On May 30, President of Mongolia Khaltmaagiin Battulga delivered a speech to the 2021 P4G Summit taking place in Seoul, the Republic of Korea.

“Distinguished Delegates,

Ladies and Gentlemen,

At the outset, I wish to extend my sincere appreciation to the Government of the Republic of Korea for organizing this summit in these difficult times when every country in the world is fighting with the pandemic.

Over the past several years, we negotiated too many times and pledged ambitious goals to combat climate change, reduce environmental degradation and conserve the nature. Unfortunately, the implementation and concrete results are extremely unsatisfactory.

Mongolia is one of the most affected and vulnerable countries by the climate change. The frequency of natural hazards doubled in the last two decades and their economic impacts are increasing.

We must limit global warming to 1.5 degrees Celsius in order to prevent natural disasters and damages resulting from the climate change. This is the basic and most effective way to protect our planet. Every country pledged to define and implement its national goal to reduce the greenhouse gas emissions with the framework of the Paris Agreement. For Mongolia, we increased our initial commitment from 22.7 percent to 27.2 percent by 2030.

Dear delegates,

There is an urgent need to intensify the transition to environment friendly green technologies through public-private partnerships.

For this reason, shortly after my election as the President of Mongolia I made a concrete proposal to establish and implement a “North East Asian Super Grid” renewable energy project, which is one of the green technologies, during the Eastern Economic Forum in Vladivostok, Russia.

The Mongolian Gobi Desert, which sees 270 sunny and clear days per year, is the world’s second largest solar energy source after the Sahara Desert. We have a big potential to use this abundant source to generate electricity, reduce peak demand for electricity in countries such as South Korea and also store electricity using seasonal and time zone differences.

The renewable energy network is the most optimal and economic solution for protecting the environment.

Time and climate change will not wait us. We call on all countries to take decisive, effective and concrete actions to transform our economic recoveries after the pandemic into the environment friendly “green” model and start to fulfill our commitments made before the international community while every country is overcoming the pandemic with less damage.

Thank you for the attention."

Source: The Office of the President of Mongolia

The regular meeting of the cabinet was held on May 27. At the meeting, the government reviewed its plan to reopen its borders on June 1, 2021.

The Cabinet Secretariat’s Press Office has reported that citizens of Mongolia will not be required to be fully vaccinated against COVID-19 once the country’s borders are open. However, people of foreign citizenship must be fully immunized against coronavirus to be allowed for entry to Mongolia.

At today’s cabinet session, Prime Minister L.Oyun-Erdene gave orders to corresponding ministers to elaborate on this matter further and present the issue of border reopening to a future cabinet meeting.

US fintech giant PayPal has announced it’s planning to allow users to withdraw cryptocurrency holdings on its platform and move them to third-party wallets.

“We want to make it as open as possible, and we want to give choice to our consumers – something that will let them pay in any way they want to pay,” Jose Fernandez da Ponte, Paypal’s general manager of blockchain, crypto and digital currencies, said on Wednesday at CoinDesk’s Consensus 2021 conference.

The California-based company opened its platform to digital currencies in October, but users had not been allowed to withdraw cryptocurrency to third-party wallets.

“They want to bring their crypto to us so they can use it in commerce, and we want them to be able to take the crypto they acquired with us and take it to the destination of their choice,” da Ponte said.

Da Ponte didn’t specify a timeframe, but noted that new developments on the PayPal platform are common about every two months on average.

Cryptocurrencies have attracted substantial funds from big investors over the past year. The inflows triggered massive rallies in the price of most virtual assets, pushing the global crypto market cap to $2 trillion.

Canada’s Ivanhoe Mines (TSX: IVN) has begun producing copper concentrate at its Kamoa-Kakula project in the Democratic Republic of Congo (DRC) months ahead of schedule as the metal continues to trade close to all-time highs.

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 and partner Zijin Mining said first ore was introduced into the concentrator plant on May 20 to perform initial hot commissioning tests on the ball mills and other processing equipment.

As of May 25, 5% to 6% of copper ore was being conveyed directly from Kakula’s underground mining operations to the run-of-mine stockpile and the concentrator.

