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

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

NEWS

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Mongolia consumers feel weight of inflation as food prices rise www.bne.eu

Each morning, food distributor Suren Bat-Tur goes to the Bars wholesale food market in Ulaanbaatar to purchase produce for resale. Lately, the mushrooms, coriander, tomatoes and other grocery items he buys have hit eye-watering prices.
“The cost of all my products just goes up and up, some items doubled compared to a year or two ago,” said Bat-Tur, 57. “For ordinary Mongolian buyers, they just cannot afford it anymore, so they buy 100 grams of oil and a few vegetables at a time.”
Mongolia’s consumer price index has averaged 15% over the past eight months amid mounting global headwinds. The coronavirus (COVID-19) lockdowns in Ulaanbaatar and the disappearance of foreign investors due to lockdowns hit the economy two years ago. Now China’s frequent border closures and Russia’s invasion of Ukraine are combining to escalate prices again.
Some of the biggest cost increases are in foods and non-alcoholic drinks, which have surged 22% this year, on top of an 11% rise last year, according to data compiled by the National Statistical Office. Health and medical services are up 18% this year and transportation costs rose 19%.
Consumer buying power took another blow last week when the country’s central bank announced that it had raised interest rates two percentage points to 12%. It’s the fourth time this year the Bank of Mongolia has hiked its policy interest rate, raising it by six percentage points.
“Persistently high inflation severely impacts on the real income of households, and deteriorates purchasing power,” said Sandagdorj Bold, senior economics officer for the Asian Development Bank (ADB) in Ulaanbaatar.
The rate hike will make borrowing more expensive but is designed to curb spending and slow the rising cost of goods. Or so the theory goes for central banks. But the solution is often more complicated and in the case of Mongolia, prices are usually determined by external forces.
“Relying only on monetary policy tightening to address inflation could be destabilising,” said Angana Banerji, the International Monetary Fund’s mission chief in Ulaanbaatar.
Strong fiscal consolidation, or policies that reduce debt, are also needed to support monetary policy efforts to contain inflation, she said.
Getting a handle on inflation would help alleviate stress on Mongolia’s poor and low-income households. Just buying basic foodstuffs has been a challenge for thousands of families, especially during China’s periodic border closures. Russia’s invasion of Ukraine has also pushed up prices due to soaring energy costs.
“We have increasing prices, imports are expensive, we feel it every day when the price of products is increasing,” said Bayanjargal Byambasaikhan, vice chair of the Business Council of Mongolia, a group of more than 200 businesses.
“At the same time, the tugrik is falling against the dollar and other currencies, and things you are seeing in different parts of the world are also real here. We will just have to survive through this wave with minimal damage," he said.
The value of the tugrik has sunk 17% this year to MNT3,330 to the dollar. Most of the currency’s losses occurred soon after Russia invaded Ukraine, but another round of declines began in September.
Foreign exchange reserves have also tumbled – from $4.4bn late last year to just $2.7bn as of the end of August, a 38% decline. That’s according to the central bank, which uses the reserves to stabilise currency swings – buying and selling the reserves as needed.
Mongolia is becoming increasingly reliant on loans and currency swaps from international lenders to make up for some of its economic losses, repay past debts, and plug budget deficits.
In 2017 the country received a $5.5bn IMF-led bailout to help with debt repayments. Lenders included the ADB, the World Bank, Japan, and Korea. Mongolia also has a $2.2bn currency swap with China’s Central Bank.
And the loans keep coming – in August the ADB approved a $100mn emergency loan. Mongolia’s general government debt as a percentage of GDP has growm to 82% according to World Bank data, up from 61% in 2019.
“Mongolia has been struggling with high debt and has experienced widening macroeconomic imbalances, rapid weakening of exchange rates and soaring domestic inflation,” according to The World Bank’s East Asia and Pacific Economic October Update.
Among the lenders, Mongolia’s debt to China is the most politically sensitive – protesters periodically set up tents on Sukhbaatar Square in the heart of Ulaanbaatar to rally against their government’s economic policies and debts to China.
The fear is that Mongolia will only be able to repay its debts with its land and resources, said a protester named Zorig, giving only his first name. “We don’t have anything else to give them,” said Zorig, speaking of China. “So they are going to take our land,” he said.
Fears of a Chinese takeover are long-standing, but the rising cost of goods is the more immediate threat for families struggling to get by.
Cutting consumption is a typical response, said Bold from the ADB, as low-income households are likely to be more indebted and have nothing socked away in their savings deposits.
Signs of the skyrocketing prices are evident in the shops of Ulaanbaatar and on its streets. At a currency exchange office downtown, the whir of electronic banknote counters fills the air as money changers swap dollars, euros, rubles, yuan and other currencies for tugriks.
Every few hours, the currency traders adjust the value of the Mongolian currency, usually in a downward trajectory.
“It’s unfortunate and it makes our business more difficult and less profitable when the currency changes a lot,” said Tognyam Doljin, a currency trader inside one of the kiosks.
The tugrik’s perpetual slide is the result of several factors, said Doljin. Russia’s invasion of Ukraine and the subsequent disruption to the global economy has been the biggest factor in this year of economic challenges, but the problems don’t end there.
Demand for the tugrik also softens in times of instability, she said, as individuals and businesses switch to dollars as a hedge against sudden downward movements. Dollars are also handy for paying off loans and debts. But dollars can sometimes be hard to find if the central bank is not releasing foreign reserves, she said.
The interest rate hike by the US Federal Reserve was another factor that has rattled currency markets in the Mongolian capital, said Doljin. And then there are the frequent border closures with China that disrupt trade.
“All this is driving up prices for everything and people’s salaries aren't high enough to keep up,” said Doljin. “I am getting by because I have some income but there’s a lot of out-of-work people who are severely affected.”
Soaring inflation and the declining value of the currency can be hard to swallow when most salaries are around MNT500,000 to MNT600,000 tugrik ($154-185) a month, according to data compiled by the Statistical Office. According to the World Bank, the bottom 20% of the population spends 40% of their consumption on food.
Traditional monetary policy instruments such as increasing the policy rate to fight inflation are questionable when the source of the problem is primarily external factors, said ADB’s Bold. But Ulaanbaatar has taken additional steps to fend off price rises, he said.
Authorities have also focused on increasing the supply of essential goods, including food, fuel and gasoline, and using tax relief or exemption measures. An agreement with Russia’s Rosneft in July to purchase wholesale gasoline at up to 35% below market prices has helped tamp down prices for drivers at the pump.
Banerji from the IMF says an “equitable way” to fund education, health and infrastructure projects is through progressive personal income taxation. That may not sit well with upper-income Mongolians but most would agree it’s time to address the wealth gap and increase taxes on those who have benefited the most from Mongolia’s mining sector, the main source of the country’s foreign earned revenue.
Where Mongolia goes from here isn’t clear, as long as instability persists in international markets. That is reflected in the outlook for its gross domestic product (GDP) – the ADB is forecasting 1.7% growth this year, down from an April projection of 2.3%.
The World Bank is a little more optimistic with a forecast for this year of 2.4% growth.
ADB’s forecast for next year has also been lowered to 4.9% from 5.6%. Mongolia’s GDP growth last year was 1.4%, compared to pre-pandemic growth of 5.6%.
ADB cites prolonged border restrictions, deterioration of purchasing power under high inflation, high borrowing costs, and a likely decline in the availability of credit as a few reasons for the reduced forecast.
Back at the Bars Market, Bat-Tur inspects piles of apples and potatoes, stacks of bok choy and cabbage. He’s looking at prices to compile an offer for a local hotel that issues monthly contracts for food and produce. Prices rose again in September and he made the necessary changes for his offer.
Bat-Tur passes along price increases to his buyers, who then increase their prices to consumers, making for a disgruntled populace. “It’s very stressful. People are angry, they don’t have enough money for groceries and don’t know what to do,” he said.
But he doesn’t see much that Mongolia can do to keep prices down, as most of it is based on imported goods from Russia and China.
“We Mongolians can’t do much about inflation,” said Bat-Tur. “Everything depends on global events, things happening in Russia and China. It could be years before things start to improve because these problems outside aren’t ending soon.”
By Michael Kohn
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Mongolia records 69 coronavirus cases in past 24h www.akipress.com

