North China’s Inner Mongolia Autonomous Region on Saturday launched a large-scale photovoltaic power construction project in the Kubuqi desert. It is estimated that it will realize a total installed capacity of approximately 2 GW.

Located in the city of Ordos, the project is expected to cover approximately 6,700 hectares and achieve its full grid-connected power generation capacity before the end of 2023.

With photovoltaic panels, the new base will integrate planting and breeding industries with green power generation, aiming to restore the local ecosystem while promoting rural revitalization.

Nearly 12 billion yuan (about 1.86 billion U.S. dollars) will be pooled for the project in a bid to better utilize and restore the desert, safeguard the ecological security of the Yellow River basin, and help the country achieve its carbon peak and carbon neutrality as promised.

The project will log an annual average of more than 4.1 billion kilowatt-hours (kWh) of on-grid electricity, thus helping save over 1.25 million tonnes of standard coal or slash 3.4 million tonnes of carbon dioxide emissions.

Situated in the Kubuqi desert, China’s seventh-largest desert, the base is of great importance to the region’s green and sustainable development in terms of its ecosystem, economy and society, according to Zhang Bin, deputy director of the region’s energy bureau.

Australia continues to back its coal industry as many Western nations have turned their back on the dirtiest fossil fuel, approving a third coal mine extension in a month and bolstering partnerships for long-term coal exports.

We already know the demand is there, with China requiring increasing coal to bridge its fuel demand gap, but Australia is one of the few remaining nations outside of Asia to continue to back coal as a major energy source.

Earlier this month, Australia approved its third coal mine extension within a month. In September, Environment Minister Sussan Ley approved extensions for the Whitehaven Coal and Wollonggong Coal mines. The latest extension approval was for the Glencore Mangoola thermal coal mine in New South Wales, allowing it to continue production for eight more years, mining approximately 52 million tons of coal.

But it’s not just other countries that are putting pressure on Australia to join them in curbing its coal production. In May, a ruling from Australia’s high court encouraged the country’s environment minister to reconsider coal mine expansions due to the obligation the ministry has to the Australian childrens’ future, as well as the general impact of coal production and use on climate change.

While environmental activists and international energy organizations are less than happy with Australia’s ongoing support for coal, many Australians back the decision to expand mines because of their contribution to the country’s employment. Around 400 workers are currently employed at Glencore, and the expansion will add 100 construction jobs.

Australia is the world’s biggest exporter of coal, with strong links to the Asian market. To date, Australia has made no pledge to reduce carbon emissions to net-zero by 2050, unlike many of its Western counterparts. Many countries across Europe and North America have vowed to rapidly reduce carbon emissions, an aim that is expected to be reinforced in the upcoming COP26 climate summit in Glasgow this month, which Australia’s Prime Minister Scott Morrison will attend.

However, shortly after the announcement of the third expansion project, Australia’s resources minister proposed the establishment of a state-run $180-billion lending option for the coal industry, with the stipulation that borrowers support a net-zero carbon emissions target. This strategy comes as banks and insurers become less willing to lend to the dying coal sector.

Australia’s dependence on coal is not surprising considering its close proximity to the Asian market, where coal demand remains high. Several Asian countries, most notably China and India with their ever-expanding populations, continue to rely on coal, as well as oil and gas, to meet their national energy demand.

“While China unambiguously needs as much coal as it can get its hands on to avert a [fourth-quarter] slowdown due to the tyranny of rolling power shortages, geopolitical tensions with Australia have waylaid the most convenient source of high-calorific coal from Down Under,” Vishnu Varathan, head of economics and strategy for Asia and Oceania treasury department at Mizuho, stated of China’s reliance on coal imports.

However, in late 2020, China ended its coal imports from Australia following difficult trade relations, namely Australia’s support for an international inquiry into China’s management of the Covid-19 pandemic. Coal is Australia’s third-largest export to China, a country that accounts for 32.6% of all Australian exports, with Australia exporting more to China than it imports.

