Udokan Copper, one of the companies owned by Russian billionaire Alisher Usmanov’s holding firm USM, announced that it has joined the UN Global Compact.

Joining the initiative means the company voluntarily agrees that its business strategy and operations should align with the UN Ten Principles on human rights, labour, environment and anti-corruption, and the UN Sustainable Development Goals (SDGs).

Normally, the UN Global Compact participants are full-fledged operating businesses, but Udokan Copper — which is developing the Udokan copper deposit in the Zabaikalye Territory in Russia’s Far East — decided to join the UN initiative in the construction stage.

According to the miner, the reason to do so is that it is already following the best global practices in ESG, minimizing its carbon footprint, and pursuing a large-scale social investment program, with over $24 million already spent on social initiatives.

“Joining the UN Global Compact means more responsibility; it also provides access to the expertise of the United Nations and other international participants of the initiative, and to advice from top global experts,” the company said in a media statement. “This move will help the company strengthen its repute, gain new business connections all over the world and facilitate its participation in global events and the UN global projects.”

For Udokan Copper’s management, doing business sustainably is a necessary condition to compete on the global product and capital markets, to gain access to financing, to build a trustful and effective relationship with society and the state, and to be an appealing employer.

“Developing the Udokan deposit is a greenfield project that was launched as an example of sustainable and responsible production. The UN SDGs can only be reached by pooling the will and the effort of the governments, people, civil organizations and businesses. We are glad to join the global like-minded community and make yet another step towards the sustainable future,” the press brief reads.

Udokan Copper was established to develop its namesake deposit, which has resources exceeding 26 million tonnes and is considered to be Russia’s largest new copper deposit.

The resources of the deposit, according to JORC are 26.7 million tonnes of copper, with a copper grade of 1.05%. The deposit is located in the Kalar Municipal District of the Zabaikalye Territory, 30 kilometres away from Novaya Chara station of the Baikal-Amur Mainline.

The project includes the commissioning of a mining and metallurgical plant, with the final products being cathode copper and sulphide concentrate. Production volume has been estimated at 135,000 tonnes of copper per year.

India is reviewing a proposal to stop new coal-fired capacity construction under a plan to meet its climate pledges, Indian outlet The Economic Times reported on Wednesday, quoting sources familiar with the matter.

As part of its pledges during the COP26 climate summit last month, India—where coal currently accounts for around 70% of electricity generation—committed to net-zero emissions by 2070, and 500 gigawatts (GW) of installed renewable energy capacity by 2030.

In late October, an expert committee appointed by the power ministry submitted new recommendations for amending India’s National Electricity Policy (NEP) and recommended that the country not consider new coal-fired capacity. The report of the committee is still under consideration, a senior government official told The Economic Times.

The recommendations include replacing old coal plants with new ones only when it is “convincingly established that it is not viable to meet the projected demand from alternate non-fossil fuel sources,” one of the recommendations says, a source with knowledge of the details told the Indian outlet.

A proposal for halting new coal capacity is a U-turn from India’s previously adopted national electricity policy strategies, which have stated that coal is a cheap source of electricity and should not be discarded.

India to stockpile gas & coal to avoid future energy crunch

Read more India to stockpile gas & coal to avoid future energy crunch

India, however, is not expected to kick its coal addiction any time soon.

Global coal demand is set for records this year and next, despite various net-zero pledges, the International Energy Agency (IEA) said last week.

Based on current trends, global coal demand is set to rise to 8025 Mt in 2022, the highest level ever seen, and to remain there through 2024, the IEA said in its annual Coal 2021 report released on Friday.

Over the next two years, global coal demand could even see new record highs as emerging markets led by China and India will lead consumption growth which is set to outpace declines in developed economies, according to the IEA. In India, stronger economic growth and increasing electrification are forecast to drive coal demand growth of 4% annually through 2024, the agency noted.

