General Customs Administration reported that the total trade turnover of Mongolia reached USD 4.4 billion in the first four months of 2021, which increased by 1.4 billion or 50.6 percent compared with the same period of 2020.

Specifically, exports exceeded imports by USD 535.4 million. Exports of goods and raw materials amounted to USD 2.4 billion, an increase of 81.8 percent compared with the same period of the previous year, and 98.8 percent of the goods exported were in foreign currency.

It was also reported that Mongolia exported goods to 48 countries, of which 92.5 percent went to China, 2.3 percent to South Korea and 2 percent to Singapore, which accounted for 96.9 percent of total exports.

In addition, goods and raw materials worth USD 1.9 billion were imported, an increase of USD 374.9 million or 23.6 percent compared with the same period of the previous year.

The strict lockdown (Red Level of heightened state of emergency readiness) imposed nationwide on April 10 was lifted this morning with the country moving into the Orange Level starting today.

The following activities and services in 18 categories will remain fully or partially restricted under the Orange Level:

Protests, demonstrations, and competitions;

Trips and wedding and other receptions;

Night clubs and karaoke clubs;

Food production and service businesses including restaurants and cafes are allowed offer takeout and delivery services only;

Markets;

Fairs;

Gaming centers and arcades;

No classes with more than 10 students are allowed;

Cultural and arts activities;

Entertainment venues are allowed to use 30 percent of their seating capacity;

Spas and fitness clubs;

Saunas and pools are allowed to work at 30 percent capacity;

Hotels, guest houses, and resorts;

Places of worship;

Sports activities except Olympic training;

Playgrounds and basketball and football fields;

Dance studios;

Prime Minister L.Oyun-Erdene got acquainted with the immunization progress in Tsagaan Khad, Umnugobi aimag.

As of May 7, over 40,000 people including coal truck drivers, border and customs officers and citizens of residential areas and baghs (smallest administration unit) have received the first dose of COVID-19 vaccine and over 12,000 people have received the second shot.

In Tsagaan Khad customs’ control zone, 9.9 million tons of coal of 28 entities has been remained. Due to the pandemic, mining product export has declined by 47 percent compared to the same period of 2019. Therefore, the Ministry of Mining and Heavy Industry is aiming to involve workers of mining companies’ in the vaccination actively to raise the coal export, said the Mining Minister.

The PM said that the government has been taking all necessary measures to not cause any disruptions in export. In particular, with supplying PCR machine, domestic military officers are being mobilized at a restriction zone in prevention to mix long-and short-distance coal transportation vehicles.

Ministry of Health was tasked to supply required doses of the vaccine to Umnugobi and Dornogobi aimags in a short period. Moreover, the Minister of Mining and Heavy Industry was obliged to take immediate measures to increase export of mining product. “By doing so, the two aimags are possible to become ‘Green Zone,’ which will enable to run the export normally, said the PM.

The same day, the PM became familiarized with the operation of Gashuunsukhait border checkpoint. As of April 30, over 67,000 vehicles crossed the country’s border, carrying copper concentrate and goods.

Meanwhile, authorities of the border checkpoint presented some proposals to the PM on intensifying renovation and extension works at the checkpoint, connecting Tsagaan Khad residential area with permanent power as well as implementing ‘Green Gateway’ temporary regulation on Mongolia-China border checkpoints. The PM pledged to study the proposals.

Mongolia's General Election Commission has officially registered three politicians as candidates for the upcoming presidential election, local media reported Saturday.

The commission approved Ukhnaa Khurelsukh, chairman of the ruling Mongolian People's Party, Sodnomzundui Erdene, former chairman of the opposition Democratic Party, and Dangaasuren Enkhbat, former legislator, as presidential candidates.

Enkhbat is the candidate from the Right Person Electorate Coalition, which won one seat in the regular parliamentary elections held in June 2020.

Political parties or coalitions that have at least one seat in parliament are eligible to nominate their candidates for the presidential election.

Mongolia has set June 9 as the date for its next presidential election. Enditem

Mongolia on Sunday confirmed 804 new COVID-19 cases in the last 24 hours, bringing the national tally to 44,820, according to the country's National Center for Communicable Diseases.

