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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Making a difference to the future of snow leopards in Mongolia: achievements so far www.ptes.org

We have a longstanding partnership with Snow Leopard Conservation Foundation (SLCF), led by Bayara Agvaantseren, to protect snow leopards in the Tost Nature Reserve, South Gobi, Mongolia.
We’re pleased to report some considerable achievements. We believe this partnership is making a real tangible difference to the future of snow leopards in Mongolia, and so, we’re committing a further £100,000 for another five-year investment. The last five years have seen the following:
1. Tost Nature Reserve administration and capacity building
The headquarters formally opened in October 2020 with eight staff, fully equipped with computers and office furniture. Training sessions have since taken place from the HQ and the team have been working hard to complete the plan to send to the South Gobi government.
2. Monitoring and patrolling Tost Nature Reserve
Seven Tost community rangers patrol the reserve twice a month, looking for any violations (such as illegal hunting and mining), and recording wildlife sightings/other important data. The community rangers were also provided with handheld GPS units and new binoculars, crucial to their monitoring and patrolling work.
3. Tost snow leopards
Thanks to the protected status of the Tost Nature Reserve, snow leopards that range here are much safer. Since 2009, SLCF and Snow Leopard Trust have been using camera traps to conduct annual snow leopard population surveys. The good news from the 2019-20 surveys is that the Tost population appears to be stable. This data is also contributing to the global snow leopard estimate called PAWS (Population of the World’s Snow Leopards).
4. Surveying Tost for archaeological sites
Responsible eco-tourism is a key component of the Tost 2021-25 Management Plan. Wildlife viewing may not be the only draw for tourism, as Tost is also a key archeological site.
5. Completion of signage in the Tost Nature Reserve
An extensive signage project was completed in Autumn 2021 to alert the public about the Reserve’s rules and regulations. Over 65 signs were placed in strategic locations, in addition to dozens of reserve boundary posts that were added to the borders.
6. Snow Leopard Day in Gurvantes
In 2013, October 23rd was officially declared International Snow Leopard Day. Tost Nature Reserve marked the Day in 2021 by running many activities promoting snow leopard protection.
Investing in the future of snow leopards
With support from PTES, SLCF has secured Tost as an 8,965 km2 federally protected area that is free of mining threats and with a governing administration and headquarters.
We’ve invested £100,000 in the conservation of snow leopards and now, thanks to the already impressive achievements of PTES Conservation Partner Bayara Agvaantseren and her team, we’re committing a further £100,000 to continue this vital conservation.
Over the next five years, we’ll support and strengthen the reserve’s management team. Regular patrolling is vital to keep the reserve free from illegal mining and poaching. Together, we can help protect the incredible snow leopard from extinction.
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Inner Mongolia launches fast custom clearance channel for cross-border train, boosting China-Mongolia trade www.globaltimes.cn

A cargo train loaded with more than 3,000 tons of architectural materials and general goods departed on Tuesday from Ulanqab city, North China's Inner Mongolia Autonomous Region and will head to Ulan Bator, the capital of Mongolia, marking the first China-Mongolia cargo train since the launch of a new "railway express" service featuring rapid customs clearance, according to a statement that Customs of Jining in Ualnqab city sent to the Global Times on Tuesday. It comes as China and Mongolia aim to ramp up transportation capacity and boost trade.
China and Mongolia's bilateral trade has seen significant growth, and it accounted for more than 60 percent of Mongolia's total foreign trade volume in the first half of the year. The two countries want to increase the transportation capacity of the cross-border train services to cater to the growing trade activities.
The railway express service uses digital and paperless administration, allowing customs to conduct inspections of the cargo goods online while simplifying the application procedures.
The system can cut the customs clearance process by 24 hours and save more than 200 yuan ($28) per container, Jining Customs said.
"After we opened the first railway express outbound train in the autonomous region, the logistics time was further shortened and the cost was further reduced. Our customers said that they all want to use the new service to get their goods delivered more quickly," said Wang Shengyuan, the general manager of a trade company in Ulanqab.
"It is one of our important tasks to implement the measures to promote foreign trade and to ensure the smooth operation of the railway express train," said Bao Huiquan, head of Jining Customs.
To this end, Jining Customs has established a special guarantee team to work 24 hours a day and seven days a week for custom clearance, while cooperating with port customs to sort out and refine regulations for the new business model, Bao said.
Hohhot Customs will continue to improve the railway customs clearance, explore and expand the applicable coverage of the railway express and promote efficient international logistics in the central and western regions, it said.
 