Dec. 26 (Xinhua) -- Mongolia confirmed 118 new COVID-19 infections in the past 24 hours, bringing the national tally to 389,617, the country's health ministry said on Sunday.

Five of the latest confirmed cases were imported from abroad, and the remaining ones were local infections, the ministry said.

Meanwhile, no more COVID-19-related deaths were reported in the past day, and the country's death toll remains at 1,981, it said.

So far, 66.5 percent of Mongolia's 3.4 million people have received two doses of COVID-19 vaccines, while 895,370 people have received a booster. Enditem

Coal production is set to hit an all-time high according to the International Energy Agency (IEA) despite the curbing of production across several countries and aims for decarbonization following COP26 climate summit.

Coal demand has continued to increase through 2021 mainly due to the needs of large Asian countries that still rely on the fossil fuel, as well as gas shortages forcing European states to shift back to coal. Coal has experienced a dramatic rebound this year, with production levels set to hit an all-time high in 2021 and demand levels to peak in 2022. Even after worldwide power generation from coal started falling in 2019 and 2020, as many countries shifted away from the energy source, it is expected to rise by around 9% this year to reach 10,350 terawatt-hours.

The surge in demand is largely due to the faster-than-expected global economic recovery following the Covid-19 pandemic. Throughout 2020, demand for coal, oil, and gas dropped significantly as countries around the world imposed restrictions on movement. Many organizations saw this as the moment to push for a transition away from fossil fuels to renewable alternatives. However, as the energy demand has risen in 2021, some countries have found it hard to produce enough oil and gas, leading to shortages. Surging fossil fuel prices have also pushed consumers back to coal, which is more competitively priced.

IEA Executive Director, Fatih Birol, voiced his concerns about the trend, “Coal is the single largest source of global carbon emissions, and this year’s historically high level of coal power generation is a worrying sign of how far off track the world is in its efforts to put emissions into decline towards net zero.”

One of the main problems with coal production is that it doesn’t just release carbon emissions into the atmosphere but also sulfur dioxide, particulates, and nitrogen oxides. In fact, many view coal as the “dirtiest fossil fuel”, which explains why many governments are pushing policies to end coal production in favor of cleaner energy sources.

This may come as a surprise considering the recent participation of many state powers in the COP26 climate summit, which resolidified the Paris Agreement’s aim to curb fossil fuel production as part of a plan to decarbonize. But two of the world’s most populous countries, China and India, still rely heavily on coal to meet their energy needs. In fact, both decided upon a last-minute change of language in an agreement on fossil fuel from the “phase out” of coal to a “phase down”.

China and India are the world’s two largest coal producers, making up two-thirds of global coal demand. Although the two countries have committed to achieving net-zero carbon emissions by 2060 and 2070 respectively, their heavy reliance on coal makes many of their climate aims appear unrealistic. For example, while China announced it would no longer be investing in the construction of new coal plants overseas earlier this year, it is still pursuing plans to build 60 domestic coal plants.

And now it appears that even countries that are already undertaking strategies to phase coal out have experienced a hike in demand this year. Mainly due to low wind volumes and a hike in energy demand, Germany has had to rely on coal and nuclear power for electricity generation throughout 2021. This meant the contribution of coal and nuclear power for energy production reached 40% this year, compared to 35% in 2020, with renewables accounting for 41% compared to 44% last year. At present, Germany is planning to end nuclear power production by the end of 2022 and phase out coal by 2030.

Even the UK, which pledged to end coal production a year earlier than anticipated by 2024, had to fire up coal plants in September to meet electricity demand in the face of gas shortages and surging prices. During this time, coal contributed 3% of national power, rather than the average 2.2%. This was following a landmark period of time in which the UK run coal-free for three days in August.

