Russian energy major Gazprom will stop the operation of second Siemens turbine, the company announced on Monday. As a result supply through the Nord Stream 1 pipeline will not exceed 33 million cubic meters per day from July 27, business daily Kommersant has reported, corresponding to 20% of the pipeline's capacity.

Gazprom says the decision to switch off the turbine was made based on its technical condition and the fact that it’s due for an overhaul.

A spokesperson for Germany’s Federal Ministry for Economic Affairs has reportedly said that there are no technical reasons to reduce gas supply via the Nord Stream 1 pipeline.

According to an earlier report by Kommersant, several of the nine turbines at the Portovaya compressor station are in need of repair. The paper notes that Gazprom has not yet authorised further repairs, and that one turbine took about three months to overhaul. The current licensing agreement allows Siemens Energy to accept five more turbines for repair before the end of 2024.

This follows a dispute between Russia, Canada and Germany over a Siemens turbine that had been sent to Montreal for repairs and was not returned on time due to Ottawa’s sanctions against Moscow. Gazprom cited the delay as the reason for a 60% reduction in gas flow to Germany last month. Canada eventually sent the part to Germany, where it is currently awaiting shipment to Russia. Gazprom said earlier on Monday that the paperwork it had received from Canada and Siemens regarding the shipment of the turbine did not clear up sanctions-related questions.

Last week, German Chancellor Olaf Scholz suggested that Berlin could no longer rely on Moscow when it came to gas supplies and said he wasn’t convinced by Russia’s statements that the repaired Siemens turbine that had been delayed was necessary for the full functioning of the Nord Stream 1 pipeline. Moscow rejected the claim on Monday, with the Kremlin spokesperson Dmitry Peskov saying that a decrease in the volume of supplies was due to technical problems resulting from Western sanctions.

Amidst increased geopolitical tensions and lingering pandemic effects, Mongolia, a small, landlocked state hosted three major international in-person events in June.

Khaan Quest, an annual multinational peacekeeping exercise, was organized at the Five Hills Peace Support Operations Training Centre. Over thousand military personnel from fifteen countries, including the United States, South Korea, Japan, and

India – those dispatched a large military contingent, exercised for peacekeeping deployments. At the same time, Mongolia hosted the first-ever Women, Peace and Security conference welcoming over 60 female peacekeepers from 30 countries as well as Jean-Pierre Lacroix, Under-Secretary-General for Peace Operations of the

United Nations. Then, in June 23-25, Mongolia organized the 7 th “Ulaanbaatar Dialogue” on Northeast Asian Security. Here we would like to explain why the Ulaanbaatar Dialogue (known as the UB Dialogue or UBD) is an important foreign policy endeavour for

Mongolia.

History of the Ulaanbaatar Dialogue

The UBD is a continuation of Mongolia’s multilateral foreign policy to welcome international participants to Mongolia and to be a part of the international community.

This policy had been disrupted during the Cold War when Mongolia had no choice to become the Soviet ally and its foreign policy had been dictated by the Kremlin. Even though during this time, Mongolia invited many newly independent small states of the

Asia Pacific Region in 1960s-70s to share its experience of the socialist bloc (CMEA) – aided economic development.

Also, Mongolia became a hub for the Asian Buddhist Conference for Peace from the 1970s. In the late 1980s, as the geopolitical tension among the great powers declined, Mongolia pursued a quite aggressive policy for offering itself as a dialogue venue for peace and cooperation in the Asia Pacific Region.

Building on this successful foreign policy to develop bilateral ties with China and ‘third neighbours’ – mostly developed democracies (or the Western countries) in 1990s, Mongolia began to make renewed efforts to offer the multilateral platform. In 2008, the Mongolian Institute for Strategic Studies along with the George Marshall Centre for European Security Studies organized a conference, titled “Ulaanbaatar as New Helsinki?” to promote Mongolia as a neutral venue for the regional security talk. Later, in 2013, the Pres Elbergdorj endorsed the ‘venue for multilateral dialogue’ idea and coined the UB Dialogue as a long-term foreign policy initiative to engage all Northeast Asian countries, including countries with hostile relations.

7th Ulaanbaatar Dialogue

After two years of disruptions due to the COVID19 pandemic, Mongolia hosted the 7th UB Dialogue – which is noted the first-ever in-person international dialogue in Northeast Asia. In several ways, this year’s dialogue was unique.

