Mongolia’s economy is projected to grow by 5.8 percent in 2023 and 6.2 percent in 2024 as the mining sector expands, private consumption recovers, and fiscal expansion stays strong, according to the World Bank’s latest semi-annual Mongolia Economic Update.

In the first half of 2023, Mongolia’s economy exhibited robust growth, primarily propelled by the mining sector. Early indicators suggest that this growth trend has persisted in the latter half of the year. Nevertheless, growth has been markedly uneven, with the non-mining sector trailing behind, underscoring the economy’s heavy reliance on the mining sector and its heightened exposure to mining sector cycles.

In the medium term, economic growth is expected to accelerate, averaging above 6 percent in 2025- 2026, driven by a substantial increase in mineral production as Oyu Tolgoi’s 2023 mining production is anticipated to more than double by 2025.

Yet, significant downside risks persist. These risks encompass lower mineral exports prompted by slower-than-expected growth in China, as well as uncertainties on coal offtake agreements. Additional risks include inflationary pressures stemming from both further domestic fiscal expansion and heightened geopolitical tension in the Middle East, potentially resulting in higher oil prices.

An analytical chapter focuses on Mongolia’s trade opportunities in digital services, which could help diversify the country’s economy. Mongolia’s strongest opportunities to bolster its digital services growth and trade are in software development, telecommunications, and digital marketing. However, despite progress in telecommunications and internet penetration, considerable constraints remain in digital infrastructure, including slow network speeds, cybersecurity vulnerabilities, and a shortage of highly skilled professionals.

“While the ongoing surge in mining exports is bolstering macroeconomic conditions, the sustainability of these positive trends calls for continued reforms aimed at diversifying the Mongolian economy and enhancing its resilience to commodity price cycles,” said World Bank Country Manager for Mongolia Taehyun Lee.

The report emphasizes the need for fiscal moderation to mitigate inflationary pressures and enhance macroeconomic stability, thereby stimulating private sector investment and bolstering global market confidence. In addition, the report recommends improving social protection efficiency to safeguard household consumption without spurring inflationary pressures.

Ivanhoe Mines (TSX: IVN) said on Monday it plans to kick off exploration activities in Angola next year as it has secured greenfield prospecting rights over an area the size of Switzerland for an initial period of five years.

The Canadian miner has been granted 22,195 square kilometres of rights for exploration in the country’s Moxico and Cuando Cubango provinces, covering what Ivanhoe calls “highly prospective” greenfield copper exploration ground.

Activities are expected to commence following team mobilization in early 2024, the company said.

Ivanhoe can extend the permit to a maximum of seven years, but it will have to relinquish 50% of the prospecting rights at the end of the initial period of five years.

“Our goal is to make Angola a globally significant producer of strategic minerals that our planet so desperately needs, for many generations to come,” Ivanhoe founder and co-chairman Robert Friedland said in the statement.

Limited prior exploration has been conducted in the greenfield area granted to Ivanhoe to date. Much of the permitted land is covered by Kalahari sand and Karoo volcanics, similar to the Kamoa-Kakula licenses in Democratic Republic of Congo (DRC), which makes conventional exploration techniques less effective.

Anglo American (LON: AAL) and Rio Tinto (ASX: RIO) are also undertaking greenfield exploration activities in the region.

Ivanhoe has committed to an initial exploration budget of $10 million in Angola. It said its exploration team will be deploying the expertise developed from its discoveries of Kamoa-Kakula and the Western Foreland in the DRC.

The company has achieved success at its Kamoa-Kakula complex, from which it began exporting copper in mid-2021. Ivanhoe currently ships output from the mine by rail via the Lobito Corridor that crosses Angola, ending at the Atlantic Ocean.

Ivanhoe is also working to restart the historic high-grade Kipushi zinc mine in the DRC, and is undertaking exploration at the Western Foreland project in the country.

In South Africa, it is advancing construction of its 64%-owned Platreef palladium, rhodium, nickel, platinum, copper and gold project.

Mongolia will start building a metro line in its capital Ulaanbaatar next year, according to Chinese news agency Xinhua.

A senior Mongolian official said the aim was to reduce congestion in the city.

Borkhuu Delgersaikhan, a cabinet member with special responsibility for improving traffic flow in the capital, said: “For the first time, the government made a decision to build a metro line in the capital. The construction of the 22km line from the east to the west is set to begin in May next year and is expected to be completed in 2027.”

The project has been on the drawing board since 2012, when it was approved by the Mongolian government.