But many believe that a significant injection of private investment is needed to speed up the phasing out of coal, otherwise, it would already be done. Naturally, companies running coal plants don’t want to shut up shop before they’ve achieved their full potential, even if their operations present a threat to the environment. Unless governments can offer financial incentives for them to stop production, states will require private investment to make this happen. The potential for coal mines to be converted into geothermal energy plants and others for renewable energy uses could provide the opportunity needed to encourage this type of investment. However, without these incentives, coal companies will likely continue operations so long as demand remains high and their leases stay active.

London (CNN Business)Electric cars are taking over the streets, big companies are trying to be nicer to the environment and people are taking action to stop climate change.

But here's a reality check: The world could consume more oil in 2022 than ever before.

Global energy demand rebounded strongly this year as pandemic restrictions eased, and it's expected to rise further in 2022.

The International Energy Agency predicts that global oil demand will increase by 3.3 million barrels per day next year to 99.5 million barrels per day. That would match the previous demand record in 2019, before the pandemic.

Not even Omicron is expected to derail the rebound.

"New containment measures put in place to halt the spread of the virus are likely to have a more muted impact on the economy versus previous Covid waves, not least because of widespread vaccination campaigns," the IEA wrote in a report earlier this month.

The agency, which monitors energy market trends for the world's richest countries, said it expects demand for road transportation fuels and petrochemicals to continue to post healthy growth.

The lone exception? The IEA did downgrade its forecast for jet fuel due to restrictions on international travel imposed by governments trying to stop the spread of Omicron.

Others are even less concerned about Omicron. The Organization of the Petroleum Exporting Countries (OPEC) did not change its demand forecast for 2022 in its monthly report for December.

"The impact of the new Omicron variant is expected to be mild and short-lived, as the world becomes better equipped to manage COVID-19 and its related challenges," OPEC analysts wrote in the report.

The forecasts underscore just how dependent the world is on fossil fuels, despite efforts to address the climate crisis and huge investments in electric cars, renewable energy and cleaner fuels.

OPEC expects oil demand to increase around the world next year, led by countries including China, India and the United States.

But, remember: Even if the world does consume more oil in 2022 than ever before, the green transition is still underway.

Some of the biggest oil companies are trying to figure out how they fit into a greener future. For more on that, check out this excellent story from my CNN Business colleague Julia Horowitz.

Deputy Prime Minister S.Amarsaikhan today announced that the government will pay 250-350 kW of electricity bills of households until June 30.

Specifically, the State Great Khural is considering the extension of the effective period of the Law on Prevention, Combat, and Reduction of Social and Economic Impacts of COVID-19 until June 30, 2022. With the extension, it will not only allow people to defer their mortgage loan repayments but also allow people to enjoy electricity tariff discounts. Up to 250 kW of electricity bills for apartment households and up to 350 kW for ger area households will be exempted and any excess bills will not be subject to the decision.

As for the enterprises, the electricity tariff discount will no longer be in effect starting from January 1,2022.

The electricity bills for both households and enterprises have been fully exempted since December 2020 with the funding of MNT800 billion from Erdenet mining corporation and MNT75 billion for the 2022 exemption will be funded again by the corporation.

Dundgobi (Mongolia) (AFP) – Nurse Sodkhuu Galbadrakh clutches a box of Covid-19 vaccines on his lap as he journeys along a bumpy track through a remote region of the Mongolian steppe, going home to home to offer booster doses to herders.

The country of three million has taken some of the world's toughest and most enduring measures against the coronavirus pandemic, shutting schools for much of the last two years and closing borders.

Its vaccination programme has seen huge take-up with more than 90 percent of adults receiving two jabs.

But the booster programme is seeing patchier success among nomadic communities thanks to both online misinformation and the sheer logistical challenge that comes with reaching remote communities in such a vast nation.

Mongolia is one of the most sparsely populated countries in the world and about one-third of the population are nomadic.

The booster programme is seeing patchier success among nomadic communities thanks to online misinformation and logistical challenges

The booster programme is seeing patchier success among nomadic communities thanks to online misinformation and logistical challenges Byambasuren BYAMBA-OCHIR AFP

"During the first wave, people were queuing outside (for vaccines) and I was working until 9pm," said Sodkhuu. "There were days I didn't go home. Now, only five to six people come to get the booster shot per day."