After reportedly telling utilities and steel mills to stop all Australian coal imports, China began to import its coal from regional exporters Indonesia, Mongolia, and Russia. India has apparently been buying discounted coal that was left stranded in Chinese customs following the falling out between China and Australia. In recent months, Indian cement makers and sponge iron plants have sought to boost supplies with this low-cost option.

The Chinese stockpile of Australian coal, and its willingness to sell the supply at a discount, suggests the dedication it had to cutting trade ties with Australia. However, the energy crisis experienced in recent months has finally proved too much for China to continue holding a grudge. Fuel shortages and high energy costs have led the Chinese government to resume Australian coal imports. This month, China released Australian coal from bonded warehouses in addition to receiving 450,000 tons of Australian coal cargoes at the beginning of the month.

During the time that China refused imports, Australia did not just simply wait for China to come running back, rather it fostered its relationship with India. Australia held its first joint working group meeting on coal and mines with India this September to encourage greater participation in Australia’s ongoing coal production. Australia identifies India as a key market for some of its lower-grade coal, with prices significantly undercutting those of the premium coal products imported by China.

With little commitment to net-zero aims, ongoing support for coal plant expansion projects despite a high court interjection, and ongoing trade links with high-demand countries across Asia, it seems unlikely that Australia will curb its coal production or make it more carbon-friendly any time soon, despite international pressure to do so

The Ministry of Health reported today, October 17 that 1,897 new cases of COVID-19 have been reported in the past 24 hours. Specifically, 1,121 cases were confirmed in Ulaanbaatar city, with 776 cases in rural regions.

Today, the total number of confirmed COVID-19 cases in Mongolia has reached 338,405. 5,968 patients have made recoveries in the past 24 hours.

Furthermore, 15 new COVID-19 related deaths have been reported, raising the country’s death toll to 1,469. Currently, 18,833 people are receiving hospital treatment for COVID-19 whilst 55,853 people with mild symptoms of COVID-19 are being isolated at home.

Shares in Canada’s Turquoise Hill Resources (TSX, NYSE: TRQ) cratered on Friday after the company shocked the market late on Thursday by announcing the ongoing expansion of the massive Oyu Tolgoi copper mine in Mongolia required $1.2 billion in additional funding than previously expected.

The Vancouver-based miner, in which Rio Tinto (ASX, LON, NYSE: RIO) has a 50.8% stake, lost almost 22% of its value on Friday in both New York and Toronto, with the stock dropping to $12.09 and C$14.88 respectively in early trading.

SIGN UP FOR THE COPPER DIGEST

Delays in underground mining as well as some deferred open-pit metal production have caused an increase in estimated incremental funding requirement to $3.6 billion — up from the $2.4 billion expected in July.

Total costs for the move underground is now approaching the approved total budget of $6.75 billion, which already is significantly higher than the original $5.3 billion set in 2016.

Some metal production from open-pit mining is expected to be delayed to beyond 2024, the company said, partly due to under way impacts of on-site covid-19 curbs and geo-technical events that have resulted in delayed waste movement.

BMO analyst Jackie Przybylowski said it was unclear how such a material change to sequencing and cost emerged over the past three months. The project is quickly approaching its authorized spending, she said, and all work could be halted if further investment is not approved by the Oyu Tolgoi board, she wrote.

“In our view, successful execution in terms of timing, budget, and securing the required financing is increasingly risky,” Przybylowski said.

Turquoise Hill noted further delays would increase the incremental funding requirement further yet, and would also likely in turn adversely affect the ability of both the company and Oyu Tolgoi to obtain additional funding, or re-profile existing debt as set out in an agreement with Rio Tinto inked last April.

The miner’s disclosure could stoke tensions with the Mongolian government, which has called for more transparency from Rio Tinto and its development vehicle on the problems at Oyu Tolgoi. It comes as financial regulators in the UK and US examine Rio’s disclosures about issues previously announced.

Rio Tinto last month challenged the findings of an independent review into $1.4 billion in cost overruns and delays at Oyu Tolgoi, saying the project’s troubles were caused by unpredictable geology issues.

