For the very first time, discussions have begun to take place for establishing a hydropower plant in Mongolia with the investment of private entities. The plant in question is the Chargait Hydropower Plant that is currently being planned to be built near one of the largest rivers of Mongolia - the Delgermurun River located 28 km from Tosontsengel soum, and 50 km from the centre of Khusvgul aimag.

However, the Chargait HPP project is not a completely new project that was recently launched. Corresponding studies began to be carried out in 2008, and its feasibility study was conducted by Mongolian scholars in 2012. After five years in 2017, the Energy Regulatory Commission of Mongolia issued the special permission for constructing the hydropower plant, and the Ministry of Environment and Tourism also did a general assessment for the plant. As 13 years have already passed while making contact with investors and discussing cooperation with construction companies, it became necessary to conduct a new feasibility study. Currently, the ‘Chargait Hydropower Plant’ company is working to have the project acknowledged by international financial organisations.

Delgermurun River - Tumurbulag soum, Khuvsgul aimag

With a capacity of 24.6 megawatts, the hydropower plant is expected to have a significant role in supplying energy for not only the local area, but also in the Central Energy System. By operating at only half of its full capacity, it will be able to fully supply the electricity demand in Mongolia’s most populous aimag - Khuvsgul, explained the project team.

As the country’s population continues to grow rapidly, the issue concerning the supply of energy from a reliable source is becoming that much of an important issue. Mongolia is considered as one of the countries with energy systems that are heavily reliant on coal. The energy sector produces two thirds of the greenhouse gases being produced in the country, which also has an impact on public health due to its contribution to air pollution. It is apparent that the aforementioned statistics will continue to grow if we are not able to take the correct step by finding an environmentally friendly solution. And it is for this exact reason that special attention needs to be paid to the renewable energy sector.

Currently, the country produces 80 percent of its demand for electricity, while importing the rest from its two neighbours. Over 90 percent of the domestically produced energy is made up of thermal power plants that run on coal. In contrast, energy produced by hydropower plants has yet to make up a single percent.

Alongside making its own contributions to domestic energy production, the Chargait Hydropower Plant will play a crucial role in having a positive effect on local infrastructure, increasing job opportunities, reducing greenhouse gases, and in keeping ecological balance and rehabilitation. By storing flood water partially or fully, it also reduces the potential danger of flooding and creates a more favourable weather condition for the area as the level of humidity will increase due to the reservoir.

Location of the Chargait Hydropower Plant

Aside from becoming a global trend, reducing coal-based energy production has become a part of the development policies for various countries. And it is good news that private entities have begun to make their contributions to diversifying energy production in the country. Works to attract investors to the Chargait Hydropower Plant project and select contractor companies specialised in the field are currently underway.

A part of the plan to fully supply the domestic demand for energy and eliminate the sector’s dependence will be met following the launch of the Chargait Hydropower Plant’s operations. Currently, 11 small hydropower stations are operated during warmer seasons due to weather conditions, and two medium-scale hydropower plants - Taishir Hydropower Plant and Durgun Hydropower Plant are producing energy within its capacity all-year round.

Included in the country’s plans for development, the Chargait Hydropower Plant will help balance the load of the ever-increasing electricity demand for 60 years according to currently available studies.

To reach the objective of reducing greenhouse gases by 14 percent by 2030, Mongolia is paying a fair bit of attention to replacing the current method of coal-based energy production with renewable energy. One of the top solutions for producing energy without the emission of greenhouse gases is hydropower plants. And for this exact reason, the Government of Mongolia has announced that the construction of energy production structures based on nuclear energy and hydrogen will be supported by state policy. In fact, the government will implement a comprehensive policy supporting the launch of large-scale hydropower plants and increasing the sector’s role in the economy in order to fully supply the domestic demand for energy. Each year, the country spends over MNT 400 billion on importing energy. The mining company, Oyu Tolgoi alone sources power amounting to USD 110-120 million from China.

Considering the ever-increasing energy consumption as well as its economic impact, many sources of energy production are required for Mongolia. With all thermal power plants based on raw coal, and a large percentage of households in the capital city using refined fuel for heating, it is absolutely necessary for Mongolia to diversify its energy sources. On top of the significant imbalance between the production capacity and demand for heating and electricity, the current situation with thermal power plants having to halt operations time and time again demands the establishment of new energy sources. Attracting foreign investment and fully supplying the domestic demand - the renewable energy sector also needs to have a long-term plan for exporting energy. And a part of that plan would be realised with the implementation of the Chargait Hydropower Plant project.

As of today, 20.2 million dams (72.4 percent of a total 27.9 million) have delivered offspring nationwide, with a survival rate currently at 99.1 percent.

