Research by the International Organization for Migration (IOM) in Mongolia shows a migration ban aimed at reducing overpopulation in Ulaanbaatar only increased the vulnerabilities of the capital city’s urban migrants.

IOM found that rural-to-urban migration improved the lives of most internal migrants in Mongolia, providing them with more and better job opportunities and increasing their incomes.

Due to development discrepancies between rural areas and the capital, Mongolia has experienced a dramatic rural-to-urban migration flow, raising Ulaanbaatar’s population to almost 1.5 million – half the country’s total, according to its 2020 census.

The Municipality of Ulaanbaatar shut the door to new residents with annual bans between 2017 and 2020 in a bid to protect health and safety, and the environment, but given IOM's findings, it will not reintroduce a ban.

“The city administration does not intend to impose another migration ban as the study clearly shows that the ban did not achieve its intended purpose,” Deputy Mayor R. Dagva told a high-level panel discussion on Internal Migration in Mongolia.

“It is important to understand that the ban, based on the underlying opportunities and circumstances of the time, was an attempt to regulate migration.”

IOM's research findings – from two studies – were released during the panel discussion last month. The first study, Assessing the Effectiveness of Migration Restrictions in Ulaanbaatar City and Migrants’ Vulnerability, shows that while the ban prevented registration for official residency, it did not stop the flow of people into the city.

The lack of residency registration deepened the vulnerability of migrant households, as they could not access public services and suffered from exposure to economic, social and health risks.

The second study, Mongolia: Internal Migration and Employment, showed that better job opportunities, living conditions and education are the key factors pulling internal migrants into Ulaanbaatar.

“The internal migration issue is complex, and we should expect the response policies to be as sophisticated,” said Victor Lutenco, IOM Mongolia Programme Manager.

"By substituting restrictive policies with those supporting better integration of migrants, Ulaanbaatar and Mongolia will ensure that migration and migrants fill the ranks of the net contributors to the development of the receiving community and of the entire country.”

IOM cooperated with the National University of Mongolia and Independent Research Institute of Mongolia to conduct the research in Ulaanbaatar, having support from the Maastricht School of Governance and methodological endorsement from the National Statistics Office of Mongolia. The activity is part of an ongoing project implemented by IOM with support from Swiss Agency for Development and Cooperation.

For more information, please contact Erkhembayar Munkhbayar, communication consultant IOM Mongolia, at emunkhbayar@iom.int and +976-88101117

The gas exploration and development company has also achieved progress on multiple fronts for its green hydrogen project – Gobi H2 – including the recent signing of an MoU to support project finance.

Elixir Energy Ltd (ASX:EXR) is very well placed to benefit from Mongolia’s and China’s decarbonisation policies as it ramps up plans to set up Mongolia’s first gas-fired generation plant in the South Gobi region using natural gas, and at the same time develop the region’s first green hydrogen project.

The gas exploration and development company has already achieved progress on multiple fronts for its green hydrogen project – Gobi H2 – including the recent signing of a memorandum of understanding (MoU) to support project finance with the Mongolia Green Finance Corporate, a joint-public-private sector body.

It has also submitted a detailed analysis of the legal issues surrounding a potential green hydrogen project in Mongolia to the Ministry of Energy, which concludes that no new major legislation is needed for the development of green hydrogen projects in Mongolia.

Elixir is also confirming the bankability of the renewable power inputs for green hydrogen production and has procured expert water advisory services, with potential water sources for the pilot H2 project already identified.

The company recently lodged plans for its long-term coal-bed methane (CBM) pilot production testing project with the Mongolian petroleum regulator as part of the mandatory annual budgetary approval process.

Elixir Energy is currently primarily focused on an exploration and appraisal program in Mongolia targeting natural gas in the form of CBM, also known as coal seam gas (CSG) in Australia. More recently it has developed the Gobi H2 green hydrogen project, in the same area of operations as its CBM business.

First mover advantage

Elixir Energy has named the green hydrogen project the ‘Gobi H2’ project and is applying for a Mongolian trademark for the name.

Elixir managing director Neil Young said: “All the work we are doing on our Gobi H2 project serves to reinforce our original starting concept: the country is a potential tier-one location for large scale hydrogen exports.

“Elixir’s first-mover advantages are being progressively locked in and it is fantastic to see the rapidly growing interest in this future-facing industry from multiple local and international stakeholders.”