Meanwhile, two more fatalities were reported, raising the death toll to 174, the center said, adding that 1,389 more recoveries were reported, bringing the nationwide count to 31,373.

The Asian country launched a COVID-19 vaccination campaign in late February, with the aim of vaccinating at least 60 percent of its total 3.3 million population.

More than 1,536,700 people have so far received their first dose and over 617,900 have got both jabs, according to the authorities. Enditem

Mongolia is ranking high in the global effort to vaccinate populations against COVID-19. As of May 5, 181 countries had started vaccinating their people against the virus, and Mongolia is one of them. According to the Foreign Ministry of Mongolia, 42.2 percent of the population has been vaccinated and 1,398,592 doses have been administered. Mongolia’s multi-pillar foreign policy translated into extremely valuable vaccination diplomacy during a challenging time.

After COVID-19 emerged to become a global pandemic, Mongolia went an astounding 10 months with no local transmission of the virus. But there was a worrying spike this spring, and the country now stands at over 41,000 total cases. According to E-Mongolia, the COVID-19 related death toll has now risen to 134. The increase in infections and the arrival of Mongolians from abroad fostered skepticism of the government’s handling of the overall pandemic.

The Mongolian government’s response has been focused on vaccinating the population while slowly receiving Mongolian citizens from abroad with the assistance of its global partners such as Japan, South Korea, and the United States. But with an array of vaccination options and persistent anti-vaccination sentiments, Mongolians were divided on the issue.

Mongolia’s far-sighted 2011 Foreign Policy Concept calls for a multi-pillar foreign policy approach, and it paid off handsomely in the country’s vaccination diplomacy efforts. Despite its landlocked position, Mongolia managed to utilize its strategic partnerships to receive vaccinations from multiple sources.

According to the Foreign Ministry, Mongolia has received 2,600,540 vaccines through COVAX, the AstraZeneca and Pfizer brands. In addition, the government has purchased Sputnik V from Russia and Sinopharm from China. The COVAX global supply of vaccines to lower-income economies is expected to reach 1.3 billion doses by the end of 2021.

Mongolia’s strategic partnerships with its neighbors, Russia and China, allowed Mongolia to receive vaccines more quickly compared to other developing countries, many of which are dealing with significant delays. As early as February 23, 2021, Mongolia received 300,000 doses of the Sinopharm COVID-19 vaccine as a donation from China. More recently, on May 2, Mongolia received the first batch of 20,000 Sputnik V vaccines from Russia and expected to receive an additional 131,200 doses on May 6. Foreign Minister Battsetseg Batmunkh, speaking on national television, stated that the government agencies are diligently “continuing talks to accelerate the vaccination supply.” Moreover, as of April 30, foreign nationals with permanent residency in Mongolia can get their “voluntary vaccination” against COVID-19.

Mongolia’s two large neighbors, Russia and China, have been active in the global supply of vaccines. As the Economic Intelligence Unit reported, “China and Russia have been sending millions of doses of coronavirus vaccines to developing states in recent months. Through this ‘vaccine diplomacy’ operation, Russia and China aim to strengthen their global presence and boost their bilateral relations with the many emerging countries where Western influence is declining.”

But while Mongolia has received neighborly support from both Russia and China, Mongolia’s “third neighbors” weren’t sitting idle either.

The U.S. Embassy in Mongolia reported that the United States Agency for International Development (USAID) had launched “a $450,000 (Tugrik 1.3 billion) USAID program to support the Government of Mongolia’s COVID-19 response.” The embassy noted that the new commitment brings the United States’ total COVID-19 aid to Mongolia almost $4 million. “Through this assistance, USAID is focused on helping to strengthen Mongolia’s own ability to fight the disease and to support the following priority areas: infection prevention and control; preparing laboratory systems for large-scale testing; and communicating with the public on steps they can take to prevent and respond to the spread of the virus,” the statement said.

In addition, U.S. Ambassador to Mongolia Michael Klecheski tweeted about his most recent meeting with Battsetseg, writing, “Diplomacy during the pandemic.” The two sides have been in continuous communication on how the United States can support Mongolia’s fight against COVID-19 as a strategic partner, either through COVAX or financial support.