For one, North Korea was missing because of the pandemic and a lack of the virtual connection. In all previous dialogues, North Korean participation was important for many other participants, especially for Japan – who managed to organize a side bilateral meeting during the UB Dialogue, and many European participants. However, a well-known German expert on North Korea offered his insights on the DPRK.

Second, Russia’s participation in the dialogue was the hottest topic among international participants, some declined their participation, and some left during the Russian delegate’s speech. Many participants, including Mongolian speakers, were in agreement to end the hostility in Ukraine and to find a peaceful solution to ongoing military conflict.

Third, the inclusion of the youth speakers (as a main panel) was applauded by the majority of participants. This year, the UN Department of Political and Peacebuilding Affairs (DPPA) organized a youth panel by providing opportunities for youth representatives from China, Japan, Mongolia, and South Korea to present their views on regional peace and security with policymakers and scholars.

Fourth, the Business Council of Mongolia (BCM) and United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) organized sessions devoted to discuss the post-pandemic economic cooperation and power grid connectivity in the region. Finally, the host nation welcomed the participation from the Kyrgyz Republic and many other international participants from Europe; thus provides opportunities for Northeast Asian experts to share and compare their perspectives on regional cooperation.

In retrospect, the UB Dialogue is becoming a modest and unique regional venue for

policy-makers, academics, and youth exchange their views and hopes on Northeast

Asian matters. This year, the track one closed door meeting was hosted by the Ministry

of Foreign Affairs of Mongolia and this meeting was attended by senior foreign ministry

officials from thirteen countries, plus the United Nations. The security session is now

divided into two parts: the first session discusses challenges and the other searches

ways to promote the confidence building. The UNDPPA will continue to work with

organizers to have the youth session as an important part of the dialogue, where youths

from Northeast Asia and elsewhere could share their visions of region. The economic

sessions are now jointly organized by the BCM, a Mongolian non-governmental

organization, and USESCAP, in hope to make the economic aspects as critical part of

the UB dialogue. Overcoming its two-year interruptions, the UB dialogue revived and

appears to be on a narrow path to become an international conference on Northeast

Asian matters.

About Soyolgerel Nyamjav

Soyolgerel Nyamjav is the Head of the Centre for International Security at the Institute for Strategic Studies, National Security Council of Mongolia. Soyolgerel’s research focuses on security studies especially Mongolia’s security environment, geopolitical situation, Central Asian regional problems and regional multilateral mechanisms.

In accordance with the intergovernmental agreement of Mongolia and China on the Regime of the Mongolian-Chinese Border Crossings, the two countries agreed to have nine permanent operating auto road crossings, namely Bayankhoshuu-Uvdug, Zamyn Uud-Erlian, Khangi-Mandal, Gashuunsukhait-Gantsmod, Shiveekhuren-Sekhee, Burgastai- Laoemyao, Bulgan-Takashiken, Bichigt-Zuunkhatavch, and Khavirga-Arkhashaat. Today, seven out of nine crossings are operating normally.

As a result of working through diplomatic channels to restore freight transportation at the Bichigt-Zuunkhatavch and Khavirga-Arkhashaat road ports that were closed according to the proposal of the Chinese side due to the pandemic, the operation of Bichigt-Zuunkhatavch port, which was closed since August 22, 2021, was resumed and 200 vehicles stuck in China started being taking from July 22 this year. In addition, coal trucks will start crossing the state border, and an agreement has been reached with the Chinese side to further increase oil and other necessary export-import transportation.

The Institute of Geography and Geoecology of the Mongolian Academy of Sciences is carrying out the assessment of the ecological potential of the Baidrag River basin at the landscape level, and the development of measures for its proper use and protection.

The work is being carried out within the framework of the ‘Ensuring Sustainability and Resilience (ENSURE) of Green Landscapes in Mongolia’ project, which is being co-implemented by the Ministry of Environment and Tourism and the United Nations Development Program.

Within the scope of this project, a comprehensive study of physical geography, landscape, and surface water has been conducted in the Buuntsagaan Lake and Baidrag River Basin. The survey was conducted by the research team headed by Head of the Department of Physical Geography and Environmental Studies of the Institute of Geography and Geoecology S.Narangerel.

It was reported that there was little rain and drought in the basin, and some parts of the rivers, streams, and springs were running dry and cut off.