Investor of the Year for second consecutive year

Elixir Energy bagged the ‘Investor of the Year 2021’ award by Mongolia’s Minister of Mining and Heavy Industry, making it the second year in a row the company has been recognised for its efforts.

Elixir’s Young said: “It is a great tribute to our local staff and contractors that we have yet again been formally awarded as ‘The Investor of the Year’ by the Mining Minister.

“This recognises their great resilience in not just maintaining, but in fact greatly increasing, our exploration and appraisal efforts, notwithstanding all COVID has thrown at them.

“We look forward to even more growth in 2022 as we undertake Mongolia’s first sustained production pilot program and continue our ‘rinse & repeat’ model of adding new coal- bearing sub-basins to our inventory.”

2021 drilling program wrapped up

The company’s 2021 drilling program has been wrapped up, with the following results:

➢ The Nomgon-7S well has been successfully drilled and suspended as a pressure monitoring well for next year’s production pilot in the Nomgon sub-basin;

➢ The Richcairn-4 appraisal well reached a total depth of 560 metres and encountered 20 metres of coal and 6 metres of silty coal. Further appraisal work will be undertaken in the Richcairn sub-basin in 2022; and

➢ The Bag-1S exploration well reached a total depth of 779 metres but did not intersect coal.

Elixir’s final 2021 drilling program comprised 17 wells of which 65% successfully intersected coals in the CBM window.

Seismic acquisition program

Elixir’s 2021 2D seismic acquisition program in the South Gobi has been wrapped up as planned.

A total of 528 kilometres was acquired in a two-stage program that required 123 days of field operations – a program of record size for the region.

The data is now being processed and interpreted and is feeding into lead generation for 2022’s drilling program.

Nomgon CBM project

Elixir Energy is primarily focused on its 100%-owned Nomgon IX CBM production sharing contract (PSC) project in the South Gobi region of Mongolia.

The Nomgon Project licence area covers around 30,000 square kilometres and is on the Mongolian Chinese border, with excellent infrastructure, mines and planned pipelines. It is around 400 kilometres north of China’s main gas transmission grid.

This very large area has been independently certified to contain a giant CBM risked recoverable prospective resource of 7.6 Tcf (best case).

2022 forward program

After nearly 300 days of non-stop drilling undertaken in 2021, there will be a short hiatus in the field, whilst the mandatory annual regulatory processes for the 2022 program are underway.

These include:

➢ The company’s exploration drilling tendering process has closed and a number of bids are currently being evaluated.

➢ The pilot drilling tender is still open and to date a number of companies have informally expressed their interest. The award of the contract, which will involve the regulator, is expected to be handed out next month.

➢ The company’s currently open seismic tender has also attracted multiple informal expressions of interest. The tender will close imminently and is expected to be awarded next month.

➢ Standard discussions are underway with the petroleum regulator over the formal 2022 budget.

➢ Key long lead items for the pilot production program have recently been ordered.

Approvals from the petroleum regulator are expected to come through in February, followed by annual sign-offs from the Environment Ministry.

Final approval, depending on developments on the COVID-19 front, should be forthcoming in the first half of March.

Chinese gas markets

The company noted that the de-carbonisation efforts in China are real and realistic, with the security of supply arguably even more important than the price, as shown by the current exceptionally high Asian gas prices being paid by China.

China has already been actively reducing the carbon intensity of its economy, with the neighbouring province of Inner Mongolia changing its coal-heavy energy mix.

China has been accelerating its own hydrogen developments and in the long term is likely to turn to imports.

Furthermore, Russia’s increasing gas supply leverage over Europe has not gone “unnoticed” by China, Elixir noted.

Competitive advantage

Around two-thirds of the cost of producing green hydrogen is the cost of renewables.

Shipping hydrogen by boat costs multiples of shipping the same energy as methane.

The delivered cost of hydrogen is, therefore “all about the quality of renewable energy and the cost of delivery”.

Access to markets by pipeline is massively advantaged over seaborne supplies and Mongolia can supply hydrogen to the Chinese markets this way.

New business opportunities

Like many other oil and gas companies, Elixir has carefully considered what new business opportunities the energy transition might offer it that take advantage of its existing skillsets and do not present a value destructive distraction.

As the first mover in this area, the company signed a MoU with Mongolia’s Ministry of Energy to work with it in exploring hydrogen opportunities and other stakeholders are also being progressively engaged.