The country’s President, Felix Tshisekedi, said it was a clear sign that the country was open for business and investment. Ivanhoe’s co-chairperson Robert Friedland described first production from Kamoa-Kakula as a “historic moment” for Ivanhoe and the DRC.

“Discovering and delivering a copper province of this scale, grade and outstanding ESG credentials, ahead of schedule and on budget, is a unicorn in the copper mining business,” Friedland said in a separate statement.

The mining veteran noted that while the exploration journey started well over two decades ago, the Kakula deposit was discovered a little over five years ago. “This is remarkable progress by the mining industry’s glacial standards from first drill hole to a new major mining operation,” he said.

Kicking off production at Kamoa is indeed a momentous event for the copper market. Most of the current top producing mines are decades old and, except rare exceptions such as SolGold’s Cascabel in Ecuador and Anglo American’s Quellaveco project in Peru, there haven’t been major new discoveries in years.

While copper projects are in the pipeline, producers are wary of repeating oversupply mistakes of past cycles by speeding up plans at a time when mines are getting a lot trickier and pricier to build — one reason why copper prices are near decade highs at above $4 per pound.

The copper industry needs to spend upwards of $100 billion to close what could be an annual supply deficit of 4.7 million metric tonnes by 2030, according to estimates from CRU Group. The potential shortfall could reach 10 million tonnes if no mines get built, commodities trader Trafigura has said.

Friedland, who made his fortune from the Voisey’s Bay nickel project in Canada in the 1990s, has been working on Kamoa-Kakula for ten years.

World’s no.2, and the greenest

Operations at Kamoa-Kakula are set to ramp up this year to reach between 80,000 and 95,000 tonnes of copper in concentrate. After several phases of expansion, the mine’s peak annual copper production will be more than 800,000 tonnes.

Friedland believes the project will become the world’s second-largest copper mine and also the one with the highest grades among major operations. The concentrator is slated to produce concentrate grading around 57% copper.

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. Friedland has not set a target date for achieving that goal.

Expansion in sight

Given the current copper price environment, Ivanhoe and Zijin are exploring expanding production capacity from the current 7.6 Mtpa capacity (to be implemented in two phases of 3.8 Mtpa) to 11.4 Mtpa. This may be achieved by adding output from other targets in the concession — Kansoko, Kamoa North (including the Bonanza Zone) and Kakula West.

Kamoa-Kakula is a strategic partnership between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the DRC government (20%).

Shares in Ivanhoe shot up on the news, trading 3.4% higher at C$9.31 a piece in Toronto early morning. So far this year, the stock has climbed almost 25%.

BMO Metals Andrew Mikitchook said Wednesday’s news was an important milestone for Ivanhoe shareholders. “We expect further revaluation of the shares as the mine ramps up over the next months and the Phase 2 expansion (remains ahead of schedule) is delivered by Q3 2022,” he said.

Looking ahead, Mikitchook said investors would watch for three Kakula-Kamoa milestones: ongoing monthly operational updates, 2021 costs guidance, and updates on copper concentrate offtake arrangements.

After barring the use and trading of cryptocurrency, Beijing has indicated that it will turn next to cryptocurrency mining.

China’s vice-premier Liu He last Friday said the government would clamp down on bitcoin mining and trading to achieve financial stability but stopped short of revealing specific policies. This week, Inner Mongolia, an autonomous region in northern China, issued draft guidelines on its plans to ban crypto mining, offering the first details about how authorities intend to execute this latest stage of the crypto crackdown.

Under the rules, big data centers and cloud computing firms will see preferential policies from the government withdrawn, while telecommunication companies, internet firms, and even cyber cafes will have their business license revoked or operation suspended if the entities are found to have engaged with crypto mining, according to a notice (link in Chinese) from Inner Mongolia’s Development and Reform Commission. Additionally, companies or individuals that are found to have used cryptocurrency to conduct money laundering will be handed over to the judicial authorities, while government employees who have either participated or facilitated the practice will face scrutiny from the country’s anti-corruption agencies.