The Independent Consulting Group’s (IGG) report concluded last month that poor management was the main reason the mine’s underground expansion has run into problems affecting its cost and timeline.

The company said its copper production rose 16% to 41,935 tonnes in the third quarter from a year ago, while gold output more than tripled to 130,799 ounces.

It also said copper and gold production guidance for 2021 remains within the ranges of 150,000 to 180,000 tonnes and 400,000 to 480,000 ounces respectively.

Once completed, Oyu Tolgoi’s underground section will lift production from 125,000–150,000 tonnes in 2019 to 560,000 tonnes at peak output, which is now expected by 2025 at the earliest. This would make it the biggest new copper mine to come on stream in several years.

The mine is the country’s biggest source of foreign direct investment, having created thousands of jobs and generated almost $3bn of taxes and fee revenue over the past decade.

The Mongolian government holds a 34% stake in the Oyu Tolgoi project, with Turquoise Hill holding the remainder.

(With files from Reuters)

Asia is home to diverse and vibrant culinary cultures. Traditional nomadic meals in Mongolia, however, generally require only two basic ingredients: meat and flour. Even now, with all the choice brought by the global market, many Mongolians keep to simple diets of meat and flour for their day-to-day meals, making flour an irreplaceable strategic resource.

In this background, Oeg Flour LLC, a flour producer from rural Mongolia, succeeded in uplifting their business and began exporting internationally with business expertise from the EBRD and the European Union (EU).

Competition in the Mongolian flour market

Oeg Flour LLC began its operation in Darkhan-Uul Province, Mongolia, in 2011 with the aim to supply 100 per cent of rural regional flour demands, then expand to the capital city of Ulaanbaatar. Today, Oeg is a well-established flour brand in Mongolia with a market share of 20 per cent and has positioned itself as a major regional flour distributor.

“Many people only think of Darkhan as the third largest city in Mongolia. While we are distant from the capital, people in rural areas still require new opportunities,” says Ms. Oyunsuvd Enkhbold, General Manager.

However, to truly become a major competitor and take their business to the next level, they lacked a number of essential ingredients in their operations.

With 68 per cent of the country consuming flour-based food and 35-45 per cent cooking with flour daily, the Mongolian flour market provides opportunities for growth and expansion. However, this also means there is fierce competition among Mongolian flour brands.

While Oeg boasted high sales figures, concerns over product quality, malfunctions in production processes, flour wastage and unmonitored inventory meant the company needed to urgently overhaul its business practices.

“Despite our best efforts to set high standards, the fluctuation in product quality has been exceptionally high. We were gaining notoriety for poor quality and losing customers,” she says.

EBRD and EU’s role in Oeg’s revival

In 2019, government agencies from Mongolia and China reached an agreement to allow flour exports to China, creating an exciting new opportunity for Mongolian flour producers. Oeg needed to act quickly to seize this chance or it would fall behind the competition.

The company approached the EBRD’s business advisory service team with their issues in 2019 and Observe Consulting LLC were selected to introduce a Hazard Analysis and Critical Control Point (HACCP) quality management system.

The consultants identified that Oeg had retained the same management structure and style since 1997 and had not evolved to fit the changing market environment of the past decades.

“Had flour not been such an important part of the Mongolian diet, we might have faced business challenges years ago. The popularity of the product had made the management less keen on pursuing innovation and development,” Oyunsuvd reflects.

Throughout the advisory project, the consultants identified several major issues and introduced some notable key solutions. They helped Oeg obtain the quality management standard ISO 9001:2015 and introduced HACCP controls to maintain food safety standards.

With revitalised management, many of Oeg’s troubles, including procurement, quality control, and lack of oversight and bookkeeping, became things of the past. The business was now not only ready to re-establish itself as a stronger competitor in the Mongolian flour market, but poised to enter the lucrative Chinese market.

Firm foundations for regional growth

Since 2019, Oeg has continued to hit new milestones in sales. In Mongolia, Oeg’s management created a plan to establish a reliable supply chain encompassing all activities from wheat planting to delivering flour to consumers. They are now eyeing the patisserie market.

