolia attaches utmost significance to its relations with the Republic of Turkey and strives to develop bilateral relations in all spheres. In particular, we agreed to advance the relations between our two countries from the current comprehensive partnership to the ‘strategic partnership’ and continue the mutual high-level visits in anticipation of the 50th anniversary of the establishment of diplomatic relations between our two countries.”
On the sideline of the talks, the Minister of Foreign Affairs of Mongolia Ms. Batstesteg, and the Minister of Foreign Affairs of Turkey Mr. Mevlüt Çavuşoğlu signed the Memorandum of Understanding between the Ministry of Foreign Affairs of Mongolia and the Ministry of Foreign Affairs of the Republic of Turkey on “Cooperating in Diplomatic Ceremony” which will make a particular contribution to strengthening the cooperation between the ministries.
In addition, in order to increase the trade turnover between our two countries and facilitate the export of animal products, the Extraordinary and Plenipotentiary Ambassador of Mongolia to the Republic of Turkey Mr. Munkhbayar signed the following official documents with the Secretary of Halal Accreditation Agency of Turkey Mr. Mustafa Suleiman, the Director of National Metrology Institute, affiliated to the Scientific and Technological Research Council of Turkey Mr. Mustafa Cetintaş, and the President of Turkish Standards Institution (TSE) Mr. Mahmut Sami Şahin, respectively. These are:
· “Memorandum of Understanding” between the Mongolian Agency for Standardization and Metrology and the Halal Accreditation Agency of Turkey on Halal Quality Infrastructure;
· “Memorandum of Understanding” between the Mongolian Agency for Standardization and Metrology and the National Metrology Institute, affiliated to the Scientific and Technological Research Council of Turkey;
· “Action Plan to Organize Training on Standardization, Evaluation, and Metrology from 2022 through 2026” of the Mongolian Agency for Standardization and Metrology and the Turkish Standards Institution (TSE).
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China removes all remaining curbs on Australian coal imports www.bloomberg.com

China will allow all domestic companies to import Australian coal, signaling an end to trade restrictions imposed in late 2020.
Ports and customs offices have been told to allow the cargoes, according to people familiar with the decision, who asked not to be identified because the information isn’t public. Earlier this year, authorities gave four major importers permission to resume purchases of Australian coal, which began shipping in January.
The National Development and Reform Commission, China’s economic planning agency, didn’t immediately respond to a request for comment.
High-quality Australian coal is much sought after by China’s steelmakers and power plants. Imports could reach 1 million tons in the first half of March alone, according to China’s top coal lobbying group. China is the world’s biggest producer and consumer and its imports of the fuel exceeded 290 million tons last year.
Major consumer
Australian coal mining stocks, including Yancoal Australia Ltd. and New Hope Corp., narrowed losses after the news. Chinese coking coal futures extended declines.
China had been a major consumer of Australian coal before implementing its unofficial ban as political hostilities escalated between the two countries. Australian leaders have said ending the ban would be a key step in restoring ties between the nations.
The thaw in relations between the two countries comes as a welcome development for Australian exporters of other commodities hit by a raft of restrictions, including lobster, beef, barley and wine.
Australian lobster exporters aren’t seeing the same obstacles from Chinese authorities that were previously in place, Australia’s Agriculture Minister Murray Watt said at a conference in Canberra last week. And there are early signs that impediments to beef and dairy shippers are also beginning to ease, he said.
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China reopening borders to foreign tourists for first time since Covid erupted www.bbc.com