69 new coronavirus cases were recorded in Mongolia in past 24 hours.
33 of them contacts in Ulaanbaatar, and 36 were registered in the regions. No imported cases were found.
2,131 patients in total have died from COVID-19 since the beginning of the pandemic.
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Measures to be taken to increase foreign exchange reserves www.montsame.mn

At its regular meeting, October 5, the Cabinet made a resolution to take the following measures in order to increase the foreign exchange reserves.
The measures include the issuance of electronic payment receipts to all stages of mineral extraction, processing and transportation; introduction of a system for determining the origin of products by registering all related contracts in the unified tax system within the fourth quarter of 2022, introduction of a system for electronic customs clearance. Mining activities will only be conducted by using this system from the first day of 2023, and in case of not being registered in the electronic system, they shall not be allowed for export.
The resolution also states that automatic customs clearance system, coal testing laboratory and smart gateway facilities will be put into operation at Shiveekhuren port in 2022, Gashuunsukhait and Zamyn-Uud ports in the third quarter of 2023. It will enable to carry out laboratory tests quickly at the border, automatically record the test results in the customs clearance and transfer the results to the system promptly.
By implementing reforms of the system for increasing the country’s foreign exchange reserves and measures to increase real foreign exchange earnings from exports in the short and medium term, it is considered that the sale of minerals will become transparent, it will become possible to trade resources at international prices, registration of electronic receipts will be made at all stages from extraction to export, the system will be introduced for automatic performance of mineral analysis conclusions and customs clearance, and there will be a possibility to increase the country’s foreign exchange reserves.
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Border port administrations to be operated in Selenge, Dornod, Dornogobi and Umnugobi aimags www.montsame.mn