For the international market, the company has submitted a formal application to the Mongolian Ministry of Food, Agriculture and Light Industry and are expecting to be among the pioneering Mongolian flour exporters to China by 2022.

Thanks to joint support from the EBRD and the EU, Oeg Flour is now a well-established business that is making signification contributions towards its community’s sustainable growth. The producer has become a role model for many other businesses – and an inspiration to those studying and developing rural supply chains.

Source: EBRD

In the third quarter of 2021, 5.8 thousand foreign citizens from 74 foreign countries were working in Mongolia with labor contract with the purpose of earning wage and income or voluntarily without purpose of earning wage and income. The number of foreign workers increased by 495 (9.4%) from the previous quarter. In terms of gender of all foreign workers with labor contract in Mongolia, 5.2 thousand (89.4%) were male and 0.6 thousand (10.6%) were female.

In terms of country of all foreign workers in Mongolia, 65.3% is from China, 4.2% is from Vietnam, 3.7% is from Russian Federation, 3.2% is from South Korea, 3.0% is from India, 2.5% is from United States, 2.0% is from Philippines, 1.1% is from Great Britain, 1.1% is from Australia, and remaining 13.9% is from other countries.

By age groups of foreign workers, the highest percentage or 16.7% was persons aged 50-54, 15.9% was persons aged 45-49, 14.3% was persons aged 35-39 and the lowest percentage or 2.5% was persons up to 24 years.

By region, 2.7 thousand foreign workers (47.0%) of total foreign workers were in Ulaanbaatar, 2.1 thousand (35.9%) were in Central region, 0.4 thousand (7.0%) were in Eastern region, 0.3 thousand (5.3%) were in Khangai region and 0.3 thousand (4.8%) were in Western region.

By education attainment of the foreign workers, 2.3 thousand (39.4%) had diploma or bachelor degree, 1.9 thousand (34.3%) had technical and vocational education, 1.1 thousand (18.9%) had upper secondary degree, 0.3 thousand (5.8%) had specialized secondary degree and 0.1 thousand (1.6%) had lower secondary degree.

In terms of the occupation of foreign workers, the highest percentage or 2.7 thousand (47.5%) were professionals and the lowest percentage or 3 persons (0.1%) were skilled agricultural, forestry and fishery worker.

In the third quarter of 2021, 1.7 thousand workers (29.6%) are working in construction sector, 1.6 thousand workers (28.0%) are working in mining and quarrying sector, 597 workers (10.4%) are working in education sector, 526 workers (9.1%) are working in manufacturing sector, 443 workers (7.7%) are working in transportation and storage, 351 workers (6.1%) were working in wholesale and retail trade, repair of motor vehicles and motorcycles, 91 workers (1.6%) are working in administrative and support service activities, and 434 workers (7.5%) are working in other sectors. Compared with the previous quarter, the number of foreign workers in construction sector increased by 721 (73.5%) and by 237 (2.2 times) in transportation and storage sector.

Source: National Statistics Office of Mongolia

In June 2021, Ukhnaagiin Khurelsukh, the former chairman of the Mongolian People’s Party (MPP) and prime minister, became the sixth President of Mongolia. The run-up to the presidential election was turbulent even by the standards of modern Mongolian politics.

Russia's President Vladimir Putin, Rossiya TV presenter Sergei Brilev, Kazakhstan's President Kassym-Jomart Tokayev and Mongolia's Prime Minister Ukhnaagiin Khurelsukh attend a plenary session as part of the 2021 Eastern Economic Forum at the Far Eastern Federal University on Russky Island, Vladivostok, Russia, 3 September 2021 (Photo: Reuters/Mikhail Tereshchenko).

The incumbent president Khaltmaagiin Battulga of the Democratic Party — who had been blocked from running for a second term by the MPP-dominated parliament — sought to mobilise popular support by gathering mass rallies in the main square of Mongolia’s capital Ulaanbaatar. Yet Khurelsukh mostly relied on support from the bureaucracy and law enforcement.