China is to resume issuing visas to foreign tourists for the first time since the Covid pandemic broke out three years ago.
The major easing of restrictions comes after Beijing declared victory over the virus and retreats from a zero-Covid strategy that has hurt its economy.
Valid visas issued before China closed to the world on 28 March 2020 will be honoured starting on 15 March.
Visa-free entry will resume in Hainan Island and Shanghai for cruise ships.
Tour groups from Hong Kong and Macau will be allowed visa-free-entry while Chinese consular offices abroad will also resume processing visa applications.
The removal of the last cross-border restrictions imposed to tackle Covid marks a major step towards the resumption of normal life in post-pandemic China. All changes take effect on 15 March.
Tens of millions of international visitors came to China each year prior to the pandemic, and its tourism industry has been hard hit by strict anti-Covid measures.
But the country can expect a significant increase in international arrivals, after it reopens its borders, analysts say.
Chinese citizens will also be allowed to travel on tour groups to 60 countries, up from 20 previously.
China said its gross domestic product grew just 3% in 2022, the worst in nearly half a century.
For the current year, Beijing has set a 5% target with new Premier Li Qiang saying that the world's second largest economy is stabilising and picking up again.
The zero-Covid policy that was lifted in December sparked rare protests against China's leader, Xi Jinping.
He has since solidified his grip on power in the Communist Party and secured a record third term as president.
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Mongolian women serving with the UNMISS gives a health awareness session www.news.mn

A health awareness session facilitated by peacekeepers from Mongolia serving with the United Nations Mission in South Sudan (UNMISS) was held in Pariang.
More than 50 women and girls from nearby areas took part in the training meted out by Blue Helmets, including midwives, teachers, civil society and government representatives, as well as adolescent girls.
The focus: Educating women and girls on basic health and hygiene; preventing communicable and water-borne diseases and proper handwashing.
Following the main event, female peacekeepers and women had spirited conversations on a range of issues, shared common concerns and spent time getting to know one another.
“It’s been wonderful to spend the day with these inspirational women peacekeepers from Mongolia,” said Ayen Anthony Kiir, a young girl who participated in the event. “I’ve learned a lot about good health practices, played volleyball with them and even learned a few new dance steps,” she narrated with a smile. “I want to grow up to become just like them – independent and brave,” added Ayen.
After two hours of quality time, a happy group of women and girls returned to their homes with hygiene kits, aprons, study materials, and, critically, with the assurance that UNMISS is their partner in helping build a more prosperous, peaceful future.
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Rio stands ground on Oyu Tolgoi tax take in Mongolia www.afr.com