He said he calls herders daily to try and arrange the third shot but often can't get through, especially with poor phone reception in pastureland.

This meant health officials had no choice but to go to the herders, he added.

Mixed results

After finding several ger homes empty, Sodkhuu -- accompanied by doctor Enkhjargal Purev -- met 37-year-old herder Enkhmaa Purev, who received the booster.

"I was planning on getting my booster shot the next time I visited the soum (town) centre," the herder told AFP, saying she had driven 160 kilometres earlier this year with her husband to get their first doses.

Another herder, named Badamkhuu, couldn't get the jab due to high blood pressure -- a common problem among herders due to a high cholesterol diet.

"I had extremely high blood pressure after the second dose [of Sinopharm], so I don’t want any more vaccines," said 65-year-old herder Dulamsuren Gombojav, who also declined the jab when offered by Sodkhuu.

According to Mongolia's health ministry there have been 667,391 Covid cases and nearly 2,000 deaths.

Cases have plummeted since vaccines were rolled out, and Ulaanbaatar is anxious progress is not lost through jab hesitancy.

Only around 45 percent of adults have had a booster vaccine.

"Young people spread rumours or have a perception that Covid is just like flu, and they can recover easily, like the flu," Sodkhuu told AFP on the outreach drive.

"(They) think that they don't need vaccines or boosters."

On the day AFP joined the medical team, they had hoped to administer booster shots to six herder families. Only three accepted.

But Batbayar Ochirbat, the official leading the vaccination programme, said trust is gradually improving in the third jab.

Since September when daily cases peaked at more than 3,000, numbers have rolled down to an average of 200 daily cases, which he says is partly down to boosters.

"People started to build trust after they saw vaccinated people have booster shots, develop no symptoms, and not get sick," he said.

On December 23, Minister of Foreign Affairs B. Battsetseg had an online meeting with her Japanese counterpart Yoshimasa Hayashi to discuss relations and cooperation-related issues between the countries.

Noting the significance of Prime Minister L. Oyun-Erdene’s visit to Japan in July this year, the Foreign Ministers expressed their satisfaction with the announcement of 2022 as the ‘Mongolia-Japan Year of Friendship and Exchange of Children and Youth’ on the occasion of the 50th anniversary of the establishment of diplomatic relations between the two countries. As part of the celebration, the parties agreed to work actively to organize high-level visits, support youth exchanges, strengthen public-private partnerships and fortify people-to-people ties.

Noting that the strategic partnership between Mongolia and Japan is expanding year by year, the Ministries emphasized that the countries are cooperating closely even during the COVID-19 pandemic. Minister B.Battsetseg thanked the Government of Japan for its extensive support in reducing the risk of a pandemic in Mongolia by providing soft loans, strengthening the health care system, supplying the necessary equipment, donating vaccines and establishing cold chain system.

The two sides highlighted that bilateral relations have steadily developed for 50 years since the establishment of diplomatic relations, especially with intensive development from 1990s which led to present strategic partnership level, and discussed the future of 50 years of cooperation. Minister B.Battsetseg said that Mongolia's future development requires the establishment of a multi-pillar economic structure, increased exports, improved infrastructure, energy and logistics, for which it necessitates to attract new technology and investment from Japan and increase of bilateral trade. She stressed the importance of clearly outlining the directions of post-pandemic economic relations and cooperation in the new Mid-term Program for 2022-2025, which is planned to be approved next year by both countries.

They reaffirmed that the parties are for deepening our cooperation within the UN and international organizations.

The 6th Strategic Dialogue between the Ministries of Foreign Affairs of Mongolia and the People's Republic of China was held virtually on December 23. The virtual meeting was co-chaired by Deputy Minister of Foreign Affairs of Mongolia B.Munkhjin and Assistant Minister of Foreign Affairs of China Wu Jianghao.