The offspring delivery rate is at 80.9 percent in the western region, 76.1 percent in the Khangai region, 67.0 percent in the central and 69.5 percent in the eastern region, reports the Ministry of Food, Agriculture and Light Industry.

Rio Tinto Fer et Titane (RTFT) announced Friday it has produced a first batch of high purity scandium oxide at its commercial scale demonstration plant in Sorel-Tracy, Quebec. This makes RTFT the first North American producer of the critical mineral, used in solide oxide fuel cells and in aluminium alloys.

RTFT has completed commissioning activities, and is now focusing on production ramp up to bring the plant to its nameplate capacity of three tonnes of scandium oxide per year, representing approximately 20% of the global market.

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The plant uses an innovative process developed by RTFT to extract high purity scandium oxide from the waste streams of titanium dioxide production, without the need for any additional mining.

The company said it is also considering near-term expansion options to increase production capacity in line with market demand.

“We are very proud of this first production of scandium oxide. This is a key milestone in the development of a secure supply of scandium, demonstrating our ability to de-risk the global supply chain for this critical mineral,” Rio Tinto Iron and Titanium managing director Stéphane Leblanc said in a media statement.

“With this breakthrough process creating value from waste, Rio Tinto Fer et Titane’s ambition is to become a key supplier in the global scandium market,” said Leblanc. “Our employees brought this project from the drawing board to commercial demonstration in less than two years.”

Scandium oxide is used to improve the performance of solid oxide fuel cells, which are used as a power source for data centres and hospitals, as well as in niche products such as lasers and lighting for stadiums or studios. It is also used to produce high-performance aluminium-scandium alloys for the aerospace, defence and 3D printing industries.

Russia’s Ministry of Industry and Trade on Friday published a list of goods allowed for parallel import into the country. The mechanism, which will circumvent the Western embargo on the export of goods to Russia by importing them from third party countries, will become effective on May 6.

The list includes 56 groups of goods required for the industry and for consumers. Customs officers will have to check the TN VED codes (commodity nomenclature for foreign economic activity) and brand names with the order.

The list includes plants, pharmaceutical products, and cosmetics. It does not cover certain brands, such as Garnier, L’Oreal, Maybelline, NYX, Lancome, Valentine, Prada, and others.

Parallel imports of apparel, headgear, footwear, fabrics, and furs and leather goods have been allowed without any limitation by brands.

The list also includes certain car components and spare parts and almost all foreign car brands like GM, Chevrolet, Mitsubishi, Renault, Tesla, Honda, Nissan, Land Rover, Mercedes-Benz, BMW, Volkswagen, Skoda, Audi, Toyota, Lexus, Suzuki, Volvo and others.

Among other items allowed for import are musical instruments, airport equipment, sound recording and TV equipment, boats, and railway locomotives.

According to the head of the ministry, Denis Manturov, the list will be adjusted once a quarter or every two months. It can either expand or narrow depending on the decisions of foreign companies to work in Russia, he said.

In March, Moscow authorized retailers to import products from abroad without the trademark owner’s permission. The decision followed global brands halting sales or stopping exports to Russia due to pressure from their governments to comply with sanctions.

Prime Minister Mikhail Mishustin then clarified that “parallel imports” were needed to ensure that certain goods could continue to be shipped to Russia.

Steppe Gold Limited (TSX: STGO) (OTCQX: STPGF) continues its ramp up of production in Mongolia following the recent restart in March with gold production in two pours in April totalling approximately 3,350 oz (March 2022, 1,532 oz).

Reagent shipments continued uninterrupted in April and the process of restocking the reagent storage facility is ongoing.

Mining and stacking activities are on plan for the month with Cell 4 stacking nearly complete. The final cell, #5, of the first lift, will be complete by late summer, after which stacking of the second lift will commence. The new crushing unit will be operational in the summer, allowing acceleration of stacking activities.

President and CEO of Steppe Gold, Bataa Tumur-Ochir, said mining activities continued at planned rates with hauling of high-grade blast material at ATO 1 and ATO 4.

He also confirmed recent site visits by qualified persons and consultants as optimisation work on the Phase 2 Expansion continues, to include further drill work and modelling of mining scenarios.

“We are very pleased to report continued ramp up of production at the ATO Gold Mine. All activities at site are running well and we look forward to a successful year of gold and silver production, and regular updates on our very exciting Phase 2 Expansion,” Bataa Tumur-Ochir commented.

The Steppe Gold team recently celebrated the fourth anniversary of our IPO on the TSX. In aspecial message, our CEO, Bataa Tumur-Ochir, congratulated the Steppe team and expressed sincere gratitude to the company’s partners and shareholders for their support. For further information please visit: https://steppegold.com/

The Bank of Mongolia said Wednesday that it has purchased 3.8 tons of gold so far this year, reporting a decrease of 453 kg compared to the same period last year.