The project was to be financed by loans from Japan among others, and Japan International Cooperation Agency conducted a study in 2013 on how the project could be implemented.

In the event, the project was put on ice in 2015. In 2018, planning was resumed, at which time the cost was expected to be around $1.5bn.

For many years, traffic congestion has been a pressing issue in the city, which was originally built to have 500,000 residents, and is now home to around 1.3 million. Currently, buses are the most popular means of public transport in the capital.

The management team of Ministry of Environment and Tourism met with the researchers led by T. Odbayar and exchanged views on the conservation of Gobi bears, the UB Post reports.

The experts of the Ministry said they are receiving and consolidating proposals for the approval of the government's resolution to reduce the problems faced by the living environment of wild animals, to expand their habitat, to ensure the sustainable growth of the population, and to make them known at the national and international levels.

2024 is declared as the "Year of Mazaalai Protection" by the order of the Minister of Environment and Tourism. 1 billion tugriks have been budgeted for the protection of Gobi bears next year. The work of developing a plan for the protection of the animals has also been started.

It is important to ensure the participation of researchers in the conservation of Gobi bears and to consolidate research and statistics in this area. The parties agreed that there will be conditions for developing a conservation plan based on science. In addition, visiting researcher from Boise State University, USA, T. Odbayar is working in Mongolia with the focus on improving the protection of Gobi bears.

China is going big on renewable power out west, with plans to carpet parts of the Gobi desert in solar panels and wind turbines over the next few years. We’re talking 455 gigawatts of clean energy capacity, a buildout so huge it will be visible from outer space.

For a neighboring country like Mongolia, this amounts to a seismic shift happening right on the doorstep. Mongolians have grown used to exporting coal north to China’s power plants and factories.

But Beijing’s new energy priorities could seriously dent demand for Mongolian coal. By 2030, those sprawling renewable energy bases are projected to supply over a third of China’s electricity needs.

So where does this leave Mongolia? With some skilled policy maneuvers, Ulaanbaatar has an opportunity to hitch the economic future to Asia’s renewables juggernaut.

Mongolia boasts many of the minerals – copper, lithium, rare earths – needed to manufacture wind turbines and solar panels. With the right investments in processing factories and supply chain links, Mongolia could become a key supplier to China’s renewable Gold Rush.

Geographically too, Mongolia is blessed by its position next door to hundreds of gigawatts of emissions-free power. Ulaanbaatar can now import cheap renewable electricity from China instead of building more polluting coal plants. And get this: Importing Chinese solar power may soon be cheaper for Mongolia than mining its own coal!

But if Mongolia’s leadership fails to skillfully navigate this energy transition, the country risks heightened dependence on China as coal exports founder. Beijing may use its economic leverage to pull Ulaanbaatar closer into its orbit. What’s clear is that for better or worse, Mongolia’s fate looks increasingly tied to the greening of western China’s deserts.

A meeting of the Subcommittee on Trade and Investment under the Mongolia- European Union Joint Commission was held online on November 23, 2023.

During the meeting, the EU side announced that the EU’s Generalised Scheme of Preferences, designed to support good governance and sustainable development in developing countries, was extended until 2027.

The parties highlighted the importance of the GSP+ in increasing Mongolia’s exports through duty-free access of 7200 types of products to the EU market. At the meeting of the Sub-Committee, the parties discussed the current economic situation, trade policy, and investment environment.

Foreign Minister Battsetseg Batmunkh participated in the opening ceremony of the Honorary Consulate of Mongolia in Toronto on November 21 during her official visit to Canada, Montsame reports.

Consul Generals from other countries in Toronto, Honorary Consuls, business delegates, and Mongolians were present at the ceremony. The participants were greeted with performances of Morin Khuur (horsehead fiddle), traditional Mongolian long song, Khoomii (throat singing), and praise.

Honorary Consul of Mongolia in Toronto, Ontario, Bryan Wilfert assumed his office in July 2023. In addition to Ontario, Mongolia has Honorary Consuls in the Canadian provinces of Quebec, Alberta, and British Columbia.

Foreign Minister Battsetseg Batmunkh also met with Mongolian citizens residing in Ottawa and Montreal provinces on November 20, 2023.

The Foreign Minister exchanged opinions with citizens and introduced the Mongolian government's policy and activities for Mongolians living abroad. Batstsetseg Batmunkh presented the textbooks, guidebooks, and other related books to Mongolian schools in Canada.