In the meantime, it is garnering bankable quality renewable resource data in the region from its SODAR equipment.

Its desktop analysis has concluded that the combination of wind and solar resources in the Gobi region is exceptional – and the locational advantages this region brings in terms of immediate proximity to Chinese steel mills, for example, should place green hydrogen produced in the globally lowest delivered cost category.

Expert water advisory services

Elixir has worked with Mongolian drilling company ErdeneDrilling LLC for a number of years on the CBM drilling front.

Although water is not a large part of the cost structures of producing green hydrogen, it is a vital input and the social issues surrounding it are a key priority.

Elixir’s CBM business, where producing water is a necessary part of gas production from coal seams, provides complementary areas of expertise and even potential H2O feedstock for the Gobi H2 project.

Elixir and Mongolian drilling company ErdeneDrilling LLC have recently formalised their relationship over procuring water for hydrogen through an agreement for the provision of water advisory services.

The parties are currently planning field-based water exploration and appraisal activities for later in the year.

Renewable resources

Other than water, the other key input for a green hydrogen project is high-quality renewable power sources, which desktop analysis indicates are of globally very high quality in the Gobi region.

On this front, Elixir is currently:

➢ Measuring wind and solar resources to a bankable standard through its Australian sourced SODAR unit imported to the country last year and deployed in the South Gobi region; and

➢ Importing a solar focused measurement tool (from the same Australian firm who supplied the SODAR – Fulcrum3D) to be deployed at its recently acquired Solar Ilch solar farm.

Mongolia’s president Ukhnaa Khurelsukh turned heads at the United Nations in September 2021 with a seemingly fantastical pledge: His nation would “fight against climate change with achievements of the modern science and technology, as well as best practices and the traditional experiences” of Mongolia’s “nomadic civilization”.

To prove it was no publicity stunt, Khurelsukh turned up in Glasgow two months later for the UN Climate Change Conference, or COP26. There, he told the world that Mongolia was raising its target to reduce greenhouse gas emissions to 22.7% by 2030. Even better, Khurelsukh said, odds are high that Ulaanbaatar can nudge that commitment up to 27.2%.

It was music to the ears of long-time Mongolia investors.

“In its quest to establish its green credentials, Mongolia could and should attract international sustainable finance,” says Alisher Djumanov, founder of boutique investment bank Silk Capital and a veteran emerging markets investor.

“For the last two decades, China has overshadowed other developing countries as a massive magnet for foreign investments, crowding out smaller economies like Mongolia,” he says. “Now with global investors increasingly viewing China as less investable, Mongolia should strongly compete for reallocation of investment flows.”

Now comes the hard part. Embracing the UN’s Sustainable Development Goals in the long run will take considerable political will because of the economic costs for Mongolia.

The full article on the following link

Without doubt, 2022 is going to be another busy year for Mongolian rock sensation, The HU. In addition to the forthcoming Europe tours, the four-man band will be performing in Germany, Denmark, Czech Republic and Sweden in March.

The HU is scheduled to perform at the ‘Coachella’ music and art festival in California. They will be the first Mongolian band to perform at the one of the world’s biggest music festivals. But is it surprising? The HU is already fast becoming a rock legend!

The popular music festival, which is annually held at the Empire Polo Club in Indio, California, will be taking place across two weekends: in April. The festival is known for being filled with nonstop music, celebrities, and bold fashion statements.

In the fourth quarter of 2021, 5.6 thousand foreign citizens from 77 foreign countries were working in Mongolia with labor contract with purpose of earning wage and income or voluntarily without earning wage and income. The number of foreign workers decreased by 136 (2.4 percent) from the previous quarter.

In terms of country of all foreign workers in Mongolia, 62.9 percent is from China, 4.8 percent -- the Russian Federation, 4.2 percent -- Vietnam, 3.9 percent -- the Republic of Korea, 2.9 percent -- India, 2.4 percent -- Australia, 2.3 percent -- Albania, 2.0 percent -- United States, and remaining 14.6 percent is from other countries.

In terms of the occupation of foreign workers, the highest percentage or 2.5 thousand (44.8 percent) were professionals and the lowest percentage or 2 persons (0.1 percent) were skilled agricultural, forestry and fishery worker.