At the cabinet meeting today, it was decided to operate border port administrations in Selenge, Dornod, Dornogobi and Umnugobi aimags and approved the staff and functions of the administrations.
The border port administration will be responsible for:
-Working to increase the export and import of mineral resources, oil and goods as well as trade turnover;
-Providing infection control, law enforcement and border control organizations and local governments with integrated coordination;
-Planning the development of the port, managing issues regarding housing, electricity, heat, clean and dirty water and other infrastructure, and creating conditions for the normal operation of the port;
- And registering and controlling state properties at the border port.
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FTSE Russell approves to add the stock market of Mongolia in 'Frontier market' classification www.montsame.mn

On September 29, the FTSE Russell Group, a subsidiary of London Stock Exchange Group (LSEG), sent an official letter to Kh. Altai, the Chief Executive Director of the Mongolian Stock Exchange, about confirming the stock market of Mongolia in the 'Frontier Market' classification.
According to the FTSE RUSSELL, the stock market of Mongolia has fully met the criteria for FTSE Russell's 'Frontier Market' classification and will be added in this classification from the September, 2023.
Mongolia was first placed on the 'Frontier Markets Watch List' classification of FTSE Russell in 2012. But, in 2017, Mongolia was removed from the 'Watch List' without added in Emerging Market Countries due to reasons such as failure to meet regulatory standards for the Mongolia Stock exchange (MSE) and a lack of global custodians in country.
Since then, the Mongolian stock exchange cooperated with the Financial Regulatory Commission and other infrastructure organizations in order to bring the domestic capital market to international market status. Thus, in September 2021, FTSE Russell officially re-added Mongolia in the 'Watch List' of the 'Frontier market' classification.
The Mongolian Stock Exchange reported that the international recognition of our country's stock market is important for attracting international investment, increasing market trading activity and liquidity, and accelerating development.
The subsidiary classifies international markets into 4 main levels from 'Developing' to 'Highly Developed' based on a number of technical criteria set by professional investors. As of September 2022, 29 countries, including Bulgaria, Estonia, Kazakhstan, Latvia, Lithuania, and Vietnam, are included in the 'Emerging Market' category.
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Coal exports doubled www.montsame.mn

Mongolia exports an average of 1,304 trucks of coal per day. On September 23-29, a total of 363 containers of coal crossed the border, according to the Ministry of Mining and Heavy Industry.
During the reference period, Mongolia exported 1,014,100 tons of coal, increased by 214.5 percent or doubled from the same period of the previous year. Since the beginning of the year, 18,807,200 tons of coal has been exported, increased by 6,448,500 tons or 52 percent compared to the same period of the previous year. Thus, the performance of coal export has exceeded the plan.
Since the beginning of the year, 1,091,200 tons of copper concentrate has been exported, showing a 7 percent increase from the same period of the previous year.
As for iron ore and concentrates, a total of 3,154,100 tons were exported from the beginning of the year, which decreased by 47 percent from the same period of the previous year.
As of September 29, the Bank of Mongolia has purchased 14.81 tons of gold since the beginning of the year.
 
 
 
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Signing of Record of Discussions on Technical Cooperation Project with Mongolia: Project for Development of Human Resources in Cybersecurity www.jica.go.jp

On October 4, the Japan International Cooperation Agency (JICA) signed a Record of Discussions with the Government of Mongolia in Ulaanbaatar for the Project for Development of Human Resources in Cybersecurity, a technical cooperation project.
The aim of the project is to improve cybersecurity education in Mongolia and promote a secure digital society within the country. It will do so by establishing an industry-academia-government collaborative network for cybersecurity human resource development and implementing education programs in the field for students, current lecturers, and public servants. The project will contribute to the achievement of SDGs Goals 4 (Quality education) and 9 (Industry, innovation and infrastructure).
 