 
 
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Foreign Ministries of Mongolia and China hold consular consultation meeting www.montsame.mn

Twenty second consular consultation meeting between the Ministries of Foreign Affairs of Mongolia and the People’s Republic of China was held online on September 27, 2022. The meeting was co-chaired by Mr. Bold Bat-Ochir, Director of the Consular Department of the Ministry of Foreign Affairs of Mongolia and by Ms. Wu Xi, Director of the Department of Consular Affairs of the Ministry of Foreign Affairs of the People’s Republic of China.
During the meeting the two sides exchanged views on bilateral consular issues such as the facilitation of travel between Mongolia and China by citizens of both sides, protection of the rights of citizens and as well as other bilateral issues.
Source: mfa.gov.mn
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Rio Tinto earmarks $55 million for underground development at Kennecott www.mining.com

Mining giant Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO) says it’s investing $55 million to start underground mining and expand production at its Kennecott copper operations near Salt Lake City, Utah.
The move will add 30,000 tonnes of copper production from early 2023 to 2027, alongside the site’s open pit operations, the company said in a news release. The open pit produced 159,400 tonnes of copper last year.
The new underground ore will come from the mine’s Lower Commercial skarn, which has a measured resource of 200,000 tonnes at 2.52% copper, 1.27 grams gold per tonne, 10.56 grams silver per tonne and 0.056% molybdenum, Rio Tinto said.
Rio Tinto Copper chief executive officer Bold Baatar said the investment would help the miner build knowledge and capabilities as it evaluates larger scale underground mining at Kennecott.
“We are progressing a range of options for a significant resource that is yet to be developed at Kennecott, which could extend our supply of copper and other critical materials needed for electric vehicles and renewable power technologies,” the CEO said in the news release.
The company said it expects to complete a feasibility study in 2023 on the next phase of underground production, while other feasibility studies are underway to extend open pit mining at Kennecott beyond 2032.
Rio Tinto is testing battery-powered electric vehicles at the underground site to cut carbon emissions, improve employee health and increase productivity, the company said.
“Trialling underground battery electric vehicles is an exciting step in our work,” Baatar said. “We look forward to seeing their potential for deployment.”
Rio Tinto boosted the Kennecott operation in 2019 by committing $1.5 billion in investments over six years. It aims to produce almost 1 million tonnes of refined copper between 2026 and 2032. The company acquired Kennecott in 1989. It had begun in 1903 as the Bingham Canyon mine and has been called the largest ever man-made excavation.
The open pit operation’s measured resources as of the end of 2020 were 128 million tonnes of 0.46% copper, 0.24 gram gold per tonne, 2.12 grams silver and 0.02% molybdenum (0.65% copper equivalent).
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'We are not afraid': Russians flee to Mongolia to evade Ukraine mobilisation www.reuters.com