Xanadu Mines (ASX:XAM) is partnering up with China’s Zijin Mining Group, a global leading copper producer, to develop the Kharmagati copper-gold project in Mongolia’s Omnogovi Province.

That same province is home to Rio Tinto’s mammoth Oyu Tolgoi mine.

Xanadu recently published its keystone scoping study backing the project, encouraging the board to move to a pre-feasibility study expected for delivery in early 2024.

Worth noting, Xanadu and Zijin are bringing an ESG bent to the region. Xanadu has published a second sustainability report in the June quarter.

That report has determined a low environmental risk profile attached to the project.

It further notes the acreage is bolstered by existing and established infrastructure on-site; including rail, power transmission, and available water assets.

Come get ‘em Kharmagati

Since 2018, Xanadu has grown Kharmagati's resource to 8Moz of gold and 3Mtn of copper.

Currently, mineralisation remains open in all directions on-site and ongoing drilling is underway to further define mineral resources.

A four year payback is expected for the mine with initial capital expenditure valued at US$690m for an open pit development and associated processing infrastructure.

The internal rate of return for Kharmagati is tipped at 20% after tax across a thirty year mine life.

Zijin set to pour millions into project

Xanadu and Zijin formed the project partnership back in April this year.

Under an initial agreement, Zijin is to invest in Xanadu at the corporate and operational level.

It commenced this in April with the acquisition of 139m shares. Zijin has since picked up a 9.98% shareholding in the company.

Two further placements are slated in the near future, which will see Zijin increase its stake to a 19.99% interest—at the same time the partnership creates a 50/50 JV in Khuiten Metals, currently owned outright by Xanadu.

Khuiten Metals holds a 76.5% interest in the Kharmagati project; and Zijin will pay Xanadu US$35m for half of Khuiten.

While not related to Xanadu directly, it's worthwhile getting an idea of Zijin's international footprint. The map above locates all of Zijin's gold and copper projects around the world.

While not related to Xanadu directly, it's worthwhile getting an idea of Zijin's international footprint. The map above locates all of Zijin's gold and copper projects around the world.

Xanadu was a Market Index client at the time of publishing. All coverage contains factual information only and should not be interpreted as opinion of financial advice.

WRITTEN BY

Jonathon Davidson

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at jon@marketindex.com.au.

Ten financial actors with the most influence on the fossil fuel economy own 49.5% of potential emissions from the world’s largest energy firms, a recent study has found.

In a paper published in the journal Environmental Innovation and Societal Transitions, researchers from Canada, France and New Zealand take a deep look into the CU200, which are the 200 Carbon Underground firms that own 98% of global fossil reserves in the form of oil, gas, or coal.

Following their analysis, they found that the companies that could play a decisive role in helping de-carbonize the future are US-based investment advisors Blackrock, Vanguard Group, State Street Corp., Dimensional Fund Advisors, Fidelity Investments, Capital Group Company, together with India’s State Government and Life Insurance Corporation, as well as the Kingdom of Saudi Arabia and Norway’s Norges Bank.

Other players in the top 20 include America’s JPMorgan Chase & Co., Citigroup Inc., HDFC Asset Management, Geode Capital Management and the Bank of New York Mellon, India’s Adani, Gautam S., the Russian Federation and China’s Shaanxi Coal & Chemical.

“This shows us that both investors and governments can be at the forefront of change if citizens and clients urge them to de-carbonize,” Truzaar Dordi, lead researcher from the University of Waterloo, said in a media statement. “A concentrated number of investors with the potential to influence the trajectory of the fossil fuel industry is either a problem or an opportunity, depending on how you see things.”

America at the forefront

By region, the study shows that 60 firms on the CU200 are registered in the United States, followed by China, Canada, Russia, Australia, and India. These firms may trade on a different stock exchange than the country in which they are registered. By stock exchange, 61 companies are traded on a United States stock exchange, followed by China, Canada, Australia, Hong Kong, and Russia. In contrast, ownership distribution is skewed toward the United States, with 213 of 918 distinct direct and indirect shareholders with greater than 1% ownership in at least one of the fossil fuel firms in the sample based out of the United States.

“If they’re serious, capital markets can enable a low-carbon transition within the top coal, oil and gas reserve owners in the world,” Dordi said. “Recent pledges to reduce carbon exposure in investment portfolios and engagement with the fossil fuel industry indicate we may already be moving in that direction.”