In the fourth quarter of 2021, 2027 workers (36.1 percent) were working in mining and quarrying sector, 1600 workers (28.5 percent) in construction sector, 494 workers (8.8 percent) in education sector, 377 workers (6.7 percent) in manufacturing sector, 344 workers (6.1 percent) in wholesale and retail trade, repair of motor vehicles and motorcycles, 219 workers (3.9 percent) in transportation and storage, 79 workers (1.4 percent) in accommodation and food service activities, 75 workers (1.3 percent) in administrative and support service activities, and 402 workers (7.2 percent) were working in other sectors

Rio Tinto PLC on Tuesday reported a fall in full-year production across all the commodities it produces, including iron ore, copper and aluminum. Here are some remarks from its fourth-quarter operational report.

On commodity markets:

"Market dynamics were broadly positive throughout 2021 for most commodities, lifting a number of prices to cyclical highs. Fiscal and monetary support and successful vaccine campaigns were key contributors to strong demand growth that ultimately stretched global supply chains to their limits and created challenging conditions for many of the world's producers. We are encouraged by growth prospects in the coming year but remain vigilant in relation to potential disruption from new Covid-19 variants and geopolitical tensions."

On Mongolia copper operations:

"Mined copper production from the open pit was 9% higher than 2020 with improved performance, temporary increase in grades, and increased mill feed following geotechnical issues in the first half, partly offset by lower staffing levels due to Covid-19. In the fourth quarter, stringent Chinese border restrictions continued due to increased cases of Covid-19 in Mongolia. We continue to work closely with the Mongolian and Chinese authorities and our customers to manage the risk of supply chain disruptions. Cross-border concentrate shipments into China have resumed with some measures in place to transport greater volumes in a safe and efficient manner, however uncertainty continues to exist with the rate of Covid-19 cases in Mongolia. The force majeure declared on shipments from March 30 remains in place."

On Australian iron-ore operations:

"Pilbara operations produced 319.7 million tons (Rio Tinto share 266.8 million tons) in 2021, 4% lower than 2020. This was due to above average rainfall in the first half of the year, cultural heritage management and delays in growth and brownfield mine replacement tie-in projects. Ongoing Covid-19 restrictions and a tight labor market have further impacted our ability to access experienced contractors and particular skill sets. Production from the new greenfields mine at Gudai-Darri and brownfield mine replacement project at Robe Valley, was delayed due to Covid-19 impact on labor availability and an inability to conduct pre-delivery quality assurance and control at international steel manufacturers due to limitations on travel."

On China's steel market:

"China's crude steel production and iron ore imports were stable year on year, with steel production exceeding 1 billion [metric] tons for a second time, despite numerous steel mill operating restrictions and a slowing property sector. Steel consumption and production rates in China decelerated significantly during the fourth quarter of 2021 however, iron ore seaborne supply improved, resulting in a circa 30% decline in iron ore prices in the fourth quarter versus the prior quarter. Meanwhile, the steel and iron ore demand recovery in developed and other emerging economies maintained its momentum and global crude steel production grew by an estimated 6% year on year--by one of its largest absolute annual increments in history--to a record total of almost 2 billion tons in 2021."

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

Headed by Deputy Prime Minister S.Amarsaikhan, the working group in charge of enhancing the operations of border checkpoints held a virtual meeting on January 13.

During the meeting, members of the working group reported on the progress of works to import freight in containers through the Zamiin-Uud border checkpoint.

As containers began to be delivered to the Regional Logistics Center in Zamiin-Uud from the ‘Zero Point’ established between the borders of Mongolia and China, most of the freight is being transported to Ulaanbaatar city by rail.

Currently, there are about 900 containers ready to be transported from Erlian city of China. If no less than 50 containers are brought into the country each day, it is possible to finish transporting the freight in 18 days, noted the officials.

The Deputy Prime Minister tasked the members of the working group to increase the number of containers currently being imported, carry out the necessary works to begin importing freight through broad-gauge railway, and ensure that the customs process is quickly completed for the goods being imported.

Per the task given by the Deputy Prime Minister, the Ministry of Road and Transport and the National Road Transport Center have completed studying opportunities for Mongolian drivers to transport freight using their own trucks between Russia, Europe, and Central Asian countries through the border checkpoints in the country’s north and western regions. As we exchanged information with corresponding organizations, we reached a solution, reported Minister of Road and Transport L.Khaltar.