Inner Mongolia’s draft rules will be open for public comment until June 1, and the guidelines could set a precedent for other bitcoin mining hubs in China, such as Xinjiang, which accounts for some 20% of global bitcoin mining.

“There is the chance that other provinces and regions, and especially Sichuan and Xinjiang, will not take as hard a line as Inner Mongolia appears to be, but again given the attention from Beijing I would be surprised if they do not follow suit,” Bill Bishop, a veteran China analyst, wrote in his newsletter Sinocism.

A renewed crackdown on cryptocurrency

China banned the trading of cryptocurrencies in 2017, but so far the “mining” of the assets, a process whereby people use enormous power-hungry computers to solve algorithmic puzzles and in return get rewarded with the virtual currencies, has been tolerated. As of April last year, around 65% of the global average monthly bitcoin mining capacity, or hashrate, was based in China due to its cheap electricity, according to the Cambridge Bitcoin Electricity Consumption Index, an online tool developed by the British university. Xinjiang accounted for over half, or 36% of this computational power in the country, raising ethical concerns due to Beijing’s alleged human rights abuses in the region. Inner Mongolia ranked third after Sichuan province and Xinjiang, accounted for around 8% of such capacity.

But amid bitcoin’s wild price swings in recent weeks, partly the result of Elon Musk’s see-saw stances on it, Beijing seems to be worried about the potential financial risks cryptocurrencies could pose. In addition to Liu’s remark, Beijing last week reiterated its opposition to crypto, banning banking and payment service providers from offering crypto-related transactions. At the same time, however, the country has been testing a digital yuan, part of the government’s broader plans to deploy advanced tech in a state-controlled way.

Another motivation for Beijing to curb crypto comes from its need to reduce emissions. Bitcoin mining is highly carbon-intensive, with the energy consumption of the virtual currency estimated to be greater than all the power consumption by Italy in 2016, according to a recent study published by Nature Communications. In addition, according to Bloomberg, it’s possible the cryptomining industry has spurred more demand for coal, and led to illegal coal mining.

Looking for alternatives to China

Already, some China-based bitcoin miners and those producing equipment for them have said they might shift their business to places outside China, including Kazhakstan, Canada, and the US, where electricity is also cheap and the policies towards crypto are more friendly than in China.

Miners including HashCow and BTC.TOP have halted part or all of their operations in China after Liu’s remark, while some Chinese crypto mining machine makers have also been eying markets outside China, according to Reuters.

Overall, China’s crackdown on crypto could prompt the “de-China-isation” of the industry, with such a trend first seen in crypto trading and now coming to computing power, according to Wang Juan, associate professor on blockchain at Xi’an Jiaotong University, told the the South China Morning Post.

In a sign of that, China’s overall share of hashrate dropped from 76% in September 2019 to 65% in April last year, according to crypto research firm Arcane Research.

May 27 (Xinhua) -- Mongolia reported 653 new COVID-19 cases in the last 24 hours, bringing the national tally to 55,067, the country's health ministry said Thursday.

The ministry said that the latest cases were local infections, and that 6,237 samples were tested in the past day across the country.

Meanwhile, the death toll rose to 272 after two more patients died from the disease, and the number of recoveries rose by 633 to 48,674, it said.

Mongolia launched a nationwide COVID-19 vaccination campaign in late February, aiming to cover at least 60 percent of its 3.3-million people.

Nearly 1,844,000 Mongolians have so far received their first dose, and over 944,000 have been fully vaccinated.

A new Country Partnership Framework (CPF) for Mongolia was discussed today by the World Bank Group’s Board of Executive Directors. The strategy, which covers the period of FY2021-2025, aims to support Mongolia in overcoming the COVID-19 crisis in the short term, while working towards a more sustainable, inclusive, and resilient recovery into the future, with a strong focus on job creation and climate resilience.

“The CPF comes at a critical time to help Mongolia overcome the COVID-19 crisis, while simultaneously supporting reforms and providing investments that can build lasting growth, create jobs, and increase resilience to the impacts of climate change,” said Martin Raiser, World Bank Country Director for Mongolia. “As we celebrate the 30th anniversary of our partnership with Mongolia this year, we will continue our journey together to support Mongolia’s efforts to build a more prosperous future.”