Moreover, on April 26, new Prime Minister Oyun-Erdene Luvsannamsrai received India’s Ambassador to Mongolia M. P. Singh. The Indian government donated 15,000 AstraZeneca vaccine doses to Mongolia in late February 2021, becoming one of the early vaccination donors. Singh stated at the time, “India is glad to be the first nation to provide Covid vaccine to the ‘Spiritual Neighbour’ and ‘Strategic Partner’ Mongolia.” The strategic partnership the two countries established in 2015 is paying dividends during the pandemic. Mongolia was one of 13 countries gifted vaccines in the “very first phase” of India’s vaccine diplomacy, Singh added, saying, “This gesture demonstrates our cooperative and collaborative spirit, our bond of hearts, and the importance of Mongolia in our ‘Act East’ policy.” Now, as India’s COVID-19 numbers break world records, the Mongolian government is donating $1 million to assist India.

Oyun-Erdene, who is approaching the 100 day mark in the prime minister’s office, aims to vaccinate all people above the age of 18, which is 62 percent of the total population, by July of this year. According to the press secretary to the Prime Minister, Bolortuya Chuluunbaatar, “the country needs 4,200,000 doses to fully vaccinate the entire population and [has] currently acquired 2 million vaccinations.”

The global pandemic highlighted the significance of a country’s foreign policy and what can be achieved through strategic foreign policy endeavors and diplomacy. Mongolia, often categorized as a small state due to its 3.2 million population, cannot afford to deal with more deaths. Mongolia is successfully leveraging its long-standing foreign policy pillars to make the most of vaccine diplomacy.

By: Bolor Lkhaajav,

Lawmakers in Kyrgyzstan, home to major gold and copper mines, have passed a bill allowing the state to temporarily seize Centerra Gold’s (TSX: CG) Kumtor mine, the largest gold operation in the Central Asian nation.

The legislation, passed late on Thursday, allows the government to run Kumtor for up to three months. It is based on the belief the operation may pose danger to locals and the environment.

Canada’s Centerra said in a media statement that Kumtor, which accounts for a fifth of the ex-Soviet country’s total industrial output, adheres to international environmental standards.

It also said it “believes strongly” the claims against it are without merit.

The mine has produced more than 13.2 million ounces of gold between 1997 and the end of 2020. Last year’s output was slightly over 556,000 ounces.

In February, the country formed a commission in charge of reviewing the operation as the state Tax Service revived previously-dismissed claims against Centerra.

The revenue agency alleges the Toronto-based miner owes more than $170 million, which could made it subject to penalties or sanctions.

Centerra has said the 2009 restated project agreements which govern the Kumtor mine contained a specific tax and fiscal regime. This states that no taxes are payable by its local unit Kumtor Gold Company (KGC) on intercompany transactions with Centerra, including dividends.

Mounting issues

The company is also facing a civil suit against the operation, requesting that its past practice of placing waste rock on glaciers be determined illegal. The claimants are demanding over $3 billion in environmental damages in favour of Kyrgyzstan, Centerra said.

The gold miner noted it was committed to continue working with Kyrgyz authorities to resolve any outstanding issues in accordance with existing contracts.

Kumtor has been the focus of a number of disputes between the company and the Kyrgyz government.

President Sadyr Japarov, who seized power after violent riots last October, once campaigned for the nationalization of the mine. After assuming the post, however, he said he no longer considered it necessary.

Kyrgyzstan has a history of popular uprisings and political turmoil, ever since gaining its independence after the collapse of the Soviet Union in 1991. Protesters had ousted two prior PMs in revolutions in 2005 and 2010.

Bullish sentiment has overtaken the copper market, with the bellwether metal hitting a fresh milestone on Thursday in New York with prices peaking at $4.60 a pound or $10,140 a tonne.

Amid all the euphoria, spare a thought for Australian copper miners though. The country’s copper producers have not been able to fully take advantage of a rally they helped create.

Relations between Canberra and Beijing hit a new low on Thursday, but copper became a casualty of the spat many months ago.

Unlike the iron ore market where the countries’ steel mills and iron ore miners are joined at the hip and Beijing holds less sway in the trade relationship, Australia counted as only China’s number five supplier of copper prior.