Rio Tinto and the Mongolian government are yet to thrash out a deal on taxes and other issues around the giant Oyu Tolgoi copper mine in which they are partners, despite a thaw in relations.
Rio chief executive Jakob Stausholm confirmed on Monday that international arbitration proceedings in the long-running tax dispute between the Oyu Tolgoi partners had been put on hold pending talks aimed at finding a resolution.
Mr Stausholm said Rio was hopeful of settling the tax dispute and other issues soon, but it took “two to tango”.
He said Rio and the Mongolian government had been able to “move mountains” lately as Rio looks to unlock the true value of a $US15 billion ($22.5 billion) investment in Oyu Tolgoi.
However, there is no end in sight to the mine relying on China for its power and on Russia for its key inputs, albeit at arms length through a network of Mongolian-based suppliers.
Mongolian prime minister Luvsannamsrain Oyun-Erdene and Mr Stausholm appeared together 1.3 kilometres below ground at Oyu Tolgoi on Monday for a celebration to mark the start of sustainable underground production.
Mr Stausholm said the company’s relationship with Mongolia had entered a new era as block cave mining deep underground starts to unlock the copper and gold riches of the deposit deep in the south Gobi Desert.
Rio later continued its charm offensive in Mongolia by signing a memorandum of understanding that commits it to supporting the work of Mongolia in investigating the building of a copper smelter and a ring road around the sometimes gridlocked capital Ulaanbaatar.
Asked if Rio was close to settling the tax dispute, Mr Stausholm said: “I hope so, but it takes two to tango. There was no way we could solve everything in one go.”
Rio has said previously that Oyu Tolgoi received a tax assessment for about $US155 million in 2018 relating to an audit on taxes already imposed and paid by the mine between 2013 and 2015.
It is understood Rio is reluctant to concede and pay up because of the risk of setting a precedent for future tax bills.
Mr Stausholm has been focused on repairing the relationship since early last year when he struck a deal to waive the $US2.4 billion debt the Mongolian government owed to the project after Rio and its partners had covered the construction costs owing from Mongolia’s 34 per cent stake.
The revised deal included undertakings from Rio to protect scarce water resources essential to nearby communities herding livestock and to ensure social infrastructure was provided for workers drawn to the mine.
The deal overcame an impasse on underground mining and later in 2022, Rio completed a gruelling $US3.3 billion takeover of Turquoise Hill to simplify the ownership structure and give it the remaining 66 per cent stake in its own right.
Rio thinks the trouble and expense has been worth it, with Oyu Tolgoi set to emerge as the world’s fourth-biggest copper mine and one Rio sees as having potential to operate well into next century.
It is hailed as the most sophisticated and biggest block cave mine in the world and targeted to achieve peak production of 500,000 a year of copper by about 2029.
The mine already employs more than 20,000 people and 97 per cent of the workforce is Mongolian.
Apart from sorting out its remaining issues with the Mongolian government, Rio needs to work out a long-term power source for the mine.
Rio copper boss Bold Baatar said its power supply deal with China, the dominant buyer of copper concentrate from Oyu Tolgoi, had expired and was in the throes of being renegotiated.
Mr Baatar estimated about 30 per cent of the power from China came from wind turbines on the Chinese side of the Gobi Desert.
Rio is under pressure to come up with a renewable source in Mongolia, where the government says a lack of generation capacity is holding back economic development.
Mr Baatar indicated it would be just as difficult for Rio to cut off Russian sourced input for the mine as it would for some European nations to go without Russian gas.
Rio installed Mr Baatar, a Mongolian national, to run copper and Oyu Tolgoi soon after Mr Stausholm replaced Jean-Sebastien Jacques as Rio chief executive in January 2021.
Mr Oyun-Erdene became Mongolian prime minister in the same month and his government has worked hard to attract investment from Western nations while treading a fine line with China on one border and Russia on another.
It remains unclear if Mongolia will continue to try to re-write the 2009 Investment Agreement that underpins Rio’s operations.
The agreement was struck between Mongolia and the company that owned Oyu Tolgoi at the time, Ivanhoe Mines, but the government has sought to revise aspects multiple times.
BY: Brad Thompson
The author travelled to Mongolia as a guest of Rio Tinto.
Brad Thompson writes across business and politics from Western Australia for The Australian Financial Review. Brad is based in our Perth bureau. Connect with Brad on Twitter. Email Brad at brad.thompson@afr.com
 
 
 
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Lkhagvasuren: Domestic Companies Need to Carry Out Mining Transportations www.montsame.mn

On March 9, the Governor of the Bank of Mongolia Mr. Lkhagvasuren presented on the current economic situation to the journalists.
-What measures are taken to reduce and cover the current account deficit by the Bank of Mongolia?
Last year, the current account and payment deficit reached about USD 720 million. According to the projection, it was supposed to be USD 1.8 billion but decreased to USD 700 million at the end of the year. This deficit reduction was mainly driven by coal export. As of the end of 2022, a total of 31 million tons of coal were exported and it resulted in a decrease in the payment deficit, especially in the current account deficit. Another way to reduce the current account deficit is improving the service sector, in particular transportation services. With the stagnation in the mining sector, the transportation sector tends to become stagnant as well. In this sense, even though the Mongolian economy increased by 4.8 percent, the mining and transportation sector showed a decline.
If the production and export of the mining sector improve, the transportation sector will revive. In particular, the current account deficit of the service sector can be reduced if domestic companies and enterprises carry out the mining transportation. To that extent, it will reduce the payment deficit. Another positive impact could be an increase in foreign exchange reserves which will be resulted in stabilizing the foreign exchange rate.
According to the Ministry of Economy and Development, Mongolia can export 40-45 million tons of coal this year. If coal is transported by domestic companies from the mine-mouth to the border port at the border price, there is a possibility of making a profit of USD 1.6-2.4 billion, gaining additional income, and maintaining a balance of payments without deficit.
- The exchange rate and inflation rate are still the main concerns of people. What are your expectations in this regard?
In this regard, the balance of the payment should be improved. Since the international geopolitical tension started in February 2022, we observed its most prominent impact in May. The price index reached a record-high 16.5% and the foreign exchange reserves dropped to USD 2.4 billion. Comparing that period with today, the inflation rate is 12.3% and the foreign exchange reserves have reached USD 3.4 billion. These are, indeed, good signs. We are expecting that the inflation rate would be within our targeted level or down to 8%. These are the outcomes of the raise in the policy rate of the Bank of Mongolia. If this positive trend in the economy continues, the foreign exchange reserves will increase and the exchange rate will become more stable. Enterprises and citizens still have expectations that the US dollar will rise against MNT. Therefore, they are still preferring dollar deposits over MNT deposits.
- Can all commercial banks complete their IPOs within this year?
According to the amended Code on Banks, five systematically important commercial banks are obliged to become public companies and offer their shares to the public. Last year, Golomt Bank and State Bank listed their shares, while Khan Bank received their approval. Now the IPOs of Khas bank and Trade and Development Bank are pending. The code amendment that is pushing Mongolia’s banks to go public requires all systemic banks to list 20% by June 30, 2023. Since there is deadline, we are expecting their IPO’s will complete within this year.
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Rio Tinto's prized $7 billion copper mine in Mongolia finally delivers www.bloomberg.com