The sides expressed pleasure that bilateral relations are progressing amid the pandemic, emphasizing that the heads of state, parliament speakers, and the prime ministers of the two countries had phone conversations and made high-level visits in 2021, and agreed to organize high-level visits and meetings next year.

The deputy foreign ministers underscored that trade and economic cooperation has grown compared to last year and that there has been a noticeable increase in trade between the two countries. Moreover, they exchanged views at length on keeping trade and economic cooperation as smooth as possible during the pandemic, especially on intensifying border checkpoint activities and increasing the entry rate of goods.

The Mongolian side put forth proposals to promptly resume freight transport across Zamiin-Uud-Erenhot border checkpoint, ensure normal rail transport, restore export of non-mining products, intensify the activities of Shiveekhuren-Sekhee and Bichigt-Zuunkhatavch border checkpoints, raise entry rate of goods through Gashuunsikhait-Gantsmod and Khangi-Mandal border checkpoints, and enable transport of goods that require special permits through Gashuusukhait-Gantsmod, Shiveekhuren-Sekhee, Bulgan-Takashiken, Bichigt-Zuunkhatavch, and Khangi-Mandal border checkpoints. The Chinese side acknowledged the proposals and undertook to take action, stressing the importance of improving infection control measures and reducing the risk of cross-border transmission in increasing the entry rate of goods.

Deputy Minister B.Munkhjin thanked the Chinese side for its support to Mongolia’s pandemic efforts as well as the assistance of vaccines and other products.

The sides agreed to study the feasibility of easing travel restrictions in light of the pandemic situation.

They also discussed regional and international issues of shared interest and affirmed their willingness to further strengthen cooperation within regional and multilateral mechanisms.

The Strategic Dialogue is organized annually between the Ministries of Foreign Affairs at a Deputy-Ministerial level to review the development of bilateral relations and discuss short-term goals and major events, and regional and international cooperation.

The copper price catapulted to a record high of $4.762 per pound ($10,476 a tonne) in 2021 as top consumer China staged an economic rebound and exchange inventories hit a 47-year low.

Disruptions in top producers Chile and Peru and the Biden Administration’s infrastructure plan also helped to build momentum for the bellwether metal, crucial in the global push for a greener economy.

The bullish sentiment was defined by Goldman Sachs, which called the metal the “new oil” in a May report.

Meanwhile, the biggest copper mining project in decades began production in May. In a turbulent year, here are the top copper stories of 2021.

#1 Chile

The world’s top producer decided to rewrite its Pinochet-era constitution that underpinned nearly three decades of mining growth in the South American nation.

A new taxes and royalties bill already approved by the Senate could, if unaltered, put at risk some 1 million tonnes of annual output, representing around 4% of global copper supply.

The legislation, which faces multiple procedural hurdles, would impose a royalty as high as 75% on sales of copper to pay for social programs.

Taxing copper Chile. Bill

Companies including BHP say the bill as it stands — with sales tax brackets that increase as metal prices rise — would derail investments.

With the election of leftist president Gabriel Boric in December, the bill could become law.

Boric, a 35-year-old former law student, vowed during his campaign to bury Chile’s “neo liberal” economic model. Although he later softened his message, he has kept the idea of giving the State a more active role in the sector, as well as higher royalties.

During his victory speech, Boric reiterated he would oppose mining initiatives that “destroy” the environment, particularly the controversial $2.5 billion Dominga copper and iron ore project that was approved this year.

“Destroying the world is destroying ourselves. We do not want more ‘sacrifice zones’, we do not want projects that destroy our country, that destroy communities and we exemplify this in a case that has been symbolic: No to Dominga,” he said.

Chile’s copper output sank to a seven-month low in September, on the back of labour disruptions, including an almost one-month strike at Codelco’s Andina mine near the capital Santiago.

#2 Peru

Neighboring country Peru, the second-largest producer of copper in the world also saw the rise of a new left-wing leader.