As China row deepens, 1 million tonnes of Australian copper concentrate need new buyers

With imports at zero since the end of November under a ban that was never made official, as a swing supplier Australian producers can influence dynamics of the seaborne market and create headaches for Chinese smelters already dealing with historically low refining charges.

Treatment and refining charges (TC/RCs) paid by miners to smelters to process concentrate into refined metal rise when supply is ample and fall when smelters are forced to compete for scarce material. TC/RCs fell to a historically low level of just over $20 a tonne last month compared to more than $70 a tonne in June last year and spikes as high as $130 in the previous decade.

Wood Mackenzie research director Gillian Moncur said Thursday that Chinese smelters remain closed to concentrates from Australia, compared to a peak of 108,000 tonnes in June last year.

“We estimate that the annual volume impacted is around 1.0 Mtpa of copper concentrate, which is looking for homes in other Asia Pacific smelters.

“This has resulted in China looking for concentrates from elsewhere, at a time when the market was very tight due to weather related issues, deferring shipments and other factors.”

The world’s top copper producer Chile is giving bulls another reason to cheer while prices soared to an all-time high on Friday as optimism about a global rebound from the pandemic spurs a surge across commodities markets.

Copper for delivery in July ended the day up 3.2%, with futures trading at $4.7490 per pound ($10,470 a tonne) on the Comex market in New York.

Chile’s lower house on Thursday approved a measure that would introduce progressive taxes on copper sales, potentially creating a total burden of more than 80% — or almost double that of other major copper-producing nations.

The measure, which would go into effect in 2024, still needs to be approved by the senate and could be blocked by the government in court. But if it succeeds, it could stall investments in a country where mature low-grade deposits need plenty of expenditure just to maintain output levels of about 5.7 million tonnes a year.

“This would at the very least delay any new capacity, extending the lengthy time-line to bring on a new mine,” said Grant Sporre, an analyst at Bloomberg Intelligence.

“Chile’s output could start to fade to 5 million tonnes.”

Chile’s copper export revenue jumped 69% in April. The world’s top copper producer said it had exported $4.541 billion worth of copper in April alone.

“THE COPPER MARKET AS IT CURRENTLY STANDS IS NOT PREPARED FOR THIS DEMAND ENVIRONMENT”

Goldman Sachs Group

Prices are up more than 30% this year and have more than doubled from lows in March of last year.

Click here for an interactive chart of copper prices

“Given high payments to the state, some assets would be un-investable and thus it limits the pool of mines that can make adequate returns, limiting supply,” said BTG Pactual analyst Cesar Perez-Novoa.

“No mining company is going to take risks without being rewarded.”

“It’s hard to foresee copper prices turning around amid the current bullish atmosphere,” Ji Xianfei, an analyst with Guotai Junan Futures told Bloomberg.

“Macro easing, ample liquidity and a weaker dollar continue to drive the rally, while the broader commodities surge is being fueled by bets on inflation.”

Trading house Trafigura Group, Goldman Sachs, and Bank of America expect copper to extend gains.

Steel prices across Asia and North America are also booming, iron ore is at a record above $200 per tonne as miners struggle to keep up with the frenzied pace of consumption, and tin topped $30 000 for the first time in a decade.

“The copper market as it currently stands is not prepared for this demand environment,” said Goldman Sachs Group Inc.

There are a few major mines in development and none on the scale required to meet forecasts for future demand.

“We don’t have many shovel-ready projects,” said Ivan Glasenberg, billionaire CEO of Glencore Plc.

“You will need the so-called $15,000 copper price to encourage a lot of this more difficult investment.”

Risks

There’s signs emerging in China, the top consumer, that high copper prices are starting to bite and authorities have pledged to stabilize raw material prices.

China’s imports of copper ore and concentrate fell in April from the previous month, according to customs data released Friday.

Some manufacturers and end-users have been slowing production or pushing back delivery times after costs surged, Shanghai Metals Market said last week.

(With files from Reuters and Bloomberg)

North Korean authorities plan to send workers to Mongolia this month, Daily NK has learned. This comes after the country’s leadership sent new batches of workers to Russia in March.