The paper outlines specific ways the top 10 governments and private investment advisors can make changes that will have a transformative impact in the fight against climate change. Some recommendations include public disclosure of a scheduled phase-out of fossil fuel financing, an assessment of a portfolio’s exposure to climate risk in a 2°C world, and an alignment of investment portfolios with a 1.5°C scenario.

“Individually, reducing the demand for fossil fuels by driving and flying less and turning off the air-conditioner are great. We should keep doing that,” the researcher pointed out. “But we also need to reduce our production of fossil fuels, which these 10 actors can lead. Without them, we simply won’t have what it takes to meet our emissions targets and avoid catastrophe.”

In other words, the authors of the study believe that, through their influence on the functions of resource mobilization, capital markets have the potential to disrupt incumbent regimes and create enabling conditions for sustainability transitions.

A triumphant Ichinojo looked back on the many years since he boarded a flight to Japan from his native Mongolia along with another aspiring young sumo wrestler who would rise to the top of the sport.

On July 24, rank-and-filer Ichinojo finally got the better of yokozuna Terunofuji, his countryman and fellow passenger, to claim his first championship, which he had long sought since making his professional debut in 2014.

“It was indeed a long path until I won the title,” the maegashira No. 2 said at an online news conference on July 25.

Ichinojo, who is a hefty 192 centimeters tall and weighs 211 kilograms, captured the Nagoya Grand Sumo Tournament with a 12-3 record the day before.

Ichinojo and Terunofuji, the lone yokozuna, entered the final day of the 15-day tourney at the Dolphins Arena in Nagoya tied with 11-3 marks.

In an earlier bout, Ichinojo improved to 12-3 with a win against Ura, maegashira No. 3, putting the pressure on Terunofuji, who was competing in the final bout of the day.

Ichinojo, 29, avoided a playoff as the 30-year-old yokozuna lost to ozeki Takakeisho, ending with a 11-4 record.

After arriving in Japan in 2010, Ichinojo and Terunofuji attended Tottori Johoku High School in Tottori Prefecture, which is known for its strong sumo team, before they moved on to the professional ranks.

“This was my first time to compete with yokozuna Terunofuji for the championship,” Ichinojo said. “I had not fared well and could not outperform him for a long time. But I could this time and I am happy to pull it off.”

‘Nomadic Mongolia – 2022’ grand festival of intangible cultural heritage will be held on August 12-14, 2022 at the Gorkhi-Terelj National Park with aims to promote 362 elements of intangible cultural heritage.

To ensure the implementation of the measures and law set out in the cultural industry development policy, preparations are underway to organize the festival. The festival will be co-organized by the Ministry of Culture and the Department of Culture and Arts, government implementing agency.

At the festival, folk art performances and exhibitions of crafts will be organized by the inheritors from 21 aimags and capital city. In addition, several activities to be held such as competitions, creative cultural industry, trade fairs, dairy products and traditional cuisine fair, art performances by the inheritors of national intangible cultural heritage and children.

Intangible cultural heritage is the origin of the existence, creativity, and development of every nation, ethnic group, or community. It is an expression of the unique aspect of human life, behavior and development, aside from being an important factor that directly influences the civilizational and national security.

In this sense, preserving the intangible cultural heritage is considered as one of pressing issues faced by humanity, and it is still at the center of the world's attention.

The ‘Law on the Protection of Intangible Cultural Heritage’ states that intangible cultural heritage is acknowledged by communities, ethnic groups, and individuals as a part of their cultural heritage such as customs, form of expressing and depicting, traditional knowledge, methods, and its associated items including artifacts, instruments, works of art, and cultural spaces.

Mongolia joined the UNESCO Convention on the Protection of Intangible Cultural Heritage in 2005, and has an obligation before international community to protect the intangible cultural heritage on its territory.

A total of eight heritages of Mongolia have been registered in the UNESCO Representative List of Intangible Cultural Heritage of Humanity so far.

1. Morin Khuur (horse head fiddle 2008)

2. Mongolian long song (2008)

3. Naadam festival (2010)

4. Art of singing – khoomei (2010)

5. Eagle hunting or falconry (2010)

6. Traditional craftsmanship of ger and its associated customs (2013)

7. The knuckle-bone shooting (2014),

8. Traditional technique of making airag in khokhuur (2019).

Seven elements have been inscribed on the List of Intangible Cultural Heritage in Need of Urgent Safeguarding:

1. ‘Mongolian epic’, Mongolian oral epic (2009)

2. ‘Biyelgee’, Mongolian folk dance (2009)

3. Tsuur (end blown flute) performance (2009)

4. Folk long song performance technique of Limbe performances-circular breathing (2011)

5. Mongolian calligraphy (2013)

6. ‘Coaxing Ritual for Baby Camels’ (2015)

7. Ritual of worshipping mountain (2017)

8.