Approximately 2,300 Mongolian citizens live in Canada, and the majority of them reside in the country's largest cities, including Ottawa, Toronto, Montreal, Calgary, and Vancouver.

The National Library of Mongolia (NLM) houses over three million books and publications. Over one million volumes of the collection, in the Mongolian, Tibetan, Chinese, and Manchu languages, are rare and valuable books, sutras, and manuscripts, Montsame reports.

Over 2 million pages of sutras in Tibetan language have been digitalized since 2018 as part of a project jointly implemented by NLM and the Asian Legacy Library.

As a global non-profit organization, the Asian Legacy Library provides a combination of technology, scholarship, and partnership to locate, digitally preserve, and safeguard the priceless cultural wisdom literature of the world. The Asian Legacy Library currently partners with seven preservation operations located across Mongolia, Nepal, and India.

The progress of the ongoing project was introduced at NLM on November 23, sharing the technology and experiences.

An interview with Shannon Stowell, CEO of Adventure Travel Trade Association

- Could you tell us the purpose of your visit? What are the possibilities of cooperation between the Adventure Travel Trade Association (ATTA) and Mongolia?

-Firstly, I would like to express gratitude to the Government of Mongolia and the Minister of Environment and Tourism of Mongolia Bat-Erdene Bat-Ulzii for successfully organizing the "Years to Visit Mongolia" to develop tourism. I'm interested in learning the role and impact of adventure tourism on nature conservation as part of the Sustainable funding program for nature conservation jointly carried out by the Ministry of Environment and Tourism of Mongolia and the Nature Conservancy (TNC) NGO. A classic conservation approach of adventure tourism focuses on locals, in other words, it is community-based. Adventure tourism plays an important role in supporting the economy by adding value to natural resources and it is comprised of nature and culture with vigorous activities as complex. In this sense, adventure tourism benefits the local people and the local economy much greater than mass tourism.

-What makes adventure tourism different from mass tourism?

According to a study conducted a few years ago, the benefits from mass tourism for local communities make up 15 percent of the total money spent there, while adventure travelers spend 70 percent for locals. Adventure tourists stay at local inns, eat in local restaurants, and buy local goods investing in the local economy. Before the pandemic, in 2019, the pharmaceutical supply market was valued at USD 630 billion, and the adventure tourism market has grown much larger than that. Therefore, we requested funding from the World Bank for new research. As Asian countries are new players in the adventure tourism market, funding is likely to increase.

- Adventure tourism is new for Mongolia, but I think Mongolia has the potential to develop adventure tourism using its unique nomadic culture and abundant natural resources. What does adventure tourism provide? What are the advantages of Mongolia, what makes Mongolia an adventurous destination?

- There are three leading profitable products in the world's adventure tourism market - walking, cycling, and trekking.

This is the best pleasure and opportunity to cross the country on foot or by bicycle. In this sense, I think there is a lot of opportunity to promote Mongolia among international traders, tour operators, and large companies.

-As the Mongolian Government declared 2023-2025 the "Years to Visit Mongolia," many celebrities from many countries visited Mongolia last summer. How we can attract more adventure travelers to Mongolia?

-I arrived in Mongolia to find the answer. The ATTA has many member tour operators and media representatives. We provide professional support for the improvement of adventure tourism products and bring the media staff to a particular country. Besides, we visit the destinations and study what should be explored and what media channels should be used to promote it. Once this is studied, it will open doors for international wholesalers and media advertising.

- I suppose, adventure travelers are attracted to challenging, complex, novel journeys, and they feel pleasure and energy accordingly. What is the main criterion for choosing a destination for them?

-In the past, well-traveled and experienced tourists were interested in adventure. A hundred years ago adventurers traveled to enjoy the natural beauty of countries, but over the past 20 years, the interest and nature of the adventure tourism market has changed. Today they are more interested in national culture and people you meet. When tourists come to Mongolia to see the nature, plains, and wild animals, the main thing that makes the trip unique is meeting and interacting with the people and locals. I have a wish to learn more about Mongolia's culture to enrich its tourism products. For us, we are more interested in human-oriented products. Looking at the plains and nature of Mongolia, I assume there is a competitive product for the tourism market. However, more detailed information is not yet available.

-How adventure tourism products have changed over the past 20 years of your experience?

- I had perceived adventure travel must be risky and could not always achieve that.