These moves suggest that North Korea is expanding its efforts to raise funds following a shortage of foreign currency due to difficulties caused by COVID-19 and continuing international sanctions on the country.

On May 2, a Daily NK source reported that around 200 workers are set to head to Mongolia in early May. The group of workers is made up of 60% males and 40 females: the men will work on agricultural and livestock farms while the women will work in textile factories.

Recruitment for these workers started late last month and the authorities have completed the third-round of screening of the candidates. The fourth-round of screening, which involves preparing necessary documentation for leaving the country, is now in progress.

It typically takes from four to six months for North Korean authorities to fully screen all workers heading to overseas locations such as China or Russia. During the first-round of screening, recruiters examine recommendations from municipal and county-level party organizations along with the results of basic health exams conducted at local hospitals.

Those candidates who pass the first-round of screening in a given province then take part in the second-round of screening, which is administered by the provincial party organization. During this stage, each candidate is interviewed one-on-one and recruiters examine the results of more extensive health exams conducted at provincial-level hospitals. These health exams focus on uncovering evidence of various transmittable diseases such as pneumonia, hepatitis, and tuberculosis.

That being said, candidates who suffer from “less than serious” cases of any of these transmittable diseases can still pass muster if they bribe hospital officials or even recruiters.

The third-round of screening is administered by central government agencies involved in sending workers abroad, such as the Central Committee, Cabinet or military. The workers sent to Russia in March, for example, were recruited by the External Construction Guidance Bureau, which means that the agency conducted interviews in Pyongyang and ultimately selected the final candidates. The screening of candidates for this latest Mongolia dispatch was conducted by the Ministry of Fisheries and the Capital Construction Guidance Bureau.

During the third-round of screening, candidates also undergo a third health exam at Pyongyang’s No. 2 People’s Hospital. During this health exam, candidates are again tested for transmittable diseases, including AIDS. According to the source, candidates can pass all these tests with bribes, but “no matter how much bribe money you throw at it, no one can bribe their way out” of a positive AIDS test.

A large number of laborers are working in this building, under construction in Ussuriysk, Russia. Image = Daily NK source

This undated photo shows a building in Ussuriysk, Russia, where a large number of North Korean workers were employed in construction work. / Image: Daily NK

The fourth-round of screening, meanwhile, is administered by the country’s Ministry of Foreign Affairs. In reality, final candidates are already chosen by the third-round of screening, which means that the ministry just conducts basic interviews with four candidates at a time before providing them with passports, visas, and other documentation.

This four-phase recruitment system is part of the government’s efforts to fully screen anyone they send out of the country. Many North Koreans, however, say that this four-stage system is aimed at providing recruitment agencies and cadres with opportunities to glean bribes off of candidates. Forcing candidates to undergo three overlapping health exams, for example, provides ample opportunity for cadres to milk bribes out of candidates who fail certain health tests.

Recently, if a candidate is found to have a transmittable disease, they may have to pay up to a USD 1,000 bribe. This amount contrasts sharply with the USD 500 sum they had to pay in 2019.

In the past, moreover, North Korean workers sent to Russia took trains or buses, but on account of an order from North Korean leader Kim Jong Un earlier this year, they now have to take a Russia-bound flight from Beijing.

Workers who were sent to Vladivostok in March, for example, took a very roundabout way to get to their destination. They departed for Dandong from Pyongyang before heading to Beijing to catch Moscow-bound flights. From Moscow, they then had to make their way to Vladivostok.

North Korean authorities have tried to explain away the use of flights for these workers as “consideration shown by Chairman Kim” for their safety; however, the workers appear to be flying out from China because international train services have not yet restarted. Because the workers have to pay for their own flights, costs related to travel have reportedly risen by a factor of 10.

On average, overseas workers are USD 3,000 in debt due to bribes made during the recruitment process or because of costly travel fees. While they all plan to repay this debt with the money earned abroad, this is not an easy proposition given that they face excessive demands to contribute to “party funds” once they are dispatched to foreign countries.

“While the reality turns out differently, people want to leave the country despite the risk of debt because of their hope that they can earn lots of money when they go abroad,” the source said. “Without saving anything up, some are able to just barely pay back their debts when they return.”

Please direct any comments or questions about this article to dailynkenglish@uni-media.net.