Khurelsukh’s presidency is unlikely to affect Ulaanbaatar’s relations with Moscow. Russia, along with China, is a critical neighbour and partner for Mongolia. 2021 marks the 100th anniversary of the establishment of diplomatic relations between Russia and Mongolia, with Moscow becoming the first foreign power to formally recognise Mongolia’s sovereignty in 1921.

Despite former president Battulga’s reputation as a politician with pro-Russian sympathies, Moscow remained neutral in Mongolia’s domestic political struggle. After the election was decided, the Kremlin promptly congratulated the newly elected president. Russian President Vladimir Putin and Khurelsukh spoke in July confirming ‘their mutual resolve to continue developing friendly ties and comprehensive strategic partnership between Russia and Mongolia’.

In September, Khurelsukh made a virtual appearance at the Eastern Economic Forum in Vladivostok. In his remarks at the forum, Khurelsukh made noted that Mongolia supports both Putin’s foreign policy vision of the Greater Eurasian Partnership and Chinese President Xi Jinping’s Belt and Road Initiative. Khurelsukh also mentioned the possibility of a free trade agreement between Mongolia and the Russia-led Eurasian Economic Union. So far Mongolia’s only free trade agreement is with Japan.

Yet concerns over Mongolia’s plans to build river dams that may impact the fragile natural environment of areas across the border in Russia’s eastern Siberia remains an irritant in Russian–Mongolian relations and is likely to continue under Khurelsukh. Partly because of Russian pressure, Mongolia halted projects to build hydropower plants on the Egiin Gol and Shuren rivers — tributaries of Selenga river which feeds into Russia’s Lake Baikal.

Still, Mongolia has launched the construction of a dam on the trans-border Uldza river. The dam is needed to divert water for mining projects in Mongolia’s southern Gobi region. The Uldza dam, if completed, may disrupt the ecology of the unique Torey Lakes in Russia’s Daursky Reserve, a UNESCO World Heritage Site. Despite Moscow’s concerns, Mongolia’s Foreign Minister Battsetseg Batmunkh made it clear that the country will not abandon its ambitions in hydropower and dam construction, which Ulaanbaatar views as a path to energy self-sufficiency.

Despite disagreements over dams, Russia and Mongolia are pressing ahead with the Soyuz Vostok natural gas pipeline project that would transport gas from Russia’s western Siberia into China via Mongolia. A feasibility study is nearing completion, with Russia’s Gazprom expecting to start the construction next year. If realised, the pipeline will become the biggest joint undertaking by Russia and Mongolia since the Soviet era. Russia and China have the option of constructing a gas pipeline from western Siberia directly into western China via the Altai Mountains. Yet, the Mongolian route would bring gas directly to the areas of China that need gas.

The pipeline route through Mongolia is not completely risk-free. Mongolian resource nationalism has troubled foreign investors in the country. The pipeline traversing Mongolian territory could potentially hold the project hostage to Mongolia’s turbulent domestic politics. This may be one reason Beijing has not yet signed off on a binding contract for the pipeline. An energy crunch that is now afflicting many parts of China could prompt Beijing to make a final decision in favour of the Mongolian route for Russian gas.

The election of Khurelsukh has not changed the patterns of Mongolia–Russia military collaboration, which remains active. In September and October, Russian and Mongolian units conducted the annual Selenga bilateral exercise. Taking place in Mongolia, it involved around 1,400 servicemen from both sides. Still, Russia is watching warily as Mongolia pursues its ‘third neighbour’ policy and develops military-to-military ties with the United States. Moscow is especially uneasy with Mongolia hosting the Khaan Quest international exercises, which are conducted in close collaboration with the US Indo-Pacific Command.

Mongolia’s establishment of a ‘strategic partnership’ with South Korea, agreed at a September virtual summit between Khurelsukh and South Korean President Moon Jae-in, is another example of Mongolia’s pro-active multi-vector foreign policy. South Korea became Mongolia’s sixth strategic partner, after Russia (2006), Japan (2010), China (2014), India (2015) and the United States (2019).