“International freight forwarding companies are in charge of transporting freight in Russia, Europe, and Central Asian countries. Thus, we made contact with the National Road Transport Association of Mongolia (NARTAM) and found a certain solution. For transporting freight internationally, it is necessary for trucks to meet the requirements for Euro standards. However, there are only a relatively small percentage of trucks that fulfill these requirements.

As such, NARTAM will make an announcement for registering drivers that are capable of transporting freight internationally. Once drivers are able to meet these requirements, it will become possible for them to increase their income through international freight transportation. Furthermore, as drivers specialized in driving large trucks tend to be in high demand in European countries, we are studying opportunities to have drivers become employed in this area.”

The Ministry of Health reported today, January 18 that 2,135 СOVID-19 infections and three death were recorded in the last 24 hours. In detail, 1,344 cases were reported in Ulaanbaatar city, with 791 cases in 21 provinces.

Today, the cumulative infection tally in Mongolia has increased to 412,677, with the death toll to 2016. Currently, 8,210 people are receiving hospital treatment for COVID-19 whilst 36,229 people with mild symptoms are being treated at home.

As of today, the coverage of 1st dose has reached 69.7 percent (2,268,196), 2nd dose – 66.7 percent (2,168,532) and 3rd dose or a booster shot of COVID-19 vaccines – 30.0percent (975,013) of the total population. In addition, 44,403 people (1.0 percent) have received 4th vaccine dose.

Calls from citizens seeking inquiries and information related to 74 types of services accounted for 27.5 percent of the calls to the 1800-1200 Call Center of the Capital city.

The Governor of the Capital City and Mayor of Ulaanbaatar’s Decree No. A / 987 of 2021 “On some measures to be taken to create a favorable business environment and reduce corruption and bureaucracy” entered into force starting from January 1, 2022. According to this decree, citizens and business entities are no longer required to obtain any permits or special licenses to conduct 74 types of business activities within the capital city.

The 1800-1200 Call Center provides 24-hour information on public services provided to citizens and legal entities by the capital city’s local administrative organizations, as well as information related to the “COVID-19” pandemic. In recent days, 27.5 percent of the calls to the Call Center have been related to 74 types of services.

Therefore, we would like to highlight information related to the 74 types of trade and services activities allowed in the capital city without any permits or special licenses. Starting from January 1, 2022 citizens and legal entities will be able to operate freely by registering on the “www.ulaanbaatar.mn” website. As of January 11, more than 200 service requests have been registered in the online service registration system. Here are answers to common questions from citizens and business entities.

-How can citizens and companies register themselves in the system?

-Citizens and business entities can go to the “REGISTRATION OF SERVICES” section of the www.ulaanbaatar.mn website to verify their information and gain access through the DAN registry system. After the first step, which is reviewing and accepting the standards, requirements, and the responsibilities, citizens and business entities must enter their identification numbers so that personal information is retrieved from the “KHUR” system. After this step, by entering the service location information and information about whether the document has been submitted before, your request will be registered and a registration page with a QR code will appear. You can start your business activities immediately after registering.

- Do you need any documents to register your request for the 74 types of activities?

-No documents are required from citizens to carry out 74 types of trade and services activities in the capital city. Previously, citizens and business entities engaged in trade, production and services were required to provide 7-12 types of documents (7-8 from government organizations, 3-4 from citizens and business entities) to obtain permits/licenses to operate. This has changed and no documents are required anymore.

However, if the premises are rented to operate trade and service activities, a copy of the rental or lease agreement and real estate certificate must be attached. Documents issued by government organizations will be processed through exchange of information, support, methodological advice, and cooperation between government agencies, without the participation of citizens and business entities.

-How can foreigners register their business?

- It is not possible for foreigners to obtain information from the “KHUR” system, so a citizen of Mongolia shall be registered as a trustee in a legal entity to operate.

-There are people who cannot register through the online system. Where can they go?

-Citizens who are unable to register through the online system can get instructions on how to register from the 1800-1200 Call Center or can register their service with the operator of the Service Center of the Capital city.

-Are previous permits required to be extended if the valid period has expired?

-Citizens and business entities operating in the past with permits and special licenses no longer need to renew their permits/licenses to continue operations,

In case of expiration of the certificate issued by the district, citizens and entities can register themselves through the www.ulaanbaatar.mn website to continue their trade/services activities. This registration does not have to be renewed annually.

MEDIA RELATIONS DEPARTMENT OF THE GOVERNOR’S OFFICE OF THE CAPITAL CITY