As part of the implementation of the 2003 UNESCO Convention for the Safeguarding of Intangible Cultural Heritage, the President of Mongolia issued a decree on 'Promotion of Mongolian Heroic Epics', and the Government of Mongolia approved the ‘National program to safeguard intangible cultural heritage’ and a set of measures of the protection.

Furthermore, numerous events were organized such as the International Symposium and Festival "Epos of Central Asia-II" (2013), the project ‘Preservation and revival of Mongolian epic traditions’ (2013-2016), a series of combined theoretical and practical trainings in within the framework of the project ‘Strengthening the capacity of Mongolia for the convention implementation’ (2012-2016), the project ‘On inheriting folk long song performance technique of Limber Performers-Circular Breathings’ (2019-2022) and others.

Taking into account the uniqueness of our nomadic culture, the intangible cultural heritage in Mongolia is divided into seven categories: Mother language and oral traditions; Folk art; Traditional festivals, rituals, ceremonies and games; traditional knowledge on nature and the universe; Mongolian wisdom; Mongolians' traditional practice in animal husbandry; and Mongolian crafts.

With a purpose of preserving the intangible cultural heritage, promoting its inheritors, developing talents, promoting and disseminating it to the public, the Law on the Protection of Cultural Heritage states that the National Festival of Intangible Cultural Heritage ‘Nomadic Mongolia’ shall be organized every three years.

HONG KONG, July 25 (Reuters) - China's population has slowed significantly and is expected to start to shrink ahead of 2025, the state backed Global Times reported, citing a senior health official.

Birth data released late on Sunday showed that the number of new births in 2021 was the lowest in decades in several provinces.

The number of births in central Hunan province fell below 500,000 for the first time in nearly 60 years, the Global Times said. Only China's southern Guangdong province has had more than 1 million new births, it said.

China is battling to reverse a rapid shrinkage in natural population growth as many young people opt not to have children due to factors including the high cost and work pressure.

China's population is expected to start to shrink in 2021-2025, the Global Times said, citing Yang Wenzhuang, head of population and family affairs at the National Health Commission.

A change in China’s laws last year to allow women to have three children has not helped, with many women saying the change comes too late and they have insufficient job security and gender equality.

Reporting by Farah Master; Editing by Stephen Coates

Construction work for oil refinery consists of four engineering-procurement – construction (EPC-1,2,3 and 4) phase projects, and India’s state-owned company, ‘Engineers India Limited’ is monitoring the performance of the EPC-1, which is a complex project of industrial non-technological facilities, construction site infrastructure, and road and water supply system, in accordance with international norms and standards, reported the Ministry of Mining and Heavy Industry.

‘JMC Projects’ LLC of India as a general contractor of the project and engineers and technical experts of 21 subcontracting companies of Mongolia or a total of 641 people with 250 pieces of equipment are working according to a plan to hand over the project on November 29, 2022.

The EPC-1 project has four main stages: preparatory work, blueprint development, procurement, and construction, and the overall project is progressing at 63 percent. In detail, the construction of water storage tank is running at 85 percent, first aid and hospital building -80 percent, office and training center – 45 percent, cafeteria -84 percent, laboratory -85 percent, warehouse -45 percent, firefighting unit’s facility – 52 percent, repair facility -35 percent, drainage pipe-30 percent, floodwater harvesting area -82.5 percent, electric power transmission line-90 percent as well as others.

A tender for the selection of the general contractor for the EPC-2 unpatented technology facility works was announced on June 6, 2022 on an expedited basis and proposals will be received on August 16, 2022.

Moreover, a tender for the selection of the general contractor for the EPC-3 –construction of power plant of the Oil Refinery was announced on May 04, 2022 and proposals were received on July 04, 2022.

In addition, license holders for patented technology works of EPC-4 have been selected. Relevant contracts have been established with leading corporations of the petrochemical industry, such as KT - Kinetics Technology, UOP Honeywell, and Axens Solutions.