Ulaanbaatar’s foreign policy hedging is also visible in Mongolia’s vaccine diplomacy, with the country receiving vaccines from Russia, China, India and the West. Mongolia initially ordered 1 million doses of Russia’s Sputnik V vaccine, but as of July had received only 80,000 doses, apparently due to production bottlenecks in Russia. The majority of the jabs administered in Mongolia have been China’s Sinopharm vaccine.

Regardless of who holds the presidency in Mongolia, Ulaanbaatar will continue to have a vital interest in strong relations with Moscow. Despite Mongolia’s pro-active multi-vector foreign policy, Russia, rather than distant ‘third neighbours’ will remain the ultimate guarantor of Mongolia’s security and sovereignty.

Alexey Mikhalev is Director of the Center for Studies of Political Transformation, Buryat State University, Ulan-Ude.

Artyom Lukin is Associate Professor at the Institute of Oriental Studies, Far Eastern Federal University, Vladivostok.

(Bloomberg) -- Rio Tinto Group has delayed the start up of

its $6.75 billion Oyu Tolgoi underground copper project in

Mongolia by at least three months after Covid-related

restrictions hampered progress, further adding to cost overruns

at the troubled venture.

First sustainable production will be no earlier than

January 2023, the company said in a quarterly update on Friday,

later than the previous forecast of an October 2022 start. The

cost of additional pandemic-related constraints is estimated at

about $140 million, Rio said, while it continues to assess the

full impact on the cost of the project from the latest delay.

Rio said in December that development costs were expected

to be to be about $1.4 billion more than originally planned

after stability risks were identified underground. Meanwhile,

revised plans to cover the extra cost have led to the Mongolian

government threatening to cancel a 2015 agreement with Rio that

underpins the mine development. Mongolia holds a 34% stake in

the project.

“All key stakeholders have stated that they remain

committed to moving the project forward and reaching a long-term

solution to the issues under discussion,” Rio said. Still, the

company said it needed government agencies to sign off on an

updated feasibility study before it could start work on crucial

elements of the project. The board of Oyu Tolgoi also needed to

approve the additional investment needed to bring the mine into

operation.

Rio is looking to expand its copper output in the years

ahead to tap into a bullish long-term demand outlook for the

metal, which is a key material in the clean energy transition.

As well as headwinds in Mongolia, its Resolution Copper project

-- potentially one of the biggest copper resources in the U.S. -

- faces opposition from Native American tribes as well as

potential legal hurdles.

By James Thornhill

Ulaanbaatar /MONTSAME/. At the plenary session of the parliament on October 14, the first discussions are taking place for the bills on the 2022 State budget, the 2022 Budget for the Social Insurance Fund, the 2022 Budget for the Health Insurance Fund, and the 2022 Budget for the Future Heritage Fund.

Highlighting that Mongolia is currently in a risk of having a budget deficit of 12 percent of the GDP, and losing 250 thousand jobs due to factors related to the COVID-19 pandemic, including disruptions in the export of goods and decrease in the speeds of freight and transport circulation by 5-9 times, the Prime Minister noted that the only solution to overcoming the challenging circumstance without much losses is vaccination. As of today, 65.6 percent of the total population of Mongolia have been fully vaccinated against COVID-19, with over 350 thousand people involved in an additional dose of the vaccine to restore the vaccine’s efficacy. A study has also found that the lives of 46 thousand citizens would have been put in risk if the vaccination drive had not been quickly launched, he noted at the start of his remarks.

“International organizations continue to warn that the crisis in the transport sector, shortages of goods, and increase in prices are likely to continue due to the pandemic in the first half of the coming year. Moreover, international organizations have yet to determine how many times the pandemic circumstance will change in the future. Thus, we must face and overcome the challenges by adapting to the situation. As such, we drafted the next year’s budget with positive expectations, and have presented a bill with a budget of MNT 18 trillion to the parliament for the very first time.”

The 2022 Budget focuses on expanding the economy and strengthening the public-private partnership. Furthermore, the budget also focuses on supporting the processing industry and the sectors of tourism and IT alongside mining, underlined the Prime Minister. The Government aims to not only put launch underground mine operations by advancing the talks on Oyu Tolgoi, but also accelerate the projects such as the construction projects for the oil refinery as well as the Tavan Tolgoi power plant and Erdeneburen hydropower plant.