Rio Tinto Group has begun digging copper from the underground portion of its giant mine in Mongolia, an expansion that will turn the operation into one of the world’s largest, after years of delays, cost blow-outs and billion-dollar disputes with the country’s government.
The Oyu Tolgoi project is now producing ore from 1.3 kilometres below the surface of the Gobi Desert, Rio’s Chief Executive Officer Jakob Stausholm told reporters gathered at the site. The world’s No. 2 miner is spending $7 billion on the underground project that’s a cornerstone of the company’s growth plans.
“It’s not been a smooth ride, let’s be honest about that,” said Stausholm, referring to the mine’s long and troubled journey as lawmakers in the resource-dependent country repeatedly sought better terms. Mongolia had “very skilfully handled” negotiations, he said.
The prize for Rio is one of the world’s few large-scale new sources of a metal needed in vastly expanded volumes as the energy transition accelerates. At its peak in 2030, Rio says its Mongolian operation will be the world’s fourth-biggest source of copper, churning out half a million tons a year. That’s enough for around six million electric vehicles or 60 of the biggest wind farms.
But the difficult route to underground production at Oyu Tolgoi — the launch was once envisaged for 2015 — reflects the challenges in bringing on new supplies. One reason is mineral-rich nations like Mongolia increasingly demanding better terms from global mining companies. Oyu Tolgoi could add a third to the size of the Central Asian nation’s economy.
Rio became Mongolia’s biggest foreign investor in 2009, when it struck a 30-year deal to develop Oyu Tolgoi. Surface mining started in 2013, but the more lucrative underground project was log-jammed as lawmakers in the boisterous democracy repeatedly challenged Rio. Claims of foreigners pillaging the country’s mineral wealth dominated election campaigns. Swings in global commodity markets and the COVID-19 pandemic didn’t help either.
Mongolian leader Oyun-Erdene Luvsannamsrai, speaking at the underground opening ceremony, acknowledged many “hiccups” for the project. Difficult negotiations with Rio were driven by a desire to maximize benefit for the country’s people, he said.
Big deal
A 2021 agreement for Rio to write off US$2.4 billion of state debt was crucial for Stausholm — chief financial officer until he was appointed to the top job in late 2020 — to get to today’s juncture. The company has already spent around US$15 billion in Mongolia, including US$4 billion of taxes or other payments to the state, Rio said.
The government retains a 36 per cent stake in Oyu Tolgoi, where some 80 per cent of the value lies underground. Many of the world’s open-pit mines are gradually expiring, while quality new resources like this one are getting harder to find.
Progress at Oyu Tolgoi is a coup for CEO Stausholm, who replaced Jean-Sebastien Jacques following the 2020 Juukan Gorge scandal in Australia, when Rio blew up ancient Aboriginal rock shelters. Big miners like Rio and rival BHP Group Ltd. are rushing to be part of the anticipated copper boom, and both were involved in multibillion dollar takeovers last year.
Oyu Tolgoi’s ore holds about 1.5 per cent copper, well above the global average of around 0.6 per cent for all copper mines, according to researcher Wood Mackenzie Ltd. Extracting the material from 1,300 meters or more below the surface offers a very different challenge from surface digging.
Rio is using a method called “block cave mining” that involves drilling spaces under the ore body, using controlled explosions to collapse the roof, then collecting the fragmented rock. This is much more costly and technically demanding than the open pits at Rio’s massive iron ore mines in Western Australia.
Despite its comparatively large size, Oyu Tolgoi will still only meet one per cent of global copper demand by 2035, according to demand estimates from S&P Global Commodity Insights, which put annual demand by then at around 50 million tons per annum. The mine also has a relatively short life, with peak production expected from 2028 to 2036.
“It’s been a tough journey so far” for Rio in Mongolia, said David Radclyffe, managing director of consultancy Global Mining Research. But “it fulfills a lot of what Rio and peers are trying to do at the moment, which is to maximize exposure to copper in the current market.”
—With assistance from Sanjit Das.
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Türkiye, Mongolia eye boosting trade, diplomatic ties www.dailysabah.com