Discovering uncharted land and challenging yourself may be, used to make the adventure travel more attractive and appealing. However, the situation is changing and the scope of adventure tourism is expanding. For example, for some people, visiting a country where the native language is not English and experiencing a different culture and way of life can be an adventure. Over the past 20 years, the concept of tourism has expanded, products have diversified, and many alternative forms of tourism have emerged. There are opportunities to involve a wider population. In the past, tourism was focused more on material issues, but now tourists are more interested in culture and building bonds with local people.

-Mongolia has many big rivers with strong streams and high mountains and there are many experienced guides and teams. Could you share some of good examples of how to assess risk for adventure travel?

- Training reference standards on how to properly manage risk according to ISO were first developed eight years ago, Today, for instance in Okinawa, Japan, tour guides are trained in risk management, and adventure tour products have been improved. Adventure travel is about challenging yourself and enjoying activities that often require physical fitness and stamina. Such a wonderful journey can become dangerous if the risks are not mitigated. Minimizing risks in adventure travel must be fundamental for all travel companies, along with offering inspiring, challenging, and fascinating tours. For example, it is extremely dangerous to have a ride on an inflatable boat in a fast mountain river without a guide or proper risk management. Therefore, there must be guidance that can reduce the risk. We prepare product safety guides and training manuals in all areas and conduct training.

-Mongolia has a large territory and is sparsely populated. How to overcome the risks such as lack of emergency service and communication when traveling to remote areas?

- When visiting a country, our team makes a risk management plan after conducting a risk assessment. For example, it would be very irresponsible if a tour operator allowed a tourist with minimal experience of horse riding to gallop. When riding a horse, it is necessary to ensure safety, such as choosing a gentle and tamed horse and at least wearing a safety helmet. Of course, it is impossible to eliminate all risks, but we can evaluate and make a plan for potential risks, and train our people.

Additionally, the course and decisions should be produced in consultation with locals and guides. Being aware of the local culture, knowledge, and mentality is very important. For example, in Brazil, there are swamps and ponds where piranhas live. When developing our tours, we consult with locals who know when piranhas are away, when it is safe to swim, and when it is not, so together with international trainers we solve the problem and make adventure tourism products risk-free. Recently, tour operators have begun to offer insurance for helicopter services, especially in remote areas. Assuming an average adventure traveler spends USD 3,000 on a ten-day trip, an extra 10 percent can help reduce the risk of a long-distance trip.

-Influencers tend to take perilous journeys and actions to increase the number of their followers. There are many sad cases of tragic deaths. What are the ways to minimize the risk?

-This is a problem today. The ATTA, as a professional association, has different standards. Such risky, reckless, unethical, illegal, unlawful, or disrespectful behavior is never supported. It is wrong to take a photo of yourself wearing shorts and jumping in the air when you are in a mosque. Our requirements and ethics are on a different level. We value influencers whose followers are ethical and decent. Our influencers who are ethical themselves and have few but loyal followers benefit locals because they share their experiences about the culture and nature of the places they travel to.

-How many countries does ATTA operate in?

-We have been operating in more than one hundred countries. We have our teams in 10 countries. We organize 20-40 courses a year and we conduct activities at a global scale. Over a month ago, the SDSN Hong Kong held its first "Global Conference on Sustainable Development" (GCSD 2023) in Asia. More than 800 international representatives attended and we exchanged views on tourism sustainability, challenges, and what tour agencies can offer depending on the country. During the Conference, I met with representatives of the Mongolian companies, but we could not discuss the issue in detail. While I am in Ulaanbaatar, I am interested in opening up a market to "sell" and promote Mongolia. We want to expand the sale and promotion of the Mongolian affiliates' products in our tour agencies. There are travel agencies to provide information about Mongolia in case the public is not well-informed.

As of the initial 10 months of 2023, the total revenue and aid amount of the state budget reached MNT 19.8 trillion, which increased by MNT 5.7 (40.2%) trillion from the same period last year. And the amount of balanced income aid reached MNT 19.0 trillion, an increase of MNT 6.0 (46.2%) trillion.

The amount of total expenditure and repayable net loans reached MNT 16.9 trillion, and the balanced balance showed a profit of MNT 2.1 trillion.

Total tax revenue reached MNT 17.6 trillion, an increase of MNT 5.7 (47.3%) trillion from the same period last year, which influenced by income tax revenue increased by MNT 2.1 (75.7%) trillion, mineral usage payment increased by MNT 1.8 (2.5 times) trillion, social insurance revenue by MNT 719.9 (30.4%) billion, value added tax by MNT 640.3 (20.4%) billion. While excise duty decreased by MNT 73.8 (10.1%) billion.