 
 
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U.S. Army Civil Affairs Support Rally For Rangers in Mongolia www.pacom.mil

U.S. Embassy in Mongolia -- In partnership with the Mongol Ecology Center and Spirit of America, a U.S. Army Civil Affairs Team supported the “Rally for Rangers” event, a cross-country journey aimed to benefit the Mongolian Park Rangers from Aug. 16-26, 2022.
The rally consisted of a 2,000-kilometer motorcycle ride from Dalanzadgad to Ulaan-Uul, Mongolia. Over the course of 11 days, the group traveled over rough terrain through five provinces, ending at the Ulaan-Uul National Park, where the motorcycles were donated to the Mongolian Park Rangers to support their response operations. U.S. service members supported the event under the direction of the U.S. Embassy Ulaanbaatar, providing logistical and medical support throughout the event.
In addition to direct support to the rally, several members from the U.S. Army’s Civil Affairs team provided the rangers with medical and survival training seminar in Khatgal. The Civil Affairs team developed a curriculum that focused on the most common medical emergencies that they are likely to experience. Over the two-day engagement, rangers were taught treatment of immediate life threats, consisting of in-depth and practical exercises with rigorous, realistic trauma scenarios using items found in a basic survival kit. Following the medical engagement, the rangers were provided first aid and survival kits funded by Spirit of America.
Civil Affairs efforts like this event continue to strengthen the U.S. and Mongolian partnership, reinforcing the skills necessary to respond rapidly in a crisis. Support of events like Rally for Rangers with our partners are instrumental in increasing emergency preparedness, cultivating civil-military cooperation, and enhancing bilateral response capabilities.
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Mongolia's central bank increases gold reserve to stabilize economy www.xinhuanet.com

Mongolia's central bank said Tuesday that it had purchased 15 tons of gold from entities and individuals so far this year, registering a 1 percent increase on an annual basis.
As of August, the Bank of Mongolia's average gold purchase price had been 184,565 Mongolian tugriks (55 U.S. dollars) per gram, the bank said in a statement.
Purchasing gold is one of the key ways for the central bank to increase foreign currency reserves and ensure the country's economic stability, it said, noting that the country's forex reserves had shrunk because of such factors as the COVID-19 pandemic and the Russia-Ukraine conflict.
Central banks across the world typically hold gold as part of their foreign exchange reserves.
The Mongolian central bank plans to purchase at least 24 tons of gold in 2022.
 
 
 
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Steppe Gold moves to consolidate gold position in Mongolia’s Bayankhongor province with three milestone agreements www.proactiveinvestors.ca

Steppe Gold Limited (TSX:STGO, OTCQX:STPGF) has announced a trio of milestones to consolidate its position in Mongolia’s Bayankhongor province, as part of its ongoing strategy to create a multi-million-ounce exploration potential gold district.
First, Steppe signed a memorandum of understanding (MOU) with state-owned Erdenes Alt Resource LLC in order to develop the highly prospective Khurentsav gold project that adjoins its own Uudam Khundii gold project. Steppe acquired the Uudam Khundii gold project in 2017, in partnership with Bayankhongor province, and has been conducting exploration work ever since.
Steppe believes that combining Khurentsav and Uudam Khundii will drive significant synergies in the delineation and future development of this area, and the partners are working on contracts and community support and will build on exciting preliminary exploration data.
READ: Steppe Gold strikes short-term gold prepay agreement with Triple Flag International worth US$4.6M
“The Uudam Khundii project and the nearby Khurentsav licence together will create a strong combined platform for our growth plans in the region,” CEO Bataa Tumur-Ochir said in a statement. “With our new partner on Khurentsav, Erdenes Alt Resource LLC, we are proposing 10,000 meters of exploration drilling at this exciting project, and we look forward to sharing more updates with the market in the coming months.”
Regarding its joint venture with Bayankhongor province (as well as Corumdum Geo, and Shinejinst Soum of Bayankhongor province), Steppe also signed a new cooperation agreement to support its exploration partnership in the region.
Steppe Gold said it is committed to a strong two-way partnership with all stakeholders in the region, particularly the residents of the local Soum area. The company is working with the local Soum on a program of local procurement, employment opportunities and investment in education, providing scholarships to over 70 students, along with social programs to ensure that local communities are beneficiaries of economic development.
Thirdly, Steppe signed an MOU with the Minister of Mining and Heavy Industry and the Mongolian Mining Association. The MOU is regarding a responsible mining codex to ensure best practices in responsible mining.
“At the core, our strategy has always been to build strong relationships with local partners and create win-win scenarios for all stakeholders,” Tumur-Ochir said. “Bayankhongor has fantastic mining assets and we look forward to building long-term and sustainable projects across our significant land holdings in the area.”
He continued: “We are also delighted to renew and strengthen our partnership with the Bayankhongor province and now the Shinejinst Soum to provide tangible benefits to our communities and a renewed commitment to responsible mine development."
Meanwhile, exploration work at the Uudam Khundii project has continued in 2022, with 3000 meters drilled thus far and assay results pending.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel
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