After hitting last year’s target, Türkiye and Mongolia are aiming to push their trade volume to at least $500 million (TL 9.49 billion) in the coming period before the two countries celebrate the 55th anniversary of diplomatic ties, according to their top diplomats.
“Next year, Türkiye and Mongolia will celebrate the 55th anniversary of their diplomatic relations, and therefore investment deals signed beforehand need to be revised and updated,” said Turkish Foreign Minister Mevlüt Çavuşoğlu at a joint presser with his Mongolian counterpart Batmunkh Battsetseg following a one-on-one meeting, notably the first of its kind 31 years, in the capital Ankara on Monday.
“We have discussed bilateral relations and underlined that these need to be improved by cooperating on many fields,” Çavuşoğlu informed, noting as steps to be taken include the increase of civilian and cargo flights, boosting quotas for land transports and eliminating obstacles in front of trade, as well as in education and culture, mainly due to historical and cultural ties between the two nations.
Türkiye offered Mongolia to elevate our bilateral ties from a comprehensive partnership to a strategic partnership, and we are waiting for their answer,” Çavuşoğlu revealed.
“We also inked three agreements today, which we will expand and deepen in the future,” he assured. “We discussed advancing defense industry cooperation, as well, and we are prepared to provide every support to Mongolia on this matter.”
Çavuşoğlu further thanked Mongolia for their support in the wake of the Feb. 6 earthquakes that left over 48,000 dead in Türkiye’s southeast.
“A 37-person team from Mongolia rescued eight people from the rubble in the Hatay province,” Çavuşoğlu informed, adding that the country supplied tents, including traditional Mongolian tents, for the victims.
“We are especially grateful to the Mongolian people who have continued their humanitarian support to Türkiye since day one,” he said.
The Turkish diplomat said he also thanked Battsetseg for Mongolia’s help in fighting the Gülenist Terror Group (FETÖ) and that Battsetseg confirmed no FETÖ member was left in the country.
“We have cooperated in the fight against terrorism before, and there have been conflicts in the past because of this, but this group is a threat to everyone, not just Türkiye. It’s a threat for Mongolia, as well,” Çavuşoğlu said. “Some of their schools in Mongolia were taken over by a shell company in Germany. Therefore, we gave them a friendly warning to be always vigilant about FETÖ.”
In light of Mongolia’s potential of joining the Organization of Turkic States (OTS) as an observer member, Çavuşoğlu said the organization was working to reinforce ties with all Asian nations and institutions, including the Association of Southeast Asian Nations (ASEAN) and reinstate a holistic approach to the region with more than 1,000 concrete projects.
For her part, Battsetseg emphasized that the Mongolian people “stand in harmony with Türkiye” and affirmed she and Çavuşoğlu agreed on “working to achieve a strategic partnership and carry out mutual, high-level visits on the 55th anniversary of our diplomatic relations.”
“We also reached a consensus on collaborating for projects that could symbolize bilateral relations,” Battsetseg said.
“The contribution of Türkiye’s humanitarian, diplomatic activity to the global community has been proven, be it during the COVID-19 pandemic, be it in the Russia-Ukraine war,” she concluded.
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