ULAANBAATAR, Sept 27 (Reuters) - Thousands of Russians have fled into Mongolia across its northern frontier in a bid to evade conscription to Ukraine, putting further pressure on the government in Ulaanbaatar and its efforts to distance itself from the conflict.
Russians were forced to queue for hours at the border crossing at Kyakhta in the ethnic Mongol province of Buryatia, but said they had little choice after President Vladimir Putin announced a "partial mobilisation" of 300,000 soldiers aimed at repelling a counter-offensive in Russian occupied Ukraine.
"My country has started partial mobilisation and I think it is negatively affecting society," said one. "We waited a very long time at the Russian side of the border: about 16 hours."
Suren Bat-Tur, the owner of a guesthouse in the capital Ulaanbaatar that normally caters for backpackers, has also been helping his friends in Buryatia to escape the draft.
The guesthouse has filled up with Russians since Putin's mobilisation order, and Bat-Tur said he has already turned away dozens of requests for beds.
"I wanted to help them, it has been very difficult," said Bat-Tur. "Now they are looking for work in construction or agriculture so they have something to do while they are here."
One newly-arrived guest, who identified himself as Aleksey, said he crossed into Mongolia last weekend, leaving behind his wife and three children. He arrived at the border late at night on a tourist bus packed with other young Russians.
"There were a lot of young people, a lot of people trying to get away from Putin," he said.
Aleksey, 40, a construction worker, plans to stay in Mongolia until the situation in Russia improves, and said he would do whatever it takes to avoid the war.
"We are not afraid, but why do we have to fight in Ukraine, why?” he asked. "If other countries would attack Russia, we would fight for our country. But why are we going to Ukraine? For what?"
Though Mongolian citizens have demonstrated against Russia's invasion, the government itself has remained steadfastly neutral.
Almost entirely dependent on Russian oil and gas, landlocked Mongolia also stands to gain from a gas pipeline that Russia plans to build across its territory to supply China. read more
Last month Mongolian President Ukhnaa Khurelsukh met with Putin and Chinese President Xi Jinping in Samarkand to discuss plans for the pipeline, expected to begin construction within two years.
Last week, former President Tsakhia Elbegdorj urged Putin to end the conflict, adding that ethnic Mongolians in Russia have been used as "cannon fodder" and killed in their thousands in Ukraine.
"Since you (Putin) started this war, Russia has been drowned in fears, full of tears. Your mobilization brings oceans of suffering. Mr. President, stop your senseless killings and destruction," he said in an address shared on social media.
Reporting by Michael Kohn in Ulaanbaatar; Editing by David Stanway and Michael Perry
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Hyungji teams up with Nomin to advance into Mongolia fashion market www.pulsenews.co.kr

South Korea’s Fashion Group Hyungji said Monday it signed a MOU with Mongolia’s largest retailer Nomin Group to make an inroad into the Mongolian fashion market. The Korean apparel and accessories company owns 17 brands, spanning female fashion to golf clothes and shoes. Nomin is a major conglomerate in Mongolia that operates fashion and retail outlets across the nation, as well as construction and finance service firms. Nomin plans to introduce Hyungji’s shoes label Esquire and men’s clothing label Yezac first in the local market.

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Mongolian Prime Minister takes part in the farewell ceremony for Shinzo Abe www.news.mn

Prime Minister of Mongolia L.Oyun-Erdene takes part in the farewell ceremony for Shinzo Abe. The ceremony has held today (27 September) in Tokyo.
L.Oyun-Erdene made an official visit to Mongolia as part of the celebration of the 50th anniversary of diplomatic relations between Mongolia and Japan.
Shinzo Abe visited Mongolia three times. He emphasized the relationship and cooperation between Mongolia and Japan and made a valuable contribution to the mutual relations.
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Inflation in Mongolia soaring to 14.4 percent www.news.mn

This year, Mongolian Tugrik has fallen almost 15 percent against the US dollar. The declining currency has pushed up the cost of everyday goods for a country struggling to navigate global economic crisis.
According to the National Statistical Office, inflation in Mongolia has soared this year and reached 14.4 percent in August, compared with 9.5 percent during the same month in 2021.
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Mongolia the blue sky opportunity www.bm.ge