In June, socialist Pedro Castillo won a long and tense presidential election battle.

Castillo says he wants to increase spending on healthcare and education by raising the funds from mining tax hikes, redistributing profits to Andean communities like those around the huge Las Bambas project, owned by China’s MMG.

The promises are now being tested, with protests and blockades at Las Bambas in the country’s south straining government negotiators, a reflection of wider tensions between indigenous communities and the key mining sector.

The government and one local community agreed on a temporary truce last week after a three-week-long road blockade of a key transport road in the region of Chumbivilcas almost led to a shutdown of the mine that produces some 2% of global copper.

But tensions remain high, with threats of further blockades as critics say the leftist government has not lived up to its promises to voters in mining regions, who bolstered his campaign.

Chile and Peru together constitute close to 40% of the world’s copper production.

# 3 Kamoa-Kakula

While top producer South America saw turbulence in 2021, Canada’s Ivanhoe Mines (TSX: IVN) announced the beginning of operations at its massive Kamoa-Kakula project in the Democratic Republic of Congo (DRC) months ahead of schedule.

Kakula, the first mine planned at the concession, is initially forecast to generate 3.8 million tonnes of ore a year at an average feed grade “well in excess of 6% copper” over the first five years of operation, the company said.

Ivanhoe founder Robert Friedland believes the project will become the world’s second-largest copper mine and also the one with the highest grades among major operations.

See how Kamoa-Kakula fares among the world’s top 10 biggest copper mines:

The Vancouver-based company has also vowed to produce the industry’s “greenest” copper, as it works to become the first net-zero operational carbon emitter among the world’s top-tier copper producers.

# Chinese investment

China consumes nearly 14 million tonnes of copper each year – more than the rest of the world combined. But domestic supply last year was only around 2m tonnes, including scrap, and mined output has been stagnant for years.

In a presentation at the Wood Mackenzie LME Forum, Nick Pickens, research director for copper markets, showed two graphs that put China’s significant copper supply challenges in perspective.

Imported concentrate, including from roughly 30 Chinese-owned mines in Africa and elsewhere, now supplies 40% of the country’s needs, a share that has more than doubled over the past decade as imports set fresh records every year.

Over and above direct foreign investment in mining projects around the world, China has splashed more than $16 billion on buying overseas copper companies and assets since 2010.

Glencore’s disposal, under some duress, of Las Bambas in Peru to a Chinese consortium, China Moly’s 2016 acquisition of the Tenke Fungurume mine from Freeport for $2.65 billion and Zijin Mining’s joint venture with Ivanhoe Mines on the Kamoa-Kakula mine, both in the Congo, are three high-profile examples.

#2022

Higher supplies and softer demand are expected to cool copper prices next year.

Expectations of slower demand growth in China and rising supplies from operations such as Anglo American’s Quellaveco mine in Peru are likely to keep prices subdued next year.

“Long-term prospects for copper remain bullish, but the market looks set to be on pause next year compared to this year,” said Karen Norton, senior base metals analyst at Refinitiv, who expects a modest copper surplus next year.

Goldman Sachs sees fears of China’s property slowdown as overblown, saying gains from EVs, renewables and electrical network investment outweigh the policy-moderated drag from property and machinery.

Mine supply is expected to rise 3.9% to nearly 22 million tonnes next year, according to the International Copper Study Group, which expects a surplus of 328,000 tonnes in the refined market.

Bank of America expects demand to hold firm next year and only sees a surplus in 2023. It forecasts prices to average $9,813 a tonne next year and $8,375 a tonne in 2023.

Demand for copper from efforts to decarbonise will intensify, with JPMorgan forecasting it will account for more than 40% of overall demand growth next year in the 25-million-tonne market.

JPMorgan forecasts total copper demand from energy transition rising from 1.8 million tonnes this year, to more than 3 million tonnes by 2025.

(With files from Reuters and Bloomberg)