Over the past decade, Mongolia’s economy has grown rapidly and has made important progress in reducing poverty and improving people’s wellbeing. However, this growth has been volatile and has not generated shared prosperity for all. Job creation remains a critical challenge for the country, especially among the younger population. These challenges have been worsened by the COVID-19 pandemic, which has taken a heavy toll on people and the economy despite of substantial government support.

Under the overall objective of promoting resilient recovery and inclusive and sustainable growth, the Country Partnership Framework has three key focus areas:

Strengthening economic governance. The World Bank Group (WBG) will support the strengthening of fiscal management and institutions, promote financial stability and improved governance, and help to enhance of the efficiency and effective use of public resources for better public service delivery.

Boosting competitiveness. The WBG will support improvements in the business environment in order to attract investment, promote better access to finance - especially for Small and Medium Enterprises (SMEs), and invest in sustainable infrastructure in transport, energy, and digital services to improve the country’s connectivity. The WBG will also continue working on sustainable and high-quality mining investments - a critical part of Mongolia’s economy - while simultaneously placing a strong focus on supporting those non-mining sectors with high potential for job creation, including the agriculture and livestock sectors, the digital economy, and tourism, among others.

Improving quality of life. The WBG will work to enhance healthcare services - particularly the public health response to COVID-19, including the deployment of vaccines. It will provide support to improve the quality of education and strengthen the social protection system by making it both more targeted toward the country’s poorest populations and more fiscally sustainable. Investments to improve air quality, heating services, urban transportation, and other municipal services to improve livability in Mongolia’s urban centers are also planned under this focus area.

In addition, the new CPF puts renewed emphasis on job creation and climate resilience - two cross-cutting themes that will be embedded in all WBG engagements. Based on the strong belief that economic development opportunities and climate action are complementary in the long run, the WBG will aim for greater ambition to support creating more and better jobs for Mongolians, especially youth and women, and improving climate resilience for future generations.

“In formulating the strategy, we worked closely with central and local governments, development partners, private sector actors, and civil society stakeholders throughout Mongolia,” said Andrei Mikhnev, World Bank Country Manager for Mongolia, “We look forward to working with all our partners to put this strategy into action. This CPF will serve as a strong roadmap to steer our partnership.”

The strategy is anchored by Mongolia’s national development strategy - Vision 2050 - as well as the government’s program and the World Bank Group’s twin goals of eradicating poverty and boosting shared prosperity. This is Mongolia’s first CPF as an International Development Association (IDA) graduate, with the country becoming an International Bank for Reconstruction and Development (IBRD)-only client on July 1, 2020.

President of Mongolia Khaltmaagiin Battulga toured, May 22nd and 23rd, through the construction sites of the 416.1 kilometer railroad connecting Tavantogloi and Zuunbayan, and 240 kilometer railroad connecting Tavantolgoi and Gashuunsukhait.

Commenced development two years ago on June 24th, 2019, the 416.1-kilometer-long railroad connecting Tavantolgoi with Zuunbayan is ready to be commissioned this June.

During his work tour, the President dedicated milk as a good wish to “the first-ever strategically important development built fully by Mongolians on their own”, as he described.

President Battulga extended congratulations to the stakeholders, namely, Mongolian Railway SOE, Ulaanbaatar Railway joint venture and the General Staff of the Mongolian Armed Forces, while expressing his appreciation for their hard work dedicated to completing the railroad construction. He also applauded the commissioning of the apartment complex at Tsogttsetsii station.

The President pointed out his belief that if the railway construction continues and reaches Sukhbaatar and Dornod provinces, as well as to Bichigt Port, the developments can make a substantial contribution to the revival of the economy, while promoting the inhabitability of the Gobi.

On May 25, Ambassador of Hungary to Mongolia Dr. Borbala Obrusánszky visited the Mongolian Academy of Sciences (MAS) to discuss partnership in the science sector. Alongside being an Ambassador, she is also a scholar that has a doctoral degree specializing in Mongolian Studies.