Mongolia is a frontier economy known as the land of blue sky and as the birth place of Chinggis Khan.
Mongolia is the 2nd largest landlocked country in the world, behind Kazakhstan. At present It is estimated that 600,000 of Mongolia’s 3.4 million people are nomads. Mongolia is an immense country created by chengis Khan in the 13th century.
Originally a nomadic Buddhist centre, the capital UB, became a permanent site in the 18th century. When the country fell under the control of the Soviets at the dawn of the 20th century, concrete buildings replaced yurts and the city was named Ulaanbaatar or at times Ulan Bator. Literally meaning “red hero”.
In 1911, Mongolia declared its independence, achieving it with help from the Soviet Union in 1921. Mongolia became a socialist state (the Mongolian People’s Republic) in 1924. Following independence and until the collapse of the Soviet Union in 1989, the country was a Soviet satellite state, and heavily reliant on economic, military, and political assistance from Moscow.
Mongolia, a nation bordered by China and Russia, is known for vast, rugged expanses and nomadic culture and the Mongol empire. In recent years the commodity story led to a Mongolia boom and increased interest from global investors.
According to the ADB Asian Development Bank, Mongolia’s economic growth is expected at 2.3% in 2022 compared to the 1.4% growth in 2021 and climb to 5.6% for next year 2023, supported by domestic demand, investment, and recovery in industry, agriculture and services.
OT Oyo Tolgoi mine completion and the Russian-Chinese natural gas pipeline will be major macroeconomic drivers going forward. At full production OT is estimated to provide and account for 30% of GDP for Mongolia.
Oyo Tolgoi is one of the world’s largest undeveloped copper-gold deposits located in the South Gobi region, Mongolia, and the project is managed by Oyo Tolgoi LLC, which is majority-owned by Rio Tinto
Oyo Tolgoi is one of the world’s largest undeveloped copper-gold deposits, located 80 kilometres north of the Chinese border in Khanbogd soum, South Gobi province.
Toronto Canada listed Turquoise Hill Resources Ltd. (TRQ) has been a barometer for global investor interest in Mongolia.
Much of what is happening in Mongolia resembles the early stages of the oil boom in Kazakhstan., only in a country with a much smaller population, and the effect and opportunity for investors could be of interest.
In 2011, Mongolia was the fastest growing economy in the world. GDP has increased from US$ 1 billion in 2001 to over US$ 11 billion just a decade later. Even compared to 2010 when I first visited the country, the Ulan Bator of 2022 is unrecognizable and has fintech IPOs on the local stock exchange. Soviet era apartments that once loomed large over the city are being outnumbered by WIFI posts in the street and new developments which include gated communities and multistorey office blocks and shopping centres like Shangri-La Ulan Bator.
Mongolia is 15 times larger than south Korea and south Korean budget airlines like Jeju Air and T’way Air have discovered Mongolia. Older Korean people have expressed a certain nostalgia for Mongolia, saying it reminded them of the times before south Korea became fully developed economic powerhouse.
Mongolia as an investment destination and local stock market MSE Mongolia stock exchange, is still a very low liquidity market and difficult to access for global investors. The country had a few international investment funds but those were most probably ahead of its time.
In geopolitics, Mongolia’s importance to the world will rise due to its being a small democratic country, geographically located next to and a buffer zone between the Russian federation and The People’s Republic of China.
Mongolia expects Russia to begin construction of the “Power of Siberia 2” gas pipeline through its territory to China within two years, as Moscow moves to connect its Europe-supplying gas fields to Asia for the first time. The war in Ukraine had clouded planning for the pipeline, Mongolia however is said to expect construction to go ahead.
The Power of Siberia 2 project has become critical to Russia as it faces the prospect of losing Europe as a market for its gas following its invasion of Ukraine and accusations it has “weaponised” supply to create a price crisis. Energy industry executives expect the timeline to accelerate due Moscow’s souring relations with the West over the war in Ukraine and the subsequent shrinking European market for its key export.
Construction of a Russian-Chinese natural gas pipeline transiting through Mongolia will begin in 2024 and is expected to go online in 2030.
MNT - The Mongolian Tughrik is the currency of Mongolia and commercial banks pay 10% to 12% on local currency deposits. Khan bank the largest Mongolian bank and considered sovereign risk is planning and preparing for an IPO on the MSE. (Mongolia stock Exchange). Analysts estimate Khan Bank of Mongolia ROE (Return on Equity) at over 20%
The country and central bank Mongol Bank maintains capital controls, limiting the amount of tugrug allowed out of the country, as well as how much can be converted into foreign currency.
The currency floats freely and has seen its value erode over the past decades relative to major world currencies. As of the first half of 2022, 11 commercial banks are operating in the market.
Mongolia will probably seek to refinance its $500m bond maturing next year; nation has taken efforts to preserve market access, such as not asking for debt relief under a G-20 initiative to avoid downgrades by rating companies. The ruling party’s victory in Mongolia’s parliamentary elections this week is considered conducive for policy continuity and may lead to another IMF funding program for the strategically important country and frontier market.
Rainer Michael Preiss is Partner & Portfolio Strategist at Das Family Office in Singapore.
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Coal price renaissance: how long can it last? www.mining.com