Due to the COVID-19 pandemic and the Russia-Ukraine conflict, Mongolia's forex reserves fell to 3.3 billion U.S. dollars in mid-April, down 1.2 billion dollars from the end of 2021, according to the central bank.

It purchased 20.9 tons of the precious metal last year and plans to buy at least 24 tons of gold in 2022 to increase the country's forex reserves.

Central banks typically hold gold as part of their foreign exchange reserves because of its long-term historical returns and high liquidity.

Elixir Energy Ltd (ASX:EXR) is working hard on the coal bed methane (CBM) exploration/appraisal program underway across its 100%-owned Nomgon IX CBM production sharing contract.

The company recently finished drilling the Tim-2 appraisal well – a follow-on from the successful Tim-1S exploration well drilled earlier this year.

Tim-2 well drilled

Tim-2 was drilled to a total depth of 1,020 metres – the deepest well Elixir has drilled in Mongolia to date. It logged 3 metres of coal and 5 metres of silty coal.

Localised faulting is the reason for the decrease in coal thickness from Tim-1 and Elixir will now integrate the Tim-2 results with geological mapping, age-dating and potentially new seismic to better define this coal-bearing sub-basin.

Newly hired drilling contractor Ellecohr LLC has recently spudded its first well for Elixir, Yangir-4, an appraisal well in the previously identified coal-bearing Yangir sub-basin.

Bulag Suuj-1S to spud later this week

The Top Diamond Drilling LLC rig that drilled Tim-2 has now mobilised to a new potential sub-basin in the west of the PSC and will spud the Bulag Suuj-1 well imminently.

Extended pilot production testing planned for mid-year continues to progress, with tendering for the civil works well advanced and a contractor expected to be hired shortly.

The company’s 2022 2D seismic acquisition program is proceeding as planned, with 223 kilometres, of a total of 322 kilometres, acquired to date.

Two rigs now operating

Elixir managing director Neil Young said: “The arrival of the Mongolian spring has allowed our multiple well program for 2022 to really accelerate and it is good to see two rigs now operating.

“Our pilot program – our and the country’s first – which is due to spud in mid-year – is on track.”

A decision to increase the minimum wage to MNT 550 thousand in 2023 was made at the meeting of the Tripartite National Commission for Labor and Social Concession held yesterday.

Thus, the minimum wage increased by MNT 130,000 or 31 percent from MNT 420 thousand. The decision will take effect from January 1, 2023.

There are about 1.1 million employees nationwide and 8 percent of them or about 80 thousand people earn the minimum wage.

Ever since I started my brand in 2002, I have been coming home to Mongolia to visit and spend time with the nomads who take care of the goats that give us cashmere yarns. Much has changed over the years, but one thing has remained the same, something that has been the same for centuries, is our nomads’ lifestyle and values. We worship and respect the land, sky, mountains and rivers through spoken words, Tibetan Buddhism, songs and dances.

My annual trips have now started to focus on nomadic communities who are working towards full sustainability and who are enrolled in programmes, such as the Sustainable Fibre Alliance (SFA), which have a long-term strategy of establishing full sustainability in the cashmere industry. Currently, the sustainability situation in Mongolia is not too bad, but it could deteriorate if we don’t act on it. It is important for me to support it, stay up to date with the challenges it faces and share our nomads’ inspiring stories.

On this trip, the temperature was -6C by day and -16C at night when I arrived in Ulaanbaatar, but the sky was clear blue, the air crisp and uplifting. We headed with my photographer Davaanyam, and videographer Khurlee, to Western Mongolia in a Jeep, armed with a gas cooker, enough coffee and snacks. Due to Covid, we heard rumours that most petrol stations might be shut in the remote areas, so we also brought extra petrol. Our plan was to travel from the capital to the far western areas of Mongolia, travelling 1,500km along the southern route and making our way back along the northern route, meeting nomadic communities on the way, experiencing the beauty of our country, travelling a total of 3,000km in seven days.

In Mongolia, you can visit any nomadic family on the road; their welcome and hospitality are legendary. The concept within the nomadic community is that humans face nature, so humans are allies. In nomadic culture, and not just among Mongolian nomads, people are very hospitable and spending time with them becomes an organic process.

This was the first time that I interviewed nomads on camera and took professional photographs of them. I asked them what earth and land means to them; what the most difficult thing and the most beautiful thing about being a nomad was; and what they felt was precious. Their answers ranged from family to land, to mountains and personal values.

We also asked them if they would like to ask something of our audience in the UK and worldwide in reverse, because I’m passionate about connecting people between the two ends of the cashmere production chain; the start being the nomads who are the most important part as they take care of these goats and the end being people who use cashmere products. We really want to connect them on a human level.