During the meeting, MAS President D.Regdel said, “We were delighted to learn that a scholar specializing in Mongolian Studies had been appointed as the Ambassador to Mongolia. As you have a wide range of knowledge about the country, I believe that the bilateral cooperation between the two countries will be significantly enhanced. As of currently, Mongolia is planning to prioritize research in the biotechnology sector in the coming years. Thus, we wish to cooperate with Hungary in this field.”

Hungarian Ambassador Borbala Obrusánszky said, “I am pleased with the Memorandum of Cooperation signed between the Hungarian Academy of Sciences and the Institute of Archeology at the Mongolian Academy of Sciences on launching a large-scale archeological research named, ‘Belkhiin Uv (Heritage of Belkh)’ from June. Alongside this large-scale research, we are interested in cooperating in water management as well as advanced research in biotechnology as you have suggested.”

As the Hungarian Academy of Science marks Science Day in November of each year, the Ambassador also put forth a suggestion to mark the day in Mongolia this year.

Cryptocurrency miners, including HashCow and BTC.TOP, have halted all or part of their China operations after Beijing intensified a crackdown on bitcoin mining and trading, hammering digital currencies amid heightened global regulatory scrutiny.

A State Council committee led by Vice Premier Liu He announced the crackdown late on Friday as part of efforts to fend off financial risks. It was the first time China's cabinet has targeted virtual currency mining, a sizable business in the world's second-biggest economy that some estimates say accounts for as much as 70% of the global crypto supply. read more

Cryptocurrency exchange Huobi on Monday suspended both crypto-mining and some trading services to new clients from mainland China, adding it will instead focus on overseas businesses.

BTC.TOP, a crypto mining pool, also announced the suspension of its China business citing regulatory risks, while crypto miner HashCow said it would halt buying new bitcoin mining rigs.

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Crypto miners use increasingly powerful, specially-designed computer equipment, or rigs, to verify virtual coin transactions in a process which produces newly minted crypto currencies such as bitcoin.

"Crypto mining consumes a lot of energy, which runs counter to China's carbon neutrality goals," said Chen Jiahe, chief investment officer of Beijing-based family office Novem Arcae Technologies.

The crackdown is also part of China's stepped-up drive to curb speculative crypto trading, he added.

Bitcoin took a beating after the latest Chinese move, and is now down nearly 50% from it's all-time high. It shed as much as 17% on Sunday, before paring some losses and was last trading steady in Asia. Elsewhere, Ether fell to a two-month low on Sunday, down 60% from a record peak hit just 12 days ago,

Investor protection and money laundering are particular concerns of global financial regulators who are grappling with whether and how they should regulate the cryptocurrency industry.

The latest shakeout in digital currencies also stems from tighter scrutiny in the United States. Last Thursday, U.S. Federal Reserve Chairman Jerome Powell said they pose risks to financial stability, and indicating that greater regulation of the increasingly popular electronic currency may be warranted. read more

"Huobi always strives to abide by the evolving policies and regulations of each jurisdiction," Huobi said in a statement to Reuters.

BTC.TOP founder Jiang Zhuoer said in a micro blog post via Weibo that its mining business will no longer be open to mainland China, while HashCow said it would suspend new businesses in China in a notice to clients. BTC.TOP and HashCow could not be immediately reached for comment

DIRTY BUSINESS

The annual energy consumption of China's cryptocurrency miners is expected to peak in 2024 at about 297 terawatt-hours, greater than all the power consumption by Italy in 2016, according to a study recently published in scientific journal Nature Communications.

Chinese President Xi Jinping has pledged carbon neutrality by 2060.

China has already lost its position as a global cryptocurrency trading centre after Beijing banned crypto exchanges in 2017.

"Eventually, China will lose crypto computing power to foreign markets as well," BTC.TOP founder Jiang wrote, predicting the rise of U.S. and European mining pools.

Chen of Novem Arcae said the crypto craze, if not curbed, could turn into froth similar to the Dutch tulipmania in the 17th century - often regarded as the first financial bubble in recorded history.

"The only difference is that after the tulip bubble burst, there were still some beautiful flowers left," Chen said.

"But when the virtual currency bubble bursts, what would be left are merely some computer codes."