Over the last year and a half, the renaissance of coal – both kinds – has been gobsmacking.
No one saw coal prices of $400 to $600 per tonne coming, including those in the coal industry.
“If, a year ago, fifteen months ago, you had said to people thermal coal could be $440, and coking coal could be $600, they’d call the ambulance and recommend a nice doctor,” Neil Bristow, managing director of H&W worldwide Consulting, said Thursday at a recent Coal Association of Canada conference.
“Who would believe it?”
While Russia’s invasion of Ukraine has roiled energy markets and driven up coal prices, the reality is that thermal coal prices had been surging months before the invasion, as Europe was already in a self-induced energy shortage and resorting back to coal power.
Five or six years ago, thermal coal sold for about $60 to $80 per tonne, Bristow said. Even before Russia invaded Ukraine, thermal coal prices had soared to around $200 per tonne.
“The fundamentals that caused those prices to increase in Q3 and Q4 of 2021 are still there, and they’ve only been exacerbated by the sanctions on Russian coal,” said Ernie Thrasher, CEO of Xcoal Energy and Resources.
Never in Bristow’s lifetime has he seen thermal coal (burned to produce power) worth more than metallurgical coal, which is used to make steel, but it is now.
Metallurgical coal (also called coking or steelmaking coal) briefly touched $600 per tonne, Bristow said, but has since settled down to about $270 per tonne. That’s still a high price, but less than thermal coal at the moment, which is well above $300 per tonne.
The usual market forces of supply and demand that would normally see producers responding to high prices with increased production simply isn’t happening with coal.
In the U.S., the coal mining industry is half the size it was a couple of decades ago, and simply can’t suddenly reverse coarse. Australia’s coal production peaked in 2016 and it seems unlikely it can respond to the sudden demand for thermal coal either. B.C. is a major producer and exporter of metallurgical coal, but Canada exports little if any thermal coal.
Xcoal estimates the UK and Europe alone will need to find 47 million tonnes of coal that used to come from Russia. It’s unlikely to come from the U.S.
“There’s just not much the U.S. can do,” Thrasher said. “We’ve basically dismembered our coal industry.”
Even if American coal mines could increase production, there is limited coal terminal capacity for exports, which is why coal produced in Montana and Wyoming is shipped through B.C. export terminals. And right now, one of those terminals — Westshore — has been paralyzed by a strike.
“There is just no elasticity in the supply chain that’s allowing people to respond to these prices, and the old adage of the best thing for high prices is high prices is not holding true,” Thrasher said.
In total, Xcoal estimates the global coal supply gap at 96 million tonnes.
“These high coal prices are occurring at a time when the Chinese economy is just dead flat on its back,” Thrasher added. If China’s economy were to suddenly recover and grow, that would put even more pressure on both thermal and coking coal prices.
“Who can supply 96 million tonnes to fill that gap?” Thrasher wondered. “It’s probably only China and India. There’s just not a lot of other countries in the world where there’s the ability to produce the coal that needs to fill this gap.”
As for steelmaking coal, which is B.C.’s second most valuable export, a global recession might cool demand and temper prices somewhat. But Bristow predicts prices will remain high over the next few years, as there simply not enough new metallurgical coal mines being built.
“My models do not show enough coking coal to meet the demand in the world after about 2027, 2028,” Bristow said. “We desperately need new mines.”
“I’m going to be bold and say it will not stay $400 or $500 a tonne for very long,” Thrasher said of coking coal prices. “But I think the days of seeing sub-125, 150 dollars per metric tonne of coking coal for any period of time are in the rear-view mirror, and it’s because the coal simply is not being produced.”
Thrasher said he can envision stagflation resulting from the shortage of coal, if there is a global recession.
“If we get into a major global economic slowdown, it certainly is going to put a damper on our products,” Thrasher said. “The question is, if you go back and look at those supply shortfalls, will a 5% global economic slowdown be enough to solve the problem if you’re 10% short in energy supply? You basically have a stagflation environment where the global economy is crashing but you still need energy and the energy prices stay high.
“It will affect thermal more than coking coal. It could be something we haven’t seen in 40 or 50 years.”
(This article first appeared in Business in Vancouver)
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