Depending on the season, nomads generally wake with the sun, which in the summer can be around 4am. The women usually wake first, light the fire, and warm up the ger so that it’s warm when the kids wake up. You can imagine in -30C it gets very cold. (The little girl, Nominsuvd, we were staying with was sitting in a T-shirt while we were there in cashmere jumpers and jackets – they are very tough.)

A ger, meaning ‘home’ in Mongolian, is a yurt and is made from wooden lattices forming a wall and thin wooden poles branching out toward the round crown at the top, that is suspended by two columns. This wooden base is covered in thick handmade wool-felt and cotton canvas and it’s all held together with hand-spun wool ropes. Nowadays many families have solar panels to charge their televisions and phones and so one sleeps in a totally EMF and electric pollution free home.

A ger is one of the most natural dwellings on earth, keeping in warmth in winter and maintaining coolness in the summer. It is portable, assembled or disassembled easily, and it’s beautiful in its simplicity of design and mobility. The Mongolian ger is registered by Unesco as an object of the world cultural heritage of mankind.

After a breakfast of milk tea with clarified butter and boortsog, Mongolian cookies (they are known as bawirsaq in the Middle East), the day starts by tending to the animals and milking the cows; depending on how many animals they have, it could take two hours in the morning. Then they let the livestock go out to pasture.

After a day out in the pastures, nomadic families feast on their own produce. Their diet consists predominantly of meat and homemade dairy products and for the last 200 years or so there has also been rice and root vegetables. There isn’t lots of it in their diet, but it is available from the province or village centres. From the beef to the mutton, the quality is amazing. It’s not just organic, but wild-roaming, herb-fed and the taste is so different. Just simply cooked meat with a bone broth, boiled potatoes, carrots and onions is absolutely delicious.

While modern nomads are online and mainly stay in touch via Facebook, their evening entertainment remains more physical interactive: chess, archery, musical instruments, and a game called shagai, which involves the small astragali bones of a sheep or goat, representing their five prized animals, Tavan Khoshuu Mal: sheep, horses, camels, cows and goat. And, of course, sharing riddles and poems and singing – the nomadic oral culture is very strong, and they speak beautifully.

Bedtime tends to be quite early, around 8pm, as they rise with the sun, which is the healthiest way. In the west, there is a rising awareness about circadian rhythms as a trend, but in Mongolia it is the way of life.

Nomadic kids start helping the family at an early age. When they are just four or five years old they are already riding horses and can help out when rounding up the herd. Around 35% of the population, or 1 million Mongolians, are nomads and it’s quite usual in a nomadic family for it to be passed on. My father was a nomad when he was born, but then he moved to a city.

It is not easy to be a nomad. When there is a tough winter with strong snowstorms or a dry summer with little rain, it can be very challenging. As a result, young nomads are attracted more to cities, but in cities it is tough for them because they have no education or specific professions applicable to an urban environment and can fall into poverty. They need support from the country, various organisations, and the entire cashmere consuming using people in the world. It’s sad if young nomads start giving up on nomadic culture because Mongolia, as one of the last remaining nomadic cultures, will change as we know it.

Being a nomad should not remain in the traditional way that it has worked for centuries. There are ways to support, inspire and learn from the modern nomads of Mongolia. Education and entrepreneurship can be part of being a nomad and could help young nomads being proud of who they are, like many generations of strong and proud nomads before them. That can help preserve this amazing nomadic culture and values, that the world could benefit from learning.

One special evening on this trip, we were welcomed into the home of Lkhaisuren and Uyanga – a young nomad couple – in Khovd Province, where we stayed overnight in their ger.

Going to sleep looking at the stars through their ger’s roof, with the sound and delicious smell of softly burning wood in a fireplace and waking up to the sweeping view of the valley was the most amazing experience of this trip. For nomads, the valley is their living room, a land with no fences and blue skies. Now, who would not want to experience that, and let the future generations to experience that too? As told to Scarlett Conlon

By Oyuna Tserendorj

The Mongolian government on Wednesday decided to allow South Korean tourists to visit Mongolia without a visa for up to 90 days until the end of 2024 after the visa-free regime comes into force on June 1.

The decision is part of the government's efforts to revive the pandemic-hit tourism sector and vitalize the economy by attracting more foreign tourists, the government's press office said in a statement.

Mongolia received a total of around 577,300 foreign tourists in 2019, hitting an all-time high, according to the Mongolian Ministry of Environment and Tourism. The Asian country aims to attract the same number of foreign tourists in 2022, the ministry said.

Currently, Mongolia's economy is largely dependent on export earnings from the mining sector. Developing the tourism sector is seen as the most reachable solution to diversify the country's mining-dependent economy.

It is estimated that at least 577,000 South Korean tourists will visit Mongolia in the next three years thanks to the visa-free regime.