The 2022 State Budget bill: Despite having an economic growth of -4.6 percent and a budget deficit reaching 12 percent of the GDP as infections began to rise from 2020, the Government of Mongolia implemented a MNT 2.6 trillion package measure to protect public health and support the private sector.

By implementing the MNT 10 trillion Comprehensive Plan for Health Protection and Economic Recovery from February 2021, and involving target groups in COVID-19 vaccinations from April, corresponding restrictions were lifted in phases to allow the operations of entities and businesses to resume, which brought the country’s economic growth in the first half of 2021 to 6.3 percent. As a result of the MNT 10 trillion comprehensive plan, loans in the banking sector were kept at an increase rate of 6.5 percent - and the total amount of loans reached MNT 18.1 trillion, restoring it to the pre-pandemic levels in 2019.

With a budget policy to support ‘LABOR, PRODUCTIVITY, GROWTH’ by fully lifting the restrictions on business operations, increasing export, launching large-scale projects, and expanding the economy with a focus on infrastructure projects in 2022, the economic growth for Mongolia has been estimated to be 5 percent.

In order to reduce budget expenditure, it has been reflected that ALL LEVELS OF GOVERNMENT ORGANIZATIONS WILL BE SAVING ON COSTS through measures such as more effectively distributing funds and digitizing government services.

The budget also reflects creating a SMALL YET SKILLED AND RESPONSIBLE TEAM OF CIVIL SERVANTS through methods, such as procuring certain services and operations that can be run by private entities instead of running by the government and making payments for services based on STANDARD-QUALITY-COMPETITIVENESS, and having public organizations that provide basic social services become “semi-independent” financially.

As for the healthcare sector, the reforms that began to be implemented this year will be accelerated, involving CITIZENS IN ANNUAL EARLY-DETECTION CHECKUPS. From 2018, the Health Insurance Fund has been providing financing for involving citizens aged over 18 in a package of 12 types of diagnostic tests ranging between MNT 43,000-75,000 at hospitals. Statistics for the year of 2020 shows that 7.9 percent of citizens aged over 18 have been involved in the package diagnostic tests. Thus, in aims of increasing its range, it has been planned to renew the package, and launch works to involve the population in annual checkups from 2022.

Another measure reflected in the budget is the program, ‘CHILDREN WITH SAVINGS’. Aimed at improving access to income being earned from natural resources, and helping children learn about the importance of savings, and grow up to become citizens that are properly informed and have financial capability, the Future Heritage Fund was added to the budget. The fund’s source of income is planned to be transferred to each child’s savings account at commercial banks.

Reforms will be implemented to transition FROM WELFARE TO LABOR by supporting citizens with low income through employment rather than welfare, and further specifying the requirements for some welfare programs.

The 2022 state budget bill estimates equilibrated revenue to be at MNT 15.8 trillion or 33.7 percent of GDP, and expenditure to be at MNT 18.2 trillion or 38.8 percent, with a deficit of MNT 2.4 trillion or 5.1 percent of GDP which is a decrease of MNT 1.3 trillion.

SHANGHAI, Oct 13 (Reuters) - China's Premier Li Keqiang said in an online meeting with Mongolian Prime Minister Oyun-Erdene Luvsannamsrai that he would be "happy to see" an expansion in the volume of coal traded between the two countries, the official Xinhua news agency reported late on Tuesday.

Li said "energy security is related to the national economy and people's livelihoods," the agency reported from the video meeting which took place on Tuesday afternoon.

He said China has abundant coal resources and hopes to develop diversified energy cooperation with Mongolia, the agency reported.

Near-record high thermal coal prices and electricity shortages have prompted power rationing across China and dented the country's industrial output, threatening its economic growth.

(Reporting by Engen Tham; editing by Richard Pullin)

((min.zhang@thomsonreuters.com; (8610) 5669-2105;))